📊 HLI Key Takeaways
Is Houlihan Lokey, Inc.. (HLI) a Good Investment?
HLI demonstrates exceptional financial health with strong profitability margins (20.3% operating margin), outstanding free cash flow generation ($395M annually), and a fortress balance sheet (0.06x debt/equity, $1.1B cash). However, net income growth is flat year-over-year with undefined revenue growth, reflecting cyclicality in investment advisory services tied to M&A activity, which limits upside without visibility on deal pipeline recovery.
Robust, asset-light profitability with 20% operating margins, double‑digit ROE on minimal leverage, and strong cash generation (near 20% FCF margin) indicate high-quality fundamentals. A net cash balance sheet adds resilience and capital allocation flexibility, while EPS growth outpaced earnings, suggesting accretive buybacks. With net income flat and revenue growth unclear, execution on sustained advisory activity and margin discipline is key.
Why Buy Houlihan Lokey, Inc.. Stock? HLI Key Strengths
- Superior cash generation with FCF margin of 19.9% and FCF exceeding net income by 21%, indicating efficient working capital and minimal capex requirements
- Fortress balance sheet with minimal leverage (0.06x debt/equity), $1.1B in cash, and long-term debt of only $133.5M providing substantial financial flexibility
- Consistent profitability with 16.4% net margin and 32.4% gross margin, demonstrating pricing power and cost discipline in investment advisory services
- Strategic capital allocation evidenced by 41.6% EPS growth despite flat net income, indicating meaningful share buybacks that enhance per-share value
- Net cash balance sheet with low leverage (Debt/Equity 0.06x)
- Strong profitability and returns (20.3% operating margin, 16.4% net margin, 14.2% ROE)
- Excellent cash conversion and low capex driving 19.9% FCF margin
HLI Stock Risks: Houlihan Lokey, Inc.. Investment Risks
- Revenue and net income growth stalling at 0.0% YoY, indicating headwinds in deal activity and M&A market cyclicality that may persist in weak market conditions
- Business cyclicality inherent to investment advisory sector with pronounced sensitivity to M&A volume, equity market activity, and economic sentiment
- Limited insider activity (only 2 Form 4 filings in 90 days) provides minimal insight into management confidence or capital deployment strategy
- Revenue cyclicality tied to deal/M&A environment may pressure fees
- Compensation and competitive pressure could compress margins
- Flat net income suggests limited near-term organic growth momentum
Key Metrics to Watch
- Revenue growth trajectory and YoY comparisons to assess M&A market recovery and deal pipeline momentum
- Free cash flow sustainability and capital allocation decisions (dividend, buybacks, debt reduction) amid flat organic growth
- Operating margin stability and headcount/compensation trends as proxy for cost management during potential market downturns
- Revenue YoY growth
- Operating margin sustainability
Houlihan Lokey, Inc.. (HLI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
HLI Profit Margin, ROE & Profitability Analysis
HLI vs Market Sector: How Houlihan Lokey, Inc.. Compares
How Houlihan Lokey, Inc.. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Houlihan Lokey, Inc.. Stock Overvalued? HLI Valuation Analysis 2026
Based on fundamental analysis, Houlihan Lokey, Inc.. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Houlihan Lokey, Inc.. Balance Sheet: HLI Debt, Cash & Liquidity
HLI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Houlihan Lokey, Inc..'s revenue has grown significantly by 57% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.76 reflects profitable operations.
HLI Revenue Growth, EPS Growth & YoY Performance
HLI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $634.4M | $95.3M | $1.39 |
| Q2 2026 | $575.0M | $93.5M | $1.37 |
| Q1 2026 | $513.6M | $88.9M | $1.30 |
| Q3 2025 | $511.1M | $70.8M | $1.04 |
| Q2 2025 | $467.0M | $67.0M | $0.99 |
| Q1 2025 | $415.8M | $61.4M | $0.90 |
| Q2 2024 | $456.5M | $60.7M | $0.87 |
| Q1 2024 | $415.8M | $61.4M | $0.90 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Houlihan Lokey, Inc.. Dividends, Buybacks & Capital Allocation
HLI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Houlihan Lokey, Inc.. (CIK: 0001302215)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HLI
What is the AI rating for HLI?
Houlihan Lokey, Inc.. (HLI) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 77% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HLI's key strengths?
Claude: Superior cash generation with FCF margin of 19.9% and FCF exceeding net income by 21%, indicating efficient working capital and minimal capex requirements. Fortress balance sheet with minimal leverage (0.06x debt/equity), $1.1B in cash, and long-term debt of only $133.5M providing substantial financial flexibility. ChatGPT: Net cash balance sheet with low leverage (Debt/Equity 0.06x). Strong profitability and returns (20.3% operating margin, 16.4% net margin, 14.2% ROE).
What are the risks of investing in HLI?
Claude: Revenue and net income growth stalling at 0.0% YoY, indicating headwinds in deal activity and M&A market cyclicality that may persist in weak market conditions. Business cyclicality inherent to investment advisory sector with pronounced sensitivity to M&A volume, equity market activity, and economic sentiment. ChatGPT: Revenue cyclicality tied to deal/M&A environment may pressure fees. Compensation and competitive pressure could compress margins.
What is HLI's revenue and growth?
Houlihan Lokey, Inc.. reported revenue of $2.0B.
Does HLI pay dividends?
Houlihan Lokey, Inc.. pays dividends, with $134.9M distributed to shareholders in the trailing twelve months.
Where can I find HLI SEC filings?
Official SEC filings for Houlihan Lokey, Inc.. (CIK: 0001302215) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HLI's EPS?
Houlihan Lokey, Inc.. has a diluted EPS of $4.74.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HLI a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Houlihan Lokey, Inc.. has a BUY rating with 77% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is HLI stock overvalued or undervalued?
Valuation metrics for HLI: ROE of 14.2% (sector avg: 15%), net margin of 16.4% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy HLI stock in 2026?
Our dual AI analysis gives Houlihan Lokey, Inc.. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is HLI's free cash flow?
Houlihan Lokey, Inc..'s operating cash flow is $411.1M, with capital expenditures of $16.1M. FCF margin is 19.9%.
How does HLI compare to other Market stocks?
Vs Default sector averages: Net margin 16.4% (avg: 12%), ROE 14.2% (avg: 15%), current ratio N/A (avg: 1.8).