Houlihan Lokey Reports 16% Revenue Decline to $511 Million for Quarter Ended June 30, 2026

Houlihan Lokey, Inc. reported a decline in financial performance for the three months ended June 30, 2026, with revenues totaling $511 million, down 16% from $605 million in the same period last year. The decrease was primarily attributed to a significant drop in revenues from the Corporate Finance segment, which fell 24% to $303 million. Operating income also decreased by 13% to $78 million, while net income attributable to Houlihan Lokey decreased by 20% to $78 million, resulting in basic earnings per share of $1.17, down from $1.47 a year earlier.

The company's total assets decreased to $3.717 billion as of June 30, 2026, from $4.309 billion at the end of the previous fiscal period. This decline was driven by a reduction in cash and cash equivalents, which fell to $745 million from $1.189 billion, and a decrease in accounts receivable. Total liabilities also decreased to $1.352 billion from $1.856 billion, largely due to a reduction in accrued salaries and bonuses. Stockholders' equity decreased to $2.255 billion from $2.342 billion, reflecting a combination of net income and dividends paid during the period.

In terms of operational metrics, the number of managing directors increased across segments, with Corporate Finance rising to 260 from 244, while the Financial and Valuation Advisory segment saw an increase to 47 from 45. The company reported a total of 127 closed transactions in Corporate Finance, a slight increase from 125, while Financial Restructuring saw a decrease in closed transactions to 23 from 35. The Financial and Valuation Advisory segment experienced a 9% increase in fee events, indicating strong market demand.

Looking ahead, Houlihan Lokey anticipates continued challenges in the market, particularly in the Corporate Finance segment, which may impact future revenues. The company remains focused on managing its operating expenses, which decreased by 16% to $433 million, and is committed to maintaining compliance with its financial covenants under its revolving line of credit. The company’s management expressed optimism about the potential for recovery in the market, although they acknowledged the uncertainties that may affect performance in the upcoming quarters.