Houlihan Lokey Inc.

HLI
Financial Analysis · Updated May 18, 2026 · Coverage 2026-Q2
Latest Q Revenue
$636M
Q4 FY2026 · -4.5% YoY · Missed consensus by 10.7%
TTM ROIC
22.9%
FY2026 · Adj. Net Income / Avg. Shareholders' Equity (ROE; traditional ROIC deemed not meaningful for capital-light advisory firm) · WACC ~10.5% · Moat spread +12.4pp

Financial Snapshot


ticker: HLI step: 04 generated: 2026-05-13 source: quick-research

Houlihan Lokey Inc. (HLI) — Financial Snapshot

Note: Houlihan Lokey's fiscal year ends March 31.

Income Statement Summary

Metric FY2023 FY2024 FY2025 YoY
Revenue $1.81B $1.91B $2.39B +25.1%
Net Income $280M $400M +43%
EPS (diluted, GAAP) $4.11 $5.82 +41.6%
Adj. EPS $4.49 $6.29 +40%

FY2025 record: 25% increase in closed transactions drove the revenue and earnings surge. Segment mix: Corporate Finance ~64%, Financial Restructuring ~23%, FVA ~13%. Q4 FY2025 (Jan–Mar 2025): revenue $666M (+28% vs Q4 FY2024's $520M). FY2026 (ongoing): Q2 FY2026 slides show accelerating revenue growth and record FY2026 revenue trajectory. Corporate Finance grew 36% YoY in Q3 FY2025 — driven by middle-market M&A recovery. Restructuring revenues modest but elevated backlog.

Cash Flow & Balance Sheet

Metric Value
Revenue Model 100% advisory fees (no balance sheet risk)
Market Position #1 Global M&A advisor by deal count (415 in 2024)
Restructuring #1 Global by deal count (88 in 2024)
Fairness Opinions #1 since 2000 (1,243 deals cumulative)
Employees 2,702 across 35 locations

Capital-light model: no proprietary trading, no lending. Primary expenses are compensation (~55–60% of revenue) and G&A. No complex balance sheet management unlike LPL or Raymond James. Free cash flow closely tracks net income.

Key Ratios (approximate)

  • P/E: ~29–33x (trailing FY2025 EPS $5.82 — premium to Evercore's 18x, reflecting HLI's all-weather model)
  • Revenue Growth: +25% (FY2025); FY2026 record trajectory
  • Net Margin: ~16.7% (FY2025); improving from ~14.7% (FY2024)
  • 3-year EPS CAGR: ~25%+ (FY2022→FY2025)

Growth Profile

Houlihan Lokey has grown revenue from $1.81B (FY2023) to $2.39B (FY2025) — nearly 32% in two fiscal years — entirely organically. The all-weather model (Corporate Finance + Restructuring + FVA) means the firm never has a truly catastrophic year: when M&A slows, Restructuring accelerates. The 25% transaction volume increase in FY2025 reflects the M&A recovery plus Houlihan Lokey capturing market share from bulge brackets as middle-market sponsors prefer boutique independence. FY2026 shows continued acceleration per investor slides.

Forward Estimates

  • FY2026 (ending March 2026): Record revenues; analyst avg PT $216.80 implies further EPS growth
  • Analyst consensus: Buy (7 analysts); avg PT $216.80, range $163 (UBS Neutral) to $235 (bull)
  • UBS more cautious: $163 target, citing valuation premium
  • Key driver: Middle-market M&A + Restructuring backlog converts to revenue with 6–12 month lag

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $HLI.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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