10-Q – 2026-07-27 – seic-20260630.htm

Three Months Ended June 30, Percent
Change Six Months Ended June 30, Percent
Change
  2026 2025 2026 2025
Investment Managers:
Revenues $ 227,679  $ 195,067  17% $ 448,396  $ 387,115  16%
Expenses 136,078  121,636  12% 269,917  238,847  13%
Operating Profit $ 91,601  $ 73,431  25% $ 178,479  $ 148,268  20%
Operating Margin 40  % 38  % 40  % 38  %
Private Banks:
Revenues $ 156,879  $ 141,449  11% $ 309,141  $ 279,163  11%
Expenses 125,220  118,724  5% 245,251  233,473  5%
Operating Profit $ 31,659  $ 22,725  39% $ 63,890  $ 45,690  40%
Operating Margin 20  % 16  % 21  % 16  %
Investment Advisors:
Revenues $ 177,897  $ 137,193  30% $ 347,592  $ 273,769  27%
Expenses 101,866  75,801  34% 198,223  148,256  34%
Non-controlling interest and other, net 1,361  —  NM 2,698  —  NM
Operating Profit $ 74,670  $ 61,392  22% $ 146,671  $ 125,513  17%
Operating Margin 42  % 45  % 42  % 46  %
Institutional Investors:
Revenues $ 69,702  $ 69,343  1% $ 141,218  $ 137,849  2%
Expenses 36,826  35,857  3% 73,963  71,727  3%
Operating Profit $ 32,876  $ 33,486  (2)% $ 67,255  $ 66,122  2%
Operating Margin 47  % 48  % 48  % 48  %
Investments in New Businesses:
Revenues $ 9,460  $ 16,549  (43)% $ 17,453  $ 33,049  (47)%
Expenses 10,039  18,430  (46)% 19,232  36,926  (48)%
Operating Loss $ (579) $ (1,881) (69)% $ (1,779) $ (3,877) (54)%

For additional information pertaining to our business segments, see Note 9 to the Consolidated Financial Statements.

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Investment Managers
Revenues increased $32.6 million, or 17%, in the three month period and increased $61.3 million, or 16%, in the six month period ended June 30, 2026 and were primarily affected by:
• Increased administration fees 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 margin increased to 40% compared to 38% in the three and six month periods. Operating income increased $18.2 million, or 25%, in the three month period and increased $30.2 million, or 20%, in the six month period and 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

  Three Months Ended June 30, Percent
Change Six Months Ended June 30, Percent
Change
  2026 2025 2026 2025
Revenues:
Information processing and software servicing fees $ 118,161  $ 107,225  10% $ 233,504  $ 212,424  10%
Asset management, administration & distribution fees 38,718  34,224  13% 75,637  66,739  13%
Total revenues $ 156,879  $ 141,449  11% $ 309,141  $ 279,163  11%

Revenues increased $15.4 million, or 11%, in the three month period and increased $30.0 million, or 11%, in the six month period ended June 30, 2026 and 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; and
• Increased investment management fees from existing international clients due to market appreciation; 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 increased to 20% compared to 16% in the three month period and increased to 21% compared to 16% in the six month period. Operating income increased $8.9 million, or 39%, in the three month period and increased $18.2 million, or 40%, in the six month period and 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

  Three Months Ended June 30, Percent
Change Six Months Ended June 30, Percent
Change
  2026 2025 2026 2025
Revenues:
Investment management fees-SEI fund programs $ 59,967  $ 54,075  11% $ 118,203  $ 109,179  8%
Separately managed account fees 73,799  53,914  37% 141,053  105,991  33%
Other fees 44,131  29,204  51% 88,336  58,599  51%
Total revenues $ 177,897  $ 137,193  30% $ 347,592  $ 273,769  27%

Revenues increased $40.7 million, or 30%, in the three month period and increased $73.8 million, or 27%, in the six month period ended June 30, 2026 and 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
• Revenues from Stratos acquisition of $40.1 million; partially offset by

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• 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.
Operating margin decreased to 42% compared to 45% in the three month period and decreased to 42% compared to 46% in the six month period. Operating income increased $13.3 million, or 22%, in the three month period and increased $21.2 million, or 17%, in the six month period and was primarily affected by:
• An increase in revenues as mentioned above; partially offset by
• Increased amortization expense from intangible assets related to the Stratos acquisition;
• Increased direct expenses associated with the increase in separately managed account fees; and
• Increased personnel costs from business growth.
Institutional Investors
Revenues increased $359 thousand, or 1%, in the three month period and increased $3.4 million, or 2%, in the six month period ended June 30, 2026 and were primarily affected by:
• Increased investment management fees from existing clients due to higher assets under management due to market appreciation; and
• Increased fees from new and existing Outsourced Chief Investment Officer (OCIO) platform clients; partially offset by
• Decreased investment management fees from client losses.
Operating margin decreased to 47% compared to 48% in the three month period and remained at 48% in the six month period. Operating income decreased $610 thousand, or 2%, in the three month period and increased $1.1 million, or 2%, in the six month period and was primarily affected by:
• An increase in revenues as mentioned above; and
• Decreased personnel costs; partially offset by
• Increased direct expenses associated with investment management fees.
Investments in New Businesses

  Three Months Ended June 30, Percent
Change Six Months Ended June 30, Percent
Change
  2026 2025 2026 2025
Revenues:
SEI Private Wealth Management $ 6,085  $ 5,423  12% $ 12,055  $ 10,672  13%
SEI Family Office Services —  8,912  (100)% —  18,002  (100)%
Other 3,375  2,214  52% 5,398  4,375  23%
Total revenues $ 9,460  $ 16,549  (43)% $ 17,453  $ 33,049  (47)%

Revenues decreased $7.1 million, or 43%, in the three month period and decreased $15.6 million, or 47%, in the six month period ended June 30, 2026 and 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 $34.6 million and $40.5 million in the three months ended June 30, 2026 and 2025, respectively, and $70.7 million and $76.0 million in the six months ended June 30, 2026 and 2025, respectively.

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Other income and expense
Other income and expense items on the accompanying Consolidated Statements of Operations consist of:  

  Three Months Ended June 30, Six Months Ended June 30,
  2026 2025 2026 2025
Net gain from investments $ 3,550  $ 1,759  $ 3,181  $ 2,252 
Interest and dividend income 7,012  9,283  14,174  19,504 
Interest expense (562) (92) (1,035) (277)
Gain on sale of business —  94,412  —  94,412 
Other income —  4,500  450  4,500 
Equity in earnings of unconsolidated affiliates 38,694  33,640  71,170  62,387 
Net gain from consolidated variable interest entities 7,475  —  9,554  — 
Total other income and expense items, net $ 56,169  $ 143,502  $ 97,494  $ 182,778 

Net gain from investments
Net gain from investments in the three and six months ended June 30, 2026 was primarily due to unrealized mark-to-market gains recorded in current earnings associated with Company-sponsored investment funds and other investments from market appreciation in 2026 (See Notes 2 and 5 to the Consolidated Financial Statements).
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 the three and six months ended June 30, 2026 was due to lower invested cash balances and, to a lesser extent, an overall decline in interest rates.
Equity in earnings of unconsolidated affiliates
Equity in earnings of unconsolidated affiliates primarily includes the earnings from our ownership interest in LSV. The table below presents the revenues and net income of LSV and the proportionate share in LSV's earnings.

Three Months Ended June 30, Percent Change Six Months Ended June 30, Percent Change
  2026 2025 2026 2025
Revenues of LSV $ 140,854  $ 114,215  23% $ 256,308  $ 214,143  20%
Net income of LSV 99,502  87,311  14% 182,799  161,825  13%

SEI's proportionate share in earnings of LSV $ 38,264  $ 33,640  14% $ 70,356  $ 62,387  13%

The increase in earnings from LSV in the three and six months ended June 30, 2026 was primarily due to market appreciation of assets under management. An increase in performance fees in the second quarter 2026 also positively impacted our earnings from LSV. Negative cash flows from existing clients and client losses partially offset the increase in earnings. Average assets under management by LSV increased $21.6 billion to $110.2 billion during the six months ended June 30, 2026 as compared to $88.6 billion during the six months ended June 30, 2025, an increase of 24%.
Our total partnership interest in LSV was approximately 38.4% as of June 30, 2026 (See Note 2 to the Consolidated Financial Statements).

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Net gain from consolidated variable interest entities
Net gain from consolidated variable interest entities in the three and six months ended June 30, 2026 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 $6.9 million during the six months ended June 30, 2026 (See Notes 1 and 15 to the Consolidated Financial Statements).

Amortization
Amortization expense on the accompanying Consolidated Statements of Operations consists of:  

Three Months Ended June 30, Percent Change Six Months Ended June 30, Percent Change
  2026 2025 2026 2025
Capitalized software development costs $ 9,117  $ 7,198  27% $ 18,189  $ 14,395  26%
Intangible assets acquired through acquisitions and asset purchases 9,935  3,157  215% 19,132  6,606  190%
Other $ 85  $ 94  (10)% 170 158 8%
Total amortization expense $ 19,137  $ 10,449  83% $ 37,491  $ 21,159  77%

Capitalized software development costs
The increase in amortization expense related to capitalized software development costs during the three and six months ended June 30, 2026 was due to significant enhancements to SWP and the placement into service of SEI Scope during the third quarter 2025 (See Note 1 to the Consolidated Financial Statements).
Intangible assets acquired through acquisitions and asset purchases
The increase in amortization expense related to intangible assets during the three and six months ended June 30, 2026 was due to intangible assets related to the Stratos acquisition (See Note 12 to the Consolidated Financial Statements).
Income Taxes

Three Months Ended June 30, Percent Change Six Months Ended June 30, Percent Change
2026 2025 2026 2025
Provision for income taxes $ 53,645  $ 65,054  (18)% $ 107,669  $ 109,910  (2)%

Effective income tax rate 21.2  % 22.3  % 22.3  % 22.5  %

The decrease in the effective tax rate for the three and six months ended June 30, 2026 was primarily due to higher excess tax benefits recognized on employee stock option exercises and the favorable impact of purchased energy tax credits, both of which reduced the Company's income tax expense.
Stock-Based Compensation
We recognized $30.8 million and $28.0 million in stock-based compensation expense during the six months ended June 30, 2026 and 2025, respectively. The amount of stock-based compensation expense recognized is primarily based upon management's estimate of when the financial vesting targets of outstanding stock options may be achieved. Any change in the estimate could result in the 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 in future periods and could materially affect earnings (See Note 7 to the Consolidated Financial Statements).
We expect to recognize approximately $32.4 million in stock-based compensation expense during the remainder of 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

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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 our subsidiaries. As described under the caption “Regulatory Considerations” in our Annual Report on Form 10-K, 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.

Non-GAAP Information and Reconciliation
We present certain non‑GAAP financial measures to supplement the consolidated financial statements prepared in accordance with GAAP. Management believes these measures provide useful information to investors by enhancing the understanding of our core operating performance and facilitating comparisons across reporting periods. These non‑GAAP measures are also used by our management to evaluate operating results, allocate resources, and assess performance against strategic objectives.
These non-GAAP financial measures should be viewed in addition to, and not as a substitute for, reported results prepared in accordance with GAAP.
The following schedules reconcile U.S. GAAP Net income attributable to SEI Investments Company and Income from operations on the accompanying Consolidated Statements of Operations for the three and six months ended June 30, 2026 and 2025:

Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
Net income attributable to SEI Investments Company (U.S. GAAP basis) $ 195,658  $ 227,083  $ 370,145  $ 378,600 
Non-GAAP adjustments:
Acquisition-related:
Third party costs (1)
—  820  —  820 
Intangible assets amortization & impairments (2)
7,057  3,157  13,691  6,606 

Total acquisition-related 7,057  3,977  13,691  7,426 
Gain on sale of asset/business (3)
—  (94,412) —  (94,412)
Litigation settlements and insurance proceeds (4)
3,808  (4,500) 3,808  (4,500)

Income tax effect (5)
(2,338) 21,142  (3,891) 20,354 
Adjusted net income attributable to SEI Investments Company (non-GAAP basis) $ 204,185  $ 153,290  $ 383,753  $ 307,468 

Diluted earnings per common share (U.S. GAAP basis) $ 1.59  $ 1.78  $ 2.99  $ 2.95 
Adjusted diluted earnings per common share (non-GAAP basis) $ 1.66  $ 1.20  3.10  2.40 
Diluted weighted average shares outstanding 123,334 127,278  123,914 128,364 

Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
Income from operations (U.S. GAAP Basis) 197,016  148,635  386,502  305,732 
Non-GAAP adjustments:
Acquisition-related:
Third party costs (1)
—  820  —  820 
Intangible assets amortization & impairments (2)
9,935  3,157  19,132  6,606 
Total acquisition-related 9,935  3,977  19,132  7,426 

Adjusted income from operations (non-GAAP Basis) $ 206,951  $ 152,612  $ 405,634  $ 313,158 

(1) This non-GAAP adjustment removes incremental and directly attributable costs incurred to execute acquisitions, such as third-party advisory, legal, accounting, valuation, and due diligence. For the three and six months ended June 30, 2025, this non-GAAP adjustment

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consisted of the legal costs, advisory fees, and due diligence fees in relation to the Stratos acquisition. Management believes adjusting for these charges helps the reader's ability to understand our core operating results and increases comparability quarter to quarter.
(2) This non-GAAP adjustment removes the impact of amortization expense associated with acquired intangible assets (e.g., customer relationships, technology, trade names). This non-GAAP adjustment removes only amortization recorded in the current period related to acquired intangibles from prior acquisitions. The non-GAAP adjustments in 2026 include the amortization of the acquired intangibles from the Stratos acquisition, which closed in December 2025. Management included the Stratos related amortization expense net of the 42.5% NCI adjustment for the adjusted EPS calculation. However, this adjustment is not inclusive of the NCI portion for adjusted income from operations. The associated revenues are not adjusted. Management believes adjusting for these charges helps the reader's ability to understand our core operating results and increases comparability quarter to quarter.
(3) This non-GAAP adjustment removes realized gains on the sale of assets owned or entities under our control, out of the normal course of business. For the three and six months ended June 30, 2025, the adjustment consisted of the realized gain from the sale of Family Office Services (FOS). Management believes adjusting for these gains helps the reader's ability to understand our core operating results and increases comparability quarter to quarter.
(4) This non-GAAP adjustment removes individually significant litigation settlements and insurance proceeds. For the three and six months ended June 30, 2025, this non-GAAP adjustment consisted of a $4.5M settlement related to a vendor matter. For the three and six months ended June 30, 2026, this non-GAAP adjustment was related to litigation settlements. Management included these transactions as non-GAAP adjustments since they were out of the normal course of business. Management believes adjusting for these items helps the reader's ability to understand our core operating results and increases comparability quarter to quarter.
(5) Income tax effects are presented as a separate reconciling item (not netted within each adjustment). For performance measures, the tax effect reflects current and deferred tax expense commensurate with the adjusted measure of profitability. The methodology used (e.g., statutory rate, effective rate, or discrete item approach) is consistently applied. All of the above items use a systematic approach.

Liquidity and Capital Resources

  Six Months Ended June 30,
  2026 2025
Net cash provided by operating activities $ 347,367  $ 243,005 
Net cash provided by investing activities 16,863  65,268 
Net cash used in financing activities (356,918) (419,220)
Effect of exchange rate changes on cash and cash equivalents (5,406) 17,103 
Net change in cash and cash equivalents and cash and cash equivalents held at consolidated variable interest entities 1,906  (93,844)
Cash, cash equivalents and cash and cash equivalents held at consolidated variable interest entities, beginning of period 470,595  840,193 
Cash, cash equivalents and cash and cash equivalents held at consolidated variable interest entities, end of period $ 472,501  $ 746,349 

Our credit facility provides for borrowings up to $500.0 million and is scheduled to expire in August 2030 (See Note 6 to the Consolidated Financial Statements). As of July 10, 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 July 10, 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 July 10, 2026, the amount of cash and cash equivalents considered free and immediately accessible for other general corporate purposes was $239.2 million.
Cash and cash equivalents include cash of $76.8 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 15 to the Consolidated Financial Statements).

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Cash and cash equivalents also include accounts managed by 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 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 increased $104.4 million in the first six months of 2026 compared to the first six months of 2025 primarily from the positive change in working capital accounts, increased distributions received from unconsolidated affiliates and non-cash adjustments.
Net cash from investing activities includes:
• Purchases, sales and maturities of marketable securities. Purchases, sales and maturities of marketable securities in the first six months of 2026 and 2025 were as follows:

Six Months Ended June 30,
2026 2025
Purchases $ (81,568) $ (85,681)
Sales and maturities 105,985  65,168 
Net investing activities from marketable securities $ 24,417  $ (20,513)

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 $11.1 million of software development costs in the first six months of 2026 as compared to $14.5 million in the first six months of 2025 related to significant enhancements for the expanded functionality of the SEI Wealth Platform and a new platform for the Investment Managers segment.
• Capital expenditures. Capital expenditures in the first six months of 2026 were $15.0 million as compared to $12.5 million in the first six months of 2025. Expenditures in 2026 and 2025 include capital outlays for purchased software and equipment for data center operations.
Net cash from financing activities includes:
• The repurchase of common stock. We had total capital outlays of $320.7 million during the first six months of 2026 and $383.3 million during the first six months of 2025 for the repurchase of common stock.
• Proceeds from the issuance of common stock. We received $90.5 million and $87.4 million in proceeds from the issuance of common stock during the first six months of 2026 and 2025, respectively, through our equity compensation plans. These proceeds were primarily from stock option exercise activity.
• Dividend payments. Cash dividends paid were $126.3 million in the first six months of 2026 as compared to $123.3 million in the first six months of 2025.
Cash Requirements
Cash requirements and liquidity needs are primarily funded through cash flow from operations and our capacity for additional borrowing. At June 30, 2026, 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, promissory notes and other commitments. We believe our operating cash 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.
Forward-Looking Information and Risk Factors
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Certain information contained in this discussion is or may be considered forward-looking. Forward-looking statements relate to future operations, strategies, financial results or other developments. Forward-looking statements are based upon estimates and assumptions that involve certain risks and uncertainties, many of which are beyond our control or are subject to change. Although we believe our assumptions are reasonable, they could be inaccurate. Our actual future revenues and income could differ materially from our expected results. We have no obligation to publicly update or revise any forward-looking statements.

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Among the risks and uncertainties which may affect our future operations, strategies, financial results or other developments are those risks described in our latest Annual Report on Form 10-K in Part I, Item 1A. These risks include the following:
• Market-driven risks related to capital market conditions, asset values, interest rates, market volatility, and investor sentiment;
• Client and relationship risks, including client attrition, unfavorable contract renewals, and loss of large clients;
• Fee compression and competitive pricing pressure across investment management and technology services;
• Product development and innovation risks, including delays, cost overruns, system issues, and failure of new offerings to gain market acceptance Business model innovation and expansion risks, including entry into new markets or channels (e.g., direct-to-consumer);
• Market consolidation and competitive disruption from traditional competitors, fintechs, and large technology firms;
• Key personnel and broader human capital risks, including retention, workforce reductions, and talent availability;
• Outsourcing and offshoring strategy risks associated with the Global Capability Center in India;
• M&A execution and integration risks, including the Stratos acquisition and other strategic transactions;
• Dependence on third-party service providers, vendors, market infrastructure, sub-advisers, and pricing services;
• Process errors in fund accounting, investment operations, pricing, and other judgment-based or manual activities;
• Operational resilience risks, including business continuity and disaster recovery failures;
• Rapid growth and capacity constraints impacting cost structure, compliance, controls, cybersecurity, and scalability;
• Cybersecurity threats, including cyberattacks, data breaches, system failures, and third-party technology risks;
• Risks related to artificial intelligence, machine learning, and automation, including model risk, bias, and regulatory uncertainty;
• Tokenization risks, including regulatory uncertainty, cybersecurity, custody, valuation, liquidity, and smart contract risks;
• Open-source software risks, including security vulnerabilities and license compliance;
• Data privacy and protection risks related to handling sensitive personal and client data;
• Intellectual property risks involving protection of proprietary technology and infringement claims;
• System outages and downtime affecting platform availability, processing, and data integrity;
• Technology disruption, software defects, and development or implementation delays;
• Earnings volatility and cash flow exposure, including reliance on LSV Asset Management and strategic investments;
• Interest rate, currency, and tax law change risks affecting revenues, margins, and asset values;
• Covenant compliance risks under revolving credit facilities;
• Holding company structure risks, including restrictions on subsidiary cash distributions;
• Liquidity risk, particularly during market stress and in alternative investments;
• Investment performance risk and continued fee pressure across investment products;
• Insourcing of investment functions and increased operational complexity;
• Proprietary capital deployment risks and conflicts of interest;
• Fiduciary risk related to retirement plans, OCIO services, and competitive pressures;
• Regulatory changes and evolving compliance obligations across U.S. and global jurisdictions;
• Financial crime, sanctions, AML, and anti-corruption compliance risks;
• Privacy and data protection regulatory risk;
• Conflicts of interest involving clients, affiliates, directors, executives, and acquisitions;
• Litigation, regulatory examinations, and investigations;
• Shareholder activism and ESG-related scrutiny;
• Geopolitical instability, including wars, global tensions, and state-sponsored cyber activity;
• Unforeseen or catastrophic events, including pandemics, extreme weather, and natural disasters; and
• Climate change and ESG-related risks, including regulatory, reputational, and transition risks.

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We conduct operations through many regulated wholly-owned subsidiaries. These subsidiaries include:
• SEI Investments Distribution Co., or SIDCO, a broker-dealer registered with the SEC under the Securities Exchange Act of 1934 and a member of the Financial Industry Regulatory Authority, Inc., or FINRA;
• SEI Investments Management Corporation, or SIMC, an investment advisor registered with the SEC under the Investment Advisers Act of 1940 and with the Commodity Futures Trading Commission, or CFTC, under the Commodity Exchange Act;
• SEI Private Trust Company, or SPTC, a limited purpose federal thrift chartered and regulated by the Office of the Comptroller of the Currency;
• SEI Trust Company, or STC, a Pennsylvania trust company, regulated by the Pennsylvania Department of Banking and Securities;
• SEI Institutional Transfer Agent, Inc., or SITA, a transfer agent registered with the SEC under the Securities Exchange Act of 1934.
• SEI Investments (Europe) Limited, or SIEL, an investment manager and financial institution subject to regulation by the Financial Conduct Authority of the United Kingdom, or FCA;
• SEI Investments Canada Company, or SEI Canada, an investment fund manager that has various other capacities that is regulated by the Ontario Securities Commission and various provincial authorities;
• SEI Investments Global, Limited, or SIGL, a management company for Undertakings for Collective Investment in Transferable Securities, or UCITS, and for Alternative Investment Funds, or AIFs, that is regulated primarily by the Central Bank of Ireland, or CBI;
• SEI Investments - Global Fund Services, Ltd., or GFSL, an authorized provider of administration services for Irish and non-Irish collective investment schemes that is regulated by the CBI;
• SEI Investments - Depositary and Custodial Services (Ireland) Limited, or D&C, an authorized provider of depositary and custodial services that is regulated by the CBI;
• SEI Investments - Luxembourg S.A., or SEI Lux, a professional of the specialized financial sector subject to regulation by the Commission de Surveillance du Secteur Financier of the Grand Duchy of Luxembourg;
• SEI Investments Global (Cayman), Ltd., a full mutual fund administrator that is regulated by the Cayman Island Monetary Authority;
• SEI Investments (South Africa) (PTY) Limited, a Private Company that is a licensed Financial Service Provider regulated by the Financial Sector Conduct Authority; and
• SEI Investments - Guernsey Limited, a provider of custody, administration and reporting services that is regulated by the Guernsey Financial Services Commission.
In addition to the regulatory authorities listed above, our subsidiaries are subject to the jurisdiction of regulatory authorities in other foreign countries or jurisdictions. Further, in connection with our strategic investment in Stratos, we own 57.5% of the holding company that holds the equity of Stratos Wealth Securities, LLC, a limited purpose broker-dealer registered with the SEC under the Securities Exchange Act of 1934 and a member of FINRA, and the following SEC registered investment advisors:
• Stratos Wealth Advisors, LLC;
• Stratos Wealth Partners, Ltd.;
• Stratos Investment Management, LLC;
• Renaissance Investment Group, LLC; and
• Norland LLC.
In addition to our wholly-owned or majority-owned subsidiaries, we also own a minority interest of approximately 38.4% in LSV, which is also an investment advisor registered with the SEC.
The Company, its regulated subsidiaries, their regulated services and solutions and their customers are all subject to extensive legislation, regulation, and supervision that recently has been subject to, and continues to experience, significant change and increased regulatory activity. These changes and regulatory activities could have a material adverse effect on us and our clients.
The various governmental agencies and self-regulatory authorities that regulate or supervise the Company and its subsidiaries have broad administrative powers. In the event of a failure to comply with laws, regulations, and requirements of these agencies and authorities, or to meet regulator expectations, the possible business process changes required or sanctions that may be imposed include the suspension of individual employees, limitations on our ability to engage in business for specified periods of time or a direction that we comply with certain restrictions, the revocation of applicable

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registration as a broker-dealer, investment advisor or other regulated entity, and, as the case may be, censures and fines. Currently, our subsidiary in the United Kingdom, SIEL, is working with the FCA to determine the nature and scope of remedial actions in which SIEL will engage in order to meet the FCA's expectations and to enable SIEL to continue to grow and execute on its development and offering of new products and solutions. Additionally, certain securities and banking laws applicable to us and our subsidiaries provide for certain private rights of action that could give rise to civil litigation. Any litigation could have significant financial and non-financial consequences including monetary judgments and the requirement to take action or limit activities that could ultimately affect our business.
Governmental scrutiny from regulators, legislative bodies, and law enforcement agencies with respect to matters relating to our regulated subsidiaries and their activities, services and solutions, our business practices, our past actions and other matters has increased dramatically in the past several years. Responding to these examinations, investigations, actions, and lawsuits, regardless of the ultimate outcome of the proceeding, is time consuming and expensive and can divert the time and effort of our senior management from our business. Penalties, fines and changes to business processes sought by regulatory authorities have increased substantially over the last several years, and certain regulators have been more likely in recent years to commence enforcement actions or to advance or support legislation targeted at the financial services industry. We continue to be subject to inquiries from examinations and investigations by supervisory and enforcement divisions of regulatory authorities and expect this to continue in the future. We believe this is also the case with many of our regulated clients. Governmental scrutiny and legal and enforcement proceedings can also have a negative impact on our reputation, our relationship with clients and prospective clients, and on the morale and performance of our employees, which could adversely affect our businesses and results of operations.
We are subject to U.S. and foreign anti-money laundering and financial transparency laws that require implementation of regulations applicable to financial services companies, including standards for verifying client identification and monitoring client transactions and detecting and reporting suspicious activities. We offer investment and banking solutions that also are subject to regulation by the federal and state securities and banking authorities, as well as foreign regulatory authorities, where applicable. Existing or future regulations that affect these solutions could lead to a reduction in sales of these solutions or require modifications of these solutions.
We must comply with economic sanctions and embargo programs administered by the Office of Foreign Assets Control (OFAC) and similar national and multinational bodies and governmental agencies outside the United States, as well as anti-corruption and anti-money laundering laws and regulations throughout the world. We can incur higher costs and face greater compliance risks in structuring and operating our businesses to comply with these requirements. Furthermore, a violation of a sanction or embargo program or anti-corruption or anti-money laundering laws and regulations could subject us and our subsidiaries, and individual employees, to regulatory enforcement actions as well as significant civil and criminal penalties.
Our businesses are also subject to privacy and data protection information security legal requirements concerning the use and protection of certain personal information. These include those adopted pursuant to the Gramm-Leach-Bliley Act and the Fair and Accurate Credit Transactions Act of 2003 in the United States, the General Data Protection Regulation (GDPR) in the EU, Canada’s Personal Information Protection and Electronic Documents Act, the Cayman Islands' Data Protection Law, and various other laws. Privacy and data security legislation is a priority issue in many states and localities in the United States, as well as foreign jurisdictions outside of the EU. For example, California enacted the California Consumer Privacy Act (CCPA) which broadly regulates the sale of the consumer information of California residents and grants California residents certain rights to, among other things, access and delete data about them in certain circumstances. Other states are considering similar proposals. Such attempts by the states to regulate have the potential to create a patchwork of differing and/or conflicting state regulations. Ensuring compliance under ever-evolving privacy legislation, such as GDPR and CCPA, is an ongoing commitment, which involves substantial costs.
Compliance with existing and future regulations and responding to and complying with recent increased regulatory activity affecting broker-dealers, investment advisors, investment companies, financial institutions, and their service providers could have a significant impact on us. We periodically undergo regulatory examinations and respond to regulatory inquiries and document requests. In addition, recent and continuing legislative activity in the United States and in other jurisdictions (including the European Union and the United Kingdom) have made and continue to make extensive changes to the laws regulating financial services firms. As a result of these examinations, inquiries, and requests, as a result of increased civil litigation activity, and as a result of these new laws and regulations, we engage legal counsel and other subject matter experts, review our compliance procedures, solution and service offerings, and business operations, and make changes as we deem necessary or as may be required by the applicable authority. These additional activities and required changes may result in increased expense or may reduce revenues.
Our bank clients are subject to supervision by federal, state, and foreign banking and financial services authorities concerning the manner in which such clients purchase and receive our products and services. Our plan sponsor clients and our subsidiaries providing services to those clients are subject to supervision by the Department of Labor and

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compliance with employee benefit regulations. Investment advisor and broker-dealer clients are regulated by the SEC, state securities authorities, or FINRA. Existing or future regulations applicable to our clients may affect our clients’ purchase of our products and services.
In addition, see the discussion of governmental regulations in Item 1A “Risk Factors” in our latest Annual Report on Form 10-K for a description of the risks that the current regulatory regimes and proposed regulatory changes may present for our business.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Information required by this item is set forth under the captions "Our revenues and earnings are affected by changes in capital markets and significant changes in the value of financial instruments" and "Changes in interest rates may affect the value of our fixed-income investment securities" in Item 1A Risk Factors and under the caption "Sensitivity of our revenues and earnings to capital market fluctuations" in Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report on Form 10-K for the year ended December 31, 2025. There have been no material changes to this information as it is disclosed in our Annual Report on Form 10-K for 2025.

Item 4. Controls and Procedures.
(a) Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures as of the end of the period covered by this report are effective in ensuring that information required to be disclosed by us in reports filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Act is accumulated and communicated to the issuer’s management including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. A controls system, no matter how well designed and operated, cannot provide absolute assurance that the objectives of the controls systems are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected.
(b) Change in Internal Control over Financial Reporting
No change in our internal control over financial reporting occurred during the quarter ended June 30, 2026 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II – OTHER INFORMATION

Item 1. Legal Proceedings.
We and certain of our subsidiaries are a party to or have property subject to litigation and other proceedings, examinations and investigations that arise in the ordinary course of our business that we do not believe are material. These types of matters could result in fines, penalties, cost reimbursements or contributions, compensatory or treble damages or non-monetary sanctions or relief. We believe the probability is remote that the outcome of any of these matters will have a material adverse effect on SEI as a whole, notwithstanding that the unfavorable resolution of any matter may have a material effect on our net earnings in any particular interim reporting period. We cannot predict the outcome of legal or other proceedings with certainty. These matters include the proceedings summarized in “Note 11. Commitments and Contingencies” included in our Notes to Consolidated Financial Statements.

Item 1A. Risk Factors.
Information regarding risk factors appears in Part I – Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. There have been no material changes in the risk factors from those disclosed in the Annual Report on Form 10-K for 2025.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
(e)    Our Board of Directors has authorized the repurchase of up to $7.378 billion worth of our common stock through multiple authorizations through June 30, 2026. Currently, there is no expiration date for the common stock repurchase program.
Information regarding the repurchase of common stock during the three months ended June 30, 2026 is as follows:

Period Total Number
of Shares
Purchased Average
Price Paid
per Share (1) Total Number of
Shares Purchased as
Part of Publicly
Announced Program Approximate Dollar
Value of Shares that
May Yet Be
Purchased
Under the Program
April 2026 491,000  $ 81.53  491,000  $ 455,116,000 
May 2026 330,000  90.85  330,000  425,116,000 
June 2026 472,000  89.04  472,000  382,748,000 
Total 1,293,000  $ 86.65  1,293,000 

(1) Average price paid per share does not include excise tax on stock repurchases.

Item 5. Other Information.
During the three months ended June 30, 2026, none of our officers or directors adopted or terminated any contract, instruction or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any "non-Rule 10b5-1 trading arrangement" (as defined in Item 408 (c) of Regulation S-K).

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Item 6. Exhibits.
The following is a list of exhibits filed as part of the Form 10-Q.

31.1 Rule 13a-15(e)/15d-15(e) Certification of Principal Executive Officer.

31.2 Rule 13a-15(e)/15d-15(e) Certification of Principal Financial Officer.

32 Section 1350 Certifications.

101.INS XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH XBRL Taxonomy Extension Schema Document

101.CAL XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF XBRL Taxonomy Extension Definition Linkbase Document

101.LAB XBRL Taxonomy Extension Label Linkbase Document

101.PRE XBRL Taxonomy Extension Presentation Linkbase Document

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

  SEI INVESTMENTS COMPANY

Date: July 27, 2026   By: /s/ Sean J. Denham
  Sean J. Denham
  Chief Financial and Chief Operating Officer

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