hli-20251231

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 December 31, 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 January 29, 2026, the registrant had 54,354,265 shares of Class A common stock, $0.001 par value per share, and 15,431,894 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	28
Item 4.	Controls and Procedures	28
	PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	28
Item 1A.	Risk Factors	29
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	29
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)	December 31, 2025		March 31, 2025
Assets:
Cash and cash equivalents	$	1,056,482	$	971,007

Investment securities	127,600		195,624
Accounts receivable, net of allowance for credit losses of $14,220 and $13,843, respectively	210,876		257,326
Unbilled work in progress, net of allowance for credit losses of $11,544 and $6,764, respectively	232,673		157,760


Property and equipment, net	141,433		149,350
Operating lease right-of-use assets	415,132		362,669
Goodwill	1,292,804		1,284,589
Other intangible assets, net	199,597		212,670
Other assets	260,158		228,713

Total assets	$	3,936,755	$	3,819,708

Liabilities and stockholders' equity
Liabilities:
Accrued salaries and bonuses	$	881,133	$	936,619
Accounts payable and accrued expenses	107,659		137,228







Operating lease liabilities	497,131		438,185
Other liabilities	157,065		132,799
Total liabilities	1,642,988		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 54,333,722 and 53,822,189 shares, respectively	54		54
Class B common stock, $0.001 par value. Authorized 1,000,000,000 shares; issued and outstanding 15,351,712 and 16,021,106 shares, respectively	15		16

Additional paid-in capital	734,490		843,350
Retained earnings	1,588,678		1,394,738
Accumulated other comprehensive loss	(29,470)		(63,281)


Total stockholders' equity	2,293,767		2,174,877
Total liabilities and stockholders' equity	$	3,936,755	$	3,819,708

See accompanying Notes to Consolidated Financial Statements

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)


	Three Months Ended December 31,				Nine Months Ended December 31,
(In thousands, except share and per share data)	2025		2024		2025		2024
Revenues	$	717,072	$	634,428	$	1,981,873	$	1,722,994
Operating expenses:
Employee compensation and benefits	441,001		390,173		1,218,852		1,059,641
Acquisition related compensation and benefits	17,570		12,798		55,758		34,083
Travel, meals, and entertainment	18,736		17,942		53,891		50,024
Rent	19,523		22,259		55,502		56,717
Depreciation and amortization	8,297		9,561		34,590		25,861
Information technology and communications	20,357		16,945		54,873		50,889
Professional fees	11,740		11,744		33,733		29,898
Other operating expenses	19,118		16,904		54,908		53,542
Revaluation of acquisition contingent consideration	—		—		17,895		828
Total operating expenses	556,342		498,326		1,580,002		1,361,483
Operating income	160,730		136,102		401,871		361,511
Other (income) expense, net	(8,918)		(9,016)		(25,880)		(19,569)
Income before provision for income taxes	169,648		145,118		427,751		381,080
Provision for income taxes	53,100		49,816		101,889		103,289
Net income	116,548		95,302		325,862		277,791


Other comprehensive income, net of tax:
Foreign currency translation adjustments	(444)		(48,148)		33,811		(19,749)
Comprehensive income	$	116,104	$	47,154	$	359,673	$	258,042


Weighted average shares of common stock outstanding:
Basic	66,633,965		65,831,122		66,615,145		65,563,605
Fully diluted	68,426,644		68,760,959		68,691,432		68,558,325
Earnings per share (Note 13)
Basic	$	1.75	$	1.45	$	4.89	$	4.24
Fully diluted	$	1.70	$	1.39	$	4.74	$	4.05

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 – October 1, 2025	54,573,369	$	55	15,564,859	$	16	$	759,693	$	1,516,154	$	(29,026)	$	2,246,892
Shares issued	483	—		78,367	—		4,942		—		—		4,942
Stock-based compensation expense (Note 14)	—	—		—	—		59,912		—		—		59,912
Dividends	—	—		—	—		—		(44,024)		—		(44,024)
Conversion of Class B to Class A shares	240,769	—		(240,769)	(1)		—		—		—		(1)

Other shares repurchased/forfeited	(480,899)	(1)		(50,745)	—		(90,057)		—		—		(90,058)
Net income	—	—		—	—		—		116,548		—		116,548
Other comprehensive income	—	—		—	—		—		—		(444)		(444)

Balances – December 31, 2025	54,333,722	$	54	15,351,712	$	15	$	734,490	$	1,588,678	$	(29,470)	$	2,293,767


	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 – October 1, 2024	53,403,939	$	53	16,082,738	$	16	$	735,277	$	1,259,950	$	(38,209)	$	1,957,087
Shares issued	—	—		691,719	1		72,506		—		—		72,507
Stock-based compensation expense (Note 14)	—	—		—	—		44,404		—		—		44,404
Dividends	—	—		—	—		—		(40,278)		—		(40,278)
Conversion of Class B to Class A shares	611,795	1

SEC Form 10-Q filed by Houlihan Lokey Inc.