Question · Q4 2025
Kerner Smith from Morgan Stanley asked for insights into the expected run-rate financial impact of the Stratos acquisition on the Investment Advisor segment once fully consolidated, noting that Q4 only reflected a partial quarter. He also inquired about the updated timeline for the planned resegmentation discussed at Investor Day. Additionally, Smith questioned whether Stratos would continue pursuing acquisitions during its integration phase or if those activities would be paused.
Answer
CEO Ryan Hicke provided Q4 color for Stratos, noting approximately $5 million in revenue for the advisory segment and just under $1 million in operating income (including nearly $2 million in amortization expense), with $300,000 of NCI. He stated that more information would be available in Q1 after a full quarter of consolidation. Hicke confirmed that Stratos's strategy of pursuing additional acquisitions and rolling up entities remains unchanged, with several planned acquisitions completed in early January.
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