HENNESSY ADVISORS INC
For the period ended Jun 30, 2025. Filed Aug 6, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 6, 2025
HNNA$10.19-3.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-07.
0001437749-25-015126
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0001437749-25-025081
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 69 previous paragraphs and 68 current paragraphs.
29 unchanged; 38 reworded; 1 added; 2 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 10 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (1)
Current report
On a total return basis, the Dow Jones Industrial Average was up 5.52% for the nine months ended June 30, 2025. During the most recent quarter, equity prices increased after an early April dip triggered by “Liberation Day” tariff fears. Expectations that the U.S. economy may be slowing has prompted investors to look toward the prospect of the Federal Reserve cutting interest rates this year. This expectation likely contributed to the market’s strong resurgence. Stock market gains were driven in large part by the rebound in mega-cap technology and artificial intelligence names in the communication services and information technology sectors. While the prospect of tariff skirmishes still lingers, investors have been heartened by the softening of rhetoric of late and the idea that initial threats have turned into negotiations with other countries.
Removed paragraphs (2)
Previous report
On a total return basis, the Dow Jones Industrial Average was up 0.05% for the six months ending March 31, 2025. During the most recent quarter, equity prices decreased modestly as investor thoughts turned toward the potential effects of dramatic cuts in government employment. With the economy contracting slightly in the recent quarter and tariffs causing increased uncertainty, the market is now pricing in between three and four rate cuts by the Federal Reserve by the end of 2025, according to Bloomberg. Investors appear to be anticipating a softening economy. The announced yet fluctuating tariffs appear to have further confounded investors as both the scope and timing of these levies has been in flux.
Previous report
In both periods, the dollar value increase in general and administrative expense was due to increased commission expense on sales of the Hennessy Funds in the current period.
Reworded paragraphs (38)
Previous wording
Long-term U.S. bond yields decreased during the three months ended March 31, 2025. Inflation remains above the Federal Reserve’s 2% inflation goal. Projections compiled by Bloomberg estimate that the Consumer Price Index will advance by 3.2% in 2025 after increasing by 3.0% in 2024. Even in 2027, the estimate for CPI only moderates to 2.4% growth. With this being the case, we expect investors will be focused on the implications for a slowdown in economic activity as the full weight of government and corporate layoffs and tariffs continue to be digested by the market.
Current wording
Long-term U.S. bond yields were close to flat during the three months ended June 30, 2025. Inflation remains above the Federal Reserve’s 2% inflation goal. Projections compiled by Bloomberg estimate that the Consumer Price Index will advance by 2.9% in 2025 after increasing by 3.0% in 2024. Even in 2027, the estimate for CPI only moderates to 2.4% growth. With this being the case, we expect investors will be focused on the implications for a slowdown in economic activity as the full weight of government and corporate layoffs and tariffs continue to be digested by the market. According to Bloomberg, Federal Funds futures are currently pricing in approximately two interest rate cuts in 2025.
Previous wording
The Japanese equity market was down 2.62% in U.S. dollar terms over the six months ended March 31, 2025, as measured by the Tokyo Stock Price Index. During the period, Japanese equities traded lower as corporate reforms and low inflation have driven returns on equity to four-decade highs.
Current wording
The Japanese equity market was up 8.40% in U.S. dollar terms over the nine months ended June 30, 2025, as measured by the Tokyo Stock Price Index. During the period, Japanese equities traded higher as global trade tension eased considerably during the most recent quarter.
Previous wording
For the twelve months ending March 31, 2025, 13 of 17 Hennessy Funds generated positive total returns, with three of the four that were negative being down less than 1%. In addition, for the three‑year period ending March 31, 2025, all 17 Hennessy Funds posted positive annualized total returns. Lastly, over the longer term, the 16 Hennessy Funds with over five and ten years of operating history all posted positive returns in the five- and ten-year periods ended March 31, 2025.
Current wording
For the twelve months ended June 30, 2025, all 17 Hennessy Funds generated positive total returns. In addition, for the three‑year period ending June 30, 2025, all 17 Hennessy Funds posted positive annualized total returns. Lastly, over the longer term, the 16 Hennessy Funds with over five and ten years of operating history all posted positive returns in the five- and ten-year periods ended June 30, 2025.
Previous wording
We provide service to nearly 200,000 fund accounts nationwide, including accounts held by investors who employ financial advisors to assist them with investing as well as accounts held by retail investors who invest directly with us. We serve approximately 11,100 financial advisors who utilize the Hennessy Funds on behalf of their clients, including roughly 500 who purchased one of our Funds for the first time during the most recent quarter. Approximately 18% of such advisors own two or more Hennessy Funds, and over 650 advisors hold a position of over $500,000. While numbers have declined in recent years, we continue to focus significant efforts on building and maintaining brand loyalty among our top tier of advisors.
Current wording
We provide service to nearly 190,000 fund accounts nationwide, including accounts held by investors who employ financial advisors to assist them with investing as well as accounts held by retail investors who invest directly with us. We serve approximately 11,100 financial advisors who utilize the Hennessy Funds on behalf of their clients, including roughly 300 who purchased one of our Funds for the first time during the most recent quarter. Approximately 17% of such advisors own two or more Hennessy Funds, and over 700 advisors hold a position of over $500,000. While numbers have declined in recent years, we continue to focus significant efforts on building and maintaining brand loyalty among our top tier of advisors.
Previous wording
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. The increase in total assets was attributable to net inflows into the Hennessy Funds, market appreciation, and the purchase of the assets related to the management of the CCM Funds.
Current wording
Total assets under management as of June 30, 2025, was $4.3 billion, an increase of $0.3 billion, or 6.3%, compared to June 30, 2024. The increase in total assets was attributable to market appreciation, partly offset by net outflows from the Hennessy Funds.
Previous wording
The principal asset on our balance sheet, the management contract asset, represents the capitalized costs incurred in connection with the purchase of the assets related to the management of investment funds. As of March 31, 2025, this asset had a net balance of $82.3 million, unchanged since September 30, 2024.
Current wording
The principal asset on our balance sheet, the management contract asset, represents the capitalized costs incurred in connection with the purchase of the assets related to the management of investment funds. As of June 30, 2025, this asset had a net balance of $82.4 million, compared to $82.3 million as of September 30, 2024. The increase was due to costs associated with the pending purchase of assets related to the management of the STF ETFs.
Previous wording
The 2026 Notes are the principal liability on our balance sheet at $39.6 million, net of issuance costs.
Current wording
The 2026 Notes are the principal liability on our balance sheet at $39.7 million, net of issuance costs.
Previous wording
Our 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. The primary sources of our revenue, liquidity, and cash flow are our investment advisory fees and shareholder service fees, which are based on and generated by our average assets under management. Our 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. As of March 31, 2025, we had cash and cash equivalents of $67.6 million.
Current wording
Our total assets under management as of June 30, 2025, was $4.3 billion, an increase of $0.3 billion, or 6.3%, compared to June 30, 2024. The primary sources of our revenue, liquidity, and cash flow are our investment advisory fees and shareholder service fees, which are based on and generated by our average assets under management. Our average assets under management for the nine months ended June 30, 2025, was $4.6 billion, an increase of $1.1 billion, or 31.6%, compared to the nine months ended June 30, 2024. As of June 30, 2025, we had cash and cash equivalents of $70.3 million.
Previous wording
The increase in cash provided by operating activities of $3.7 million was primarily due to increased net income in the current period.
Current wording
The increase in cash provided by operating activities of $4.2 million was primarily due to increased net income in the current period.
Previous wording
The decrease in cash used in investing activities of $0.9 million was primarily due to the costs associated with the purchase of assets related to the management of the CCM Funds in the prior comparable period.
Current wording
The decrease in cash used in investing activities of $0.8 million was primarily due to the costs associated with the purchase of assets related to the management of the CCM Funds in the prior comparable period.
Previous wording
The increase in cash used in financing activities of $0.04 million was due to the increased dollar amount of dividends paid as a result of having more shares outstanding in the current period than in the prior comparable period.
Current wording
The increase in cash used in financing activities of $0.05 million was due to the increased dollar amount of dividends paid as a result of having more shares outstanding in the current period than in the prior comparable period.
Previous wording
Total revenue comprises investment advisory fees and shareholder service fees. Comparing the three months ended March 31, 2024, to the three months ended March 31, 2025, total revenue increased by 33.7%, from $6.9 million to $9.3 million, investment advisory fees increased by 34.8%, from $6.4 million to $8.7 million, and shareholder service fees increased by 19.6%, from $0.5 million to $0.6 million. Comparing the six months ended March 31, 2024, to the six months ended March 31, 2025, total revenue increased by 45.1%, from $13.1 million to $19.0 million, investment advisory fees increased by 46.5%, from $12.1 million to $17.7 million, and shareholder service fees increased by 27.2%, from $1.0 million to $1.3 million.
Current wording
Total revenue comprises investment advisory fees and shareholder service fees. Comparing the three months ended June 30, 2024, to the three months ended June 30, 2025, total revenue increased by 3.5%, from $7.8 million to $8.1 million, investment advisory fees increased by 3.7%, from $7.2 million to $7.5 million, and shareholder service fees increased by 0.7%, from $0.54 million to $0.55 million. Comparing the nine months ended June 30, 2024, to the nine months ended June 30, 2025, total revenue increased by 29.6%, from $20.9 million to $27.0 million, investment advisory fees increased by 30.5%, from $19.3 million to $25.2 million, and shareholder service fees increased by 17.8%, from $1.5 million to $1.8 million.
Previous wording
In both periods, the increase in investment advisory fees was due mainly to increased average daily net assets of the Hennessy Funds, and the increase in shareholder service fees was due to an increase in the average daily net assets held in Investor Class shares of the Hennessy Mutual Funds. Assets held in Investor Class shares of the Hennessy Mutual Funds are subject to a shareholder service fee, whereas assets held in Institutional Class shares of the Hennessy Mutual Funds are not subject to a shareholder service fee.
Current wording
In each period, the increase in investment advisory fees was due mainly to increased average daily net assets of the Hennessy Funds, and the increase in shareholder service fees was due to an increase in the average daily net assets held in Investor Class shares of the Hennessy Mutual Funds. Assets held in Investor Class shares of the Hennessy Mutual Funds are subject to a shareholder service fee, whereas assets held in Institutional Class shares of the Hennessy Mutual Funds are not subject to a shareholder service fee.
Previous wording
We collect investment advisory fees from each of the Hennessy Funds at differing annual rates. These annual rates range between 0.40% and 1.25% of average daily net assets. Average daily net assets of the Hennessy Funds for the three months ended March 31, 2025, was $4.7 billion, which represents an increase of $1.3 billion, or 37.2%, compared to the three months ended March 31, 2024, and average daily net assets of the Hennessy Funds for the six months ended March 31, 2025, was $4.8 billion, which represents an increase of $1.5 billion, or 47.3%, compared to the six months ended March 31, 2024. The Hennessy Fund with the largest average daily net assets for the three and six months ended March 31, 2025, was the Hennessy Cornerstone Mid Cap 30 Fund, with $1.7 billion for both periods. We collect an investment advisory fee from the Hennessy Cornerstone Mid Cap 30 Fund at an annual rate of 0.74% of average daily net assets. The Hennessy Fund with the second largest average daily assets for the three and six months ended March 31, 2025, was the Hennessy Focus Fund, with $0.6 billion for both periods. We collect an investment advisory fee from the Hennessy Focus Fund at an annual rate of 0.90% of average daily net assets. However, we pay a sub‑advisory fee at an annual rate of 0.29% to the fund’s sub-advisor, which reduces the net operating profit contribution of the fund to our financial operations.
Current wording
We collect investment advisory fees from each of the Hennessy Funds at differing annual rates. These annual rates range between 0.40% and 1.25% of average daily net assets. Average daily net assets of the Hennessy Funds for the three months ended June 30, 2025, was $4.1 billion, which represents an increase of $0.2 billion, or 5.3%, compared to the three months ended June 30, 2024, and average daily net assets of the Hennessy Funds for the nine months ended June 30, 2025, was $4.6 billion, which represents an increase of $1.1 billion, or 31.6%, compared to the nine months ended June 30, 2024. The Hennessy Fund with the largest average daily net assets for the three and nine months ended June 30, 2025 was the Hennessy Cornerstone Mid Cap 30 Fund, with $1.3 billion and $1.6 billion, respectively. We collect an investment advisory fee from the Hennessy Cornerstone Mid Cap 30 Fund at an annual rate of 0.74% of average daily net assets. The Hennessy Fund with the second largest average daily assets for the three months ended June 30, 2025 was the Hennessy Gas Utility Fund, with $0.5 billion. We collect an investment advisory fee from the Hennessy Gas Utility Fund at an annual rate of 0.40% of average daily net assets. The Hennessy Fund with the second largest average daily assets for the nine months ended June 30, 2025 was the Hennessy Focus Fund, with $0.6 billion. We collect an investment advisory fee from the Hennessy Focus Fund at an annual rate of 0.90% of average daily net assets. However, we pay a sub‑advisory fee at an annual rate of 0.29% to the fund’s sub-advisor, which reduces the net operating profit contribution of the fund to our financial operations.
Previous wording
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. The increase in total assets was attributable to net inflows into the Hennessy Funds, market appreciation, and the purchase of the assets related to the management of the CCM Funds.
Current wording
Total assets under management as of June 30, 2025, was $4.3 billion, an increase of $0.3 billion, or 6.3%, compared to June 30, 2024. The increase in total assets was attributable to market appreciation, partly offset by net outflows from the Hennessy Funds.
Previous wording
Redemptions as a percentage of assets under management increased from an average of 2.2% per month during the three months ended March 31, 2024, to an average of 5.5% per month during the three months ended March 31, 2025. Redemptions as a percentage of assets under management decreased from an average of 2.5% per month during the six months ended March 31, 2024, to an average of 4.0% per month during the six months ended March 31, 2025.
Current wording
Redemptions as a percentage of assets under management increased from an average of 2.2% per month during the three months ended June 30, 2024, to an average of 3.6% per month during the three months ended June 30, 2025. Redemptions as a percentage of assets under management increased from an average of 2.4% per month during the nine months ended June 30, 2024, to an average of 3.9% per month during the nine months ended June 30, 2025.
Previous wording
Comparing the three months ended March 31, 2024, to the three months ended March 31, 2025, total operating expenses increased by 16.0%, from $5.0 million to $5.8 million. As a percentage of total revenue, total operating expenses decreased 9.5 percentage points to 62.8%. The dollar value increase in operating expenses was due to increases in all expense categories other than sub-advisory fee expense, which moderately decreased.
Current wording
Comparing the three months ended June 30, 2024, to the three months ended June 30, 2025, total operating expenses remained the same at $5.2 million. As a percentage of total revenue, total operating expenses decreased 2.2 percentage points to 64.6%. The flat dollar value in operating expenses was due to increases in the compensation and benefits, fund distribution and other, and depreciation expense categories offset by decreases in the sub-advisory fees and general and administrative expense categories.
Previous wording
Comparing the six months ended March 31, 2024, to the six months ended March 31, 2025, total operating expenses increased by 20.2%, from $9.7 million to $11.7 million. As a percentage of total revenue, total operating expenses decreased 12.8 percentage points to 61.6%. The dollar value increase in operating expenses was due to increases in all expense categories.
Current wording
Comparing the nine months ended June 30, 2024, to the nine months ended June 30, 2025, total operating expenses increased by 13.2%, from $14.9 million to $16.9 million. As a percentage of total revenue, total operating expenses decreased 9.1 percentage points to 62.5%. The dollar value increase in operating expenses was due to increases in all expense categories.
Previous wording
Compensation and Benefits Expense: Comparing the three months ended March 31, 2024, to the three months ended March 31, 2025, compensation and benefits expense increased by 18.7%, from $2.3 million to $2.7 million. As a percentage of total revenue, compensation and benefits expense decreased 3.7 percentage points to 28.8%.
Current wording
Compensation and Benefits Expense: Comparing the three months ended June 30, 2024, to the three months ended June 30, 2025, compensation and benefits expense increased by 10.2%, from $2.3 million to $2.5 million. As a percentage of total revenue, compensation and benefits expense increased 1.9 percentage points to 31.1%.
Previous wording
Comparing the six months ended March 31, 2024, to the six months ended March 31, 2025, compensation and benefits expense increased by 32.1%, from $4.1 million to $5.4 million. As a percentage of total revenue, compensation and benefits expense decreased 2.7 percentage points to 28.7%.
Current wording
Comparing the nine months ended June 30, 2024, to the nine months ended June 30, 2025, compensation and benefits expense increased by 24.3%, from $6.4 million to $7.9 million. As a percentage of total revenue, compensation and benefits expense decreased 1.1 percentage points to 29.4%.
Previous wording
In both periods, the dollar value increase in compensation and benefit expense was due to an increase in incentive-based compensation in the current period.
Current wording
In each period, the dollar value increase in compensation and benefit expense was due to an increase in incentive-based compensation in the current period.
Previous wording
General and Administrative Expense: Comparing the three months ended March 31, 2024, to the three months ended March 31, 2025, general and administrative expense increased by 22.9%, from $1.5 million to $1.8 million. As a percentage of total revenue, general and administrative expense decreased 1.6 percentage points to 19.5%.
Current wording
General and Administrative Expense: Comparing the three months ended June 30, 2024, to the three months ended June 30, 2025, general and administrative expense decreased by 8.0%, from $1.6 million to $1.4 million. As a percentage of total revenue, general and administrative expense decreased 2.1 percentage points to 17.8%. The decrease was primarily due to decreased commission expense on sales of the Hennessy Funds in the current period.
Previous wording
Comparing the six months ended March 31, 2024, to the six months ended March 31, 2025, general and administrative expense increased by 8.3%, from $3.2 million to $3.5 million. As a percentage of total revenue, general and administrative expense decreased 6.2 percentage points to 18.2%.
Current wording
Comparing the nine months ended June 30, 2024, to the nine months ended June 30, 2025, general and administrative expense increased by 3.0%, from $4.7 million to $4.9 million. As a percentage of total revenue, general and administrative expense decreased 4.6 percentage points to 18.1%. The dollar value increase was primarily due to increased outside services expense in the current period.
Previous wording
Fund Distribution and Other Expense: Fund distribution and other expense consists primarily of financial institution fees incurred by us for distribution of the Hennessy Funds and also for the operations of the Hennessy Stance ESG ETF. Fund distribution and other expense does not include sub‑advisory fees, which are shown separately.
Current wording
Fund Distribution and Other Expense: Fund distribution and other expense consists primarily of financial institution fees incurred by us for distribution of the Hennessy Funds and also for the operations of the Hennessy Sustainable ETF. Fund distribution and other expense does not include sub‑advisory fees, which are shown separately.
Previous wording
The distribution component of fund distribution and other expense consists of fees paid to various financial institutions that offer the Hennessy Funds as potential investments to their clients. When the Hennessy Funds are purchased through one of these financial institutions, the institution typically charges an asset‑based fee, which is recorded as a fund distribution expense on our statement of operations to the extent paid by us. The Hennessy Mutual Funds, but not the Hennessy Stance ESG ETF, may be purchased directly and when purchased directly, we do not incur any such expense. These fees generally increase or decrease in line with the net assets of the Hennessy Funds held through these financial institutions, which are affected by inflows, outflows, and fund performance. In addition, some financial institutions charge a minimum fee if the average daily net assets of a Hennessy Fund held by such an institution are less than a threshold amount. In such cases, we pay the minimum fee.
Current wording
The distribution component of fund distribution and other expense consists of fees paid to various financial institutions that offer the Hennessy Funds as potential investments to their clients. When the Hennessy Funds are purchased through one of these financial institutions, the institution typically charges an asset‑based fee, which is recorded as a fund distribution expense on our statement of operations to the extent paid by us. The Hennessy Mutual Funds, but not the Hennessy Sustainable ETF, may be purchased directly and when purchased directly, we do not incur any such expense. These fees generally increase or decrease in line with the net assets of the Hennessy Funds held through these financial institutions, which are affected by inflows, outflows, and fund performance. In addition, some financial institutions charge a minimum fee if the average daily net assets of a Hennessy Fund held by such an institution are less than a threshold amount. In such cases, we pay the minimum fee.
Previous wording
The other component of fund distribution and other expense consists of fees incurred by us for the operations of the Hennessy Stance ESG ETF. We receive a unitary investment advisory fee from the Hennessy Stance ESG ETF and then pay all of its operating expenses (with limited exceptions), including fund administration, fund accounting, transfer agency, custody, licensing, audit, and tax services.
Current wording
The other component of fund distribution and other expense consists of fees incurred by us for the operations of the Hennessy Sustainable ETF. We receive a unitary investment advisory fee from the Hennessy Sustainable ETF and then pay all of its operating expenses (with limited exceptions), including fund administration, fund accounting, transfer agency, custody, licensing, audit, and tax services.
Previous wording
Comparing the three months ended March 31, 2024, to the three months ended March 31, 2025, fund distribution and other expense increased by 24.9%, from $0.2 million to $0.3 million. As a percentage of total revenue, fund distribution and other expense decreased 0.2 percentage points to 2.7%.
Current wording
Comparing the three months ended June 30, 2024, to the three months ended June 30, 2025, fund distribution and other expense increased by 10.5%, from $0.2 million to $0.3 million. As a percentage of total revenue, fund distribution and other expense increased 0.2 percentage points to 3.1%.
Previous wording
Comparing the six months ended March 31, 2024, to the six months ended March 31, 2025, fund distribution and other expense increased by 47.4%, from $0.4 million to $0.5 million. As a percentage of total revenue, fund distribution and other expense remained the same at 2.7%.
Current wording
Comparing the nine months ended June 30, 2024, to the nine months ended June 30, 2025, fund distribution and other expense increased by 32.9%, from $0.6 million to $0.8 million. As a percentage of total revenue, fund distribution and other expense remained the same at 2.8%.
Previous wording
In both periods, the dollar value increase in fund distribution and other expense was primarily due to increased average daily net assets across the Hennessy Funds.
Current wording
In each period, the increase in fund distribution and other expense was primarily due to increased average daily net assets across the Hennessy Funds in the current period.
Previous wording
Sub-Advisory Fees Expense: Comparing the three months ended March 31, 2024, to the three months ended March 31, 2025, sub-advisory fees expense decreased by 1.3%, from $1.05 million to $1.03 million. As a percentage of total revenue, sub-advisory fees expense decreased 4.0 percentage points to 11.1%. The decrease in sub-advisory fees expense was due to decreased average daily net assets of the sub‑advised Hennessy Funds.
Current wording
Sub-Advisory Fees Expense: Comparing the three months ended June 30, 2024, to the three months ended June 30, 2025, sub-advisory fees expense decreased by 13.0%, from $1.1 million to $0.9 million. As a percentage of total revenue, sub-advisory fees expense decreased 2.2 percentage points to 11.7%. The decrease in sub-advisory fees expense was due to decreased average daily net assets of the sub‑advised Hennessy Funds in the current period.
Previous wording
Comparing the six months ended March 31, 2024, to the six months ended March 31, 2025, sub-advisory fees expense increased by 10.6%, from $2.0 million to $2.2 million. As a percentage of total revenue, sub-advisory fees expense decreased 3.6 percentage points to 11.4%. The dollar value increase in sub-advisory fees expense was due to increased average daily net assets of the sub‑advised Hennessy Funds.
Current wording
Comparing the nine months ended June 30, 2024, to the nine months ended June 30, 2025, sub-advisory fees expense increased by 2.2%, from $3.0 million to $3.1 million. As a percentage of total revenue, sub-advisory fees expense decreased 3.2 percentage points to 11.4%. The dollar value increase in sub-advisory fees expense was due to increased average daily net assets of the sub‑advised Hennessy Funds in the current period.
Previous wording
Depreciation Expense: Comparing the three months ended March 31, 2024, to the three months ended March 31, 2025, depreciation expense increased by 21.1% from $0.06 million to $0.07 million. As a percentage of total revenue, depreciation expense remained the same at 0.7%.
Current wording
Depreciation Expense: Comparing the three months ended June 30, 2024, to the three months ended June 30, 2025, depreciation expense increased by 25.4% from $0.06 million to $0.07 million. As a percentage of total revenue, depreciation expense increased 0.1 percentage points to 0.9%.
Previous wording
Comparing the six months ended March 31, 2024, to the six months ended March 31, 2025, depreciation expense increased by 3.2% from $0.126 million to $0.130 million. As a percentage of total revenue, depreciation expense decreased 0.2 percentage points to 0.7%.
Current wording
Comparing the nine months ended June 30, 2024, to the nine months ended June 30, 2025, depreciation expense increased by 10.3% from $0.19 million to $0.20 million. As a percentage of total revenue, depreciation expense decreased 0.1 percentage points to 0.8%.
Previous wording
The dollar value increase in depreciation expense in both periods resulted from more fixed asset purchases in the current period.
Current wording
In each period, the dollar value increase in depreciation expense resulted from more fixed asset purchases in the current period.
Previous wording
Interest income consists of interest earned on cash and cash equivalents. Comparing the three months ended March 31, 2024, to the three months ended March 31, 2025, interest income decreased from $0.8 million to $0.7 million. Comparing the six months ended March 31, 2024, to the six months ended March 31, 2025, interest income decreased from $1.6 million to $1.4 million. In both periods, the decrease in interest income resulted from decreased interest rates in the current period.
Current wording
Interest income consists of interest earned on cash and cash equivalents. Comparing the three months ended June 30, 2024, to the three months ended June 30, 2025, interest income decreased from $0.8 million to $0.7 million. Comparing the nine months ended June 30, 2024, to the nine months ended June 30, 2025, interest income decreased from $2.3 million to $2.1 million. In each period, the decrease in interest income resulted from decreased interest rates in the current period.
Previous wording
Comparing the three months ended March 31, 2024, to the three months ended March 31, 2025, interest expense increased from $0.568 million to $0.572 million. Comparing the six months ended March 31, 2024, to the six months ended March 31, 2025, interest expense increased from $1.135 million to $1.144 million. In both periods, the increase in interest expense was due to the manner in which interest expense is calculated under U.S. GAAP. The issuance costs related to the 2026 Notes that have been capitalized are amortized over time and therefore increase the carrying amount of the 2026 Notes. As the carrying amount of the 2026 Notes increases, the interest expense on the 2026 Notes for financial statement purposes also increases.
Current wording
Comparing the three months ended June 30, 2024, to the three months ended June 30, 2025, interest expense increased from $0.569 million to $0.574 million. Comparing the nine months ended June 30, 2024, to the nine months ended June 30, 2025, interest expense increased from $1.704 million to $1.718 million. In each period, the increase in interest expense was due to the manner in which interest expense is calculated under U.S. GAAP. The issuance costs related to the 2026 Notes that have been capitalized are amortized over time and therefore increase the carrying amount of the 2026 Notes. As the carrying amount of the 2026 Notes increases, the interest expense on the 2026 Notes for financial statement purposes also increases.
Previous wording
Comparing the three months ended March 31, 2024, to the three months ended March 31, 2025, income tax expense increased by 67.2%, from $0.6 million to $1.0 million. Comparing the six months ended March 31, 2024, to the six months ended March 31, 2025, income tax expense increased by 105.3%, from $1.0 million to $2.1 million. In both periods, the increase in income tax expense was due to increased net operating income, as well as a higher effective income tax rate in the current period due to a greater exposure to state income tax liability based on the location of investors in the Hennessy Funds.
Current wording
Comparing the three months ended June 30, 2024, to the three months ended June 30, 2025, income tax expense increased by 10.7%, from $0.76 million to $0.84 million. Comparing the nine months ended June 30, 2024, to the nine months ended June 30, 2025, income tax expense increased by 65.0%, from $1.8 million to $2.9 million. In each period, the increase in income tax expense was due to increased net operating income, as well as a higher effective income tax rate in the current period due to a greater exposure to state income tax liability based on the location of investors in the Hennessy Funds.
Previous wording
Comparing the three months ended March 31, 2024, to the three months ended March 31, 2025, net income increased by 67.7%, from $1.5 million to $2.6 million. Comparing the six months ended March 31, 2024, to the six months ended March 31, 2025, net income increased by 97.7%, from $2.7 million to $5.4 million. In both periods, the increase in net income was primarily due to increased revenue in the current period.
Current wording
Comparing the three months ended June 30, 2024, to the three months ended June 30, 2025, net income increased by 4.5%, from $2.0 million to $2.1 million. Comparing the nine months ended June 30, 2024, to the nine months ended June 30, 2025, net income increased by 58.1%, from $4.8 million to $7.5 million. In each period, the increase in net income was primarily due to increased revenue in the current period.