Executive Summary

Q1 2025 delivered modest beats on both EPS and revenue versus S&P Global consensus, with diluted EPS $1.17 (vs. $1.138 consensus) and revenue $551.3M (vs. $550.4M consensus); strength came from record net sales events, margin expansion, and integrated cash revenue, while a higher tax rate weighed sequential EPS. Bold beat: EPS +$0.032; revenue +$0.9M . Estimates marked with * were retrieved from S&P Global.*
Net sales events reached a quarterly record of $46.6M, taking TTM net sales to $153.2M, reflecting broad-based demand across segments and geographies; pipelines remain robust despite macro volatility .
Consolidated operating margin rose to the highest level in three years (press release 28%; presentation 28.5%), driven by positive operating leverage, integrated cash program contribution, and cost control; management flagged modest investment-driven cost increases through 2025 with limited margin impact .
Capital allocation was a catalyst: SEI repurchased 2.5M shares for $192.8M in Q1 and increased its repurchase authorization by $500M in March (available authorization ~$556M), signaling confidence and ongoing support for EPS growth .
Strategic initiatives advanced: SEI launched the SEI Access alternatives marketplace and expanded direct indexing SMAs, enhancing advisor capabilities and upmarket positioning; sale of Family Office Services to Aquiline will refocus resources and is expected to deliver a strong return .

What Went Well and What Went Wrong

What Went Well

Record net sales events ($46.6M) and TTM net sales ($153.2M) with broad-based contributions across segments and geographies; “we are not seeing a slowdown in activity” (CEO) .
Margin expansion to a three-year high (press release 28%; presentation 28.5%), supported by operating leverage, cost discipline, and integrated cash program revenue; “SEI’s consolidated operating profit margin increased to 28.5%” (CFO) .
Strategic product momentum: SEI Access alternatives marketplace launched and direct indexing SMA suite expanded, positioning SEI as a “premier alternatives ecosystem” and enhancing tax-aware solutions for advisors .

What Went Wrong

Sequential EPS down ~1% and revenue softness in Advisors and Institutional segments, primarily due to higher tax rate (22.8%) and the full-quarter impact of late-2024 AUM declines and two fewer calendar days in Q1 .
LSV equity earnings decreased to $28.7M vs. $31.6M y/y and lower than Q4, reflecting late-2024 AUM declines and slightly lower incentive fees .
Macro uncertainty and tariff headlines may influence deal timing even as pipelines stay intact; management noted timing effects could shift closings “a quarter here or a quarter there” .

Financial Results

Consolidated trend (oldest → newest)

Metric	Q3 2024	Q4 2024	Q1 2025
Revenues ($USD Millions)	$537.4	$557.2	$551.3
Diluted EPS ($USD)	$1.19	$1.19	$1.17
Operating Margin (%)	26.8%	26.0%	28.0%

Actual vs S&P Global consensus (current quarter)

Metric	Actual Q1 2025	Consensus Q1 2025	Surprise
Diluted EPS ($USD)	$1.17	$1.138*	+$0.032*
Revenues ($USD Millions)	$551.3	$550.4*	+$0.9*

Estimates marked with * were retrieved from S&P Global.

Segment revenues (oldest → newest)

Segment Revenues ($USD Thousands)	Q3 2024	Q4 2024	Q1 2025
Private Banks	$138,734	$140,142	$137,714
Investment Advisors	$126,836	$139,267	$136,576
Institutional Investors	$71,626	$70,812	$68,506
Investment Managers	$184,607	$191,262	$192,048
Investments in New Businesses	$15,593	$15,707	$16,500

Segment operating profit (oldest → newest)

Segment Operating Profit ($USD Thousands)	Q3 2024	Q4 2024	Q1 2025
Private Banks	$23,637	$19,728	$22,965
Investment Advisors	$56,684	$62,428	$64,121
Institutional Investors	$33,775	$32,497	$32,636
Investment Managers	$70,489	$73,132	$74,837
Investments in New Businesses	($2,847)	($3,589)	($1,996)

Key KPIs (oldest → newest)

KPI	Q3 2024	Q4 2024	Q1 2025
Net Sales Events ($USD Millions)	$46.4	$38.2	$46.6
Assets Under Management ($USD Billions)	$493.3	$476.7	$486.0
Client Assets Under Administration ($USD Billions)	$1,046.0	$1,055.9	$1,084.3
Consolidated Operating Margin (%)	26.8%	26.1%	28.0%
LSV Equity Earnings ($USD Millions)	$36.5	$33.4	$28.7
Share Repurchases ($USD Millions)	$85.8	$259.5	$192.8
Integrated Cash Program Revenue ($USD Millions)	$10.7	$21.1	$20.8

Notes: Q1 margin is 28% in the press release vs. 28.5% cited in the presentation and call; management framed Q1 as the highest margin in three years .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Share Repurchase Authorization	March 2025	~$429M available (authorization increased by $400M in Oct 2024)	Authorization increased by $500M; available ~$556M (incl. $56M remaining)	Raised
Margin Outlook	FY 2025	Prior indication that growth investments could pressure margins near term	Costs to gradually increase through year; overall margin impact expected to be limited	Maintained discipline; limited impact
Tax Rate	Q1 2025	Q4 benefited from tax items (+$0.05 EPS)	Q1 effective tax rate increased to 22.8% due to seasonality	Seasonal increase
Strategic Portfolio (Family Office Services)	Q2 2025	N/A	Sale to Aquiline announced; assets classified as held for sale in Q1	Strategic refocus

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
Sales momentum	Record net sales events ($46M), broad-based across segments	Second-highest quarterly net sales, continued momentum	New record net sales events ($46.6M); pipelines robust	Up
Margins and cost discipline	Margin up to 26.8%, expansion across segments	Margin 26.1%; comp/timing items masked underlying expansion	Margin highest in 3 years; limited expected impact from investment timing	Up
Alternatives/IMs	Strength in alternatives, performance fees at LSV	Strong IM sales; private credit/global traction	Alternatives and global managers leading; Luxembourg depositary services contribute	Up
Advisor ecosystem/IC program	FDIC cash revenue +$10.7M; strong SA offerings	IC program $21.1M; advisor growth	IC program $20.8M; SEI Access launched; direct indexing SMA expanded	Sustained strength
Macro/regulatory	N/A	Q4 exit market pressure; Institutional headwinds (DB terminations)	Pipelines robust; macro/tariff uncertainty may affect timing; banking regulation shift seen as wealth shift catalyst	Watch timing risk

Management Commentary

CEO Ryan Hicke: “We are running SEI differently… fundamentally reshaping our operating model… The results of these efforts are evident in our performance… SEI achieved a record-breaking $47 million in net sales events in Q1” .
Strategic portfolio: “We announced the sale of our Family Office Services business… positioned to accelerate growth and adoption… sale will deliver a strong return for shareholders” .
CFO Sean Denham: “EPS of $1.17 represents an 18% increase… impact of unusual items was negligible… tax rate increased to 22.8% due to seasonality… consolidated operating margin increased to 28.5%, the highest level achieved in the last 3 years” .
Capital allocation: “We continue to invest aggressively… buying back $193M of stock… announced a $500M increase in our share repurchase authorization… ended the quarter with more than $700M of cash and no long-term debt” .

Q&A Highlights

Pipeline and macro/tariffs: Unit heads (Private Banking, IMs, Advisors) all reported robust activity with no slowdown; any macro impact likely affects deal timing, not demand .
AUM/AUA resilience drivers: Positive net flows in Advisors and Institutional offset market declines; diversification vs. typical 60/40 dampened market sensitivity; equity allocation roughly 48%, ~80% US, ~20% non-US .
Margin durability: Margin supported by onboarding of net sales and cost control; focus on returns on invested capital; thoughtful pacing of investments .
Buyback cadence: Authorization raised due to opportunity and cash position; buybacks determined quarter-by-quarter based on capital needs and valuation .
Alternatives traction: Leadership in private credit; increasing wins across private equity, real estate, infrastructure; expanding global presence (UK) paying dividends .
Private Banks: Growth shift toward regional/community banks; professional services and SEI Data Cloud resonating; broader enterprise capabilities (asset management, ops, data) differentiating SEI .

Estimates Context

Q1 2025 actuals beat consensus: EPS $1.17 vs. $1.138* (+$0.032*) and revenue $551.3M vs. $550.4M* (+$0.9M*), driven by segment profit growth, margin expansion, and integrated cash program revenue; sequential EPS decline was primarily tax-rate seasonality and lower LSV income . Estimates marked with * were retrieved from S&P Global.
Implications: Street may need to lift margin trajectory assumptions and run-rate sales conversion expectations; watch integrated cash program sustainability and incremental costs from growth investments through 2025 .

Key Takeaways for Investors

Beat quality: Small but clean EPS/revenue beats with negligible unusual items; sequential EPS headwind from tax seasonality is transitory .
Sales engine: Record net sales events and robust pipelines across segments/geographies are key catalysts for revenue conversion and margin leverage in coming quarters .
Margin trajectory: Highest margin in three years reflects operating leverage and cost discipline; management expects only modest, limited impact from growth investments—supports upward estimate revisions .
Capital returns: Aggressive repurchases and expanded authorization (~$556M available) underpin EPS support and signal confidence; cash-rich, no long-term debt balance sheet adds flexibility .
Strategic focus: SEI Access (alts marketplace) and direct indexing SMA expansion enhance advisor value and upmarket push; expect continued traction in alternatives and RIAs .
AUM/AUA resilience: Diversification and positive net flows offset equity market weakness; watch LSV earnings sensitivity and Institutional flows as macro evolves .
Trading setup: Near-term sentiment supported by margin print and buybacks; monitor next quarters for sales-to-revenue conversion pace and expense ramp; any confirmation of sustained 28%+ margin could be an upside catalyst .

Sources

Q1 2025 press release and exhibits (financials, segments, assets, cash flows): .
Q1 2025 earnings presentation highlights: .
Q1 2025 earnings call transcript: prepared remarks and Q&A: ; alternate transcript corroboration: .
Prior quarters: Q4 2024 press release and exhibits: ; Q3 2024 press release and exhibits: .
Other relevant press releases (Q1 2025): Repurchase authorization increase (Mar 18, 2025): ; SEI Access launch (Mar 3, 2025): ; Direct indexing SMA expansion (Mar 31, 2025): .