UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended October 31, 2025 OR ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to . Commission File Number: 001-32224 Salesforce, Inc. (Exact name of Registrant as specified in its charter) Delaware 94-3320693 (State or other jurisdict ...

Financial Performance - Total revenue for the three months ended October 31, 2025, was $332,639,000, representing a 26.5% increase from $262,901,000 in the same period of 2024[18] - Net income for the quarter was $31,308,000, compared to $9,139,000 in the prior year, marking a significant increase of 242.5%[19] - Basic net income per share rose to $0.37, up from $0.11 in the same quarter last year[18] - The company reported a gross profit of $209,522,000, which is a 32.3% increase from $158,392,000 in the previous year[18] - Gross profit margin improved to 63% for the three months ended October 31, 2025, compared to 60% in the prior year[96] - Net income for the three months ended October 31, 2025, was $31.3 million, significantly up from $9.1 million in the same period of 2024[96] - Non-GAAP net income for the three months ended October 31, 2025, was $57.0 million, up from $36.7 million in 2024, reflecting a 55.2% year-over-year growth[181] Revenue Breakdown - Subscription and support revenue increased to $222,203,000, up 30.8% from $169,742,000 year-over-year[18] - Subscription revenue increased to $207.5 million in Q1 2025, compared to $152.9 million in Q1 2024, reflecting a growth of 35.7%[40] - Support revenue decreased by $2.1 million to $14.7 million, attributed to customers migrating from on-premise term licenses to subscription services[139] - Term license revenue increased by $4.6 million to $42.0 million, mainly due to an annual renewal after a multi-year commitment[141] - Services revenue rose by $12.7 million to $68.5 million, driven by higher utilization of services employees and new subscription implementation projects[142] Expenses and Costs - Research and development expenses rose to $78,317,000, an increase of 13.5% from $68,880,000 year-over-year[18] - Total operating expenses rose to $191.0 million, a 17% increase from $163.1 million in the prior year, representing 58% of total revenue[157] - Sales and marketing expenses grew by $12.8 million to $64.3 million, largely due to increased personnel costs and marketing expenses related to the annual customer conference[163] - General and administrative expenses increased by $5.7 million to $48.5 million, driven by higher personnel costs and bad debt expenses[166] Cash Flow and Assets - Cash and cash equivalents decreased to $492,038,000 from $697,902,000, a decline of 29.5%[16] - Cash flows from operating activities showed a net outflow of $67.4 million for the three months ended October 31, 2025, compared to an outflow of $62.3 million in the same period of 2024[24] - Net cash used in operating activities was $67.4 million for the three months ended October 31, 2025, compared to $62.3 million in the same period of 2024, indicating an increase in cash used by $5.1 million[190] - As of October 31, 2025, cash, cash equivalents, and investments totaled $1.4 billion, down from $1.5 billion as of July 31, 2025[182] Liabilities and Equity - Total liabilities decreased to $1,105,913,000 from $1,263,869,000, a reduction of 12.5%[16] - Total stockholders' equity increased to $1,533,418,000 from $1,457,230,000, reflecting a growth of 5.2%[16] Investments and Financing - The company issued $690 million in aggregate principal amount of its 2029 Convertible Senior Notes in October 2024, with net proceeds of $671.8 million after deducting issuance costs[62] - The effective interest rate of the 2029 Convertible Senior Notes is 1.8%, with a total principal amount of $690 million as of October 31, 2025[66] - The company recognized total interest expense of $3.3 million related to debt instruments for the three months ended October 31, 2025, compared to $2.1 million for the same period in 2024[67] Strategic Initiatives - The company continues to invest in product development and cloud operations to enhance existing products and introduce new capabilities, which is critical for maintaining competitive advantage and revenue growth[107] - The company is expanding its network of system integrator partners to enhance sales efficiency and reduce implementation costs for customers[111] Risks and Challenges - The company faces risks related to reliance on a small number of large customers, lengthy sales cycles, and global economic disruptions that may impact revenue and ARR growth[112] - The company is exposed to risks related to data security incidents and unauthorized access to customer data, impacting its cloud-based operations[209] - The company must navigate an uncertain regulatory environment regarding AI, which may result in reputational harm or liability[209] - The company is subject to market risks, including geopolitical events and supply chain disruptions, which could impact its operations and stock price[212] Compliance and Governance - The company evaluated the effectiveness of its disclosure controls and procedures, concluding they were effective as of the end of the reporting period[201] - There were no changes in internal control over financial reporting that materially affected the company during the quarter ended October 31, 2025[203] - The company is not currently involved in any legal proceedings likely to have a material adverse effect on its business or financial position[207]

Financial Performance - First quarter sales increased by 3.9% to $935.4 million, driven by pricing benefits, favorable foreign currency translation, and volume growth[2] - GAAP net earnings for the first quarter were $113.9 million, a 15.1% increase from $99.0 million in the prior year, with diluted EPS rising 19.0% to $0.97[1][19] - Adjusted first quarter net earnings were $110.7 million, reflecting a 9.1% increase year-over-year, with adjusted EPS up 13.3% to $0.94[1][19] - Net earnings for the first quarter of fiscal 2026 were $113.9 million, an increase of 15.4% compared to $99.0 million in the same period last year[25] - The effective tax rate decreased to 22.8% from 24.2% year-over-year, contributing to higher net earnings[27] - Diluted EPS increased to $0.97, up from $0.81 in the previous year, reflecting strong earnings growth[40] Segment Performance - Sales in the Life Sciences segment grew by 13.1%, attributed to strong new equipment sales in Food and Beverage and Disk Drive[5] - The Mobile Solutions segment reported a total of $598.3 million in sales, a 4.5% increase from $572.4 million in the previous year[29] - The Life Sciences segment experienced a significant growth of 13.1%, with total sales reaching $79.3 million compared to $70.1 million last year[29] Operating Metrics - The operating margin improved to 16.0%, up from 14.5% in the previous year, driven by operating expense leverage[7] - The operating margin improved to 16.0%, up from 14.5% in the same quarter last year[27] - The adjusted operating margin for fiscal 2026 is expected to be between 16.2% and 16.8%, an increase from the previous guidance of 16.1% to 16.7%[13] Cash Flow and Expenses - Net cash provided by operating activities rose to $125.4 million, up from $72.9 million year-over-year[40] - Free cash flow for the quarter was $122.0 million, significantly higher than $47.9 million in the prior year[40] - The cash conversion ratio improved to 107.1%, compared to 48.4% in the same quarter last year[27] - Interest expense increased to $7.1 million from $5.5 million due to higher debt levels[8] - Capital expenditures are forecasted to be between $65 million and $85 million, with adjusted free cash flow conversion expected to be in the range of 85% to 95%[14] Guidance and Shareholder Returns - The company raised its full-year adjusted EPS guidance to a range of $3.95 to $4.11, up from the previous range of $3.92 to $4.08[9] - The company plans to repurchase between 2.0% and 3.0% of its shares outstanding during the fiscal year[14] Non-GAAP Measures - The Company has provided adjusted EPS guidance for fiscal 2026, but a reconciliation to GAAP EPS guidance is not included due to the inability to quantify certain variables[41] - The Company emphasizes the usefulness of non-GAAP measures such as free cash flow, EBITDA, and adjusted diluted EPS in understanding financial results, despite these not being measures under GAAP[42] - Management believes that adjusted financial measures provide a meaningful representation of the Company's core business performance[42]

Financial Performance - Hormel Foods reported fiscal 2025 net sales of $12.1 billion, with organic net sales growth of 2%[5]. - The company expects fiscal 2026 net sales in the range of $12.2 billion to $12.5 billion, with organic net sales growth of 1% to 4%[6]. - Operating income for fiscal 2026 is projected to be between $960 million and $1.03 billion, with adjusted operating income growth of 4% to 10%[6]. - Diluted earnings per share for fiscal 2026 are expected to be in the range of $1.29 to $1.39, with adjusted diluted earnings per share growth of 4% to 10%[6]. - Cash flow from operations for fiscal 2025 was $845 million, with dividends paid to shareholders reaching a record $633 million[10]. - The effective tax rate for fiscal 2025 was 28.0%, compared to 22.3% in the prior year[10]. - Total net sales for the fourth quarter ended October 26, 2025, were $3,185.7 million, representing a 2.3% increase compared to $3,138.1 million in the same quarter of the previous year[40]. - For the fiscal year ended October 26, 2025, total net sales reached $12,106.2 million, a 2.5% increase from $11,920.8 million in the prior year[41]. Profitability Challenges - The company faced profitability challenges in fiscal 2025 due to input cost inflation and non-cash impairment charges totaling $234 million[5][10]. - The company reported a net loss of $56,204 in Q4 2025, compared to net earnings of $219,960 in Q4 2024, resulting in a diluted earnings per share of $(0.10) versus $0.40[23]. - The total segment profit for Q4 2025 was $42,190, an 87.4% decline from $334,331 in Q4 2024, with significant losses reported in the International segment[26]. - The effective tax rate for Q4 2025 was (159.9)%, compared to 21.5% in Q4 2024, reflecting significant tax implications from the net loss[23]. - The Company recorded a goodwill and intangible impairment of $70,751 in Q4 2025, indicating potential challenges in asset valuation[23]. Dividend Information - Hormel Foods announced a 1% increase in its quarterly dividend, raising the annualized rate to $1.17 per share, marking 60 years of uninterrupted dividend increases[8]. - The company declared a dividend of $0.2900 per share for Q4 2025, up from $0.2825 in Q4 2024, with total dividends declared for the fiscal year increasing to $1.1600 from $1.1300[23]. Segment Performance - The Retail segment saw net sales growth driven by the turkey portfolio and Applegate products, despite a decline in segment profit due to input cost pressures[11]. - Retail segment net sales for the fourth quarter were $1,922.8 million, up 0.8% from $1,907.1 million year-over-year[40]. - Foodservice segment net sales increased by 6.5% to $1,088.2 million in the fourth quarter, compared to $1,046.0 million in the previous year[40]. - The international segment's net sales decreased by 5.6% in the fourth quarter, totaling $174.7 million compared to $185.0 million in the prior year[40]. Operational Metrics - Capital expenditures for fiscal 2025 were $311 million, with investments in capacity expansions and technology[10]. - Total current assets increased to $3,405,656 in Q4 2025 from $3,246,476 in Q4 2024, while total assets slightly decreased to $13,393,119 from $13,434,729[24]. - Cash and cash equivalents at the end of Q4 2025 were $670,679, a decrease from $741,881 at the end of Q4 2024[25]. - Total volume for the fourth quarter was 1,088,430 lbs., a slight decrease of 0.4% from 1,108,203 lbs. in the same quarter last year[40]. - The retail segment's total volume for the fiscal year was 2,873,655 lbs., down 1.4% from 2,915,141 lbs. in the previous year[41]. Future Initiatives - The Company initiated a multi-year Transform and Modernize (T&M) initiative, excluding non-recurring costs associated with this initiative from its financial measures[28]. - The corporate restructuring plan commenced in Q4 fiscal 2025 aims to reduce administrative expenses and improve efficiencies, with costs primarily related to severance and employee benefits being excluded from core operating performance[32]. - The Company recorded non-cash impairment charges in Q4 fiscal 2025 related to certain intangible assets, which were also excluded from the assessment of core operating performance[33].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __to __ Commission File Number: 001-41211 nCino, Inc. (Exact name of Registrant as specified in its charter) (State or other jurisdiction ...

Sales Performance - Comparable sales in the U.S. increased by 4.5% and 4.0% for the three and nine months ended October 31, 2025, respectively, compared to the same periods in the previous fiscal year[75] - Walmart U.S. segment had comparable sales growth of 4.8% and 4.2% for the three and nine months ended October 31, 2025, driven by growth in average ticket and transactions[75] - Net sales for the three months ended October 31, 2025, were $177.769 billion, representing a 5.8% increase from $168.003 billion in the same period of 2024[78] - Net sales for the Walmart U.S. segment increased by $5.8 billion or 5.1% for the three months ended October 31, 2025, compared to the same period in 2024[98] - Walmart International segment net sales increased by $3.3 billion or 10.8% for the three months ended October 31, 2025, and $4.8 billion or 5.4% for the nine months ended October 31, 2025, compared to the same periods in the previous fiscal year[103] - Sam's Club U.S. segment net sales increased by $0.7 billion or 3.1% for the three months ended October 31, 2025, driven by comparable sales growth of 2.8%[108] Profitability - Operating income for the three months ended October 31, 2025, was $6.696 billion, a slight decrease of 0.2% compared to $6.708 billion in the same period of 2024[78] - Gross profit as a percentage of net sales increased by 2 basis points for the three months ended October 31, 2025, compared to the same period in the previous fiscal year[78] - Consolidated net income for the three months ended October 31, 2025, was $6.1 billion, an increase of 29.1% from $4.7 billion in the same period of 2024[97] - Gross profit for the nine months ended October 31, 2025, was $125.7 billion, an increase of 4.9% from $120.1 billion in 2024[92] - Operating income for the nine months ended October 31, 2025, was $21.1 billion, a decrease of 1.7% from $21.5 billion in 2024[92] Expenses and Costs - Operating expenses as a percentage of net sales increased by 28 basis points for the three months ended October 31, 2025, primarily due to a $0.7 billion charge related to share-based compensation modifications[79] - The effective income tax rate for the three months ended October 31, 2025, was 25.6%, up from 22.7% in the same period of the previous year[96] - Operating expenses as a percentage of net sales increased by 28 basis points for the three months ended October 31, 2025, primarily due to a charge related to share-based compensation[94] - Operating income for the Walmart International segment decreased by $0.5 billion for the three months ended October 31, 2025, resulting in an operating income margin of 2.1%[106] - Operating expenses as a percentage of net sales for Sam's Club U.S. increased by 29 basis points for the three months ended October 31, 2025, mainly due to associate wage investments[111] Cash Flow and Capital Expenditures - Free cash flow for the nine months ended October 31, 2025, was $8.8 billion, representing an increase of 41.8% compared to $6.2 billion in the same period of the previous year[91] - Net cash provided by operating activities increased by $4.5 billion to $27.5 billion for the nine months ended October 31, 2025, compared to $22.9 billion in 2024[91] - Total capital expenditures for the nine months ended October 31, 2025, were $18.6 billion, an increase of 11.1% from $16.7 billion in 2024[86] - Net cash provided by operating activities increased by $4.5 billion to $27.452 billion for the nine months ended October 31, 2025, compared to the previous fiscal year[114] - Net cash used in investing activities increased by $6.4 billion to $(19.030) billion for the nine months ended October 31, 2025, primarily due to changes in strategic investments[117] Shareholder Returns - The company approved a fiscal 2026 annual dividend of $0.94 per share, a 13% increase over the previous year's dividend[121] - The company repurchased 75.3 million shares during the nine months ended October 31, 2025, compared to 45.9 million shares in the same period of 2024, representing a significant increase[123] - The average price paid per share for repurchases in 2025 was $93.04, up from $66.37 in 2024, indicating a higher investment per share[123] - Total amount paid for share repurchases reached $7.0 billion in 2025, an increase of $4.0 billion compared to $3.0 billion in 2024[123] - The company expects to fund the majority of its ongoing share repurchase program through free cash flow[123] Financial Outlook and Risks - The company expects continued uncertainty in business and the global economy due to various macroeconomic factors, including inflation and supply chain pressures[70] - The One Big Beautiful Bill Act introduced corporate tax changes, including 100% bonus depreciation on qualified property, which is expected to decrease cash taxes paid in the current fiscal year[70] - The company maintains strong credit ratings, with Standard & Poor's rating at A-1+ for commercial paper and AA for long-term debt as of October 31, 2025[126] - The company anticipates that cash flows from operations will be sufficient to meet its cash requirements, including capital expenditures and share repurchases[125] - There were no material changes to the company's market risks as of October 31, 2025, compared to the previous fiscal year[128] - The company is subject to potential credit rating downgrades, which could affect future borrowing costs and access to capital markets[126] - Material cash requirements include inventory purchases, employee-related costs, and interest payments, expected to be satisfied by cash from operations[124] Returns on Investment - Return on Assets (ROA) improved to 8.4% for the trailing 12 months ended October 31, 2025, up from 7.8% in 2024[85] - Return on Investment (ROI) decreased to 14.8% for the trailing 12 months ended October 31, 2025, down from 15.1% in 2024[85] Membership and Other Income - Membership and other income increased by 9.0% for the three months ended October 31, 2025, reaching $1.7 billion, up from $1.6 billion in 2024[92] - Membership and other income for Sam's Club U.S. increased by 13.1% for the three months ended October 31, 2025, primarily due to growth in the membership base[109] Gross Profit Analysis - Gross profit for the Walmart International segment was $7.002 billion for the three months ended October 31, 2025, with a gross profit rate of 20.9%, a decrease of 68 basis points compared to the previous year[104] - Gross profit rate for Sam's Club U.S. increased by 10 basis points for the three months ended October 31, 2025, attributed to product mix changes and operational efficiencies[110]

Financial Performance - Net sales decreased by $45.7 million, or 15.6%, to $246.9 million in the three months ended November 1, 2025, compared to $292.6 million in the same period of 2024 [122]. - Net sales decreased by $63.7 million, or 11.6%, to $487.4 million in the six months ended November 1, 2025, compared to $551.1 million in the same period of 2024 [123]. - Net loss for the three months ended November 1, 2025, was $9.9 million, compared to a net loss of $1.6 million for the same period in 2024, indicating a significant increase in losses [135]. - The company experienced a net loss of $20.2 million for the six months ended November 1, 2025, compared to a net loss of $19.9 million for the same period in 2024 [169]. Cost and Expenses - Cost of products sold decreased by $35.5 million, or 15.1%, to $199.2 million in the three months ended November 1, 2025, representing 80.7% of net sales [124]. - Selling and administrative expenses decreased by $3.6 million, or 8.5%, to $39.0 million in the three months ended November 1, 2025 [127]. - Interest expense, net was $5.7 million in the three months ended November 1, 2025, compared to $6.2 million in the same period of 2024 [130]. - Income tax expense was $5.7 million in the three months ended November 1, 2025, compared to $3.2 million in the same period of 2024 [133]. Segment Performance - Automotive segment net sales decreased by $35.0 million, or 24.1%, to $110.5 million in the three months ended November 1, 2025, compared to $145.5 million in the same period in 2024 [138]. - Gross profit for the automotive segment fell by $12.0 million, or 84.5%, to $2.2 million in the three months ended November 1, 2025, with gross profit margins decreasing to 2.0% from 9.8% in the prior year [142]. - Industrial segment net sales increased by $7.5 million, or 3.1%, to $250.4 million in the six months ended November 1, 2025, compared to $242.9 million in the same period in 2024 [148]. - Industrial segment gross profit rose by $11.3 million, or 16.0%, to $82.1 million in the six months ended November 1, 2025, with gross profit margins increasing to 32.8% from 29.1% in the prior year [150]. - Interface segment net sales decreased by $6.2 million, or 39.5%, to $9.5 million in the three months ended November 1, 2025, compared to $15.7 million in the same period in 2024 [154]. - Interface segment gross profit decreased by $2.4 million, or 46.2%, to $2.8 million in the three months ended November 1, 2025, with gross profit margins decreasing to 29.5% from 33.1% in the prior year [155]. Liquidity and Capital Structure - As of November 1, 2025, the company had $118.5 million in cash and cash equivalents, with $61.5 million held in subsidiaries outside the U.S. [160]. - The company has a share buyback authorization of up to $200.0 million, which commenced on June 17, 2024, with no shares purchased as of November 1, 2025 [161]. - The outstanding balance under the revolving credit facility was $294.5 million in euro-denominated borrowings and $40.0 million in U.S. denominated borrowings as of November 1, 2025 [167]. - Net cash provided by operating activities was $17.7 million for the six months ended November 1, 2025, compared to a net cash used of $37.1 million for the same period in 2024 [170]. - Capital expenditures were $11.3 million for the six months ended November 1, 2025, down from $24.0 million in the same period in 2024 [171]. - The company paid cash dividends of $4.7 million in the six months ended November 1, 2025, compared to $10.0 million in the same period in 2024 [173]. Compliance and Financial Agreements - The company was not in compliance with a covenant restricting certain restricted payments for the quarter ended August 2, 2025, leading to a waiver agreement with Bank of America [164]. - The Amended Credit Agreement provides for a secured multicurrency revolving credit facility of $400 million, maturing on October 31, 2027 [166]. - The company anticipates compliance with financial covenants in the Amended Credit Agreement based on current projections, but future compliance is uncertain [168]. Market Challenges - The company continues to face supply chain challenges, particularly in procuring automotive-grade semiconductors, which may impact financial results [118]. - The adoption of electric vehicles (EVs) has been slower than anticipated, potentially affecting the company's financial condition [117].

NEWS RELEASE Five Below, Inc. Announces Third Quarter Fiscal 2025 Financial Results Q3 Net Sales Increase of 23.1% to $1.0 Billion; Comparable Sales Increase of 14.3% Q3 GAAP Diluted EPS of $0.66, Q3 Adjusted Diluted EPS of $0.68 Increases Full Year 2025 Sales and EPS Outlook PHILADELPHIA, PA – (December 3, 2025) – Five Below, Inc. (NASDAQ: FIVE) today announced financial results for the third quarter and year to date period ended November 1, 2025. For the third quarter ended November 1, 2025: A reconciliat ...

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]