Company: HLI
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001302215-25-000092
Chunk: 112

Company: HOULIHAN LOKEY, INC.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 2
Chunk 112
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 no principal was outstanding under the HLI Line of Credit.

The majority of the Company's payment obligations and commitments pertain to routine operating leases. The Company also has various obligations relating to notes payable and contingent consideration issued in connection with businesses previously acquired (see Note 10 included in Part I, 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 June 30, 2025 and March 31, 2025.

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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:

Three Months Ended June 30,(In thousands)20252024ChangeOperating activities:Net income$97,533 $88,940 10 %Non-cash charges84,408 63,384 33 %Other operating activities(313,571)(216,835)45 %Net cash used in operating activities(131,630)(64,511)104 %Net cash provided by/(used in) investing activities109,648 (40,432)(371)%Net cash used in financing activities(196,628)(161,499)22 %Effects of exchange rate changes on cash, cash equivalents, and restricted cash41,427 (5,096)(913)%Net decrease in cash, cash equivalents, and restricted cash(177,183)(271,538)(35)%Cash, cash equivalents, and restricted cash — beginning of period975,579 721,854 35 %Cash, cash equivalents, and restricted cash — end of period$798,396 $450,316 77 %

Three Months Ended June 30, 2025

Operating activities resulted in a net outflow of $(131.6) million, primarily attributable to cash bonus payments in May 2025. Investing activities resulted in a net inflow of $109.6 million, primarily attributable to sales or maturities of investment securities. Financing