Houlihan Lokey Reports Fiscal Year and Fourth Quarter 2026 Financial Results

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05/06/2026 - 04:40 PM

– Record Fiscal Year 2026 Revenues of $2.62 billion –
– Fiscal Year 2026 Diluted EPS of $6.22 –
– Adjusted Fiscal Year 2026 Diluted EPS of $7.56 –

– Fourth Quarter Fiscal 2026 Revenues of $636 million –
– Fourth Quarter Fiscal 2026 Diluted EPS of $1.47 –
– Adjusted Fourth Quarter Fiscal 2026 Diluted EPS of $1.63 –

– Announces a 16.7% increase in the Quarterly Dividend to $0.70 per Share –

LOS ANGELES--(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, 2026. For the fiscal year, revenues were $2.62 billion, compared with $2.39 billion for the fiscal year ended March 31, 2025. For the fourth quarter ended March 31, 2026, revenues were $636 million, compared with $666 million for the fourth quarter ended March 31, 2025.

Net income attributable to Houlihan Lokey, Inc. was $426 million, or $6.22 per diluted share, for the fiscal year ended March 31, 2026, compared with $400 million, or $5.82 per diluted share, for the fiscal year ended March 31, 2025. Adjusted net income attributable to Houlihan Lokey, Inc. was $518 million, or $7.56 per diluted share, for the fiscal year ended March 31, 2026, compared with $434 million, or $6.29 per diluted share, for the fiscal year ended March 31, 2025.

Net income attributable to Houlihan Lokey, Inc. was $100 million, or $1.47 per diluted share, for the fourth quarter ended March 31, 2026, compared with $122 million, or $1.76 per diluted share, for the fourth quarter ended March 31, 2025. Adjusted net income attributable to Houlihan Lokey, Inc. was $111 million, or $1.63 per diluted share, for the fourth quarter ended March 31, 2026, compared with $136 million, or $1.96 per diluted share, for the fourth quarter ended March 31, 2025.

“Despite a challenging external environment, fiscal 2026 was another record year for our firm, demonstrating the resilience and diversification of our business model. Although there is some uncertainty in the market as we enter fiscal 2027, we remain optimistic about the prospects across all three of our business lines,” 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,
		2026			2025			2026			2025
Revenues by segment
Corporate Finance	$	433,766		$	412,709		$	1,744,634		$	1,526,756
Financial Restructuring		110,383			164,546			528,655			544,478
Financial and Valuation Advisory		91,494			89,167			344,227			318,182
Revenues		635,643			666,422			2,617,516			2,389,416
Operating expenses:
Compensation		408,781			430,544			1,683,391			1,524,268
Non-compensation		101,714			94,822			407,106			362,581
Operating income		125,148			141,056			527,019			502,567
Other (income) expense, net		(9,366	)		(9,199	)		(35,246	)		(28,768	)
Income before provision for income taxes		134,514			150,255			562,265			531,335
Provision for income taxes		36,202			28,335			138,091			131,624
Net income		98,312			121,920			424,174			399,711
Net (income) loss attributable to noncontrolling interest		1,523			—			1,523			—
Net income attributable to Houlihan Lokey, Inc.	$	99,835		$	121,920		$	425,697		$	399,711

Diluted earnings per share attributable to Houlihan Lokey, Inc.	$	1.47		$	1.76		$	6.22		$	5.82

Revenues

For the fiscal year ended March 31, 2026, revenues were $2.62 billion, compared with $2.39 billion for the fiscal year ended March 31, 2025. For the fiscal year ended March 31, 2026, Corporate Finance (“CF”) revenues increased 14%, Financial Restructuring (“FR”) revenues decreased (3)%, and Financial and Valuation Advisory (“FVA”) revenues increased 8% when compared with the fiscal year ended March 31, 2025.

For the fourth quarter ended March 31, 2026, revenues were $636 million, compared with $666 million for the fourth quarter ended March 31, 2025. For the fourth quarter ended March 31, 2026, CF revenues increased 5%, FR revenues decreased (33)%, and FVA revenues increased 3% when compared with the fourth quarter ended March 31, 2025.

Expenses

The Company’s compensation 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)*		2026			2025			2026			2025
Expenses:
Compensation	$	1,683,391		$	1,524,268		$	1,609,770		$	1,469,491
% of Revenues		64.3	%		63.8	%		61.5	%		61.5	%
Non-compensation	$	407,106		$	362,581		$	364,671		$	329,476
% of Revenues		15.6	%		15.2	%		13.9	%		13.8	%
Provision for income taxes	$	138,091		$	131,624		$	161,069		$	184,782
% of Pre-tax income		24.6	%		24.8	%		23.7	%		29.8	%

	U.S. GAAP						Adjusted (Non-GAAP) *
	Three Months Ended March 31,
*($ in thousands)*		2026			2025			2026			2025
Expenses:
Compensation	$	408,781		$	430,544		$	390,918		$	409,850
% of Revenues		64.3	%		64.6	%		61.5	%		61.5	%
Non-compensation	$	101,714		$	94,822		$	94,184		$	85,265
% of Revenues		16.0	%		14.2	%		14.8	%		12.8	%
Provision for income taxes	$	36,202		$	28,335		$	50,249		$	44,199
% of Pre-tax income		26.9	%		18.9	%		31.4	%		24.5	%

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.

Year Ended March 31, 2026 Compared to the Year Ended March 31, 2025

Compensation expenses were $1.68 billion for the fiscal year ended March 31, 2026, compared with $1.52 billion for the fiscal year ended March 31, 2025. This resulted in a compensation ratio of 64.3% for the fiscal year ended March 31, 2026, compared with 63.8% for the fiscal year ended March 31, 2025. Adjusted compensation expenses were $1.61 billion for the fiscal year ended March 31, 2026, compared with $1.47 billion for the fiscal year ended March 31, 2025. This resulted in an adjusted compensation ratio of 61.5% for both the fiscal year ended March 31, 2026 and March 31, 2025. The increase in GAAP and adjusted compensation expenses was a result of an increase in revenues for the year when compared with the prior year.

Non-compensation expenses were $407 million for the fiscal year ended March 31, 2026, compared with $363 million for the fiscal year ended March 31, 2025. The increase in non-compensation expenses was primarily a result of an increase in revaluation of acquisition contingent consideration, travel, meals, and entertainment, and information technology and communications expense. Adjusted non-compensation expenses were $365 million for the fiscal year ended March 31, 2026, compared with $329 million for the fiscal year ended March 31, 2025. The increase in adjusted non-compensation expenses was primarily a result of an increase in professional fees, travel, meals, and entertainment, information technology and communications, and depreciation and amortization when compared with the prior year.

The effective tax rate was 24.6% for the fiscal year ended March 31, 2026, compared with 24.8% for the fiscal year ended March 31, 2025. The adjusted effective tax rate was 23.7% for the fiscal year ended March 31, 2026, compared with 29.8% for the fiscal year ended March 31, 2025. The decrease in the Company’s adjusted effective tax rate was primarily a result of a policy change that we are no longer adjusting out the impact of stock-based compensation deductions.

Quarter Ended March 31, 2026 Compared to the Quarter Ended March 31, 2025

Compensation expenses were $409 million for the fourth quarter ended March 31, 2026, compared with $431 million for the fourth quarter ended March 31, 2025. This resulted in a compensation ratio of 64.3% for the fourth quarter ended March 31, 2026, compared with 64.6% for the fourth quarter ended March 31, 2025. Adjusted compensation expenses were $391 million for the fourth quarter ended March 31, 2026, compared with $410 million for the fourth quarter ended March 31, 2025. This resulted in an adjusted compensation ratio of 61.5% for both the fourth quarter ended March 31, 2026 and March 31, 2025. The decrease in GAAP and adjusted compensation expenses was a result of a decrease in revenues when compared with the same quarter last year.

Non-compensation expenses were $102 million for the fourth quarter ended March 31, 2026, compared with $95 million for the fourth quarter ended March 31, 2025. The increase in non-compensation expenses was primarily a result of an increase in travel, meals, and entertainment, rent, information technology and communications, and other operating expenses, partially offset by a decrease in depreciation and amortization. Adjusted non-compensation expenses were $94 million for the quarter ended March 31, 2026, compared with $85 million for the fourth quarter ended March 31, 2025. The increase in adjusted non-compensation expenses was primarily a result of an increase in travel, meals, and entertainment and information technology and communication expenses when compared with the same quarter last year.

The effective tax rate was 26.9% for the fourth quarter ended March 31, 2026, compared with 18.9% for the fourth quarter ended March 31, 2025. The increase in the Company’s effective tax rate for the fourth quarter ended March 31, 2026, relative to the same period in 2025, was primarily a result of increased state taxes and the release of a provision for an uncertain tax position during the fourth quarter ended March 31, 2025. The adjusted effective tax rate was 31.4% for the fourth quarter ended March 31, 2026, compared with 24.5% for the fourth quarter ended March 31, 2025. The increase in the Company’s adjusted effective tax rate during the fourth quarter ended March 31, 2026, relative to the same period in 2025, was primarily due to a larger quarterly true-up based on our annual adjusted effective tax rate.

Segment Reporting for the Fourth Fiscal Quarter

Corporate Finance

CF revenues were $434 million for the fourth quarter ended March 31, 2026, compared with $413 million for the fourth quarter ended March 31, 2025. Revenues increased primarily due to an increase in the number of closed transactions during the quarter, which was driven by favorable market conditions, partially offset by a decrease in the average transaction fee on closed transactions, which was driven by transaction mix and does not represent a short-term trend in the average fee on closed transactions.

	Three Months Ended March 31,				Year Ended March 31,
*($ in thousands)*		2026		2025		2026		2025
Corporate Finance
Revenues	$	433,766	$	412,709	$	1,744,634	$	1,526,756
# of Managing Directors ⁽¹⁾		251		240		251		240
# of Closed transactions ⁽²⁾		171		147		644		564

Financial Restructuring

FR revenues were $110 million for the fourth quarter ended March 31, 2026, compared with $165 million for the fourth quarter ended March 31, 2025. Revenues decreased primarily due to a decrease in the average transaction fee on closed transactions and a decrease in the number of closed transactions. The lower average transaction fee on closed transactions resulted from transaction mix and does not represent a trend, while the reduction in transaction volume was driven by timing of transaction closings and does not represent a trend.

	Three Months Ended March 31,				Year Ended March 31,
*($ in thousands)*		2026		2025		2026		2025
Financial Restructuring
Revenues	$	110,383	$	164,546	$	528,655	$	544,478
# of Managing Directors ⁽¹⁾		59		57		59		57
# of Closed transactions ⁽²⁾		30		38		143		145

Financial and Valuation Advisory

FVA revenues were $91 million for the quarter ended March 31, 2026, compared with $89 million for the fourth quarter ended March 31, 2025. Revenues increased due to an increase in the number of Fee Events, driven by improvements in the M&A markets.

	Three Months Ended March 31,				Year Ended March 31,
*($ in thousands)*		2026		2025		2026		2025
Financial and Valuation Advisory
Revenues	$	91,494	$	89,167	$	344,227	$	318,182
# of Managing Directors ⁽¹⁾		44		42		44		42
# of Fee Events ⁽¹⁾		1,248		1,224		2,519		2,441

(1)		As of the end of the respective reporting period.
(2)		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 annual report on Form 10-K.

Other Announcements

The Board of Directors of the Company declared a regular quarterly cash dividend of $0.70 per share of Class A and Class B common stock. The dividend will be payable on June 15, 2026 to stockholders of record as of the close of business on June 1, 2026. Also in our fourth fiscal quarter, we repurchased 301 thousand shares as part of our share repurchase program. As of March 31, 2026, the Company had $1.36 billion of unrestricted cash and cash equivalents and investment securities.

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 6, 2026, to discuss its full year and fourth quarter fiscal 2026 results. The number to call is 1-844-825-9789 (domestic) or 1-412-317-5180 (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 6, 2026 through May 13, 2026, by dialing 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and entering the passcode 10207810. 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

As a supplement to our financial measures presented in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company presents certain adjusted (non-GAAP) measures of financial performance. These non-GAAP financial measures are not intended to be considered in isolation from, as a substitute for, or as more important than, the financial information prepared and presented in accordance with GAAP. In addition, these non-GAAP measures have limitations in that they do not reflect all of the items associated with the Company’s results of operations as determined in accordance with GAAP.

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 financial and operating performance. The non-GAAP financial measures exclude the following items, as applicable in any given reporting period:

certain acquisition related costs, including (1) acquisition related deferred retention payments, which may be settled in cash or common stock of the Company; (2) amortization of intangible assets recognized in purchase accounting; (3) fair value remeasurements of acquisition-related contingent consideration; and (4) other integration and acquisition related costs, including asset write offs or impairments;
legal and other professional fees associated with the simplification of our legal entity structure that has resulted from acquisitions;
the income tax adjustments associated with the non-tax adjustments above, utilizing the adjusted effective tax rate; and
significant discrete tax related items, including (1) acquisition-related costs which are non-deductible for income tax purposes; (2) prior to fiscal year 2026, stock-based compensation tax deductions recognized upon vesting of stock-based awards, where the fair value at vesting exceeded the grant date fair value; and (3) other unusual or unique tax-related items and activities, including the reversal of deferred income taxes related to non-deductible expenses resulting from the senior management transition in fiscal 2025.

In the future, the Company may also consider whether other items should also be excluded in calculating the non-GAAP financial measures used by the Company.

These non-GAAP measures facilitate comparison of operating performance between periods and help investors to understand our underlying operating results by excluding certain items that may not be indicative of the Company’s core business, operating results, or future outlook. We consider quantitative and qualitative factors in assessing whether to adjust for the impact of items that could affect an understanding of our ongoing financial and business performance or trends. Internally, management uses these non-GAAP financial measures, along with GAAP financial measures, in assessing 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 additional descriptions 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.”

We encourage investors to review our GAAP financial statements and other regulatory filings for a comprehensive understanding of our financial condition, results of operations, and cash flows.

About Houlihan Lokey

Houlihan Lokey, Inc. (NYSE:HLI) is a leading global investment bank recognized for delivering independent strategic and financial advice to corporations, financial sponsors, and governments. With uniquely deep industry expertise, broad international reach, and a partnership approach rooted in trust, the firm provides innovative, integrated solutions across mergers and acquisitions, capital solutions, financial restructuring, and financial and valuation advisory. Our unmatched transaction volumes provide differentiated, data-driven perspectives that help our clients achieve their most critical goals. To learn more about Houlihan Lokey, please visit HL.com.

HOULIHAN LOKEY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

*(In thousands, except share data and par value)*	March 31, 2026			March 31, 2025
Assets:
Cash and cash equivalents	$	1,189,454		$	971,007
Investment securities		170,271			195,624
Accounts receivable, net of allowance for credit losses		228,307			257,326
Unbilled work in process, net of allowance for credit losses		271,243			157,760
Property and equipment, net		142,876			149,350
Operating lease right-of-use assets		407,454			362,669
Goodwill		1,395,857			1,284,589
Other intangible assets, net		204,202			212,670
Other assets		299,291			228,713
Total assets	$	4,308,955		$	3,819,708

Liabilities, temporary equity and stockholders' equity
Liabilities:
Accrued salaries and bonuses	$	1,076,593		$	936,619
Accounts payable and accrued expenses		135,944			137,228
Operating lease liabilities		492,108			438,185
Other liabilities		151,379			132,799
Total liabilities		1,856,024			1,644,831

Redeemable noncontrolling interest		110,554			—

Stockholders' equity:
Class A common stock, $0.001 par value. Authorized 1,000,000,000 shares; issued and outstanding 54,220,275 and 53,822,189 shares, respectively		54			54
Class B common stock, $0.001 par value. Authorized 1,000,000,000 shares; issued and outstanding 15,266,333 and 16,021,106 shares, respectively		15			16
Additional paid-in capital		746,118			843,350
Retained earnings		1,645,100			1,394,738
Accumulated other comprehensive loss		(48,910	)		(63,281	)
Total stockholders’ equity		2,342,377			2,174,877
Total liabilities, temporary equity and stockholders’ equity	$	4,308,955		$	3,819,708

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)*		2026			2025			2026			2025
Revenues	$	635,643		$	666,422		$	2,617,516		$	2,389,416
Operating expenses:
Employee compensation and benefits		390,918			409,850			1,609,770			1,469,491
Acquisition related compensation and benefits		17,863			20,694			73,621			54,777
Travel, meals, and entertainment		18,540			14,893			72,431			64,917
Rent		24,308			21,165			79,810			77,882
Depreciation and amortization		8,044			15,409			42,634			41,270
Information technology and communications		21,297			18,511			76,170			69,400
Professional fees		11,410			11,304			45,143			41,202
Other operating expenses		18,115			15,391			73,023			68,933
Revaluation of acquisition contingent consideration		—			(1,851	)		17,895			(1,023	)
Total operating expenses		510,495			525,366			2,090,497			1,886,849
Operating income		125,148			141,056			527,019			502,567
Other (income) expense, net		(9,366	)		(9,199	)		(35,246	)		(28,768	)
Income before provision for income taxes		134,514			150,255			562,265			531,335
Provision for income taxes		36,202			28,335			138,091			131,624
Net income		98,312			121,920			424,174			399,711
Net (income) loss attributable to noncontrolling interest		1,523			—			1,523			—
Net income attributable to Houlihan Lokey, Inc.	$	99,835		$	121,920		$	425,697		$	399,711

Weighted average shares of common stock outstanding:
Basic		66,341,893			66,216,014			66,547,768			65,724,473
Fully diluted		68,066,209			69,183,454			68,434,896			68,658,347
Earnings per share
Basic	$	1.50		$	1.84		$	6.40		$	6.08
Fully diluted	$	1.47		$	1.76		$	6.22		$	5.82

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)*		2026			2025			2026			2025
*Revenues*	$	635,643		$	666,422		$	2,617,516		$	2,389,416

*Compensation expenses*
Compensation expenses (GAAP)	$	408,781		$	430,544		$	1,683,391		$	1,524,268
Less: Acquisition related compensation and benefits ⁽¹⁾		(17,863	)		(20,694	)		(73,621	)		(54,777	)
Compensation expenses (adjusted)		390,918			409,850			1,609,770			1,469,491

*Non-compensation expenses*
Non-compensation expenses (GAAP)	$	101,714		$	94,822		$	407,106		$	362,581
Less: Acquisition related legal structure reorganization ⁽²⁾		—			(1,754	)		(1,467	)		(6,578	)
Less: Integration and acquisition related costs ⁽³⁾		(5,824	)		—			(7,993	)		(8,222	)
Less: Acquisition amortization ⁽⁴⁾		(1,706	)		(9,654	)		(15,080	)		(19,328	)
Less: Revaluation of acquisition contingent consideration ⁽⁵⁾		—			1,851			(17,895	)		1,023
Non-compensation expenses (adjusted)		94,184			85,265			364,671			329,476

*Operating income*
Operating income (GAAP)	$	125,148		$	141,056		$	527,019		$	502,567
Plus: Adjustments ⁽⁶⁾		25,393			30,251			116,056			87,882
Operating income (adjusted)		150,541			171,307			643,075			590,449

*Other (income) expense, net*
Other (income) expense, net (GAAP)	$	(9,366	)	$	(9,199	)	$	(35,246	)	$	(28,768	)
Other (income) expense, net (adjusted)		(9,366	)		(9,199	)		(35,246	)		(28,768	)

*Provision for income taxes*
Provision for income taxes (GAAP)	$	36,202		$	28,335		$	138,091		$	131,624
Plus (less): Impact of the excess tax benefit for stock vesting ⁽⁷⁾		—			(1,582	)		—			20,339
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 ⁽⁸⁾		(1,277	)		(2,208	)		(4,580	)		(3,670	)
Less: Reversal of deferred tax asset ⁽⁹⁾		—			—			—			(1,690	)
Adjusted provision for income taxes		34,925			36,499			133,511			158,557
Plus: Resulting tax impact ⁽¹⁰⁾		15,324			7,700			27,558			26,225
Provision for income taxes (adjusted)		50,249			44,199			161,069			184,782

*Net (income) loss attributable to noncontrolling interest*
Net (income) loss attributable to noncontrolling interest (GAAP)	$	1,523		$	—		$	1,523		$	—
Less: Impact of adjustments on noncontrolling interest, net of tax⁽¹¹⁾		(398	)		—			(398	)		—
Net (income) loss attributable to noncontrolling interest (adjusted)		1,125			—			1,125			—

*Net income attributable to Houlihan Lokey, Inc.*
Net income attributable to Houlihan Lokey, Inc. (GAAP)	$	99,835		$	121,920		$	425,697		$	399,711
Plus: Adjustments⁽¹²⁾		10,948			14,387			92,680			34,724
Net income attributable to Houlihan Lokey, Inc. (adjusted)	$	110,783		$	136,307		$	518,377		$	434,435

*Fully diluted shares outstanding*
Fully diluted shares outstanding (GAAP)		68,066,209			69,183,454			68,434,896			68,658,347
Plus: Impact of unvested GCA retention and deferred share awards		—			282,498			170,251			406,479
Fully diluted shares outstanding (adjusted)		68,066,209			69,465,952			68,605,147			69,064,826

Fully diluted EPS (GAAP)	$	1.47		$	1.76		$	6.22		$	5.82
Fully diluted EPS (adjusted)	$	1.63		$	1.96		$	7.56		$	6.29

Notes to Reconciliation of GAAP to Adjusted Financial Information

(1)		Reflects acquisition related deferred retention payments.
(2)		Reflects legal and other professional fees associated with the simplification of our legal entity structure that has resulted from acquisitions.
(3)		Reflects integration and acquisition related costs, including asset write offs or impairments.
(4)		Reflects amortization of intangible assets recognized in purchase accounting from our acquisitions.
(5)		Reflects the fair value remeasurement of acquisition‑related contingent consideration.
(6)		The aggregate of adjustments from compensation and non-compensation expenses.
(7)		Prior to fiscal 2026, reflects the exclusion of tax effects recognized upon the vesting of stock-based awards, which result from the difference between the fair value at vesting and the grant date fair value.
(8)		Reflects acquisition-related costs which are non-deductible for income tax purposes.
(9)		Represents the reversal of deferred income taxes related to non-deductible expenses resulting from the senior management transition in fiscal 2025.
(10)		Reflects the tax impact of utilizing the adjusted effective tax rate on the non-tax adjustments identified above.
(11)		Reflects the impact of adjustments attributable to the noncontrolling interest, net of tax.
(12)		Consists of all adjustments identified above, net of the associated tax impact.

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Source: Houlihan Lokey, Inc.

Houlihan Lokey Reports Fiscal Year and Fourth Quarter 2026 Financial Results

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