NYSE$HLI

Houlihan Lokey Inc. · Q1 2025 earnings

Q1 2025 earnings · · Investor relations

Briefing

Houlihan Lokey's financial performance for Q1 2025 showed revenue growth driven by improving M&A activity.

Houlihan Lokey reported revenues of $514 million and diluted EPS of $1.30 for the first quarter of fiscal year 2025. The company experienced revenue growth of 24% compared to the same quarter last year, driven by improvements in M&A activity. The Corporate Finance business had its strongest first quarter ever, while Financial Restructuring had its second-strongest. Financial and Valuation Advisory is seeing increased momentum.

  • First quarter revenues reached $514 million, a 24% increase year-over-year.
  • Diluted EPS was reported at $1.30, compared to $0.90 for the same period last year.
  • Adjusted diluted EPS was $1.22, compared to $0.89 for the same period last year.
  • Corporate Finance revenues increased by 45%, Financial Restructuring revenues decreased by 5%, and Financial and Valuation Advisory revenues increased by 4%.

Headline financials

Total Revenue

$514M

Previous: $416M+23.5%
EPS

$1.30

Previous: $0.89+46.1%
CF Closed Transactions

116

Previous: 95+22.1%
CF Managing Directors

228

Previous: 225+1.3%
FR Closed Transactions

33

Previous: 30+10.0%
FVA Fee Events

847

Previous: 786+7.8%
FVA Managing Directors

42

Previous: 42+0.0%
Capital Expenditures

-$10.9M

Previous: -$15.7M+30.5%
Free Cash Flow

$78.1M

Previous: $45.7M+70.7%
Net Income

$88.9M

Previous: $61.4M+44.9%
Operating Income

$95.6M

Previous: $73.3M+30.3%
Gross Profit

$157M

Previous: $120M+30.9%

Revenue & EPS history

Houlihan Lokey · Revenue · Quarterly

$514M

Q1 2025+23.5%vs Q1 2024
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Revenue by segment

Houlihan Lokey · $467M total across 3 segments · Q2 2024

  • Corporate Finance
    $282M-10.6%
  • Financial Restructuring
    $115M+17.4%
  • Financial & Valuation Advisory
    $70.6M-8.1%

Forward guidance

Houlihan Lokey is optimistic about the fiscal year due to continued improvements in M&A and capital markets activity, despite existing macro uncertainties.

Tailwinds

  • Improving M&A activity is expected to continue driving revenue growth.
  • Capital markets activity is showing signs of recovery.
  • The Corporate Finance business is expected to maintain strong performance.
  • The Financial Restructuring business is anticipated to remain robust.
  • The Financial and Valuation Advisory business is gaining momentum.

Headwinds

  • Macroeconomic uncertainties could impact M&A and capital markets activity.
  • Fluctuations in interest rates may affect transaction volumes.
  • Regulatory changes could create headwinds for certain business segments.
  • Increased competition in the investment banking industry may pressure fees.
  • Geopolitical risks could disrupt global markets and impact deal flow.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2025

Historical avgQ1 2025

+1.2%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+1.5%

Avg return

30 days after

63%

30 / 48 earnings

Positive

+12.2%

Q2 2022

Best reaction

-10.7%

Q2 2026

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+4.3%+1.5%-5.6%
Q3 2026-6.6%-0.7%-3.0%
Q2 2026-10.7%-10.0%-12.0%
Q4 2025+6.8%+8.7%+7.9%
Q3 2025-2.3%-1.9%-5.8%
Q2 2025+3.6%+2.2%+13.4%
Q1 2025+1.7%-1.5%+4.5%
Q4 2024+0.3%+1.3%-2.7%
Q3 2024+5.9%+3.7%+6.2%
Q2 2024+1.5%+3.7%+9.4%
Q1 2024-8.3%-7.2%-5.5%
Q4 2023+6.1%+1.6%+7.1%
Q3 2023-0.2%+3.2%-2.9%
Q2 2023+9.3%+10.8%+21.5%
Q1 2023+2.5%+1.7%-3.0%
Q4 2022+2.9%+6.3%-2.5%
Q3 2022+7.4%+3.2%-7.8%
Q2 2022+12.2%+17.8%+11.9%
Q1 2022-5.1%-3.5%+1.0%
Q4 2021+5.3%+10.7%+18.1%
Q3 2021-3.7%-1.2%-5.6%
Q2 2021-0.4%-1.6%+3.3%
Q1 2021-1.6%-2.2%+6.1%
Q4 2020-2.1%-0.4%-8.4%
Q3 2020+7.4%+8.6%+2.0%
Q2 2020-0.4%+1.0%+2.0%
Q1 2020+6.2%+4.1%-3.4%
Q4 2019+1.9%-1.9%-4.2%
Q3 2019+1.9%+1.0%+5.0%
Q2 2019+0.5%+5.4%+4.6%
Q1 2019-6.6%-6.5%-10.0%
Q4 2018+5.3%+4.1%+7.6%
Q3 2018-2.8%-7.8%-9.5%
Q2 2018+4.5%+0.5%+6.0%
Q1 2018+5.1%+1.1%-2.0%
Q4 2017+6.3%+1.9%-1.0%
Q3 2017+5.1%+4.7%+3.5%
Q2 2017-2.8%-3.7%+19.5%
Q1 2016-0.5%+0.7%-4.4%
Q1 2017+2.3%+7.9%+4.9%
Q4 2014-2.4%-5.9%-2.3%
Q4 2016+0.1%
Q3 2015-1.1%
Q3 2016+0.4%
Q1 2015+0.5%
Q2 2015+0.5%
Q4 2015+0.5%
Q2 2016-0.8%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro