Financial technology provider SEI Investments (NASDAQ: SEIC) missed Wall Street’s revenue expectations in Q3 CY2025, but sales rose 7.7% year on year to $578.5 million. Its GAAP profit of $1.30 per share was 4.2% above analysts’ consensus estimates.

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"SEI delivered another strong quarter, surpassing $100 million in net sales events year to date—a record for our company through the third quarter. Excluding one-time items, third-quarter earnings per share also hit a record high. Our growth is underscored by the disciplined execution of our clear enterprise strategy, and we have confidence in our healthy sales pipelines," said CEO Ryan Hicke.

Company Overview

Founded in 1968 as Simulated Environments Inc. to train bank loan officers using computer simulations, SEI Investments (NASDAQ: SEIC) provides technology platforms, investment management, and operational solutions for financial institutions, wealth managers, and investors.

Revenue Growth

A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Regrettably, SEI Investments’s revenue grew at a mediocre 6.2% compounded annual growth rate over the last five years. This wasn’t a great result compared to the rest of the financials sector, but there are still things to like about SEI Investments.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. SEI Investments’s annualized revenue growth of 9% over the last two years is above its five-year trend, suggesting some bright spots. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, SEI Investments’s revenue grew by 7.7% year on year to $578.5 million, missing Wall Street’s estimates.

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Assets Under Management (AUM)

Assets Under Management (AUM) is the cornerstone of a financial firm's investment division, representing all client capital under its stewardship. Management fees on this AUM create reliable, recurring revenue that maintains stability even when investment performance struggles, though prolonged poor returns can eventually affect asset retention and growth.

SEI Investments’s AUM has grown at an annual rate of 5.1% over the last five years, worse than the broader financials industry and slower than its total revenue. When analyzing SEI Investments’s AUM over the last two years, we can see that growth accelerated to 8.9% annually. This performance aligned with its total revenue.

SEI Investments’s AUM punched in at $213.8 billion this quarter, falling 60.6% short of analysts’ expectations. This print was 8.4% higher than the same quarter last year.

Key Takeaways from SEI Investments’s Q3 Results

It was good to see SEI Investments beat analysts’ EPS expectations this quarter. On the other hand, its revenue fell slightly short of Wall Street’s estimates. Zooming out, we think this was a mixed quarter. The stock remained flat at $81.20 immediately after reporting.

Is SEI Investments an attractive investment opportunity right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.