SEI Reports Second-Quarter 2026 Financial Results

OAKS, Pa., July 22, 2026 /PRNewswire/ -- SEI Investments Company (NASDAQ: SEIC) today announced financial results for the second quarter 2026. Relative to the second quarter 2025, EPS declined by 11%, and revenue and operating income grew by 15% and 33%, respectively, with operating margin increasing to 31%. On an adjusted basis, EPS and operating income grew 38% and 36%, respectively, with the adjusted operating margin increasing to 32%.

Consolidated Overview

(In thousands, except earnings per share)

For the Three Months

Ended June 30,

For the Six Months

Ended June 30,

2026

2025

2026

2025

U.S. GAAP Basis

Revenues

$641,617

$559,601

15 %

$1,263,800

$1,110,945

14 %

Income from operations

197,016

148,635

33 %

386,502

305,732

26 %

Operating margin

31 %

27 %

15 %

31 %

28 %

11 %

Net income attributable

to SEI Investments

195,658

227,083

(14) %

370,145

378,600

(2) %

Diluted earnings per share

$1.59

$1.78

(11) %

$2.99

$2.95

1 %

Non-GAAP Basis(1)

Adjusted income from

operations

$206,951

$152,612

36 %

$405,634

$313,158

30 %

Adjusted diluted earnings

per share

$1.66

$1.20

38 %

$3.10

$2.40

29 %

Adjusted operating margin

32 %

27 %

19 %

32 %

28 %

14 %

(1) See Non-GAAP Information and Reconciliations on pg 11

"SEI's record-setting second-quarter results are evidence that the strategic and operational changes we've made over the last four years are translating into meaningful financial performance," said CEO Ryan Hicke.

"We've been deliberate in how we allocate capital, evolve our value proposition, and focus our resources on the areas where we believe we can create sustainable competitive advantage. Those efforts are driving stronger sales quality, expanding margins, and creating greater leverage across the enterprise, while allowing us to continue investing in the capabilities, talent, and innovation that will shape SEI's future."

Summary of Second-Quarter Results by Business Segment

(In thousands)

For the Three Months

Ended June 30,

For the Six Months

Ended June 30,

2026

2025

2026

2025

Investment Managers:

Revenues

$227,679

$195,067

17 %

$448,396

$387,115

16 %

Expenses

136,078

121,636

12 %

269,917

238,847

13 %

Operating Profit

91,601

73,431

25 %

178,479

148,268

20 %

Operating Margin

40 %

38 %

40 %

38 %

Private Banks:

Revenues

156,879

141,449

11 %

309,141

279,163

11 %

Expenses

125,220

118,724

5 %

245,251

233,473

5 %

Operating Profit

31,659

22,725

39 %

63,890

45,690

40 %

Operating Margin

20 %

16 %

21 %

16 %

Investment Advisors:

Revenues

177,897

137,193

30 %

347,592

273,769

27 %

Expenses

101,866

75,801

34 %

198,223

148,256

34 %

Non-controlling interests and

other, net (A)

1,361

—

NM*

2,698

—

Operating Profit

74,670

61,392

22 %

146,671

125,513

17 %

Operating Margin

42 %

45 %

42 %

46 %

Institutional Investors:

Revenues

69,702

69,343

1 %

141,218

137,849

2 %

Expenses

36,826

35,857

3 %

73,963

71,727

3 %

Operating Profit

32,876

33,486

(2) %

67,255

66,122

2 %

Operating Margin

47 %

48 %

Investments in New Businesses:

Revenues

9,460

16,549

(43) %

17,453

33,049

(47) %

Expenses

10,039

18,430

(46) %

19,232

36,926

(48) %

Operating Loss

(579)

(1,881)

(69) %

(1,779)

(3,877)

(54) %

Totals:

Revenues

$641,617

$559,601

15 %

$1,263,800

$1,110,945

14 %

Expenses

410,029

370,448

11 %

806,586

729,229

11 %

Corporate Overhead Expenses

34,572

40,518

(15) %

70,712

75,984

(7) %

Income from operations (B)

$197,016

$148,635

33 %

$386,502

$305,732

26 %

Adjusted income from operations

$206,951

$152,612

36 %

$405,634

$313,158

30 %

(A) Primarily includes non-controlling interest and earnings from equity method investments.

(B) Excludes non-controlling interests and other, net

* Variances noted "NM" indicate the percent change is not meaningful.

Second-Quarter Business Highlights:

Earnings Conference Call

A conference call and presentation to review earnings is scheduled for 5 p.m. Eastern time on Wednesday, July 22, 2026. A live webcast of the call will be available on SEI's Investor Relations website at ir.seic.com/events-presentations/events, where a replay will also be posted following the call.

Participants may also access the call by telephone by dialing 877-407-8293 (in the U.S.) or +1 201-689-8349 (International). Please dial in at least 10 minutes prior to the start of the call.

About SEI®

SEI (NASDAQ: SEIC) is a leading global provider of financial technology, operations, and asset management services within the financial services industry. SEI tailors its solutions and services to help clients more effectively deploy their capital—whether that's money, time, or talent—so they can better serve their clients and achieve their growth objectives. As of June 30, 2026, SEI manages, advises, or administers approximately $2.1 trillion in assets. For more information, visit seic.com.

This release contains forward-looking statements within the meaning or the rules and regulations of the Securities and Exchange Commission. In some cases you can identify forward-looking statements by terminology, such as "may," '"will," "can," "expect," "believe," "remain," and "continue" or "appear." Our forward-looking statements include our current expectations as to:

You should not place undue reliance on our forward-looking statements, as they are based on the current beliefs and expectations of our management and subject to significant risks and uncertainties, many of which are beyond our control or are subject to change. Although we believe the assumptions upon which we base our forward-looking statements are reasonable, they could be inaccurate. We undertake no obligation to update our forward-looking statements. Some of the risks and important factors that could cause actual results to differ from those described in our forward-looking statements can be found in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission.

Investor contact:

Media contact:

Brad Burke

Alicia Rudd

SEI

+1 610-676-5350

+1 610-676-3887

[email protected]

SEI INVESTMENTS COMPANY

(In thousands, except per share data) (Unaudited)

For the Three Months

Ended June 30,

For the Six Months

Ended June 30,

2026

2025

2026

2025

Asset management, admin. and distribution fees

$513,482

$437,543

$1,011,466

$869,686

Information processing and software servicing fees

128,135

122,058

252,334

241,259

Total revenues

641,617

559,601

1,263,800

1,110,945

Subadvisory, distribution and other asset mgmt. costs

59,980

49,709

116,726

97,241

Software royalties and other information processing costs

9,677

9,191

19,609

18,272

Compensation, benefits and other personnel

207,839

199,574

414,154

390,358

Stock-based compensation

16,313

13,891

30,809

28,029

Consulting, outsourcing and professional fees

56,269

56,942

110,672

112,943

Data processing and computer related

46,862

41,801

91,735

81,120

Facilities, supplies and other costs

21,453

21,744

41,775

40,499

Amortization

19,137

10,449

37,491

21,159

Depreciation

7,071

7,665

14,327

15,592

Total expenses

444,601

410,966

877,298

805,213

Income from operations

197,016

148,635

386,502

305,732

Net gain from investments

3,550

1,759

3,181

2,252

Interest and dividend income

7,012

9,283

14,174

19,504

Interest expense

(562)

(92)

(1,035)

(277)

Gain on sale of business

—

94,412

—

94,412

Other income

—

4,500

450

4,500

Equity in earnings of unconsolidated affiliates

38,694

33,640

71,170

62,387

Net gain from consolidated variable interest entities

7,475

—

9,554

—

Income before income taxes

253,185

292,137

483,996

488,510

Income taxes

53,645

65,054

107,669

109,910

Net income

$199,540

$227,083

$376,327

$378,600

Less: Net income attributable to non-controlling interests

3,882

—

6,182

—

Net income attributable to SEI Investments Company

$195,658

$227,083

$370,145

$378,600

Basic earnings per common share

$1.63

$1.82

$3.06

$3.02

Shares used to calculate basic earnings per share

120,339

124,470

120,999

125,516

Diluted earnings per common share

$1.59

$1.78

$2.99

$2.95

Shares used to calculate diluted earnings per share

123,334

127,278

123,914

128,364

Dividends declared per common share

$0.52

$0.49

$0.52

$0.49

SEI INVESTMENTS COMPANY

(In thousands) (Unaudited)

June 30,

December 31,

2026

2025

Assets

Current Assets:

Cash and cash equivalents

$395,664

$399,804

Receivables from investment products

60,535

63,317

Receivables, net

783,400

709,748

Securities owned

25,532

33,777

Other current assets

78,095

66,691

Total Current Assets

1,343,226

1,273,337

Property and Equipment, net

151,885

150,434

Operating Lease Right-of-Use Assets

32,345

26,447

Capitalized Software, net

227,215

234,272

Investments

318,909

428,004

Assets of Consolidated Variable Interest Entities

206,955

183,994

Goodwill

389,420

354,989

Intangible assets, net

470,524

368,272

Other Assets, net

183,859

240,095

Total Assets

$3,324,338

$3,259,844

Liabilities, Redeemable Non-controlling Interests and Equity

Current Liabilities:

Accounts payable

$10,547

$5,404

Accrued liabilities

225,607

359,823

Current portion of long-term debt

3,487

—

Current portion of long-term operating lease liabilities

10,169

8,677

Deferred revenue

15,718

13,307

Total Current Liabilities

265,528

387,211

Long-term Debt

29,483

—

Liabilities of Consolidated Variable Interest Entities

121,300

108,504

Other Long-term Liabilities

61,128

60,353

Total Liabilities

477,439

556,068

Redeemable Non-controlling Interests

311,027

243,959

Equity:

Shareholders' Equity:

Common stock, $0.01 par value, 750,000 shares authorized; 119,977 and 122,232 shares issued and outstanding

1,200

1,222

Capital in excess of par value

1,714,294

1,678,787

Retained earnings

813,820

792,280

Accumulated other comprehensive loss, net

(29,616)

(24,505)

Total SEI Shareholders' Equity

2,499,698

2,447,784

Non-controlling interests

36,174

12,033

Total Equity

$2,535,872

$2,459,817

Total Liabilities, Redeemable Non-controlling Interests and Equity

$3,324,338

$3,259,844

SEI INVESTMENTS COMPANY

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(In thousands) (Unaudited)

For the Six Months

Ended June 30,

2026

2025

Cash flows from operating activities:

Net income

$376,327

$378,600

Adjustments to reconcile net income to net cash provided by operating activities:

(28,960)

(135,595)

Net cash provided by operating activities

$347,367

$243,005

Net cash provided by investing activities

$16,863

$65,268

Net cash used in financing activities

($356,918)

($419,220)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(5,406)

17,103

Net change in cash and cash equivalents and cash and cash equivalents held at

consolidated variable interest entities

1,906

(93,844)

Cash, cash equivalents and cash and cash equivalents held at consolidated variable

interest entities, beginning of period

470,595

840,193

Cash, cash equivalents and cash and cash equivalents held at consolidated variable

interest entities, end of period

$472,501

$746,349

Reconciliation of Cash, cash equivalents and cash and cash equivalents held at

consolidated variable interest entities to the Consolidated Balance Sheets:

June 30,

2026

December 31,

2025

Cash and cash equivalents

$395,664

$399,804

Cash and cash equivalents held at consolidated variable interest entities

76,837

70,791

Total cash and cash equivalents and cash and cash equivalents held at consolidated

variable interest entities

$472,501

$470,595

ENDING ASSET BALANCES

(In millions) (Unaudited)

Jun. 30

Sep. 30

Dec. 31

Mar. 31

Jun. 30

Investment Managers:

2025

2026

Collective trust fund programs (A)

$225,690

$237,964

$243,244

$243,900

$265,265

Liquidity funds

307

418

579

536

464

Total assets under management

$225,997

$238,382

$243,823

$244,436

$265,729

Client assets under administration

1,128,325

1,204,843

1,239,606

1,284,781

1,351,307

Total assets

$1,354,322

$1,443,225

$1,483,429

$1,529,217

$1,617,036

Private Banks:

Equity and fixed-income programs

$27,839

$28,408

$29,832

$29,753

$32,520

Collective trust fund programs

Liquidity funds

2,796

2,802

2,099

2,178

1,709

Total assets under management

$30,638

$31,213

$31,934

$31,935

$34,233

Client assets under administration

8,431

8,902

9,115

9,143

9,405

Total assets

$39,069

$40,115

$41,049

$41,078

$43,638

Investment Advisors:

Equity and fixed-income programs

$80,618

$85,245

$86,879

$86,612

$94,390

Liquidity funds

3,457

3,391

3,561

3,485

3,391

Total Platform assets under management

$84,075

$88,636

$90,440

$90,097

$97,781

Platform-only assets

29,848

32,152

33,582

34,070

38,308

Platform-only assets-deposit program

2,155

2,165

2,461

2,294

2,358

Total Platform assets

$116,078

$122,953

$126,483

$126,461

$138,447

Institutional Investors:

Equity and fixed-income programs

$80,112

$82,676

$84,254

$82,195

$86,690

Liquidity funds

1,768

1,580

1,604

1,503

1,559

Total assets under management

$81,880

$84,256

$85,858

$83,698

$88,249

Client assets under advisement

6,090

6,564

3,598

3,549

3,790

Total assets

$87,970

$90,820

$89,456

$87,247

$92,039

Investments in New Businesses: Equity and fixed-income programs

$2,867

$2,999

$3,044

$3,087

$3,351

Liquidity funds

244

316

252

236

Total assets under management

$3,111

$3,243

$3,360

$3,339

$3,587

Client assets under advisement

2,593

2,452

2,389

2,185

2,506

Total assets

$5,704

$5,695

$5,749

$5,524

$6,093

LSV Asset Management:

Equity and fixed-income programs (B)

$91,795

$95,801

$99,196

$100,567

$117,146

Stratos Wealth Holdings (E)

$—

$38,637

$38,291

$41,889

Total:

Equity and fixed-income programs (C)

$283,231

$295,129

$303,205

$302,214

$334,097

Collective trust fund programs

225,693

237,967

243,247

243,904

265,269

Liquidity funds

8,572

8,435

8,159

7,954

7,359

Total assets under management

$517,496

$541,531

$554,611

$554,072

$606,725

Client assets under advisement

8,683

9,016

5,987

5,734

6,296

Client assets under administration (D)

1,136,756

1,213,745

1,248,721

1,293,924

1,360,712

Platform-only assets

32,003

34,317

36,043

36,364

40,666

Stratos Wealth Holdings

—

38,637

38,291

41,889

Total assets

$1,694,938

$1,798,609

$1,883,999

$1,928,385

$2,056,288

(A)

Collective trust fund program assets in the Investment Managers segment are included in assets under management since SEI is the trustee. Fees earned on this product are less than fees earned on customized asset management programs.

(B)

Equity and fixed-income programs include $1.5 billion of assets managed by LSV in which fees are based solely on performance and are not calculated as an asset-based fee (as of June 30, 2026).

(C)

Equity and fixed-income programs include $8.9 billion of assets in various asset allocation funds (as of June 30, 2026).

(D)

In addition to the assets presented, SEI also administers an additional $14.3 billion in Funds of Funds assets on which SEI does not earn an administration fee (as of June 30, 2026).

(E)

Beginning June 30, 2026, assets related to Stratos Wealth Holdings are no longer reported on a one month lag. Prior period asset balances have been revised to conform with the current period presentation.

AVERAGE ASSET BALANCES

(In millions) (Unaudited)

2nd Qtr.

3rd Qtr.

4th Qtr.

1st Qtr.

2nd Qtr.

2025

2026

Investment Managers:

Collective trust fund programs (A)

$215,085

$231,088

$240,285

$248,851

$259,655

Liquidity funds

288

385

492

565

506

Total assets under management

$215,373

$231,473

$240,777

$249,416

$260,161

Client assets under administration

1,098,925

1,174,961

1,225,392

1,280,581

1,332,630

Total assets

$1,314,298

$1,406,434

$1,466,169

$1,529,997

$1,592,791

Private Banks:

Equity and fixed-income programs

$26,533

$28,051

$29,087

$30,696

$32,005

Collective trust fund programs

Liquidity funds

2,771

2,834

2,371

2,150

1,717

Total assets under management

$29,307

$30,888

$31,461

$32,849

$33,726

Client assets under administration

8,266

8,665

8,977

9,282

9,455

Total assets

$37,573

$39,553

$40,438

$42,131

$43,181

Investment Advisors:

Equity and fixed-income programs

$76,629

$82,735

$85,896

$88,403

$92,424

Liquidity funds

3,464

3,378

3,418

3,518

3,338

Total Platform assets under management

$80,093

$86,113

$89,314

$91,921

$95,762

Platform-only assets

27,288

30,874

33,022

34,485

36,768

Platform-only assets-deposit program

2,152

2,136

2,135

2,309

2,273

Total Platform assets

$109,533

$119,123

$124,471

$128,715

$134,803

Institutional Investors:

Equity and fixed-income programs

$77,843

$80,802

$83,739

$84,393

$85,302

Liquidity funds

1,853

1,810

1,947

1,941

1,702

Total assets under management

$79,696

$82,612

$85,686

$86,334

$87,004

Client assets under advisement

5,841

6,274

5,413

3,657

3,703

Total assets

$85,537

$88,886

$91,099

$89,991

$90,707

Investments in New Businesses:

Equity and fixed-income programs

$2,732

$2,934

$3,021

$3,106

$3,260

Liquidity funds

244

255

288

319

258

Total assets under management

$2,976

$3,189

$3,309

$3,425

$3,518

Client assets under administration (E)

14,917

—

Client assets under advisement

2,329

2,428

2,408

2,335

2,425

Total assets

$20,222

$5,617

$5,717

$5,760

$5,943

LSV Asset Management:

Equity and fixed-income programs (B)

$89,422

$92,969

$97,304

$104,619

$115,862

Stratos Wealth Holdings (F)

$—

$38,507

$39,317

$40,559

Total:

Equity and fixed-income programs (C)

$273,159

$287,491

$299,047

$311,217

$328,853

Collective trust fund programs

215,088

231,091

240,288

248,854

259,659

Liquidity funds

8,620

8,662

8,516

8,493

7,521

Total assets under management

$496,867

$527,244

$547,851

$568,564

$596,033

Client assets under advisement

8,170

8,702

7,821

5,992

6,128

Client assets under administration (D)

1,122,108

1,183,626

1,234,369

1,289,863

1,342,085

Platform-only assets

29,440

33,010

35,157

36,794

39,041

Stratos Wealth Holdings

—

38,507

39,317

40,559

Total assets

$1,656,585

$1,752,582

$1,863,705

$1,940,530

$2,023,846

(A)

Collective trust fund program average assets in the Investment Managers segment are included in assets under management since SEI is the trustee. Fees earned on this product are less than fees earned on customized asset management programs.

(B)

Equity and fixed-income programs during second-quarter 2026 include $1.4 billion of average assets managed by LSV in which fees are based solely on performance and are not calculated as an asset-based fee.

(C)

Equity and fixed-income programs include $8.6 billion of average assets in various asset allocation funds during second-quarter 2026.

(D)

In addition to the assets presented, SEI also administers an additional $13.8 billion of average assets in Funds of Funds assets during second-quarter 2026 on which SEI does not earn an administration fee.

(E)

Client assets under administration related to the Family Office Services business divested on June 30, 2025.

(F)

Beginning in second-quarter 2026, average assets related to Stratos Wealth Holdings are no longer reported on a one month lag. Prior period average assets have been revised to conform with the current period presentation.

SALES EVENTS

(In thousands) (Unaudited)

Net Recurring Sales Events

2nd Qtr.

2025

3rd Qtr.

2025

4th Qtr.

2025

1st Qtr.

2026

2nd Qtr.

2026

Investment Processing-related Businesses:

Investment Managers

$21,928

$27,460

$19,150

$46,848

$27,856

Private Banks

254

(6,713)

5,670

1,571

4,207

Total Investment Processing-related Businesses

$22,182

$20,747

$24,820

$48,419

$32,063

Asset Management-related Businesses:

Private Banks-AMD

($174)

($1,674)

($1,567)

$1,983

$2,938

Investment Advisors

(1,654)

1,230

(728)

7,044

(1,685)

Institutional Investors

2,544

(594)

(5,025)

(2,935)

(1,102)

Total Asset Management-related Businesses

$716

($1,038)

($7,320)

$6,092

$151

Newer Initiatives:

Investments in New Businesses

$1,245

$1,208

$1,248

$2,631

$361

Total Net Recurring Sales Events

$24,143

$20,917

$18,748

$57,142

$32,575

Professional Services Sales Events

2nd Qtr.

3rd Qtr.

4th Qtr.

1st Qtr.

2nd Qtr.

2025

2026

Investment Processing-related Businesses:

Investment Managers

$1,102

$2,465

$1,347

$3,672

$4,179

Private Banks

2,373

7,087

23,409

4,950

5,934

Total Investment Processing-related Businesses

$3,475

$9,552

$24,756

$8,622

$10,113

Newer Initiatives:

Investments in New Businesses

$1,552

$71

$95

$1,389

$768

Total Professional Services Sales Events

$5,027

$9,623

$24,851

$10,011

$10,881

Total Sales Events

2nd Qtr.

3rd Qtr.

4th Qtr.

1st Qtr.

2nd Qtr.

2025

2026

Investment Processing-related Businesses:

Investment Managers

$23,030

$29,925

$20,497

$50,520

$32,035

Private Banks

2,627

374

29,079

6,521

10,141

Total Investment Processing-related Businesses

$25,657

$30,299

$49,576

$57,041

$42,176

Asset Management-related Businesses:

Private Banks-AMD

($174)

($1,674)

($1,567)

$1,983

$2,938

Investment Advisors

(1,654)

1,230

(728)

7,044

(1,685)

Institutional Investors

2,544

(594)

(5,025)

(2,935)

(1,102)

Total Asset Management-related Businesses

$716

($1,038)

($7,320)

$6,092

$151

Newer Initiatives:

Investments in New Businesses

$2,797

$1,279

$1,343

$4,020

$1,129

Total Sales Events

$29,170

$30,540

$43,599

$67,153

$43,456

Non-GAAP Information & Reconciliations

(In thousands, except per share data) (Unaudited)

We present certain non-GAAP financial measures to supplement the consolidated financial statements prepared in accordance with GAAP. Management believes these measures provide useful information to investors by enhancing the understanding of our core operating performance and facilitating comparisons across reporting periods. These non-GAAP measures are also used by our management to evaluate operating results, allocate resources, and assess performance against strategic objectives.

These non-GAAP financial measures should be viewed in addition to, and not as a substitute for, reported results prepared in accordance with GAAP.

The following schedules reconcile U.S. GAAP financial measures to non-GAAP financial measures for the three and six months ended June 30, 2026 and 2025:

For the Three Months

Ended June 30,

For the Six Months

Ended June 30,

2026

2025

2026

2025

Net income attributable to SEI Investments Company (U.S. GAAP basis)

$195,658

$227,083

$370,145

$378,600

Non-GAAP adjustments:

Acquisition-related:

Third party costs (A)

—

820

—

820

Intangible assets amortization & impairments (B)

7,057

3,157

13,691

6,606

Total acquisition-related

7,057

3,977

13,691

7,426

Gain on sale of asset/business (C)

—

(94,412)

—

(94,412)

Litigation settlements and insurance proceeds (D)

3,808

(4,500)

3,808

(4,500)

Income tax effect (E)

(2,338)

21,142

(3,891)

20,354

Adjusted net income attributable to SEI Investments Company (non-

GAAP basis)

$204,185

$153,290

$383,753

$307,468

Diluted EPS (U.S. GAAP basis)

$1.59

$1.78

$2.99

$2.95

Adjusted diluted EPS (non-GAAP basis)

$1.66

$1.20

$3.10

$2.40

Diluted weighted average shares outstanding

123,334

127,278

123,914

128,364

Income from operations (U.S. GAAP Basis)

$197,016

$148,635

$386,502

$305,732

Operating margin (U.S. GAAP Basis)

31 %

27 %

31 %

28 %

Non-GAAP adjustments:

Acquisition-related:

Third party costs (A)

—

820

—

820

Intangible assets amortization & impairments (B)

9,935

3,157

19,132

6,606

Total acquisition-related

9,935

3,977

19,132

7,426

Adjusted income from operations (non-GAAP Basis)

$206,951

$152,612

$405,634

$313,158

Adjusted operating margin (non-GAAP basis)

32 %

27 %

32 %

28 %

(A)

This non-GAAP adjustment removes incremental and directly attributable costs incurred to execute acquisitions, such as third-party advisory, legal, accounting, valuation, and due diligence. For 2025, this non-GAAP adjustment consisted of the legal costs, advisory fees, and due diligence fees in relation to the Stratos acquisition. Management believes adjusting for these charges helps the reader's ability to understand our core operating results and increases comparability quarter to quarter.

(B)

This non-GAAP adjustment removes the impact of amortization expense associated with acquired intangible assets (e.g., customer relationships, technology, trade names). This non-GAAP adjustment removes only amortization recorded in the current period related to acquired intangibles from prior acquisitions. The non-GAAP adjustments in 2026 include the amortization of the acquired intangibles from the Stratos acquisition, which closed in December 2025. Management included the Stratos related amortization expense net of the 42.5% NCI adjustment for the adjusted EPS calculation. However, this adjustment is not inclusive of the NCI portion for adjusted operating margin. The associated revenues are not adjusted. Management believes adjusting for these charges helps the reader's ability to understand our core operating results and increases comparability quarter to quarter.

(C)

This non-GAAP adjustment removes realized gains on the sale of assets owned or entities under our control, out of the normal course of business. In 2025, the adjustment consisted of the realized gain from the sale of Family Office Services (FOS). Management believes adjusting for these gains helps the reader's ability to understand our core operating results and increases comparability quarter to quarter.

(D)

This non-GAAP adjustment removes individually significant litigation settlements and insurance proceeds. In 2026, this non-GAAP adjustment was related to litigation settlements. In 2025, this non-GAAP adjustment consisted of a $4.5M settlement related to a vendor matter. Management included both of these transactions as non-GAAP adjustments since they were both out of the normal course of business. Management believes adjusting for these items helps the reader's ability to understand our core operating results and increases comparability quarter to quarter.

(E)

Income tax effects are presented as a separate reconciling item (not netted within each adjustment). For performance measures, the tax effect reflects current and deferred tax expense commensurate with the adjusted measure of profitability. The methodology used (e.g., statutory rate, effective rate, or discrete item approach) is consistently applied. All of the above items use a systematic approach.

SOURCE SEI Investments Company