Abstract
SEI Investments will report quarterly results on October 28, 2025, Post Market; this preview consolidates current-quarter forecasts, last-quarter performance, and recent institutional views to frame the near-term setup.
Market Forecast
Consensus and company-indicated projections point to current-quarter revenue of USD 596.97 million, adjusted EPS of USD 1.35, and EBIT of USD 168.29 million, reflecting estimated year-over-year growth of 7.64% for revenue, 12.51% for EPS, and 11.45% for EBIT. Forecast commentary suggests stable to slightly improving profitability, though explicit gross margin and net margin guidance for the current quarter is not provided; last quarter’s margins serve as a reference point.
SEI Investments’s main business portfolio shows diversified fee streams across investment manager services at USD 207.05 million, investment advisory at USD 147.47 million, private banking at USD 143.99 million, institutional investor services at USD 71.83 million, and new business investments at USD 8.18 million, indicating breadth across solutions and client types with steady momentum.
The most promising segment in the near term appears to be investment manager services, contributing USD 207.05 million last quarter; preliminary commentary suggests ongoing demand for outsourced technology and operations, and fee resiliency that may support mid-single-digit growth on a year-over-year basis.
Last Quarter Review
SEI Investments reported revenue of USD 526.03 million, a gross profit margin of 78.04%, GAAP net profit attributable to the parent company of USD 164.00 million, a net profit margin of 28.38%, and adjusted EPS of USD 1.29, with adjusted EPS rising 8.40% year over year and GAAP net profit declining 27.69% quarter over quarter.
One notable highlight was margin resilience, as the company sustained a 78.04% gross profit margin and a 28.38% net profit margin despite revenue pressure versus estimates.
Main business highlights include investment manager services revenue of USD 207.05 million, investment advisory revenue of USD 147.47 million, private banking revenue of USD 143.99 million, institutional investor services revenue of USD 71.83 million, and new business investments revenue of USD 8.18 million; year-over-year growth details for segments were not disclosed alongside these figures.
Current Quarter Outlook
Investment Manager Services
Investment manager services represents the largest revenue contributor and an anchor for SEI Investments’s fee base. The segment’s scale—USD 207.05 million last quarter—reflects entrenched client relationships and recurring services across technology, operations, and administration. In the current quarter, the forecasted revenue uplift to USD 596.97 million at the group level implies incremental contribution from manager services consistent with broader asset-servicing demand and sustained platform utilization. Pricing mix, underlying assets under administration, and client onboarding pace will be essential for translating top-line growth into margin durability. With last quarter’s gross profit margin at 78.04%, the segment’s service intensity and software leverage can support profitability if activity levels remain firm. Contract renewals and conversion milestones are key operational checkpoints for the quarter.
Investment Advisory
Investment advisory delivered USD 147.47 million last quarter, underscoring its role in SEI Investments’s multi-segment model. Advisory revenues often track market levels and flows, with sensitivity to equity and fixed income performance. For the current quarter, the EPS estimate of USD 1.35 and EBIT of USD 168.29 million, along with projected revenue growth of 7.64% year over year, suggest that advisory revenues can stabilize or edge higher if client portfolios benefit from supportive markets. Fee-based advisory tends to carry favorable operating leverage; however, investment mix shifts and episodic client redemptions can temper growth. The company’s ability to align advisory mandates with risk objectives and to expand model-based solutions may aid retention and incremental wins.
Private Banking
Private banking at USD 143.99 million last quarter remains a meaningful contributor, blending deposit-related economics with wealth solutions. The balance of net interest dynamics and fee income is a driver for profitability in this segment. Given last quarter’s net profit margin of 28.38%, discipline in credit and pricing can help sustain margin quality, though rate environment shifts influence spread income. For the current quarter, group-level EBIT and EPS projections imply that private banking’s contribution will be consistent, with potential modest revenue uplift if client activity and advisory penetration remain stable. Asset allocation shifts among high-net-worth clients, along with technology-enabled engagement, are likely to shape the segment’s momentum.
Institutional Investor Services
Institutional investor services generated USD 71.83 million last quarter, reflecting the breadth of SEI Investments’s servicing capabilities for institutions. The unit’s results hinge on mandates, service depth, and operational scope. In the current quarter, the broader revenue uptick and EPS expansion suggest that institutional services can improve incrementally, aided by onboarding timelines and cross-sell opportunities. Operational throughput, technology deployment efficiency, and client satisfaction metrics provide context for potential margin capture. The segment’s scalability supports operating leverage if service volumes rise.
Key Stock Price Drivers This Quarter
Stock performance will be most sensitive to the relationship between top-line acceleration and margin preservation relative to last quarter’s benchmarks. Investors will watch whether the implied revenue growth of 7.64% year over year translates to EPS of USD 1.35, validating EBIT of USD 168.29 million. Any deviation from implied operating leverage—especially if gross margin moves from the 78.04% reference and net margin diverges from the 28.38% level—will influence sentiment. Segment composition matters: stronger contributions from investment manager services and advisory, compared to more rate-sensitive private banking, may support a cleaner earnings mix. Execution on client onboarding, retention, and platform resiliency will also affect the outlook.
Analyst Opinions
Institutional commentary collected in recent months indicates a cautious constructive stance is the majority view, emphasizing execution against forecasted revenue of USD 596.97 million and EPS of USD 1.35. Commentary points to balanced expectations: manageable cost trends supporting EBIT of USD 168.29 million, with attention on whether margin profiles remain consistent with last quarter’s 78.04% gross margin and 28.38% net margin benchmarks. Notes from recognizable sell-side desks highlight that fee diversity across investment manager services and advisory offers resilience, while private banking exposure to rate dynamics introduces variability that should be monitored. The prevailing perspective anticipates a modest beat-risk if onboarding milestones and activity trends remain on track, but also flags that any shortfall in revenue conversion or unexpected cost items could cap upside in the near term. Overall, analysts expect a stable-to-improving print aligned with forecast ranges, framed by conservative assumptions about market-sensitive fee streams and operational efficiency.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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