HOULIHAN LOKEY, INC.

Houlihan Lokey, Inc.

Overview

Houlihan Lokey is a global independent investment bank that provides advisory services across three core practices: Corporate Finance, Financial Restructuring, and Financial and Valuation Advisory. The firm serves corporations, financial sponsors, and government agencies worldwide and emphasizes independent, conflict-free advice with senior-level involvement.

Services

• Corporate Finance (CF): M&A and capital solutions (financing advisory).
• Financial Restructuring (FR): out-of-court and formal bankruptcy/insolvency restructurings, liability management.
• Financial and Valuation Advisory (FVA): financial opinions, valuations, diligence, tax and financial analytics.
  Services are also marketed through industry groups and a Financial Sponsors group.

Clients and Revenue Characteristics

• Serves more than 2,000 clients annually.
• A large portion of revenue comes from advisory engagements in CF and FR, where fees are often contingent on transaction milestones; revenue can be volatile and tied to the timing of transactions.

Scale and People

• Global footprint with more than 30 offices worldwide.
• More than 1,900 financial professionals (as of March 31, 2026).
• Approximately 2,800 total employees worldwide (as of March 31, 2026); 2,700 in 2025; 2,600 in 2024.

Segmentation and Leadership

• Corporate Finance: 251 CF Managing Directors (as of March 31, 2026).
• Financial Restructuring: 59 FR Managing Directors (as of March 31, 2026).
• Financial and Valuation Advisory: 44 Managing Directors (as of March 31, 2026).

International Exposure

• International operations accounted for about 32.2% of revenue in fiscal 2026.

Ownership, Voting, and Governance

• HL Voting Trust controls approximately 74% of the total voting power (as of March 31, 2026).
• HL Holders (through the HL Voting Trust) own approximately 22% of the economic interest.
• Approximately 850 employee shareholders collectively owned about 21% of the equity; no single employee owned more than 2%.
• The company is a “controlled company” under NYSE rules and has exercised exemptions from certain independent-director requirements.
• There is a defined Final Conversion Date under which Class B common stock could convert into Class A common stock, which would alter voting power if triggered.
• The HL Voting Trust can influence major corporate actions, including board composition, amendments to governing documents, and significant transactions.

Financial Highlights (selected items)

• Net bad debt expense: $7.7 million (fiscal 2026) and $9.3 million (fiscal 2025).
• Other liabilities: $151.4 million (as of March 31, 2026).
• The firm reports exposure to foreign currency, insurance-related costs, and regulatory/compliance costs.

Regulation and Compliance

• Operates under extensive U.S. and international regulation.
• Maintains an SEC-registered broker-dealer subsidiary and is subject to FINRA oversight, as well as international regulators such as the UK FCA and German BaFin.
• Maintains compliance programs and formal cybersecurity governance and risk management processes.

Strategy and Risks

• Emphasizes a culture of entrepreneurship, broad employee ownership, and senior-level involvement as differentiators.
• Faces risks from market cycles, client financing conditions, competition from bulge-bracket banks and independent advisory firms, litigation, regulatory changes, and cyber threats.
• Notes its August 2015 IPO and governance arrangements tied to the HL Holders and voting structure.