Company: HLI
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001302215-25-000092
Chunk: 91

Company: HOULIHAN LOKEY, INC.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 91
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 the quarter, CF revenues increased 21%, FR revenues increased 9%, and FVA revenues increased 16% when compared with the three months ended June 30, 2024. 

Operating expenses were $515.5 million for the three months ended June 30, 2025, compared with $418.9 million for the three months ended June 30, 2024, representing an increase of 23%. Employee compensation and benefits expense, as a component of operating expenses, was $392.8 million for the three months ended June 30, 2025, compared with $330.1 million for the three months ended June 30, 2024, representing an increase of 19%. The increase in employee compensation and benefits expense was a result of an increase in revenues for the quarter when compared with the same quarter last year. The Compensation Ratio was 64.9% for the three months ended June 30, 2025, compared with 64.3% for the three months ended June 30, 2024. Non-compensation expense, as a component of operating expenses, was $122.7 million for the three months ended June 30, 2025, compared with $88.8 million for the three months ended June 30, 2024, representing an increase of 38%. The increase in non-compensation expense was primarily a result of increases in revaluation of acquisition contingent consideration, depreciation and amortization, and other operating expenses. 

Other income, net was $(8.3) million for the three months ended June 30, 2025, compared with $(5.1) million for the three months ended June 30, 2024. Other income, net increased primarily due to a net increase in interest and other income generated by our investment securities.

The provision for income taxes was $0.5 million, representing an effective tax rate of 0.5%, for the first quarter ended June 30, 2025, compared with $10.9 million, representing an effective tax rate of 10.9%, for the first quarter ended June 30, 2024. The decrease in the Company's tax rate during the quarter ended June 30, 2025 relative to the quarter ended June 30, 2024 was primarily a result of increased stock-based compensation deductions. 

25

Business Segments

The following table presents revenues, expenses and contributions from our continuing operations by business segment. The revenues by segment represents