Houlihan Lokey (NYSE:HLI) Announces Earnings Results, Misses Estimates By $0.16 EPS

Houlihan Lokey (NYSE:HLI) announced its earnings results on Wednesday. The financial services provider reported $1.63 EPS for the quarter, missing analysts’ consensus estimates of $1.79 by ($0.16), Zacks reports. The firm had revenue of $635.64 million for the quarter, compared to analysts’ expectations of $679.22 million. Houlihan Lokey had a net margin of 16.26% and a return on equity of 22.88%. The business’s revenue was down 4.6% compared to the same quarter last year. During the same quarter last year, the business earned $1.96 earnings per share.

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 Price Performance

Shares of HLI traded down $0.62 during midday trading on Friday, reaching $152.88. The stock had a trading volume of 1,049,492 shares, compared to its average volume of 674,656. The company has a market cap of $10.67 billion, a price-to-earnings ratio of 24.58, a PEG ratio of 1.09 and a beta of 0.99. The company’s fifty day simple moving average is $150.56 and its two-hundred day simple moving average is $168.85. Houlihan Lokey has a 1-year low of $134.41 and a 1-year high of $211.78.

Houlihan Lokey Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Monday, June 1st will be issued a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date is Monday, June 1st. This is a positive change from Houlihan Lokey’s previous quarterly dividend of $0.60. Houlihan Lokey’s dividend payout ratio (DPR) is 38.59%.

Wall Street Analyst Weigh In

Several research analysts have recently commented on the stock. The Goldman Sachs Group lowered their price objective on shares of Houlihan Lokey from $210.00 to $184.00 and set a “buy” rating for the company in a research note on Wednesday, April 1st. Morgan Stanley reduced their target price on shares of Houlihan Lokey from $205.00 to $193.00 and set an “overweight” rating on the stock in a report on Thursday, April 9th. BMO Capital Markets raised their price target on shares of Houlihan Lokey from $209.00 to $211.00 and gave the company an “outperform” rating in a research report on Thursday, January 29th. Weiss Ratings downgraded shares of Houlihan Lokey from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, April 21st. Finally, Keefe, Bruyette & Woods reduced 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 assigned a Hold rating to the company’s stock. According to data from MarketBeat, Houlihan Lokey presently has a consensus rating of “Moderate Buy” and an average price target of $191.29.

Insider Buying and Selling

In related news, General Counsel Christopher M. Crain sold 500 shares of the stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $143.40, for a total value of $71,700.00. Following the transaction, the general counsel owned 500 shares of the company’s stock, valued at $71,700. This represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 22.83% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the business. Strategic Wealth Investment Group LLC purchased a new stake in Houlihan Lokey during the second quarter worth approximately $39,000. CIBC Private Wealth Group LLC increased its stake 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 valued at $48,000 after purchasing an additional 177 shares during the last quarter. Quarry LP purchased a new position in Houlihan Lokey in the fourth quarter valued at approximately $90,000. AlphaCentric Advisors LLC acquired a new stake in Houlihan Lokey during the fourth quarter worth approximately $150,000. Finally, Northwestern Mutual Wealth Management Co. lifted its position in shares of Houlihan Lokey by 7.9% during the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 956 shares of the financial services provider’s stock worth $196,000 after buying an additional 70 shares during the last quarter. 78.07% of the stock is owned by institutional investors and hedge funds.

About Houlihan Lokey

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.