Houlihan Lokey (HLI) Q2 2026 earnings summary

Executive summary

• Revenues for the quarter ended September 30, 2025, reached $659.5 million, up 15% year-over-year, driven by strong Corporate Finance and Financial and Valuation Advisory performance.

• Net income rose 19% year-over-year to $111.8 million, with diluted EPS of $1.63 and adjusted EPS of $1.84, up 26%.

• Operating income grew 16% to $151.3 million, reflecting higher revenues and controlled non-compensation expenses.

• All business segments showed revenue growth, with notable momentum in corporate finance and international operations.

• Five new Managing Directors were hired, and progress was made on the acquisition pipeline.

Financial highlights

• Corporate Finance revenues were $439 million, up 21% year-over-year, with 171 transactions closed, up from 131.

• Financial Restructuring revenues were $134 million, up 2% year-over-year, with 37 transactions closed, up from 33.

• Financial and Valuation Advisory revenues were $87 million, up 10% year-over-year, with 1,075 fee events, up 19%.

• Compensation expenses for the quarter were $423 million (64.2% of revenues), with adjusted compensation at $406 million (61.5%).

• Non-compensation expenses were $85 million; adjusted non-compensation expenses were $82 million.

Outlook and guidance

• Management expressed optimism for continued momentum in the second half of the year, citing a strong business model and improving market conditions.

• Corporate finance backlog suggests a strong Q4 relative to Q3, diverging from typical seasonality.

• Positive outlook for continued year-over-year growth and ongoing momentum in deal activity.

• The company expects to remain in compliance with financial covenants and maintain strong liquidity.