Houlihan Lokey Posts Robust Quarterly Performance Amid Strategic Shifts

Houlihan Lokey US4415931009

Investment bank Houlihan Lokey has reported a strong set of results for its fiscal third quarter, driven by significant gains in its core advisory segments. The performance raises questions about its durability in an evolving market landscape.

• Revenue: USD 717 million
• Adjusted Earnings Per Share (EPS): USD 1.94
• Dividend: USD 0.60 per share
• Share Repurchases: Approximately 418,000 shares
• Cash & Equivalents: USD 1.18 billion

The firm’s Corporate Finance division was a primary growth engine, generating USD 474 million in revenue—a 12% year-over-year increase. Even more pronounced was the 19% surge in the Financial Restructuring business, where revenue climbed to USD 156 million. The Financial and Valuation Advisory segment also contributed, posting a 6% gain to reach USD 87 million.

Shareholders are set to receive a regular quarterly cash dividend of USD 0.60 per share. The payment will be distributed on March 15 to stockholders of record as of March 2. Demonstrating further confidence in its value, the company bought back roughly 418,000 of its own shares during the quarter, supported by a substantial cash position of USD 1.18 billion.

European Ambitions Through Acquisition

Beyond organic growth, Houlihan Lokey is actively expanding its European footprint via strategic acquisitions. In early January, the firm completed the purchase of Mellon Capital's real estate advisory business, bolstering its teams in Munich and London.

Furthermore, an agreement was announced last week to acquire a majority stake in Audere Partners, a French corporate finance specialist. This transaction is anticipated to close in the first quarter of 2026. These moves are designed to substantially enhance the firm's continental European market presence.

Market Outlook: A Mixed Recovery

Company leadership points to improving investor sentiment and a pickup in private equity activity as signs of a recovering global mergers and acquisitions (M&A) environment. They expect momentum to persist into 2026, fueled by investments in artificial intelligence and strategic corporate repositioning.

While the Restructuring advisory unit benefited from accelerated transaction timelines this quarter, the company anticipates some revenue pressure in this segment for fiscal 2027, assuming broader market stabilization continues. However, geopolitical developments could reintroduce volatility and demand for restructuring services. The outlook for 2026 appears nuanced: overall transaction volume may remain subdued, but deal values—particularly for large-scale projects—are expected to stay elevated.