The chart below shows how HLI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HLI sees a -0.82% change in stock price 10 days leading up to the earnings, and a +3.05% change 10 days following the report. On the earnings day itself, the stock moves by +0.63%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Q3 Revenue and Earnings Growth: Revenues for Q3 fiscal 2025 reached $634 million, a 24% increase year-over-year, while adjusted earnings per share rose by 34% to $1.64.
Corporate Finance Revenue Surge: Corporate Finance segment generated $422 million in revenue, marking a 36% increase compared to Q3 last year, with 170 transactions closed, up from 117 in the same period last year.
Advisory Revenue Increase: Financial and Valuation Advisory revenues increased by 14% to $82 million, supported by 1,005 fee events during the quarter, up from 926 year-over-year.
Acquisition and Talent Enhancement: The company successfully closed the acquisition of Waller Helms, contributing positively to results, and added 17 new managing directors, enhancing talent and capabilities.
Cost Management Improvement: Adjusted non-compensation expense ratio improved to 13.1%, down from 16.1% in the same period last year, indicating effective cost management.
Negative
Rising Compensation Expenses: Adjusted compensation expenses increased to $390,000,000 for the quarter, up from $314,000,000 in the same quarter last year, indicating rising costs that could pressure margins.
Increased Tax Rate Impact: The adjusted effective tax rate rose to 33.3% compared to 30.3% for the same quarter last year, reflecting increased tax liabilities that could impact net income.
Transaction Fee Decline: Average transaction fees in Corporate Finance and Financial Restructuring decreased due to transaction mix, suggesting potential challenges in maintaining profitability per deal.
Non-Compensation Expense Increase: Adjusted non-compensation expenses slightly increased to $83,000,000 from $82,000,000 year-over-year, indicating a lack of significant cost control improvements despite rising revenues.
Cautious Capital Allocation: The company did not repurchase any shares during the quarter, which may signal a cautious approach to capital allocation amidst uncertain market conditions.
Earnings call transcript: Houlihan Lokey beats Q3 2025 forecasts
HLI.N
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