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Hennessy Advisors, Inc. Q1 2026 Financial Results

In its recent release, Hennessy Advisors, Inc. (Nasdaq: HNNA) has revealed its financial performance for the first fiscal quarter of 2026, which concluded on December 31, 2025. The report showcases a mix of challenges and positive strides in the firm’s financial management.

Financial Highlights

For the quarter, Hennessy Advisors reported a total revenue of $8.32 million, reflecting a 14% decrease from $9.71 million in the same quarter last year. Along with this revenue drop, the net income also saw a decline, reporting $1.93 million, down 32% from the previous year’s $2.83 million. Consequently, diluted earnings per share fell to $0.24, marking a 33% drop compared to $0.36 in the prior year. The average assets under management fell to $4.17 billion, a 14% decrease from last year’s comparable quarter of $4.82 billion. Meanwhile, the total assets under management were reported at $4.09 billion, down 14.3%. Despite these declines, Hennessy’s cash position improved significantly, with cash and equivalents (net of gross debt) increasing by nearly 30% to $31.7 million.

Dividend Increase

In a noteworthy move, the Board of Directors announced a quarterly dividend of $0.15 per share, representing a 9% increase from previous disbursements. This decision marks the 15th increase in dividends since the company went public, demonstrating Hennessy’s commitment to returning value to its shareholders. The dividend is set to be paid on March 4, 2026, to shareholders on record as of February 18, 2026. Based on the closing share price of $10.15 on February 4, 2026, this reflects an impressive annualized dividend yield of 5.9%.

Leadership Insights

Neil Hennessy, Chairman and CEO, expressed optimism about the resilience of the U.S. economy despite prevailing concerns regarding inflation, global trade tensions, and fluctuating interest rates. He noted that the strong performance of the U.S. stock market in 2025 reflects solid underlying economic fundamentals. Hennessy remains confident in achieving a soft landing for the economy in 2026, evident from projected GDP growth and improving earnings.

“Headlines may create volatility, but I believe in the robustness of the U.S. economy. We approach our management with a steady hand and maintain a long-term perspective,” said Neil Hennessy.

Teresa Nilsen, President and COO, also highlighted the firm’s strengthening balance sheet. She noted that despite lower assets and earnings compared to the previous year, their cash position supports strategic decisions like increasing dividends.

Strategic Focus Moving Forward

Despite facing a declining asset and revenue environment, Hennessy Advisors remains dedicated to disciplined execution and operational efficiency. The emphasis on a buy-and-hold investment philosophy continues to guide their strategy.
Hennessy Advisors, Inc. is renowned for its commitment to long-term growth through consistent performance in managing domestic equity, multi-asset, and sector specialty funds. As they navigate through the economic landscape of 2026, their strategic focus appears attuned to capitalizing on future opportunities while maintaining a commitment to shareholder value.

Conclusion

In summary, Hennessy Advisors, Inc. has continued to display resilience in its financial performance amidst challenges. The declaration of its quarterly dividend stands as a testament to its commitment to returning value to shareholders, reinforcing a foundation of trust and stability moving forward.