Hennessy Advisors, Inc. Reports Quarterly Earnings

Rhea-AI Summary

Hennessy Advisors (Nasdaq: HNNA) reported Q1 fiscal 2026 results for the quarter ended December 31, 2025, and declared a quarterly dividend of $0.15 per share, a 9% increase payable March 4, 2026 to shareholders of record Feb 18, 2026.

Key metrics: total revenue $8.3M (-14%), net income $1.9M (-32%), diluted EPS $0.24 (-33%), average AUM $4.17B (-13.5%), total AUM $4.09B (-14.3%), and cash net of debt $31.7M (+28%).

Positive

• Quarterly dividend increased to $0.15 (9% rise)
• Cash net of debt up 28% to $31.7M
• This marks the 15th consecutive dividend increase

Negative

• Total revenue down 14% year-over-year
• Net income declined 31.9% versus prior comparable quarter
• Diluted EPS fell 33.3% year-over-year
• Total assets under management decreased 14.3%

Key Figures

Quarterly dividend: $0.15 per share Dividend yield: 5.9% Total revenue: $8.3 million +5 more

8 metrics

Quarterly dividend $0.15 per share Quarterly dividend declared; 9% increase and 15th dividend hike

Dividend yield 5.9% Annualized yield based on $10.15 closing price on Feb 4, 2026

Total revenue $8.3 million Q1 2026, down 14% vs prior-year quarter

Net income $1.9 million Q1 2026, down 32% vs prior-year quarter

Diluted EPS $0.24 Q1 2026, down 33% vs prior-year quarter

Average AUM $4.2 billion Average assets under management, down 14% vs prior-year quarter

Total AUM $4.1 billion Assets under management as of Dec 31, 2025, down 14% YoY

Cash net of debt $31.7 million Cash and cash equivalents net of gross debt, up 28% YoY

Market Reality Check

Price: $9.88 Vol: Volume 21,406 vs 20-day a...

normal vol

$9.88 Last Close

Volume Volume 21,406 vs 20-day average 19,996 (relative volume 1.07) ahead of the earnings release. normal

Technical Shares at $10.15, trading below the 200-day MA of $10.79 and 23.05% under the 52-week high.

Peers on Argus

HNNA was up 1.5% pre-release while peers showed mixed, mostly modest moves (e.g....

HNNA was up 1.5% pre-release while peers showed mixed, mostly modest moves (e.g., CEE +0.83%, GDO -0.43%, IGI -0.06%), with no names in the momentum scanner.

Historical Context

3 past events · Latest: Dec 03 (Positive)

Pattern 3 events

Date	Event	Sentiment	Move	Catalyst
Dec 03	Fiscal 2025 results	Positive	+1.7%	Full-year revenue, earnings, AUM and cash all showed strong growth.
Oct 29	Dividend declaration	Neutral	-2.0%	Quarterly cash dividend maintained with yield near 5.8% at that time.
Aug 06	Quarterly earnings, dividend	Positive	-4.5%	Q3 revenue, net income, AUM and cash increased; dividend reaffirmed.

Pattern Detected

Recent positive fundamental updates have not consistently led to positive next-day moves, especially around dividend and quarterly reports.

Recent Company History

Over the past six months, Hennessy Advisors reported strong fiscal 2025 results on Dec 3, 2025, with higher revenue, earnings, and cash, and the stock rose about 1.7%. A dividend declaration on Oct 29, 2025 corresponded with a modest negative move of about 2.0%. Earlier, on Aug 6, 2025, a solid quarterly report with rising AUM and cash plus a dividend coincided with a roughly 4.5% decline, showing that good fundamentals have sometimes met selling pressure.

Market Pulse Summary

This announcement highlights mixed fundamentals: lower quarterly revenue, net income, EPS, and AUM c...

Analysis

This announcement highlights mixed fundamentals: lower quarterly revenue, net income, EPS, and AUM compared with the prior year, offset by a stronger cash position of $31.7M and a 9% dividend increase to $0.15 per share, implying a 5.9% yield. Recent history shows that strong full-year 2025 results preceded this softer quarter. Investors may track future AUM trends, earnings stability, and the sustainability of ongoing dividend growth.

Key Terms

assets under management, earnings per share, record date, cash and cash equivalents, +1 more

5 terms

assets under management financial

"Average assets under management, upon which revenue is earned: $4.2 billion (down 14%)"

Assets under management (AUM) is the total value of all the investments that a financial company or fund is responsible for overseeing on behalf of its clients. It’s like a big bucket that shows how much money the firm is managing for people or organizations. A higher AUM often indicates a larger, more trusted company, and it can influence how much money they earn and the services they can offer.

earnings per share financial

"Fully diluted earnings per share: $0.24 (down 33%)"

Earnings per share represent the amount of profit a company makes for each share of its stock, similar to how a pie’s total size can be divided into slices for each person. It helps investors understand how profitable the company is on a per-share basis, making it easier to compare its performance over time or against other companies. Higher earnings per share generally indicate better profitability and can influence a company's stock value.

record date financial

"to shareholders of record as of February 18, 2026."

The record date is the specific day when a company determines which shareholders are eligible to receive a dividend or participate in an upcoming vote. It’s like a cutoff date; if you own the stock on that day, you get the benefits or voting rights. This date matters because it decides who qualifies for certain company benefits.

cash and cash equivalents financial

"Cash and cash equivalents, net of gross debt: $31.7 million (up 28%)"

Cash and cash equivalents are the money a company has on hand plus very short-term, low-risk investments that can be quickly turned into cash, like bank deposits or government bills. Investors watch this figure because it shows a company’s immediate ability to pay bills, cover unexpected costs, and fund operations or growth — like a household’s checking account and emergency fund that keeps daily life running smoothly.

buy‑and‑hold technical

"approach to investing based on a buy‑and‑hold philosophy that rejects the idea of market timing."

An investment strategy where an investor buys stocks or other securities and keeps them for a long period, ignoring short-term market ups and downs. It matters because holding for the long run can lower trading costs and taxes and lets investments benefit from compounding, similar to planting a tree and waiting for it to grow rather than constantly replanting; however, it requires patience and tolerance for temporary losses.

AI-generated analysis. Not financial advice.

Firm Announces 15^th Dividend Increase

NOVATO, Calif., Feb. 5, 2026 /PRNewswire/ -- Hennessy Advisors, Inc. (Nasdaq: HNNA) today announced financial results for its first fiscal quarter of 2026, which ended December 31, 2025. The Board of Directors also declared a quarterly dividend of $0.15 per share, a 9% increase, which will be paid on March 4, 2026, to shareholders of record as of February 18, 2026. This represents an annualized dividend yield of 5.9%, based on a closing price of $10.15 on February 4, 2026.

"The sentiment I continue to hear is that 2025 was a 'surprisingly strong' year for the U.S. stock market. I would argue the strength of the market speaks for itself and reflects solid underlying economic fundamentals," said Neil Hennessy, Chairman and CEO. "The natural question is what comes next. While concerns remain around inflation, global trade tensions, and interest rates, I continue to believe in the resilience of the U.S. economy. Headlines may create volatility, but I am confident that a soft landing in 2026 remains a reasonable expectation, supported by projected GDP growth, improving earnings, and continued economic expansion."

"Here at Hennessy, we manage our products with a steady hand and a long-term perspective," he added.  "We appreciate the continued trust of our shareholders and remain focused on disciplined execution and persistence in the year ahead."  

"Despite lower assets and earnings compared to the prior year, our balance sheet continues to strengthen," stated Teresa Nilsen, President and COO. "Cash net of debt has increased nearly 30% over the past twelve months."

"Our strong cash position is allowing us to make the strategic decision to increase our quarterly dividend to $0.15 per share," Nilsen added. "This marks our 15^th dividend increase and reflects our commitment to returning capital to shareholders, while maintaining the financial strength and operational efficiency needed to act decisively when the right opportunities arise."

Summary Highlights (compared to the prior comparable quarter ended December 31, 2024):

• Total revenue: $8.3 million (down 14%)
• Net income: $1.9 million (down 32%)
• Fully diluted earnings per share: $0.24 (down 33%)
• Average assets under management, upon which revenue is earned: $4.2 billion (down 14%)
• Total assets under management: $4.1 billion (down 14%)
• Cash and cash equivalents, net of gross debt: $31.7 million (up 28%)

		Three Months Ended Dec 31,				Change
		2025		2024		Amount		Percent
Total Revenue		$           8,320,250		$           9,707,818		$        (1,387,568)		-14.3 %
Net Income		1,929,774		2,834,223		(904,449)		-31.9 %
Earnings Per Share (Diluted)		0.24		0.36		(0.12)		-33.3 %
Weighted Average Number of Shares Outstanding (Diluted)		7,965,547		7,862,881		102,666		1.3 %
Average Assets Under Management		4,170,760,003		4,824,051,149		(653,291,146)		-13.5 %
		As of Dec 31,
		2025		2024
Total Assets Under Management		$     4,094,154,888		$     4,778,981,545		$    (684,826,657)		-14.3 %
Cash and Cash Equivalents, Net of Gross Debt Balance		31,717,349		24,728,893		6,988,456		28.3 %

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.

View original content:https://www.prnewswire.com/news-releases/hennessy-advisors-inc-reports-quarterly-earnings-302680653.html

SOURCE Hennessy Advisors, Inc.

FAQ

What did Hennessy Advisors (HNNA) report for Q1 fiscal 2026 revenue and earnings?

Hennessy reported $8.3M in total revenue and $1.9M net income for Q1 fiscal 2026. According to the company, revenue was down 14% and net income declined about 32% versus the prior-year quarter.

When is the HNNA dividend payable and what yield does it represent?

The quarterly dividend of $0.15 per share is payable March 4, 2026 to holders of record Feb 18, 2026. According to the company, that equals a ~5.9% annualized yield based on the Feb 4, 2026 closing price.

How did Hennessy Advisors' assets under management (AUM) change in Q1 2026?

Total AUM declined to $4.094B, a decrease of about 14.3% year-over-year. According to the company, average AUM for the quarter was roughly $4.17B, down 13.5% from the prior comparable quarter.

What does HNNA say about its cash position and capital return strategy?

Hennessy reported cash net of gross debt of $31.7M, an increase of about 28% year-over-year. According to the company, the stronger cash position supports the dividend increase and ongoing capital return to shareholders.

Did Hennessy Advisors provide guidance or commentary about 2026 market outlook in the release?

Management expressed confidence in a potential soft landing for 2026 and emphasized a long-term, disciplined approach to investing. According to the company, they remain focused on execution amid inflation and interest-rate concerns.