Federated Hermes Inc.

04/30/2026 | Press release | Distributed by Public on 04/30/2026 14:10

Q1 2026 Financials

Income Statement QTD

FEDERATED HERMES, INC.
Excel version of financial statements provided for informational purposes only.
Please consult full press release for a complete review of quarterly earnings.
Unaudited Condensed Consolidated Statements of Income
(in thousands, except per share data)
Quarter Ended % Change Q1 2025 to Q1 2026 Quarter Ended % Change Q4 2025 to Q1 2026
March 31, 2026 March 31, 2025 Dec. 31, 2025
Revenue
Investment advisory fees, net $ 319,408 $ 287,460 11 % $ 313,975 2 %
Administrative service fees, net-affiliates 110,285 101,109 9 % 109,759 0 %
Other service fees, net 49,264 34,971 41 % 59,099 (17)%
Total Revenue 478,957 423,540 13 % 482,833 (1)%
Operating Expenses
Compensation and related 154,119 143,270 8 % 144,981 6 %
Distribution 125,745 99,085 27 % 122,339 3 %
Systems and communications 26,463 24,226 9 % 24,719 7 %
Professional service fees 21,336 18,548 15 % 23,399 (9)%
Office and occupancy 10,062 9,952 1 % 9,704 4 %
Advertising and promotional 4,098 4,576 (10)% 7,001 (41)%
Travel and related 3,850 3,553 8 % 4,677 (18)%
Intangible asset related 3,422 3,196 7 % 3,475 (2)%
Other 3,531 (14,638) (124)% 6,964 (49)%
Total Operating Expenses 352,626 291,768 21 % 347,259 2 %
Operating Income 126,331 131,772 (4)% 135,574 (7)%
Nonoperating Income (Expenses)
Investment income (loss), net 6,653 7,475 (11)% 7,886 (16)%
Debt expense (3,185) (3,179) 0 % (3,201) (0)%
Other, net (30) (27) (11)% 73 (141)%
Total Nonoperating Income (Expenses), net 3,438 4,269 (19)% 4,758 (28)%
Income before income taxes 129,769 136,041 (5)% 140,332 (8)%
Income tax provision 33,823 32,165 5 % 32,899 3 %
Net income including the noncontrolling interests in subsidiaries 95,946 103,876 (8)% 107,433 (11)%
Less: Net income (loss) attributable to the noncontrolling interests in subsidiaries (432) 2,742 (116)% 394 (210)%
Net Income $ 96,378 $ 101,134 (5)% $ 107,039 (10)%
Amounts Attributable to Federated Hermes, Inc.
Earnings Per Share1
Basic and diluted $ 1.27 $ 1.25 2 % $ 1.39 (9)%
Weighted-Average Shares Outstanding
Basic 72,648 77,541 73,795
Diluted 72,650 77,542 73,795
Dividends Declared Per Share $ 0.34 $ 0.31 $ 0.34
1) Unvested share-based awards that receive non-forfeitable dividend rights are deemed participating securities and are required to be considered in the computation of earnings per share under the "two-class method." As such, total net income of $4.4 million, $4.5 million and $4.8 million available to unvested restricted Federated Hermes shareholders for the quarterly periods ended March 31, 2026, March 31, 2025 and Dec. 31, 2025, respectively, was excluded from the computation of earnings per share.

Balance Sheet

FEDERATED HERMES, INC.
Excel version of financial statements provided for informational purposes only.
Please consult full press release for a complete review of quarterly earnings.
Unaudited Condensed Consolidated Balance Sheets
(in thousands) March 31, 2026 Dec. 31, 2025
Assets
Cash and other investments $ 645,417 $ 724,297
Other current assets 143,153 139,495
Intangible assets, net, including goodwill 1,173,986 1,183,612
Other long-term assets 181,251 181,933
Total Assets $ 2,143,807 $ 2,229,337
Liabilities, Redeemable Noncontrolling Interests and Equity
Current liabilities $ 240,680 $ 314,141
Long-term debt 348,434 348,369
Other long-term liabilities 291,853 303,350
Redeemable noncontrolling interests 58,520 66,529
Equity excluding treasury stock 2,133,825 2,070,162
Treasury stock (929,505) (873,214)
Total Liabilities, Redeemable Noncontrolling Interests and Equity $ 2,143,807 $ 2,229,337

LT Flows by asset class

FEDERATED HERMES, INC.
Excel version of financial statements provided for informational purposes only.
Please consult full press release for a complete review of quarterly earnings.
Unaudited Changes in Long-Term Assets - By Asset Class
(in millions) Quarter Ended
March 31, 2026 Dec. 31, 2025 March 31, 2025
Equity
Beginning assets $ 97,898 $ 94,656 $ 79,423
Sales1 9,091 8,949 7,412
Redemptions1 (6,878) (7,431) (5,993)
Net sales (redemptions)1 2,213 1,518 1,419
Net exchanges (139) 139 (114)
Impact of foreign exchange2 (287) 107 754
Market gains and (losses)3 1,147 1,478 (569)
Ending assets $ 100,832 $ 97,898 $ 80,913
Fixed Income
Beginning assets $ 100,127 $ 101,813 $ 98,059
Sales1 5,927 5,891 5,944
Redemptions1 (6,349) (8,687) (6,288)
Net sales (redemptions)1 (422) (2,796) (344)
Net exchanges 148 15 101
Impact of foreign exchange2 (40) 6 85
Market gains and (losses)3 (15) 1,089 1,585
Ending assets $ 99,798 $ 100,127 $ 99,486
Alternative/Private Markets
Beginning assets $ 19,101 $ 19,024 $ 18,864
Sales1 629 724 1,085
Redemptions1 (547) (592) (1,024)
Net sales (redemptions)1 82 132 61
Net exchanges 0 0 1
Impact of foreign exchange2 (275) 35 532
Market gains and (losses)3 83 (90) (32)
Ending assets $ 18,991 $ 19,101 $ 19,426
Multi-asset
Beginning assets $ 2,854 $ 2,940 $ 2,883
Sales1 58 59 63
Redemptions1 (94) (92) (105)
Net sales (redemptions)1 (36) (33) (42)
Net exchanges 1 (121) 2
Market gains and (losses)3 (41) 68 (17)
Ending assets $ 2,778 $ 2,854 $ 2,826
Total Long-term Assets
Beginning assets $ 219,980 $ 218,433 $ 199,229
Sales1 15,705 15,623 14,504
Redemptions1 (13,868) (16,802) (13,410)
Net sales (redemptions)1 1,837 (1,179) 1,094
Net exchanges 10 33 (10)
Impact of foreign exchange2 (602) 148 1,371
Market gains and (losses)3 1,174 2,545 967
Ending assets $ 222,399 $ 219,980 $ 202,651
1) For certain accounts, including separately managed accounts, institutional accounts, certain sub-advised funds and other managed products, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return. 2) Reflects the impact of translating non-U.S. dollar denominated assets under management (AUM) into U.S. dollars for reporting purposes. 3) Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income.

LT Flows by asset & product

FEDERATED HERMES, INC.
Excel version of financial statements provided for informational purposes only.
Please consult full press release for a complete review of quarterly earnings.
Unaudited Changes in Long-Term Assets - By Asset Class and Offering Type
(in millions)
Quarter Ended
March 31, 2026
Equity Fixed Income Alternative / Private Markets Multi-asset Total
Funds Separate Accounts1 Funds Separate Accounts1 Funds Separate Accounts1 Funds Separate Accounts1 Funds Separate Accounts1
Beginning assets $ 54,988 $ 42,910 $ 45,973 $ 54,154 $ 12,085 $ 7,016 $ 2,850 $ 4 $ 115,896 $ 104,084
Sales 5,855 3,236 3,985 1,942 609 20 58 0 10,507 5,198
Redemptions (4,561) (2,317) (3,993) (2,356) (318) (229) (94) 0 (8,966) (4,902)
Net sales (redemptions) 1,294 919 (8) (414) 291 (209) (36) 0 1,541 296
Net exchanges (169) 30 148 0 0 0 1 0 (20) 30
Impact of foreign exchange2 (158) (129) (26) (14) (159) (116) 0 0 (343) (259)
Market gains and losses3 (767) 1,914 (166) 151 122 (39) (41) 0 (852) 2,026
Ending assets $ 55,188 $ 45,644 $ 45,921 $ 53,877 $ 12,339 $ 6,652 $ 2,774 $ 4 $ 116,222 $ 106,177
1) Includes separately managed accounts, institutional accounts, certain sub-advised funds and other managed offerings. For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return. 2) Reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes. 3) Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income.

LT Flows by product type

FEDERATED HERMES, INC.
Excel version of financial statements provided for informational purposes only.
Please consult full press release for a complete review of quarterly earnings.
Unaudited Total Changes in Long-Term Assets - By Offering Type
(in millions) Quarter Ended
March 31, 2026 Dec. 31, 2025 March 31, 2025
Total Fund Assets
Beginning assets $ 115,896 $ 115,215 $ 103,567
Sales 10,507 10,419 9,279
Redemptions (8,966) (10,835) (8,763)
Net sales (redemptions) 1,541 (416) 516
Net exchanges (20) 33 0
Impact of foreign exchange1 (343) 34 685
Market gains and (losses)2 (852) 1,030 (479)
Ending assets $ 116,222 $ 115,896 $ 104,289
Total Separate Account Assets3
Beginning assets $ 104,084 $ 103,218 $ 95,662
Sales4 5,198 5,204 5,225
Redemptions4 (4,902) (5,967) (4,647)
Net sales (redemptions)4 296 (763) 578
Net exchanges 30 0 (10)
Impact of foreign exchange1 (259) 114 686
Market gains and (losses)2 2,026 1,515 1,446
Ending assets $ 106,177 $ 104,084 $ 98,362
Total Long-term Assets3
Beginning assets $ 219,980 $ 218,433 $ 199,229
Sales4 15,705 15,623 14,504
Redemptions4 (13,868) (16,802) (13,410)
Net sales (redemptions)4 1,837 (1,179) 1,094
Net exchanges 10 33 (10)
Impact of foreign exchange1 (602) 148 1,371
Market gains and (losses)2 1,174 2,545 967
Ending assets $ 222,399 $ 219,980 $ 202,651
1) Reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes. 2) Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income. 3) Includes separately managed accounts, institutional accounts, certain sub-advised funds and other managed offerings. 4) For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.

AUM

FEDERATED HERMES, INC.
Excel version of financial statements provided for informational purposes only.
Please consult full press release for a complete review of quarterly earnings.
Unaudited Managed Assets
(in millions) March 31, 2026 Dec. 31, 2025 Sept. 30, 2025 June 30, 2025 March 31, 2025
By Asset Class
Equity $ 100,832 $ 97,898 $ 94,656 $ 88,994 $ 80,913
Fixed-Income 99,798 100,127 101,813 98,687 99,486
Alternative / Private Markets 18,991 19,101 19,024 20,738 19,426
Multi-Asset 2,778 2,854 2,940 2,856 2,826
Total Long-Term Assets 222,399 219,980 218,433 211,275 202,651
Money Market 684,748 682,604 652,767 634,400 637,122
Total Managed Assets $ 907,147 $ 902,584 $ 871,200 $ 845,675 $ 839,773
By Offering Type
Funds:
Equity $ 55,188 $ 54,988 $ 54,110 $ 49,359 $ 43,910
Fixed-Income 45,921 45,973 46,478 45,415 45,800
Alternative / Private Markets 12,339 12,085 11,814 12,905 11,879
Multi-Asset 2,774 2,850 2,813 2,730 2,700
Total Long-Term Assets 116,222 115,896 115,215 110,409 104,289
Money Market 502,775 508,403 492,701 468,044 464,912
Total Fund Assets $ 618,997 $ 624,299 $ 607,916 $ 578,453 $ 569,201
Separate Accounts:
Equity $ 45,644 $ 42,910 $ 40,546 $ 39,635 $ 37,003
Fixed-Income 53,877 54,154 55,335 53,272 53,686
Alternative / Private Markets 6,652 7,016 7,210 7,833 7,547
Multi-Asset 4 4 127 126 126
Total Long-Term Assets 106,177 104,084 103,218 100,866 98,362
Money Market 181,973 174,201 160,066 166,356 172,210
Total Separate Account Assets $ 288,150 $ 278,285 $ 263,284 $ 267,222 $ 270,572
Total Managed Assets $ 907,147 $ 902,584 $ 871,200 $ 845,675 $ 839,773

AUM Average QTR

FEDERATED HERMES, INC.
Excel version of financial statements provided for informational purposes only.
Please consult full press release for a complete review of quarterly earnings.
Unaudited Average Managed Assets Quarter Ended
(in millions) March 31, 2026 Dec. 31, 2025 Sept. 30, 2025 June 30, 2025 March 31, 2025
By Asset Class
Equity $ 102,037 $ 96,404 $ 92,436 $ 83,564 $ 82,105
Fixed-Income 100,996 100,855 99,206 98,365 99,360
Alternative / Private Markets 19,232 18,971 19,862 20,053 19,012
Multi-Asset 2,859 2,836 2,895 2,779 2,900
Total Long-Term Assets 225,124 219,066 214,399 204,761 203,377
Money Market 690,450 654,635 645,092 632,543 639,827
Total Avg. Managed Assets $ 915,574 $ 873,701 $ 859,491 $ 837,304 $ 843,204
By Offering Type
Funds:
Equity $ 56,987 $ 55,101 $ 51,828 $ 45,965 $ 45,260
Fixed-Income 46,096 46,116 45,743 44,972 45,715
Alternative / Private Markets 12,254 11,871 12,347 12,370 11,610
Multi-Asset 2,855 2,833 2,770 2,654 2,774
Total Long-Term Assets 118,192 115,921 112,688 105,961 105,359
Money Market 507,752 493,355 482,237 462,683 463,727
Total Avg. Fund Assets $ 625,944 $ 609,276 $ 594,925 $ 568,644 $ 569,086
Separate Accounts:
Equity1 $ 45,050 $ 41,303 $ 40,608 $ 37,599 $ 36,845
Fixed-Income 54,900 54,739 53,463 53,393 53,645
Alternative / Private Markets 6,978 7,100 7,515 7,683 7,402
Multi-Asset1 4 3 125 125 126
Total Long-Term Assets 106,932 103,145 101,711 98,800 98,018
Money Market 182,698 161,280 162,855 169,860 176,100
Total Avg. Separate Account Assets $ 289,630 $ 264,425 $ 264,566 $ 268,660 $ 274,118
Total Avg. Managed Assets $ 915,574 $ 873,701 $ 859,491 $ 837,304 $ 843,204
1) A Separate Account was reclassified from Multi-Asset to Equity effective October 1, 2025.
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