Cash generation remains robust, evidenced by an OCF/NI ratio of 1.89 in 2025Q3, though free cash flow margins remain volatile, ranging between 6.0% and 49.0% over the last ten quarters.
Hennessy Advisors, Inc. (HNNA) cash flow statement — 25-year operating, investing & financing cash flows
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 |
|---|
| Cash from Operations | 10.51M | 13.79M | 9.28M | 7.13M | 8.66M | 10.39M | 10.62M | 14.39M | 21.53M | 19.85M | 18.19M | 14.44M | 9.41M | 6.16M | 2.04M | 1.88M | 2.04M | 873K | 2.22M | 5.82M | 6.27M | 3.44M | 3.5M | 1.36M | 358.42K | 734.29K |
| Operating CF Growth % | -105.07% | 48.67% | 30.04% | -17.67% | -16.57% | -2.23% | -26.19% | -33.16% | 8.49% | 9.13% | 25.91% | 53.45% | 52.86% | 202.31% | 8.47% | -7.81% | 133.33% | -60.6% | -61.93% | -7.21% | 82.25% | -1.6% | 157.33% | 279.26% | -51.19% | - |
| Net Income | 8.26M | 9.96M | 7.1M | 4.77M | 6.19M | 7.9M | 7.84M | 11.03M | 20.61M | 14.94M | 14.37M | 11.39M | 7.67M | 4.82M | 971K | 1.22M | 913K | -195K | 1.61M | 4.13M | 4.4M | 3.14M | 2.77M | 1.06M | 308.7K | 198.74K |
| Depreciation & Amortization | 315K | 290K | 244K | 230K | 207K | 232K | 239K | 225K | 231K | 219K | 353K | 265K | 242K | 188K | 95K | 102K | 128K | 120K | 527K | 656K | 634K | 179K | 33K | 21.16K | 299.61K | 296.32K |
| Deferred Taxes | 826K | 911K | 1.05M | 1.12M | 1.05M | 921K | 1.25M | 1.3M | -2.58M | 1.72M | 1.81M | 1.49M | 1.92M | 1.6M | 653K | 626K | 693K | 562K | 480K | 364K | 275K | 359K | 238K | 119.69K | 0 | 0 |
| Other Non-Cash Items | 833K | 328K | 341K | 282K | 264K | -71K | 63K | 106K | 95K | 147K | -519K | -139K | 116K | 115K | 28K | 115K | 209K | 361K | 168K | 582K | 643K | 8K | -6 | -467 | -85.58K | 1.78K |
| Working Capital Changes | -958K | 1.18M | -446K | -281K | -283K | -36K | -549K | -458K | 753K | 703K | 754K | 751K | -533K | -563K | 291K | -175K | 94K | 25K | -570K | 86K | 318K | -243K | 462K | 156.95K | -164.32K | 237.44K |
| Cash from Investing | -332K | -627K | -1.3M | -819K | -231K | -249K | -882K | -1.97M | -3.9M | -445K | -11.86M | -450K | -19.29M | -20.53M | -374K | -52K | -133K | -2.84M | -582K | -55K | -370K | -6.95M | -8.57M | -654.27K | -31.42K | -2.42K |
| Purchase of Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -8.51M | -629.22K | -11.44K | -154 |
| Sale/Maturity of Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 404K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Investment Activity | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 404K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -8.51M | -629.22K | -11.44K | -154 |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -512K | 0 | 0 | 0 | -8.5M | -629.14K | 0 | 0 |
| Other Investing | 0 | -187K | -990K | -604K | -15K | 0 | -710K | -1.77M | -3.54M | -269K | -11.68M | -192K | -19.15M | -20.68M | -273K | 0 | -64K | -2.81M | 0 | 0 | 0 | -6.88M | 8.5M | 629.14K | 0 | 0 |
| Cash from Financing | -45.15M | -4.66M | -4.53M | -4.33M | 34.22M | -4.26M | -24.47M | -13.13M | -7.94M | -7.24M | -5.88M | -18.55M | 9.12M | 14.05M | -1.29M | -1.52M | 403K | -5.08M | -2.61M | -2.37M | -1.83M | 5.23M | 6.84M | 0 | 1.74M | -709.35K |
| Dividends Paid | -4.45M | -4.2M | -8K | -4.1M | -4.04M | -3.97M | -3.97M | -3.54M | -2.88M | -2.21M | -1.5M | -1.38M | -898K | -729K | -685K | -945K | -522K | -517K | -515K | -456K | -318K | -246K | 0 | 0 | 0 | 0 |
| Share Repurchases | -459K | -459K | -403K | -233K | -356K | -322K | -3.03M | -5.15M | -660K | -654K | 0 | -25.06M | 0 | 0 | 0 | 0 | -219K | 0 | 0 | -2K | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock Issued | 12K | 7K | 27K | 9K | 5K | 38K | 22K | 20K | 16K | 3K | 15K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 185K | 568K | 70K | 93K | 0 | 5.75M | 0 |
| Net Stock Activity | -447K | -452K | -376K | -224K | -351K | -284K | -3.01M | -5.13M | -644K | -651K | 15K | -25.06M | 0 | 0 | 0 | 0 | -219K | 0 | 0 | 183K | 568K | 70K | 93K | 0 | 5.75M | 0 |
| Debt Issuance (Net) | -1000K | 0 | 0 | 0 | 1000K | 0 | -1000K | -1000K | -1000K | -1000K | -1000K | 1000K | 1000K | 1000K | -625K | -573K | 1000K | -1000K | -1000K | -1000K | -1000K | 1000K | 1000K | 0 | -400 | -34.12K |
| Other Financing | 0 | 0 | -4.14M | 0 | -430K | 0 | 0 | -84K | -23K | 0 | -15K | -392K | 161K | -164K | 15K | 0 | -31K | 0 | 0 | -2K | 7K | -40K | -22K | 0 | -4M | -675.23K |
| Net Change in Cash | -34.97M | 8.51M | 3.45M | 1.99M | 42.65M | 5.88M | -14.73M | -708K | 9.7M | 12.16M | 449K | -4.56M | -761K | -324K | 368K | 308K | 2.31M | -7.04M | -972K | 3.4M | 4.07M | 1.72M | 1.77M | 705.06K | 2.07M | 22.51K |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 73.06M | 63.92M | 60.48M | 58.49M | 15.84M | 9.96M | 24.69M | 25.39M | 15.7M | 3.54M | 3.09M | 7.64M | 8.41M | 8.73M | 8.36M | 8.05M | 5.75M | 12.79M | 13.76M | 10.36M | 6.29M | 4.57M | 2.8M | 2.1M | 28.16K | 5.65K |
| Cash at End | 35.35M | 72.43M | 63.92M | 60.48M | 58.49M | 15.84M | 9.96M | 24.69M | 25.39M | 15.7M | 3.54M | 3.09M | 7.64M | 8.41M | 8.73M | 8.36M | 8.05M | 5.75M | 12.79M | 13.76M | 10.36M | 6.29M | 4.57M | 2.8M | 2.1M | 28.16K |
| Interest Paid | 0 | 1.96M | 1.96M | 1.96M | 1.86M | 0 | 381K | 999K | 1.1M | 1.11M | 1.19M | 1M | 1.05M | 617K | 52K | 63K | 36K | 99K | 405K | 756K | 0 | 0 | 0 | 0 | 0 | 0 |
| Income Taxes Paid | 211K | 2.27M | 2.12M | 779K | 938K | 1.96M | 1.6M | 3.08M | 4.44M | 6.68M | 6.96M | 5.19M | 3.52M | 1.78M | 70K | 345K | 138K | 0 | 1.19M | 1.93M | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | 10.18M | 13.35M | 8.96M | 6.92M | 8.45M | 10.14M | 10.45M | 14.19M | 21.17M | 19.67M | 18M | 14.19M | 9.27M | 5.91M | 1.94M | 1.83M | 1.97M | -1.97M | 2.15M | 5.77M | 5.9M | 3.37M | 3.43M | 1.33M | 338.44K | 732.02K |
| FCF Growth % | -22.1% | 48.95% | 29.56% | -18.11% | -16.65% | -3% | -26.34% | -32.98% | 7.63% | 9.27% | 26.9% | 52.98% | 57.04% | 205.01% | 6.02% | -7.22% | 200.1% | -191.61% | -62.78% | -2.32% | 74.96% | -1.63% | 157.07% | 294.24% | -53.77% | - |
Quick answers to the most common questions about buying HNNA stock.
Hennessy Advisors, Inc. (HNNA) generated $13.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Hennessy Advisors, Inc. (HNNA) generated $13.4M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Hennessy Advisors, Inc. (HNNA) spent $0.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Hennessy Advisors, Inc. (HNNA) returned $4.2M to shareholders via cash dividends and spent $0.5M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
AUM Concentration and Outflows
Metrics are mathematically derived from official filings.
Earnings Quality Driven by Accruals
According to quarterly cash flow data, HNNA frequently reports operating cash flow exceeding net income, with OCF/NI ratios reaching as high as 1.89 in 2025Q3, suggesting that the firm's reported earnings are consistently supported by actual cash generation rather than aggressive accounting accruals.
The consistent premium of operating cash flow over net income indicates a high quality of earnings, likely bolstered by non-cash charges such as depreciation and amortization. Investors should monitor whether this conversion efficiency persists if market volatility forces a shift in the firm's underlying fee collection timing.
FCF Volatility Reflects Market Sensitivity
As reported in financial statements, free cash flow margins have fluctuated significantly between 6.0% and 49.0% over the last ten quarters, highlighting that HNNA's cash generation remains highly sensitive to the cyclical nature of US equity markets and the resulting impact on AUM-based advisory fees.
The wide variance in FCF margins suggests that while the business is inherently cash-generative, it lacks the stability of a purely recurring revenue model. This volatility warrants caution, as the firm's ability to fund dividends and acquisitions is tethered to market-driven revenue swings.
Working Capital Swings Impact Liquidity
Based on the provided cash flow statements, working capital changes have been highly erratic, swinging from a $2.3M outflow in 2026Q1 to a $1.1M inflow in 2025Q3, which suggests that timing differences in fee receipts and payables create meaningful short-term liquidity noise.
These fluctuations appear to be a byproduct of the firm's operational structure rather than a sign of underlying distress. However, the lack of a predictable working capital cycle makes it difficult to forecast short-term cash availability for opportunistic fund acquisitions.
Conservative Capital Allocation Strategy
Data from recent filings indicates that HNNA prioritizes dividend payments, consistently distributing over $1M per quarter, while maintaining a cautious approach to share repurchases, which suggests management is focused on returning capital to shareholders rather than aggressive reinvestment during periods of market uncertainty.
The firm's reliance on dividends as the primary capital return mechanism implies a mature business model that may be struggling to identify high-return internal growth projects. Investors should evaluate whether this conservative deployment strategy risks long-term stagnation in a competitive asset management landscape.