Hennessy Advisors 2025 Q4 Earnings Net Income Rises 4.0% Amid Revenue Decline

Hennessy Advisors (HNNA) reported mixed fiscal 2025 Q4 results, with revenue declining 3.2% year-over-year but net income and EPS showing growth. The company reaffirmed its commitment to dividends and highlighted strategic ETF expansion plans, aligning with broader market optimism from Federal Reserve easing.

Revenue

Hennessy Advisors’ total revenue fell to $8.50 million in Q4 2025, a 3.2% drop from $8.78 million in the prior-year period.

Earnings/Net Income

The company’s earnings per share (EPS) increased 3.9% to $0.31, while net income rose 4.0% to $2.42 million. This marks 12 consecutive years of quarterly profitability, underscoring operational resilience despite revenue headwinds.

Post-Earnings Price Action Review

The strategy of buying Hennessy Advisors shares after a revenue decline quarter-over-quarter on the earnings release date and holding for 30 days yielded moderate returns but underperformed the market. With a compound annual growth rate (CAGR) of 3.27%—trailing the benchmark by 60.49%—the approach exhibited low risk (maximum drawdown of 0.00%) and a Sharpe ratio of 0.08, appealing to stability-focused investors in volatile markets.

CEO Commentary

Neil Hennessy, Chairman and CEO, highlighted a 38% annual EPS increase and strong fund performance, with all 17 Hennessy Funds posting positive one- and three-year returns. Teresa Nilsen, President and COO, noted a 40% rise in net income, $8.5 million higher cash reserves, and $4.3 billion in assets under management as of September 30, 2025, while reiterating dividend commitments and growth through organic and acquisition strategies.

Guidance

Hennessy expects continued support from lower interest rates as the Federal Reserve eases policy, bolstering investor and business confidence. With $4.3 billion in assets under management and $72 million in cash, the firm aims to leverage its strong fiscal position to drive long-term shareholder value through disciplined, values-aligned strategies.

Additional News

Hennessy Advisors announced a definitive agreement to acquire two ETFs from STF Management, LP, expanding its ETF portfolio with the STF Tactical Growth ETF (TUG) and STF Tactical Growth & Income ETF (TUGN). The transaction, expected to close in Q3 2025, will rebrand the funds under the Hennessy name. Additionally, the company declared a quarterly dividend of $0.1375 per share, maintaining its 19-year streak of consistent payouts. In October 2025, Hennessy’s Hennessy Stance ESG ETF (STNC) transitioned to a fully transparent structure, enhancing investor visibility while retaining its sustainability-driven approach.