Hennessy Advisors (HNNA) Q1 2026 earnings summary

Executive summary

• Q1 FY2026 revenue was $8.32M, down 14.3% YoY; net income was $1.93M, down 31.9%, and diluted EPS was $0.24 vs. $0.36.

• Average AUM was $4.17B, down 13.5% YoY; quarter-end AUM was $4.09B, down 14.3%, as net outflows were partly offset by market appreciation.

• Cash and cash equivalents net of gross debt rose 28.3% YoY to $31.7M.

Financial highlights

• Investment advisory fees were $7.76M vs. $9.06M YoY; shareholder service fees were $559K vs. $647K.

• Net operating income was $2.60M vs. $3.83M; income before tax was $2.68M vs. $3.97M.

• Operating expenses declined 2.8% to $5.72M but rose to 68.7% of revenue from 60.5%.

• Cash and cash equivalents were $72.0M at Dec. 31, 2025; operating cash flow was $661K vs. $2.23M YoY.

Outlook and guidance

• Cash and liquid assets at Dec. 31, 2025 were expected to cover capital requirements for at least one year from report issuance and longer-term requirements; additional financing may be sought if needed, with availability not assured.

• Strategy focuses on acquisitions and organic growth through asset retention and fund inflows, with continued focus on fund performance and investor service.

• Management said a 2026 soft landing remained reasonable, citing projected GDP growth, improving earnings and continued economic expansion.