Core Insights - Captrust Financial Advisors has acquired Cobblestone Capital Advisors, adding $3.8 billion in client assets to its portfolio [1][2] - The acquisition enhances Captrust's presence in New York, marking its third office in the state and increasing its employee count to 87 [4] Company Overview - Captrust, based in Raleigh, N.C., manages over $1 trillion in assets under advisement and management [1] - Cobblestone Capital Advisors, founded in 1986, specializes in investment and wealth management, including private investments and family office services [3] Leadership and Team - Cobblestone brings 42 employees, including 15 advisors, led by CEO John DiPasquale, Chief Investment Officer Jason Garlock, and Managing Director of Business Development Chris Mooney [2][4] Financial Metrics - Captrust oversees more than $847 billion in nondiscretionary assets and over $237 billion in discretionary assets [5] - The firm has the highest retirement plan assets under administration among registered investment advisors (RIAs) [6] Recent Acquisitions - Prior to the Cobblestone acquisition, Captrust acquired Carolinas Investment Consulting, which had over $1.4 billion in assets [7]

Core Insights - Global Infrastructure Solutions has appointed Scott Kolbrenner as president and chief strategy officer to enhance growth strategies [1][2] - Kolbrenner aims to develop and implement a capital strategy for GISI while collaborating with STO and GISI Consulting Group [2] - The appointment reflects STO Building Group's ongoing executive restructuring and growth initiatives [4][5] Company Developments - Scott Kolbrenner brings nearly 27 years of experience from Houlihan Lokey, where he led the infrastructure services practice [3] - STO Building Group is ranked as the No. 6 contractor in the U.S. by revenue according to Engineering News-Record's 2025 Top 400 Commercial Contractors list [4] - Recent executive appointments at STO include Greg Dunkle as COO, Michael Trovini as the first president, and Scott Allan as the inaugural chief risk officer [5]

Core Viewpoint - New Fortress Energy Inc. is entering restructuring talks due to prolonged project delays impacting its ability to cover debt costs, with advisers signing non-disclosure agreements to explore options for reducing debt and interest expenses [1] Group 1: Debt and Financial Status - The company is seeking a waiver from lenders as it anticipates not meeting requirements for a revolving loan for the quarter ending September 30, which could trigger accelerated repayments [2] - Trading activity in New Fortress' nearly $9 billion debt has increased, particularly ahead of an interest payment due on September 15 for a $237 million first-lien bond, which has seen its trading price drop significantly from 25 cents on the dollar to 11.2 cents [3] - Interest expenses for New Fortress have more than doubled to $420 million from $158 million for the six months ending June 30 compared to the previous year [4] Group 2: Advisory and Creditor Engagement - Various groups of New Fortress Energy debtholders have engaged multiple advisory firms, including Evercore Inc. and Akin Gump Strauss Hauer & Feld, while another group is advised by Paul Weiss Rifkind Wharton & Garrison and Perella Weinberg Partners [5]

Core Insights - Nano Dimension Ltd. has initiated a process to explore a comprehensive range of strategic alternatives aimed at maximizing shareholder value [1] - The company has engaged Guggenheim Partners and Houlihan Lokey as exclusive financial advisors to assist in this strategic review [1] - An executive leadership change has occurred, with David S. Stehlin appointed as the new CEO, replacing Ofir Baharav [1][2] Leadership and Strategy - David S. Stehlin emphasizes the importance of transparency and trust with stakeholders, aiming to focus on fiscal responsibility and targeted growth opportunities [2] - The Board of Directors expresses full confidence in Stehlin's ability to lead the company through this transition, highlighting his extensive experience in technology leadership and M&A initiatives [2] - Stehlin has over 40 years of experience in technology leadership, with a proven track record in developing strategies and overcoming operational challenges [2] Industry Context - Nano Dimension operates in the digital manufacturing sector, providing advanced technologies to industries such as defense, aerospace, automotive, electronics, and medical devices [3] - The company is positioned to benefit from trends in onshoring, national security, and increasing product customization, enabling rapid deployment of high-mix, low-volume production [3]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying those with true potential can be challenging [1] Group 1: Company Overview - Houlihan Lokey (HLI) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 3.6%, but projected EPS growth for this year is expected to be 21.9%, surpassing the industry average of 17.7% [5] Group 2: Financial Metrics - Cash flow growth for Houlihan Lokey is currently at 40.3%, significantly higher than the industry average of 4.7% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 15.9%, compared to the industry average of 11.8% [7] Group 3: Earnings Estimates - Current-year earnings estimates for Houlihan Lokey have been revised upward, with the Zacks Consensus Estimate increasing by 2.5% over the past month [9] - The combination of a Growth Score of A and a Zacks Rank 1 positions Houlihan Lokey favorably for potential outperformance [11]

Core Insights - Three stocks with strong momentum and buy rankings are highlighted for investors: Zurn Elkay Water Solutions Corp, LendingClub, and Houlihan Lokey [1][2][3]. Company Summaries Zurn Elkay Water Solutions Corp (ZWS) - The company supplies advanced water system solutions and has a Zacks Rank of 1 (Strong Buy) [1]. - The Zacks Consensus Estimate for its current year earnings increased by 9.9% over the last 60 days [1]. - Shares gained 29.7% over the last three months, outperforming the S&P 500's gain of 10.3% [2]. - The company possesses a Momentum Score of A [2]. LendingClub (LC) - LendingClub operates an online marketplace for loan approval, pricing, servicing, and support operations, connecting borrowers and investors [2]. - It has a Zacks Rank of 1 and the Zacks Consensus Estimate for its current year earnings increased by 58.5% over the last 60 days [2]. - Shares gained 51.3% over the last three months, significantly outperforming the S&P 500's gain of 10.3% [3]. - The company also possesses a Momentum Score of A [3]. Houlihan Lokey (HLI) - Houlihan Lokey is a national banking association chartered under U.S. laws and has a Zacks Rank of 1 [3]. - The Zacks Consensus Estimate for its current year earnings increased by 6.5% over the last 60 days [3]. - Shares gained 15.9% over the last three months, again outperforming the S&P 500's gain of 10.3% [4]. - The company holds a Momentum Score of A [4].

Core Insights - Houlihan Lokey reported Q1 FY2026 non-GAAP earnings per share of $2.14, surpassing analyst expectations of $2.08, while revenue of $605 million fell short of the consensus estimate by over 10% [1][2] - The company experienced year-over-year growth across all three business segments, although operating income decreased compared to the previous year [1][5] Financial Performance - Non-GAAP EPS increased by 75.4% year-over-year from $1.22 in Q1 FY2025 to $2.14 in Q1 FY2026 [2] - GAAP revenue was $605 million, a 17.7% increase from $514 million in Q1 FY2025, but below the estimate of $675.16 million [2] - GAAP operating margin decreased by 3.6 percentage points to 14.8% compared to 18.4% in Q1 FY2025 [2] - GAAP net income rose by 9.7% to $97.5 million from $88.9 million in the same quarter last year [2] - Employee compensation ratio remained stable at 61.5% [2] Business Segments Overview - Corporate Finance segment, focused on mergers and acquisitions, saw a 21% revenue increase, attributed to higher average transaction fees and an increase in closed transactions from 116 to 125 [5] - Financial Restructuring division reported a 9% revenue increase, supported by a stable headcount and a higher number of closed transactions [6] - Financial and Valuation Advisory unit achieved 16% revenue growth, driven by an expanded client base and an increase in billable milestones from 847 to 957 [7] Strategic Focus - The company is concentrating on expanding its team of senior bankers and increasing its market share in mid-cap advisory [4] - Emphasis is placed on expertise, talent acquisition, and compliance with financial regulations as key success factors [4] Expense and Tax Considerations - Overall GAAP expenses increased faster than revenue, despite the non-GAAP employee compensation ratio remaining flat [8] - The effective tax rate was notably low at 0.5%, primarily due to stock-based compensation deductions, which positively impacted net income and earnings per share [9] Management Outlook - Management did not provide specific financial guidance for the upcoming quarter, citing uncertainties in deal flow and market conditions [10] - Key indicators for future performance include the normalization of the tax rate and the pace of deal activity, particularly in mid-cap M&A and restructuring [11]

Executive Summary / Q1 FY26 Financial Highlights [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) Houlihan Lokey reported strong first-quarter fiscal 2026 results with significant revenue growth and increased diluted EPS, both on a GAAP and adjusted basis, compared to the prior year Q1 FY26 vs Q1 FY25 Financial Highlights | Metric | Q1 FY26 (Millions) | Q1 FY25 (Millions) | YoY Change | | :----- | :----------------- | :----------------- | :--------- | | Revenues | $605 | $514 | +17.7% | | Net Income (GAAP) | $98 | $89 | +10.1% | | Diluted EPS (GAAP) | $1.42 | $1.30 | +9.2% | | Adjusted Net Income | $148 | $84 | +76.2% | | Adjusted Diluted EPS | $2.14 | $1.22 | +75.4% | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Scott Adelson highlighted strong Q1 FY26 momentum across all business lines, expressing cautious optimism for continued growth - Began fiscal 2026 with momentum across all three business lines, demonstrating solid performance despite an uncertain environment[3](index=3&type=chunk) - Benefits of a diversified business model are evident across industry and geography[3](index=3&type=chunk) - Cautiously optimistic about building on this momentum in fiscal 2026, despite difficult forecasts[3](index=3&type=chunk) Consolidated Financial Performance [Revenues](index=1&type=section&id=Revenues) Q1 FY26 total revenues significantly increased year-over-year, driven by growth across all three business segments Q1 FY26 Revenues by Segment (GAAP) | Segment | Q1 FY26 (Thousands) | Q1 FY25 (Thousands) | YoY Change | YoY Growth | | :---------------------- | :------------------ | :------------------ | :--------- | :--------- | | Corporate Finance | $398,519 | $328,417 | +$70,102 | +21% | | Financial Restructuring | $128,216 | $117,422 | +$10,794 | +9% | | Financial and Valuation Advisory | $78,614 | $67,770 | +$10,844 | +16% | | **Total Revenues** | **$605,349** | **$513,609** | **+$91,740** | **+17.9%** | [Operating Expenses](index=2&type=section&id=Operating%20Expenses) [Employee Compensation and Benefits](index=2&type=section&id=Employee%20Compensation%20and%20Benefits) Q1 FY26 employee compensation and benefits increased due to higher revenues, maintaining a consistent adjusted compensation ratio Employee Compensation and Benefits Expenses (Q1 FY26 vs Q1 FY25) | Metric | Q1 FY26 (Thousands) | Q1 FY25 (Thousands) | YoY Change | | :-------------------------------- | :------------------ | :------------------ | :--------- | | GAAP Employee Compensation & Benefits | $392,837 | $330,116 | +$62,721 | | Adjusted Employee Compensation & Benefits | $372,289 | $315,869 | +$56,420 | | GAAP % of Revenues | 64.9% | 64.3% | +0.6 pp | | Adjusted % of Revenues | 61.5% | 61.5% | 0.0 pp | - Increase in GAAP and adjusted employee compensation and benefits expenses was primarily a result of an increase in revenues for the quarter[10](index=10&type=chunk) [Non-Compensation Expenses](index=2&type=section&id=Non-Compensation%20Expenses) Q1 FY26 non-compensation expenses increased, driven by revaluation of acquisition contingent consideration and other operating costs Non-Compensation Expenses (Q1 FY26 vs Q1 FY25) | Metric | Q1 FY26 (Thousands) | Q1 FY25 (Thousands) | YoY Change | | :---------------------- | :------------------ | :------------------ | :--------- | | GAAP Non-compensation | $122,712 | $88,753 | +$33,959 | | Adjusted Non-compensation | $94,469 | $80,330 | +$14,139 | | GAAP % of Revenues | 20.3% | 17.3% | +3.0 pp | | Adjusted % of Revenues | 15.6% | 15.6% | 0.0 pp | - Increase in GAAP non-compensation expenses primarily due to increases in revaluation of acquisition contingent consideration, depreciation and amortization, and other operating expenses[11](index=11&type=chunk) - Increase in adjusted non-compensation expenses primarily due to increases in other operating expenses and professional fees[11](index=11&type=chunk) [Income and Earnings Per Share](index=1&type=section&id=Income%20and%20Earnings%20Per%20Share) [Net Income and Diluted EPS (GAAP)](index=1&type=section&id=Net%20Income%20and%20Diluted%20EPS%20%28GAAP%29) GAAP net income and diluted earnings per share both increased in Q1 FY26 compared to the prior year GAAP Net Income and Diluted EPS (Q1 FY26 vs Q1 FY25) | Metric | Q1 FY26 | Q1 FY25 | YoY Change | | :-------------------- | :-------- | :-------- | :--------- | | Net Income (Thousands) | $97,533 | $88,940 | +$8,593 | | Diluted EPS | $1.42 | $1.30 | +$0.12 | [Adjusted Net Income and Diluted EPS (Non-GAAP)](index=1&type=section&id=Adjusted%20Net%20Income%20and%20Diluted%20EPS%20%28Non-GAAP%29) Adjusted net income and diluted EPS showed substantial growth in Q1 FY26, significantly outperforming the prior year Adjusted Net Income and Diluted EPS (Q1 FY26 vs Q1 FY25) | Metric | Q1 FY26 | Q1 FY25 | YoY Change | | :-------------------- | :-------- | :-------- | :--------- | | Adjusted Net Income (Thousands) | $148,005 | $84,305 | +$63,700 | | Adjusted Diluted EPS | $2.14 | $1.22 | +$0.92 | [Provision for Income Taxes](index=2&type=section&id=Provision%20for%20Income%20Taxes) GAAP effective tax rate decreased due to increased stock-based compensation deductions; adjusted rate also fell due to a policy change Provision for Income Taxes and Effective Tax Rates (Q1 FY26 vs Q1 FY25) | Metric | Q1 FY26 (Thousands) | Q1 FY25 (Thousands) | YoY Change | | :-------------------------------- | :------------------ | :------------------ | :--------- | | GAAP Provision for Income Taxes | $517 | $10,934 | -$10,417 | | GAAP Effective Tax Rate | 0.5% | 10.9% | -10.4 pp | | Adjusted (Benefit)/Provision for Income Taxes | ($1,164) | $38,239 | -$39,403 | | Adjusted Effective Tax Rate | (0.8)% | 31.2% | -32.0 pp | - Decrease in GAAP effective tax rate primarily a result of increased stock-based compensation deductions[12](index=12&type=chunk) - Decrease in adjusted effective tax rate primarily a result of a policy change to no longer adjust out the impact of stock-based compensation deductions[12](index=12&type=chunk) Segment Performance [Corporate Finance](index=3&type=section&id=Corporate%20Finance) Corporate Finance revenues increased by 21% in Q1 FY26, primarily due to a higher average transaction fee on closed transactions Corporate Finance Segment Performance (Q1 FY26 vs Q1 FY25) | Metric | Q1 FY26 | Q1 FY25 | YoY Change | | :------------------------ | :-------- | :-------- | :--------- | | Revenues (Thousands) | $398,519 | $328,417 | +$70,102 | | of Managing Directors | 244 | 228 | +16 | | of Closed transactions | 125 | 116 | +9 | - Revenues increased primarily due to an increase in the average transaction fee on closed transactions, driven by transaction mix[13](index=13&type=chunk) [Financial Restructuring](index=3&type=section&id=Financial%20Restructuring) Financial Restructuring revenues grew by 9% in Q1 FY26, mainly due to an increase in closed transactions and favorable market conditions Financial Restructuring Segment Performance (Q1 FY26 vs Q1 FY25) | Metric | Q1 FY26 | Q1 FY25 | YoY Change | | :------------------------ | :-------- | :-------- | :--------- | | Revenues (Thousands) | $128,216 | $117,422 | +$10,794 | | of Managing Directors | 58 | 58 | 0 | | of Closed transactions | 35 | 33 | +2 | - Revenues increased primarily due to an increase in the number of closed transactions, driven by favorable market conditions for restructuring transactions[15](index=15&type=chunk) [Financial and Valuation Advisory](index=3&type=section&id=Financial%20and%20Valuation%20Advisory) Financial and Valuation Advisory revenues increased by 16% in Q1 FY26, driven by an expanded client base and broader scope of work Financial and Valuation Advisory Segment Performance (Q1 FY26 vs Q1 FY25) | Metric | Q1 FY26 | Q1 FY25 | YoY Change | | :-------------------- | :-------- | :-------- | :--------- | | Revenues (Thousands) | $78,614 | $67,770 | +$10,844 | | of Managing Directors | 45 | 42 | +3 | | of Fee Events | 957 | 847 | +110 | - Revenues increased primarily due to an increase in the number of Fee Events, driven by increasing client base and expanding scope of work for existing clients[17](index=17&type=chunk) Financial Position and Capital Allocation [Balance Sheet Highlights](index=4&type=section&id=Balance%20Sheet%20Highlights) As of June 30, 2025, Houlihan Lokey maintained a strong liquidity position with substantial cash and investment securities - As of June 30, 2025, the Company had **$867 million** in cash and cash equivalents and investment securities[19](index=19&type=chunk) - Other liabilities totaled **$93 million** as of June 30, 2025[19](index=19&type=chunk) [Dividend Announcement](index=4&type=section&id=Dividend%20Announcement) The Board of Directors declared a regular quarterly cash dividend of $0.60 per share for the second quarter of fiscal 2026 - Regular quarterly cash dividend of **$0.60 per share** of Class A and Class B common stock declared[19](index=19&type=chunk) - Dividend payable on September 15, 2025, to stockholders of record as of September 2, 2025[19](index=19&type=chunk) Additional Information [Investor Conference Call and Webcast](index=4&type=section&id=Investor%20Conference%20Call%20and%20Webcast) Houlihan Lokey will host a conference call and live webcast on July 29, 2025, to discuss Q1 FY26 results, with replay options - Conference call and live webcast scheduled for 5:00 p.m. Eastern Time on Tuesday, July 29, 2025[20](index=20&type=chunk) - Replay of the conference call available from July 29, 2025, through August 5, 2025[20](index=20&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) The press release includes forward-looking statements involving known and unknown risks, cautioning against undue reliance - Press release contains forward-looking statements identifiable by words like 'assumes,' 'believes,' 'estimates,' 'expects,' 'guidance,' 'intends,' 'plans,' 'projects,' and similar expressions[21](index=21&type=chunk) - Forward-looking statements involve known and unknown risks, uncertainties, and other factors that could materially affect actual results[21](index=21&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted non-GAAP financial measures are presented to clarify operating results for investors, not as a substitute for GAAP - Adjusted net income and other adjusted items are non-GAAP measures presented to help investors understand operating results[22](index=22&type=chunk) - Non-GAAP measures are not a measurement of financial performance or liquidity under GAAP and should not be considered an alternative to GAAP financial information[22](index=22&type=chunk) [About Houlihan Lokey](index=4&type=section&id=About%20Houlihan%20Lokey) Houlihan Lokey is a global investment bank specializing in M&A, capital solutions, and advisory services, recognized for top rankings - Houlihan Lokey is a global investment bank with expertise in mergers and acquisitions, capital solutions, financial restructuring, and financial and valuation advisory[23](index=23&type=chunk) - Serves corporations, institutions, and governments worldwide with offices across the Americas, Europe, the Middle East, and Asia Pacific[23](index=23&type=chunk) - Ranked **No. 1 investment bank** for all global M&A transactions (past two years), **No. 1 M&A advisor** in the U.S. (past 10 years), **No. 1 global restructuring advisor** (past 11 years), and **No. 1 global M&A fairness opinion advisor** (past 25 years)[23](index=23&type=chunk) Financial Statements & Reconciliations (Appendix) [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Unaudited condensed consolidated balance sheets detail the company's financial position as of June 30, 2025, compared to March 31, 2025 Condensed Consolidated Balance Sheets (Unaudited) | Metric | June 30, 2025 (Thousands) | March 31, 2025 (Thousands) | Change | | :-------------------------- | :------------------------ | :------------------------- | :------- | | Total Assets | $3,517,803 | $3,819,708 | -$301,905 | | Total Liabilities | $1,339,987 | $1,644,831 | -$304,844 | | Total Stockholders' Equity | $2,177,816 | $2,174,877 | +$2,939 | [Condensed Consolidated Statements of Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Unaudited condensed consolidated statements of income present revenues, operating expenses, and net income for Q1 FY26 and Q1 FY25 Condensed Consolidated Statements of Income (Unaudited) | Metric | Three Months Ended June 30, 2025 (Thousands) | Three Months Ended June 30, 2024 (Thousands) | YoY Change | | :-------------------------------- | :------------------------------------------- | :------------------------------------------- | :--------- | | Revenues | $605,349 | $513,609 | +$91,740 | | Total Operating Expenses | $515,549 | $418,869 | +$96,680 | | Operating Income | $89,800 | $94,740 | -$4,940 | | Income before provision for income taxes | $98,050 | $99,874 | -$1,824 | | Net Income | $97,533 | $88,940 | +$8,593 | | Diluted EPS | $1.42 | $1.30 | +$0.12 | [Reconciliation of GAAP to Adjusted Financial Information](index=8&type=section&id=Reconciliation%20of%20GAAP%20to%20Adjusted%20Financial%20Information) This section reconciles GAAP and adjusted financial figures, detailing adjustments for compensation, expenses, taxes, and their impact Reconciliation of GAAP to Adjusted Financial Information (Unaudited) | Metric | GAAP Q1 FY26 (Thousands) | Adjusted Q1 FY26 (Thousands) | GAAP Q1 FY25 (Thousands) | Adjusted Q1 FY25 (Thousands) | | :------------------------------------ | :------------------------- | :--------------------------- | :------------------------- | :--------------------------- | | Employee compensation and benefits | $392,837 | $372,289 | $330,116 | $315,869 | | Non-compensation expenses | $122,712 | $94,469 | $88,753 | $80,330 | | Operating income | $89,800 | $138,591 | $94,740 | $117,410 | | Provision for income taxes | $517 | ($1,164) | $10,934 | $38,239 | | Net income | $97,533 | $148,005 | $88,940 | $84,305 | | Fully diluted shares outstanding | 68,887,970 | 69,303,552 | 68,501,059 | 69,123,455 | | Diluted EPS | $1.42 | $2.14 | $1.30 | $1.22 |

分组1 - Houlihan Lokey reported quarterly earnings of $2.14 per share, exceeding the Zacks Consensus Estimate of $1.69 per share, and showing an increase from $1.22 per share a year ago, resulting in an earnings surprise of +26.63% [1] - The company achieved revenues of $605.35 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.85%, and up from $513.61 million year-over-year [2] - Houlihan Lokey has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] 分组2 - The stock has gained approximately 11.1% since the beginning of the year, outperforming the S&P 500's gain of 8.6% [3] - The current consensus EPS estimate for the upcoming quarter is $1.63 on revenues of $627.67 million, and for the current fiscal year, it is $7.19 on revenues of $2.66 billion [7] - The Zacks Industry Rank for Financial - Miscellaneous Services is in the bottom 42% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Data and Key Metrics Changes - The company reported revenues of $605 million for the first quarter, an 18% increase compared to the same quarter last year, and adjusted earnings per share of $2.14, up 75% year-over-year [6][11][20] - Adjusted compensation expenses were $372 million, up from $316 million in the same period last year, maintaining an adjusted compensation expense ratio of 61.5% [14][15][20] - The adjusted effective tax rate for the quarter was negative 0.8%, a significant decrease from 31.2% in the same quarter last year [19][20] Business Line Data and Key Metrics Changes - Corporate Finance generated $399 million in revenue, a 21% increase year-over-year, with 125 transactions closed, up from 116 [7][12] - Financial Restructuring revenues were $128 million, a 9% increase, with 35 transactions closed compared to 33 in the same quarter last year [8][13] - Financial and Valuation Advisory produced $79 million in revenues, a 16% increase, with 957 fee events, up from 847 [9][13] Market Data and Key Metrics Changes - The U.S. market continues to outpace EMEA in terms of revenue and activity levels, with expectations that this trend will persist [12][30] - The company noted that while the financial sponsor community's activity has been muted, there is optimism for a return to historic levels as market conditions improve [7][54] Company Strategy and Development Direction - The company is focused on maintaining a diversified business model across industries and geographies, which has shown resilience in the current macro environment [6][11] - The company hosted the inaugural Houlihan Lokey ONE conference, which attracted over 4,000 attendees, showcasing its global reach and commitment to client engagement [10] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the business environment, acknowledging ongoing volatility but noting improvements in client resilience [11][61] - The outlook for fiscal year 2026 remains positive, with expectations for continued growth across all business lines despite potential headwinds from tariffs and inflation [8][11] Other Important Information - The company ended the quarter with approximately $867 million in unrestricted cash and investment securities, reflecting a decline due to bonus payments made in May [20][21] - The hiring environment remains strong, with three new managing directors added in the first quarter, indicating a commitment to expanding talent across the organization [10][80] Q&A Session Summary Question: Insights on Corporate Finance market improvement - Management noted that while there has been improvement quarter by quarter, the market remains uncertain, and they are seeing resilience in client adjustments to current conditions [26][27] Question: Backlog trends and sector performance - Management refrained from commenting on backlog specifics but indicated solid performance across sectors, with EMEA lagging behind the U.S. [29][30] Question: Quality of assets and deal activity - Management acknowledged a strong environment but noted that the volume of deals is expected to pick up after Labor Day, with a focus on the quality of assets moving [34][35] Question: Non-compensation expense growth expectations - Management confirmed expectations for high single-digit growth in non-compensation expenses for the year, driven by headcount growth [36][48] Question: Restructuring market outlook - Management indicated that restructuring activity remains elevated, with a strong pipeline across both in-court and out-of-court transactions [41][43] Question: Growth of the secondaries business - Management expressed satisfaction with the growth of the secondaries business, indicating a positive outlook for its integration within the Capital Solutions group [44][45] Question: Sponsor market activity post-Labor Day - Management expects an increase in sponsor activity after Labor Day, noting that current activity levels are muted but showing signs of improvement [54][55] Question: Hiring strategy and focus areas - Management emphasized a commitment to hiring across all sectors, without a specific focus on any particular business or sector [81][82]