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Houlihan Lokey
(NYSE:HLI)
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Rating:64Neutral
Price Target:
$137.00
â–¼(-2.30% Downside)
Action:Reiterated
Date:08/06/26
HLI scores 64 driven primarily by strong underlying financial health (solid margins, low leverage, and good cash conversion). The score is held back by weak technicals (price below key moving averages and negative MACD) and a mixed earnings-call backdrop where significant near-term deal delays weighed on results despite management citing record pipeline and steady cost discipline.
Positive Factors
Healthy margins and profitability
Sustained high operating and net margins reflect advisory pricing power and low capital intensity. Durable margin structure supports cash generation through cycles, funds reinvestment and shareholder returns, and provides a buffer versus revenue volatility inherent in deal-driven models.
Negative Factors
Cyclical and uneven revenue trends
Advisory revenue depends on deal activity and is inherently lumpy. Persistent volatility in top-line growth increases forecasting uncertainty, pressures leverageable cost structures, and can compress realized profitability during extended weak deal environments despite solid margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Healthy margins and profitability
Sustained high operating and net margins reflect advisory pricing power and low capital intensity. Durable margin structure supports cash generation through cycles, funds reinvestment and shareholder returns, and provides a buffer versus revenue volatility inherent in deal-driven models.
Read all positive factors
Houlihan Lokey (HLI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.77B
Dividend Yield1.99%
Average Volume (3M)819.09K
Price to Earnings (P/E)20.6
Beta (1Y)0.99
Revenue Growth1.59%
EPS Growth-1.40%
CountryUS
Employees2,800
SectorFinancial
Sector Strength70
IndustryInvestment - Banking & Investment Services
Share Statistics
EPS (TTM)6.09
Shares Outstanding54,197,536
10 Day Avg. Volume778,537
30 Day Avg. Volume819,090
Financial Highlights & Ratios
PEG Ratio4.26
Price to Book (P/B)4.08
Price to Sales (P/S)3.65
P/FCF Ratio14.02
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$152.83Price Target Upside8.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)6.97
Revenue Forecast (FY)$2.86B
Houlihan Lokey Business Overview & Revenue Model
Company Description
Houlihan Lokey, Inc. is a prominent global investment banking firm offering a comprehensive suite of financial advisory services. These include expertise in mergers and acquisitions (M&A), capital markets, financial restructuring, and valuation. T...
How the Company Makes Money
Houlihan Lokey primarily makes money by earning advisory fees for executing client engagements, with revenue recognized when advisory services are performed and transactions or milestones are achieved. Its key revenue streams are: (1) Corporate Fi...
Houlihan Lokey Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Neutral
The call balanced meaningful near-term challenges — notably a 24% decline in Corporate Finance revenue and a ~54% drop in technology-related revenue — with offsetting strengths such as overall profitability (adjusted EPS $1.35), FVA growth (+13% revenue, +9% fee events), a healthy restructuring outlook, record backlog/pipeline metrics, stable compensation discipline (61.5% ratio), active M&A/talent strategy, and continued investment in AI and data capabilities. Management framed the results as a temporary disruption tied to identifiable macro factors and emphasized that most delayed transactions remain in the pipeline, supporting medium-term confidence.Positive Updates
Quarterly Revenue and EPS
Total revenues of $511 million and adjusted EPS of $1.35 for Q1 fiscal 2027, demonstrating continued profitability despite near-term headwinds.
Negative Updates
Corporate Finance Revenue Decline
Corporate Finance revenues were $303 million, down 24% year-over-year. Although closed transactions were flat at 127, the average transaction fee on closed deals decreased significantly as larger fee deals were disproportionately delayed.
Read all updates
Q1-2027 Updates
Positive
Negative
Quarterly Revenue and EPS
Total revenues of $511 million and adjusted EPS of $1.35 for Q1 fiscal 2027, demonstrating continued profitability despite near-term headwinds.
Read all positive updates
Company Guidance
Management's guidance and targets emphasized operational stability and specific fiscal-year targets alongside quarter metrics: Q1 results were revenue $511M and adjusted EPS $1.35, with Corporate Finance revenues $303M (‑24% YoY) on 127 closed transactions (flat YoY) and lower average fees, Financial Restructuring $119M with 23 closed transactions (‑34% YoY) and higher average fees, and Financial & Valuation Advisory $89M (+13% YoY) with 1,042 fee events (+9% YoY vs 957). For fiscal 2027 they reaffirm a long‑term adjusted compensation expense ratio target of 61.5% (Q1 61.5% vs 61.5% prior year), expect adjusted non‑compensation expense growth for the year similar to last year (Q1 non‑comp $100M, +6% vs $94M), and forecast a full‑year adjusted effective tax rate of 26–28% (Q1 ETR 13% vs ‑1% prior year). They also said restructuring should be a solid, elevated year, noted record backlog/pipeline/new‑mandate levels in Corporate Finance, expect the Intrepid acquisition to close by end of Q2 adding 32 colleagues, and reported ~1.3M shares issued and ~1.1M repurchased (≈800k withheld, ≈300k via repurchase).Houlihan Lokey Financial Statement Overview
Summary
Income Statement
77
Positive
Balance Sheet
82
Very Positive
Cash Flow
70
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.52B | 2.62B | 2.39B | 1.91B | 1.81B | 2.27B |
| Gross Profit | 1.28B | 2.57B | 919.92M | 737.05M | 696.64M | 861.32M |
| EBITDA | 594.44M | 604.90M | 597.59M | 427.63M | 435.03M | 661.40M |
| Net Income | 406.16M | 425.70M | 399.71M | 280.30M | 254.22M | 437.75M |
Balance Sheet | ||||||
| Total Assets | 3.72B | 4.31B | 3.82B | 3.17B | 2.97B | 2.89B |
| Cash, Cash Equivalents and Short-Term Investments | 797.00M | 1.36B | 1.14B | 728.80M | 720.69M | 833.70M |
| Total Debt | 493.00M | 492.11M | 438.19M | 415.41M | 374.87M | 197.63M |
| Total Liabilities | 1.35B | 1.86B | 1.64B | 1.33B | 1.36B | 1.44B |
| Stockholders Equity | 2.25B | 2.34B | 2.17B | 1.84B | 1.61B | 1.44B |
Cash Flow | ||||||
| Free Cash Flow | 484.63M | 681.82M | 808.91M | 261.73M | 85.54M | 727.92M |
| Operating Cash Flow | 499.76M | 704.13M | 848.61M | 328.46M | 136.27M | 736.60M |
| Investing Cash Flow | 4.53M | 2.18M | -265.06M | -70.41M | -3.00M | -273.91M |
| Financing Cash Flow | -513.32M | -492.94M | -329.07M | -250.59M | -240.46M | -459.06M |
Houlihan Lokey Technical Analysis
Negative
140.23
Price Trends
137.51
Negative
143.30
Negative
158.47
Negative
Market Momentum
-3.18
Positive
40.65
Neutral
45.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HLI, the sentiment is Negative. The current price of 140.23 is above the 20-day moving average (MA) of 135.55, above the 50-day MA of 137.51, and below the 200-day MA of 158.47, indicating a bearish trend. The MACD of -3.18 indicates Positive momentum. The RSI at 40.65 is Neutral, neither overbought nor oversold. The STOCH value of 45.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HLI.
Houlihan Lokey Risk Analysis
Houlihan Lokey disclosed 28 risk factors in its most recent earnings report. Houlihan Lokey reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
If the Final Conversion Date occurs, the voting power of shares of our common stock controlled by the HL Voting Trust would significantly decline and the voting power of shares held by our other holders of Class A common stock would significantly increase, which could affect our status as a "controlled company", change the holders of the voting power of our common stock and ultimately affect the market price of our Class A common stock in ways we cannot anticipate. Q1, 2026
Houlihan Lokey Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $12.57B | 9.12 | 16.36% | 1.79% | 11.06% | 60.96% | |
73 Outperform | $5.44B | 22.14 | 43.55% | 3.88% | 13.69% | 12.33% | |
72 Outperform | $5.39B | 16.65 | 22.90% | 2.59% | 32.12% | 40.51% | |
71 Outperform | $12.40B | 16.70 | 53.00% | 1.00% | 45.68% | 59.92% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $8.77B | 20.61 | 17.78% | 1.78% | 1.59% | -1.40% | |
60 Neutral | $12.59B | 14.72 | 8.51% | 2.86% | 29.74% | 35.56% |
* Financial Sector Average
HLI
Houlihan Lokey
129.00
-57.07
-30.67%
EVR
Evercore Partners
305.94
13.26
4.53%
JEF
Jefferies
56.62
-0.19
-0.33%
PIPR
Piper Sandler
74.79
-3.91
-4.97%
SF
Stifel Financial
83.09
9.94
13.58%
MC
Moelis
66.63
-1.31
-1.93%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.