SEI Investments | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 641.62 M

Revenue: As of FY2026 Q2, the actual value is USD 641.62 M, beating the estimate of USD 636.35 M.

EPS: As of FY2026 Q2, the actual value is USD 1.59, beating the estimate of USD 1.4109.

EBIT: As of FY2026 Q2, the actual value is USD 190.57 M.

Consolidated Financial Performance

• Revenues (U.S. GAAP Basis)
  • For the three months ended June 30, 2026, revenues were $641,617 thousand, a 15% increase from $559,601 thousand in 2025. This also represents a 14.7% increase year-over-year and 3.1% quarter-over-quarter .
  • For the six months ended June 30, 2026, revenues were $1,263,800 thousand, a 14% increase from $1,110,945 thousand in 2025 .
• Income from Operations (U.S. GAAP Basis)
  • For the three months ended June 30, 2026, income from operations was $197,016 thousand, a 33% increase from $148,635 thousand in 2025. This is also reported as $197.0 million, an increase of 32.6% year-over-year and 4.0% quarter-over-quarter .
  • For the six months ended June 30, 2026, income from operations was $386,502 thousand, a 26% increase from $305,732 thousand in 2025 .
• Operating Margin (U.S. GAAP Basis)
  • For the three months ended June 30, 2026, the operating margin was 31%, a 15% increase from 27% in 2025. This is also reported as 30.7%, an improvement of 4.1% year-over-year and 0.3% quarter-over-quarter .
  • For the six months ended June 30, 2026, the operating margin was 31%, an 11% increase from 28% in 2025 .
• Net Income Attributable to SEI Investments Company (U.S. GAAP Basis)
  • For the three months ended June 30, 2026, net income was $195,658 thousand, a -14% decrease from $227,083 thousand in 2025 .
  • For the six months ended June 30, 2026, net income was $370,145 thousand, a -2% decrease from $378,600 thousand in 2025 .
• Adjusted Income from Operations (Non-GAAP Basis)
  • For the three months ended June 30, 2026, adjusted income from operations was $206,951 thousand, a 36% increase from $152,612 thousand in 2025. This is also reported as $207.0 million, an increase of 35.6% year-over-year and 4.2% quarter-over-quarter .
  • For the six months ended June 30, 2026, adjusted income from operations was $405,634 thousand, a 30% increase from $313,158 thousand in 2025 .
• Adjusted Operating Margin (Non-GAAP Basis)
  • For the three months ended June 30, 2026, the adjusted operating margin was 32%, a 19% increase from 27% in 2025. This is also reported as 32.3%, an improvement of 5.0% year-over-year and 0.3% quarter-over-quarter .
  • For the six months ended June 30, 2026, the adjusted operating margin was 32%, a 14% increase from 28% in 2025 .

Segment Performance (Second Quarter 2026 vs. Second Quarter 2025)

• Investment Managers
  • Revenues: $227,679 thousand, a 17% increase from $195,067 thousand . This is also reported as $228 million, a 17% increase year-over-year .
  • Expenses: $136,078 thousand, a 12% increase from $121,636 thousand .
  • Operating Profit: $91,601 thousand, a 25% increase from $73,431 thousand . This is also reported as $92 million, a 25% increase year-over-year .
  • Operating Margin: 40%, up from 38% .
• Private Banks
  • Revenues: $156,879 thousand, an 11% increase from $141,449 thousand . This is also reported as $157 million, an 11% increase year-over-year .
  • Expenses: $125,220 thousand, a 5% increase from $118,724 thousand .
  • Operating Profit: $31,659 thousand, a 39% increase from $22,725 thousand . This is also reported as $32 million, a 39% increase year-over-year .
  • Operating Margin: 20%, up from 16% .
• Investment Advisors
  • Revenues: $177,897 thousand, a 30% increase from $137,193 thousand . This is also reported as $178 million, a 30% increase year-over-year .
  • Expenses: $101,866 thousand, a 34% increase from $75,801 thousand .
  • Operating Profit: $74,670 thousand, a 22% increase from $61,392 thousand . This is also reported as $75 million, a 22% increase year-over-year .
  • Operating Margin: 42%, down from 45% .
• Institutional Investors
  • Revenues: $69,702 thousand, a 1% increase from $69,343 thousand . This is also reported as $70 million, a 1% increase year-over-year .
  • Expenses: $36,826 thousand, a 3% increase from $35,857 thousand .
  • Operating Profit: $32,876 thousand, a -2% decrease from $33,486 thousand . This is also reported as $33 million, a -2% decrease year-over-year .
  • Operating Margin: 47%, down from 48% .
• Investments in New Businesses
  • Revenues: $9,460 thousand, a -43% decrease from $16,549 thousand .
  • Expenses: $10,039 thousand, a -46% decrease from $18,430 thousand .
  • Operating Loss: -$579 thousand, a -69% decrease from -$1,881 thousand .

Operational Metrics

• Sales Events (Second Quarter 2026)
  • Total net sales events were $43.5 million, marking a 49.0% increase year-over-year .
  • Year-to-date sales events totaled $110.6 million .
  • Recurring sales events were $32.6 million .
  • Private Banks generated $10.1 million in sales events .
  • Investment Managers led with $32.0 million in sales events, with approximately half from new client wins and three-quarters from alternative investments . The Investment Manager Services (IMS) business generated $32 million of sales events, with approximately three-quarters associated with alternative investment mandates .
  • Advisors and Institutional generated -$2.8 million of net sales events .
• Assets (June 30, 2026)
  • Ending assets under administration increased 5% during the quarter due to funding of alternative mandates and market appreciation .
  • Ending assets under management increased 9.5% to $606.7 billion, driven by strong market appreciation . Assets Under Management (AUM) were $606.7 billion, an increase of 17.2% year-over-year and 9.5% quarter-over-quarter .
  • LSV generated $2.0 billion of net inflows and its total assets increased by nearly $17 billion during the quarter . LSV generated approximately $2 billion of net inflows .
  • Total assets managed, advised, or administered by SEI Investments Company were approximately $2.1 trillion .
  • Administration, Platform & Advisement Assets were $1,407.7 billion, an increase of 19.6% year-over-year and 5.4% quarter-over-quarter .
  • LSV performance fees totaled approximately $17 million, with $6.5 million attributable to SEI Investments Company .

Cash Flow (Six Months Ended June 30)

• Net Cash Provided by Operating Activities
  • 2026: $347,367 thousand .
  • 2025: $243,005 thousand .
• Net Cash Provided by Investing Activities
  • 2026: $16,863 thousand .
  • 2025: $65,268 thousand .
• Net Cash Used in Financing Activities
  • 2026: -$356,918 thousand .
  • 2025: -$419,220 thousand .

Capital Allocation, Liquidity, and Capitalization

• SEI Investments Company ended the quarter with nearly $400 million in cash .
• Long-term debt was $29 million .
• Market capitalization was $11,500 million .
• During the quarter, SEI Investments Company repurchased 1.3 million shares of common stock for $112.4 million at an average price of $86.92 per share . The company repurchased $112 million of stock at an average price of $87 during Q2 .

Outlook / Guidance

SEI Investments Company anticipates that its strategic goals and investments will meaningfully contribute to future growth, with expectations for the expansion of private markets into retail and retirement channels . The company also foresees benefits from embedding Artificial Intelligence into workflows and expanding client opportunities into larger, enterprise-wide engagements . These efforts aim for stronger financial performance and continued funding of growth initiatives .