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Jun 30, 2024
Houlihan Lokey Q1 2025 Earnings Report
Houlihan Lokey's financial performance for Q1 2025 showed revenue growth driven by improving M&A activity.
Key Takeaways
Houlihan Lokey reported revenues of $514 million and diluted EPS of $1.30 for the first quarter of fiscal year 2025. The company experienced revenue growth of 24% compared to the same quarter last year, driven by improvements in M&A activity. The Corporate Finance business had its strongest first quarter ever, while Financial Restructuring had its second-strongest. Financial and Valuation Advisory is seeing increased momentum.
First quarter revenues reached $514 million, a 24% increase year-over-year.
Diluted EPS was reported at $1.30, compared to $0.90 for the same period last year.
Adjusted diluted EPS was $1.22, compared to $0.89 for the same period last year.
Corporate Finance revenues increased by 45%, Financial Restructuring revenues decreased by 5%, and Financial and Valuation Advisory revenues increased by 4%.
Revenue by Segment
Forward Guidance
Houlihan Lokey is optimistic about the fiscal year due to continued improvements in M&A and capital markets activity, despite existing macro uncertainties.
Positive Outlook
- Improving M&A activity is expected to continue driving revenue growth.
- Capital markets activity is showing signs of recovery.
- The Corporate Finance business is expected to maintain strong performance.
- The Financial Restructuring business is anticipated to remain robust.
- The Financial and Valuation Advisory business is gaining momentum.
Challenges Ahead
- Macroeconomic uncertainties could impact M&A and capital markets activity.
- Fluctuations in interest rates may affect transaction volumes.
- Regulatory changes could create headwinds for certain business segments.
- Increased competition in the investment banking industry may pressure fees.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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