Houlihan Lokey Reports 13% Revenue Growth to $717.1 Million in Latest Quarter

Houlihan Lokey, Inc. reported significant financial growth in its latest quarterly results, with revenues reaching $717.1 million for the three months ended December 31, 2025, a 13% increase from $634.4 million in the same period last year. For the nine months ending December 31, 2025, revenues totaled $1.98 billion, reflecting a 15% rise compared to $1.72 billion in the prior year. The company's net income also saw a notable increase, rising 22% to $116.5 million for the quarter and 17% to $325.9 million for the nine-month period.

Operating expenses for the quarter were $556.3 million, up 12% from $498.3 million a year earlier, driven primarily by a 14% increase in employee compensation and benefits, which totaled $441 million. The company's Compensation Ratio slightly increased to 64.0% from 63.5% year-over-year. The Financial Restructuring and Corporate Finance segments were key contributors to the revenue growth, with Corporate Finance revenues increasing by 12% to $473.7 million and Financial Restructuring revenues rising 19% to $156.3 million for the quarter.

In terms of operational metrics, Houlihan Lokey reported a total of 177 closed transactions in the Corporate Finance segment for the quarter, a 4% increase from the previous year. The company also maintained a stable headcount, with 238 Managing Directors in Corporate Finance, unchanged from the prior year. The firm’s total assets increased to $3.94 billion as of December 31, 2025, up from $3.82 billion at the end of March 2025, bolstered by a rise in cash and cash equivalents to $1.06 billion.

Strategically, Houlihan Lokey has been active in expanding its footprint, recently acquiring a controlling interest in Audere Partners, a French corporate finance firm, which is expected to enhance its service offerings in Europe. The company also signed a lease for additional office space, indicating plans for continued growth. Looking ahead, Houlihan Lokey anticipates further revenue growth driven by favorable market conditions and an increase in transaction activity across its business segments. The firm remains focused on maintaining its competitive edge through strategic acquisitions and expanding its service capabilities in key markets.