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Sep 30, 2024

Houlihan Lokey Q2 2025 Earnings Report

Houlihan Lokey's financial performance improved in Q2 2025, marked by revenue growth and increased EPS.

Key Takeaways

Houlihan Lokey reported a strong second quarter in fiscal year 2025, with revenues reaching $575 million compared to $467 million in the same quarter of the previous year. The company's diluted EPS increased to $1.37, and adjusted diluted EPS was $1.46. All three business lines contributed to this growth, and the company anticipates a positive outlook for the second half of fiscal 2025.

Revenues for Q2 2025 reached $575 million, a notable increase from $467 million in Q2 2024.

Diluted EPS for Q2 2025 was reported at $1.37, up from $0.99 in Q2 2024.

Adjusted diluted EPS for Q2 2025 was $1.46, compared to $1.11 in Q2 2024.

The company announced a dividend of $0.57 per share for the third quarter of fiscal year 2025.

Total Revenue
$575M
Previous year: $467M
+23.1%
EPS
$1.46
Previous year: $1.11
+31.5%
CF Closed Transactions
131
Previous year: 117
+12.0%
FR Closed Transactions
33
Previous year: 31
+6.5%
FVA Fee Events
903
Previous year: 852
+6.0%
Gross Profit
$148M
Previous year: $170M
-13.3%
Cash and Equivalents
$691M
Previous year: $494M
+40.0%
Free Cash Flow
$279M
Previous year: $113M
+147.7%
Total Assets
$3.21B
Previous year: $2.78B
+15.5%

Houlihan Lokey

Houlihan Lokey

Houlihan Lokey Revenue by Segment

Forward Guidance

Houlihan Lokey anticipates a positive outlook for the second half of fiscal year 2025, citing momentum across all three business lines and the benefits of a highly diversified business model, despite recognizing uncertainties in the macro environment.

Positive Outlook

  • Momentum across all three business lines
  • Benefits of a highly diversified business model
  • Increase in the average transaction fee on closed transactions in Corporate Finance
  • Increase in the average transaction fee on closed transactions in Financial Restructuring
  • Increase in the number of Fee Events and an increase in the average fee per Fee Event in Financial and Valuation Advisory

Challenges Ahead

  • Uncertainties in the macro environment
  • Increased state taxes
  • Increased taxes due to foreign operations
  • Increase in other operating expenses
  • Increase in information technology and communication expenses

Revenue & Expenses

Visualization of income flow from segment revenue to net income