Houlihan Lokey Reports 15% Revenue Growth to $659.5 Million in Q2 Fiscal 2026

Houlihan Lokey, Inc. reported a significant increase in financial performance for the second quarter of fiscal year 2026, with revenues reaching $659.5 million, a 15% increase from $575.0 million in the same period last year. For the six months ending September 30, 2025, total revenues amounted to $1.26 billion, up 16% from $1.09 billion in the prior year. The company's net income also rose to $111.8 million for the quarter, a 19% increase compared to $93.5 million in the previous year, while net income for the six-month period was $209.3 million, reflecting a 15% increase from $182.5 million.

Operating expenses for the quarter were $508.1 million, up 14% from $444.3 million a year earlier, primarily driven by a 17% increase in employee compensation and benefits, which totaled $423.2 million. The company's Compensation Ratio increased to 64.2% from 62.7% year-over-year. The rise in operating expenses was attributed to higher revenues, with the company noting that non-compensation expenses remained relatively stable. The increase in operating income was 16%, reaching $151.3 million for the quarter, while the six-month operating income grew by 7% to $241.1 million.

In terms of strategic developments, Houlihan Lokey has continued to expand its operations, with notable growth in its Corporate Finance and Financial and Valuation Advisory segments. Corporate Finance revenues increased by 21% to $438.7 million for the quarter, driven by a higher number of closed transactions, while Financial and Valuation Advisory revenues rose by 10% to $87.0 million. The Financial Restructuring segment saw a modest revenue increase of 2% to $133.8 million, although segment profit decreased by 18% due to rising compensation expenses.

The company’s balance sheet as of September 30, 2025, showed total assets of $3.79 billion, a slight decrease from $3.82 billion at the end of the previous fiscal year. Cash and cash equivalents were reported at $923.6 million, down from $971.0 million. The company’s liabilities also decreased to $1.55 billion from $1.64 billion, with accrued salaries and bonuses notably reduced. The total stockholders' equity increased to $2.25 billion, reflecting strong retained earnings growth.

Looking ahead, Houlihan Lokey anticipates continued growth driven by favorable market conditions and an increase in transaction activity across its business segments. The company remains focused on leveraging its expertise in financial advisory services to capitalize on emerging opportunities in the market. The board of directors has declared a quarterly cash dividend of $0.60 per share, payable on December 15, 2025, indicating confidence in the company's ongoing financial health and commitment to returning value to shareholders.