Hamilton Lane(HLNE) - 2026 Q2 - Quarterly Results

Financial Performance - GAAP net income for the second quarter was $103.6 million, a 36% increase compared to $75.9 million in the same quarter last year[20]. - Total revenues increased by 27% to $190.9 million, up from $150.0 million year-over-year[21]. - Management and advisory fees rose by 19% to $142.1 million, while incentive fees surged by 47% to $44.6 million[21]. - Total expenses increased by 34% to $111.2 million, with compensation and benefits rising by 40% to $77.0 million[21]. - Income before income taxes increased by 53% to $117.6 million compared to $77.1 million in the prior year[21]. - Net income attributable to Hamilton Lane Incorporated was $70.9 million for the quarter, a 29% increase from $55.0 million in the same quarter last year[21]. - Basic earnings per share of Class A common stock decreased by 24% year-over-year to $1.38, while diluted earnings per share decreased by 23% to $1.37[22]. - Net income attributable to Hamilton Lane Incorporated was $54.98 million, reflecting a 29% increase from the previous year[22]. - Net income attributable to Hamilton Lane for the quarter was $71 million, reflecting a year-over-year increase of 15%[65]. - Adjusted net income grew by 44% year-over-year to $84.1 million for the quarter, and 11% to $155.7 million year-to-date[27]. Assets and Management - Assets under management and supervision reached $1.0 trillion, with $145.4 billion in discretionary assets and $859.8 billion in non-discretionary assets as of September 30, 2025[6]. - Total assets under management reached $145.4 billion, an 11% increase year-over-year[85]. - Fee-earning assets under management (AUM) are defined as assets from which management fees are earned, primarily from customized separate accounts and specialized funds[101]. - The company’s total assets under management (AUM) include customized separate accounts and specialized funds, reflecting the firm’s growth strategy in private markets[100]. Dividends and Shareholder Returns - The company declared a quarterly dividend of $0.54 per share, representing a 10% increase from the previous fiscal year[3]. - The company declared a quarterly dividend of $0.54 per share of Class A common stock[28]. Revenue Growth and Projections - Future outlook indicates continued growth in management and advisory fees, driven by market expansion and new product offerings[22]. - The company anticipates continued growth in management fees, projecting a 6% increase for the six months ended September 30, 2025, compared to the previous year[95]. Expenses and Liabilities - Total liabilities increased to $822.3 million as of September 30, 2025, while total equity rose to $1.16 billion[87]. - The company maintained a modest leverage with $286 million of debt as of September 30, 2025[75]. - Total expenses increased by 34% year-over-year to $111.16 million, with compensation and benefits rising by 40% to $76.99 million[22]. Cash Flow and Investments - Net cash provided by operating activities rose to $247,830 for the six months ended September 30, 2025, compared to $197,145 in 2024, reflecting a growth of about 25.7%[90]. - The company reported a net cash used in investing activities of $(227,916) for the six months ended September 30, 2025, compared to $(25,037) in 2024[90]. - Investments in technology-related and other areas amounted to $215 million, contributing to a strong balance sheet[74]. Market Position and Strategy - The company continues to focus on expanding its investment strategies and enhancing its service offerings in private markets[6]. - Hamilton Lane Incorporated became a publicly-traded entity following its IPO on March 6, 2017[102]. - As of November 4, 2025, Hamilton Lane continues to position itself as a global leader in private markets[108]. Risk Management - Forward-looking statements highlight risks including competition for investment opportunities and the ability to manage obligations under debt agreements[105]. - The company emphasizes the importance of compliance with investment guidelines set by clients to mitigate risks[106]. - The company’s only material asset is its interest in Hamilton Lane Advisors, LLC, which is essential for covering dividends and expenses[105].