Hennessy Advisors Reports 19.9% Revenue Growth to $35.5 Million for Fiscal Year 2025

Hennessy Advisors, Inc. reported a total revenue of $35.5 million for the fiscal year ending September 30, 2025, marking a 19.9% increase from $29.6 million in the previous year. This growth was primarily driven by a 20.5% rise in investment advisory fees, which reached $33.2 million, attributed to an increase in average daily net assets of the Hennessy Funds. Shareholder service fees also saw an increase of 11.4%, totaling $2.4 million, reflecting a rise in assets held in Investor Class shares. The company's average assets under management for the fiscal year were $4.5 billion, up from $3.7 billion in 2024.

Despite the revenue growth, Hennessy Advisors experienced a decrease in total assets under management, which fell to $4.2 billion, down 8.6% from $4.6 billion at the end of fiscal year 2024. This decline was primarily due to net outflows from the Hennessy Funds, which amounted to $1.99 billion, although this was partially offset by market appreciation of $237.5 million. The company reported that the only fund with net inflows was the Hennessy Midstream Fund, which saw an increase of $3 million, while the Hennessy Focus Fund and Hennessy Cornerstone Growth Fund faced significant outflows of $210 million and $44 million, respectively.

Strategically, Hennessy Advisors has continued to pursue growth through acquisitions, signing a definitive agreement in March 2025 to purchase the assets related to the management of the STF Tactical Growth & Income ETF and the STF Tactical Growth ETF. This acquisition is expected to be completed in December 2025, pending shareholder approval. The company also reported an increase in its management contract asset, which rose to $82.6 million, reflecting costs associated with the recent acquisition agreement.

Operationally, Hennessy Advisors serves over 183,000 fund accounts and approximately 11,100 financial advisors, with a focus on retaining assets and generating inflows. The company has maintained a stable employee count of 18, with an average tenure of 14 years. Looking ahead, Hennessy Advisors aims to enhance its marketing and distribution efforts to attract new investors and retain existing ones, while also navigating the competitive landscape of the investment advisory industry.

In terms of financial health, Hennessy Advisors reported a net income of $10 million for fiscal year 2025, a 40.3% increase from $7.1 million in the previous year. The company’s operating expenses increased by 7.8% to $22.4 million, but as a percentage of total revenue, these expenses decreased to 63%. The firm continues to focus on delivering strong investment performance and maintaining a disciplined approach to investing, which it believes will support future growth and investor confidence.