SEI Investments Company (SEIC) SEC Filings & Earnings Calls

Institutional Investors segment revenue declined 2% YoY and net sales events negative $2.3M

“Institutional Investors revenue declined 2% and Institutional Investors recorded negative $2.3 million of net sales events.”

Client losses and fund closures

“Client losses and fund closures.” · word for word

Negative cash flows from existing clients

“Negative cash flows from existing clients and client losses partially offset the increase in earnings from LSV.” · word for word

Regulatory compliance cost

“The direct and indirect costs of responding to these regulatory activities and of complying with new or modified regulations, as well as the potential financial costs and potential reputational impact against us of any enforcement proceedings that might result, is uncertain but could have a material adverse impact on our operating results or financial positi”

Net income declined 14% YoY despite strong operating performance, likely due to non-operating items or tax effects.

“Net income attributable to SEI Investments 195,658 vs 227,083 in Q2 2025, a 14% decline.” · word for word

Investments in New Businesses segment revenue declined 43% YoY, indicating ongoing losses in newer ventures.

“Investments in New Businesses: Revenues $9,460 vs $16,549, down 43%.”

Client concentration and losses

“Revenue growth was partially offset by client losses in the Institutional Investors segment.”

Regulatory compliance cost

“We are experiencing a complex and changing regulatory environment across our markets... could have a material adverse impact on our operating results or financial position.” · word for word

Market dependence

“Revenue growth from market appreciation during 2025; negative cash flows and client losses partially offset.”

Investment Advisors segment margin declined from 47% to 42% due to Stratos acquisition amortization.

“Investment Advisors... Operating Margin 42% vs 47% a year ago”

Investments in New Businesses revenue declined 52% YoY, though operating loss improved.

“Investments in New Businesses: Revenues $7,993 vs $16,500 (-52%)”

Key person dependency on CEO

“CEO Ryan Hicke's employment agreement provides significant severance and change of control benefits.”

Concentrated ownership by insiders

“All executive officers and directors as a group own 4.8% of shares.” · word for word

Forward-looking statements subject to risks; market uncertainty may impact results

“Safe harbor statement and risk factors referenced”

LSV Earnings Volatility

“LSV is a significant contributor to our earnings, and we also receive partnership distribution payments from LSV on a quarterly basis that contribute to our operating cash flows. Volatility in the capital markets or poor investment performance by LSV... could result in a significant reduction in its assets under management and revenues, as well as a decline ” · word for word

Proprietary Investment Losses

“Deploying SEI’s capital into markets introduces new risks to our balance sheet and earnings. Unlike cash, these investments fluctuate with market conditions, exposing us to market and credit risk.” · word for word

Fee Compression

“increased competition from passive products and low-cost providers continues to exert downward pressure on fees.” · word for word

Shareholder Activism

“We may be subject to shareholder activism, which can cause material disruption to our business.” · word for word

Elevated corporate overhead from severance and M&A fees ($20.1M) impacted comparability

“$20.1 million of elevated Corporate Overhead attributable to severance expense and third party M&A fees related to Stratos” · word for word

Institutional Investors segment recorded negative net sales events (-$5.0M) due to client losses in UK

“Institutional Investors recorded negative $5.0 million of net sales events, driven by client losses in the United Kingdom” · word for word

Advisors net sales nearly flat as ETF inflows offset mutual fund outflows

“Advisors net sales events were nearly flat for the quarter, as strong inflows into SEI-managed ETFs offset continued outflows in traditional mutual fund products” · word for word

Management change may introduce execution risk or strategic shifts.

“New employment agreement with Ryan Hicke, no further details.”

Founder resignation after 50+ years as CEO may signal leadership transition risk, but orderly succession planned.

“Alfred P. West, Jr. tendered his resignation as a member of the Board and as an officer”

Integration risk and regulatory approval for second stage

“Second stage to purchase Mexico-based NSC business subject to regulatory approval and expected to close in 2026.”

Client losses and fund closures

“Client losses and fund closures.” · word for word

Regulatory compliance costs

“The direct and indirect costs of responding to these regulatory activities and of complying with new or modified regulations...could have a material adverse impact on our operating results or financial position.” · word for word

Dependence on LSV earnings

“Earnings from LSV decreased to $94.3 million in the first nine months of 2025 as compared to $102.4 million in the first nine months of 2024 due to negative cash flows from existing clients and client losses.” · word for word