Houlihan Lokey Reports Q3 Revenue Increase

By Tamara Parker • Wednesday, January 29 10:31 • Permanent Link

Houlihan Lokey, Inc. (NYSE: HLI) has reported its financial results for the third quarter ended December 31, 2024. Revenues for this quarter were $634 million, an increase from the $511 million reported for the same period in 2023. Net income also saw a significant rise, reaching $95 million, or $1.39 per diluted share, compared to $71 million, or $1.04 per diluted share, in the third quarter of 2023. Adjusted net income for the third quarter ended December 31, 2024, was $114 million, or $1.64 per diluted share, up from $84 million, or $1.22 per diluted share, for the third quarter ended December 31, 2023.

The company's revenues by segment showed notable growth. Corporate Finance ("CF") revenues increased by 36%, Financial Restructuring ("FR") revenues increased by 2%, and Financial and Valuation Advisory ("FVA") revenues increased by 14% compared to the third quarter of 2023. Moreover, the number of closed transactions for CF, FR, and FVA also saw increases from the previous year.

Employee compensation and benefits expenses for the third quarter ended December 31, 2024, rose to $403 million from $324 million for the same period in 2023. Adjusted employee compensation and benefits expenses were $390 million for the third quarter ended December 31, 2024, compared with $314 million for the third quarter ended December 31, 2023. Non-compensation expenses were $95 million for the third quarter ended December 31, 2024, compared with $91 million for the third quarter ended December 31, 2023. The provision for income taxes during the third quarter ended December 31, 2024, was $50 million, representing an effective tax rate of 34.3%, compared to $32 million, representing an effective tax rate of 31.0% for the same period in 2023.

The board of directors of the company declared a regular quarterly cash dividend of $0.57 per share of class A and class B common stock. As of December 31, 2024, the company had $903 million of cash and cash equivalents and investment securities, and $66 million of other liabilities.

Following these announcements, the company's shares moved -1.7%, and are now trading at a price of $180.86. If you want to know more, read the company's complete 8-K report here.

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