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Houlihan Lokey Shares Up Since Q4 Earnings Beat Estimates
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Houlihan Lokey, Inc. (HLI - Free Report) shares have risen 5.4% since the company reported its fiscal fourth-quarter results on May 7, 2025. The quarterly results gained from growth in its corporate finance, financial and valuation advisory, and financial restructuring businesses. However, higher expenses partially offset the upsides.
HLI reported fiscal fourth-quarter 2025 adjusted earnings per share (EPS) of $1.96, which outpaced the Zacks Consensus Estimate by 21.7%. The bottom line advanced 54% year over year.
Total revenues improved 28% year over year to $666.4 million in the quarter under review. The top line beat the Zacks Consensus Estimate by 6.4%.
Houlihan Lokey, Inc. Price, Consensus and EPS Surprise
Income before provision for income taxes increased 27.3% year over year to $150.3 million.
Total operating expenses rose 26.2% year over year to $527.2 million. The year-over-year rise was due to higher employee compensation and benefits, and non-compensation expenses.
The adjusted compensation expense ratio remained stable at 61.5%. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
HLI’s Segmental Update
Corporate Finance: Revenues advanced 43.5% year over year to $412.7 million in the fiscal fourth quarter. The segment benefited from improved average transaction fees on closed transactions, driven by transaction mix in the quarter. It also advanced due to an increase in the number of closed transactions. Managing Directors rose 7.6%, and closed transactions jumped 21.5% year over year in the quarter.
Financial Restructuring: The unit’s revenues improved 5.9% year over year in the quarter under review. The segment benefited from an improved number of closed transactions and average transaction fees on closed transactions. Managing Directors and closed transactions rose 5.6% and 8.6%, respectively, in the fiscal fourth quarter.
Financial and Valuation Advisory: The segment’s revenues improved 15.1% year over year in the quarter under review due to a rise in the number of fee events. Improving M&A markets affecting service lines within this segment led to an improvement in the number of fee events. Managing Directors rose 7.7% in the fiscal fourth quarter.
Full-Year Update by HLI
Total revenues increased 24.8% year over year to $2.4 billion in fiscal 2025.
Total operating expenses rose 21.7% year over year to $1.9 billion in fiscal 2025.
Adjusted EPS rose 40.1% year over year to $6.29 in fiscal 2025.
HLI’s Financial Update (as of March 31, 2025)
Houlihan Lokey exited the fiscal fourth quarter with cash and cash equivalents of $971 million, which rose from $721.2 million at fiscal 2024-end. Total assets of $3.8 billion increased from $3.2 billion at 2024-end.
Operating lease liabilities of $438.2 million increased from $415.4 million at the end of fiscal 2024.
Total equity of $2.2 billion rose from $1.8 billion at fiscal 2024-end.
HLI’s Dividend Update
HLI increased its cash dividend by 5% to 60 cents per share. The dividend will be paid out on June 15, 2025 to shareholders of record as of June 2.
The Zacks Consensus Estimate for Horace Mann Educators’ current-year earnings of $4.01 per share has witnessed two upward revisions in the past 30 days against none in the opposite direction. Horace Mann Educators beat earnings estimates in three of the trailing four quarters and met once, with the average surprise being 24.1%. The consensus estimate for current-year revenues is pegged at $1.7 billion, implying 6.6% year-over-year growth.
The Zacks Consensus Estimate for EverQuote’s current-year earnings is pegged at $1.17 per share. EverQuote beat earnings estimates in each of the trailing four quarters, with the average surprise being 122.6%. The consensus estimate for current-year revenues is pegged at $644.1 million, suggesting 28.8% year-over-year growth.
The Zacks Consensus Estimate for Heritage Insurance’s current-year earnings of $3.25 per share has witnessed two upward revisions in the past 30 days against no movement in the opposite direction. Heritage Insurance beat earnings estimates in each of the trailing four quarters, with the average surprise being 363.2%. The consensus estimate for current-year revenues is pegged at $854.9 million, calling for 4.6% year-over-year growth.
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Houlihan Lokey Shares Up Since Q4 Earnings Beat Estimates
Houlihan Lokey, Inc. (HLI - Free Report) shares have risen 5.4% since the company reported its fiscal fourth-quarter results on May 7, 2025. The quarterly results gained from growth in its corporate finance, financial and valuation advisory, and financial restructuring businesses. However, higher expenses partially offset the upsides.
HLI reported fiscal fourth-quarter 2025 adjusted earnings per share (EPS) of $1.96, which outpaced the Zacks Consensus Estimate by 21.7%. The bottom line advanced 54% year over year.
Total revenues improved 28% year over year to $666.4 million in the quarter under review. The top line beat the Zacks Consensus Estimate by 6.4%.
Houlihan Lokey, Inc. Price, Consensus and EPS Surprise
Houlihan Lokey, Inc. price-consensus-eps-surprise-chart | Houlihan Lokey, Inc. Quote
HLI’s Q4 Performance Details
Income before provision for income taxes increased 27.3% year over year to $150.3 million.
Total operating expenses rose 26.2% year over year to $527.2 million. The year-over-year rise was due to higher employee compensation and benefits, and non-compensation expenses.
The adjusted compensation expense ratio remained stable at 61.5%. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
HLI’s Segmental Update
Corporate Finance: Revenues advanced 43.5% year over year to $412.7 million in the fiscal fourth quarter. The segment benefited from improved average transaction fees on closed transactions, driven by transaction mix in the quarter. It also advanced due to an increase in the number of closed transactions. Managing Directors rose 7.6%, and closed transactions jumped 21.5% year over year in the quarter.
Financial Restructuring: The unit’s revenues improved 5.9% year over year in the quarter under review. The segment benefited from an improved number of closed transactions and average transaction fees on closed transactions. Managing Directors and closed transactions rose 5.6% and 8.6%, respectively, in the fiscal fourth quarter.
Financial and Valuation Advisory: The segment’s revenues improved 15.1% year over year in the quarter under review due to a rise in the number of fee events. Improving M&A markets affecting service lines within this segment led to an improvement in the number of fee events. Managing Directors rose 7.7% in the fiscal fourth quarter.
Full-Year Update by HLI
Total revenues increased 24.8% year over year to $2.4 billion in fiscal 2025.
Total operating expenses rose 21.7% year over year to $1.9 billion in fiscal 2025.
Adjusted EPS rose 40.1% year over year to $6.29 in fiscal 2025.
HLI’s Financial Update (as of March 31, 2025)
Houlihan Lokey exited the fiscal fourth quarter with cash and cash equivalents of $971 million, which rose from $721.2 million at fiscal 2024-end. Total assets of $3.8 billion increased from $3.2 billion at 2024-end.
Operating lease liabilities of $438.2 million increased from $415.4 million at the end of fiscal 2024.
Total equity of $2.2 billion rose from $1.8 billion at fiscal 2024-end.
HLI’s Dividend Update
HLI increased its cash dividend by 5% to 60 cents per share. The dividend will be paid out on June 15, 2025 to shareholders of record as of June 2.
HLI’s Zacks Rank & Key Picks
HLI currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Finance space are Horace Mann Educators Corp (HMN - Free Report) , EverQuote Inc. (EVER - Free Report) and Heritage Insurance Holdings Inc. (HRTG - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Horace Mann Educators’ current-year earnings of $4.01 per share has witnessed two upward revisions in the past 30 days against none in the opposite direction. Horace Mann Educators beat earnings estimates in three of the trailing four quarters and met once, with the average surprise being 24.1%. The consensus estimate for current-year revenues is pegged at $1.7 billion, implying 6.6% year-over-year growth.
The Zacks Consensus Estimate for EverQuote’s current-year earnings is pegged at $1.17 per share. EverQuote beat earnings estimates in each of the trailing four quarters, with the average surprise being 122.6%. The consensus estimate for current-year revenues is pegged at $644.1 million, suggesting 28.8% year-over-year growth.
The Zacks Consensus Estimate for Heritage Insurance’s current-year earnings of $3.25 per share has witnessed two upward revisions in the past 30 days against no movement in the opposite direction. Heritage Insurance beat earnings estimates in each of the trailing four quarters, with the average surprise being 363.2%. The consensus estimate for current-year revenues is pegged at $854.9 million, calling for 4.6% year-over-year growth.