Company Overview

Houlihan Lokey, Inc. (NYSE: HLI) is a leading global investment bank renowned for its expertise in mergers and acquisitions (M&A), capital solutions, financial restructuring, and financial and valuation advisory. Established in 1972 and headquartered at Constellation Place in Century City, Los Angeles, California, Houlihan Lokey serves a diverse clientele including corporations, institutions, and governments worldwide. The firm operates an extensive network of offices across the Americas, Europe, the Middle East, and the Asia Pacific region.

Business Overview and Market Leadership

The company strategically operates through three core segments: Corporate Finance, Financial Restructuring, and Financial and Valuation Advisory. Houlihan Lokey has consistently demonstrated industry dominance, holding several prestigious rankings:

- No. 1 investment bank for all global M&A transactions for the past two years.

- No. 1 M&A advisor for the past 10 years in the U.S.

- No. 1 global restructuring advisor for the past 11 years.

- No. 1 global M&A fairness opinion advisor over the past 25 years, based on the number of transactions.

As of December 2024, Houlihan Lokey employs a dedicated team of over 2,700 professionals worldwide.

Financial Performance - Record Fiscal Year 2025

Houlihan Lokey delivered exceptional financial results for fiscal year 2025:

- Revenue Growth: Revenues reached $2.39 billion, a significant increase from $1.91 billion in FY2024.

- Earnings Performance: Net income for FY2025 was $400 million ($5.82 per diluted share), up from $280 million ($4.11 per share) in FY2024.

- Quarterly Momentum: Fourth-quarter revenues hit $666 million, compared to $520 million in Q4 2024.

- Dividend Increase: The company announced a 5% increase in its quarterly dividend to $0.60 per share.

All business segments experienced robust growth: Corporate Finance revenues increased by 38%, Financial Restructuring grew by 4%, and Financial Advisory revenues rose by 11% year-over-year. During FY2025, the company successfully completed 564 Corporate Finance transactions and 145 Financial Restructuring deals.

Q1 Fiscal 2026 Performance

For the first quarter of fiscal year 2026 (ended June 30, 2025), Houlihan Lokey reported revenues of $605 million, an 18% year-over-year increase from $514 million in Q1 fiscal 2025. Net income reached $98 million, or $1.42 per diluted share, compared to $89 million ($1.30 per share) in the prior year's quarter.

The adjusted earnings performance was particularly strong, with an adjusted earnings per share (EPS) of $2.14, exceeding the forecast of $1.68 by a significant 27.38%.

Q1 2026 Segment Performance:

- Corporate Finance revenues increased 21% to $399 million.

- Financial Restructuring grew 9% to $128 million.

- Financial and Valuation Advisory rose 16% to $79 million.

Market Position and Financial Strength

The market capitalization of Houlihan Lokey (HLI) stands at approximately $14.0 billion as of September 2025, positioning it firmly in the large capitalization category.

The company maintained a strong balance sheet, reporting $867 million in cash and cash equivalents and investment securities as of June 30, 2025.

Business Segments

Corporate Finance

The Corporate Finance segment provides comprehensive financial advisory services, including expert guidance on mergers and acquisitions and capital markets offerings. This segment has consistently been the primary growth driver, demonstrating strong performance across recent quarters.

Financial Restructuring

The Financial Restructuring segment specializes in advising debtors, creditors, and other parties-in-interest in connection with recapitalization and deleveraging transactions. The firm upholds its leading market position within this highly specialized area.

Financial and Valuation Advisory

The Financial Valuation and Advisory Services segment is dedicated to the valuation of diverse assets, including companies, illiquid debt, and equity securities, delivering critical advisory services tailored to a wide array of client needs.

Management Outlook and Strategic Direction

CEO Scott Adelson commented on the company's performance and outlook: "We began fiscal 2026 with momentum across our business, despite an uncertain environment... While forecasts remain difficult in the current environment, we are cautiously optimistic that we can continue to build on this momentum in fiscal 2026."

Management remains well-prepared to navigate market uncertainty. Scott Adelson further stated: "While current volatility makes meaningful forecasts difficult, we are well positioned to handle the uncertainty of current market conditions."

The company continues its global expansion through strategic talent acquisition and office development, with a particular focus on expanding coverage in digital infrastructure and financial sponsors in Asia. Houlihan Lokey continues to benefit from its diversified business model, which provides resilience across different industries and geographies.