"Revenues were up 24% and adjusted earnings per share were up 34% compared to the same period last year." - Scott Adelson, CEO
— Scott Adelson
03Detailed Report
HLI
Houlihan Lokey Inc
Period
Q3 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 22, 2026
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Executive Summary
Houlihan Lokey, Inc. (NYSE: HLI) reported compelling financial performance in Q3 2025, with revenues reaching $634.4 million, a 24% increase year-over-year. Adjusted earnings per share (EPS) surged 34% to $1.64, indicating substantial profitability growth. The company's Corporate Finance and Financial Valuation Advisory segments benefited from a revitalized M&A market, while Financial Restructuring demonstrated resilience amid persistent high interest rates. Management expressed optimism for the remainder of the fiscal year and into 2026, citing expected improvements in market conditions and increased deal activity as key contributors to growth.
Key Performance Indicators
Revenue
Increasing
634.43M
QoQ: 10.34% | YoY: 24.12%
Gross Profit
Increasing
204.05M
32.16% margin
QoQ: -7.82% | YoY: 9.07%
Operating Income
Increasing
136.10M
QoQ: 4.16% | YoY: 40.98%
Net Income
Increasing
95.30M
QoQ: 1.87% | YoY: 34.60%
EPS
Increasing
1.45
QoQ: 2.11% | YoY: 31.82%
Revenue Trend
Margin Analysis
Financial Highlights
The Q3 results showcased the following key metrics:
Revenue: $634.4 million, a 24% YoY increase and a 10.3% QoQ increase. Gross Profit: $204.1 million, with a gross profit margin of 32.2%. Operating Income: $136.1 million, reflecting a robust operating income margin of 21.5%. Net Income: $95.3 million, resulting in a net profit margin of 15.0%. Adjusted EPS: $1.64, demonstrating a 34% increase compared to last year.
Management highlighted ongoing improvements across all business lines, with Corporate Finance revenues growing by 36% year-over-year. Financial and Valuation Advisory rose 14%, supported by a stronger M&A environment. These metrics underpin the firm's solid operational health and strategic positioning.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
634.43M
24.12%
10.34%
Gross Profit
204.05M
9.07%
-7.82%
Operating Income
136.10M
40.98%
4.16%
Net Income
95.30M
34.60%
1.87%
EPS
1.45
31.82%
2.11%
Key Financial Ratios
Gross Profit Margin
Fair
32.20%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Good
21.50%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
15.00%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
2.74%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
4.58%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.40
Current ratio meets minimum requirements but limited cushion
Debt to Equity
Conservative
0.21
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Growth
29.99x
Elevated P/E suggests growth expectations or premium valuation
Price to Book
Premium
5.49x
Trading at premium to book value, reflects strong intangibles or growth
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