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SEI Investments Beats on Q4 Earnings as Revenues & AUM Grow Y/Y

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Key Takeaways

  • SEI Investments posted Q4 EPS of $1.38, topping estimates and rising 16% y/y.
  • SEIC's quarterly revenue rose 9% y/y to $607.9M, while AUM climbed 16% to $554.6B.
  • SEI Investments faced higher expenses, including Stratos-related costs, even as net income grew.

SEI Investments Co.’s (SEIC - Free Report)  fourth-quarter 2025 earnings of $1.38 per share beat the Zacks Consensus Estimate of $1.34. Moreover, the bottom line reflected a rise of 16% 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.

In the reported quarter, SEIC wrapped up the first stage of its strategic collaboration with Stratos Wealth Holdings (the partnership was announced in July 2025, when SEIC agreed to invest roughly $527 million for a 57.5% stake in Stratos across two phases).

Fourth-quarter 2025 results were impacted by $20.1 million of elevated corporate overhead attributable to severance expenses and third-party M&A fees related to Stratos, a $3-million tax benefit from purchased energy credits and a $3.3-million revenue accrual true-up benefit in the company’s Investment Managers segment.

Net income attributable to SEI Investments was $172.5 million, up 11% from the year-ago quarter.

For 2025, earnings of $5.63 per share surpassed the Zacks Consensus Estimate of $4.99. Net income attributable to SEI Investments was $715.3 million, up 23% from the previous year.

SEIC’s Revenues & AUM Improve, Expenses Rise

Total quarterly revenues were $607.9 million, up 9% year over year. The rise was driven by higher asset management, administration and distribution fees, as well as information processing and software servicing fees. The top line beat the Zacks Consensus Estimate of $595.8 million.

Full-year revenues were $2.30 billion, up 8% year over year. The top line marginally beat the Zacks Consensus Estimate of $2.29 billion.

Total quarterly expenses were $446.3 million, up 8% year over year. The increase was driven by a rise in almost all cost components, except for stock-based compensation costs, consulting, outsourcing and professional fees, and depreciation charges.

Operating income increased 11% year over year to $161.6 million.

As of Dec. 31, 2025, AUM was $554.6 billion, reflecting a rise of 16% from the prior-year quarter. Client assets under administration (AUA) were $1.25 trillion, up 18% year over year. Client AUA did not include $13 billion related to Funds of Funds assets reported as of Dec. 31, 2025.

SEI Investments’ Share Repurchase Update

In the reported quarter, SEIC bought back 1.2 million shares for $101 million at an average price of $82.61 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 carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Asset Managers

BlackRock’s (BLK - Free Report) fourth-quarter 2025 adjusted earnings of $13.16 per share handily surpassed the Zacks Consensus Estimate of $12.39. The figure reflected a 10.3% rise from the year-ago quarter.

BLK’s results benefited from a rise in revenues. The AUM balance witnessed robust year-over-year growth to a record high of $14.04 trillion, driven by net inflows. However, higher expenses created a headwind.

Invesco’s (IVZ - Free Report) fourth-quarter 2025 adjusted earnings of 62 cents per share surpassed the Zacks Consensus Estimate of 57 cents. The bottom line increased 19.2% from the prior-year quarter.

IVZ’s results were primarily aided by an increase in adjusted revenues. Moreover, growth in the AUM balance to record levels supported the results to an extent. However, an increase in adjusted operating expenses was a headwind.


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