Houlihan Lokey (NYSE: HLI) is an independent investment bank that advises corporations, financial sponsors, and government agencies on mergers and acquisitions, capital markets, financial restructurings, liability management, and financial and valuation advisory services. The firm earns revenue primarily through advisory fees on individually negotiated engagements, with a significant portion tied to progress milestones and transaction completion. Founded in 1972 and headquartered in the United States, Houlihan Lokey operates across three business segments: Corporate Finance (M&A and capital solutions), Financial Restructuring (in-court and out-of-court restructurings and liability management), and Financial and Valuation Advisory (financial opinions, valuation, and financial consulting). For FY2026 (fiscal year ended March 31, 2026), the firm reported revenues of $2.62 billion, up 10% from $2.39 billion in FY2025. As of March 31, 2026, the Financial Restructuring segment employed 59 Managing Directors globally. The firm is independent, meaning it does not underwrite securities or hold proprietary positions, which positions its advice as conflict-light relative to bulge-bracket banks.

Revenue model

Transactional advisory fees governed by individually negotiated engagement letters. Fees consist of progress payments tied to deal milestones and completion fees paid at transaction close. A smaller portion of revenue comes from retainer and opinion fees within the Financial and Valuation Advisory segment. Revenue timing is not within the firm's control, making quarterly results variable.

Products and services

Corporate Finance: M&A advisory and capital solutions. Financial Restructuring: out-of-court restructurings, liability management, and formal bankruptcy or insolvency advisory. Financial and Valuation Advisory: fairness opinions, solvency opinions, portfolio valuations, and financial consulting services.

Customers and end markets

Clients include corporations, financial sponsors (private equity), government agencies, bondholder groups, financial institutions, banks, secured creditor groups, trade creditors, official Chapter 11 creditors' committees, equity holders, and other parties involved with financially-challenged companies. No specific customer concentration percentages were disclosed in the filing excerpts.

Value-chain role

Pure advisory intermediary. Houlihan Lokey sits between buyers, sellers, creditors, and debtors as an independent financial adviser. It does not underwrite securities, take principal positions, or extend credit. Senior-level professional involvement on each engagement is a stated differentiator.

Geographic exposure

Global operations across all major worldwide markets. The filing references international and multi-jurisdictional restructuring capability and intentions to expand into new geographies, but does not provide a revenue breakdown by region in the excerpts provided.

Source: SEC 10-K, filed 2026-05-22

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