hli-20250930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


Form			10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to ______________

Commission File Number: 001-37537


Houlihan Lokey, Inc.
(Exact name of registrant as specified in its charter)
Delaware						95-2770395
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification Number)

10250 Constellation Blvd.

5th Floor

Los Angeles, California 90067

(Address of principal executive offices) (Zip Code)

(310) 553-8871

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol(s)

Name of each exchange on which registered

Class A Common Stock, par value $0.001

HLI

New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” "smaller reporting company" and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	x	Accelerated filer	¨

Non-accelerated filer	¨	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

As of October 31, 2025, the registrant had 54,515,003 shares of Class A common stock, $0.001 par value per share, and 15,553,707 shares of Class B common stock, $0.001 par value per share, outstanding.

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

TABLE OF CONTENTS


		Page
	PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements	1
	Consolidated Balance Sheets	1
	Consolidated Statements of Comprehensive Income	2
	Consolidated Statements of Changes in Stockholders' Equity	3
	Consolidated Statements of Cash Flows	5
	Notes to Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	27
Item 4.	Controls and Procedures	28
	PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	28
Item 1A.	Risk Factors	28
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	28
Item 3.	Defaults Upon Senior Securities	29
Item 4.	Mine Safety Disclosures	29
Item 5.	Other Information	29
Item 6.	Exhibits	30
Signatures		31

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)


(In thousands, except share data and par value)	September 30, 2025		March 31, 2025
Assets:
Cash and cash equivalents	$	923,576	$	971,007

Investment securities	184,642		195,624
Accounts receivable, net of allowance for credit losses of $14,645 and $13,843, respectively	251,156		257,326
Unbilled work in progress, net of allowance for credit losses of $9,488 and $6,764, respectively	191,248		157,760


Property and equipment, net	145,193		149,350
Operating lease right-of-use assets	352,622		362,669
Goodwill	1,292,121		1,284,589
Other intangible assets, net	200,881		212,670
Other assets	251,926		228,713

Total assets	$	3,793,365	$	3,819,708

Liabilities and stockholders' equity
Liabilities:
Accrued salaries and bonuses	$	822,763	$	936,619
Accounts payable and accrued expenses	108,861		137,228







Operating lease liabilities	432,899		438,185
Other liabilities	181,950		132,799
Total liabilities	1,546,473		1,644,831

Commitments and contingencies (Note 16)
Stockholders' equity:
Class A common stock, $0.001 par value. Authorized 1,000,000,000 shares; issued and outstanding 54,573,369 and 53,822,189 shares, respectively	55		54
Class B common stock, $0.001 par value. Authorized 1,000,000,000 shares; issued and outstanding 15,564,859 and 16,021,106 shares, respectively	16		16

Additional paid-in capital	759,693		843,350
Retained earnings	1,516,154		1,394,738
Accumulated other comprehensive loss	(29,026)		(63,281)


Total stockholders' equity	2,246,892		2,174,877
Total liabilities and stockholders' equity	$	3,793,365	$	3,819,708

See accompanying Notes to Consolidated Financial Statements

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)


	Three Months Ended September 30,				Six Months Ended September 30,
(In thousands, except share and per share data)	2025		2024		2025		2024
Revenues	$	659,452	$	574,957	$	1,264,801	$	1,088,566
Operating expenses:
Employee compensation and benefits	405,562		353,599		777,851		669,468
Acquisition related compensation and benefits	17,640		7,038		38,188		21,285
Travel, meals, and entertainment	15,168		13,570		35,155		32,082
Rent	17,750		15,174		35,979		34,458
Depreciation and amortization	10,303		7,444		26,293		16,300
Information technology and communications	16,704		17,755		34,516		33,944
Professional fees	10,321		9,677		21,993		18,154
Other operating expenses	14,663		20,031		35,790		36,638
Revaluation of acquisition contingent consideration	—		—		17,895		828
Total operating expenses	508,111		444,288		1,023,660		863,157
Operating income	151,341		130,669		241,141		225,409
Other (income) expense, net	(8,712)		(5,419)		(16,962)		(10,553)
Income before provision for income taxes	160,053		136,088		258,103		235,962
Provision for income taxes	48,272		42,539		48,789		53,473
Net income	111,781		93,549		209,314		182,489


Other comprehensive income, net of tax:
Foreign currency translation adjustments	(14,064)		31,361		34,255		28,399
Comprehensive income	$	97,717	$	124,910	$	243,569	$	210,888


Weighted average shares of common stock outstanding:
Basic	66,963,260		65,822,690		66,605,683		65,429,115
Fully diluted	68,591,031		68,422,600		68,760,543		68,450,866
Earnings per share (Note 13)
Basic	$	1.67	$	1.42	$	3.14	$	2.79
Fully diluted	$	1.63	$	1.37	$	3.04	$	2.67

See accompanying Notes to Consolidated Financial Statements

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

(UNAUDITED)


	Class A Common Stock			Class B Common Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Stockholders' Equity
(In thousands, except share data)	Shares	$		Shares	$		$		$		$		$
Balances – July 1, 2025	54,330,177	$	54	16,004,974	$	16	$	743,715	$	1,448,993	$	(14,962)	$	2,177,816
Shares issued	—	—		12,764	1		—		—		—		1
Stock compensation expense (Note 14)	—	—		—	—		46,455		—		—		46,455
Dividends	—	—		—	—		—		(44,620)		—		(44,620)
Conversion of Class B to Class A shares	389,930	1		(389,930)	(1)		—		—		—		—

Other shares repurchased/forfeited	(146,738)	—		(62,949)	—		(30,477)		—		—		(30,477)
Net income	—	—		—	—		—		111,781		—		111,781
Other comprehensive income	—	—		—	—		—		—		(14,064)		(14,064)

Balances – September 30, 2025	54,573,369	$	55	15,564,859	$	16	$	759,693	$	1,516,154	$	(29,026)	$	2,246,892


	Class A Common Stock			Class B Common Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Stockholders' Equity
(In thousands, except share data)	Shares	$		Shares	$		$		$		$		$
Balances – July 1, 2024	53,053,499	$	53	16,456,793	$	16	$	691,651	$	1,207,328	$	(69,570)	$	1,829,478
Shares issued	—	—

SEC Form 10-Q filed by Houlihan Lokey Inc.