NEW YORK--(BUSINESS WIRE)--Houlihan Lokey, Inc. (NYSE:HLI), the global investment bank, announced today that John Guzzo has joined as a Managing Director in its Financial Services Group. Based in New York, Mr. Guzzo will further strengthen the firm's Mortgage Services practice. Mr. Guzzo joins the firm with more than 25 years of M&A and financial services experience. Prior to joining the firm, he was a Managing Director at Keefe, Bruyette & Woods, Inc. (KBW), a Stifel company, where he. ...

Core Insights - Nano Dimension Ltd. has initiated a process to explore a comprehensive range of strategic alternatives aimed at maximizing shareholder value [1] - The company has engaged Guggenheim Partners and Houlihan Lokey as exclusive financial advisors to assist in this strategic review [1] - An executive leadership change has occurred, with David S. Stehlin appointed as the new CEO, replacing Ofir Baharav [1][2] Leadership and Strategy - David S. Stehlin emphasizes the importance of transparency and trust with stakeholders, aiming to focus on fiscal responsibility and targeted growth opportunities [2] - The Board of Directors expresses full confidence in Stehlin's ability to lead the company through this transition, highlighting his extensive experience in technology leadership and M&A initiatives [2] - Stehlin has over 40 years of experience in technology leadership, with a proven track record in developing strategies and overcoming operational challenges [2] Industry Context - Nano Dimension operates in the digital manufacturing sector, providing advanced technologies to industries such as defense, aerospace, automotive, electronics, and medical devices [3] - The company is positioned to benefit from trends in onshoring, national security, and increasing product customization, enabling rapid deployment of high-mix, low-volume production [3]

Market Overview - Wall Street has continued its bull run in 2025, with the S&P 500 recording 20 all-time highs year to date, including five in August alone [1] - Historically, September is the worst-performing month for U.S. equities, with an average decline of 0.7% since 1950, and a more pronounced average decline of 2% over the last 10 years [2] Investment Recommendations - It is advisable to invest in low-beta, high-yielding stocks with a favorable Zacks Rank, including Assurant Inc. (AIZ), Hasbro Inc. (HAS), The Mosaic Co. (MOS), Virtu Financial Inc. (VIRT), and Houlihan Lokey Inc. (HLI), all of which have a Zacks Rank 1 (Strong Buy) [3][10] Assurant Inc. (AIZ) - Assurant is focused on both inorganic and organic growth strategies, expecting adjusted EBITDA to increase modestly in 2025, driven by improved performance in Global Housing and growth in Global Lifestyle [13] - The company has an expected revenue growth rate of 5.7% and an earnings growth rate of 5.8% for the current year, with a Zacks Consensus Estimate for earnings improving by 7.6% over the last 30 days [15] Hasbro Inc. (HAS) - Hasbro is concentrating on high-margin segments such as Wizards, Licensing, and Digital, which are expected to support bottom-line growth [16] - The company anticipates that digital gaming and licensing partnerships will contribute about 25% of corporate revenues by 2027, with an expected revenue growth rate of 6.6% and an earnings growth rate of 21.5% for the current year [19] The Mosaic Co. (MOS) - The Mosaic is expected to benefit from higher demand for fertilizers, with strong grower economics and crop commodity prices driving global fertilizer demand [20] - The company has an expected revenue growth rate of 16.4% and an earnings growth rate of 60.1% for the current year, with a Zacks Consensus Estimate for earnings improving by 13.2% over the last 30 days [22] Virtu Financial Inc. (VIRT) - Virtu Financial's diversified business model supports sustainable long-term growth, with ongoing cost-control initiatives improving adjusted net margins [24] - The company has an expected revenue growth rate of 18.9% and an earnings growth rate of 33.8% for the current year, with a Zacks Consensus Estimate for earnings improving by 17.9% over the last 60 days [25] Houlihan Lokey Inc. (HLI) - Houlihan Lokey is a global investment bank specializing in mergers and acquisitions, capital solutions, and financial advisory services [26] - The company has an expected revenue growth rate of 13.1% and an earnings growth rate of 21.9% for the current year, with a Zacks Consensus Estimate for earnings improving by 6.7% over the last 60 days [27]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying those with true potential can be challenging [1] Group 1: Company Overview - Houlihan Lokey (HLI) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 3.6%, but projected EPS growth for this year is expected to be 21.9%, surpassing the industry average of 17.7% [5] Group 2: Financial Metrics - Cash flow growth for Houlihan Lokey is currently at 40.3%, significantly higher than the industry average of 4.7% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 15.9%, compared to the industry average of 11.8% [7] Group 3: Earnings Estimates - Current-year earnings estimates for Houlihan Lokey have been revised upward, with the Zacks Consensus Estimate increasing by 2.5% over the past month [9] - The combination of a Growth Score of A and a Zacks Rank 1 positions Houlihan Lokey favorably for potential outperformance [11]

Core Insights - Three stocks with strong momentum and buy rankings are highlighted for investors: Zurn Elkay Water Solutions Corp, LendingClub, and Houlihan Lokey [1][2][3]. Company Summaries Zurn Elkay Water Solutions Corp (ZWS) - The company supplies advanced water system solutions and has a Zacks Rank of 1 (Strong Buy) [1]. - The Zacks Consensus Estimate for its current year earnings increased by 9.9% over the last 60 days [1]. - Shares gained 29.7% over the last three months, outperforming the S&P 500's gain of 10.3% [2]. - The company possesses a Momentum Score of A [2]. LendingClub (LC) - LendingClub operates an online marketplace for loan approval, pricing, servicing, and support operations, connecting borrowers and investors [2]. - It has a Zacks Rank of 1 and the Zacks Consensus Estimate for its current year earnings increased by 58.5% over the last 60 days [2]. - Shares gained 51.3% over the last three months, significantly outperforming the S&P 500's gain of 10.3% [3]. - The company also possesses a Momentum Score of A [3]. Houlihan Lokey (HLI) - Houlihan Lokey is a national banking association chartered under U.S. laws and has a Zacks Rank of 1 [3]. - The Zacks Consensus Estimate for its current year earnings increased by 6.5% over the last 60 days [3]. - Shares gained 15.9% over the last three months, again outperforming the S&P 500's gain of 10.3% [4]. - The company holds a Momentum Score of A [4].

Group 1: Company Highlights - Celestica (CLS) is one of the largest electronics manufacturing services companies globally, serving various industries, with a 9.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - SB Financial Group (SBFG) is a financial services holding company providing a full range of services for consumers and small businesses, also experiencing a 9.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - HomeTrust Bancshares (HTB) focuses on attracting deposits and investing in loans secured by mortgages, with a 7.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - Houlihan Lokey (HLI) is a global investment bank specializing in mergers and acquisitions, with a 6.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [4] - Udemy (UDMY) offers online courses across various subjects, with a 4.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [5]

The Financial Restructuring division, focused on helping distressed companies, posted a 9% year-over-year revenue increase (GAAP), supported by a higher number of closed transactions and stable headcount at 58 Managing Directors. Leadership cautioned that this activity tends to be cyclical and that restructuring demand sees seasonal peaks, often in later quarters of the year. The Financial and Valuation Advisory unit, which provides independent valuations and fairness opinions, achieved 16% GAAP revenue gro ...

Executive Summary / Q1 FY26 Financial Highlights [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) Houlihan Lokey reported strong first-quarter fiscal 2026 results with significant revenue growth and increased diluted EPS, both on a GAAP and adjusted basis, compared to the prior year Q1 FY26 vs Q1 FY25 Financial Highlights | Metric | Q1 FY26 (Millions) | Q1 FY25 (Millions) | YoY Change | | :----- | :----------------- | :----------------- | :--------- | | Revenues | $605 | $514 | +17.7% | | Net Income (GAAP) | $98 | $89 | +10.1% | | Diluted EPS (GAAP) | $1.42 | $1.30 | +9.2% | | Adjusted Net Income | $148 | $84 | +76.2% | | Adjusted Diluted EPS | $2.14 | $1.22 | +75.4% | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Scott Adelson highlighted strong Q1 FY26 momentum across all business lines, expressing cautious optimism for continued growth - Began fiscal 2026 with momentum across all three business lines, demonstrating solid performance despite an uncertain environment[3](index=3&type=chunk) - Benefits of a diversified business model are evident across industry and geography[3](index=3&type=chunk) - Cautiously optimistic about building on this momentum in fiscal 2026, despite difficult forecasts[3](index=3&type=chunk) Consolidated Financial Performance [Revenues](index=1&type=section&id=Revenues) Q1 FY26 total revenues significantly increased year-over-year, driven by growth across all three business segments Q1 FY26 Revenues by Segment (GAAP) | Segment | Q1 FY26 (Thousands) | Q1 FY25 (Thousands) | YoY Change | YoY Growth | | :---------------------- | :------------------ | :------------------ | :--------- | :--------- | | Corporate Finance | $398,519 | $328,417 | +$70,102 | +21% | | Financial Restructuring | $128,216 | $117,422 | +$10,794 | +9% | | Financial and Valuation Advisory | $78,614 | $67,770 | +$10,844 | +16% | | **Total Revenues** | **$605,349** | **$513,609** | **+$91,740** | **+17.9%** | [Operating Expenses](index=2&type=section&id=Operating%20Expenses) [Employee Compensation and Benefits](index=2&type=section&id=Employee%20Compensation%20and%20Benefits) Q1 FY26 employee compensation and benefits increased due to higher revenues, maintaining a consistent adjusted compensation ratio Employee Compensation and Benefits Expenses (Q1 FY26 vs Q1 FY25) | Metric | Q1 FY26 (Thousands) | Q1 FY25 (Thousands) | YoY Change | | :-------------------------------- | :------------------ | :------------------ | :--------- | | GAAP Employee Compensation & Benefits | $392,837 | $330,116 | +$62,721 | | Adjusted Employee Compensation & Benefits | $372,289 | $315,869 | +$56,420 | | GAAP % of Revenues | 64.9% | 64.3% | +0.6 pp | | Adjusted % of Revenues | 61.5% | 61.5% | 0.0 pp | - Increase in GAAP and adjusted employee compensation and benefits expenses was primarily a result of an increase in revenues for the quarter[10](index=10&type=chunk) [Non-Compensation Expenses](index=2&type=section&id=Non-Compensation%20Expenses) Q1 FY26 non-compensation expenses increased, driven by revaluation of acquisition contingent consideration and other operating costs Non-Compensation Expenses (Q1 FY26 vs Q1 FY25) | Metric | Q1 FY26 (Thousands) | Q1 FY25 (Thousands) | YoY Change | | :---------------------- | :------------------ | :------------------ | :--------- | | GAAP Non-compensation | $122,712 | $88,753 | +$33,959 | | Adjusted Non-compensation | $94,469 | $80,330 | +$14,139 | | GAAP % of Revenues | 20.3% | 17.3% | +3.0 pp | | Adjusted % of Revenues | 15.6% | 15.6% | 0.0 pp | - Increase in GAAP non-compensation expenses primarily due to increases in revaluation of acquisition contingent consideration, depreciation and amortization, and other operating expenses[11](index=11&type=chunk) - Increase in adjusted non-compensation expenses primarily due to increases in other operating expenses and professional fees[11](index=11&type=chunk) [Income and Earnings Per Share](index=1&type=section&id=Income%20and%20Earnings%20Per%20Share) [Net Income and Diluted EPS (GAAP)](index=1&type=section&id=Net%20Income%20and%20Diluted%20EPS%20%28GAAP%29) GAAP net income and diluted earnings per share both increased in Q1 FY26 compared to the prior year GAAP Net Income and Diluted EPS (Q1 FY26 vs Q1 FY25) | Metric | Q1 FY26 | Q1 FY25 | YoY Change | | :-------------------- | :-------- | :-------- | :--------- | | Net Income (Thousands) | $97,533 | $88,940 | +$8,593 | | Diluted EPS | $1.42 | $1.30 | +$0.12 | [Adjusted Net Income and Diluted EPS (Non-GAAP)](index=1&type=section&id=Adjusted%20Net%20Income%20and%20Diluted%20EPS%20%28Non-GAAP%29) Adjusted net income and diluted EPS showed substantial growth in Q1 FY26, significantly outperforming the prior year Adjusted Net Income and Diluted EPS (Q1 FY26 vs Q1 FY25) | Metric | Q1 FY26 | Q1 FY25 | YoY Change | | :-------------------- | :-------- | :-------- | :--------- | | Adjusted Net Income (Thousands) | $148,005 | $84,305 | +$63,700 | | Adjusted Diluted EPS | $2.14 | $1.22 | +$0.92 | [Provision for Income Taxes](index=2&type=section&id=Provision%20for%20Income%20Taxes) GAAP effective tax rate decreased due to increased stock-based compensation deductions; adjusted rate also fell due to a policy change Provision for Income Taxes and Effective Tax Rates (Q1 FY26 vs Q1 FY25) | Metric | Q1 FY26 (Thousands) | Q1 FY25 (Thousands) | YoY Change | | :-------------------------------- | :------------------ | :------------------ | :--------- | | GAAP Provision for Income Taxes | $517 | $10,934 | -$10,417 | | GAAP Effective Tax Rate | 0.5% | 10.9% | -10.4 pp | | Adjusted (Benefit)/Provision for Income Taxes | ($1,164) | $38,239 | -$39,403 | | Adjusted Effective Tax Rate | (0.8)% | 31.2% | -32.0 pp | - Decrease in GAAP effective tax rate primarily a result of increased stock-based compensation deductions[12](index=12&type=chunk) - Decrease in adjusted effective tax rate primarily a result of a policy change to no longer adjust out the impact of stock-based compensation deductions[12](index=12&type=chunk) Segment Performance [Corporate Finance](index=3&type=section&id=Corporate%20Finance) Corporate Finance revenues increased by 21% in Q1 FY26, primarily due to a higher average transaction fee on closed transactions Corporate Finance Segment Performance (Q1 FY26 vs Q1 FY25) | Metric | Q1 FY26 | Q1 FY25 | YoY Change | | :------------------------ | :-------- | :-------- | :--------- | | Revenues (Thousands) | $398,519 | $328,417 | +$70,102 | | of Managing Directors | 244 | 228 | +16 | | of Closed transactions | 125 | 116 | +9 | - Revenues increased primarily due to an increase in the average transaction fee on closed transactions, driven by transaction mix[13](index=13&type=chunk) [Financial Restructuring](index=3&type=section&id=Financial%20Restructuring) Financial Restructuring revenues grew by 9% in Q1 FY26, mainly due to an increase in closed transactions and favorable market conditions Financial Restructuring Segment Performance (Q1 FY26 vs Q1 FY25) | Metric | Q1 FY26 | Q1 FY25 | YoY Change | | :------------------------ | :-------- | :-------- | :--------- | | Revenues (Thousands) | $128,216 | $117,422 | +$10,794 | | of Managing Directors | 58 | 58 | 0 | | of Closed transactions | 35 | 33 | +2 | - Revenues increased primarily due to an increase in the number of closed transactions, driven by favorable market conditions for restructuring transactions[15](index=15&type=chunk) [Financial and Valuation Advisory](index=3&type=section&id=Financial%20and%20Valuation%20Advisory) Financial and Valuation Advisory revenues increased by 16% in Q1 FY26, driven by an expanded client base and broader scope of work Financial and Valuation Advisory Segment Performance (Q1 FY26 vs Q1 FY25) | Metric | Q1 FY26 | Q1 FY25 | YoY Change | | :-------------------- | :-------- | :-------- | :--------- | | Revenues (Thousands) | $78,614 | $67,770 | +$10,844 | | of Managing Directors | 45 | 42 | +3 | | of Fee Events | 957 | 847 | +110 | - Revenues increased primarily due to an increase in the number of Fee Events, driven by increasing client base and expanding scope of work for existing clients[17](index=17&type=chunk) Financial Position and Capital Allocation [Balance Sheet Highlights](index=4&type=section&id=Balance%20Sheet%20Highlights) As of June 30, 2025, Houlihan Lokey maintained a strong liquidity position with substantial cash and investment securities - As of June 30, 2025, the Company had **$867 million** in cash and cash equivalents and investment securities[19](index=19&type=chunk) - Other liabilities totaled **$93 million** as of June 30, 2025[19](index=19&type=chunk) [Dividend Announcement](index=4&type=section&id=Dividend%20Announcement) The Board of Directors declared a regular quarterly cash dividend of $0.60 per share for the second quarter of fiscal 2026 - Regular quarterly cash dividend of **$0.60 per share** of Class A and Class B common stock declared[19](index=19&type=chunk) - Dividend payable on September 15, 2025, to stockholders of record as of September 2, 2025[19](index=19&type=chunk) Additional Information [Investor Conference Call and Webcast](index=4&type=section&id=Investor%20Conference%20Call%20and%20Webcast) Houlihan Lokey will host a conference call and live webcast on July 29, 2025, to discuss Q1 FY26 results, with replay options - Conference call and live webcast scheduled for 5:00 p.m. Eastern Time on Tuesday, July 29, 2025[20](index=20&type=chunk) - Replay of the conference call available from July 29, 2025, through August 5, 2025[20](index=20&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) The press release includes forward-looking statements involving known and unknown risks, cautioning against undue reliance - Press release contains forward-looking statements identifiable by words like 'assumes,' 'believes,' 'estimates,' 'expects,' 'guidance,' 'intends,' 'plans,' 'projects,' and similar expressions[21](index=21&type=chunk) - Forward-looking statements involve known and unknown risks, uncertainties, and other factors that could materially affect actual results[21](index=21&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted non-GAAP financial measures are presented to clarify operating results for investors, not as a substitute for GAAP - Adjusted net income and other adjusted items are non-GAAP measures presented to help investors understand operating results[22](index=22&type=chunk) - Non-GAAP measures are not a measurement of financial performance or liquidity under GAAP and should not be considered an alternative to GAAP financial information[22](index=22&type=chunk) [About Houlihan Lokey](index=4&type=section&id=About%20Houlihan%20Lokey) Houlihan Lokey is a global investment bank specializing in M&A, capital solutions, and advisory services, recognized for top rankings - Houlihan Lokey is a global investment bank with expertise in mergers and acquisitions, capital solutions, financial restructuring, and financial and valuation advisory[23](index=23&type=chunk) - Serves corporations, institutions, and governments worldwide with offices across the Americas, Europe, the Middle East, and Asia Pacific[23](index=23&type=chunk) - Ranked **No. 1 investment bank** for all global M&A transactions (past two years), **No. 1 M&A advisor** in the U.S. (past 10 years), **No. 1 global restructuring advisor** (past 11 years), and **No. 1 global M&A fairness opinion advisor** (past 25 years)[23](index=23&type=chunk) Financial Statements & Reconciliations (Appendix) [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Unaudited condensed consolidated balance sheets detail the company's financial position as of June 30, 2025, compared to March 31, 2025 Condensed Consolidated Balance Sheets (Unaudited) | Metric | June 30, 2025 (Thousands) | March 31, 2025 (Thousands) | Change | | :-------------------------- | :------------------------ | :------------------------- | :------- | | Total Assets | $3,517,803 | $3,819,708 | -$301,905 | | Total Liabilities | $1,339,987 | $1,644,831 | -$304,844 | | Total Stockholders' Equity | $2,177,816 | $2,174,877 | +$2,939 | [Condensed Consolidated Statements of Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Unaudited condensed consolidated statements of income present revenues, operating expenses, and net income for Q1 FY26 and Q1 FY25 Condensed Consolidated Statements of Income (Unaudited) | Metric | Three Months Ended June 30, 2025 (Thousands) | Three Months Ended June 30, 2024 (Thousands) | YoY Change | | :-------------------------------- | :------------------------------------------- | :------------------------------------------- | :--------- | | Revenues | $605,349 | $513,609 | +$91,740 | | Total Operating Expenses | $515,549 | $418,869 | +$96,680 | | Operating Income | $89,800 | $94,740 | -$4,940 | | Income before provision for income taxes | $98,050 | $99,874 | -$1,824 | | Net Income | $97,533 | $88,940 | +$8,593 | | Diluted EPS | $1.42 | $1.30 | +$0.12 | [Reconciliation of GAAP to Adjusted Financial Information](index=8&type=section&id=Reconciliation%20of%20GAAP%20to%20Adjusted%20Financial%20Information) This section reconciles GAAP and adjusted financial figures, detailing adjustments for compensation, expenses, taxes, and their impact Reconciliation of GAAP to Adjusted Financial Information (Unaudited) | Metric | GAAP Q1 FY26 (Thousands) | Adjusted Q1 FY26 (Thousands) | GAAP Q1 FY25 (Thousands) | Adjusted Q1 FY25 (Thousands) | | :------------------------------------ | :------------------------- | :--------------------------- | :------------------------- | :--------------------------- | | Employee compensation and benefits | $392,837 | $372,289 | $330,116 | $315,869 | | Non-compensation expenses | $122,712 | $94,469 | $88,753 | $80,330 | | Operating income | $89,800 | $138,591 | $94,740 | $117,410 | | Provision for income taxes | $517 | ($1,164) | $10,934 | $38,239 | | Net income | $97,533 | $148,005 | $88,940 | $84,305 | | Fully diluted shares outstanding | 68,887,970 | 69,303,552 | 68,501,059 | 69,123,455 | | Diluted EPS | $1.42 | $2.14 | $1.30 | $1.22 |

分组1 - Houlihan Lokey reported quarterly earnings of $2.14 per share, exceeding the Zacks Consensus Estimate of $1.69 per share, and showing an increase from $1.22 per share a year ago, resulting in an earnings surprise of +26.63% [1] - The company achieved revenues of $605.35 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.85%, and up from $513.61 million year-over-year [2] - Houlihan Lokey has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] 分组2 - The stock has gained approximately 11.1% since the beginning of the year, outperforming the S&P 500's gain of 8.6% [3] - The current consensus EPS estimate for the upcoming quarter is $1.63 on revenues of $627.67 million, and for the current fiscal year, it is $7.19 on revenues of $2.66 billion [7] - The Zacks Industry Rank for Financial - Miscellaneous Services is in the bottom 42% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Data and Key Metrics Changes - The company reported revenues of $605 million for the first quarter, an 18% increase compared to the same quarter last year, and adjusted earnings per share of $2.14, up 75% year-over-year [6][11][20] - Adjusted compensation expenses were $372 million, up from $316 million in the same period last year, maintaining an adjusted compensation expense ratio of 61.5% [14][15][20] - The adjusted effective tax rate for the quarter was negative 0.8%, a significant decrease from 31.2% in the same quarter last year [19][20] Business Line Data and Key Metrics Changes - Corporate Finance generated $399 million in revenue, a 21% increase year-over-year, with 125 transactions closed, up from 116 [7][12] - Financial Restructuring revenues were $128 million, a 9% increase, with 35 transactions closed compared to 33 in the same quarter last year [8][13] - Financial and Valuation Advisory produced $79 million in revenues, a 16% increase, with 957 fee events, up from 847 [9][13] Market Data and Key Metrics Changes - The U.S. market continues to outpace EMEA in terms of revenue and activity levels, with expectations that this trend will persist [12][30] - The company noted that while the financial sponsor community's activity has been muted, there is optimism for a return to historic levels as market conditions improve [7][54] Company Strategy and Development Direction - The company is focused on maintaining a diversified business model across industries and geographies, which has shown resilience in the current macro environment [6][11] - The company hosted the inaugural Houlihan Lokey ONE conference, which attracted over 4,000 attendees, showcasing its global reach and commitment to client engagement [10] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the business environment, acknowledging ongoing volatility but noting improvements in client resilience [11][61] - The outlook for fiscal year 2026 remains positive, with expectations for continued growth across all business lines despite potential headwinds from tariffs and inflation [8][11] Other Important Information - The company ended the quarter with approximately $867 million in unrestricted cash and investment securities, reflecting a decline due to bonus payments made in May [20][21] - The hiring environment remains strong, with three new managing directors added in the first quarter, indicating a commitment to expanding talent across the organization [10][80] Q&A Session Summary Question: Insights on Corporate Finance market improvement - Management noted that while there has been improvement quarter by quarter, the market remains uncertain, and they are seeing resilience in client adjustments to current conditions [26][27] Question: Backlog trends and sector performance - Management refrained from commenting on backlog specifics but indicated solid performance across sectors, with EMEA lagging behind the U.S. [29][30] Question: Quality of assets and deal activity - Management acknowledged a strong environment but noted that the volume of deals is expected to pick up after Labor Day, with a focus on the quality of assets moving [34][35] Question: Non-compensation expense growth expectations - Management confirmed expectations for high single-digit growth in non-compensation expenses for the year, driven by headcount growth [36][48] Question: Restructuring market outlook - Management indicated that restructuring activity remains elevated, with a strong pipeline across both in-court and out-of-court transactions [41][43] Question: Growth of the secondaries business - Management expressed satisfaction with the growth of the secondaries business, indicating a positive outlook for its integration within the Capital Solutions group [44][45] Question: Sponsor market activity post-Labor Day - Management expects an increase in sponsor activity after Labor Day, noting that current activity levels are muted but showing signs of improvement [54][55] Question: Hiring strategy and focus areas - Management emphasized a commitment to hiring across all sectors, without a specific focus on any particular business or sector [81][82]