Houlihan Lokey (HLI) Q4 2026 earnings summary

Executive summary

• Achieved record annual revenue of $2.62 billion for fiscal 2026, up from $2.39 billion year-over-year, with a five-year revenue CAGR of 11% and adjusted EPS of $7.56, up 20% year-over-year.

• Maintained strong adjusted pre-tax margins at 23.0% in FY 2026, with diversified business across Corporate Finance, Financial Restructuring, and Financial and Valuation Advisory.

• Fourth quarter revenue was $636 million with adjusted EPS of $1.63; both Corporate Finance and FVA had their highest Q4 revenues ever.

• Global presence with 33 locations and 2,776 employees, including 354 Managing Directors.

• Business resilience and diversification highlighted amid geopolitical uncertainty and macroeconomic pressures, with optimism for fiscal 2027.

Financial highlights

• Corporate Finance Q4 revenue: $434 million, up 5% year-over-year; 171 transactions closed, up from 147; average transaction fee decreased.

• Financial Restructuring Q4 revenue: $110 million; FY revenue: $529 million, down 3% year-over-year; 30 transactions closed, down 21%.

• Financial and Valuation Advisory Q4 revenue: $91 million, up 3% year-over-year; 1,248 fee events, up 2%.

• Adjusted net income for FY 2026 was $518 million, up from $434 million year-over-year; adjusted pre-tax income reached $619 million.

• Ended quarter with $1.36 billion in unrestricted cash, cash equivalents, and investment securities.

Outlook and guidance

• Expect continued elevated performance in Financial Restructuring for FY 2027, driven by widening credit spreads and sector dislocation.

• Corporate Finance backlog and pipeline remain strong, with growth expected outside the U.S.; technology sector remains pressured.

• FVA momentum has normalized, with growth anticipated in FY 2027.

• Anticipates continued growth through organic hiring, strategic acquisitions, and expansion of service offerings.

• Management remains optimistic about prospects across all three business lines despite market uncertainty entering fiscal 2027.