Financial Analysis

Commitments and Contingencies The Company has been named in various legal actions arising in the normal course of business. In the opinion of the Company, in consultation with legal counsel, the final resolutions of these matters are not expected to have a material adverse effect on the Companys financial condition, operations and cash flows. There have been no material changes outside of the ordinary course of business to our known contractual obligations, which are included in Item 7 of our 2026 Annual Report. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Employee Benefit Plans Share-Based Incentive Plans Awards of restricted shares and restricted stock units (""RSU""s) have been and will be made under the Amended and Restated Houlihan Lokey, Inc. 2016 Incentive Award Plan (the ""2016 Incentive Plan""), which became effective in August 2015 and was amended in October 2024. Equity-based incentive awards issued under the 2016 Incentive Plan generally vest over a four-year period. Excess tax benefits of $14 and $31 were recognized during the three months ended June 30, 2026 and 2025, respectively, as a component of the provision for income taxes. Activity in equity-classified share awards under the 2016 Incentive Plan during the three months ended June 30, 2026 and 2025 is as follows: Unvested Share Awards Shares Weighted Average Grant Date Fair Value per Share Balance, April 1, 2026 3.0 $ 128.91 Granted 1.4 151.53 Vested (1.5) 111.84 Forfeited/Repurchased (0.1) 111.72 Balance, June 30, 2026 2.8 $ 148.79 Balance, April 1, 2025 3.7 $ 99.02 Granted 1.1 173.13 Vested (1.6) 91.74 Forfeited/Repurchased (0.1) 100.64 Balance, June 30, 2025 3.1 $ 128.29 Activity in RSU awards under the 2016 Incentive Plan during the three months ended June 30, 2026 and 2025 is as follows: Restricted Stock Units RSUs Weighted Average Grant Date Fair Value per RSU RSUs as of April 1, 2026 0.4 $ 120.74 Issued 0.2 151.78 Vested (0.3) 107.33 Forfeitures RSUs as of June 30, 2026 0.3 $ 151.50 RSUs as of April 1, 2025 0.7 $ 107.39 Issued 0.1 173.14 Vested (0.4) …

CompensationAndEmployeeBenefitPlansTextBlock · excerpt; the full note is in the filing

"Other Liabilities On August 23, 2019, the Company entered into a syndicated revolving line of credit with Bank of America, N.A. and certain other financial institutions party thereto, which was amended by the First Amendment to Credit Agreement dated as of August 2, 2022, and further amended by the Second Amendment to Credit Agreement dated as of August 19, 2025 (as amended, the ""HLI Line of Credit""). The HLI Line of Credit allows for borrowings of up to $150 (and, subject to certain conditions, provides the Company with an uncommitted expansion option, which, if exercised in full, would provide for a total credit facility of $200), and matures on August 19, 2030 (or if such date is not a business day, the immediately preceding business day). Borrowings under the HLI Line of Credit bear interest at a floating rate, which can be either, at the Company's option, (i) a term Secured Overnight Financing Rate (""SOFR"") plus a 0.95% margin per annum or (ii) a base rate, which is the highest of (a) the Federal Funds Rate plus one-half of one percent (0.50%), (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its prime rate, and (c) a term SOFR rate plus a 1.00% margin. Commitment fees apply to unused amounts. The HLI Line of Credit contains certain financial covenants and other restrictions, including a financial loan covenant to maintain a consolidated leverage ratio of less than 2.00 to 1.00. As of June 30, 2026 and Mar …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Fair Value Measurements The following table presents information about the Company's financial assets, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair values: June 30, 2026 Level I Level II Level III Total Corporate debt securities $ $ 21 $ $ 21 U.S. treasury securities 31 31 Total assets measured at fair value $ $ 52 $ $ 52 March 31, 2026 Level I Level II Level III Total Corporate debt securities $ $ 118 $ $ 118 U.S. treasury securities 52 52 Total assets measured at fair value $ $ 170 $ $ 170 The Company had no transfers between fair value levels during the three months ended June 30, 2026. …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill and Other Intangible Assets The following table provides a reconciliation of Goodwill and Other intangible assets, net reported on the Consolidated Balance Sheets. Useful Lives June 30, 2026 March 31, 2026 Goodwill Indefinite $ 1,396 $ 1,396 Tradename-Houlihan Lokey Indefinite 192 192 Other intangible assets Varies 141 141 Total cost 1,729 1,729 Less: accumulated amortization (130) (129) Goodwill and Other intangible assets, net $ 1,599 $ 1,600 The following table provides a reconciliation of goodwill attributable to the Companys business segments: April 1, 2026 Change June 30, 2026 Corporate Finance $ 1,128 $ $ 1,128 Financial Restructuring 163 163 Financial and Valuation Advisory 105 105 Goodwill $ 1,396 $ $ 1,396 Amortization expense of approximately $2 and $9 was recognized for the three months ended June 30, 2026 and 2025, respectively. The estimated future amortization for finite-lived intangible assets for each of the next five fiscal years and thereafter are as follows: Year Ending March 31, Remainder of 2027 $ 4 2028 1 2029 1 2030 1 2031 and thereafter 3 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes The Companys provision for income taxes was $8 and $0 for the three months ended June 30, 2026 and 2025, respectively. These represent effective tax rates of 10% and 1% for the three months ended June 30, 2026 and 2025, respectively. The increase in the Company's effective tax rate was primarily a result of decreased stock-based compensation deductions. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements In December 2025, the Financial Accounting Standards Board (FASB) issued ASU No. 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. This ASU clarifies existing interim reporting disclosure requirements by providing a comprehensive list of required interim disclosures and introducing a principle that requires entities to disclose events occurring since the end of the most recent annual reporting period that materially affect the entity. The guidance is effective for interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures. In November 2024, the Financial Accounting Standards Board (FASB) issued ASU No. 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This ASU requires disaggregated disclosure of certain income statement expenses within the footnotes of the financial statements. The guidance is effective for fiscal years beginning after December 15, 2026, with early adoption permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Related Party Transactions Other assets in the accompanying Consolidated Balance Sheets includes loans receivable from certain employees of $27 and $36 as of June 30, 2026 and March 31, 2026, respectively.

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Revenue Recognition Contract Balances The change in the Companys contract assets and liabilities during the period primarily reflects the timing difference between the Companys performance and the customers payment. The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers: April 1, 2026 Increase/(Decrease) June 30, 2026 Receivables (1) $ 218 $ (5) $ 213 Unbilled work in progress, net of allowance for credit losses 271 (16) 255 Contract Assets (1) 10 1 11 Contract Liabilities (2) 39 4 43 (1) Included within Accounts receivable, net of allowance for credit losses in the Consolidated Balance Sheets. (2) Represents deferred income which is included within Other liabilities in the Consolidated Balance Sheets. During the three months ended June 30, 2026, $12 of revenues were recognized that were included in the deferred income balance at the beginning of the period. …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"Segment and Geographical Information The Companys reportable segments, described in Note 1, were identified based on several primary factors, including: each segment operates under independent management, offers distinct services, and requires specialized expertise for service delivery. Revenues by segment represent fees earned on the various services offered within each segment. Our operating expenses are classified as employee compensation and benefits expense and non-compensation expense; revenue and headcount are the primary drivers of our operating expenses. Our employee compensation and benefits expense consists of base salary, payroll taxes, benefits, annual incentive compensation payable as cash bonus awards, deferred cash bonus awards, and the amortization of equity-based bonus awards. The balance of our operating expenses (non-compensation expense) includes costs for travel, meals and entertainment, rent, depreciation and amortization, information technology and communications, professional fees, and other operating expenses. Segment profit consists of segment revenues, less (1) direct expenses including employee compensation and benefits, travel, meals and entertainment, professional fees, and bad debt and (2) expenses allocated by headcount such as communications, rent, depreciation and amortization, and office expense. The corporate expense category includes costs not allocated to individual segments, including certain acquisition related charges and share-based …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Basis of Presentation and Consolidation Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. (""GAAP""), pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the ""SEC""), and include all information and footnotes required for interim condensed consolidated financial statement presentation. In the opinion of management, the unaudited interim consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of results for the full fiscal year. The unaudited interim consolidated financial statements and notes to consolidated financial statements should be read in conjunction with the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2026 (the ""2026 Annual Report""). Certain prior year amounts have been reclassified to conform to the current period's presentation. These reclassifications had no impact on net income, shareholders' equity or net cash flows as previously reported. Unless otherwise noted, amounts are presented in millions. Percentages presented and earnings per common share amounts are calculated from the underlying whole-dollar amounts. Principles of Consolidation The consolidated financial statements include the accounts o …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Stockholders' Equity Dividends Previously declared dividends related to unvested shares of $9 and $13 were unpaid as of June 30, 2026 and 2025, respectively. On July 22, 2026, the Company's board of directors declared a quarterly cash dividend of $0.70 per share of Class A and Class B common stock, payable on September 15, 2026, to stockholders of record as of the close of business on September 1, 2026. Share Repurchases In April 2022, the board of directors authorized an increase to the existing July 2021 share repurchase program, which provides for share repurchases of a new aggregate amount of up to $500 of the Company's Class A common stock and Class B common stock. As of June 30, 2026, shares with a value of $180 remained available for purchase under the program. During the three months ended June 30, 2026 and 2025, the Company repurchased approximately 0.8 and 0.8 shares, respectively, of Class B common stock, to satisfy $106 and $137, respectively, of required withholding taxes in connection with the vesting of restricted awards. During the three months ended June 30, 2026, the Company repurchased approximately 0.3 shares of its outstanding Class A common stock at a weighted average price of $143.77 per share, excluding commissions, for an aggregate purchase price of $50.

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