Houlihan Lokey's Q4 2025: Key Contradictions in Corporate Finance and Restructuring Outlook

Outlook for Corporate Finance performance, restructuring activity and outlook, mid-cap volumes and market resilience, FDA revenue growth, and restructuring activity and outlook are the key contradictions discussed in Houlihan Lokey's latest 2025Q4 earnings call.



Revenue Growth and Business Expansion:
- Houlihan Lokey reported revenues of $666 million for Q4 2025, up 28% year-on-year, and an annual revenue of $2.4 billion for fiscal year 2025, marking a 25% increase from the previous year.
- This growth was driven by the firm's ability to execute on acquisitions, with three acquisitions in fiscal year 2025 expanding its industry, geographic, and product reach.

Strong Performance in Financial Restructuring:
- Financial Restructuring revenues for the quarter were $165 million, a 6% increase from the same period last year.
- The firm's strong performance in financial restructuring was attributed to elevated levels of restructuring activity and a strategic focus on this business line.

Corporate Finance Growth and Market Resilience:
- Corporate Finance revenues rose to $413 million for the quarter, a 44% increase year-on-year.
- The growth in Corporate Finance was supported by improving metrics in the fourth quarter and the firm's ability to adapt to a challenging economic environment.

Capital Markets and Strategic Investments:
- The Capital Markets business, now rebranded as Capital Solutions, experienced record performance in fiscal year 2025.
- This growth was attributed to the firm's investments in strategic areas to enhance its platform with diversified, high-growth, and less volatile revenues.