"The team has had positive early momentum and success in marketing our new fully integrated capabilities across primary, secondary, directs and GP advisory markets."
— Scott Adelson
03Detailed Report
HLI
Houlihan Lokey Inc
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 22, 2026
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Executive Summary
Houlihan Lokey delivered a robust performance in Q1 2025, reporting revenues of $514 million, representing a 24% increase year-over-year. Adjusted earnings per share (EPS) surged by 37% to $1.22, driven by significant growth in corporate finance revenues, which hit a record $328 million, up 45% from the previous year. The financial restructuring segment also showed resilience, generating $117 million in revenue, indicating sustained demand despite fluctuating market conditions. Management highlighted that positive trends in transaction sizes and close rates bolster confidence for enhanced M&A activities going forward, even amidst macroeconomic uncertainties such as interest rates and geopolitical factors. The firm is strategically positioned for growth, particularly following the recent acquisition of Triago, expanding its capabilities in private funds and valuation services.
Key Performance Indicators
Revenue
Increasing
513.61M
QoQ: -1.32% | YoY: 23.51%
Gross Profit
Increasing
183.49M
35.73% margin
QoQ: -3.90% | YoY: 20.44%
Operating Income
Increasing
95.57M
QoQ: -6.94% | YoY: 30.30%
Net Income
Increasing
88.94M
QoQ: 9.70% | YoY: 44.88%
EPS
Increasing
1.37
QoQ: 8.73% | YoY: 42.71%
Revenue Trend
Margin Analysis
Financial Highlights
Key Financial Metrics:
- Revenue: $514 million (YoY: +24%, QoQ: -1.32%)
- Net Income: $89.4 million (YoY: +44.88%, QoQ: +9.7%)
- Gross Profit Margin: 35.7%
- Operating Income Margin: 18.6%
- Net Income Margin: 17.3%
- EPS: $1.37, Diluted EPS: $1.30 Balance Sheet Health:
- Total Assets: $2.94 billion
- Total Liabilities: $1.11 billion
- Total Stockholders' Equity: $1.83 billion
- Cash and Cash Equivalents: $449.7 million Cash Flow:
Net cash provided by operating activities was negative at $64.5 million, attributable to seasonal bonus payouts, but long-term cash position remains solid at $450.3 million.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
513.61M
23.51%
-1.32%
Gross Profit
183.49M
20.44%
-3.90%
Operating Income
95.57M
30.30%
-6.94%
Net Income
88.94M
44.88%
9.70%
EPS
1.37
42.71%
8.73%
Key Financial Ratios
Gross Profit Margin
Fair
35.70%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Good
18.60%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
17.30%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Fair
3.02%
Return on assets is acceptable but below top-tier companies
Return on Equity
Weak
4.86%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.34
Current ratio meets minimum requirements but limited cushion
Debt to Equity
Conservative
0.24
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Fair Value
24.74x
P/E ratio in line with market averages
Price to Book
Premium
4.81x
Trading at premium to book value, reflects strong intangibles or growth
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