Hennessy Advisors Inc (NASDAQ: HNNA) is an asset management company that serves as the investment adviser to the Hennessy Funds, a family of mutual funds and one ETF. Revenue comes almost entirely from asset-based fees: investment advisory fees of $33.2 million (93.3% of total revenue) and shareholder service fees of $2.4 million (6.7% of total revenue) in FY2025 ended September 30, 2025, for total revenue of $35.5 million. The company manages 16 named funds across equity, sector, balanced, Japan-focused, and sustainable strategies, with several sub-advisors handling day-to-day portfolio management on select funds. Headquartered in Novato, California, Hennessy Advisors was founded by Neil J. Hennessy, who serves as Chief Executive Officer, Chairman of the Board, President, Chief Market Strategist, and a Portfolio Manager as of the FY2025 10-K filed December 3, 2025. Net operating income was $13.1 million in FY2025, representing a 37.0% operating margin. The company carries notes payable on its balance sheet and has 7,889,941 shares of common stock issued and outstanding as of September 30, 2025.

Revenue model

Asset-based fee model. Investment advisory fees (93.3% of FY2025 revenue, $33.2M) are earned as a percentage of assets under management across the Hennessy Funds. Shareholder service fees (6.7%, $2.4M) are also AUM-linked. The company pays sub-advisory fees ($4.1M in FY2025) to third-party managers for certain funds, which are a direct cost against revenue.

Products and services

Hennessy Advisors manages 16 mutual funds and one ETF under the Hennessy Funds Trust umbrella, including: Hennessy Cornerstone Growth Fund (HFCGX/HICGX), Hennessy Cornerstone Mid Cap 30 Fund (HFMDX/HIMDX), Hennessy Cornerstone Value Fund, Hennessy Focus Fund (HFCSX/HFCIX), Hennessy Equity and Income Fund, Hennessy Total Return Fund, Hennessy Balanced Fund, Hennessy Gas Utility Fund, Hennessy Large Cap Financial Fund (HLFNX/HILFX), Hennessy Small Cap Financial Fund (HSFNX/HISFX), Hennessy Technology Fund (HTECX/HTCIX), Hennessy Japan Fund, Hennessy Japan Small Cap Fund, and the Hennessy Sustainable ETF (NASDAQ: STNC, inception March 15, 2021). Funds offer both Investor Class and Institutional Class share structures.

Customers and end markets

End investors in the Hennessy Funds, including retail and institutional shareholders. Funds span domestic equity, sector-specific (financial services, technology, gas utility), Japan equity, and ESG strategies, targeting individual and institutional investors seeking actively managed or rules-based equity exposure.

Value-chain role

Investment adviser and fund sponsor. Hennessy Advisors holds management contracts for each fund, sets investment strategy, handles distribution and marketing, and delegates day-to-day portfolio management to sub-advisors (including Broad Run Investment Management for the Focus Fund and The London Company of Virginia for the Equity and Income Fund) on select strategies. The company carries management contract assets on its balance sheet.

Geographic exposure

Headquartered in Novato, California. Operates primarily in the U.S. mutual fund market. Offers Japan-focused strategies (Hennessy Japan Fund, Hennessy Japan Small Cap Fund) benchmarked against Japanese equity indices, though the management company itself is U.S.-based.

Source: SEC 10-K, filed 2025-12-03

Industry: Investment Advice Peers: 180 DEGREE CAPITAL CORP. /NY/ Heritage Global Inc Blackstone Inc First Eagle Alternative Capital BDC, Inc. Great Elm Capital Corp PhenixFIN Corp OFS Credit Company Inc Safeguard Scientifics Inc Chicago Atlantic BDC Inc Westwood Holdings Group Inc