Houlihan Lokey (HLI) investor relations material

Executive summary

• Q2 FY27 revenue rose 5% YoY to $692M; GAAP diluted EPS was $1.64 and adjusted diluted EPS was $1.85.

• First-half revenue declined 5% to $1.203B and adjusted net income fell to $215M from $275M YoY.

Financial highlights

• Q2 net income attributable to common stockholders was $109M versus $111M YoY; adjusted net income was $124M versus $127M.

• Q2 operating income increased 2% to $154M; operating expenses rose 6% to $538M, including compensation expense of $441M and non-compensation expense of $97M.

• First-half operating income declined 4% to $232M, and net income attributable to common stockholders fell to $187M from $209M.

Outlook and guidance

• Management expects solid performance across businesses for the rest of FY27 and an unseasonably stronger second half, conditional on supportive market conditions.

• Restructuring revenue is expected to rise in H2, with elevated activity extending through FY2028; software mandates are expected to contribute in calendar 2027 and 2028.

• FY2027 adjusted compensation expense ratio target remains 61.5%; adjusted effective tax rate guidance is 26%–28%.

• Growth priorities include global expansion, senior hiring, acquisitions and joint ventures, and increased Managing Director productivity.