Houlihan Lokey reported second‑quarter fiscal 2026 revenue of $659 million, up 15% from $575 million a year earlier, and net income of $112 million. Diluted earnings per share were $1.63, while adjusted diluted EPS rose to $1.84, reflecting disciplined cost management. Operating income reached $151 million and the effective tax rate fell to 30.2% from 31.3% a year earlier.
Corporate Finance revenue climbed 21% to $439 million, Financial Restructuring grew 2% to $134 million, and Financial and Valuation Advisory increased 10% to $87 million. Non‑compensation expenses were 12.9% of revenue, down from 14.5% a year earlier, and the adjusted compensation expense ratio remained at 61.5% for both periods. The GAAP compensation ratio was 64.2% versus 62.7% in the prior year, while the adjusted ratio stayed at 61.5%.
The company announced a dividend of $0.60 per share for the third quarter of fiscal 2026, a 5.3% increase from the prior dividend of $0.57. Cash and cash equivalents stood at $1.11 billion, providing a solid liquidity buffer for ongoing operations and potential future investments.
Management expressed optimism about the second half of the fiscal year, citing improving M&A market conditions and a robust transaction pipeline. The strong performance in Corporate Finance and Financial and Valuation Advisory was driven by a rebound in deal activity, while the modest growth in Financial Restructuring reflected easing interest rates. Houlihan Lokey beat analyst expectations for revenue ($659 million versus $649.16 million forecast) and adjusted EPS ($1.84 versus $1.70 forecast). The firm continues to focus on its diversified business model, technology platform, and strategic acquisitions, and it reported strong performance in EMEA and Asia Pacific markets.
The adjusted compensation expense ratio of 61.5% aligns with the company’s long‑term target, indicating disciplined cost management relative to revenue generation. The GAAP compensation ratio of 64.2% versus 62.7% in the prior year provides additional context for the company’s expense structure.
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