Houlihan Lokey, Inc. is a prominent global investment banking firm offering a comprehensive suite of financial advisory services. These include expertise in ...
Houlihan Lokey, Inc. (NYSE: HLI) is a prominent global investment bank that has been delivering independent strategic and financial advice to corporations, institutions, and governmental entities since 1972. Headquartered in Los Angeles, California, the firm operates through three core segments: Corporate Finance, Financial Restructuring, and Financial and Valuation Advisory. Corporate ...Houlihan Lokey, Inc. (NYSE: HLI) is a prominent global investment bank that has been delivering independent strategic and financial advice to corporations, institutions, and governmental entities since 1972. Headquartered in Los Angeles, California, the firm operates through three core segments: Corporate Finance, Financial Restructuring, and Financial and Valuation Advisory. Corporate Finance provides guidance on buy-side and sell-side M&A transactions, capital raising (including leveraged loans, high-yield debt, IPOs, and private equity placements), and liability management. Financial Restructuring assists debtors, creditors, and other stakeholders in complex recapitalizations, deleveraging, and reorganization processes, including expert testimony and DIP financing. Financial and Valuation Advisory specializes in appraising businesses, illiquid securities, and intellectual property, and provides fairness opinions and solvency opinions for various corporate actions. As of the latest data, the company has approximately 2,800 full-time employees, a market capitalization of about $9 billion, and generates revenue of over $2.3 billion annually. It has a strong international presence with offices across the US, Europe, Middle East, and Asia-Pacific, and is recognized as the No. 1 M&A advisor by transaction count in the US for consecutive years. The firm's financial performance shows robust profitability with a net profit margin of 16%, a return on equity of 17.8%, and a debt-to-equity ratio of only 0.22, indicating a solid balance sheet. Leadership includes CEO Scott Adelson, Co-Chairmen Irwin Gold and Scott Beiser, and Vice Chairman David Preiser. The company continues to expand its advisory services, particularly in the technology and healthcare sectors, and maintains a strong culture of excellence and integrity.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$2.6B
+9.5%
-19.6%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$425.7M
+6.5%
-21.9%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+98.4%
+155.5%
-68.9%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+23.6%
+12.6%
-32.2%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+16.3%
-2.8%
-2.8%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$681.8M
-15.7%
-219.3%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+26.0%
-23.1%
-248.3%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
21.0%
+4.3%
+4.1%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.53x
+11.1%
—
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator : Good day, ladies and gentlemen. Thank you for standing by. Welcome to Houlihan Lokey's First Quarter Fiscal Year 2027 Earnings Conference Call. [Operator Instructions] Please note that this conference call is being recorded today, July 29, 2026. I would now like to turn the call over to the company.
Christopher Crain : Thank you, operator, and hello, everyone. By now, everyone should have access to our first quarter fiscal year 2027 earnings release, which can be found on the Houlihan Lokey website at www.hl.com in the Investor Relations section. Before we begin our formal remarks, we need to remind everyone that the discussion today will include forward-looking statements. These forward-looking statements, which are usually identified by use of words such as will, expect, anticipate, should or other similar phrases are not guarantees of future performance. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect, and therefore, you should exercise caution when interpreting and relying on them. We refer all of you to our recent SEC filings for a more detailed discussion of the risks that could impact our future operating results and financial condition. We encourage investors to review our regulatory filings, including the Form 10-Q for the quarter ended June 30, 2026, when it is filed with the SEC. During today's call, we will discuss non-GAAP financial measures, which we believe can be useful in evaluating the company's financial performance. These non-GAAP financial measures are not intended to be considered in isolation from, as a substitute for or as more important than the financial information prepared and presented in accordance with GAAP. In addition, these non-GAAP measures have limitations in that they do not reflect all the items associated with the company's results of operations as determined in accordance with GAAP. A reconciliation of these measures to the most directly comparable GAAP measures is available in our earnings release and our investor presentation on the hl.com website. Hosting the call today, we have Scott Adelson, Houlihan Lokey's Chief Executive Officer; and Lindsey Alley, Chief Financial Officer. They will provide some opening remarks, and then we will open the call to questions. With that, I'll turn the call over to Scott.
Scott Joseph Adelson : Thank you, Christopher. Welcome, everyone, to our first quarter fiscal 2027 Earnings Call. We ended the quarter with revenues of $511 million and adjusted earnings per share of $1.35. We are disappointed with these quarterly results but believe the results are a temporary disruption and not a fundamental resetting of our outlook. Overall, our Financial and Valuation Advisory business performed well. Our Financial Restructuring business generally performed as expected, but our Corporate Finance business results suffered. On our fourth quarter call, we identified several macro …