– Second Quarter Fiscal 2026 Revenues of $659 million –

– Second Quarter Fiscal 2026 Diluted EPS of $1.63 –

– Adjusted Second Quarter Fiscal 2026 Diluted EPS of $1.84 –

– Announces Dividend of $0.60 per Share for Third Quarter Fiscal 2026 –

Houlihan Lokey, Inc. (NYSE:HLI) ("Houlihan Lokey" or the "Company") today reported financial results for its second quarter ended September 30, 2025.

For the second quarter ended September 30, 2025, revenues were $659 million, compared with $575 million for the second quarter ended September 30, 2024. Net income was $112 million, or $1.63 per diluted share, for the second quarter ended September 30, 2025, compared with $94 million, or $1.37 per diluted share, for the second quarter ended September 30, 2024. Adjusted net income for the second quarter ended September 30, 2025 was $127 million, or $1.84 per diluted share, compared with $100 million, or $1.46 per diluted share, for the second quarter ended September 30, 2024.

"Our results for the quarter reflect our strong business model and improving market conditions. We enter the second half of the year with optimism for continued momentum," stated Scott Adelson, Chief Executive Officer of Houlihan Lokey.

Selected Financial Data

*(In thousands, except per share data)*	U.S. GAAP
	Three Months Ended September 30,						Six Months Ended September 30,
		2025			2024			2025			2024
Revenues by segment
Corporate Finance	$	438,661		$	364,028		$	837,180		$	692,445
Financial Restructuring		133,803			131,568			262,019			248,990
Financial and Valuation Advisory		86,988			79,361			165,602			147,131
Revenues	$	659,452		$	574,957		$	1,264,801		$	1,088,566
Operating expenses:
Compensation	$	423,202		$	360,637		$	816,039		$	690,753
Non-compensation		84,909			83,651			207,621			172,404
Operating income		151,341			130,669			241,141			225,409
Other (income) expense, net		(8,712	)		(5,419	)		(16,962	)		(10,553	)
Income before provision for income taxes		160,053			136,088			258,103			235,962
Provision for income taxes		48,272			42,539			48,789			53,473
Net income	$	111,781		$	93,549		$	209,314		$	182,489

Diluted earnings per share	$	1.63		$	1.37		$	3.04		$	2.67

Revenues

For the second quarter ended September 30, 2025, revenues were $659 million, compared with $575 million for the second quarter ended September 30, 2024. For the second quarter ended September 30, 2025, Corporate Finance ("CF") revenues increased 21%, Financial Restructuring ("FR") revenues increased 2%, and Financial and Valuation Advisory ("FVA") revenues increased 10%, in each case, when compared with the second quarter ended September 30, 2024.

Expenses

The Company's compensation expenses, non-compensation expenses, and provision for income taxes during the periods presented and described below are on a GAAP and an adjusted basis.

	U.S. GAAP						Adjusted (Non-GAAP) *
	Three Months Ended September 30,
*($ in thousands)*		2025			2024			2025			2024
Expenses:
Compensation	$	423,202		$	360,637		$	405,562		$	353,599
% of Revenues		64.2	%		62.7	%		61.5	%		61.5	%
Non-compensation	$	84,909		$	83,651		$	82,319		$	80,879
% of Revenues		12.9	%		14.5	%		12.5	%		14.1	%
Per full-time employee ⁽¹⁾	$	31		$	32		$	30		$	31
Provision for income taxes	$	48,272		$	42,539		$	53,518		$	45,610
% of Pre-tax income		30.2	%		31.3	%		29.7	%		31.3	%

*	Adjusted figures represent non-GAAP information. See "Non-GAAP Financial Measures" and the tables at the end of this release for an explanation of the adjustments and reconciliations to the comparable GAAP numbers.
(1)	Calculated using the average of the number of full-time employees at the beginning of the reporting period and the end of the reporting period.

	U.S. GAAP						Adjusted (Non-GAAP) *
	Six Months Ended September 30,
*($ in thousands)*		2025			2024			2025			2024
Expenses:
Compensation	$	816,039		$	690,753		$	777,851		$	669,468
% of Revenues		64.5	%		63.5	%		61.5	%		61.5	%
Non-compensation	$	207,621		$	172,404		$	176,788		$	161,209
% of Revenues		16.4	%		15.8	%		14.0	%		14.8	%
Per full-time employee ⁽¹⁾	$	76		$	65		$	65		$	61
Provision for income taxes	$	48,789		$	53,473		$	52,355		$	83,849
% of Pre-tax income		18.9	%		22.7	%		16.0	%		31.2	%

*	Adjusted figures represent non-GAAP information. See "Non-GAAP Financial Measures" and the tables at the end of this release for an explanation of the adjustments and reconciliations to the comparable GAAP numbers.
(1)	Calculated using the average of the number of full-time employees at the beginning of the reporting period and the end of the reporting period.

Compensation expenses were $423 million for the second quarter ended September 30, 2025, compared with $361 million for the second quarter ended September 30, 2024. This resulted in a compensation ratio of 64.2% for the second quarter ended September 30, 2025, compared with 62.7% for the second quarter ended September 30, 2024. Adjusted compensation expenses were $406 million for the second quarter ended September 30, 2025, compared with $354 million for the second quarter ended September 30, 2024. This resulted in an adjusted compensation ratio of 61.5% for both the second quarter ended September 30, 2025 and the second quarter ended September 30, 2024. The increase in GAAP and adjusted compensation expenses was a result of an increase in revenues for the quarter when compared with the same quarter last year.

Non-compensation expenses were relatively flat at $85 million for the second quarter ended September 30, 2025, compared with $84 million for the second quarter ended September 30, 2024. Adjusted non-compensation expenses were relatively flat at $82 million for the second quarter ended September 30, 2025, compared with $81 million for the second quarter ended September 30, 2024.

The provision for income taxes was $48 million, representing an effective tax rate of 30.2% for the second quarter ended September 30, 2025, compared with $43 million, representing an effective tax rate of 31.3% for the second quarter ended September 30, 2024. The adjusted provision for income taxes was $54 million, representing an adjusted effective tax rate of 29.7% for the second quarter ended September 30, 2025, compared with $46 million, representing an adjusted effective tax rate of 31.3% for the second quarter ended September 30, 2024.

Segment Reporting for the Second Fiscal Quarter

Corporate Finance

CF revenues were $439 million for the second quarter ended September 30, 2025, compared with $364 million for the second quarter ended September 30, 2024, representing an increase of 21%. Revenues increased due to an increase in the number of closed transactions during the quarter, which was driven by favorable market conditions for M&A and Capital Solutions. This increase was partially offset by a decrease in the average transaction fee on closed transactions, which was driven by transaction mix and does not represent a trend in the average fee on closed transactions.

	Three Months Ended September 30,				Six Months Ended September 30,
*($ in thousands)*	2025		2024		2025		2024
Corporate Finance
Revenues	$	438,661	$	364,028	$	837,180	$	692,445
# of Managing Directors ⁽¹⁾		242		224		242		224
# of Closed transactions ⁽²⁾		171		131		296		247

Financial Restructuring

FR revenues were $134 million for the second quarter ended September 30, 2025, compared with $132 million for the second quarter ended September 30, 2024, representing an increase of 2%. Revenues increased due to an increase in the number of closed transactions during the quarter, which was driven by favorable market conditions for restructuring transactions. This increase was partially offset by a decrease in the average transaction fee on closed transactions, which was driven by transaction mix and does not represent a trend in the average fee on closed transactions.

	Three Months Ended September 30,				Six Months Ended September 30,
*($ in thousands)*	2025		2024		2025		2024
Financial Restructuring
Revenues	$	133,803	$	131,568	$	262,019	$	248,990
# of Managing Directors ⁽¹⁾		58		58		58		58
# of Closed transactions ⁽²⁾		37		33		72		66

Financial and Valuation Advisory

FVA revenues were $87 million for the second quarter ended September 30, 2025, compared with $79 million for the second quarter ended September 30, 2024, representing an increase of 10%. Revenues increased due to an increase in the number of Fee Events, driven by improvements in the M&A markets.

	Three Months Ended September 30,				Six Months Ended September 30,
*($ in thousands)*	2025		2024		2025		2024
Financial and Valuation Advisory
Revenues	$	86,988	$	79,361	$	165,602	$	147,131
# of Managing Directors ⁽¹⁾		45		41		45		41
# of Fee Events ⁽²⁾		1,075		903		1,517		1,316

(1)	As of the end of the respective reporting period.
(2)	A Fee Event includes any engagement that involves revenue activity during the measurement period based on a revenue minimum of one thousand dollars. References in this press release to closed transactions should be understood to be the same as transactions that are "effectively closed" as described in our annual report on Form 10-K.

Balance Sheet and Capital Allocation

The Board of Directors of the Company declared a regular quarterly cash dividend of $0.60 per share of Class A and Class B common stock. The dividend will be payable on December 15, 2025 to stockholders of record as of the close of business on December 1, 2025. As of September 30, 2025, the Company had $1.11 billion of unrestricted cash and cash equivalents and investment securities.

Investor Conference Call and Webcast

The Company will host a conference call and live webcast at 5:00 p.m. Eastern Time on Thursday, October 30, 2025, to discuss its second quarter fiscal 2026 results. The number to call is 1-844-825-9789 (domestic) or 1-412-317-5180 (international) and entering the conference ID 10203876. A live webcast will be available in the Investor Relations section of the Company's website. A replay of the conference call will be available from October 30, 2025 through November 6, 2025, by dialing 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and entering the passcode 10203876. A replay of the webcast will be archived and available on the Company's website.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. You can identify these statements by our use of the words "assumes," "believes," "estimates," "expects," "guidance," "intends," "plans," "projects," and similar expressions that do not relate to historical matters. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties, and other factors which are, in some cases, beyond the Company's control and could materially affect actual results, performance, or achievements. For a further description of such factors, you should read the Company's filings with the Securities and Exchange Commission. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. The Company does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Non-GAAP Financial Measures

Adjusted net income, total and on a per share basis, and certain adjusted items used to determine adjusted net income, are presented and discussed in this earnings press release and are non-GAAP measures that management believes, when presented together with comparable GAAP measures, are useful to investors in understanding the Company's operating results. The adjusted items included in this earnings press release as calculated by the Company are not necessarily comparable to similarly titled measures reported by other companies. Additionally, these adjusted amounts are not a measurement of financial performance or liquidity under GAAP and should not be considered as an alternative to the Company's financial information determined under GAAP. For a description of the Company's use of these adjusted items and a reconciliation with comparable GAAP items, see the section of this press release titled "Reconciliation of GAAP to Adjusted Financial Information." Please refer to our financial statements, prepared in accordance with GAAP, for purposes of evaluating our financial condition, results of operations, and cash flows.

About Houlihan Lokey

Houlihan Lokey, Inc. (NYSE:HLI) is a global investment bank with expertise in mergers and acquisitions, capital solutions, financial restructuring, and financial and valuation advisory. Houlihan Lokey serves corporations, institutions, and governments worldwide with offices in the Americas, Europe, the Middle East, and the Asia Pacific region. Independent advice and intellectual rigor are hallmarks of the firm's commitment to client success across its advisory services. The firm is the No. 1 investment bank for all global M&A transactions for the past two years, the No. 1 M&A advisor for the past 10 years in the U.S., the No. 1 global restructuring advisor for the past 11 years, and the No. 1 global M&A fairness opinion advisor over the past 25 years, all based on number of transactions and according to data provided by LSEG.

For more information, please visit www.HL.com.

Appendix

Condensed Consolidated Balance Sheets (Unaudited)

Condensed Consolidated Statements of Income (Unaudited)

Reconciliation of GAAP to Adjusted Financial Information (Unaudited)

HOULIHAN LOKEY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

*(In thousands, except share data and par value)*	September 30, 2025			March 31, 2025
Assets:
Cash and cash equivalents	$	923,576		$	971,007
Investment securities		184,642			195,624
Accounts receivable, net of allowance for credit losses		251,156			257,326
Unbilled work in process, net of allowance for credit losses		191,248			157,760
Property and equipment, net		145,193			149,350
Operating lease right-of-use assets		352,622			362,669
Goodwill		1,292,121			1,284,589
Other intangible assets, net		200,881			212,670
Other assets		251,926			228,713
Total assets	$	3,793,365		$	3,819,708

Liabilities and stockholders' equity
Liabilities:
Accrued salaries and bonuses	$	822,763		$	936,619
Accounts payable and accrued expenses		108,861			137,228
Operating lease liabilities		432,899			438,185
Other liabilities		181,950			132,799
Total liabilities		1,546,473			1,644,831

Stockholders' equity:
Class A common stock, $0.001 par value. Authorized 1,000,000,000 shares; issued and outstanding 54,573,369 and 53,822,189 shares, respectively		55			54
Class B common stock, $0.001 par value. Authorized 1,000,000,000 shares; issued and outstanding 15,564,859 and 16,021,106 shares, respectively		16			16
Additional paid-in capital		759,693			843,350
Retained earnings		1,516,154			1,394,738
Accumulated other comprehensive loss		(29,026	)		(63,281	)
Total stockholders' equity		2,246,892			2,174,877
Total liabilities and stockholders' equity	$	3,793,365		$	3,819,708

HOULIHAN LOKEY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

	Three Months Ended September 30,						Six Months Ended September 30,
*(In thousands, except share and per share data)*		2025			2024			2025			2024
Revenues	$	659,452		$	574,957		$	1,264,801		$	1,088,566
Operating expenses:
Employee compensation and benefits		405,562			353,599			777,851			669,468
Acquisition related compensation and benefits		17,640			7,038			38,188			21,285
Travel, meals, and entertainment		15,168			13,570			35,155			32,082
Rent		17,750			15,174			35,979			34,458
Depreciation and amortization		10,303			7,444			26,293			16,300
Information technology and communications		16,704			17,755			34,516			33,944
Professional fees		10,321			9,677			21,993			18,154
Other operating expenses		14,663			20,031			35,790			36,638
Revaluation of acquisition contingent consideration		—			—			17,895			828
Total operating expenses		508,111			444,288			1,023,660			863,157
Operating income		151,341			130,669			241,141			225,409
Other (income) expense, net		(8,712	)		(5,419	)		(16,962	)		(10,553	)
Income before provision for income taxes		160,053			136,088			258,103			235,962
Provision for income taxes		48,272			42,539			48,789			53,473
Net income	$	111,781		$	93,549		$	209,314		$	182,489

Weighted average shares of common stock outstanding:
Basic		66,963,260			65,822,690			66,605,683			65,429,115
Fully diluted		68,591,031			68,422,600			68,760,543			68,450,866
Earnings per share
Basic	$	1.67		$	1.42		$	3.14		$	2.79
Fully diluted	$	1.63		$	1.37		$	3.04		$	2.67

HOULIHAN LOKEY, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO ADJUSTED FINANCIAL INFORMATION (UNAUDITED)

	Three Months Ended September 30,						Six Months Ended September 30,
*(In thousands, except share and per share data)*		2025			2024			2025			2024
*Revenues*	$	659,452		$	574,957		$	1,264,801		$	1,088,566

*Compensation expenses*
Compensation expenses (GAAP)	$	423,202		$	360,637		$	816,039		$	690,753
Less: Acquisition related compensation and benefits		(17,640	)		(7,038	)		(38,188	)		(21,285	)
Compensation expenses (adjusted)		405,562			353,599			777,851			669,468

*Non-compensation expenses*
Non-compensation expenses (GAAP)	$	84,909		$	83,651		$	207,621		$	172,404
Less: Acquisition related legal structure reorganization		—			(705	)		(874	)		(1,205	)
Less: Integration and acquisition related costs		—			—			—			(3,554	)
Less: Acquisition amortization		(2,590	)		(2,067	)		(12,064	)		(5,608	)
Less: Revaluation of acquisition contingent consideration		—			—			(17,895	)		(828	)
Non-compensation expenses (adjusted)		82,319			80,879			176,788			161,209

*Operating income*
Operating income (GAAP)	$	151,341		$	130,669		$	241,141		$	225,409
Plus: Adjustments ⁽¹⁾		20,230			9,810			69,021			32,480
Operating income (adjusted)		171,571			140,479			310,162			257,889

*Other (income) expense, net*
Other (income) expense, net (GAAP)	$	(8,712	)	$	(5,419	)	$	(16,962	)	$	(10,553	)
Other (income) expense, net (adjusted)		(8,712	)		(5,419	)		(16,962	)		(10,553	)

*Provision for income taxes*
Provision for income taxes (GAAP)	$	48,272		$	42,539		$	48,789		$	53,473
Plus: Impact of the excess tax benefit for stock vesting		—			—			—			21,921
Less: Non-deductible acquisition related costs		(759	)		—			(2,053	)		—
Less: Reversal of deferred tax asset		—			—			—			(1,690	)
Adjusted provision for income taxes		47,513			42,539			46,736			73,704
Plus: Resulting tax impact ⁽²⁾		6,005			3,071			5,619			10,145
Provision for income taxes (adjusted)		53,518			45,610			52,355			83,849

*Net income*
Net income (GAAP)	$	111,781		$	93,549		$	209,314		$	182,489
Plus: Adjustments⁽³⁾		14,984			6,739			65,455			2,104
Net income (adjusted)	$	126,765		$	100,288		$	274,769		$	184,593

*Fully diluted shares outstanding*
Fully diluted shares outstanding (GAAP)		68,591,031			68,422,600			68,760,543			68,450,866
Plus: Impact of unvested GCA retention and deferred share awards		313,996			458,865			349,380			532,840
Fully diluted shares outstanding (adjusted)		68,905,027			68,881,465			69,109,923			68,983,706

Fully diluted EPS (GAAP)	$	1.63		$	1.37		$	3.04		$	2.67
Fully diluted EPS (adjusted)	$	1.84		$	1.46		$	3.98		$	2.68

(1)	The aggregate of adjustments from compensation and non-compensation expenses.
(2)	Reflects the tax impact of utilizing the adjusted effective tax rate on the non-tax adjustments identified above.
(3)	Consists of all adjustments identified above net of the associated tax impact.

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Houlihan Lokey Reports Second Quarter Fiscal 2026 Financial Results