SEI Investments Company

Welcome to SEI Second Quarter 2026 Earnings Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Brad Burke, Head of Investor Relations and Treasurer. Thank you, sir. You may begin.

Thank you and welcome everyone to SEI's second quarter 2026 earnings call. We appreciate you joining us today. On the call, we have Ryan Hicke, SEI's chief executive officer, Sean Denham, our chief financial and chief operating officer, and members of our executive management team, including Michael Lane, Phil McCabe, Mike Peterson, Sneha Shah, Sanjay Sharma, and Amy Slowinski. 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?

Thank you, Brad, and good afternoon, everyone. I assume most of you have reviewed the numbers by now. SEI had an outstanding second quarter. Compared to the prior year, revenue increased 15%. Adjusted operating profit increased 36%. and adjusted earnings per share increased 38%. All three represent quarterly records for SEI. This quarter is less about what happened during the last three months and more a reflection of the changes we have made over the past few years. We are more disciplined in how we allocate capital across both investments and talent. We have evolved our value proposition and how we operate as an enterprise. It also reflects the continued activation and execution Thank you for joining us today. I'd like to touch on a few of them. First, the continued expansion of private markets into retail and retirement channels. We believe this trend remains in the early innings and plays directly to SCI strengths, specifically our ability to execute at scale. As private markets move into wealth and retirement channels, managers need administration, Transfer Agency, Investor Servicing, Compliance, and Scalable Operational Infrastructure, capabilities SEI has spent decades building. The recent expansion of our SEC Registered Transfer Agency is an important milestone. Combined with our Fund Admin Platform and our Trust Company, the TA gives SEI a full-stack capability. We're also seeing growing interest in bringing private market exposure into retirement plans, especially through collective investment trusts. SEI is one of the only scaled independent trust platforms in the industry, making us the natural partner for investment managers bringing private asset solutions to the retirement space. When we look at the growth of retail alternatives, the expansion of private markets into retirement plans and SEI's outstanding competitive position, We believe these initiatives have the potential to grow into a business generating more than $100 million of annual run rate revenue in five years. This represents one of the most compelling growth opportunities for SEI, and our position as the connective tissue of modern financial services shines through here. Second, executing on our asset management strategy. We have moved beyond reimagining the business and into execution. We're seeing momentum in ETFs, expanding our private market capabilities, and advancing a growing product pipeline that includes new ETF launches, enhanced model capabilities, and strategic partnerships. Last week, we launched our latest active factor ETF, SEUS, bringing our total ETF lineup to 10 funds. Over the last 12 months, The ETF business at SCI has grown from $3 billion to over $8 billion. We're also making progress in private markets through initiatives like our recently announced partnership with Carlyle, which combines Carlyle's origination expertise, distribution, and trusted brand with SCI's breadth of capabilities. This is the type of innovation we want to see more consistently, product development that's tied to market opportunities. supported by multiple enterprise capabilities and delivered in a way that strengthens our competitive position. Turning to Stratos, there is growing interest from SEI advisors seeking succession, liquidity, and growth solutions without leaving our ecosystem. That interest includes several of our longest tenured advisor relationships, many of whom historically may have looked to third-party acquirers. By providing an alternative path, Stratos helps these firms remain within SCI while creating additional opportunities for us to participate in their future growth. We believe this validates one of our core strategic objectives. We also have a healthy pipeline of non-SCI acquisition opportunities at attractive valuations, which represents an excellent use of capital. While there's still work ahead, we're building a stronger and more competitive asset management business every day, and I am confident in the strategic and tactical direction of the asset management platform. The last of the investments I'll highlight is the application of technology, data, automation, and AI to improve both client experience and the scalability of our business. Recent enhancements to SEI Data Cloud and our IMS platform are helping clients gain faster access to information, simplify integrations, reduce operational complexity, and make better use of their data. A significant part of that effort is the digitization of core operating process. We're digitizing NAV delivery, creating automated data flows between SEI and our investment manager clients with a very clear objective, eliminate friction, simplify operations, and help clients redirect more time, capacity and capital towards their growth. Our approach to AI is straightforward. We're focused on embedding AI into workflows to improve service, automate routine processes, accelerate onboarding, enhance access to data and help clients operate more efficiently. Before concluding, I'd like to briefly address sales events. Sales events totaled $43 million during the quarter, following the record $67 million we reported in Q1. It was one of the strongest quarters in the history of SEI. The breadth of this activity is extremely encouraging. IMS generated more than $32 million of sales events, driven by a healthy mix of new client wins and expanded relationships with existing clients. The activity was also broadly distributed across the business rather than concentrated in any one client or opportunity. I was on the road with many clients and prospects this quarter. I can only emphasize that the engagement we are getting at the C-level of these large organizations is better than I have ever seen in my 28 years in the business. Private banking delivered more than $13 million of sales events. and we also saw encouraging activity from asset management and newer growth initiatives. Many of these opportunities are becoming larger, more strategic and more enterprise-wide in nature. Clients are engaging with SEI across multiple capabilities rather than a single service or solution. Over the last several quarters, we've emphasized that the quality of sales events is every bit as important to us as the quantity. The results we're reporting today validate that point. We're winning opportunities that leverage existing capabilities, require less incremental investment, and contribute more quickly to our financial results. This is a key driver of the strong growth and profitability we're seeing across the enterprise. As we look ahead, our pipeline remains outstanding. Activity levels are high, the opportunity set is broad-based, and we're seeing continued engagement from many of the largest and most sophisticated firms in our target markets. But none of this happens without the incredible focus and execution of our workforce. And I thank them for another amazing quarter and for their energy and passion to lead SDI every day and delight our clients. With that, I will turn the call over to Sean. Thank you, Ryan. Let's start on slide four.