Houlihan Lokey Reports 25% Revenue Growth to $2.39 Billion for Fiscal Year 2025

Houlihan Lokey, Inc. reported a significant increase in financial performance for the fiscal year ending March 31, 2025, with total revenues reaching $2.39 billion, a 25% increase from $1.91 billion in the previous fiscal year. The company's net income also rose by 43% to $399.7 million, compared to $280.3 million in fiscal 2024. This growth was primarily driven by a 38% increase in revenues from the Corporate Finance segment, which accounted for $1.53 billion, alongside increases in the Financial Restructuring and Financial and Valuation Advisory segments.

The company experienced notable operational changes, including an increase in employee headcount to 2,702 as of March 31, 2025, up from 2,601 the previous year. This growth reflects Houlihan Lokey's commitment to expanding its workforce to support its advisory services. The number of Managing Directors in the Corporate Finance segment increased to 240, contributing to a total of 564 closed transactions, a 25% rise from the previous year. The Financial Restructuring segment also saw a 15% increase in closed transactions, indicating a robust demand for restructuring services amid challenging market conditions.

Strategically, Houlihan Lokey has focused on geographic expansion, with approximately 28.8% of its revenue derived from international operations, which totaled $687 million for the fiscal year. The company continues to enhance its presence in various global markets, including Europe and Asia, to capitalize on growth opportunities. Additionally, the firm has been active in acquisitions, including the purchase of Waller Helms Advisors LLC and Prytania Solutions Ltd., which have contributed to its growth in specialized advisory services.

The filing also highlighted the company's proactive approach to managing its financial health, with cash and cash equivalents increasing to $971 million as of March 31, 2025, compared to $721 million the previous year. This increase in liquidity positions Houlihan Lokey favorably for future investments and operational needs. The company has maintained a strong balance sheet, with total assets rising to $3.82 billion, reflecting its ongoing growth strategy and operational efficiency.

Looking ahead, Houlihan Lokey anticipates continued growth in its advisory services, particularly in the Corporate Finance and Financial Restructuring segments, driven by favorable market conditions and strategic client engagements. However, the company acknowledges potential challenges from elevated interest rates, inflation, and geopolitical uncertainties that may impact transaction volumes and client decision-making in the near term.