Hennessy Advisors 2025 Q4 Earnings Net Income Grows 4.0% Despite Revenue Decline

Hennessy Advisors (HNNA) reported mixed Q4 2025 results, with revenue declining but earnings rising. The company’s net income grew by 4.0% year-over-year, exceeding expectations, while management maintained its dividend commitment and expressed confidence in fiscal 2026 growth strategies.

Revenue

The total revenue of Hennessy Advisors decreased by 3.2% to $8.50 million in 2025 Q4, down from $8.78 million in 2024 Q4.

Earnings/Net Income

Hennessy Advisors’s EPS rose 2.6% to $0.31 in 2025 Q4 from $0.30 in 2024 Q4, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $2.42 million in 2025 Q4, marking 4.0% growth from $2.33 million in 2024 Q4. The Company has sustained profitability for 12 years over the corresponding fiscal quarter, reflecting stable business performance. The company’s earnings growth underscores its ability to maintain profitability despite declining revenue.

Post-Earnings Price Action Review

The strategy of buying Hennessy Advisors (HNNA) shares after a revenue drop quarter-over-quarter on the financial report release date and holding for 30 days delivered moderate returns but underperformed the market. The strategy's CAGR was 3.27%, trailing the benchmark by 60.49%. With a maximum drawdown of 0.00% and a Sharpe ratio of 0.08, the strategy had low risk but offered conservative returns, making it suitable for investors seeking stability in a volatile market.

CEO Commentary

Neil Hennessy, Chairman and CEO of Hennessy Advisors, highlighted a resilient economy and U.S. stock market, citing 11.50% and 17.60% gains in the Dow and S&P 500, respectively, for the year ended September 30, 2025. He emphasized strong market fundamentals, including steady consumer spending, solid corporate earnings, and moderate inflation, while expressing confidence in Federal Reserve rate cuts supporting growth. Hennessy underscored the company’s performance, noting all 17 Hennessy Funds delivered positive returns over one- and three-year periods, with 16 of 16 long-tenure funds posting gains over five- and ten-year horizons. Despite a 9% decline in year-end AUM, he expressed optimism entering fiscal 2026, citing $4.3 billion in AUM, $72 million in cash, and a pending ETF expansion.

Guidance

Hennessy Advisors expects to maintain its quarterly dividend and pursue growth through organic strategies and acquisitions aligned with shareholder value creation. The company anticipates leveraging a pending ETF deal to expand its product lineup and highlighted confidence in the Federal Reserve’s easing monetary policy, which it expects to lower interest rates and further support investors, consumers, and businesses. Teresa Nilsen, President and COO, noted the firm’s focus on stability, with $32.2 million in cash and cash equivalents (a 36% increase) and higher average AUM ($4.5 billion) driving a 40% rise in net income. The company remains committed to disciplined operations while seeking opportunities to strengthen long-term shareholder value.

Additional News

Hennessy Advisors announced a definitive agreement to acquire two ETFs from STF Management, LP, expanding its ETF portfolio to include the STF Tactical Growth ETF and STF Tactical Growth & Income ETF, with combined assets of $220 million. The transaction, expected to close in Q3 2025, will rebrand the ETFs under the Hennessy Funds Trust. Additionally, the company declared a quarterly dividend of $0.1375 per share, maintaining its 19-year consecutive dividend streak. In October 2025, Hennessy Advisors transitioned its Hennessy Stance ESG ETF to a fully transparent structure, renaming it the Hennessy Sustainable ETF and enhancing daily holdings disclosure.