Company: HLI
Filing Date: 2025-02-04
Form Type: 10-Q
Source: 0001302215-25-000007
Chunk: 40

Company: HOULIHAN LOKEY, INC.
Filing Date: 2025-02-04
Form: 10-Q
Item: Part I, Item 1
Chunk 40
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16 %183,937 153,430 20 %Other income, net(9,016)(6,035)49 %(18,741)(12,336)52 %Income before provision for income taxes$145,118 $102,575 41 %$381,080 $272,500 40 %Segment metricsNumber of Managing DirectorsCorporate Finance238 219 9 %238 219 9 %Financial Restructuring57 52 10 %57 52 10 %Financial and Valuation Advisory42 41 2 %42 41 2 %Number of closed transactions/Fee Events (3)Corporate Finance170 117 45 %417 329 27 %Financial Restructuring41 30 37 %107 91 18 %Financial and Valuation Advisory1,005 926 9 %1,804 1,704 6 %

(1)We adjust the compensation expense for a business segment in situations where an employee residing in one business segment is performing work in another business segment where the revenues are accrued. Segment Profit may vary significantly between periods depending on the levels of collaboration among the different segments. 

(2)Corporate expenses represent expenses that are not allocated to individual business segments such as office of the executives, accounting, information technology, legal and compliance, marketing, and human capital.

(3)Fee Events applicable to FVA only; a Fee Event includes any engagement that involves revenue activity during the measurement period with a revenue minimum of $1,000. References to closed transactions should be understood to be the same as transactions that are “effectively closed” as described in Note 3 of our Consolidated Financial Statements.

Corporate Finance

Three Months Ended December 31, 2024 versus December 31, 2023

Revenues for CF were $421.6 million for the three months ended December 31, 2024, compared with $310.5 million for the three months ended December 31, 2023, representing an increase of 36%. Revenues increased due to an increase in the number of closed transactions during the quarter, which was driven by favorable market conditions for M&A and capital markets transactions when compared to the same quarter last year. This increase was partially offset by a decrease in the average transaction fee on closed transactions, which was driven by transaction mix, and does not represent a trend in the average transaction fee on closed transactions.

Segment