Houlihan Lokey(US:HLI)2025-05-07 23:08Revenue 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]