Houlihan Lokey, Inc. Class A (HLI)

In the past six months, Houlihan Lokey's stock has experienced some fluctuations. As of early February 2026, the stock decreased by 6.88% in the past month and 8.18% over the last 12 months. Despite this, the company reported strong third-quarter fiscal year 2026 financial results on January 28, 2026, surpassing analyst expectations for both revenue and adjusted earnings per share. Revenue increased by 13% year-over-year to $717.1 million, and adjusted EPS was $1.94, beating forecasts. Management attributed this performance to strengthening activity in its Corporate Finance segment and increased private equity deal flow, driven by improving investor sentiment and expectations of declining interest rates. However, despite these positive earnings, the stock experienced a fall. Restructuring revenues were noted to be subject to timing effects, which could impact Q4 performance.

Demand for Houlihan Lokey's services is influenced by broader economic and market conditions rather than strict calendar seasonality. The Financial Restructuring segment is counter-cyclical, while the Corporate Finance and Financial and Valuation Advisory segments benefit from improving investor sentiment and strong capital markets. The nature of their business segments suggests varying demand drivers that can offset each other to some extent across different economic cycles.

Houlihan Lokey, Inc. (HLI) is a global investment bank operating within the Financial Services sector, specifically in the Capital Markets and Investment Banking industry. The firm's core business revolves around three primary segments: Corporate Finance, Financial Restructuring, and Financial and Valuation Advisory. The Corporate Finance segment offers M&A advisory services, debt and equity financings. The Financial Restructuring segment advises on recapitalization/deleveraging transactions and is considered a counter-cyclical business. The Financial and Valuation Advisory segment provides valuation services and fairness opinions. The firm organizes its advisory teams into nine dedicated industry groups to provide sector-specific knowledge.

Houlihan Lokey has a significant global presence with a physical footprint in 33 locations worldwide, spanning the Americas, Europe, the Middle East, and the Asia-Pacific region. Specific countries and regions include the United States, Australia, Dubai, Germany, Hong Kong, Japan, Singapore, Spain, and the United Kingdom. Recent expansions include strengthening its European capabilities through the acquisition of Audere Partners in France and the real estate capital advisory business of Mellum Capital, adding colleagues in Munich and London.

Houlihan Lokey maintains a strong brand reputation within the investment banking industry and has been consistently ranked as a leading M&A advisor and global restructuring advisor. In the past year, the company has actively pursued strategic growth initiatives that positively contribute to its reputation, including significant European expansions and senior hires. The firm also published its inaugural Sustainability Report in 2021, highlighting its commitment to ESG initiatives. No significant negative events impacting Houlihan Lokey's brand reputation in the past year were found in the search results.

Houlihan Lokey's ownership is predominantly institutional, with approximately 76.94% to 84.05% of the company's stock held by institutional investors. Major institutional shareholders include BlackRock, Inc., Vanguard Group Inc, Kayne Anderson Rudnick Investment Management LLC, Earnest Partners LLC, and State Street Corp. Insiders (executives and directors) hold a smaller percentage, ranging from 0.13% to 0.15%. Notable individual insider shareholders include Irwin Gold (Co-Chairman), Scott Adelson (CEO), Scott Beiser (Co-Chairman), and Paul Siegert (Co-Chairman).