Hennessy Advisors Reports Revenue Growth and Increased Net Income for Q3 Fiscal 2025

Hennessy Advisors, Inc. reported a significant increase in financial performance for the third quarter of fiscal 2025, with total revenue reaching $8.1 million, a 3.5% increase from $7.8 million in the same period last year. For the nine months ended June 30, 2025, total revenue surged to $27.0 million, marking a 29.6% increase compared to $20.9 million for the same period in 2024. The growth in revenue was primarily driven by a 30.5% rise in investment advisory fees, which totaled $25.2 million, up from $19.3 million in the prior year. Shareholder service fees also saw an increase, rising to $1.8 million from $1.5 million.

The company’s net income for the three months ended June 30, 2025, was $2.1 million, a 4.5% increase from $2.0 million in the previous year. For the nine-month period, net income rose by 58.1% to $7.5 million, compared to $4.8 million in the same timeframe last year. This increase in profitability was attributed to higher revenues and improved operational efficiency, as evidenced by a decrease in total operating expenses as a percentage of total revenue, which fell to 62.5% from 71.6% year-over-year.

Hennessy Advisors also reported a 6.3% increase in total assets under management, which reached $4.3 billion as of June 30, 2025, up from $4.0 billion a year earlier. This growth was attributed to market appreciation, although it was partially offset by net outflows from the Hennessy Funds. The company serves approximately 190,000 fund accounts and has a network of about 11,100 financial advisors, with 300 new advisors purchasing Hennessy Funds for the first time during the recent quarter.

In terms of strategic developments, Hennessy Advisors is in the process of acquiring assets related to the management of the STF Tactical Growth & Income ETF and the STF Tactical Growth ETF, with the transaction expected to close in the third calendar quarter of 2025. The company has also adopted a new Dividend Reinvestment and Stock Purchase Plan, which has facilitated the issuance of shares to both existing and new investors. As of June 30, 2025, Hennessy Advisors had cash and cash equivalents of $70.3 million, indicating a solid liquidity position to support ongoing operations and future growth initiatives.

Looking ahead, Hennessy Advisors remains focused on organic growth and the successful integration of acquisitions. The company anticipates that its strategic initiatives, combined with a disciplined investment approach, will continue to enhance its market position and drive shareholder value. Management expressed confidence in the company's ability to navigate market conditions and regulatory challenges while maintaining a commitment to delivering high-quality service to investors.