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Mar 31, 2023

Houlihan Lokey Q4 2023 Earnings Report

Houlihan Lokey's financial performance declined slightly in Q4 2023 due to decreased revenues across most segments, but the company maintained solid profitability.

Key Takeaways

Houlihan Lokey reported a decrease in revenues for both the fiscal year and fourth quarter ended March 31, 2023. FY23 revenues were $1.81 billion, a 20% decrease from the previous year. Q4 2023 revenues were $445 million, a 6% decrease compared to Q4 2022. Diluted EPS for Q4 2023 was $1.10, while adjusted diluted EPS was $1.11. The company announced an increase in the quarterly dividend to $0.55 per share.

Q4 2023 revenues decreased by 6% to $445 million compared to Q4 2022.

Q4 2023 diluted EPS was $1.10, and adjusted diluted EPS was $1.11.

Corporate Finance, Financial Restructuring, and Financial and Valuation Advisory revenues all experienced slight decreases in Q4 2023.

The company's board of directors declared a quarterly cash dividend of $0.55 per share.

Total Revenue
$445M
Previous year: $471M
-5.6%
EPS
$1.11
Previous year: $1.3
-14.6%
CF Closed Transactions
140
Previous year: 144
-2.8%
FR Closed Transactions
38
Previous year: 25
+52.0%
FVA Fee Events
957
Previous year: 999
-4.2%
Gross Profit
$162M
Previous year: $178M
-8.9%
Cash and Equivalents
$714M
Previous year: $834M
-14.3%
Free Cash Flow
$219M
Previous year: $63.3M
+245.8%
Total Assets
$2.97B
Previous year: $2.89B
+2.8%

Houlihan Lokey

Houlihan Lokey

Houlihan Lokey Revenue by Segment

Forward Guidance

Houlihan Lokey believes that its diversified business model will continue to produce solid profitability under the current market environment.

Positive Outlook

  • Corporate Finance business seeing strong new business activity.
  • Corporate Finance business showing some consistency in quarterly results.
  • Financial Restructuring business had a solid fourth quarter.
  • Financial Restructuring poised to deliver strong results in fiscal 2024.
  • Financial and Valuation Advisory business modestly grew in fiscal 2023.

Revenue & Expenses

Visualization of income flow from segment revenue to net income