# Houlihan Lokey (HLI) Q4 2025 Financial Results Summary
**Release Date: May 7, 2025**
Houlihan Lokey, Inc. (NYSE:HLI) has reported its financial results for the fiscal year and fourth quarter ending March 31, 2025. The results demonstrate significant growth and expansion across multiple financial metrics.
### Key Highlights
– **Total Revenues**:
– Fiscal Year 2025: **$2.39 billion**, an increase of **25.1%** from **$1.91 billion** in FY 2024.
– Q4 FY 2025: **$666 million**, a growth of **28%** compared to **$520 million** in Q4 FY 2024.
– **Net Income**:
– FY 2025: **$400 million**, or **$5.82** per diluted share, compared to **$280 million** or **$4.11** per diluted share in FY 2024 (growth of **42.9%** in net income and **41.5%** in EPS).
– Q4 FY 2025: **$122 million**, or **$1.76** per diluted share, up from **$81 million** or **$1.18** per diluted share in Q4 FY 2024 (growth of **50.6%** in net income and **49.2%** in EPS).
– **Adjusted Earnings**:
– FY 2025 Adjusted EPS: **$6.29**, up from **$4.49** in FY 2024 (a rise of **40%**).
– Q4 FY 2025 Adjusted EPS: **$1.96**, compared to **$1.27** in Q4 FY 2024 (growth of **54.3%**).
### Segment Performance
1. **Corporate Finance**:
– Q4 FY 2025 revenues: **$413 million**, compared to **$288 million** in the same quarter the prior year (growth of **43.5%**).
– FY 2025 revenues: **$1.53 billion**, an increase from **$1.11 billion** in FY 2024 (growth of **37.8%**).
2. **Financial Restructuring**:
– Q4 FY 2025 revenues: **$165 million**, up from **$155 million** year-over-year (increase of **6.5%**).
– FY 2025 revenues: **$544 million**, compared to **$522 million** in FY 2024 (increase of **4.2%**).
3. **Financial and Valuation Advisory**:
– Q4 FY 2025 revenues: **$89 million**, compared to **$77 million** in Q4 FY 2024 (growth of **15.6%**).
– FY 2025 revenues: **$318 million**, up from **$286 million** in FY 2024 (growth of **11.2%**).
### Expenses Overview
– **Employee Compensation and Benefits**:
– Q4 FY 2025: **$431 million**, compared to **$330 million** in Q4 FY 2024 (growth of **30.6%**).
– FY 2025 total: **$1.52 billion**, compared to **$1.21 billion** in FY 2024 (increase of **25.7%**).
– **Non-Compensation Expenses**:
– Q4 FY 2025: **$97 million**, up from **$88 million** in Q4 FY 2024 (increase of **10.2%**).
– FY 2025 total: **$364 million**, compared to **$338 million** in FY 2024 (increase of **7.7%**).
– **Income Taxes**:
– Q4 FY 2025 provision for income taxes: **$28 million** (effective tax rate of **18.9%**), vs. **$37 million** (31.3% rate) in Q4 FY 2024.
– FY 2025 provision: **$132 million** (24.8% effective tax rate), compared to **$110 million** (28.2% rate) in FY 2024.
### Dividend Declaration
– Houlihan Lokey announced a **5% increase** in its quarterly dividend to **$0.60 per share**, payable on June 15, 2025, to stockholders of record as of June 2, 2025.
### Conclusion
The results for the fourth quarter and fiscal year ended March 31, 2025, illustrate a robust performance by Houlihan Lokey, with significant revenue growth, increased earnings, and a positive outlook despite market volatility. The announced dividend increase reflects the company’s commitment to shareholder value amid strong financial metrics.
### HOULIHAN LOKEY, INC. AND SUBSIDIARIES
### CONDENSED CONSOLIDATED STATEMENTS OF INCOME
*(In thousands, except share and per share data)*
| Three Months Ended March 31, | Year Ended March 31, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Revenues | $666,422 | $520,456 | $2,389,416 | $1,914,404 |
| Operating expenses: | ||||
| Employee compensation and benefits | 409,850 | 320,077 | 1,469,491 | 1,177,355 |
| Acquisition related compensation and benefits | 20,694 | 9,448 | 54,777 | 36,234 |
| Travel, meals, and entertainment | 14,893 | 17,804 | 64,917 | 65,298 |
| Rent | 21,165 | 20,661 | 77,882 | 76,079 |
| Depreciation and amortization | 15,409 | 8,261 | 41,270 | 28,536 |
| Information technology and communications | 18,511 | 16,849 | 69,400 | 60,168 |
| Professional fees | 11,304 | 13,808 | 41,202 | 49,077 |
| Other operating expenses | 15,391 | 10,851 | 68,933 | 58,796 |
| Total operating expenses | 527,217 | 417,759 | 1,887,872 | 1,551,543 |
| Operating income | 139,205 | 102,697 | 501,544 | 362,861 |
| Other income, net | -11,050 | -15,342 | -29,791 | -27,678 |
| Income before provision for income taxes | 150,255 | 118,039 | 531,335 | 390,539 |
| Provision for income taxes | 28,335 | 36,962 | 131,624 | 110,238 |
| Net income | $121,920 | $81,077 | $399,711 | $280,301 |
| Weighted average shares of common stock outstanding: | ||||
| Basic | 66,216,014 | 64,579,004 | 65,724,473 | 64,337,975 |
| Fully diluted | 69,183,454 | 68,492,023 | 68,658,347 | 68,159,390 |
| Earnings per share attributable to Houlihan Lokey, Inc. | ||||
| Basic | $1.84 | $1.26 | $6.08 | $4.36 |
| Fully diluted | $1.76 | $1.18 | $5.82 | $4.11 |
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### HOULIHAN LOKEY, INC. AND SUBSIDIARIES
### CONDENSED CONSOLIDATED BALANCE SHEETS
*(In thousands, except share data and par value)*
| Assets | March 31, 2025 | March 31, 2024 |
|---|---|---|
| Cash and cash equivalents | $971,007 | $721,235 |
| Restricted cash | 4,572 | 619 |
| Investment securities | 195,624 | 38,005 |
| Accounts receivable, net of allowance for credit losses | 257,326 | 199,630 |
| Unbilled work in process, net of allowance for credit losses | 157,760 | 192,012 |
| Income taxes receivable | — | 32,856 |
| Deferred income taxes | 92,776 | 90,064 |
| Property and equipment, net | 149,350 | 136,701 |
| Operating lease right-of-use assets | 362,669 | 344,024 |
| Goodwill | 1,284,589 | 1,127,497 |
| Other intangible assets, net | 212,670 | 197,439 |
| Other assets | 131,365 | 90,677 |
| Total assets | $3,819,708 | $3,170,759 |
| Liabilities and stockholders’ equity | ||
| Liabilities: | ||
| Accrued salaries and bonuses | $936,619 | $726,031 |
| Accounts payable and accrued expenses | 137,228 | 114,171 |
| Deferred income | 48,215 | 33,139 |
| Income taxes payable | 6,396 | — |
| Deferred income taxes | 8,784 | 7,505 |
| Operating lease liabilities | 438,185 | 415,412 |
| Other liabilities | 69,404 | 37,751 |
| Total liabilities | 1,644,831 | 1,334,009 |
| Stockholders’ equity: | ||
| Class A common stock, $0.001 par value. Authorized 1,000,000,000 shares; issued and outstanding 53,822,189 and 52,348,511 shares, respectively | 54 | 52 |
| Class B common stock, $0.001 par value. Authorized 1,000,000,000 shares; issued and outstanding 16,021,106 and 16,746,676 shares, respectively | 16 | 17 |
| Additional paid-in capital | 843,350 | 739,870 |
| Retained earnings | 1,394,738 | 1,163,419 |
| Accumulated other comprehensive loss | -63,281 | -66,608 |
| Total stockholders’ equity | 2,174,877 | 1,836,750 |
| Total liabilities and stockholders’ equity | $3,819,708 | $3,170,759 |
