hli-20260630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


Form			10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to ______________

Commission File Number: 001-37537


Houlihan Lokey, Inc.
(Exact name of registrant as specified in its charter)
Delaware						95-2770395
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification Number)

10250 Constellation Blvd.

5th Floor

Los Angeles, California 90067

(Address of principal executive offices) (Zip Code)

(310) 553-8871

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol(s)

Name of each exchange on which registered

Class A Common Stock, par value $0.001

HLI

New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” "smaller reporting company" and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	x	Accelerated filer	¨

Non-accelerated filer	¨	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

As of July 28, 2026, the registrant had 54,197,538 shares of Class A common stock, $0.001 par value per share, and 15,688,962 shares of Class B common stock, $0.001 par value per share, outstanding.

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

TABLE OF CONTENTS


		Page
	PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements	1
	Consolidated Balance Sheets	1
	Consolidated Statements of Income	2
	Consolidated Statements of Comprehensive Income	3
	Consolidated Statements of Changes in Stockholders' Equity	4
	Consolidated Statements of Cash Flows	5
	Notes to Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	23
Item 4.	Controls and Procedures	23
	PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	23
Item 1A.	Risk Factors	23
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	24
Item 3.	Defaults Upon Senior Securities	24
Item 4.	Mine Safety Disclosures	24
Item 5.	Other Information	24
Item 6.	Exhibits	25
Signatures		26

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)


(In millions, except par value)	June 30, 2026		March 31, 2026
Assets:
Cash and cash equivalents	$	745	$	1,189

Investment securities	52		170
Accounts receivable, net of allowance for credit losses of $11 and $13, respectively	224		228
Unbilled work in progress, net of allowance for credit losses of $7 and $8, respectively	255		271


Property and equipment, net	143		143
Operating lease right-of-use assets	412		407
Goodwill	1,396		1,396
Other intangible assets, net	203		204
Other assets	287		301

Total assets	$	3,717	$	4,309

Liabilities, temporary equity and stockholders' equity
Liabilities:
Accrued salaries and bonuses	$	589	$	1,077
Accounts payable and accrued expenses	122		136







Operating lease liabilities	493		492
Other liabilities	148		151
Total liabilities	1,352		1,856

Commitments and contingencies (Note 15)

Redeemable noncontrolling interest	110		111

Stockholders' equity:
Class A common stock, $0.001 par value. Authorized 1,000 shares; issued and outstanding 54.2 and 54.2 shares, respectively	—		—
Class B common stock, $0.001 par value. Authorized 1,000 shares; issued and outstanding 15.7 and 15.3 shares, respectively	—		—

Additional paid-in capital	639		746
Retained earnings	1,667		1,645
Accumulated other comprehensive loss	(51)		(49)


Total stockholders' equity	2,255		2,342
Total liabilities, temporary equity and stockholders' equity	$	3,717	$	4,309

See accompanying Notes to Consolidated Financial Statements

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)


	Three Months Ended June 30,
(In millions, except per share data)	2026		2025
Revenues	$	511	$	605
Operating expenses:
Employee compensation and benefits	314		372
Acquisition related compensation and benefits	14		21
Travel, meals, and entertainment	19		20
Rent	21		18
Depreciation and amortization	8		16
Information technology and communications	19		18
Professional fees	17		12
Other operating expenses	21		20
Revaluation of acquisition contingent consideration	—		18
Total operating expenses	433		515
Operating income	78		90
Other (income) expense, net	(8)		(8)
Income before provision for income taxes	86		98
Provision for income taxes	8		—
Net income	78		98
Net (income) loss attributable to noncontrolling interest	—		—
Net income attributable to Houlihan Lokey, Inc.	$	78	$	98





Weighted average shares of common stock outstanding:
Basic	66.5		66.2
Fully diluted	67.6		68.9
Earnings per common share (Note 12)
Basic	$	1.17	$	1.47
Fully diluted	$	1.15	$	1.42

See accompanying Notes to Consolidated Financial Statements

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)


	Three Months Ended June 30,
(In millions)	2026		2025
















Net income	$	78	$	98


Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(2)		48
Comprehensive income	76		146
Comprehensive (income) loss attributable to noncontrolling interest	—		—
Comprehensive income attributable to Houlihan Lokey, Inc.	$	76	$	146

See accompanying Notes to Consolidated Financial Statements

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

(UNAUDITED)


	Class A Common Stock			Class B Common Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Stockholders' Equity
(In millions)	Shares	$		Shares	$		$		$		$		$
Balances – April 1, 2026	54.2	$	—	15.3	$	—	$	746	$	1,645	$	(49)	$	2,342
Shares issued	—	—		1.6	—		4		—		—		4
Stock-based compensation expense (Note 13)	—	—		—	—		44		—		—		44
Dividends	—	—		—	—		—		(56)		—		(56)
Conversion of Class B to Class A shares	0.3	—		(0.3)	—		—		—		—		—

Other shares repurchased/forfeited	(0.3)	—		(0.9)	—		(156)		—		—		(156)
Change in redemption value of redeemable noncontrolling interest	—	—		—	—		1		—		—		1
Net income attributable to Houlihan Lokey, Inc.	—	—		—	—		—		78		—		78
Other comprehensive income	—	—		—	—		—		—		(2)		(2)

Balances – June 30, 2026	54.2	$	—	15.7	$	—	$	639	$	1,667	$	(51)	$	2,255


	Class A Common Stock			Class B Common Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Stockholders' Equity
(In millions)	Shares	$		Shares	$		$		$		$		$
Balances – April 1, 2025	53.8	$	—	16.0	$	—	$	843	$	1,395	$	(63)	$	2,175
Shares issued	—	—		1.4	—		4		—		—		4
Stock-based compensation expense (Note 13)	—	—		—	—		41		—		—		41
Dividends	—	—		—	—		—		(44)		—		(44)
Conversion of Class B to Class A shares	0.5	—		(0.5)	—		—		—		—		—

Other shares repurchased/forfeited	—	—		(0.9)	—		(144)		—		—		(144)
Net income attributable to Houlihan Lokey, Inc.	—	—		—	—		—		98		—		98
Other comprehensive income	—	—		—	—		—		—		48		48

Balances – June 30, 2025	54.3	$	—	16.0	$	—	$	744	$	1,449	$	(15)	$	2,178

See accompanying Notes to Consolidated Financial Statements

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)


	Three Months Ended June 30,
(In millions)	2026		2025
Cash flows from operating activities:
Net income	$	78	$	98
Adjustments to reconcile net income to net cash used in operating activities:


Non-cash lease expense	10		8
Depreciation and amortization	8		16
Revaluation of acquisition contingent consideration	—		18
Compensation expense – equity-based incentive awards (Note 13)	45		42
Other	—		(1)
Changes in operating assets and liabilities:
Accounts receivable	1		40
Unbilled work in progress	18		(25)
Other assets	10		(13)
Accrued salaries and bonuses	(481)		(294)
Accounts payable and accrued expenses and other liabilities	(25)		(21)
Net cash used in operating activities	(336)		(132)
Cash flows from investing activities:
Purchases of investment securities	(4)		(153)
Sales or maturities of investment securities	122		277
Acquisition of businesses, net of cash acquired	—		(1)

Capital expenditures	(6)		(13)
Net cash provided by investing activities	112		110
Cash flows from financing activities:
Dividends paid	(61)		(53)
Share repurchases	(50)		(8)
Payments to settle employee tax obligations on share-based awards	(106)		(137)




Other financing activities	—		1
Net cash used in financing activities	(217)		(197)
Effects of exchange rate changes on cash, cash equivalents, and restricted cash	(3)		41
Net decrease in cash, cash equivalents, and restricted cash	(444)		(178)
Cash, cash equivalents, and restricted cash – beginning of period	1,193		976
Cash, cash equivalents, and restricted cash – end of period	$	749	$	798







Cash paid during the period for:

Taxes, net of refunds	26		11

See accompanying Notes to Consolidated Financial Statements

Table of Contents

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(In millions, except share data or as otherwise stated)

Note 1 — Background

Houlihan Lokey, Inc. is a Delaware corporation. Unless the context otherwise requires, as used in this Quarterly Report on Form 10-Q, the terms “Houlihan Lokey”, “HL, Inc.”, “the Company”, “we”, “our”, and “us”, refer to Houlihan Lokey, Inc., and, in each case, unless otherwise stated, all of its subsidiaries.

The Company offers financial services and advice to a broad clientele through more than thirty offices worldwide. The Company earns professional fees by providing focused services across the following three business segments:

•Corporate Finance ("CF") provides general financial advisory services and advice on mergers and acquisitions and capital markets offerings. We advise public and private institutions, including financial sponsors, on a wide variety of matters, including buy-side and sell-side M&A transactions, debt and equity financings in both the private and public markets, and other corporate finance transactions. The majority of our CF revenues consists of fees paid upon the successful completion of the transaction or engagement (“Completion Fees”). A CF transaction can fail to be completed for many reasons that are outside of our control. In these instances, our fees are generally limited to the fees paid at the time an engagement letter is signed (“Retainer Fees”) and, in some cases, fees paid during the course of the engagement (“Progress Fees”).

•Financial Restructuring ("FR") provides advice to debtors, creditors, and other parties-in-interest in connection with recapitalization/deleveraging transactions implemented through bankruptcy proceedings and out-of-court exchanges, consent solicitations or other mechanisms, as well as in distressed mergers and acquisitions and capital markets activities. As part of these engagements, our FR business segment offers a wide range of advisory services to our clients, including: the structuring, negotiation, and confirmation of plans of reorganization; structuring and analysis of exchange offers; liability management transactions; corporate viability assessment; dispute resolution and expert testimony; and procuring debtor-in-possession financing. The majority of our FR revenues consists of Completion Fees. A FR transaction can fail to be completed for many reasons that are outside of our control. In these instances, our fees are generally limited to Retainer Fees and/or Progress Fees.

•Financial and Valuation Advisory ("FVA") primarily provides financial advisory and valuation services with respect to companies, debt and equity interests (including complex illiquid investments), and other types of assets and liabilities; fairness opinions in connection with mergers and acquisitions and other transactions, solvency opinions in connection with corporate spin-offs and dividend recapitalizations, and other types of financial opinions in connection with other transactions; as well as diligence, tax, transaction accounting, and other financial advisory services to companies, boards of directors, special committees, retained counsel, financial and strategic investors, trustees, and other parties. Also, our FVA business segment provides dispute resolution services to clients, for which fees are usually based on the hourly rates of our financial professionals. The majority of our FVA revenues consists of Retainer Fees, Progress Fees and/or Completion Fees.

Note 2 — Basis of Presentation and Consolidation

Basis of Presentation

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. ("GAAP"), pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the "SEC"), and include all information and footnotes required for interim condensed consolidated financial statement presentation. In the opinion of management, the unaudited interim consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of results for the full fiscal year. The unaudited interim consolidated financial statements and notes to consolidated financial statements should be read in conjunction with the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2026 (the "2026 Annual Report").

Certain prior year amounts have been reclassified to conform to the current period's presentation. These reclassifications had no impact on net income, shareholders' equity or net cash flows as previously reported.

Unless otherwise noted, amounts are presented in millions. Percentages presented and earnings per common share amounts are calculated from the underlying whole-dollar amounts.

Table of Contents

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

(In millions, except per share data or as otherwise stated)

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its subsidiaries where it has a controlling financial interest. All intercompany balances and transactions have been eliminated.

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements. Management estimates and assumptions also affect the reported amounts of revenues and expenses during the reporting period, and disclosure of contingent assets and liabilities at the reporting date. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. Management adjusts such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Items subject to such estimates and assumptions include, but are not limited to: the allowance for credit losses; the valuation of deferred tax assets, valuation of acquired intangibles and goodwill, accrued expenses, and share based compensation; the allocation of goodwill and other assets across the reporting units (segments); and reserves for income tax uncertainties and other contingencies.

Foreign Currency Transactions

From time to time, we enter into transactions to hedge our exposure to certain foreign currency fluctuations through the use of derivative instruments or other methods. As of June 30, 2026, we had four open foreign currency forward contracts outstanding between the U.S. Dollar and the Pound Sterling with an aggregate notional value of $151 and one open foreign currency forward contract outstanding between the U.S. Dollar and the Euro with an aggregate notional value of $4. As of June 30, 2025, we had no open foreign currency forward contracts outstanding. The change in fair value of these contracts represented an expense included in Other operating expenses of $2 during the three months ended June 30, 2026.

Fair Value Measurements

The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels in accordance with Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurement:

•Level I Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date.

•Level II Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.

•Level III Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date.

The carrying value of cash and cash equivalents, restricted cash, accounts receivable, unbilled work in progress, accounts payable and accrued expenses, and deferred income approximates fair value due to the short maturity of these instruments.

The carrying value of loans to employees included in Other assets approximates fair value due to the variable interest rate borne by those instruments.

Cash and Cash Equivalents, and Restricted Cash

Cash and cash equivalents include cash held at banks and highly liquid investments with original maturities of three months or less.

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HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

(In millions, except per share data or as otherwise stated)

The following table provides a reconciliation of cash and cash equivalents and restricted cash included within the Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Consolidated Statements of Cash Flows.


	June 30, 2026		March 31, 2026
Cash and cash equivalents	$	745	$	1,189
Restricted cash (1)	4		4
Total cash, cash equivalents, and restricted cash	$	749	$	1,193

(1)Restricted cash included deposits securing letters of credit for leases, cash held in escrow accounts, and collateral to support rent guarantees. Restricted cash is included within Other assets in the Consolidated Balance Sheets.

Recent Accounting Pronouncements

In December 2025, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. This ASU clarifies existing interim reporting disclosure requirements by providing a comprehensive list of required interim disclosures and introducing a principle that requires entities to disclose events occurring since the end of the most recent annual reporting period that materially affect the entity. The guidance is effective for interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.

In November 2024, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This ASU requires disaggregated disclosure of certain income statement expenses within the footnotes of the financial statements. The guidance is effective for fiscal years beginning after December 15, 2026, with early adoption permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.

Note 3 — Revenue Recognition

Contract Balances

The change in the Company’s contract assets and liabilities during the period primarily reflects the timing difference between the Company’s performance and the customer’s payment. The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers:


	April 1, 2026		Increase/(Decrease)		June 30, 2026
Receivables (1)	$	218	$	(5)	$	213
Unbilled work in progress, net of allowance for credit losses	271		(16)		255
Contract Assets (1)	10		1		11
Contract Liabilities (2)	39		4		43

(1)Included within Accounts receivable, net of allowance for credit losses in the Consolidated Balance Sheets.

(2)Represents deferred income which is included within Other liabilities in the Consolidated Balance Sheets.

During the three months ended June 30, 2026, $12 of revenues were recognized that were included in the deferred income balance at the beginning of the period.

Note 4 — Related Party Transactions

Other assets in the accompanying Consolidated Balance Sheets includes loans receivable from certain employees of $27 and $36 as of June 30, 2026 and March 31, 2026, respectively.

Table of Contents

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

(In millions, except per share data or as otherwise stated)

Note 5 — Fair Value Measurements

The following table presents information about the Company's financial assets, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair values:


	June 30, 2026
	Level I		Level II		Level III		Total
Corporate debt securities	$	—	$	21	$	—	$	21
U.S. treasury securities	—		31		—		31


Total assets measured at fair value	$	—	$	52	$	—	$	52


	March 31, 2026
	Level I		Level II		Level III		Total
Corporate debt securities	$	—	$	118	$	—	$	118
U.S. treasury securities	—		52		—		52


Total assets measured at fair value	$	—	$	170	$	—	$	170

The Company had no transfers between fair value levels during the three months ended June 30, 2026.

Note 6 — Investment Securities

The amortized cost and gross unrealized gains (losses) of our investment securities accounted under the fair value method were as follows:


	June 30, 2026
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
Corporate debt securities	$	21	$	—	$	—	$	21
U.S. treasury securities	31		—		—		31


Total securities with unrealized gains/(losses)	$	52	$	—	$	—	$	52


	March 31, 2026
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
Corporate debt securities	$	118	$	—	$	—	$	118
U.S. treasury securities	52		—		—		52


Total securities with unrealized gains/(losses)	$	170	$	—	$	—	$	170

Scheduled maturities of the debt securities held by the Company included within the investment securities portfolio were as follows:


	June 30, 2026				March 31, 2026
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due within one year	$	11	$	11	$	126	$	126
Due within years two through five	41		41		44		44
Total debt within the investment securities portfolio	$	52	$	52	$	170	$	170

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HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

(In millions, except per share data or as otherwise stated)

Note 7 — Allowance for Credit Losses

The following table presents information about the Company's allowance for credit losses:


Balance as of April 1, 2026	$	21

Provision for bad debt, net	—
Recovery/(write-off) of uncollectible accounts, net	(3)
Balance as of June 30, 2026	$	18

Note 8 — Property and Equipment

Property and equipment, net of accumulated depreciation consists of the following:


	June 30, 2026		March 31, 2026
Equipment	$	15	$	11
Furniture and fixtures	45		44
Leasehold improvements	164		165
Computers and software	16		14
Other	8		8
Total cost	248		242
Less: accumulated depreciation	(105)		(99)
Total net book value	$	143	$	143

Depreciation expense of $6 and $7 was recognized for the three months ended June 30, 2026 and 2025, respectively.

Note 9 — Goodwill and Other Intangible Assets

The following table provides a reconciliation of Goodwill and Other intangible assets, net reported on the Consolidated Balance Sheets.


	Useful Lives	June 30, 2026		March 31, 2026
Goodwill	Indefinite	$	1,396	$	1,396
Tradename-Houlihan Lokey	Indefinite	192		192
Other intangible assets	Varies	141		141
Total cost		1,729		1,729
Less: accumulated amortization		(130)		(129)
Goodwill and Other intangible assets, net		$	1,599	$	1,600

The following table provides a reconciliation of goodwill attributable to the Company’s business segments:


	April 1, 2026		Change		June 30, 2026
Corporate Finance	$	1,128	$	—	$	1,128
Financial Restructuring	163		—		163
Financial and Valuation Advisory	105		—		105
Goodwill	$	1,396	$	—	$	1,396

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HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

(In millions, except per share data or as otherwise stated)

Amortization expense of approximately $2 and $9 was recognized for the three months ended June 30, 2026 and 2025, respectively.

The estimated future amortization for finite-lived intangible assets for each of the next five fiscal years and thereafter are as follows:


	Year Ending March 31,
Remainder of 2027	$	4
2028	1
2029	1
2030	1
2031 and thereafter	3

Note 10 — Other Liabilities

On August 23, 2019, the Company entered into a syndicated revolving line of credit with Bank of America, N.A. and certain other financial institutions party thereto, which was amended by the First Amendment to Credit Agreement dated as of August 2, 2022, and further amended by the Second Amendment to Credit Agreement dated as of August 19, 2025 (as amended, the "HLI Line of Credit"). The HLI Line of Credit allows for borrowings of up to $150 (and, subject to certain conditions, provides the Company with an uncommitted expansion option, which, if exercised in full, would provide for a total credit facility of $200), and matures on August 19, 2030 (or if such date is not a business day, the immediately preceding business day). Borrowings under the HLI Line of Credit bear interest at a floating rate, which can be either, at the Company's option, (i) a term Secured Overnight Financing Rate ("SOFR") plus a 0.95% margin per annum or (ii) a base rate, which is the highest of (a) the Federal Funds Rate plus one-half of one percent (0.50%), (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its “prime rate,” and (c) a term SOFR rate plus a 1.00% margin. Commitment fees apply to unused amounts. The HLI Line of Credit contains certain financial covenants and other restrictions, including a financial loan covenant to maintain a consolidated leverage ratio of less than 2.00 to 1.00. As of June 30, 2026 and March 31, 2026, no principal was outstanding under the HLI Line of Credit.

Note 11 — Income Taxes

The Company’s provision for income taxes was $8 and $0 for the three months ended June 30, 2026 and 2025, respectively. These represent effective tax rates of 10% and 1% for the three months ended June 30, 2026 and 2025, respectively. The increase in the Company's effective tax rate was primarily a result of decreased stock-based compensation deductions.

Note 12 — Earnings Per Common Share

The calculations of basic and diluted earnings per common share attributable to holders of shares of common stock are presented below. The determination of weighted average shares of common stock outstanding includes both the Company's Class A common stock and Class B common stock.


	Three Months Ended June 30,
	2026		2025
Numerator:

Net income attributable to Houlihan Lokey, Inc.	$	78	$	98
Denominator:
Weighted average shares of common stock outstanding — basic	66.5		66.2
Weighted average number of incremental shares pertaining to unvested restricted stock and issuable in respect of unvested restricted stock units, as calculated using the treasury stock method	1.1		2.7
Weighted average shares of common stock outstanding — diluted	67.6		68.9

Basic earnings per common share	$	1.17	$	1.47
Diluted earnings per common share	$	1.15	$	1.42

Table of Contents

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

(In millions, except per share data or as otherwise stated)

Note 13 — Employee Benefit Plans

Share-Based Incentive Plans

Awards of restricted shares and restricted stock units ("RSU"s) have been and will be made under the Amended and Restated Houlihan Lokey, Inc. 2016 Incentive Award Plan (the "2016 Incentive Plan"), which became effective in August 2015 and was amended in October 2024. Equity-based incentive awards issued under the 2016 Incentive Plan generally vest over a four-year period.

Excess tax benefits of $14 and $31 were recognized during the three months ended June 30, 2026 and 2025, respectively, as a component of the provision for income taxes.

Activity in equity-classified share awards under the 2016 Incentive Plan during the three months ended June 30, 2026 and 2025 is as follows:


Unvested Share Awards	Shares	Weighted Average Grant Date Fair Value per Share
Balance, April 1, 2026	3.0	$	128.91
Granted	1.4	151.53
Vested	(1.5)	111.84
Forfeited/Repurchased	(0.1)	111.72
Balance, June 30, 2026	2.8	$	148.79

Balance, April 1, 2025	3.7	$	99.02
Granted	1.1	173.13
Vested	(1.6)	91.74
Forfeited/Repurchased	(0.1)	100.64
Balance, June 30, 2025	3.1	$	128.29

Activity in RSU awards under the 2016 Incentive Plan during the three months ended June 30, 2026 and 2025 is as follows:

Restricted Stock Units

RSUs

Weighted Average Grant Date Fair Value per RSU

RSUs as of April 1, 2026

0.4

120.74

Issued