Revenue from Contracts with Customers

12 Months Ended

Dec. 31, 2024

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Revenue from Contracts with Customers

The following table presents Federated Hermes’ revenue disaggregated by asset class:

(in thousands)	2024		2023		2022
Money market	$	837,948	$	754,074	$	575,261
Equity	473,065		483,650		526,957
Fixed-income	195,798		189,280		206,794
Other	125,282		182,570		136,802
Total Revenue	$	1,632,093	$	1,609,574	$	1,445,814

The following table presents Federated Hermes’ revenue disaggregated by performance obligation:

(in thousands)	2024		2023		2022
Investment Advisory	$	1,097,866	$	1,115,783	$	1,011,631
Administrative Services	387,531		343,332		294,557
Distribution	120,276		126,350		112,356
Other	26,420		24,109		27,270
Total Revenue	$	1,632,093	$	1,609,574	$	1,445,814

The following table presents Federated Hermes’ revenue disaggregated by offering type:

(in thousands)	2024		2023		2022
Federated Hermes Funds	$	1,373,700	$	1,348,591	$	1,188,933
Separate Accounts	240,422		244,952		238,638
Other	17,971		16,031		18,243
Total Revenue	$	1,632,093	$	1,609,574	$	1,445,814

For nearly all revenue, Federated Hermes is not required to disclose certain estimates of revenue expected to be recorded in future periods as a result of applying the following exemptions: (1) contract terms are short-term in nature (i.e., expected duration of one year or less due to termination provisions) and (2) the expected variable consideration would be allocated entirely to future service periods.

Federated Hermes expects to recognize revenue in the future related to the unsatisfied portion of the stewardship services and real estate development performance obligations at December 31, 2024. Generally, contracts are billed in arrears on a quarterly basis and have a three-year duration, after which the customer can terminate the agreement with notice, generally from three to 12 months. Based on existing contracts and the applicable foreign exchange rates as of December 31, 2024, Federated Hermes may recognize future fixed revenue from these services as presented in the following table:

(in thousands)
2025	$	9,941
2026	2,194
2027	825
2028 and Thereafter	83
Total Remaining Unsatisfied Performance Obligations	$	13,043