Company: HLI
Filing Date: 2025-02-04
Form Type: 10-Q
Source: 0001302215-25-000007
Chunk: 101

Company: HOULIHAN LOKEY, INC.
Filing Date: 2025-02-04
Form: 10-Q
Item: Part I, Item 8
Chunk 101
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 nine months ended December 31, 2024, compared with $1.13 billion for the nine months ended December 31, 2023, an increase of 20%. Employee compensation and benefits expense, as a component of operating expenses, was $1.09 billion for the nine months ended December 31, 2024, compared with $884.1 million for the nine months ended December 31, 2023, an increase of 24%. The increase in employee compensation and benefits expense was primarily a result of higher revenues when compared with the same period last year. The Compensation Ratio was 63.5% for the nine months ended December 31, 2024, compared with 63.4% for the nine months ended December 31, 2023. Non-compensation expense, as a component of operating expenses, was $266.9 million for the nine months ended December 31, 2024, compared with $249.7 million for the nine months ended December 31, 2023, representing an increase of 7%. The increase in non-compensation expense was primarily a result of an increase in information technology and communication expenses, other operating expenses, and depreciation and amortization when compared with the same period last year, partially offset by a decrease in professional fees.

Other income, net was $(18.7) million for the nine months ended December 31, 2024, compared with $(12.3) million for the nine months ended December 31, 2023. Other income, net increased primarily due to a net increase in interest income.

The provision for income taxes for the nine months ended December 31, 2024 was $103.3 million, which reflected an effective tax rate of 27.1%. The provision for income taxes for the nine months ended December 31, 2023 was $73.3 million, which reflected an effective tax rate of 26.9%.

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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 represent 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 December 31,Nine Months Ended December 31,($ in thousands)20242023Change20242023ChangeRevenues by segmentCorporate Finance$421,602 $310,512 36 %$1,114,047 $819,247