Total Managed Assets (AUM) at December 31, 2025, reached $902.6 billion, marking a 9% increase from $829.6 billion in 2024. Average Managed Assets for 2025 increased by 8% to $853.4 billion, up from $788.5 billion in 2024. Total Revenue for 2025 grew by 10% to $1,800.7 million, compared to $1,632.1 million in 2024. Net Income for 2025 significantly increased to $403.3 million, up from $268.3 million in 2024. Diluted Earnings Per Share (EPS) for 2025 rose to $5.13, an increase from $3.23 in 2024. Operating Income for 2025 was $513.9 million, a substantial increase from $361.5 million in 2024. The company completed the acquisition of a majority (60%) equity interest in Rivington Energy Management Limited on April 7, 2025, a U.K.-based renewable energy project development business. An agreement was entered into on October 23, 2025, to acquire a majority (80%) interest in FCP Fund Manager, L.P., a U.S.-based real estate investment manager, with completion expected in the second quarter of 2026. The U.S. regulatory environment, particularly the SEC, shifted towards deregulation, capital formation, and traditional enforcement areas in 2025, with fewer new proposals and a reduction in finalized substantive rules. The Financial Stability Oversight Council (FSOC) 2025 Annual Report focused on deregulation, bolstering the Treasury market, strengthening cybersecurity, enhancing supervisory frameworks for depository institutions, and using artificial intelligence (AI). FINRA's 2026 Annual Regulatory Oversight Report highlighted generative AI, financial crimes prevention, firm operations, cryptocurrency, communications and sales, market integrity, and financial management as key areas of focus. A lawsuit was filed against Hermes GPE LLP and Hermes Infrastructure II GP LLP by Aberdeen City Council Pension Fund on January 5, 2026, alleging professional negligence and breach of limited partnership agreement related to a 2019 investment in the Ventus Portfolio, seeking approximately £87 million (approximately $118 million). Federated Hermes denies the allegations. Costs totaling $23.2 million were incurred as of December 31, 2025, related to an administrative error concerning unregistered shares of a closed-end tender fund, with a $15.9 million insurance reimbursement receivable now subject to litigation.