Oct 21, 2026 earnings call — IMS demand and enterprise transformation
SEI reported revenue growth of 14% in Q3 and net sales events totaled $47 million, bringing year-to-date total to $157 million.
Revenue $0.7B (est $0.7B) · EPS $1.64 (est $1.58)
Key quotes
"In IMS, demand remains strong, especially among large alternative asset managers."
"When I step back and look at why we have seen sales activity accelerate and why our pipelines are strong, professional services looks less like a separate offering in banking and more like the missing piece that is now complementing the SEI offering."
"Given the strength of our results year to date and our outlook for the remainder of the year, we increased our incentive compensation accrual during the quarter."
Analyst Q&A 10
ETF growth and capacity to onboard
Q (Jeff Schmitt · William Blair): Analyst asked how big and fast the ETF opportunity is when distributing off-platform. He also asked if current capacity limits how fast they can add new business and whether automation helps.
A: Management said their ETF lineup and volumes are growing and AUM tripled this year from about $3 billion-$4 billion to about $9 billion. They said the ETF lineup spans different fee levels and active strategies, and they hope the business could double again next year. On capacity, they said automation will help and that they are hiring and rallying teams to convert clients quickly.
"I would expect our hope is that that business has the potential to double again next year." — Ryan Hicke (CEO)
Alternatives wins and incentive pay impact
Q (Crispin Love · Piper Sandler): Analyst asked where they are seeing success in alternatives, especially private credit vs private equity, and what other strengths exist. He also asked about the $6 million+ incentive comp accrual and whether expenses should be viewed excluding that.
A: Management said they are winning with first-time outsourcers, including two of the top 25 managers and talks with many top 100 firms. They see traction in secondaries, private credit (with insurance flows), retirement collective investment trusts, and new TA capabilities for interval funds. On expenses, they said the $6 million accrual is a one-time true-up that goes away next quarter, with another 25% (~$1.5 million) hitting in Q4 and that incentive accruals move with business performance.
"First off, the $6 million incentive comp accrual is a one-timer that goes away next quarter." — Sean Denham (COO)
Pipeline detail and year-end outlook
Q (Alex Kramm · UBS): Analyst asked for more detail on where the pipeline is strongest, whether anything big could hit in Q4, and how they feel about year-end.
A: Management said Q3 and Q2 pipelines look similar in spread and breadth, which they view positively for repeatability. They said the same trends continue into Q4 and early 2027 and then deferred to unit leaders for segment-level color.
"When we look at pipelines for Q4 and into early 2027, we see a lot of the same." — Ryan Hicke (CEO)
Platform opportunity from competitor exit
Q (Michael Lane): Analyst asked for more color on pipeline drivers and any industry events creating new opportunities into year-end.
A: Management said an industry competitor’s change is creating a stimulus that could free about $50 billion of assets seeking a new platform home, and they are pursuing that. They said pipelines across institutional and wealth are at all-time highs, with momentum in advisor business and focus on top-line growth. They also noted efforts to bring investment products into banks and momentum in Stratos and upcoming Carlyle fund launches in Q4.
Transfer agency launch and ramp
Q (Alex Kramm · UBS): Analyst asked about the transfer agency launch: one live win so far, how they get to the $10 million target by end of next year, and what must happen to exceed it.
A: Management said the first transfer agency client went live on August 3 and others are live now with more stacked for the coming months. They said the $10 million estimate will likely be light and noted the first deal was about $600,000. They expect steady execution to drive the business up the chain to larger deals.
"I think the $10 million number will be a little bit light." — Phil McCabe
Faster onboarding and recurring services
Q (Ryan Kenny · Morgan Stanley): Analyst asked whether implementation timelines are accelerating due to process improvements or AI. He also asked if enterprise advisory and transformation revenue is one-time or recurring.
A: Management said they have heavily invested in onboarding, automation, and AI, which helps fast-track conversions and makes the process repeatable. They said clients are engaging earlier, giving SEI clearer plans so installations happen faster. On advisory work, they said professional services can be recurring because clients continuously need help with regulatory, technology, and industry changes, including AI adoption.
Clients want integrated AI and recurring work
Q (Sneha Shah): Analyst asked how client demand around AI and operating model change is affecting recurring work and services.
A: Management said clients are reinventing operating models in the age of AI and want fewer, deeper partners who can build integrated solutions. They said this is producing recurring work that is often different from the original engagement and is driving creation of new services. The firm believes integrated platforms and context create more value than many separate AI tools.
Private credit health and Stratos scope
Q (Patrick O'Shaughnessy · Raymond James): Analyst asked about the health of private credit amid credit quality concerns and any effects on their sales pipeline. He also asked how Stratos is positioned U.S. versus international.
A: Management said they see private credit flagship launches continuing on schedule and no cracks in the pipeline. They noted retail flows into private credit are down, but that has not impacted them because they only entered that space recently, and they are seeing insurance money on the institutional side. On Stratos, they said the footprint is predominantly U.S., with one Latin American business that was terminated and the rest domestic.
"I do think retail flows are down in private credit, but that did not impact us before because we have only been in that space for about the last several months." — Phil McCabe
Retail alts conversions and institutional focus
Q (Alex Bond · KBW): Analyst asked how progress is going converting larger interval funds and which institutional segments show the most traction.
A: Management said they needed early proof cases and are now moving up to larger deals in interval funds, noting the market is concentrated in the top 15–20 managers. For institutional business, they said they are focusing resources on endowments, foundations, and healthcare and expect those pipelines to drive top-line growth rather than spreading efforts too thin.
Private banking recurring revenue and AMD flows
Q (Dan Welden · Wells Fargo): Analyst asked what is driving recurring revenue momentum in private banks and whether the three quarters of positive AMD flows are sustainable.
A: Management said traditional SWP (core platform) remains central, but expanding professional services and asset management has created durable recurring revenue. They said AMD strength is largely international after shifting resources in the U.K. and making key hires, and they are replicating those approaches domestically. They emphasized new services like Data Cloud and AI help grow recurring revenue with existing clients as well as new logos.
"Now, while we are chasing new logos with our enterprise capabilities, we are also helping our clients to grow their business." — Ryan Hicke (CEO)