Gross margins improved significantly from 49.6% in 2024Q2 to 82.7% in 2026Q2, demonstrating successful cost-to-serve optimization despite revenue fluctuations.
Hennessy Advisors, Inc. (HNNA) annual income statement — 25-year revenue, gross profit & net income history
| 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 |
|---|
| Net Interest Income | -1.15M | 475K | 837K | 266K | -1.89M | 0 | -447K | -1.08M | -1.23M | -1.26M | -1.23M | -1.01M | -1.08M | -668K | -51K | -65K | -35K | -87K | -388K | -738K | 0 | 0 | 0 | 0 | 0 | 0 |
| NII Growth % | -1487.82% | -43.25% | 214.66% | 114.05% | - | 100% | 58.76% | 11.65% | 2.31% | -1.95% | -21.74% | 6.73% | -62.43% | -1209.8% | 21.54% | -85.71% | 59.77% | 77.58% | 47.43% | - | - | - | - | - | - | - |
| Net Interest Margin % | -0.94% | 0.3% | 0.55% | 0.18% | -1.32% | 0% | -0.47% | -0.98% | -1.12% | -1.28% | -1.45% | -1.38% | -1.44% | -0.89% | -0.16% | -0.2% | -0.11% | -0.29% | -1.13% | -2.07% | 0% | 0% | 0% | 0% | 0% | 0% |
| Interest Income | 1.34M | 2.77M | 3.11M | 2.52M | 229K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 2.49M | 2.29M | 2.27M | 2.26M | 2.12M | 0 | 447K | 1.08M | 1.23M | 1.26M | 1.23M | 1.01M | 1.08M | 668K | 51K | 65K | 35K | 87K | 388K | 738K | 0 | 0 | 0 | 0 | 0 | 0 |
| Loan Loss Provision | 5.23M | 8.33M | 6.79M | 9.72M | 6.2M | 9.08M | 8.37M | 19.59M | 22.79M | 21.11M | 20.23M | 18.43M | 14.69M | 11.41M | 3.5M | -65K | -35K | -87K | -388K | -738K | 0 | 0 | 0 | 0 | 0 | 0 |
| Non-Interest Income | 32M | 32.77M | 26.53M | 21.5M | 29.44M | 32.76M | 33.39M | 42.72M | 54.59M | 52.95M | 51.41M | 44.74M | 34.53M | 24.31M | 7.07M | 7.64M | 7.72M | 5.81M | 10.28M | 16.07M | 16.93M | 12M | 9.54M | 4.79M | 2.27M | 1.67M |
| Non-Interest Income % | 103.73% | 98.57% | 96.94% | 98.78% | 106.87% | 100% | 101.36% | 102.6% | 102.3% | 102.43% | 102.46% | 102.31% | 103.24% | 102.83% | 100.73% | 100.86% | 100.46% | 101.52% | 103.92% | 104.81% | 100% | 100% | 100% | 100% | 100% | 100% |
| Total Net Revenue | 30.85M | 33.24M | 27.37M | 21.76M | 27.55M | 32.76M | 32.94M | 41.63M | 53.36M | 51.7M | 50.18M | 43.73M | 33.44M | 23.64M | 7.02M | 7.58M | 7.69M | 5.73M | 9.89M | 15.33M | 16.93M | 12M | 9.54M | 4.79M | 2.27M | 1.67M |
| Revenue Growth % | -7.97% | 21.46% | 25.76% | -20.99% | -15.92% | -0.55% | -20.87% | -21.99% | 3.22% | 3.03% | 14.75% | 30.76% | 41.46% | 236.7% | -7.36% | -1.42% | 34.26% | -42.09% | -35.52% | -9.45% | 41.15% | 25.69% | 99.37% | 110.88% | 35.62% | - |
| Non-Interest Expense | 14.48M | 11.77M | 11.71M | 5.71M | 11.51M | 12.8M | 13.25M | 6.02M | 6.09M | 6.1M | 6.16M | 5.49M | 4.61M | 3.31M | 1.74M | 5.5M | 6.1M | 6M | 7.54M | 8.94M | 8.98M | 5.82M | 4.77M | 3M | 1.77M | 1.23M |
| Efficiency Ratio | 46.94% | 35.4% | 42.8% | 26.23% | 41.77% | 39.08% | 40.22% | 14.46% | 11.42% | 11.8% | 12.27% | 12.55% | 13.78% | 13.98% | 24.74% | 72.53% | 79.34% | 104.84% | 76.25% | 58.3% | 53.04% | 48.55% | 49.99% | 62.75% | 77.97% | 73.22% |
| Operating Income | 11.14M | 13.14M | 8.87M | 6.33M | 9.84M | 10.88M | 11.32M | 16.02M | 24.48M | 24.49M | 23.79M | 19.81M | 14.15M | 8.93M | 1.78M | 2.15M | 1.62M | -190K | 2.74M | 7.13M | 7.95M | 6.17M | 4.77M | 1.78M | 500.17K | 448.29K |
| Operating Margin % | 36.11% | 39.54% | 32.4% | 29.1% | 35.72% | 33.21% | 34.36% | 38.48% | 45.87% | 47.38% | 47.41% | 45.31% | 42.3% | 37.77% | 25.38% | 28.33% | 21.11% | -3.32% | 27.67% | 46.52% | 46.96% | 51.45% | 50.01% | 37.25% | 22.03% | 26.78% |
| Operating Income Growth % | - | 48.25% | 39.99% | -35.62% | -9.56% | -3.89% | -29.35% | -34.54% | -0.07% | 2.96% | 20.07% | 40.07% | 58.43% | 401.07% | -17% | 32.29% | 954.21% | -106.94% | -61.64% | -10.3% | 28.82% | 29.33% | 167.66% | 256.52% | 11.57% | - |
| Pretax Income | 11.24M | 13.62M | 9.7M | 6.6M | 7.95M | 10.88M | 10.96M | 15.28M | 23.39M | 23.25M | 22.56M | 18.8M | 13.06M | 8.15M | 1.73M | 2.08M | 1.58M | -239K | 2.75M | 6.92M | 7.33M | 5.23M | 4.6M | 1.78M | 322.97K | 199.54K |
| Pretax Margin % | 36.42% | 40.97% | 35.45% | 30.33% | 28.85% | 33.21% | 33.27% | 36.69% | 43.84% | 44.97% | 44.96% | 43% | 39.06% | 34.48% | 24.67% | 27.48% | 20.6% | -4.17% | 27.86% | 45.12% | 43.3% | 43.61% | 48.15% | 37.25% | 14.23% | 11.92% |
| Income Tax | 2.98M | 3.66M | 2.61M | 1.83M | 1.76M | 2.98M | 3.12M | 4.24M | 2.78M | 8.31M | 8.19M | 7.41M | 5.39M | 3.33M | 761K | 868K | 671K | -44K | 1.14M | 2.79M | 2.93M | 2.09M | 1.83M | 721.21K | 14.27K | 800 |
| Effective Tax Rate % | 26.48% | 26.87% | 26.87% | 27.71% | 22.1% | 27.38% | 28.46% | 27.78% | 11.88% | 35.73% | 36.32% | 39.43% | 41.3% | 40.87% | 43.94% | 41.67% | 42.36% | 18.41% | 41.52% | 40.27% | 39.95% | 40% | 39.84% | 40.44% | 4.42% | 0.4% |
| 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 |
| Net Margin % | 26.77% | 29.96% | 25.93% | 21.92% | 22.47% | 24.12% | 23.8% | 26.5% | 38.63% | 28.9% | 28.63% | 26.05% | 22.93% | 20.39% | 13.83% | 16.03% | 11.88% | -3.41% | 16.29% | 26.95% | 26% | 26.16% | 28.97% | 22.18% | 13.6% | 11.87% |
| Net Income Growth % | -16.27% | 40.34% | 48.75% | -22.92% | -21.67% | 0.78% | -28.92% | -46.49% | 37.97% | 4% | 26.15% | 48.55% | 59.07% | 396.4% | -20.08% | 33.08% | 568.21% | -112.1% | -61.02% | -6.13% | 40.27% | 13.53% | 160.36% | 244.02% | 55.33% | - |
| Net Income (Continuing) | 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 |
| EPS (Diluted) | 1.03 | 1.27 | 0.92 | 0.63 | 0.82 | 1.07 | 1.06 | 1.42 | 2.61 | 1.92 | 1.86 | 1.27 | 0.87 | 0.55 | 0.11 | 0.14 | 0.11 | -0.02 | 0.19 | 0.47 | 0.49 | 0.36 | 0.32 | 0.13 | 0.05 | 0.04 |
| EPS Growth % | -17.46% | 38.04% | 46.03% | -23.17% | -23.36% | 0.94% | -25.35% | -45.59% | 35.94% | 3.23% | 46.46% | 45.98% | 58.18% | 400% | -21.43% | 27.27% | 580.35% | -112.05% | -59.57% | -4.08% | 36.11% | 12.5% | 146.15% | 186.34% | 9.4% | - |
| EPS (Basic) | - | 1.28 | 0.92 | 0.63 | 0.83 | 1.07 | 1.07 | 1.42 | 2.64 | 1.94 | 1.89 | 1.29 | 0.87 | 0.55 | 0.11 | 0.14 | 0.11 | -0.02 | 0.19 | 0.49 | 0.53 | 0.38 | 0.33 | 0.13 | 0.05 | 0.05 |
| Diluted Shares Outstanding | 8.04M | 7.83M | 7.72M | 7.6M | 7.56M | 7.41M | 7.38M | 7.77M | 7.89M | 7.79M | 7.72M | 8.94M | 8.85M | 8.72M | 8.63M | 8.62M | 8.58M | 8.51M | 8.62M | 8.89M | 9.02M | 8.82M | 8.61M | 8.27M | 6.79M | 4.79M |
Quick answers to the most common questions about buying HNNA stock.
For fiscal year 2025, Hennessy Advisors, Inc. (HNNA) reported total revenue of $33.2M. This represents a 1885.9% increase compared to $1.7M in 2001.
Hennessy Advisors, Inc. (HNNA) is profitable, generating $10.0M in net income for the fiscal year ending 2025 with a net profit margin of 30.0%.
Hennessy Advisors, Inc. (HNNA) reported an operating income of $13.1M, resulting in an operating profit margin of 39.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Hennessy Advisors, Inc. (HNNA) generated $24.9M in gross profit for the year, representing a gross profit margin of 74.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
AUM Concentration and Outflows
Metrics are mathematically derived from official filings.
Revenue Volatility Masks Structural Stagnation
According to the provided quarterly income statements, Hennessy Advisors experienced revenue fluctuations ranging from $6.1M to $9.7M, suggesting that top-line performance remains heavily tethered to market-driven AUM valuations rather than consistent organic growth, which warrants caution regarding the sustainability of recent revenue expansion trends.
The revenue trajectory appears highly sensitive to market beta, as the firm lacks a diversified product suite to offset cyclical downturns in US equity markets. Investors should monitor whether the firm can achieve meaningful net inflows, as current growth appears largely dependent on market appreciation rather than new client acquisition.
Gross Margin Expansion Reflects Efficiency
As reported in financial statements, Hennessy Advisors has demonstrated significant gross margin improvement, climbing from 49.6% in 2024Q2 to 82.7% by 2026Q2, which suggests a successful optimization of the firm's cost-to-serve model despite the broader industry trend of fee compression.
This margin expansion implies that the company is effectively leveraging its existing infrastructure to manage acquired assets without proportional increases in direct costs. Such efficiency may indicate that the firm's sub-advisory arrangements are providing a flexible cost structure that protects profitability during periods of market volatility.
Operating Leverage Drives Bottom-Line Scaling
Based on the firm's reported figures, operating margins have consistently remained in the 23% to 39% range, indicating that Hennessy Advisors possesses the operational leverage necessary to convert incremental revenue gains into higher operating income as the firm scales its AUM through strategic acquisitions.
The ability to maintain these margins while managing a relatively fixed overhead suggests that the company's acquisition-and-integration model is fundamentally sound from an operating perspective. However, the lack of consistent SG&A discipline in certain quarters suggests that management must remain vigilant to prevent administrative costs from eroding these gains.
Stock-Based Compensation Impacts Earnings Clarity
Data from recent filings reveals that stock-based compensation, while relatively modest, has been a recurring feature in the income statement, which may slightly obscure the true cash-generative capacity of the firm's core investment advisory operations for investors evaluating long-term earnings quality.
While the impact of these non-cash expenses appears manageable, the variability in quarterly EPS suggests that non-operating items and tax adjustments may be creating noise in the reported figures. Analysts should focus on normalized earnings to better assess the underlying health of the firm's fee-based revenue stream.
Acquisition Dependence Risks Future Dilution
As indicated by the firm's reliance on external fund adoptions, there is a significant risk that Hennessy Advisors may struggle to maintain its current earnings trajectory if the market for orphaned fund management contracts becomes saturated or if acquisition multiples become prohibitively expensive.
The heavy reliance on inorganic growth to offset potential organic outflows suggests that the firm's long-term viability is contingent upon its ability to identify and integrate new assets. Investors should monitor whether the current cash-heavy balance sheet is deployed effectively or if it remains a drag on overall return on equity.