Hennessy Advisors, Inc. Reports Quarterly Earnings and Announces Quarterly Dividend

Rhea-AI Summary

Hennessy Advisors (Nasdaq: HNNA) reported results for its third fiscal quarter ended June 30, 2026, and declared a $0.15 quarterly dividend per share, payable on September 3, 2026 to shareholders of record on August 20, 2026, implying an annualized yield of 6.1% based on a $9.76 share price.

Total revenue was $8.39 million, up 4.2% year over year. Net income was $2.0 million, down 5.7%, and diluted EPS was $0.25, down 3.8%, which the company links primarily to early redemption of $40.25 million in notes payable, six months ahead of the December 31, 2026 maturity.

Average assets under management were $4.26 billion, up 4.0%, with period-end AUM of $4.39 billion, up 2.6%. Cash and cash equivalents net of gross debt rose 17.6% to $35.35 million, which Hennessy Advisors views as supporting both strategic acquisitions and ongoing shareholder dividends.

Positive

• Total revenue $8.39M, up 4.2% year over year
• Average AUM $4.26B, up 4.0% year over year
• Net cash position $35.35M, up 17.6% year over year
• Quarterly dividend $0.15 per share; 6.1% annualized yield
• Early redemption of $40.25M notes payable before December 31, 2026 maturity

Negative

• Net income $2.0M, down 5.7% year over year
• Diluted EPS $0.25, down 3.8% year over year
• Debt redemption costs reduced current-quarter earnings via accelerated financing expense

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NOVATO, Calif., Aug. 5, 2026 /PRNewswire/ -- Hennessy Advisors, Inc. (Nasdaq: HNNA) reported results for its third fiscal quarter ended June 30, 2026, and declared a quarterly dividend of $0.15 per share to be paid on September 3, 2026, to shareholders of record as of August 20, 2026. The dividend represents an annualized yield of 6.1%.*

"The U.S. stock market has delivered solid performance over the first half of 2026. I believe the market is trading on fundamentally positive information – strong corporate earnings as well as employment and wage growth – as opposed to any AI 'hype.' It is no longer primarily the Magnificent 7 driving market growth. Instead, we are seeing small and midcap growth and value stocks participating in the market's advance," said Neil Hennessy, Chairman and CEO. "I believe the shift in sentiment bodes well for long-term market performance. While interest rates may be higher than we had hoped, and geopolitical strain continues on a global level, I believe the underlying fundamentals continue to support measured growth, and I'm hopeful that we close out 2026 with another year of positive market returns," he added.

"This quarter, we made the decision to redeem our notes payable of $40.25 million six months ahead of the maturity date of December 31, 2026," said Teresa Nilsen, President and COO. "That decision reflects our assessment of current interest rates, our available cash position, and our analysis of short-term capital needs."

"We are pleased to report a 4% increase in revenue driven by higher assets under management year-over-year," she continued. "While the early redemption of our notes payable reduced earnings in the current quarter due to the accelerated recognition of financing costs, our net cash position increased 18% from the prior year to more than $35 million. We believe our balance sheet remains a competitive advantage, allowing us to pursue strategic acquisition opportunities while continuing to return capital to our shareholders through a dividend." 

Summary Highlights (compared to the prior comparable quarter ended June 30, 2025):

• Total revenue of $8.4 million, an increase of 4%.
• Net income of $2.0 million, a decrease of 6%, primarily attributable to the early redemption of debt.
• Fully diluted earnings per share of $0.25, a decrease of 4%.
• Average assets under management, upon which revenue is earned, of $4.3 billion, an increase of 4%.
• Total assets under management of $4.4 billion, an increase of 3%.
• Cash and cash equivalents, net of gross debt, of $35.4 million, an increase of 18%.

		Three Months Ended Jun 30,				Change
		2026		2025		Amount		Percent
Total Revenue		$         8,390,476		$         8,054,259		$         336,217		4.2 %
Net Income		1,999,148		2,120,934		(121,786)		-5.7 %
Earnings Per Share (Diluted)		0.25		0.26		(0.01)		-3.8 %
Weighted Average Number of Shares Outstanding (Diluted)		8,038,411		7,960,872		77,539		1.0 %
Average Assets Under Management		4,261,027,927		4,098,783,695		162,244,232		4.0 %
		As of Jun 30,
		2026		2025
Total Assets Under Management		$   4,390,624,761		$   4,280,005,244		$   110,619,517		2.6 %
Cash and Cash Equivalents, Net of Gross Debt Balance		35,350,689		30,069,042		5,281,647		17.6 %

* Based on the closing stock price of $9.76 on August 4, 2026, and an annualized dividend of $0.60 per share.

About Hennessy Advisors, Inc.
Hennessy Advisors, Inc. is a publicly traded investment manager offering a broad range of domestic equity, multi-asset, and sector and specialty funds. Hennessy Advisors, Inc. is committed to providing superior service to shareholders and employing a consistent and disciplined approach to investing based on a buy‑and‑hold philosophy that rejects the idea of market timing.

Supplemental Information
Nothing in this press release shall be considered a solicitation to buy or an offer to sell a security to any person in any jurisdiction where such offer, solicitation, purchase, or sale would be unlawful under the securities laws of such jurisdiction.

Forward-Looking Statements
This press release contains "forward-looking statements" for which Hennessy Advisors, Inc. claims the protection of the safe harbor contained in the Private Securities Litigation Reform Act of 1995. Forward‑looking statements relate to expectations and projections about future events based on currently available information. Forward‑looking statements are not a guarantee of future performance or results and are not necessarily accurate indications of the times at which, or means by which, such performance or results may be achieved. Forward‑looking statements are subject to risks, uncertainties, and assumptions, including those described in the sections entitled "Risk Factors" and elsewhere in the reports that Hennessy Advisors, Inc. files with the Securities and Exchange Commission. Unforeseen developments could cause actual performance or results to differ substantially from those expressed in, or suggested by, the forward‑looking statements. Hennessy Advisors, Inc. management does not assume responsibility for the accuracy or completeness of the forward-looking statements and undertakes no responsibility to update any such statement after the date of this press release to conform to actual results or to changes in expectations.

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SOURCE Hennessy Advisors, Inc.

FAQ

What were Hennessy Advisors (NASDAQ: HNNA) Q3 2026 earnings results for the quarter ended June 30, 2026?

Hennessy Advisors reported Q3 2026 revenue of $8.39 million, net income of $2.0 million, and diluted EPS of $0.25. According to Hennessy Advisors, revenue rose 4.2% year over year, while net income declined 5.7% and EPS fell 3.8% versus Q3 2025.

How much is Hennessy Advisors’ quarterly dividend in 2026 and what is the yield for HNNA shareholders?

Hennessy Advisors declared a $0.15 per share quarterly dividend, payable September 3, 2026, to shareholders of record August 20, 2026. According to Hennessy Advisors, this equals an annualized $0.60 per share and a 6.1% yield based on the August 4, 2026 closing price.

What are Hennessy Advisors’ assets under management (AUM) as of June 30, 2026?

Hennessy Advisors reported total assets under management of $4.39 billion as of June 30, 2026, up 2.6% year over year. According to Hennessy Advisors, average AUM for the quarter was $4.26 billion, a 4.0% increase compared with the prior-year quarter.

Why did Hennessy Advisors redeem $40.25 million of notes payable early in 2026?

Hennessy Advisors redeemed $40.25 million of notes payable six months before their December 31, 2026 maturity. According to Hennessy Advisors, this decision reflected its assessment of interest rates, current cash position, and short-term capital needs, though it reduced current-quarter earnings through accelerated financing costs.

How did Hennessy Advisors’ cash position change year over year in Q3 2026?

Hennessy Advisors’ cash and cash equivalents net of gross debt reached $35.35 million as of June 30, 2026, a 17.6% year-over-year increase. According to Hennessy Advisors, this stronger net cash position supports pursuing strategic acquisition opportunities while continuing to fund shareholder dividends.

Is Hennessy Advisors growing revenue despite lower earnings in the June 30, 2026 quarter?

Yes. Hennessy Advisors’ revenue increased 4.2% year over year to $8.39 million, while net income declined 5.7% to $2.0 million. According to Hennessy Advisors, the net income decline was primarily due to accelerated financing costs from early debt redemption, not weaker underlying operations.

What does the June 2026 dividend announcement mean for Hennessy Advisors (HNNA) shareholders?

The announced $0.15 quarterly dividend provides ongoing cash returns to Hennessy Advisors shareholders, implying a 6.1% annualized yield at a $9.76 share price. According to Hennessy Advisors, maintaining this dividend reflects confidence in its balance sheet while it also evaluates strategic acquisition opportunities.