Federated Hermes (FHI) Cash Flow: Operating & Free Cash Flow

Federated Hermes (FHI) Cash Flow Statement

In fiscal 2025 (fiscal year ended Dec 31, 2025), Federated Hermes generated $297.35M of operating cash flow and spent $2.76M on capital expenditures. That left free cash flow of $294.58M, down 14.0% from $342.53M a year earlier, or 16.4% of revenue. It returned $367.65M to shareholders through $104.87M in dividends and $262.77M in share buybacks.

Federated Hermes Cash Flow Statement Analysis

Values in millions USD

Income Statement Balance Sheet Cash Flow Ratios

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Cash flow statement showing operating, investing, and financing activities for Federated Hermes, Inc. (FHI) - Annual data in millions USD
Breakdown	FY 2025	FY 2024	FY 2023	FY 2022	FY 2021	FY 2020	FY 2019	FY 2018	FY 2017
Period ending	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019	Dec 2018	Dec 2017
Operating Activities
Net Income	385.16	268.43	304.78	234.56	272.31	336.02	277.13	222.30	294.90
Depreciation & Amortization	22.26	22.43	26.87	28.09	30.01	28.56	25.92	17.09	10.64
Deferred Income Tax	0.00	-14.94	4.25	-18.82	18.16	18.17	7.45	12.26	-59.27
Stock Based Compensation	0.00	28.78	33.95	35.51	39.71	35.46	32.95	23.89	22.51
Change in Working Capital	-3.36	17.58	-12.14	4.06	-11.83	-12.29	23.85	-94.67	-13.32
Change in Accounts Receivable	4.03	17.35	-27.57	-4.37	6.66	11.65	-7.25	-11.08	-8.66
Change in Accounts Payable	5.93	9.36	14.63	4.67	-6.37	0.70	30.91	-96.19	-9.16
Change in Other Working Capital	-13.32	-9.13	0.80	3.76	-13.00	-24.64	0.19	12.60	4.49
Other Operating Activities	-105.95	24.27	-45.88	41.91	-177.97	-32.68	-32.36	25.41	14.93
Net Cash from Operating Activities	297.35	346.55	311.83	323.95	170.38	373.24	334.94	206.28	270.38
Investing Activities
Capital Expenditures	-2.76	-4.02	-7.92	-4.37	-10.42	-13.50	-15.05	-17.27	-9.80
Acquisitions	-12.76	-47.52	0.00	-22.64	-9.43	-11.32	-21.59	-157.38	-4.35
Purchases of Investments	-18.69	-76.09	0.00	-22.64	-9.43	-25.51	-103.45	-7.27	-8.13
Sales/Maturities of Investments	206.17	0.00	0.00	22.77	143.63	32.48	90.42	23.08	140.25
Other Investing Activities	-6.03	143.57	-22.70	0.00	-139.52	-6.97	-45.03	0.21	15.15
Net Cash from Investing Activities	165.93	64.25	-30.61	-32.36	10.82	-24.82	-94.68	-174.44	117.97
Financing Activities
Debt Repayment	0.00	0.00	0.00	-361.65	-147.30	-25.00	-35.00	-35.00	-21.25
Common Stock Repurchased	-262.77	-137.62	-177.07	-218.14	-228.35	-66.76	-15.74	-29.25	-48.64
Dividends Paid	-104.87	-184.81	-98.09	-97.92	-105.76	-207.77	-109.15	-106.94	-101.51
Other Financing Activities	-34.16	36.03	32.07	20.89	-63.71	4.39	7.21	-14.93	-5.52
Net Cash from Financing Activities	-401.81	-286.40	-243.09	-168.51	-249.47	-295.14	-152.68	-186.12	-176.92
Summary
Effect of Forex Changes on Cash	15.32	-3.80	7.87	-20.17	-2.31	5.84	4.51	-5.11	0.00
Net Change in Cash	76.79	120.61	46.00	102.90	-68.27	59.12	92.09	-159.38	211.43
Cash at Beginning of Period	507.57	386.95	340.96	238.05	308.64	249.51	157.43	316.81	104.84
Cash at End of Period	584.38	507.57	386.95	340.96	238.05	308.64	249.51	157.43	316.26
Free Cash Flow	294.58	342.53	303.92	319.58	159.96	359.74	319.90	189.01	260.58
Supplemental Disclosures
Interest Paid	-	11.59	11.65	7.18	1.13	-	-	-	-
Income Taxes Paid	-	125.87	108.64	85.58	91.93	-	-	-	-

Source: Company financial statements from annual and quarterly filings. Data as of Jun 30, 2026. Data sources and methodology

Frequently Asked Questions About Federated Hermes Cash Flow

What is Federated Hermes's free cash flow?

Federated Hermes generated free cash flow of $294.58M in fiscal 2025 (fiscal year ended Dec 31, 2025), operating cash flow of $297.35M minus $2.76M of capital expenditures. That was down 14.0% from $342.53M a year earlier. Free cash flow equaled 16.4% of revenue.

How much does Federated Hermes spend on capital expenditures?

Federated Hermes spent $2.76M on capital expenditures in fiscal 2025, compared with $4.02M a year earlier. That equals 0.9% of operating cash flow.

Does Federated Hermes pay dividends or buy back shares?

Yes. In fiscal 2025 Federated Hermes returned $104.87M in dividends and $262.77M in share buybacks to shareholders, according to its cash flow statement.

What is free cash flow?

Free cash flow is operating cash flow minus capital expenditures. It is the cash a company has left for dividends, buybacks, debt repayment or acquisitions after funding its operations and investment. Full definition