Detailed financial statements for Houlihan Lokey, Inc. (HLI): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
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. The company's operations are divided into three core segments: The Corporate Finance division provides broad financial guidance.
Analysis Summary
Houlihan Lokey, Inc. reported revenue of $2.62B in the most recent fiscal year, growing at a 5-year CAGR of 11.4%. Net income reached $425.7M, with a 6.4% 5-year CAGR.
Trailing-twelve-month margins: gross margin 50.8%, operating margin 21.8%, net margin 16.1%. Free cash flow grew at 3.8% CAGR over 5 years.
At the current price of $128.53, HLI trades at a P/E of 21.34 and an ROE of 18.17%. Market capitalisation stands at $9.0B.
Balance sheet quality for HLI: current ratio of 1.5, net cash position of $867.6M. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $681.8M represents 160% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $872.1M | $963.4M | $1.08B | $1.16B | $1.53B | $2.27B | $1.81B | $1.91B | $2.39B | $2.62B |
| Cost of Revenue | $582.2M | $636.6M | $692.1M | $737.8M | $971.2M | $1.41B | $1.11B | $1.18B | $1.47B | $42.6M |
| Gross Profit | $289.8M | $326.7M | $392.3M | $421.6M | $554.3M | $861.3M | $696.6M | $737.0M | $919.9M | $2.57B |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Selling, General & Admin | $57.8M | $64.2M | $83.2M | $93.3M | $95.6M | $127.8M | $142.9M | $185.3M | $188.5M | 0 |
| Operating Expenses | $107.9M | $112.3M | $173.2M | $192.0M | $146.1M | $248.5M | $354.9M | $374.2M | $418.4M | $1.96B |
| Operating Income | $182.0M | $214.4M | $219.1M | $229.6M | $408.2M | $612.9M | $341.7M | $362.9M | $501.5M | $618.5M |
| EBITDA | $190.8M | $222.3M | $233.6M | $246.9M | $423.4M | $661.4M | $435.0M | $427.6M | $597.6M | $604.9M |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Pre-tax Income | $178.5M | $217.8M | $224.3M | $235.6M | $409.2M | $603.9M | $324.0M | $390.5M | $531.3M | $562.3M |
| Income Tax | $70.1M | $45.6M | $65.2M | $51.9M | $96.5M | $165.6M | $69.8M | $110.2M | $131.6M | $138.1M |
| Net Income | $108.3M | $172.3M | $159.1M | $183.8M | $312.8M | $437.8M | $254.2M | $280.3M | $399.7M | $425.7M |
| EPS | $1.77 | $2.60 | $2.42 | $2.96 | $4.75 | $6.74 | $4.01 | $4.36 | $6.08 | $6.40 |
| EPS (Diluted) | $1.63 | $2.60 | $2.42 | $2.80 | $4.55 | $6.41 | $3.76 | $4.11 | $5.82 | $6.22 |
| Shares Outstanding (Diluted) | $66.6M | $66.3M | $65.8M | $65.7M | $68.7M | $68.3M | $67.6M | $68.2M | $68.7M | $68.4M |
Income Statement (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Revenue | $659.5M | $717.1M | $635.6M | $511.0M |
| Gross Profit | $221.0M | $276.1M | $627.6M | $157.0M |
| Operating Income | $151.3M | $178.3M | $143.0M | $78.0M |
| EBITDA | $179.3M | $186.6M | $142.6M | $86.0M |
| Net Income | $111.8M | $116.5M | $99.8M | $78.0M |
| EPS | $1.67 | $1.75 | $1.50 | $1.17 |
| EPS (Diluted) | $1.63 | $1.70 | $1.47 | $1.15 |
Balance Sheet (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $300.3M | $206.7M | $285.7M | $380.4M | $846.9M | $833.7M | $714.4M | $721.2M | $971.0M | $1.19B |
| Short-term Investments | 0 | 0 | 0 | $105.3M | 0 | 0 | $6.3M | $7.6M | $167.3M | $170.3M |
| Receivables | $129.3M | $131.9M | $151.4M | $125.0M | $226.5M | $248.8M | $314.8M | $424.5M | $415.1M | $499.6M |
| Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Current Assets | $622.0M | $432.1M | $437.5M | $611.1M | $1.07B | $1.08B | $1.04B | $1.15B | $1.56B | $1.86B |
| Property, Plant & Equipment | $30.4M | $32.1M | $31.0M | $177.6M | $198.4M | $224.1M | $422.2M | $480.7M | $512.0M | $142.9M |
| Goodwill | $519.5M | $528.9M | $594.8M | $618.5M | $671.1M | $1.07B | $1.09B | $1.13B | $1.28B | $1.40B |
| Intangible Assets | $195.9M | $194.4M | $199.8M | $194.4M | $195.2M | $247.3M | $203.4M | $197.4M | $212.7M | $204.2M |
| Total Assets | $1.38B | $1.42B | $1.42B | $1.68B | $2.43B | $2.89B | $2.97B | $3.17B | $3.82B | $4.31B |
| Accounts Payable | $41.7M | $40.8M | $55.0M | $53.9M | $67.5M | $126.2M | $113.4M | $114.2M | $137.2M | $135.9M |
| Short-term Debt | 0 | $989,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Current Liabilities | $386.8M | $432.3M | $495.3M | $501.0M | $812.1M | $1.17B | $920.0M | $873.3M | $1.13B | $1.21B |
| Long-term Debt | $32.6M | $11.9M | $8.7M | $4.7M | $818,000 | $539,000 | 0 | 0 | 0 | 0 |
| Total Liabilities | $655.3M | $566.0M | $534.6M | $692.6M | $1.04B | $1.44B | $1.36B | $1.33B | $1.64B | $1.86B |
| Retained Earnings | $87.4M | $207.1M | $276.5M | $377.5M | $600.1M | $922.2M | $1.03B | $1.16B | $1.39B | $1.65B |
| Total Equity | $726.6M | $852.8M | $891.3M | $984.4M | $1.38B | $1.44B | $1.61B | $1.84B | $2.17B | $2.34B |
| Total Debt | $32.6M | $12.8M | $8.7M | $158.9M | $175.3M | $197.6M | $374.9M | $415.4M | $438.2M | $492.1M |
| Net Debt | -$267.8M | -$193.9M | -$277.1M | -$326.8M | -$671.5M | -$636.1M | -$345.8M | -$313.4M | -$700.1M | -$867.6M |
| Working Capital | $235.2M | -$184,000 | -$57.9M | $110.0M | $261.7M | -$87.0M | $115.8M | $280.6M | $429.5M | $646.7M |
Balance Sheet (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Cash & Equivalents | $923.6M | $1.06B | $1.19B | $745.0M |
| Total Assets | $3.79B | $3.94B | $4.31B | $3.72B |
| Total Liabilities | $1.55B | $1.64B | $1.86B | $1.35B |
| Total Equity | $2.25B | $2.29B | $2.34B | $2.25B |
| Total Debt | $432.9M | $497.1M | $492.1M | $493.0M |
Cash Flow (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $108.3M | $172.3M | $159.1M | $183.8M | $312.8M | $437.8M | $254.2M | $280.3M | $399.7M | $424.2M |
| Depreciation & Amortization | $8.9M | $7.9M | $14.5M | $17.3M | $15.2M | $48.5M | $58.2M | $28.5M | $41.3M | $42.6M |
| Stock-based Compensation | $39.4M | $47.1M | $56.6M | $64.3M | $62.4M | $91.9M | $156.9M | $166.6M | $168.4M | $201.3M |
| Change in Working Capital | $74.8M | $29.5M | $4.2M | $3.7M | $180.2M | $182.4M | -$368.5M | -$196.4M | $196.1M | -$2.1M |
| Operating Cash Flow | $229.3M | $250.6M | $224.3M | $287.7M | $579.8M | $736.6M | $136.3M | $328.5M | $848.6M | $704.1M |
| Capital Expenditure | -$14.4M | -$7.7M | -$6.7M | -$20.7M | -$14.1M | -$8.7M | -$50.7M | -$66.7M | -$39.7M | -$22.3M |
| Acquisitions | -$3.7M | -$2.7M | -$71.4M | -$2.2M | -$12.5M | -$361.0M | -$20.4M | -$3.9M | -$69.2M | -$2.5M |
| Stock Repurchased | 0 | -$18.1M | -$69.6M | -$29.6M | -$102.2M | -$304.8M | -$48.7M | -$25.0M | -$52.5M | -$175.4M |
| Dividends Paid | -$55.3M | -$52.1M | -$66.9M | -$80.7M | -$92.0M | -$114.8M | -$140.4M | -$148.5M | -$165.2M | -$174.0M |
| Free Cash Flow | $214.8M | $242.9M | $217.5M | $266.9M | $565.7M | $727.9M | $85.5M | $261.7M | $808.9M | $681.8M |
Cash Flow (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Operating Cash Flow | $325.0M | $217.7M | $293.0M | -$336.0M |
| Capital Expenditure | -$2.2M | -$639,000 | -$6.2M | -$6.0M |
| Free Cash Flow | $322.8M | $217.0M | $286.8M | -$342.0M |
| Dividends Paid | -$41.8M | -$40.6M | -$39.2M | -$61.0M |
| Stock-based Compensation | $46.6M | $60.9M | $51.5M | $45.0M |
Growth & Margins (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +10.5% | +12.6% | +6.9% | +31.6% | +48.8% | -20.3% | +5.8% | +24.8% | +9.5% | |
| Net Income Growth (YoY) | +59.0% | -7.6% | +15.5% | +70.2% | +40.0% | -41.9% | +10.3% | +42.6% | +6.5% | |
| EPS Growth (YoY) | +46.9% | -6.9% | +22.3% | +60.5% | +41.9% | -40.5% | +8.7% | +39.4% | +5.3% | |
| Shares Change (YoY) | -0.4% | -0.7% | -0.2% | +4.5% | -0.6% | -1.0% | +0.8% | +0.7% | -0.3% | |
| FCF Growth (YoY) | +13.1% | -10.4% | +22.7% | +111.9% | +28.7% | -88.2% | +206.0% | +209.1% | -15.7% | |
| Gross Margin | 33.2% | 33.9% | 36.2% | 36.4% | 36.3% | 37.9% | 38.5% | 38.5% | 38.5% | 98.4% |
| Operating Margin | 20.9% | 22.3% | 20.2% | 19.8% | 26.8% | 27.0% | 18.9% | 19.0% | 21.0% | 23.6% |
| EBITDA Margin | 21.9% | 23.1% | 21.5% | 21.3% | 27.8% | 29.1% | 24.0% | 22.3% | 25.0% | 23.1% |
| Net Margin | 12.4% | 17.9% | 14.7% | 15.9% | 20.5% | 19.3% | 14.0% | 14.6% | 16.7% | 16.3% |
| FCF Margin | 24.6% | 25.2% | 20.1% | 23.0% | 37.1% | 32.1% | 4.7% | 13.7% | 33.9% | 26.0% |
| Effective Tax Rate | 39.3% | 20.9% | 29.1% | 22.0% | 23.6% | 27.4% | 21.5% | 28.2% | 24.8% | 24.6% |
Per-Share Data (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $3.23 | $3.66 | $3.30 | $4.06 | $8.24 | $10.66 | $1.27 | $3.84 | $11.78 | $9.96 |
| Dividends Per Share | $0.83 | $0.79 | $1.02 | $1.23 | $1.34 | $1.68 | $2.08 | $2.18 | $2.41 | $2.54 |
| Shares Outstanding (Basic) | $61.1M | $66.3M | $65.7M | $62.2M | $65.8M | $65.0M | $63.4M | $64.3M | $65.7M | $66.5M |
What to look at in Banking companies
- Efficiency Ratio (<=55%) — Operating expenses / revenue. Top banks below 55%.
- ROA (>=1%) — How much they earn per dollar of assets. ROE misleads in banks due to leverage.
- ROTCE (>=12%) — Return on Tangible Common Equity. Strips goodwill and intangibles.
- Equity / Assets (Tier 1 proxy) (>=8%) — Capital ratio proxy. Regulatory Tier 1 is not in our data.
- P/B (1.0-1.5x) — Classic banking metric. <1x can be opportunity or distress.
- Sustainable dividend yield (>=2%, <8%) — EU banks pay 5-7% normally. >8% is distress signal.
Profitability
| Return on Equity | 18.17% |
| Return on Invested Capital | 15.07% |
| Return on Assets | 9.88% |
| Gross Margin | 50.79% |
| Operating Margin | 21.82% |
| Net Margin | 16.10% |
Financial Health
| Debt / Equity | 0.22 |
| Current Ratio | 1.44 |
Key Ratios (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 19.46 | 17.15 | 19.31 | 17.61 | 14.00 | 13.03 | 21.82 | 29.39 | 26.56 | 22.44 |
| P/B | 2.90 | 3.47 | 3.45 | 3.29 | 3.16 | 3.95 | 3.44 | 4.49 | 4.88 | 4.08 |
| P/S | 2.41 | 3.07 | 2.83 | 2.79 | 2.87 | 2.51 | 3.06 | 4.31 | 4.44 | 3.65 |
| Gross Margin | 33.2% | 33.9% | 36.2% | 36.4% | 36.3% | 37.9% | 38.5% | 38.5% | 38.5% | 98.4% |
| Operating Margin | 20.9% | 22.3% | 20.2% | 19.8% | 26.8% | 27.0% | 18.9% | 19.0% | 21.0% | 23.6% |
| Net Margin | 12.4% | 17.9% | 14.7% | 15.9% | 20.5% | 19.3% | 14.0% | 14.6% | 16.7% | 16.3% |
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