$FHI

FEDERATED INVESTORS INC /PA/

CIK:0001056288|SEC Filings

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenue
Total Revenue	$ 502,776	$ 424,844	$ 981,733	$ 848,384
Operating Expenses
Compensation and Related	161,528	144,872	315,647	288,143
Distribution	121,766	99,399	247,510	198,484
Systems and Communications	25,950	23,481	52,413	47,707
Professional Service Fees	25,610	18,628	46,946	37,176
Office and Occupancy	9,836	9,910	19,898	19,862
Advertising and Promotional	7,329	6,146	11,427	10,722
Travel and Related	4,558	4,117	8,408	7,670
Intangible Asset Related	6,384	3,503	9,805	6,699
Other	6,934	(2,296)	10,467	(16,935)
Total Operating Expenses	369,895	307,760	722,521	599,528
Operating Income	132,881	117,084	259,212	248,856
Nonoperating Income (Expenses)
Investment Income, net	3,725	5,734	9,965	12,247
Gain (Loss) on Securities, net	10,605	11,213	11,019	12,175
Debt Expense	(3,159)	(3,170)	(6,344)	(6,349)
Other, net	(22)	(35)	(53)	(62)
Total Nonoperating Income (Expenses), net	11,149	13,742	14,587	18,011
Income Before Income Taxes	144,030	130,826	273,799	266,867
Income Tax Provision	37,216	34,135	71,039	66,300
Net Income Including the Noncontrolling Interests in Subsidiaries	106,814	96,691	202,760	200,567
Less: Net Income (Loss) Attributable to the Noncontrolling Interests in Subsidiaries	2,496	5,691	2,064	8,433
Net Income	$ 104,318	$ 91,000	$ 200,696	$ 192,134
Amounts Attributable to Federated Hermes, Inc.
Earnings Per Common Share—Basic (usd per share)	$ 1.38	$ 1.16	$ 2.65	$ 2.40
Earnings Per Common Share—Diluted (usd per share)	1.38	1.16	2.65	2.40
Cash Dividends Per Share (usd per share)	$ 0.38	$ 0.34	$ 0.72	$ 0.65
Investment Advisory Fees, net \| Affiliates
Revenue
Total Revenue	$ 267,936	$ 225,347	$ 520,340	$ 448,720
Investment Advisory Fees, net \| Other
Revenue
Total Revenue	69,785	62,088	136,789	126,175
Administrative Service Fees, net—Affiliates \| Affiliates
Revenue
Total Revenue	110,117	101,657	220,402	202,766
Other Service Fees, net \| Affiliates
Revenue
Total Revenue	46,201	30,442	90,989	61,309
Other Service Fees, net \| Other
Revenue
Total Revenue	$ 8,737	$ 5,310	$ 13,213	$ 9,414

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating Activities
Net Income Including the Noncontrolling Interests in Subsidiaries	$ 202,760	$ 200,567
Adjustments to Reconcile Net Income to Net Cash Provided (Used) by Operating Activities
Depreciation and Amortization	13,291	11,053
Share-Based Compensation Expense	18,518	17,509
(Gain) Loss on Disposal of Assets	(3,703)	(3,232)
Provision (Benefit) for Deferred Income Taxes	(552)	(849)
Net Unrealized (Gain) Loss on Investments	(7,316)	(8,943)
Net Sales (Purchases) of Investments—Consolidated Investment Companies	(31,773)	(83,444)
Other Changes in Assets and Liabilities:
(Increase) Decrease in Receivables, net	(5,278)	(5,507)
(Increase) Decrease in Prepaid Expenses and Other Assets	(4,132)	(3,748)
Increase (Decrease) in Accounts Payable and Accrued Expenses	(68,608)	(79,061)
Increase (Decrease) in Other Liabilities	(3,480)	(11,259)
Net Cash Provided (Used) by Operating Activities	109,727	33,086
Investing Activities
Purchases of Investments—Affiliates and Other	(7,567)	(2,738)
Cash Paid for Business Acquisitions, Net of Cash Acquired	(213,025)	(12,755)
Proceeds from Redemptions of Investments—Affiliates and Other	11,535	5,735
Cash Paid for Property and Equipment	(6,039)	(1,758)
Other Investing Activities	0	(6,028)
Net Cash Provided (Used) by Investing Activities	(215,096)	(17,544)
Financing Activities
Dividends Paid	(54,735)	(52,151)
Purchases of Treasury Stock	(128,733)	(185,655)
Distributions to Noncontrolling Interests in Subsidiaries	(13,881)	(21,903)
Contributions from Noncontrolling Interests in Subsidiaries	22,831	90,440
Other Financing Activities	305	8
Net Cash Provided (Used) by Financing Activities	(174,213)	(169,261)
Effect of Exchange Rates on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	(2,513)	17,622
Net Increase (Decrease) in Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	(282,095)	(136,097)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Beginning of Period	584,381	507,567
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, End of Period	302,286	371,470
Less: Restricted Cash and Restricted Cash Equivalents Recorded in Other Long-Term Assets	559	483
Cash and Cash Equivalents	$ 301,727	$ 370,987

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current Assets
Cash and Cash Equivalents	$ 301,727	$ 582,542
Prepaid Expenses	42,978	36,832
Other Current Assets	13,015	12,885
Total Current Assets	660,505	863,792
Long-Term Assets
Goodwill	1,081,061	852,102
Intangible Assets, net of accumulated amortization of $103,643 and $95,365, respectively	421,814	331,510
Property and Equipment, net of accumulated depreciation of $89,199 and $86,955, respectively	26,405	24,838
Right-of-Use Assets, net	90,517	95,793
Other Long-Term Assets	49,852	61,302
Total Long-Term Assets	1,669,649	1,365,545
Total Assets	2,330,154	2,229,337
Current Liabilities
Accounts Payable and Accrued Expenses	104,443	99,046
Accrued Compensation and Benefits	108,066	176,329
Lease Liabilities	19,961	20,147
Other Current Liabilities	22,330	18,619
Total Current Liabilities	254,800	314,141
Long-Term Liabilities
Long-Term Debt	348,499	348,369
Long-Term Deferred Tax Liability, net	182,661	183,542
Long-Term Lease Liabilities	83,482	88,491
Other Long-Term Liabilities	63,858	31,317
Total Long-Term Liabilities	678,500	651,719
Total Liabilities	933,300	965,860
Commitments and Contingencies (Note (17))
TEMPORARY EQUITY
Redeemable Noncontrolling Interests in Subsidiaries	144,164	66,529
Federated Hermes, Inc. Shareholders’ Equity
Additional Paid-In Capital from Treasury Stock Transactions	8,262	0
Retained Earnings	1,668,693	1,531,076
Treasury Stock, at Cost, 24,596,462 and 23,118,490 Shares Class B Common Stock, respectively	(973,836)	(873,214)
Accumulated Other Comprehensive Income (Loss), net of tax	(1,521)	6,484
Total Permanent Equity	1,252,690	1,196,948
Total Liabilities, Temporary Equity and Permanent Equity	2,330,154	2,229,337
Investments—Consolidated Investment Companies
Current Assets
Investments	118,883	85,501
Affiliates
Current Assets
Investments	60,100	56,254
Receivables	51,013	42,225
Receivables, net of reserve of $21 and $21, respectively
Current Assets
Receivables	72,789	47,553
Class A
Federated Hermes, Inc. Shareholders’ Equity
Common Stock	189	189
Class B
Federated Hermes, Inc. Shareholders’ Equity
Common Stock	$ 550,903	$ 532,413