Filing Flows › Federated Hermes (FHI) › Q2 2025
Federated Hermes (FHI) Q2 2025 earnings results (second quarter 2025)
10-Q filed Aug 1, 2025
Federated Hermes (FHI) reported revenue of $425M for the second quarter 2025 (Q2 2025), +6% from a year earlier and +0.3% from the quarter before. Operating margin was 27.6%, net earnings $91.0M (21.4% of revenue).
Federated Hermes, Q2 2025: revenue $425M (+6% year over year), operating margin 27.6%, net earnings $91.0M, operating cash flow $18.8M. The chart follows the revenue to costs, profit and cash.
| Q2 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $425M | +0.3% | +6% |
| Operating profit | $117M | -11% | +188% |
| Net earnings | $91.0M | -10% | +333% |
| Operating cash flow | $18.8M | +31% | -79% |
| Free cash flow | $18.0M | +35% | -78% |
What changed
Revenue was $424.8M in Q2 2025, up 6% 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 $18.8M year over year (up 6%), 84% of the total change.
Operating profit was $117.1M, a 27.6% margin (up 17.4 points year over year). Of the extra revenue versus a year earlier, 343% reached operating profit, above the 10% margin then. Total costs fell 15% while revenue rose 6%. Net earnings were $91.0M, up 333% year over year. The effective tax rate was 26.1%.
Operating cash flow was $18.8M (down 79% year over year), 19% of net income including minority interests. Non-cash charges added back $6.4M of share-based compensation. Working capital and other items used $84.3M. Capital expenditures of $786K left free cash flow of $18.0M.
Questions
What was Federated Hermes' revenue in the second quarter 2025?
Federated Hermes (FHI) reported revenue of $425M for the second quarter 2025 (Q2 2025), +6% from a year earlier and +0.3% from the quarter before.
Was Federated Hermes profitable in the second quarter 2025?
Operating profit was $117M (27.6% of revenue) and net earnings $91.0M.
Source: Federated Hermes 10-Q on SEC EDGAR.