Houlihan Lokey Reports First Quarter Fiscal 2026 Financial Results

About this update from Houlihan Lokey, Inc.

– 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 – LOS ANGELES & NEW YORK, July 29, 2025 --( BUSINESS WIRE )--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. 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. 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. 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. 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. 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) View source version on businesswire.com: https://www.businesswire.com/news/home/20250729751313/en/ Contacts Investor Relations 212.331.8225 [email protected] OR Media Relations 212.331.8223 [email protected]

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