HOULIHAN LOKEY, INC. (HLI) Earnings History

HOULIHAN LOKEY, INC. - Q3 FY2026 EarningsBeat

Filed at: Jan 28, 2026, 7:06 PM EST|Read from source

EXECUTIVE SUMMARY

Houlihan Lokey reported strong third quarter results, driven by broad-based revenue growth across its segments and improving market conditions, particularly in private equity. The company highlighted its continued investment in talent and global expansion as key strategic priorities.

POSITIVE HIGHLIGHTS

  • •

    Revenues increased 13% year-over-year to $717 million, driven by strong performance in Corporate Finance (+12% YoY), Financial Restructuring (+19% YoY), and Financial and Valuation Advisory (+6% YoY).

    positive
  • •

    Diluted EPS increased 22% year-over-year to $1.70, and adjusted diluted EPS increased 18% to $1.94.

    positive
  • •

    Operating income grew 18% year-over-year to $160.7 million.

    positive
  • •

    The company declared a regular quarterly cash dividend of $0.60 per share.

    neutral

CONCERNS & RISKS

  • •

    GAAP compensation expenses increased 14% year-over-year to $458.6 million, leading to a higher compensation ratio of 64.0% compared to 63.5% in the prior year period.

    attention
  • •

    Adjusted non-compensation expenses increased 13% year-over-year to $93.7 million, primarily due to increases in information technology and communications, and professional fees.

    attention
  • •

    The effective tax rate increased to 31.3% from 34.3% on a GAAP basis, while the adjusted effective tax rate decreased to 30.6% from 33.3%.

    neutral

FINANCIAL METRICS

Revenue
Quarterly
$717.07M
+13.0%
Prior year: $634.43M
Annual (YTD)
$1.98B
N/A
Prior year: $1.72B
Net Income
Quarterly
$116.55M
+22.3%
Prior year: $95.30M
Annual (YTD)
$325.86M
N/A
Prior year: $277.79M
EPS (Diluted)
Quarterly
$1.70
+22.3%
Prior year: $1.39
Annual (YTD)
$4.74
N/A
Prior year: $4.05
Operating Income
Quarterly
$160.73B
N/A
EPS (Basic)
Quarterly
$1.75
+20.7%
Prior year: $1.45
Annual (YTD)
$4.89
N/A
Prior year: $4.24

MARGIN ANALYSIS

Operating Margin
Current Quarter
22.4%
Prior Year
21.4%
YoY Change
+100 bps
Net Margin
Current Quarter
16.3%
Prior Year
15.0%
YoY Change
+126 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q3 FY2026 2026

VISUAL OVERVIEW

|
Corporate Finance
0.0%
N/A
Financial Restructuring
0.0%
N/A
Financial and Valuation Advisory
0.0%
N/A

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% Total
Corporate Finance
N/A———
Financial Restructuring
N/A———
Financial and Valuation Advisory
N/A———
Total Revenue$0.00M——100.0%

Segment performance shows business unit health and growth drivers.

MANAGEMENT COMMENTARY

We continue to benefit from improving investor sentiment and acceleration in the private equity markets.

— HOULIHAN LOKEY, INC., Q3 FY2026 2026 Earnings Call

Most importantly, we continue to broaden and deepen our bench of exceptional talent around the world, most recently with our two transactions in Europe.

— HOULIHAN LOKEY, INC., Q3 FY2026 2026 Earnings Call

We are pleased with our results for the quarter and our performance year-to-date.

— HOULIHAN LOKEY, INC., Q3 FY2026 2026 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

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Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.