"This heightened activity is expected to benefit our restructuring business well into fiscal 2026..."
— Scott Adelson (CEO)
03Detailed Report
HLI
Houlihan Lokey Inc
Period
Q2 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 22, 2026
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Executive Summary
In Q2 2025, Houlihan Lokey Inc (HLI) reported a robust revenue of $575 million, reflecting a significant year-on-year growth of 23% and a quarter-on-quarter increase of 11.94%. The adjusted earnings per share saw a substantial rise of 32%, reaching $1.46. These results were driven by a strong performance in the Corporate Finance segment, which generated $364 million in revenue—a 29% increase compared to the previous year. The company remains optimistic about growth in the second half of the fiscal year despite ongoing geopolitical and macroeconomic uncertainties. Management continues to emphasize the upward trend in M&A activity and the strength of the restructuring market, which positions HLI well for future growth.
Key Performance Indicators
Revenue
Increasing
574.96M
QoQ: 11.94% | YoY: 23.12%
Gross Profit
Increasing
221.36M
38.50% margin
QoQ: 20.64% | YoY: 29.87%
Operating Income
Increasing
130.67M
QoQ: 36.73% | YoY: 44.74%
Net Income
Increasing
93.55M
QoQ: 5.18% | YoY: 39.56%
EPS
Increasing
1.42
QoQ: 3.65% | YoY: 36.54%
Revenue Trend
Margin Analysis
Financial Highlights
### Financial Metrics
- Revenue: $575 million (YoY: +23%, QoQ: +11.94%)
- Gross Profit: $221.4 million (YoY: +29.87%, QoQ: +20.64%)
- Operating Income: $130.7 million (YoY: +44.74%, QoQ: +36.73%)
- Net Income: $93.5 million (YoY: +39.56%, QoQ: +5.18%)
- EPS: $1.42 (YoY: +36.54%, QoQ: +3.65%)
- Current Ratio: 1.41
- Cash Flow from Operating Activities: $289.2 million
- Free Cash Flow: $278.7 million
### Overview of Changes
Revenue growth reflects a strong performance in Corporate Finance amid an uptick in market activity and the successful integration of recent acquisitions. Gross profit improved as operating efficiency increased, contributing to a higher operating income ratio of 22.73%. Key elements like interest rate fluctuations and geopolitical factors were discussed as potential influences on future performance, yet management is adaptive to these conditions.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
574.96M
23.12%
11.94%
Gross Profit
221.36M
29.87%
20.64%
Operating Income
130.67M
44.74%
36.73%
Net Income
93.55M
39.56%
5.18%
EPS
1.42
36.54%
3.65%
Key Financial Ratios
Gross Profit Margin
Fair
38.50%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Good
22.70%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
16.30%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
2.91%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
4.78%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.41
Current ratio meets minimum requirements but limited cushion
Debt to Equity
Conservative
0.22
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Growth
27.80x
Elevated P/E suggests growth expectations or premium valuation
Price to Book
Premium
5.31x
Trading at premium to book value, reflects strong intangibles or growth
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