Houlihan Lokey — Second Quarter Fiscal 2027 Earnings Summary

Financial Performance:

• Total revenues for the quarter ended September 30, 2026, were $692 million, an increase from $660 million in the same period in 2025.
• Net income attributable to Houlihan Lokey, Inc. was $109 million ($1.64 per diluted share) for the quarter, compared to $111 million ($1.63 per diluted share) in the prior year period.
• Adjusted net income attributable to Houlihan Lokey, Inc. was $124 million ($1.85 per diluted share) for the quarter, compared to $127 million ($1.84 per diluted share) in the prior year period.
• For the six months ended September 30, 2026, total revenues were $1,203 million, down from $1,265 million in the same period in 2025.
• GAAP compensation expenses were $441 million for the quarter (63.7% of revenues), compared to $423 million (64.2% of revenues) in the prior year; adjusted compensation expenses were $426 million (61.5% of revenues) compared to $406 million (61.5% of revenues).
• GAAP non-compensation expenses were $97 million for the quarter (14.0% of revenues), compared to $86 million (12.9% of revenues) in the prior year; adjusted non-compensation expenses were $91 million (13.3% of revenues) compared to $83 million (12.5% of revenues).
• The effective tax rate was 30.6% for the quarter, compared to 30.2% in the prior year; the adjusted effective tax rate was 30.0% compared to 29.7%.
• Cash and cash equivalents plus investment securities totaled $888 million as of September 30, 2026.

Business Segments and Product Lines:

• Corporate Finance revenues increased 10% to $481 million, driven by higher average transaction fees on closed transactions due to improved market conditions and transaction mix, partially offset by a decline in the number of closed transactions (142 in 2026 vs. 171 in 2025).
• Financial Restructuring revenues decreased 12% to $118 million, primarily due to a decline in the number of closed transactions (27 in 2026 vs. 37 in 2025), partially offset by an increase in average transaction fees.
• Financial and Valuation Advisory revenues increased 7% to $93 million, driven by growth in non-cyclical businesses.
• The number of Managing Directors increased in Corporate Finance (267 vs. 242) and remained relatively stable in Financial Restructuring (57 vs. 58) and Financial and Valuation Advisory (46 vs. 45).

Other Key Points:

• The Board of Directors declared a regular quarterly cash dividend of $0.70 per share for the third quarter of fiscal 2027, payable on December 15, 2026, to stockholders of record as of December 1, 2026.
• The Company repurchased 397,000 shares during the second quarter of fiscal 2027.
• The Company will host a conference call and live webcast on October 28, 2026, at 5:00 p.m. Eastern Time to discuss results.