SEI Investments (SEIC) Financials

SEI Investments (NASDAQ: SEIC) has delivered strong multi-year earnings growth, although second-quarter 2026 results softened from the unusually strong year-ago period. Q2 revenue increased from $499.0 million in 2023 to $531.1 million in 2024 and $669.5 million in 2025, before easing to $659.1 million in 2026. Common-shareholder net income followed a similar pattern, rising from $118.9 million in Q2 2023 to $139.1 million in Q2 2024 and $227.1 million in Q2 2025, then declining to $195.7 million in Q2 2026.

The latest quarter still compares favorably with earlier periods. Diluted earnings per share increased from $0.89 in Q2 2023 to $1.06 in Q2 2024, $1.78 in Q2 2025 and $1.59 in Q2 2026. However, Q2 2026 EPS declined approximately 11% year over year, reflecting higher operating expenses and lower non-interest income.

• Long-term earnings growth remains significant: Q2 2026 common net income was approximately 64.6% above Q2 2023, while diluted EPS was about 79% higher.
• Revenue remains near record levels: Q2 2026 revenue of $659.1 million was only 1.6% below Q2 2025 and substantially above the $478.5 million reported in Q1 2023 and $467.9 million in Q4 2022.
• Operating cash generation is healthy: cash flow from operating activities reached $125.8 million in Q2 2026, up from $96.5 million in Q2 2025 and $68.1 million in Q2 2023. After capital expenditures, approximate operating cash flow less property and equipment purchases was $111.6 million.
• Liquidity has improved: cash and due from banks increased to $868.2 million at June 30, 2026, compared with $803.4 million at the end of Q1 2026 and $746.3 million at June 30, 2025.
• Leverage remains modest: reported short- and long-term debt totaled approximately $53.7 million in Q2 2026, a small amount relative to cash and total common equity of approximately $2.5 billion.
• Shareholder returns remain substantial: SEI repurchased $105.9 million of common stock and paid $63.9 million in dividends during Q2 2026. Repurchases also reduced weighted-average basic shares to 120.3 million from 124.5 million in Q2 2025, supporting per-share results.
• Investment activity was a net source of cash in Q2 2026: proceeds from sales and maturities of investments exceeded investment purchases, producing $29.1 million of investing cash flow despite $14.2 million of capital spending.
• Income remains heavily dependent on non-interest sources: Q2 2026 non-interest income was $652.6 million, or roughly 99% of total revenue. This supports SEI’s asset-management and service-oriented business model but can make results sensitive to market levels, client assets and fee activity.
• Year-over-year profitability declined: Q2 2026 pretax income fell to $253.2 million from $292.1 million, while common net income decreased 13.8% from $227.1 million. Diluted EPS declined from $1.78 to $1.59.
• Expense growth is outpacing current revenue growth: total non-interest expense increased to $444.6 million in Q2 2026 from $411.0 million in Q2 2025, with salaries and benefits rising to $224.2 million and occupancy and equipment costs reaching $68.3 million.

Balance-sheet trend: Total reported assets increased sharply to $3.53 billion in Q2 2026 from $2.63 billion in Q2 2025. Goodwill and intangible assets also rose substantially, reaching $389.4 million and $697.7 million, respectively, compared with $168.7 million and $300.8 million a year earlier. This indicates a materially larger intangible-asset base, which investors should monitor for integration risk, amortization expense and potential impairment charges.

Cash-flow trend: SEI has consistently generated positive operating cash flow across the periods provided, but financing cash flow has generally been negative because of buybacks and dividends. Q2 2026 financing outflows of $118.5 million were partly offset by $50.9 million of common-equity issuance. The company’s cash balance nevertheless increased by $32.3 million during the quarter.

Overall, the statements point to a financially strong company with substantial liquidity, limited debt, durable cash generation and an active capital-return program. The principal risks are the recent decline from elevated 2025 earnings, rising operating costs and the increased concentration of assets in goodwill and intangible assets. Some provided balance-sheet totals do not fully reconcile between total assets and total liabilities plus equity, so the balance-sheet figures should be interpreted alongside the company’s filed reports.