Revenue scaling has been consistent, with top-line growth reaching $479.0 million in 2026Q1, while gross margins improved to 72.6% in 2025Q4 following the normalization of fee waivers.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 |
|---|
| Net Interest Income | -2.98M | 12.56M | 26.07M | -12.52M | -2.1M | 1.39M | 4.12M | -5.04M | -5.88M | -4.77M | -4.17M | -4.3M | -9.61M | -12.46M | -14.44M | -17.05M | 0 | -4.67M | -683K | 1.28M | 1.34M | -17.89M | -21.17M | -4.8M | -4.79M | -29.72M | -34.18M | -31.8M | -27.7M | -18.9M |
| NII Growth % | 305.08% | -51.81% | 308.2% | -496.14% | -251.52% | -66.35% | 181.77% | 14.41% | -23.32% | -14.35% | 2.93% | 55.27% | 22.89% | 13.69% | 15.29% | - | 100% | -584.33% | -153.44% | -4.77% | 107.5% | 15.52% | -340.97% | -0.27% | 83.89% | 13.05% | -7.48% | -14.8% | -46.56% | - |
| Net Interest Margin % | -0.14% | 0.55% | 1.25% | -0.6% | -0.1% | 0.07% | 0.2% | -0.27% | -0.38% | -0.39% | -0.36% | -0.36% | -0.84% | -1.1% | -1.32% | -1.48% | 0% | -0.5% | -0.08% | 0.15% | 0.17% | -1.99% | -2.22% | -0.55% | -0.9% | -6.89% | -4.85% | -4.73% | -4.78% | -5.6% |
| Interest Income | 6.57M | 25.29M | 26.07M | 0 | 8.97M | 3.17M | 4.12M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.04M | 4.49M | 6.75M | 9.53M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 9.55M | 12.73M | 0 | 12.52M | 11.07M | 1.78M | 0 | 5.04M | 5.88M | 4.77M | 4.17M | 4.3M | 9.61M | 12.46M | 14.44M | 17.05M | 0 | 5.71M | 5.17M | 5.47M | 8.19M | 17.89M | 21.17M | 4.8M | 4.79M | 29.72M | 34.18M | 31.8M | 27.7M | 18.9M |
| Loan Loss Provision | 413.37M | 466.18M | 540.49M | 550.87M | 501.64M | 530.71M | 503.4M | 437.11M | 348.88M | 284.44M | 292.29M | 282.63M | 275.73M | 256.67M | 243.18M | 228.39M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Non-Interest Income | 1.85B | 1.79B | 1.61B | 1.61B | 1.44B | 1.3B | 1.44B | 1.33B | 1.14B | 1.1B | 1.14B | 926.61M | 859.25M | 878.37M | 945.71M | 895.11M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Non-Interest Income % | 99.65% | 98.6% | 98.4% | 100% | 99.38% | 99.76% | 99.72% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | - | 0% | 0% | 0% | 0% | - | - | - | - | - | - | - | - | - |
| Total Revenue | 1.86B | 1.81B | 1.63B | 1.61B | 1.45B | 1.3B | 1.45B | 1.33B | 1.14B | 1.1B | 1.14B | 926.61M | 859.25M | 878.37M | 945.71M | 895.11M | 0 | 1.04M | 4.49M | 6.75M | 9.53M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Revenue Growth % | 48.24% | 10.96% | 1.4% | 11.33% | 11.18% | -10.21% | 9.15% | 16.84% | 2.97% | -3.54% | 23.39% | 7.84% | -2.18% | -7.12% | 5.65% | - | -100% | -76.91% | -33.45% | -29.16% | - | - | - | - | - | - | - | - | - | - |
| Non-Interest Expense | 927.65M | 797.08M | 730.14M | 658.64M | 596.3M | 401.68M | 526.72M | 536.82M | 450.63M | 472.2M | 511.22M | 360.23M | 335.96M | 357.48M | 375.49M | 392.22M | -301.12M | -331.49M | -357.48M | -351.17M | -303.43M | -293.76M | -310.44M | -295.73M | -312.82M | -285.5M | -266.54M | -226.68M | -27.7M | -18.9M |
| Efficiency Ratio | 49.86% | 44.01% | 44.74% | 40.92% | 41.24% | 30.89% | 36.37% | 40.46% | 39.68% | 42.81% | 44.71% | 38.88% | 39.1% | 40.7% | 39.7% | 43.82% | - | -31966.44% | -7958.06% | -5202.44% | -3184.56% | - | - | - | - | - | - | - | - | - |
| Operating Income | 509.75M | 535M | 361.47M | 387.55M | 336.8M | 366.27M | 418.15M | 347.93M | 330.28M | 341.51M | 335.68M | 279.45M | 237.95M | 251.74M | 312.59M | 257.45M | 301.12M | 326.82M | 356.79M | 352.44M | 304.77M | 275.87M | 289.26M | 290.93M | 308.04M | 255.78M | 232.36M | 194.88M | 0 | 0 |
| Operating Margin % | 27.4% | 29.54% | 22.15% | 24.08% | 23.29% | 28.17% | 28.87% | 26.22% | 29.08% | 30.96% | 29.36% | 30.16% | 27.69% | 28.66% | 33.05% | 28.76% | - | 31515.72% | 7942.85% | 5221.38% | 3198.65% | - | - | - | - | - | - | - | - | - |
| Operating Income Growth % | - | 48.01% | -6.73% | 15.07% | -8.05% | -12.41% | 20.18% | 5.34% | -3.29% | 1.74% | 20.12% | 17.44% | -5.48% | -19.47% | 21.42% | -14.5% | -7.86% | -8.4% | 1.23% | 15.64% | 10.47% | -4.63% | -0.57% | -5.55% | 20.43% | 10.08% | 19.23% | - | - | - |
| Pretax Income | 541.25M | 547.53M | 381.61M | 411.33M | 306.22M | 376.29M | 446.06M | 365.27M | 296.17M | 352M | 340.93M | 274.91M | 239.35M | 259.01M | 308.51M | 246.37M | 301.12M | 326.82M | 356.79M | 352.44M | 304.77M | 275.87M | 289.26M | 290.93M | 308.04M | 255.78M | 232.36M | 194.88M | 0 | 0 |
| Pretax Margin % | 29.09% | 30.23% | 23.38% | 25.56% | 21.18% | 28.94% | 30.8% | 27.53% | 26.08% | 31.92% | 29.82% | 29.67% | 27.86% | 29.49% | 32.62% | 27.52% | - | 31515.72% | 7942.85% | 5221.38% | 3198.65% | - | - | - | - | - | - | - | - | - |
| Income Tax | 135.09M | 133.43M | 113.18M | 106.55M | 71.66M | 103.98M | 110.03M | 88.15M | 73.88M | 57.1M | 119.42M | 102.92M | 89.53M | 92.66M | 110.88M | 91.29M | 111.96M | 118.28M | 128.17M | 129.21M | 113.72M | 114.9M | 110.21M | 106.72M | 109.27M | 96.89M | 87.16M | 70.86M | 53.6M | 31M |
| Effective Tax Rate % | 24.96% | 24.37% | 29.66% | 25.9% | 23.4% | 27.63% | 24.67% | 24.13% | 24.94% | 16.22% | 35.03% | 37.44% | 37.41% | 35.77% | 35.94% | 37.05% | 37.18% | 36.19% | 35.92% | 36.66% | 37.31% | 41.65% | 38.1% | 36.68% | 35.47% | 37.88% | 37.51% | 36.36% | - | - |
| Net Income | 398.9M | 403.3M | 268.31M | 298.98M | 239.5M | 270.29M | 326.36M | 272.34M | 220.3M | 291.34M | 208.92M | 169.81M | 149.24M | 162.18M | 188.09M | 150.91M | 179.11M | 197.29M | 224.32M | 217.47M | 197.73M | 160.28M | 181.18M | 191.49M | 203.76M | 168.45M | 155.36M | 124.02M | 92.4M | 51.4M |
| Net Margin % | 21.44% | 22.27% | 16.44% | 18.58% | 16.56% | 20.78% | 22.53% | 20.52% | 19.4% | 26.42% | 18.27% | 18.33% | 17.37% | 18.46% | 19.89% | 16.86% | - | 19025.27% | 4993.7% | 3221.79% | 2075.24% | - | - | - | - | - | - | - | - | - |
| Net Income Growth % | 35.49% | 50.31% | -10.26% | 24.84% | -11.39% | -17.18% | 19.84% | 23.62% | -24.39% | 39.45% | 23.03% | 13.78% | -7.98% | -13.78% | 24.64% | -15.75% | -9.21% | -12.05% | 3.15% | 9.98% | 23.36% | -11.53% | -5.38% | -6.02% | 20.96% | 8.42% | 25.27% | 34.22% | 79.77% | - |
| Net Income (Continuing) | 406.17M | 414.1M | 268.43M | 304.78M | 234.56M | 272.31M | 336.02M | 277.13M | 222.3M | 294.9M | 221.51M | 171.99M | 149.82M | 166.35M | 197.63M | 155.08M | 189.16M | 208.54M | 228.63M | 223.24M | 191.05M | 160.97M | 179.06M | 186.23M | 198.77M | 163.66M | 148.76M | 124M | 92.4M | 51M |
| EPS (Diluted) | 5.49 | 5.13 | 3.23 | 3.40 | 2.65 | 2.75 | 3.23 | 2.69 | 2.27 | 2.87 | 2.03 | 1.62 | 1.42 | 1.55 | 1.79 | 1.45 | 1.73 | 1.92 | 2.22 | 2.10 | 1.86 | 1.48 | 1.64 | 1.71 | 1.74 | 1.40 | 1.27 | 0.96 | 0.71 | 0.40 |
| EPS Growth % | 47.04% | 58.82% | -5% | 28.3% | -3.64% | -14.86% | 20.07% | 18.5% | -20.91% | 41.38% | 25.31% | 14.08% | -8.39% | -13.41% | 23.45% | -16.18% | -9.9% | -13.51% | 5.71% | 12.9% | 25.68% | -9.76% | -4.09% | -1.72% | 24.29% | 10.24% | 32.29% | 35.21% | 77.5% | - |
| EPS (Basic) | - | 5.37 | 3.23 | 3.40 | 2.65 | 2.77 | 3.25 | 2.69 | 2.27 | 2.87 | 2.03 | 1.62 | 1.42 | 1.55 | 1.79 | 1.45 | 1.73 | 1.93 | 2.25 | 2.12 | 1.90 | 1.51 | 1.68 | 1.78 | 1.81 | 1.46 | 1.32 | 0.99 | 0.73 | 0.40 |
| Diluted Shares Outstanding | 72.65M | 75.1M | 79.43M | 83.86M | 85.76M | 93.6M | 96.42M | 97.26M | 96.95M | 97.41M | 99.12M | 100.48M | 100.72M | 100.67M | 100.31M | 100.63M | 99.99M | 100.06M | 100.86M | 102.07M | 106.29M | 108.3M | 110.47M | 111.98M | 117.1M | 120.32M | 122.33M | 129.19M | 130.14M | 128.5M |
Regulatory money market reform
As reported in recent financial statements, FHI has demonstrated a consistent upward revenue trajectory, climbing from $391.5 million in 2023Q4 to $479.0 million by 2026Q1, reflecting the firm's ability to capture institutional flows despite broader industry headwinds and shifting interest rate environments.
The steady revenue growth suggests that FHI's core liquidity products remain highly relevant to institutional clients, providing a reliable base that offsets potential volatility in equity segments. Investors should monitor whether this growth is primarily driven by market appreciation or net new inflows, as the latter would indicate superior competitive positioning.
Based on the provided income statement data, FHI's gross margin has shown meaningful improvement, reaching 72.6% in 2025Q4 compared to 65.6% in 2024Q1, largely driven by the successful removal of fee waivers as the interest rate environment normalized over the observed period.
The expansion in gross margins highlights the firm's operational leverage, as the cost of managing liquidity assets does not scale linearly with the revenue generated from higher yields. This trend suggests that FHI is effectively capturing the 'coiled spring' earnings potential inherent in its money market business model.
According to the firm's quarterly filings, operating margins have fluctuated between 10.1% and 31.1% over the last ten quarters, with the 2026Q1 figure of 26.4% indicating that management is maintaining disciplined control over SG&A expenses relative to the firm's top-line expansion.
The volatility in operating income, particularly the dip in 2024Q2, warrants further investigation into non-recurring charges or compensation adjustments that may have temporarily masked underlying efficiency. Sustained operating margins above 25% suggest that the firm's cost structure is well-aligned with its current revenue scale.
As evidenced by the quarterly data, EPS has exhibited significant variance, ranging from $0.20 in 2024Q2 to $1.45 in 2025Q4, with stock-based compensation periodically impacting net income, notably reaching $12.3 million in 2026Q1, which may dilute the quality of reported earnings.
The periodic spikes in stock-based compensation suggest that management is utilizing equity-based incentives to retain talent, which investors should weigh against the firm's overall profitability. The inconsistency in quarterly EPS growth rates implies that non-operating items or tax anomalies may be creating noise in the bottom-line performance.
Quick answers to the most common questions about buying FHI stock.
Federated Hermes, Inc. (FHI) is profitable, generating $403.3M in net income for the fiscal year ending 2025 with a net profit margin of 22.3%.
Federated Hermes, Inc. (FHI) reported an operating income of $535.0M, resulting in an operating profit margin of 29.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Federated Hermes, Inc. (FHI) generated $1.33B in gross profit for the year, representing a gross profit margin of 73.6%. This demonstrates the company's core pricing power and production efficiency.