Houlihan Lokey (NYSE:HLI) Q4 CY2025: Revenue Surpasses Expectations

Houlihan Lokey Surpasses Q4 CY2025 Revenue Projections

Houlihan Lokey (NYSE:HLI), a leading investment banking firm, reported fourth-quarter revenue of $717.1 million for CY2025, marking a 13% increase compared to the same period last year. This result exceeded Wall Street’s expectations. The company’s adjusted earnings per share reached $1.94, outperforming analyst forecasts by 3.6%.

Q4 CY2025 Performance Highlights

• Revenue: $717.1 million, surpassing analyst projections of $698.3 million (13% year-over-year growth, 2.7% above estimates)
• Pre-tax Profit: $169.6 million, representing a 23.7% margin
• Adjusted EPS: $1.94, beating the consensus estimate of $1.87 by 3.6%
• Market Cap: $12.59 billion

“We are proud of our quarterly and year-to-date achievements. The company continues to benefit from stronger investor confidence and renewed momentum in private equity. Most importantly, we are expanding our talented team globally, highlighted by two recent acquisitions in Europe,” commented Scott Adelson, CEO of Houlihan Lokey.

About Houlihan Lokey

Established in 1972, Houlihan Lokey (NYSE:HLI) is recognized for its expertise in handling complex financial matters. The firm operates worldwide, focusing on mergers and acquisitions, capital markets, financial restructuring, and valuation advisory services.

Examining Revenue Growth

Evaluating a company’s long-term sales trajectory offers valuable insight into its overall strength. While any business can have a few strong quarters, sustained growth is a hallmark of quality. Over the past five years, Houlihan Lokey has delivered a compounded annual revenue growth rate of 14.8%, outpacing the industry average and demonstrating strong customer demand for its services.

Houlihan Lokey Quarterly Revenue

While long-term growth is crucial, recent shifts in interest rates and market performance can also impact financial firms. In the last two years, Houlihan Lokey’s annualized revenue growth accelerated to 20%, exceeding its five-year average and signaling robust, increasing demand.

Houlihan Lokey Year-On-Year Revenue Growth

Note: Certain quarters were excluded from analysis due to extraordinary investment gains or losses that do not reflect the company’s ongoing business fundamentals.

For the most recent quarter, Houlihan Lokey achieved a 13% year-over-year revenue increase, with its $717.1 million in sales topping analyst expectations by 2.7%.

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Summary of Q4 Results

Houlihan Lokey’s latest earnings exceeded both revenue and EPS expectations, reflecting a strong quarter. Despite these positive results, the company’s share price remained steady at $180.54 following the announcement.