Core Insights - Morgan Stanley and Houlihan Lokey emerged as the leading financial advisors in consumer M&A for 2025, with Morgan Stanley leading in deal value and Houlihan Lokey in deal volume [1][2]. Summary by Category Deal Value - Morgan Stanley advised on transactions totaling $79.71 billion, significantly outpacing its peers [1][3]. - The firm completed nine deals, including four valued at over $1 billion, with two classified as mega deals exceeding $10 billion [3]. - Notable transactions included advising Keurig Dr Pepper on its acquisition of JDE Peet's for €15.7 billion ($18.36 billion) [3]. Deal Volume - Houlihan Lokey maintained its position as the top advisor by volume, handling 30 transactions in 2025 [1][2]. - The firm's focus was primarily in the food sector, exemplified by Kraft Heinz's asset sale in Italy [4]. Competitor Rankings - Goldman Sachs ranked second in deal value with $65.13 billion across 16 deals, followed by JPMorgan with $57.3 billion from 11 deals [6]. - In terms of deal volume, Rothschild & Co. ranked second with 20 deals, followed by Spayne Lindsay with 17 [6]. Year-over-Year Changes - Morgan Stanley's deal value saw a year-over-year increase of 8821%, while Houlihan Lokey's deal volume decreased by 32% compared to 2024 [5].

Core Viewpoint - Kaskela Law LLC has initiated an investigation on behalf of Houlihan Lokey, Inc. shareholders to assess potential violations of securities laws or breaches of fiduciary duties by the company and its officers in relation to recent corporate actions [1]. Group 1 - The investigation is focused on determining whether Houlihan Lokey and its leadership acted inappropriately concerning the interests of investors [1]. - Shareholders of Houlihan Lokey are encouraged to reach out to Kaskela Law LLC for more information regarding their legal rights and options [2]. - Kaskela Law LLC specializes in representing investors in cases of securities fraud, corporate governance, and merger & acquisition litigation on a contingent basis [2].

Group 1 - Goldman Sachs was the leading financial adviser by deal value for construction sector M&A in 2025, advising on deals worth $43.3 billion [1] - Bank of America ranked second with $41.9 billion in construction M&A deals [1] - JPMorgan ranked third by value with $35.5 billion, followed by Morgan Stanley at $28.3 billion and Mizuho Financial Group at $24.4 billion [2] Group 2 - JPMorgan led by volume with 19 transactions, while Bank of America followed with 16 deals, and Goldman Sachs advised on 15 deals [2] - Both JPMorgan and Goldman Sachs saw close to a three-fold increase in deal volume and value in 2025 compared to the previous year, improving their rankings significantly [3] - Goldman Sachs moved from sixth to first by value, while JPMorgan jumped from 22nd to first by volume [3] Group 3 - GlobalData's league tables are based on real-time tracking of various reliable sources, with a dedicated team of analysts monitoring these sources for in-depth deal details [4] - The company also seeks submissions of deals from leading advisers to enhance data robustness [5]

Group 1 - The Value Lab focuses on long-only value investment ideas, aiming for a portfolio yield of about 4% and has performed well over the last 5 years by engaging in international markets [1] - Houlihan Lokey, Inc. (HLI) is experiencing challenges, with restructuring efforts impacted by timing effects in Q4 and a higher forward P/E ratio compared to Piper Sandler [2] - The Valkyrie Trading Society is a team of analysts that shares high conviction investment ideas, targeting downside-limited and non-correlated returns in the current economic environment [2] Group 2 - The Value Lab offers members real-time portfolio updates, 24/7 chat support, regular global market news reports, feedback on stock ideas, monthly new trades, quarterly earnings write-ups, and daily macro opinions [2]

Group 1 - The Value Lab focuses on long-only value investment ideas, aiming for a portfolio yield of about 4% and has performed well over the last 5 years by engaging in international markets [1] - Houlihan Lokey, Inc. (HLI) is experiencing challenges, with restructuring efforts impacted by timing effects in Q4 and a higher forward P/E ratio compared to Piper Sandler [2] - The Valkyrie Trading Society is a team of analysts that shares high conviction investment ideas, targeting downside-limited and non-correlated returns in the current economic environment [2] Group 2 - The Value Lab offers members real-time portfolio updates, 24/7 chat support, regular global market news reports, feedback on stock ideas, monthly new trades, quarterly earnings write-ups, and daily macro opinions [2]

Revenue Performance - Revenues for the three months ended December 31, 2025, were $717.1 million, a 13% increase from $634.4 million in the same period of 2024[93]. - For the nine months ended December 31, 2025, revenues reached $1.98 billion, reflecting a 15% increase compared to $1.72 billion in the prior year[97]. - Revenues for Corporate Finance increased by 12% to $473.7 million for the three months ended December 31, 2025, compared to $421.6 million for the same period in 2024[105]. - Financial Restructuring revenues increased by 19% to $156.3 million for the three months ended December 31, 2025, compared to $130.9 million for the same period in 2024[109]. - Revenues for Financial and Valuation Advisory increased by 6% to $87.1 million for the three months ended December 31, 2025, compared to $81.9 million for the same period in 2024[113]. Operating Expenses - Operating expenses for the three months ended December 31, 2025, were $556.3 million, up 12% from $498.3 million in the same period of 2024[94]. - Compensation expenses for the three months ended December 31, 2025, totaled $458.6 million, a 14% increase from $403.0 million in the same period of 2024[94]. - Non-compensation expenses for the three months ended December 31, 2025, were $97.8 million, a 3% increase from $95.4 million in the same period of 2024[94]. - Corporate expenses increased by 11% to $70.0 million for the three months ended December 31, 2025, compared to $63.0 million for the same period in 2024[117]. Profitability - Net income for the three months ended December 31, 2025, was $116.5 million, representing a 22% increase from $95.3 million in the same period of 2024[92]. - Net income for the nine months ended December 31, 2025, was $325.9 million, representing a 17% increase from $277.8 million in the prior year[126]. - Segment profit for Corporate Finance rose by 15% to $150.7 million for the three months ended December 31, 2025, compared to $131.6 million in the prior year[106]. - Segment profit for Financial Restructuring grew by 30% to $57.6 million for the three months ended December 31, 2025, compared to $44.2 million in the prior year[110]. - Segment profit for Financial and Valuation Advisory decreased by 4% to $22.4 million for the three months ended December 31, 2025, compared to $23.3 million in the prior year[114]. Taxation - The provision for income taxes for the three months ended December 31, 2025, was $53.1 million, with an effective tax rate of 31.3%[96]. - For the nine months ended December 31, 2025, the provision for income taxes was $101.9 million, reflecting an effective tax rate of 23.8%[100]. Cash Flow and Investments - Net cash provided by operating activities decreased by 16% to $411.1 million for the nine months ended December 31, 2025, compared to $490.2 million in the prior year[126]. - Investing activities for the nine months ended December 31, 2025, resulted in a net inflow of $51.8 million, compared to a net outflow of $158.7 million in 2024, indicating a significant improvement in investment cash flow[127][128]. - Financing activities showed a net outflow of $400.2 million for the nine months ended December 31, 2025, which is an increase from a net outflow of $238.0 million in 2024, representing a rise of approximately 68.2%[127][128]. Foreign Currency Impact - The net impact of foreign currency fluctuations on other comprehensive income for the nine months ended December 31, 2025, was $33.8 million, compared to a loss of $19.7 million in 2024, indicating a positive shift in currency impact[135]. - A hypothetical 10% depreciation in the U.S. Dollar would have resulted in an increase in other comprehensive income of approximately $106 million for the nine months ended December 31, 2025[135]. - The net impact of foreign currency fluctuations for the three months ended December 31, 2025, was $(0.4) million, a significant improvement from $(48.1) million in the same period of 2024[135]. Other Considerations - There have been no material changes to the company's known contractual obligations, with a new routine lease commitment entered during the quarter to support ongoing operations[129]. - There were no significant changes to critical accounting policies and estimates during the nine months ended December 31, 2025[131]. - The company reported no material changes in exposure to market risk compared to the previous fiscal year[133][134]. - The company continues to review estimates and assumptions periodically, with actual results potentially differing from those estimates[130].

Core Insights - Houlihan Lokey is expanding its specialty distribution capabilities in Europe with the hiring of Philipp Widmann as Managing Director and Henning Stoltze as Director, both from Baird [1] - The firm aims to enhance its advisory services in the specialty distribution sector, leveraging the extensive experience and networks of the new hires [1] - The expansion reflects the ongoing growth of Houlihan Lokey's Industrials Group in Europe, with recent additions aimed at strengthening expertise in various subsectors [1] Group 1: New Appointments - Philipp Widmann joins as Managing Director to lead the new team in Frankfurt, bringing over a decade of experience in M&A and capital markets transactions in the business-to-business distribution sector [1] - Henning Stoltze joins as Director, focusing on the specialty distribution sector and will also be based in Frankfurt [1] Group 2: Strategic Goals - The appointments are part of Houlihan Lokey's strategy to deliver bespoke, cross-border solutions to clients in Europe, enhancing its market leadership in the specialty distribution sector [1] - The firm aims to build a global platform that integrates North American and European expertise, enhancing advisory capabilities across both regions [1] Group 3: Market Position - Houlihan Lokey's Industrials Group has been recognized as the No. 1 M&A advisor for global industrials transactions under $5 billion, advising on a total of 71 deals in 2025 [1] - The firm emphasizes its commitment to delivering innovative, high-impact solutions across diverse markets and subsectors, supported by a collaborative culture and deep sector knowledge [1]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgent need for energy to support its growth [1][2][3] Investment Opportunity - A specific company is highlighted as a potential investment opportunity, possessing critical energy infrastructure assets that are essential for meeting the increasing energy demands of AI data centers [3][7] - This company is not a chipmaker or cloud platform but is positioned to benefit significantly from the anticipated surge in electricity demand driven by AI technologies [3][6] Energy Demand and Infrastructure - AI technologies, particularly large language models like ChatGPT, consume vast amounts of energy, comparable to the energy usage of small cities [2] - The company is involved in the U.S. LNG exportation sector, which is expected to grow under the current administration's energy policies [7] - It owns nuclear energy infrastructure assets, placing it at the forefront of America's next-generation power strategy [7] Financial Position - The company is noted for being completely debt-free and holding a significant cash reserve, amounting to nearly one-third of its market capitalization [8] - It is trading at less than 7 times earnings, indicating a potentially undervalued position in the market [10] Market Trends - The company is benefiting from multiple market trends, including the onshoring boom driven by tariffs and the increasing demand for clean energy solutions [14] - There is a growing interest from hedge funds in this company, suggesting that it is gaining recognition among sophisticated investors [9] Future Outlook - The influx of talent into the AI sector is expected to drive continuous innovation and advancements, making investments in AI a strategic move for future growth [12] - The overall sentiment is that investing in AI and its supporting infrastructure is crucial for capitalizing on the technological revolution [15]

Group 1: Core Insights - JPMorgan and Houlihan Lokey are the leading financial advisers for M&A in the TMT sector for 2025, with JPMorgan leading in deal value and Houlihan Lokey in deal volume [1][4] - JPMorgan advised on transactions totaling $435.5 billion, while Houlihan Lokey participated in 94 deals, just short of 100 [1][5] - Morgan Stanley ranks third in deal value with $253.4 billion, followed closely by Goldman Sachs at $237.2 billion and Allen & Company at $235.6 billion [2] Group 2: Transaction Volume - In terms of transaction volume, Morgan Stanley also holds the third position with 59 deals, followed by Goldman Sachs with 49 and Evercore with 43 [3] - JPMorgan advised on 32 billion-dollar deals, including seven mega deals valued over $10 billion, contributing significantly to its lead in deal value [5] - Houlihan Lokey's deal volume was significantly higher than JPMorgan's, which had 65 deals, placing it second in volume [5] Group 3: Data Source and Methodology - GlobalData's league tables are based on real-time tracking of various reliable sources, including company and advisory firm websites [5][6] - A dedicated team of analysts monitors these sources to gather detailed information on each deal, including adviser names [5]

Core Insights - Houlihan Lokey (HLI) reported revenue of $717.07 million for the quarter ended December 2025, marking a year-over-year increase of 13% and exceeding the Zacks Consensus Estimate of $700.2 million by 2.41% [1] - The company's EPS for the same period was $1.94, up from $1.64 a year ago, and also surpassed the consensus EPS estimate of $1.85 by 5.15% [1] Financial Performance Metrics - The stock has returned +2.2% over the past month, outperforming the Zacks S&P 500 composite's +0.8% change, and currently holds a Zacks Rank 3 (Hold) [3] - The number of managing directors in Corporate Finance was 238, below the average estimate of 247 [4] - In Financial and Valuation Advisory, the number of managing directors was 44, compared to the average estimate of 51 [4] - The revenue from Corporate Finance was $473.69 million, slightly below the estimated $475.38 million [4] - Revenue from Financial Advisory Services was $87.13 million, below the estimated $91.21 million [4] - Revenue from Financial Restructuring was $156.25 million, exceeding the estimated $133.61 million [4]