Group 1: Earnings Performance - Houlihan Lokey reported quarterly earnings of $1.96 per share, exceeding the Zacks Consensus Estimate of $1.61 per share, and up from $1.27 per share a year ago, representing an earnings surprise of 21.74% [1] - The company posted revenues of $666.42 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 6.42%, compared to year-ago revenues of $520.46 million [2] Group 2: Market Performance - Houlihan Lokey shares have declined approximately 6.2% since the beginning of the year, while the S&P 500 has seen a decline of 4.7% [3] - The current consensus EPS estimate for the upcoming quarter is $1.50 on revenues of $598.13 million, and for the current fiscal year, it is $6.81 on revenues of $2.64 billion [7] Group 3: Industry Outlook - The Financial - Miscellaneous Services industry, to which Houlihan Lokey belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, indicating potential challenges ahead [8] - The estimate revisions trend for Houlihan Lokey is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, suggesting it may underperform the market in the near future [6]

Financial Data and Key Metrics Changes - Revenues for Q4 were $666 million, up 28% year-over-year, and adjusted earnings per share were $1.96, up 54% compared to the same quarter last year [6] - For the fiscal year 2025, total revenues reached $2.4 billion, marking a 25% increase from the previous year, the highest annual revenue in the firm's history [6][10] - Adjusted compensation expenses for Q4 were $410 million, compared to $320 million in the same period last year, maintaining an adjusted compensation expense ratio of 61.5% [14][15] Business Line Data and Key Metrics Changes - Corporate Finance revenues were $413 million for the quarter, a 44% increase year-over-year, with 147 transactions closed, up from 121 in the same period last year [12] - Financial Restructuring revenues were $165 million for the quarter, a 6% increase year-over-year, with 38 transactions closed compared to 35 in the same quarter last year [13] - Financial and Valuation Advisory revenues were $89 million for the quarter, a 15% increase from the same period last year, with 1,224 fee events during the quarter [13] Market Data and Key Metrics Changes - The company noted that the average size of transactions and average transaction fees in Corporate Finance continued to grow, indicating a strengthening brand perception and quality of senior hires [7][8] - The capital markets business, now rebranded as Capital Solutions, had a record year, enhancing the platform with diversified, high-growth, and less volatile revenues [8] Company Strategy and Development Direction - The company executed three acquisitions in fiscal year 2025, expanding its industry, geographic, and product reach, which remains a key component of its growth strategy [7] - The management emphasized the importance of maintaining a diversified business model to navigate volatile market conditions effectively [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued elevated levels of restructuring activity, bolstered by recent market events [30] - The company acknowledged the challenges in forecasting due to current market volatility but noted that pitch level activity and deal processes were proceeding at a normal rate [23][24] Other Important Information - The Board approved a 5.3% increase in the quarterly dividend to $0.60 per share, to be paid in June [20] - The company ended the fiscal year with approximately $1.2 billion in unrestricted cash and equivalents, with a significant portion earmarked for accrued bonuses [19] Q&A Session Summary Question: How have revenues been tracking quarter to date amidst volatility? - Management indicated it is too early to provide meaningful indications but noted that pitch level activity and deal processes are moving at a normal rate [23] Question: What is the outlook for restructuring in light of recent events? - Management expects restructuring to remain at elevated levels, with confidence in continued activity [30] Question: How does the outlook differ between middle market and large scale M&A? - Management confirmed that mid-cap volumes are generally more resilient than large-cap volumes, a trend observed in previous cycles [44] Question: What is the state of the bolt-on acquisition pipeline for fiscal year 2026? - Management stated that discussions around acquisition opportunities remain active and are crucial to the strategic direction of the company [46] Question: How is the Capital Solutions business performing? - Management noted that the Capital Solutions Group continues to grow significantly, driven by various market trends [51] Question: What is the capacity for restructuring in a more stressed macro environment? - Management indicated that there is substantial capacity to handle a larger restructuring environment, with revenue per managing director currently lower than during previous economic downturns [55]

Financial Data and Key Metrics Changes - The company reported revenues of $666 million for the fourth quarter, representing a 28% increase year-over-year, and adjusted earnings per share of 1.96, up 54% compared to the same quarter last year [5] - For the fiscal year 2025, total revenues reached $2.4 billion, marking a 25% increase from the previous year and the highest annual revenue in the firm's history [5][6] - Adjusted compensation expenses for the quarter were $410 million, compared to $320 million for the same period last year, maintaining an adjusted compensation expense ratio of 61.5% [14][15] Business Line Data and Key Metrics Changes - Corporate Finance revenues were $413 million for the quarter, up 44% year-over-year, with 147 transactions closed, an increase from 121 in the same period last year [12] - Financial Restructuring revenues reached $165 million for the quarter, a 6% increase compared to the same period last year, with 38 transactions closed [13] - Financial and Valuation Advisory revenues were $89 million for the quarter, a 15% increase from the same period last year, with 1,224 fee events during the quarter [13] Market Data and Key Metrics Changes - The company noted that its Corporate Finance business outside the U.S. continued to show upward trends in transaction size and fees, with a strong performance in capital markets, now rebranded as Capital Solutions [6][7] - The company highlighted that certain sectors and geographies are more impacted by current market conditions, indicating a bifurcation in the M&A market [22][24] Company Strategy and Development Direction - The company emphasized that acquisitions are a significant driver of growth, having closed three acquisitions in the fiscal year, which expanded its industry, geographic, and product reach [6] - The management expressed confidence in the restructuring business, expecting elevated revenues in fiscal year 2026, supported by a strong fourth quarter performance [9][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in forecasting due to market volatility but noted that pitch activity and deal processes are proceeding at a normal rate [22] - The company is optimistic about its diversified business model's ability to handle volatile market conditions, indicating that it is well-positioned to advise both winners and losers in the current environment [10][11] Other Important Information - The company ended the fiscal year with approximately $1.2 billion in unrestricted cash and equivalents, with a significant portion earmarked for accrued bonuses [18] - The Board approved a 5.3% increase in the quarterly dividend to $0.60 per share, to be paid in June [19] Q&A Session Summary Question: How have revenues been tracking quarter to date amidst volatility? - Management indicated it is too early to provide meaningful indications but noted that pitch activity and deal processes are moving at a normal rate [22] Question: What is the outlook for restructuring given recent events? - Management expects restructuring to remain at elevated levels, with confidence in continued activity in the restructuring arena [28][30] Question: How does the outlook differ between middle market and large scale M&A? - Management confirmed that mid-cap volumes are generally more resilient than large-cap volumes, a trend observed in previous cycles [42] Question: What is the state of the bolt-on acquisition pipeline for fiscal year 2026? - Management stated that there is an active dialogue regarding various opportunities, emphasizing the importance of acquisitions in their strategic direction [45] Question: How is the Capital Solutions business performing? - Management noted that the Capital Solutions Group continues to grow significantly, with various components driving results in the current market environment [50][52] Question: What factors are driving the strong performance in Financial and Valuation Advisory? - Management attributed the growth to less cyclical components like portfolio valuation and a ramp-up in transaction advisory services as M&A activity continues to recover [58]

Company Overview - Houlihan Lokey has 35 locations worldwide and 2,702 global employees, including 339 managing directors as of March 31, 2025[11] - The firm reported $2.4 billion in revenue for the last twelve months (LTM) ended March 31, 2025[11] - The company's culture emphasizes client-centricity, an entrepreneurial spirit, collaboration, a solution-oriented approach, and data-informed decision-making[8] 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 fiscal year 2025, the adjusted pre-tax margin was 25.9%[113] Business Segments - Corporate Finance generated $1.527 billion in revenue, representing 64% of the total revenue for the LTM ended March 31, 2025[71] - Financial Restructuring contributed $544 million, accounting for 23% of the total revenue for the LTM ended March 31, 2025[71] - Financial and Valuation Advisory brought in $318 million, which is 13% of the total revenue for the LTM ended March 31, 2025[71] Market Position - Houlihan Lokey is ranked as the No 1 Global M&A Advisor[79] - The firm is also recognized as a Top Global Restructuring Firm[90] - Houlihan Lokey is the No 1 Global M&A Fairness Opinion Advisor over the past 25 years[95]

Core Viewpoint - Houlihan Lokey (HLI) is anticipated to report a year-over-year increase in earnings and revenues for the quarter ended March 2025, with earnings expected to be $1.54 per share, reflecting a +21.3% change, and revenues projected at $626.21 million, up 20.3% from the previous year [1][3]. Group 1: Earnings Expectations - The upcoming earnings report is scheduled for May 7, and the stock may rise if the reported numbers exceed expectations, while a miss could lead to a decline [2]. - The consensus EPS estimate has been revised down by 3.47% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Houlihan Lokey is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -9.55%, suggesting a bearish outlook from analysts [10][11]. Group 2: Earnings Surprise Prediction - The Zacks Earnings ESP model compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the premise that recent revisions may provide more accurate insights [6]. - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3, which historically leads to a positive surprise nearly 70% of the time [8]. - Houlihan Lokey's current Zacks Rank is 4, making it challenging to predict an earnings beat conclusively [11]. Group 3: Historical Performance - In the last reported quarter, Houlihan Lokey exceeded the expected earnings of $1.51 per share by delivering $1.64, resulting in a surprise of +8.61% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Group 4: Market Reactions - An earnings beat or miss may not solely dictate stock movement, as other factors can influence investor sentiment [14]. - While betting on stocks expected to beat earnings increases the odds of success, it is essential to consider other influencing factors before making investment decisions [15]. - Overall, Houlihan Lokey does not currently appear to be a compelling candidate for an earnings beat, and investors should monitor additional factors [16].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2024 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to ______________ Commission File Number: 001-37537 Houlihan Lokey, Inc. (Address of principal executive offices) (Zip Code) (310) 553-8871 (Registrant's telep ...

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Sco ...

Houlihan Lokey, Inc. (NYSE: HLI ) , though based in Los Angeles, operates across the Americas, Europe, the Middle East, and the Asia-Pacific, making its presence very much a global one. An independent investment bank since its foundingThe mission of Grassroots Trading rests on the following principles: providing objective, unbiased, and balanced research, backed by solid data and completely void of emotional influences or preference for companies; focusing on small- to mid-cap companies, offering the Seekin ...

The financial advisory firm's quarterly results significantly surpassed expectations.Houlihan Lokey (HLI -2.31%), an independent financial advisory services firm, announced its fiscal 2025 third-quarter results after the close of trading on Jan. 28. The firm exceeded expectations with an adjusted EPS of $1.64, topping the $1.52 forecast and well above the prior-year period's $1.22. Revenues rose 24% year over year to $634 million, outpacing the $604 million expected. Overall, Houlihan Lokey delivered a stro ...

Investor Presentation January 2025 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 ...