Company: HLI
Filing Date: 2025-02-04
Form Type: 10-Q
Source: 0001302215-25-000007
Chunk: 127

Company: HOULIHAN LOKEY, INC.
Filing Date: 2025-02-04
Form: 10-Q
Item: Part I, Item 2
Chunk 127
---
10-Q).

In connection with certain acquisitions, certain employees may be entitled to deferred consideration, primarily in the form of retention payments, should certain service and/or performance conditions be met in the future. As a result of these conditions, such deferred consideration would be expensed as compensation in current and future periods and has been accrued as liabilities on the Consolidated Balance Sheets as of December 31, 2024 and March 31, 2024.

32

Cash Flows

Our operating cash flows are primarily influenced by the amount and timing of receipt of advisory fees and the payment of operating expenses, including payments of incentive compensation to our employees. We pay a significant portion of our incentive compensation during the first and third quarters of each fiscal year. A summary of our operating, investing, and financing cash flows is as follows:

Nine Months Ended December 31,(In thousands)20242023ChangeOperating activities:Net income$277,791 $199,224 39 %Non-cash charges191,961 184,270 4 %Other operating activities20,473 (280,346)(107)%Net cash provided by operating activities490,225 103,148 375 %Net cash used in investing activities(158,709)(55,718)185 %Net cash used in financing activities(237,985)(214,438)11 %Effects of exchange rate changes on cash, cash equivalents, and restricted cash(14,593)8,101 (280)%Net increase/(decrease) in cash, cash equivalents, and restricted cash78,938 (158,907)(150)%Cash, cash equivalents, and restricted cash — beginning of period721,854 714,812 1 %Cash, cash equivalents, and restricted cash — end of period$800,792 $555,905 44 %

Nine Months Ended December 31, 2024

Operating activities resulted in a net inflow of $490.2 million, primarily attributable to net income plus equity and liability classified share awards issued, partially offset by cash bonus payments paid in May 2024. Investing activities resulted in a net outflow of $(158.7) million, primarily attributable to the purchase of investment securities and several acquisitions closing during the nine months ended December 31, 2024. Financing activities resulted in a net outflow of $(238.0) million, primarily attributable to dividends paid and payments made to settle employee tax obligations on share-based awards.

Nine Months Ended December