Houlihan Lokey Exceeds Expectations with 24% Revenue Growth in Q3 FY 2025
Houlihan Lokey, a leading global investment bank, has reported impressive financial results for its third quarter fiscal year 2025. The company's revenue surged by 24%, reaching $634 million, while adjusted earnings per share rose by 34% compared to the same period last year.
Speaking on the conference call, Scott Joseph Adelson, Chief Executive Officer of Houlihan Lokey, expressed satisfaction with the quarter's results and the overall performance for the fiscal year. He attributed the company's success to improvements in the M&A and financing markets, which have benefited its Corporate Finance and Financial Valuation Advisory (FVA) business lines.
The Corporate Finance segment produced $422 million of revenue for the quarter, a 36% increase over last year's third quarter. This growth is widespread across geographies and industries, driven by both strategic and private equity clients. Key metrics such as close rates, time-to-close transactions, new business generation, and transaction volume have also improved compared to the same period last year.
In contrast, the Financial Restructuring segment saw a 2% increase in revenue for the third quarter, generating $131 million. Despite this relatively modest growth, the company remains optimistic about the balance of this fiscal year due to the persistently higher interest rates and record leverage.
The FVA business line produced $82 million of revenue for the quarter, a 14% increase versus the same period last year. This growth is attributed to the improving M&A climate, which has driven strength across both its cyclical and non-cyclical businesses.
Houlihan Lokey also highlighted its strategic acquisitions, including the acquisition of Waller Helms in early December, which contributed positively to its results. The company added 17 new managing directors during the quarter, with 14 joining through acquisitions and three through individual hires.
Looking ahead, Houlihan Lokey's outlook for fiscal 2026 is positive, driven by improving M&A market sentiment and an increase in private equity activity. The company's continued strength in its restructuring business also bodes well for future growth.
