Core Insights - Houlihan Lokey (HLI) reported revenue of $659.45 million for the quarter ended September 2025, marking a year-over-year increase of 14.7% and exceeding the Zacks Consensus Estimate of $654.33 million by 0.78% [1] - The company's EPS for the same period was $1.84, up from $1.46 a year ago, and also surpassed the consensus EPS estimate of $1.69 by 8.88% [1] Financial Performance Metrics - The number of managing directors in Corporate Finance was 242, below the average estimate of 251 by two analysts [4] - The number of managing directors in Financial and Valuation Advisory matched the average estimate of 45 [4] - The number of managing directors in Financial Restructuring was 58, slightly below the average estimate of 59 [4] - Revenue from Corporate Finance was $438.66 million, slightly above the average estimate of $437.22 million [4] - Revenue from Financial Advisory Services was $86.99 million, exceeding the average estimate of $84.42 million [4] - Revenue from Financial Restructuring was $133.8 million, also above the average estimate of $132.69 million [4] Stock Performance - Shares of Houlihan Lokey have returned -1.2% over the past month, while the Zacks S&P 500 composite has changed by +3.6% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Performance - Revenues for the second quarter of fiscal 2026 were $659 million, a 14.6% increase from $575 million in the same quarter of fiscal 2025[2] - Diluted EPS for the second quarter of fiscal 2026 was $1.63, compared to $1.37 for the same quarter last year, representing an increase of 19%[2] - Adjusted diluted EPS for the second quarter of fiscal 2026 was $1.84, up from $1.46 in the prior year, reflecting a 26% increase[2] - Revenues for the three months ended September 30, 2025, increased to $659,452,000, up 14.7% from $574,957,000 in the same period of 2024[30] - Net income for the six months ended September 30, 2025, was $209,314,000, representing a 14.7% increase compared to $182,489,000 for the same period in 2024[30] - Adjusted net income for the three months ended September 30, 2025, was $126,765,000, compared to $100,288,000 in 2024, reflecting a 26.4% increase[31] - Operating income for the three months ended September 30, 2025, was $151,341,000, an increase of 15.8% from $130,669,000 in the same period of 2024[30] - Earnings per share (fully diluted) for the three months ended September 30, 2025, was $1.63, compared to $1.37 in 2024, marking an increase of 19.0%[30] Revenue Breakdown - Corporate Finance revenues increased by 21% to $439 million, driven by a higher number of closed transactions[13] - Financial Restructuring revenues rose by 2% to $134 million, attributed to favorable market conditions for restructuring transactions[15] - Financial and Valuation Advisory revenues grew by 10% to $87 million, supported by an increase in Fee Events in the M&A markets[17] Expenses and Liabilities - Compensation expenses for the second quarter were $423 million, representing 64.2% of revenues, up from 62.7% in the prior year[10] - The company reported an increase in employee compensation and benefits to $405,562,000 for the three months ended September 30, 2025, up from $353,599,000 in 2024, reflecting a 14.7% rise[30] - Total liabilities decreased to $1,546,473,000 as of September 30, 2025, from $1,644,831,000 as of March 31, 2025, indicating a reduction of approximately 5.9%[28] Cash and Assets - As of September 30, 2025, the company had $1.11 billion in unrestricted cash and cash equivalents[20] - Total assets as of September 30, 2025, were $3,793,365,000, a slight decrease from $3,819,708,000 as of March 31, 2025[28] - Goodwill increased to $1,292,121,000 as of September 30, 2025, from $1,284,589,000 as of March 31, 2025, showing a growth of 0.6%[28] Dividends and Tax - The effective tax rate for the second quarter was 30.2%, compared to 31.3% in the same quarter last year[12] - The company declared a quarterly cash dividend of $0.60 per share, payable on December 15, 2025[20] Market Position - The company has been recognized as the No. 1 investment bank for all global M&A transactions for the past two years, highlighting its strong market position[24]

Core Insights - Houlihan Lokey (HLI) reported quarterly earnings of $1.84 per share, exceeding the Zacks Consensus Estimate of $1.69 per share, and showing an increase from $1.46 per share a year ago, resulting in an earnings surprise of +8.88% [1] - The company achieved revenues of $659.45 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.78% and up from $574.96 million year-over-year [2] - Houlihan Lokey has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The sustainability of Houlihan Lokey's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.87, with projected revenues of $714.37 million, and for the current fiscal year, the EPS estimate is $7.64 on revenues of $2.7 billion [7] Industry Context - The Financial - Miscellaneous Services industry, to which Houlihan Lokey belongs, is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable outlook for stocks in this sector [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5][6]

Financial Data and Key Metrics Changes - The company reported revenues of $659 million for the quarter, a 15% increase year-over-year, and adjusted earnings per share of $1.84, up 26% compared to the same period last year [4][5] - Adjusted compensation expenses were $406 million, up from $354 million year-over-year, maintaining an adjusted compensation expense ratio of 61.5% [9][10] - The adjusted effective tax rate for the quarter was 29.7%, down from 31.3% in the same quarter last year [10][11] Business Line Data and Key Metrics Changes - Corporate finance revenues were $439 million, a 21% increase year-over-year, with 171 transactions closed, up from 131 in the same period last year [5][8] - Financial restructuring revenues reached $134 million, a 2% increase, with 37 transactions closed compared to 33 last year [6][8] - Financial and valuation advisory generated $87 million in revenues, a 10% increase, with 1,075 fee events, up from 903 in the same period last year [6][8] Market Data and Key Metrics Changes - The non-U.S. business performed well, particularly in the EMEA and Asia-Pacific regions, showing solid growth and improving key indicators [6] - The company noted that EMEA and Asia have outperformed the U.S. corporate finance business year-to-date, indicating strong growth potential in these regions [48] Company Strategy and Development Direction - The company is focused on maintaining strong growth in corporate finance and capital solutions, with expectations for a strong fourth quarter relative to the third quarter [5][6] - The acquisition pipeline remains strong, with ongoing efforts to attract senior talent and expand the global platform [6][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the macro environment, noting that easing interest rates and improving market conditions have bolstered deal-making confidence [4][5] - The outlook for the second half of fiscal 2026 is positive, with expectations for year-over-year growth if current conditions persist [7][12] Other Important Information - The company ended the quarter with approximately $1.1 billion in unrestricted cash and investment securities, with plans to evaluate balance sheet flexibility for acquisitions versus share repurchases [12] - The company repurchased approximately 210,000 shares during the quarter [12] Q&A Session Summary Question: Trends in restructuring business and new business activity - Management acknowledged a slowdown in new business activity in restructuring but noted a robust backlog supporting continued strength [17][18] Question: Corporate finance activity and sponsor engagement - Management confirmed an uptick in corporate finance activity, particularly after Labor Day, with sponsors actively engaging in the market [20][22][23] Question: Growth profile of financial and valuation advisory - Management described the growth profile as consisting of cyclical and non-cyclical segments, with expectations for growth in strong M&A cycles [27][29] Question: Impact of macro-negative headlines on deal-making - Management indicated that recent macro-negative headlines have not materially impacted client sentiment or acquisition strategies [68] Question: Share repurchase strategy - Management clarified that share repurchases are primarily driven by employee compensation needs and available excess cash, rather than stock performance [70][71]

Financial Data and Key Metrics Changes - The company reported revenues of $659 million for the quarter, a 15% increase year-over-year, and adjusted earnings per share of $1.84, up 26% compared to the same period last year [4] - Adjusted compensation expenses were $406 million, compared to $354 million in the same period last year, maintaining an adjusted compensation expense ratio of 61.5% [10] - The adjusted effective tax rate for the quarter was 29.7%, down from 31.3% in the same quarter last year, primarily due to decreased state taxes and taxes from foreign operations [11] Business Line Data and Key Metrics Changes - Corporate finance revenues were $439 million, a 21% increase year-over-year, with 171 transactions closed, up from 131 in the same period last year [5][9] - Financial restructuring revenues reached $134 million, a 2% increase year-over-year, with 37 transactions closed, compared to 33 in the same quarter last year [7][9] - Financial and valuation advisory generated $87 million in revenues, a 10% increase year-over-year, with 1,075 fee events, up from 903 in the same period last year [9] Market Data and Key Metrics Changes - The company noted strong performance in non-U.S. markets, particularly in EMEA and Asia-Pacific, with solid growth and improving key indicators [6] - The backlog in corporate finance suggests a shift in deal timing, with expectations for a strong fourth quarter relative to the third quarter [6] Company Strategy and Development Direction - The company is focused on maintaining growth through strategic acquisitions and hiring senior talent, with five new Managing Directors added in the quarter [6] - The outlook for the second half of fiscal 2026 is positive, with expectations for year-over-year growth if current conditions persist [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the improving macro-environment, noting that capital markets are open and capital is plentiful, which has increased confidence in deal-making [4] - The company acknowledged some slowdown in new business activity in restructuring but emphasized a robust backlog supporting continued strong performance [18] Other Important Information - The company ended the quarter with approximately $1.1 billion in unrestricted cash and investment securities, with plans to evaluate balance sheet flexibility for acquisitions versus share repurchases [12] - The company repurchased approximately 210,000 shares during the quarter [12] Q&A Session Summary Question: Trends in restructuring business and new business activity - Management noted a slowdown in new business activity in restructuring but emphasized a robust backlog supporting continued strength [18] Question: Corporate finance activity and sponsor engagement - Management confirmed an uptick in corporate finance activity and noted that sponsors have been active since the beginning of the fiscal year [20][22] Question: Growth profile of financial and valuation advisory - Management explained that the growth profile is influenced by M&A cycles, with a portion of the business being non-cyclical [26][28] Question: Impact of macro-negative headlines on deal-making - Management indicated that recent macro-negative headlines have not materially impacted client sentiment or acquisition strategies [67] Question: Share repurchase strategy - Management clarified that share repurchases are primarily to offset employee compensation dilution and are evaluated based on acquisition opportunities [69]

Financial Data and Key Metrics Changes - The company reported revenues of $659 million for the quarter, a 15% increase year-over-year, and adjusted earnings per share of $1.84, up 26% compared to the same period last year [4][10] - Adjusted compensation expenses were $406 million, compared to $354 million in the same period last year, maintaining an adjusted compensation expense ratio of 61.5% [11][12] - The adjusted effective tax rate for the quarter was 29.7%, down from 31.3% in the same quarter last year, primarily due to decreased state taxes and taxes from foreign operations [12] Business Line Data and Key Metrics Changes - Corporate finance generated $439 million in revenues, a 21% increase year-over-year, with 171 transactions closed, up from 131 in the same period last year [5][10] - Financial restructuring revenues were $134 million, a 2% increase year-over-year, with 37 transactions closed, compared to 33 in the same quarter last year [6][10] - Financial and valuation advisory produced $87 million in revenues, a 10% increase year-over-year, with 1,075 fee events, up from 903 in the same period last year [10] Market Data and Key Metrics Changes - The non-U.S. business performed well, with solid growth in both EMEA and Asia-Pacific regions, indicating consistent brand growth and momentum outside the U.S. [8] - The company noted that EMEA and Asia have outperformed the U.S. corporate finance business year-to-date, reflecting strong activity levels in those regions [39] Company Strategy and Development Direction - The company is optimistic about the second half of fiscal 2026, expecting continued year-over-year growth if current conditions persist [4][9] - The company is focused on strategic acquisitions and hiring senior talent to drive growth, with a strong acquisition pipeline and recent hires in key regions [8][50] Management's Comments on Operating Environment and Future Outlook - Management highlighted that the macro environment has improved, with easing interest rates and a more stable deal-making environment, which is expected to enhance performance in the second half of the fiscal year [4][8] - There is recognition of episodic shocks in restructuring, but the backlog remains robust, supporting expectations for continued strong performance [18][33] Other Important Information - The company ended the quarter with approximately $1.1 billion in unrestricted cash and investment securities, with plans to evaluate balance sheet flexibility for acquisitions versus share repurchases [13] - The company repurchased approximately 210,000 shares during the quarter [13] Q&A Session Summary Question: Is there a slowdown in new business activity in restructuring? - Management acknowledged a slight slowdown in the pace of new business activity but emphasized that the backlog remains robust [18] Question: Are sponsors returning to the market? - Management confirmed that sponsor activity has been increasing since the beginning of the fiscal year, with a significant uptick noted after Labor Day [20][21] Question: What is the growth outlook for financial and valuation advisory? - Management indicated that the growth profile is influenced by cyclical and non-cyclical segments, with expectations for growth in strong M&A cycles [24][26] Question: How does the company view the impact of macro-negative headlines? - Management stated that recent macro-negative headlines have not materially impacted client sentiment or acquisition strategies [58] Question: How does the company approach share repurchases? - Management clarified that share repurchases are primarily driven by employee compensation needs and the availability of excess cash for acquisitions [59]

October 2025 Investor Presentation Disclaimers Forward-Looking Information This presentation contains forward-looking statements. All statements other than statements of historical facts contained in this presentation may be forward-looking statements. The words "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" and other expressions that are predictions of or indicate future ev ...

Core Viewpoint - Houlihan Lokey Inc. (NYSE:HLI) has shown a share price increase of 1.06% to $200.49, with a year-over-year growth of 17.03%, despite a slight decline of 0.42% over the past month, raising questions about potential overvaluation [1]. Group 1: Company Performance - The current share price of Houlihan Lokey is $200.49, reflecting a 1.06% increase in the current market session [1]. - Over the past year, the stock has appreciated by 17.03%, indicating strong performance [1]. - However, the stock has experienced a minor decline of 0.42% in the last month, suggesting some volatility [1]. Group 2: P/E Ratio Analysis - The P/E ratio of Houlihan Lokey is 33.4, which is higher than the Capital Markets industry average P/E ratio of 27.86, suggesting that investors may expect better future performance from the company compared to its peers [6]. - A higher P/E ratio could indicate that the stock is overvalued, as it reflects investor optimism about future earnings [5][6]. - The P/E ratio is a useful metric for assessing market performance but should not be used in isolation; it must be considered alongside other financial metrics and qualitative factors [10].

Core Insights - Houlihan Lokey, Inc. has announced the appointment of Jason Cohen as a Managing Director in its Capital Solutions Group [1] - Jason Cohen brings over 20 years of experience in the life sciences and pharmaceutical sectors [1] - Cohen's previous experience includes 18 years at Capital On, indicating a strong background in healthcare capital solutions [1] Company Developments - The addition of Jason Cohen is aimed at strengthening the firm's healthcare capital solutions efforts [1] - Cohen will collaborate with Brent Shepherd and Neha Shah in New York to enhance the firm's capabilities in this sector [1]