Strategic Focus on Diversified Business Model and Relationship Banking
The company emphasizes its diversified business model that targets higher growth markets and high-performing national loan and depository businesses.
Management highlights a relationship approach with a C&I bias, which allows capturing more opportunities and mitigates payoff headwinds from a higher CRE-focused portfolio.
Consistent top-quartile performance driven by strategic focus on relationship banking and disciplined growth.
Advisor and institutional businesses had flat sequential revenue growth as market appreciation in May and June offset April declines.
AUM and AUA grew sequentially and year-over-year, with AUM net flows roughly flat year-to-date, a significant improvement from prior year outflows.
Consolidated operating margins improved slightly year-over-year but declined sequentially due to onetime expenses and corporate overhead.
Excluding onetime items, adjusted EPS was $1.20, an increase from both the prior year and prior quarter.
Investment Managers revenue grew 8% year-over-year with double-digit growth in alternatives offsetting a 1% decline in traditional revenue due to mark-to-market weakness.
Margins declined sequentially due to investments in talent and technology, with Investment Managers margins impacted by hiring ahead of expected new business.
Private Banking revenue increased year-over-year and sequentially, supported by larger clients going live.
SEI reported EPS of $1.78 including significant onetime items totaling a $0.60 EPS impact, partially offset by $0.02 of expenses related to foreign currency losses and legal fees tied to the Stratos investment.
SEI returned significant capital to shareholders with buybacks exceeding $700 million on a trailing 12-month basis.
Analytics recurring sales hit a Q2 record, driven mainly by equity risk models.
Equity index ETF AUM linked to MSCI indices surpassed $2 trillion, with total index ETF and non-ETF AUM at $6 trillion.
Fixed income index ETF AUM linked to MSCI indices reached $84 billion, contributing to the highest quarterly ABF revenue ever.
MSCI Inc. delivered strong Q2 2025 financial results with revenue growth over 9%, adjusted EBITDA growth over 10%, adjusted EPS growth nearly 15%, and free cash flow exceeding $300 million.
Private capital solutions run rate grew nearly 13%, with new product launches and strong client interest.
Retention rates remained stable overall but showed softness in analytics, sustainability, and hedge funds segments.
Subscription run rate growth was double-digit across banks, broker-dealers, wealth managers, hedge funds, and asset owners, with active asset managers holding steady at 6%.
Sustainability and climate subscription run rate grew 11%, with climate solutions growing nearly 20%.
Total run rate growth was 11%, driven by record ETF AUM linked to MSCI indices, with asset-based fee (ABF) run rate growth of 17%.
Year-to-date, MSCI repurchased $286 million of shares at an average price of $557, reflecting confidence in the franchise.
Dafinchi