SEI Investments Co. recently released its 10-Q report for the quarter ended June 30, 2026. The company is a publicly owned asset management holding company based in Oaks, Pennsylvania, with subsidiaries that provide wealth management, retirement and investment solutions, asset administration, investment processing outsourcing, financial services and investment advisory services. Its client base includes private banks, advisers, institutions, corporations, retirement plans and fund sponsors, and it also manages separate portfolios and mutual funds across equity, fixed income and balanced strategies.
In Item 2, management said SEI and its subsidiaries and partnerships managed, advised or administered $2.1 trillion in hedge, private equity, mutual fund and pooled or separately managed assets as of June 30, 2026. Revenue for the quarter rose 15% to $641.6 million from $559.6 million a year earlier, while six-month revenue increased 14% to $1.264 billion from $1.111 billion. Operating profit climbed 33% in the quarter to $197.0 million and 26% in the first half to $386.5 million.
Net income attributable to SEI fell 14% in the quarter to $195.7 million from $227.1 million, while diluted earnings per share declined to $1.59 from $1.78. For the first six months, net income attributable to SEI was $370.1 million, down 2% from $378.6 million, and diluted EPS rose to $2.99 from $2.95.
The company said revenue growth in the first half was driven mainly by higher assets under administration, including cross-sales to existing alternative investment clients and new sales in the Investment Managers segment. Average assets under administration increased $212.7 billion, or 19%, to $1.3 trillion. Average assets under management in equity and fixed income programs, excluding LSV, rose $26.7 billion, or 15%, to $209.8 billion.
Stratos contributed $40.1 million to revenue in the first six months and $6.1 million to operating profit, after $12.8 million of acquired intangible amortization. SEI said it completed purchases of 100% interests in nine entities and majority interests in two additional entities during the first half, funded by a cash deposit made in December 2025 and promissory notes.
Operating expenses rose 8% in the quarter to $444.6 million and 9% in the first half to $877.3 million, mainly from compensation, benefits and other personnel costs, higher direct costs tied to subadvisory, distribution and other asset management costs, and incremental Stratos-related expenses. Capitalized software development costs totaled $11.1 million in the first half, including $7.5 million for SEI Wealth Platform enhancements and $3.7 million for SEI Scope. Amortization tied to SWP was $15.2 million, and SEI Scope amortization was $3.0 million.
SEI repurchased 3.8 million shares for $320.7 million in the first six months of 2026. At June 30, 2026, total assets under management were $606.7 billion, client assets under administration were $1.361 trillion, platform-only assets were $40.7 billion, and Stratos added $41.9 billion in client assets. By segment, Investment Managers posted $448.4 million of revenue and $178.5 million of operating profit in the first half; Private Banks generated $309.1 million of revenue and $63.9 million of operating profit; Investment Advisors produced $347.6 million of revenue and $146.7 million of operating profit; Institutional Investors recorded $141.2 million of revenue and $67.3 million of operating profit; and Investments in New Businesses had $17.5 million of revenue and a $1.8 million operating loss. The market has reacted to these announcements by moving the company's shares 2.03% to a price of $101.23. If you want to know more, read the company's complete 10-Q report here.
