Houlihan Lokey (NYSE:HLI) Posts Quarterly Earnings Results, Beats Estimates By $0.09 EPS

Houlihan Lokey (NYSE:HLI) released its earnings results on Wednesday. The financial services provider reported $1.94 EPS for the quarter, beating analysts’ consensus estimates of $1.85 by $0.09, Zacks reports. Houlihan Lokey had a return on equity of 24.17% and a net margin of 16.62%.The company had revenue of $717.07 million during the quarter, compared to analysts’ expectations of $696.72 million. During the same quarter last year, the business posted $1.64 EPS. The firm’s revenue for the quarter was up 13.0% compared to the same quarter last year.

Here are the key takeaways from Houlihan Lokey’s conference call:

• Houlihan Lokey reported third‑quarter revenues of $717 million (up 13%) and adjusted EPS of $1.94 (up 18%), signaling broad‑based operating strength.
• Corporate Finance revenue rose to $474 million (+12%) with higher average fees and accelerating private‑equity engagement, giving management increased visibility and confidence for fiscal 2027.
• Financial Restructuring produced $156 million (+19%) driven by accelerated closings this quarter, but management expects restructuring revenues to face pressure in fiscal 2027 as market conditions normalize (with geopolitical events a potential upside risk).
• The firm is expanding its European footprint—closing Mellum’s real estate advisory business and agreeing to acquire a controlling stake in Audere Partners—which should materially strengthen its presence in France and across EMEA.
• Balance sheet liquidity remains strong with about $1.2 billion of cash and investments; management prefers using excess cash for strategic acquisitions first while continuing modest share repurchases (≈418,000 shares this quarter).

Houlihan Lokey Stock Performance

Shares of NYSE HLI opened at $180.36 on Thursday. The firm’s 50 day moving average price is $179.59 and its 200-day moving average price is $189.10. Houlihan Lokey has a 52-week low of $137.99 and a 52-week high of $211.78. The company has a market cap of $12.64 billion, a PE ratio of 29.09 and a beta of 0.95.

Houlihan Lokey Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Sunday, March 15th. Stockholders of record on Monday, March 2nd will be paid a $0.60 dividend. This represents a $2.40 annualized dividend and a dividend yield of 1.3%. The ex-dividend date is Monday, March 2nd. Houlihan Lokey’s dividend payout ratio is currently 38.71%.

Insiders Place Their Bets

In related news, General Counsel Christopher M. Crain sold 500 shares of the business’s stock in a transaction that occurred on Friday, January 2nd. The shares were sold at an average price of $174.17, for a total value of $87,085.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 22.83% of the stock is currently owned by insiders.

Institutional Trading of Houlihan Lokey

A number of institutional investors and hedge funds have recently modified their holdings of HLI. Royal Bank of Canada lifted its holdings in shares of Houlihan Lokey by 14.4% during the first quarter. Royal Bank of Canada now owns 49,584 shares of the financial services provider’s stock valued at $8,008,000 after purchasing an additional 6,253 shares in the last quarter. AQR Capital Management LLC raised its position in Houlihan Lokey by 50.0% in the 1st quarter. AQR Capital Management LLC now owns 29,654 shares of the financial services provider’s stock worth $4,598,000 after buying an additional 9,891 shares during the last quarter. Millennium Management LLC bought a new position in Houlihan Lokey during the 1st quarter valued at about $18,964,000. Goldman Sachs Group Inc. lifted its stake in Houlihan Lokey by 5.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 415,743 shares of the financial services provider’s stock valued at $67,143,000 after acquiring an additional 22,553 shares during the period. Finally, Arrowstreet Capital Limited Partnership purchased a new stake in shares of Houlihan Lokey during the 2nd quarter valued at about $1,033,000. Institutional investors own 78.07% of the company’s stock.

Wall Street Analyst Weigh In

A number of research firms have issued reports on HLI. Weiss Ratings lowered Houlihan Lokey from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Monday, January 12th. Keefe, Bruyette & Woods decreased their price target on shares of Houlihan Lokey from $218.00 to $214.00 and set an “outperform” rating for the company in a research note on Thursday. UBS Group initiated coverage on shares of Houlihan Lokey in a research report on Thursday, December 11th. They set a “neutral” rating and a $193.00 price target for the company. BMO Capital Markets upped their price objective on shares of Houlihan Lokey from $209.00 to $211.00 and gave the stock an “outperform” rating in a report on Thursday. Finally, Morgan Stanley decreased their target price on shares of Houlihan Lokey from $216.00 to $215.00 and set an “overweight” rating for the company in a research note on Tuesday, January 6th. Four equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $208.67.

About Houlihan Lokey

Houlihan Lokey, Inc is a global investment bank and financial services firm founded in 1972 and headquartered in Los Angeles, California. The company specializes in advisory services across a broad range of transaction types and financial matters. Since its founding, Houlihan Lokey has grown to serve corporations, financial sponsors, and government entities worldwide, providing expertise in complex and high-stakes engagements.

The firm’s core service offerings include mergers and acquisitions advisory, capital markets advisory, financial restructuring and distressed M&A, and valuation and fairness opinions.