Houlihan Lokey Inc Financials
This page shows Houlihan Lokey Inc (HLI) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 12 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Financial Health Signals
Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores
Houlihan Lokey Inc has an operating margin of 21.0%, meaning the company retains $21 of operating profit per $100 of revenue. This strong profitability earns a score of 100/100, reflecting efficient cost management and pricing power. This is up from 18.9% the prior year.
Houlihan Lokey Inc's revenue surged 24.8% year-over-year to $2.4B, reflecting rapid business expansion. This strong growth earns a score of 99/100.
Houlihan Lokey Inc carries a low D/E ratio of 0.76, meaning only $0.76 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 83/100, indicating a strong balance sheet with room for future borrowing.
Houlihan Lokey Inc converts 33.9% of revenue into free cash flow ($808.9M). This strong cash generation earns a score of 100/100.
Houlihan Lokey Inc earns a strong 18.4% return on equity (ROE), meaning it generates $18 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 74/100. This is up from 15.3% the prior year.
Houlihan Lokey Inc passes 6 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), both operating efficiency signals pass.
For every $1 of reported earnings, Houlihan Lokey Inc generates $2.12 in operating cash flow ($848.6M OCF vs $399.7M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Key Financial Metrics
Houlihan Lokey Inc generated $2.4B in revenue in fiscal year 2025. This represents an increase of 24.8% from the prior year.
Houlihan Lokey Inc's EBITDA was $542.8M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 38.7% from the prior year.
Houlihan Lokey Inc generated $808.9M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 209.1% from the prior year.
Houlihan Lokey Inc reported $399.7M in net income in fiscal year 2025. This represents an increase of 42.6% from the prior year.
Houlihan Lokey Inc earned $5.82 per diluted share (EPS) in fiscal year 2025. This represents an increase of 41.6% from the prior year.
Houlihan Lokey Inc held $971.0M in cash against $0 in long-term debt as of fiscal year 2025.
Houlihan Lokey Inc's gross margin was 32.3% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 2.5 percentage points from the prior year.
Houlihan Lokey Inc's operating margin was 21.0% in fiscal year 2025, reflecting core business profitability. This is up 2.0 percentage points from the prior year.
Houlihan Lokey Inc's net profit margin was 16.7% in fiscal year 2025, showing the share of revenue converted to profit. This is up 2.1 percentage points from the prior year.
Houlihan Lokey Inc's ROE was 18.4% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 3.1 percentage points from the prior year.
Houlihan Lokey Inc spent $52.5M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 110.5% from the prior year.
Houlihan Lokey Inc invested $39.7M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 40.5% from the prior year.
HLI Income Statement
| Metric | Q3'26 | Q2'26 | Q1'26 | Q1'24 | Q3'25 | Q2'25 | Q1'25 | Q1'23 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $717.1M+8.7% | $659.5M+8.9% | $605.3M+44.6% | $418.6M-18.1% | $511.1M+9.5% | $467.0M+12.3% | $415.8M+11.6% | $372.7M |
| Cost of Revenue | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Gross Profit | $230.7M+3.5% | $222.8M+18.7% | $187.8M+36.8% | $137.3M-9.0% | $150.9M+5.8% | $142.6M+18.7% | $120.1M-10.0% | $133.5M |
| R&D Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Operating Income | $160.7M+6.2% | $151.3M+68.5% | $89.8M+15.8% | $77.6M-19.6% | $96.5M+6.9% | $90.3M+23.1% | $73.3M-31.9% | $107.7M |
| Interest Expense | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Income Tax | $53.1M+10.0% | $48.3M+9236.9% | $517K-89.7% | $5.0M-84.1% | $31.8M+19.7% | $26.5M+77.4% | $15.0M-31.4% | $21.8M |
| Net Income | $116.5M+4.3% | $111.8M+14.6% | $97.5M+37.8% | $70.8M0.0% | $70.8M+5.6% | $67.0M+9.2% | $61.4M-28.6% | $86.0M |
| EPS (Diluted) | $1.70+4.3% | $1.63+14.8% | $1.42+37.9% | $1.03-1.0% | $1.04+5.1% | $0.99+10.0% | $0.90-28.0% | $1.25 |
HLI Balance Sheet
| Metric | Q3'26 | Q2'26 | Q1'26 | Q1'24 | Q3'25 | Q2'25 | Q1'25 | Q1'23 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $3.9B+3.8% | $3.8B+7.8% | $3.5B+10.9% | $3.2B+7.2% | $3.0B+6.4% | $2.8B+2.8% | $2.7B-8.8% | $3.0B |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Cash & Equivalents | $1.1B+14.4% | $923.6M+16.3% | $793.8M+10.1% | $721.2M+29.8% | $555.5M+12.5% | $493.9M+8.3% | $456.1M-36.2% | $714.4M |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $210.9M-16.0% | $251.2M+15.1% | $218.2M+9.3% | $199.6M+30.7% | $152.8M+0.3% | $152.2M+10.7% | $137.6M-24.4% | $182.0M |
| Goodwill | $1.3B+0.1% | $1.3B-0.2% | $1.3B+14.9% | $1.1B-0.1% | $1.1B+3.9% | $1.1B-0.4% | $1.1B+0.3% | $1.1B |
| Total Liabilities | $1.6B+6.2% | $1.5B+15.4% | $1.3B+0.4% | $1.3B+12.1% | $1.2B+4.8% | $1.1B+4.0% | $1.1B-19.5% | $1.4B |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | $46.1M |
| Total Equity | $2.3B+2.1% | $2.2B+3.2% | $2.2B+18.6% | $1.8B+3.8% | $1.8B+7.5% | $1.6B+1.9% | $1.6B+0.1% | $1.6B |
| Retained Earnings | $1.6B+4.8% | $1.5B+4.6% | $1.4B+24.5% | $1.2B+3.7% | $1.1B+3.1% | $1.1B+2.7% | $1.1B+2.5% | $1.0B |
HLI Cash Flow Statement
| Metric | Q3'26 | Q2'26 | Q1'26 | Q1'24 | Q3'25 | Q2'25 | Q1'25 | Q1'23 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $217.7M-33.0% | $325.0M+346.9% | -$131.6M-158.4% | $225.3M+123.3% | $100.9M-25.7% | $135.8M+201.7% | -$133.6M-156.1% | $238.1M |
| Capital Expenditures | $639K-71.4% | $2.2M-83.0% | $13.2M+7.9% | $12.2M-21.5% | $15.6M-33.1% | $23.3M+48.7% | $15.7M-18.0% | $19.1M |
| Free Cash Flow | $217.0M-32.8% | $322.8M+322.9% | -$144.8M-168.0% | $213.1M+149.8% | $85.3M-24.2% | $112.5M+175.4% | -$149.2M-168.1% | $219.1M |
| Investing Cash Flow | $56.4M+149.4% | -$114.3M-204.2% | $109.6M+846.5% | -$14.7M+35.4% | -$22.7M-10.3% | -$20.6M-66.8% | -$12.4M+68.7% | -$39.5M |
| Financing Cash Flow | -$131.4M-82.1% | -$72.1M+63.3% | -$196.6M-444.0% | -$36.1M-1.5% | -$35.6M+47.4% | -$67.7M+39.1% | -$111.2M-240.7% | -$32.6M |
| Dividends Paid | $40.6M-2.7% | $41.8M-20.4% | $52.5M+47.6% | $35.6M+0.1% | $35.5M+0.3% | $35.4M-15.6% | $42.0M+29.8% | $32.3M |
| Share Buybacks | $87.9M+195.7% | $29.7M+280.5% | $7.8M | $0 | $0-100.0% | $25.0M | $0+100.0% | -$432K |
HLI Financial Ratios
| Metric | Q3'26 | Q2'26 | Q1'26 | Q1'24 | Q3'25 | Q2'25 | Q1'25 | Q1'23 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 32.2%-1.6pp | 33.8%+2.8pp | 31.0%-1.8pp | 32.8%+3.3pp | 29.5%-1.0pp | 30.5%+1.7pp | 28.9%-6.9pp | 35.8% |
| Operating Margin | 22.4%-0.5pp | 22.9%+8.1pp | 14.8%-3.7pp | 18.5%-0.4pp | 18.9%-0.4pp | 19.3%+1.7pp | 17.6%-11.2pp | 28.9% |
| Net Margin | 16.3%-0.7pp | 17.0%+0.8pp | 16.1%-0.8pp | 16.9%+3.1pp | 13.9%-0.5pp | 14.3%-0.4pp | 14.8%-8.3pp | 23.1% |
| Return on Equity | 5.1%+0.1pp | 5.0%+0.5pp | 4.5%-0.5pp | 5.0%+1.0pp | 4.0%-0.1pp | 4.1%+0.3pp | 3.8%-2.4pp | 6.2% |
| Return on Assets | 3.0%+0.0pp | 2.9%+0.2pp | 2.8%-0.1pp | 2.9%+0.5pp | 2.4%-0.0pp | 2.4%+0.1pp | 2.3%-1.7pp | 4.0% |
| Current Ratio | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Debt-to-Equity | 0.72+0.0 | 0.69+0.1 | 0.62-0.1 | 0.73+0.1 | 0.67-0.0 | 0.69+0.0 | 0.68-0.2 | 0.84 |
| FCF Margin | 30.3%-18.7pp | 48.9%+72.9pp | -23.9%+43.6pp | -67.5%-84.2pp | 16.7%-7.4pp | 24.1%+60.0pp | -35.9%-11.3pp | -24.6% |
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Frequently Asked Questions
What is Houlihan Lokey Inc's annual revenue?
Houlihan Lokey Inc (HLI) reported $2.4B in total revenue for fiscal year 2025. This represents a 24.8% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Houlihan Lokey Inc's revenue growing?
Houlihan Lokey Inc (HLI) revenue grew by 24.8% year-over-year, from $1.9B to $2.4B in fiscal year 2025.
Is Houlihan Lokey Inc profitable?
Yes, Houlihan Lokey Inc (HLI) reported a net income of $399.7M in fiscal year 2025, with a net profit margin of 16.7%.
What is Houlihan Lokey Inc's earnings per share (EPS)?
Houlihan Lokey Inc (HLI) reported diluted earnings per share of $5.82 for fiscal year 2025. This represents a 41.6% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.
What is Houlihan Lokey Inc's EBITDA?
Houlihan Lokey Inc (HLI) had EBITDA of $542.8M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Houlihan Lokey Inc's gross margin?
Houlihan Lokey Inc (HLI) had a gross margin of 32.3% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Houlihan Lokey Inc's operating margin?
Houlihan Lokey Inc (HLI) had an operating margin of 21.0% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Houlihan Lokey Inc's net profit margin?
Houlihan Lokey Inc (HLI) had a net profit margin of 16.7% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Houlihan Lokey Inc's return on equity (ROE)?
Houlihan Lokey Inc (HLI) has a return on equity of 18.4% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Houlihan Lokey Inc's free cash flow?
Houlihan Lokey Inc (HLI) generated $808.9M in free cash flow during fiscal year 2025. This represents a 209.1% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Houlihan Lokey Inc's operating cash flow?
Houlihan Lokey Inc (HLI) generated $848.6M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Houlihan Lokey Inc's total assets?
Houlihan Lokey Inc (HLI) had $3.8B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Houlihan Lokey Inc's capital expenditures?
Houlihan Lokey Inc (HLI) invested $39.7M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
Does Houlihan Lokey Inc buy back shares?
Yes, Houlihan Lokey Inc (HLI) spent $52.5M on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.
What is Houlihan Lokey Inc's debt-to-equity ratio?
Houlihan Lokey Inc (HLI) had a debt-to-equity ratio of 0.76 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Houlihan Lokey Inc's return on assets (ROA)?
Houlihan Lokey Inc (HLI) had a return on assets of 10.5% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Houlihan Lokey Inc's Piotroski F-Score?
Houlihan Lokey Inc (HLI) has a Piotroski F-Score of 6 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Houlihan Lokey Inc's earnings high quality?
Houlihan Lokey Inc (HLI) has an earnings quality ratio of 2.12x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
How financially healthy is Houlihan Lokey Inc?
Houlihan Lokey Inc (HLI) scores 91 out of 100 on our Financial Profile, indicating strong overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.