Federated Hermes, Inc. (FHI) Cash Flow Statement

NYSE: FHIOperating cash, capex, free cash flow and buybacks.

Where FHI’s cash came from and went, 2025

December 31, 2025 · U.S. dollars
Cash from operations
$297.3M
−14.2% vs 2024
Capital expenditures
$2.8M
0.2% of revenue
Free cash flow
$294.6M
16.4% margin
Returned to shareholders
$367.6M
125% of free cash flow
Change in cash
$76.8M
cash at year-end $584.4M
Cash from operations: $297.3MCash from operations$297.3MAcquisitions & other: $168.7MAcquisitions & other$168.7MCurrency & other: $15.3MCurrency & other$15.3MShare buybacks: $262.8MShare buybacks$262.8M · 55%Dividends: $104.9MDividends$104.9M · 22%Other financing: $34.2MOther financing$34.2M · 7%Added to cash: $76.8MAdded to cash$76.8M · 16%Capital expenditures: $2.8MCapital expenditures$2.8M · 1%$481.4M
Cash from operations
$297.3M
Capital expenditures
−$2.8M
Acquisitions & other
+$168.7M
Dividends
−$104.9M
Share buybacks (net)
−$262.8M
Other financing
−$34.2M
Currency & other
+$15.3M
Change in cash
$76.8M

Drawn to scale: where the cash came from and how it was used. Hover for values.

FHI operating cash flow, capex and free cash flow

Operating cash flowCapital expendituresFree cash flowFCF margin (right axis)

FHI cash flow trends, 2016–2025

Federated Hermes, Inc. cash flow trends
MetricTrendThenLatestChange
Operating cash flow$252.8M2016$297.3M2025+1.8%/yr
Capital expenditures$12.8M2016$2.8M2025−15.7%/yr
Free cash flow$239.9M2016$294.6M2025+2.3%/yr
Free cash flow margin21.0%201616.4%2025−4.6 pts
Operating cash flow / net income1.1420160.772025−0.37
Stock-based compensation$22.4M2016$29.1M2025+2.9%/yr
Dividends paid$205.5M2016$104.9M2025−7.2%/yr
Share buybacks (net)$81.8M2016$262.8M2025+13.8%/yr
Capex / revenue1.1%20160.2%2025−1.0 pts

Change is the average annual growth (CAGR) or the difference between the first and latest year.

FHI cash flow by activity

OperatingInvestingFinancingChange in cash

FHI net income vs operating cash flow

Net incomeOperating cash flow

Operating cash flow above net income usually means earnings are backed by cash (depreciation and stock-based pay are non-cash expenses).

FHI cash flow statement

Federated Hermes, Inc. annual cash flow statement
2025202420232022202120202019201820172016
Operating activities
Net income$385.2M$268.4M$304.8M$234.6M$272.3M$336.0M$277.1M$222.3M$294.9M$221.5M
Depreciation & amortization$22.3M$22.4M$26.9M$28.1M$30.0M$28.6M$25.9M$17.1M$10.6M$9.6M
Stock-based compensation$29.1M$28.8M$33.9M$35.5M$39.7M$35.5M$32.9M$23.9M$22.5M$22.4M
Change in working capital−$3.4M$17.6M−$12.1M$4.0M−$12.7M−$12.3M$23.9M−$94.7M−$13.3M−$12.7M
Other non-cash items−$135.8M$9.3M−$41.6M$21.8M−$158.9M−$14.5M−$24.9M$37.7M−$44.3M$12.0M
Cash from operating activities$297.3M$346.6M$311.8M$323.9M$170.4M$373.2M$334.9M$206.3M$270.4M$252.8M
Investing activities
Capital expenditures−$2.8M−$4.0M−$7.9M−$4.4M−$10.4M−$13.5M−$15.0M−$17.3M−$9.8M−$12.8M
Investments (net)—$64.3M−$22.5M−$32.4M$26.6M−$24.8M−$94.7M$211,000$132.1M$4.6M
Acquisitions & other investing$168.7M$4.0M−$213,000$4.4M−$5.3M$13.5M$15.0M−$157.4M−$4.4M$0
Cash from investing activities$165.9M$64.3M−$30.6M−$32.4M$10.8M−$24.8M−$94.7M−$174.4M$118.0M−$8.2M
Financing activities
Dividends paid−$104.9M−$184.8M−$98.1M−$97.9M−$105.8M−$207.8M−$109.1M−$106.9M−$101.5M−$205.5M
Share repurchases & issuance (net)−$262.8M−$137.6M−$177.1M−$218.1M−$228.3M−$66.8M−$15.7M−$29.2M−$48.6M−$81.8M
Net borrowing (repayment)—$0$0$126.7M$148.3M−$25.0M−$35.0M−$35.0M−$21.7M−$25.5M
Shares issued$0$0$0$0$0$0$0$0$0$0
Other financing−$34.2M$36.0M$32.1M$20.9M−$63.7M$4.4M$7.2M−$14.9M−$5.0M$373,000
Cash from financing activities−$401.8M−$286.4M−$243.1M−$168.5M−$249.5M−$295.1M−$152.7M−$186.1M−$176.9M−$312.4M
Summary
Net change in cash$76.8M$120.6M$46.0M$102.9M−$70.6M$59.1M$92.1M−$159.4M$211.4M−$67.8M
Cash at end of period$584.4M$507.6M$387.0M$341.0M$238.1M$308.6M$249.5M$157.4M$316.3M$104.8M
Free cash flow$294.6M$342.5M$303.9M$319.6M$160.0M$359.7M$319.9M$189.0M$260.6M$239.9M
Free cash flow margin16.4%21.0%18.9%22.1%12.3%24.8%24.1%16.6%23.6%21.0%
Capex / revenue0.2%0.2%0.5%0.3%0.8%0.9%1.1%1.5%0.9%1.1%
Operating cash flow / net income0.771.291.021.380.631.111.210.930.921.14

Negative numbers are cash paid out. Quarterly columns are labeled by the month the quarter ended. Figures in U.S. dollars as reported; data from EODHD.

FHI cash generation

In fiscal 2025 (ended December 31, 2025), Federated Hermes generated $297.3 million of cash from operations (down 14.2%) and spent $2.8 million on capital expenditures, leaving free cash flow of $294.6 million, 16.4% of revenue. It returned $367.6 million to shareholders through dividends ($104.9 million) and net share buybacks ($262.8 million). Cash and equivalents rose by $76.8 million over the year.

Related: FHI income statement, FHI balance sheet, FHI dividend history. See the FHI stock overview for the latest quote and news.

FHI cash flow FAQ

What is Federated Hermes's free cash flow?

Federated Hermes's free cash flow was $294.6 million in fiscal 2025: $297.3 million of operating cash flow minus $2.8 million of capital expenditures It was $342.5 million a year earlier..

How much cash does Federated Hermes generate from operations?

Federated Hermes generated $297.3 million of cash from operating activities in fiscal 2025, 0.77 times its net income of $385.2 million.

How much does Federated Hermes spend on capital expenditures?

Federated Hermes spent $2.8 million on capital expenditures in fiscal 2025, 0.2% of revenue, compared with $4.0 million the year before.

How much stock does Federated Hermes buy back?

Federated Hermes spent $262.8 million on net share repurchases in fiscal 2025.

How much does Federated Hermes pay in dividends?

Federated Hermes paid $104.9 million in dividends in fiscal 2025, 35.6% of free cash flow.

Asset Management: cash flow