Hennessy Advisors Reports Q2 Revenue Increase, Nine-Month Revenue Decline

Hennessy Advisors, Inc. reported its financial results for the three and nine months ended June 30, 2026, revealing a total revenue of $8.39 million for the quarter, a 4.2% increase from $8.05 million in the same period last year. For the nine-month period, total revenue decreased by 8.1% to $24.84 million, down from $27.04 million. The decline in revenue for the nine months was primarily attributed to decreased average daily net assets of the Hennessy Funds, which impacted both investment advisory fees and shareholder service fees. Investment advisory fees for the quarter rose to $7.83 million, while for the nine months, they fell to $23.17 million, reflecting a decrease of 8.2% year-over-year.

The company's net income for the three months ended June 30, 2026, was $1.99 million, a decrease of 5.8% from $2.12 million in the prior year. For the nine-month period, net income dropped by 22.5% to $5.84 million compared to $7.54 million in the same period last year. This decline was largely due to reduced revenue and increased interest expenses related to the redemption of the 2026 Notes, which were fully redeemed on June 30, 2026. The company’s effective income tax rate remained stable at approximately 27.9% for the nine months ended June 30, 2026.

Hennessy Advisors reported total assets under management of $4.4 billion as of June 30, 2026, marking a 2.6% increase from $4.3 billion a year earlier. This growth was primarily driven by market appreciation, although it was offset by net outflows from the Hennessy Funds. The company served approximately 170,000 fund accounts and 10,200 financial advisors, with a focus on maintaining brand loyalty among top-tier advisors. The average daily net assets for the nine months ended June 30, 2026, were $4.2 billion, a decrease of 7.8% compared to the previous year.

Operationally, Hennessy Advisors has continued to focus on enhancing its investment advisory services and shareholder support. The company has implemented a robust marketing and customer relationship management system, which includes a database of over 100,000 financial advisors. Despite the challenges of net outflows, the company remains committed to providing high-quality service and investment performance. Looking ahead, Hennessy Advisors anticipates that its cash and liquid assets will be sufficient to meet capital requirements for the upcoming year, while also exploring opportunities for future growth through acquisitions and organic strategies.