Houlihan Lokey Revenue Rises To $692 Million, But Per-Share Profit Barely Moves
Corporate Finance fees climbed 10% while restructuring revenue fell 12%, leaving second-quarter diluted EPS at $1.64.
Houlihan Lokey, the independent investment bank, reported revenue of $692 million for the quarter ended September 30, 2026, up from $660 million a year earlier, as higher deal fees offset a shrinking bankruptcy-advisory business. Diluted earnings per share edged up to $1.64 from $1.63, according to results released Wednesday.
Deal fees up, restructuring down
Corporate Finance, the M&A and capital-solutions unit, brought in $481 million, up 10% from $439 million. The company said the gain came from a higher average fee per closed deal, helped by deal mix and better conditions for M&A and capital markets. Closed transactions fell to 142 from 171, which the company said it believes does not represent a trend.
Financial Restructuring revenue fell 12% to $118 million from $134 million. Closed deals dropped to 27 from 37, which the company attributed to the timing of closings. Financial and Valuation Advisory rose 7% to $93 million from $87 million, which the company credited to growth in its non-cyclical businesses.
For the first six months of the fiscal year, revenue was $1.203 billion against $1.265 billion a year earlier.
Costs absorb the revenue gain
Net income attributable to the firm was $109 million, against $111 million a year earlier. Adjusted net income was $124 million, or $1.85 per share, against $127 million, or $1.84. Compensation expense rose to $441 million from $423 million, though it took 63.7% of revenue, down from 64.2%.
Non-compensation costs rose to $97 million from $86 million, which the company tied mainly to higher rent and other operating expenses. The effective tax rate was 30.6%, against 30.2%.
Outlook, dividend and cash
Houlihan Lokey advises corporations, financial sponsors and governments on mergers, capital raising, restructurings and valuation. CEO Scott Adelson said "Improving market conditions resulted in a stronger second quarter," and that the firm remains cautious "due to the volatility of external factors" while expecting "solid performance across our businesses for the remainder of the year."
The board declared a quarterly dividend of $0.70 per share, payable December 15, 2026 to holders of record on December 1, 2026. During the quarter the firm repurchased 397 thousand shares, and it held $888 million of cash and investment securities at September 30.
Management hosted a call at 5:00 p.m. Eastern on Wednesday to discuss the results.
Sources
- 8-K Filing — HOULIHAN LOKEY, INC. (HLI) — SEC EDGAR
- Exhibit a2q27-ex991.htm — HOULIHAN LOKEY, INC. 8-K exhibit — SEC EDGAR
- Lazard (LAZ) Misses Q3 Earnings and Revenue Estimates — Yahoo Finance
