FORM 10-Q Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 Commission File Number 001-36423 HENNESSY ADVISORS, INC. ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ (Exact name of registrant as specified in its charter) California 68-0176 ...

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 ...

NOVATO, Calif., Aug. 6, 2025 /PRNewswire/ -- Hennessy Advisors, Inc. (Nasdaq:HNNA) today announced financial results for its third fiscal quarter of 2025, which ended June 30, 2025. The Company also declared a quarterly dividend of $0.1375 per share to be paid on September 4, 2025, to shareholders of record as of August 20, 2025. This represents an annualized dividend yield of 4.4%, based on a closing price of $12.63 on August 5, 2025."While equity markets continued to rise and reach new highs in the first ...

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].