HNNA · Hennessy Advisors, Inc.

Hennessy Advisors, Inc. reported financial results for its second fiscal quarter ended March 31, 2026, showing declines across key income statement metrics amid market volatility. Total revenue fell 12.3% to $8.1 million from $9.3 million in the prior year quarter, driven by a 12.2% drop in average assets under management to $4.2 billion, reflecting lower fee-based earnings. Net income decreased 26.1% to $1.9 million, with diluted EPS at $0.24 versus $0.33 year-over-year, impacted by reduced revenue while maintaining consistent profitability. Total assets under management stood at $3.9 billion, down 7.8% from $4.3 billion at March 31, 2025. Positively, cash and cash equivalents net of gross debt rose 20.1% to $32.8 million, supporting capital return initiatives. Management, led by Chairman and CEO Neil Hennessy, attributed challenges to geopolitical tensions, inflation, and energy costs in March, yet expressed optimism on long-term U.S. economic fundamentals and equity markets. President and COO Teresa Nilsen highlighted the recent 9% dividend increase from last quarter—the first since 2019—backed by strong cash position and profitability, with today's $0.15 per share declaration payable June 4, 2026, to record holders on May 21, 2026, equating to an annualized 6.0% yield based on May 5 closing price of $9.97. The company continues disciplined investing, marking 30 years since launching its first mutual fund in 1996, while building cash for strategic growth opportunities.