Houlihan Lokey (HLI) Q1 FY2026 earnings: revenue $605 million, up 17.9% on the year

Houlihan Lokey, Inc. (HLI) reported revenue of $605 million for Q1 FY2026, the quarter ended 30 June 2025, up 17.9% on the same quarter a year earlier. Net income was $98 million, up 10.2% on the year, and diluted earnings per share $1.42. The figures are the company's own, from the 10-Q it filed with the SEC on 5 August 2025.

Revenue$605 millionup 17.9%

Net income$98 millionup 10.2%

Diluted EPS$1.42

QuarterQ1 FY2026ended 30 June 2025

The quarter, against the one before and a year earlier

Line	Q1 FY2026	Q4 FY2025	Q1 FY2025	Change on the year
Revenue	605	666	514	+17.9%
Gross profit	188	226	157	+19.4%
Gross margin	31.0%	33.9%	30.6%
Operating income	90.0	139	94.7	-5.0%
Operating margin	14.9%	20.9%	18.4%
Pre-tax income	98.0	150	99.9	-1.8%
Income tax	0.0	28.3	10.9	n/a
Effective tax rate	0.0%	18.9%	10.9%
Net income	98.0	122	88.9	+10.2%
Net margin	16.2%	18.3%	17.3%
Diluted EPS	$1.42	$1.76	$1.30	+9.2%

$ million except per share.

Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are. A quarter marked † is shown as the company last restated it in a later filing, so it compares with the quarters around it on one basis; rest on a figure for the one first filed. EPS is as filed.

Cash flow and capital returned

Line	Q1 FY2026	Q4 FY2025	Q1 FY2025	Change on the year
Operating cash flow	-132	358	-64.5	n/a
Capital expenditure	13.0	14.5	10.9	+19.6%
Free cash flow	-145	344	-75.4	n/a
Free cash flow margin	-24.0%	51.6%	-14.7%
Cash from investing	110	-106	-40.4	n/a
Cash from financing	-197	-91.1	-161	n/a
Depreciation and amortisation	16.0	15.4	8.9	+80.6%
Share-based compensation	42.0	44.5	33.1	+27.0%
Dividends paid	53.0	38.5	51.3	+3.4%
Diluted shares, weighted	69m	69m	69m	+0.6%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q1 FY2026	Q4 FY2025	Q1 FY2025	Change on the year
Shareholders' equity	2,178	2,175	1,829	+19.1%
Redeemable equity	n/a	0.0	n/a	n/a
Debt	0.0	0.0	n/a	n/a
Other liabilities	1,340	1,645	1,113	+20.3%
Total liabilities and equity	3,518	3,820	2,943	+19.5%
Fixed assets	151	149	143	+5.1%
Goodwill	1,295	1,285	1,175	+10.2%
Cash and equivalents	794	971	450	+76.5%
Other assets	1,278	1,415	1,174	+8.8%
Total assets	3,518	3,820	2,943	+19.5%

Quarterly results, the last 12 quarters

	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025 †	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026 †	Q2 FY2026	Q3 FY2026	Q4 FY2026 *	Q1 FY2027
Revenue	467	511	520	514	575	634	666	605	659	717	636	511
Gross profit	143	151	157	157	190	199	226	188	223	231	n/a	154
Gross margin	31%	30%	30%	31%	33%	31%	34%	31%	34%	32%	n/a	30%
Operating income	90.3	96.5	103	94.7	131	136	139	90.0	151	161	125	78.0
Operating margin	19%	19%	20%	18%	23%	21%	21%	15%	23%	22%	20%	15%
Pre-tax income	93.6	103	118	99.9	136	145	150	98.0	160	170	135	86.0
Tax rate	28%	31%	31%	11%	31%	34%	19%	0%	30%	31%	27%	9%
Net income	67.0	70.8	81.1	88.9	93.5	95.3	122	98.0	112	117	99.8	78.0
Net margin	14%	14%	16%	17%	16%	15%	18%	16%	17%	16%	16%	15%
Diluted EPS	$0.99	$1.04	$1.18	$1.30	$1.37	$1.39	$1.76	$1.42	$1.63	$1.70	$1.47	$1.15
Operating cash flow	136	101	225	-64.5	289	266	358	-132	325	218	293	-336
Capital expenditure	23.3	15.6	12.2	10.9	10.5	3.9	14.5	13.0	2.2	0.6	6.2	6.0
Free cash flow	113	85.3	213	-75.4	279	262	344	-145	323	217	287	-342
Dividends paid	35.4	35.5	35.6	51.3	38.4	37.0	38.5	53.0	41.8	40.6	39.2	61.0
Filing	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS and diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. A quarter marked † is shown as the company last restated it in a later filing, so it compares with the quarters around it on one basis; rest on a figure for the one first filed. EPS is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 30 June 2025, filed 5 August 2025, accession 0001302215-25-000092: the filing on EDGAR. All of Houlihan Lokey, Inc.'s filings: EDGAR company page.

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