Federated Hermes reported strong full-year and fourth-quarter results, driven by record assets under management, particularly in money market products. The company saw significant growth in net income and EPS, reflecting higher average assets and improved investment income.
Full-year 2025 EPS was $5.13, a significant increase from $3.23 in 2024, driven by a $66.3 million non-cash expense in the prior year.
positiveTotal managed assets reached a record $902.6 billion at year-end 2025, up 9% year-over-year.
positiveMoney market assets reached a record $682.6 billion, up 8% year-over-year, with money market mutual fund assets also at a record.
positiveQuarterly dividend increased to $0.34 per share from $0.31 in the prior year's quarter.
positiveDistribution expenses increased by $24.3 million or 25% year-over-year in Q4 2025, primarily due to higher average money market fund assets.
attentionNonoperating income (expenses), net decreased by $6.1 million or 44% quarter-over-quarter due to a smaller increase in the market value of investments in Q4 2025 compared to Q3 2025.
attentionIntangible asset related expenses decreased significantly by 83% year-over-year for the full year, due to a $66.3 million impairment in Q2 2024.
neutralOther operating expenses decreased by $16.1 million year-over-year, primarily due to a VAT refund received in Q1 2025.
neutralMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Equity | N/A | — | — | — |
Fixed Income | N/A | — | — | — |
Alternative / Private Markets | N/A | — | — | — |
Multi-Asset | N/A | — | — | — |
Money Market | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Record assets under management driven by money market increases and attractive cash management opportunities.
Investor interest continues in solutions beyond mutual funds, including ETFs, CITs, and SMAs.
SMA net sales led by specific strategies like MDT All Cap Core and MDT Mid Cap Growth.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.