Houlihan Lokey reported second quarter fiscal 2027 results that significantly exceeded consensus expectations, driven by an improving mid-market M&A environment. Revenues grew 5% year-over-year to $692 million, while adjusted diluted EPS reached $1.85, comfortably surpassing the $1.58 estimate. Growth was anchored by the Corporate Finance segment, which saw a double-digit revenue increase that offset a cyclical decline in restructuring activity.
Key Highlights
- Corporate Finance revenue rose 10% to $481 million, supported by higher average transaction fees despite a 17% decline in the number of closed deals to 142.
- Financial Restructuring revenue decreased 12% to $118 million, which management attributed primarily to the specific timing of transaction closings.
- The company maintained its dividend at $0.70 per share and repurchased 397,000 shares during the quarter, ending the period with $888 million in cash and investment securities.