Houlihan Lokey (HLI)
NYSEFinancialsInvestment - Banking & Investment ServicesSnapshot 2026-09-04
$137.11+0.18%
Close 2026-09-04 · 1-day change
NYSEFinancialsInvestment - Banking & Investment ServicesSnapshot 2026-09-04
QuarterlyIQ Insights · HLI
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within financials on a research-validated quality screen. As of 2026-09-04.
The screen ranks HLI against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 3 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 1 of the last 3 quarter-over-quarter moves. Historically, Financials names rated neutral grew net income 55% of the time over the next year (vs 62% for the rest of the cohort, n=10246).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Met or beat guidance 100% of the last 1 guided quarters · 0.0% avg surprise
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Management emphasizes growing revenues in Corporate Finance, Financial Restructuring, and Financial and Valuation Advisory segments.
Stated as a priority in 4 of last 4 quarters. Fiscal year 2026 revenues grew from $2.39B to $2.62B, with third quarter 2025 revenues up 13% year-over-year, but first quarter 2027 revenues declined from $605M to $511M. Management's optimism contrasts with recent revenue declines, indicating mixed delivery on growth.
“We remain optimistic about the prospects across all three of our business lines”
“Despite a challenging external environment, fiscal 2026 was another record year for our firm”
“We continue to benefit from improving investor sentiment and acceleration in the private equity markets”
“We continue to benefit from improving investor sentiment and acceleration in the private equity markets”
Management focuses on controlling compensation and non-compensation expenses to improve operating income margins.
Stated in 4 of last 4 quarters. Compensation expenses decreased from $393M to $328M year-over-year in 2027-Q1, with adjusted compensation ratio steady at 61.5%. Non-compensation expenses showed mixed trends. Management is maintaining cost discipline with some progress in compensation control.
Management commits to returning capital through quarterly dividends and share repurchase programs.
Stated in 4 of last 4 quarters. Dividends increased from $0.60 to $0.70 per share from 2026-Q3 to 2027-Q1. Share repurchases occurred each quarter, including 348 thousand shares in 2027-Q1. Management is delivering consistent capital return to shareholders.
Management aims to improve operating income through revenue growth and cost control.
Stated in 4 of last 4 quarters. Operating income showed mixed results: $161M in 2026-Q3 up from $136M prior year, but declined to $78M in 2027-Q1 from $90M prior year. Management faces ongoing headwinds, indicating limited progress on profitability enhancement recently.
“Operating income was $78 million for the first quarter ended June 30, 2026, compared with $90 million for the same quarter in 2025”
Continue generating robust operating cash flow to support financial stability and capital allocation.
Over the trailing year it converted -1.29x of net income into operating cash flow. Historically, Financials names rated fragile grew net income 52% of the time over the next year (vs 61% for the rest of the cohort, n=6844).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, long-term interest rates, Fed net liquidity (low R² over the window).
11 material management or governance events in the past 24 months, led by capital-allocation actions. Historically, Financials names rated neutral grew net income 56% of the time over the next year (vs 58% for the rest of the cohort, n=3751).
Not investment advice. As of 2026-09-04.
“Compensation expenses were $328 million for the first quarter ended June 30, 2026, compared with $393 million for the first quarter ended June 30, 2025”
“Compensation expenses were $409 million for the fourth quarter ended March 31, 2026, compared with $431 million for the same quarter in 2025”
“Compensation expenses were $459 million for the third quarter ended December 31, 2025, compared with $403 million for the same quarter in 2024”
“Compensation expenses were $408 million for the fourth quarter ended March 31, 2026, compared with $431 million for the same quarter in 2025”
“Announces Dividend of $0.70 per Share for Second Quarter Fiscal 2027 and repurchased 348 thousand shares”
“Declared a regular quarterly cash dividend of $0.70 per share and repurchased 301 thousand shares”
“Announces Dividend of $0.60 per Share for Fourth Quarter Fiscal 2026 and repurchased approximately 418,000 shares”
“Declared a regular quarterly cash dividend of $0.60 per share”
“Operating income was $125 million for the fourth quarter ended March 31, 2026, compared with $141 million for the same quarter in 2025”
“Operating income was $161 million for the third quarter ended December 31, 2025, compared with $136 million for the same quarter in 2024”
“Operating income was $141 million for the fourth quarter ended March 31, 2026, compared with $141 million for the same quarter in 2025”