SEI Investments Company Reports 8% Revenue Growth and 63% Net Income Surge in Q2 2025

SEI Investments Company reported a strong financial performance for the second quarter of 2025, with total revenues reaching $559.6 million, an increase of 8% from $519.0 million in the same period last year. For the first half of 2025, revenues also grew by 8% to $1.11 billion compared to $1.03 billion in the first half of 2024. The company's net income surged 63% year-over-year to $227.1 million for the quarter, translating to diluted earnings per share of $1.78, up from $1.05 in the prior year. This growth was bolstered by a significant gain of $94.4 million from the divestiture of its Family Office Services business, which closed on June 30, 2025.

In terms of operational metrics, SEI's average assets under administration increased by 12% to $1.1 trillion, driven by higher client engagement and market appreciation. The company reported a 4% increase in average assets under management in equity and fixed income programs, reaching $183.1 billion. The Investment Managers segment, which includes asset management and administration services, saw revenues rise by 10% to $387.1 million for the first half of 2025, reflecting strong demand for its services. However, the Institutional Investors segment experienced a 4% decline in revenues, attributed to client losses and fee reductions.

Strategically, SEI has been active in enhancing its service offerings, with capitalized software development costs amounting to $14.5 million in the first half of 2025, primarily for the SEI Wealth Platform and a new platform for the Investment Managers segment. The company also repurchased 4.7 million shares of its common stock for $373.6 million during the first half of 2025, reflecting its commitment to returning value to shareholders. Additionally, SEI announced a strategic investment in Stratos Wealth Holdings, which is expected to close in stages through 2026.

The company’s balance sheet showed total assets of $2.63 billion as of June 30, 2025, down from $2.68 billion at the end of 2024. Total liabilities decreased significantly to $287.8 million from $432.5 million, primarily due to a reduction in accrued liabilities. SEI's shareholders' equity increased to $2.34 billion, up from $2.25 billion, reflecting retained earnings and the impact of the stock repurchase program. The company’s effective tax rate for the quarter was 22.3%, a decrease from 23.9% in the previous year, and it does not expect significant impacts from recent tax legislation.

Looking ahead, SEI Investments Company remains optimistic about its growth trajectory, driven by strong demand for its financial technology and asset management services. The company anticipates continued revenue growth from its investment processing and software servicing fees, alongside the successful integration of new client conversions and enhancements to its platforms. SEI is also focused on addressing regulatory challenges and maintaining compliance across its global operations, which it views as critical to sustaining its competitive advantage in the financial services industry.