Sign in

You're signed outSign in or to get full access.

HA

HENNESSY ADVISORS INC (HNNA)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 revenue was $8.05M, up 3.5% year over year but down sequentially from Q2’s $9.28M; diluted EPS was $0.26, flat year over year and down from $0.33 in Q2 .
  • Average AUM was $4.10B (+5.3% YoY), while total AUM at quarter-end was $4.28B (+6.3% YoY); cash and equivalents net of gross debt rose to $30.07M (+38.1% YoY), underscoring balance sheet strength .
  • The company declared a quarterly dividend of $0.1375 per share, consistent with prior quarters; implied annualized yield was 4.4% based on the $12.63 closing price on Aug 5, 2025 .
  • Management emphasized macro volatility (inflation, tariffs, rate-cut timing) but highlighted resilient US labor markets and improving consumer sentiment; they remain confident and are progressing toward assuming management of two STF ETFs .
  • Wall Street consensus estimates (S&P Global) were unavailable for EPS and revenue, so no beat/miss determination can be made for the quarter (Values retrieved from S&P Global).

What Went Well and What Went Wrong

What Went Well

  • AUM and liquidity strengthened: total AUM reached $4.28B (+6.3% YoY) and cash net of gross debt rose to $30.07M (+38.1% YoY), enhancing flexibility for growth initiatives .
  • Dividend consistency supports shareholder returns: $0.1375 per share declared again, maintaining a steady payout policy and a 4.4% annualized yield at the referenced price .
  • Strategic progress: “We…remain focused on completing the process for Hennessy Advisors to assume management of the STF Tactical Growth & Income ETF and the STF Tactical Growth ETF, which would expand our ETF offerings,” said President and COO Teresa Nilsen .

What Went Wrong

  • Sequential revenue normalization: revenue declined from $9.28M in Q2 to $8.05M in Q3 as average AUM fell from $4.75B to $4.10B, reflecting market volatility’s impact on fees .
  • EPS compressed QoQ from $0.33 to $0.26 as net income declined from $2.58M to $2.12M, mirroring the lower fee base .
  • Limited transparency vs. estimates: S&P Global consensus (EPS/revenue) was not available, constraining external benchmarking for the quarter (Values retrieved from S&P Global).

Financial Results

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Total Revenue ($USD)$7,784,523 $9,707,818 $9,275,783 $8,054,259
Net Income ($USD)$2,029,527 $2,834,223 $2,582,979 $2,120,934
Diluted EPS ($USD)$0.26 $0.36 $0.33 $0.26
Net Income Margin %26.07%*29.19%*27.85%*26.33%*

Values retrieved from S&P Global.

  • S&P Global data.

KPIs

KPIQ3 2024Q1 2025Q2 2025Q3 2025
Average AUM ($USD)$3,893,131,722 $4,824,051,149 $4,746,380,124 $4,098,783,695
Total AUM ($USD, quarter-end)$4,027,830,779 $4,778,981,545 $4,255,690,493 $4,280,005,244
Cash & Equivalents, net of gross debt ($USD)$21,767,015 $24,728,893 $27,311,927 $30,069,042
Weighted Avg Diluted Shares7,732,068 7,862,881 7,912,156 7,960,872

Notes:

  • YoY: Revenue +3.5% and net income +4.5%; EPS unchanged .
  • QoQ: Revenue down from Q2 to Q3; average AUM down QoQ, consistent with fee-driven revenue sensitivity .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend per shareQ3 2025$0.1375 (declared in Q2 2025) $0.1375 (declared) Maintained

Management reiterated confidence in market resilience but did not provide numerical guidance for revenue, margins, OpEx, OI&E, or tax rate .

Earnings Call Themes & Trends

Note: No Q3 2025 earnings call transcript was available; themes summarized from press releases.

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q3 2025)Trend
Macro backdrop (inflation, tariffs, rates)Q1: Strong economy, mild inflation; optimism for 2025 . Q2: Heightened volatility, sweeping tariffs; uncertainty around tax/inflation/rates .Markets up with volatility from inflation, tariffs, delayed rate cuts; post-July fiscal legislation adds clarity; management confident .Continued cautious optimism despite volatility.
Product performanceQ1: All 17 funds positive returns in 2024; longer-term positive multi-period performance . Q2: No specific product performance update .No specific product performance update; focus on AUM and liquidity .Strong performance noted in Q1; not reiterated Q2/Q3.
AUM and liquidityQ1: Total AUM $4.78B; cash net of debt $24.73M . Q2: AUM $4.26B; cash $27.31M .AUM $4.28B; cash $30.07M .Cash rising sequentially; AUM stable YoY, lower vs Q1 peak.
ETF expansionQ2: Signed definitive agreement with STF Management to expand ETF offerings .Focused on completing process to assume management of STF ETFs .Execution progressing from agreement to assumption.
Dividend policyQ1: $0.1375 declared . Q2: $0.1375 declared .$0.1375 declared .Maintained.

Management Commentary

  • Neil Hennessy (CEO): “Rather than react to the constant flurry of financial headlines, we stay grounded in the fundamentals… GDP is rising modestly, while inflation continues to moderate… We’re also seeing encouraging signs in corporate earnings and businesses putting money to work” .
  • Neil Hennessy (CEO): “With the passage of major fiscal legislation in early July, I believe investors now have the clarity needed to refocus on the strength of the economic data. I remain confident in the resilience of the market and optimistic about future performance” .
  • Teresa Nilsen (President & COO): “We’re pleased to report growth in assets under management, continued positive earnings, ongoing quarterly dividend payments, and a growing cash position… We also remain focused on completing the process for Hennessy Advisors to assume management of the STF Tactical Growth & Income ETF and the STF Tactical Growth ETF” .
  • Q1 tone: Strong product performance and significant YoY gains in revenue/EPS/AUM; confidence in consumer spending and corporate profits .

Q&A Highlights

No Q3 2025 earnings call transcript was available; the company did not publish a call transcript for this quarter based on our document search (8-Ks and press releases only) .

Estimates Context

  • S&P Global consensus estimates for HNNA’s Q3 2025 were unavailable for EPS and revenue (no counts or consensus values), so we cannot assess a beat/miss (Values retrieved from S&P Global).
  • Actual revenue of $8.05M is from company filings; no S&P Global consensus for comparison .

Key Takeaways for Investors

  • Fee-revenue sensitivity: Sequential revenue/EPS compression aligns with lower average AUM vs Q2; monitor market levels and flows given fee-based model .
  • Balance sheet strength: Cash net of debt increased to $30.07M, providing optionality for strategic initiatives and shareholder returns .
  • Stable capital return: Dividend held at $0.1375 per share across Q1–Q3 2025, supporting yield-based investors .
  • Strategic catalyst: Progress toward assuming management of STF ETFs could broaden product lineup and potentially support AUM growth over time .
  • Macro overlay: Management sees resilient labor markets and improving sentiment despite tariff/inflation uncertainty; performance trajectory will remain tied to market conditions .
  • Monitoring points: Watch AUM trajectory (Q3 $4.28B vs Q2 $4.26B vs Q1 $4.78B) and average AUM trends ($4.10B in Q3) to gauge near-term earnings power .
  • Estimates gap: With limited external consensus coverage, rely on company-reported metrics and AUM trends for near-term forecasting (Values retrieved from S&P Global).