Houlihan Lokey Reports Strong Q3 Earnings, Announces Strategic Acquisition and Share Repurchase Activity
Summary
Houlihan Lokey reported robust third-quarter fiscal 2026 results with double-digit revenue and EPS growth, alongside a new strategic acquisition and continued share repurchases.
Key Events
-
Strong Q3 Fiscal 2026 Financial Performance
For the three months ended December 31, 2025, revenues increased by 13% to $717.1 million, net income rose by 22% to $116.5 million, and diluted EPS grew by 22.3% to $1.70. All three business segments (Corporate Finance, Financial Restructuring, and Financial and Valuation Advisory) reported revenue growth.
-
Strategic Acquisition of Audere Partners
Subsequent to the quarter-end, on February 2, 2026, the company closed the transaction to obtain a controlling interest in Audere Partners, a prominent French corporate finance firm, indicating strategic international expansion.
-
Significant Share Repurchase Activity
During the third quarter, Houlihan Lokey repurchased 480,899 shares of Class A common stock for an aggregate purchase price of $87.883 million. The company has $280.116 million remaining under its existing share repurchase program.
-
Quarterly Cash Dividend Declared
The board of directors declared a quarterly cash dividend of $0.60 per share of Class A and Class B common stock, payable on March 15, 2026.
Analysis
Houlihan Lokey's 10-Q filing confirms the strong third-quarter fiscal 2026 financial results previously announced in an 8-K on January 29, 2026. The detailed report highlights robust performance across all business segments, with significant revenue and EPS growth. Beyond the earnings, the filing reveals a new strategic acquisition of Audere Partners, a prominent French corporate finance firm, which signals continued international expansion and growth initiatives. The company also demonstrated a commitment to shareholder returns through substantial share repurchases and a declared quarterly dividend. These factors, particularly the new acquisition and ongoing capital allocation, provide a positive outlook despite the pre-release of core earnings figures.
At the time of this filing, HLI was trading at $164.45 on NYSE in the Finance sector, with a market capitalization of approximately $11.5B. The 52-week trading range was $137.99 to $211.78. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.