Federated Hermes, Inc. reported a significant increase in financial performance for the third quarter of 2025, with total revenue reaching $469.4 million, up 15% from $408.5 million in the same period last year. For the nine months ending September 30, 2025, revenue also rose to $1.32 billion, a 9% increase compared to $1.21 billion in 2024. The growth was primarily driven by higher investment advisory fees, which increased by $31.3 million from money market assets and $15.4 million from equity assets. Net income for the quarter was $104.1 million, compared to $87.5 million in the prior year, resulting in earnings per share of $1.34, up from $1.06.
The company experienced notable changes in its asset management, with total managed assets increasing by 9% year-over-year to $871.2 billion as of September 30, 2025. This growth was attributed to a 10% rise in money market assets and a 13% increase in equity assets, reflecting favorable market conditions. However, alternative/private market assets saw an 8% decline, primarily due to net redemptions. The firm’s average managed assets also rose by 8% for both the three and nine months ended September 30, 2025, compared to the same periods in 2024.
Strategically, Federated Hermes made significant moves, including the acquisition of a 60% equity interest in Rivington Energy Management Limited, a U.K.-based renewable energy project development firm, for approximately $30 million. This acquisition is expected to enhance Federated Hermes' growth in international markets. Additionally, the company has been actively repurchasing shares, with approximately 4.6 million shares of Class B common stock repurchased for $184.7 million during the nine months ended September 30, 2025.
Operationally, Federated Hermes reported a decrease in accrued compensation and benefits, which fell by $20.7 million, reflecting the payment of 2024 incentive compensation. The company’s total operating expenses for the third quarter increased by $43.3 million, primarily due to higher distribution expenses linked to increased money market fund assets. The firm’s liquidity position remains strong, with liquid assets totaling $717.9 million as of September 30, 2025, compared to $694.1 million at the end of 2024.
Looking ahead, Federated Hermes anticipates continued growth driven by its strategic acquisitions and market conditions. The company is also preparing for the acquisition of a majority interest in FCP Fund Manager, L.P., a U.S.-based real estate investment manager, for up to $331 million, which is expected to close in the first half of 2026. The firm remains focused on maintaining its competitive edge in the investment management sector while navigating the complexities of regulatory changes and market dynamics.
About FEDERATED HERMES, INC.
Federated Hermes, Inc. is a global investment management firm offering active strategies across equity, fixed-income, money market, and alternative/private markets. Serving institutional, retail, and international clients, it manages over $829 billion in assets. The company provides investment advisory, stewardship, and real estate services, leveraging proprietary research and ESG integration to deliver long-term, risk-adjusted financial value. Its business model centers on asset-based fees from diverse investment products and client segments.
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