Contradictions in Focus: Analyzing Houlihan Lokey's Q1 2026 Earnings Call Insights on Market Trends and Corporate Finance Growth

Market Conditions and Activity Levels, Corporate Finance Activity and Trends, Sponsor Activity and Market Conditions, Market and Transaction Activity, Corporate Finance Growth are the key contradictions discussed in Houlihan Lokey's latest 2026Q1 earnings call.



Revenue Growth Across Business Lines:
- Houlihan Lokey reported $605 million in revenues for Q1 FY2026, up 18% year-on-year.
- Growth was driven by solid performance in all three business lines: Corporate Finance, Financial Restructuring, and Financial and Valuation Advisory.

Corporate Finance Performance:
- Corporate Finance produced $399 million in revenue, up 21% year-on-year.
- The increase was due to steady improvements in transaction size and average fee per transaction, despite muted activity from the financial sponsor community.

Financial Restructuring Activity:
- Financial Restructuring revenue reached $128 million, a 9% increase from the previous year.
- Elevated restructuring activity was supported by persistently higher interest rates, macro uncertainty, and overleveraged companies.

Strong Acquisition Pipeline and Hiring:
- Houlihan Lokey's acquisition pipeline remains robust, and they hired 3 new managing directors in Q1.
- The company continues to see a strong hiring market for senior talent, attracted by the global platform and track record of growth.