What were HLI's second-quarter fiscal 2027 revenue and diluted earnings per share?

Revenue was $692 million and diluted earnings per share were $1.64 for the quarter ended September 30, 2026. For the quarter ended September 30, 2025, revenue was $660 million and diluted earnings per share were $1.63.

Houlihan Lokey Q2 FY2027 profit falls to $109M

The $0.70 quarterly dividend on Class A and Class B shares is payable December 15, 2026, to holders of record December 1, 2026.

Filing Impact

(Moderate)

Filing Sentiment

(Neutral)How Sentiment works

Sentiment and the balance of points

Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.

How Sentiment works How the balance works

Form Type

8-K

Rhea-AI Filing Summary

Houlihan Lokey, Inc. (HLI) reported fiscal 2027 second-quarter revenue of $692 million for the quarter ended September 30, 2026, compared with $660 million a year earlier. Net income attributable to Houlihan Lokey was $109 million, or $1.64 per diluted share, versus $111 million and $1.63. Adjusted (non-GAAP) net income was $124 million, or $1.85 per diluted share, versus $127 million and $1.84.

Corporate Finance revenue was $481 million, up 10%, reflecting higher average transaction fees. Financial Restructuring revenue was $118 million, down 12%, as fewer transactions closed, partly offset by higher average fees. Financial and Valuation Advisory revenue was $93 million, up 7%, reflecting growth in non-cyclical businesses.

During the quarter, the company repurchased 397 thousand shares under its share repurchase program and had $888 million of cash and cash equivalents and investment securities as of September 30, 2026. The board declared a regular quarterly cash dividend of $0.70 per Class A and Class B share, payable December 15, 2026, to stockholders of record December 1, 2026. CEO Scott Adelson said the company expects solid performance across its businesses for the remainder of the year, while remaining cautious due to volatility in external factors.

2 points · 0 major

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance works How Sentiment works

0 major · 1 point

How the balance works

Positive

Moderate pointCorporate Finance revenue rose 10% to $481 million.
Moderate pointFinancial and Valuation Advisory revenue rose 7% to $93 million.

Negative

Moderate pointFinancial Restructuring revenue fell 12% to $118 million.

Filing Explained

For the six months ended September 30, 2026, Houlihan Lokey reported revenue of $1,203 million versus $1,265 million in the prior-year period; revenue was lower year over year.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

Key Figures

Revenue: $692 million Net income attributable to Houlihan Lokey, Inc. (GAAP): $109 million Diluted earnings per share (GAAP): $1.64 +5 more

8 metrics

Revenue $692 million Second quarter ended September 30, 2026; compared with $660 million for the second quarter ended September 30, 2025

Net income attributable to Houlihan Lokey, Inc. (GAAP) $109 million Second quarter ended September 30, 2026; compared with $111 million for the second quarter ended September 30, 2025

Diluted earnings per share (GAAP) $1.64 Second quarter ended September 30, 2026; compared with $1.63 for the second quarter ended September 30, 2025

Adjusted net income attributable to Houlihan Lokey, Inc. $124 million Second quarter ended September 30, 2026; compared with $127 million for the second quarter ended September 30, 2025

Adjusted diluted earnings per share $1.85 Second quarter ended September 30, 2026; compared with $1.84 for the second quarter ended September 30, 2025

Quarterly cash dividend $0.70 per share Class A and Class B common stock; payable December 15, 2026, to stockholders of record December 1, 2026

Shares repurchased 397 thousand shares During the second quarter ended September 30, 2026, under the share repurchase program

Cash and cash equivalents and investment securities $888 million As of September 30, 2026

Key Terms

Adjusted net income, compensation ratio, Fee Event, contingent consideration

4 terms

Adjusted net income financial

"Adjusted net income attributable to Houlihan Lokey, Inc. was $124 million"

Adjusted net income is a company's reported profit after removing unusual, one-time, or non-operational items so the number reflects the business’s regular earning power. Investors use it like a cleaned-up scorecard — similar to judging a player’s season performance without a few fluke games — to compare companies or assess trends without being misled by rare gains or losses that won’t affect future cash flow.

compensation ratio financial

"This resulted in a compensation ratio of 63.7%"

The compensation ratio compares the total pay awarded to a top executive (often the CEO) with the pay of a typical employee, usually by dividing the executive’s total compensation by the company’s median worker pay. It matters to investors because it reveals how pay is distributed inside a company—like a snapshot of priorities—helping assess governance, cost structure and potential risks to morale, reputation or labor costs.

Fee Event financial

"A Fee Event includes any engagement that involves revenue activity"

A fee event is an occurrence or trigger that causes a charge or series of charges to be applied under an agreement, contract, or service—like a scheduled bill, a usage milestone, or a change in terms that starts a new fee. It matters to investors because fee events alter cash flows and profitability—similar to when a recurring subscription raises its price—so they can affect a company’s revenue, costs, and the value or returns of an investment.

contingent consideration financial

"fair value remeasurement of acquisition-related contingent consideration"

Contingent consideration is an additional payment agreed when one company buys another that will be paid later only if specific future targets are met, such as revenue, profit, or regulatory milestones. It matters to investors because it shifts risk between buyer and seller and affects the acquiring company's future cash flow and reported value — like promising a bonus after results are proven.

Earnings Snapshot

Revenue: $692 million · Guidance included

Second quarter fiscal 2027 ended September 30, 2026

Revenue $692 million Compared with $660 million for the second quarter ended September 30, 2025

Net income attributable to Houlihan Lokey, Inc. (GAAP) $109 million Compared with $111 million for the second quarter ended September 30, 2025

Diluted earnings per share (GAAP) $1.64 Compared with $1.63 for the second quarter ended September 30, 2025

Adjusted net income attributable to Houlihan Lokey, Inc. $124 million Compared with $127 million for the second quarter ended September 30, 2025

Adjusted diluted earnings per share $1.85 Compared with $1.84 for the second quarter ended September 30, 2025

Guidance

CEO Scott Adelson said the company expects solid performance across its businesses for the remainder of the year, while remaining cautious due to volatility of external factors.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What dividend did HLI declare for the third quarter of fiscal 2027?

The board declared a regular quarterly cash dividend of $0.70 per share of Class A and Class B common stock. It is payable December 15, 2026, to stockholders of record as of the close of business December 1, 2026.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Available on EDGAR 10/28/2026 - 04:35 PM EDT Accepted by SEC EDGAR 10/28/2026 - 04:34 PM EDT

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported):

October 28, 2026


Houlihan Lokey, Inc.

(Exact Name of Registrant as Specified in Charter)

Delaware

001-37537

95-2770395

(State or Other Jurisdiction of
Incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

10250 Constellation Blvd.

5th Floor

Los Angeles, California 90067

(Address of principal executive offices) (Zip Code)

310-553-8871

Registrant’s telephone number, including area code:

N/A

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol(s)

Name of each exchange on which registered

Class A Common Stock, par value $0.001

HLI

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).


Emerging growth company			☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02. Results of Operations and Financial Condition.

On October 28, 2026, Houlihan Lokey, Inc. issued a press release announcing its financial results for the second fiscal quarter ended September 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein.

The information in Item 2.02 of this Current Report on Form 8-K, including the information contained in Exhibit 99.1, is being furnished to the Securities and Exchange Commission pursuant to Item 2.02, and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by a specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

99.1 Press Release dated October 28, 2026

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date:

October 28, 2026

Houlihan Lokey, Inc.

By:

/s/ J. Lindsey Alley

Name: J. Lindsey Alley

Position: Chief Financial Officer

EXHIBIT INDEX


Exhibit No.						Description

99.1						Press Release dated October 28, 2026

Houlihan Lokey Reports Second Quarter Fiscal 2027 Financial Results

– Second Quarter Fiscal 2027 Revenues of $692 million –

– Second Quarter Fiscal 2027 Diluted EPS of $1.64 –

– Adjusted Second Quarter Fiscal 2027 Diluted EPS of $1.85 –

– Announces Dividend of $0.70 per Share for Third Quarter Fiscal 2027 –

LOS ANGELES - October 28, 2026 - Houlihan Lokey, Inc. (NYSE:HLI) (“Houlihan Lokey” or the “Company”) today reported financial results for its second quarter ended September 30, 2026.

For the second quarter ended September 30, 2026, revenues were $692 million, compared with $660 million for the second quarter ended September 30, 2025.

Net income attributable to Houlihan Lokey, Inc. was $109 million, or $1.64 per diluted share, for the second quarter ended September 30, 2026, compared with $111 million, or $1.63 per diluted share, for the second quarter ended September 30, 2025. Adjusted net income attributable to Houlihan Lokey, Inc. was $124 million, or $1.85 per diluted share, for the second quarter ended September 30, 2026, compared with $127 million, or $1.84 per diluted share, for the second quarter ended September 30, 2025.

“Improving market conditions resulted in a stronger second quarter,” stated Scott Adelson, Chief Executive Officer of Houlihan Lokey. “While we remain cautious due to the volatility of external factors, we expect to see solid performance across our businesses for the remainder of the year.”

Selected Financial Data


(In millions, except per share data)	U.S. GAAP
	Three Months Ended September 30,				Six Months Ended September 30,
	2026		2025		2026		2025
Revenues by segment
Corporate Finance	$	481	$	439	$	784	$	837
Financial Restructuring	118		134		237		262
Financial and Valuation Advisory	93		87		182		166
Revenues	692		660		1,203		1,265
Operating expenses:
Compensation	441		423		769		816
Non-compensation	97		86		202		208
Operating income	154		151		232		241
Other (income) expense, net	(5)		(9)		(13)		(17)
Income before provision for income taxes	159		160		245		258
Provision for income taxes	49		49		57		49
Net income	110		111		188		209
Net (income) loss attributable to noncontrolling interest	(1)		—		(1)		—
Net income attributable to Houlihan Lokey, Inc.	$	109	$	111	$	187	$	209

Diluted earnings per share attributable to Houlihan Lokey, Inc.	$	1.64	$	1.63	$	2.78	$	3.04

Revenues

For the second quarter ended September 30, 2026, revenues were $692 million, compared with $660 million for the second quarter ended September 30, 2025. For the second quarter ended September 30, 2026, Corporate Finance (“CF”) revenues increased 10%, Financial Restructuring (“FR”) revenues decreased (12)%, and Financial and Valuation Advisory (“FVA”) revenues increased 7%, in each case, when compared with the second quarter ended September 30, 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) (1)
	Three Months Ended September 30,
($ in millions)	2026			2025			2026			2025
Expenses:
Compensation	$	441		$	423		$	426		$	406
% of Revenues (2)	63.7		%	64.2		%	61.5		%	61.5		%
Non-compensation	$	97		$	86		$	91		$	83
% of Revenues (2)	14.0		%	12.9		%	13.3		%	12.5		%

Provision for income taxes	$	49		$	49		$	54		$	53
% of Pre-tax income (2)	30.6		%	30.2		%	30.0		%	29.7		%


	U.S. GAAP						Adjusted (Non-GAAP) (1)
	Six Months Ended September 30,
($ in millions)	2026			2025			2026			2025
Expenses:
Compensation	$	769		$	816		$	740		$	778
% of Revenues (2)	63.9		%	64.5		%	61.5		%	61.5		%
Non-compensation	$	202		$	208		$	191		$	177
% of Revenues (2)	16.8		%	16.4		%	15.9		%	14.0		%

Provision for income taxes	$	57		$	49		$	67		$	52
% of Pre-tax income (2)	23.3		%	18.9		%	23.6		%	16.0		%

(1)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.

(2)The percentages are presented as calculated; therefore, they may not recalculate precisely due to rounding.

Compensation expenses were $441 million for the second quarter ended September 30, 2026, compared with $423 million for the second quarter ended September 30, 2025. This resulted in a compensation ratio of 63.7% for the second quarter ended September 30, 2026, compared with 64.2% for the second quarter ended September 30, 2025. Adjusted compensation expenses were $426 million for the second quarter ended September 30, 2026, compared with $406 million for the second quarter ended September 30, 2025. This resulted in an adjusted compensation ratio of 61.5% for both the second quarter ended September 30, 2026 and the second quarter ended September 30, 2025. The increase in GAAP and adjusted compensation expenses was primarily a result of an increase in revenues for the quarter when compared with the same quarter last year.

Non-compensation expenses were $97 million for the second quarter ended September 30, 2026, compared with $86 million for the second quarter ended September 30, 2025. Adjusted non-compensation expenses were $91 million for the second quarter ended September 30, 2026, compared with $83 million for the second quarter ended September 30, 2025. The increase in GAAP and adjusted non-compensation expenses was primarily a result of an increase in rent expense and other operating expenses when compared with the same quarter last year.

The effective tax rate was 30.6% for the second quarter ended September 30, 2026, compared with 30.2% for the second quarter ended September 30, 2025. The adjusted effective tax rate was 30.0% for the second quarter ended September 30, 2026, compared with 29.7% for the second quarter ended September 30, 2025.

Segment Reporting for the Second Fiscal Quarter

Corporate Finance

CF revenues were $481 million for the second quarter ended September 30, 2026, compared with $439 million for the second quarter ended September 30, 2025. Revenues increased due to an increase in the average transaction fee on closed transactions, which was driven by transaction mix and improved market conditions for M&A and capital markets transactions. This increase was partially offset by a decline in the number of closed transactions, which we believe does not represent a trend.


	Three Months Ended September 30,				Six Months Ended September 30,
($ in millions)	2026		2025		2026		2025
Corporate Finance
Revenues	$	481	$	439	$	784	$	837
# of Managing Directors (1)	267		242		267		242
# of Closed transactions (2)	142		171		269		296

Financial Restructuring

FR revenues were $118 million for the second quarter ended September 30, 2026, compared with $134 million for the second quarter ended September 30, 2025. Revenues decreased primarily due to a decrease in the number of closed transactions, driven by timing of transaction closings. This was partially offset by an increase in the average transaction fee on closed transactions, driven by transaction mix, which we believe does not represent a trend.


	Three Months Ended September 30,				Six Months Ended September 30,
($ in millions)	2026		2025		2026		2025
Financial Restructuring
Revenues	$	118	$	134	$	237	$	262
# of Managing Directors (1)	57		58		57		58
# of Closed transactions (2)	27		37		50		72

Financial and Valuation Advisory

FVA revenues were $93 million for the second quarter ended September 30, 2026, compared with $87 million for the second quarter ended September 30, 2025. Revenues increased due to growth in our non-cyclical businesses.


	Three Months Ended September 30,				Six Months Ended September 30,
($ in millions)	2026		2025		2026		2025
Financial and Valuation Advisory
Revenues	$	93	$	87	$	182	$	166
# of Managing Directors (1)	46		45		46		45
# of Fee Events (2)	1,071		1,075		1,554		1,517

(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 December 15, 2026 to stockholders of record as of the close of business on December 1, 2026. Also, during the second quarter ended September 30, 2026, the Company repurchased 397 thousand shares as part of its share repurchase program. As of September 30, 2026, the Company had $888 million of 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, October 28, 2026, to discuss its second quarter fiscal 2027 results. The number to call is 1-844-501-1995 (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 October 28, 2026 through November 4, 2026, by dialing 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and entering the passcode 10212286. 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,” “indicates,” “suggests,” “sees,” “will,” 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, determined by applying the tax rates in effect in the jurisdictions for which the non-tax adjustment relates; and

•significant discrete tax related items, including (1) acquisition-related costs which are non-deductible for income tax purposes and (2) other unusual or unique tax-related items and activities.

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 millions, except par value)	September 30, 2026		March 31, 2026
Assets:
Cash and cash equivalents	$	837	$	1,189

Investment securities	51		170
Accounts receivable, net of allowance for credit losses	285		228
Unbilled work in progress, net of allowance for credit losses	267		271


Property and equipment, net	148		143
Operating lease right-of-use assets	410		407
Goodwill	1,471		1,396
Other intangible assets, net	212		204
Other assets	294		301
Total assets	$	3,975	$	4,309

Liabilities, temporary equity and stockholders' equity
Liabilities:
Accrued salaries and bonuses	$	775	$	1,077
Accounts payable and accrued expenses	102		136







Operating lease liabilities	494		492
Other liabilities	186		151
Total liabilities	1,557		1,856

Redeemable noncontrolling interest	111		111

Stockholders' equity:
Class A common stock, $0.001 par value. Authorized 1,000 shares; issued and outstanding 54.0 and 54.2 shares, respectively	—		—
Class B common stock, $0.001 par value. Authorized 1,000 shares; issued and outstanding 15.4 and 15.3 shares, respectively	—		—

Additional paid-in capital	631		746
Retained earnings	1,726		1,645
Accumulated other comprehensive loss	(50)		(49)
Total stockholders’ equity	2,307		2,342
Total liabilities, temporary equity and stockholders’ equity	$	3,975	$	4,309

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)


	Three Months Ended September 30,				Six Months Ended September 30,
(In millions, except per share amounts)	2026		2025		2026		2025
Revenues	$	692	$	660	$	1,203	$	1,265
Operating expenses:
Employee compensation and benefits	426		406		740		778
Acquisition related compensation and benefits	15		17		29		38
Travel, meals, and entertainment	17		15		36		35
Rent	22		18		43		36
Depreciation and amortization	10		10		18		26
Information technology and communications	19		17		38		35
Professional fees	10		10		27		22
Other operating expenses	19		16		40		36
Revaluation of acquisition contingent consideration	—		—		—		18
Total operating expenses	538		509		971		1,024
Operating income	154		151		232		241
Other (income) expense, net	(5)		(9)		(13)		(17)
Income before provision for income taxes	159		160		245		258
Provision for income taxes	49		49		57		49
Net income	110		111		188		209
Net (income) loss attributable to noncontrolling interest	(1)		—		(1)		—
Net income attributable to Houlihan Lokey, Inc.	$	109	$	111	$	187	$	209

Weighted average shares of common stock outstanding:
Basic	66.6		67.0		66.6		66.6
Fully diluted	67.0		68.6		67.3		68.8
Earnings per share
Basic	$	1.64	$	1.67	$	2.81	$	3.14
Fully diluted	$	1.64	$	1.63	$	2.78	$	3.04

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO ADJUSTED FINANCIAL INFORMATION

(UNAUDITED)


	Three Months Ended September 30,				Six Months Ended September 30,
(In millions, except per share data)	2026		2025		2026		2025
Revenues	$	692	$	660	$	1,203	$	1,265

Compensation expenses
Compensation expenses (GAAP)	$	441	$	423	$	769	$	816

Less: Acquisition related compensation and benefits (1)	(15)		(17)		(29)		(38)
Compensation expenses (adjusted)	426		406		740		778

Non-compensation expenses
Non-compensation expenses (GAAP)	$	97	$	86	$	202	$	208
Less: Acquisition related legal structure reorganization (2)	—		—		—		(1)
Less: Integration and acquisition related costs (3)	(3)		—		(6)		—
Less: Acquisition amortization (4)	(3)		(3)		(5)		(12)
Less: Revaluation of acquisition contingent consideration (5)	—		—		—		(18)

Non-compensation expenses (adjusted)	91		83		191		177

Operating income
Operating income (GAAP)	$	154	$	151	$	232	$	241
Plus: Adjustments (6)	21		20		40		69
Operating income (adjusted)	175		171		272		310

Other (income) expense, net
Other (income) expense, net (GAAP)	$	(5)	$	(9)	$	(13)	$	(17)




Other (income) expense, net (adjusted)	(5)		(9)		(13)		(17)

Provision for income taxes
Provision for income taxes (GAAP)	$	49	$	49	$	57	$	49


Less: Non-deductible acquisition related costs (7)	—		(1)		—		(2)

Adjusted provision for income taxes	49		48		57		47
Plus: Resulting tax impact (8)	5		5		10		5
Provision for income taxes (adjusted)	54		53		67		52

Net (income) loss attributable to noncontrolling interest
Net (income) loss attributable to noncontrolling interest (GAAP)	$	(1)	$	—	$	(1)	$	—
Less: Impact of adjustments on noncontrolling interest, net of tax (9)	(1)		—		(2)		—
Net (income) loss attributable to noncontrolling interest (adjusted)	(2)		—		(3)		—

Net income attributable to Houlihan Lokey, Inc.
Net income attributable to Houlihan Lokey, Inc. (GAAP)	$	109	$	111	$	187	$	209
Plus: Adjustments (10)	15		16		28		66
Net income attributable to Houlihan Lokey, Inc. (adjusted)	$	124	$	127	$	215	$	275

Fully diluted shares outstanding
Fully diluted shares outstanding (GAAP)	67.0		68.6		67.3		68.8
Plus: Impact of unvested GCA retention and deferred share awards	—		0.3		—		0.3
Fully diluted shares outstanding (adjusted)	67.0		68.9		67.3		69.1

Fully diluted EPS (GAAP)	$	1.64	$	1.63	$	2.78	$	3.04
Fully diluted EPS (adjusted)	$	1.85	$	1.84	$	3.20	$	3.98

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)Reflects acquisition-related costs which are non-deductible for income tax purposes.

(8)Reflects the tax impact of the non-tax adjustments identified above.

(9)Reflects the impact of adjustments attributable to the noncontrolling interest, net of tax.

(10)Consists of all adjustments identified above, net of the associated tax impact.

Source: View Original Filing on SEC EDGAR

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