Core Insights - Federated Hermes reported Q2 2025 earnings with GAAP EPS of $1.16, exceeding analyst expectations of $1.03 and significantly up from $0.20 in the prior year [1][2] - Total revenue for the quarter was $424.8 million, slightly above the estimate of $422.81 million and an increase from $402.6 million year-over-year [1][2] - The firm achieved record-high assets under management (AUM) of $845.7 billion as of June 30, 2025, marking an 8% increase from $782.7 billion in the previous year [1][2][5] Financial Performance - Net income for Q2 2025 reached $91.0 million, a 333.3% increase from $21.0 million in Q2 2024 [2][8] - Operating expenses decreased by 15% year-over-year, primarily due to the absence of a non-cash impairment charge from the previous year [7] - Nonoperating income rose from $1.9 million to $13.7 million, contributing positively to overall financial performance [7] Business Overview - Federated Hermes is an investment management firm with a diverse range of products, including money market funds, equity funds, fixed-income products, and alternative strategies [3] - The firm generates revenue mainly through fees based on AUM, with a strong emphasis on money market products [3] Strategic Focus - The company is focused on growing AUM, complying with regulations, and leveraging its distribution network [4] - Key success factors include investment performance, regulatory discipline, and innovation in product offerings [4] Segment Performance - Equity AUM increased by 14% to $89.0 billion, driven by strong demand for MDT strategies, which saw AUM rise to $23.2 billion [5][6] - Fixed-income AUM grew 4% year-over-year to $98.7 billion, despite a slight sequential decline [6] - Money market assets reached $634.4 billion, an 8% increase year-over-year, while alternative and private market AUM rose 3% to $20.7 billion [6][11] Product Development and Market Trends - The firm is investing in new product development, including blockchain for money market fund tokenization and expanding ETFs and collective investment trusts [12] - MDT strategies and alternatives are showing strong momentum, with net sales of over $2.5 billion in the previous quarter [10] Capital Return - The regular quarterly dividend was set at $0.34 per share, with ongoing share buybacks authorized for up to 5 million additional shares [9][13] Outlook - Management anticipates continued demand for MDT strategies and alternatives, with a positive pipeline for new mandates in equity and direct lending products [14]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________________________________________________________ FORM 10-Q ______________________________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 19 ...

Key Takeaways FHI posted Q2 EPS of $1.16, topping estimates and rising 20.8% from the prior-year quarter.Total revenues rose 6% to $424.8M, while operating expenses fell 15% to $307.8M.FHI's total managed assets hit a record $845.7B, up 8% y/y.Federated Hermes, Inc.’s (FHI) second-quarter 2025 adjusted earnings per share of $1.16 topped the Zacks Consensus Estimate of $1.02 per share. The bottom line grew 20.8% from the year-ago quarter.Increased net administrative service fees and net investment advisory f ...

Financial Data and Key Metrics Changes - The company ended Q2 with record assets under management of $846 billion, an increase driven by gains from equity strategies [3] - Equity assets increased by $8.1 billion or 10% from the prior quarter, with Q2 equity net sales of $1.8 billion representing an organic growth rate of just under 9% [3] - Total revenue for Q2 increased slightly from the prior quarter, primarily due to higher revenue from more days in the quarter and revenue related to the Rivington acquisition [13] - Total Q2 carried interest and performance fees were $1.4 million compared to $5.9 million in the previous quarter [13] Business Line Data and Key Metrics Changes - MDT equity strategies had net sales of $3.8 billion in Q2, up from $3.3 billion in Q1 [4] - Fixed income assets decreased by about $800 million or 1% in Q2, mainly due to net redemptions of $2.4 billion [5] - In the alternative private markets category, assets increased by $1.3 billion or 7% in Q2, primarily due to FX rates and net sales of $231 million [6] - Money market fund assets reached a record high of $468 billion, increasing by $3.1 billion in Q2 [10] Market Data and Key Metrics Changes - The company's estimate of money market mutual fund market share was about 7.11% at the end of Q2, up slightly from 7.1% at the end of Q1 [12] - Managed assets as of recent days were approximately $854 billion, including $642 billion in money markets, $91 billion in equities, and $98 billion in fixed income [13] Company Strategy and Development Direction - The company is actively participating in the development of tokenized money market funds and digital asset infrastructure, exploring opportunities for innovation in the digital assets arena [10][11] - The acquisition of Rivington Energy Management Limited enhances the company's private markets platform by adding project development expertise in the energy transition sector [7] - The company is focused on acquisitions, particularly in the private markets space, and is looking for opportunities to expand its portfolio [48] Management's Comments on Operating Environment and Future Outlook - Management views the tokenization of money market funds as incremental to the traditional money fund business, emphasizing the importance of daily liquidity at par for customers [20][22] - The company expects ongoing innovation and growth in the digital asset space, with a commitment to exploring new distribution methods for its products [11][28] - Management noted that while there is excitement around stablecoins, the actual assets are not yet substantial, indicating a cautious approach to growth in this area [55] Other Important Information - The company completed a share repurchase of approximately 1.5 million shares for about $64.5 million and approved a new program for an additional 5 million shares [15] - The effective tax rate for Q2 was 26.1%, with expectations for the rate to be in the 25% to 28% range for 2025 [14] Q&A Session Summary Question: Update on stablecoin tokenization and its impact on traditional money fund business - Management sees it as incremental, with new customers and opportunities, but emphasizes the need for daily liquidity at par [20][22] Question: Growth in stablecoins and its implications for money market funds - Management believes the current stablecoin market is concentrated and that the Genius Act will provide more definition on backing stablecoins, which could lead to increased supply [35] Question: Capacity concerns for MDT mid and small cap products - Management does not expect any capacity issues for the funds at this time, indicating robust methodologies [40] Question: Capital return priorities and M&A opportunities - The company prioritizes acquisitions as the best use of cash and is actively exploring opportunities in the private markets [48] Question: Tokenization's potential to expand the money market fund industry - Management believes it is too early to estimate the size of growth from tokenization, viewing it as an additional distribution method [56]

Federated Hermes (FHI) Q2 2025 Earnings Call August 01, 2025 09:00 AM ET Speaker0Greetings, and welcome to the Federated Hermes Incorporated Second Quarter twenty twenty five Analyst Call and Webcast. At this time, all participants are in a listen only mode and a question and answer session will follow the formal presentation. Please note, this conference is being recorded. I will now turn the conference over to your host, Mr. Raymond Hanley.Sir, the floor is yours.Speaker1Hello and welcome to our call. Lea ...

Analyst Update Data as of June 30, 2025 Federated Hermes, Inc. 1 25-30060 Forward-looking information This presentation is provided as of the date on the cover and contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Statements that do not relate strictly to historical or current facts are forward-looking, including those related to product performance, the potential for business g ...

(PITTSBURGH, Pa., July 31, 2025) — Federated Hermes, Inc. (NYSE: FHI), a global leader in active investing, today reported earnings per diluted share (EPS) of $1.16 for Q2 2025, compared to $0.20 for the same quarter last year, on net income of $91.0 million for Q2 2025, compared to $21.0 million for Q2 2024. Federated Hermes' Q2 2024 results included a $66.3 million non-cash expense, or ($0.76) per diluted share, related to the impairment of an indefinite-lived intangible asset. Federated Hermes' total man ...

A strong stock as of late has been Federated Hermes (FHI) . Shares have been marching higher, with the stock up 11.4% over the past month. The stock hit a new 52-week high of $47.3 in the previous session. Federated Hermes has gained 14.5% since the start of the year compared to the 9.2% move for the Zacks Finance sector and the 0.9% return for the Zacks Financial - Investment Management industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beat ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Federated Hermes (FHI) , which belongs to the Zacks Financial - Investment Management industry.This one of the nation's largest managers of money market funds has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 14.61%.For the last repo ...

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell even higher, with the expectation that established trends will continue [1] Company Overview: Federated Hermes (FHI) - Federated Hermes currently holds a Momentum Style Score of B, indicating a positive momentum outlook [3] - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [4] Performance Metrics - FHI shares have increased by 2.92% over the past week, outperforming the Zacks Financial - Investment Management industry, which rose by 1.91% [6] - Over the past month, FHI's price change is 8.15%, compared to the industry's 4.59% [6] - In the last quarter, FHI shares have risen by 23.29%, and over the past year, they have gained 37.45%, while the S&P 500 has increased by 19.67% and 12.87%, respectively [7] Trading Volume - The average 20-day trading volume for FHI is 592,996 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, five earnings estimates for FHI have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $4.20 to $4.36 [10] - For the next fiscal year, four estimates have also moved higher, with no downward revisions noted [10] Conclusion - Given the positive momentum indicators and earnings outlook, FHI is positioned as a strong buy candidate for investors seeking short-term opportunities [12]