HOULIHAN LOKEY, INC. (HLI): Results of Operations and Financial Condition
HOULIHAN LOKEY, INC. (HLI) filed an SEC Form 8-K — Results of Operations and Financial Condition. Houlihan Lokey Reports First Quarter Fiscal 2027 Financial Results – First Quarter Fiscal 2027 Revenues of $511 million – – First Quarter Fiscal 2027 Diluted EPS of $1.15 – – Adjusted First Quarter Fiscal 2027 Diluted EPS of $1.35 – – Announces Dividend of $0.70 per Share for Sec
How this was made
The 30-second read
Why it matters
The filing discloses year-over-year declines in total revenues and both GAAP and adjusted EPS, attributes weakness to Corporate Finance and Financial Restructuring headwinds, and declares a dividend for the next quarter.
Market read
Traders can reassess near-term earnings power and segment momentum based on the disclosed quarterly numbers, segment drivers, and the dividend announcement.
What to watch
Investors may underweight the segment mix shift: FVA revenues rose 13% on higher fee events, which could cushion earnings even if Corporate Finance remains pressured.
First Quarter Fiscal 2027 Revenues of $511 million; First Quarter Fiscal 2027 Diluted EPS of $1.15; Adjusted First Quarter Fiscal 2027 Diluted EPS of $1.35.
Revenue, GAAP net income, adjusted net income, and diluted EPS were lower than the first quarter ended June 30, 2025, led by a $95 million decline in Corporate Finance revenue. Financial and Valuation Advisory revenue increased 13%, while the Company maintained its regular quarterly dividend and repurchased shares.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenuesGAAP | $511 million | – | – |
| Operating incomeGAAP | $78 million | – | – |
| Other (income) expense, netGAAP | $(8) million | – | – |
| Income before provision for income taxesGAAP | $86 million | – | – |
| Provision for income taxesGAAP | $8 million | – | – |
| Effective tax rateGAAP | 9.8% | – | – |
| Net incomeGAAP | $78 million | – | – |
| Net income attributable to Houlihan Lokey, Inc.GAAP | $78 million | – | – |
| Diluted earnings per share attributable to Houlihan Lokey, Inc.GAAP | $1.15 per diluted share | – | – |
| Adjusted net income attributable to Houlihan Lokey, Inc.non-GAAP | $91 million | – | – |
| Adjusted diluted earnings per sharenon-GAAP | $1.35 per diluted share | – | – |
| Compensation expensesGAAP | $328 million | – | – |
| Compensation ratioGAAP | 64.3% | – | – |
| Adjusted compensation expensesnon-GAAP | $314 million | – | – |
| Adjusted compensation rationon-GAAP | 61.5% | – | – |
| Non-compensation expensesGAAP | $105 million | – | – |
| Non-compensation expenses as a percentage of revenuesGAAP | 20.4% | – | – |
| Adjusted non-compensation expensesnon-GAAP | $100 million | – | – |
| Adjusted non-compensation expenses as a percentage of revenuesnon-GAAP | 19.5% | – | – |
| Adjusted provision for income taxesnon-GAAP | $13 million | – | – |
| Adjusted effective tax ratenon-GAAP | 12.6% | – | – |
| Corporate Finance Managing Directorsother | 260 | – | – |
| Corporate Finance closed transactionsother | 127 | – | – |
| Financial Restructuring Managing Directorsother | 58 | – | – |
| Financial Restructuring closed transactionsother | 23 | – | – |
| Financial and Valuation Advisory Managing Directorsother | 47 | – | – |
| Financial and Valuation Advisory Fee Eventsother | 1,042 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Corporate FinanceRevenue decreased due to a decrease in the average transaction fee on closed transactions, which was driven by transaction mix. | $303 million | – | decreased (24)% |
| Financial RestructuringRevenue decreased primarily due to a decrease in the number of closed transactions, partially offset by an increase in the average transaction fee on closed transactions. | $119 million | – | decreased (8)% |
| Financial and Valuation AdvisoryRevenue increased due to an increase in the number of Fee Events, driven by strong market demand across service lines. | $89 million | – | increased 13% |
Capital returns
- The Board of Directors declared a regular quarterly cash dividend of $0.70 per share of Class A and Class B common stock.
- The dividend will be payable on September 15, 2026 to stockholders of record as of the close of business on September 1, 2026.
- The Company repurchased 348 thousand shares as part of its share repurchase program during the first quarter ended June 30, 2026.
What drove it
- Corporate Finance revenue was affected by lower average transaction fees on closed transactions driven by transaction mix.
- Financial Restructuring transaction volume was affected by timing of transaction closings.
- Financial and Valuation Advisory reported strong market demand across service lines.
- The decrease in GAAP and adjusted compensation expenses was a result of a decrease in revenues when compared with the same quarter last year.
- The increase in GAAP and adjusted effective tax rates was primarily a result of decreased stock-based compensation deductions.
Concerns
- The Company cited ongoing headwinds in Corporate Finance, including instability in the Middle East and disruptions in the technology sector, specifically in software.
- Corporate Finance revenue decreased (24)% and Financial Restructuring revenue decreased (8)% compared with the first quarter ended June 30, 2025.
- Financial Restructuring closed transactions were 23, compared with 35 in the first quarter ended June 30, 2025.
- Adjusted non-compensation expenses were $100 million, compared with $94 million in the first quarter ended June 30, 2025.
What to watch
- The timing of the subsidence of Corporate Finance headwinds.
- Corporate Finance average transaction fees on closed transactions.
- Financial Restructuring transaction-closing timing and closed-transaction volume.
- Financial and Valuation Advisory Fee Events and market demand across service lines.
- The Company's stated support for improved performance for the balance of the year.
Balance sheet and cash flow
- As of June 30, 2026, the Company had $797 million of cash and cash equivalents and investment securities.
Analysis
Houlihan Lokey reported first quarter fiscal 2027 revenues of $511 million, compared with $605 million for the first quarter ended June 30, 2025. GAAP net income attributable to Houlihan Lokey, Inc. was $78 million, or $1.15 per diluted share, compared with $98 million, or $1.42 per diluted share. Adjusted net income attributable to Houlihan Lokey, Inc. was $91 million, or $1.35 per diluted share, compared with $148 million, or $2.14 per diluted share.
The revenue decline was concentrated in Corporate Finance, where revenue was $303 million versus $398 million and decreased (24)%. Management attributed the decline to lower average transaction fees on closed transactions driven by transaction mix. Financial Restructuring revenue was $119 million versus $128 million, with closed transactions of 23 versus 35; management identified timing of transaction closings as the driver of lower volume. Financial and Valuation Advisory was the growth business, with revenue of $89 million versus $79 million and a 13% increase, supported by higher Fee Events and strong market demand across service lines.
Expense metrics show lower GAAP compensation and non-compensation expenses alongside lower revenue. GAAP compensation expense was $328 million versus $393 million, and the compensation ratio was 64.3% versus 64.9%. Adjusted compensation expense was $314 million versus $372 million, while the adjusted compensation ratio was unchanged at 61.5%. GAAP non-compensation expense was $105 million versus $122 million, but adjusted non-compensation expense increased to $100 million from $94 million, primarily due to higher professional fees. The GAAP effective tax rate was 9.8% versus 0.5%, and the adjusted effective tax rate was 12.6% versus (0.8)%.
Capital allocation included repurchases of 348 thousand shares during the quarter and a declared regular quarterly cash dividend of $0.70 per share, payable on September 15, 2026 to stockholders of record on September 1, 2026. Cash and cash equivalents and investment securities were $797 million as of June 30, 2026. The release did not provide quantitative forward guidance. Management described Corporate Finance headwinds as temporary and stated that it sees strong support for improved performance for the balance of the year, while noting that the timing of when those headwinds will subside is difficult to determine.
Management, verbatim
Our first quarter results reflected ongoing headwinds in our Corporate Finance business which started last quarter, including instability in the Middle East and disruptions in the technology sector, specifically in software. Given the general health of the economy and strong public market valuations, we believe these headwinds are temporary in nature and do not represent a cyclical downturn. We continue to see strong support for improved performance for the balance of the year, but it is difficult to tell when the current headwinds will subside.
Scott Adelson, Chief Executive Officer
Not in the filing
stated, not guessed- Gross margin
- Operating cash flow
- Free cash flow
- Debt balance
- Quantitative forward guidance
- Prior-quarter comparisons
- Adjusted operating income
- Adjusted gross margin
- Total dollar amount of share repurchases
- Dividend payment amount
- Cash flow statement metrics
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K with Item 2.02 results, including a press-release style financial summary for Houlihan Lokey’s first quarter ended June 30, 2026.
Ticker impact
Houlihan Lokey reported Q1 FY2027 revenues of $511M and diluted EPS of $1.15 GAAP, with adjusted EPS $1.35, plus a $0.70 dividend.
Near-term bias likely negative to neutral as investors focus on the revenue decline and segment headwinds, partially offset by the dividend and FVA growth.
The filing provides concrete quarterly results, segment revenue drivers, and management commentary on headwinds, but it does not include full-year guidance or a new forward-looking catalyst beyond the dividend.
Market effects
Signals continued softness in corporate finance and restructuring deal activity, while valuation advisory demand remains more resilient.
Management cites Middle East instability as a headwind, implying regional risk sensitivity for deal-driven advisory revenue.
Technology-sector disruption and public-market valuation strength are both referenced, linking advisory performance to global risk appetite and sector-specific activity.
Counterpoint
The company frames the headwinds as temporary and points to strong public market valuations, suggesting the revenue decline may not persist if deal activity normalizes.
Key entities
- companyHoulihan Lokey, Inc.
Reported first quarter fiscal 2027 results, segment revenue changes, and declared a $0.70 per share dividend for second quarter fiscal 2027.
- executiveScott Adelson
CEO quoted on headwinds in Corporate Finance tied to Middle East instability and technology/software disruptions.
