$HLI

Houlihan Lokey Q2 Revenue Rises to $692M, EPS Slips to $1.64

Houlihan Lokey (HLI) reported Q2 2027 revenue of $692M, up 4.8% YoY, but net income fell to $109M from $111M. Basic EPS was $1.64 vs. $1.67. Operating expenses rose, with compensation costs increasing. Six-month revenue declined to $1.203B from $1.265B. Cash balances decreased to $837M. The company paid $50M in dividends and repurchased shares.

Original reporting
Published Oct 31, 2026, 7:34 AM UTC
Analysis
AlphAI AI DeskAI-generated
Added to AlphAI Oct 31, 2026, 9:22 AM UTC. Informational, not investment advice.
How this was made
AlphAI summarizes source reporting and applies a structured AI analysis for relevance, timing, sentiment and ticker impact. Always verify material claims with the original publisher.
Houlihan Lokey Q2 Revenue Rises to $692M, EPS Slips to $1.64 — source image
Decision brief

The 30-second read

$HLIBearishHigh
01

Why it matters

Margin compression may prompt analysts to lower forecasts, while the dividend and buyback provide some support.

02

Market read

Earnings release provides fresh data that could move HLI stock in the near term.

03

What to watch

Strong cash flow from the dividend and buyback program may support the share price despite earnings miss.

Relevance 7/10Novelty 7/10Timing: after-hours release

Background

Houlihan Lokey is a mid‑cap investment bank that regularly reports quarterly results. This release shows modest top‑line growth but rising costs.

Company-level read

Ticker impact

$HLIBearishHigh confidence
Context

Houlihan Lokey reported Q2 2027 revenue up 4.8% but EPS slipped, indicating margin pressure.

Expected impact

likely modest downside as investors price in margin pressure

Evidence & confidence

Revenue growth was modest and operating expenses rose faster, leading to lower EPS and a cash balance decline.

Market effects

Investment banking earnings may signal broader pressure on fee‑related margins in the sector.

US financial services stocks could see slight pullback in early trading.

Limited to investors tracking US mid‑cap financial firms.

Counterpoint

The revenue beat could be a catalyst for short‑term buying if the market overreacts to the EPS dip.

Key entities

  • Houlihan Lokey, Inc.

    US‑listed investment bank (NYSE:HLI) reporting Q2 2027 results.

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Houlihan Lokey (HLI) reported Q2 2027 revenues of $692M, up 5% YoY, with adjusted EPS flat at $1.85. Corporate Finance revenue grew 10% YoY to $481M, while Financial Restructuring declined 12% to $118M. The company expects growth in the second half of 2027 and into 2028, driven by a strong backlog and new deals, despite macroeconomic volatility.

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Houlihan Lokey Q2 Earnings Call Highlights

Houlihan Lokey reported Q2 earnings, noting higher interest rates have not significantly impacted its middle-market business. Financial Restructuring revenue fell 12% YoY to $118M, but management expects stronger performance in the second half of 2027. Software-related distress is a key driver. Financial and Valuation Advisory revenue rose 7% to $93M. The company has $888M in cash and repurchased $50M in shares.

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Houlihan Lokey Reports $692 Million in Q2 Fiscal 2027 Revenue

Houlihan Lokey reported Q2 fiscal 2027 revenue of $692M, up from $660M a year earlier. Net income was $109M, or $1.64 per diluted share, with adjusted EPS at $1.85. The company declared a $0.70 quarterly dividend. Corporate Finance saw higher average fees but fewer closed transactions, while Financial Restructuring cited timing for its decline. CEO Scott Adelson expects solid performance despite external volatility.