Federated(US:FHI)2025-10-30 21:27Financial Performance - Federated Hermes reported Q3 2025 earnings per diluted share (EPS) of $1.34, up 26.4% from $1.06 in Q3 2024, with net income of $104.1 million compared to $87.5 million last year[1][2]. - Revenue for Q3 2025 increased by $61.0 million or 15%, primarily due to higher average money market and equity assets[9][12]. - Total revenue for Q3 2025 reached $469,446,000, a 15% increase from $408,456,000 in Q3 2024[24]. - Net income for Q3 2025 was $104,126,000, reflecting a 19% growth compared to $87,538,000 in Q3 2024[24]. - Investment advisory fees, net, increased by 13% to $310,366,000 in Q3 2025 from $274,621,000 in Q3 2024[24]. - For the nine months ended September 30, 2025, total revenue was $1,317,830,000, a 9% increase from $1,207,410,000 in the same period of 2024[25]. - Net income for the nine months ended September 30, 2025, was $296,260,000, a 61% increase from $183,598,000 in the prior year[25]. Assets Under Management - Total assets under management reached a record $871.2 billion as of September 30, 2025, an increase of $70.7 billion or 9% from $800.5 billion a year earlier[2][7]. - Money market assets were a record $652.8 billion, up $59.8 billion or 10% from $593.0 billion at the same time last year[8][9]. - Fixed-income assets also reached a record $101.8 billion, increasing by $1.6 billion or 2% from $100.2 billion at September 30, 2024[5][7]. - Equity assets totaled $94.7 billion, up $11.1 billion or 13% from $83.6 billion a year ago[4][7]. - Alternative/private markets assets decreased to $19.0 billion, down $1.7 billion or 8% from the previous year[6][7]. - Total Managed Assets increased to $871,200 million as of September 30, 2025, up from $800,451 million a year earlier, representing a growth of 8.8%[34]. - Total long-term assets reached $218,433 million, an increase of 5.4% from $207,421 million in the same quarter last year[34]. Expenses - Operating expenses rose by $43.3 million or 15%, mainly due to increased distribution expenses and fluctuations in foreign currency exchange rates[10][12]. - Total operating expenses for Q3 2025 were $339,994,000, up 15% from $296,714,000 in Q3 2024[24]. Dividends - The company declared a dividend of $0.34 per share, payable on November 14, 2025[3][7]. Market Activity - Total sales for the quarter amounted to $15,105 million, compared to $14,054 million in the previous quarter, showing an increase of 7.5%[27]. - Total redemptions for the quarter were $15,245 million, slightly higher than $14,520 million in the previous quarter, reflecting an increase of 5.0%[27]. - Market gains for the quarter were $7,729 million, compared to $6,657 million in the previous quarter, representing a growth of 16.1%[27]. - Net sales (redemptions) for the quarter were a loss of $140 million, compared to a loss of $466 million in the previous quarter, indicating an improvement[27]. - The company reported a total of $43,663 million in sales for the nine months ended September 30, 2025, significantly up from $32,613 million in the same period last year, reflecting a year-over-year increase of 33.5%[27]. Equity and Liabilities - Total assets as of September 30, 2025, amounted to $2,182,270,000, compared to $2,084,684,000 at the end of 2024[26]. - Current liabilities decreased to $256,400,000 as of September 30, 2025, from $289,193,000 at the end of 2024[26]. - Equity excluding treasury stock increased to $1,993,883,000 as of September 30, 2025, from $1,728,044,000 at the end of 2024[26].