Houlihan Lokey (NYSE:HLI) Issues Earnings Results
by Teresa Graham · The Cerbat GemHoulihan Lokey (NYSE:HLI – Get Free Report) announced its earnings results on Wednesday. The financial services provider reported $1.63 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.79 by ($0.16), Zacks reports. Houlihan Lokey had a return on equity of 22.88% and a net margin of 16.26%.The company had revenue of $635.64 million for the quarter, compared to the consensus estimate of $679.22 million. During the same period in the previous year, the company earned $1.96 EPS. The firm’s revenue for the quarter was down 4.6% compared to the same quarter last year.
Here are the key takeaways from Houlihan Lokey’s conference call:
- Record FY2026 results — Houlihan Lokey reported $2.6 billion in revenue (up 10%) and adjusted EPS of $7.56 (up 20%), and says it finished the year with a record backlog, pipeline and number of managing directors, supporting its long‑term growth story.
- Near‑term volatility and timing delays — Q4 was uneven ($636 million revenue) as geopolitical uncertainty and software‑sector volatility extended M&A timelines and pushed the closing of two larger restructuring deals beyond quarter end, which may moderate early FY2027 growth.
- Financial Restructuring outlook has strengthened — Management cited widening credit spreads, private‑credit dislocation and energy/software dislocations as tailwinds that have driven new mandates and lead it to expect elevated restructuring activity in fiscal 2027.
- Strong balance sheet and shareholder returns — The firm ended the quarter with about $1.4 billion in cash, repurchased ~300,000 shares in Q4 and the board raised the quarterly dividend 17% to $0.70, while keeping M&A as a top capital‑allocation priority.
Houlihan Lokey Stock Down 0.4%
NYSE HLI traded down $0.62 during midday trading on Friday, hitting $152.88. The company had a trading volume of 1,049,492 shares, compared to its average volume of 674,656. The stock has a market cap of $10.67 billion, a price-to-earnings ratio of 24.58, a P/E/G ratio of 1.09 and a beta of 0.99. The firm has a fifty day simple moving average of $150.56 and a two-hundred day simple moving average of $168.85. Houlihan Lokey has a fifty-two week low of $134.41 and a fifty-two week high of $211.78.
Houlihan Lokey Increases Dividend
The business also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Monday, June 1st will be issued a $0.70 dividend. This is a boost from Houlihan Lokey’s previous quarterly dividend of $0.60. The ex-dividend date of this dividend is Monday, June 1st. This represents a $2.80 dividend on an annualized basis and a yield of 1.8%. Houlihan Lokey’s payout ratio is currently 38.59%.
Wall Street Analysts Forecast Growth
Several analysts recently issued reports on HLI shares. UBS Group set a $160.00 price objective on shares of Houlihan Lokey in a report on Thursday. The Goldman Sachs Group dropped their target price on shares of Houlihan Lokey from $210.00 to $184.00 and set a “buy” rating on the stock in a report on Wednesday, April 1st. Weiss Ratings cut shares of Houlihan Lokey from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday, April 21st. Morgan Stanley lowered their price target on Houlihan Lokey from $205.00 to $193.00 and set an “overweight” rating on the stock in a research report on Thursday, April 9th. Finally, Keefe, Bruyette & Woods dropped their price objective on Houlihan Lokey from $177.00 to $172.00 and set an “outperform” rating on the stock in a research note on Thursday. Five investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, Houlihan Lokey has a consensus rating of “Moderate Buy” and a consensus price target of $191.29.
Check Out Our Latest Report on Houlihan Lokey
Insider Activity at Houlihan Lokey
In other news, General Counsel Christopher M. Crain sold 500 shares of the company’s stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $143.40, for a total transaction of $71,700.00. Following the completion of the transaction, the general counsel owned 500 shares of the company’s stock, valued at approximately $71,700. This represents a 50.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 22.83% of the company’s stock.
Hedge Funds Weigh In On Houlihan Lokey
Several institutional investors and hedge funds have recently added to or reduced their stakes in HLI. Strategic Wealth Investment Group LLC bought a new position in shares of Houlihan Lokey during the 2nd quarter worth about $39,000. CIBC Private Wealth Group LLC raised its position in Houlihan Lokey by 177.0% in the fourth quarter. CIBC Private Wealth Group LLC now owns 277 shares of the financial services provider’s stock worth $48,000 after purchasing an additional 177 shares in the last quarter. Quarry LP acquired a new position in Houlihan Lokey in the fourth quarter worth about $90,000. AlphaCentric Advisors LLC bought a new position in Houlihan Lokey during the fourth quarter worth about $150,000. Finally, Northwestern Mutual Wealth Management Co. boosted its holdings in Houlihan Lokey by 7.9% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 956 shares of the financial services provider’s stock valued at $196,000 after purchasing an additional 70 shares in the last quarter. 78.07% of the stock is currently owned by institutional investors.
Houlihan Lokey Company Profile
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.