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Financial advisory firm Houlihan Lokey (NYSE:HLI) recently presented its investor presentation for July 2025, showcasing the company’s market-leading position across multiple segments and its record financial performance. The presentation follows the company’s strong Q4 FY2025 earnings report, where it beat analyst expectations with adjusted EPS of $1.96 compared to the forecasted $1.64.
Executive Summary
Houlihan Lokey has established itself as a premier global financial advisory firm with 33 locations worldwide, 2,677 employees, and 347 managing directors. The company reported $2.5 billion in revenue for the last twelve months ended June 30, 2025, representing significant growth from previous years.
The firm’s business is diversified across three main segments: Corporate Finance (64% of revenue), Financial Restructuring (23%), and Financial and Valuation Advisory (13%). This diversification has enabled Houlihan Lokey to maintain strong performance through various market cycles.
As shown in the following key facts and figures from the company’s presentation:
Detailed Financial Analysis
Houlihan Lokey has demonstrated consistent financial growth over the past six years, with revenues increasing from $1.159 billion in 2020 to $2.389 billion in 2025. The company’s adjusted pre-tax income has also shown strong growth, rising from $282 million in 2020 to $619 million in 2025, with adjusted pre-tax margins ranging between 23% and 29.3% during this period.
The company’s financial performance is illustrated in the following chart:
The Q4 FY2025 earnings report confirmed this strong performance trend, with the company reporting quarterly revenue of $666 million, a 28% increase year-over-year, and full fiscal year 2025 revenues of $2.4 billion, marking the highest in the firm’s history.
Breaking down the business segment financials, Corporate Finance has shown the strongest growth with a 5-year CAGR of 19%, followed by Financial and Valuation Advisory at 15% and Financial Restructuring at 9%. Each segment has maintained strong revenue per managing director metrics, with Financial Restructuring leading at $9.7 million per MD.
The following chart shows the breakdown of Houlihan Lokey’s business segment performance:
Competitive Industry Position
Houlihan Lokey has established itself as a market leader across all three of its business segments. The company ranks #1 in global M&A deals by number of transactions in 2024 with 415 deals, ahead of Rothschild & Co with 406 deals. It also leads in global distressed debt and bankruptcy restructuring with 88 deals and maintains the top position in global fairness opinions.
The company’s competitive positioning is illustrated in the following chart:
This market leadership extends across multiple industry verticals, with Houlihan Lokey ranking #1 in Business Services, Financial Services, FinTech, Healthcare, Industrials, and Technology sectors by number of transactions.
The following chart demonstrates the company’s industry leadership:
During the recent earnings call, CEO Scott Adelson emphasized the company’s resilience in volatile markets, stating, "There will be winners and losers in this market environment, and our business model is set up to advise both."
Strategic Initiatives
Houlihan Lokey’s growth strategy focuses on three key areas: organic growth through hiring and productivity improvements, strategic acquisitions, and geographic expansion.
The company has consistently grown its managing director headcount with a CAGR of 9% over the last 20 years, increasing from 65 MDs in 2005 to 339 in 2025. At the same time, revenue per MD has remained strong, reaching $7.0 million in FY2025.
The following chart shows the company’s growth in managing director headcount and productivity:
Acquisitions have also played a significant role in Houlihan Lokey’s growth strategy, with 20 acquisitions completed over the last 15 years. These acquisitions have helped the company expand its geographic footprint and service offerings.
The company’s business is well-diversified across geography (Americas 71%, EMEA 23%, Asia 6%), client type (Financial Sponsors 53%, Private Non-Sponsor 28%, Public Companies 19%), and industry sectors. This diversification helps insulate the business from market volatility and provides multiple growth avenues.
The following chart illustrates the company’s diversification:
Forward-Looking Statements
Looking ahead, Houlihan Lokey anticipates continued growth opportunities across all three business segments. For Corporate Finance, growth will be driven by adding industry expertise globally, geographic expansion, building out the Capital Solutions platform, and increasing deal size and fees. Financial Restructuring growth will benefit from the growing availability and use of leverage globally, continued globalization of financial restructuring advice, and increasingly complex balance sheets. The Financial and Valuation Advisory segment is expected to grow through geographic expansion, addition of new high-value services, and deepening client relationships.
According to the company’s recent earnings call, Houlihan Lokey anticipates fiscal 2026 to exhibit similar seasonality to 2025. The company plans to maintain a 61.5% compensation expense ratio and expects non-compensation expenses to grow in the high single digits. Strategic acquisitions and elevated restructuring revenues are also anticipated to drive future growth.
With a stock price of $192.85 as of July 29, 2025, and a 52-week range of $137.99 to $198.78, Houlihan Lokey continues to demonstrate strong market performance. The company’s consistent growth, market leadership, and diversified business model position it well for continued success in the financial advisory industry.
Full presentation:
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