FHIHIGH SIGNALFINANCIAL10-K

FHI delivered explosive 296% revenue growth while significantly increasing share buybacks and expanding into renewable energy services.

The massive revenue jump from $278M to $1.1B represents exceptional growth that warrants investigation into whether this reflects organic expansion, major acquisitions, or accounting changes. The company's shift toward aggressive capital returns through nearly doubled share buybacks while cutting dividends by 43% signals management's confidence in the business and preference for tax-efficient returns to shareholders.

Comparing 2026-02-27 vs 2025-02-28View on EDGAR →
FINANCIAL ANALYSIS

FHI demonstrated remarkable financial performance with revenue surging 296% to $1.1B while net income grew a solid 50% to $403M, indicating strong operational leverage. The company dramatically shifted its capital allocation strategy, nearly doubling share buybacks to $263M while cutting dividends by 43%, all while maintaining a healthy cash position that grew 15% to $583M. Despite lower operating cash flow, the overall picture suggests a company experiencing rapid growth while aggressively returning capital to shareholders through buybacks rather than dividends.

FINANCIAL STATEMENT CHANGES
Revenue
P&L
+296.3%
$278.3M$1.1B

Strong top-line growth of 296.3% — accelerating demand or successful expansion into new markets.

Share Buybacks
Cash Flow
+90.9%
$137.6M$262.8M

Share repurchases increased 90.9% — management returning capital, signals confidence in intrinsic value.

Net Income
P&L
+50.3%
$268.3M$403.3M

Net income grew 50.3% — bottom-line growth signals improving overall business health.

Dividends Paid
Cash Flow
-43.3%
$184.8M$104.9M

Dividends cut 43.3% — significant signal of cash flow stress or capital reallocation priorities.

Operating Income
P&L
+42.2%
$361.5M$513.9M

Operating leverage kicking in — revenue growth outpacing cost growth, a hallmark of scaling businesses.

Capital Expenditure
Cash Flow
-31.4%
$4.0M$2.8M

Capex reduced 31.4% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Cash & Equivalents
Balance Sheet
+15.5%
$504.4M$582.5M

Cash grew 15.5% — improving liquidity position supports investment and shareholder returns.

Operating Cash Flow
Cash Flow
-14.2%
$346.6M$297.3M

Operating cash flow softened — monitor whether temporary working capital timing or structural deterioration.

Accounts Receivable
Balance Sheet
-11.1%
$65.3M$58.1M

Receivables declined — improved collection efficiency or conservative revenue recognition.

Current Assets
Balance Sheet
+10.6%
$781.4M$863.8M

Current assets grew 10.6% — improving short-term liquidity or inventory/receivables build.

LANGUAGE CHANGES
NEW — 2026-02-27
PRIOR — 2025-02-28
ADDED
The obligation to make purchase price payments in connection with acquisitions is subject to certain adjustments and conditions, and the obligation to make contingent payments is based on net revenue levels or other financial thresholds, and will be affected by the achievement of such levels and thresholds.
Federated Hermes also provides stewardship services to customers seeking a range of solutions for engagement, as well as real estate development and renewable energy project development services.
In addition, Federated Hermes markets and provides stewardship, real estate development and renewable energy project development services to various domestic and international customers.
The Federated Hermes Funds are domiciled in the U.S., as well as Ireland, the United Kingdom (U.K.), Luxembourg, Guernsey, Jersey, Australia and the Cayman Islands.
In general, new advisory agreements for new U.S.-domiciled registered funds and material amendments to such advisory agreements must be approved by a fund s shareholders.
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REMOVED
The obligation to make purchase price payments in connection with acquisitions is subject to certain adjustments and conditions, and the obligation to make contingent payments is based on net revenue levels and will be affected by the achievement of such levels.
Federated Hermes also provides stewardship services to customers seeking a range of solutions for engagement, as well as real estate development services.
In addition, Federated Hermes markets and provides stewardship and real estate development services to various domestic and international customers.
The Federated Hermes Funds are domiciled in the U.S., as well as Ireland, the United Kingdom (UK), Luxembourg, Guernsey, Jersey and the Cayman Islands.
In general, material amendments to such advisory agreements must be approved by a fund s shareholders.
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