Company: HLI
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001302215-25-000092
Chunk: 35

Company: HOULIHAN LOKEY, INC.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 35
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 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. 

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Business Segments

The following table presents revenues, expenses and contributions from our continuing operations by business segment. The revenues by segment represents each segment’s revenues, and the profit by segment represents profit for each segment before corporate expenses, other income, net, and income taxes.

Three Months Ended June 30,($ in thousands)20252024ChangeRevenues by segmentCorporate Finance$398,519 $328,417 21 %Financial Restructuring 128,216 117,422 9 %Financial and Valuation Advisory78,614 67,770 16 %Revenues$605,349 $513,609 18 %Segment profit (1)Corporate Finance$126,781 $100,422 26 %Financial Restructuring 43,644 39,149 11 %Financial and Valuation Advisory17,329 17,641 (2)%Total