EX-99.1 2 q4fy25-ex991.htm EX-99.1 Document
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Houlihan Lokey Reports Fiscal Year and Fourth Quarter 2025 Financial Results
– Record Fiscal Year 2025 Revenues of $2.39 billion –
– Fiscal Year 2025 Diluted EPS of $5.82 –
– Adjusted Fiscal Year 2025 Diluted EPS of $6.29 –
– Fourth Quarter Fiscal 2025 Revenues of $666 million –
– Fourth Quarter Fiscal 2025 Diluted EPS of $1.76 –
– Adjusted Fourth Quarter Fiscal 2025 Diluted EPS of $1.96 –
– Announces a 5% Increase in the Quarterly Dividend to $0.60 per Share –

LOS ANGELES and NEW YORK - May 7, 2025 - Houlihan Lokey, Inc. (NYSE:HLI) (“Houlihan Lokey” or the “Company”) today reported financial results for its fiscal year and fourth quarter ended March 31, 2025. For the fiscal year, revenues were $2.39 billion, compared with $1.91 billion for the fiscal year ended March 31, 2024. For the fourth quarter ended March 31, 2025, revenues were $666 million, compared with $520 million for the fourth quarter ended March 31, 2024.
Net income was $400 million, or $5.82 per diluted share, for the fiscal year ended March 31, 2025, compared with $280 million, or $4.11 per diluted share, for the fiscal year ended March 31, 2024. Adjusted net income for the fiscal year ended March 31, 2025 was $434 million, or $6.29 per diluted share, compared with $310 million, or $4.49 per diluted share, for the fiscal year ended March 31, 2024.
Net income was $122 million, or $1.76 per diluted share, for the fourth quarter ended March 31, 2025, compared with $81 million, or $1.18 per diluted share, for the fourth quarter ended March 31, 2024. Adjusted net income for the fourth quarter ended March 31, 2025 was $136 million, or $1.96 per diluted share, compared with $88 million, or $1.27 per diluted share, for the fourth quarter ended March 31, 2024.
“Fiscal 2025 was a record year for our firm as all three groups ended the year with a strong fourth quarter. While current volatility makes meaningful forecasts difficult, we are well positioned to handle the uncertainty of current market conditions,” stated Scott Adelson, Chief Executive Officer of Houlihan Lokey.
Selected Financial Data
(In thousands, except per share data)
U.S. GAAP
Three Months Ended March 31,Year Ended March 31,
2025202420252024
Revenues by segment
Corporate Finance$412,709 $287,579 $1,526,756 $1,106,826 
Financial Restructuring164,546 155,381 544,478 521,984 
Financial and Valuation Advisory89,167 77,496 318,182 285,594 
Revenues
666,422 520,456 2,389,416 1,914,404 
Operating expenses:
Employee compensation and benefits430,544 329,525 1,524,268 1,213,589 
Non-compensation expenses96,673 88,234 363,604 337,954 
Operating income
139,205 102,697 501,544 362,861 
Other income, net(11,050)(15,342)(29,791)(27,678)
Income before provision for income taxes
150,255 118,039 531,335 390,539 
Provision for income taxes
28,335 36,962 131,624 110,238 
Net income$121,920 $81,077 $399,711 $280,301 
Diluted earnings per share attributable to Houlihan Lokey, Inc.
$1.76 $1.18 $5.82 $4.11 
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Revenues

For the fiscal year ended March 31, 2025, revenues were $2.39 billion, compared with $1.91 billion for the fiscal year ended March 31, 2024. For the fiscal year ended March 31, 2025, CF revenues increased 38%, Financial Restructuring (“FR”) revenues increased 4%, and Financial and Valuation Advisory (“FVA”) revenues increased 11% when compared with the fiscal year ended March 31, 2024.

For the fourth quarter ended March 31, 2025, revenues were $666 million, compared with $520 million for the fourth quarter ended March 31, 2024. For the fourth quarter ended March 31, 2025, CF revenues increased 44%, FR revenues increased 6%, and FVA revenues increased 15% when compared with the fourth quarter ended March 31, 2024.

Expenses

The Company’s employee compensation and benefits expenses, non-compensation expenses, and provision for income taxes during the periods presented and described below are on a GAAP and an adjusted basis.
U.S. GAAPAdjusted (Non-GAAP) *
Year Ended March 31,
($ in thousands)2025202420252024
Expenses:
Employee compensation and benefits$1,524,268 $1,213,589 $1,469,491 $1,177,355 
% of Revenues63.8 %63.4 %61.5 %61.5 %
Non-compensation$363,604 $337,954 $329,476 $314,081 
% of Revenues15.2 %17.7 %13.8 %16.4 %
Per full-time employee (1)
$137 $130 $124 $121 
Provision for Income Taxes$131,624 $110,238 $184,782 $129,850 
% of Pre-Tax Income24.8 %28.2 %29.8 %29.5 %
*Adjusted figures represent non-GAAP information. See “Non-GAAP Financial Measures” and the tables at the end of this release for an explanation of the adjustments and reconciliations to the comparable GAAP numbers.
(1)Calculated using the average of the number of full-time employees at the beginning of the reporting period and the end of the reporting period.

U.S. GAAPAdjusted (Non-GAAP) *
Three Months Ended March 31,
($ in thousands)2025202420252024
Expenses:
Employee compensation and benefits$430,544 $329,525 $409,850 $320,077 
% of Revenues64.6 %63.3 %61.5 %61.5 %
Non-compensation$96,673 $88,234 $85,265 $80,963 
% of Revenues14.5 %17.0 %12.8 %15.6 %
Per full-time employee (1)
$36 $34 $32 $31 
Provision for Income Taxes$28,335 $36,962 $44,199 $37,438 
% of Pre-Tax Income18.9 %31.3 %24.5 %29.9 %
*Adjusted figures represent non-GAAP information. See “Non-GAAP Financial Measures” and the tables at the end of this release for an explanation of the adjustments and reconciliations to the comparable GAAP numbers.
(1)Calculated using the average of the number of full-time employees at the beginning of the reporting period and the end of the reporting period.


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Year Ended March 31, 2025 Compared to the Year Ended March 31, 2024

Employee compensation and benefits expenses were $1.52 billion for the fiscal year ended March 31, 2025, compared with $1.21 billion for the fiscal year ended March 31, 2024. This resulted in a GAAP compensation ratio of 63.8% for the fiscal year ended March 31, 2025, compared with 63.4% for the fiscal year ended March 31, 2024. Adjusted employee compensation and benefits expenses were $1.47 billion for the fiscal year ended March 31, 2025, compared with $1.18 billion for the fiscal year ended March 31, 2024. This resulted in an adjusted compensation ratio of 61.5% for both the fiscal year ended March 31, 2025 and March 31, 2024. The increase in GAAP and adjusted employee compensation and benefits expenses was primarily a result of an increase in revenues for the year when compared with the prior year.

Non-compensation expenses were $364 million for the fiscal year ended March 31, 2025, compared with $338 million for the fiscal year ended March 31, 2024. The increase in GAAP non-compensation expenses was primarily a result of an increase in depreciation and amortization, other operating expenses, and information technology and communications expenses, partially offset by a decrease in professional fees. Adjusted non-compensation expenses were $329 million for the fiscal year ended March 31, 2025, compared with $314 million for the fiscal year ended March 31, 2024. The increase in adjusted non-compensation expenses was primarily a result of an increase in other operating expenses, information technology and communication expenses, and depreciation and amortization, partially offset by a decrease in professional fees when compared with the prior year.

The provision for income taxes was $132 million, representing an effective tax rate of 24.8% for the fiscal year ended March 31, 2025, compared with $110 million, representing an effective tax rate of 28.2%, for the fiscal year ended March 31, 2024. The decrease in the Company’s GAAP effective tax rate for the year ended March 31, 2025, relative to the same period in 2024, was primarily a result of the release of the provision for an uncertain tax position as a result of the successful closure of a city audit. The adjusted provision for income taxes was $185 million, representing an adjusted effective tax rate of 29.8%, for the fiscal year ended March 31, 2025, compared with $130 million, representing an adjusted effective tax rate of 29.5%, for the fiscal year ended March 31, 2024.

Quarter Ended March 31, 2025 Compared to the Quarter Ended March 31, 2024

Employee compensation and benefits expenses were $431 million for the fourth quarter ended March 31, 2025, compared with $330 million for the fourth quarter ended March 31, 2024. This resulted in a GAAP compensation ratio of 64.6% for the fourth quarter ended March 31, 2025, compared with 63.3% for the fourth quarter ended March 31, 2024. Adjusted employee compensation and benefits expenses were $410 million for the fourth quarter ended March 31, 2025, compared with $320 million for the fourth quarter ended March 31, 2024. This resulted in an adjusted compensation ratio of 61.5% for both the fourth quarter ended March 31, 2025 and March 31, 2024. The increase in GAAP and adjusted employee compensation and benefits expenses was primarily a result of an increase in revenues when compared with the same quarter last year.

Non-compensation expenses were $97 million for the fourth quarter ended March 31, 2025, compared with $88 million for the fourth quarter ended March 31, 2024. The increase in GAAP non-compensation expenses was primarily a result of an increase in depreciation and amortization, other operating expenses, and information technology and communications expenses, partially offset by a decrease in travel, meals, and entertainment expenses. Adjusted non-compensation expenses were $85 million for the quarter ended March 31, 2025, compared with $81 million for the fourth quarter ended March 31, 2024. The increase in adjusted non-compensation expenses was primarily a result of an increase in other operating expenses and information technology and communication expenses, partially offset by a decrease in travel, meals, and entertainment expenses when compared with the same quarter last year.

The provision for income taxes was $28 million, representing an effective tax rate of 18.9%, for the fourth quarter ended March 31, 2025, compared with $37 million, representing an effective tax rate of 31.3%, for the fourth quarter ended March 31, 2024. The decrease in the Company’s GAAP effective tax rate for the fourth quarter ended March 31, 2025, relative to the same period in 2024, was primarily a result of decreased state taxes and the release of the provision for an uncertain tax position as a result of the successful closure of a city audit. The adjusted provision for income taxes was $44 million, representing an adjusted effective tax rate of 24.5%, for the fourth quarter ended March 31, 2025, compared with $37 million, representing an adjusted effective tax rate of 29.9%, for the fourth quarter ended March 31, 2024. The decrease in the Company’s adjusted tax rate during the fourth quarter ended March 31, 2025, relative to the same period in 2024, was primarily a result of decreased state taxes.
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Segment Reporting for the Fourth Quarter

Corporate Finance
CF revenues were $413 million for the fourth quarter ended March 31, 2025, compared with $288 million for the fourth quarter ended March 31, 2024. Revenues increased primarily due to an increase in the number of closed transactions, which was driven by favorable market conditions. Revenues also increased due to an increase in the average transaction fee on closed transactions, which was driven by transaction mix and does not represent a trend in the average fee on closed transactions.
Three Months Ended March 31,Year Ended March 31,
($ in thousands)2025202420252024
Corporate Finance
Revenues$412,709 $287,579 $1,526,756 $1,106,826 
# of Managing Directors240 223 240 223 
# of Closed transactions (1)
147 121 564 450 

Financial Restructuring
FR revenues were $165 million for the fourth quarter ended March 31, 2025, compared with $155 million for the fourth quarter ended March 31, 2024. Revenues increased primarily due to an increase in the number of closed transactions, which was driven by favorable market conditions for restructuring transactions. Revenues also increased due to an increase in the average transaction fee on closed transactions, which was driven by transaction mix and does not represent a trend in the average fee on closed transactions.
Three Months Ended March 31,Year Ended March 31,
($ in thousands)2025202420252024
Financial Restructuring
Revenues$164,546 $155,381 $544,478 $521,984 
# of Managing Directors57 54 57 54 
# of Closed transactions (1)
38 35 145 126 
Financial and Valuation Advisory
FVA revenues were $89 million for the quarter ended March 31, 2025, compared with $77 million for the fourth quarter ended March 31, 2024. Revenues increased due to an increase in the number of Fee Events, driven by improvements in the M&A markets, which affected one or more of the service lines within our FVA business.
Three Months Ended March 31,Year Ended March 31,
($ in thousands)2025202420252024
Financial and Valuation Advisory
Revenues$89,167 $77,496 $318,182 $285,594 
# of Managing Directors42 39 42 39 
# of Fee Events (1)
1,224 1,025 2,441 2,178 
(1)A Fee Event includes any engagement that involves revenue activity during the measurement period based on a revenue minimum of one thousand dollars. References in this press release to closed transactions should be understood to be the same as transactions that are “effectively closed” as described in our periodic reports on Forms 10-K and 10-Q.

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Other Announcements

The Board of Directors of the Company declared a regular quarterly cash dividend of $0.60 per share of Class A and Class B common stock. The dividend will be payable on June 15, 2025 to stockholders of record as of the close of business on June 2, 2025.

Investor Conference Call and Webcast

The Company will host a conference call and live webcast at 5:00 p.m. Eastern Time on Wednesday, May 7, 2025, to discuss its full year and fourth quarter fiscal 2025 results. The number to call is 1-800-343-4136 (domestic) or 1-203-518-9843 (international). A live webcast will be available in the Investor Relations section of the Company’s website. A replay of the conference call will be available from May 7, 2025 through May 14, 2025, by dialing 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and entering the passcode 11158904#. A replay of the webcast will be archived and available on the Company’s website.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. You can identify these statements by our use of the words “assumes,” “believes,” “estimates,” “expects,” “guidance,” “intends,” “plans,” “projects,” and similar expressions that do not relate to historical matters. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties, and other factors which are, in some cases, beyond the Company’s control and could materially affect actual results, performance, or achievements. For a further description of such factors, you should read the Company’s filings with the Securities and Exchange Commission. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. The Company does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Non-GAAP Financial Measures
Adjusted net income, total and on a per share basis, and certain adjusted items used to determine adjusted net income, are presented and discussed in this earnings press release and are non-GAAP measures that management believes, when presented together with comparable GAAP measures, are useful to investors in understanding the Company’s operating results. The adjusted items included in this earnings press release as calculated by the Company are not necessarily comparable to similarly titled measures reported by other companies. Additionally, these adjusted amounts are not a measurement of financial performance or liquidity under GAAP and should not be considered as an alternative to the Company’s financial information determined under GAAP. For a description of the Company’s use of these adjusted items and a reconciliation with comparable GAAP items, see the section of this press release titled “Reconciliation of GAAP to Adjusted Financial Information.” Please refer to our financial statements, prepared in accordance with GAAP, for purposes of evaluating our financial condition, results of operations, and cash flows.

About Houlihan Lokey

Houlihan Lokey, Inc. (NYSE:HLI) is a global investment bank with expertise in mergers and acquisitions, capital solutions, financial restructuring, and financial and valuation advisory. Houlihan Lokey serves corporations, institutions, and governments worldwide with offices in the Americas, Europe, the Middle East, and the Asia-Pacific region. Independent advice and intellectual rigor are hallmarks of the firm’s commitment to client success across its advisory services. The firm is the No. 1 investment bank for all global M&A transactions for the past two years, the No. 1 M&A advisor for the past 10 years in the U.S., the No. 1 global restructuring advisor for the past 11 years, and the No. 1 global M&A fairness opinion advisor over the past 25 years, all based on number of transactions and according to data provided by LSEG.

For more information, please visit www.HL.com.
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Contact Information
Investor Relations
212.331.8225
IR@HL.com		ORMedia Relations
212.331.8223
PR@HL.com

Appendix
Condensed Consolidated Balance Sheets (Unaudited)
Condensed Consolidated Statements of Income (Unaudited)
Reconciliation of GAAP to Adjusted Financial Information (Unaudited)

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HOULIHAN LOKEY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In thousands, except share data and par value)March 31, 2025March 31, 2024
Assets
Cash and cash equivalents$971,007 $721,235 
Restricted cash4,572 619 
Investment securities195,624 38,005 
Accounts receivable, net of allowance for credit losses257,326 199,630 
Unbilled work in process, net of allowance for credit losses157,760 192,012 
Income taxes receivable— 32,856 
Deferred income taxes92,776 90,064 
Property and equipment, net149,350 136,701 
Operating lease right-of-use assets362,669 344,024 
Goodwill1,284,589 1,127,497 
Other intangible assets, net212,670 197,439 
Other assets131,365 90,677 
Total assets$3,819,708 $3,170,759 
Liabilities and stockholders' equity
Liabilities:
Accrued salaries and bonuses$936,619 $726,031 
Accounts payable and accrued expenses137,228 114,171 
Deferred income48,215 33,139 
Income taxes payable6,396 — 
Deferred income taxes8,784 7,505 
Operating lease liabilities438,185 415,412 
Other liabilities69,404 37,751 
Total liabilities1,644,831 1,334,009 
Stockholders' equity:
Class A common stock, $0.001 par value. Authorized 1,000,000,000 shares; issued and outstanding 53,822,189 and 52,348,511 shares, respectively54 52 
Class B common stock, $0.001 par value. Authorized 1,000,000,000 shares; issued and outstanding 16,021,106 and 16,746,676 shares, respectively16 17 
Additional paid-in capital843,350 739,870 
Retained earnings1,394,738 1,163,419 
Accumulated other comprehensive loss(63,281)(66,608)
Total stockholders’ equity2,174,877 1,836,750 
Total liabilities and stockholders’ equity$3,819,708 $3,170,759 
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HOULIHAN LOKEY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended March 31,Year Ended March 31,
(In thousands, except share and per share data)2025202420252024
Revenues$666,422 $520,456 $2,389,416 $1,914,404 
Operating expenses:
Employee compensation and benefits409,850 320,077 1,469,491 1,177,355 
Acquisition related compensation and benefits20,694 9,448 54,777 36,234 
Travel, meals, and entertainment14,893 17,804 64,917 65,298 
Rent21,165 20,661 77,882 76,079 
Depreciation and amortization15,409 8,261 41,270 28,536 
Information technology and communications18,511 16,849 69,400 60,168 
Professional fees11,304 13,808 41,202 49,077 
Other operating expenses15,391 10,851 68,933 58,796 
Total operating expenses527,217 417,759 1,887,872 1,551,543 
Operating income139,205 102,697 501,544 362,861 
Other income, net(11,050)(15,342)(29,791)(27,678)
Income before provision for income taxes150,255 118,039 531,335 390,539 
Provision for income taxes28,335 36,962 131,624 110,238 
Net income$121,920 $81,077 $399,711 $280,301 
Weighted average shares of common stock outstanding:
Basic66,216,014 64,579,004 65,724,473 64,337,975 
Fully diluted69,183,454 68,492,023 68,658,347 68,159,390 
Earnings per share attributable to Houlihan Lokey, Inc.
Basic$1.84 $1.26 $6.08 $4.36 
Fully diluted$1.76 $1.18 $5.82 $4.11 

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HOULIHAN LOKEY, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO ADJUSTED FINANCIAL INFORMATION
(UNAUDITED)
Three Months Ended March 31,Year Ended March 31,
(In thousands, except share and per share data)2025202420252024
Revenues$666,422 $520,456 $2,389,416 $1,914,404 
Employee compensation and benefits expenses
Employee compensation and benefits expenses (GAAP)$430,544 $329,525 $1,524,268 $1,213,589 
Less: Acquisition related compensation and benefits(20,694)(9,448)(54,777)(36,234)
Employee compensation and benefits expenses (adjusted)409,850 320,077 1,469,491 1,177,355 
Non-compensation expenses
Non-compensation expenses (GAAP)$96,673 $88,234 $363,604 $337,954 
Less: Acquisition related legal structure reorganization(1,754)(3,514)(6,578)(6,117)
Less: Integration and acquisition related costs— (1,278)(8,222)(7,002)
Less: Acquisition amortization(9,654)(2,479)(19,328)(10,754)
Non-compensation expenses (adjusted)85,265 80,963 329,476 314,081 
Operating income
Operating income (GAAP)$139,205 $102,697 $501,544 $362,861 
Plus: Adjustments (1)
32,102 16,719 88,905 60,107 
Operating income (adjusted)171,307 119,416 590,449 422,968 
Other income, net
Other income, net (GAAP)$(11,050)$(15,342)$(29,791)$(27,678)
Plus: Change in acquisition earnout liability fair value1,851 9,557 1,023 10,373 
Other income, net (adjusted)(9,199)(5,785)(28,768)(17,305)
Provision for income taxes
Provision for income taxes (GAAP)$28,335 $36,962 $131,624 $110,238 
Plus/(less): Impact of the excess tax benefit for stock vesting(1,582)— 20,339 7,299 
Plus: Release of the provision for an uncertain tax position as a result of the successful closure of a city audit11,954 — 11,954 — 
Less: Non-deductible acquisition related costs(2,208)(1,676)(3,670)(2,355)
Less: Reversal of deferred tax asset— — (1,690)— 
Adjusted provision for income taxes36,499 35,286 158,557 115,182 
Plus: Resulting tax impact (2)
7,700 2,152 26,225 14,668 
Provision for income taxes (adjusted)44,199 37,438 184,782 129,850 
Net income
Net income (GAAP)$121,920 $81,077 $399,711 $280,301 
Plus: Adjustments (3)
14,387 6,686 34,724 30,122 
Net income (adjusted)$136,307 $87,763 $434,435 $310,423 
Fully diluted shares outstanding
Fully diluted shares outstanding (GAAP)69,183,454 68,492,023 68,658,347 68,159,390 
Plus: Impact of unvested GCA retention and deferred share awards282,498 755,020 406,479 1,034,118 
Fully diluted shares outstanding (adjusted)69,465,952 69,247,043 69,064,826 69,193,508 
Diluted EPS attributable to Houlihan Lokey, Inc. (GAAP)$1.76 $1.18 $5.82 $4.11 
Diluted EPS attributable to Houlihan Lokey, Inc. (adjusted)$1.96 $1.27 $6.29 $4.49 
(1)The aggregate of adjustments from employee compensation and benefits and non-compensation expenses.
(2)Reflects the tax impact of utilizing the adjusted effective tax rate on the non-tax adjustments identified above.
(3)Consists of all adjustments identified above net of the associated tax impact.
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