EarningsQ2 2027 Earnings Report
MX:HLI Q2 2027 EPS Results
Actual EPS$34.76
Consensus EPS$30.55
Beat/MissBeat by +$4.21
One Year Ago EPS$34.57
MX:HLI Q2 2027 Revenue Results
Actual Revenue$13.00B
Expected Revenue$11.76B
Beat/MissBeat by +$1.24B
YoY Revenue Growth+4.94%
Earnings Announcement Details
QuarterQ2 2027
Date10/28/2026
TimeAfter Close
Conference CallWednesday, October 28, 2026
MX:HLI Upcoming Earnings
Houlihan Lokey's next earnings date is estimated for February 2, 2027, based on past reporting schedules.
Q2 2027 Earnings Call Audio
MX:HLI Q2 2027 Earnings Call
0:00 / 0:00
Q2 2027 Earnings Slide Deck
Q2 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was broadly constructive. Revenue grew 5%, Corporate Finance and FVA produced year-over-year growth, deal activity is improving, and management raised confidence in the second-half and restructuring outlook. The company also reported strong liquidity, acquisition activity, and share repurchases. Offsetting factors included flat adjusted EPS, lower restructuring transaction volume and revenue, higher non-compensation expenses, weaker software activity, and continued macroeconomic and geopolitical uncertainty. Highlights significantly outweighed the lowlights.Company Guidance
Quarterly Revenue Growth
Second-quarter revenues were $692 million, up 5% from the same period last year. Adjusted earnings per share were $1.85, flat year over year.
Improving Market Activity
Management described the market environment as normalizing, with a return to growth in both Europe and the U.S. and across industry groups other than technology and health care. Key metrics indicated solid performance for the remainder of the year across all three businesses.
Corporate Finance Revenue Growth and Outlook
Corporate Finance generated $481 million of revenue, up 10% year over year, driven by higher average transaction fees. Management said backlog and activity levels suggest growth for the balance of the year and described $481 million as a good solid base to grow off of.
Higher Corporate Finance Fees Despite Fewer Closings
Corporate Finance closed 142 transactions versus 171 in the same period last year, but average transaction fees increased because there was a disproportionate number of higher-fee transactions relative to lower-fee transactions.
Transactions Continuing Through the Pipeline
Despite the higher interest-rate environment, transactions continued to move through the pipeline to closing. Management said capital remains very plentiful and that stronger economic fundamentals are outweighing macro uncertainty.
Expected Stronger Second-Half Seasonality
Management expects an unseasonably higher seasonality in the second half of fiscal 2027, with a good solid second half that is better than normal, subject to cooperation in the market.
Restructuring Pipeline Improvement
Management said its confidence in Financial Restructuring is at or better than it was last quarter. Based on current backlog and new deal activity, the company expects stronger revenue in the second half of the year, elevated restructuring revenues through fiscal 2028, and record backlog and strong activity levels entering calendar 2027.
Restructuring Opportunity in Software and Europe
Software was identified as a key driver of restructuring activity, although not the only sector involved. Management said it is extraordinarily well positioned in European restructuring and is bullish on both the U.S. and European restructuring markets over the next couple of years as debt maturity walls approach.
Future Software Restructuring Revenue
The company expects software restructuring activity currently being developed to begin translating into closed-transaction revenue in calendar 2027 and calendar 2028. Management compared the potential opportunity favorably with the oil and gas dislocation that affected the restructuring business in fiscal 2017 and said software is much larger than that.
Financial and Valuation Advisory Growth
Financial and Valuation Advisory generated $93 million of revenue, up 7% year over year. Growth was primarily driven by the portfolio valuation business, which management described as noncyclical and having grown very strongly for a long time.
Stable FVA Fee Events
FVA recorded 1,071 fee events during the quarter versus 1,075 in the same period last year, while revenue increased 7%.
Expansion of Managing Director Team
The company added 12 new managing directors in the second quarter, including eight who joined through the acquisition of Intrepid Financial Partners, which closed in September.
Strong Acquisition Pipeline
Management said its acquisition pipeline remains strong and that the company is confident its combination of organic growth and strategic acquisitions will continue to deepen, expand, and strengthen its talent base around the world. Acquisitions are pursued through a robust, ongoing process with cultural fit as an important consideration.
Disciplined Middle-Market Strategy
Management reiterated that the company has not moved away from its mid-market focus and continues to target transactions below $2 billion in value, mostly in the few-hundred-million-dollar range. The company is using its data and information about which transactions close to make more calculated decisions, including favoring transactions with a higher probability of closing.
Gradual Increase in Average Transaction Size
Management said average transaction sizes have increased from approximately $100 million many years ago to approximately $200 million to $300 million currently, and are expected to continue increasing over time in baby steps.
Sponsor Activity Rebounding
The sponsor community, which management said represents the largest part of the client base, is showing a growing willingness to pursue transactions, and activity has been ramping.
Compensation Ratio Maintained
The adjusted compensation expense ratio was 61.5% in both the second quarter of fiscal 2027 and the second quarter of fiscal 2026. Management expects to maintain its long-term target of 61.5% for fiscal 2027.
Strong Liquidity and Share Repurchases
The company ended the quarter with approximately $888 million of unrestricted cash and investment securities. It repurchased approximately 397,000 shares for approximately $50 million during the quarter and will continue evaluating balance-sheet flexibility between acquisitions and excess cash for share repurchases.
Tax Rate Guidance
The adjusted effective tax rate was 30% for the quarter, flat versus the same quarter last year. Management expects a fiscal 2027 full-year adjusted effective tax rate between 26% and 28%.
Leadership Addition
The company welcomed Sipi Bhandari as Chief Legal Officer during the quarter, while former General Counsel Christopher Crain will remain as a senior adviser after 22 years on the executive team.
MX:HLI Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed