SEI Investments 2025 Q2 Earnings Beats Expectations with Net Income Rising 63%

SEI Investments (SEIC) reported its fiscal 2025 Q2 earnings on Jul 28th, 2025. The company exceeded analyst expectations with a notable 70% rise in earnings per share (EPS), reaching $1.78 compared to the anticipated $1.15. Additionally, SEI announced an updated Q3 2025 guidance projecting revenue of approximately $586.7 million and EPS of $1.26. The company remains committed to executing its strategic investment plans, aiming for a robust sales pipeline and sustained growth.

Revenue
SEI Investments reported a 7.8% increase in total revenue, reaching $559.60 million in Q2 2025 compared to $518.99 million in Q2 2024. This growth was driven by the company's Investment Managers segment, which generated $195.07 million. The Private Banks segment contributed $141.45 million, while Investment Advisors added $137.19 million. Institutional Investors brought in $69.34 million, and Investments in New Businesses accounted for $16.55 million, highlighting a diverse revenue stream across its operational segments.

Earnings/Net Income
SEI Investments saw its EPS surge 71.7% to $1.82 in 2025 Q2, up from $1.06 in 2024 Q2, reflecting strong earnings growth. Net income also increased significantly, reaching $227.08 million, up 63.2% from $139.12 million a year earlier. This robust performance underscores SEI's operational strength and strategic execution, showcasing a positive earnings outlook.

Post-Earnings Price Action Review
Following the earnings report, SEI's stock price saw moderate movement. Although the strategy of buying SEIC when revenue beats and selling after 30 days yielded an 83.36% return, it underperformed the benchmark return of 88.74%. Despite a reasonable risk-adjusted return, indicated by a Sharpe ratio of 0.57, the strategy experienced a maximum drawdown of 0.00%, suggesting limited downside risk management. The overall market response reflects a cautious but optimistic outlook on SEI's growth potential and strategic initiatives.

CEO Commentary
Ryan Hicke, CEO of SEI Investments Company, emphasized the strong Q2 performance, marked by a 70% EPS increase driven by effective execution and one-time gains. He highlighted investments in talent, technology, and infrastructure as key to supporting growth and enhancing capabilities. Despite challenges such as market volatility, Hicke remains optimistic about SEI's strategic investment in Stratos, aiming to innovate within wealth management and maintain strong sales momentum.

Guidance
SEI Investments projects Q3 2025 revenue at $586.7 million with an EPS of $1.26. For the full year, expected sales are around $2.3 billion, with a total revenue forecast of approximately $4.96 billion. CEO Ryan Hicke highlighted a robust sales pipeline, focusing on strategic execution and investment management to capitalize on growth opportunities.

Additional News
Recently, SEI Investments appointed two new independent directors, Karin Risi and Tom Naratil, to its board. This strategic move is expected to bring valuable expertise as the company continues to execute its growth strategies. Additionally, SEI made a strategic investment in Stratos Wealth Holdings, showcasing its commitment to innovation and leadership in the wealth management sector. In financial news, SEI repurchased 2.2 million shares for $180.8 million, reinforcing its commitment to returning value to shareholders.