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Federated Hermes, Inc.

FHI

Federated Hermes, Inc. • NYSE
$50.17 ▼ -0.30% (-0.15)
Market Cap $3.89 B
52w High $54.42
52w Low $35.05
Dividend Yield 1.33%
P/E 10.5
Volume 221.80K
Outstanding Shares 77.54M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $469.446M ▲ $195.431M ▲ $104.126M ▲ 22.181% ▲ $1.41 ▲ $149.142M ▲
Q2-2025 $424.844M ▲ $162.888M ▲ $91M ▼ 21.42% ▼ $1.16 ▼ $139.633M ▲
Q1-2025 $423.54M ▼ $148.498M ▼ $101.134M ▲ 23.878% ▲ $1.25 ▲ $138.15M ▲
Q4-2024 $424.683M ▲ $177.091M ▲ $84.716M ▼ 19.948% ▼ $1.04 ▼ $121.075M ▼
Q3-2024 $408.456M $160.687M $87.538M 21.431% $1.06 $131.487M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $647.391M ▲ $2.182B ▲ $931.469M ▲ $1.187B ▲
Q2-2025 $607.479M ▲ $2.152B ▲ $874.487M ▲ $1.114B ▲
Q1-2025 $541.826M ▼ $2.002B ▼ $858.721M ▼ $1.076B ▼
Q4-2024 $641.042M ▲ $2.085B ▲ $933.964M ▲ $1.095B ▲
Q3-2024 $565.028M $2.038B $900.627M $1.084B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $106.095M ▲ $103.059M ▲ $5.45M ▲ $29.864M ▲ $135.301M ▲ $101.629M ▲
Q2-2025 $96.691M ▼ $18.787M ▲ $-16.016M ▼ $-31.693M ▲ $-16.566M ▲ $18.001M ▲
Q1-2025 $103.876M ▲ $14.299M ▼ $-1.528M ▼ $-137.568M ▼ $-119.531M ▼ $13.327M ▼
Q4-2024 $83.854M ▼ $126.7M ▲ $41.399M ▲ $-26.273M ▲ $128.952M ▲ $126.195M ▲
Q3-2024 $90.341M $117.149M $-27.339M $-32.522M $67.704M $123.696M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Federated Hermes Funds
Federated Hermes Funds
 $360.00M ▲$360.00M ▲$360.00M ▲$390.00M ▲
Other
Other
 $0 ▲$0 ▲$10.00M ▲$10.00M ▲
Separate accounts
Separate accounts
 $60.00M ▲$60.00M ▲$60.00M ▲$70.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has grown gradually over the last few years after a soft patch, showing that the business has been able to expand even in a choppy market environment. Profitability has stayed solid and fairly steady, with operating and net income holding up rather than swinging wildly. Earnings per share have moved around a bit but remain at a healthy level, with a slight easing recently rather than a sharp drop. Overall, the income statement points to a mature, consistently profitable asset manager rather than a high‑growth story.

Balance Sheet

Balance Sheet The balance sheet looks stable and conservatively managed. Total assets and shareholder equity have been fairly steady, suggesting no aggressive balance‑sheet bets. Cash levels have improved meaningfully in recent years, giving the company more flexibility and a bigger cushion. Debt has risen compared with a few years ago, but not in a way that appears out of line with the size and stability of the business. In simple terms, the company seems to be funding itself in a balanced way, with a comfortable capital base and growing liquidity.

Cash Flow

Cash Flow Cash generation is a clear strength. The company regularly turns its profits into cash, with operating cash flow consistently positive and closely tracking reported earnings. Because the business is not very capital‑intensive, it spends relatively little on physical investments, so free cash flow ends up very close to operating cash flow. That means most of the money coming in is genuinely available for dividends, buybacks, debt reduction, or acquisitions, giving management plenty of financial flexibility.

Competitive Edge

Competitive Edge Federated Hermes holds a strong position in money market and liquidity products, which provide a large, sticky base of client assets and recurring fees. On top of that, it has built a long track record in responsible and ESG‑focused investing, which differentiates it in a crowded asset‑management field. Its mix of lower‑fee cash products and higher‑fee equity, fixed income, and alternative strategies creates a diversified business model that can weather different market conditions. Key risks come from industry‑wide fee pressure, performance competition, and sensitivity of its money‑market franchise to interest‑rate cycles, but its scale, history, and brand offer meaningful advantages.

Innovation and R&D

Innovation and R&D For a financial firm, Federated Hermes is unusually active on the innovation front. It has developed proprietary ESG tools, such as internal scoring systems, dashboards, and impact databases, to go beyond off‑the‑shelf ratings and support its stewardship efforts. Its quantitative arm uses advanced data science and machine learning to run systematic investment strategies, aiming for consistent, process‑driven results. The company is also experimenting with tokenized money market funds and broader digital‑asset infrastructure, as well as expanding in private markets. These initiatives suggest a willingness to invest in technology, data, and new structures rather than relying solely on traditional mutual funds.

Summary

Federated Hermes looks like a steady, profitable asset manager with a strong base in money‑market products and a clear identity around ESG and stewardship. The financials show modest revenue growth, resilient margins, solid free‑cash‑flow generation, and a stable balance sheet with improving cash and manageable debt. Competitively, its long history in liquidity management and early move into responsible investing create a recognizable franchise, while quantitative strategies and digital initiatives add additional angles for growth. The main watchpoints are industry competition, fee pressure, and interest‑rate sensitivity, but the company appears to be combining financial discipline with a thoughtful push into innovation and new product areas.

NEWS

November 17, 2025 · 9:05 AM UTC

Month-end portfolio data now available for Federated Hermes Premier Municipal Income Fund

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November 10, 2025 · 9:01 AM UTC

Federated Hermes Premier Municipal Income Fund declares dividend

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November 5, 2025 · 4:05 PM UTC

Federated Hermes announces portfolio manager retirements and related portfolio management transition plans

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October 30, 2025 · 4:17 PM UTC

Federated Hermes, Inc. reports record assets under management with third quarter 2025 earnings

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October 23, 2025 · 4:17 PM UTC

Federated Hermes, Inc. agrees to acquire a majority interest in FCP Fund Manager, L.P., a privately held real estate investment manager with client assets of $3.8 billion as of June 30, 2025

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