Core Insights - Federated Hermes, Inc. reported a significant increase in earnings per diluted share (EPS) for Q4 2025, reaching $1.39, up from $1.04 in Q4 2024, with net income of $107.0 million compared to $84.7 million in the previous year [1][10] - The total managed assets reached a record $902.6 billion as of December 31, 2025, marking a 9% increase from $829.6 billion at the end of 2024 [2][10] - The company declared a quarterly dividend of $0.34 per share, payable on February 13, 2026 [3][10] Financial Performance - Q4 2025 revenue increased by $58.2 million or 14%, primarily due to higher average money market and equity assets [8] - Operating expenses rose by $33.0 million or 11%, mainly driven by increased distribution expenses and higher compensation costs [9] - For the full year 2025, total revenue was $1.800 billion, a 10% increase from $1.632 billion in 2024 [13][24] Asset Management - The average managed assets for Q4 2025 were $873.7 billion, up 9% from $804.4 billion in Q4 2024 [2] - Money market assets reached a record $682.6 billion, up 8% from $630.3 billion at the end of 2024 [7] - Equity assets increased by 23% to $97.9 billion, while fixed-income assets rose by 2% to $100.1 billion [4][5] Investment Strategies - The growth in managed assets was attributed to increased investor interest in liquidity products and a diverse range of investment solutions, including ETFs and separately managed accounts (SMAs) [3] - The top-selling equity funds in Q4 2025 included the Federated Hermes MDT Mid Cap Growth Fund and the Federated Hermes MDT Large Cap Growth Fund [4] - The company’s revenue composition for 2025 showed that 53% came from money market assets and 45% from long-term assets [14]

Financial Performance - Federated Hermes reported earnings per diluted share (EPS) of $1.34 for Q3 2025, an increase from $1.06 in Q3 2024, with net income rising to $104.1 million from $87.5 million year-over-year [1][21]. - Revenue for Q3 2025 increased by $61.0 million or 15% compared to Q3 2024, primarily due to higher average money market and equity assets [8][11]. - Operating expenses rose by $43.3 million or 15% in Q3 2025, driven by increased distribution expenses and fluctuations in foreign currency exchange rates [9][11]. Asset Management - Total managed assets reached a record $871.2 billion as of September 30, 2025, up $70.7 billion or 9% from $800.5 billion a year earlier [2][16]. - Money market assets also hit a record of $652.8 billion, increasing by $59.8 billion or 10% from $593.0 billion year-over-year [7][16]. - Equity assets grew to $94.7 billion, up $11.1 billion or 13% from the previous year, while fixed-income assets reached a record $101.8 billion, up $1.6 billion or 2% [4][5][16]. Fund Performance - The company experienced record net sales of equity funds in Q3 2025, with strong interest in its MDT equity and alternative quantitative investment offerings [3][16]. - Top-selling equity funds included the Federated Hermes MDT Mid Cap Growth Fund and the Federated Hermes MDT Large Cap Growth Fund [4]. - Fixed-income funds that performed well included the Federated Hermes Ultrashort Bond Fund and the Federated Hermes Sustainable Global Investment Grade Credit Fund [5]. Dividends and Shareholder Returns - The board of directors declared a dividend of $0.34 per share, payable on November 14, 2025, to shareholders of record as of November 7, 2025 [3][21]. - The company repurchased 20,808 shares of its class B common stock during Q3 2025 due to employee restricted stock forfeitures [3].

Financial Performance - Federated Hermes reported earnings per diluted share (EPS) of $1.16 for Q2 2025, a significant increase from $0.20 in Q2 2024, with net income rising to $91.0 million from $21.0 million year-over-year [1][8][13] - Revenue for Q2 2025 increased by $22.3 million or 6% compared to Q2 2024, primarily driven by higher average money market and equity assets [8][14] - Operating expenses decreased by $54.1 million or 15% in Q2 2025, mainly due to lower intangible asset-related expenses from the previous year's impairment [9][15] Asset Management - Total managed assets reached a record $845.7 billion as of June 30, 2025, up $63.0 billion or 8% from $782.7 billion a year earlier [2][36] - Equity assets increased to $89.0 billion, up $11.1 billion or 14% from the previous year, while fixed-income assets rose to $98.7 billion, up $3.4 billion or 4% [4][5] - Money market assets also saw growth, reaching $634.4 billion, an increase of $47.8 billion or 8% from June 30, 2024 [7][36] Investment Strategies - The company experienced strong demand for its microshort and ultrashort funds, appealing to investors focused on capital preservation and liquidity [3] - Federated Hermes' MDT strategies saw assets grow to $23.2 billion, up $6.4 billion from Q1 2025 and $8.9 billion year-to-date [13] Shareholder Returns - The board of directors declared a dividend of $0.34 per share, payable on August 15, 2025 [3][13] - The company repurchased 1,547,182 shares of its class B common stock for $64.5 million during Q2 2025 and authorized a new share repurchase program for an additional 5 million shares [3][13]