Houlihan Lokey (HLI) Q2 Earnings call transcript Oct 30, 2025

Houlihan Lokey, a leading global financial services firm, recently held its second quarter fiscal year 2025 earnings call, providing a comprehensive overview of the company's financial performance and strategic direction. The call, led by CEO Scott Joseph Adelson and CFO Lindsey Alley, highlighted the company's robust growth and the challenges it faces in the current macroeconomic environment.

Strong Financial Performance and Growth Strategies

Houlihan Lokey reported a strong second quarter performance, with revenues of $575 million, up 23% from the same period last year, and adjusted earnings per share of $1.46. The company's key business lines, including Corporate Finance, Financial Restructuring, and Financial and Valuation Advisory, all experienced growth, reflecting a balanced and diversified business model. The company's strategic acquisitions, such as Prytania Solutions, a tech-enabled valuation platform, and Waller Helms, a financial services firm, further strengthened its position in the market.

Challenges and Opportunities in the Macroeconomic Environment

Despite the positive financial results, the call acknowledged the challenges posed by the current macroeconomic environment, including high interest rates and geopolitical volatility. The company, however, remains optimistic about the second half of the fiscal year, citing the improving M&A sentiment and sustained strength in restructuring markets. The company's focus on maintaining a highly talented workforce and capitalizing on market recovery is expected to drive future growth.

Strategic Acquisitions and Expansion

The call emphasized the importance of strategic acquisitions in driving growth. The recent acquisition of Prytania Solutions, a tech-enabled valuation platform based in the U.K., is expected to complement Houlihan Lokey's existing portfolio valuation business. Similarly, the acquisition of Waller Helms, a financial services firm, will expand the company's financial services industry group, especially in the insurance and wealth management sectors. These acquisitions underscore the company's commitment to strategic expansion and market diversification.

Investor and Analyst Engagement

The earnings call also featured a question-and-answer session with key shareholders and analysts, providing valuable insights into their concerns and priorities. Questions ranged from the outlook for Corporate Finance, the strategic rationale behind the Prytania Solutions acquisition, and the impact of the election on the company's business. The management team's responses provided a nuanced understanding of the company's financial performance, growth strategies, and market dynamics.

Looking Ahead

Houlihan Lokey's second quarter fiscal year 2025 earnings call underscored the company's strong financial performance and strategic growth trajectory. The company's ability to navigate the challenges posed by the macroeconomic environment, coupled with its strategic acquisitions and focus on a highly talented workforce, positions it well for future success. The company's outlook for the second half of the fiscal year remains positive, reflecting its confidence in the market recovery and the resilience of its business model.