Company: HLI
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001302215-25-000092
Chunk: 94

Company: HOULIHAN LOKEY, INC.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 94
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 of an increase in compensation expenses and non-compensation expenses as a percentage of revenues when compared to the same quarter last year.

Corporate Expenses

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

Corporate expenses were $98.0 million for the three months ended June 30, 2025, compared with $62.5 million for the three months ended June 30, 2024, representing an increase of 57%. Corporate expenses increased primarily as a result of an increase in the revaluation of acquisition contingent consideration and by higher compensation expenses when compared to the same quarter last year.

27

Liquidity and Capital Resources

Our current assets comprise cash and cash equivalents, investment securities, accounts receivable, income taxes receivable, and unbilled work in progress related to fees earned from providing advisory services. Our current liabilities include deferred income, accounts payable and accrued expenses, accrued salaries and bonuses, and current portion of loan obligations.

Our cash and cash equivalents include cash held at banks. We maintain moderate levels of cash on hand in support of regulatory requirements for our registered broker-dealer. As of June 30, 2025 and March 31, 2025, we had $621.0 million and $686.2 million of cash in foreign subsidiaries, respectively. Our excess cash may be invested from time to time in short-term investments, including treasury securities, commercial paper, certificates of deposit, and investment grade corporate and government debt securities. Please refer to Note 6 for further detail.

As of June 30, 2025 and March 31, 2025, our restricted cash, cash and cash equivalents, and investment securities were as follows:

(In thousands)June 30, 2025March 31, 2025Cash and cash equivalents$793,823 $971,007 Investment securities72,878 195,624 Total unrestricted cash and cash equivalents, including investment securities866,701 1,166,631 Restricted cash (1)4,573 4,572 Total cash, cash equivalents, and restricted cash, including investment securities$871,274 $1,171,203 

(1)Restricted cash included cash deposits in support of two letters of credit for our Frankfurt office, cash held in escrow accounts, and collateral to support rent guarantees.

Our liquidity is highly dependent upon cash receipts from clients that are generally dependent upon the successful completion of transactions, as well as the