Houlihan Lokey, Inc. reported a 10% increase in revenue for the fiscal year ending March 31, 2026, achieving $2.62 billion compared to $2.39 billion in the previous year. The growth was primarily driven by a 14% rise in Corporate Finance revenues, which reached $1.74 billion, attributed to an increase in closed transactions amid favorable market conditions. The Financial Restructuring segment, however, saw a slight decline in revenues, dropping 3% to $529 million, while the Financial and Valuation Advisory segment experienced an 8% increase, totaling $344 million.
Operating expenses rose by 11% to $2.09 billion, with compensation expenses accounting for the majority of this increase, reflecting the firm's growth in revenues and headcount. The Compensation Ratio remained stable at 64% for both fiscal years. Net income for the year was reported at $425.7 million, a 7% increase from $399.7 million in the prior year, with an effective tax rate of 24.6%. The company also noted a significant increase in cash and cash equivalents, which rose to $1.19 billion from $971 million in the previous year.
In terms of strategic developments, Houlihan Lokey continues to expand its global footprint, with international operations contributing approximately 32.2% of total revenue. The firm employed over 1,900 financial professionals as of March 31, 2026, an increase from 1,800 the previous year, and reported a total of 354 Managing Directors, up from 342. The company remains focused on enhancing its capabilities through both organic growth and acquisitions, including the recent acquisition of Waller Helms Advisors LLC.
Looking ahead, Houlihan Lokey anticipates stable conditions for M&A and capital markets activities, despite potential uncertainties stemming from elevated interest rates and geopolitical tensions. The firm expects continued demand for its Financial Restructuring services due to high levels of corporate leverage and ongoing market disruptions. The company plans to maintain its growth trajectory by leveraging its expertise across various sectors and expanding its service offerings, while also managing operational costs effectively.
About HOULIHAN LOKEY, INC.
Houlihan Lokey, Inc. is a global independent investment bank specializing in mergers and acquisitions, capital markets, financial restructurings, and valuation advisory. Serving corporations, financial sponsors, and government clients worldwide, it offers strategic advice, financing solutions, and complex restructuring services. Its core strengths include industry expertise, senior-level involvement, and a client-focused, independent advisory model. The firm emphasizes collaboration, talent development, and global reach.
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