Houlihan Lokey, Inc. (HLI) AI Stock Analysis

Established in 1972 and headquartered in Los Angeles, California, Houlihan Lokey, Inc. operates across three core segments: Corporate Finance, Financial Restructuring, and Financial and Valuation Advisory. The Corporate Finance segment offers advisory services covering mergers and acquisitions, capital raising in equity and debt markets, initial public offerings, and private placements for public and private institutions. The Financial Restructuring segment assists clients through financial distress, advising debtors, creditors, and stakeholders on recapitalizations, debt restructurings, and bankruptcy proceedings. The Financial and Valuation Advisory segment provides asset valuation, fairness opinions for transactions, solvency opinions, and dispute resolution services.

Houlihan Lokey expanded revenue at a 5-year CAGR of 11.4% from FY2021 through FY2026, reaching $2.62B in FY2026 alongside net income of $425.7M and EPS of $7.55. Operating margin reached 23.6% in FY2026, up from 21.0% in FY2025 and 19.0% in FY2024. Over the trailing twelve months, revenue was $2.52B with an operating margin of 18.4% and net profit margin of 16.1%. For the latest quarter ended June 30, 2026, top-line performance decelerated, showing quarterly revenue growth down 15.5% and quarterly earnings growth down 19.0% compared to the prior year period.

As of June 30, 2026, Houlihan Lokey held $797.0M in cash and short-term investments against $493.0M in total debt, yielding a net cash position of $304.0M. The company maintains a current ratio of 1.44 and a conservative debt-to-equity ratio of 0.22, with shareholders' equity of $2.25B and total assets of $3.72B. During FY2026, the business produced $704.1M in operating cash flow and $681.8M in free cash flow while spending $22.3M on capital expenditures. Capital returns in FY2026 included $175.4M in share buybacks and $174.0M in dividends paid.

At $129.55, Houlihan Lokey carries a market capitalization of $9.05B and an enterprise value of $8.82B. The stock trades at a trailing P/E of 21.7x and a forward P/E of 15.0x, representing a premium over the median of its US-listed Financial Services peers at 12.1x trailing and 10.8x forward. Its EV/EBITDA of 14.3x also sits above the peer median of 11.7x. Over the past year, HLI dropped 30.1%, underperforming the S&P 500 (SPY) gain of 16.8%, and currently sits 11.2% below its 200-day moving average.

Houlihan Lokey offers a forward annual dividend of $2.80 per share, yielding 2.16% with a payout ratio of 38.5%. The company distributes dividends quarterly and has paid dividends for 12 consecutive years, delivering a 5-year annualized dividend growth rate of 13.1%. Its most recent ex-dividend date was September 1, 2026.

Wall Street analysts hold 3 Strong Buy, 3 Buy, and 5 Hold ratings on HLI, with 0 Sell recommendations. The mean price target of $155.44 represents upside of 20.0% against the closing price of $129.55. For the current fiscal year ending March 31, 2027, consensus estimates project revenue of $2.61B and EPS of $7.02, reflecting an EPS drop of 7.2%. The firm has beaten EPS estimates in 2 of the past 4 quarters, with next earnings scheduled for October 28, 2026.

This page is an AI-written research summary of Houlihan Lokey, Inc. (HLI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: HLI income statement, HLI balance sheet, HLI key metrics, HLI analyst forecast, HLI chart. See the HLI stock overview for the latest quote and news.