AI Earnings Predictions for Houlihan Lokey Inc. (HLI)

EX-99.1

2 a2q27-ex991.htm

EX-99.1

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Houlihan Lokey Reports Second Quarter Fiscal 2027 Financial Results

– Second Quarter Fiscal 2027 Revenues of $692 million –

– Second Quarter Fiscal 2027 Diluted EPS of $1.64 –

– Adjusted Second Quarter Fiscal 2027 Diluted EPS of $1.85 –

– Announces Dividend of $0.70 per Share for Third Quarter Fiscal 2027 –

LOS ANGELES - October 28, 2026 - Houlihan Lokey, Inc. (NYSE:HLI) (“Houlihan Lokey” or the “Company”) today reported financial results for its second quarter ended September 30, 2026.

For the second quarter ended September 30, 2026, revenues were $692 million, compared with $660 million for the second quarter ended September 30, 2025.

Net income attributable to Houlihan Lokey, Inc. was $109 million, or $1.64 per diluted share, for the second quarter ended September 30, 2026, compared with $111 million, or $1.63 per diluted share, for the second quarter ended September 30, 2025. Adjusted net income attributable to Houlihan Lokey, Inc. was $124 million, or $1.85 per diluted share, for the second quarter ended September 30, 2026, compared with $127 million, or $1.84 per diluted share, for the second quarter ended September 30, 2025.

“Improving market conditions resulted in a stronger second quarter,” stated Scott Adelson, Chief Executive Officer of Houlihan Lokey. “While we remain cautious due to the volatility of external factors, we expect to see solid performance across our businesses for the remainder of the year.”

Selected Financial Data

(In millions, except per share data)

U.S. GAAP

Three Months Ended September 30,Six Months Ended September 30,

2026202520262025

Revenues by segment

Corporate Finance$481 $439 $784 $837

Financial Restructuring118 134 237 262

Financial and Valuation Advisory93 87 182 166

Revenues 692 660 1,203 1,265

Operating expenses:

Compensation441 423 769 816

Non-compensation97 86 202 208

Operating income 154 151 232 241

Other (income) expense, net(5)(9)(13)(17)

Income before provision for income taxes 159 160 245 258

Provision for income taxes49 49 57 49

Net income 110 111 188 209

Net (income) loss attributable to noncontrolling interest(1)— (1)—

Net income attributable to Houlihan Lokey, Inc.$109 $111 $187 $209

Diluted earnings per share attributable to Houlihan Lokey, Inc. $1.64 $1.63 $2.78 $3.04

Revenues

For the second quarter ended September 30, 2026, revenues were $692 million, compared with $660 million for the second quarter ended September 30, 2025. For the second quarter ended September 30, 2026, Corporate Finance (“CF”) revenues increased 10%, Financial Restructuring (“FR”) revenues decreased (12)%, and Financial and Valuation Advisory (“FVA”) revenues increased 7%, in each case, when compared with the second quarter ended September 30, 2025.

1

Expenses

The Company’s compensation 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. GAAP

Adjusted (Non-GAAP) (1)

Three Months Ended September 30,

($ in millions)2026202520262025

Expenses:

Compensation$441 $423 $426 $406

% of Revenues (2) 63.7 %64.2 %61.5 %61.5 %

Non-compensation$97 $86 $91 $83

% of Revenues (2) 14.0 %12.9 %13.3 %12.5 %

Provision for income taxes$49 $49 $54 $53

% of Pre-tax income (2) 30.6 %30.2 %30.0 %29.7 %

U.S. GAAP

Adjusted (Non-GAAP) (1)

Six Months Ended September 30,

($ in millions)2026202520262025

Expenses:

Compensation$769 $816 $740 $778

% of Revenues (2) 63.9 %64.5 %61.5 %61.5 %

Non-compensation$202 $208 $191 $177

% of Revenues (2) 16.8 %16.4 %15.9 %14.0 %

Provision for income taxes$57 $49 $67 $52

% of Pre-tax income (2) 23.3 %18.9 %23.6 %16.0 %

(1)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.

(2)The percentages are presented as calculated; therefore, they may not recalculate precisely due to rounding.

Compensation expenses were $441 million for the second quarter ended September 30, 2026, compared with $423 million for the second quarter ended September 30, 2025. This resulted in a compensation ratio of 63.7% for the second quarter ended September 30, 2026, compared with 64.2% for the second quarter ended September 30, 2025. Adjusted compensation expenses were $426 million for the second quarter ended September 30, 2026, compared with $406 million for the second quarter ended September 30, 2025. This resulted in an adjusted compensation ratio of 61.5% for both the second quarter ended September 30, 2026 and the second quarter ended September 30, 2025. The increase in GAAP and adjusted compensation expenses was primarily a result of an increase in revenues for the quarter when compared with the same quarter last year.

Non-compensation expenses were $97 million for the second quarter ended September 30, 2026, compared with $86 million f

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