Financial Data and Key Metrics Changes - The company reported revenues of $605 million for the first quarter, an 18% increase year-over-year, and adjusted earnings per share of $2.14, up 75% compared to the same quarter last year [5][6][10] - 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% [13][14] - Adjusted non-compensation expenses increased to $94 million from $80 million year-over-year, with a non-compensation expense ratio of 15.6% [14][15] 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 [6][11] - Financial Restructuring revenues were $128 million, a 9% increase, with 35 transactions closed compared to 33 in the same quarter last year [7][12] - Financial and Valuation Advisory produced $79 million in revenues, a 16% increase, with 957 fee events, up from 847 [8][12] Market Data and Key Metrics Changes - The U.S. market continues to outperform EMEA in terms of revenue and activity levels, with expectations that this trend will persist [11][12][56] - The company noted that while the sponsor activity has been muted, there are signs of improvement expected post-Labor Day [54][55] 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][10] - The company is committed to hiring senior talent and expanding its workforce through both organic growth and strategic acquisitions [9][78] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the business environment, acknowledging ongoing volatility and uncertainty [61] - The outlook for fiscal year 2026 remains positive, with expectations for continued growth across all business lines [10][19] Other Important Information - The company hosted the inaugural Houlihan Lokey ONE conference, which was well-received, showcasing its global reach and client engagement [9] - The adjusted effective tax rate for the quarter was negative 0.8%, a significant decrease from 31.2% in the same quarter last year, due to changes in stock-based compensation accounting [18][19] Q&A Session Summary Question: Insights on Corporate Finance market improvement - Management noted that while there is improvement quarter by quarter, it is not necessarily consistent month by month, with clients adapting to market conditions [25][26] 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. [28][29] 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 [33][34] Question: Non-compensation expense growth expectations - Management confirmed expectations for high single-digit growth in non-compensation expenses for the year, despite a higher first quarter [36][37] Question: Restructuring market outlook - Management indicated that both in-court and out-of-court restructuring activities remain strong, with a good pipeline expected to continue [41][42] Question: Growth of the secondaries business - Management expressed satisfaction with the growth of the secondaries business, which is integrated within the Capital Solutions group [44][45] Question: Sponsor market activity post-Labor Day - Management expects an increase in sponsor activity after Labor Day, consistent with broader market trends [54][55] Question: Hiring strategy and focus areas - Management emphasized a commitment to hiring across all sectors, without specific focus areas, driven by growth opportunities [78][80]

Company Overview - Houlihan Lokey has 33 locations worldwide and 2,677 global employees, including 347 managing directors[11] - The firm's revenue reached $2.5 billion for the last twelve months ended June 30, 2025[11] - The average tenure of the Executive Management Team and Operating Committee Team is over 25 years[15] - No single individual generated more than 2% of the firm's revenues[24] Financial Performance - The company experienced strong revenue growth with a five-year Compound Annual Growth Rate (CAGR) of 16%[19] - Adjusted pre-tax income grew at a CAGR of 17% over the same five-year period[19] - For the three months ended June 30, 2025, revenues were $605.349 million compared to $513.609 million for the three months ended June 30, 2024[130] - Adjusted net income for the three months ended June 30, 2025, was $148.005 million, or $2.14 per diluted share, compared to $84.305 million, or $1.22 per diluted share for the three months ended June 30, 2024[130] Business Segments - Corporate Finance generated $1.597 billion in revenue, representing 64% of the total, Financial Restructuring $555 million (23%), and Financial and Valuation Advisory $329 million (13%) for the last twelve months ended June 30, 2025[71] - The Corporate Finance group closed 573 transactions, Financial Restructuring 147, and Financial and Valuation Advisory 2,460 fee events[71] - The company has increased its Managing Director Headcount by a CAGR of 9% over the last 20 years[59]

Group 1 - Houlihan Lokey (NYSE: HLI) operates in the US-listed independent advisor space, which is characterized by a strong focus on mergers and acquisitions (M&A) [1] - The company's business model is divided into three segments: corporate finance (including M&A advisory and capital markets), financial restructuring (covering bankruptcy filings and liability management), and financial & valuation [1]

Core Viewpoint - The market anticipates Houlihan Lokey (HLI) will report a year-over-year increase in earnings driven by higher revenues when it releases its quarterly results for the period ending June 2025 [1] Earnings Expectations - The upcoming earnings report is expected to be released on July 29, with a consensus EPS estimate of $1.69, reflecting a year-over-year increase of +38.5% [3] - Revenues are projected to reach $588.56 million, which is a 14.6% increase from the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [4] - The Most Accurate Estimate for Houlihan Lokey is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +6.60%, suggesting a bullish outlook from analysts [12] Earnings Surprise History - In the last reported quarter, Houlihan Lokey exceeded the expected EPS of $1.61 by delivering $1.96, resulting in a surprise of +21.74% [13] - Over the past four quarters, the company has beaten consensus EPS estimates three times [14] Additional Insights - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [10] - The current Zacks Rank for Houlihan Lokey is 3, indicating a moderate outlook [12]

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Houlihan Lokey (HLI) , which belongs to the Zacks Financial - Miscellaneous Services industry.When looking at the last two reports, this investment banking company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 15.17%, on average, in the last two quarters.For the most recent quarter, Houlihan Lokey was expec ...

February 2025 Investor Presentation 2 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 ...

Core Insights - Houlihan Lokey, Inc. (HLI) shares increased by 5.4% following the release of its fiscal fourth-quarter results on May 7, 2025, driven by growth in corporate finance, financial and valuation advisory, and financial restructuring businesses, although higher expenses partially offset these gains [1] Financial Performance - HLI reported adjusted earnings per share (EPS) of $1.96 for fiscal Q4 2025, exceeding the Zacks Consensus Estimate by 21.7% and reflecting a 54% year-over-year increase [1] - Total revenues for the quarter rose by 28% year over year to $666.4 million, surpassing the Zacks Consensus Estimate by 6.4% [2] - Income before provision for income taxes increased by 27.3% year over year to $150.3 million [3] - Total operating expenses grew by 26.2% year over year to $527.2 million, attributed to higher employee compensation and benefits, as well as non-compensation expenses [3] - The adjusted compensation expense ratio remained stable at 61.5% [3] Segment Performance - Corporate Finance segment revenues surged by 43.5% year over year to $412.7 million, benefiting from improved average transaction fees and an increase in the number of closed transactions, with Managing Directors up by 7.6% and closed transactions up by 21.5% [3] - Financial Restructuring revenues improved by 5.9% year over year, supported by an increase in closed transactions and average transaction fees, with Managing Directors and closed transactions rising by 5.6% and 8.6%, respectively [4] - Financial and Valuation Advisory segment revenues increased by 15.1% year over year, driven by a rise in the number of fee events, with Managing Directors up by 7.7% [5] Full-Year Update - For fiscal 2025, total revenues increased by 24.8% year over year to $2.4 billion, while total operating expenses rose by 21.7% to $1.9 billion [6] - Adjusted EPS for the full year rose by 40.1% year over year to $6.29 [6] Financial Position - As of March 31, 2025, HLI had cash and cash equivalents of $971 million, up from $721.2 million at the end of fiscal 2024 [7] - Total assets increased to $3.8 billion from $3.2 billion at the end of fiscal 2024 [7] - Total equity rose to $2.2 billion from $1.8 billion at the end of fiscal 2024 [7] Dividend Update - HLI announced a 5% increase in its cash dividend to 60 cents per share, payable on June 15, 2025, to shareholders of record as of June 2 [9]

Company Overview - As of March 31, 2025, the company had a team of 1,893 financial professionals across 35 offices globally, serving over 2,000 clients annually[19]. - The company employs a total of 2,702 people as of March 31, 2025, reflecting a slight increase from 2,601 in 2024[38]. - Approximately 1,100 present and former employee shareholders collectively own about 24% of the company's equity, promoting a culture of broad employee ownership[35]. Business Segments - The Corporate Finance segment had 240 Managing Directors focusing on mid-cap transactions, which are considered an attractive and underserved market segment[20]. - The M&A business is recognized as one of the most prolific sell-side advisors, consistently selling more companies valued under $1 billion than any competitor[23]. - The Financial Restructuring group, with 57 Managing Directors, is one of the largest in the investment banking industry, focusing on complex restructuring and liability management transactions globally[28]. - The Financial and Valuation Advisory group, consisting of 42 Managing Directors, is known for its expertise in valuation and financial opinions, serving a wide range of clients[33]. Market Presence and Competition - The company has established a significant presence in major industry segments, including technology, healthcare, and financial services, and continues to expand its capabilities through internal promotions and acquisitions[21]. - The company competes with various investment banking firms, including bulge-bracket firms and boutique firms, based on industry knowledge and client relationships[39]. Regulatory Compliance - Regulatory compliance is a significant aspect of the company's operations, with oversight from the SEC and FINRA, ensuring adherence to financial regulations[41]. - The company is subject to various compliance regulations, including the U.S. Foreign Corrupt Practices Act and the UK Bribery Act, to mitigate reputational risks[57]. International Operations and Currency Risk - The company operates through various subsidiaries across Europe, Asia Pacific, the Middle East, and South America, providing regulated and unregulated financial advisory services[46][51][52][56]. - The company maintains cash and cash equivalents primarily in U.S. Dollars, Pound Sterling, Euros, and Yen, facing foreign currency risk due to potential currency movements[206][208]. - For the years ended March 31, 2025, 2024, and 2023, the net impact of foreign currency fluctuations on other comprehensive income was $3.3 million, $(3.8) million, and $(19.5) million, respectively[209]. - As of March 31, 2025, the company had foreign currency forward contracts with an aggregate notional value of $75.0 million and SEK 79.0 million, reflecting a gain in other operating expenses[211]. - The company has been impacted by changes in exchange rates, with potential future impacts increasing as international expansion continues[212]. - The company’s European operations are supported by HLE GmbH, established to mitigate Brexit impacts, and is approved by the German regulatory authority[48][49]. Financial Management - The company regularly reviews accounts receivable and maintains an allowance for credit losses to cover potential losses[207]. - As of March 31, 2025, the HL Voting Trust controls approximately 74.9% of the total voting power of the company, classifying it as a "controlled company" under NYSE rules[60][61].

Group 1 - The article expresses a beneficial long position in the shares of ITJTQ, indicating a positive outlook on the company's stock performance [1] - The author emphasizes the importance of conducting due diligence and research prior to any investment, highlighting the risks associated with short-term trading and options trading [2] - It is noted that past performance is not indicative of future results, and no specific investment recommendations are provided [3]

Revenue Growth - Fiscal Year 2025 revenues reached a record $2.39 billion, up 25% from $1.91 billion in Fiscal Year 2024[2] - Fourth Quarter Fiscal 2025 revenues were $666 million, an increase of 28% compared to $520 million in the same quarter of Fiscal Year 2024[2] - Corporate Finance segment revenues increased by 38% year-over-year for Fiscal Year 2025, totaling $1.53 billion[8] - Fourth Quarter Corporate Finance revenues were $413 million, a 43.7% increase from $288 million in the same quarter of Fiscal Year 2024[21] - Financial Restructuring revenues increased to $165 million for Q4 2025, up from $155 million in Q4 2024, driven by a higher number of closed transactions[23] - Financial and Valuation Advisory revenues rose to $89 million in Q4 2025, compared to $77 million in Q4 2024, attributed to improvements in M&A markets[25] - Revenues for the quarter ended March 31, 2025, were $666.4 million, a 28% increase from $520.5 million in the same quarter of 2024[37] - The company reported an increase in revenues for the year ended March 31, 2025, reaching $2,389,416 thousand, a 25% increase from $1,914,404 thousand in the previous year[38] Earnings Performance - Fiscal Year 2025 diluted EPS was $5.82, compared to $4.11 for Fiscal Year 2024, representing a 41.5% increase[3] - Adjusted Fiscal Year 2025 diluted EPS was $6.29, up from $4.49 in Fiscal Year 2024, marking a 40.1% increase[3] - Net income for the year ended March 31, 2025, was $399.7 million, compared to $280.3 million for the year ended March 31, 2024, representing a 43% increase[37] - Adjusted operating income for the three months ended March 31, 2025, was $171,307 thousand, up 43% from $119,416 thousand in the prior year[38] - Net income (adjusted) for the three months ended March 31, 2025, was $136,307 thousand, a 55% increase compared to $87,763 thousand in the same period of 2024[38] - Diluted EPS attributable to Houlihan Lokey, Inc. (adjusted) for the three months ended March 31, 2025, was $1.96, up 54% from $1.27 in the same period of 2024[38] Expenses and Compensation - Employee compensation and benefits expenses for Fiscal Year 2025 were $1.52 billion, up from $1.21 billion in Fiscal Year 2024, resulting in a GAAP compensation ratio of 63.8%[15] - Adjusted non-compensation expenses for Fiscal Year 2025 were $329 million, compared to $314 million in Fiscal Year 2024, reflecting an increase in operating expenses[16] - Employee compensation and benefits expenses (adjusted) for the three months ended March 31, 2025, were $409,850 thousand, an increase of 28% from $320,077 thousand in the same period of 2024[38] - Non-compensation expenses (adjusted) for the three months ended March 31, 2025, were $85,265 thousand, a slight increase from $80,963 thousand in the same period of 2024[38] Tax and Dividends - The provision for income taxes for Fiscal Year 2025 was $132 million, with an effective tax rate of 24.8%, down from 28.2% in Fiscal Year 2024[17] - The provision for income taxes (adjusted) for the three months ended March 31, 2025, was $44,199 thousand, compared to $37,438 thousand in the same period of 2024[38] - The company announced a 5% increase in the quarterly dividend to $0.60 per share[1] - The company declared a quarterly cash dividend of $0.60 per share, payable on June 15, 2025[27] Transaction Activity - The number of closed transactions in Corporate Finance increased to 147 in Q4 2025, up from 121 in Q4 2024, reflecting a strong market environment[22] - The number of managing directors in Financial Restructuring increased to 57 in 2025 from 54 in 2024, indicating growth in leadership capacity[24] - The average transaction fee on closed transactions in Financial Restructuring increased, although this does not indicate a consistent trend[23] Future Outlook - The company plans to host a conference call on May 7, 2025, to discuss its full year and fourth quarter fiscal 2025 results[28]