HNNA Earnings Rise on Higher Revenue

Key Points

• Revenue (GAAP) reached $8.05 million, rising 3.5% from the prior year and marking continued growth in assets under management.

• Earnings per share (GAAP) stayed flat at $0.26, as a higher share count offset gains in net income.

• The quarterly dividend remained steady at $0.1375 per share, Net cash and equivalents rose 38% compared to Q3 FY2024, reaching $30.07 million.

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Hennessy Advisors (NASDAQ:HNNA), an independent asset manager specializing in mutual funds and exchange-traded funds (ETFs), reported its fiscal third quarter results on August 6, 2025. The most notable headline from the latest release is that revenue (GAAP) climbed to $8.05 million, up 3.5% from a year earlier, and Net income (GAAP) reached $2.12 million, increasing 4.5% compared to Q3 FY2024. Earnings per share (GAAP) held steady at $0.26, unchanged from last year, reflecting a larger number of shares. As there were no analyst forecasts for this period, results can't be measured against market expectations. Overall, with a healthy rise in assets under management, as average assets under management increased by 5.3% to $4.1 billion and total assets under management increased by 6.3% to $4.3 billion and improving balance sheet strength.

Company Overview and Key Focus Areas

Hennessy Advisors manages a range of publicly available mutual funds and, more recently, exchange-traded funds. Its business revolves around collecting investment management fees, which are charged as a percentage of assets under management. The more assets it manages, the more revenue it generates. Fund performance, AUM growth, and strategic acquisitions are central to its ongoing success.

Its main priorities recently have included increasing AUM, maintaining competitive fund performance, expanding into the ETF space, and seeking strategic acquisitions. Effective marketing and up-to-date compliance with regulations are also crucial for building investor confidence and attracting new clients, as revenue relies almost entirely on the amount of money overseen in these funds.

Quarterly Business Review

Average assets under management reached $4.10 billion, up 5.3% compared to Q3 FY2024, while period-end assets under management finished at $4.28 billion, up 6.3%. This growth in managed assets (average assets under management up 5.3%) outpaced both revenue (up 3.5%) and net income (up 4.5%) gains.

The revenue figure, which rose 3.5% (GAAP), continued to grow at a slightly slower pace than AUM. Despite these pressures, management remained focused on expanding the fund lineup. In the earnings release, it commented on progress toward taking over management of new ETFs, specifically the STF Tactical Growth & Income ETF and the STF Tactical Growth ETF.

Net income (GAAP) rose 4.5%, although the EPS figure (GAAP) remained unchanged at $0.26, as the diluted share count grew by 3%. Management highlighted the company's strong liquidity, with net cash and equivalents up 38.1% to $30.07 million as of June 30, 2025—providing stability and supporting continued dividend payments or the possibility of future acquisitions.

The quarterly dividend was unchanged at $0.1375 per share, representing an annualized yield of 4.4% based on the closing share price of $12.63 on August 5, 2025. The company paid this dividend consistently through recent quarters, reflecting an ongoing focus on returning capital to shareholders. No major acquisitions closed during the period, though Hennessy Advisors emphasized plans to expand its ETF product suite and continue exploring new fund management opportunities.

Looking Ahead

Hennessy Advisors did not provide specific financial guidance for upcoming quarters or for the rest of fiscal 2025. Management’s public comments focused on navigating ongoing market volatility and supporting long-term value through operational discipline and new product development. The expected management of additional ETFs represents a future area for potential AUM and revenue growth, though no closing dates or concrete financial targets have been announced.

Investors may want to watch for any new fund launches or acquisitions. The quarterly dividend was maintained at $0.1375 per share.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

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