SEI Investments Company

What they do

SEI operates an integrated platform combining technology, trust-based custody through SEI Private Trust Company, operations outsourcing, and investment management. It serves clients across four segments: Investment Managers, Private Banks, Investment Advisors, and Institutional Investors. In 2025, approximately 57% of revenue came from technology and operations outsourcing, 38% from asset management fees, and the remainder from professional services. The company employs over 5,000 people from service centers in the U.S., U.K., Ireland, Canada, continental Europe, India, and South Africa.

Revenue drivers

• Investment Managers — Provides global fund administration, depositary, middle-office services, and alternative investment administration. Q2 2026 revenues were $227.7M, about 35% of total quarterly revenue, with a 40% operating margin.
• Investment Advisors — Delivers wealth platform technology and asset management to RIAs. Q2 2026 revenues were $177.9M, about 28% of total, growing 30% year over year, with a 42% operating margin.
• Private Banks — Provides trust-based custody and technology to banks. Q2 2026 revenues were $156.9M, about 24% of total, with a 20% operating margin.
• Institutional Investors — Offers investment management and advisory services to institutional clients. Q2 2026 revenues were $69.7M, about 11% of total, with a 47% operating margin.

Recent performance

For Q2 2026, revenue was $641.6M, up 15% from $559.6M a year earlier, and operating income grew 33% to $197.0M. GAAP diluted EPS declined 11% to $1.59, while adjusted diluted EPS rose 38% to $1.66. GAAP net income attributable to SEI fell 14% to $195.7M. For the first half of 2026, revenue rose 14% to $1,263.8M and operating income grew 26% to $386.5M.

Strategy

Management is executing on strategic and operational changes initiated over the last four years, focusing on capital allocation, value proposition evolution, and resource concentration in areas of competitive advantage. In December 2025, SEI completed the first stage of a strategic investment in Stratos Wealth Holdings, a network supporting financial advisors, reinforcing its advice segment footprint. SEI continues investing in cybersecurity, cloud infrastructure, data analytics, and AI/automation tools including the SEI Data Cloud and SEI Access platform. The company emphasizes its integrated ecosystem across advice, asset management, and administration, and leadership in alternatives and private markets.

Risks

• Market-driven revenue risk — A significant portion of revenues is fee-based on market value of client assets, so market declines directly reduce assets under management and earnings.
• Interest rate and sweep fee risk — SEI earns important fee income from sweeping client cash into interest-bearing deposits at third-party banks; interest rate changes or client withdrawals could decrease these fees.
• Client concentration and retention risk — SEI serves leading institutions, and prolonged market volatility may impact its ability to attract new assets or retain existing clients, adversely affecting financial performance.
• Valuation and liquidity risk — Periods of market volatility, geopolitical turmoil, or illiquid markets can make it difficult to value or liquidate certain investments, potentially forcing write-downs or sales at depressed prices.

Outlook

Management characterizes Q2 2026 as record-setting results and states that strategic and operational changes are translating into meaningful financial performance. CEO Ryan Hicke says the company is deliberate in capital allocation and focused on areas of sustainable competitive advantage, driving stronger sales quality, expanding margins, and enterprise leverage. SEI intends to continue investing in capabilities, talent, and innovation.