PART I - Financial Information [Item 1 - Unaudited Condensed Financial Statements](index=4&type=section&id=Item%201%20-%20Unaudited%20Condensed%20Financial%20Statements) This section presents the unaudited condensed financial statements for Hennessy Advisors, Inc., including the Balance Sheets, Statements of Income, Statements of Changes in Stockholders' Equity, and Statements of Cash Flows, along with detailed notes explaining the basis of presentation, significant accounting policies, and specific financial items for the periods ended June 30, 2025, and September 30, 2024 [Balance Sheets](index=4&type=page&id=Balance%20Sheets) Balance Sheets (in thousands) | Metric | June 30, 2025 (in thousands) | September 30, 2024 (in thousands) | Change (vs. Sep 30, 2024) | | :-------------------------------- | :----------------------------- | :-------------------------------- | :-------------------------- | | Cash and cash equivalents | $70,319 | $63,922 | +$6,397 | | Total current assets | $74,187 | $68,276 | +$5,911 | | Management contracts | $82,438 | $82,252 | +$186 | | Total assets | $158,005 | $152,099 | +$5,906 | | Total current liabilities | $4,763 | $4,954 | -$191 | | Notes payable, net | $39,723 | $39,477 | +$246 | | Total liabilities | $61,455 | $60,788 | +$667 | | Total stockholders' equity | $96,550 | $91,311 | +$5,239 | [Statements of Income](index=5&type=page&id=Statements%20of%20Income) Statements of Income (in thousands) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change (3M) | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | YoY Change (9M) | | :-------------------- | :------------------------------- | :------------------------------- | :-------------- | :------------------------------ | :------------------------------ | :-------------- | | Investment advisory fees | $7,508 | $7,242 | +3.7% | $25,242 | $19,343 | +30.5% | | Shareholder service fees | $546 | $542 | +0.7% | $1,796 | $1,525 | +17.8% | | Total revenue | $8,054 | $7,784 | +3.5% | $27,038 | $20,868 | +29.6% | | Total operating expenses | $5,205 | $5,199 | +0.1% | $16,908 | $14,939 | +13.2% | | Net operating income | $2,849 | $2,585 | +10.2% | $10,130 | $5,929 | +70.9% | | Net income | $2,121 | $2,029 | +4.5% | $7,538 | $4,769 | +58.1% | | Basic EPS | $0.27 | $0.26 | +3.8% | $0.97 | $0.62 | +56.5% | | Diluted EPS | $0.26 | $0.26 | 0.0% | $0.95 | $0.62 | +53.2% | | Cash dividends declared per share | $0.14 | $0.14 | 0.0% | $0.41 | $0.41 | 0.0% | [Statements of Changes in Stockholders' Equity](index=6&type=page&id=Statements%20of%20Changes%20in%20Stockholders'%20Equity) Statements of Changes in Stockholders' Equity (in thousands) | Metric (in thousands) | Balance at Sep 30, 2024 | Balance at Jun 30, 2025 | Change | | :-------------------- | :---------------------- | :---------------------- | :----- | | Common Stock Amount | $22,592 | $23,504 | +$912 | | Retained Earnings | $68,719 | $73,046 | +$4,327 | | Total Stockholders' Equity | $91,311 | $96,550 | +$5,239 | - The increase in common stock amount is primarily due to stock-based compensation and shares issued for dividend reinvestment and auto-investments under the DRSPP[16](index=16&type=chunk) [Statements of Cash Flows](index=8&type=page&id=Statements%20of%20Cash%20Flows) Cash Flow Activity (in thousands) | Cash Flow Activity (in thousands) | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | YoY Change | | :-------------------------------- | :------------------------------ | :------------------------------ | :--------- | | Net cash provided by operating activities | $9,995 | $5,841 | +$4,154 | | Net cash used in investing activities | ($451) | ($1,203) | +$752 | | Net cash used in financing activities | ($3,147) | ($3,097) | -$50 | | Net increase in cash and cash equivalents | $6,397 | $1,541 | +$4,856 | | Cash and cash equivalents at end of period | $70,319 | $62,017 | +$8,302 | - The significant increase in net cash provided by operating activities is primarily due to increased net income in the current period[20](index=20&type=chunk) - The decrease in cash used in investing activities is mainly due to lower costs associated with asset purchases compared to the prior comparable period[20](index=20&type=chunk) [Notes to Unaudited Condensed Financial Statements](index=9&type=page&id=Notes%20to%20Unaudited%20Condensed%20Financial%20Statements) - Hennessy Advisors, Inc. primarily provides investment advisory services to **16 open-end mutual funds** and **one ETF**, branded as the Hennessy Funds, and also offers shareholder services[25](index=25&type=chunk) - The Company's operating revenues are derived from contractual investment advisory and shareholder service fees, calculated daily as a percentage of the net asset values of the Hennessy Funds[26](index=26&type=chunk)[29](index=29&type=chunk) - The Company completed asset purchases related to the CCM Small/Mid-Cap Impact Value Fund and CCM Core Impact Equity Fund in November 2023 and February 2024, respectively, adding approximately **$71 million** to assets under management[34](index=34&type=chunk) - The Company capitalized **$0.2 million** in costs for the pending purchase of assets related to the STF Tactical Growth & Income ETF and STF Tactical Growth ETF, expected to close in Q3 2025[35](index=35&type=chunk)[67](index=67&type=chunk) - The Company's effective income tax rates for the nine months ended June 30, 2025 and 2024, were **28.1%** and **27.2%**, respectively[51](index=51&type=chunk) - The 2024 Omnibus Incentive Plan replaced the 2013 plan, granting restricted stock units (RSUs) that vest over four years. Unrecognized compensation expense related to RSUs was **$2.017 million** as of June 30, 2025[55](index=55&type=chunk)[56](index=56&type=chunk) - The Company adopted a new Dividend Reinvestment and Stock Purchase Plan (DRSPP) in January 2024, with **1,515,102 shares** remaining available for issuance as of June 30, 2025[57](index=57&type=chunk) - The Company's stock buyback program has **1,096,368 shares** remaining available for repurchase, with no repurchases made during the nine months ended June 30, 2025[58](index=58&type=chunk) - The Company paid a quarterly cash dividend of **$0.1375 per share** on June 4, 2025[60](index=60&type=chunk) - The Company is evaluating the impact of new FASB ASUs on Segment Reporting (ASU 2023-07, effective FY2025), Income Tax Disclosures (ASU 2023-09, effective FY2026), and Income Statement Expense Disaggregation (ASU 2024-03, effective FY2027)[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk) [Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202%20-%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial condition and results of operations, including an overview of its business activities, market conditions, assets under management, liquidity, and a detailed analysis of revenue and expenses for the three and nine months ended June 30, 2025, compared to the prior year [Forward-Looking Statements](index=17&type=page&id=Forward-Looking%20Statements) - The report contains forward-looking statements subject to risks, uncertainties, and assumptions, as detailed in the Annual Report on Form 10-K[69](index=69&type=chunk)[70](index=70&type=chunk) - Business activities are influenced by factors such as investor redemptions, economic conditions, interest rates, inflation, competition, and regulatory changes[71](

Exhibit 99.1 Media Contacts: Teresa Nilsen Hennessy Advisors, Inc. Terry@hennessyadvisors.com; 800-966-4354 "We're pleased to report growth in assets under management, continued positive earnings, ongoing quarterly dividend payments, and a growing cash position – each of which strengthens our ability to capitalize on future opportunities. We also remain focused on completing the process for Hennessy Advisors to assume management of the STF Tactical Growth & Income ETF and the STF Tactical Growth ETF, which ...

Core Viewpoint - Hennessy Advisors, Inc. reported positive financial results for the third fiscal quarter of 2025, highlighting growth in revenue, net income, and assets under management, while maintaining a stable dividend payout [1][4][8]. Financial Performance - Total revenue for the quarter was $8.1 million, an increase of 3.5% compared to $7.8 million in the same quarter of the previous year [4][8]. - Net income rose to $2.1 million, reflecting a 4.5% increase from $2.0 million year-over-year [4][8]. - Earnings per share (diluted) remained unchanged at $0.26 [4][8]. - Average assets under management increased by 5.3% to approximately $4.1 billion, up from $3.9 billion [4][8]. - Total assets under management reached $4.3 billion, marking a 6.3% increase from $4.0 billion [4][8]. - Cash and cash equivalents, net of gross debt, grew significantly by 38.1% to $30.0 million, compared to $21.8 million in the prior year [4][8]. Strategic Outlook - The company expressed confidence in the resilience of the U.S. labor market and the overall economy, citing low unemployment and consistent payroll growth as positive indicators [2]. - Management emphasized a focus on fundamentals rather than reacting to market volatility, with optimism about future performance following the passage of major fiscal legislation [2]. - Hennessy Advisors is also working on expanding its ETF offerings by assuming management of additional tactical growth and income ETFs [3].

Financial Performance - Total revenue for Q2 2025 was $9.3 million, an increase of 34% compared to Q2 2024[3] - Net income for the quarter reached $2.6 million, reflecting a 68% increase year-over-year[3] - Fully diluted earnings per share were $0.33, marking a 65% increase from the previous year[3] - Average assets under management increased to $4.7 billion, up 37% from the prior comparable quarter[3] - Total assets under management rose to $4.3 billion, an increase of 11% year-over-year[4] - Cash and cash equivalents, net of gross debt, amounted to $27.3 million, a 41% increase compared to the previous year[4] - The weighted average number of shares outstanding (diluted) increased by 2.8% to 7,912,156 shares[4] Dividends - A quarterly dividend of $0.1375 per share was announced, representing an annualized dividend yield of 5.2%[2] Strategic Initiatives - The company signed a definitive agreement with STF Management, LP to expand its ETF offerings, indicating a strategic growth initiative[3] - The company remains committed to long-term investing despite current market volatility and uncertainty[2]

Financial Performance - Total revenue for the three months ended March 31, 2025, was $9,276,000, representing a 33.7% increase from $6,940,000 in the same period of 2024[14]. - Net income for the six months ended March 31, 2025, was $5,417,000, up 97.5% from $2,740,000 in the prior year[14]. - Basic earnings per share for the three months ended March 31, 2025, was $0.33, compared to $0.20 for the same period in 2024, reflecting a 65% increase[14]. - Total revenue for the six months ended March 31, 2025, increased by 45.1% to $19.0 million from $13.1 million in the same period of 2024[90]. - Net income for the three months ended March 31, 2025, was $2.6 million, representing a 67.8% increase from $1.5 million in the same period of 2024[90]. - Net income for the six months ended March 31, 2024, increased by 97.7%, from $2.7 million to $5.4 million, attributed to revenue growth[114]. Assets and Equity - Cash and cash equivalents increased to $67,562,000 as of March 31, 2025, from $63,922,000 at September 30, 2024, marking a 2.5% growth[11]. - Total assets rose to $155,533,000 as of March 31, 2025, compared to $152,099,000 as of September 30, 2024, indicating a 2.4% increase[11]. - Total stockholders' equity increased to $95,203,000 as of March 31, 2025, from $91,311,000 at September 30, 2024, representing a 4.3% growth[11]. - Total assets under management as of March 31, 2025, was $4.3 billion, an increase of $0.4 billion, or 10.5%, compared to March 31, 2024[80]. - Average assets under management for the six months ended March 31, 2025, was $4.8 billion, an increase of $1.5 billion, or 47.3%, compared to the six months ended March 31, 2024[85]. Operating Expenses - Operating expenses for the three months ended March 31, 2025, totaled $5,825,000, a 16% increase from $5,021,000 in the same period of 2024[14]. - Total operating expenses for the three months ended March 31, 2025, increased by 16.0% to $5.8 million, but as a percentage of total revenue, it decreased to 62.8%[95]. - Compensation and benefits expense for the three months ended March 31, 2025, increased by 18.7% to $2.7 million, with a decrease in percentage of total revenue to 28.8%[97]. Cash Flows - Cash flows from operating activities for the six months ended March 31, 2025, were $5,979,000, compared to $2,289,000 in the prior year, reflecting a significant increase[20]. - Net cash provided by operating activities for the six months ended March 31, 2025, was $5.979 million, an increase of $3.7 million compared to the prior period[86]. - The increase in cash provided by operating activities was primarily due to increased net income in the current period[86]. Investment Advisory Services - The Company serves as the investment advisor to 16 open-end mutual funds and one ETF, providing investment advisory services and shareholder services[24]. - Investment advisory and shareholder service fee revenues are calculated daily based on contractual percentages of net asset values of each Hennessy Fund[28]. - The Company recognizes revenues when obligations related to investment advisory and shareholder services are satisfied, with fees affected by changes in net asset values[28]. Dividends and Shareholder Information - Dividends paid during the six months ended March 31, 2025, totaled $2,102,000, slightly up from $2,076,000 in the same period of 2024[20]. - A quarterly cash dividend of $0.1375 per share was paid on March 6, 2025[59]. - The Company has 1,517,046 shares available for issuance under the Dividend Reinvestment and Stock Purchase Plan as of March 31, 2025[56]. Compliance and Governance - The Company maintains a compliance program and conducts ongoing reviews of the compliance programs of the fund's service providers[30]. - The investment advisory agreements must be renewed annually and are subject to termination under specific circumstances, ensuring ongoing compliance and oversight[36]. Lease and Liabilities - The Company renewed its office lease in Novato, California for an additional three years, creating a right-of-use asset of $1.1 million[45]. - As of March 31, 2025, the operating lease right-of-use assets amounted to $848,000, with current and long-term operating lease liabilities of $348,000 and $516,000, respectively[46]. - The total undiscounted cash flows for future maturities of the Company's operating lease liabilities are projected to be $926,000[46]. Notes and Interest - The fair value of the 2026 Notes was approximately $39.8 million as of March 31, 2025, based on the last trading price of the notes[42]. - The 2026 Notes, with an aggregate principal amount of $40.25 million, bear interest at 4.875% per annum and mature on December 31, 2026[81]. - Interest income decreased from $0.8 million to $0.7 million for the three months ended March 31, 2024, compared to the same period in 2025, attributed to decreased interest rates[111]. - Interest expense increased from $0.568 million to $0.572 million for the three months ended March 31, 2024, compared to the same period in 2025, due to the amortization of capitalized issuance costs[112].

Core Insights - Hennessy Advisors, Inc. reported strong financial results for the second fiscal quarter of 2025, with total revenue increasing by 33.7% year-over-year to $9.3 million and net income rising by 67.7% to $2.6 million [1][2][5] - The company announced a quarterly dividend of $0.1375 per share, reflecting an annualized dividend yield of 5.2% [1][2] - The firm is committed to long-term investing and believes that current market volatility will stabilize as new realities are absorbed [1][2] Financial Performance - Total revenue for the quarter ended March 31, 2025, was $9,275,783, compared to $6,939,977 for the same quarter in 2024, marking a $2,335,806 increase [2][5] - Net income increased from $1,539,823 in Q1 2024 to $2,582,979 in Q1 2025, an increase of $1,043,156 [2][5] - Earnings per share (diluted) rose from $0.20 to $0.33, reflecting a 65% increase [2][5] - Average assets under management grew by 37.2% to $4,746,380,124, up from $3,459,895,504 [2][5] - Total assets under management increased by 10.5% to $4,255,690,493 [2][5] - Cash and cash equivalents, net of gross debt, rose by 41.2% to $27,311,927 [2][5] Strategic Initiatives - The company signed a definitive agreement with STF Management, LP to expand its ETF offerings, demonstrating a commitment to growth and effective cash deployment [2][3]

Core Viewpoint - Hennessy Advisors, Inc. is expanding its ETF offerings by acquiring two ETFs from STF Management, LP, which have combined assets of approximately $220 million, with the transaction expected to close in Q3 2025 [1][2]. Company Overview - Hennessy Advisors, Inc. is a publicly traded investment manager that offers a variety of domestic equity, multi-asset, and sector and specialty funds, focusing on a buy and hold investment philosophy [4]. - STF Management, LP was established in February 2022 to manage Exchange-Traded Funds, specifically the STF Tactical Growth ETF (TUG) and the STF Tactical Growth & Income ETF (TUGN) [5]. Transaction Details - The acquisition includes the STF Tactical Growth ETF and the STF Tactical Growth & Income ETF, which will be restructured as series of Hennessy Funds Trust and renamed accordingly [8]. - The transaction is subject to customary closing conditions, including SEC approval and shareholder consent, and is structured to qualify as a tax-free reorganization under the Internal Revenue Code, meaning shareholders should not recognize any gain or loss for federal income tax purposes [3][8]. Management Transition - Jonathan Molchan, an experienced portfolio manager with 20 years in the industry, will continue to manage the portfolios on a day-to-day basis and is expected to enhance Hennessy's reputation for shareholder service and disciplined portfolio management [2][3].

Financial Performance - Total revenue for Q1 2025 was $9.7 million, representing a 58% increase compared to the prior year[2] - Net income reached $2.8 million, an increase of 136% year-over-year[2] - Fully diluted earnings per share were $0.36, reflecting a 125% increase from the previous year[2] Assets Management - Average assets under management increased to $4.8 billion, up 59% compared to the prior period[2] - Total assets under management were $4.8 billion, marking a 46% increase year-over-year[3] - Cash and cash equivalents, net of gross debt, amounted to $24.7 million, an increase of 28%[2] - The cash position net of debt strengthened by nearly 30% over the last twelve months[2] Fund Performance - All 17 Hennessy Funds posted positive returns for the year ended December 31, 2024[1] - The Dow Jones Industrial Average returned 14.99% and the S&P 500® Index returned 25.02% for the year ended December 31, 2024[1] Dividends - The company announced a quarterly dividend of $0.1375 per share, representing an annualized dividend yield of 4.6%[1]

Financial Performance - Total revenue for the three months ended December 31, 2024, was $9,708,000, representing a 58.5% increase from $6,144,000 in the same period of 2023[14]. - Net income for the quarter was $2,834,000, compared to $1,200,000 in the prior year, marking a 136.2% increase[14]. - Basic earnings per share rose to $0.36, up from $0.16 in the same quarter of the previous year[14]. - Investment advisory fees increased to $9,061,000, up 60.5% from $5,665,000 year-over-year[14]. - Total revenue for the three months ended December 31, 2024, increased by 58.0%, from $6.1 million to $9.7 million[89]. - Net income for the three months ended December 31, 2024, was $2.834 million, representing 29.2% of total revenue, compared to $1.2 million, or 19.5%, for the same period in 2023[88]. Assets and Equity - Total assets as of December 31, 2024, were $153,298,000, a slight increase from $152,099,000 as of September 30, 2024[11]. - Total stockholders' equity increased to $93,394,000 from $91,311,000 in the previous quarter[11]. - Total assets under management as of December 31, 2024, was $4.8 billion, an increase of $1.5 billion, or 45.7%, compared to December 31, 2023[77]. - The average assets under management for the three months ended December 31, 2024, was $4.8 billion, an increase of $1.8 billion, or 58.8%, compared to the same period in 2023[84]. Cash Flow and Dividends - Cash and cash equivalents at the end of the period were $64,979,000, up from $63,922,000 at the beginning of the period[21]. - The company paid dividends totaling $1,070,000 in the three months ended December 31, 2024, compared to $1,055,000 in the same period of 2023, indicating a slight increase of 1.4%[21]. - The company paid a quarterly cash dividend of $0.1375 per share on November 27, 2024[59]. - The increase in cash provided by operating activities was $1.8 million, primarily due to increased net income[85]. - The company’s operating cash flow for the three months ended December 31, 2024, was $2,234,000, significantly higher than $416,000 in the same period of 2023, representing a 436.5% increase[21]. Operating Expenses - Operating expenses for the quarter totaled $5,878,000, an increase from $4,719,000 in the same quarter of 2023[14]. - Total operating expenses rose by 24.6% from $4.7 million to $5.9 million, while as a percentage of total revenue, they decreased by 16.3 percentage points to 60.5%[97]. - Compensation and benefits expense increased by 48.2% from $1.9 million to $2.8 million, but as a percentage of total revenue, it decreased by 1.9 percentage points to 28.5%[98]. - Fund distribution and other expense surged by 77.9% from $0.1 million to $0.3 million, primarily due to increased average daily net assets across the Hennessy Funds[104]. Market Presence and Services - The company continues to provide investment advisory services to 16 open-end mutual funds and one ETF, indicating ongoing market presence and expansion[25]. - The Company has investment advisory agreements with Hennessy Funds Trust for all classes of the 16 Hennessy Mutual Funds and the Hennessy Stance ESG ETF, with fees based on a percentage of the applicable fund's average daily net asset value[35][37]. - The Hennessy Cornerstone Mid Cap 30 Fund had the largest average daily net assets of $1.7 billion for the three months ended December 31, 2024[91]. - The company serves over 210,000 fund accounts nationwide, including approximately 11,000 financial advisors[76]. Compliance and Governance - The Company maintains a compliance program and conducts ongoing reviews of service providers to ensure adherence to investment objectives and federal securities laws[31]. - The Company has entered into sub-advisory agreements for several funds, with sub-advisors responsible for investment management under the Company's supervision[38]. - The Company is required to adopt ASU 2023-07 in its 10-K filing for fiscal year 2025, which expands disclosures about reportable segments[61]. Tax and Liabilities - The effective income tax rates for the three months ended December 31, 2024, and 2023, were 28.6% and 27.0%, respectively[49]. - The Company reported total accrued liabilities and accounts payable of $2,428,000 as of December 31, 2024, a decrease from $4,441,000 as of September 30, 2024[46]. - Income tax expense rose by 155.2% from $0.4 million to $1.1 million, attributed to increased net operating income and a higher effective income tax rate[110]. Stock and Financing - The Company completed a public offering of 4.875% notes due 2026, raising approximately $38,607,000 after issuance costs[47]. - The Company has 1,096,368 shares remaining available for repurchase under its stock buyback program, which was increased to 2,000,000 shares in August 2022[57]. - The Company has unrecognized compensation expense related to restricted stock units (RSUs) amounting to $2.563 million as of December 31, 2024[55]. - The Company issued 1,984 shares of common stock under the Dividend Reinvestment and Stock Purchase Plan during the three months ended December 31, 2024[56].

Core Insights - Hennessy Advisors, Inc. reported strong financial results for the first fiscal quarter of 2025, with significant increases in revenue, net income, and assets under management, reflecting a positive market environment and effective business strategies [1][2][6]. Financial Performance - Total revenue for the quarter ended December 31, 2024, was $9.7 million, representing a 58% increase compared to $6.1 million in the same quarter of the previous year [2][6]. - Net income reached $2.8 million, a substantial increase of 136% from $1.2 million in the prior year [2][6]. - Earnings per share (diluted) were $0.36, up 125% from $0.16 in the previous year [2][6]. - Average assets under management were $4.8 billion, reflecting a 58.8% increase from $3.0 billion [2][6]. - Total assets under management stood at $4.8 billion, an increase of 45.7% from $3.3 billion [2][6]. - Cash and cash equivalents, net of gross debt, increased by 27.8% to $24.7 million from $19.4 million [2][6]. Market Outlook - The company expressed confidence in continued positive market momentum, driven by strong consumer spending and robust corporate profits, despite potential periods of volatility [1][2]. - The performance of all 17 Hennessy Funds was positive for the year, with long-term returns also showing strength across various time frames [1][2]. Business Strategy - Hennessy Advisors attributes its strong product performance to a consistent business model and effective distribution and marketing strategies, leading to a nearly 50% increase in total assets under management [2][3]. - The company remains focused on delivering meaningful returns to shareholders while seeking new opportunities for growth [2].