Financial Data and Key Metrics Changes - The company reported revenues of $717 million for Q3 2026, representing a 13% increase year-over-year, and adjusted earnings per share of $1.94, up 18% compared to the same period last year [5][11] - Adjusted compensation expenses were $441 million for the quarter, compared to $390 million in the same period last year, maintaining an adjusted compensation expense ratio of 61.5% [12][14] Business Line Data and Key Metrics Changes - Corporate Finance generated $474 million in revenue, a 12% increase year-over-year, with 177 transactions closed, up from 170 in the same period last year [7][11] - Financial Restructuring produced $156 million in revenue, a 19% increase year-over-year, with 41 transactions closed, consistent with the same quarter last year [8][11] - Financial and Valuation Advisory revenues were $87 million, a 6% increase year-over-year, with 1,103 fee events, up 10% from 1,005 in the same period last year [12] Market Data and Key Metrics Changes - The company noted an acceleration in private equity activity, with more portfolio companies exploring liquidity options due to improving investor sentiment and expectations of declining interest rates [5][10] - The European market is experiencing significant growth, bolstered by recent acquisitions, which are expected to enhance the company's footprint in France and overall European operations [9][28] Company Strategy and Development Direction - The company aims to expand its workforce and capabilities in key markets, particularly in Europe, where it sees potential for growth comparable to its U.S. corporate finance business [9][10] - Recent acquisitions, including a controlling interest in Audere Partners, are part of the strategy to strengthen the company's position in Europe and enhance its Capital Solutions capabilities [9][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the M&A recovery, citing improving market conditions and a positive outlook for fiscal year 2027 [5][10] - The company acknowledged potential revenue pressures in restructuring due to an improving market environment but noted that geopolitical events could drive restructuring activity levels higher [8][54] Other Important Information - The company ended the quarter with approximately $1.2 billion in cash and investments and repurchased approximately 418,000 shares as part of its share repurchase program [14][15] - The adjusted effective tax rate for the quarter was 30.6%, down from 33.3% in the same quarter last year, primarily due to decreased state taxes [14] Q&A Session Summary Question: Outlook for restructuring activity - Management indicated that while the market is improving for M&A, there is a structural decline in restructuring activity, though pockets of opportunity may arise due to geopolitical events [18][19] Question: Corporate finance revenue expectations - Management confirmed that corporate finance is strengthening, with increasing M&A activity, particularly in private equity, and good visibility for continued growth [21][22] Question: U.S. vs. non-U.S. growth outlook - Management highlighted that while the U.S. remains the largest market, European operations are growing significantly, supported by recent acquisitions [28][29] Question: Sponsor engagement and market pressures - Management noted a steady improvement in sponsor engagement, with broad-based activity across sectors, despite external pressures [42][44] Question: Capital management and acquisition pipeline - Management stated a strong acquisition pipeline and a preference for strategic acquisitions over share repurchases, while also considering share buybacks as appropriate [57][60] Question: Non-compensation expenses outlook - Management indicated that non-compensation expenses are expected to grow in line with year-to-date trends, with some increases in rent due to acquisitions [64][66] Question: Data bank product strategy - Management discussed the potential for monetizing proprietary data, indicating that it is still in early stages but viewed as a valuable asset for future growth [68][69] Question: Impact of geopolitical uncertainty on activity levels - Management noted that clients are increasingly willing to look past geopolitical noise and continue with business, indicating resilience in the market [74][75] Question: Capital Solutions group build-out - Management described the Capital Solutions group as still in early innings, with significant growth potential across various sectors [76][77] Question: Advisory cycle positioning - Management agreed that the advisory cycle is in early stages, with substantial pent-up demand still present in the market [86][90]

Financial Data and Key Metrics Changes - The company reported revenues of $717 million for Q3 2026, representing a 13% increase year-over-year, and adjusted earnings per share of $1.94, up 18% compared to the same period last year [5][11] - The adjusted effective tax rate for the third quarter was 30.6%, down from 33.3% in the same quarter last year, primarily due to decreased state taxes and non-deductible expenses [14] Business Line Data and Key Metrics Changes - Corporate Finance generated $474 million in revenue for the quarter, a 12% increase year-over-year, with 177 transactions closed, up from 170 in the same period last year [7][11] - Financial Restructuring produced $156 million in revenue, a 19% increase year-over-year, with 41 transactions closed, consistent with the same quarter last year [8][11] - Financial and Valuation Advisory revenues were $87 million, a 6% increase year-over-year, with 1,103 fee events, up from 1,005 in the same period last year [12] Market Data and Key Metrics Changes - The company noted an acceleration in private equity activity, with more portfolio companies exploring liquidity options due to improving investor sentiment and expectations of declining interest rates [5] - The company is experiencing strong growth in its European business, bolstered by recent acquisitions, which are expected to enhance its market presence in France [9][28] Company Strategy and Development Direction - The company aims to expand its workforce and capabilities in key markets, particularly in Europe, where it sees significant growth potential [9][28] - The strategy includes a focus on independent, high-quality advice to clients and a commitment to creating shareholder value [10] - The company is actively pursuing acquisitions to strengthen its Capital Solutions capabilities and enhance its market position [9][60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the M&A recovery, citing improving market conditions and increased deal activity [5][10] - There is a recognition of potential revenue pressures in Financial Restructuring as the market improves, but geopolitical events may create new opportunities [8][54] - The company believes it is in the early stages of the advisory cycle, with significant pent-up demand expected to drive future growth [87][90] Other Important Information - The company ended the quarter with approximately $1.2 billion in cash and investments and repurchased approximately 418,000 shares as part of its share repurchase program [14][15] - The company is focused on maintaining a balance between cash for acquisitions and share repurchases, with a strong preference for strategic acquisitions [57][58] Q&A Session Summary Question: Outlook for restructuring activity - Management indicated that while restructuring activity may decline due to improving market conditions, there are still pockets of opportunity driven by geopolitical events [18][19] Question: Corporate finance revenue expectations - Management confirmed that corporate finance is experiencing strong growth, with increasing M&A activity, particularly in private equity [21][22] Question: U.S. vs. non-U.S. growth outlook - Management highlighted that while the U.S. remains the largest market, the European business is growing significantly, aided by recent acquisitions [28][31] Question: Sponsor engagement and market pressures - Management noted a steady improvement in sponsor engagement, with broad-based growth across sectors, despite some external pressures [42][44] Question: Capital management and acquisition pipeline - Management stated that the acquisition pipeline is strong, and they will continue to evaluate share repurchases while maintaining flexibility for acquisitions [56][60] Question: Non-compensation expenses outlook - Management indicated that non-compensation expenses are expected to grow in line with year-to-date trends, with some increases in specific areas like rent [64][66] Question: Data bank product strategy - Management discussed the potential for monetizing proprietary data, indicating that it is an important area of focus for future growth [68][69] Question: Impact of geopolitical uncertainty on activity levels - Management acknowledged the presence of geopolitical noise but noted that clients are increasingly willing to proceed with business despite uncertainties [74][75] Question: Capital Solutions group build-out - Management indicated that the Capital Solutions group is still in early stages of development, with significant demand across various fronts [76][77] Question: Advisory cycle positioning - Management agreed that they are in the early innings of the advisory cycle, with a strong position to capitalize on future growth opportunities [86][90]

Houlihan Lokey (NYSE:HLI) Q3 2026 Earnings call January 28, 2026 05:00 PM ET Speaker6Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Houlihan Lokey's third quarter fiscal year 2026 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. Please note that this conference call is being recorded today, January 28, 2026. I will now turn the call over to the company.Speaker2Thank you, operator, ...

Investor Presentation January 2026 Disclaimers Forward-Looking Information This presentation contains forward-looking statements. All statements other than statements of historical facts contained in this presentation may be forward-looking statements. The words "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" and other expressions that are predictions of or indicate future ev ...

Core Insights - Houlihan Lokey, Inc. has appointed Mark Ward as a Managing Director in its Business Services Group to enhance its IT services coverage in Europe [1][2] Group 1: Appointment and Role - Mark Ward will be based in the Manchester and London offices, focusing on expanding the firm's IT services coverage across Europe [2] - He will collaborate with Malte Abrams, Managing Director and Head of IT Services, Europe, to deepen sector expertise and enhance client reach [2] Group 2: Experience and Expertise - Mr. Ward brings over 14 years of investment banking and corporate finance experience, previously serving as a Managing Director at DC Advisory [3] - His expertise includes IT consulting, software development, data analytics, and managed service providers, with a strong background in executing complex M&A and corporate finance transactions [3] Group 3: Strategic Importance - The appointment is seen as a strategic move to strengthen Houlihan Lokey's European IT Services platform amid accelerating sector consolidation [4] - The firm aims to leverage Mr. Ward's extensive sector expertise to support clients in a dynamic and competitive market [4] Group 4: Business Services Group Performance - Houlihan Lokey's Business Services Group is recognized for superior service in M&A advisory, capital-raising, restructuring, and financial advisory services [4] - In 2025, the group was ranked as the No. 1 business services M&A advisor for all global transactions, completing 92 deals [4]

Core Viewpoint - Houlihan Lokey (HLI) has a strong track record of exceeding earnings estimates and is well-positioned for future earnings growth, particularly with an average surprise of 17.75% over the past two quarters [1]. Earnings Performance - In the last reported quarter, Houlihan Lokey achieved earnings of $1.84 per share, surpassing the Zacks Consensus Estimate of $1.69 per share by 8.88% [2]. - In the previous quarter, the company reported earnings of $2.14 per share against an expected $1.69 per share, resulting in a surprise of 26.63% [2]. Earnings Estimates and Predictions - Estimates for Houlihan Lokey have been trending upward, influenced by its history of earnings surprises [4]. - The company currently has a positive Earnings ESP of +2.19%, indicating that analysts are optimistic about its earnings prospects [7]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat in the upcoming report [7]. Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [5]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [6].

Key Takeaways HLI announced two buyouts to expand its European advisory business, including a stake in Audere Partners.HLI will integrate Audere Partners and add Mellum Capital's real estate teams in Munich and London.HLI shows financial strength with zero debt, a 13.1% ROIC and a 21.6% pre-tax margin in the latest quarter.HLI Quick Quote - Houlihan Lokey, Inc. ( Free Report ) , a leading global investment bank, has recently announced two acquisitions to strengthen its European business and support long-t ...

Core Insights - Houlihan Lokey has announced two strategic transactions to enhance its European platform and expand its global Corporate Finance capabilities [1] Group 1: Acquisition of Audere Partners - The firm has secured a controlling interest in Audere Partners, a leading French corporate finance firm, significantly enhancing its presence in France and positioning it as a top mid-cap advisory platform [2] - The transaction will add over 50 finance professionals to Houlihan Lokey, bringing the total number of its French team to around 80 [5] - Audere Partners is known for its expertise in French mid-cap advisory, primarily serving financial sponsors, entrepreneurs, and family-owned businesses [4] Group 2: Acquisition of Mellum Capital - Houlihan Lokey has acquired the real estate capital advisory business of Mellum Capital, which operates in Munich and London, further expanding its client support across the capital structure [3] - The Mellum Capital team, including founding partners Heinrich Hauss and Markus Reule, will join Houlihan Lokey as Managing Directors in the Capital Solutions Group [6] - The Mellum Capital business has been fully integrated into Houlihan Lokey, with a total of 11 professionals joining the firm [7] Group 3: Strategic Growth and Leadership Statements - The CEO of Houlihan Lokey emphasized the firm's growth in Europe, driven by a focus on delivering exceptional outcomes for clients through a differentiated offering [4] - The President of Houlihan Lokey, Europe, highlighted the importance of these transactions as milestones in the development of the European business, which now comprises approximately 550 financial professionals [4]

Core Insights - Houlihan Lokey, Inc. has appointed Géraud Estrangin as a Managing Director in its Industrials Group, focusing on aerospace and defense in Europe [1][2] Group 1: Appointment and Role - Géraud Estrangin will coordinate with the global Aerospace, Defense & Government team and support France-related transactions, enhancing the firm's European capabilities during a period of sustained deal activity [2] - Estrangin has nearly three decades of experience in investment banking and corporate finance, previously co-founding Lincoln International in Paris and leading the European Aerospace & Defense practice [3] Group 2: Leadership Comments - Bill Peluchiwski, Global Head of Industrials, expressed confidence that Estrangin's expertise will solidify Houlihan Lokey's position as a leading advisory platform in Europe and globally [4] - Matteo Manfredi, Co-Head of Industrials, Europe, highlighted Estrangin's exceptional track record and expertise in building advisory platforms, which will strengthen the Industrials Group [4] Group 3: Industry Performance - Houlihan Lokey's Industrials Group is recognized for its superior service in M&A advisory, capital-raising, restructuring, and financial advisory services [5] - The global Aerospace, Defense & Government practice has completed approximately 30 transactions in the past 18 months, indicating sustained momentum in the sector [5]

Houlihan Lokey, Inc. (NYSE:HLI) is included among the 15 Dividend Stocks with Low Payout Ratios and Strong Upside. Keefe Bruyette Sees a Supportive 2026 Backdrop for Houlihan Lokey (HLI) Image by Alexsander-777 from Pixabay On December 17, Keefe Bruyette lowered its price target on Houlihan Lokey, Inc. (NYSE:HLI) to $228 from $230 and kept an Outperform rating. In a research note, the firm said it still expects a constructive economic backdrop in 2026. Results from fiscal Q2 2026 supported that view. R ...