| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 8.13 | 2.3% | 12.4% |
| Total Income | 8.13 | 2.3% | 12.4% |
| Expenditure | 5.52 | 3.5% | 5.3% |
| PBT | 2.65 | 1.1% | 25.6% |
| Net Profit | 1.91 | 1.0% | 26.0% |
| OPM | 32.09% | 0.79pp | 5.11pp |
| NPM | 23.48% | 0.29pp | 4.36pp |
| EPS | 0.25 | 4.2% | 24.2% |
Hennessy Advisors Reports Q2 FY26 Earnings with Revenue Down 12% YoY
07 May 2026 · 7 May, 1:53 am
Summary
Hennessy Advisors, Inc. reported a challenging second fiscal quarter ended March 31, 2026, with total revenue decreasing by 12% to $8.1 million and net income falling 26% to $1.9 million compared to the prior year. Diluted earnings per share also saw a significant decline of 27% to $0.24. Despite these declines, the company demonstrated financial discipline by increasing its cash and cash equivalents, net of gross debt, by 20% to $32.8 million. Management acknowledged market volatility but expressed optimism about long-term economic fundamentals and the firm's strategic positioning for future growth while maintaining consistent profitability and returning capital to shareholders through dividends.
Key Highlights
- 1
Hennessy Advisors, Inc. reported total revenue of $8.1 million for its second fiscal quarter ended March 31, 2026, representing a decrease of 12% compared to the prior comparable quarter.
- 2
Net income for Q2 FY26 was $1.9 million, a decline of 26% year-over-year.
- 3
Fully diluted earnings per share decreased by 27% to $0.24 for the quarter.
- 4
Average assets under management, upon which revenue is earned, stood at $4.2 billion, a decrease of 12% year-over-year.
- 5
Total assets under management as of March 31, 2026, were $3.9 billion, down 8% from the prior year.
- 6
The company's cash and cash equivalents, net of gross debt, increased by 20% to $32.8 million as of March 31, 2026.
- 7
Hennessy Advisors declared a quarterly cash dividend of $0.15 per share, payable on June 4, 2026.
Management Comments
Neil Hennessy
While 2026 began with solid market performance, March was marked by geopolitical tension, persistent inflationary pressures, and higher energy costs affecting consumers and corporations. Despite recent volatility, we view this as a typical market reaction within what we believe will be a longer-term growth cycle. I believe that economic fundamentals remain constructive and are supported by strong corporate balance sheets and resilient earnings output. We continue to monitor signs of economic weakening, but we remain optimistic about the long-term outlook for both the U.S. economy and equity markets. We launched our first mutual fund, the Hennessy Balanced Fund, on March 8, 1996. Thirty years in the mutual fund business reflects our long-standing commitment to disciplined investing and to the shareholders we serve. While uncertainty remains, we are focused on the opportunities ahead.
Teresa Nilsen
Last quarter, we raised our dividend by 9% - our first increase since 2019. That decision was bolstered by our strong cash position, consistent profitability, and commitment to returning capital to our shareholders. Today’s dividend announcement demonstrates the continuation of our corporate strategy. Although total assets under management declined 8% year-over-year, we continue to generate net income and solid earnings per share each quarter. Just as importantly, we are also building our cash position as we evaluate strategic growth opportunities. Our focus remains on positioning the firm for the future while maintaining financial discipline today.
Informational and educational content only. Not investment advice.