Company: HLI
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001302215-25-000111
Chunk: 87

Company: HOULIHAN LOKEY, INC.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 8
Chunk 87
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 Item 1 of this Form 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 September 30, 2025 and March 31, 2025.

25

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:

Six Months Ended September 30,(In thousands)20252024ChangeOperating activities:Net income$209,314 $182,489 15 %Non-cash charges153,223 115,017 33 %Other operating activities(169,121)(72,795)132 %Net cash provided by operating activities193,416 224,711 (14)%Net cash used in investing activities(4,630)(71,311)(94)%Net cash used in financing activities(268,765)(200,626)34 %Effects of exchange rate changes on cash, cash equivalents, and restricted cash32,798 18,234 80 %Net decrease in cash, cash equivalents, and restricted cash(47,181)(28,992)63 %Cash, cash equivalents, and restricted cash — beginning of period975,579 721,854 35 %Cash, cash equivalents, and restricted cash — end of period$928,398 $692,862 34 %

Six Months Ended September 30, 2025

Operating activities resulted in a net inflow of $193.4 million, primarily attributable to net income, partially offset by cash bonus payments in May 2025. Investing activities resulted in a net outflow of $4.6 million, primarily attributable to purchases of investment securities and purchases of property and equipment, partially offset by sales or maturities of investment securities. Financing activities resulted in a net outflow of $268.8 million, primarily attributable to payments made to settle employee tax obligations on share-based awards, dividends paid, and share repurchases.

Six Months Ended September 30,