Houlihan Lokey, Inc. Class A (HLI)

Over the past six months, several events have impacted Houlihan Lokey's stock price. HLI reported its Q2 fiscal year 2026 earnings, after which its shares declined by 10.1%. Following the announcement of its Q3 fiscal year 2026 results, HLI shares experienced a 6.5% decline. Director Robert A. Schriesheim sold 5,000 shares of HLI stock on February 6, 2026. General Counsel Christopher M. Crain sold 500 shares on April 1, 2026. Several major firms lowered their price targets for HLI in early April 2026, but most maintained "buy" or "outperform" ratings. Houlihan Lokey reported record annual revenue of $2.62 billion for fiscal year 2026, a 10% increase year-over-year, and adjusted EPS of $7.56, up 20%; the stock rose 1.15% in aftermarket trading, and the board announced a 17% increase in the quarterly dividend to $0.70 per share.

The demand for Houlihan Lokey's services can be influenced by economic conditions and market sentiment, suggesting a degree of cyclicality. While the Corporate Finance segment experienced a slowdown in a recent quarter, momentum has reportedly returned to more normal levels. The Financial and Valuation Advisory segment also saw some disruption from macro events in the fourth quarter of fiscal year 2026, but its momentum has since normalized. The Financial Restructuring business can be counter-cyclical, potentially providing a hedge during economic downturns. Overall, while some segments may experience seasonal or macro-driven fluctuations, the firm's diversified business model aims to mitigate these impacts.

Houlihan Lokey, Inc. is a global independent investment bank and financial services company headquartered in Los Angeles, California, founded in 1972. The firm operates within the Financial Services sector, specifically in the Investment Banking & Brokerage Services and Capital Markets industries. It advises a diverse client base, including large public and closely held companies, institutions, financial sponsors, and governments worldwide. Its primary service lines are structured across three main segments: Corporate Finance (CF) provides advisory services for M&A, capital markets offerings, and other corporate finance transactions. Financial Restructuring (FR) offers advisory services to debtors, creditors, and other parties in recapitalization, deleveraging transactions, corporate viability assessments, and bankruptcy proceedings. Financial and Valuation Advisory (FVA) delivers financial advisory and valuation services for companies, debt and equity interests, other assets and liabilities, fairness opinions, and solvency opinions.

Houlihan Lokey maintains a significant global presence with over 2,700 employees across 33 locations worldwide. Its offices span North America, Europe, Asia, Australia, and the Middle East, including key financial centers such as Dubai, Germany, Hong Kong, Japan, Singapore, Spain, and the United Kingdom. This extensive network enables the firm to handle cross-border transactions and provide localized market insights.

Houlihan Lokey maintains a strong brand reputation as a leading global independent investment bank. As of 2024, it was recognized as the top investment bank for global M&A transactions, the top M&A advisor in the U.S. for the past 10 years, the top global restructuring advisor for the past 11 years, and the top global M&A fairness opinion advisor over the past 25 years. In fiscal year 2026, the firm continued to demonstrate market leadership, ranking first in global M&A advisory by deal count and first in global distressed debt and bankruptcy restructuring deals. It has also been consistently recognized as the Best Valuations Firm for Hard to Value Assets globally for seven consecutive years. Forbes has listed Houlihan Lokey among the World's Best Management Consulting Firms (2025), Most Trusted Companies in America (2025), and America's Best Companies (2025).

Houlihan Lokey's ownership structure is predominantly institutional, with approximately 78% to 82.31% of the company's stock held by institutional investors. Major institutional owners include Vanguard Group Inc, BlackRock, Inc., Kayne Anderson Rudnick Investment Management Llc, Earnest Partners Llc, Royal Bank Of Canada, State Street Corp, Geode Capital Management, Llc, Wellington Management Group Llp, Burgundy Asset Management Ltd., and Bank Of Montreal /can/. Individual investors hold around 6.17% of the shares, while insiders own approximately 0.12% to 0.14%.