Houlihan Lokey Reports First Quarter Fiscal 2026 Financial Results

– First Quarter Fiscal 2026 Revenues of $605 million –

– First Quarter Fiscal 2026 Diluted EPS of $1.42 –

– Adjusted First Quarter Fiscal 2026 Diluted EPS of $2.14 –

– Announces Dividend of $0.60 per Share for Second Quarter Fiscal 2026 –

Houlihan Lokey, Inc. (NYSE:HLI) (“Houlihan Lokey” or the “Company”) today reported financial results for its first quarter ended June 30, 2025.

For the first quarter ended June 30, 2025, revenues were $605 million, compared with $514 million for the first quarter ended June 30, 2024. Net income was $98 million, or $1.42 per diluted share, for the first quarter ended June 30, 2025, compared with $89 million, or $1.30 per diluted share, for the first quarter ended June 30, 2024. Adjusted net income for the first quarter ended June 30, 2025 was $148 million, or $2.14 per diluted share, compared with $84 million, or $1.22 per diluted share, for the first quarter ended June 30, 2024.

“We began fiscal 2026 with momentum across our business, despite an uncertain environment, and concluded the first quarter with solid performance by all three of our business lines. We continue to see the benefits of our diversified business model, particularly across industry and geography. While forecasts remain difficult in the current environment, we are cautiously optimistic that we can continue to build on this momentum in fiscal 2026,” stated Scott Adelson, Chief Executive Officer of Houlihan Lokey.


Selected Financial Data

*(In thousands, except per share data)*	U.S. GAAP
	Three Months Ended June 30,
		2025			2024
Revenues by segment
Corporate Finance	$	398,519		$	328,417
Financial Restructuring		128,216			117,422
Financial and Valuation Advisory		78,614			67,770
Revenues	$	605,349		$	513,609
Operating expenses:
Employee compensation and benefits	$	392,837		$	330,116
Non-compensation expenses		122,712			88,753
Operating income		89,800			94,740
Other income, net		(8,250	)		(5,134	)
Income before provision for income taxes		98,050			99,874
Provision for income taxes		517			10,934
Net income	$	97,533		$	88,940

Diluted earnings per share attributable to Houlihan Lokey, Inc.	$	1.42		$	1.30

Revenues

For the first quarter ended June 30, 2025, revenues were $605 million, compared with $514 million for the first quarter ended June 30, 2024. For the first quarter ended June 30, 2025, Corporate Finance (“CF”) revenues increased 21%, Financial Restructuring (“FR”) revenues increased 9%, and Financial and Valuation Advisory (“FVA”) revenues increased 16% when compared with the first quarter ended June 30, 2024.

Expenses

The Company’s employee compensation and benefits expenses, non-compensation expenses, and provision for income taxes during the periods presented and described below are on a GAAP and an adjusted basis.

	U.S. GAAP						Adjusted (Non-GAAP) *
	Three Months Ended June 30,
*($ in thousands)*		2025			2024			2025			2024
Expenses:
Employee compensation and benefits	$	392,837		$	330,116		$	372,289		$	315,869
% of Revenues		64.9	%		64.3	%		61.5	%		61.5	%
Non-compensation	$	122,712		$	88,753		$	94,469		$	80,330
% of Revenues		20.3	%		17.3	%		15.6	%		15.6	%
Per full-time employee ⁽¹⁾	$	46		$	34		$	35		$	31
Provision/(benefit) for income taxes	$	517		$	10,934		$	(1,164	)	$	38,239
% of Pre-tax income		0.5	%		10.9	%		(0.8	)%		31.2	%

*		Adjusted figures represent non-GAAP information. See “Non-GAAP Financial Measures” and the tables at the end of this release for an explanation of the adjustments and reconciliations to the comparable GAAP numbers.
(1)		Calculated using the average of the number of full-time employees at the beginning of the reporting period and the end of the reporting period.

Employee compensation and benefits expenses were $393 million for the first quarter ended June 30, 2025, compared with $330 million for the first quarter ended June 30, 2024. Adjusted employee compensation and benefits expenses were $372 million for the first quarter ended June 30, 2025, compared with $316 million for the first quarter ended June 30, 2024. This resulted in an adjusted compensation ratio of 61.5% for both the first quarter ended June 30, 2025 and June 30, 2024. The increase in GAAP and adjusted employee compensation and benefits expenses was primarily a result of an increase in revenues for the quarter when compared with the same quarter last year.

Non-compensation expenses were $123 million for the first quarter ended June 30, 2025, compared with $89 million for the first quarter ended June 30, 2024. The increase in GAAP non-compensation expenses was primarily a result of increases in revaluation of acquisition contingent consideration, depreciation and amortization, and other operating expenses. Adjusted non-compensation expenses were $94 million for the first quarter ended June 30, 2025, compared with $80 million for the first quarter ended June 30, 2024. The increase in adjusted non-compensation expenses was primarily a result of increases in other operating expenses and professional fees for the quarter when compared with the same quarter last year.

The provision for income taxes was $1 million, representing an effective tax rate of 0.5% for the first quarter ended June 30, 2025, compared with $11 million, representing an effective tax rate of 10.9%, for the first quarter ended June 30, 2024. The decrease in the Company’s GAAP effective tax rate was primarily a result of increased stock-based compensation deductions. The adjusted (benefit)/provision for income taxes was ($1) million, representing an adjusted effective tax rate of (0.8)% for the first quarter ended June 30, 2025, compared with $38 million, representing an adjusted effective tax rate of 31.2% for the first quarter ended June 30, 2024. The decrease in the Company’s adjusted effective tax rate was primarily a result of a policy change that we are no longer adjusting out the impact of stock-based compensation deductions. Had we not made the adjustment for stock-based compensation deductions to the first quarter ended June 30, 2024, our adjusted effective tax rate for the quarter would have been 9.3%.

Segment Reporting for the First Quarter

Corporate Finance

CF revenues were $399 million for the first quarter ended June 30, 2025, compared with $328 million for the first quarter ended June 30, 2024, representing an increase of 21%. Revenues increased primarily due to an increase in the average transaction fee on closed transactions. The increase in the average transaction fee on closed transactions was driven by transaction mix, and does not represent a trend in the average transaction fee on closed transactions.

	Three Months Ended June 30,
*($ in thousands)*	2025		2024
Corporate Finance
Revenues	$	398,519	$	328,417
# of Managing Directors		244		228
# of Closed transactions ⁽¹⁾		125		116

Financial Restructuring

FR revenues increased 9% to $128 million for the first quarter ended June 30, 2025, compared with $117 million for the first quarter ended June 30, 2024. Revenues increased primarily due to an increase in the number of closed transactions during the quarter, which was driven by favorable market conditions for restructuring transactions.

	Three Months Ended June 30,
*($ in thousands)*	2025		2024
Financial Restructuring
Revenues	$	128,216	$	117,422
# of Managing Directors		58		58
# of Closed transactions ⁽¹⁾		35		33

Financial and Valuation Advisory

FVA revenues increased 16% to $79 million for the first quarter ended June 30, 2025, compared with $68 million for the first quarter ended June 30, 2024. Revenues increased primarily due to an increase in the number of Fee Events. The increase in the number of Fee Events was driven by increasing our client base and expanding our scope of work for existing clients in one or more of the service lines within our FVA business.

	Three Months Ended June 30,
*($ in thousands)*	2025		2024
Financial and Valuation Advisory
Revenues	$	78,614	$	67,770
# of Managing Directors		45		42
# of Fee Events ⁽¹⁾		957		847

(1)

A Fee Event includes any engagement that involves revenue activity during the measurement period based on a revenue minimum of one thousand dollars. References in this press release to closed transactions should be understood to be the same as transactions that are “effectively closed” as described in our periodic reports on Forms 10-K and 10-Q.

Balance Sheet and Capital Allocation

The Board of Directors of the Company declared a regular quarterly cash dividend of $0.60 per share of Class A and Class B common stock. The dividend will be payable on September 15, 2025 to stockholders of record as of the close of business on September 2, 2025.

As of June 30, 2025, the Company had $867 million of cash and cash equivalents and investment securities, and $93 million of other liabilities.

Investor Conference Call and Webcast

The Company will host a conference call and live webcast at 5:00 p.m. Eastern Time on Tuesday, July 29, 2025, to discuss its first quarter fiscal 2026 results. The number to call is 1-844-825-9789 (domestic) or 1-412-317-5180 (international) and entering the conference ID 10201108. A live webcast will be available in the Investor Relations section of the Company’s website. A replay of the conference call will be available from July 29, 2025 through August 5, 2025, by dialing 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and entering the passcode 10201108. A replay of the webcast will be archived and available on the Company’s website.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. You can identify these statements by our use of the words “assumes,” “believes,” “estimates,” “expects,” “guidance,” “intends,” “plans,” “projects,” and similar expressions that do not relate to historical matters. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties, and other factors which are, in some cases, beyond the Company’s control and could materially affect actual results, performance, or achievements. For a further description of such factors, you should read the Company’s filings with the Securities and Exchange Commission. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. The Company does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Non-GAAP Financial Measures

Adjusted net income, total and on a per share basis, and certain adjusted items used to determine adjusted net income, are presented and discussed in this earnings press release and are non-GAAP measures that management believes, when presented together with comparable GAAP measures, are useful to investors in understanding the Company’s operating results. The adjusted items included in this earnings press release as calculated by the Company are not necessarily comparable to similarly titled measures reported by other companies. Additionally, these adjusted amounts are not a measurement of financial performance or liquidity under GAAP and should not be considered as an alternative to the Company’s financial information determined under GAAP. For a description of the Company’s use of these adjusted items and a reconciliation with comparable GAAP items, see the section of this press release titled “Reconciliation of GAAP to Adjusted Financial Information.” Please refer to our financial statements, prepared in accordance with GAAP, for purposes of evaluating our financial condition, results of operations, and cash flows.

About Houlihan Lokey

Houlihan Lokey, Inc. (NYSE:HLI) is a global investment bank with expertise in mergers and acquisitions, capital solutions, financial restructuring, and financial and valuation advisory. Houlihan Lokey serves corporations, institutions, and governments worldwide with offices in the Americas, Europe, the Middle East, and the Asia Pacific region. Independent advice and intellectual rigor are hallmarks of the firm’s commitment to client success across its advisory services. The firm is the No. 1 investment bank for all global M&A transactions for the past two years, the No. 1 M&A advisor for the past 10 years in the U.S., the No. 1 global restructuring advisor for the past 11 years, and the No. 1 global M&A fairness opinion advisor over the past 25 years, all based on number of transactions and according to data provided by LSEG.

For more information, please visit www.HL.com.

Appendix

Condensed Consolidated Balance Sheets (Unaudited)

Condensed Consolidated Statements of Income (Unaudited)

Reconciliation of GAAP to Adjusted Financial Information (Unaudited)


HOULIHAN LOKEY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

*(In thousands, except share data and par value)*	June 30, 2025			March 31, 2025
Assets
Cash and cash equivalents	$	793,823		$	971,007
Restricted cash		4,573			4,572
Investment securities		72,878			195,624
Accounts receivable, net of allowance for credit losses		218,177			257,326
Unbilled work in process, net of allowance for credit losses		180,818			157,760
Income taxes receivable		2,458			—
Deferred income taxes		96,289			92,776
Property and equipment, net		150,619			149,350
Operating lease right-of-use assets		364,207			362,669
Goodwill		1,295,128			1,284,589
Other intangible assets, net		203,624			212,670
Other assets		135,209			131,365
Total assets	$	3,517,803		$	3,819,708

Liabilities and stockholders' equity
Liabilities:
Accrued salaries and bonuses	$	640,460		$	936,619
Accounts payable and accrued expenses		105,597			137,228
Deferred income		51,496			48,215
Income taxes payable		—			6,396
Deferred income taxes		8,997			8,784
Operating lease liabilities		440,380			438,185
Other liabilities		93,057			69,404
Total liabilities		1,339,987			1,644,831

Stockholders' equity:
Class A common stock, $0.001 par value. Authorized 1,000,000,000 shares; issued and outstanding 54,330,177 and 53,822,189 shares, respectively		54			54
Class B common stock, $0.001 par value. Authorized 1,000,000,000 shares; issued and outstanding 16,004,974 and 16,021,106 shares, respectively		16			16
Additional paid-in capital		743,715			843,350
Retained earnings		1,448,993			1,394,738
Accumulated other comprehensive loss		(14,962	)		(63,281	)
Total stockholders’ equity		2,177,816			2,174,877
Total liabilities and stockholders’ equity	$	3,517,803		$	3,819,708


HOULIHAN LOKEY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

	Three Months Ended June 30,
*(In thousands, except share and per share data)*		2025			2024
Revenues	$	605,349		$	513,609
Operating expenses:
Employee compensation and benefits		372,289			315,869
Acquisition related compensation and benefits		20,548			14,247
Travel, meals, and entertainment		19,987			18,512
Rent		18,229			19,284
Depreciation and amortization		15,990			8,856
Information technology and communications		17,812			16,189
Professional fees		11,672			8,477
Other operating expenses		21,127			16,607
Revaluation of acquisition contingent consideration		17,895			828
Total operating expenses		515,549			418,869
Operating income		89,800			94,740
Other income, net		(8,250	)		(5,134	)
Income before provision for income taxes		98,050			99,874
Provision for income taxes		517			10,934
Net income	$	97,533		$	88,940

Weighted average shares of common stock outstanding:
Basic		66,244,178			65,031,216
Fully diluted		68,887,970			68,501,059
Earnings per share attributable to Houlihan Lokey, Inc.
Basic	$	1.47		$	1.37
Fully diluted	$	1.42		$	1.30


HOULIHAN LOKEY, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO ADJUSTED FINANCIAL INFORMATION (UNAUDITED)

	Three Months Ended June 30,
*(In thousands, except share and per share data)*		2025			2024
*Revenues*	$	605,349		$	513,609

*Employee compensation and benefits expenses*
Employee compensation and benefits expenses (GAAP)	$	392,837		$	330,116
Less: Acquisition related compensation and benefits		(20,548	)		(14,247	)
Employee compensation and benefits expenses (adjusted)		372,289			315,869

*Non-compensation expenses*
Non-compensation expenses (GAAP)	$	122,712		$	88,753
Less: Acquisition related legal structure reorganization		(874	)		(500	)
Less: Integration and acquisition related costs		—			(3,554	)
Less: Acquisition amortization		(9,474	)		(3,541	)
Less: Revaluation of acquisition contingent consideration		(17,895	)		(828	)
Non-compensation expenses (adjusted)		94,469			80,330

*Operating income*
Operating income (GAAP)	$	89,800		$	94,740
Plus: Adjustments ⁽¹⁾		48,791			22,670
Operating income (adjusted)		138,591			117,410

*Other income, net*
Other income, net (GAAP)	$	(8,250	)	$	(5,134	)
Other income, net (adjusted)		(8,250	)		(5,134	)

*Provision for income taxes*
Provision for income taxes (GAAP)	$	517		$	10,934
Plus: Impact of the excess tax benefit for stock vesting		—			21,921
Less: Non-deductible acquisition related costs		(1,294	)		—
Less: Reversal of deferred tax asset		—			(1,690	)
Adjusted (benefit)/provision for income taxes		(777	)		31,165
(Less)/plus: Resulting tax impact ⁽²⁾		(387	)		7,074
(Benefit)/provision for income taxes (adjusted)		(1,164	)		38,239

*Net income*
Net income (GAAP)	$	97,533		$	88,940
Plus/(less): Adjustments⁽³⁾		50,472			(4,635	)
Net income (adjusted)	$	148,005		$	84,305

*Fully diluted shares outstanding*
Fully diluted shares outstanding (GAAP)		68,887,970			68,501,059
Plus: Impact of unvested GCA retention and deferred share awards		415,582			622,396
Fully diluted shares outstanding (adjusted)		69,303,552			69,123,455

Diluted EPS attributable to Houlihan Lokey, Inc. (GAAP)	$	1.42		$	1.30
Diluted EPS attributable to Houlihan Lokey, Inc. (adjusted)	$	2.14		$	1.22

(1)		The aggregate of adjustments from employee compensation and benefits and non-compensation expenses.
(2)		Reflects the tax impact of utilizing the adjusted effective tax rate on the non-tax adjustments identified above.
(3)		Consists of all adjustments identified above net of the associated tax impact.

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