SEI Investments Co
NASDAQ:SEIC
SEI Investments Co
SEI Investments Co., founded in 1968 by visionary Alfred P. West Jr., embarked on a journey that began with the automation of trust operations for banks. Over the decades, the company strategically evolved, transforming from a single-focus organization into a multifaceted financial services powerhouse. Resting on its technical backbone, SEI developed an array of software solutions designed to streamline asset management processes, serving not just banks but also investment advisors and institutional investors. By innovating within the burgeoning intersection of technology and finance, SEI carved out a unique niche, providing the infrastructure that financial institutions need to efficiently manage their investments.
The essence of SEI's business model lies in its ability to offer comprehensive wealth and investment management solutions. It earns revenue by providing customized platforms that integrate investment processing, operations, and management services. Clients range from financial advisors to large institutions, each benefiting from SEI's technological prowess and consistently evolving products. This symbiotic relationship allows SEI to generate steady income through fees associated with asset management and administration services. The company's ongoing commitment to innovation ensures it remains a key player in the financial technology landscape, adeptly navigating the ever-changing demands of the market while delivering robust solutions to its diverse clientele.
SEI Investments Co., founded in 1968 by visionary Alfred P. West Jr., embarked on a journey that began with the automation of trust operations for banks. Over the decades, the company strategically evolved, transforming from a single-focus organization into a multifaceted financial services powerhouse. Resting on its technical backbone, SEI developed an array of software solutions designed to streamline asset management processes, serving not just banks but also investment advisors and institutional investors. By innovating within the burgeoning intersection of technology and finance, SEI carved out a unique niche, providing the infrastructure that financial institutions need to efficiently manage their investments.
The essence of SEI's business model lies in its ability to offer comprehensive wealth and investment management solutions. It earns revenue by providing customized platforms that integrate investment processing, operations, and management services. Clients range from financial advisors to large institutions, each benefiting from SEI's technological prowess and consistently evolving products. This symbiotic relationship allows SEI to generate steady income through fees associated with asset management and administration services. The company's ongoing commitment to innovation ensures it remains a key player in the financial technology landscape, adeptly navigating the ever-changing demands of the market while delivering robust solutions to its diverse clientele.
Record EPS: SEI posted its highest ever quarterly earnings per share at $1.38 in Q4, up 16% year-over-year and 6% sequentially, even after accounting for unusual expenses.
Broad-Based Strength: Revenue growth and margin expansion were seen across nearly all business segments, with particular strength in Private Banking.
Sales Momentum: Total sales events reached $44 million, one of the company’s highest ever, with Private Banking contributing $28 million in net sales.
Margin Expansion: Operating margin expanded by more than a full percentage point for the year, driven by growth in professional services and cost leverage.
Strategic Progress: SEI closed its Stratos partnership and continues to invest in AI, automation, and new product launches, including ETFs and SaaS offerings.
Cost Actions: A targeted workforce reduction affecting about 3% of staff was implemented to support continued investment and operational efficiency.
Capital Allocation: SEI repurchased $616 million of shares in 2025, about 6% of shares outstanding, and completed the Stratos acquisition with cash.
2026 Outlook: Management expects to sustain sales momentum into 2026, with continued investment in growth and efficiency, but noted seasonality and higher Q1 expenses.
