moneyheap
HLI · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Houlihan Lokey, Inc. (HLI) stock moving?
Houlihan Lokey beat consensus on its fiscal Q2 2027 report (Oct 28): revenue of $692M versus about $621M expected, and adjusted EPS of $1.85 versus $1.66. Corporate Finance revenue rose 10% and Financial and Valuation Advisory rose 7%, while Financial Restructuring fell 12%. The CEO said improving market conditions drove the quarter but stayed cautious about external volatility, expecting solid performance for the rest of the year. Price action confirms the beat: the stock closed at $137.38 on Oct 28 on 1.19M shares, then $139.34 on Oct 29 on 1.65M, and reached an intraday high of $155.86 on Nov 4. On Nov 5 it reversed from a $157.15 high to close at $147.22 on 1.14M shares, and it has since held in a $146 to $150 range on lower volume (about 580K shares a day). The close of $148.03 on Nov 10 is roughly 12% above the Oct 27 close of $132.35. Analyst targets are supportive but mostly near the price: the average 12-month target is $159.22, and JP Morgan kept a Neutral rating with a $153 target. Deal flow looks healthy, with advisory roles on the LSV/Mubadala investment and the Linden Capital investment in AnewHealth, plus senior hires in power and business services. The first half is weaker than last year: revenue of $1,203M versus $1,265M and diluted EPS of $2.78 versus $3.04. A director resignation on Oct 2 is not material. Upside depends on the market cycle continuing to support deal and restructuring activity.
News behind the analysis
- Mubadala Capital to Invest in LSV, Houlihan Lokey Serves as AdvisorHoulihan Lokey is acting as exclusive financial advisor to LSV on a strategic investment from Mubadala Capital.
- Houlihan Lokey Appoints Greg Han as Managing Director in Power, Utilities, and Renewables GroupThe firm hired Greg Han as a Managing Director to advise clients on strategic and capital deployment in power, utilities and renewables.
- Houlihan Lokey Serves as Financial Advisor to Linden Capital PartnersHoulihan Lokey advised Linden Capital Partners on its strategic investment in AnewHealth.
- Houlihan Lokey Appoints Adnan Choudhury as Managing Director in Business Services GroupAdnan Choudhury joins the Business Services Group in London to focus on professional services across Europe.
- JP Morgan Maintains Neutral Rating and Raises Price Target for Houlihan LokeyJP Morgan kept its Neutral rating and raised its price target from $147 to $153.
- Analysts Raise 12-Month Price Target for Houlihan Lokey, Inc.The average 12-month price target rose to $159.22, implying about 16% upside at the time.
- Houlihan Lokey Reports Second Quarter Fiscal 2027 Financial ResultsRevenue rose to $692M from $660M and net income was $109M, with adjusted diluted EPS of $1.85; a $0.70 dividend was declared for Q3 FY2027.
- Houlihan Lokey Q2 2027 Earnings Call TranscriptThe transcript of the second-quarter fiscal 2027 earnings call, held on October 28, has been published.
- Houlihan Lokey Q2 Adj. EPS $1.85 Beats $1.66 Estimate, Sales $692.000M Beat $620.676M EstimateAdjusted EPS of $1.85 beat the $1.66 estimate and sales of $692M beat the $620.7M estimate.
About Houlihan Lokey, Inc.
Houlihan Lokey is a global investment bank based in Los Angeles that advises companies, private equity firms and creditors on mergers, financing, restructurings and valuations. It is known as one of the leading advisers on mid-market M&A and is often ranked the top restructuring adviser, which helps it earn fees in both good and bad economies.
How it makes money
It earns advisory fees in three segments. Corporate Finance (M&A and capital markets advice, roughly 60–70% of revenue) is mostly paid when deals close. Financial Restructuring (roughly 15–20%) advises distressed companies and their creditors. Financial and Valuation Advisory (roughly 13–15%) provides valuations, fairness opinions and similar work. Revenue was a record of about $2.6 billion for the fiscal year ended March 2026. Pay is its biggest cost, at roughly 60–64% of revenue.
What usually moves HLI
- M&A and private equity deal volumes
- Corporate defaults and credit stress (restructuring demand)
- Average fee per closed deal and timing of deal closings
- Hiring of managing directors and acquisitions of boutique firms
- Interest rates and overall market volatility