NYSE$HLI

Houlihan Lokey Inc. · Q2 2025 earnings

Q2 2025 earnings · · Investor relations

Briefing

Houlihan Lokey's financial performance improved in Q2 2025, marked by revenue growth and increased EPS.

Houlihan Lokey reported a strong second quarter in fiscal year 2025, with revenues reaching $575 million compared to $467 million in the same quarter of the previous year. The company's diluted EPS increased to $1.37, and adjusted diluted EPS was $1.46. All three business lines contributed to this growth, and the company anticipates a positive outlook for the second half of fiscal 2025.

  • Revenues for Q2 2025 reached $575 million, a notable increase from $467 million in Q2 2024.
  • Diluted EPS for Q2 2025 was reported at $1.37, up from $0.99 in Q2 2024.
  • Adjusted diluted EPS for Q2 2025 was $1.46, compared to $1.11 in Q2 2024.
  • The company announced a dividend of $0.57 per share for the third quarter of fiscal year 2025.

Headline financials

Total Revenue

$575M

Previous: $467M+23.1%
EPS (adj)

$1.46

Previous: $1.11+31.5%
Capital Expenditures

-$21.4M

Previous: -$38.9M+45.1%
Free Cash Flow

$72.2M

Previous: $28.1M+156.8%
Net Income

$93.5M

Previous: $67M+39.6%
Operating Income

$131M

Previous: $90.3M+44.7%
Gross Profit

$190M

Previous: $143M+33.2%

Revenue & EPS history

Houlihan Lokey · Revenue · Quarterly

$575M

Q2 2025+23.1%vs Q2 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 anticipates a positive outlook for the second half of fiscal year 2025, citing momentum across all three business lines and the benefits of a highly diversified business model, despite recognizing uncertainties in the macro environment.

Tailwinds

  • Momentum across all three business lines
  • Benefits of a highly diversified business model
  • Increase in the average transaction fee on closed transactions in Corporate Finance
  • Increase in the average transaction fee on closed transactions in Financial Restructuring
  • Increase in the number of Fee Events and an increase in the average fee per Fee Event in Financial and Valuation Advisory

Headwinds

  • Uncertainties in the macro environment
  • Increased state taxes
  • Increased taxes due to foreign operations
  • Increase in other operating expenses
  • Increase in information technology and communication expenses

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 Q2 2025

Historical avgQ2 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%

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