Investment banking firm Houlihan Lokey (NYSE: HLI) missed Wall Street’s revenue expectations in Q2 CY2026, with sales falling 15.6% year on year to $511 million. Its non-GAAP profit of $1.35 per share was 17.7% below analysts’ consensus estimates.
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Houlihan Lokey (HLI) Q2 CY2026 Highlights:
- Revenue: $511 million vs analyst estimates of $610.3 million (15.6% year-on-year decline, 16.3% miss)
- Pre-tax Profit: $86 million (16.8% margin)
- Adjusted EPS: $1.35 vs analyst expectations of $1.64 (17.7% miss)
- Market Capitalization: $10.05 billion
“Our first quarter results reflected ongoing headwinds in our Corporate Finance business which started last quarter, including instability in the Middle East and disruptions in the technology sector, specifically in software. Given the general health of the economy and strong public market valuations, we believe these headwinds are temporary in nature and do not represent a cyclical downturn. We continue to see strong support for improved performance for the balance of the year, but it is difficult to tell when the current headwinds will subside,” stated Scott Adelson, Chief Executive Officer of Houlihan Lokey.
Company Overview
Founded in 1972 and known for its expertise in complex financial situations, Houlihan Lokey (NYSE: HLI) is a global investment bank specializing in mergers and acquisitions, capital markets, financial restructurings, and valuation advisory services.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last five years, Houlihan Lokey grew its revenue at a decent 8.4% compounded annual growth rate. Its growth was slightly above the average financials company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Houlihan Lokey’s annualized revenue growth of 12% over the last two years is above its five-year trend, suggesting its demand recently accelerated. 
Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Houlihan Lokey missed Wall Street’s estimates and reported a rather uninspiring 15.6% year-on-year revenue decline, generating $511 million of revenue.
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Key Takeaways from Houlihan Lokey’s Q2 Results
We struggled to find many positives in these results. Its EBITDA missed and its revenue fell short of Wall Street’s estimates. Overall, this was a softer quarter. The stock traded down 7.3% to $128.95 immediately after reporting.
Houlihan Lokey’s latest earnings report disappointed. One quarter doesn’t define a company’s quality, so let’s explore whether the stock is a buy at the current price. If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).
