Hennessy Advisors 2025 Q4 Earnings Sustained Profitability with 4.0% Net Income Growth

Hennessy Advisors (HNNA) reported fiscal 2025 Q4 earnings on December 3, 2025, with mixed results. While quarterly revenue declined 3.2% to $8.50 million, annual revenue surged 19.9% to $35.54 million. The company maintained its 12-year streak of quarterly profitability, with net income rising 4.0% to $2.42 million. Management reaffirmed its dividend commitment and highlighted strategic ETF expansion, signaling confidence in long-term growth despite near-term revenue volatility.

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 3.9% 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 3.9% EPS growth indicates strong earnings performance, supported by improved net income and sustained profitability.

Price Action

The stock price of Hennessy Advisors has edged down 0.10% during the latest trading day, has edged up 2.28% during the most recent full trading week, and has climbed 5.30% month-to-date.

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, expressed optimism about the U.S. economy and stock market, citing a 11.50% gain in the Dow Jones and 17.60% rise in the S&P 500 (total return) for the year ended September 30, 2025. He emphasized resilient consumer spending, solid corporate earnings, and moderate inflation as sound market fundamentals. All 17 Hennessy Funds delivered positive returns over one- and three-year periods, with 16 of 16 long-term funds posting gains for 5- and 10-year periods. Despite a 9% decline in year-end assets under management (AUM), he highlighted entering fiscal 2026 with $4.3 billion in AUM and $72 million in cash, driven by a 40% net income increase and 22% growth in average AUM.

Guidance

The company expects to maintain its quarterly dividend and pursue growth through organic initiatives and acquisitions. It anticipates lower interest rates from the Federal Reserve to support investors and businesses. With $4.3 billion in AUM and $72 million in cash, the firm aims to leverage its operating model and disciplined approach to generate long-term value. A pending ETF expansion deal is expected to broaden its product lineup. Forward-looking statements include confidence in market fundamentals and strategic opportunities aligned with its buy-and-hold philosophy.

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 and STF Tactical Growth & Income ETF. The transaction, expected to close in Q3 2025, will rename the funds as Hennessy Tactical Growth ETF and Hennessy Tactical Growth and Income ETF. Additionally, the company declared a quarterly dividend of $0.1375 per share, representing an annualized yield of 5.77%, reaffirming its 19-year streak of consistent dividend payments. In October 2025, Hennessy’s Hennessy Stance ESG ETF transitioned to a fully transparent structure, renaming it the Hennessy Sustainable ETF and enhancing investor visibility by disclosing holdings daily.

CEO Commentary