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Asset management · Financial Services · Fiscal year ends Dec 31
Federated Hermes reported revenue of $1.8B in the fiscal year ended Dec 2025, up 10.3% from the year before. Operating income was $514M, an operating margin of 28.5%, and net income was $403M. Operating cash flow of $297M less capital expenditure of $3M left free cash flow of $295M. It held more cash than debt (net cash $234M).
Ranks among the 28 asset management companies we cover (1st = best; for debt, the least indebted). Green = top third, red = bottom third.
Last 5 fiscal years
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Revenue | 1,300 | 1,446 | 1,610 | 1,632 | 1,801 |
| Operating income | 366 | 337 | 388 | 361 | 514 |
| Interest expense | 1.8 | 11.1 | 12.5 | 12.7 | 12.7 |
| Pre-tax income | 376 | 306 | 411 | 382 | 548 |
| Income tax | 104 | 71.7 | 107 | 113 | 133 |
| Net income | 270 | 239 | 299 | 268 | 403 |
| Diluted EPS | 2.75 | 2.65 | 3.40 | 3.23 | 5.13 |
| Diluted shares | 93.8 | 85.8 | 83.9 | 79.4 | 75.1 |
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Cash & equivalents | 233 | 337 | 383 | 504 | 583 |
| Receivables | 65.3 | 58.1 | – | – | – |
| Current assets | 559 | 651 | 721 | 781 | 864 |
| Net PP&E | 47.0 | 35.7 | 30.7 | 25.6 | 24.8 |
| Goodwill | 799 | 800 | 807 | 805 | 852 |
| Total assets | 2,018 | 2,020 | 2,102 | 2,085 | 2,229 |
| Current liabilities | 271 | 257 | 287 | 289 | 314 |
| Long-term debt | 223 | 348 | 348 | 348 | 348 |
| Total liabilities | 841 | 913 | 948 | 934 | 966 |
| Shareholders' equity | 1,114 | 1,046 | 1,128 | 1,095 | 1,197 |
| Backlog (remaining obligations) | 19.0 | 14.3 | 14.9 | 13.0 | 13.0 |
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Operating cash flow | 170 | 324 | 312 | 347 | 297 |
| Capital expenditure | 10.4 | 4.4 | 7.9 | 4.0 | 2.8 |
| Free cash flow | 160 | 320 | 304 | 343 | 295 |
| Depreciation & amortisation | 15.4 | 15.1 | 13.0 | 9.1 | 8.3 |
| Stock-based compensation | 30.3 | 34.8 | 33.9 | 28.8 | 29.1 |
| Acquisitions | 0.0 | 28.1 | 0.0 | 0.0 | 12.8 |
| Share buybacks | 228 | 218 | 177 | 138 | 263 |
| Dividends paid | 106 | 97.9 | 98.1 | 185 | 105 |
| Dividend per share | 1.08 | 1.08 | 1.11 | 2.21 | 1.33 |
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Revenue growth (YoY) | – | 11.2% | 11.3% | 1.4% | 10.3% |
| Operating income growth (YoY) | – | −8.0% | 15.1% | −6.7% | 42.2% |
| EPS growth (YoY) | – | −3.6% | 28.3% | −5.0% | 58.8% |
| Operating margin | 28.2% | 23.3% | 24.1% | 22.1% | 28.5% |
| Net margin | 20.8% | 16.6% | 18.6% | 16.4% | 22.4% |
| Return on equityBlank when equity is negative | 24.3% | 22.9% | 26.5% | 24.5% | 33.7% |
| ROCEEBIT ÷ (assets − current liabilities) | 21.0% | 19.1% | 21.4% | 20.1% | 26.8% |
| Free cash flow margin | 12.3% | 22.1% | 18.9% | 21.0% | 16.4% |
| Cash conversion (CFO ÷ net income) | 0.63x | 1.35x | 1.04x | 1.29x | 0.74x |
| Receivable days | 18 | 15 | – | – | – |
| Interest cover | 205x | 30.4x | 31.0x | 28.5x | 40.4x |
| Debt ÷ equity | 0.20x | 0.33x | 0.31x | 0.32x | 0.29x |
| Net debtDebt − cash & equivalents; excludes investments; negative = net cash | −10.0 | 10.8 | −35.3 | −156 | −234 |
| Current ratio | 2.07x | 2.53x | 2.51x | 2.70x | 2.75x |
Standardised figures from the company's XBRL filings with the SEC (10-K, 10-Q). Line items follow US GAAP tags, so a company's own statement layout may differ and some lines show “–” where the company does not report that item. Ratios are calculated from these figures. For education only; not investment advice or a recommendation.