Houlihan Lokey (HLI) Q4 2025 earnings summary

Executive summary

• Achieved record annual revenue of $2.4 billion for fiscal 2025, up 25% year-over-year, with a five-year CAGR of 16% and Q4 revenue of $666 million, up 28% from the prior year quarter.

• Adjusted EPS for Q4 was $1.96, a 54% increase year-over-year; fiscal year adjusted diluted EPS was $6.29, both up significantly from prior year.

• All three business lines—corporate finance, financial restructuring, and financial and valuation advisory—performed strongly, supported by a diversified and global business model.

• Closed three acquisitions during the year, expanding industry, geographic, and product reach, and completed 19 acquisitions over the past 12 years.

• Recognized as a global leader in M&A, restructuring, and fairness opinion advisory, with top global rankings in 2024.

Financial highlights

• Corporate finance Q4 revenue was $413 million, up 44% year-over-year, with 147 transactions closed and higher average transaction fees; FY25 revenue was $1.53 billion, 19% five-year CAGR.

• Financial restructuring Q4 revenue was $165 million, up 6% year-over-year; FY25 revenue was $544 million, 9% five-year CAGR.

• Financial and valuation advisory Q4 revenue was $89 million, up 15% year-over-year; FY25 revenue was $318 million, 15% five-year CAGR.

• Adjusted net income for FY25 was $434 million, up from $310 million year-over-year; adjusted pre-tax income was $619 million.

• Adjusted compensation expense for Q4 was $410 million, with a 61.5% ratio for both Q4 and the full year; adjusted non-compensation expense for Q4 was $85 million, with a 12.8% ratio.

Outlook and guidance

• Fiscal 2026 is expected to show similar seasonality to fiscal 2025, assuming stable market conditions, with elevated revenues anticipated in financial restructuring.

• Expects robust growth opportunities across all business segments, driven by organic hiring, strategic acquisitions, and geographic expansion.

• Adjusted non-compensation expense expected to grow in the high single digits as headcount and investments increase.

• Lower adjusted effective tax rate expected in fiscal 2026 due to changes in deferred compensation share vesting.

• Plans to leverage technology and data to drive innovation and client solutions.