Financial Performance - Average assets under management for fiscal year 2025 were $4.5 billion, with total assets under management at $4.2 billion[14]. - Total revenue increased by 19.9% from $29.6 million in fiscal year 2024 to $35.5 million in fiscal year 2025, with investment advisory fees increasing by 20.5% and shareholder service fees increasing by 11.4%[192]. - Net income for fiscal year 2025 was $9.96 million, representing 28.0% of total revenue, compared to $7.1 million, or 23.9% of total revenue, in fiscal year 2024[191]. - Net income increased by 40.3%, from $7.1 million to $10.0 million, primarily due to increased average assets under management[210]. - Income tax expense increased by 40.4%, from $2.6 million to $3.7 million, due to higher net operating income[209]. - Interest income decreased from $3.1 million to $2.8 million, attributed to decreased interest rates[207]. - Interest expense increased by 0.8% from $2.28 million to $2.29 million, due to the amortization of issuance costs related to the 2026 Notes[208]. Investment Advisory Services - The company’s revenue is primarily derived from investment advisory services, calculated as a percentage of the average daily net asset values of the Hennessy Funds[12]. - Investment advisory fees for fiscal year 2025 increased to $33,174,000 from $27,524,000 in 2024, representing a growth of 20.1%[56]. - As of the end of fiscal year 2025, the investment advisory fees for various Hennessy Funds range from 0.40% to 1.25% of the fund's average daily net asset value[60]. - The sub-advisory fees for the Hennessy Focus Fund and Hennessy Equity and Income Fund are 0.29% and 0.27% respectively, with additional fees for equity allocations[63]. - The 12b-1 fee for each Hennessy Mutual Fund is set at 0.15% of the average daily net assets of the fund's Investor Class shares[71]. - The shareholder service fee received from each Hennessy Mutual Fund is 0.10% of the average daily net assets of the fund's Investor Class shares[68]. Fund Performance - Hennessy Cornerstone Large Growth Fund's Institutional Class Share returned 1.90% over the past year, underperforming the Russell 1000® Index which returned 17.75%[37]. - Hennessy Cornerstone Value Fund's Institutional Class Share achieved a one-year return of 10.80%, outperforming the Russell 1000® Value Index which returned 9.44%[37]. - Hennessy Total Return Fund's Investor Class Share reported a one-year return of 4.60%, while the 75/25 Blended DJIA/Treasury Index returned 9.87%[37]. - Hennessy Equity and Income Fund's Institutional Class Share returned 6.76% over the past year, significantly lower than the S&P 500® Index's return of 17.60%[38]. - Hennessy Midstream Fund's Institutional Class Share achieved a one-year return of 10.69%, while the Alerian US Midstream Energy Index returned 19.31%[38]. - Hennessy Japan Small Cap Fund's Institutional Class Share outperformed the Russell/Nomura Small Cap™ Index with a one-year return of 28.34% compared to 19.90%[38]. - Hennessy Japan Fund's Institutional Class Share returned 8.18% over the past year, while the Tokyo Stock Price Index (TOPIX) returned 17.73%[38]. - Hennessy Gas Utility Fund's Institutional Class Share achieved a one-year return of 17.70%, slightly outperforming the AGA Stock Index which returned 17.06%[38]. - Hennessy Energy Transition Fund's Institutional Class Share reported a one-year return of 11.77%, outperforming the S&P 500® Energy Index which returned 4.43%[38]. - Hennessy Balanced Fund's Investor Class Share returned 3.17% over the past year, underperforming the 50/50 Blended DJIA/Treasury Index which returned 7.98%[38]. - Institutional Class Share of Hennessy Large Cap Financial Fund achieved a one-year return of 37.10%[39]. - Hennessy Sustainable ETF had a one-year net asset value return of 5.40%[39]. - Hennessy Technology Fund's one-year return was 21.56%, outperforming the NASDAQ Composite Index's 25.42%[39]. - All 17 Hennessy Funds posted positive returns for the one-year and three-year periods ended September 30, 2025[178]. Asset Management and Strategy - The company has a business strategy focused on organic growth through marketing and sales, as well as growth through strategic purchases of management-related assets[14]. - The company completed the purchase of assets related to the management of a mutual fund previously managed by Community Capital Management, LLC, totaling approximately $12 million[23]. - The company reorganized assets of 10 mutual funds previously managed by FBR Fund Advisers, totaling approximately $2.2 billion[20]. - The Hennessy Funds family includes 16 mutual funds and one ETF, categorized into Domestic Equity, Multi-Asset, and Sector and Specialty products[27]. - The company has completed 12 asset purchases related to fund management, positioning itself to capitalize on opportunities in a competitive market[87]. - The company aims to expand its base of financial advisors and investment professionals to increase assets under management and revenues[85]. - The company develops new investment strategies by identifying investor needs and reviewing asset allocation tables[52]. - The company has consistently pursued a growth strategy focused on organic growth and strategic purchases of management-related assets since launching its first mutual fund in 1996[76]. - The business strategy focuses on identifying and integrating future acquisitions and organic growth through retention of fund assets and generating inflows[172]. Regulatory and Compliance - The Hennessy Funds are subject to extensive federal and state regulations, ensuring compliance with investor protection laws[92]. - The investment advisory agreements must be renewed annually by the Funds' Board of Trustees and require a majority vote of disinterested trustees[61]. - The sub-advisory agreements are subject to the same renewal and termination provisions as the investment advisory agreements, ensuring oversight and compliance[65]. - The company may face challenges in developing or acquiring new products, which could harm its reputation and operational efficiency, potentially reducing assets under management and revenues[111]. - Regulatory scrutiny and potential legal liabilities could result in significant financial penalties and increased operational costs[116][119]. Market and Competitive Environment - The investment advisory industry is highly competitive, with numerous global and U.S. investment managers posing challenges to the Hennessy Funds[90]. - Market consolidation and a shift towards lower-fee, passive products may negatively impact Hennessy Funds' profitability and competitive position[112]. - There is ongoing pressure to lower investment advisory fees, which could reduce profit margins and adversely affect results of operations[113]. - The company faces risks related to changes in distribution channels, which could adversely affect net revenues and growth due to increased competition and potential termination of relationships with financial institutions[132]. - A significant reduction in the number of investment funds offered by financial institutions could negatively impact assets under management, revenues, and net income[133]. Operational Risks - Cybersecurity incidents could result in financial losses, business disruptions, and reputational damage, adversely affecting the company's financial condition[144]. - The use of artificial intelligence technologies presents operational and regulatory risks that could disrupt business processes and lead to competitive disadvantages[123][124]. - Failure to establish adequate controls and risk management policies could harm the company's reputation and ability to attract and retain investors[126]. - The company relies on key personnel for business management, and the loss of any key individual could materially affect operations and financial condition[135]. - The company may incur additional debt, which could limit its flexibility in financing and increase vulnerability to adverse economic conditions[154]. Shareholder and Stock Information - The company has consistently paid dividends since 2005, although the declaration and amount are subject to the discretion of its Board of Directors[157]. - The company’s common stock trades on The Nasdaq Global Market under the symbol "HNNA" and intends to continue paying regular cash dividends[166]. - As of the end of fiscal year 2025, the company had 116 holders of record of its common stock, with a total of 2,150 shareholders including brokerage accounts[167]. - The company repurchased 41,442 shares at an average price of $11.08 per share during the three months ended September 30, 2025, with 1,096,368 shares remaining available for repurchase under its stock buyback program[168].

Financial Performance - Total revenue for fiscal year 2025 was $35.5 million, representing a 20% increase compared to fiscal year 2024[12] - Net income reached $10.0 million, marking a 40% increase from the previous year[12] - Fully diluted earnings per share were $1.27, an increase of 38% year-over-year[12] Assets Management - Average assets under management were approximately $4.5 billion, reflecting a 22% increase[12] - Total assets under management at the end of the fiscal year were $4.2 billion, a decrease of 9% from the prior year[12] - The company is entering fiscal year 2026 with nearly $4.3 billion in assets under management and over $72 million in cash[5] Cash Position - Cash and cash equivalents, net of gross debt, amounted to $32.2 million, an increase of 36%[12] Fund Performance - Hennessy Advisors' funds showed positive returns across all 17 funds for the one- and three-year periods ended September 30, 2025[4] Strategic Plans - The company plans to maintain its quarterly dividend and pursue growth opportunities through acquisitions[6] Economic Outlook - The Federal Reserve's expected easing of monetary policy is anticipated to support lower interest rates, benefiting investors and businesses[3]

Core Viewpoint - Hennessy Advisors, Inc. expresses confidence in the strength of the U.S. economy and stock market, highlighting positive market performance and solid fundamentals as key drivers for growth as the holiday season approaches [1] Financial Performance - Total revenue for the fiscal year ended September 30, 2025, was $35.5 million, reflecting a 20% increase compared to the previous year [1] - Net income reached $10.0 million, marking a 40% increase year-over-year [1] - Fully diluted earnings per share were $1.27, an increase of 38% from the prior year [1] - Average assets under management increased by 22% to $4.5 billion [1] - Total assets under management at fiscal year-end decreased by 9% to $4.2 billion [1] - Cash and cash equivalents, net of gross debt, increased by 36% to $32.2 million [1] Management Commentary - The CEO emphasizes the resilience of the economy and consumer spending, alongside solid corporate earnings and moderate inflation as positive indicators [1] - The President and COO notes a strong position entering fiscal year 2026 with nearly $4.3 billion in assets under management and over $72 million in cash [1] - The company remains committed to maintaining its quarterly dividend and pursuing growth opportunities through organic means and acquisitions [1]

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](

Financial Performance - Total revenue for Q3 2025 was $8.1 million, representing a 4% increase compared to the prior year[5] - Net income for the quarter was $2.1 million, up 5% from the same period last year[5] - Average assets under management increased to $4.1 billion, reflecting a 5% growth year-over-year[5] - Total assets under management reached $4.3 billion, marking a 6% increase compared to the previous year[5] - Cash and cash equivalents, net of gross debt, rose to $30.0 million, a significant increase of 38%[5] Dividends - The company declared a quarterly dividend of $0.1375 per share, resulting in an annualized dividend yield of 4.4%[2] Strategic Initiatives - The company is focused on expanding its ETF offerings by assuming management of the STF Tactical Growth & Income ETF and the STF Tactical Growth ETF[4] - The company reported ongoing positive earnings and a growing cash position, strengthening its ability to capitalize on future opportunities[4] Market Outlook - The U.S. labor market remains resilient with historically low unemployment and consistent payroll growth, positively impacting consumer sentiment[3] - Management remains optimistic about future performance, citing clarity from recent fiscal legislation as a positive factor for investors[3]

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].