Houlihan Lokey (NYSE:HLI) Posts Earnings Results, Beats Expectations By $0.09 EPS

Houlihan Lokey (NYSE:HLI) announced its quarterly earnings results on Wednesday. The financial services provider reported $1.94 earnings per share for the quarter, beating the consensus estimate of $1.85 by $0.09, Zacks reports. The business had revenue of $717.07 million for the quarter, compared to analysts’ expectations of $696.72 million. Houlihan Lokey had a net margin of 16.62% and a return on equity of 24.17%. The firm’s revenue for the quarter was up 13.0% compared to the same quarter last year. During the same quarter last year, the firm earned $1.64 EPS.

Here are the key takeaways from Houlihan Lokey’s conference call:

• Houlihan Lokey reported third?quarter revenues of $717 million (up 13%) and adjusted EPS of $1.94 (up 18%), signaling broad?based operating strength.
• Corporate Finance revenue rose to $474 million (+12%) with higher average fees and accelerating private?equity engagement, giving management increased visibility and confidence for fiscal 2027.
• Financial Restructuring produced $156 million (+19%) driven by accelerated closings this quarter, but management expects restructuring revenues to face pressure in fiscal 2027 as market conditions normalize (with geopolitical events a potential upside risk).
• The firm is expanding its European footprint—closing Mellum’s real estate advisory business and agreeing to acquire a controlling stake in Audere Partners—which should materially strengthen its presence in France and across EMEA.
• Balance sheet liquidity remains strong with about $1.2 billion of cash and investments; management prefers using excess cash for strategic acquisitions first while continuing modest share repurchases (?418,000 shares this quarter).

Houlihan Lokey Stock Performance

Shares of HLI stock opened at $180.36 on Thursday. The firm has a market cap of $12.64 billion, a price-to-earnings ratio of 29.09 and a beta of 0.95. Houlihan Lokey has a 52 week low of $137.99 and a 52 week high of $211.78. The firm’s 50-day simple moving average is $179.59 and its two-hundred day simple moving average is $189.10.

Insider Activity

In other Houlihan Lokey news, General Counsel Christopher M. Crain sold 500 shares of the company’s stock in a transaction dated Friday, January 2nd. The shares were sold at an average price of $174.17, for a total transaction of $87,085.00. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 22.83% of the stock is currently owned by insiders.

Institutional Trading of Houlihan Lokey

Institutional investors and hedge funds have recently bought and sold shares of the company. Qube Research & Technologies Ltd grew its position in Houlihan Lokey by 153.8% during the second quarter. Qube Research & Technologies Ltd now owns 274,387 shares of the financial services provider’s stock valued at $49,376,000 after acquiring an additional 166,285 shares during the last quarter. Caisse de depot et placement du Quebec lifted its holdings in shares of Houlihan Lokey by 411.1% in the 3rd quarter. Caisse de depot et placement du Quebec now owns 170,617 shares of the financial services provider’s stock worth $35,031,000 after acquiring an additional 137,237 shares during the last quarter. Millennium Management LLC purchased a new stake in shares of Houlihan Lokey in the 1st quarter valued at $18,964,000. AQR Capital Management LLC grew its holdings in shares of Houlihan Lokey by 77.9% during the 3rd quarter. AQR Capital Management LLC now owns 234,024 shares of the financial services provider’s stock valued at $48,050,000 after purchasing an additional 102,490 shares during the last quarter. Finally, Jane Street Group LLC raised its position in Houlihan Lokey by 3,477.5% in the 2nd quarter. Jane Street Group LLC now owns 89,689 shares of the financial services provider’s stock worth $16,140,000 after purchasing an additional 87,182 shares during the period. 78.07% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

HLI has been the subject of several recent research reports. Deutsche Bank Aktiengesellschaft began coverage on Houlihan Lokey in a report on Thursday, October 9th. They set a “hold” rating and a $210.00 price target for the company. Weiss Ratings downgraded shares of Houlihan Lokey from a “buy (b-)” rating to a “hold (c+)” rating in a report on Monday, January 12th. Morgan Stanley lowered their target price on shares of Houlihan Lokey from $216.00 to $215.00 and set an “overweight” rating for the company in a report on Tuesday, January 6th. UBS Group began coverage on shares of Houlihan Lokey in a research report on Thursday, December 11th. They set a “neutral” rating and a $193.00 price target on the stock. Finally, BMO Capital Markets assumed coverage on shares of Houlihan Lokey in a research report on Friday, October 3rd. They issued an “outperform” rating and a $230.00 price objective for the company. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $212.50.

About Houlihan Lokey

Houlihan Lokey, Inc is a global investment bank and financial services firm founded in 1972 and headquartered in Los Angeles, California. The company specializes in advisory services across a broad range of transaction types and financial matters. Since its founding, Houlihan Lokey has grown to serve corporations, financial sponsors, and government entities worldwide, providing expertise in complex and high-stakes engagements.

The firm’s core service offerings include mergers and acquisitions advisory, capital markets advisory, financial restructuring and distressed M&A, and valuation and fairness opinions.