# Houlihan Lokey (HLI.US)

Canonical: https://gigainvestors.com/s/HLI

Analysis as of: 2026-10-16T07:29:03.621Z. Financial observations: FY2013–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $128.51 per share; close as of 2026-10-15.

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.13×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.21×

- FY2018: 0.22×

- FY2019: 0.20×

- FY2020: 0.20×

- FY2021: 0.27×

- FY2022: 0.27×

- FY2023: 0.19×

- FY2024: 0.19×

- FY2025: 0.21×

- FY2026: 0.24×

### moat: pass

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC, median of available years: >100%

- ROIC, second-lowest year: 27.1%

- Typical minus recent gross margin: -1.3 pp

- Typical gross margin (annual median): 37.2%

- Recent gross margin (lower of latest and 3-year median): 38.5%

- Years with nonpositive capital: 2

- Capital spending / revenue: 1.3%

- ROIC including acquisitions, ten-year median: 25.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 15.4%

- FY2018: >100%

- FY2019: >100%

- FY2020: >100%

- FY2021: >100%

- FY2022: 27.1%

- FY2023: >100%

- FY2024: 65.8%

- FY2025: >100%

- FY2026: >100%

### economics: pass

- Owner earnings / net income, 5-yr: 1.03×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.8B

- Net income, five-year total: $1.8B

- Return on incremental invested capital: 224.0%

- Working capital / revenue, annual change: -1.1 pp

- Working capital / revenue, change between three-year averages: -7.7 pp

- Working capital / revenue, final three-year average: 13.9%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.09×

- FY2023: 1.03×

- FY2024: 0.93×

- FY2025: 1.00×

- FY2026: 1.05×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 122.0% vs 198.4%

- Per-share earnings: 1.63 to 5.82 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.8%

- Ordinary dilution, 5-year annual growth: -0.1%

- Market cap gain: $7.5B

- Cumulative retained earnings: $1.6B

- Diluted shares, 10-year annual growth: 0.8%

- Diluted shares, 5-year annual growth: -0.1%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 17.3%

- Per-share value change: $4.19

- Per-share value, starting three-year median: $1.63

- Per-share value, ending three-year median: $5.82

- Buybacks concentrated in cheaper years (correlation): 0.73

- Average buyback yield: 1.6%

- Buyback history: 9 years

- Debt-funded buybacks: Yes

- Acquisition spending: $911M

- Cumulative net income, 10 years: $2.7B

- ROIC, first three-year median: >100%

- ROIC, last three-year median: >100%

Chart: Earnings per share; fiscal year observations.

- FY2017: $1.63

- FY2018: $2.60

- FY2019: $2.42

- FY2020: $2.80

- FY2021: $4.55

- FY2022: $6.41

- FY2023: $3.76

- FY2024: $4.11

- FY2025: $5.82

- FY2026: $6.22

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -6.5%

- Receivables to sales index (DSRI): 1.10×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 28.6%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.65×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.68×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -8.7%

- FY2018: -5.5%

- FY2019: -4.6%

- FY2020: -6.2%

- FY2021: -11.0%

- FY2022: -10.4%

- FY2023: 4.0%

- FY2024: -1.5%

- FY2025: -11.8%

- FY2026: -6.5%

## Holders

- [John Rogers](https://gigainvestors.com/AI): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 37% since Sep 2025 · "Houlihan Lokey (NYSE:HLI) Reports Sales Below Analyst Estimates In Q2 CY2026 Earnings, Stock Drops" (finance.yahoo.com, Jul 2026) · sales +9.5%

Story as of 2026-10-16T09:58:53.146Z; price observation 2026-10-15.

- 2025-05-23: Houlihan Lokey Shares Up Since Q4 Earnings Beat Estimates ([finance.yahoo.com](https://finance.yahoo.com/news/houlihan-lokey-shares-since-q4-145100157.html))

- 2026-07-29: Houlihan Lokey (NYSE:HLI) Reports Sales Below Analyst Estimates In Q2 CY2026 Earnings, Stock Drops ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/houlihan-lokey-nyse-hli-reports-213919576.html))

### Sales · FY2025–2026

sales +9.5%; source https://www.sec.gov/Archives/edgar/data/1302215/000130221526000053/hli-20260331.htm; observed 2026-05-22.

- FY2017: $872M 

- FY2018: $963M 

- FY2019: $1.1B 

- FY2020: $1.2B 

- FY2021: $1.5B 

- FY2022: $2.3B 

- FY2023: $1.8B 

- FY2024: $1.9B 

- FY2025: $2.4B 

- FY2026: $2.6B 

### Gross margin · FY2026

gross margin 98.4%; source https://www.sec.gov/Archives/edgar/data/1302215/000130221526000053/hli-20260331.htm; observed 2026-05-22.

- FY2017: 33.2% 

- FY2018: 33.9% 

- FY2019: 36.2% 

- FY2020: 36.4% 

- FY2021: 36.3% 

- FY2022: 37.9% 

- FY2023: 38.5% 

- FY2024: 38.5% 

- FY2025: 38.5% 

- FY2026: 98.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in capital markets; annual sales are USD 2.6 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1302215/000130221526000053/hli-20260331.htm#000130221526000053 (filed 2026-05-22); FY2026: revenue 2617516000; grossProfit 2574882000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); HLI.US: Houlihan Lokey, Inc., an investment banking company, provides merger and acquisition (M&A), capital market, financial restructurings and liability management, and financial and valuation advisory services worldwide. The company operates in three segments: Corporate Finance (CF), Financial Restructuring (FR), and Financial and Valuation Advisory (FVA). The CF segment offers general financial advisory services; and advises public and private institutions, including financial sponsors on buy-side and sell-side M&A transactions, debt and equity financings in both the private and public markets, and other corporate finance transactions. The FR segment advises debtors, creditors, and other parties-in-interest related to recapitalization/deleveraging transactions. This segment also provides a range of advisory services, such as structuring, negotiation, and confirmation of plans of reorganization; structuring and analysis of exchange offers; liability management transactions; corporate viability assessment; dispute resolution and expert testimony; and procuring debtor-in-possession financing. The FVA segment provides valuation services to companies; debt and equity interests comprising illiquid investments; and other assets and liabilities. This segment also offers fairness opinions in connection with mergers and acquisitions and other transactions; solvency opinions in connection with corporate spin-offs and dividend recapitalizations; other types of financial opinions; and diligence, tax, transaction accounting, and other financial advisory services, as well as dispute resolution services. It serves corporations, financial sponsors, and government agencies. Houlihan Lokey, Inc. was incorporated in 1972 and is headquartered in Los Angeles, California.

### Why customers stay

Margins ranged from 38.5% to 98.4% during 2024–26; it earns over 100% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-22); FY2024: grossProfit / revenue = 38.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-22); FY2025: grossProfit / revenue = 38.5%.

- Source: https://www.sec.gov/Archives/edgar/data/1302215/000130221526000053/hli-20260331.htm (filed 2026-05-22); FY2026: grossProfit / revenue = 98.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-22); 10-year return on capital observations [[2017,0.15404145300369554],[2018,1.2197153412480326],[2019,3.289615227195998],[2020,4.574603258592538],[2021,7.612495176324652],[2022,0.2710003021460434],[2023,1.4922500799220382],[2024,0.6578918732133835],[2025,1.9843477973278703],[2026,5.9138970191163525]]; median 1.738298938624954. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 175.4 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-22); FY2017: growth capex 5418733.86713255; upkeep 9004266.13286745; owner earnings 108191733.86713254. Growth capex / owner earnings = 0.050084545957893196.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-22); FY2018: growth capex 0; upkeep 7719000; owner earnings 172469000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-22); FY2019: growth capex 0; upkeep 6726000; owner earnings 166855000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-22); FY2020: growth capex 3431000; upkeep 17291000; owner earnings 183793000. Growth capex / owner earnings = 0.018667740338315388.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-22); FY2021: growth capex 0; upkeep 14148000; owner earnings 313851000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-22); FY2022: growth capex 0; upkeep 8680000; owner earnings 477608000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-22); FY2023: growth capex 0; upkeep 50731000; owner earnings 261713000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-22); FY2024: growth capex 18187842.11824421; upkeep 48542157.88175579; owner earnings 260294842.1182442. Growth capex / owner earnings = 0.06987400122965945.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-22); FY2025: growth capex 0; upkeep 39699000; owner earnings 401282000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1302215/000130221526000053/hli-20260331.htm (filed 2026-05-22); FY2026: growth capex 0; upkeep 22312000; owner earnings 446019000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-22); Dividend observations: [[2017,55293000],[2018,52081000],[2019,66928000],[2020,80655000],[2021,92006000],[2022,114806000],[2023,140384000],[2024,148454000],[2025,165217000],[2026,174037000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1302215/000130221526000053/hli-20260331.htm (filed 2026-05-22); FY2026: cash repurchases 175428000 USD.

### Are managers owners

Insiders own 0.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); HLI.US SharesStats.PercentInsiders = 0.203 percentage points; cache date 2026-10-16.

### What the price says

The price is 3.4 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-22); Closing price 128.51 USD; reporting-to-trading FX 1; FY2026 annual sales per share 38.24826445268508; price multiple 3.3598910130673505. FY2026 cash earnings/share 6.517420586129042. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $24.37 per share

- 2016-11: $28.49 per share

- 2016-12: $31.12 per share

- 2017-01: $31.10 per share

- 2017-02: $31.49 per share

- 2017-03: $34.45 per share

- 2017-04: $33.54 per share

- 2017-05: $33.57 per share

- 2017-06: $34.90 per share

- 2017-07: $37.18 per share

- 2017-08: $36.05 per share

- 2017-09: $39.13 per share

- 2017-10: $41.63 per share

- 2017-11: $44.64 per share

- 2017-12: $45.43 per share

- 2018-01: $47.70 per share

- 2018-02: $46.42 per share

- 2018-03: $44.60 per share

- 2018-04: $44.50 per share

- 2018-05: $48.89 per share

- 2018-06: $51.22 per share

- 2018-07: $49.16 per share

- 2018-08: $47.03 per share

- 2018-09: $44.93 per share

- 2018-10: $41.18 per share

- 2018-11: $42.30 per share

- 2018-12: $36.80 per share

- 2019-01: $44.24 per share

- 2019-02: $45.98 per share

- 2019-03: $45.85 per share

- 2019-04: $49.32 per share

- 2019-05: $45.21 per share

- 2019-06: $44.53 per share

- 2019-07: $46.00 per share

- 2019-08: $44.18 per share

- 2019-09: $45.10 per share

- 2019-10: $47.26 per share

- 2019-11: $47.67 per share

- 2019-12: $48.87 per share

- 2020-01: $51.85 per share

- 2020-02: $51.22 per share

- 2020-03: $52.12 per share

- 2020-04: $59.38 per share

- 2020-05: $60.48 per share

- 2020-06: $55.64 per share

- 2020-07: $54.80 per share

- 2020-08: $58.60 per share

- 2020-09: $59.05 per share

- 2020-10: $62.70 per share

- 2020-11: $64.78 per share

- 2020-12: $67.23 per share

- 2021-01: $64.85 per share

- 2021-02: $63.56 per share

- 2021-03: $66.51 per share

- 2021-04: $66.27 per share

- 2021-05: $74.89 per share

- 2021-06: $81.79 per share

- 2021-07: $89.10 per share

- 2021-08: $90.20 per share

- 2021-09: $92.10 per share

- 2021-10: $112.08 per share

- 2021-11: $108.54 per share

- 2021-12: $103.52 per share

- 2022-01: $106.28 per share

- 2022-02: $102.86 per share

- 2022-03: $87.80 per share

- 2022-04: $83.29 per share

- 2022-05: $85.94 per share

- 2022-06: $78.93 per share

- 2022-07: $84.56 per share

- 2022-08: $78.50 per share

- 2022-09: $75.38 per share

- 2022-10: $89.32 per share

- 2022-11: $98.35 per share

- 2022-12: $87.16 per share

- 2023-01: $99.07 per share

- 2023-02: $95.70 per share

- 2023-03: $87.49 per share

- 2023-04: $91.38 per share

- 2023-05: $87.31 per share

- 2023-06: $98.31 per share

- 2023-07: $99.85 per share

- 2023-08: $105.34 per share

- 2023-09: $107.12 per share

- 2023-10: $100.52 per share

- 2023-11: $107.72 per share

- 2023-12: $119.91 per share

- 2024-01: $119.78 per share

- 2024-02: $128.66 per share

- 2024-03: $128.19 per share

- 2024-04: $127.49 per share

- 2024-05: $135.35 per share

- 2024-06: $134.86 per share

- 2024-07: $150.25 per share

- 2024-08: $156.62 per share

- 2024-09: $158.02 per share

- 2024-10: $172.77 per share

- 2024-11: $189.09 per share

- 2024-12: $173.66 per share

- 2025-01: $181.72 per share

- 2025-02: $173.35 per share

- 2025-03: $161.50 per share

- 2025-04: $162.08 per share

- 2025-05: $174.68 per share

- 2025-06: $179.95 per share

- 2025-07: $190.66 per share

- 2025-08: $199.25 per share

- 2025-09: $205.32 per share

- 2025-10: $179.08 per share

- 2025-11: $175.40 per share

- 2025-12: $174.19 per share

- 2026-01: $168.32 per share

- 2026-02: $163.77 per share

- 2026-03: $143.62 per share

- 2026-04: $154.75 per share

- 2026-05: $141.66 per share

- 2026-06: $134.13 per share

- 2026-07: $125.49 per share

- 2026-08: $133.29 per share

- 2026-09: $126.34 per share

- 2026-10: $128.51 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1302215/000130221526000053/hli-20260331.htm); period 2026-03-31, filed 2026-05-22.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.