SEI Investments Company Reports 8% Revenue Growth to $551.3 Million in Q1 2025

SEI Investments Company reported a solid financial performance for the first quarter of 2025, with total revenues reaching $551.3 million, an increase of 8% from $511.6 million in the same period last year. The company's net income also rose by 15% to $151.5 million, compared to $131.4 million in the prior year. Basic earnings per share improved to $1.20 from $1.00, while diluted earnings per share increased to $1.17 from $0.99. The growth in revenue was primarily driven by higher asset management, administration, and distribution fees, which rose to $432.1 million, up from $404.4 million, alongside increased information processing and software servicing fees.

In terms of operational metrics, SEI's average assets under administration increased by $122.7 billion, or 13%, to $1.1 trillion, reflecting strong cross-sales to existing clients and new client acquisitions. The company managed, advised, or administered approximately $1.6 trillion in assets as of March 31, 2025. However, the company faced challenges in its Institutional Investors segment, which experienced client losses and fee reductions, leading to a 5% decline in revenues to $68.5 million.

Strategically, SEI announced a definitive agreement to sell its Family Office Services business to Aquiline Capital Partners for $120 million, expected to close in the second quarter of 2025. This divestiture is part of the company's ongoing efforts to streamline operations and focus on core business segments. Additionally, SEI continued to invest in technology, capitalizing $7.4 million in software development costs, primarily for enhancements to its SEI Wealth Platform and a new platform for the Investment Managers segment.

The company also reported a significant reduction in accrued liabilities, which fell to $224.7 million from $347.5 million, contributing to a decrease in total current liabilities. SEI's total assets decreased to $2.57 billion from $2.68 billion, largely due to the reclassification of certain assets held for sale. The company maintained a strong liquidity position, with cash and cash equivalents totaling $710.7 million at the end of the quarter.

Looking ahead, SEI Investments Company remains optimistic about its growth prospects, driven by increased demand for its investment management and technology solutions. The company expects to continue benefiting from market appreciation and positive cash flows into its investment products, while also addressing challenges in specific segments. The management anticipates that the ongoing investments in technology and strategic divestitures will position the company for sustainable growth in the future.