Filing Flows › Federated Hermes (FHI) › Q3 2025
Federated Hermes (FHI) Q3 2025 earnings results (third quarter 2025)
10-Q filed Oct 31, 2025
Federated Hermes (FHI) reported revenue of $469M for the third quarter 2025 (Q3 2025), +15% from a year earlier and +10% from the quarter before. Operating margin was 27.6%, net earnings $104M (22.2% of revenue).
Federated Hermes, Q3 2025: revenue $469M (+15% year over year), operating margin 27.6%, net earnings $104M, operating cash flow $103M. The chart follows the revenue to costs, profit and cash.
| Q3 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $469M | +10% | +15% |
| Operating profit | $129M | +11% | +16% |
| Net earnings | $104M | +14% | +19% |
| Operating cash flow | $103M | +449% | -12% |
| Free cash flow | $102M | +465% | -15% |
What changed
Revenue was $469.4M in Q3 2025, up 15% year over year and up 10% from the previous quarter. Federated Hermes Funds was the largest line at 84% of revenue. Federated Hermes Funds added $48.5M year over year (up 14%), 79% of the total change.
Operating profit was $129.5M, a 27.6% margin (up 0.2 points year over year). Of the extra revenue versus a year earlier, 29% reached operating profit, above the 27% margin then. Total costs grew 15% against revenue growth of 15%. The fastest-growing cost line was Other operating costs (+15%). Net earnings were $104.1M, up 19% year over year. The effective tax rate was 24.4%.
Operating cash flow was $103.1M (down 12% year over year), 97% of net earnings. Non-cash charges added back $5.7M of share-based compensation. Working capital and other items used $8.7M. Capital expenditures of $1.4M left free cash flow of $101.6M.
Questions
What was Federated Hermes' revenue in the third quarter 2025?
Federated Hermes (FHI) reported revenue of $469M for the third quarter 2025 (Q3 2025), +15% from a year earlier and +10% from the quarter before.
Was Federated Hermes profitable in the third quarter 2025?
Operating profit was $129M (27.6% of revenue) and net earnings $104M.
Source: Federated Hermes 10-Q on SEC EDGAR.