Houlihan Lokey(US:HLI)2026-02-03 21:38Revenue Performance - Revenues for the three months ended December 31, 2025, were $717.1 million, a 13% increase from $634.4 million in the same period of 2024[93]. - For the nine months ended December 31, 2025, revenues reached $1.98 billion, reflecting a 15% increase compared to $1.72 billion in the prior year[97]. - Revenues for Corporate Finance increased by 12% to $473.7 million for the three months ended December 31, 2025, compared to $421.6 million for the same period in 2024[105]. - Financial Restructuring revenues increased by 19% to $156.3 million for the three months ended December 31, 2025, compared to $130.9 million for the same period in 2024[109]. - Revenues for Financial and Valuation Advisory increased by 6% to $87.1 million for the three months ended December 31, 2025, compared to $81.9 million for the same period in 2024[113]. Operating Expenses - Operating expenses for the three months ended December 31, 2025, were $556.3 million, up 12% from $498.3 million in the same period of 2024[94]. - Compensation expenses for the three months ended December 31, 2025, totaled $458.6 million, a 14% increase from $403.0 million in the same period of 2024[94]. - Non-compensation expenses for the three months ended December 31, 2025, were $97.8 million, a 3% increase from $95.4 million in the same period of 2024[94]. - Corporate expenses increased by 11% to $70.0 million for the three months ended December 31, 2025, compared to $63.0 million for the same period in 2024[117]. Profitability - Net income for the three months ended December 31, 2025, was $116.5 million, representing a 22% increase from $95.3 million in the same period of 2024[92]. - Net income for the nine months ended December 31, 2025, was $325.9 million, representing a 17% increase from $277.8 million in the prior year[126]. - Segment profit for Corporate Finance rose by 15% to $150.7 million for the three months ended December 31, 2025, compared to $131.6 million in the prior year[106]. - Segment profit for Financial Restructuring grew by 30% to $57.6 million for the three months ended December 31, 2025, compared to $44.2 million in the prior year[110]. - Segment profit for Financial and Valuation Advisory decreased by 4% to $22.4 million for the three months ended December 31, 2025, compared to $23.3 million in the prior year[114]. Taxation - The provision for income taxes for the three months ended December 31, 2025, was $53.1 million, with an effective tax rate of 31.3%[96]. - For the nine months ended December 31, 2025, the provision for income taxes was $101.9 million, reflecting an effective tax rate of 23.8%[100]. Cash Flow and Investments - Net cash provided by operating activities decreased by 16% to $411.1 million for the nine months ended December 31, 2025, compared to $490.2 million in the prior year[126]. - Investing activities for the nine months ended December 31, 2025, resulted in a net inflow of $51.8 million, compared to a net outflow of $158.7 million in 2024, indicating a significant improvement in investment cash flow[127][128]. - Financing activities showed a net outflow of $400.2 million for the nine months ended December 31, 2025, which is an increase from a net outflow of $238.0 million in 2024, representing a rise of approximately 68.2%[127][128]. Foreign Currency Impact - The net impact of foreign currency fluctuations on other comprehensive income for the nine months ended December 31, 2025, was $33.8 million, compared to a loss of $19.7 million in 2024, indicating a positive shift in currency impact[135]. - A hypothetical 10% depreciation in the U.S. Dollar would have resulted in an increase in other comprehensive income of approximately $106 million for the nine months ended December 31, 2025[135]. - The net impact of foreign currency fluctuations for the three months ended December 31, 2025, was $(0.4) million, a significant improvement from $(48.1) million in the same period of 2024[135]. Other Considerations - There have been no material changes to the company's known contractual obligations, with a new routine lease commitment entered during the quarter to support ongoing operations[129]. - There were no significant changes to critical accounting policies and estimates during the nine months ended December 31, 2025[131]. - The company reported no material changes in exposure to market risk compared to the previous fiscal year[133][134]. - The company continues to review estimates and assumptions periodically, with actual results potentially differing from those estimates[130].