Hennessy Advisors 2025 Q3 Earnings Net Income Up 4.5%

Hennessy Advisors reported fiscal 2025 Q3 earnings on August 6, 2025. The company slightly outperformed expectations with a 3.5% revenue increase and a 4.5% rise in net income, although fully diluted EPS remained flat. No formal guidance was provided, but management expressed confidence in economic fundamentals and future growth opportunities.

Revenue
Hennessy Advisors reported total revenue of $8.05 million in Q3 2025, reflecting a 3.5% year-over-year increase from $7.78 million in the same period of 2024. The growth in revenue was supported by a 5.3% rise in average assets under management, which reached $4.1 billion, indicating strong demand for its investment services.

Earnings/Net Income
The company’s net income increased to $2.12 million in the third quarter of 2025, representing a 4.5% year-over-year gain from $2.03 million. Earnings per share (EPS) remained unchanged at $0.26, as the increase in net income was offset by a 3.0% rise in the number of diluted shares outstanding. Despite the flat EPS, the company maintained its 12-year track record of profitability, demonstrating financial resilience.

Price Action
Hennessy Advisors’ stock price edged up 1.65% on the most recent trading day, but declined 3.44% over the past week and 2.37% month-to-date, reflecting mixed short-term investor sentiment.

Post-Earnings Price Action Review
A strategy of buying Hennessy Advisors shares following the release of its quarterly earnings and holding for 30 days showed limited effectiveness, posting a compound annual growth rate (CAGR) of 9.04%—which underperformed the broader market by 20.10%. The strategy exhibited a Sharpe ratio of 0.24 and a maximum drawdown of 0.00%, indicating low volatility but also modest returns.

CEO Commentary
Neil Hennessy, Chairman and CEO, emphasized the company’s focus on long-term fundamentals, noting the resilience of the U.S. labor market and moderate GDP and inflation as positive factors. He acknowledged ongoing market volatility linked to inflation, tariffs, and delayed Fed rate cuts but stressed the importance of maintaining a disciplined, fundamentals-driven approach to investing.

Guidance
Hennessy Advisors did not provide specific numerical guidance for future periods. Management instead offered a qualitative outlook of continued optimism, citing the company’s expanding assets under management, consistent earnings, and growing cash reserves as key strengths. The CEO also highlighted the ongoing process to manage two STF Tactical ETFs as a step toward broadening the firm’s product offerings.

Additional News
Hennessy Advisors declared a quarterly dividend of $0.1375 per share, payable on September 4, 2025, to shareholders of record as of August 20, 2025. This marks an annualized dividend yield of 4.4%, based on the closing price of $12.63 on August 5, 2025. The dividend reflects the company’s continued commitment to returning value to shareholders.

The firm also highlighted its progress in assuming management of the STF Tactical Growth & Income ETF and the STF Tactical Growth ETF, a strategic initiative aimed at expanding its ETF product lineup. With total assets under management growing to $4.28 billion—an increase of 6.3% year-over-year—and cash and equivalents rising by 38.1% to $30.07 million, the company is well-positioned to pursue future opportunities. Management remains focused on long-term value creation and maintaining a disciplined, buy-and-hold investment strategy.