Company: HLI
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001302215-25-000092
Chunk: 90

Company: HOULIHAN LOKEY, INC.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 90
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 other operating expenses, and gains and/or losses associated with the reduction/increase in fair value of earnout liabilities. We refer to all of these expenses as non-compensation expenses. A portion of our non-compensation expenses fluctuates in response to changes in headcount.

Other Income, Net

Other income, net includes (i) interest income earned on non-marketable and investment securities, cash and cash equivalents, loans receivable from affiliates, employee loans, and commercial paper, (ii) interest expense and fees on our HLI Line of Credit (defined herein), (iii) equity income and/or gains or losses from funds and partnership interests where we have had more than a minor ownership interest or more than minor influence over operations, but do not have a controlling interest and are not the primary beneficiary, and (iv) other miscellaneous non-operating expenses.

Results of Consolidated Operations 

The following is a discussion of our results of consolidated operations for the three months ended June 30, 2025 and 2024. For a more detailed discussion of the factors that affected the revenues and the operating expenses of our CF, FR, and FVA business segments in these periods, see Part I, Item 2 of this Form 10-Q under the heading “Business Segments” below.

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Three Months Ended June 30,($ in thousands)20252024ChangeRevenues$605,349 $513,609 18 %Operating expenses:Employee compensation and benefits392,837 330,116 19 %Non-compensation122,712 88,753 38 %Total operating expenses515,549 418,869 23 %Operating income89,800 94,740 (5)%Other income, net(8,250)(5,134)61 %Income before provision for income taxes98,050 99,874 (2)%Provision for income taxes517 10,934 (95)%Net income attributable to Houlihan Lokey, Inc.$97,533 $88,940 10 %

Three Months Ended June 30, 2025 versus June 30, 2024

Revenues were $605.3 million for the three months ended June 30, 2025, compared with $513.6 million for the three months ended June 30, 2024, representing an increase of 18%. The increase in revenues was primarily attributable to an increase in CF revenues, as described in more detail below. For