February 2025 Investor Presentation 2 Disclaimers Forward-Looking Information This presentation contains forward-looking statements. All statements other than statements of historical facts contained in this presentation may be forward-looking statements. The words "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" and other expressions that are predictions of or indicate future ...

Core Insights - Houlihan Lokey, Inc. (HLI) shares increased by 5.4% following the release of its fiscal fourth-quarter results on May 7, 2025, driven by growth in corporate finance, financial and valuation advisory, and financial restructuring businesses, although higher expenses partially offset these gains [1] Financial Performance - HLI reported adjusted earnings per share (EPS) of $1.96 for fiscal Q4 2025, exceeding the Zacks Consensus Estimate by 21.7% and reflecting a 54% year-over-year increase [1] - Total revenues for the quarter rose by 28% year over year to $666.4 million, surpassing the Zacks Consensus Estimate by 6.4% [2] - Income before provision for income taxes increased by 27.3% year over year to $150.3 million [3] - Total operating expenses grew by 26.2% year over year to $527.2 million, attributed to higher employee compensation and benefits, as well as non-compensation expenses [3] - The adjusted compensation expense ratio remained stable at 61.5% [3] Segment Performance - Corporate Finance segment revenues surged by 43.5% year over year to $412.7 million, benefiting from improved average transaction fees and an increase in the number of closed transactions, with Managing Directors up by 7.6% and closed transactions up by 21.5% [3] - Financial Restructuring revenues improved by 5.9% year over year, supported by an increase in closed transactions and average transaction fees, with Managing Directors and closed transactions rising by 5.6% and 8.6%, respectively [4] - Financial and Valuation Advisory segment revenues increased by 15.1% year over year, driven by a rise in the number of fee events, with Managing Directors up by 7.7% [5] Full-Year Update - For fiscal 2025, total revenues increased by 24.8% year over year to $2.4 billion, while total operating expenses rose by 21.7% to $1.9 billion [6] - Adjusted EPS for the full year rose by 40.1% year over year to $6.29 [6] Financial Position - As of March 31, 2025, HLI had cash and cash equivalents of $971 million, up from $721.2 million at the end of fiscal 2024 [7] - Total assets increased to $3.8 billion from $3.2 billion at the end of fiscal 2024 [7] - Total equity rose to $2.2 billion from $1.8 billion at the end of fiscal 2024 [7] Dividend Update - HLI announced a 5% increase in its cash dividend to 60 cents per share, payable on June 15, 2025, to shareholders of record as of June 2 [9]