Houlihan Lokey Reports 24% Revenue Growth to $634.4 Million in Latest Quarter

Houlihan Lokey, Inc. reported significant financial growth in its latest quarterly filing, with revenues reaching $634.4 million for the three months ended December 31, 2024, a 24% increase from $511.1 million in the same period last year. For the nine months ended December 31, 2024, revenues totaled $1.72 billion, also reflecting a 24% rise compared to $1.39 billion for the prior year. The company's net income for the quarter was $95.3 million, up 35% from $70.8 million a year earlier, while net income for the nine-month period increased by 39% to $277.8 million.

The company's operating expenses increased by 20% to $498.3 million for the three months ended December 31, 2024, compared to $414.6 million in the prior year. Employee compensation and benefits, which constitute a significant portion of operating expenses, rose by 24% to $403.0 million, driven by higher revenues. The Compensation Ratio remained stable at 63.5% for both the current and prior year periods. Non-compensation expenses also saw a modest increase of 5%, primarily due to higher rent and depreciation costs.

Strategically, Houlihan Lokey has been active in expanding its business through acquisitions, including the recent purchase of Waller Helms Advisors LLC and 7 Mile Advisors, which contributed to the increase in goodwill from $1.13 billion to $1.28 billion. The company also reported a rise in the number of closed transactions, particularly in its Corporate Finance segment, which saw revenues increase by 36% to $421.6 million for the quarter. The Financial Restructuring and Financial and Valuation Advisory segments also reported revenue growth, albeit at lower rates.

Operationally, Houlihan Lokey's total assets increased to $3.48 billion as of December 31, 2024, up from $3.17 billion at the end of the previous fiscal year. The company reported a significant increase in cash and cash equivalents, which rose to $799.3 million from $721.2 million. The firm also noted a strong performance in international markets, with revenues from outside the United States growing to $204.8 million, a 32% increase year-over-year. Looking ahead, Houlihan Lokey anticipates continued growth driven by favorable market conditions and strategic acquisitions, while maintaining a focus on managing operating expenses effectively.