Houlihan Lokey Inc (HLI)

Houlihan Lokey Reports Fiscal Year and Fourth Quarter 2026 Financial ResultsMay 6, 2026 4:40 PM
Business Wire – Record Fiscal Year 2026 Revenues of $2.62 billion –
– Fiscal Year 2026 Diluted EPS of $6.22 –
– Adjusted Fiscal Year 2026 Diluted EPS of $7.56 – – Fourth Quarter Fiscal 2026 Revenues of $636 million –
– Fourth Quarter Fiscal 2026 Diluted EPS of $1.47 –
– Adjusted Fourth Quarter Fiscal 2026 Diluted EPS of $1.63 – – Announces a 16.7% increase in the Quarterly Dividend to $0.70 per Share – Houlihan Lokey, Inc. (NYSE:HLI) (“Houlihan Lokey” or the “Company”) today reported financial results for its fiscal year and fourth quarter ended March 31, 2026. For the fiscal year, revenues were $2.62 billion, compared with $2.39 billion for the fiscal year ended March 31, 2025. For the fourth quarter ended March 31, 2026, revenues were $636 million, compared with $666 million for the fourth quarter ended March 31, 2025. Net income attributable to Houlihan Lokey, Inc. was $426 million, or $6.22 per diluted share, for the fiscal year ended March 31, 2026, compared with $400 million, or $5.82 per diluted share, for the fiscal year ended March 31, 2025. Adjusted net income attributable to Houlihan Lokey, Inc. was $518 million, or $7.56 per diluted share, for the fiscal year ended March 31, 2026, compared with $434 million, or $6.29 per diluted share, for the fiscal year ended March 31, 2025. Net income attributable to Houlihan Lokey, Inc. was $100 million, or $1.47 per diluted share, for the fourth quarter ended March 31, 2026, compared with $122 million, or $1.76 per diluted share, for the fourth quarter ended March 31, 2025. Adjusted net income attributable to Houlihan Lokey, Inc. was $111 million, or $1.63 per diluted share, for the fourth quarter ended March 31, 2026, compared with $136 million, or $1.96 per diluted share, for the fourth quarter ended March 31, 2025. “Despite a challenging external environment, fiscal 2026 was another record year for our firm, demonstrating the resilience and diversification of our business model. Although there is some uncertainty in the market as we enter fiscal 2027, we remain optimistic about the prospects across all three of our business lines,” stated Scott Adelson, Chief Executive Officer of Houlihan Lokey. Selected Financial Data (In thousands, except per share data) U.S. GAAP Three Months Ended March 31,   Year Ended March 31,   2026       2025       2026       2025   Revenues by segment               Corporate Finance $ 433,766     $ 412,709     $ 1,744,634     $ 1,526,756   Financial Restructuring   110,383       164,546       528,655       544,478   Financial and Valuation Advisory   91,494       89,167       344,227       318,182   Revenues   635,643       666,422       2,617,516       2,389,416   Operating expenses:               Compensation   408,781       430,544       1,683,391       1,524,268   Non-compensation   101,714       94,822       407,106       362,581   Operating income   125,148       141,056       527,019       502,567   Other (income) expense, net   (9,366 )     (9,199 )     (35,246 )     (28,768 ) Income before provision for income taxes   134,514       150,255       562,265       531,335   Provision for income taxes   36,202       28,335       138,091       131,624   Net income   98,312       121,920       424,174       399,711   Net (income) loss attributable to noncontrolling interest   1,523       —       1,523       —   Net income attributable to Houlihan Lokey, Inc. $ 99,835     $ 121,920     $ 425,697     $ 399,711                   Diluted earnings per share attributable to Houlihan Lokey, Inc. $ 1.47     $ 1.76     $ 6.22     $ 5.82   Revenues For the fiscal year ended March 31, 2026, revenues were $2.62 billion, compared with $2.39 billion for the fiscal year ended March 31, 2025. For the fiscal year ended March 31, 2026, Corporate Finance (“CF”) revenues increased 14%, Financial Restructuring (“FR”) revenues decreased (3)%, and Financial and Valuation Advisory (“FVA”) revenues increased 8% when compared with the fiscal year ended March 31, 2025. For the fourth quarter ended March 31, 2026, revenues were $636 million, compared with $666 million for the fourth quarter ended March 31, 2025. For the fourth quarter ended March 31, 2026, CF revenues increased 5%, FR revenues decreased (33)%, and FVA revenues increased 3% when compared with the fourth quarter ended March 31, 2025. Expenses The Company’s compensation expenses, non-compensation expenses, and provision for income taxes during the periods presented and described below are on a GAAP and an adjusted basis.   U.S. GAAP   Adjusted (Non-GAAP) *   Year Ended March 31, ($ in thousands)   2026       2025       2026       2025   Expenses:               Compensation $ 1,683,391     $ 1,524,268     $ 1,609,770     $ 1,469,491   % of Revenues   64.3 %     63.8 %     61.5 %     61.5 % Non-compensation $ 407,106     $ 362,581     $ 364,671     $ 329,476   % of Revenues   15.6 %     15.2 %     13.9 %     13.8 % Provision for income taxes $ 138,091     $ 131,624     $ 161,069     $ 184,782   % of Pre-tax income   24.6 %     24.8 %     23.7 %     29.8 %   U.S. GAAP   Adjusted (Non-GAAP) *   Three Months Ended March 31, ($ in thousands)   2026       2025       2026       2025   Expenses:               Compensation $ 408,781     $ 430,544     $ 390,918     $ 409,850   % of Revenues   64.3 %     64.6 %     61.5 %     61.5 % Non-compensation $ 101,714     $ 94,822     $ 94,184     $ 85,265   % of Revenues   16.0 %     14.2 %     14.8 %     12.8 % Provision for income taxes $ 36,202     $ 28,335     $ 50,249     $ 44,199   % of Pre-tax income   26.9 %     18.9 %     31.4 %     24.5 % *   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. Year Ended March 31, 2026 Compared to the Year Ended March 31, 2025 Compensation expenses were $1.68 billion for the fiscal year ended March 31, 2026, compared with $1.52 billion for the fiscal year ended March 31, 2025. This resulted in a compensation ratio of 64.3% for the fiscal year ended March 31, 2026, compared with 63.8% for the fiscal year ended March 31, 2025. Adjusted compensation expenses were $1.61 billion for the fiscal year ended March 31, 2026, compared with $1.47 billion for the fiscal year ended March 31, 2025. This resulted in an adjusted compensation ratio of 61.5% for both the fiscal year ended March 31, 2026 and March 31, 2025. The increase in GAAP and adjusted compensation expenses was a result of an increase in revenues for the year when compared with the prior year. Non-compensation expenses were $407 million for the fiscal year ended March 31, 2026, compared with $363 million for the fiscal year ended March 31, 2025. The increase in non-compensation expenses was primarily a result of an increase in revaluation of acquisition contingent consideration, travel, meals, and entertainment, and information technology and communications expense. Adjusted non-compensation expenses were $365 million for the fiscal year ended March 31, 2026, compared with $329 million for the fiscal year ended March 31, 2025. The increase in adjusted non-compensation expenses was primarily a result of an increase in professional fees, travel, meals, and entertainment, information technology and communications, and depreciation and amortization when compared with the prior year. The effective tax rate was 24.6% for the fiscal year ended March 31, 2026, compared with 24.8% for the fiscal year ended March 31, 2025. The adjusted effective tax rate was 23.7% for the fiscal year ended March 31, 2026, compared with 29.8% for the fiscal year ended March 31, 2025. 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. Quarter Ended March 31, 2026 Compared to the Quarter Ended March 31, 2025 Compensation expenses were $409 million for the fourth quarter ended March 31, 2026, compared with $431 million for the fourth quarter ended March 31, 2025. This resulted in a compensation ratio of 64.3% for the fourth quarter ended March 31, 2026, compared with 64.6% for the fourth quarter ended March 31, 2025. Adjusted compensation expenses were $391 million for the fourth quarter ended March 31, 2026, compared with $410 million for the fourth quarter ended March 31, 2025. This resulted in an adjusted compensation ratio of 61.5% for both the fourth quarter ended March 31, 2026 and March 31, 2025. The decrease in GAAP and adjusted compensation expenses was a result of a decrease in revenues when compared with the same quarter last year. Non-compensation expenses were $102 million for the fourth quarter ended March 31, 2026, compared with $95 million for the fourth quarter ended March 31, 2025. The increase in non-compensation expenses was primarily a result of an increase in travel, meals, and entertainment, rent, information technology and communications, and other operating expenses, partially offset by a decrease in depreciation and amortization. Adjusted non-compensation expenses were $94 million for the quarter ended March 31, 2026, compared with $85 million for the fourth quarter ended March 31, 2025. The increase in adjusted non-compensation expenses was primarily a result of an increase in travel, meals, and entertainment and information technology and communication expenses when compared with the same quarter last year. The effective tax rate was 26.9% for the fourth quarter ended March 31, 2026, compared with 18.9% for the fourth quarter ended March 31, 2025. The increase in the Company’s effective tax rate for the fourth quarter ended March 31, 2026, relative to the same period in 2025, was primarily a result of increased state taxes and the release of a provision for an uncertain tax position during the fourth quarter ended March 31, 2025. The adjusted effective tax rate was 31.4% for the fourth quarter ended March 31, 2026, compared with 24.5% for the fourth quarter ended March 31, 2025. The increase in the Company’s adjusted effective tax rate during the fourth quarter ended March 31, 2026, relative to the same period in 2025, was primarily due to a larger quarterly true-up based on our annual adjusted effective tax rate. Segment Reporting for the Fourth Fiscal Quarter Corporate Finance CF revenues were $434 million for the fourth quarter ended March 31, 2026, compared with $413 million for the fourth quarter ended March 31, 2025. Revenues increased primarily due to an increase in the number of closed transactions during the quarter, which was driven by favorable market conditions, partially offset by a decrease in the average transaction fee on closed transactions, which was driven by transaction mix and does not represent a short-term trend in the average fee on closed transactions.   Three Months Ended March 31,   Year Ended March 31, ($ in thousands)   2026     2025     2026     2025 Corporate Finance               Revenues $ 433,766   $ 412,709   $ 1,744,634   $ 1,526,756 # of Managing Directors (1)   251     240     251     240 # of Closed transactions (2)   171     147     644     564 Financial Restructuring FR revenues were $110 million for the fourth quarter ended March 31, 2026, compared with $165 million for the fourth quarter ended March 31, 2025. Revenues decreased primarily due to a decrease in the average transaction fee on closed transactions and a decrease in the number of closed transactions. The lower average transaction fee on closed transactions resulted from transaction mix and does not represent a trend, while the reduction in transaction volume was driven by timing of transaction closings and does not represent a trend.   Three Months Ended March 31,   Year Ended March 31, ($ in thousands)   2026     2025     2026     2025 Financial Restructuring               Revenues $ 110,383   $ 164,546   $ 528,655   $ 544,478 # of Managing Directors (1)   59     57     59     57 # of Closed transactions (2)   30     38     143     145 Financial and Valuation Advisory FVA revenues were $91 million for the quarter ended March 31, 2026, compared with $89 million for the fourth quarter ended March 31, 2025. Revenues increased due to an increase in the number of Fee Events, driven by improvements in the M&A markets.   Three Months Ended March 31,   Year Ended March 31, ($ in thousands)   2026     2025     2026     2025 Financial and Valuation Advisory               Revenues $ 91,494   $ 89,167   $ 344,227   $ 318,182 # of Managing Directors (1)   44     42     44     42 # of Fee Events (1)   1,248     1,224     2,519     2,441 (1)   As of the end of the respective reporting period. (2)   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 annual report on Form 10-K. Other Announcements The Board of Directors of the Company declared a regular quarterly cash dividend of $0.70 per share of Class A and Class B common stock. The dividend will be payable on June 15, 2026 to stockholders of record as of the close of business on June 1, 2026. Also in our fourth fiscal quarter, we repurchased 301 thousand shares as part of our share repurchase program. As of March 31, 2026, the Company had $1.36 billion of unrestricted cash and cash equivalents and investment securities. Investor Conference Call and Webcast The Company will host a conference call and live webcast at 5:00 p.m. Eastern Time on Wednesday, May 6, 2026, to discuss its full year and fourth quarter fiscal 2026 results. The number to call is 1-844-825-9789 (domestic) or 1-412-317-5180 (international). 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 May 6, 2026 through May 13, 2026, by dialing 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and entering the passcode 10207810. 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 As a supplement to our financial measures presented in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company presents certain adjusted (non-GAAP) measures of financial performance. These non-GAAP financial measures are not intended to be considered in isolation from, as a substitute for, or as more important than, the financial information prepared and presented in accordance with GAAP. In addition, these non-GAAP measures have limitations in that they do not reflect all of the items associated with the Company’s results of operations as determined in accordance with GAAP. 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 financial and operating performance. The non-GAAP financial measures exclude the following items, as applicable in any given reporting period: certain acquisition related costs, including (1) acquisition related deferred retention payments, which may be settled in cash or common stock of the Company; (2) amortization of intangible assets recognized in purchase accounting; (3) fair value remeasurements of acquisition-related contingent consideration; and (4) other integration and acquisition related costs, including asset write offs or impairments; legal and other professional fees associated with the simplification of our legal entity structure that has resulted from acquisitions; the income tax adjustments associated with the non-tax adjustments above, utilizing the adjusted effective tax rate; and significant discrete tax related items, including (1) acquisition-related costs which are non-deductible for income tax purposes; (2) prior to fiscal year 2026, stock-based compensation tax deductions recognized upon vesting of stock-based awards, where the fair value at vesting exceeded the grant date fair value; and (3) other unusual or unique tax-related items and activities, including the reversal of deferred income taxes related to non-deductible expenses resulting from the senior management transition in fiscal 2025. In the future, the Company may also consider whether other items should also be excluded in calculating the non-GAAP financial measures used by the Company. These non-GAAP measures facilitate comparison of operating performance between periods and help investors to understand our underlying operating results by excluding certain items that may not be indicative of the Company’s core business, operating results, or future outlook. We consider quantitative and qualitative factors in assessing whether to adjust for the impact of items that could affect an understanding of our ongoing financial and business performance or trends. Internally, management uses these non-GAAP financial measures, along with GAAP financial measures, in assessing 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 additional descriptions 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.” We encourage investors to review our GAAP financial statements and other regulatory filings for a comprehensive understanding of our financial condition, results of operations, and cash flows. About Houlihan Lokey Houlihan Lokey, Inc. (NYSE:HLI) is a leading global investment bank recognized for delivering independent strategic and financial advice to corporations, financial sponsors, and governments. With uniquely deep industry expertise, broad international reach, and a partnership approach rooted in trust, the firm provides innovative, integrated solutions across mergers and acquisitions, capital solutions, financial restructuring, and financial and valuation advisory. Our unmatched transaction volumes provide differentiated, data-driven perspectives that help our clients achieve their most critical goals. To learn more about Houlihan Lokey, please visit HL.com. HOULIHAN LOKEY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)   (In thousands, except share data and par value) March 31, 2026   March 31, 2025 Assets:       Cash and cash equivalents $ 1,189,454     $ 971,007   Investment securities   170,271       195,624   Accounts receivable, net of allowance for credit losses   228,307       257,326   Unbilled work in process, net of allowance for credit losses   271,243       157,760   Property and equipment, net   142,876       149,350   Operating lease right-of-use assets   407,454       362,669   Goodwill   1,395,857       1,284,589   Other intangible assets, net   204,202       212,670   Other assets   299,291       228,713   Total assets $ 4,308,955     $ 3,819,708           Liabilities, temporary equity and stockholders' equity       Liabilities:       Accrued salaries and bonuses $ 1,076,593     $ 936,619   Accounts payable and accrued expenses   135,944       137,228   Operating lease liabilities   492,108       438,185   Other liabilities   151,379       132,799   Total liabilities   1,856,024       1,644,831           Redeemable noncontrolling interest   110,554       —           Stockholders' equity:       Class A common stock, $0.001 par value. Authorized 1,000,000,000 shares; issued and outstanding 54,220,275 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 15,266,333 and 16,021,106 shares, respectively   15       16   Additional paid-in capital   746,118       843,350   Retained earnings   1,645,100       1,394,738   Accumulated other comprehensive loss   (48,910 )     (63,281 ) Total stockholders’ equity   2,342,377       2,174,877   Total liabilities, temporary equity and stockholders’ equity $ 4,308,955     $ 3,819,708   HOULIHAN LOKEY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)     Three Months Ended March 31,   Year Ended March 31, (In thousands, except share and per share data)   2026       2025       2026       2025   Revenues $ 635,643     $ 666,422     $ 2,617,516     $ 2,389,416   Operating expenses:               Employee compensation and benefits   390,918       409,850       1,609,770       1,469,491   Acquisition related compensation and benefits   17,863       20,694       73,621       54,777   Travel, meals, and entertainment   18,540       14,893       72,431       64,917   Rent   24,308       21,165       79,810       77,882   Depreciation and amortization   8,044       15,409       42,634       41,270   Information technology and communications   21,297       18,511       76,170       69,400   Professional fees   11,410       11,304       45,143       41,202   Other operating expenses   18,115       15,391       73,023       68,933   Revaluation of acquisition contingent consideration   —       (1,851 )     17,895       (1,023 ) Total operating expenses   510,495       525,366       2,090,497       1,886,849   Operating income   125,148       141,056       527,019       502,567   Other (income) expense, net   (9,366 )     (9,199 )     (35,246 )     (28,768 ) Income before provision for income taxes   134,514       150,255       562,265       531,335   Provision for income taxes   36,202       28,335       138,091       131,624   Net income   98,312       121,920       424,174       399,711   Net (income) loss attributable to noncontrolling interest   1,523       —       1,523       —   Net income attributable to Houlihan Lokey, Inc. $ 99,835     $ 121,920     $ 425,697     $ 399,711                   Weighted average shares of common stock outstanding: Basic   66,341,893       66,216,014       66,547,768       65,724,473   Fully diluted   68,066,209       69,183,454       68,434,896       68,658,347   Earnings per share               Basic $ 1.50     $ 1.84     $ 6.40     $ 6.08   Fully diluted $ 1.47     $ 1.76     $ 6.22     $ 5.82   HOULIHAN LOKEY, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO ADJUSTED FINANCIAL INFORMATION (UNAUDITED)     Three Months Ended March 31,   Year Ended March 31, (In thousands, except share and per share data)   2026       2025       2026       2025   Revenues $ 635,643     $ 666,422     $ 2,617,516     $ 2,389,416                   Compensation expenses               Compensation expenses (GAAP) $ 408,781     $ 430,544     $ 1,683,391     $ 1,524,268   Less: Acquisition related compensation and benefits (1)   (17,863 )     (20,694 )     (73,621 )     (54,777 ) Compensation expenses (adjusted)   390,918       409,850       1,609,770       1,469,491                   Non-compensation expenses               Non-compensation expenses (GAAP) $ 101,714     $ 94,822     $ 407,106     $ 362,581   Less: Acquisition related legal structure reorganization (2)   —       (1,754 )     (1,467 )     (6,578 ) Less: Integration and acquisition related costs (3)   (5,824 )     —       (7,993 )     (8,222 ) Less: Acquisition amortization (4)   (1,706 )     (9,654 )     (15,080 )     (19,328 ) Less: Revaluation of acquisition contingent consideration (5)   —       1,851       (17,895 )     1,023   Non-compensation expenses (adjusted)   94,184       85,265       364,671       329,476                   Operating income               Operating income (GAAP) $ 125,148     $ 141,056     $ 527,019     $ 502,567   Plus: Adjustments (6)   25,393       30,251       116,056       87,882   Operating income (adjusted)   150,541       171,307       643,075       590,449                   Other (income) expense, net               Other (income) expense, net (GAAP) $ (9,366 )   $ (9,199 )   $ (35,246 )   $ (28,768 ) Other (income) expense, net (adjusted)   (9,366 )     (9,199 )     (35,246 )     (28,768 )                 Provision for income taxes               Provision for income taxes (GAAP) $ 36,202     $ 28,335     $ 138,091     $ 131,624   Plus (less): Impact of the excess tax benefit for stock vesting (7)   —       (1,582 )     —       20,339   Plus: Release of the provision for an uncertain tax position as a result of the successful closure of a city audit   —       11,954       —       11,954   Less: Non-deductible acquisition related costs (8)   (1,277 )     (2,208 )     (4,580 )     (3,670 ) Less: Reversal of deferred tax asset (9)   —       —       —       (1,690 ) Adjusted provision for income taxes   34,925       36,499       133,511       158,557   Plus: Resulting tax impact (10)   15,324       7,700       27,558       26,225   Provision for income taxes (adjusted)   50,249       44,199       161,069       184,782                   Net (income) loss attributable to noncontrolling interest               Net (income) loss attributable to noncontrolling interest (GAAP) $ 1,523     $ —     $ 1,523     $ —   Less: Impact of adjustments on noncontrolling interest, net of tax (11)   (398 )     —       (398 )     —   Net (income) loss attributable to noncontrolling interest (adjusted)   1,125       —       1,125       —                   Net income attributable to Houlihan Lokey, Inc.               Net income attributable to Houlihan Lokey, Inc. (GAAP) $ 99,835     $ 121,920     $ 425,697     $ 399,711   Plus: Adjustments (12)   10,948       14,387       92,680       34,724   Net income attributable to Houlihan Lokey, Inc. (adjusted) $ 110,783     $ 136,307     $ 518,377     $ 434,435                   Fully diluted shares outstanding               Fully diluted shares outstanding (GAAP)   68,066,209       69,183,454       68,434,896       68,658,347   Plus: Impact of unvested GCA retention and deferred share awards   —       282,498       170,251       406,479   Fully diluted shares outstanding (adjusted)   68,066,209       69,465,952       68,605,147       69,064,826                   Fully diluted EPS (GAAP) $ 1.47     $ 1.76     $ 6.22     $ 5.82   Fully diluted EPS (adjusted) $ 1.63     $ 1.96     $ 7.56     $ 6.29   Notes to Reconciliation of GAAP to Adjusted Financial Information (1) Reflects acquisition related deferred retention payments. (2) Reflects legal and other professional fees associated with the simplification of our legal entity structure that has resulted from acquisitions. (3) Reflects integration and acquisition related costs, including asset write offs or impairments. (4) Reflects amortization of intangible assets recognized in purchase accounting from our acquisitions. (5) Reflects the fair value remeasurement of acquisition-related contingent consideration. (6) The aggregate of adjustments from compensation and non-compensation expenses. (7) Prior to fiscal 2026, reflects the exclusion of tax effects recognized upon the vesting of stock-based awards, which result from the difference between the fair value at vesting and the grant date fair value. (8) Reflects acquisition-related costs which are non-deductible for income tax purposes. (9) Represents the reversal of deferred income taxes related to non-deductible expenses resulting from the senior management transition in fiscal 2025. (10) Reflects the tax impact of utilizing the adjusted effective tax rate on the non-tax adjustments identified above. (11) Reflects the impact of adjustments attributable to the noncontrolling interest, net of tax. (12) Consists of all adjustments identified above, net of the associated tax impact.   View source version on businesswire.com: https://www.businesswire.com/news/home/20260506685050/en/ Investor Relations
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PR@HL.com Original: Houlihan Lokey Reports Fiscal Year and Fourth Quarter 2026 Financial Results

Houlihan Lokey Announces Release Date for Fourth Quarter and Full Year Results for Fiscal Year 2026April 15, 2026 4:15 PM
Business Wire
Houlihan Lokey, Inc. (NYSE:HLI), the global investment bank, today announced that it will release its fourth quarter and full year results for the 2026 fiscal year on Wednesday, May 6, 2026, after the close of trading on the New York Stock Exchange. Houlihan Lokey will host a conference call at 5:00 p.m. (ET) that same day to review the results.


On the call, Scott Adelson, Chief Executive Officer, and Lindsey Alley, Chief Financial Officer, will discuss the fiscal 2026 fourth quarter and full year results and provide commentary on business performance. A question and answer session with analysts and investors will follow the prepared remarks.


Access to the live conference call will be available via telephone or audio webcast.


To Participate via Telephone


Participants are advised to dial into the call at least 10 minutes prior in order to register.




Domestic Toll-Free Dial-In Number:






1-844-825-9789








International Dial-In Number:






1-412-317-5180








Conference ID:






10207810







Participants can also click the Call me™ link below for instant telephone access to the event. The Call me™ link will be made active 15 minutes prior to the scheduled start time.




Call me™ link:






Click Here 








Passcode:






1970284







To Participate via Webcast


Access to the conference call will also be available via audio webcast through the “Investor Relations” section of the Company’s website, www.hl.com.


Conference Call Playback


A telephonic audio replay of the conference call will be available after 8:00 p.m. (ET) on May 6, 2026, through May 13, 2026, and can be accessed by dialing one of the numbers below and entering the replay pin number.




Domestic Toll-Free Dial-In Number:






1-844-512-2921








International Dial-In Number:






1-412-317-6671








Replay Pin Number:






10207810







A replay of the audio webcast will also be archived on the Company’s website, www.hl.com.


About Houlihan Lokey


Houlihan Lokey, Inc. (NYSE:HLI) is a leading global investment bank recognized for delivering independent strategic and financial advice to corporations, financial sponsors, and governments. With uniquely deep industry expertise, broad international reach, and a partnership approach rooted in trust, the firm provides innovative, integrated solutions across mergers and acquisitions, capital solutions, financial restructuring, and financial and valuation advisory. Our unmatched transaction volumes provide differentiated, data-driven perspectives that help our clients achieve their most critical goals. To learn more about Houlihan Lokey, please visit HL.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260415256454/en/
Investor Relations

+1 212.331.8225

IR@HL.com
Media Relations

+1 212.331.8223

PR@HL.com


Original: Houlihan Lokey Announces Release Date for Fourth Quarter and Full Year Results for Fiscal Year 2026

Houlihan Lokey Expands Specialty Distribution Capabilities With Senior European HiresFebruary 3, 2026 4:00 AM
Business Wire
Philipp Widmann Joins as a Managing Director; Henning Stoltze Joins as a Director


Houlihan Lokey, Inc. (NYSE:HLI), the global investment bank, announced two senior appointments in its global Industrials Group, as the firm expands its coverage of the specialty distribution sector in Europe.


Philipp Widmann has joined the firm from Baird as a Managing Director to lead the new team. Based in Frankfurt, he will work alongside senior colleagues in the firm’s market-leading distribution team in the U.S., as well as colleagues across the broader Industrials Group, to deliver bespoke, cross-border solutions to clients in the region.


Over more than a decade at Baird, Mr. Widmann advised clients on M&A and capital markets transactions across the business-to-business distribution sector. He brings extensive corporate finance expertise and a deep network of client and investor relationships across Europe’s distribution markets.


Henning Stoltze has joined the firm as a Director, also from Baird, where he worked closely with Mr. Widmann and spent the majority of his career focusing on the specialty distribution sector. He will also be based in the Frankfurt office.


The hires reflect the ongoing momentum of Houlihan Lokey’s Industrials Group in Europe, following the recent addition of Géraud Estrangin in Paris to focus on aerospace and defence, and further strengthen the team’s ability to deliver deep subsector expertise and innovative advisory solutions.


Bill Peluchiwski, Global Head of Industrials, said: “Philipp and Henning’s arrival represents yet another important milestone in the expansion of our global Industrials Group. Their appointment is indicative of our belief in the continued growth of the European specialty distribution market and exemplifies our focus on delivering outstanding, client-focused outcomes across the global markets where we operate.”


Reed Anderson, Co-Head of Specialty Distribution, commented: “We are excited to be expanding our market-leading North American Specialty Distribution practice by building out our European expertise, establishing a global platform that delivers enhanced advisory expertise and access across both continents. We look forward to partnering with Philipp and Henning to unlock more opportunities for our clients in both Europe and North America.”


Frank Merkel, Co-Head of Industrials, Europe, said: “We’re delighted to welcome Philipp and Henning to the Industrials Group. Hiring seasoned advisors of their profile materially enhances our expertise in specialty distribution, at a time of sustained momentum in Europe. Their deep sector knowledge, broad transaction experience, and established client relationships will accelerate the momentum of our European industrials platform, further reinforce our market leadership, and ensure we continue delivering innovative, high-impact solutions across diverse markets and subsectors.”


“I am delighted to be joining Houlihan Lokey as the firm expands its specialty distribution capabilities in Europe,” said Mr. Widmann. “Its unmatched depth of sector expertise, global reach, and collaborative culture provide a unique platform to deliver best-in-class solutions for clients. I look forward to contributing to the team’s ongoing momentum, leveraging our combined experience and relationships to support clients in achieving their strategic objectives and driving sustained growth across the region.”


Houlihan Lokey’s Industrials Group has earned a reputation for superior service and outstanding results in M&A advisory, capital-raising, restructuring, and financial and valuation advisory services. Our transaction quality and client work benefit from our company culture, where financial professionals are highly engaged in the execution of client projects, and from our experience as leaders in the market for more than a decade, which has given our professionals valuable exposure to a variety of situations and challenges. In 2025, Houlihan Lokey’s Industrials Group was ranked as the No. 1 M&A advisor for global industrials transactions under $5 billion, advising on a total of 71 deals.*


*2025 M&A Advisory Rankings—Global Industrials Transactions Under $5 Billion. LSEG. Excludes accounting firms and brokers.


About Houlihan Lokey


Houlihan Lokey, Inc. (NYSE:HLI) is a leading global investment bank recognized for delivering independent strategic and financial advice to corporations, financial sponsors, and governments. With uniquely deep industry expertise, broad international reach, and a partnership approach rooted in trust, the firm provides innovative, integrated solutions across mergers and acquisitions, capital solutions, financial restructuring, and financial and valuation advisory. Our unmatched transaction volumes provide differentiated, data-driven perspectives that help our clients achieve their most critical goals. To learn more about Houlihan Lokey, please visit HL.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260202217575/en/
Investor Relations

+1 212.331.8225

IR@HL.com


Media Relations

+44 20 7747 1480

PR@HL.com


Original: Houlihan Lokey Expands Specialty Distribution Capabilities With Senior European Hires

Houlihan Lokey Reports Third Quarter Fiscal 2026 Financial ResultsJanuary 28, 2026 4:15 PM
Business Wire
– Third Quarter Fiscal 2026 Revenues of $717 million –

– Third Quarter Fiscal 2026 Diluted EPS of $1.70 –

– Adjusted Third Quarter Fiscal 2026 Diluted EPS of $1.94 –

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


Houlihan Lokey, Inc. (NYSE:HLI) (“Houlihan Lokey” or the “Company”) today reported financial results for its third quarter ended December 31, 2025.


For the third quarter ended December 31, 2025, revenues were $717 million, compared with $634 million for the third quarter ended December 31, 2024. Net income was $117 million, or $1.70 per diluted share, for the third quarter ended December 31, 2025, compared with $95 million, or $1.39 per diluted share, for the third quarter ended December 31, 2024. Adjusted net income for the third quarter ended December 31, 2025 was $133 million, or $1.94 per diluted share, compared with $114 million, or $1.64 per diluted share, for the third quarter ended December 31, 2024.


“We are pleased with our results for the quarter and our performance year-to-date. We continue to benefit from improving investor sentiment and acceleration in the private equity markets. Most importantly, we continue to broaden and deepen our bench of exceptional talent around the world, most recently with our two transactions in Europe,” stated Scott Adelson, Chief Executive Officer of Houlihan Lokey.


Selected Financial Data




(In thousands, except per share data)






U.S. GAAP








Three Months Ended December 31,






 






Nine Months Ended December 31,








 






2025






 






 






 






2024






 






 






 






2025






 






 






 






2024






 








Revenues by segment






 






 






 






 






 






 






 








Corporate Finance






$






473,688






 






 






$






421,602






 






 






$






1,310,868






 






 






$






1,114,047






 








Financial Restructuring






 






156,253






 






 






 






130,942






 






 






 






418,272






 






 






 






379,932






 








Financial and Valuation Advisory






 






87,131






 






 






 






81,884






 






 






 






252,733






 






 






 






229,015






 








Revenues






$






717,072






 






 






$






634,428






 






 






$






1,981,873






 






 






$






1,722,994






 








Operating expenses:






 






 






 






 






 






 






 








Compensation






$






458,571






 






 






$






402,971






 






 






$






1,274,610






 






 






$






1,093,724






 








Non-compensation






 






97,771






 






 






 






95,355






 






 






 






305,392






 






 






 






267,759






 








Operating income






 






160,730






 






 






 






136,102






 






 






 






401,871






 






 






 






361,511






 








Other (income) expense, net






 






(8,918






)






 






 






(9,016






)






 






 






(25,880






)






 






 






(19,569






)








Income before provision for income taxes






 






169,648






 






 






 






145,118






 






 






 






427,751






 






 






 






381,080






 








Provision for income taxes






 






53,100






 






 






 






49,816






 






 






 






101,889






 






 






 






103,289






 








Net income






$






116,548






 






 






$






95,302






 






 






$






325,862






 






 






$






277,791






 








 






 






 






 






 






 






 






 








Diluted earnings per share






$






1.70






 






 






$






1.39






 






 






$






4.74






 






 






$






4.05






 







Revenues


For the third quarter ended December 31, 2025, revenues were $717 million, compared with $634 million for the third quarter ended December 31, 2024. For the third quarter ended December 31, 2025, Corporate Finance (“CF”) revenues increased 12%, Financial Restructuring (“FR”) revenues increased 19%, and Financial and Valuation Advisory (“FVA”) revenues increased 6%, in each case, when compared with the third quarter ended December 31, 2024.


Expenses


The Company’s compensation 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 December 31,








($ in thousands)






 






2025






 






 






 






2024






 






 






 






2025






 






 






 






2024






 








Expenses:






 






 






 






 






 






 






 








Compensation






$






458,571






 






 






$






402,971






 






 






$






441,001






 






 






$






390,173






 








% of Revenues






 






64.0






%






 






 






63.5






%






 






 






61.5






%






 






 






61.5






%








Non-compensation






$






97,771






 






 






$






95,355






 






 






$






93,699






 






 






$






83,002






 








% of Revenues






 






13.6






%






 






 






15.0






%






 






 






13.1






%






 






 






13.1






%








Per full-time employee (1)






$






36






 






 






$






35






 






 






$






34






 






 






$






31






 








Provision for income taxes






$






53,100






 






 






$






49,816






 






 






$






58,465






 






 






$






56,734






 








% of Pre-tax income






 






31.3






%






 






 






34.3






%






 






 






30.6






%






 






 






33.3






%









 






U.S. GAAP






 






Adjusted (Non-GAAP) *








 






Nine Months Ended December 31,








($ in thousands)






 






2025






 






 






 






2024






 






 






 






2025






 






 






 






2024






 








Expenses:






 






 






 






 






 






 






 








Compensation






$






1,274,610






 






 






$






1,093,724






 






 






$






1,218,852






 






 






$






1,059,641






 








% of Revenues






 






64.3






%






 






 






63.5






%






 






 






61.5






%






 






 






61.5






%








Non-compensation






$






305,392






 






 






$






267,759






 






 






$






270,487






 






 






$






244,211






 








% of Revenues






 






15.4






%






 






 






15.5






%






 






 






13.6






%






 






 






14.2






%








Per full-time employee (1)






$






113






 






 






$






101






 






 






$






100






 






 






$






92






 








Provision for income taxes






$






101,889






 






 






$






103,289






 






 






$






110,820






 






 






$






140,583






 








% of Pre-tax income






 






23.8






%






 






 






27.1






%






 






 






21.4






%






 






 






32.0






%









*







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.







Compensation expenses were $459 million for the third quarter ended December 31, 2025, compared with $403 million for the third quarter ended December 31, 2024. This resulted in a compensation ratio of 64.0% for the third quarter ended December 31, 2025, compared with 63.5% for the third quarter ended December 31, 2024. Adjusted compensation expenses were $441 million for the third quarter ended December 31, 2025, compared with $390 million for the third quarter ended December 31, 2024. This resulted in an adjusted compensation ratio of 61.5% for both the third quarter ended December 31, 2025 and the third quarter ended December 31, 2024. The increase in GAAP and adjusted compensation expenses was a result of an increase in revenues for the quarter when compared with the same quarter last year.


Non-compensation expenses were relatively flat at $98 million for the third quarter ended December 31, 2025, compared with $95 million for the third quarter ended December 31, 2024. Adjusted non-compensation expenses were $94 million for the third quarter ended December 31, 2025, compared with $83 million for the third quarter ended December 31, 2024. The increase in adjusted non-compensation expenses was primarily a result of increases in information technology and communications expense and professional fees.


The provision for income taxes was $53 million, representing an effective tax rate of 31.3% for the third quarter ended December 31, 2025, compared with $50 million, representing an effective tax rate of 34.3% for the third quarter ended December 31, 2024. The adjusted provision for income taxes was $58 million, representing an adjusted effective tax rate of 30.6% for the third quarter ended December 31, 2025, compared with $57 million, representing an adjusted effective tax rate of 33.3% for the third quarter ended December 31, 2024. The decrease in the Company’s GAAP and adjusted effective tax rate was primarily a result of decreased state taxes and decreased non-deductible expenses.


Segment Reporting for the Third Fiscal Quarter


Corporate Finance


CF revenues were $474 million for the third quarter ended December 31, 2025, compared with $422 million for the third quarter ended December 31, 2024, representing an increase of 12%. Revenues increased due to an increase in the average transaction fee on closed transactions, which was driven by transaction mix and does not represent a short-term trend in the average fee on closed transactions. Revenues also increased due to an increase in the number of closed transactions during the quarter, which was driven by favorable market conditions.




 






Three Months Ended December 31,






 






Nine Months Ended December 31,








($ in thousands)






2025






 






2024






 






2025






 






2024








Corporate Finance






 






 






 






 






 






 






 








Revenues






$






473,688






 






$






421,602






 






$






1,310,868






 






$






1,114,047








# of Managing Directors (1)






 






238






 






 






238






 






 






238






 






 






238








# of Closed transactions (2)






 






177






 






 






170






 






 






473






 






 






417







Financial Restructuring


FR revenues were $156 million for the third quarter ended December 31, 2025, compared with $131 million for the third quarter ended December 31, 2024, representing an increase of 19%. Revenues increased due to an increase in the average transaction fee on closed transactions, which was driven by transaction mix and does not represent a trend in the average fee on closed transactions.




 






Three Months Ended December 31,






 






Nine Months Ended December 31,








($ in thousands)






2025






 






2024






 






2025






 






2024








Financial Restructuring






 






 






 






 






 






 






 








Revenues






$






156,253






 






$






130,942






 






$






418,272






 






$






379,932








# of Managing Directors (1)






 






59






 






 






57






 






 






59






 






 






57








# of Closed transactions (2)






 






41






 






 






41






 






 






113






 






 






107







Financial and Valuation Advisory


FVA revenues were $87 million for the third quarter ended December 31, 2025, compared with $82 million for the third quarter ended December 31, 2024, representing an increase of 6%. Revenues increased due to an increase in the number of Fee Events, driven by improvements in the M&A markets.




 






Three Months Ended December 31,






 






Nine Months Ended December 31,








($ in thousands)






2025






 






2024






 






2025






 






2024








Financial and Valuation Advisory






 






 






 






 






 






 






 








Revenues






$






87,131






 






$






81,884






 






$






252,733






 






$






229,015








# of Managing Directors (1)






 






44






 






 






42






 






 






44






 






 






42








# of Fee Events (2)






 






1,103






 






 






1,005






 






 






1,987






 






 






1,804









(1)







As of the end of the respective reporting period.








(2)







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 annual report on Form 10-K.







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 March 15, 2026 to stockholders of record as of the close of business on March 2, 2026. Also in our third quarter, we repurchased approximately 418,000 shares as part of our share repurchase program. As of December 31, 2025, the Company had $1.18 billion of unrestricted cash and cash equivalents and investment securities.


Investor Conference Call and Webcast


The Company will host a conference call and live webcast at 5:00 p.m. Eastern Time on Wednesday, January 28, 2026, to discuss its third 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 10205652. 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 January 28, 2026 through February 4, 2026, by dialing 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and entering the passcode 10205652. 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 leading global investment bank recognized for delivering independent strategic and financial advice to corporations, financial sponsors, and governments. With uniquely deep industry expertise, broad international reach, and a partnership approach rooted in trust, the firm provides innovative, integrated solutions across mergers and acquisitions, capital solutions, financial restructuring, and financial and valuation advisory. Our unmatched transaction volumes provide differentiated, data-driven perspectives that help our clients achieve their most critical goals. To learn more about Houlihan Lokey, please visit HL.com.




HOULIHAN LOKEY, INC. AND SUBSIDIARIES








CONDENSED CONSOLIDATED BALANCE SHEETS








(UNAUDITED)










 



(In thousands, except share data and par value)






December 31, 2025






 






March 31, 2025








Assets:






 






 






 








Cash and cash equivalents






$






1,056,482






 






 






$






971,007






 








Investment securities






 






127,600






 






 






 






195,624






 








Accounts receivable, net of allowance for credit losses






 






210,876






 






 






 






257,326






 








Unbilled work in process, net of allowance for credit losses






 






232,673






 






 






 






157,760






 








Property and equipment, net






 






141,433






 






 






 






149,350






 








Operating lease right-of-use assets






 






415,132






 






 






 






362,669






 








Goodwill






 






1,292,804






 






 






 






1,284,589






 








Other intangible assets, net






 






199,597






 






 






 






212,670






 








Other assets






 






260,158






 






 






 






228,713






 








Total assets






$






3,936,755






 






 






$






3,819,708






 








 






 






 






 








Liabilities and stockholders' equity






 






 






 








Liabilities:






 






 






 








Accrued salaries and bonuses






$






881,133






 






 






$






936,619






 








Accounts payable and accrued expenses






 






107,659






 






 






 






137,228






 








Operating lease liabilities






 






497,131






 






 






 






438,185






 








Other liabilities






 






157,065






 






 






 






132,799






 








Total liabilities






 






1,642,988






 






 






 






1,644,831






 








 






 






 






 








Stockholders' equity:






 






 






 








Class A common stock, $0.001 par value. Authorized 1,000,000,000 shares; issued and outstanding 54,333,722 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 15,351,712 and 16,021,106 shares, respectively






 






15






 






 






 






16






 








Additional paid-in capital






 






734,490






 






 






 






843,350






 








Retained earnings






 






1,588,678






 






 






 






1,394,738






 








Accumulated other comprehensive loss






 






(29,470






)






 






 






(63,281






)








Total stockholders’ equity






 






2,293,767






 






 






 






2,174,877






 








Total liabilities and stockholders’ equity






$






3,936,755






 






 






$






3,819,708






 














 




HOULIHAN LOKEY, INC. AND SUBSIDIARIES








CONDENSED CONSOLIDATED STATEMENTS OF INCOME








(UNAUDITED)










 



 






Three Months Ended December 31,






 






Nine Months Ended December 31,








(In thousands, except share and per share data)






 






2025






 






 






 






2024






 






 






 






2025






 






 






 






2024






 








Revenues






$






717,072






 






 






$






634,428






 






 






$






1,981,873






 






 






$






1,722,994






 








Operating expenses:






 






 






 






 






 






 






 








Employee compensation and benefits






 






441,001






 






 






 






390,173






 






 






 






1,218,852






 






 






 






1,059,641






 








Acquisition related compensation and benefits






 






17,570






 






 






 






12,798






 






 






 






55,758






 






 






 






34,083






 








Travel, meals, and entertainment






 






18,736






 






 






 






17,942






 






 






 






53,891






 






 






 






50,024






 








Rent






 






19,523






 






 






 






22,259






 






 






 






55,502






 






 






 






56,717






 








Depreciation and amortization






 






8,297






 






 






 






9,561






 






 






 






34,590






 






 






 






25,861






 








Information technology and communications






 






20,357






 






 






 






16,945






 






 






 






54,873






 






 






 






50,889






 








Professional fees






 






11,740






 






 






 






11,744






 






 






 






33,733






 






 






 






29,898






 








Other operating expenses






 






19,118






 






 






 






16,904






 






 






 






54,908






 






 






 






53,542






 








Revaluation of acquisition contingent consideration






 






—






 






 






 






—






 






 






 






17,895






 






 






 






828






 








Total operating expenses






 






556,342






 






 






 






498,326






 






 






 






1,580,002






 






 






 






1,361,483






 








Operating income






 






160,730






 






 






 






136,102






 






 






 






401,871






 






 






 






361,511






 








Other (income) expense, net






 






(8,918






)






 






 






(9,016






)






 






 






(25,880






)






 






 






(19,569






)








Income before provision for income taxes






 






169,648






 






 






 






145,118






 






 






 






427,751






 






 






 






381,080






 








Provision for income taxes






 






53,100






 






 






 






49,816






 






 






 






101,889






 






 






 






103,289






 








Net income






$






116,548






 






 






$






95,302






 






 






$






325,862






 






 






$






277,791






 








 






 






 






 






 






 






 






 








Weighted average shares of common stock outstanding:








Basic






 






66,633,965






 






 






 






65,831,122






 






 






 






66,615,145






 






 






 






65,563,605






 








Fully diluted






 






68,426,644






 






 






 






68,760,959






 






 






 






68,691,432






 






 






 






68,558,325






 








Earnings per share






 






 






 






 






 






 






 








Basic






$






1.75






 






 






$






1.45






 






 






$






4.89






 






 






$






4.24






 








Fully diluted






$






1.70






 






 






$






1.39






 






 






$






4.74






 






 






$






4.05






 






















 




HOULIHAN LOKEY, INC. AND SUBSIDIARIES








RECONCILIATION OF GAAP TO ADJUSTED FINANCIAL INFORMATION








(UNAUDITED)










 



 






Three Months Ended December 31,






 






Nine Months Ended December 31,








(In thousands, except share and per share data)






 






2025






 






 






 






2024






 






 






 






2025






 






 






 






2024






 








Revenues






$






717,072






 






 






$






634,428






 






 






$






1,981,873






 






 






$






1,722,994






 








 






 






 






 






 






 






 






 








Compensation expenses






 






 






 






 






 






 






 








Compensation expenses (GAAP)






$






458,571






 






 






$






402,971






 






 






$






1,274,610






 






 






$






1,093,724






 








Less: Acquisition related compensation and benefits (1)






 






(17,570






)






 






 






(12,798






)






 






 






(55,758






)






 






 






(34,083






)








Compensation expenses (adjusted)






 






441,001






 






 






 






390,173






 






 






 






1,218,852






 






 






 






1,059,641






 








 






 






 






 






 






 






 






 








Non-compensation expenses






 






 






 






 






 






 






 








Non-compensation expenses (GAAP)






$






97,771






 






 






$






95,355






 






 






$






305,392






 






 






$






267,759






 








Less: Acquisition related legal structure reorganization (2)






 






(593






)






 






 






(3,619






)






 






 






(1,467






)






 






 






(4,824






)








Less: Integration and acquisition related costs (3)






 






(2,169






)






 






 






(4,668






)






 






 






(2,169






)






 






 






(8,222






)








Less: Acquisition amortization (4)






 






(1,310






)






 






 






(4,066






)






 






 






(13,374






)






 






 






(9,674






)








Less: Revaluation of acquisition contingent consideration (5)






 






—






 






 






 






—






 






 






 






(17,895






)






 






 






(828






)








Non-compensation expenses (adjusted)






 






93,699






 






 






 






83,002






 






 






 






270,487






 






 






 






244,211






 








 






 






 






 






 






 






 






 








Operating income






 






 






 






 






 






 






 








Operating income (GAAP)






$






160,730






 






 






$






136,102






 






 






$






401,871






 






 






$






361,511






 








Plus: Adjustments (6)






 






21,642






 






 






 






25,151






 






 






 






90,663






 






 






 






57,631






 








Operating income (adjusted)






 






182,372






 






 






 






161,253






 






 






 






492,534






 






 






 






419,142






 








 






 






 






 






 






 






 






 








Other (income) expense, net






 






 






 






 






 






 






 








Other (income) expense, net (GAAP)






$






(8,918






)






 






$






(9,016






)






 






$






(25,880






)






 






$






(19,569






)








Other (income) expense, net (adjusted)






 






(8,918






)






 






 






(9,016






)






 






 






(25,880






)






 






 






(19,569






)








 






 






 






 






 






 






 






 








Provision for income taxes






 






 






 






 






 






 






 








Provision for income taxes (GAAP)






$






53,100






 






 






$






49,816






 






 






$






101,889






 






 






$






103,289






 








Plus: Impact of the excess tax benefit for stock vesting (7)






 






—






 






 






 






—






 






 






 






—






 






 






 






21,921






 








Less: Non-deductible acquisition related costs (8)






 






(1,250






)






 






 






(1,462






)






 






 






(3,303






)






 






 






(1,462






)








Less: Reversal of deferred tax asset (9)






 






—






 






 






 






—






 






 






 






—






 






 






 






(1,690






)








Adjusted provision for income taxes






 






51,850






 






 






 






48,354






 






 






 






98,586






 






 






 






122,058






 








Plus: Resulting tax impact (10)






 






6,615






 






 






 






8,380






 






 






 






12,234






 






 






 






18,525






 








Provision for income taxes (adjusted)






 






58,465






 






 






 






56,734






 






 






 






110,820






 






 






 






140,583






 








 






 






 






 






 






 






 






 








Net income






 






 






 






 






 






 






 








Net income (GAAP)






$






116,548






 






 






$






95,302






 






 






$






325,862






 






 






$






277,791






 








Plus: Adjustments (11)






 






16,277






 






 






 






18,233






 






 






 






81,732






 






 






 






20,337






 








Net income (adjusted)






$






132,825






 






 






$






113,535






 






 






$






407,594






 






 






$






298,128






 








 






 






 






 






 






 






 






 








Fully diluted shares outstanding






 






 






 






 






 






 






 








Fully diluted shares outstanding (GAAP)






 






68,426,644






 






 






 






68,760,959






 






 






 






68,691,432






 






 






 






68,558,325






 








Plus: Impact of unvested GCA retention and deferred share awards






 






172,940






 






 






 






334,677






 






 






 






232,440






 






 






 






454,494






 








Fully diluted shares outstanding (adjusted)






 






68,599,584






 






 






 






69,095,636






 






 






 






68,923,872






 






 






 






69,012,819






 








 






 






 






 






 






 






 






 








Fully diluted EPS (GAAP)






$






1.70






 






 






$






1.39






 






 






$






4.74






 






 






$






4.05






 








Fully diluted EPS (adjusted)






$






1.94






 






 






$






1.64






 






 






$






5.91






 






 






$






4.32






 









Notes to Reconciliation of GAAP to Adjusted Financial Information








(1)







Reflects acquisition related deferred retention payments.








(2)







Reflects legal and other professional fees associated with the simplification of our legal entity structure that has resulted from acquisitions.








(3)







Reflects integration and acquisition related costs, including asset write offs or impairments.








(4)







Reflects amortization of intangible assets recognized in purchase accounting from our acquisitions.








(5)







Reflects the fair value remeasurement of acquisition-related contingent consideration.








(6)







The aggregate of adjustments from compensation and non-compensation expenses.








(7)







Prior to fiscal 2026, reflects the exclusion of stock-based compensation tax deductions recognized upon vesting of stock-based awards, where the fair value at vesting exceeded the grant date fair value.








(8)







Reflects acquisition-related costs which are non-deductible for income tax purposes.








(9)







Represents the reversal of deferred income taxes related to non-deductible expenses resulting from the senior management transition in fiscal 2025.








(10)







Reflects the tax impact of utilizing the adjusted effective tax rate on the non-tax adjustments identified above.








(11)







Consists of all adjustments identified above net of the associated tax impact.







 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260128119588/en/
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Original: Houlihan Lokey Reports Third Quarter Fiscal 2026 Financial Results