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SEI Investments Q2 Earnings Beat Estimates as Revenues & AUM Rise Y/Y

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Key Takeaways

  • SEIC's Q2 EPS rose 70% y/y to $1.78, beating the estimate of $1.18.
  • Revenues grew 8% y/y to $559.6M but fell short of the consensus estimate of $561.1M.
  • AUM rose 10% y/y to $517.5B, with the AUA climbing 11% to $1.14T.

SEI Investments Co.’s (SEIC - Free Report)  second-quarter 2025 earnings per share (EPS) of $1.78 beat the Zacks Consensus Estimate of $1.18. Moreover, the bottom line reflected a rise of 70% from the prior-year quarter.

Results were aided by higher revenues and a rise in assets under management (AUM). However, higher expenses acted as a spoilsport.

Net income was $227.1 million, up 63% from the year-ago quarter. Our estimate for the metric was $145.3 million.

SEIC’s Revenues & AUM Improve, Expenses Rise

Total revenues were $559.6 million, up 8% year over year. The rise was driven by higher asset management, administration and distribution fees, as well as information processing and software servicing fees. However, the top line missed the Zacks Consensus Estimate of $561.1 million.

Total expenses were $411 million, up 7% year over year. The increase was driven by a rise in almost all cost components, except for amortization and depreciation charges. Our estimate for the metric was $409.8 million.

Operating income increased 9% year over year to $148.6 million. Our estimate for the metric was $139.7 million.

As of June 30, 2025, AUM was $517.5 billion, reflecting a rise of 10% from the prior-year quarter. Client assets under administration (AUA) were $1.14 trillion, up 11% year over year. Client AUA did not include $11.4 billion related to Funds of Funds assets reported as of June 30, 2025.

SEI Investments’ Share Repurchase Update

In the reported quarter, SEIC bought back 2.2 million shares for $180.8 million at an average price of $83.60 per share.

Our View on SEIC

SEI Investments’ global presence, diverse product offerings, solid balance sheet, strategic acquisitions and a robust AUM balance are expected to keep supporting the top line. However, elevated operating expenses, led by technological upgrades alongside concentrated fee-based revenues, are concerning.

SEI Investments Company Price, Consensus and EPS Surprise

 

SEI Investments Company Price, Consensus and EPS Surprise

SEI Investments Company price-consensus-eps-surprise-chart | SEI Investments Company Quote

Currently, SEI Investments sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Performance of Other Asset Managers

Invesco’s (IVZ - Free Report) second-quarter 2025 adjusted earnings of 36 cents per share lagged the Zacks Consensus Estimate of 40 cents. Moreover, the bottom line declined 16.3% from the prior-year quarter.

Invesco’s results were adversely impacted by higher adjusted operating expenses. However, a rise in adjusted net revenues was a tailwind. An increase in the AUM balance, driven by solid inflows, was another positive. 

BlackRock’s (BLK - Free Report) second-quarter 2025 adjusted earnings of $12.05 per share handily surpassed the Zacks Consensus Estimate of $10.66. The figure reflects a rise of 16% from the year-ago quarter.

BlackRock’s results benefited from a rise in revenues. AUM witnessed robust growth, reaching a record high of $12.52 trillion, driven by net inflows, market appreciation and favorable foreign exchange impact. However, higher expenses acted as a headwind.


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