Net Sales Events

Increased to a record $46.6 million " " "

**Q1 2025 saw record net sales events at $46.6 million, indicating significantly higher revenue generation compared to Q1 2024; this reflects stronger business momentum and market performance. " " " **

Operating Margin

Increased to 28.5%, highest in three years " " "

**The operating margin improved to 28.5%, driven by effective cost control measures and operational leverage; this marks a notable enhancement from previous periods where margins were lower. " " " **

Capital Allocation

$255 million returned to shareholders "

**Capital allocation improved with $255 million returned to shareholders, suggesting robust free cash flow and enhanced confidence in financial stability compared to prior periods. " **

Business Unit Performance

Growth in operating profit and margins across all units " " "

**All business units registered profit and margin growth, supported by the successful Integrated Cash Program and new product launches, reflecting a strategic execution that builds on earlier period achievements. " " " **

EPS

Q2 2025

no prior guidance [N/A]

$1.78 including one‑time items; $1.20 excluding them "

no prior guidance

Margins

Q2 2025

no prior guidance [N/A]

Margins decreased in Q2 due to investments; expected to remain consistent with Q2 levels "

no prior guidance

Sales Pipeline

Q2 2025

no prior guidance [N/A]

Strong pipeline with expectations for an accelerated pace of wins in the latter half of the year " "

no prior guidance

Capital Return and Leverage

Q2 2025

no prior guidance [N/A]

Aim to maintain a cash level of around $300 million and free cash flow of $500–$600 million "

no prior guidance

Strategic Investment in Stratos

Q2 2025

no prior guidance [N/A]

Announced a strategic investment in Stratos to capture long‑term shareholder value " "

no prior guidance

Sales Pipeline & Net Sales Events

Q1 2025: Record‐breaking sales events (e.g. $47M net sales with high recurring component " " ); Q4 2024: Notable sales events ($38M with broad-based wins " " ); Q3 2024: Achieved a record quarter with diversified deals and strong pipeline " " "

Q2 2025: Strong and balanced pipeline across segments, with temporary delays in Private Banking due to market volatility, and nearly $30M in net sales events " " " " "

Consistent strength in pipeline and sales events, with minor timing delays attributable to market conditions.

Margin Performance

Q1 2025: Achieved record operating margins (28.5%) driven by positive operating leverage and cost control " " ; Q4 2024: Improved margins despite challenges like higher incentive compensation " " ; Q3 2024: Broad margin expansion fueled by efficiency improvements including AI and automation investments " "

Q2 2025: Margins under pressure from targeted investments in talent and technology; sequential decline noted but with slight year‐over‐year improvement " " "

Continued focus on margin expansion though short-term pressure from strategic investments is evident; overall sustainability remains a priority.

Capital Allocation & Share Repurchase

Q1 2025: Active share repurchase ($193M in Q1; increased authorization, strong balance sheet with no long‐term debt) " " ; Q4 2024: Highest repurchase levels and robust capital returns (e.g. repurchased $259M in Q4) " " ; Q3 2024: Maintained strong liquidity with significant buybacks "

Q2 2025: Continued commitment to returning capital (buybacks exceeding $700M TTM) and funding strategic investments (e.g. Stratos) while maintaining low leverage and strong cash generation " "

Steady focus on balanced capital allocation remains consistent, with ongoing robust share repurchase programs supporting shareholder value.

Client Acquisition, Diversification & Retention

Q1 2025: Strong sales events, record client engagement and broadened offerings in regional/community banks; robust client symposium and contract renewals " " " " " ; Q4 2024: Broad-based sales growth and improved retention in Private Banking " " ; Q3 2024: Emphasis on enterprise approach and diverse product expansion " "

Q2 2025: Maintains a healthy sales pipeline across all segments with strategic investments (e.g. Stratos) enhancing service delivery; targeted focus on diversification and flawless client execution " " " " " "

Consistent proactive client growth across periods with added strategic moves (e.g. Stratos) in the current period to further enhance diversification and retention.

Strategic Investments

Q1 2025: General discussion of pursuing strategic investments to drive long‐term growth " ; Q4 2024 and Q3 2024: No specific mention of Stratos or similar investments

Q2 2025: Explicit announcement of a transformative strategic investment in Stratos to integrate a client‐centric advisory model and enhance long-term growth prospects " " " "

Emergence of a specific strategic investment (Stratos) in Q2 marking a shift from general investment commentary to a focused, transformative initiative with potential long‐term impact.

Technology Investment and AI/Automation

Q3 2024: Extensive focus on efficiency gains through investments in AI, automation, and enhanced integration services " ; Q1 2025: Mentions of technology investments to support business growth albeit modest investment pace " ; Q4 2024: No specific discussion on AI/automation

Q2 2025: Focus on investing in technology to scale systems and improve cost efficiency, although no explicit mention of AI/automation technologies "

Shift from explicit emphasis on AI/automation in Q3 2024 to a broader focus on scalable technology investments in Q2 2025, suggesting a slight recalibration rather than a complete de‐emphasis.

Macro Uncertainty and Delayed Deal Closures

Q1 2025: CEO acknowledged high market uncertainty with potential shifts in deal closure timing " " " ; Q3 2024: Notes on delayed sales events being caught up later, reflecting cyclical deal timing " " ; Q4 2024: Indirect impacts via institutional challenges and market conditions " "

Q2 2025: Direct discussion of market volatility in April causing temporary delays in private banking deal closures, while underlying pipeline remains robust " " "

Consistent theme of macro uncertainty affecting deal timing; the issue persists over periods though the overall pipeline strength remains intact.

Integrated Cash Program Contribution and Volatility

Q1 2025: Noted significant contribution from the Integrated Cash Program with improved revenue " " ; Q3 2024: Detailed discussion on its contribution and balance volatility following program modifications " " ; Q4 2024: Recognized nearly $20M contribution with notable balance volatility " "

Q2 2025: Continued contribution (around $21M revenue) with volatility impacting timing in private banking, reaffirming consistent importance despite fluctuations " "

Stable contributor across periods with expected volatility in balances; the program’s impact remains a key component of earnings despite inherent fluctuations.

Structural Headwinds in Institutional Investors Business

Q4 2024: Discussed significant headwinds from structural terminations in defined benefit plans causing revenue drag " " ; Q1 and Q3 2024: Little or no mention of such issues

Q2 2025: No explicit mention of headwinds; institutional flows showing improvement compared to prior periods " "

While structural challenges were prominent in Q4 2024, they have receded in focus during Q2 2025, suggesting either temporary alleviation or shifting attention away from this issue.

Tax Rate Impact on Profitability

Q1 2025: Noted a sequential decline in EPS due to a higher tax rate (from 18.5% to 22.8%) " ; Q4 2024: Benefited from a lower tax rate offsetting some expenses "

Q2 2025: Not mentioned in the current period [N/A]

Tax rate impacts were a notable theme in earlier periods but have dropped out of the current discussion, indicating less focus on this factor in Q2 2025.

One-Time Items and Earnings Sustainability

Q3 2024: Significant one-time gains (e.g. real estate sale, performance fee) contributed to EPS improvement " ; Q1 2025: Minimal one-time impact provided a clearer earnings picture " " ; Q4 2024: Multiple one-time items (incentive, stock compensation, currency gains) influenced EPS, yet underlying trends remained solid " " "

Q2 2025: One-time items (e.g. sale of Family Office Services and a vendor negotiation gain) provided a boost to EPS, with adjusted earnings suggesting a sustainable underlying performance " "

One-time items continue to affect quarterly EPS; management consistently differentiates transient impacts from sustainable earnings, with Q2 2025 aligning with the narrative of long-term sustainability.