SEI Investments Q4 2025 SEI Investments Co Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 SEI Investments Co Earnings Call
Operator: Hello, and thank you for standing by. Welcome to SEI Q4 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask the question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. I would now like to hand the call over to Brad Burke, Head of Investor Relations. You may begin.
Hello, and thank you for standing by. Welcome to SEI Q4 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask the question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. I would now like to hand the call over to Brad Burke, Head of Investor Relations. You may begin.
Speaker #1: Hello thank you for standing and by Welcome to CI Earnings quarter . 2020 Conference fourth Call . At this time , all participants are listen mode .
Speaker #1: only After the in a speaker's presentation , there will be a and question session . answer ask a question To session , you will need to during the telephone .
Speaker #1: one on your press You will then hear star one automated message raised your hand advising question , . To withdraw your star please press one one again .
Brad Burke: Thank you, and welcome, everyone. We appreciate you joining us today for SEI's Q4 2025 earnings call. On the call, we have Ryan Hicke, SEI's Chief Executive Officer, Sean Denham, Chief Financial Officer and Chief Operating Officer, and members of our executive management team, including Michael Lane, Phil McCabe, Mike Peterson, Sanjay Sharma, and Amy Sliwinski. Before we begin, I'd like to point out that our earnings press release and the presentation accompanying today's call can be found under the Investor Relations section of our website at seic.com. This call is being webcast live, and a replay will be available on the Events and Webcast page of our website. With that, I'll now turn the call over to Ryan. Ryan?
Brad Burke: Thank you, and welcome, everyone. We appreciate you joining us today for SEI's Q4 2025 earnings call. On the call, we have Ryan Hicke, SEI's Chief Executive Officer, Sean Denham, Chief Financial Officer and Chief Operating Officer, and members of our executive management team, including Michael Lane, Phil McCabe, Mike Peterson, Sanjay Sharma, and Amy Sliwinski. Before we begin, I'd like to point out that our earnings press release and the presentation accompanying today's call can be found under the Investor Relations section of our website at seic.com. This call is being webcast live, and a replay will be available on the Events and Webcast page of our website. With that, I'll now turn the call over to Ryan. Ryan?
Speaker #1: I will now hand the call over to Bradley Burke, Head of Investor Relations. Bradley, would you like to begin?
Speaker #1: . welcome
Speaker #2: you and We you joining today for appreciate us CES quarter fourth Thank 2020 Earnings Call . have Ryan call , we S's chief Hickey , On the Executive Officer , Sean Denham Financial and Chief Chief Officer Officer Operating and members of our team , management executive including Michael , Phil McCabe , Lane Mike Peterson , Shah , Sharma Sanjay Sneha and Amy Slawinski .
Speaker #2: like to we begin , I'd point out that Before our earnings press and the accompanying release can be today's call Investor presentation found under the Relations section of our website at .
Speaker #2: call is This being live . In will be available on the events and . A replay webcast website . page of our With that , I'll now turn the call over to Ryan .
Ryan Hicke: Thank you, Brad, and good afternoon, everyone. I'm pleased to report that SEI ended the year with an exceptional quarter, capping off one of the strongest years in our 58-year history. Earnings per share totaled $1.38 for the quarter. After accounting for some of the noisier items that Sean will walk through, Q4 represents our highest-ever quarterly earnings performance. What's most exciting is that these results were impressively broad-based, driven by revenue growth and margin expansion across almost all business segments. This was a total SEI effort, not driven by a single business or a one-off event. It's a testament to the power of our integrated approach and the relentless execution from teams across the globe.
Ryan Hicke: Thank you, Brad, and good afternoon, everyone. I'm pleased to report that SEI ended the year with an exceptional quarter, capping off one of the strongest years in our 58-year history. Earnings per share totaled $1.38 for the quarter. After accounting for some of the noisier items that Sean will walk through, Q4 represents our highest-ever quarterly earnings performance. What's most exciting is that these results were impressively broad-based, driven by revenue growth and margin expansion across almost all business segments. This was a total SEI effort, not driven by a single business or a one-off event. It's a testament to the power of our integrated approach and the relentless execution from teams across the globe.
Speaker #2: .
Speaker #3: Thank
Speaker #3: and good afternoon , everyone . I'm pleased to report that SGI ended the year Ryan with an exceptional quarter capping off , years in strongest our 58 year history .
Speaker #3: Earnings one of the per share totaled quarter $1.38 for the , after accounting for some of the Sean items that will walk noisier Q4 represents our ever highest quarterly earnings .
Speaker #3: What's most performance-exciting is that these results were impressively broad-based, driven by margin growth and across expansion in almost all segments.
Speaker #3: business This was a total FDI not driven by a single business or a one off event . It's a effort , testament to the power of our integrated approach and the execution from relentless teams across the globe .
Ryan Hicke: We also sprinted to the finish line with our sales events, posting a total of $44 million, one of our highest ever quarterly results, and capping off our strongest year ever for sales events. Notably, private banking delivered a standout performance, posting $28 million in net sales events. As we discussed on our last earnings call, we were confident in the strength of our private banking pipeline, and I'm pleased to report that we're doing exactly what we said we would, translating that pipeline into meaningful results. This quarter's success is the result of disciplined execution against a clear strategy. My expectation is that the sales momentum we generated in Q4 will carry into 2026, and it's not just banking. Asset management is building traction, and IMS continues to benefit from structural demand for outsourcing, especially amongst large alternative managers.
We also sprinted to the finish line with our sales events, posting a total of $44 million, one of our highest ever quarterly results, and capping off our strongest year ever for sales events. Notably, private banking delivered a standout performance, posting $28 million in net sales events. As we discussed on our last earnings call, we were confident in the strength of our private banking pipeline, and I'm pleased to report that we're doing exactly what we said we would, translating that pipeline into meaningful results. This quarter's success is the result of disciplined execution against a clear strategy. My expectation is that the sales momentum we generated in Q4 will carry into 2026, and it's not just banking. Asset management is building traction, and IMS continues to benefit from structural demand for outsourcing, especially amongst large alternative managers.
Speaker #3: We sprinted to the also finish line with our sales events , posting total a $44 million , one of our highest ever quarterly of results , and capping off our strongest year ever for sales events Notably , .
Speaker #3: Private banking delivered a standout performance, posting $28 million in net sales events discussed on our last earnings call. As we said, we were confident in the strength of our private banking pipeline, and I'm pleased to report that we're doing exactly what we said we would.
Speaker #3: Translating that pipeline meaningful into results this quarter . Success is result of the disciplined execution against a strategy clear . My expectation is that the momentum we sales generated in Q4 will carry into 2026 , and it's not just banking , asset management is building traction and IMS continues to benefit from structural demand for outsourcing , especially amongst large alternative managers .
Ryan Hicke: We've been signaling for several quarters that we're working with some of the largest global alternative asset managers, including first-time outsourcers, and I expect we'll have some meaningful developments to announce by the April earnings call. During the quarter, we also achieved a major milestone with the first close of our Stratos partnership. Stratos brings a proven advisor and client-centric model that's a strong cultural fit with SEI. It also gives us deeper insight into the needs of end clients, strengthening our appreciation of how advisors and intermediaries run their businesses. We're already seeing tangible benefits, including greater awareness of SEI across the RIA and broker-dealer channels, and renewed inbound interest in our capabilities. Our focus now is on integrating our technology and investment management strengths with Stratos' platform and continuing to learn from their team as we scale together.
We've been signaling for several quarters that we're working with some of the largest global alternative asset managers, including first-time outsourcers, and I expect we'll have some meaningful developments to announce by the April earnings call. During the quarter, we also achieved a major milestone with the first close of our Stratos partnership. Stratos brings a proven advisor and client-centric model that's a strong cultural fit with SEI. It also gives us deeper insight into the needs of end clients, strengthening our appreciation of how advisors and intermediaries run their businesses. We're already seeing tangible benefits, including greater awareness of SEI across the RIA and broker-dealer channels, and renewed inbound interest in our capabilities. Our focus now is on integrating our technology and investment management strengths with Stratos' platform and continuing to learn from their team as we scale together.
Speaker #3: We've been signaling for several quarters that we're with some of working the largest global alternative asset managers , including first time Outsourcers , and I expect we'll have some meaningful developments to announce by the April earnings call .
Speaker #3: During the quarter, we also achieved a major milestone with the first close of our Stratus partnership. Stratus brings an advisor- and client-centric model, proven and a strong cultural fit with CI.
Speaker #3: It also gives us insight into the needs of end deeper clients , strengthening our appreciation of how advisors and intermediaries run their businesses .
Speaker #3: Including benefits, we're already seeing tangible results: greater awareness of CI across the RIA and dealer-broker channels, and renewed inbound interest in our capabilities.
Speaker #3: Our focus now is on integrating our technology and investment management strengths with the Stratus platform and continuing to learn from their team as we scale together.
Ryan Hicke: This is a long-term strategic partnership, and we're focused on adding value in ways that support rather than disrupt their impressive organic growth. Stepping back from the numbers, it's important to focus on what's driving SEI's success. These outcomes are rooted in deliberate choices and a deep understanding of where our strengths align with the most attractive opportunities in the industry, specifically the growing demand for outsourcing, especially from alternative managers, and the continued convergence of public and private markets, as well as the enduring demand for advice from end clients. These themes are intensifying, and we have leaned into these secular tailwinds with intentional investments over the last several years, and these are translating into repeatable performance. For example, we commercialized our private banking professional services, Data Cloud, and SaaS offering, strengthening client retention and unlocking new growth opportunities.
This is a long-term strategic partnership, and we're focused on adding value in ways that support rather than disrupt their impressive organic growth. Stepping back from the numbers, it's important to focus on what's driving SEI's success. These outcomes are rooted in deliberate choices and a deep understanding of where our strengths align with the most attractive opportunities in the industry, specifically the growing demand for outsourcing, especially from alternative managers, and the continued convergence of public and private markets, as well as the enduring demand for advice from end clients. These themes are intensifying, and we have leaned into these secular tailwinds with intentional investments over the last several years, and these are translating into repeatable performance. For example, we commercialized our private banking professional services, Data Cloud, and SaaS offering, strengthening client retention and unlocking new growth opportunities.
Speaker #3: This is a long term strategic we're partnership , and focused on adding value in ways that support rather than disrupt their impressive organic growth .
Speaker #3: Stepping back from the numbers, it's important to focus on driving CI—what's success. These outcomes are rooted in deliberate choices and a deep understanding of where our strengths align with the most attractive opportunities in the industry.
Speaker #3: Specifically, the growing demand for outsourcing, especially from alternative managers, and the continued convergence of public and private markets, as well as the enduring demand for advice from end clients. These—
Speaker #3: themes are intensifying , and we have leaned secular tailwinds with into these intentional investments over the last several years . And these are translating into repeatable performance for example , we commercialized our private banking professional services , data cloud SaaS and offering strengthening client retention and unlocking new growth opportunities .
Ryan Hicke: We added new leadership and talent across the organization, driving sharper execution, infusing fresh ideas, and increasing accountability. We laid the foundation for our global capability center, which we expect will help us scale operations more efficiently as we continue to grow. And through the Stratos partnership, we expanded our reach in the advisor channel, positioning SEI to capture new flows and deliver greater client value. As we look to 2026, we intend to double down on what's working. We're accelerating investment management product launches in ETFs, SMAs, models, and select alternative products where we have an edge. These launches build on our early traction, including more than $1 billion of net inflows into ETFs this year for SEI.
We added new leadership and talent across the organization, driving sharper execution, infusing fresh ideas, and increasing accountability. We laid the foundation for our global capability center, which we expect will help us scale operations more efficiently as we continue to grow. And through the Stratos partnership, we expanded our reach in the advisor channel, positioning SEI to capture new flows and deliver greater client value. As we look to 2026, we intend to double down on what's working. We're accelerating investment management product launches in ETFs, SMAs, models, and select alternative products where we have an edge. These launches build on our early traction, including more than $1 billion of net inflows into ETFs this year for SEI.
Speaker #3: We added new leadership and talent across the organization , driving sharper execution , infusing fresh increasing accountability ideas and . We laid the foundation for our Capability Center , which we global expect will help us scale operations more efficiently as we grow continue to .
Speaker #3: And through the partnership , expanded we our reach in the advisor channel , positioning CI to capture new flows and deliver greater client value .
Speaker #3: As we look to 2026, we intend to double down on what's working. We're accelerating investment management and product launches in ETFs, SMAs, and select alternative products where we and our models have an edge.
Speaker #3: we As look to 2026 , we to double down intend on what's working . We're accelerating investment management , product launches in ETFs , SMAs and select alternative products where we , models have an edge . on our These launches build early traction , including more than $1 billion of net inflows into ETFs this year for CI .
Ryan Hicke: We're continuing to evolve the operating model of our IMS business, transitioning from fund-by-fund operations to platform-level services, with shared tooling, workflow automation, and data services, so we can onboard and expand with large investment managers more efficiently. We are leveraging automation and AI to lower unit costs and expand access to our solutions, supporting entry into underserved segments while maintaining client experience at scale. For instance, in Q4, we made a strategic investment in Avantos, an AI-native operating system for client onboarding. It's a great example of SEI's commitment to creating a more connected, scalable, and intelligent experience across our platforms. And as always, we'll pursue these priorities with discipline, holding ourselves accountable for maximizing the enterprise value of SEI. You've heard us be ultra-transparent for the last several quarters and at our Investor Day about our strategy and how we're running the company differently.
We're continuing to evolve the operating model of our IMS business, transitioning from fund-by-fund operations to platform-level services, with shared tooling, workflow automation, and data services, so we can onboard and expand with large investment managers more efficiently. We are leveraging automation and AI to lower unit costs and expand access to our solutions, supporting entry into underserved segments while maintaining client experience at scale. For instance, in Q4, we made a strategic investment in Avantos, an AI-native operating system for client onboarding. It's a great example of SEI's commitment to creating a more connected, scalable, and intelligent experience across our platforms.
Speaker #3: We're continuing to evolve the operating model of our business . IMS from fund by fund operations to platform level services with shared tooling , workflow automation and data services so we can onboard and expand with large investment managers more efficiently .
Speaker #3: We are leveraging automation and AI to lower unit costs and expand access to our solutions, supporting entry into underserved segments while maintaining client experience at scale.
Speaker #3: For instance , in the fourth quarter , we made a strategic the investment in an AI native operating system for client onboarding . It's a great example of CES commitment to creating a more connected , scalable , and intelligent experience across our platforms .
And as always, we'll pursue these priorities with discipline, holding ourselves accountable for maximizing the enterprise value of SEI. You've heard us be ultra-transparent for the last several quarters and at our Investor Day about our strategy and how we're running the company differently. The team is in place, our priorities are clear, and 2026 is about focus and execution on the roadmap we've laid out together. Against that backdrop, our job in 2026 is actually simple: go execute. With that, Sean will take us through the quarterly results in more depth. Sean?
Speaker #3: And this always will pursue these priorities with discipline . Holding ourselves accountable for maximizing the enterprise value of CI . You've heard us be ultra transparent for the last several quarters , and at our Investor Day about our strategy and how we're running the company differently .
Ryan Hicke: The team is in place, our priorities are clear, and 2026 is about focus and execution on the roadmap we've laid out together. Against that backdrop, our job in 2026 is actually simple: go execute. With that, Sean will take us through the quarterly results in more depth. Sean?
Speaker #3: The team is in place . Our priorities are clear , and 2026 is about focus and execution . On the roadmap we've laid out together .
Speaker #3: Against that backdrop , our job in 2026 is actually simple go execute . With that , Shawn will take us through the quarterly results in depth .
Sean Denham: Thank you, Ryan. Starting with slide 4, and to reiterate Ryan's commentary, SEI had an outstanding fourth quarter, both including and excluding unusual items impacting results, which collectively reduced EPS by approximately $0.08. Those items included $20 million of elevated corporate overhead expense related to severance and M&A fees incurred in the quarter. This was partially offset by a $3 million tax benefit from purchased energy credits and a $3 million revenue accrual true-up benefit captured within IMS. We always have accrual adjustments based on actuals versus estimates, but in the fourth quarter, that adjustment was more pronounced than normal.
Sean Denham: Thank you, Ryan. Starting with slide 4, and to reiterate Ryan's commentary, SEI had an outstanding fourth quarter, both including and excluding unusual items impacting results, which collectively reduced EPS by approximately $0.08. Those items included $20 million of elevated corporate overhead expense related to severance and M&A fees incurred in the quarter. This was partially offset by a $3 million tax benefit from purchased energy credits and a $3 million revenue accrual true-up benefit captured within IMS. We always have accrual adjustments based on actuals versus estimates, but in the fourth quarter, that adjustment was more pronounced than normal.
Speaker #3: more Shawn . Thank you . Ryan . Starting with four and slide reiterate , to Ryan's commentary , CI had an fourth quarter , outstanding both including and excluding unusual impacting items which results , collectively reduced EPs by approximately $0.08 .
Speaker #3: Those items included $20 million of elevated corporate overhead related expense to severance and M&A fees incurred in the . This was partially offset by $3 million tax a benefit Purchased energy from credits and a $3 million revenue accrual .
Speaker #3: True , up benefit captured within IMS . We always have accrual adjustments based on actuals versus estimates , but in the fourth quarter that adjustment was more pronounced than .
Sean Denham: We also had some items that, while not unusual, did go our way in the quarter, notably, LSV performance fees that were more than $3 million above the prior year at SEI share, and the $4 million gain on VIEs attributable to the LSV hedge fund seed investment we discussed last quarter. Also, while Stratos formally closed in Q4, we only owned the business for a few weeks, and many of the planned advisor roll-ups were finalized in early January. Given this timing, Stratos' financial impact was not meaningful to Q4 results. We will provide a fuller and more substantive update next quarter.
We also had some items that, while not unusual, did go our way in the quarter, notably, LSV performance fees that were more than $3 million above the prior year at SEI share, and the $4 million gain on VIEs attributable to the LSV hedge fund seed investment we discussed last quarter. Also, while Stratos formally closed in Q4, we only owned the business for a few weeks, and many of the planned advisor roll-ups were finalized in early January. Given this timing, Stratos' financial impact was not meaningful to Q4 results. We will provide a fuller and more substantive update next quarter.
Speaker #3: We also normal had some items not that unusual , did go our way in the quarter LSV . Notably performance fees that were more than $3 million above the prior year share .
Speaker #3: CI at And the $4 million gain on V's attributable to the LSV hedge fund seed investment . We discussed last quarter . Also , while formally Stratus , closed in the fourth quarter , we only owned the business for a few weeks , and the planned many of advisor roll were ups finalized January .
Speaker #3: in early Given this timing , Stratus financial not impact was meaningful to fourth quarter results . will We a and more fuller substantive provide update next quarter on a GAAP EPs increased basis , 16% year over year 6% sequentially , and and excluding unusual items from the current and prior periods would have , EPs been at an all time record , the prior exceeding record Q4 of achieved in year .
Sean Denham: On a GAAP basis, EPS increased 16% year-over-year and 6% sequentially, and excluding unusual items from the current and prior periods, EPS would have been at an all-time record, exceeding the prior record achieved in Q4 of last year. Overall, 2025 represents an excellent year for SEI, with double-digit earnings growth and more than a full percentage point of operating margin expansion. Slide 5 summarizes performance by business segment. Like Ryan mentioned, strong Q4 performance was broad-based, with positive contributions from each business segment, both revenue and operating profit, when measured against both the prior year and prior quarter. Private banking revenue benefited from recent professional services wins, which convert into revenue more quickly than we've historically reported as recurring sales events. Margins also increased due to cost leverage on revenue growth and the fact that these new professional services wins are overall margin accretive.
On a GAAP basis, EPS increased 16% year-over-year and 6% sequentially, and excluding unusual items from the current and prior periods, EPS would have been at an all-time record, exceeding the prior record achieved in Q4 of last year. Overall, 2025 represents an excellent year for SEI, with double-digit earnings growth and more than a full percentage point of operating margin expansion. Slide 5 summarizes performance by business segment.
Speaker #3: Last, and overall, excellent 2025 represents—with double-digit C/I, earnings digits more than growth in a full percentage point of operating margin.
Like Ryan mentioned, strong Q4 performance was broad-based, with positive contributions from each business segment, both revenue and operating profit, when measured against both the prior year and prior quarter. Private banking revenue benefited from recent professional services wins, which convert into revenue more quickly than we've historically reported as recurring sales events. Margins also increased due to cost leverage on revenue growth and the fact that these new professional services wins are overall margin accretive.
Speaker #3: expansion Slide five summarizes performance by business segment . Like Ryan Q4 mentioned , performance was strong with based positive contributions from each business segment .
Speaker #3: Both revenue and operating profit, when measured against both the prior year and prior quarter. Banking private revenue benefited from recent services professional wins, which converted into revenue more quickly than we've historically reported.
Speaker #3: As recurring sales events . Margins also increased due to cost leverage on revenue growth and the fact that these new professional services wins are overall margin accretive .
Sean Denham: IMS benefited from a $3 million revenue accrual true-up I mentioned earlier. Even excluding this benefit, revenue and margins increased meaningfully from both the prior year and prior quarter, driven by recent wins coming online and a modest contribution from market appreciation in our traditional business. Our two asset management segments realized sequential growth, which was driven by market appreciation and healthy flows in our advisors business, which offset the impact of client losses in the institutional segment, and the continued pressure on mutual fund outflows across the asset management industry. Our integrated cash program is reflected in both the prior year and prior quarter comparison. In the fourth quarter, this program contributed $21 billion to revenue, matching the levels achieved in the prior quarter and prior year.
IMS benefited from a $3 million revenue accrual true-up I mentioned earlier. Even excluding this benefit, revenue and margins increased meaningfully from both the prior year and prior quarter, driven by recent wins coming online and a modest contribution from market appreciation in our traditional business. Our two asset management segments realized sequential growth, which was driven by market appreciation and healthy flows in our advisors business, which offset the impact of client losses in the institutional segment, and the continued pressure on mutual fund outflows across the asset management industry. Our integrated cash program is reflected in both the prior year and prior quarter comparison. In the fourth quarter, this program contributed $21 billion to revenue, matching the levels achieved in the prior quarter and prior year.
Speaker #3: IMS benefited from a $3 million revenue accrual . True up . I mentioned earlier , even excluding this benefit revenue and margins increased meaningfully from both the prior year and prior quarter , driven by recent wins online and coming a modest contribution from market appreciation in our traditional business Our two asset management .
Speaker #3: Realized sequential growth, which was driven by market appreciation and healthy flows in our advisors business, which offset the impact of client losses in the Institutional segment and continued pressure on mutual fund outflows across the asset management industry.
Speaker #3: Our integrated cash program is reflected in both the prior year and prior quarter comparison. In the fourth quarter, this program contributed $21 million to revenue, matching the levels achieved in the prior quarter and prior year.
Sean Denham: Slide 6 illustrates our consolidated margin, which, as we've discussed with this group before, is something we are increasingly focused on as a management team, more so than the individual margins achieved in a single business segment, certainly in any given quarter. Consolidated operating margins were weighed down by severance and M&A costs captured in corporate overhead. Excluding these costs, consolidated operating margins significantly increased on both a year-over-year and sequential basis. Turning to sales events on Slide 7. Private banking led the quarter with $28 million of net sales events. Results were driven by two significant new mandates. In the largest of these, SEI will provide SWP software as a service, implementation services, and ongoing enterprise-wide professional services. This represents our second SWP SaaS client, demonstrating the underlying demand for our SaaS delivery model.
Slide 6 illustrates our consolidated margin, which, as we've discussed with this group before, is something we are increasingly focused on as a management team, more so than the individual margins achieved in a single business segment, certainly in any given quarter. Consolidated operating margins were weighed down by severance and M&A costs captured in corporate overhead. Excluding these costs, consolidated operating margins significantly increased on both a year-over-year and sequential basis. Turning to sales events on Slide 7. Private banking led the quarter with $28 million of net sales events. Results were driven by two significant new mandates. In the largest of these, SEI will provide SWP software as a service, implementation services, and ongoing enterprise-wide professional services. This represents our second SWP SaaS client, demonstrating the underlying demand for our SaaS delivery model.
Speaker #3: Slide six illustrates our consolidated margin, which, as we've discussed as a group before, is something we are increasingly focused on as a team management, more so than the individual margins achieved at a single business segment.
Speaker #3: given quarter Certainly . Consolidated operating margins were weighed down overhead by . Excluding these costs , consolidated operating margins increased on both a significantly year over year and sequential basis .
Speaker #3: Turning to sales events on slide seven . Private banking led the quarter with $28 million of net sales events . Results were driven by two significant new mandates and the largest of CI , will provide these , software as a service implementation .
Speaker #3: Services and ongoing enterprise wide professional services . This represents our second SaaS client , demonstrating the underlying demand for our SaaS delivery model engagement began with advisory work on .
Sean Denham: This engagement began with advisory work on strategy and system design, and the expanded award reflects the client's decision to have SEI execute the whole program. This underscores an emerging trend in private banking. We are increasingly partnering with clients in an advisory capacity, which may lead to larger and longer-duration professional services engagements. While we're very pleased with this momentum, we would also remind you that these large engagements can create variability in quarterly sales results, and Q4 represents a strong outcome that should not be extrapolated as a run rate. IMS realized net sales events of $20 million, with just over two-thirds coming from US-based alternative managers, and with no single win accounting for a significant percentage of the total. Our advisor segment net events were flattish in Q4. A key highlight was positive flow into SEI-managed ETFs from off-platform investors.
This engagement began with advisory work on strategy and system design, and the expanded award reflects the client's decision to have SEI execute the whole program. This underscores an emerging trend in private banking. We are increasingly partnering with clients in an advisory capacity, which may lead to larger and longer-duration professional services engagements. While we're very pleased with this momentum, we would also remind you that these large engagements can create variability in quarterly sales results, and Q4 represents a strong outcome that should not be extrapolated as a run rate.
Speaker #3: Strategy and design, system—this and the expanded award reflects the client's decision to have CI execute the full program. This underscores an emerging trend in private banking.
Speaker #3: We are increasingly partnering with clients in an advisory capacity , which may lead to larger and longer , longer duration professional services engagements .
Speaker #3: While we're very pleased with this momentum, we would also remind you that these large engagements can create variability in quarterly sales results.
IMS realized net sales events of $20 million, with just over two-thirds coming from US-based alternative managers, and with no single win accounting for a significant percentage of the total. Our advisor segment net events were flattish in Q4. A key highlight was positive flow into SEI-managed ETFs from off-platform investors. We talked about the strategic opportunity to distribute SEI investment products through third-party models, and the fourth quarter showed encouraging early progress on that initiative, offsetting the continued pressure from mutual fund outflows.
Speaker #3: fourth quarter represents a strong outcome that should not be a run rate extrapolated as . realized IMS net sales events of $20 million , with two thirds coming from just over US based alternative managers , and with no single win accounting for a significant percentage of the total .
Speaker #3: Our advisor segment , net net events were flattish in Q4 , a key highlight was positive flow into CI managed ETFs from off platform investors .
Sean Denham: We talked about the strategic opportunity to distribute SEI investment products through third-party models, and the fourth quarter showed encouraging early progress on that initiative, offsetting the continued pressure from mutual fund outflows. Negative institutional segment sales events primarily reflect client losses in the UK. During the quarter, we continued to streamline leadership and reset the cost structure to position this business for improved economics. Turning to our asset performance on Slide 8. SEI achieved both AUM and AUA growth, both sequentially and year-over-year. AUA growth of 3% was supported by strong win momentum and, to a lesser extent, market appreciation. AUM growth of 2% is attributable to market appreciation, which offset modest outflows in the quarter, primarily in the institutional business. With that said, focusing only on AUM growth understates some meaningful progress, especially within advisors.
Speaker #3: We've talked about the strategic opportunity to CI distribute investment products through third party models , and the fourth quarter showed encouraging early progress on that initiative , offsetting the continued pressure from mutual fund outflows .
Negative institutional segment sales events primarily reflect client losses in the UK. During the quarter, we continued to streamline leadership and reset the cost structure to position this business for improved economics. Turning to our asset performance on Slide 8. SEI achieved both AUM and AUA growth, both sequentially and year-over-year. AUA growth of 3% was supported by strong win momentum and, to a lesser extent, market appreciation. AUM growth of 2% is attributable to market appreciation, which offset modest outflows in the quarter, primarily in the institutional business. With that said, focusing only on AUM growth understates some meaningful progress, especially within advisors.
Speaker #3: Negative institutional segment sales events primarily reflect client losses in the U.K. During the quarter, we continued to streamline leadership and reset the cost structure to position this business for improved economics.
Speaker #3: Turning to our asset performance on slide eight . CI achieved both AUM and AUA growth . Both sequentially and year over year . AOA growth of 3% was supported by strong wind and to momentum a lesser extent , market appreciation .
Speaker #3: AUM growth of 2% is attributable to market offset appreciation , which modest outflows in the quarter , primarily in the institutional business , with that said , focusing only on AUM growth understates the meaningful progress , especially within advisors we moved the year , past over further market up , increasing the average size of winning , we're advisors .
Sean Denham: Over the past year, we moved further upmarket, increasing the average size of advisors we're winning, and we're beginning to see early success selling the full SEI ecosystem, such as our tax management and overlay capabilities, which drove an additional $2 billion of net new assets on the platform. As a result, advisors delivered their best net inflow year in over a decade, signaling tangible momentum behind our upmarket strategy and broader ecosystem approach. LSV assets under management increased 3.5% versus 2023 due to strong underlying fund performance and market appreciation, which offset $3 billion of net outflows in the fourth quarter. Underlying LSV performance remained solid, as evidenced by the $22 million of performance fees in Q4, or $8 million at SEI's share. Turning to capital allocation on Slide 9.
Over the past year, we moved further upmarket, increasing the average size of advisors we're winning, and we're beginning to see early success selling the full SEI ecosystem, such as our tax management and overlay capabilities, which drove an additional $2 billion of net new assets on the platform. As a result, advisors delivered their best net inflow year in over a decade, signaling tangible momentum behind our upmarket strategy and broader ecosystem approach. LSV assets under management increased 3.5% versus 2023 due to strong underlying fund performance and market appreciation, which offset $3 billion of net outflows in the fourth quarter. Underlying LSV performance remained solid, as evidenced by the $22 million of performance fees in Q4, or $8 million at SEI's share. Turning to capital allocation on Slide 9.
Speaker #3: We're beginning to see early success selling the full CI ecosystem, such as our tax management and overlay capabilities, which drove an additional $2 billion of net new assets on the platform.
Speaker #3: As a result, advisors delivered their best net inflow year in over a decade, signaling tangible momentum behind our upmarket strategy and broader ecosystem approach.
Speaker #3: LSV assets under management increased 3.5% versus Q3 due to strong underlying fund performance and market appreciation , which offset $3 billion of net outflows in the fourth quarter .
Speaker #3: Underlying LSV performance remained solid, as evidenced by the $22 million of performance fees in Q4, or $8 million at CI share.
Sean Denham: During Q4, we repurchased $101 million of shares, bringing full share repurchases to $616 million, representing nearly 6% of total shares outstanding from the end of 2024. We also completed the largest component of Stratos acquisition entirely with balance sheet cash, ending the year with $400 million of cash and no debt. We remain committed to returning 90 and 100 percent of free cash flow to shareholders in the form of both dividends and share repurchases. Before concluding, I want to spend a minute talking about our forward expectations. SEI has never provided earnings guidance, and that is a practice we intend to continue. However, there are a handful of items to keep in mind, especially towards the beginning of 2026. Some of these items are normal seasonality.
During Q4, we repurchased $101 million of shares, bringing full share repurchases to $616 million, representing nearly 6% of total shares outstanding from the end of 2024. We also completed the largest component of Stratos acquisition entirely with balance sheet cash, ending the year with $400 million of cash and no debt. We remain committed to returning 90 and 100 percent of free cash flow to shareholders in the form of both dividends and share repurchases. Before concluding, I want to spend a minute talking about our forward expectations. SEI has never provided earnings guidance, and that is a practice we intend to continue. However, there are a handful of items to keep in mind, especially towards the beginning of 2026. Some of these items are normal seasonality.
Speaker #3: Turning to allocation on slide nine . During the fourth quarter , we repurchased $101 million of shares , bringing full share repurchases to $616 million , shares representing nearly 6% of total outstanding .
Speaker #3: From the end of 2020 . For . We also completed the largest component of Stratus acquisition entirely , with balance sheet cash , ending the year with $400 million of cash and no debt .
Speaker #3: We remain committed to returning 90%, and 90% and 100% of free cash flow to shareholders in the form of both dividends and share repurchases.
Speaker #3: Before concluding, I want to spend a minute talking about our forward expectations. CI has never provided earnings guidance, and that is a practice we intend to continue.
Speaker #3: However , there are a handful of items to keep in especially towards the mind , beginning of these items are 2026 . normal Some of seasonality .
Sean Denham: Our tax rate is typically the lowest in Q4. Performance fees from LSV are typically highest in Q4 and lowest in Q1. The first quarter has two fewer days than the fourth quarter. The gains on our LSV investment are unlikely to repeat at Q4 levels, and we implement annual compensation increases effective January 1. Most of this impact is below the line, not operating income. Beyond these lumpier items, we are also advancing the accelerated investments Ryan discussed. We are hiring to support our strong pipeline and major wins across business lines, and we expect depreciation and amortization to step up next quarter due to placing certain large investments into service. We recognize that these investments must be balanced through thoughtful resource reallocation and ongoing cost efficiency efforts.
Our tax rate is typically the lowest in Q4. Performance fees from LSV are typically highest in Q4 and lowest in Q1. The first quarter has two fewer days than the fourth quarter. The gains on our LSV investment are unlikely to repeat at Q4 levels, and we implement annual compensation increases effective January 1. Most of this impact is below the line, not operating income. Beyond these lumpier items, we are also advancing the accelerated investments Ryan discussed. We are hiring to support our strong pipeline and major wins across business lines, and we expect depreciation and amortization to step up next quarter due to placing certain large investments into service. We recognize that these investments must be balanced through thoughtful resource reallocation and ongoing cost efficiency efforts.
Speaker #3: Our tax rate is typically the lowest in Q4 . Performance fees from LSV are typically highest in Q4 and Q1 lowest in The first quarter has two fewer days fourth quarter , gains on our in the LSV investment are unlikely to repeat at Q4 levels , and we implement annual compensation increases .
Speaker #3: January 1st . Most of this Effective impact is below the line , not operating income . Beyond these lumpier items , we are also advancing the the accelerated investments .
Speaker #3: Ryan discussed . We are hiring to support our strong pipeline and major wins across business lines , and we expect depreciation and amortization to step up next quarter to placing certain large investments into service .
Sean Denham: As part of this discipline, we implemented a targeted reduction in force in December, affecting approximately 3% of our global workforce. This action, which drove the severance charges I referenced earlier, reflects our commitment to ensuring that the cost of future-focused investments is supported by a more efficient and scalable operating model. These actions support what we communicated during our Investor Day, regarding our goal of long-term double-digit earnings growth and consistent margin expansion. Stepping back, the Q4 capped an outstanding year for SEI, one marked by broad-based financial strength, record sales performance, and meaningful strategic progress across the enterprise. As Ryan highlighted, we are excited about the opportunities ahead and believe SEI is exceptionally well-positioned entering 2026. We look forward to building on this progress and continue to deliver long-term value for our clients, employees, and shareholders.
As part of this discipline, we implemented a targeted reduction in force in December, affecting approximately 3% of our global workforce. This action, which drove the severance charges I referenced earlier, reflects our commitment to ensuring that the cost of future-focused investments is supported by a more efficient and scalable operating model. These actions support what we communicated during our Investor Day, regarding our goal of long-term double-digit earnings growth and consistent margin expansion.
Speaker #3: We recognize that these investments must be balanced through thoughtful reallocation of resources and ongoing cost efficiency efforts. As part of this discipline, we implemented a targeted reduction in force in December, affecting approximately 3% of our global workforce.
Speaker #3: This action, which drove the severance referenced charges I mentioned earlier, reflects our commitment to ensuring that the cost of future-focused investments is supported by a more scalable and efficient operating model.
Speaker #3: These actions support what we communicated during our Investor Day regarding our goal of long term double digit earnings growth and consistent margin expansion .
Stepping back, the Q4 capped an outstanding year for SEI, one marked by broad-based financial strength, record sales performance, and meaningful strategic progress across the enterprise. As Ryan highlighted, we are excited about the opportunities ahead and believe SEI is exceptionally well-positioned entering 2026. We look forward to building on this progress and continue to deliver long-term value for our clients, employees, and shareholders. With that, operator, please open the line for questions.
Speaker #3: Stepping back the fourth quarter capped an outstanding year for Cy , one marked by broad based financial strength , record sales performance , and meaningful strategic progress across the enterprise .
Speaker #3: As Ryan highlighted, we are excited about the year ahead and the opportunities. We believe Qci is exceptionally well positioned entering 2026. We look forward to building on this progress and continuing to deliver long-term value for our clients, employees, and shareholders.
Sean Denham: With that, operator, please open the line for questions.
Operator: Thank you. Ladies and gentlemen, as a reminder, to ask a question, please press star one one on your telephone, then wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Crispin Love with Piper Sandler. Your line is open.
Operator: Thank you. Ladies and gentlemen, as a reminder, to ask a question, please press star one one on your telephone, then wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Crispin Love with Piper Sandler. Your line is open.
Speaker #3: With that, operator, please open the line for questions.
Speaker #1: . Thank you Ladies gentlemen , and reminder to as a ask question , a please press star one one on your telephone . Then wait for your name to be announced .
Speaker #1: To withdraw your question, please press star one one again. Please stand by while we compile the roster. Our first question comes from the line of Crispin Glover with Piper Sandler.
[Analyst] (Piper Sandler): Thanks. Good afternoon, everyone. First, more than two-thirds of your sales events came from ALTS in the quarter. Can you just give a little more color there? Was that primarily from new wins or expanding relationships with current clients? And then you also made a comment, Ryan, I think early in your comments about momentum in sales and to expect positive announcements during April earnings or something like that. Is that relate to any specific activity and so far in 2026, or just good visibility?
Crispin Love: Thanks. Good afternoon, everyone. First, more than two-thirds of your sales events came from ALTS in the quarter. Can you just give a little more color there? Was that primarily from new wins or expanding relationships with current clients? And then you also made a comment, Ryan, I think early in your comments about momentum in sales and to expect positive announcements during April earnings or something like that. Is that relate to any specific activity and so far in 2026, or just good visibility?
Speaker #1: Your open line is .
Speaker #4: Thanks . Good afternoon everyone . First , more than two thirds of your came sales events from alts in the quarter . Can you just give a little more color ?
Speaker #4: There? Was that primarily from new wins, or expanding relationships with current clients? And then you also made a comment, Ryan, I think early in your comments, about momentum in sales and to expect positive announcements during April earnings or something like that.
Ryan Hicke: So I'll answer the first one or your second one first, Crispin. Happy New Year, man. Yes, we like what we see on the sales momentum front, which is consistent with previous quarters, but we thought we would call out because there's been conversations that we talked about last year about some opportunities we have with a couple larger organizations that predominantly have insourced. We make good progress there, so we expect to have some more tangible update on the April earnings call about that. That's specifically in the IMS business. I'll kick to Phil on your first question. I believe, Crispin, your question was specifically about two-thirds of the sales events in IMS?
Ryan Hicke: So I'll answer the first one or your second one first, Crispin. Happy New Year, man. Yes, we like what we see on the sales momentum front, which is consistent with previous quarters, but we thought we would call out because there's been conversations that we talked about last year about some opportunities we have with a couple larger organizations that predominantly have insourced. We make good progress there, so we expect to have some more tangible update on the April earnings call about that. That's specifically in the IMS business. I'll kick to Phil on your first question. I believe, Crispin, your question was specifically about two-thirds of the sales events in IMS?
Speaker #4: Is that related to any specific activity? And so far in 2026, or just good visibility?
Speaker #5: So, answer the first one or your second one first, Crispin. Happy New Year, man. We like to see on the sales, what we have on the momentum front, which is consistent with previous quarters, but the callout would be—we thought we, because there's been conversations that we talked about last year, about some opportunities we have with just a couple larger, predominantly organizations that have been sourced.
Speaker #5: We made good progress there, so we expect to have some more tangible updates on the April earnings call about that. That's specifically in the IMS business.
Speaker #5: I'll kick this off. Phil, on your first, I believe, Crispin, your question was specifically about two-thirds of the sales events in IMS.
[Analyst] (Piper Sandler): Yeah, just where is that coming from? Is it new wins or is it expanding relationships within your current sales clients?
Crispin Love: Yeah, just where is that coming from? Is it new wins or is it expanding relationships within your current sales clients?
Sean Denham: Sure. Hi, Crispin, this is Phil. I'll start by saying, for the quarter, the quarter, it was about $20 million. It's normally a little bit seasonably low in Q4. Nothing was necessarily that notable to call out. It was a combination of new business and cross sales around the globe. What I'd say is the pipeline's really strong. We're looking forward to a great 2026, and as far as the larger wins are concerned, we're gonna cover that a lot more with the Q1 results. And as Ryan said, we have a great track record with these large enterprise clients moving to outsourcing. And some of these deals are household names, and it's gonna take a lot of work to get them in through the pipeline, so, and executed and into the run rate.
Phil McCabe: Sure. Hi, Crispin, this is Phil. I'll start by saying, for the quarter, the quarter, it was about $20 million. It's normally a little bit seasonably low in Q4. Nothing was necessarily that notable to call out. It was a combination of new business and cross sales around the globe. What I'd say is the pipeline's really strong. We're looking forward to a great 2026, and as far as the larger wins are concerned, we're gonna cover that a lot more with the Q1 results.
Speaker #4: Yeah, just—just where is that coming from? Is it new wins, or is it expanding relationships within your current clients?
Speaker #5: Yeah , sure .
Speaker #6: Hi , Crispin , this is Phil . I'll start by saying for the quarter , the quarter , it was about $20 million .
Speaker #6: It's normally a little bit seasonably low in Q4; nothing was Q4 necessarily that notable to call out. It was a combination of new business and cross sales around the globe.
Speaker #6: I'd What say is the pipeline is really We're looking strong . a forward to 2026 . far as And as the larger concerned , wins are that a lot more with the Q1 results .
And as Ryan said, we have a great track record with these large enterprise clients moving to outsourcing. And some of these deals are household names, and it's gonna take a lot of work to get them in through the pipeline, so, and executed and into the run rate. So a lot of that depends on how much invested capital we get, and we're actively working on defining the magnitude and the scope.
Speaker #6: And as we have a great track Ryan said , with these large enterprise moving to outsourcing and some of these deals are household names , and it's going to take a lot of work to get them in through the pipeline .
Sean Denham: So a lot of that depends on how much invested capital we get, and we're actively working on defining the magnitude and the scope.
Speaker #6: So and executed and into the run rate . So a lot of that depends on how much invested capital we get . And we're actively working on defining the magnitude and the scope .
[Analyst] (Piper Sandler): Great. Thank you. Thank you, Phil, on that. And then just also on sales events in the quarter, fairly wide gap between the net recurring and non-recurring. Can you discuss some of the drivers there? Is that due to the professional services aspect that you mentioned, Sean, or anything else to call out?
Crispin Love: Great. Thank you. Thank you, Phil, on that. And then just also on sales events in the quarter, fairly wide gap between the net recurring and non-recurring. Can you discuss some of the drivers there? Is that due to the professional services aspect that you mentioned, Sean, or anything else to call out?
Speaker #4: Great . Thank you . Thank you Phil , on that . And then just also on sales events in the quarter fairly wide gap between the net recurring and non-recurring .
Speaker #4: Can you discuss the drivers there? Is that due at least in part to the professional services aspect that you mentioned, or Sean, is there anything else to call out?
Ryan Hicke: Absolutely, Crispin. I mean, it's definitely driven by the continued growth of the professional services strategy that Sanjay has deployed. And I think as we try to call out here, some of these, we believe, have kind of a more repeatable or longer tail element to them, but we continue to characterize them under the one-time professional services kind of banner, if you will. A lot of those are with existing clients and also some new names. But Sanjay, you want to expand a little bit on that?
Sean Denham: Absolutely, Crispin. I mean, it's definitely driven by the continued growth of the professional services strategy that Sanjay has deployed. And I think as we try to call out here, some of these, we believe, have kind of a more repeatable or longer tail element to them, but we continue to characterize them under the one-time professional services kind of banner, if you will. A lot of those are with existing clients and also some new names. But Sanjay, you want to expand a little bit on that?
Speaker #5: Absolutely . Crispin . I mean , it's definitely driven the by continued growth of the professional services Sanjay strategy that deployed has . And I think out as we try some of these we believe kind of a have more repeatable or longer tail element to them , but we continue to characterize them under the one time professional services kind of banner , will .
Sanjay Sharma: Yeah, sure. So if you look at the professional services, you could look at in two different buckets. And, services which we are providing before even the clients, they are engaging with us through SWP or our platforms. So we have started engaging with our prospects and clients way earlier in advisory capacity, and that is a reflection of our fourth quarter results as well. The second part is that, since we are engaging at that early stages, we are able to influence the overall strategy. We are able to define the North Star for the clients in terms of, okay, how their overall technology landscape is going to change, how their operating model is going to change, and then we are participating in that journey, how the transformation we can make happen.
Sanjay Sharma: Yeah, sure. So if you look at the professional services, you could look at in two different buckets. And, services which we are providing before even the clients, they are engaging with us through SWP or our platforms. So we have started engaging with our prospects and clients way earlier in advisory capacity, and that is a reflection of our fourth quarter results as well. The second part is that, since we are engaging at that early stages, we are able to influence the overall strategy.
Speaker #5: A lot of those are with existing clients and also some new names . But , Sanjay , you want to expand a little bit on that .
Speaker #7: Yeah , sure . So if you look at the professional services you could look at it in two different buckets . And now services , which we are providing before even the clients that are engaging with us through .
Speaker #7: Swpp or our platforms . have started engaging So we with our and clients very prospects earlier in advisory capacity . And that is a reflection of the our fourth quarter results as well .
We are able to define the North Star for the clients in terms of, okay, how their overall technology landscape is going to change, how their operating model is going to change, and then we are participating in that journey, how the transformation we can make happen. And that's a reflection of our, the overall professional services strategy, and that is reflected in our fourth quarter results.
Speaker #7: The second part is that since we are engaging at that early stages , we are able to influence the overall strategy . We are able to define the Star clients in terms North of how their overall technology landscape is going to change , how their operating is going to and then we are participating in that journey , that the how transformation we can make happen .
Sanjay Sharma: And that's a reflection of our, the overall professional services strategy, and that is reflected in our fourth quarter results.
Speaker #7: And that's the reflection of our overall professional services strategy. And that is reflected in our fourth quarter results.
Sean Denham: ... And I think what's really important, Kristen, is from a value proposition perspective, we're really seeing a distinct transition in the market. When you look at Phil's market, where we historically maybe have been characterized as ops for the fund, we have really evolved more into a platform for the firm from our client's perspective. And Sanjay's business maybe traditionally was investment processing and technology for the fiduciary business. They're now being seen more as a technology and platform partner in the C-suite of these organizations. We're really excited about the expansion, not just of our sales capabilities, but the expansion of SEI's footprint in the mind of the buyer and the clients in these organizations with these changes.
Sean Denham: ... And I think what's really important, Kristen, is from a value proposition perspective, we're really seeing a distinct transition in the market. When you look at Phil's market, where we historically maybe have been characterized as ops for the fund, we have really evolved more into a platform for the firm from our client's perspective. And Sanjay's business maybe traditionally was investment processing and technology for the fiduciary business. They're now being seen more as a technology and platform partner in the C-suite of these organizations. We're really excited about the expansion, not just of our sales capabilities, but the expansion of SEI's footprint in the mind of the buyer and the clients in these organizations with these changes.
Speaker #5: And I think what's really important, Christine, is from a value proposition perspective, we're really seeing a distinct transition in the market.
Speaker #5: When you look at Phil's market , where we historically maybe have been characterized as ops for the fund , we have evolved really more into a platform for the firm from our clients perspective .
Speaker #5: And Sanjay's business maybe traditionally was investment processing and technology for the fiduciary business. They're now being seen more as a technology and platform partner in the C-suite of these organizations.
Speaker #5: We're really excited about the expansion , not just of sales our capabilities , but the expansion of size footprint in the mind of the buyer and the organizations .
[Analyst] (William Blair): Great. Thank you. Appreciate that, and I appreciate you taking my question.
Crispin Love: Great. Thank you. Appreciate that, and I appreciate you taking my question.
Speaker #5: clients in these these With changes .
Sean Denham: Thanks.
Sean Denham: Thanks.
Operator: Thank you. Please stand by for our next question. Our next question comes from the line of Alex Bond with KBW. Your line is open.
Operator: Thank you. Please stand by for our next question. Our next question comes from the line of Alex Bond with KBW. Your line is open.
Speaker #4: Thank Great . you . I appreciate that you taking . Appreciate questions .
Speaker #1: Thank .
Speaker #8: You .
Speaker #1: Please stand by for our next question . Our next question comes from the line of Alex Bond with KBW . line is open Your .
Natalie Nall: Hi, this is Natalie Nall on for Alex Bond, and thank you for taking my question. On the private bank segment, the margin there stepped up sequentially on a stronger sales quarter. But thinking about the margin in the context of professional services offering, can the margin for the segment maybe stay in the high teens range on the back of stronger professional services? Or is the step up this quarter somewhat episodic, and we should anticipate a return closer to the mid-teens in near term with upside potential if professional services sales are strong?
Natalie Nall: Hi, this is Natalie Nall on for Alex Bond, and thank you for taking my question. On the private bank segment, the margin there stepped up sequentially on a stronger sales quarter. But thinking about the margin in the context of professional services offering, can the margin for the segment maybe stay in the high teens range on the back of stronger professional services? Or is the step up this quarter somewhat episodic, and we should anticipate a return closer to the mid-teens in near term with upside potential if professional services sales are strong?
Speaker #9: Hi, this is Natalie Narla on for Alex Bond. And thank you for taking my question on the private bank segment. The margin there stepped up sequentially on a stronger sales quarter.
Speaker #9: But thinking about the margin in the context of professional services offering , can the margin for the segment maybe stay in the high teens range on the back of stronger professional services ?
Speaker #9: The step-up this quarter is somewhat episodic, and we should anticipate a return closer to the mid-teens in the near term, with upside potential.
Sean Denham: Yeah. So, thanks for your question. I think if you look over the last, probably 8 quarters or so, you've seen steady increase in the margins in PB. We would expect margins to be in that area. They've been choppy over the last couple of quarters. Sometimes they're a little lower, sometimes there's a- they go a little higher, depending on the mix, how much professional services in there. Professional services margins typically are higher than our platform, the SWP services and our, and our operating revenue as well. So, you know, we don't really give too much guidance, around future margins, but I think you can expect it to be, you know, within spitting distance of that range.
Sean Denham: Yeah. So, thanks for your question. I think if you look over the last, probably 8 quarters or so, you've seen steady increase in the margins in PB. We would expect margins to be in that area. They've been choppy over the last couple of quarters. Sometimes they're a little lower, sometimes there's a- they go a little higher, depending on the mix, how much professional services in there. Professional services margins typically are higher than our platform, the SWP services and our, and our operating revenue as well. So, you know, we don't really give too much guidance, around future margins, but I think you can expect it to be, you know, within spitting distance of that range.
Speaker #9: If professional services sales are strong .
Speaker #3: Yeah, so thanks for your question. I think if you look over the last, probably eight quarters or so, you've seen a steady increase in the margins in PB. We would expect margins to be in that area.
Speaker #3: They've been choppy over the last couple quarters . Sometimes they're a little lower . Sometimes there's a go a they little higher depending on the mix .
Speaker #3: much How professional services in their professional services margins typically are higher than our platform . The services and our in our operating revenue as well .
Speaker #3: So , you don't really know , we get too much guidance around future But I margins . think you can expect it to be , you know , within spitting distance of that range .
Natalie Nall: Okay, perfect. And maybe if you could also provide any color on the larger two mandate wins called out for the private bank segment.
Natalie Nall: Okay, perfect. And maybe if you could also provide any color on the larger two mandate wins called out for the private bank segment.
Speaker #9: Okay . Perfect . And maybe if you could also provide any color on the larger two mandate wins , called out for the private bank segment .
Sanjay Sharma: Yeah, sure. I can talk about that. This is Sanjay here. So as I mentioned that now we are engaging with our prospects and as early as before even they are issuing RFPs sometimes. And in that process, we are helping them to define their overall transformation agenda, and then we are helping them to how to achieve that. So with these two prospects, we started working almost 18+ months ago, and in that process, we engaged with them in advising capacity, created the overall blueprint for transformation. So this win is a good combination of our core platform, SEI enterprise capabilities, and professional services.
Sanjay Sharma: Yeah, sure. I can talk about that. This is Sanjay here. So as I mentioned that now we are engaging with our prospects and as early as before even they are issuing RFPs sometimes. And in that process, we are helping them to define their overall transformation agenda, and then we are helping them to how to achieve that. So with these two prospects, we started working almost 18+ months ago, and in that process, we engaged with them in advising capacity, created the overall blueprint for transformation. So this win is a good combination of our core platform, SEI enterprise capabilities, and professional services.
Speaker #7: sure . I can talk about Yeah , that . The Sanjay here . So as I mentioned that now we are engaging with our prospects as early as they are before , even issuing RFP sometimes .
Speaker #7: And in that process helping we are them to define their oral transformation agenda . And then we are helping them how to achieve that .
Speaker #7: So with these two prospects, we started working almost 18-plus months ago. And in that process, we engaged with them in an advisory capacity and created the overall blueprint for transformation.
Sean Denham: I think what's great as well, Alex, to add some color, you know, one is a pretty meaningfully sized regional and community bank in the US, and the other I would consider to be a large kind of private wealth manager. Both were outsourcers on competitive platforms and really just see the overall value, not just in SWP, but as Sean and Sanjay mentioned, around kind of the broader suite of capabilities for the long term for their strategic growth.
Ryan Hicke: I think what's great as well, Alex, to add some color, you know, one is a pretty meaningfully sized regional and community bank in the US, and the other I would consider to be a large kind of private wealth manager. Both were outsourcers on competitive platforms and really just see the overall value, not just in SWP, but as Sean and Sanjay mentioned, around kind of the broader suite of capabilities for the long term for their strategic growth.
Speaker #7: So, this event is a good combination of our core platform, SE Enterprise capabilities, and Professional Services.
Speaker #5: think what's And I great as well , Alex had some color . You know , one is a pretty meaningfully sized regional and community bank in the US .
Speaker #5: And the other I would consider to be a large kind of private wealth manager . Both were outsourcers on competitive platforms and really just see the overall value , not in just swoop , but as Sean and Sanjay mentioned around , kind of the broader suite of capabilities for the long strategic their term for growth .
Speaker #5: And the other I would consider to be a large kind of private wealth manager . Both were outsourcers on competitive platforms and really just see the overall value , not in just swoop , but as Sean and Sanjay mentioned around , kind of the broader suite of capabilities for the long strategic their term for growth .
Sanjay Sharma: If I could add another point. One of these, out of these two, one of the large client we assign is our second software as a service client.
Sanjay Sharma: If I could add another point. One of these, out of these two, one of the large client we assign is our second software as a service client.
Speaker #7: if I could add another point , And one of the one of the large clients out of these two , we we assign is our second software as a service client .
Sean Denham: That's a great point.
Sean Denham: That's a great point.
Sanjay Sharma: That reflects our focus and attention to that strategy as well.
Sanjay Sharma: That reflects our focus and attention to that strategy as well.
Natalie Nall: Great. Thanks for the additional color.
Natalie Nall: Great. Thanks for the additional color.
Speaker #5: That's
Speaker #5: a great .
Speaker #7: And that reflects our Point . focus and attention strategy as well to that .
Operator: Thank you. Please stand by for our next question. Our next question comes from the line of Jeff Schmitt with William Blair. Your line is open.
Operator: Thank you. Please stand by for our next question. Our next question comes from the line of Jeff Schmitt with William Blair. Your line is open.
Speaker #9: Thanks for Great . the additional color .
Speaker #1: For our next question, please stand by. Thank you. Our next question comes from the line of Jeff Schmidt with William Blair.
Jeff Schmitt: Hi, good afternoon. How much were the underlying expenses down from the workforce reductions? It sounds like those changes were made sort of late in the quarter, so just wondering how we should think about kind of the run rate impact by segment, going forward.
Jeff Schmitt: Hi, good afternoon. How much were the underlying expenses down from the workforce reductions? It sounds like those changes were made sort of late in the quarter, so just wondering how we should think about kind of the run rate impact by segment, going forward.
Speaker #1: Your line is open .
Speaker #10: Good afternoon Hi . much were the underlying . How expenses down from the workforce reductions . It sounds like those changes were late in the made sort of So quarter .
Sean Denham: Yeah, I will... This is Sean. I would say that, you know, you could think about the decrease in compensation related to the risk at a relatively equal amount of compensation increases in raises for the year. So typically, we'll have, you know, you can go back and look kind of at the history, but a consistent level of raises starting in January. You can kind of think about the reduction in the compensation to, for the most part, match those raises.
Sean Denham: Yeah, I will... This is Sean. I would say that, you know, you could think about the decrease in compensation related to the risk at a relatively equal amount of compensation increases in raises for the year. So typically, we'll have, you know, you can go back and look kind of at the history, but a consistent level of raises starting in January. You can kind of think about the reduction in the compensation to, for the most part, match those raises.
Speaker #10: Just wondering how we should think about the run rate impact by segment going forward.
Speaker #3: is
Speaker #3: Sean this I . Yeah , . I say that would the you could think you know , about the decrease in compensation related to the riff at a relatively equal amount of compensation increases in the races for year .
Speaker #3: we'll typically So have , you know , you can go back and look kind of at the history . But a consistent level of raises starting in January , you can kind of think about the reduction in the compensation to , for the most part , match those raises .
Jeff Schmitt: Okay. Okay, so kind of flattish. Okay. And then in the IMS business, it looks like the margin was around 40% if you adjust for that, revenue accrual true up. And I think you've been guiding that even, you know, 39% or even less, you've been investing in that business. So was curious, is that just from kind of a strong, operating leverage in the quarter? And is 40% sort of the right run rate to think about, going forward there?
Jeff Schmitt: Okay. Okay, so kind of flattish. Okay. And then in the IMS business, it looks like the margin was around 40% if you adjust for that, revenue accrual true up. And I think you've been guiding that even, you know, 39% or even less, you've been investing in that business. So was curious, is that just from kind of a strong, operating leverage in the quarter? And is 40% sort of the right run rate to think about, going forward there?
Speaker #10: Okay , kind of okay . So flattish okay . And then in the IMS business , it looks like the margin was around 40% .
Speaker #10: If you adjust for that revenue accrual through up . And I think you'd been even , you guiding that know , 39% or even less .
Speaker #10: You've been investing in that business. So I was curious, is that just from kind of a strong operating leverage in the quarter, and is 40% the right run rate to think about going forward?
[Analyst] (William Blair): Okay, I'll take it, Jeff. We did have that revenue accrual true up, which was a little bit over $3 million. We also had a couple other one-times for conversion fees, professional services, and some other one-times, probably about $2 million. So that total was about $5 million or so. Without that $5 million, we'd be right in the 5% quarter-over-quarter growth rate. In addition, it was relatively strong just from converting new business. Sean, is there anything you would add to that?
Ryan Hicke: Okay, I'll take it, Jeff. We did have that revenue accrual true up, which was a little bit over $3 million. We also had a couple other one-times for conversion fees, professional services, and some other one-times, probably about $2 million. So that total was about $5 million or so. Without that $5 million, we'd be right in the 5% quarter-over-quarter growth rate. In addition, it was relatively strong just from converting new business. Sean, is there anything you would add to that?
Speaker #10: There ?
Speaker #6: Okay . I'll take Jeff . We did have that revenue accrual true up , which was a little bit had a 3 million .
Speaker #6: We also over other other one times for conversion fees and professional services . And some other one times probably about 2 million . So that total was about so .
Speaker #6: Without that 5 million , we'd be right in the 5% quarter over quarter growth rate in addition , it was relatively strong just from converting new business .
Sean Denham: Yeah, I would add, you know. We've alluded to some Q1 opportunities for us that we'll talk about further in April. We are continuing to hire up in anticipation of those. So, you know, if you're thinking about run rate on margins, specifically in IMS, we, as we said in prior quarters, are continuing to make investments inside IMS and our other business units, and continuing to hire in anticipation, specifically in private banking and IMS. So, you know, so whether margins continue at that rate, you know, I would expect certain expenses to start hitting a little more in Q1.
Sean Denham: Yeah, I would add, you know. We've alluded to some Q1 opportunities for us that we'll talk about further in April. We are continuing to hire up in anticipation of those. So, you know, if you're thinking about run rate on margins, specifically in IMS, we, as we said in prior quarters, are continuing to make investments inside IMS and our other business units, and continuing to hire in anticipation, specifically in private banking and IMS. So, you know, so whether margins continue at that rate, you know, I would expect certain expenses to start hitting a little more in Q1.
Speaker #6: Sean, is there—would...
Speaker #3: would I add , you know , we've alluded to some Q1 opportunities for us that what we'll talk about further in April , we are continuing to hire up in those anticipation of .
Speaker #3: So , you know , if you're thinking about run rate on margin specifically in IMS , we as we said in prior quarters , we are continuing to make investments inside other business units and continuing to hire in anticipation , specifically in private banking and IMS .
Speaker #3: So , you know , so whether margins continue at that rate , you know , I would expect certain expenses to start hitting a little more in Q1
Speaker #3: So , you know , so whether margins continue at that rate , you know , I would expect certain expenses to start hitting a little more in Q1 .
Sanjay Sharma: Okay, great. Thank you.
Jeff Schmitt: Okay, great. Thank you.
Operator: Thank you. Please stand by for our next question. Our next question comes from the line of Cornell Smith with Morgan Stanley. Your line is open.
Operator: Thank you. Please stand by for our next question. Our next question comes from the line of Cornell Smith with Morgan Stanley. Your line is open.
Speaker #10: Great. Thank you. Okay.
Speaker #1: Thank you . Please for our next question . Our next question comes from the line of Connell Schmitz with Morgan Stanley . Your open line is .
[Analyst] (Morgan Stanley): Hi, thanks for taking my question. So on Stratos, how should we think about the run rate impact of the acquisition to the investment advisor segment once it gets fully consolidated? At the moment, we can only see the NCI related to it for a little bit less than a third of a quarter. And then on that topic, when would you expect to have an updated timeline related to, like, the planned resegmentation that we heard about at Investor Day?
Cornell Smith [Private Wealth Advisor, Alternative Investments Director, Executive Financial Services Director, and Workplace Ad: Hi, thanks for taking my question. So on Stratos, how should we think about the run rate impact of the acquisition to the investment advisor segment once it gets fully consolidated? At the moment, we can only see the NCI related to it for a little bit less than a third of a quarter. And then on that topic, when would you expect to have an updated timeline related to, like, the planned resegmentation that we heard about at Investor Day?
Speaker #11: Hi, thanks for taking my question. So, on Stratos, how should we think about the run rate impact of the acquisition to the Investment Advisor segment once it gets fully consolidated?
Speaker #11: At the moment, we can only see the NCI related to it for a little bit less than a third of a quarter. And then on that topic, when would you expect to have an updated timeline related to the planned re-segmentation that we heard about at Investor Day?
Sean Denham: Yeah. So thanks for the question. So we're not gonna give guidance on the run rate into 2026 around Stratos. I can give a little color on Q4. So we had about $5 million in revenue related, which would sit in the advisor segment. We had just about under $1 million of operating income, which included nearly $2 million of amortization expense on the acquired intangibles. That's a 100% share since we consolidate, and there's about $300,000 of NCI for the 42.5% that we don't own. And again, we'll have more information in Q1 as we have a full quarter under our belt.
Sean Denham: Yeah. So thanks for the question. So we're not gonna give guidance on the run rate into 2026 around Stratos. I can give a little color on Q4. So we had about $5 million in revenue related, which would sit in the advisor segment. We had just about under $1 million of operating income, which included nearly $2 million of amortization expense on the acquired intangibles. That's a 100% share since we consolidate, and there's about $300,000 of NCI for the 42.5% that we don't own. And again, we'll have more information in Q1 as we have a full quarter under our belt.
Speaker #3: Yeah . So thanks for the question . So not going to we're give guidance on the run rate into 26 around Stratos . I can give a little color Q4 on .
Speaker #3: So we had about revenue $5 million in related , which would sit in the advisory segment . We had just $1 million of under operating income , which included nearly $2 million of amortization expense on the acquired intangibles .
Speaker #3: That's a 100% share since we consolidate . And there's about 300,000 of NCI for the 42.5% that we don't own . And again , we'll have more information in Q1 as we have a full our quarter under belt .
[Analyst] (Morgan Stanley): Got it. And then just sticking with Stratos on the go-forward strategy, like, during the integration phase, is it still continuing to pursue acquisitions, or are those paused during the integration?
Cornell Smith [Private Wealth Advisor, Alternative Investments Director, Executive Financial Services Director, and Workplace Ad: Got it. And then just sticking with Stratos on the go-forward strategy, like, during the integration phase, is it still continuing to pursue acquisitions, or are those paused during the integration?
Speaker #11: Got it . And sticking with Stratos on the strategy during the go forward integration phase , is it still continuing to acquisitions , or are those paused pursue during the integration ?
Sean Denham: No. In fact, in early January, we had... So part of the strategy was, as you know, acquiring additional entities, providing capital to Stratos to roll them up. So nothing has changed from that plan that we spoke about previously. In early January, Stratos completed the acquiring additional interest in some of the entities that they had minority interest in, and there will also in January there will be some additional acquisitions that were planned as part of the kind of diligence process and expectation as we acquired that.
Sean Denham: No. In fact, in early January, we had... So part of the strategy was, as you know, acquiring additional entities, providing capital to Stratos to roll them up. So nothing has changed from that plan that we spoke about previously. In early January, Stratos completed the acquiring additional interest in some of the entities that they had minority interest in, and there will also in January there will be some additional acquisitions that were planned as part of the kind of diligence process and expectation as we acquired that.
Speaker #3: No . In in fact , January , we had so part of the strategy was , as you know , acquiring additional entities , providing capital to Stratos , to roll , roll them up .
Speaker #3: So nothing has changed from that plan that we spoke about previously in early January. Stratos completed the acquiring of additional interest in some of the— that they had.
Speaker #3: Minority interest in entities, and their role—also in January, there will be some additional acquisitions that were planned as part of the kind of diligence process and expectation as we acquired them.
[Analyst] (Morgan Stanley): Got it. Thanks for taking my question.
Cornell Smith [Private Wealth Advisor, Alternative Investments Director, Executive Financial Services Director, and Workplace Ad: Got it. Thanks for taking my question.
Operator: Thank you. As a reminder, ladies and gentlemen, at star one one to ask a question. Please stand by for our next question. Our next question comes from the line of Patrick O'Shaughnessy with Raymond James. Your line is open.
Operator: Thank you. As a reminder, ladies and gentlemen, at star one one to ask a question. Please stand by for our next question. Our next question comes from the line of Patrick O'Shaughnessy with Raymond James. Your line is open.
Speaker #11: Got it. Thanks for taking my question.
Speaker #1: Thank you . As a reminder , ladies and gentlemen , let's start one question one to ask the . Please stand by for our next question .
[Analyst] (Raymond James): Hi, good afternoon. Coming back to the topic of those two big, non-recurring sales events and private banks in the quarter. From a modeling perspective, how do we think about the revenue recognition impact of those sales events over the coming quarters?
Patrick O'Shaughnessy: Hi, good afternoon. Coming back to the topic of those two big, non-recurring sales events and private banks in the quarter. From a modeling perspective, how do we think about the revenue recognition impact of those sales events over the coming quarters?
Speaker #1: next question comes from of the line Patrick with O'Shaughnessy Raymond James . Your line is open .
Speaker #12: Hi . Good afternoon . Coming back to the topic of those two big non-recurring and private banks sales events in the quarter modeling , from a perspective , how do we think about the revenue recognition impact of those sales events over the coming quarters ?
Sean Denham: Just real quick, Patrick, the two wins we were talking about are recurring. So the two firms that Sanjay and I were referencing with some color, they're traditional, you know, recurring revenue SWP wins. The rest were professional services, some of those extensions from those existing firms, and some of those existing clients and non-SWP clients. So just want to make sure you were clear on that.
Sean Denham: Just real quick, Patrick, the two wins we were talking about are recurring. So the two firms that Sanjay and I were referencing with some color, they're traditional, you know, recurring revenue SWP wins. The rest were professional services, some of those extensions from those existing firms, and some of those existing clients and non-SWP clients. So just want to make sure you were clear on that.
Speaker #5: Just real quick , Patrick . The two wins we were talking about are recurring . So the two firms that Sanjay and I were referencing with some color , there , traditional , you know , recurring revenue , swoopy wins .
Speaker #5: The rest were professional those services . Some of extensions from those firms and some of existing those existing clients and non swap clients .
[Analyst] (Raymond James): Gotcha. Appreciate the clarification.
Patrick O'Shaughnessy: Gotcha. Appreciate the clarification.
Speaker #5: wanted to make sure So just you were clear on that .
Sean Denham: Your question is how it evens off the professional services backlog?
Sean Denham: Your question is how it evens off the professional services backlog?
Speaker #12: Appreciate the gotcha clarification. Okay.
[Analyst] (Raymond James): Yeah. So, you know, $23 million sales event quarter, do we think about that hitting in the next two quarters, at next eight? Like, is there a general, like, timeframe you guys have in mind that that is gonna be realized?
Patrick O'Shaughnessy: Yeah. So, you know, $23 million sales event quarter, do we think about that hitting in the next two quarters, at next eight? Like, is there a general, like, timeframe you guys have in mind that that is gonna be realized?
Speaker #5: Your question is about the professional services backlog.
Speaker #12: Yeah. So, you know, $23 million sales event quarter. Do we think about that hitting in the two quarters next? Like, is there a general at next eight?
Sanjay Sharma: See, that's what I like about professional services. That's something we can start realizing immediately. Some of these complex projects run over 12 months, 18 months, and that's how these associated professional services are spread as well. Many of them will continue after going live as well.
Sanjay Sharma: See, that's what I like about professional services. That's something we can start realizing immediately. Some of these complex projects run over 12 months, 18 months, and that's how these associated professional services are spread as well. Many of them will continue after going live as well.
Speaker #12: Time frame you guys have in mind that that is going to be realized?
Speaker #7: See that's the I like about professional services . something That's we can start realizing immediately . And some of these complex projects , they run over 12 months , 18 months that's how .
Speaker #7: These associated and professional services spread as well. And many of them, they will continue after going live, as well.
[Analyst] (Raymond James): Helpful. Thank you. And then in institutional investors, you mentioned that the negative sales event in the quarter was tied to some UK client losses. Just curious, like, how strategically important is the UK market to that business?
Patrick O'Shaughnessy: Helpful. Thank you. And then in institutional investors, you mentioned that the negative sales event in the quarter was tied to some UK client losses. Just curious, like, how strategically important is the UK market to that business?
Speaker #12: Helpful. Thank you. And then in institutional investors, you mentioned that the negative sales event in the quarter was tied to some UK client losses.
Speaker #12: Just curious like how strategically important is the UK market to business ?
Sean Denham: Mike, Michael, do you want to take that one, Michael?
Sean Denham: Mike, Michael, do you want to take that one, Michael?
Michael Lane: Yeah. The institutional business in the UK is a fraction of the overall OCIO and institutional business. It's important to us, and we're continuing to grow that with the addition of Sanjay taking on the role he has on the international side of the business. So we continue to grow that business, and it's an important part of our business. Some of the movement in that is also where we've added additional assets into SEI products within some of those, but the way that we credit those, it doesn't actually show up in revenue. So there's some transaction activity that took place in that, in that segment of the business in the institutional space within the UK as well.
Michael Lane: Yeah. The institutional business in the UK is a fraction of the overall OCIO and institutional business. It's important to us, and we're continuing to grow that with the addition of Sanjay taking on the role he has on the international side of the business. So we continue to grow that business, and it's an important part of our business. Some of the movement in that is also where we've added additional assets into SEI products within some of those, but the way that we credit those, it doesn't actually show up in revenue. So there's some transaction activity that took place in that, in that segment of the business in the institutional space within the UK as well.
Speaker #5: Mike .
Speaker #3: want to take that one ? Do you Michael . Yeah , the the institutional business in the . UK is a fraction of the overall ocio and institutional business .
Speaker #3: It's important to us, and we're continuing to grow that with the addition of Sanjay taking on the role he has on the international side of the business.
Speaker #3: So we continue to grow that business, and it's an important part of our business. Some of the movement in that is also where we added additional assets into CI products within some of those.
Speaker #3: But the way that we credit those , it doesn't actually show up in revenue . So there's some transaction activity that took place in that , in that set in that end of the business , in the institutional space within the UK as well .
Michael Lane: But strategically, we do believe that the institutional business is a growth business for us. And we have made quite a few changes, including with Sean's notes on the RIF. In December, we made quite a few changes in terms of the leadership of the institutional business, and we now have put that in the hands of Kevin Matthews, who has, has a long successful track record in that space. And so he, along with the rest of the team, we are working on an, an improved operating model and strategy that we will-- that we are starting to execute today.
But strategically, we do believe that the institutional business is a growth business for us. And we have made quite a few changes, including with Sean's notes on the RIF. In December, we made quite a few changes in terms of the leadership of the institutional business, and we now have put that in the hands of Kevin Matthews, who has, has a long successful track record in that space. And so he, along with the rest of the team, we are working on an, an improved operating model and strategy that we will-- that we are starting to execute today.
Speaker #3: But strategically, we do believe that the institutional business is a gross business for us, and we have made quite a few changes, including Sean's with notes on the riff.
Speaker #3: In December, we made quite a few changes in terms of the leadership of the institutional business, and we now have put that in the hands of Kevin Matthews, who has a long, successful track record in that space.
Speaker #3: he And so , along with the rest of the team , we are working on an improved operating model and strategy that we will that we are starting to execute today .
[Analyst] (William Blair): Very helpful. Thank you.
Patrick O'Shaughnessy: Very helpful. Thank you.
Operator: Thank you. Ladies and gentlemen, I'm showing no further questions in the queue. I would now like to turn the call back over to CEO, Ryan Hicke, for closing remarks.
Operator: Thank you. Ladies and gentlemen, I'm showing no further questions in the queue. I would now like to turn the call back over to CEO, Ryan Hicke, for closing remarks.
Speaker #12: Very helpful. Thank you.
Speaker #1: Thank you . Ladies and gentlemen , I'm showing no further questions in the Q . I would now like to turn the call back over to Ryan CEO Hickey for closing remarks .
Michael Lane: Thank you. And thank you, everybody, for the great questions and your continued engagement with SEI. We're really excited about the path ahead. Look forward to speaking with you again next quarter. And quickly, little sidebar, Paul Klauder is in the room. As many people will know, Paul is a longtime executive of SEI, who will be retiring in February after 30 glorious years with the company. Paul, Phil McCabe, and I actually all joined the executive committee about 10 years ago today at the same time. Paul has been a great friend, a great leader, but an ambassador to our clients and our employees for the brand of what SEI stands for. So you'll hear some clapping in the room here while we close the call and congratulate Paul.
Ryan Hicke: Thank you. And thank you, everybody, for the great questions and your continued engagement with SEI. We're really excited about the path ahead. Look forward to speaking with you again next quarter. And quickly, little sidebar, Paul Klauder is in the room. As many people will know, Paul is a longtime executive of SEI, who will be retiring in February after 30 glorious years with the company. Paul, Phil McCabe, and I actually all joined the executive committee about 10 years ago today at the same time. Paul has been a great friend, a great leader, but an ambassador to our clients and our employees for the brand of what SEI stands for. So you'll hear some clapping in the room here while we close the call and congratulate Paul.
Speaker #5: Thank you . And thank you , everybody , for the great questions and your continued engagement with MCI . We're really excited about the path ahead .
Speaker #5: Look forward to speaking with you again next And quarter . quickly , a little sidebar , Paul Carter is in the room as many people will know , Paul is a long time executive .
Speaker #5: CI who will be retiring in February after 30 glorious years at the company . Paul Phil McCabe and I actually all joined the executive committee about ten years ago the same has , Paul great friend , leader , great but an ambassador to our a clients and our employees for the brand of what FCI stands for .
Operator: Thank you. Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect.
Operator: Thank you. Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect.
Speaker #5: So you'll hear some clapping in the room here while we close the call and congratulate Paul.
