Houlihan Lokey Reports Fiscal Year and Fourth Quarter 2025 Financial Results

– Record Fiscal Year 2025 Revenues of $2.39 billion –

– Fiscal Year 2025 Diluted EPS of $5.82 –

– Adjusted Fiscal Year 2025 Diluted EPS of $6.29 –

– Fourth Quarter Fiscal 2025 Revenues of $666 million –

– Fourth Quarter Fiscal 2025 Diluted EPS of $1.76 –

– Adjusted Fourth Quarter Fiscal 2025 Diluted EPS of $1.96 –

– Announces a 5% Increase in the Quarterly Dividend to $0.60 per Share –

LOS ANGELES & NEW YORK--(BUSINESS WIRE)-- Houlihan Lokey, Inc. (NYSE:HLI) (“Houlihan Lokey” or the “Company”) today reported financial results for its fiscal year and fourth quarter ended March 31, 2025. For the fiscal year, revenues were $2.39 billion, compared with $1.91 billion for the fiscal year ended March 31, 2024. For the fourth quarter ended March 31, 2025, revenues were $666 million, compared with $520 million for the fourth quarter ended March 31, 2024.

Net income was $400 million, or $5.82 per diluted share, for the fiscal year ended March 31, 2025, compared with $280 million, or $4.11 per diluted share, for the fiscal year ended March 31, 2024. Adjusted net income for the fiscal year ended March 31, 2025 was $434 million, or $6.29 per diluted share, compared with $310 million, or $4.49 per diluted share, for the fiscal year ended March 31, 2024.

Net income was $122 million, or $1.76 per diluted share, for the fourth quarter ended March 31, 2025, compared with $81 million, or $1.18 per diluted share, for the fourth quarter ended March 31, 2024. Adjusted net income for the fourth quarter ended March 31, 2025 was $136 million, or $1.96 per diluted share, compared with $88 million, or $1.27 per diluted share, for the fourth quarter ended March 31, 2024.

“Fiscal 2025 was a record year for our firm as all three groups ended the year with a strong fourth quarter. While current volatility makes meaningful forecasts difficult, we are well positioned to handle the uncertainty of current market conditions,” stated Scott Adelson, Chief Executive Officer of Houlihan Lokey.

Selected Financial Data

(In thousands, except per share data)	U.S. GAAP
	Three Months Ended March 31,								Year Ended March 31,
		2025				2024				2025				2024
Revenues by segment
Corporate Finance	$	412,709			$	287,579			$	1,526,756			$	1,106,826
Financial Restructuring		164,546				155,381				544,478				521,984
Financial and Valuation Advisory		89,167				77,496				318,182				285,594
Revenues		666,422				520,456				2,389,416				1,914,404
Operating expenses:
Employee compensation and benefits		430,544				329,525				1,524,268				1,213,589
Non-compensation expenses		96,673				88,234				363,604				337,954
Operating income		139,205				102,697				501,544				362,861
Other income, net		(11,050	)			(15,342	)			(29,791	)			(27,678	)
Income before provision for income taxes		150,255				118,039				531,335				390,539
Provision for income taxes		28,335				36,962				131,624				110,238
Net income	$	121,920			$	81,077			$	399,711			$	280,301
Diluted earnings per share attributable to Houlihan Lokey, Inc.	$	1.76			$	1.18			$	5.82			$	4.11

Revenues

For the fiscal year ended March 31, 2025, revenues were $2.39 billion, compared with $1.91 billion for the fiscal year ended March 31, 2024. For the fiscal year ended March 31, 2025, CF revenues increased 38%, Financial Restructuring (“FR”) revenues increased 4%, and Financial and Valuation Advisory (“FVA”) revenues increased 11% when compared with the fiscal year ended March 31, 2024.

For the fourth quarter ended March 31, 2025, revenues were $666 million, compared with $520 million for the fourth quarter ended March 31, 2024. For the fourth quarter ended March 31, 2025, CF revenues increased 44%, FR revenues increased 6%, and FVA revenues increased 15% when compared with the fourth quarter ended March 31, 2024.

Expenses

The Company’s employee compensation and benefits expenses, non-compensation expenses, and provision for income taxes during the periods presented and described below are on a GAAP and an adjusted basis.

	U.S. GAAP								Adjusted (Non-GAAP) *
	Year Ended March 31,
($ in thousands)		2025				2024				2025				2024
Expenses:
Employee compensation and benefits	$	1,524,268			$	1,213,589			$	1,469,491			$	1,177,355
% of Revenues		63.8	%			63.4	%			61.5	%			61.5	%
Non-compensation	$	363,604			$	337,954			$	329,476			$	314,081
% of Revenues		15.2	%			17.7	%			13.8	%			16.4	%
Per full-time employee (1)	$	137			$	130			$	124			$	121
Provision for Income Taxes	$	131,624			$	110,238			$	184,782			$	129,850
% of Pre-Tax Income		24.8	%			28.2	%			29.8	%			29.5	%

		*		Adjusted figures represent non-GAAP information. See “Non-GAAP Financial Measures” and the tables at the end of this release for an explanation of the adjustments and reconciliations to the comparable GAAP numbers.
		(1)		Calculated using the average of the number of full-time employees at the beginning of the reporting period and the end of the reporting period.

	U.S. GAAP								Adjusted (Non-GAAP) *
	Three Months Ended March 31,
($ in thousands)		2025				2024				2025				2024
Expenses:
Employee compensation and benefits	$	430,544			$	329,525			$	409,850			$	320,077
% of Revenues		64.6	%			63.3	%			61.5	%			61.5	%
Non-compensation	$	96,673			$	88,234			$	85,265			$	80,963
% of Revenues		14.5	%			17.0	%			12.8	%			15.6	%
Per full-time employee (1)	$	36			$	34			$	32			$	31
Provision for Income Taxes	$	28,335			$	36,962			$	44,199			$	37,438
% of Pre-Tax Income		18.9	%			31.3	%			24.5	%			29.9	%

		*		Adjusted figures represent non-GAAP information. See “Non-GAAP Financial Measures” and the tables at the end of this release for an explanation of the adjustments and reconciliations to the comparable GAAP numbers.
		(1)		Calculated using the average of the number of full-time employees at the beginning of the reporting period and the end of the reporting period.

Year Ended March 31, 2025 Compared to the Year Ended March 31, 2024

Employee compensation and benefits expenses were $1.52 billion for the fiscal year ended March 31, 2025, compared with $1.21 billion for the fiscal year ended March 31, 2024. This resulted in a GAAP compensation ratio of 63.8% for the fiscal year ended March 31, 2025, compared with 63.4% for the fiscal year ended March 31, 2024. Adjusted employee compensation and benefits expenses were $1.47 billion for the fiscal year ended March 31, 2025, compared with $1.18 billion for the fiscal year ended March 31, 2024. This resulted in an adjusted compensation ratio of 61.5% for both the fiscal year ended March 31, 2025 and March 31, 2024. The increase in GAAP and adjusted employee compensation and benefits expenses was primarily a result of an increase in revenues for the year when compared with the prior year.

Non-compensation expenses were $364 million for the fiscal year ended March 31, 2025, compared with $338 million for the fiscal year ended March 31, 2024. The increase in GAAP non-compensation expenses was primarily a result of an increase in depreciation and amortization, other operating expenses, and information technology and communications expenses, partially offset by a decrease in professional fees. Adjusted non-compensation expenses were $329 million for the fiscal year ended March 31, 2025, compared with $314 million for the fiscal year ended March 31, 2024. The increase in adjusted non-compensation expenses was primarily a result of an increase in other operating expenses, information technology and communication expenses, and depreciation and amortization, partially offset by a decrease in professional fees when compared with the prior year.

The provision for income taxes was $132 million, representing an effective tax rate of 24.8% for the fiscal year ended March 31, 2025, compared with $110 million, representing an effective tax rate of 28.2%, for the fiscal year ended March 31, 2024. The decrease in the Company’s GAAP effective tax rate for the year ended March 31, 2025, relative to the same period in 2024, was primarily a result of the release of the provision for an uncertain tax position as a result of the successful closure of a city audit. The adjusted provision for income taxes was $185 million, representing an adjusted effective tax rate of 29.8%, for the fiscal year ended March 31, 2025, compared with $130 million, representing an adjusted effective tax rate of 29.5%, for the fiscal year ended March 31, 2024.

Quarter Ended March 31, 2025 Compared to the Quarter Ended March 31, 2024

Employee compensation and benefits expenses were $431 million for the fourth quarter ended March 31, 2025, compared with $330 million for the fourth quarter ended March 31, 2024. This resulted in a GAAP compensation ratio of 64.6% for the fourth quarter ended March 31, 2025, compared with 63.3% for the fourth quarter ended March 31, 2024. Adjusted employee compensation and benefits expenses were $410 million for the fourth quarter ended March 31, 2025, compared with $320 million for the fourth quarter ended March 31, 2024. This resulted in an adjusted compensation ratio of 61.5% for both the fourth quarter ended March 31, 2025 and March 31, 2024. The increase in GAAP and adjusted employee compensation and benefits expenses was primarily a result of an increase in revenues when compared with the same quarter last year.

Non-compensation expenses were $97 million for the fourth quarter ended March 31, 2025, compared with $88 million for the fourth quarter ended March 31, 2024. The increase in GAAP non-compensation expenses was primarily a result of an increase in depreciation and amortization, other operating expenses, and information technology and communications expenses, partially offset by a decrease in travel, meals, and entertainment expenses. Adjusted non-compensation expenses were $85 million for the quarter ended March 31, 2025, compared with $81 million for the fourth quarter ended March 31, 2024. The increase in adjusted non-compensation expenses was primarily a result of an increase in other operating expenses and information technology and communication expenses, partially offset by a decrease in travel, meals, and entertainment expenses when compared with the same quarter last year.

The provision for income taxes was $28 million, representing an effective tax rate of 18.9%, for the fourth quarter ended March 31, 2025, compared with $37 million, representing an effective tax rate of 31.3%, for the fourth quarter ended March 31, 2024. The decrease in the Company’s GAAP effective tax rate for the fourth quarter ended March 31, 2025, relative to the same period in 2024, was primarily a result of decreased state taxes and the release of the provision for an uncertain tax position as a result of the successful closure of a city audit. The adjusted provision for income taxes was $44 million, representing an adjusted effective tax rate of 24.5%, for the fourth quarter ended March 31, 2025, compared with $37 million, representing an adjusted effective tax rate of 29.9%, for the fourth quarter ended March 31, 2024. The decrease in the Company’s adjusted tax rate during the fourth quarter ended March 31, 2025, relative to the same period in 2024, was primarily a result of decreased state taxes.

Segment Reporting for the Fourth Quarter

Corporate Finance

CF revenues were $413 million for the fourth quarter ended March 31, 2025, compared with $288 million for the fourth quarter ended March 31, 2024. Revenues increased primarily due to an increase in the number of closed transactions, which was driven by favorable market conditions. Revenues also increased due to an increase in the average transaction fee on closed transactions, which was driven by transaction mix and does not represent a trend in the average fee on closed transactions.

	Three Months Ended March 31,						Year Ended March 31,
($ in thousands)		2025			2024			2025			2024
Corporate Finance
Revenues	$	412,709		$	287,579		$	1,526,756		$	1,106,826
# of Managing Directors		240			223			240			223
# of Closed transactions (1)		147			121			564			450

Financial Restructuring

FR revenues were $165 million for the fourth quarter ended March 31, 2025, compared with $155 million for the fourth quarter ended March 31, 2024. Revenues increased primarily due to an increase in the number of closed transactions, which was driven by favorable market conditions for restructuring transactions. Revenues also increased due to an increase in the average transaction fee on closed transactions, which was driven by transaction mix and does not represent a trend in the average fee on closed transactions.

	Three Months Ended March 31,						Year Ended March 31,
($ in thousands)		2025			2024			2025			2024
Financial Restructuring
Revenues	$	164,546		$	155,381		$	544,478		$	521,984
# of Managing Directors		57			54			57			54
# of Closed transactions (1)		38			35			145			126

Financial and Valuation Advisory

FVA revenues were $89 million for the quarter ended March 31, 2025, compared with $77 million for the fourth quarter ended March 31, 2024. Revenues increased due to an increase in the number of Fee Events, driven by improvements in the M&A markets, which affected one or more of the service lines within our FVA business.

	Three Months Ended March 31,						Year Ended March 31,
($ in thousands)		2025			2024			2025			2024
Financial and Valuation Advisory
Revenues	$	89,167		$	77,496		$	318,182		$	285,594
# of Managing Directors		42			39			42			39
# of Fee Events (1)		1,224			1,025			2,441			2,178

(1)

A Fee Event includes any engagement that involves revenue activity during the measurement period based on a revenue minimum of one thousand dollars. References in this press release to closed transactions should be understood to be the same as transactions that are “effectively closed” as described in our periodic reports on Forms 10-K and 10-Q.

Other Announcements

The Board of Directors of the Company declared a regular quarterly cash dividend of $0.60 per share of Class A and Class B common stock. The dividend will be payable on June 15, 2025 to stockholders of record as of the close of business on June 2, 2025.

Investor Conference Call and Webcast

The Company will host a conference call and live webcast at 5:00 p.m. Eastern Time on Wednesday, May 7, 2025, to discuss its full year and fourth quarter fiscal 2025 results. The number to call is 1-800-343-4136 (domestic) or 1-203-518-9843 (international). A live webcast will be available in the Investor Relations section of the Company’s website. A replay of the conference call will be available from May 7, 2025 through May 14, 2025, by dialing 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and entering the passcode 11158904#. A replay of the webcast will be archived and available on the Company’s website.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. You can identify these statements by our use of the words “assumes,” “believes,” “estimates,” “expects,” “guidance,” “intends,” “plans,” “projects,” and similar expressions that do not relate to historical matters. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties, and other factors which are, in some cases, beyond the Company’s control and could materially affect actual results, performance, or achievements. For a further description of such factors, you should read the Company’s filings with the Securities and Exchange Commission. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. The Company does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Non-GAAP Financial Measures

Adjusted net income, total and on a per share basis, and certain adjusted items used to determine adjusted net income, are presented and discussed in this earnings press release and are non-GAAP measures that management believes, when presented together with comparable GAAP measures, are useful to investors in understanding the Company’s operating results. The adjusted items included in this earnings press release as calculated by the Company are not necessarily comparable to similarly titled measures reported by other companies. Additionally, these adjusted amounts are not a measurement of financial performance or liquidity under GAAP and should not be considered as an alternative to the Company’s financial information determined under GAAP. For a description of the Company’s use of these adjusted items and a reconciliation with comparable GAAP items, see the section of this press release titled “Reconciliation of GAAP to Adjusted Financial Information.” Please refer to our financial statements, prepared in accordance with GAAP, for purposes of evaluating our financial condition, results of operations, and cash flows.

About Houlihan Lokey

Houlihan Lokey, Inc. (NYSE:HLI) is a global investment bank with expertise in mergers and acquisitions, capital solutions, financial restructuring, and financial and valuation advisory. Houlihan Lokey serves corporations, institutions, and governments worldwide with offices in the Americas, Europe, the Middle East, and the Asia-Pacific region. Independent advice and intellectual rigor are hallmarks of the firm’s commitment to client success across its advisory services. The firm is the No. 1 investment bank for all global M&A transactions for the past two years, the No. 1 M&A advisor for the past 10 years in the U.S., the No. 1 global restructuring advisor for the past 11 years, and the No. 1 global M&A fairness opinion advisor over the past 25 years, all based on number of transactions and according to data provided by LSEG.

For more information, please visit www.HL.com.

Appendix

Condensed Consolidated Balance Sheets (Unaudited)
Condensed Consolidated Statements of Income (Unaudited)
Reconciliation of GAAP to Adjusted Financial Information (Unaudited)

HOULIHAN LOKEY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In thousands, except share data and par value)	March 31, 2025				March 31, 2024
Assets
Cash and cash equivalents	$	971,007			$	721,235
Restricted cash		4,572				619
Investment securities		195,624				38,005
Accounts receivable, net of allowance for credit losses		257,326				199,630
Unbilled work in process, net of allowance for credit losses		157,760				192,012
Income taxes receivable		—				32,856
Deferred income taxes		92,776				90,064
Property and equipment, net		149,350				136,701
Operating lease right-of-use assets		362,669				344,024
Goodwill		1,284,589				1,127,497
Other intangible assets, net		212,670				197,439
Other assets		131,365				90,677
Total assets	$	3,819,708			$	3,170,759
Liabilities and stockholders' equity
Liabilities:
Accrued salaries and bonuses	$	936,619			$	726,031
Accounts payable and accrued expenses		137,228				114,171
Deferred income		48,215				33,139
Income taxes payable		6,396				—
Deferred income taxes		8,784				7,505
Operating lease liabilities		438,185				415,412
Other liabilities		69,404				37,751
Total liabilities		1,644,831				1,334,009
Stockholders' equity:
Class A common stock, $0.001 par value. Authorized 1,000,000,000 shares; issued and outstanding 53,822,189 and 52,348,511 shares, respectively		54				52
Class B common stock, $0.001 par value. Authorized 1,000,000,000 shares; issued and outstanding 16,021,106 and 16,746,676 shares, respectively		16				17
Additional paid-in capital		843,350				739,870
Retained earnings		1,394,738				1,163,419
Accumulated other comprehensive loss		(63,281	)			(66,608	)
Total stockholders’ equity		2,174,877				1,836,750
Total liabilities and stockholders’ equity	$	3,819,708			$	3,170,759

HOULIHAN LOKEY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
	Three Months Ended March 31,								Year Ended March 31,
(In thousands, except share and per share data)		2025				2024				2025				2024
Revenues	$	666,422			$	520,456			$	2,389,416			$	1,914,404
Operating expenses:
Employee compensation and benefits		409,850				320,077				1,469,491				1,177,355
Acquisition related compensation and benefits		20,694				9,448				54,777				36,234
Travel, meals, and entertainment		14,893				17,804				64,917				65,298
Rent		21,165				20,661				77,882				76,079
Depreciation and amortization		15,409				8,261				41,270				28,536
Information technology and communications		18,511				16,849				69,400				60,168
Professional fees		11,304				13,808				41,202				49,077
Other operating expenses		15,391				10,851				68,933				58,796
Total operating expenses		527,217				417,759				1,887,872				1,551,543
Operating income		139,205				102,697				501,544				362,861
Other income, net		(11,050	)			(15,342	)			(29,791	)			(27,678	)
Income before provision for income taxes		150,255				118,039				531,335				390,539
Provision for income taxes		28,335				36,962				131,624				110,238
Net income	$	121,920			$	81,077			$	399,711			$	280,301
Weighted average shares of common stock outstanding:
Basic		66,216,014				64,579,004				65,724,473				64,337,975
Fully diluted		69,183,454				68,492,023				68,658,347				68,159,390
Earnings per share attributable to Houlihan Lokey, Inc.
Basic	$	1.84			$	1.26			$	6.08			$	4.36
Fully diluted	$	1.76			$	1.18			$	5.82			$	4.11

HOULIHAN LOKEY, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO ADJUSTED FINANCIAL INFORMATION
(UNAUDITED)
	Three Months Ended March 31,								Year Ended March 31,
(In thousands, except share and per share data)		2025				2024				2025				2024
Revenues	$	666,422			$	520,456			$	2,389,416			$	1,914,404
Employee compensation and benefits expenses
Employee compensation and benefits expenses (GAAP)	$	430,544			$	329,525			$	1,524,268			$	1,213,589
Less: Acquisition related compensation and benefits		(20,694	)			(9,448	)			(54,777	)			(36,234	)
Employee compensation and benefits expenses (adjusted)		409,850				320,077				1,469,491				1,177,355
Non-compensation expenses
Non-compensation expenses (GAAP)	$	96,673			$	88,234			$	363,604			$	337,954
Less: Acquisition related legal structure reorganization		(1,754	)			(3,514	)			(6,578	)			(6,117	)
Less: Integration and acquisition related costs		—				(1,278	)			(8,222	)			(7,002	)
Less: Acquisition amortization		(9,654	)			(2,479	)			(19,328	)			(10,754	)
Non-compensation expenses (adjusted)		85,265				80,963				329,476				314,081
Operating income
Operating income (GAAP)	$	139,205			$	102,697			$	501,544			$	362,861
Plus: Adjustments (1)		32,102				16,719				88,905				60,107
Operating income (adjusted)		171,307				119,416				590,449				422,968
Other income, net
Other income, net (GAAP)	$	(11,050	)		$	(15,342	)		$	(29,791	)		$	(27,678	)
Plus: Change in acquisition earnout liability fair value		1,851				9,557				1,023				10,373
Other income, net (adjusted)		(9,199	)			(5,785	)			(28,768	)			(17,305	)
Provision for income taxes
Provision for income taxes (GAAP)	$	28,335			$	36,962			$	131,624			$	110,238
Plus/(less): Impact of the excess tax benefit for stock vesting		(1,582	)			—				20,339				7,299
Plus: Release of the provision for an uncertain tax position as a result of the successful closure of a city audit		11,954				—				11,954				—
Less: Non-deductible acquisition related costs		(2,208	)			(1,676	)			(3,670	)			(2,355	)
Less: Reversal of deferred tax asset		—				—				(1,690	)			—
Adjusted provision for income taxes		36,499				35,286				158,557				115,182
Plus: Resulting tax impact (2)		7,700				2,152				26,225				14,668
Provision for income taxes (adjusted)		44,199				37,438				184,782				129,850
Net income
Net income (GAAP)	$	121,920			$	81,077			$	399,711			$	280,301
Plus: Adjustments (3)		14,387				6,686				34,724				30,122
Net income (adjusted)	$	136,307			$	87,763			$	434,435			$	310,423
Fully diluted shares outstanding
Fully diluted shares outstanding (GAAP)		69,183,454				68,492,023				68,658,347				68,159,390
Plus: Impact of unvested GCA retention and deferred share awards		282,498				755,020				406,479				1,034,118
Fully diluted shares outstanding (adjusted)		69,465,952				69,247,043				69,064,826				69,193,508
Diluted EPS attributable to Houlihan Lokey, Inc. (GAAP)	$	1.76			$	1.18			$	5.82			$	4.11
Diluted EPS attributable to Houlihan Lokey, Inc. (adjusted)	$	1.96			$	1.27			$	6.29			$	4.49

		(1)		The aggregate of adjustments from employee compensation and benefits and non-compensation expenses.
		(2)		Reflects the tax impact of utilizing the adjusted effective tax rate on the non-tax adjustments identified above.
		(3)		Consists of all adjustments identified above net of the associated tax impact.

 

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