Houlihan Lokey(US:HLI)2025-10-30 23:06Financial 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]