Filing Flows › Federated Hermes (FHI) › Q1 2025
Federated Hermes (FHI) Q1 2025 earnings results (first quarter 2025)
10-Q filed Apr 25, 2025
Federated Hermes (FHI) reported revenue of $424M for the first quarter 2025 (Q1 2025), +7% from a year earlier and -0.3% from the quarter before. Operating margin was 31.1%, net earnings $101M (23.9% of revenue).
Federated Hermes, Q1 2025: revenue $424M (+7% year over year), operating margin 31.1%, net earnings $101M, operating cash flow $14.3M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $424M | -0.3% | +7% |
| Operating profit | $132M | +19% | +34% |
| Net earnings | $101M | +19% | +35% |
| Operating cash flow | $14.3M | -89% | +2% |
| Free cash flow | $13.3M | -89% | -1% |
What changed
Revenue was $423.5M in Q1 2025, up 7% year over year and roughly flat from the previous quarter. Federated Hermes Funds was the largest line at 84% of revenue. Federated Hermes Funds added $24.4M year over year (up 7%), 90% of the total change.
Operating profit was $131.8M, a 31.1% margin (up 6.2 points year over year). Of the extra revenue versus a year earlier, 122% reached operating profit, above the 25% margin then. Total costs fell 2% while revenue rose 7%. Net earnings were $101.1M, up 35% year over year. The effective tax rate was 23.6%.
Operating cash flow was $14.3M (up 2% year over year), 14% of net income including minority interests. Non-cash charges added back $11.1M of share-based compensation. Working capital and other items used $100.7M. Capital expenditures of $1.0M left free cash flow of $13.3M.
Questions
What was Federated Hermes' revenue in the first quarter 2025?
Federated Hermes (FHI) reported revenue of $424M for the first quarter 2025 (Q1 2025), +7% from a year earlier and -0.3% from the quarter before.
Was Federated Hermes profitable in the first quarter 2025?
Operating profit was $132M (31.1% of revenue) and net earnings $101M.
Source: Federated Hermes 10-Q on SEC EDGAR.