FULLTEXT DEL 2 AV 3
10-K – 2026-02-23 – seic-20251231.htm
(A) Collective trust fund program assets are included in assets under management since SEI is the trustee. Fees earned on this product are less than fees earned on customized asset management programs. (B) Equity and fixed-income programs include $1.5 billion of assets managed by LSV in which fees are based solely on performance and are not calculated as an asset-based fee (as of December 31, 2025). (C) Equity and fixed-income programs include $8.1 billion of assets invested in various asset allocation funds at December 31, 2025. (D) In addition to the assets presented, SEI also administers an additional $13.0 billion in Funds of Funds assets on which SEI does not earn an administration fee (as of December 31, 2025). (E) Client assets under administration related to the Family Office Services business divested on June 30, 2025 (See Note 14 to the Consolidated Financial Statements). (F) Stratos is a network of affiliated companies that provides financial services to $38.4 billion in client assets across business models and affiliation structures (as of November 30, 2025). 29 Average Asset Balances This table presents average asset balances of our clients, or of our clients’ customers, for which we provide management or administrative services through our subsidiaries and partnerships in which we have a significant interest. Average Asset Balances (In millions) For the Year Ended December 31, Percent Change Percent Change 2025 2024 2023 Investment Managers: Collective trust fund programs (A) $ 223,795 $ 187,604 19 % $ 148,097 27 % Liquidity funds 355 226 57 % 261 (13) % Total assets under management $ 224,150 $ 187,830 19 % $ 148,358 27 % Client assets under administration (E) 1,140,140 990,305 15 % 859,596 15 % Total assets $ 1,364,290 $ 1,178,135 16 % $ 1,007,954 17 % Private Banks: Equity and fixed-income programs $ 27,391 $ 25,336 8 % $ 23,638 7 % Collective trust fund programs 3 5 (40) % 6 (17) % Liquidity funds 2,734 3,077 (11) % 3,537 (13) % Total assets under management $ 30,128 $ 28,418 6 % $ 27,181 5 % Client assets under administration 8,599 8,027 7 % 4,976 61 % Total assets $ 38,727 $ 36,445 6 % $ 32,157 13 % Investment Advisors: Equity and fixed-income programs $ 80,637 $ 75,115 7 % $ 68,407 10 % Liquidity funds 3,345 4,073 (18) % 4,960 (18) % Total Platform assets under management $ 83,982 $ 79,188 6 % $ 73,367 8 % Platform-only assets 29,281 22,100 32 % 16,026 38 % Platform-only assets-deposit program 2,153 1,274 NM 70 NM Total Platform assets $ 115,416 102,562 13 % 89,463 15 % Institutional Investors: Equity and fixed-income programs $ 79,719 $ 76,623 4 % $ 74,550 3 % Liquidity funds 1,816 1,976 (8) % 1,636 21 % Total assets under management $ 81,535 $ 78,599 4 % $ 76,186 3 % Client assets under advisement 5,817 7,231 (20) % 4,479 61 % Total assets $ 87,352 $ 85,830 2 % $ 80,665 6 % Investments in New Businesses: Equity and fixed-income programs $ 2,872 $ 2,421 19 % $ 2,053 18 % Liquidity funds 265 375 (29) % 205 83 % Total assets under management $ 3,137 $ 2,796 12 % $ 2,258 24 % Client assets under advisement 2,343 1,801 30 % 1,089 65 % Client assets under administration (E) 14,774 14,949 (1) % 15,773 (5) % Total assets $ 20,254 $ 19,546 4 % $ 19,120 2 % LSV: Equity and fixed-income programs (B) $ 91,871 $ 90,908 1 % $ 85,661 6 % Stratos (F) $ 38,085 $ — $ — 30 Total: Equity and fixed-income programs (C) $ 282,490 $ 270,403 4 % 254,309 6 % Collective trust fund programs 223,798 187,609 19 % 148,103 27 % Liquidity funds 8,515 9,727 (12) % 10,599 (8) % Total assets under management $ 514,803 $ 467,739 10 % $ 413,011 13 % Client assets under advisement 8,160 9,032 (10) % 5,568 62 % Client assets under administration (D) 1,163,513 1,013,281 15 % 880,345 15 % Platform-only assets 31,434 23,374 34 % 16,096 45 % Stratos 38,085 — NM — NM Total assets $ 1,755,995 $ 1,513,426 16 % $ 1,315,020 15 % (A) Collective trust fund program average assets are included in assets under management since SEI is the trustee. Fees earned on this product are less than fees earned on customized asset management programs. (B) Equity and fixed-income programs include assets managed by LSV in which fees are based solely on performance and are not calculated as an asset-based fee. The average value of these assets for the year ended December 31, 2025 was $1.4 billion. (C) Equity and fixed-income programs include $6.8 billion of average assets invested in various asset allocation funds for the year ended December 31, 2025. (D) In addition to the assets presented, SEI also administers an additional $11.4 billion of average assets in Funds of Funds assets for the year ended December 31, 2025 on which SEI does not earn an administration fee. (E) Client assets under administration related to the Family Office Services business. The amount for 2025 only includes the period from January 1, 2025 through June 30, 2025, reflecting the divestiture of the Family Office Services business on June 30, 2025 (See Note 14 to the Consolidated Financial Statements). (F) Stratos is a network of affiliated companies that provides financial services to $38.1 billion in average client assets across business models and affiliation structures during the fourth-quarter 2025. In the preceding tables, assets under management are total assets of our clients or their customers invested in our equity and fixed-income investment programs, collective trust fund programs, and liquidity funds for which we provide asset management services through our subsidiaries and partnerships in which we have a significant interest. Advised assets include assets for which we provide advisory services through a subsidiary to the accounts but do not manage the underlying assets. Assets under administration include total assets of our clients or their customers for which we provide administrative services, including client fund balances for which we provide administration and/or distribution services through our subsidiaries and partnerships in which we have a significant interest. Platform-only assets-deposit program include assets of our clients in the SEI Integrated Cash program for which we provide custody services through our federal thrift subsidiary. The assets presented in the preceding tables do not include assets processed on SWP and are not included in the accompanying Consolidated Balance Sheets because we do not own them. 31 Business Segments Revenues, Expenses and Operating profit (loss) for our business segments for the year ended 2025 compared to the year ended 2024, and for the year ended 2024 compared to the year ended 2023 were: Year Ended December 31, 2025 2024 Percent Change 2023 Percent Change Investment Managers: Revenues $ 815,005 $ 728,390 12 % $ 645,254 13 % Expenses 494,296 453,085 9 % 419,196 8 % Operating profit $ 320,709 $ 275,305 16 % $ 226,058 22 % Operating margin 39 % 38 % 35 % Private Banks: Revenues 572,939 541,414 6 % 496,317 9 % Expenses 474,935 460,375 3 % 448,490 3 % Operating profit $ 98,004 $ 81,039 21 % $ 47,827 69 % Operating margin 17 % 15 % 10 % Investment Advisors: Revenues 577,397 509,408 13 % 436,298 17 % Expenses 311,662 282,902 10 % 259,142 9 % Operating profit $ 265,735 $ 226,506 17 % $ 177,156 28 % Operating margin 46 % 44 % 41 % Institutional Investors: Revenues 282,498 285,723 (1) % 289,708 (1) % Expenses 148,132 154,701 (4) % 165,455 (6) % Operating profit $ 134,366 $ 131,022 3 % $ 124,253 5 % Operating margin 48 % 46 % 43 % Investments in New Businesses: Revenues 49,542 60,216 (18) % 52,216 15 % Expenses 60,222 74,699 (19) % 70,745 6 % Operating loss $ (10,680) $ (14,483) (26) % $ (18,529) (22) % For additional information pertaining to our business segments, see Note 12 to the Consolidated Financial Statements. 32 Investment Managers Revenues increased $86.6 million, or 12%, in 2025 compared to the prior year. Revenues during 2025 were primarily affected by: • Increased revenues from additional services provided to our largest alternative fund clients; and • Positive cash flows into alternative and traditional funds from new and existing clients; partially offset by • Client losses and fund closures. Operating margins were 39% in 2025 and 38% in 2024. Operating income increased $45.4 million, or 16%, in 2025 compared to the prior year. Operating income during 2025 was primarily affected by: • An increase in revenues as mentioned above; partially offset by • Increased costs associated with new business, primarily personnel costs, technology and third-party vendor costs; and • Costs to enhance, support and maintain technologies and investment service capabilities. Private Banks Year Ended December 31, 2025 2024 Percent Change 2023 Percent Change Revenues: Investment processing and software servicing fees $ 432,771 $ 401,267 8 % $ 363,730 10 % Asset management, administration & distribution fees 140,168 140,147 — % 132,587 6 % Total revenues $ 572,939 $ 541,414 6 % $ 496,317 9 % Revenues increased $31.5 million, or 6%, in 2025 compared to the prior year. Revenues during 2025 were primarily affected by: • Increased investment processing fees from new SWP client conversions and growth from existing SWP clients due to market appreciation and increased transaction volumes; • Increased investment management fees from existing international clients due to market appreciation; and • Various one-time buyout fees from lost clients; partially offset by • Negative cash flows and fee reductions from existing international clients; and • Lower investment processing fees from the recontracting of existing clients and client losses. Operating margins were 17% in 2025 and 15% in 2024. Operating income increased $17.0 million, or 21%, in 2025 compared to the prior year. Operating income in 2025 was primarily affected by: • An increase in revenues as mentioned above; partially offset by • Increased costs, mainly personnel, technology and third-party vendor costs supporting operations. Investment Advisors Year Ended December 31, 2025 2024 Percent Change 2023 Percent Change Revenues: Investment management fees-SEI fund programs $ 225,196 $ 233,992 (4) % $ 239,244 (2) % Separately managed account fees 230,050 197,638 16 % 174,418 13 % Other fees 122,151 77,778 57 % 22,636 244 % Total revenues $ 577,397 $ 509,408 13 % $ 436,298 17 % Revenues increased $68.0 million, or 13%, in 2025 compared to the prior year. Revenues during 2025 were primarily affected by: • Increased fees from separately managed account programs and Strategist programs due to growth from new and existing clients and market appreciation; and • Increased fee revenue of $31.4 million from the SEI Integrated Cash Program; partially offset by • Decreased investment management fees from SEI fund programs resulting from the continued shift out of SEI fund programs into separately managed accounts and other investment products; and • Lower fee structures in SEI fund programs and fee reductions in our separately managed account programs. 33 Operating margins were 46% in 2025 and 44% in 2024. Operating income increased $39.2 million, or 17%, in 2025 compared to the prior year. Operating income in 2025 was primarily affected by: • An increase in revenues as mentioned above; partially offset by • Increased direct expenses associated with the increase in separately managed account fees; and • Increased personnel costs from business growth. Institutional Investors Revenues decreased $3.2 million, or 1%, in 2025 compared to the prior year. Revenues during 2025 were primarily affected by: • Decreased investment management fees from client losses; partially offset by • Increased investment management fees from existing clients due to higher assets under management due to market appreciation; and • Revenues from new Outsourced Chief Investment Officer (OCIO) platform clients. Operating margins were 48% in 2025 and 46% in 2024. Operating income increased $3.3 million, or 3%, in 2025 compared to the prior year. Operating income during 2025 was primarily affected by: • Decreased direct expenses associated with investment management fees; and • Decreased personnel costs; partially offset by • A decrease in revenues as mentioned above. Investments in New Businesses 2025 2024 Percent Change 2023 Percent Change Revenues: SEI Private Wealth Management $ 22,277 $ 20,501 9% $ 18,244 12 % SEI Family Office Services 18,002 34,641 (48)% 32,234 7 % Other 9,263 5,074 83% 1,738 192 % Total revenues $ 49,542 $ 60,216 (18)% $ 52,216 15 % Revenues decreased $10.7 million, or 18%, in 2025 compared to the prior year. Revenues during 2025 were primarily affected by: • The divestiture of the SEI Family Office Services business in June 2025; partially offset by • Increased revenues from SEI Private Wealth Management through higher assets under advisement due to market appreciation and new business. Other Corporate overhead expenses Corporate overhead expenses primarily consist of general and administrative expenses and other costs not directly attributable to a reportable business segment. Corporate overhead expenses were $180.9 million, $147.6 million and $132.2 million in 2025, 2024 and 2023, respectively. The increase in corporate overhead expenses during 2025 was primarily due to increases in personnel costs, severance costs, and legal and financial advisor fees related to M&A activity. Other income and expense items Other income and expense items on the accompanying Consolidated Statements of Operations consist of: Year Ended December 31, 2025 2024 2023 Equity in earnings of unconsolidated affiliates $ 132,685 $ 135,741 $ 126,930 Gain on sale of business 94,412 — — Interest and dividend income 39,921 48,897 41,027 Net gain from investments 5,804 2,790 2,757 Interest expense (609) (563) (583) Other income 9,684 8,151 — Net gain from consolidated variable interest entities 7,125 — — Total other income and expense items, net $ 289,022 $ 195,016 $ 170,131 34 Equity in earnings of unconsolidated affiliates Equity in earnings of unconsolidated affiliates primarily includes the earnings from our 38.5% ownership interest in LSV. The table below presents the revenues and net income of LSV and our proportionate share in LSV's earnings. 2025 2024 Percent Change 2023 Percent Change Revenues $ 455,783 $ 457,589 — % $ 426,270 7 % Net income 342,989 351,815 (3) % 328,905 7 % SEI's proportionate share in the earnings of LSV $ 132,265 $ 135,741 (3) % $ 126,930 7 % The decrease in earnings from LSV in 2025 was primarily due to negative cash flows from existing clients and client losses. Higher assets under management from market appreciation and higher performance fees partially offset the decrease in earnings from LSV. Average assets under management by LSV increased $1.0 billion to $91.9 billion during 2025 as compared to $90.9 billion during 2024, an increase of 1%. Gain on sale of business In February 2025, we announced the entry into a definitive agreement with Aquiline, a private investment firm specializing in financial services and technology, to acquire our Family Office Services business. We completed the sale on June 30, 2025 and recognized a gain of $94.4 million, net of transaction costs and certain other purchase price adjustments. Prior to the divestiture, the Family Office Services business was reported in our Investments in New Businesses segment. Interest and dividend income Interest and dividend income is earned based upon the amount of cash that is invested daily. The decrease in interest and dividend income in 2025 was due to an overall decline in interest rates and lower invested cash balances. Net gain from investments Net gain from investments during 2025 was primarily due to realized and unrealized gains and losses recorded in current earnings related to the investment funds sponsored by LSV, equity holdings and SEI-sponsored investment products (See Note 5 to the Consolidated Financial Statements). Other income We recognized a gains of $4.4 million from an insurance recovery and $4.5 million from the settlement of a matter with a third-party vendor during 2025. Other income during 2024 is related to a net gain of $8.2 million recognized from the sale of property located in New York, New York. Net gain from consolidated variable interest entities Net gain from consolidated variable interest entities in 2025 reflects the total net gains of the LSV Global Market Neutral Fund LP consolidated into our financial statements. The portion of this gain associated with our investment in the fund was $5.3 million during 2025. The portion associated with other investors in the fund is eliminated through income attributable to non-controlling interests in the accompanying Consolidated Statement of Operations (See Notes 1 and 18 to the Consolidated Financial Statements). Amortization Amortization expense on the accompanying Consolidated Statements of Operations consists of: 2025 2024 Percent Change 2023 Percent Change Capitalized software development costs $ 31,283 $ 28,100 11% $ 26,227 7% Intangible assets 14,776 13,448 10% 12,161 11% Other 582 321 81% 281 14% Total amortization expense $ 46,641 $ 41,869 11% $ 38,669 8% Capitalized software development costs The increase in amortization expense related to capitalized software development costs was primarily due to significant enhancements to SWP and the placement into service of SEI Scope during the third quarter 2025. We expect to recognize amortization expense of $35.9 million related to all capitalized software development costs in 2026. 35 Intangible assets The increase in amortization expense related to intangible assets and asset purchases was due to the acquisition of the U.S.-based Stratos business during the fourth quarter 2025 (See Note 14 to the Consolidated Financial Statements). We expect to recognize amortization expense of $31.4 million related to all intangible assets in 2026. Income Taxes 2025 2024 Percent Change 2023 Percent Change Provision for income taxes 198,783 165,566 20% 132,397 25% Effective income tax rate 21.7 % 22.2 % 22.3 % The effective tax rate is affected by recurring items, such as the U.S. federal tax rates and tax rates in various states and foreign jurisdictions and the relative amount of income earned in those jurisdictions. The income earned by jurisdiction has been fairly consistent. The effective tax rate is also affected by discrete items that may occur in any given year, but are not consistent from year to year (See Note 11 to the Consolidated Financial Statements for more information). On July 4, 2025, President Donald J. Trump signed new tax legislation known as the One Big Beautiful Bill Act (OBBBA) into law which makes permanent many of the provisions enacted in 2017 as part of the Tax Cuts and Jobs Act that were scheduled to expire at the end of 2025. The enactment of the OBBBA primarily impacted the deferred tax liability and income tax payable related to the provisions for the elimination of the capitalization of onshore research and development costs (Section 174) and the reintroduction of 100% bonus depreciation (Section 168) and did not have a significant impact to the effective tax rate. Stock-Based Compensation During 2025, 2024 and 2023, we recognized approximately $53.6 million, $58.6 million and $31.3 million, respectively, in stock-based compensation expense. Our stock-based compensation expense in 2025 primarily consisted of $28.2 million related to stock options and $24.5 million related to restricted stock units (RSUs). The amount of stock-based compensation expense related to stock options is recognized based upon an estimate of when the financial vesting targets may be achieved. Any change in estimate could result in the remaining amount of stock-based compensation expense to be accelerated, spread out over a longer period, or reversed. This may cause volatility in the recognition of stock-based compensation expense and materially affect earnings (See Note 7 to the Consolidated Financial Statements for more information). During 2024 and 2023, we revised the estimates of when certain vesting targets for stock options were expected to be achieved. These changes in estimates resulted in an increase of $11.2 million in 2024 and a decrease of $6.9 million in 2023. There was no revision of management's estimate during 2025. There was approximately $64.3 million of unrecognized compensation cost related to unvested employee stock options at December 31, 2025 and we expect to recognize approximately $29.1 million in stock-based compensation costs for stock options in 2026. There was approximately $49.7 million of unrecognized compensation cost related to RSUs at December 31, 2025 and we expect to recognize approximately $24.9 million in stock-based compensation costs for RSUs in 2026. Regulatory Matters Like many firms operating within the financial services industry, we are experiencing a complex and changing regulatory environment across our markets. Our current scale and reach as a provider to the financial services industry, the introduction and implementation of new solutions for our financial services industry clients, the increased regulatory oversight of the financial services industry generally, new laws and regulations affecting the financial services industry and ever-changing regulatory interpretations of existing laws and regulations, and a greater propensity of regulators to pursue enforcement actions and other sanctions against regulated entities, have made this an increasingly challenging and costly regulatory environment in which to operate. SEI and some of our regulated subsidiaries have undergone or been scheduled to undergo a range of periodic or thematic reviews, examinations or investigations by numerous regulatory authorities around the world, including the Office of the Comptroller of the Currency, the Securities and Exchange Commission, the Financial Industry Regulatory Authority, the Financial Conduct Authority of the United Kingdom (FCA), the Central Bank of Ireland (CBI), the Commission de Surveillance du Secteur Financier of the Grand Duchy of Luxembourg (CSSF), and others. These regulatory activities typically result in the identification of matters or practices to be addressed by us or our subsidiaries and, in certain circumstances, the regulatory authorities require remediation activities or pursue enforcement proceedings against us or 36 our subsidiaries. As described under the caption “Regulatory Considerations” in Item 1 of this report, the range of possible sanctions that are available to regulatory authorities include limitations on our ability to engage in business for specified periods of time or with certain restrictions, the revocation of registration, censures and fines. The direct and indirect costs of responding to these regulatory activities and of complying with new or modified regulations, as well as the potential financial costs and potential reputational impact against us of any enforcement proceedings that might result, is uncertain but could have a material adverse impact on our operating results or financial position. Liquidity and Capital Resources Year Ended December 31, 2025 2024 2023 Net cash provided by operating activities $ 607,662 $ 622,343 $ 447,030 Net cash used in investing activities (399,092) (117,302) (141,543) Net cash used in financing activities (589,498) (494,401) (331,324) Effect of exchange rate changes on cash and cash equivalents 11,330 (5,445) 7,476 Net (decrease) increase in cash and cash equivalents (369,598) 5,195 (18,361) Cash and cash equivalents and cash and cash equivalents held at consolidated variable interest entities, beginning of year 840,193 834,998 853,359 Cash and cash equivalents and cash and cash equivalents held at consolidated variable interest entities, end of year $ 470,595 $ 840,193 $ 834,998 Our credit facility provides for borrowings up to $500.0 million and is scheduled to expire in August 2030. As of January 30, 2026, we had outstanding letters of credit of $4.6 million which reduced the amount available under the credit facility. These letters of credit were primarily issued for the expansion of the corporate headquarters and are due to expire in 2026. As of January 30, 2026, the amount of the credit facility available for corporate purposes was $495.4 million. The availability of the credit facility is subject to compliance with certain covenants set forth in the agreement. The credit facility contains covenants which restrict our ability to engage in transactions with affiliates other than wholly-owned subsidiaries or to incur liens or certain types of indebtedness as defined in the agreement. In the event of a default under the credit facility, we would also be restricted from paying dividends on, or repurchasing, our common stock. Currently, our ability to borrow from the credit facility is not limited by any covenant of the agreement (See Note 6 to the Consolidated Financial Statements). The majority of excess cash reserves are primarily placed in accounts located in the United States that invest in commercial paper and SEI-sponsored money market mutual funds denominated in the U.S. dollar. We also utilize demand deposit accounts or money market accounts at several well-established financial institutions located in the United States. Accounts used to manage these excess cash reserves do not impose any restrictions or limitations that would prevent us from being able to access such cash amounts immediately. As of January 30, 2026, the amount of cash and cash equivalents considered free and immediately accessible for other general corporate purposes was $146.9 million. Cash and cash equivalents include cash of $70.8 million held in accounts of the LSV Global Equity Market Neutral Fund, LP consolidated into our financial statements and may only be used to settle obligations of the fund (See Note 18 to the Consolidated Financial Statements). Cash and cash equivalents include accounts managed by our subsidiaries that are used in their operations or to cover specific business and regulatory requirements. The availability of this cash for other purposes beyond the operations of these subsidiaries may be limited. We therefore do not include accounts of our foreign subsidiaries in the calculation of free and immediately accessible cash for other general corporate purposes. A portion of the undistributed earnings of foreign subsidiaries are deemed repatriated. Any subsequent transfer of available cash related to the repatriated earnings of foreign subsidiaries could significantly increase free and immediately accessible cash. Cash flows from operations decreased $14.7 million in 2025 compared to 2024 primarily from higher receivables from clients of the Investment Managers segment, a decrease in accrued liabilities, lower partnership distributions from our unconsolidated affiliate, LSV, and non-cash items. The decrease in cash flows from operations was partially offset by the increase in net income. 37 Net cash used in investing activities includes: • Purchases, sales and maturities of marketable securities. Our purchases, sales and maturities of marketable securities during 2025, 2024 and 2023 were as follows: 2025 2024 2023 Purchases $ (157,510) $ (177,025) $ (143,389) Sales and maturities 123,800 152,917 121,988 Net investing activities from marketable securities $ (33,710) $ (24,108) $ (21,401) See Note 5 to the Consolidated Financial Statements for more information related to marketable securities. • The capitalization of costs incurred in developing computer software. We capitalized $30.0 million, $24.3 million and $34.0 million of software development costs in 2025, 2024 and 2023, respectively. Our software development costs are related to significant enhancements for the expanded functionality of the SEI Wealth Platform and the development of a new platform for the Investment Managers segment (See Note 1 to the Consolidated Financial Statements). • Capital expenditures. Capital expenditures in 2025, 2024 and 2023 primarily include capital outlays for purchased software and equipment for data center operations. We continue to evaluate improvements to our information technology infrastructure which, if implemented, will result in additional expenditures for purchased software and equipment for data center operations. • Cash paid for acquisitions, net of cash acquired. In 2025, we made a net cash payment of $440.8 million for the acquisition of the U.S.-based Stratos business, which includes $118.6 million held in escrow for payment of additional interest in minority entities held by Stratos that were settled on January 2, 2026 (See Note 14 to the Consolidated Financial Statements). • Proceeds from business divestiture. We received gross proceeds of $116.0 million at the closing of the sale of the Family Office Services business in June 2025. Net cash used in financing activities includes: • The repurchase of our common stock. The Board of Directors has authorized the repurchase of common stock through multiple authorizations. Currently, there is no expiration date for the common stock repurchase program. The following table lists information regarding repurchases of common stock during 2025, 2024 and 2023: Year Total Number of Shares Repurchased Average Price Paid per Share Total Cost 2025 7,459,000 $ 82.61 $ 616,194 2024 6,840,000 74.92 512,477 2023 5,237,000 59.34 310,769 • Proceeds from the issuance of our common stock. We received $144.2 million, $126.0 million and $101.2 million in proceeds from the issuance of common stock during 2025, 2024 and 2023, respectively. The proceeds we receive from the issuance of common stock is directly attributable to the levels of stock option exercise activity. • Dividend payments. Cash dividends paid during 2025, 2024 and 2023 were as follows: Year Cash Dividends Paid Cash Dividends Paid per Share 2025 $ 124,198 $ 0.98 2024 120,346 0.92 2023 114,837 0.86 The Board of Directors declared a semi-annual cash dividend of $0.52 per share on December 12, 2025. The dividend was paid on January 12, 2026 for a total of $63.6 million. Cash Requirements Cash requirements and liquidity needs are primarily funded through cash flow from operations and our capacity for additional borrowing. At December 31, 2025, unused sources of liquidity consisted of cash and cash equivalents and the amount available under our credit facility. We are obligated to make payments in connection with the credit facility, operating leases, maintenance contracts and other commitments (See Notes 6, 10 and 17 to the Consolidated Financial Statements). We believe our operating cash 38 flow, available borrowing capacity, and existing cash and cash equivalents will provide adequate funds for these obligations and ongoing operations. We currently anticipate that our available funds and cash flow from operations will be sufficient to meet our operational cash needs, expected M&A activity, and fund our stock repurchase program for at least the next 12 months and for the foreseeable future. Critical Accounting Policies and Estimates The accompanying consolidated financial statements and supplementary information were prepared in accordance with accounting principles generally accepted in the United States. Inherent in the application of many of these accounting policies is the need for management to make estimates which require extensive judgments in the determination of certain revenues, expenses, assets and liabilities. Materially different financial results can occur as circumstances change and additional information becomes known. We believe that the assumptions and estimates associated with computer software development costs, income taxes, stock-based compensation and the valuation of long-lived assets including goodwill and intangible assets acquired in an acquisition, when applicable, have the greatest potential to have a material impact on our consolidated financial statements. Therefore, we consider these to be our critical accounting policies and estimates. All of our significant accounting policies are discussed in Note 1 to the Consolidated Financial Statements. Computer Software Development Costs: We utilize internally developed computer software as part of our product offerings. In the development of a new software product, substantial consideration must be given by management to determine whether costs incurred are research and development costs, or internal software development costs eligible for capitalization. Management must consider a number of different factors during their evaluation of each computer software development project that includes estimates and assumptions. Costs considered to be research and development are expensed as incurred. After meeting specific requirements, internal software development costs are capitalized as incurred. The capitalization and ongoing assessment of recoverability of software development costs requires considerable judgment by management with respect to certain external factors, including, but not limited to, technological and economic feasibility, and estimated economic life. Amortization of capitalized software development costs begins when the product is ready for its intended use. Capitalized software development costs are amortized on a project basis using the straight-line method over the estimated economic life of the product or enhancement. We evaluate the carrying value of capitalized software when circumstances indicate the carrying value may not be recoverable. The review of capitalized software for impairment requires significant assumptions and estimates about operating strategies, underlying technologies utilized, and external market factors. External market factors include, but are not limited to, expected levels of competition, barriers to entry by potential competitors, stability in the target market and governmental regulations. Income Taxes: We use the asset and liability method of accounting for income taxes. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year. In addition, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. Management must make assumptions, judgments and estimates to determine our current provision for income taxes and also deferred tax assets and liabilities and any valuation allowance to be recorded against a deferred tax asset. Assumptions, judgments and estimates relative to the current provision for income taxes take into account current tax laws, interpretations of current tax laws and possible outcomes of current and future audits conducted by foreign and domestic tax authorities. We have established reserves for income taxes to address potential exposures involving tax positions that could be challenged by tax authorities. Although we believe the assumptions, judgments and estimates are reasonable, changes in tax laws or interpretations of tax laws and the resolution of any future tax audits could significantly impact the amounts provided for income taxes in the consolidated financial statements. Assumptions, judgments and estimates relative to the value of a deferred tax asset take into account predictions of the amount and category of future taxable income, such as income from operations or capital gains income and from which subsidiary or jurisdiction such income is expected to be realized. Actual operating results and the underlying amount and category of income in future years could render the current assumptions, judgments and estimates of recoverable net deferred taxes inaccurate. Any of the assumptions, judgments and estimates mentioned above could cause actual income tax obligations to differ from the estimates, thus materially impacting our financial position and results of operations. Stock-Based Compensation: Stock-based compensation cost for awards under share-based compensation plans is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which is the vesting period. We currently use the Black-Scholes option pricing model to determine the fair value of stock option awards. The 39 determination of the fair value of stock-based payment awards on the date of grant using an option-pricing model is affected by our stock price as well as various other assumptions. These assumptions include expected stock price volatility over the term of the awards, actual and projected employee stock option exercise behaviors, risk-free interest rate and expected dividends. We account for forfeitures as they occur. The amount of stock-based compensation expense for stock options that is recognized in a given period is dependent upon management’s estimate of when the financial vesting targets are expected to be achieved. If this estimate proves to be inaccurate, the remaining amount of stock-based compensation expense for stock options could be accelerated, spread out over a longer period, or reversed. We currently base expectations for these assumptions from historical data and other applicable factors. These expectations are subject to change in future periods. Valuation of Assets Acquired in an Acquisition Including Goodwill and Intangible Assets: We allocate the fair value of the total purchase price paid for acquisitions to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their estimated fair values. The excess of the fair value of the purchase price consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill to reporting units based on the expected benefit from the business combination. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Management's estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. Allocation of the purchase price consideration to identifiable assets and liabilities affects our amortization expense, as acquired finite-lived intangible assets are amortized over the useful life, whereas any indefinite-lived intangible assets, including goodwill, are not amortized. During the measurement period, which is not to exceed one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to earnings. Goodwill is tested for impairment at the reporting unit level annually or more frequently if events or changes in circumstances would more likely than not reduce the fair value of a reporting unit below its carrying value. We have four reporting units subject to goodwill impairment testing. As of December 31, 2025, no impairment of goodwill has been identified. Intangible assets acquired in an acquisition are reviewed for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. The evaluation is performed at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate from the use and eventual disposition. If such review indicates that the carrying amount of intangible assets is not recoverable, the carrying amount is reduced to fair value. We have not recorded any material impairment charges during the years presented. The useful lives of our finite-lived intangible assets are determined by management when those assets are initially recognized and are routinely reviewed for the remaining estimated useful lives. The current estimate of useful lives represents management’s best estimate based on current facts and circumstances, but may differ from the actual useful lives due to changes in future circumstances such as changes to our business operations, changes in the planned use of assets, and technological advancements. When we change the estimated useful life assumption for any asset, the remaining carrying amount of the asset is accounted for prospectively and depreciated or amortized over the revised estimated useful life. The assessment of critical accounting policies and estimates is not meant to be an all-inclusive discussion of the uncertainties to financial results that can occur from the application of the full range of our accounting policies. Materially different financial results could occur in the application of other accounting policies as well. Also, materially different results can occur upon the adoption of new accounting standards. Item 7A. Quantitative and Qualitative Disclosures About Market Risk. Information required by this item is set forth under the caption "Market-Driven Risks" under the heading "Strategic & Business Model Risks" and under the caption "Interest Rate, Currency, and Tax Changes" under the heading "Financial & Market Risks" in Item 1A, Risk Factors. 40 Item 8. Financial Statements and Supplementary Data. Index to Financial Statements: Page Reports of Independent Registered Public Accounting Firm 42 Auditor Name: KPMG LLP Audit Firm ID: 185 Auditor Location: Philadelphia, PA Consolidated Balance Sheets — December 31, 2025 and 2024 46 Consolidated Statements of Operations — For the years ended December 31, 2025, 2024 and 2023 48 Consolidated Statements of Comprehensive Income — For the years ended December 31, 2025, 2024 and 2023 49 Consolidated Statements of Changes in Equity — For the years ended December 31, 2025, 2024 and 2023 50 Consolidated Statements of Cash Flows — For the years ended December 31, 2025, 2024 and 2023 51 Notes to Consolidated Financial Statements 53 Schedule II - Valuation and Qualifying Accounts and Reserves — For the years ended December 31, 2025, 2024 and 2023 88 All other schedules are omitted because they are not applicable, or not required, or because the required information is included in the Consolidated Financial Statements or notes thereto. 41 Report of Independent Registered Public Accounting Firm To the Shareholders and Board of Directors SEI Investments Company: Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated balance sheets of SEI Investments Company and subsidiaries (the Company) as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income, changes in equity, and cash flows for each of the years in the three-year period ended December 31, 2025, and the related notes and financial statement schedule II referred to in Item 15(2) of this Form 10-K (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 23, 2026 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting. Basis for Opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matters The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. Recoverability of SEI Wealth Platform SM (SWP) Capitalized Software Development Costs As discussed in Note 1 to the consolidated financial statements, the Company's capitalized software development costs primarily relate to the further development of SWP. As of December 31, 2025, the net book value of SWP was $194,246. The Company evaluates the carrying value of capitalized software development costs when circumstances indicate the carrying value may not be recoverable. The review of capitalized software development costs for recoverability requires significant assumptions about operating strategies, underlying technologies utilized, and external market factors. External market factors include, but are not limited to, expected levels of competition, barriers to entry by potential competitors, stability in the target market and governmental regulations. 42 We identified the assessment of the recoverability of SWP capitalized software costs as a critical audit matter. Assessing the Company’s identification of changes in circumstances that indicate the carrying value of SWP may not be recoverable involved subjective auditor judgment. The judgments included consideration of factors that are external and internal to the Company, such as operating strategies, underlying technologies utilized, and external market factors. The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls related to the capitalized software development costs process. This included controls related to the Company’s assessment of circumstances indicating the carrying value of SWP capitalized software development costs may not be recoverable. We evaluated management’s assessment to identify changes in circumstances that indicate the carrying value of SWP may not be recoverable, including consideration of the Company’s operating strategies, underlying technologies utilized, and external market factors by (1) inquiring of management responsible for SWP software development, (2) reading board of director minutes, shareholder presentations, press releases and available peer and industry information, and (3) analyzing the nature of SWP software costs capitalized in the current year. Evaluation of the fair value of acquired client relationships As discussed in Note 14 to the consolidated financial statements, the Company, through its wholly-owned indirect subsidiary SEI-Eclipse Holding Company, LLC, closed the first stage of a transaction acquiring all of the outstanding equity of Stratos US Holdings (Stratos) on December 3, 2025 for a combination of cash and equity consideration. The Company accounted for the acquisition as a business combination using the acquisition method of accounting. Accordingly, the purchase price was allocated to the assets acquired and liabilities assumed based on their estimated fair values. The Company used the multi-period excess earnings method under the income approach to determine the estimated acquisition date fair values of the client relationships intangible assets to be $300.7 million. The significant assumptions used to estimate the fair values of client relationships included forecasted revenues, expected customer attrition rates, and a discount rate applied. We identified the evaluation of the fair value of the client relationships acquired in the Stratos business combination as a critical audit matter. Subjective auditor judgment, including specialized skills and knowledge, was required to evaluate the discount rate used to estimate the fair value of the acquired client relationships. The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls over the Company’s acquisition date valuation process. This included controls related to the determination and development of the discount rate used to estimate the fair value of the acquired client relationships. We performed sensitivity analyses over the discount rate to assess the impact of changes in that assumption on the Company’s determination of the acquisition-date fair values. We involved valuation professionals with specialized skills and knowledge, who assisted in evaluating the discount rate used to determine the fair value of the acquired client relationships by: - independently developing a weighted average cost of capital (WACC) based on publicly available market data for comparable entities - recalculating the Company’s determination of the WACC used to determine the discount rates - reconciling the Company’s determination of the WACC to the Company’s weighted average return on assets and internal rate of return. /s/ KPMG LLP We have served as the Company’s auditor since 2014. Philadelphia, Pennsylvania February 23, 2026 43 Report of Independent Registered Public Accounting Firm To the Shareholders and Board of Directors SEI Investments Company: Opinion on Internal Control Over Financial Reporting We have audited SEI Investments Company and subsidiaries' (the Company) internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2025 and December 31, 2024, the related consolidated statements of operations, comprehensive income, changes in equity, and cash flows for each of the years in the three-year period ended December 31, 2025, and the related notes and financial statement schedule II referred to in Item 15(2) of this Form 10-K (collectively, the consolidated financial statements), and our report dated February 23, 2026 expressed an unqualified opinion on those consolidated financial statements. The Company acquired the U.S. business of Stratos Wealth Holdings during 2025, and management excluded the internal control over financial reporting related to the U.S. business of Stratos Wealth Holdings from its assessment of the effectiveness of the Company’s internal control over financial reporting as of December 31, 2025. The U.S. business of Stratos Wealth Holdings, representing approximately 2% of total assets and less than 1% of total revenues of the Company, are included in the consolidated financial statements of the Company as of and for the year ended December 31, 2025. Our audit of internal control over financial reporting of the Company also excluded an evaluation of the internal control over financial reporting of the U.S. business of Stratos Wealth Holdings. Basis for Opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control Over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely 44 detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ KPMG LLP Philadelphia, Pennsylvania February 23, 2026 45 Consolidated Balance Sheets SEI Investments Company (Dollars in thousands, except per-share data) and Subsidiaries December 31, 2025 2024 Assets Current Assets: Cash and cash equivalents $ 399,804 $ 840,193 Receivables from investment products 63,317 54,118 Receivables, net of allowance for doubtful accounts of $ 1,916 and $ 1,435 709,748 567,634 Securities owned 33,777 29,583 Other current assets 66,691 60,282 Total Current Assets 1,273,337 1,551,810 Property and Equipment , net of accumulated depreciation of $ 468,700 and $ 493,219 150,434 159,643 Operating Lease Right-of-Use Assets 26,447 28,905 Capitalized Software, net of accumulated amortization of $ 669,896 and $ 641,071 234,272 236,023 Investments 428,004 315,567 Assets of Consolidated Variable Interest Entities 183,994 — Goodwill 354,989 170,287 Intangible Assets, net of accumulated amortization of $ 49,534 and $ 55,835 368,272 77,370 Deferred Contract Costs 53,345 45,855 Deferred Income Taxes 8,048 51,984 Deposits on Future Acquisitions 118,606 — Other Assets, net 60,096 47,162 Total Assets $ 3,259,844 $ 2,684,606 The accompanying notes are an integral part of these consolidated financial statements. 46 Consolidated Balance Sheets SEI Investments Company (Dollars in thousands, except per-share data) and Subsidiaries December 31, 2025 2024 Liabilities, Redeemable Non-controlling Interests and Equity Current Liabilities: Accounts payable $ 5,404 $ 13,081 Accrued liabilities 359,823 347,513 Current portion of long-term operating lease liabilities 8,677 7,900 Deferred revenue 13,307 12,019 Total Current Liabilities 387,211 380,513 Liabilities of Consolidated Variable Interest Entities 108,504 — Long-term Income Taxes Payable — 803 Deferred Income Taxes 16,842 — Long-term Operating Lease Liabilities 19,885 24,235 Other Long-term Liabilities 23,626 26,943 Total Liabilities 556,068 432,494 Commitments and Contingencies Redeemable Non-controlling Interests 243,959 — Equity: Shareholders' Equity: Common stock, $ .01 par value, 750,000,000 shares authorized; 122,232,251 and 126,839,734 shares issued and outstanding 1,222 1,268 Capital in excess of par value 1,678,787 1,539,816 Retained earnings 792,280 758,003 Accumulated other comprehensive loss, net ( 24,505 ) ( 46,975 ) Total SEI Shareholders' Equity 2,447,784 2,252,112 Non-controlling interests 12,033 — Total Equity 2,459,817 2,252,112 Total Liabilities, Redeemable Non-controlling Interests and Equity $ 3,259,844 $ 2,684,606 The accompanying notes are an integral part of these consolidated financial statements. 47 Consolidated Statements of Operations SEI Investments Company (Dollars in thousands, except per-share data) and Subsidiaries Year Ended December 31, 2025 2024 2023 Revenues: Asset management, administration and distribution fees $ 1,817,079 $ 1,677,143 $ 1,514,815 Information processing and software servicing fees 480,302 448,008 404,978 Total revenues 2,297,381 2,125,151 1,919,793 Expenses: Subadvisory, distribution and other asset management costs 209,218 191,706 189,263 Software royalties and other information processing costs 37,723 34,229 32,289 Compensation, benefits and other personnel 821,450 770,881 714,099 Stock-based compensation 53,555 58,626 31,308 Consulting, outsourcing and professional fees 218,322 211,806 231,469 Data processing and computer related 165,530 151,653 137,036 Facilities, supplies and other costs 87,197 79,282 85,836 Amortization 46,641 41,869 38,669 Depreciation 30,434 33,358 35,300 Total expenses 1,670,070 1,573,410 1,495,269 Income from operations 627,311 551,741 424,524 Net gain from investments 5,804 2,790 2,757 Interest and dividend income 39,921 48,897 41,027 Interest expense ( 609 ) ( 563 ) ( 583 ) Gain on sale of business 94,412 — — Other income 9,684 8,151 — Equity in earnings of unconsolidated affiliates 132,685 135,741 126,930 Net gain from consolidated variable interest entities 7,125 — — Income before income taxes 916,333 746,757 594,655 Income taxes 198,783 165,566 132,397 Net income 717,550 581,191 462,258 Less: Net income attributable to non-controlling interests 2,245 — — Net income attributable to SEI Investments Company $ 715,305 $ 581,191 $ 462,258 Basic earnings per common share $ 5.76 $ 4.47 $ 3.49 Shares used to compute basic earnings per share 124,082 130,073 132,593 Diluted earnings per common share $ 5.63 $ 4.41 $ 3.46 Shares used to compute diluted earnings per share 127,076 131,727 133,728 Dividends declared per common share $ 1.01 $ 0.95 $ 0.89 The accompanying notes are an integral part of these consolidated financial statements. 48 Consolidated Statements of Comprehensive Income SEI Investments Company (Dollars in thousands) and Subsidiaries Year Ended December 31, 2025 2024 2023 Net income $ 717,550 $ 581,191 $ 462,258 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments 17,307 ( 8,282 ) 9,516 Unrealized holding gain (loss) on investments: Unrealized holding gains (losses) during the period, net of income taxes of $( 1,601 ), $ 391 and $( 675 ) 5,379 ( 1,291 ) 2,252 Less: reclassification adjustment for (gains) losses realized in net income, net of income taxes of $ 60 , $ 104 and $( 48 ) ( 216 ) ( 370 ) 167 Total other comprehensive income (loss), net of tax 22,470 ( 9,943 ) 11,935 Comprehensive income 740,020 571,248 474,193 Less: Comprehensive income attributable to the non-controlling interests 2,245 — — Comprehensive income attributable to SEI Investments Company $ 737,775 $ 571,248 $ 474,193 The accompanying notes are an integral part of these consolidated financial statements. 49 Consolidated Statements of Changes in Equity SEI Investments Company (Dollars in thousands, except per-share data) and Subsidiaries Year Ended December 31, 2025 2024 2023 Shares of Common Stock Beginning balance 126,840 131,178 134,162 Purchase and retirement of common stock ( 7,459 ) ( 6,840 ) ( 5,237 ) Issuance of common stock under the employee stock purchase plan 76 76 85 Issuance of common stock under share-based award plans 2,775 2,426 2,168 Ending balance 122,232 126,840 131,178 Common Stock Beginning balance $ 1,268 $ 1,312 $ 1,342 Purchase and retirement of common stock ( 74 ) ( 69 ) ( 52 ) Issuance of common stock under the employee stock purchase plan — 1 1 Issuance of common stock under share-based award plans 28 24 21 Ending balance $ 1,222 $ 1,268 $ 1,312 Capital In Excess of Par Value Beginning balance $ 1,539,816 $ 1,404,962 $ 1,307,162 Purchase and retirement of common stock ( 60,593 ) ( 49,754 ) ( 34,652 ) Issuance of common stock under the employee stock purchase plan 5,369 4,437 4,273 Issuance of common stock under share-based award plans 138,839 121,545 96,871 Stock-based compensation 55,356 58,626 31,308 Ending balance $ 1,678,787 $ 1,539,816 $ 1,404,962 Retained Earnings Beginning balance $ 758,003 $ 762,586 $ 694,287 Net income attributable to SEI Investments Company 715,305 581,191 462,258 Purchase and retirement of common stock ( 555,525 ) ( 462,655 ) ( 276,065 ) Dividends declared ($ 1.01 , $ 0.95 and $ 0.89 per share) ( 125,503 ) ( 123,119 ) ( 117,894 ) Ending balance $ 792,280 $ 758,003 $ 762,586 Accumulated Other Comprehensive Loss Beginning balance $ ( 46,975 ) $ ( 37,032 ) $ ( 48,967 ) Other comprehensive income (loss) 22,470 ( 9,943 ) 11,935 Ending balance $ ( 24,505 ) $ ( 46,975 ) $ ( 37,032 ) Non-controlling Interests Beginning balance $ — $ — $ — Net income attributable to non-controlling interests 138 — — Acquired non-controlling interests 11,895 — — Ending balance $ 12,033 $ — $ — Total Equity $ 2,459,817 $ 2,252,112 $ 2,131,828 The accompanying notes are an integral part of these consolidated financial statements. 50 Consolidated Statements of Cash Flows SEI Investments Company (Dollars in thousands) and Subsidiaries Year Ended December 31, 2025 2024 2023 Cash flows from operating activities: Net income $ 717,550 $ 581,191 $ 462,258 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 30,434 33,358 35,300 Amortization 46,641 41,869 38,669 Equity in earnings of unconsolidated affiliates ( 132,685 ) ( 135,741 ) ( 126,930 ) Partner distributions received from unconsolidated affiliate 127,533 139,119 121,582 Stock-based compensation 53,555 58,626 31,308 Provision for losses on receivables 453 772 ( 238 ) Deferred income tax benefit 59,237 ( 13,780 ) ( 33,496 ) Net (gain) loss from investments ( 5,804 ) ( 2,790 ) ( 2,757 ) Net gain from business divestiture ( 94,412 ) — — Net gain from sale of property ( 1,316 ) ( 8,151 ) — Change in other long-term liabilities ( 618 ) ( 493 ) 901 Change in other assets ( 3,207 ) ( 2,939 ) 1,273 Contract costs capitalized, net of amortization ( 7,885 ) ( 5,634 ) ( 2,293 ) Contingent consideration fair value adjustment ( 5,472 ) ( 1,547 ) — Write off of fixed assets and capitalized software — 359 5,613 Insurance rebates received for Health and Welfare Benefit Plan Trust 14,500 — — Insurance rebates transferred to Health and Welfare Benefit Plan Trust ( 14,500 ) — — Other ( 2,840 ) ( 3,250 ) ( 780 ) Change in current assets and liabilities: Receivables from investment products ( 9,199 ) 1,768 6,128 Receivables ( 147,835 ) ( 66,391 ) ( 43,635 ) Other current assets ( 5,613 ) 1,851 ( 5,714 ) Advances due from unconsolidated affiliate ( 2,239 ) ( 6,896 ) ( 760 ) Accounts payable ( 7,859 ) 2,463 ( 2,665 ) Accrued liabilities 2,382 13,708 ( 37,083 ) Deferred revenue 1,560 ( 5,129 ) 349 Consolidated variable interest entities related: Change from investment security transactions 2,249 — — Net gain from investments ( 7,125 ) — — Change in other assets and liabilities 177 — — Total adjustments ( 109,888 ) 41,152 ( 15,228 ) Net cash provided by operating activities $ 607,662 $ 622,343 $ 447,030 The accompanying notes are an integral part of these consolidated financial statements. 51 Consolidated Statements of Cash Flows SEI Investments Company (Dollars in thousands) and Subsidiaries Year Ended December 31, 2025 2024 2023 Cash flows from investing activities: Additions to property and equipment ( 22,644 ) ( 32,226 ) ( 24,835 ) Additions to capitalized software ( 30,024 ) ( 24,340 ) ( 33,958 ) Purchases of marketable securities ( 157,510 ) ( 177,025 ) ( 143,389 ) Purchases of interest in limited partnerships ( 1,114 ) ( 9,483 ) — Prepayments and maturities of marketable securities 123,800 145,345 121,095 Sales of marketable securities — 7,572 893 Proceeds from fixed asset dispositions 3,294 9,946 — Proceeds from business divestiture 116,020 — — Cash paid for acquisitions, net of cash acquired ( 302,048 ) ( 29,037 ) ( 56,435 ) Advance payment for acquisition ( 118,606 ) — — Other investing activities ( 10,260 ) ( 8,054 ) ( 4,914 ) Net cash used in investing activities ( 399,092 ) ( 117,302 ) ( 141,543 ) Cash flows from financing activities: Payment of contingent consideration — — ( 8,799 ) Purchase and retirement of common stock ( 628,135 ) ( 500,061 ) ( 308,854 ) Proceeds from issuance of common stock 144,232 126,006 101,166 Payment of dividends ( 124,198 ) ( 120,346 ) ( 114,837 ) Consolidated variable interest entities related: Non-controlling interest capital raised 18,603 — — Net cash used in financing activities ( 589,498 ) ( 494,401 ) ( 331,324 ) Effect of exchange rate changes on cash and cash equivalents 11,330 ( 5,445 ) 7,476 Net (decrease) increase in cash and cash equivalents and cash and cash equivalents held at consolidated variable interest entities ( 369,598 ) 5,195 ( 18,361 ) Cash and cash equivalents and cash and cash equivalents held at consolidated variable interest entities, beginning of year 840,193 834,998 853,359 Cash and cash equivalents and cash and cash equivalents held at consolidated variable interest entities, end of year $ 470,595 $ 840,193 $ 834,998 Interest paid $ 578 $ 563 $ 703 Non-cash investing and financing activities: Acquisition of businesses in current assets, property and equipment, current liabilities and other long-term liabilities $ — $ 29,000 $ 59,972 Dividends declared but not paid $ 65,182 $ 63,877 $ 61,104 Reconciliation of Cash and cash equivalents and cash and cash equivalents held at consolidated variable interest entities to the Consolidated Balance Sheets: December 31, 2025 2024 2023 Cash and cash equivalents $ 399,804 $ 840,193 $ 834,998 Cash and cash equivalents held at consolidated variable interest entities 70,791 — — Total cash and cash equivalents and cash and cash equivalents held at consolidated variable interest entities $ 470,595 $ 840,193 $ 834,998 The accompanying notes are an integral part of these consolidated financial statements. 52 Notes to Consolidated Financial Statements SEI Investments Company (all figures are in thousands except share and per-share data) and Subsidiaries Note 1 – Summary of Significant Accounting Policies Nature of Operations SEI Investments Company (the Company), a Pennsylvania corporation, is a leading global provider of financial technology, operations, and asset management services within the financial services industry. The Company's core capabilities unify technology, operations, and asset management to power clients’ transformation across advice, asset management, and administration. The Company delivers modular or end ‑ to ‑ end solutions through a single, modern infrastructure that integrates platform technology, custody, operations, and investment expertise. Investment processing solutions provide technologies and business process outsourcing services for wealth managers. These solutions include investment advisory, client relationship, and other technology-enabled capabilities for the front office; administrative and investment services for the middle office; and accounting and processing services for the back office. Revenues from investment processing services are recognized in Information processing and software servicing fees on the accompanying Consolidated Statements of Operations. Investment operations solutions provide business process outsourcing services for investment managers and asset owners. These services support a broad range of traditional and alternative investments and provide technology-enabled information analytics and investor capabilities for the front office; administrative and investment services for the middle office; and fund administration and accounting services for the back office. Revenues from investment operations services are recognized in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations. Investment management services provide comprehensive solutions for managing personal and institutional wealth. These services include goals-based investment strategies; SEI-sponsored and third-party investment products, including mutual funds, ETFs, collective investment products, alternative investment portfolios and separately managed accounts (SMA); and other market-specific advice, technology and operational components. These services are offered to wealth managers as part of a complete goals-based investment program for their end-investors. For institutional investors, the Company provides an Outsourced Chief Investment Officer (OCIO) platform and Unbundled OCIO platform that include investment management programs, as well as advisory and administrative services. Revenues from investment management services are recognized in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations. Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries and entities in which it holds a controlling financial interest. The Company determines whether it has a controlling financial interest either by its decision-making ability through voting interests or by the extent of the Company’s participation in the economic risks and rewards of the entity through variable interests. All intercompany accounts and transactions have been eliminated. Variable Interest Entities The Company or its affiliates have created numerous investment products for its clients in various types of legal entity structures. For entities determined to be a variable interest entity (VIE) in which the Company has a variable interest, an evaluation is required to determine whether the Company is the primary beneficiary. The Company evaluates its economic interests in the entity specifically determining if the Company has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. When making the determination on whether the benefits received from an entity are significant, the Company considers the total economics of the entity, and analyzes whether the Company’s share of the economics is significant. The Company utilizes qualitative factors, and, where applicable, quantitative factors, while performing the analysis. At each balance sheet date, the Company determines whether any reconsideration events, such as capital contributions and redemptions, either by the Company or third parties, have occurred that require it to revisit the VIE analysis and will consolidate or deconsolidate accordingly. Consolidated Variable Interest Entities VIEs which the Company controls as the primary beneficiary have been included in the Company’s Consolidated Financial Statements. The results of the consolidated VIEs are reported on a one-month lag due to the timing of the receipt of related financial statements. To the extent the Company is aware of material events that affect the consolidated VIEs during the intervening period, the impact of the events would be disclosed in the Notes to Consolidated Financial Statements. 53 The Company's consolidated net income on the accompanying Consolidated Statement of Operations includes the income (loss) attributable to non-controlling interests. The portion of the consolidated VIEs owned by other investors is included in Redeemable Non-controlling Interests on the accompanying Consolidated Balance Sheet. Activity related to other investors of the consolidated VIEs is eliminated through Net income attributable to non-controlling interests on the accompanying Consolidated Statement of Operations. Investments held by consolidated VIEs are recorded at fair value. Unrealized gains and losses from the investments are recognized in Net gain from consolidated variable interest entities on the accompanying Consolidated Statement of Operations. The Company deconsolidates all the assets and liabilities of the non-controlling interests from the Consolidated Balance Sheets once it no longer qualifies as the primary beneficiary of a consolidated VIE. See Note 18 for related disclosures regarding the Company's consolidated VIEs. Redeemable Non-controlling Interests Non-controlling interests that are redeemable outside the Company's control at fixed or determinable prices and dates are presented as temporary equity in the accompanying Consolidated Balance Sheets. Redeemable non-controlling interests are recorded at the greater of the redemption fair value or the carrying value of the non-controlling interest and adjusted each reporting period for income, loss and any distributions made. Remeasurements to the redemption value of the redeemable non-controlling interest are recognized in capital in excess of par value. As of December 31, 2025, the Company has a redeemable non-controlling interest related to an acquisition (See Note 14). The Company also includes redeemable non-controlling interests related to consolidated VIEs as temporary equity on the accompanying Consolidated Balance Sheets. Non-controlling interests in consolidated VIEs are subject to redemption by future investors. When redeemable amounts become legally payable to the investors, they are classified as a liability and included in Liabilities of consolidated variable interest entities on the Consolidated Balance Sheets. Changes in the Company's redeemable non-controlling interests are as follows: Redeemable Non-controlling Interests Balance, December 31, 2024 $ — Increase from acquisition 223,111 Net income attributable to non-controlling interests 2,245 Capital contributions from non-controlling interests, net 18,603 Balance, December 31, 2025 $ 243,959 Non-consolidated Variable Interest Entities The Company serves as the Manager, Administrator and Distributor for certain investment products and may also serve as the Trustee for some of the investment products. The Company receives asset management, distribution, administration and custodial fees for these services. Clients are the equity investors and participate in proportion to their ownership percentage in the net income or loss and net capital gains or losses of the products, and, on liquidation, will participate in proportion to their ownership percentage in the remaining net assets of the products after satisfaction of outstanding liabilities. The Company has concluded that it is not the primary beneficiary of the entities and, therefore, is not required to consolidate any of the pooled investment vehicles for which it receives asset management, distribution, administration and custodial fees under the VIE model. The entities either do not meet the definition of a VIE or the Company does not hold a variable interest in the entities. The entities either qualify for the money market scope exception, or are entities in which the Company’s asset management, distribution, administration and custodial fees are commensurate with the services provided and include fair terms and conditions, or are entities that are limited partnerships which have substantive kick-out rights. The Company acts as a fiduciary and does not hold any other interests other than insignificant seed money investments in the pooled investment vehicles. For this reason, the Company also concluded that it is not required to consolidate the pooled investment vehicles under the voting interest entity model. The Company is a party to expense limitation agreements with certain SEI-sponsored money market funds subject to Rule 2a-7 of the Investment Company Act of 1940 which establish a maximum level of ordinary operating expenses incurred by the fund in any fiscal year including, but not limited to, fees of the administrator or its affiliates. Under the terms of these agreements, the Company waived $ 19,515 , $ 7,538 and $ 22,092 in fees during 2025, 2024 and 2023, respectively. 54 Management’s Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Revenue Recognition Revenue is recognized when the transfer of control of promised goods or services under the terms of a contract with customers are satisfied in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those promised goods or services. Certain portions of the Company’s revenues involve a third party in providing goods or services to its customers. In such circumstances, the Company must determine whether the nature of its promise to the customer is to provide the underlying goods or services (the Company is the principal in the transaction and reports the transaction gross) or to arrange for a third party to provide the underlying goods or services (the entity is the agent in the transaction and reports the transaction net). The Company does not disclose the value of unsatisfied performance obligations as the majority of its contracts relate to: 1) contracts with an original term of one year or less; 2) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed; and 3) contracts that are based on the value of assets under management or administration. See Note 16 for related disclosures regarding revenue recognition. Cash and Cash Equivalents The Company considers investment instruments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents include $ 201,675 and $ 341,311 at December 31, 2025 and 2024, respectively, primarily invested in SEI-sponsored open-ended money market investment products. See Note 5 for information related to the Company's total investments in SEI-sponsored and non-SEI-sponsored money market investment products and commercial paper classified as cash equivalents. Allowances for Doubtful Accounts The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts. The Company’s estimate is based on historical collection experience and a review of the current status of trade accounts receivable. Concentration of Credit Risk Financial instruments which potentially expose the Company to concentrations of credit risk consist primarily of cash equivalents and trade receivables. Cash equivalents are principally invested in short-term money market funds or placed with major banks and high-credit qualified financial institutions. Cash deposits maintained with institutions are in excess of federally insured limits. Concentrations of credit risk with respect to the Company's receivables are limited due to the large number of clients and their dispersion across geographic areas. No single group or customer represents greater than 10% of total accounts receivable. Property and Equipment Property and Equipment are recorded at cost. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are charged to expense as incurred. Construction in progress includes the cost of construction and other direct costs attributable to the construction. When property and equipment are retired or disposed of, the related cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is provided over the estimated useful lives using the straight line method for financial statement purposes. No provision for depreciation is made for construction in progress until such time as the relevant assets are completed and put into service. The Company uses other depreciation methods, generally accelerated, for tax purposes where appropriate. Buildings are depreciated over 25 to 39 years. Building improvements have useful lives ranging from 5 to 15 years. Equipment, purchased software and furniture and fixtures have useful lives ranging from 3 to 5 years. Amortization of leasehold improvements is computed using the straight line method over the shorter of the remaining lease term or the estimated useful lives of the improvements. Investments The classification of the Company's investments is determined at the time of purchase and reevaluated at each balance sheet date. The Company records its investments in money market funds and commercial paper as cash equivalents. The Company records its investments in securities owned by SIDCO, equity securities and other investment securities not accounted for under the equity method at fair value. Unrealized gains and losses from the change in fair value of these securities are recognized in current period earnings. The specific identification method is used to compute the realized gains and losses on all of the Company’s investments (See Note 5). 55 Securities owned SIDCO, the Company’s broker-dealer subsidiary, reports changes in fair value of marketable securities through current period earnings due to specialized accounting practices related to investments by broker-dealers. Available for sale debt securities Debt securities classified as available-for-sale are reported at fair value as determined by the most recently traded price of each security at the balance sheet date. Unrealized gains and losses associated with the Company's available for sale debt securities, net of income taxes, are reported as a separate component of comprehensive income. The Company evaluates the realizable value of its available for sale debt securities on a quarterly basis. In the event that an other-than-temporary decline in fair value has occurred, the amount of the decline related to a credit loss is reported through current period earnings. Some of the factors considered in determining other-than-temporary impairment include, but are not limited to, the intent of management to sell the security, the likelihood that the Company will be required to sell the security before recovering its cost, and management’s expectation to recover the entire amortized cost basis of the security even if there is no intent to sell the security. The Company did no t recognize any impairment charges related to its available for sale debt securities in 2025, 2024 or 2023 (See Note 5). Equity method investments The Company accounts for investments in unconsolidated entities that are 20% to 50% owned or are 20% or less owned and have the ability to exercise significant influence over the operating and financial policies of the entity under the equity method of accounting. Investments in limited partnerships are accounted for under the equity method when the Company's investment is more than minor. Under the equity method of accounting, the investments are initially carried at cost and subsequently adjusted by the Company's proportionate share of the entities' net income, which is recognized in current period earnings. Any investments in entities not consolidated or accounted for under the equity method are accounted for under the cost method of accounting. The Company evaluates equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in current period earnings. Fair Value of Financial Instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The fair value hierarchy describes three levels of inputs that may be used by the Company to measure fair value: Level 1 – Quoted prices in active markets for identical assets or liabilities without adjustment. Level 1 financial assets and liabilities of the Company and consolidated VIEs consist mainly of equity securities and investments in open-end and closed-end investment products that are quoted daily. Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 financial assets consist of GNMA mortgage-backed securities, Federal Home Loan Bank (FHLB) and other U.S. government agency short-term notes. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment by management. The Company had no Level 3 financial assets at December 31, 2025 or 2024 that were required to be measured at fair value on a recurring basis. The Company's Level 3 financial liabilities at December 31, 2025 and 2024 consist entirely of estimated contingent considerations resulting from business acquisitions. The fair value of an asset or liability may include inputs from more than one level in the fair value hierarchy. The lowest level of significant inputs used to value the asset or liability determines which level the asset or liability is classified in its entirety. Transfers between levels of the fair value hierarchy are reported at fair value as of the beginning of the period in which the transfers occur. See Note 4 for related disclosures regarding fair value measurements. Capitalized Software Costs incurred for the development of internal use software to be offered in a hosting arrangement is capitalized during the development stage of the software application. These costs include direct external and internal costs to design the software configuration and interfaces, coding, installation, and testing. Costs incurred during the preliminary and post-implementation stages of the software application are expensed as incurred. Costs associated with significant enhancements to a software application are capitalized while costs incurred to maintain existing software applications are 56 expensed as incurred. The capitalization of software development costs requires considerable judgment by management to ensure the costs incurred will result in additional functionality of the software. Amortization of capitalized software development costs begins when the product is ready for its intended use. Capitalized software development costs are amortized on a product-by-product basis using the straight-line method over the estimated economic life of the product or enhancement. The Company capitalized $ 30,024 , $ 24,340 and $ 33,958 of software development costs during 2025, 2024 and 2023, respectively, to further the development of the SEI Wealth Platform SM (SWP) and for the development of a new platform for the Investment Managers segment. The Company capitalized $ 19,253 , $ 13,696 and $ 18,183 of software development costs for significant enhancements to SWP during 2025, 2024 and 2023, respectively. As of December 31, 2025, the net book value of SWP was $ 194,246 , which includes $ 6,605 of capitalized software development costs in-progress associated with future releases. Management continually reassesses the estimated useful life of SWP and any change in management’s estimate could result in the remaining amortization expense to be accelerated or spread out over a longer period. As of December 31, 2025, SWP has a weighted average remaining life of 7.5 years. Amortization expense for SWP was $ 28,984 , $ 27,510 and $ 25,637 in 2025, 2024 and 2023, respectively, and is included in Amortization expense on the accompanying Consolidated Statements of Operations. The Company capitalized $ 10,771 , $ 10,644 and $ 15,775 of software development costs during 2025, 2024 and 2023, respectively, related to a new platform for the Investment Managers segment. The Company placed the platform into service during the third quarter 2025. The net book value of the platform at December 31, 2025 was $ 40,026 , which includes $ 11,414 of capitalized software development costs in-progress associated with future releases. As of December 31, 2025, the platform has a weighted average remaining life of 6.5 years. Amortization expense for the platform was $ 2,201 during 2025 and is included in Amortization expense on the accompanying Consolidated Statements of Operations. The Company evaluates the carrying value of capitalized software development costs when circumstances indicate the carrying value may not be recoverable. The review of capitalized software development costs for impairment requires significant assumptions about operating strategies, underlying technologies utilized, and external market factors. External market factors include, but are not limited to, expected levels of competition, barriers to entry by potential competitors, stability in the target market and governmental regulations. During 2023, management decided to abandon certain functionality within the platform for the Investment Managers segment due to a change in development strategy and wrote off $ 5,250 of previously capitalized software development costs. The expense associated with the write off is reflected in the Investment Managers segment and included in Facilities, supplies and other costs on the accompanying Consolidated Statement of Operations. The Company did no t recognize any impairment charges related to its capitalized software development costs in 2025 or 2024. Business Combinations The Company accounts for business combinations in accordance with Accounting Standards Codification (ASC) Topic 805, Business Combinations (ASC 805). ASC 805 establishes principles and requirements for recognizing the total consideration transferred, assets acquired and liabilities assumed in a business combination. ASC 805 also provides guidance for recognizing and measuring goodwill acquired in a business combination and requires the acquirer to disclose information needed to evaluate and understand the financial impact of the business combination. The Company recognizes assets and liabilities acquired at their estimated fair values. Management uses judgment to identify the acquired assets and liabilities assumed; estimate the fair value of these assets and liabilities; estimate the useful life of the assets; and assess the appropriate method for recognizing depreciation or amortization expense over the estimated useful life of the assets. Goodwill and Other Intangible Assets The Company reviews long-lived assets and identifiable definite-lived intangible assets for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. For purposes of recognizing and measuring an impairment loss, a long-lived asset is grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent. Identifiable definite-lived intangible assets on the Company’s Consolidated Balance Sheet are amortized on a straight-line basis according to their estimated useful lives. Goodwill is not amortized but is reviewed for impairment annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Current guidance requires that a qualitative assessment be performed to assess goodwill for impairment. The fair value of each reporting unit is compared with its carrying value, including goodwill. If the fair value exceeds the carrying value, goodwill is not impaired and no further testing is performed. If the qualitative assessment indicates the carrying value exceeds the fair value, a quantitative impairment test is then utilized to identify potential 57 goodwill impairment and measure the amount of a goodwill impairment loss to be recognized. The Company did no t recognize any impairment charges related to its goodwill or other intangible assets in 2025, 2024 or 2023. See Note 15 for related disclosures regarding goodwill and intangible assets. Contingent Consideration Liabilities The Company may be required to pay additional future consideration in connection with business acquisitions based on the attainment of specified financial measures. The Company estimates the fair value of these potential future obligations at the time a business combination is consummated and records a contingent consideration liability on the Consolidated Balance Sheets. If the expected payment amounts subsequently change, the contingent consideration liabilities are adjusted through current period earnings and included in Facilities, supplies and other costs on the accompanying Consolidated Statement of Operations. See Note 14 for related disclosures regarding contingent consideration liabilities. Income Taxes The Company applies the asset and liability approach to account for income taxes whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. See Note 11 for related disclosures regarding income taxes. Foreign Currency Translation The assets and liabilities and results of operations of the Company’s foreign subsidiaries are measured using the foreign subsidiary’s local currency as the functional currency. Assets and liabilities have been translated into U.S. dollars using the rates of exchange at the balance sheet dates. The results of operations have been translated into U.S. dollars at average exchange rates prevailing during the period. The resulting translation gain and loss adjustments are recorded as a separate component of comprehensive income. Transaction gains and losses from exchange rate fluctuations are included in the results of operations in the periods in which they occur. There were no material gains or losses from exchange rate fluctuations in 2025, 2024 or 2023. Earnings Per Common Share Basic earnings per common share is computed by dividing net income attributable to SEI Investments common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is computed by dividing net income attributable to SEI Investments common shareholders by the combination of the weighted average number of common shares outstanding and the dilutive potential common shares outstanding during the period. The Company's dilutive potential common shares consist of equity awards including stock options and restricted stock units. The calculations of basic and diluted earnings per share for 2025, 2024 and 2023 are: 2025 2024 2023 Net income attributable to SEI Investments Company $ 715,305 $ 581,191 $ 462,258 Shares used to compute basic earnings per common share 124,082,000 130,073,000 132,593,000 Dilutive effect of equity awards 2,994,000 1,654,000 1,135,000 Shares used to compute diluted earnings per common share 127,076,000 131,727,000 133,728,000 Basic earnings per common share $ 5.76 $ 4.47 $ 3.49 Diluted earnings per common share $ 5.63 $ 4.41 $ 3.46 Employee stock options to purchase approximately 5,667,000 , 9,530,000 and 11,388,000 shares of common stock, with an average exercise price per share of $ 67.66 , $ 61.83 and $ 61.32 , were outstanding during 2025, 2024 and 2023, respectively, but not included in the computation of diluted earnings per common share because either the performance conditions have not been satisfied or the option’s exercise price was greater than the average market price of the Company’s common stock and the effect on diluted earnings per common share would have been anti-dilutive. Restricted stock units not included in the computation of diluted earnings per common share were immaterial during 2025, 2024 and 2023 (See Note 7). Stock-Based Compensation The Company recognizes stock-based compensation for all share-based awards made to employees and directors, including stock options, restricted stock units, and employee stock purchases related to an employee stock purchase plan. Stock-based compensation cost for awards under share-based compensation plans is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which is the vesting period. The Company accounts for forfeitures as they occur. Restricted stock units are time-based and are not based on the 58 achievement of performance targets. The amount of stock-based compensation expense for stock options recognized in a given period is dependent upon management’s estimate of when the vesting targets are expected to be achieved. If this estimate proves to be inaccurate, the remaining amount of stock-based compensation expense for stock options could be accelerated, spread out over a longer period, or reversed (See Note 7). Leases The Company determines if an arrangement is a lease at the inception of the contract. The Company's operating leases are included in Operating lease right-of-use (ROU) assets, Current portion of long-term operating lease liabilities, and Long-term operating lease liabilities on the accompanying Consolidated Balance Sheets. The operating lease ROU assets and operating lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. As most of the Company’s leases do not provide an implicit interest rate, the Company utilizes an estimated incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. In determining the discount rate used in the present value calculation, the Company has elected to apply the portfolio approach for leases of equipment provided the leases commenced at or around the same time. This election allows the Company to account for leases at a portfolio level provided that the resulting accounting at this level would not differ materially from the accounting at the individual lease level. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company has elected to account for lease and non-lease components separately. Operating lease ROU assets include all contractual lease payments and initial direct costs incurred, less any lease incentives. Facility leases generally only contain lease expense and non-component items such as taxes and pass through charges. Only the lease components are included in the ROU assets and lease liabilities. Additionally, the Company has elected not to apply the recognition requirements of ASC 842 to leases which have a lease term of less than one year at the commencement date. The majority of the Company's leases for corporate facilities and equipment contain terms for renewal and extension of the lease agreement. The exercise of lease renewal options is generally at the Company’s sole discretion. The Company includes the lease extensions when it is reasonably certain the Company will exercise the extension. Several of the Company's leases are subject to periodic market rent review adjustments which are not tied to an index or specific interest rate. Rather, the review adjustments represent market conditions on the date of the review. The variable lease payments consist of payments beyond the initial contractual payment amounts prior to the market rent review. The Company’s lease agreements do not contain any material residual value guarantees or any material restrictive covenants. The Company does not currently have any finance leases. See Note 17 for related disclosures regarding leases. Reclassifications Certain prior year amounts have been reclassified to conform to current year presentation. Recently Adopted Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (FASB) issued ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures (ASU 2023-09) to enhance the transparency and decision usefulness of income tax disclosures. The Company adopted ASU 2023-09 for the fiscal year ended December 31, 2025 and applied the disclosure requirements on a retrospective basis. See Note 11 for related disclosures regarding the Company's income taxes. New Accounting Pronouncements In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03) and in January 2025, the FASB issued ASU 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date (ASU 2025-01), which clarified the effective date of ASU 2024-03. This standard requires new disclosures to disaggregate prescribed natural expenses underlying any income statement caption. ASU 2024-03 is effective for annual periods beginning after December 15, 2026 on a prospective basis and interim periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of adopting the guidance on its consolidated financial statements and related disclosures. In May 2025, the FASB issued ASU 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity (ASU 2025-03). This standard eliminates the presumption that the primary beneficiary of a VIE is the accounting acquirer in a business combination. Instead, entities are required to apply the general guidance in ASC 805 to determine the accounting acquirer when the transaction is primarily effected by the exchange of equity interests. ASU 2025-03 is effective for annual and interim 59 periods beginning after December 15, 2026 on a prospective basis. Early adoption is permitted. The Company is currently evaluating the impact of adopting the guidance on its consolidated financial statements and related disclosures. In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal Use Software (ASU 2025-06). This standard clarifies capitalization thresholds for software development costs and aligns accounting treatment more closely with the economic substance of modern software development activities. ASU 2025-06 is effective for annual and interim periods beginning after December 15, 2027 on a retrospective, prospective or modified prospective basis. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2025-06 on its consolidated financial statements and related disclosures. In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements (ASU 2025-11). ASU 2025-11 is intended to improve the clarity and navigability of interim reporting guidance by (i) specifying the required form and content of interim financial statements, (ii) consolidating and organizing interim disclosure requirements across the Codification, and (iii) introducing a disclosure principle requiring entities to describe events occurring after the end of the most recent annual reporting period that have a material impact on the entity. ASU 2025-11 is effective for public business entities for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2025-11 on its consolidated financial statements and related disclosures. Note 2 – Equity Method Investments The Company's equity method investments included in Investments on the accompanying Consolidated Balance Sheets consist of: 2025 2024 Investment in LSV Asset Management $ 121,512 $ 114,299 Other equity method investments 67,637 9,483 Total $ 189,149 $ 123,782 LSV Asset Management The Company has an investment in the general partnership LSV Asset Management (LSV), a registered investment advisor that provides investment advisory services primarily to institutions, including pension plans and investment companies. LSV is currently an investment sub-advisor for a limited number of SEI-sponsored investment products. On April 1, 2025, LSV provided an interest in the partnership to select key employees which reduced the ownership percentage of each existing partner on a pro-rata basis. As a result, the Company's total partnership interest in LSV was reduced slightly to approximately 38.5 % from approximately 38.6 %. As of December 31, 2025, the Company's total partnership interest in LSV was approximately 38.5 %. The Company accounts for its interest in LSV using the equity method because of its less than 50% ownership. The Company’s interest in the earnings of LSV is reflected in Equity in earnings of unconsolidated affiliates on the accompanying Consolidated Statements of Operations. At December 31, 2025 and 2024, the Company’s total investment in LSV was $ 121,512 and $ 114,299 , respectively, and is included in Investments on the accompanying Consolidated Balance Sheets (See Note 5). The Company’s proportionate share in the earnings of LSV was $ 132,265 , $ 135,741 and $ 126,930 in 2025, 2024 and 2023, respectively. The Company receives partnership distributions related to the earnings of LSV on a quarterly basis. As such, the Company considers these distribution payments as returns on investment rather than returns of the Company's original investment in LSV and has therefore classified the associated cash inflows as an operating activity on the Consolidated Statements of Cash Flows. The Company received partnership distribution payments from LSV of $ 127,292 , $ 139,119 and $ 121,582 in 2025, 2024 and 2023, respectively. These tables contain condensed financial information of LSV: Condensed Statement of Operations Year ended December 31, 2025 2024 2023 Revenues $ 455,783 $ 457,589 $ 426,270 Net income $ 342,989 $ 351,815 $ 328,905 60 Condensed Balance Sheets December 31, 2025 2024 Current assets $ 205,888 $ 170,055 Non-current assets 4,541 5,313 Total assets $ 210,429 $ 175,368 Current liabilities $ 105,384 $ 82,356 Non-current liabilities 4,704 5,382 Partners’ capital 100,341 87,630 Total liabilities and partners’ capital $ 210,429 $ 175,368 Other Equity Method Investments The Company's other equity method investments consist of several firms acquired in connection with the Stratos Acquisition (See Note 14) in December 2025 and an investment in a non-affiliated limited partnership fund in which the Company holds a more than minor interest. At December 31, 2025, the value of equity method entities acquired in connection with the Stratos Acquisition was $ 57,153 . At December 31, 2025 and 2024, the value of the Company’s investment in the limited partnership fund was $ 10,484 and $ 9,483 , respectively. Note 3 – Composition of Certain Financial Statement Captions Receivables Receivables on the accompanying Consolidated Balance Sheets consist of: 2025 2024 Trade receivables $ 178,902 $ 143,574 Fees earned, not billed 483,860 403,514 Taxes receivable 40,415 17,673 Other receivables 8,487 4,308 711,664 569,069 Less: Allowance for doubtful accounts ( 1,916 ) ( 1,435 ) Receivables, net $ 709,748 $ 567,634 Fees earned, not billed represents receivables from contracts from customers earned but unbilled and results from timing differences between services provided and contractual billing schedules. These billing schedules generally provide for fees to be billed on a quarterly basis. In addition, certain fees earned from investment operations services are calculated based on assets under administration that have an extended valuation process. Billings to these clients occur once the asset valuation processes are completed. Property and Equipment Property and Equipment on the accompanying Consolidated Balance Sheets consists of: 2025 2024 Buildings $ 221,488 $ 218,112 Equipment 158,740 196,792 Land 27,457 27,407 Purchased software 165,229 164,659 Furniture and fixtures 23,066 23,068 Leasehold improvements 23,003 22,491 Construction in progress 151 333 619,134 652,862 Less: Accumulated depreciation ( 468,700 ) ( 493,219 ) Property and Equipment, net $ 150,434 $ 159,643 Depreciation expense related to property and equipment for 2025, 2024 and 2023 was $ 30,434 , $ 33,358 and $ 35,300 , respectively. 61 Deferred Contract Costs The Company's incremental contract acquisition costs are related to information processing contracts in the Private Banks segment and investment operations contracts in the Investment Managers segment. These deferred costs primarily consist of sales compensation payments to the Company's sales personnel. The Company defers and amortizes incremental contract acquisition costs using the straight-line method over the expected client life, which ranges from 6 to 15 years. Deferred contract costs were $ 53,345 and $ 45,855 as of December 31, 2025 and 2024, respectively. The Company deferred expenses related to contract costs of $ 21,155 , $ 16,473 and $ 11,342 during 2025, 2024 and 2023, respectively. Amortization expense related to deferred contract costs were $ 13,270 , $ 10,839 and $ 9,049 during 2025, 2024 and 2023, respectively, and is included in Compensation, benefits and other personnel on the accompanying Consolidated Statements of Operations. There were no material impairment losses in relation to deferred contract costs during 2025, 2024 or 2023. Other Assets Other assets consist of long-term prepaid expenses, deposits and various other assets. Amortization expense for certain other assets for 2025, 2024 and 2023 was $ 582 , $ 321 and $ 281 , respectively. Accrued Liabilities Accrued Liabilities on the accompanying Consolidated Balance Sheets consist of: 2025 2024 Accrued employee compensation $ 143,358 $ 129,228 Accrued consulting, outsourcing and professional fees 29,186 32,082 Accrued sub-advisory, distribution and other asset management fees 56,445 53,727 Accrued dividend payable 65,182 63,877 Accrued income taxes 6,560 7,105 Other accrued liabilities 59,092 61,494 Accrued liabilities $ 359,823 $ 347,513 Note 4 – Fair Value Measurements The fair value of the Company’s financial assets and liabilities is determined in accordance with the fair value hierarchy. Level 1 financial assets and liabilities of the Company and consolidated VIEs consist mainly of equity securities and investments in open-end and closed-end investment products that are quoted daily. Level 2 financial assets consist of Government National Mortgage Association (GNMA) mortgage-backed securities held by the Company's wholly-owned limited purpose federal thrift subsidiary, SEI Private Trust Company (SPTC), Federal Home Loan Bank (FHLB) and other U.S. government agency short-term notes held by SIDCO. The financial assets held by SIDCO were purchased as part of a cash management program requiring only short term, top-tier investment grade government and corporate securities. The financial assets held by SPTC are debt securities issued by GNMA and are backed by the full faith and credit of the U.S. government. These securities were purchased for the sole purpose of satisfying applicable regulatory requirements and have maturity dates which range from 2027 to 2041. The fair value of the Company's investment funds sponsored by LSV is measured using the net asset value per share (NAV) as a practical expedient. The NAVs of the funds are calculated by the funds' independent custodian and are derived from the fair values of the underlying investments as of the reporting date. The investment funds sponsored by LSV allow for investor redemptions at the end of each calendar month . These investments have not been classified in the fair value hierarchy but are presented in the tables below to permit reconciliation to the amounts presented on the accompanying Consolidated Balance Sheets. The valuation of the Company's Level 2 financial assets held by SIDCO and SPTC are based upon securities pricing policies and procedures utilized by third-party pricing vendors. The Company's Level 3 financial liabilities at December 31, 2025 and 2024 consist entirely of the estimated fair value of contingent considerations resulting from business acquisitions (See Note 14). The fair value of the contingent considerations were determined using a Monte-Carlo simulation model. There were no transfers of financial assets between levels within the fair value hierarchy during 2025. Valuation of GNMA and Other U.S. Government Agency Securities All of the Company's investments in GNMA, FHLB and other U.S. government agency securities are held in accounts at well-established financial institutions. The Company's selection of a financial institution for the purpose of purchasing securities considered a number of various factors including, but not limited to, securities pricing policies and procedures 62 utilized by that financial institution. Each financial institution utilizes the services of independent pricing vendors. These vendors utilize evaluated and industry accepted pricing models that vary by asset class and incorporate available trade, bid and other market information to determine the fair value of the securities. The market inputs, listed in approximate order of priority, include: benchmark yields, reported trade, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. The Company evaluated the information regarding the pricing methodologies and processes utilized by the independent pricing vendors during the selection process of the financial institution. The Company analyzed this information for the purpose of classifying the securities into the appropriate level within the fair value hierarchy and to ensure that each pricing model for each asset class provided the fair value of those specific securities in accordance with generally accepted accounting principles. The Company continually monitors the price of each security for any unanticipated deviations from the previously quoted price. In the event of any significant unanticipated deviations in a security's price, additional analysis is conducted. The Company's investments in GNMA, FHLB and other U.S. government agency securities have been recorded at the prices provided by the independent pricing vendor without adjustment. The fair value of certain financial assets and liabilities of the Company was determined using the following inputs: At December 31, 2025 Level 1 Level 2 Level 3 NAV as a Practical Expedient Total Financial Assets SEI Investments Company Equity securities $ 67,414 $ — $ — $ — $ 67,414 Available-for-sale debt securities — 158,690 — — 158,690 Securities owned — 33,777 — — 33,777 Investment funds sponsored by LSV — — — 11,593 11,593 Investments in limited partnership funds — — — 1,158 1,158 Total financial assets of SEI Investments Company $ 67,414 $ 192,467 $ — $ 12,751 $ 272,632 Consolidated VIEs Equity securities 113,119 — — — 113,119 Total financial assets of consolidated VIEs 113,119 — — — 113,119 Total financial assets measured at fair value $ 180,533 $ 192,467 $ — $ 12,751 $ 385,751 Financial Liabilities SEI Investments Company Contingent considerations $ — $ — $ 7,834 $ — $ 7,834 Total financial liabilities of SEI Investments Company — — 7,834 — 7,834 Consolidated VIEs Securities sold short 108,243 — — — 108,243 Total financial liabilities of consolidated VIEs 108,243 — — — 108,243 Total financial liabilities measured at fair value $ 108,243 $ — $ 7,834 $ — $ 116,077 63 At December 31, 2024 Level 1 Level 2 Level 3 NAV as a Practical Expedient Total Financial Assets SEI Investments Company Equity securities $ 40,530 $ — $ — $ — $ 40,530 Available-for-sale debt securities — 143,126 — — 143,126 Securities owned — 29,583 — — 29,583 Investment funds sponsored by LSV — — — 8,129 8,129 Total assets measured at fair value $ 40,530 $ 172,709 $ — $ 8,129 $ 221,368 Financial Liabilities SEI Investments Company Contingent considerations $ — $ — $ 14,355 $ — $ 14,355 Total liabilities measured at fair value $ — $ — $ 14,355 $ — $ 14,355 Note 5 – Investments and Other Marketable Securities Investments on the accompanying Consolidated Balance Sheets consist of: 2025 2024 Available for sale and equity securities $ 226,104 $ 183,656 Investments in affiliated funds 11,593 8,129 Investments in limited partnership funds 1,158 — Equity method investments (See Note 2) 189,149 123,782 Total $ 428,004 $ 315,567 Available For Sale and Equity Securities Available For Sale and equity securities consist of: At December 31, 2025 Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Available for sale debt securities $ 163,071 $ — $ ( 4,381 ) $ 158,690 SEI-sponsored investment products 45,925 2,021 — 47,946 Equities and other investment products 18,711 787 ( 30 ) 19,468 $ 227,707 $ 2,808 $ ( 4,411 ) $ 226,104 At December 31, 2024 Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Available for sale debt securities $ 154,211 $ — $ ( 11,085 ) $ 143,126 SEI-sponsored investment products 33,029 1,615 — 34,644 Equities and other investment products 5,554 332 — 5,886 $ 192,794 $ 1,947 $ ( 11,085 ) $ 183,656 Unrealized holding losses, net of income tax benefit, at December 31, 2025 and 2024 of the Company's available-for-sale debt securities were: 2025 2024 Unrealized holding losses $ ( 4,381 ) $ ( 11,085 ) Less: Income tax benefit 1,008 2,549 Unrealized holding losses, net of tax ( 3,373 ) ( 8,536 ) 64 These unrealized losses are associated with the Company’s investments in mortgage-backed securities issued by GNMA and were caused by market interest rates (See Note 4). The contractual cash flows of these securities are guaranteed by an agency of the U.S. government. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost bases of the Company's investments. The Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases. Net unrealized gains and losses are reported as a separate component of Accumulated other comprehensive loss on the accompanying Consolidated Balance Sheets. The following tables provide the scheduled maturities of the Company's available-for-sale debt securities: At December 31, 2025 Cost Fair Value Within one year $ — $ — After one year through five years 3,248 2,930 After 5 years through 10 years 14,789 13,787 After 10 years 145,034 141,973 $ 163,071 $ 158,690 At December 31, 2024 Cost Fair Value Within one year $ — $ — After one year through five years 4,132 3,763 After 5 years through 10 years 20,323 18,429 After 10 years 129,756 120,934 $ 154,211 $ 143,126 Gross realized gains and losses from available-for-sale debt securities were immaterial during 2025, 2024 and 2023. Gross realized gains and losses from investment products and equities during 2025 and 2023 were immaterial . In 2024, there were gross realized gains of $ 2,218 and gross realized losses of $ 1,550 from investment products and equities. Gains and losses from investment products and equities are reflected in Net gain from investments on the accompanying Consolidated Statements of Operations. Investments in Affiliated Funds The Company has an investment in funds sponsored by LSV. The Company records this investment at fair value. Unrealized gains and losses from the change in fair value of these funds are recognized in Net gain from investments on the accompanying Consolidated Statements of Operations. The funds had a fair value of $ 11,593 and $ 8,129 at December 31, 2025 and 2024, respectively. The Company recognized gains of $ 3,464 , $ 813 and $ 950 during 2025, 2024 and 2023, respectively, from the change in fair value of the funds. Securities Owned The Company’s broker-dealer subsidiary, SIDCO, has investments in U.S. government agency securities with maturity dates less than one year. These investments are reflected as Securities owned on the accompanying Consolidated Balance Sheets. Due to specialized accounting practices applicable to investments by broker-dealers, the securities are reported at fair value and changes in fair value are recorded in current period earnings. The securities had a fair value of $ 33,777 and $ 29,583 at December 31, 2025 and 2024, respectively. There were no material net gains or losses from the change in fair value of the securities during 2025, 2024 and 2023. Cash Equivalents The Company's investments in money market funds and commercial paper classified as cash equivalents on the accompanying Consolidated Balance Sheets had a fair value of $ 235,933 and $ 541,635 at December 31, 2025 and 2024, respectively. There were no material unrealized or realized gains or losses from these investments during 2025 and 2024. Note 6 – Lines of Credit On August 18, 2025, the Company entered into a five-year $ 500,000 Credit Agreement (the Facility) with U.S. Bank National Association, and a syndicate of other lenders. The Facility is scheduled to expire in August 2030, at which time any aggregate principal amount of loans outstanding becomes payable in full. The aggregate principal amount of the 65 Facility may be increased by an additional $ 250,000 under certain conditions set forth in the agreement. The Facility replaces the Company’s $ 325,000 former credit facility that was scheduled to expire in April 2026. Interest on borrowings under the Facility is payable at rates that, at the Company's option, are based on a base rate (the Base Rate) plus a premium that can range from 0.25 % to 1.25 % or the Term Secured Overnight Financing Rate (Term SOFR) plus a premium that can range from 1.25 % to 2.25 % depending on the Company’s Leverage Ratio (a ratio of consolidated indebtedness to consolidated EBITDA for the four preceding fiscal quarters, all as defined in the relevant agreement). The Base Rate is defined as the highest of a) the Prime Rate, b) the Federal Funds Rate (each as defined in the relevant agreement) plus 0.50 %, or c) Term SOFR for a one-month tenor in effect on such day plus 1.00 %. The Company also pays quarterly commitment fees based on the unused portion of the Facility. The quarterly fees for the Facility can range from 0.15 % of the amount of the unused portion of the Facility to 0.35 %, depending on the Company’s Leverage Ratio. Certain wholly-owned subsidiaries of the Company have guaranteed the obligations of the Company under the Facility. The Company may issue up to $ 25,000 in letters of credit under the terms of the Facility. The Company pays a periodic commission fee based on the applicable rate with respect to borrowings that are designated as SOFR Loans (as defined in the relevant agreement) plus an issuance fee agreed upon between the Company and the lender. The Facility contains covenants that, among other things, restrict the ability of the Company and its subsidiaries to engage in mergers, consolidations, asset sales, acquisitions, transactions with affiliates, or to incur indebtedness or liens, subject in certain cases to certain exceptions and thresholds, as defined in the related agreement. In the event of a default under the Facility, the Company would also be restricted from paying dividends on, or repurchasing, its capital stock without the approval of the lenders. Upon the occurrence of certain financial or economic events, significant corporate events or certain other events of default constituting an event of default under the Facility, all loans outstanding under the Facility may be declared immediately due and payable and all commitments under the Facility may be terminated. The Company had no borrowings related to the Facility as of December 31, 2025. As of December 31, 2025, the Company had outstanding letters of credit of $ 4,630 under the Facility. The amount of the Facility available for general corporate purposes as of January 30, 2026 was $ 495,370 . The Company was in compliance with all covenants of the Facility during 2025. The Company incurred $ 609 , $ 563 and $ 583 in interest charges and commitment fees relating to its lines of credit during 2025, 2024 and 2023, respectively, which are reflected in Interest expense on the accompanying Consolidated Statements of Operations. Note 7 – Shareholders’ Equity Stock-Based Compensation The Company's active equity compensation plan, the 2024 Omnibus Equity Compensation Plan (the 2024 Plan), is the successor plan to the 2014 Equity Compensation Plan (the 2014 Plan) which was merged with and into the 2024 Plan in May 2024. The 2024 Plan provides for the grant of stock options, stock units, stock awards, stock appreciation rights and other stock-based awards. No further grants will be made under the 2014 Plan, and shares with respect to all grants outstanding under the 2014 Plan will be issued or transferred under the 2024 Plan. Permitted grantees under the 2024 Plan include employees, non-employee directors and consultants who perform services for the Company. The plan is administered by the Compensation Committee of the Board of Directors of the Company. As of December 31, 2025, the Company has restricted stock units and non-qualified stock options outstanding under the 2024 Plan. As of December 31, 2025, a total of 12,388,000 shares of common stock remain available for issuance under the 2024 Plan for future grants. The Company recognized stock-based compensation expense in its Consolidated Financial Statements in 2025, 2024 and 2023 as follows: 2025 2024 2023 Stock-based compensation expense $ 53,555 $ 58,626 $ 31,308 Less: Deferred tax benefit ( 9,281 ) ( 11,347 ) ( 5,989 ) Stock-based compensation expense, net of tax $ 44,274 $ 47,279 $ 25,319 During 2025, allowances provided to certain employees related to the vesting of stock options and restricted stock units after the termination of employment resulted in modifications to the Company's equity compensation plans. These 66 modifications impact two grantees of stock options and restricted stock units. The Company incurred additional stock-based compensation expense of $ 2,912 as a result of these modifications. Stock Options All outstanding stock options have performance-based vesting provisions that tie the vesting of stock options to the Company’s financial performance which are established at the time of grant, as well as a service condition which requires a minimum waiting period from the date of grant. The performance targets are measured annually on December 31. The amount of stock-based compensation expense recognized in the period is based upon management’s estimate of when the financial vesting targets may be achieved. Any change in management’s estimate could result in the remaining amount of stock-based compensation expense to be accelerated, spread out over a longer period, or reversed. The Company uses the Black-Scholes option pricing model to determine the fair value of stock options. The determination of the fair value of stock options on the date of grant using an option-pricing model is affected by the price of the Company’s common stock as well as other variables. These variables include expected stock price volatility over the term of the awards, actual and projected employee stock exercise behaviors, risk-free interest rate and expected dividends. The Company primarily uses historical data to estimate the variables used in the option-pricing model except expected volatility. The Company uses a combination of historical and implied volatility. The weighted average fair value of the Company’s stock options granted during 2025, 2024 and 2023 were $ 22.64 , $ 23.07 and $ 15.70 , respectively, using the following assumptions: 2025 2024 2023 Expected term (in years) 5.41 5.32 5.32 Expected volatility 25.29 % 23.64 % 24.32 % Expected dividend yield 1.10 % 1.11 % 1.49 % Risk-free interest rate 3.90 % 4.34 % 3.95 % The Company reviews its estimates of when vesting targets will be achieved based upon financial performance on an annual basis. The Company revised its estimates during 2024 and 2023 which resulted in an increase of $ 11,181 and a decrease of $ 6,941 , respectively, in stock-based compensation expense in comparison to the previous management estimates. There was no revision of management's estimate during 2025. As of December 31, 2025, there was approximately 5,459,000 unvested employee stock options with an unrecognized compensation cost of $ 64,286 that the Company expects will vest and be expensed through 2028 with a weighted average period of 1.6 years. This table presents certain information relating to the Company’s stock option plans for 2025, 2024 and 2023: Number of Shares Weighted Average Price Balance as of December 31, 2022 18,770,000 $ 56.52 Granted 1,871,000 62.01 Exercised ( 2,148,000 ) 45.11 Expired or canceled ( 1,073,000 ) 59.79 Balance as of December 31, 2023 17,420,000 $ 58.31 Granted 1,376,000 85.77 Exercised ( 2,411,000 ) 50.42 Expired or canceled ( 994,000 ) 61.93 Balance as of December 31, 2024 15,391,000 $ 61.77 Granted 1,426,000 83.00 Exercised ( 2,399,000 ) 57.87 Expired or canceled ( 591,000 ) 64.02 Balance as of December 31, 2025 13,827,000 $ 64.56 Exercisable as of December 31, 2025 8,368,000 $ 59.22 The expiration dates for options outstanding at December 31, 2025 range from January 25, 2026 to December 12, 2035 with a weighted average remaining contractual life of 5.7 years. 67 Upon exercise of stock options, the Company will issue new shares of its common shares. The Company does not hold any shares in treasury. The total intrinsic value of options exercised during 2025 and 2024 was $ 62,632 and $ 54,101 , respectively. The total options exercisable as of December 31, 2025 had an intrinsic value of $ 159,030 . The total options outstanding as of December 31, 2025 had an intrinsic value of $ 248,513 . The total intrinsic value for options outstanding and options exercisable is calculated as the difference between the market value of the Company’s common stock and the exercise price of the shares. The market value of the Company’s common stock as of December 31, 2025 was $ 82.02 as reported by the Nasdaq Stock Market, LLC. Restricted Stock Units The Company's restricted stock units (RSUs) are equivalent to one share of the Company's common stock. These equity awards are time-based and are not based on the achievement of performance targets. RSUs accrue dividends based on dividends paid on the Company's common stock and are paid in cash upon satisfaction of the vesting requirements related to the underlying RSU. The Company's RSUs either vest on the third anniversary of the issuance date or ratably during the vesting period. Beginning in December 2025, all RSUs granted vest ratably during the vesting period. This table presents certain information relating to the Company’s RSUs for 2025, 2024 and 2023: Number of RSUs Weighted Average Grant-Date Fair Value Balance as of December 31, 2022 467,000 $ 61.27 Granted 373,000 61.76 Vested ( 20,000 ) 57.39 Expired or canceled ( 24,000 ) 61.85 Balance as of December 31, 2023 796,000 $ 61.58 Granted 395,000 83.02 Vested ( 15,000 ) 55.91 Expired or canceled ( 53,000 ) 61.93 Balance as of December 31, 2024 1,123,000 $ 69.18 Granted 317,000 83.16 Vested ( 376,000 ) 62.30 Expired or canceled ( 74,000 ) 68.60 Balance as of December 31, 2025 990,000 $ 76.32 As of December 31, 2025, the unrecognized compensation cost associated with the Company's RSUs was $ 49,742 , which will be expensed through 2028 over a weighed average remaining period of 1.8 years. Employee Stock Purchase Plan The Company has an employee stock purchase plan that provides for offerings of common stock to eligible employees at a price equal to 85 percent of the fair market value of the stock at the end of the stock purchase period, as defined. The Company has reserved 15,652,000 shares for issuance under this plan. At December 31, 2025, 12,634,000 cumulative shares have been issued. There were no material costs incurred by the Company related to the employee stock purchase plan in 2025, 2024 and 2023. Common Stock Buyback The Board of Directors, under multiple authorizations, has authorized the purchase of the Company’s common stock on the open market or through private transactions. As of December 31, 2025, the Company had approximately $ 703,407 of authorization remaining for the purchase of common stock. The following table provides the total number of shares repurchased and the related total costs in 2025, 2024 and 2023: Year Total Number of Shares Repurchased Total Cost 2025 7,459,000 $ 616,194 2024 6,840,000 512,477 2023 5,237,000 310,769 The cost of stock purchases during the annual period includes the cost of excise taxes applicable to stock repurchases and certain transactions that settled in the following year. The Company immediately retires its common stock when purchased. Upon retirement, the Company reduces Capital in excess of par value for the average capital per share 68 outstanding and the remainder is charged against Retained earnings. If the Company reduces its Retained earnings to zero, any subsequent purchases of common stock will be charged entirely to Capital in excess of par value. Cash Dividends On May 28, 2025, the Board of Directors declared a cash dividend of $ 0.49 per share on the Company’s common stock, which was paid on June 17, 2025, to shareholders of record on June 9, 2025. On December 12, 2025, the Board of Directors declared a cash dividend of $ 0.52 per share on the Company’s common stock, which was paid on January 12, 2026, to shareholders of record on December 29, 2025. The cash dividends declared in 2025, 2024 and 2023 were $ 125,503 , $ 123,119 and $ 117,894 , respectively. The Board of Directors has indicated its intention to declare future cash dividends on a semiannual basis. Note 8 – Accumulated Other Comprehensive Income (Loss) Other comprehensive income (loss) consists of net income and other gains and losses affecting shareholders’ equity that are excluded from net income. Other comprehensive income (loss) includes unrealized gains and losses on available for sale debt securities and foreign currency translation adjustments. The Company presents other comprehensive income (loss) in its Consolidated Statements of Comprehensive Income. Components of Accumulated other comprehensive income (loss), net of tax, consisted of: Foreign Currency Translation Adjustments Unrealized Holding Gains (Losses) on Investments Accumulated Other Comprehensive Income (Loss) Balance, January 1, 2023 $ ( 39,673 ) $ ( 9,294 ) $ ( 48,967 ) Other comprehensive income before reclassifications 9,516 2,252 11,768 Amounts reclassified from accumulated other comprehensive loss — 167 167 Net current-period other comprehensive income 9,516 2,419 11,935 Balance, December 31, 2023 $ ( 30,157 ) $ ( 6,875 ) $ ( 37,032 ) Other comprehensive loss before reclassifications ( 8,282 ) ( 1,291 ) ( 9,573 ) Amounts reclassified from accumulated other comprehensive loss — ( 370 ) ( 370 ) Net current-period other comprehensive loss ( 8,282 ) ( 1,661 ) ( 9,943 ) Balance, December 31, 2024 $ ( 38,439 ) $ ( 8,536 ) $ ( 46,975 ) Other comprehensive income before reclassifications 17,307 5,379 22,686 Amounts reclassified from accumulated other comprehensive loss — ( 216 ) ( 216 ) Net current-period other comprehensive income 17,307 5,163 22,470 Balance, December 31, 2025 $ ( 21,132 ) $ ( 3,373 ) $ ( 24,505 ) Note 9 – Employee Benefit Plan The Company has a tax-qualified defined contribution plan (the Plan). The Plan provides retirement benefits, including provisions for early retirement and disability benefits, as well as a tax-deferred savings feature. After satisfying certain requirements, participants are vested in employer contributions at the time the contributions are made. All Company contributions are discretionary and are made from available profits. The Company contributed $ 20,315 , $ 19,038 and $ 18,069 to the Plan in 2025, 2024 and 2023, respectively. Note 10 – Commitments and Contingencies The Company leases software, facilities, and equipment under non-cancelable operating leases, some which contain escalation clauses for increased taxes and operating expenses. The Company has entered into maintenance agreements primarily for its equipment. Rent expense, primarily related to user licenses for software, was $ 88,855 , $ 81,142 and $ 71,962 in 2025, 2024 and 2023, respectively. 69 The aggregate noncancellable minimum commitments at December 31, 2025 are: Year Aggregate Noncancellable Minimum Commitments 2026 $ 11,997 2027 9,561 2028 6,153 2029 6,114 2030 and thereafter 12,998 $ 46,823 In the ordinary course of business, the Company from time to time enters into contracts containing indemnification obligations of the Company. These obligations may require the Company to make payments to another party upon the occurrence of certain events including the failure by the Company to meet its performance obligations under the contract. These contractual indemnification provisions are often standard contractual terms of the nature customarily found in the type of contracts entered into by the Company. In many cases, there are no stated or notional amounts included in the indemnification provisions. There are no amounts reflected on the Consolidated Balance Sheets as of December 31, 2025 and 2024 related to these indemnifications. Rubicon Wealth Management As the Company reported in prior filings with the Commission, on May 1, 2024, SEI Private Trust Company (SPTC), a wholly-owned, operating subsidiary of SEI, terminated its client relationship with Rubicon Wealth Management LLC, an SPTC investment advisor client (Rubicon). SPTC terminated the Rubicon relationship due to suspicions of fraudulent activity by Rubicon’s founder, Scott Mason. Mr. Mason and Rubicon were investigated by the U.S. Department of Justice and Securities and Exchange Commission and Mr. Mason pleaded guilty to several crimes and consented to a judgment being entered against him in both proceedings. On June 25, 2025, Mr. Mason was sentenced to 97 months in prison, followed by three years of supervised release. Mason was also ordered to pay nearly $ 25,000 in restitution to his victims and more than $ 2,300 in back taxes to the Internal Revenue Service. The previously disclosed lawsuits filed against SPTC in its capacity as custodian for the Rubicon accounts of the plaintiffs (collectively, the Rubicon Actions) remain pending in the Court of Common Pleas of Montgomery County, Pennsylvania, and are just entering the discovery phase. While the Rubicon Actions are in their early stages and the ultimate outcomes of these litigations remain uncertain, SPTC is vigorously defending each of the Rubicon Actions. Currently, SPTC estimates that the aggregate amount of Rubicon client assets transferred at the direction of Mr. Mason from SPTC custodial accounts to accounts of an entity, Orchard Park, that unbeknownst to the investors or SPTC was established and controlled by Mr. Mason and was used by Mr. Mason for personal expenditures is approximately $ 15,000 . In the event that SPTC is unsuccessful in its defense of the Rubicon Actions, SEI does not currently believe that the losses associated with such unsuccessful defense would exceed the approximately $ 15,000 of Rubicon client assets that Mr. Mason directed to be transferred to Orchard Park. LSV Asset Management On January 27, 2026, the Company, and its wholly-owned subsidiary, SEI Funds, Inc., (the SEI Parties) were joined as defendants in Qu v. LSV Asset Management, an Illinois State Court action originally filed in July 2024 in Cook County, Illinois Circuit Court (the Qu Litigation). The Qu Litigation alleges that LSV Asset Management (LSV), and certain of its executives, including the founder and CEO, Josef Lakonishok, and COO, Kevin Phelan (the LSV Defendants), made misrepresentations to the plaintiffs, four former LSV employees, concerning their ownership in LSV through the employees’ indirect ownership of LSV partnership interests through single member limited liability companies (referred to as employee holding companies or EHCs) that in turn owned partnership interests in LSV, claiming damages of approximately $ 100,000 . The principal claims against the LSV Defendants include breach of fiduciary duty and breach of the implied covenant of good faith, with plaintiffs alleging that the named executives misrepresented the employees’ ability to hold their interests in LSV post-employment termination and undervalued the LSV partnership interest held by each EHC when causing the EHCs to sell their LSV interests to LSV and a group of remaining employees. The new claim against the SEI Parties alleges that the Company, through its wholly-owned subsidiary SEI Funds, Inc. that is the owner of a minority interest of LSV, aided and abetted the alleged breach of fiduciary duty. While the outcome of this litigation remains uncertain, the LSV Defendants and the Company believe that the LSV Defendants have valid defenses to plaintiffs’ primary claims, and the Company believes that the aiding and abetting claim against the Company are even more attenuated with valid defenses. The Company intends to defend the allegations in the Qu Litigation vigorously. Based upon the early nature of the litigation against the Company, the vagueness of the 70 alleged conduct by the SEI Parties, and the lack of clarity of what portion of the alleged losses for which the Company would be liable in the unlikely event that the plaintiffs are successful in their theories of liability, the Company is not reasonably able to provide an estimate of loss, if any, with respect to the matters alleged in the Qu Litigation. Capital Accumulation Plan On December 26, 2025, a class action complaint was filed in the United States District Court for the Eastern District of Pennsylvania by David Hall and Jennifer Knapp, individually and as representatives of similarly situated persons, and on behalf of the SEI Capital Accumulation Plan (the Plan), naming the Company and its affiliated and/or related entities SEI Investments Management Corporation, SEI Capital Accumulation Plan Administration Committee, and John Does 1-30 as defendants (the Hall Complaint). The Hall Complaint seeks damages for defendants’ alleged breach of fiduciary duties under ERISA with respect to selecting and monitoring certain of the Plan’s investment options, which are affiliated investment products. While the outcome of this litigation remains uncertain, defendants believe that they have valid defenses to plaintiffs’ claims and intend to defend the allegations contained in the Hall Complaint vigorously. At this stage of the litigation, the Company is not reasonably able to provide an estimate of loss, if any, with respect to the matters set forth in the Hall Complaint. United Kingdom Financial Conduct Authority Supervisory Review of SEI Investments (Europe) Limited As previously reported, on July 31, 2024, SEI Investments (Europe) Limited (SIEL), an indirectly, wholly-owned operating subsidiary of SEI, received a final requirement notice from the Financial Conduct Authority of the United Kingdom (the FCA) under section 166(3)(a) of the Financial Services and Markets Act 2000 (FSMA), requiring SIEL to engage a “Skilled Person” to undertake a two-stage review of SIEL’s governance arrangements and control environment. In the first stage, the Skilled Person is to provide SIEL and the FCA with a report setting out the Skilled Person’s view of the effectiveness of the control environment and governance arrangements with respect to key risks, as well as the Skilled Person’s recommendations where necessary to address any identified weaknesses (the Section 166 Report). In the second stage, the Skilled Person is to provide an independent view of the quality and completeness of the remediation carried out by SIEL to address any findings from the initial stage and any self-identified weaknesses, including a view on SIEL’s compliance with relevant regulations. The appointment of a Skilled Person is one of the regulatory tools used by the FCA to supervise and monitor firms it regulates. A Skilled Person is an independent third-party expert with the relevant knowledge and experience to undertake a review as described above. This is not an enforcement action nor an investigation but an action taken as part of its supervisory oversight. In August 2024, SIEL, with the approval of FCA, appointed the firm of Grant Thornton to act as the Skilled Person. On December 16, 2024, Grant Thornton delivered the first stage of its Skilled Person Report in which it concluded, in summary, that SIEL has an established corporate governance framework and risk management framework that it considered to be appropriate in design for the relative size and complexity of its activities. The Skilled Person Report did, however, make recommendations for improvements in its governance arrangements, resourcing of control functions, strategy and culture. To provide the necessary assurance to the FCA of SIEL’s focus on addressing the recommendations and concerns, on February 26, 2025, SIEL voluntarily applied to the FCA under section 55L(5)(a) FSMA for the imposition by the FCA of requirements on its regulatory permission (Voluntary Requirement / VREQ). While the VREQ is in effect, SIEL may not, without the FCA’s prior written consent: • enter into new client agreements (contracts) where a material change in SIEL’s existing suite of propositions, systems or services is required or where significant senior management engagement would be needed; and • launch a new proposition, product or service that is not already offered by SIEL. The VREQ does not prevent SIEL from on-boarding new clients where there is no significant new service requirements or significant senior management engagement. The VREQ currently imposed on SIEL is reflected in full on the FCA Register. SIEL is fully committed to addressing the concerns raised by the FCA. The Company believes the actions SIEL is taking to remediate the issues identified in the Skilled Person Report will not only strengthen its business but also help maintain its focus on achieving positive customer outcomes, positioning SIEL for sustainable future growth. SIEL management believes that the remediation actions currently underway will appropriately address the recommendations made by the Skilled Person and concerns articulated by the FCA in respect of the issues identified by the Skilled Person. SIEL’s remediation actions will be reviewed by the Skilled Person as part of the second stage of their engagement. 71 The VREQ will stay in effect unless and until varied or cancelled by the FCA (either on the application of SIEL or of the FCA’s own volition), until the FCA is satisfied that SIEL has demonstrated that it has addressed the concerns the FCA has communicated to it. Other Matters The Company and certain of its subsidiaries are party to various other examinations, investigations, actions and claims arising in the normal course of business that the Company does not believe are material. The Company believes that the ultimate resolution of these matters will not have a material adverse effect on the Company's financial position or the manner in which the Company conducts its business. Currently, the Company does not believe the amount of losses associated with these matters can be estimated. While the Company does not believe that the amount of such losses will, when liquidated or estimable, be material to its financial position, the assumptions may be incorrect and any such loss could have a material adverse effect on the Company's results of operations or the manner in which the Company conducts its business in the period(s) during which the underlying matters are resolved. Unfunded Commitments to Limited Partnership Funds The Company has unfunded commitments of $ 8,924 at December 31, 2025 to limited partnership funds. Unused Letters of Credit As of December 31, 2025, the Company had outstanding and unused letters of credit of $ 4,630 under its Credit Facility (See Note 6). The letters of credit were issued for certain municipal requirements related to the expansion of the Company's corporate headquarters and are due to expire in 2026. The Company does not expect that any material amounts will be drawn under these letters of credit. Accordingly, no liability has been recorded in the accompanying Consolidated Balance Sheets. Note 11 – Income Taxes The federal and state and foreign income tax provision is summarized as follows: Year Ended December 31, 2025 2024 2023 Current tax provision: Federal $ 100,730 $ 138,970 $ 133,465 State 21,922 26,536 23,621 Foreign 16,894 13,840 8,807 Total Current 139,546 179,346 165,893 Deferred Tax Provision: Federal 56,862 ( 8,558 ) ( 29,837 ) State 1,973 ( 5,161 ) ( 3,620 ) Foreign 402 ( 61 ) ( 39 ) Total Deferred 59,237 ( 13,780 ) ( 33,496 ) Total Current and Deferred Tax Provision: Federal 157,592 130,412 103,628 State 23,895 21,375 20,001 Foreign 17,296 13,779 8,768 Provision for income taxes $ 198,783 $ 165,566 $ 132,397 Annual tax provisions include amounts considered sufficient to pay assessments that may result from examination of prior year tax returns; however, the amount ultimately paid upon resolution of issues raised may differ materially from the amount accrued. The examination and the resolution process may last longer than one year. The components of Income before income taxes are summarized as follows: Year Ended December 31, 2025 2024 2023 Domestic $ 838,477 $ 682,017 $ 545,642 Foreign 77,856 64,740 49,013 $ 916,333 $ 746,757 $ 594,655 The Company's foreign income is primarily earned in Canada, the Republic of Ireland, Luxembourg and the United Kingdom. 72 A reconciliation of the provision for income taxes to the amount computed by applying the statutory U.S. federal income tax rate to income before income taxes is as follows: Year Ended December 31, 2025 2024 2023 Amount Percent Amount Percent Amount Percent Tax at statutory rate $ 192,430 21.0 % $ 156,819 21.0 % $ 124,878 21.0 % State and local income taxes (1) 20,583 2.3 % 17,236 2.3 % 15,543 2.6 % Foreign tax effects ( 584 ) ( 0.1 ) % ( 325 ) — % ( 1,347 ) ( 0.2 ) % Effect of cross-border tax laws ( 1,435 ) ( 0.2 ) ( 176 ) — % ( 1,793 ) ( 0.3 ) % Tax credits Research & development credit ( 8,028 ) ( 0.9 ) % ( 6,589 ) ( 0.9 ) % ( 6,871 ) ( 1.2 ) % Other ( 150 ) — % ( 150 ) — % ( 150 ) — % Nontaxable and nondeductible items 4,865 0.5 % 4,398 0.6 % 3,724 0.6 % Excess tax benefits on share-based payments ( 7,588 ) ( 0.8 ) % ( 5,691 ) ( 0.8 ) % ( 2,034 ) ( 0.3 ) % Changes in unrecognized tax benefits ( 1,310 ) ( 0.1 ) % 44 — % 447 0.1 % Effective tax rate $ 198,783 21.7 % $ 165,566 22.2 % $ 132,397 22.3 % (1) The states and local jurisdictions that contribute to the majority (greater than 50%) of the tax effect in this category include New York city and state, California, and Pennsylvania for years ending December 31, 2025, 2024 and 2023. 73 The components of deferred tax assets and liabilities at December 31, 2025 and 2024 were as follows: 2025 2024 Deferred Tax Assets: Stock-based compensation expense $ 37,819 $ 41,176 Federal net operating loss and R&D credit carryforward 3,300 4,388 State net operating loss carryforward 34,437 37,339 Foreign net operating loss carryforward and other 8,852 6,905 Capitalized research and development — 18,650 Accrued expense associated with voluntary separation program 406 389 Basis differences in investments 2,156 7,079 Federal benefit of state tax deduction for uncertain tax positions 1,721 2,079 Revenue and expense recognized in different periods for financial reporting and income tax purposes 4,058 2,402 Other assets — 2,419 Total deferred income tax assets 92,749 122,826 Less: Federal net operating loss and R&D valuation allowance ( 794 ) ( 794 ) Less: State net operating loss valuation allowance ( 26,320 ) ( 32,057 ) Less: Foreign net operating loss valuation allowance ( 8,852 ) ( 6,905 ) Net deferred income tax assets $ 56,783 $ 83,070 Deferred Tax Liabilities: Capitalized research and development $ ( 21,247 ) $ — Difference in financial reporting and income tax depreciation methods ( 7,978 ) ( 6,237 ) Difference between book and tax basis of other assets ( 9,363 ) ( 8,316 ) Goodwill and other intangibles ( 12,184 ) ( 6,263 ) Capitalized contract costs ( 11,909 ) ( 10,270 ) Other liabilities ( 2,896 ) — Total deferred income tax liabilities $ ( 65,577 ) $ ( 31,086 ) Net deferred income tax (liability) asset $ ( 8,794 ) $ 51,984 2025 2024 Total deferred tax assets: Other non-current assets $ 8,048 $ 51,984 Total deferred tax liabilities: Other non-current liabilities ( 16,842 ) — Net deferred tax (liability) assets $ ( 8,794 ) $ 51,984 The Company’s deferred tax assets include amounts related to capitalized research and development costs. During 2025, legislative changes resulted in accelerated amortization of previously capitalized domestic research costs, reducing deferred tax assets. As of December 31, 2025, the Company has federal operating loss carryforwards of $ 9,518 remaining from the acquisition of Novus Partners as well as research and development credit carryforwards remaining of $ 1,302 . Operating loss carryforwards generated after December 31, 2017 have an indefinite carryforward period, while those generated before December 31, 2017 will expire beginning in 2033 through 2037. The valuation allowances against deferred tax assets at December 31, 2025 and 2024 are related to federal and state net operating losses from certain domestic subsidiaries, foreign net operating losses from certain foreign subsidiaries and the restriction of the use of the foreign tax credits. Certain state and foreign tax statutes significantly limit the utilization of net operating losses for domestic and foreign subsidiaries. Furthermore, these net operating losses cannot be used to offset the net income of other subsidiaries. 74 The Company recognizes uncertain tax positions in accordance with the applicable accounting guidance and adjusts these liabilities when management’s judgment changes as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the Company's current estimate of the tax liabilities. The Company’s total unrecognized tax benefit, including interest and penalties, as of December 31, 2025 was $ 15,298 , of which $ 13,577 would affect the effective tax rate if the Company were to recognize the tax benefit. The gross amount of uncertain tax liability of $ 3,642 is expected to be paid within one year and is netted against the current payable account while the remaining amount of $ 11,656 is included in Other long-term liabilities on the accompanying Consolidated Balance Sheet. During the year ended December 31, 2025, the Company recognized $ 4,007 of previously unrecognized tax benefits relating to the lapse of the statute of limitation and settlements. The Company files a consolidated federal income tax return and separate income tax returns with various states. Certain subsidiaries of the Company file tax returns in foreign jurisdictions. The Company is no longer subject to U.S. federal income tax examination for years before 2022 and is no longer subject to state, local or foreign income tax examinations by authorities for years before 2018. A reconciliation of the beginning and ending amount of unrecognized tax benefit is as follows: 2025 2024 2023 Balance as of January 1 $ 15,241 $ 15,532 $ 15,204 Tax positions related to current year: Gross additions 2,102 3,460 3,395 Tax positions related to prior years: Gross additions 7 106 120 Settlements — ( 491 ) — Lapses on statute of limitations ( 3,737 ) ( 3,366 ) ( 3,187 ) Balance as of December 31 $ 13,613 $ 15,241 $ 15,532 The above reconciliation of the gross unrecognized tax benefit will differ from the amount which would affect the effective tax rate because of the recognition of the federal and state tax benefits and interest and penalties. The Company classifies all interest and penalties as income tax expense. The Company has recorded $ 1,685 , $ 1,725 and $ 1,385 in liabilities for tax-related interest and penalties in 2025, 2024 and 2023, respectively. The Company includes its direct and indirect subsidiaries in its U.S. consolidated federal income tax return. The Company’s tax sharing allocation agreement provides that any subsidiary having taxable income will pay a tax liability equivalent to what that subsidiary would have paid if it filed a separate income tax return. If the separately calculated federal income tax provision for any subsidiary results in a tax loss, the current benefit resulting from such loss, to the extent utilizable on a separate return basis, is accrued and paid to that subsidiary. The amounts of cash payments for income taxes made by the Company were as follows: Year Ended December 31, 2025 2024 2023 Federal $ 129,363 $ 150,053 $ 118,272 State and Local 25,024 24,893 20,785 Foreign 15,520 10,351 6,916 Cash payments for income taxes $ 169,907 $ 185,297 $ 145,973 Note 12 – Business Segment Information The Company's business segments are generally organized around its target markets. The Company’s reportable business segments are: Investment Managers – Provides an outsourced investment management operating platform to alternative and traditional asset managers, fund companies, and sovereign wealth funds; Private Banks – Provides outsourced investment processing and investment management platforms to banks and trust institutions, independent wealth advisers, and financial advisors worldwide; Investment Advisors – Provides investment management and investment processing platforms to affluent investors through a network of independent registered investment advisors, financial planners, and other investment professionals in the United States; 75 Institutional Investors – Provides Outsourced Chief Investment Officer solutions, including investment management and administrative outsourcing platforms to retirement plan sponsors, healthcare systems, higher education and other not-for-profit organizations worldwide; and Investments in New Businesses – Focuses on providing investment management solutions to ultra-high-net-worth families residing in the United States; developing network and data protection services; the modularization of larger technology platforms; entering new markets; and conducting other research and development activities. The Company's CODM is the chief executive officer who uses the reported measures of each business segment's profit or loss to allocate resources and assess performance by comparing historical, actual and forecasted amounts. The Company's CODM does not evaluate business segments using asset information. In 2025, 2024 and 2023, no single customer accounted for more than 10% of revenues in any business segment. The following tables highlight certain financial information about each of the Company’s business segments for the years ended December 31, 2025, 2024 and 2023: Investment Managers Private Banks Investment Advisors Institutional Investors Investments in New Businesses Total For the Year Ended December 31, 2025 Total revenue $ 815,005 $ 572,939 $ 577,397 $ 282,498 $ 49,542 $ 2,297,381 Less: Operations & services 355,027 211,193 177,822 83,846 14,887 842,775 Sales, marketing & client service 42,488 40,587 35,437 39,035 16,707 174,254 Technology services & infrastructure 52,154 114,209 35,572 6,378 6,036 214,349 Strategic initiatives & new business development 29,878 85,398 52,263 13,039 16,992 197,570 Other segment expenses (1) 14,749 23,548 10,568 5,834 5,600 60,299 Segment profit (loss) $ 320,709 $ 98,004 $ 265,735 $ 134,366 $ ( 10,680 ) $ 808,134 Investment Managers Private Banks Investment Advisors Institutional Investors Investments in New Businesses Total For the Year Ended December 31, 2024 Total revenue $ 728,390 $ 541,414 $ 509,408 $ 285,723 $ 60,216 $ 2,125,151 Less: Operations & services 324,602 200,250 162,396 85,807 19,454 792,509 Sales, marketing & client service 40,143 41,463 31,872 41,612 19,408 174,498 Technology services & infrastructure 43,293 110,154 33,812 5,998 5,531 198,788 Strategic initiatives & new business development 33,804 85,662 48,526 14,241 23,427 205,660 Other segment expenses (1) 11,243 22,846 6,296 7,043 6,879 54,307 Segment profit (loss) $ 275,305 $ 81,039 $ 226,506 $ 131,022 $ ( 14,483 ) $ 699,389 76 Investment Managers Private Banks Investment Advisors Institutional Investors Investments in New Businesses Total For the Year Ended December 31, 2023 Total revenue $ 645,254 $ 496,317 $ 436,298 $ 289,708 $ 52,216 $ 1,919,793 Less: Operations & services 289,348 200,946 145,094 87,778 17,553 740,719 Sales, marketing & client service 35,914 37,271 28,547 52,056 17,171 170,959 Technology services & infrastructure 42,001 105,698 31,246 5,284 5,307 189,536 Strategic initiatives & new business development 42,811 86,888 49,657 14,567 27,227 221,150 Other segment expenses (1) 9,122 17,687 4,598 5,770 3,487 40,664 Segment profit (loss) $ 226,058 $ 47,827 $ 177,156 $ 124,253 $ ( 18,529 ) $ 556,765 (1) Other segment expenses for each reportable segment includes professional services, occupancy and certain overhead expenses. A reconciliation of the total segment profit to income from operations on the Consolidated Statements of Operations for the years ended December 31, 2025, 2024 and 2023 is as follows: Year Ended December 31, 2025 2024 2023 Total segment profit $ 808,134 $ 699,389 $ 556,765 Corporate overhead expenses ( 180,878 ) ( 147,648 ) ( 132,241 ) Segment reclassification (2) 55 — — Income from operations 627,311 551,741 424,524 (2) Primarily includes non-controlling interest and earnings from equity method investments. Other income and expense items to reconcile income from operations to income before income taxes on the Consolidated Statements of Operations include net gain from investments, interest and dividend income, interest expense, gain on sale of business, other income, the Company's portion of the earnings of LSV included in equity in earnings of unconsolidated affiliates and net gain from consolidated variable interest entities. These items are not allocated to the Company's segments. The following tables provide additional information for the years ended December 31, 2025, 2024 and 2023 pertaining to the Company's business segments: Capital Expenditures (3) Depreciation Year Ended December 31, 2025 2024 2023 2025 2024 2023 Investment Managers $ 19,594 $ 25,115 $ 26,603 $ 5,306 $ 6,527 $ 8,327 Private Banks 20,133 18,118 19,331 10,418 11,129 21,887 Investment Advisors 9,209 8,332 9,329 7,621 8,754 2,040 Institutional Investors 1,949 2,895 1,639 1,759 2,411 1,207 Investments in New Businesses 695 878 857 544 712 971 Total from business segments $ 51,580 $ 55,338 $ 57,759 $ 25,648 $ 29,533 $ 34,432 Corporate Overhead 1,088 1,228 1,384 4,786 3,825 868 $ 52,668 $ 56,566 $ 59,143 $ 30,434 $ 33,358 $ 35,300 (3) Capital expenditures include additions to property and equipment and capitalized software. 77 Amortization Year Ended December 31, 2025 2024 2023 Investment Managers $ 3,002 $ 362 $ 771 Private Banks 21,544 20,514 19,094 Investment Advisors 11,676 8,540 7,620 Institutional Investors 7,715 7,576 7,324 Investments in New Businesses 2,122 4,556 3,579 Total from business segments $ 46,059 $ 41,548 $ 38,388 Corporate Overhead 582 321 281 $ 46,641 $ 41,869 $ 38,669 The following table presents revenues based on the location of the use of the products or services: For the Year Ended December 31, 2025 2024 2023 United States $ 1,957,737 $ 1,816,650 $ 1,640,109 International operations 339,644 308,501 279,684 $ 2,297,381 $ 2,125,151 $ 1,919,793 The following table presents assets based on their location: 2025 2024 United States $ 2,894,261 $ 2,223,489 International operations 365,583 461,117 $ 3,259,844 $ 2,684,606 Note 13 – Related Party Transactions The Company, either by itself or through its wholly-owned subsidiaries, serves as the sponsor, administrator, investment advisor, distributor and shareholder servicer for SEI-sponsored investment products. These investment products are offered to clients of the Company and its subsidiaries. Fees earned by the Company for the related services are recognized pursuant to the provisions of investment advisory, fund administration, distribution, and shareholder services agreements directly with the investment products. These fees totaled $ 388,727 , $ 389,476 and $ 389,219 in 2025, 2024 and 2023, respectively. The Company's broker-dealer subsidiary, SIDCO, serves as an introducing broker-dealer for securities transactions of SEI-sponsored investment products. The Company recognized $ 2,512 , $ 1,815 and $ 1,352 in commissions during 2025, 2024 and 2023, respectively. Both of these fees are reflected in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations. Receivables from investment products on the accompanying Consolidated Balance Sheets primarily represent fees receivable for distribution, investment advisory, and administration services to various investment products sponsored by SEI. Note 14 – Business Acquisitions and Divestitures Stratos Wealth Holdings On July 17, 2025, SEI-Eclipse Holding Company, LLC (SEI-Eclipse), a newly-formed, wholly-owned indirect subsidiary of the Company, and the Company entered into a definitive agreement (as amended, the Acquisition Agreement) with Stratos Wealth Holdings, LLC (Stratos) and Stratos Intermediate Holdco I, LLC (Stratos US Holdings) to acquire a controlling interest in the businesses operated by Stratos. Stratos is a holding company that directly and indirectly holds 100.0 % of the equity of certain subsidiary holding companies (including Stratos US Holdings), which, in turn, own equity interests in multiple operating companies that form a network of over 350 affiliated financial advisors in the U.S. and Mexico. The transaction is designed to be completed by SEI-Eclipse in two stages. The first stage is the acquisition of all of the outstanding equity of Stratos US Holdings, which directly owns equity interests in the U.S.-based Stratos operating entities. The second stage is an option to acquire all of the outstanding equity of the Stratos subsidiary holding company (Stratos NSC Holdings) that directly owns a controlling interest in NSC Asesores, S.C., the Mexico-based operating entity (NSC Asesores). The due diligence process regarding Stratos NSC Holdings and NSC Asesores is still ongoing and the Company has not yet determined if it will cause SEI-Eclipse to exercise the second stage option. 78 On December 3, 2025 (the Closing Date), SEI-Eclipse closed the first stage of the transaction by acquiring all of the outstanding equity of Stratos US Holdings. The acquisition consideration was comprised of cash of $ 323,102 , funded by a cash contribution by the Company to SEI-Eclipse, and the issuance of 42.5 % of the common units of SEI-Eclipse with an estimated fair value of $ 235,145 (the Stratos Acquisition). As a result, the Company indirectly owns a 57.5 % controlling interest in SEI-Eclipse and certain Stratos equity holders own the remaining 42.5 % of SEI-Eclipse through an aggregator entity (Stratos Aggregator). This 42.5 % minority interest of SEI-Eclipse held by Stratos Aggregator is subject to three equal put/call options by SEI-Eclipse or Stratos Aggregator exercisable at 36 months, 54 months and 72 months after the Closing Date, and is presented as redeemable non-controlling interest on the accompanying Consolidated Balance Sheets. If the puts or calls are fully exercised, it will result in the Company indirectly owning 100.0 % of the outstanding equity of SEI-Eclipse. The Company accounted for the Stratos Acquisition as a business combination using the acquisition method of accounting in accordance with ASC 805 (See Note 1). The purchase price has been preliminarily allocated to the tangible assets and identifiable intangible assets acquired and liabilities assumed, based upon their estimated fair values, with the exception of the following: (1) deferred income tax assets acquired and liabilities assumed are recognized and measured in accordance with ASC 740, Income Taxes ; (2) contract assets and liabilities are measured and recognized in accordance with ASC 606, Revenue from Contracts with Customers ; and (3) certain lease related assets and liabilities which are measured and recognized in accordance with ASC 842, Leases . In addition, the redeemable non-controlling interest was recorded at fair value under ASC 805. The Company incurred transaction costs for the year ended December 31, 2025 related to the Stratos Acquisition totaling $ 11,926 , of which $ 3,426 was expensed and included as a component of Consulting, outsourcing and professional fees, and $ 8,500 was expensed and included as a component of Facilities, supplies and other costs, in the accompanying Consolidated Statement of Operations. The following table summarizes the preliminary estimated fair values of the assets acquired, liabilities assumed, and non-controlling interest as of the Closing Date: Estimated Fair Value Cash and cash equivalents $ 21,129 Receivables, net 2,818 Marketable securities 1,790 Equity method investments 56,974 Property and equipment, net 266 Operating lease right-of-use asset 3,167 Goodwill, net 186,549 Identifiable intangible assets 311,869 Other assets, net 2,516 Lease liabilities ( 3,167 ) Accrued liabilities ( 25,664 ) Non-controlling interest ( 235,145 ) $ 323,102 The fair value of the acquired accounts receivable approximates the carrying value given the short-term contractual maturity and expected timing of cash flows to the Company related to these receivables. Since the Stratos Acquisition closed in December 2025, the Company has not finalized its accounting for any areas of the purchase price allocation related to the Stratos business. As a result, the amounts presented in the table above are preliminary. The Company anticipates it will finalize its accounting for the Stratos Acquisition during the fourth quarter of 2026. The Company will make adjustments to the purchase price allocation prior to completion of the measurement period, as required. The excess of the purchase price and the fair value of the non-controlling interest over the tangible and intangible assets acquired and liabilities assumed has been recorded as goodwill. The Company has assigned the provisional goodwill of $ 186,549 to its Investment Advisors reportable segment. This goodwill arising is primarily due to the perceived growth potential of the acquired business, plus the fair value of the assembled workforce. Any goodwill generated for income tax purposes from the acquisition is fully deductible. The fair value of the redeemable non-controlling interest was estimated by applying a market approach. This fair value measurement is based on significant inputs that are not observable in the market and thus represents a Level 3 79 measurement as defined in ASC Section 820-10-35. Key assumptions include: (a) financial multiples of companies deemed to be similar to Stratos; (b) certain inputs to the Monte Carlo simulation used to value the series of put and call options to acquire the remaining 42.5 % of SEI-Eclipse; and (c) the fair value of the put and call options to acquire the remaining 42.5 % of SEI-Eclipse. The Monte Carlo simulation values put and call options by generating a significant amount of random price paths for the underlying asset based on a risk‑neutral stochastic process. The payoff from each path is calculated and discounted back at an appropriate rate to estimate each option’s fair value. The results of operations for the acquired Stratos business are included in the consolidated financial statements of the Company from the date of the acquisition. The Company has identified the following significant intangible assets acquired: trade names, unpatented technology, client relationships, and non-compete agreements. The following table summarizes the preliminary fair value of the significant identifiable intangible assets: