Q2 2026 Houlihan Lokey Inc Earnings Call Transcript
Key Points
- Revenues increased by 15% to $659 million, and adjusted earnings per share rose by 26% compared to the same period last year.
- Corporate Finance revenues grew by 21% to $439 million, with the highest number of completed transactions since late 2021.
- The Financial and Valuation Advisory segment saw a 10% revenue increase, benefiting from an improving M&A market.
- Strong performance in non-US markets, particularly in EMEA and Asia Pacific, indicating solid growth and brand momentum.
- The company hired five new managing directors and continues to attract senior talent, enhancing its global platform.
- Average transaction fees on closed deals decreased in both Corporate Finance and Financial Restructuring segments.
- Financial Restructuring revenues only increased by 2%, indicating a slowdown in new business activity due to easing interest rates.
- Adjusted compensation expenses rose to $406 million, up from $354 million in the same period last year.
- The adjusted noncompensation expense ratio decreased slightly, but overall noncompensation expenses remained relatively flat.
- The restructuring business is experiencing a slowdown in new business activity, despite a robust backlog.
Good day, ladies and gentlemen. Thank you for standing by. Welcome to Houlihan Lokey's fiscal second-quarter 2026 earnings conference call. (Operator Instructions) Please note this conference call is being recorded today, October 30, 2025.
I would now like to turn the floor over to the company.
Thank you, operator, and hello, everyone. By now, everyone should have access to our second quarter fiscal year 2026 earnings release which can be found on the Houlihan Lokey website at www.hl.com in the Investor Relations section.
Before we begin our formal remarks, we need to remind everyone that the discussion today will include forward-looking statements. These forward-looking statements, which are usually identified by use of words such as will, expect, anticipate, should or other similar phrases are not guarantees of future performance.
These statements are subject to numerous risks and uncertainties that could
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