Federated Hermes | 10-Q: FY2025 Q2 Revenue Beats Estimate at USD 424.84 M

Revenue: As of FY2025 Q2, the actual value is USD 424.84 M, beating the estimate of USD 423.76 M.

EPS: As of FY2025 Q2, the actual value is USD 1.16, beating the estimate of USD 1.0236.

EBIT: As of FY2025 Q2, the actual value is USD 130.83 M.

Segment Revenue

• Investment Advisory Fees, net—Affiliates: $448.7 million for the six months ended June 30, 2025, compared to $413.9 million for the same period in 2024.
• Investment Advisory Fees, net—Other: $126.2 million for the six months ended June 30, 2025, compared to $121.0 million for the same period in 2024.
• Administrative Service Fees, net—Affiliates: $202.8 million for the six months ended June 30, 2025, compared to $190.1 million for the same period in 2024.

Operational Metrics

• Net Income: $192.1 million for the six months ended June 30, 2025, compared to $96.1 million for the same period in 2024.
• Operating Income: $248.9 million for the six months ended June 30, 2025, compared to $139.3 million for the same period in 2024.
• Operating Expenses: $599.5 million for the six months ended June 30, 2025, compared to $659.7 million for the same period in 2024.

Cash Flow

• Net Cash Provided by Operating Activities: $33.1 million for the six months ended June 30, 2025, compared to $102.7 million for the same period in 2024.
• Net Cash Used by Investing Activities: $17.5 million for the six months ended June 30, 2025.
• Net Cash Used by Financing Activities: $169.3 million for the six months ended June 30, 2025.

Unique Metrics

• Managed Assets: Total managed assets were $845.7 billion as of June 30, 2025, compared to $782.7 billion as of June 30, 2024.

Future Outlook and Strategy

• Core Business Focus: Federated Hermes plans to continue focusing on growth in markets outside the U.S., as evidenced by the acquisition of a majority equity interest in Rivington Energy Management Limited.
• Non-Core Business: The acquisition of Rivington Energy Management Limited is expected to accelerate growth in renewable energy project development, particularly in the U.K.

Priority

• Federated Hermes aims to maintain its competitive position by managing sovereign debt and currency risks, actively monitoring investment portfolios, and leveraging its experienced portfolio managers and analysts.