Houlihan Lokey, Inc., an investment banking company, provides merger and acquisition (M&A), capital market, financial restructurings and liability management, and financial and valuation advisory services worldwide. The company operates in three segments: Corporate Finance (CF), Financial Restructuring (FR), and Financial and Valuation Advisory (FVA). The CF segment offers general financial advisory services; and advises public and private institutions, including financial sponsors on buy-side and sell-side M&A transactions, debt and equity financings in both the private and public markets, and other corporate finance transactions. The FR segment advises debtors, creditors, and other parties-in-interest related to recapitalization/deleveraging transactions. This segment also provides a range of advisory services, such as structuring, negotiation, and confirmation of plans of reorganization; structuring and analysis of exchange offers; liability management transactions; corporate viability assessment; dispute resolution and expert testimony; and procuring debtor-in-possession financing. The FVA segment provides valuation services to companies; debt and equity interests comprising illiquid investments; and other assets and liabilities. This segment also offers fairness opinions in connection with mergers and acquisitions and other transactions; solvency opinions in connection with corporate spin-offs and dividend recapitalizations; other types of financial opinions; and diligence, tax, transaction accounting, and other financial advisory services, as well as dispute resolution services. It serves corporations, financial sponsors, and government agencies. Houlihan Lokey, Inc. was incorporated in 1972 and is headquartered in Los Angeles, California.
Houlihan Lokey, Inc. (HLI) reported trailing twelve months revenue of $2.62B as of March 2026, a 9.5% increase year-over-year. Quarterly revenue reached $635.64M, reflecting continued top-line momentum.
Houlihan Lokey, Inc. generated $425.70M in TTM net income, with quarterly EBITDA of $133.19M. The operating margin contracted from 20.9% to 19.7%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (19.7%) and net margin (15.7%) indicates tight cost control with minimal non-operating drag. Net margin has narrowed from 18.3% a year ago, reflecting increased costs or interest expense.
HLI trades at a P/E of 22.0x (in line with broad market averages) and a P/S of 3.6x. The price-to-book ratio of 4.0x reflects a moderate premium to book value.
The company generated $286.78M in free cash flow over the trailing twelve months, a 16.6% decrease year-over-year, indicating cash generation ability. The balance sheet shows $4.31B in total assets with no in long-term debt against $2.34B in stockholders equity. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~20.4% on average, but show some variability — pricing power may be sensitive to market conditions.
Consistently high ROE averaging 19.4% suggests a durable competitive advantage and efficient capital allocation.
6 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
Revenue shows resilience with 5 of 7 quarters posting growth — demand is generally stable but has seen some soft patches.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~20.0% — no sign of cost or pricing stress.
FCF covers net income by 1.7x on average — earnings are well-supported by cash generation.
Limited debt-to-equity data available.
Revenue is stable or growing over recent quarters — demand appears durable.
FCF turned negative in 2 of the last 8 quarters — occasional cash consumption.
Shares outstanding rose 2.0% — mild dilution. Compare to earnings growth to assess net per-share impact.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation