10-Q · April 27, 2026
SEI reported Q1 2026 revenue of $622,183,000, up 13% y/y, and GAAP diluted EPS of $1.40, up 20% y/y. Operating income rose 21% to $189,486,000 (GAAP operating margin ~30.4%), driven by broad-based revenue growth across…
Earnings analysis · 10-Q
SEIC earnings analysis
Filed July 27, 2026 · Our reading of the company's report
The latest report
SEI delivered strong underlying Q2 growth: revenue increased 15% to $641.617 million and operating margin expanded 4.1 percentage points year over year to 30.7%. Reported GAAP EPS of $1.59 was down from $1.78 because…
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SEI delivered strong underlying Q2 growth: revenue increased 15% to $641.617 million and operating margin expanded 4.1 percentage points year over year to 30.7%. Reported GAAP EPS of $1.59 was down from $1.78 because the prior-year quarter contained a $94.412 million business-sale gain; adjusted EPS increased to $1.66 from $1.20. Growth was broad-based across Investment Managers, Private Banks, and Investment Advisors, while cash generation was robust, although Stratos-related amortization and client losses remain watch items.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.59
- Operating margin
- 30.71%
What stood out
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Revenue growth and operating leverage
Q2 revenue rose 15% year over year to $641.617 million and 3.2% sequentially from $622 million in Q1 2026. Operating income increased 33% to $197.016 million, lifting operating margin to 30.7% from 26.6% a year ago and 30.5% in Q1.
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Investment Managers accelerated
Investment Managers generated $227.679 million of revenue, up 17%, and operating profit rose 25% to $91.601 million. Management attributed growth to additional services for major alternative-fund clients and positive flows from new and existing clients.
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Private Banks margin expansion
Private Banks revenue increased 11% to $156.879 million while operating profit rose 39% to $31.659 million; margin expanded 4 percentage points to 20%. New SWP client conversions, existing-client growth, market appreciation, and higher transaction volumes were key drivers.
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Stratos supports advisor growth
Investment Advisors revenue grew 30% to $177.897 million, including $40.1 million of first-half revenue from Stratos. Despite acquisition-related amortization and higher direct costs, operating profit increased 22% to $74.670 million.
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Cash generation strengthened
Six-month operating cash flow increased $104.4 million year over year to $347.367 million. Less $15.0 million of capital expenditures, implied free cash flow was $332.367 million, with capex equal to 4.3% of operating cash flow.
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Asset base expanded materially
Total assets managed, advised, administered, platform-only, and Stratos client assets reached $2.056 trillion, up 21% year over year. Average total assets rose 22% to $2.024 trillion in Q2, supporting asset-based fee revenue.
What to watch
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GAAP comparisons face prior-sale distortion
Reported GAAP diluted EPS declined 11% year over year to $1.59 and net income attributable to SEI fell 14% to $195.658 million, as Q2 2025 included a $94.412 million gain on sale of business that did not recur. Adjusted diluted EPS was $1.66 versus $1.20.
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Acquisition and mix pressure on advisor margin
Investment Advisors operating margin fell to 42% from 45% despite 30% revenue growth. The Stratos contribution included $12.8 million of acquired-intangible amortization in the first six months, while direct separately managed-account costs and personnel expense increased.
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Client losses constrain institutional growth
Institutional Investors revenue grew only 1% to $69.702 million and operating profit fell 2% to $32.876 million; management cited client losses as a partial offset to market-appreciation and OCIO growth. The filing says there were no material risk-factor changes from the 2025 Form 10-K.
Management's outlook
The 10-Q provides no quantitative revenue or EPS outlook. Management states that available funds and operating cash flow are anticipated to fund operational needs, expected M&A activity, and stock repurchases for at least the next 12 months and for the foreseeable future.
Earlier filings 4
10-K · February 23, 2026
SEI presents an integrated technology, custody, and asset-management strategy focused on scaling advice, alternatives, and outsourced operations. In 2025 the company reported Total Revenues of $2,297,381 (in thousands)…
10-Q · April 28, 2025
SEI reported Q1 total revenues of $551,344,000, up $39,765,000 (7.8%) versus Q1 2024, driven by growth in Asset Management fees and Information Processing. Operating income rose to $157,097,000 (28.5% of revenue) and…
10-K · February 20, 2025
SEI’s 2024 10‑K emphasizes a diversified fintech and asset management franchise: total revenues of $2,125,151,000 for the year ended December 31, 2024 and a business mix of ~55% technology & operations outsourcing and…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.