Hennessy Advisors, Inc. (HNNA): Business Model Canvas [Apr-2026 Updated]

You're digging into the nuts and bolts of Hennessy Advisors, Inc.'s (HNNA) business model, and frankly, the fiscal year 2025 data shows a highly focused operation: it's an asset management fee machine. With average Assets Under Management near $4.5 billion, the firm pulled in $35.5 million in total revenue, where a whopping 93.3% came straight from Investment Advisory Fees, not some complex side hustle. This structure is anchored by their disciplined, quantitative strategy across 12 internally managed funds, but the immediate strategic play is their pending acquisition of two ETFs closing in Q3 2025. Keep reading to see exactly how their key partnerships and cost base support this lean, fee-driven engine.

Hennessy Advisors, Inc. (HNNA) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that make the Hennessy Funds engine run, especially as Hennessy Advisors, Inc. integrates recent growth moves. These partnerships are critical because, frankly, Hennessy Advisors, Inc. doesn't manage every single mandate in-house; they rely on specialized expertise and broad distribution reach to keep those assets flowing. As of the fiscal year end September 30, 2025, the firm managed a total of 17 Hennessy Funds.

The revenue engine is directly tied to the average assets under management (AUM), which for fiscal year 2025 stood at $4.5 billion, a 21.6% increase over fiscal year 2024. However, the total AUM at the end of the fiscal year was $4.2 billion. These numbers underscore the importance of keeping distribution channels open and sub-advisors performing.

Sub-advisors for Five of the 17 Hennessy Funds

For several of the Hennessy Funds, Hennessy Advisors, Inc. partners with external investment managers who handle the day-to-day portfolio construction. You pay them a fee out of your own assets, which naturally moves up or down with the AUM in those sub-advised funds. For the Hennessy Focus Fund, for example, the investment advisory fee rate was 0.90% of average daily net assets, but the sub-advisory fee paid out was 0.29% of those same assets for fiscal year 2025. The overall advisory fee rates collected across the Hennessy Funds range from 0.40% and 1.25% annually.

Here are the specific sub-advisor relationships confirmed as of the September 30, 2025 closing date, covering two of the funds:

Hennessy Fund	Sub-Advisor	FY2025 Average Daily Net Assets (Example Fund)	Sub-Advisory Fee Rate (Example)
Hennessy Focus Fund	Broad Run Investment Management, LLC	$573 million (FY2025 Average)	0.29%
Hennessy Equity and Income Fund (Fixed Income Allocation)	FCI Advisors	N/A	N/A
Hennessy Equity and Income Fund (Equity Allocation)	The London Company of Virginia, LLC	N/A	N/A
Remaining Two Funds (of the Five Required)	Sub-Advisors Not Explicitly Named in FY2025 Report	N/A	N/A

The Hennessy Cornerstone Mid Cap 30 Fund, which had $1.5 billion in average daily net assets for FY2025, is managed with an advisory fee rate of 0.74%, but the search results don't specify if this particular fund is sub-advised.

Financial Institutions for Fund Distribution (Broker-Dealers, RIAs)

Distribution relies heavily on partnerships with the broader financial community. To help those relationships, Hennessy Advisors, Inc. made a tactical move to eliminate all redemption and exchange fees from each of its funds, effective in 2025. That decision gives professional financial advisors the flexibility they need to adjust client allocations without penalty. The firm is actively working to develop partnerships with research analysts at top-tier wirehouses, banks, TAMP's (Third-Party Asset Managers), and independent and regional broker/dealers. This focus on the distribution side is a key part of their organic growth strategy.

STF Management, LP for the Acquisition of Two ETFs (Pending Q3 2025 Close)

A major partnership/acquisition event involved STF Management, LP. Hennessy Advisors, Inc. signed a definitive agreement in March 2025 to purchase the assets of two ETFs: the STF Tactical Growth ETF and the STF Tactical Growth & Income ETF. The combined assets of these two funds were approximately $220 million at the time of the announcement. The transaction was structured as a tax-free reorganization and was expected to close in the third quarter of 2025. Upon closing, these assets were set to be reorganized under the Hennessy Funds Trust and renamed. This deal was strategic, as the acquired assets were nearly three times the company's market capitalization of approximately $78 million back in March 2025.

Custodians and Transfer Agents for Fund Operations

For the day-to-day mechanics of running the funds-safekeeping assets, processing trades, and managing shareholder records-Hennessy Advisors, Inc. depends on essential third-party service providers. These partners handle the back-office functions that allow the investment teams to focus on portfolio management. While the specific names of the custodians and transfer agents aren't detailed in the latest public reports, their function is implied in the operational structure. The firm's total operating expenses were $22.393 million for fiscal year 2025, covering these services along with compensation and G&A.

The firm's cash position is strong enough to support these operations, with cash and cash equivalents, net of gross debt, reported at $32.2 million at the end of fiscal year 2025.

Finance: draft 13-week cash view by Friday.

Hennessy Advisors, Inc. (HNNA) - Canvas Business Model: Key Activities

You're looking at the core engine of Hennessy Advisors, Inc. (HNNA) for fiscal year 2025, focusing on what the firm actually does to generate revenue and manage assets. It's all about the active management and strategic expansion of the Hennessy Funds family.

Providing investment advisory services to 16 mutual funds and one ETF

The primary activity is the provision of investment advisory services to the entire family of products branded as the Hennessy Funds. This forms the bedrock of the revenue structure. For fiscal year 2025, the firm provided these services across a total of 17 distinct investment vehicles: 16 open-end mutual funds and one exchange-traded fund (ETF).

Revenue generation is directly tied to the assets managed, with fees calculated as a percentage of average daily net assets. Here's a breakdown of the revenue sources for FY2025:

Revenue Source	FY2025 Amount (USD)	Percentage of Total Revenue
Investment Advisory Fees	$33.174 million	93.3%
Shareholder Service Fees	$2.364 million	6.7%

The total revenue for fiscal year 2025 reached $35.54 million, marking a 19.9% increase compared to fiscal year 2024's $29.6 million.

Internal management of 12 of the 17 Hennessy Funds

Hennessy Advisors, Inc. maintains direct control over a significant portion of its product lineup. The firm manages 12 of the 17 Hennessy Funds internally. For the remaining five funds, day-to-day portfolio management responsibilities are delegated to sub-advisors, though Hennessy Advisors, Inc. retains oversight responsibilities, including monitoring adherence to investment objectives.

The largest fund by average daily net assets for FY2025 was the Hennessy Cornerstone Mid Cap 30 Fund, which held $1.5 billion in average daily net assets. The overall average assets under management (AUM) for all Hennessy Funds during FY2025, the basis upon which revenue is earned, was $4.5 billion, an increase of 21.6% over the prior year.

Executing a disciplined, quantitative, buy-and-hold investment strategy

The core philosophy guiding investment activity is a commitment to a buy-and-hold philosophy that explicitly rejects market timing. This discipline helped ensure that every one of the 17 Hennessy Funds posted positive returns in the one- and three-year periods ended September 30, 2025.

The quantitative element is significant within the equity offerings. Specifically, four of the five Domestic Equity products utilize a quantitative investment strategy.

The firm's recent trading activity, as disclosed in its September 29, 2025, 13F filing, involved 276 equity positions with a total 13F market value of $3 billion. Key buying activity included increases in holdings for Mastec Inc., Primoris SVCS Corp., and TD Synnex Corporation.

Strategic identification and integration of future fund acquisitions

A key activity supporting growth is the pursuit of strategic purchases of management-related assets. In March 2025, Hennessy Advisors, Inc. signed a definitive agreement to purchase the assets related to the management of two specific ETFs from STF Management, LP. These are planned to be reorganized into new series under the Hennessy Funds, with completion anticipated in December 2025.

The firm's financial position supports this activity. As of the end of fiscal year 2025, Hennessy Advisors, Inc. reported cash and cash equivalents of $72.4 million. The company is entering fiscal year 2026 from a strong position, expecting nearly $4.3 billion in assets under management and over $72 million in cash, alongside this pending deal.

Marketing and direct outreach to financial advisors

Organic growth is driven by retention and generating inflows, heavily relying on relationships with financial advisors. The firm focuses significant efforts on building loyalty among its top tier of advisors.

The specific targets for enhanced focus include financial advisors who meet one or both of these criteria:

• Own two or more Hennessy Funds.
• Hold an asset position of over $500,000.

The firm also consistently pays dividends, distributing $4.3 million in fiscal year 2025.

Hennessy Advisors, Inc. (HNNA) - Canvas Business Model: Key Resources

When we look at what makes Hennessy Advisors, Inc. tick, the Key Resources section of the canvas is all about the tangible and intangible assets that drive revenue and competitive advantage. You need to know what they own and what they control to understand their earning power, so let's lay out the hard numbers from the close of fiscal year 2025.

The core of the business is built on assets under management (AUM) and the cash generated from managing those assets. Here's a quick snapshot of the scale and financial foundation as of late 2025:

Resource Metric	Value (FYE 2025 or FY2025 Average)	Context/Detail
Average Assets Under Management (AUM)	$4.5 billion	Average daily net assets used for revenue calculation for fiscal year 2025, an increase of 22% from fiscal year 2024.
Total AUM (Year End)	$4.2 billion	Total AUM at the end of fiscal year 2025, a decrease of 8.6% from the end of fiscal year 2024.
Cash and Cash Equivalents	$72.4 million	Reported cash position entering fiscal year 2026.
Cash and Cash Equivalents (Net of Debt)	$32.2 million	Reported cash and cash equivalents, net of gross debt, at fiscal year end 2025.
Total Hennessy Funds Managed	17	Family of funds including open-end mutual funds and one ETF.

The intellectual property here is defintely crucial. Hennessy Advisors, Inc. relies heavily on its proprietary, quantitative investment formulas and models. These aren't just general strategies; they are the specific, repeatable processes used to manage the funds. For instance, the advisory fees collected range annually between 0.40% and 1.25% of average daily net assets, depending on the specific fund strategy, which shows the value placed on these distinct management approaches. The Hennessy Cornerstone Mid Cap 30 Fund, for example, commanded an AUM of $1.5 billion in fiscal year 2025, suggesting strong client confidence in its underlying model.

Human capital is another primary resource. You have an experienced management team with an average tenure of 14 years. This level of stability in leadership and investment personnel is a significant asset in an industry where client trust is paramount. This tenure supports the firm's stated buy-and-hold philosophy, which rejects market timing. The team's experience is key to maintaining the historical performance where all 16 funds with over 10 years of history posted positive returns for both the 5-year and 10-year periods ending September 30, 2025.

The product shelf itself is a resource that needs constant tending. The firm manages a family of 17 Hennessy Funds, which are categorized to serve different investor needs. This breadth allows them to capture revenue across various market segments. The composition of these funds includes:

• Domestic Equity funds.
• Multi-Asset funds.
• Sector and Specialty funds.

The firm manages 12 of these 17 funds internally, meaning the proprietary models and experienced team are directly applied to the majority of the assets, which is a key operational advantage.

Hennessy Advisors, Inc. (HNNA) - Canvas Business Model: Value Propositions

Hennessy Advisors, Inc. offers a value proposition centered on a steadfast, disciplined investment process. You see this in their commitment to a buy-and-hold philosophy that explicitly rejects the idea of market timing. This consistency is a core offering for investors seeking a clear, unwavering strategy.

The firm backs this philosophy with demonstrable results, especially over the recent period. As of the fiscal year ended September 30, 2025, every single one of the 17 Hennessy Funds delivered a positive return for the one-year period. Furthermore, the longer track record shows strength: all 16 Funds with at least 10 years of history posted positive returns across both the 5-year and 10-year periods ending September 30, 2025.

Here's a quick look at that performance context:

Metric	Value/Result (Period Ended 9/30/2025)
Total Funds Managed	17
Funds with Positive 1-Year Return	17 of 17
Funds with Positive 5-Year Return (10+ Year History)	All of the 16 Funds
Funds with Positive 10-Year Return (10+ Year History)	All of the 16 Funds
Total Assets Under Management (AUM)	$4.2 billion
Average AUM for Fiscal Year 2025	$4.5 billion

You also gain access to a diverse set of investment options. Hennessy Advisors, Inc. manages funds across several distinct categories, providing access to both core and more specialized mandates.

• Domestic Equity strategies
• Multi-Asset strategies
• Sector & Specialty strategies

The firm's product lineup includes 16 open-end mutual funds and one exchange-traded fund (ETF) under the Hennessy Funds brand. For instance, the investment advisory fee rates collected on average daily net assets for fiscal year 2025 ranged between 0.40% and 1.25%.

Finally, the commitment to the shareholder is a stated value. Hennessy Advisors, Inc. emphasizes providing superior service to its investors. This operational focus is supported by a robust customer relationship management (CRM) system, which maintains a database of over 100,000 financial advisors, in addition to retail investors. The firm reported net income of $10.0 million for the fiscal year ended September 30, 2025, with fully diluted earnings per share of $1.27, representing a 38% increase year-over-year.

Hennessy Advisors, Inc. (HNNA) - Canvas Business Model: Customer Relationships

You're looking at how Hennessy Advisors, Inc. (HNNA) nurtures the connections that drive revenue, which is almost entirely tied to Assets Under Management (AUM). The firm maintains a dedicated focus on the most significant relationships, specifically targeting financial advisors who hold a position of over \$500,000 in their funds or who own two or more Hennessy Funds to build brand loyalty among this top tier of advisors. This focus is critical because the firm's revenue is directly linked to the average daily net assets of the Hennessy Funds, which for fiscal year 2025 stood at an average of \$4.5 billion.

The value proposition underpinning these relationships is the firm's commitment to disciplined, buy-and-hold investing and superior service. The scale of the assets managed dictates the fee structure Hennessy Advisors collects from the funds.

Metric	Value (FY 2025)	Context
Total Assets Under Management (Year End)	\$4.2 billion	As of September 30, 2025.
Average Assets Under Management (AUM)	\$4.5 billion	Upon which investment advisory revenue is earned for FY 2025.
Investment Advisory Fee Rate Range	0.40% to 1.25%	Annual rate charged on average daily net assets of the Hennessy Funds.
Largest Fund Average Daily Net Assets	\$1.5 billion	For the Hennessy Cornerstone Mid Cap 30 Fund in FY 2025.
Cash & Equivalents Net of Gross Debt (Year End)	\$32.2 million	Reflecting balance sheet strength entering fiscal year 2026.

The service model is layered, addressing different client needs across the spectrum of their offerings, which currently include 16 open-end mutual funds and one ETF.

• High-quality, personalized customer service for investors is a core commitment, supporting the firm's disciplined investment philosophy.
• Direct engagement is managed via the company's internal sales team, driving organic growth through marketing and distribution efforts.
• The firm manages the day-to-day portfolio responsibilities for 12 of the 17 Hennessy Funds internally, subject to oversight.
• Automated, self-service options exist for direct shareholders, complementing the advisory services provided to financial professionals.

For direct shareholders, the service includes maintaining a toll-free number to ask questions about their accounts, acting as a liaison with U.S. Bank Global Fund Services, the administrator. The consistency of shareholder returns is supported by a declared quarterly dividend of \$0.1375 per share. Finance: review the impact of the \$4.2 billion year-end AUM on Q1 2026 fee projections by next Tuesday.

Hennessy Advisors, Inc. (HNNA) - Canvas Business Model: Channels

You're looking at how Hennessy Advisors, Inc. gets its products-the Hennessy Funds-to the end investor. The firm uses a multi-channel approach, which is standard for an asset manager of this size, relying heavily on third parties but also maintaining a direct line to retail investors.

Financial Intermediaries (broker-dealers, RIAs) for fund sales.

The primary route for Hennessy Advisors, Inc. to distribute its suite of 17 funds is through the professional investment community. This includes broker-dealers, independent financial advisors, and Registered Investment Advisors (RIAs). Revenue from these channels is largely derived from investment advisory fees, which are calculated as a percentage of average daily net assets, with annual rates reported to be between 0.40% and 1.25% of those assets. The firm's total assets under management (AUM) as of the end of fiscal year 2025 were reported at $4.2 billion, though a more recent estimate as of December 4, 2025, placed it closer to $3.87 billion.

Direct sales channel for mutual funds (Investor Class shares).

Hennessy Advisors, Inc. supports a direct sales channel, which is specifically tied to the Investor Class shares of its mutual funds. This is a key differentiator in the channel structure because shareholder service fees are charged on Investor Class shares only. This direct access allows the firm to capture revenue streams that might otherwise go entirely to intermediaries. The firm's focus on superior service is intended to support retention across all channels, including direct investors.

The channel strategy is supported by the overall financial performance, which saw total revenue reach $35.54 million for the fiscal year ended September 30, 2025.

Metric	Value (As of FYE 9/30/2025 or Latest Available)	Change/Context
Total Revenue (FY 2025)	$35.54 million	Up 19.87% from $29.65 million in FY 2024
Net Income (FY 2025)	$9.96 million	Up 40.34% from $7.10 million in FY 2024
Average Assets Under Management (AUM)	$4.5 billion	Up 22% for the fiscal year
Total Assets Under Management (Year-End)	$4.2 billion	Down 9% from prior year-end
Funds Managed	17	16 mutual funds and one ETF
Quarterly Dividend Paid	$0.1375 per share	Annualized dividend of $0.55

Digital marketing and public relations campaigns.

The firm employs a comprehensive marketing strategy that explicitly includes public relations and digital marketing efforts. These activities are aimed at direct outreach to both financial advisors and retail investors, supporting organic growth. Management commentary following the fiscal 2025 results specifically pointed to effective distribution and marketing strategies as a driver for the increase in total assets under management, which was nearly 50% higher at one point during the year compared to the prior year-end, though the final year-end figure showed a decrease.

• The strategy supports organic growth alongside strategic acquisitions.
• Public relations include frequent media contributions from the Chairman and CEO.
• Digital marketing targets both advisor and retail segments.

NASDAQ Capital Market listing (HNNA) for corporate visibility.

The listing of Hennessy Advisors, Inc. common stock under the ticker HNNA on the NASDAQ-GM serves as a channel for corporate visibility and access to capital, which has historically supported the firm's acquisition-based growth model. As of early December 2025, the stock traded near $10.33 per share, with a reported market capitalization of approximately $80.45 million. The 52-week trading range for HNNA was between a low of $8.43 and a high of $13.88. Institutional investors held positions across 53 different entities filing with the SEC, indicating a level of market engagement.

The stock performance metrics as of late 2025 include:

• Market Cap: Approximately $80.45 million.
• P/E Ratio: 8.26.
• Annualized Dividend Yield: 5.32%.
• Debt-to-Equity Ratio: 0.41.

Finance: draft the Q1 2026 AUM projection based on the Q4 2025 run-rate by next Tuesday.

Hennessy Advisors, Inc. (HNNA) - Canvas Business Model: Customer Segments

You're looking at the core groups Hennessy Advisors, Inc. serves to generate its advisory and shareholder service fees. The focus is definitely on getting product access through professional intermediaries, but the underlying assets come from distinct investor types.

Financial Advisors and Wealth Managers (primary distribution focus)

This group is the main conduit for assets into the Hennessy Funds. Hennessy Advisors maintains a substantial outreach effort directed here. The company operates a database of over 100,000 financial advisors. This segment is critical because they control the flow of assets, especially for the higher-tier share classes.

Retail Investors (holding Investor Class shares)

These are the individual investors accessing the Hennessy Mutual Funds, typically through the Investor Class shares. Assets in these shares incur a shareholder service fee, which is a direct revenue source. For the fiscal year ended September 30, 2025, shareholder service fees totaled $2.4 million. The average daily net assets (ADNA) for all Hennessy Funds in FY2025 was $4.5 billion.

Institutional Investors (holding Institutional Class shares)

This segment uses the Institutional Class shares, which are structured to be more cost-effective as they are not subject to the shareholder service fee that Investor Class shares carry. While the exact AUM split isn't explicitly provided, the focus on Institutional Class shares suggests a significant portion of the $4.2 billion total assets under management at the end of fiscal year 2025 is held here, especially by larger entities. As a point of reference, institutional investors and hedge funds owned about 10.31% of Hennessy Advisors, Inc. stock as of late 2025.

High-Net-Worth Individuals seeking separate account strategies

Hennessy Advisors, Inc. also serves this group directly through customized solutions. The firm delivers tailored portfolios to institutions and High-Net-Worth Individuals via its separate account platform. These strategies focus on generating income and total return using equity and fixed-income approaches.

Here's a quick look at the scale of the business supporting these segments as of the fiscal year end September 30, 2025:

Metric	Amount (FY2025)
Total Assets Under Management (AUM)	$4.2 billion
Average Daily Net Assets (ADNA)	$4.5 billion
Total Revenue	$35.5 million
Shareholder Service Fees (Retail Impact)	$2.4 million
Number of Funds Managed	17

The investment advisory fees are calculated based on the ADNA, ranging annually between 0.40% and 1.25%. For example, the Hennessy Cornerstone Mid Cap 30 Fund, which had $1.5 billion in ADNA for FY2025, carried an advisory rate of 0.74%.

The company's distribution strategy involves actively working with advisors who hold significant assets, specifically those with two or more Hennessy Funds or positions over $500,000.

Finance: draft 13-week cash view by Friday.

Hennessy Advisors, Inc. (HNNA) - Canvas Business Model: Cost Structure

You're looking at the expenses that drive the operations for Hennessy Advisors, Inc. (HNNA) as of late 2025. For the fiscal year 2025, the Total Operating Expenses reached $22.4 million, which was a 7.8% increase from the prior year. This increase was primarily driven by two key areas we need to dissect.

The single largest cost component is personnel. The Compensation and Benefits expense for fiscal year 2025 was $10.6 million. This represented a 17.2% jump from fiscal year 2024, largely due to an increase in incentive-based compensation during 2025. As a percentage of total revenue, this cost settled at 29.9%.

Here's a breakdown of the major expense categories for fiscal year 2025, showing how the dollars flow out:

Expense Category	Fiscal Year 2025 Amount (USD)	Year-over-Year Change	Share of Total Operating Expenses (Approximate)
Compensation and Benefits Expense	$10.6 million	Increased 17.2%	47.3%
Sub-Advisory Fees Expense	$4.1 million	Decreased 0.5%	18.3%
Fund Distribution and Other Expenses	$1.0 million	Increased 25.9%	4.5%
Depreciation Expense	$0.3 million	Increased 18.9%	1.3%

When you look at expenses tied to the funds themselves, you see costs directly related to distribution and external management. Fund distribution and other expenses paid to financial institutions totaled $1.0 million for fiscal year 2025, up 25.9% from the prior year. This rise is directly linked to the increased average daily net assets of the Hennessy Mutual Funds during the year.

For the externally managed portions, Sub-advisory fees paid for externally managed funds amounted to $4.1 million in fiscal year 2025. This figure actually saw a slight decrease of 0.5% year-over-year, reflecting a decrease in average daily net assets for those specific sub-advised funds. To give you a concrete example of the fee structure, the advisory fee rate paid to the sub-advisor for the Hennessy Focus Fund is an annual rate of 0.29% of average daily net assets.

Beyond direct fund costs, you have the overhead supporting the entire operation. This includes regulatory compliance and administrative costs, which fall under the broader General and Administrative Expense line. For fiscal year 2025, General and Administrative Expense decreased by 2.8% compared to fiscal year 2024. This category covers necessary oversight, administrative functions, and ensuring adherence to the rules of the road. You also see Depreciation Expense, which was $0.3 million, up 18.9% due to new fixed asset purchases.

The cost structure is heavily weighted toward personnel, which is typical for an advisory firm, but the variable costs tied to assets under management (AUM) are also significant:

• Compensation and Benefits: $10.6 million.
• Sub-Advisory Fees: $4.1 million.
• Fund Distribution/Other Expenses: $1.0 million.
• These three categories alone account for approximately 71.6% of the $22.4 million in Total Operating Expenses.

Finance: draft 13-week cash view by Friday.

Hennessy Advisors, Inc. (HNNA) - Canvas Business Model: Revenue Streams

You're looking at the core engine of Hennessy Advisors, Inc. (HNNA), which is how they bring in the money to run the whole operation. For an asset manager, this is all about the fees charged on the assets they manage. It's a direct link between market performance, asset gathering, and the top line.

For the fiscal year ending September 30, 2025, Hennessy Advisors, Inc. reported a Total Revenue of $35.5 million. This represents a solid increase, showing that even with market dynamics, their fee structure is working effectively, especially given the reported average assets under management for the year.

The revenue mix is heavily weighted toward the primary service they offer. Here's the quick math on how that $35.5 million broke down:

• Investment Advisory Fees: $33.174 million.
• Shareholder Service Fees: $2.364 million.

Honestly, that means Investment Advisory Fees made up about 93.3% of the total revenue for fiscal year 2025. That concentration tells you where the real value capture is happening-managing the portfolios.

The fees themselves are asset-based, which is standard for this industry. What this estimate hides is the underlying asset base that generates these fees. For fiscal year 2025, the average assets under management, which is what these fees are calculated against, stood at $4.5 billion. That's the denominator in the fee calculation.

The specific fee rates Hennessy Advisors, Inc. collects from each Hennessy Fund vary, but they fall within a defined band. This variation is key to understanding the profitability of different product lines.

Here is a breakdown of the fee structure that drives those primary revenue streams:

Revenue Component	Fee Basis	Rate Range (Annual)	FY 2025 Contribution
Investment Advisory Fees	Average Daily Net Assets	0.40% to 1.25%	$33.174 million
Shareholder Service Fees	Average Daily Net Assets (Investor Class shares only)	Consistent Percentage (Not specified in range)	$2.364 million

You see that Shareholder Service Fees are specifically charged only on Investor Class shares. This is a common structure to cover administrative and distribution-related services for that share class, which is why it's a smaller, distinct piece of the revenue pie compared to the core advisory fees.

To be fair, the Investment Advisory Fee rate isn't one number; it's a spectrum. For example, one of their major funds, the Hennessy Cornerstone Mid Cap 30 Fund, had an annual rate of 0.74% of its average daily net assets for the year. Still, the overall range you need to track is that 0.40% to 1.25% bracket.

The relationship is direct: if average assets under management go up, revenue goes up, assuming fee rates stay put. Finance: draft a sensitivity analysis showing revenue impact for a 5% swing in ADNA for FY2026 by Friday.