Hennessy Advisors (HNNA) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 revenue rose 58.0% YoY to $9.708M; net income increased 136.2% to $2.834M, and diluted EPS rose 125.0% to $0.36.

• Average AUM increased 58.8% YoY to $4.82B; total AUM reached $4.78B at Dec. 31, 2024, up 45.7% YoY.

Financial highlights

• Revenue was $9.708M vs. $6.144M YoY, including $9.061M in advisory fees and $647K in shareholder service fees.

• Net operating income was $3.830M vs. $1.425M; income before tax was $3.967M vs. $1.644M.

• Operating expenses rose 24.6% to $5.9M, while expenses as a share of revenue fell to 60.5% from 76.8%.

• Weighted average diluted shares increased 2.5% to 7.86M.

Outlook and guidance

• Management described the start of FY2025 as solid, plans to build on product performance and shareholder returns, and expects positive market momentum while acknowledging possible volatility.

• Cash and other liquid assets at Dec. 31, 2024 are expected to cover capital requirements for at least one year and longer-term needs; additional financing may be sought if resources fall short.

• Expense ratio limitations for the Midstream Fund, Technology Fund, and Stance ESG ETF expire Feb. 28, 2025, unless extended.