HOULIHAN LOKEY, INC. recently released its 10-K report for fiscal 2025. The company is an investment banking firm that advises on mergers and acquisitions, capital markets, financial restructurings, liability management, and financial and valuation matters. It operates through three segments: Corporate Finance, Financial Restructuring, and Financial and Valuation Advisory, serving corporations, financial sponsors, and government agencies from its Los Angeles headquarters.
In Item 7, management said the firm continued to expand across industries, geographies, and products, with more than 1,900 financial professionals and 354 managing directors as of March 31, 2026. Revenue for the fiscal year ended March 31, 2026 rose 10% to $2.62 billion from $2.39 billion a year earlier, while net income attributable to Houlihan Lokey increased 7% to $425.7 million from $399.7 million. Management said revenue is driven by individually negotiated engagement letters and that a meaningful portion of fees depends on milestones such as transaction closings, which can make results uneven from period to period.
Corporate Finance was the largest segment, producing $1.74 billion of revenue in fiscal 2026, up 14% from $1.53 billion, and segment profit of $581.2 million, up 23%. Financial Restructuring revenue fell 3% to $528.7 million from $544.5 million, and segment profit declined 14% to $179.1 million from $209.3 million. Financial and Valuation Advisory revenue rose 8% to $344.2 million from $318.2 million, with segment profit increasing 6% to $93.6 million.
Operating expenses increased 11% to $2.09 billion. Compensation expense rose 10% to $1.68 billion, and non-compensation expense climbed 12% to $407.1 million, driven mainly by higher revaluation of acquisition contingent consideration, travel, meals and entertainment, and information technology and communications costs. The compensation ratio held at 64% in both fiscal 2026 and fiscal 2025. Corporate expenses increased 21% to $326.9 million, and income before taxes rose 6% to $562.3 million.
Management said international operations contributed $842 million of revenue in fiscal 2026, up from $687 million in fiscal 2025 and $570 million in fiscal 2024. It also pointed to continued client interest in strategic alternatives, while noting that elevated interest rates, inflation, geopolitical conflict, and trade policy remain sources of uncertainty. The company said restructuring and liability management activity remained steady, supported by high leverage levels, software-sector disruption, and ongoing global trade and conflict pressures. Today the company's shares have moved 1.26% to a price of $151.55. For more information, read the company's full 10-K submission here.
