HLI · Houlihan Lokey, Inc.

Houlihan Lokey achieved record fiscal 2026 revenues of $2.62 billion, driven by 14% growth in Corporate Finance to $1.74 billion from increased closed transactions, 8% rise in Financial and Valuation Advisory to $344 million due to more fee events, offset by a 3% decline in Financial Restructuring to $529 million. GAAP compensation ratio held steady at 64.3% despite revenue growth, with adjusted at 61.5%. Non-compensation expenses rose to $407 million from higher revaluation of contingent consideration, travel, and IT costs; adjusted to $365 million. Effective tax rate was 24.6%, adjusted 23.7% due to policy change on stock-based compensation. In Q4, revenues fell to $636 million from $666 million, with Corporate Finance up 5% to $434 million on more transactions despite lower average fees from mix, Financial Restructuring down 33% to $110 million on fewer deals and fee mix, FVA up 3% to $91 million. Compensation decreased with revenues, ratio stable; non-comp expenses up on travel and IT. CEO Scott Adelson highlighted business resilience and diversification amid challenges, optimistic for fiscal 2027 across lines. Capital returns strengthened with 16.7% dividend hike to $0.70/share and 301k share repurchases, backed by $1.36 billion cash.