Slides
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February 2025Investor Presentation
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Disclaimers 2 Forward-Looking Information This presentation contains forward-looking statements. All statements other than statements of historical facts contained in this presentation may be forward-looking statements. The words “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters identify forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other important factors, that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Important factors that could cause actual results to differ materially from expectations are disclosed under the “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” sections of our annual report on Form 10-K for the year ended March 31, 2024, and subsequent filings with the Securities and Exchange Commission (the “SEC”). All written and oral forward- looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by the cautionary statements. You should evaluate all forward-looking statements made in this presentation in the context of these risks and uncertainties. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur, and actual results could differ materially from those projected in the forward-looking statements. The forward-looking statements in this presentation are made only as of the date hereof. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. Non-GAAP Financial Measures Adjusted pre-tax income, adjusted net income, total and on a per share basis, and certain adjusted items used to determine adjusted net income, are presented and discussed in this presentation and are non-GAAP measures that management believes, when presented together with comparable GAAP measures, are useful to investors in understanding the Company’s operating results. The adjusted items included in this presentation as calculated by the Company are not necessarily comparable to similarly titled measures reported by other companies. Additionally, these adjusted amounts are not a measurement of financial performance or liquidity under GAAP and should not be considered as an alternative to the Company’s financial information determined under GAAP. For a description of the Company’s use of these adjusted items and a reconciliation with comparable GAAP items, see the section of this presentation titled “Reconciliation of GAAP to Adjusted Financial Information.” Please refer to our financial statements, prepared in accordance with GAAP, for purposes of evaluating our financial condition, results of operations, and cash flows.
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Employee DNA → Client-centric → Entrepreneurial → Collaborative → Solution Oriented → Data informed Firm’s DNA → Global advice with local execution → Dedicated to exceeding client expectations → Data driven approach to decision making → Commitment to innovation → Community minded Ownership and Controls → New York Stock Exchange listed company → Blue chip institutional ownership → Broad-based, long-term employee ownership → Consensual, data driven decision-making Our Culture 3
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DEDICATED INDUSTRY GROUPS CORE SERVICES Technology Financial Services Real Estate Energy Industrials Consumer Healthcare Business Services Financial Restructuring Financial and Valuation AdvisoryCorporate Finance FinTech Our Product Knowledge and Industry Expertise Deliver Superior Results Note: As of December 31, 2024 1. LTM ended December 31, 2024 KEY FACTS AND FIGURES 36 Locations Worldwide 2,707 Global Employees 337 Managing Directors $2.2B Revenue1 4
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Given our diversified business model, and mix of cyclical, counter-cyclical and non-cyclical businesses, we believe we are less volatile than other investment banking firms. Diversified across clients, industries, geographies, transactions and financial professionals. Lower Revenues and Earnings Volatility Through Economic Cycles High Quality, Diversified Revenues Track Record of Growth and Profitability Long-Tenured Management Team Strong and consistent financial performance. The average tenure of our Executive Management Team and our 16- person Operating Committee Team is over 25 years. Significant room to grow all three businesses globally through both organic hires and acquisitions. Focus on leveraging technology and data drives differentiated advice and superior decision making. Strong Growth Prospects Data Centric Strategy Investment T enets 5
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Adjusted Pre-tax Margin1 Strong Financial Performance 6 Strong revenue growth with a five-year CAGR of 12% Fiscal year 2022 experienced record results during extremely bullish market conditions Adjusted pre-tax income grew at a CAGR of 11% over the same five-year period Maintained solid adjusted pre-tax margins throughout, with higher pre-tax margins for fiscal years 2021 and 2022 as a result of temporarily lower non-compensation expenses as a result of COVID-19 56% 56% 53% 70% 62% 58% 29% 30% 35% 17% 22% 27% 15% 14% 12% 13% 16% 15% $1,084 $1,159 $1,525 $2,270 $1,809 $1,914 2019 2020 2021 2022 2023 2024 Corporate Finance Financial Restructuring Financial and Valuation Advisory $264 $282 $434 $680 $428 $440 2019 2020 2021 2022 2023 2024 24.4% 24.3% 28.4% 29.9% 23.7% 23.0% 2019 2020 2021 2022 2023 2024 Revenues Adjusted Pre-tax Income1 Note: For fiscal years ended March 31. All dollar amounts in millions unless otherwise noted. 1. Adjusted Pre-tax Income and Adjusted Pre-Tax Margin are non-GAAP financial measures. See page 30 for comparable GAAP figures. 6
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Strong Partnership Culture with Experienced Leadership 7 Scott L. Beiser Co-Chairman Deep and Experienced Executive Management Te a m Irwin N. Gold Co-Chairman Over 25-year average tenure of our Executive Management Team and our 16-person Operating Committee Team 1 1. As of March 31, 2024. Excludes Managing Directors from acquisitions. 2. For the fiscal year ended March 31, 2024. Scott J. Adelson CEO J. Lindsey Alley CFO Long T enure Results in Collaborative Culture Tenured Management Team 2 High Retention 12-year average tenure of Managing Directors across all business segments¹ 3 Strong Loyalty More than 60% of Managing Directors reached their respective positions through internal promotions¹ 4 No “Star” Culture No single individual generated more than 2% of revenues² P . Eric Siegert Co-Chairman
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A Culture of Caring 8 HL has a matching charitable contribution program for active employees, which results in a number of donations to causes around the globe, and a give-a-day program that results in significant participation by our employees in programs local to our offices. Listed below are several of the beneficiaries of our programs:
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698 792 1,020 1,045 1,243 40 44 48 59 88 309 342 371 406 415 Market Leader in All Three Business Segments 9 Source: LSEG 1. M&A ranking excludes accounting firms and brokers. 2. Announced or completed transactions. Top Global M&A Firm1 Investment Banks by Number of Global M&A Deals in CY 2024 → No. 1 U.S. M&A Advisor → Leading Capital Markets Advisor Top Global Restructuring Firm CY 2024 Global Distressed Debt and Bankruptcy Restructuring Deals → No. 1 Global Restructuring Advisor → Advised on 12 of the 15 Largest U.S. Bankruptcies Since 2000 Top Global Fairness Opinion Firm Global M&A Fairness Advisors: Announced or Completed Deals (CY 2000 to CY 2024) → No. 1 Global M&A Fairness Opinion Advisor Over the Past 25 Years 2 → 2,000+ Annual Engagements Rothschild & Co JP Morgan Goldman Sachs & Co Morgan Stanley HOULIHAN LOKEY PJT Partners Lazard Rothschild & Co Perella Weinberg Partners LP HOULIHAN LOKEY Duff & Phelps UBS JP Morgan Morgan Stanley HOULIHAN LOKEY
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10 12 14 14 17 36 40 41 46 56 65 81 93 98 101 56 57 64 68 81 22 24 25 28 35 46 49 54 62 86 No.1 FinTech1Business Services Industrials TechnologyHealthcare2 Financial Services Rothschild & Co Benchmark International Goldman Sachs & Co JP Morgan HOULIHAN LOKEY Source: LSEG. Excludes accounting firms and brokers. Note: Advisory rankings based on total number of Global M&A transactions completed in CY 2024. 1. Source: Pitchbook Data, Inc. 2. Transactions under $1 billion in total deal value. Raymond James Financial William Blair & Co The Goldman Sachs Group Evercore/Jefferies Financial Group/Morgan Stanley HOULIHAN LOKEY Goldman Sachs & Co Rothschild & Co JP Morgan Morgan Stanley HOULIHAN LOKEY Rothschild & Co Morgan Stanley KeyBanc Capital Markets Inc Goldman Sachs & Co HOULIHAN LOKEY Rothschild & Co Mizuho Financial Group JP Morgan Goldman Sachs & Co HOULIHAN LOKEY Goldman Sachs & Co Morgan Stanley JP Morgan Rothschild & Co HOULIHAN LOKEY 10 Global Market-Leading Advisor Across Industries 10
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52% 27% 21% 62% Corporate Finance 24% Financial Restructuring 14% Financial and Valuation Advisory 15% Business Services 13% Consumer 3% Energy 12% Financial Institutions 13% Healthcare 24% Industrials 13% Technology 7% Other More than 2,000+ clients served annually Industry Mix1Client Mix1 Geographic Mix1Segment Mix1 → No single transaction fee represented more than 2% of our revenues → No individual financial professional was responsible for more than 2% of our revenues → No single employee shareholder owns more than 2% of shares outstanding 2% For FY 2024: 1. Based on revenues for the LTM ended December 31, 2024. 11 Diversified Across Geography, Client, Industry, Professional and Segment 11 Public Companies Financial Sponsors Private Non-Sponsor 5% Asia 25% EMEA 70% The Americas
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Comprehensive Coverage and Global Scale AMERICAS Atlanta Los Angeles Baltimore Miami Boston Minneapolis Charlotte New York Chicago San Francisco Dallas São Paulo Houston Washington, D.C. EUROPE AND MIDDLE EAST Amsterdam Milan Antwerp Munich Dubai Paris Frankfurt Stockholm London Tel Aviv Madrid Zurich Manchester ASIA- PACIFIC Beijing Shanghai Fukuoka Singapore Gurugram Sydney Hong Kong SAR Tokyo Mumbai 12
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FINANCIAL RESTRUCTURING → Adding incremental industry expertise globally → Continued geographic expansion → Building out our Capital Solutions platform → Increasing deal size and deal fees → Increasingly complex and ever-changing regulatory reporting, valuation and tax environments → Continued geographic expansion of service portfolio → Addition of new high-value services and scaling of existing services through targeted senior hires → Deepening client relationships and walletshare, supported by a complete lifecycle of services Growth will be driven by: → Growing availability and use of leverage globally → Continued globalization of financial restructuring advice → Increasingly complex balance sheets → Impact from ongoing technology disruption CORPORATE FINANCE FINANCIAL AND VALUATION ADVISORY We will continue to grow our Managing Director Headcount through: Development and maturation of financial professionals Targeted hiring of senior industry and product bankers Strategic acquisitionsand joint ventures 1 2 3 13 Robust Long-Term Growth Opportunities 13 Use of advanced data and the latest technologies to drive innovation and excellence 4
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62 65 72 75 78 85 88 100 107 115 125 146 165 169 173 190 198 198 289 313 316 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 History of Growing Managing Director Headcount Revenue per MD1 Note: For fiscal years ended March 31. All dollar amounts in millions unless otherwise noted. 1. Based on the number of MDs at the end of each respective fiscal year. HL has increased its Managing Director Headcount by a CAGR of 8% over the last 20 years through internal promotions, opportunistic hirings, and strategic acquisitions. HL has maintained solid MD productivity through the cycles. Productivity increased in FY21 and FY22 due to significantly less travel and more time for deal execution as a result of COVID-19. 14 Growth Through Hiring and MD Productivity 14 $5.9 $5.9 $7.7 $7.9 $5.8 $6.1 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Revenue per MD1
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15 Growth Through Recent Acquisitions 15 April 2018 Data and Analytics, Content, Software, and Services Advisory Firm May 2018 Private Equity Fundraising Advisory Firm December 2019 Financial Institutions Group-Focused Investment Bank August 2020 Technology, Media, & Telecom- Focused Investment Bank October 2021 Global Technology-Focused Investment Bank February 2023 Telecoms, Technology, Media, & Data-Focused Advisory Firm April 2024 Global Independent Advisory Firm → HL has made 19 acquisitions over the last 12 years → We have made acquisitions to deepen our industry coverage, expand our geographic reach and add additional service offerings → HL has historically used acquisitions as a complement to our organic growth → We believe that there are hundreds of potential boutique acquisition candidates around the globe that could be a strategic fit → Our primary acquisition premise is that the depth and breadth of our platform enables sellers to engage with larger clients resulting in higher average fees per engagement → Acquisitions are structured using a combination of up-front consideration and contingent consideration at a multiple that makes the acquisition accretive to HL October 2024 Prytania Solutions Limited UK-Based Tech-Enabled Valuation Platform November 2019 Spain-Focused Investment Banking Firm July 2021 Household, Beauty and Personal Care Investment Bank December 2023 Global Information Technology Services Advisory Firm December 2024 Insurance and Wealth Management- Focused Independent Advisory Firm
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Overview of Business Segments 16
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A Houlihan Lokey Model for Growth and Success 17 HL maintains three primary service lines – Corporate Finance, Financial Restructuring, and Financial and Valuation Advisory. Our business is diversified across clients, services, industries, professionals, and geographies. Corporate Finance Financial Restructuring Financial and Valuation Advisory Core Services Mergers/Acquisitions Capital Markets Advisory Private Funds Placement Debtor and Creditor Restructuring Distressed M&A Liability Management Financial Opinions Valuation Services Transaction Advisory Services Managing Directors1 238 57 42 5-Year FY Revenue CAGR2 13% 10% 12% LTM December 31, 2024 Revenues / % of Total $1,402 / 62% $535 / 24% $307 / 14% LTM December 31, 2024 Revenues per MD3 $6.1 $9.4 $7.5 LTM December 31, 2024 Closed Transactions / Fee Events4 538 142 2,321 Note: All dollar amounts in millions unless otherwise noted. Figures may not tie due to rounding. 1. As of December 31, 2024. 2. Revenue CAGR for the last 5 fiscal years. 3. Based on the average of the MD count at the end of each fiscal quarter throughout the LTM. 4. A Fee Event includes any engagement that involves revenue activity during the measurement period based on a revenue minimum of one thousand dollars. References in this press release to closed transactions should be understood to be the same as transactions that are “effectively closed” as described in our periodic reports on Forms 10-K and 10-Q.
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INDUSTRY GROUPS PRODUCT SPECIALISTS TechnologyFinancial Services Real EstateEnergy IndustrialsConsumer HealthcareBusiness Services FinTech Balanced and insightful mergers and acquisitions advice Comprehensive range of debt and equity capital raisings for companies, private equity groups and alternative asset managers Capital Markets Mergers and Acquisitions Integrated Platform combining Industry Coverage, Product Expertise, and Global Reach Corporate Finance 18
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2024 M&A Advisory Rankings All Global Technology Transactions Advisor Deals 1 Houlihan Lokey 101 2 Goldman Sachs & Co 98 3 JP Morgan 93 4 Morgan Stanley 81 5 Rothschild & Co 65 Source: LSEG. Excludes accounting firms and brokers. Corporate Finance Houlihan Lokey’s Corporate Finance group closes more deals than any other firm anywhere in the world No.1 Global M&A Advisor1 No.1 Global Advisor to Private Equity2 No.1 US M&A Advisor1 Leading Capital Markets Advisor Note: Advisory rankings based on total number of Global M&A transactions completed in CY 2024. 1. Source: LSEG. Excludes accounting firms and brokers. 2. Represents number of transactions closed for the calendar year-to-date period ended December 31, 2023. Source: PitchBook. Excludes accounting firms and brokers. Market-Leading Advisor Across Industries1 19 2024 M&A Advisory Rankings All Global Business Services Transactions Advisor Deals 1 Houlihan Lokey 86 2 Rothschild & Co 62 3 Goldman Sachs & Co 54 4 Benchmark International 49 5 JP Morgan 46 Source: LSEG. Excludes accounting firms and brokers. 2024 M&A Advisory Rankings Global Healthcare Transactions Under $1 Billion Advisor Deals 1 Houlihan Lokey 35 2 Rothschild & Co 28 3 KeyBanc Capital Markets Inc 25 4 Morgan Stanley 24 5 Goldman Sachs & Co 22 Source: LSEG. Excludes accounting firms and brokers. 2024 M&A Advisory Rankings All Global Financial Services Transactions Advisor Deals 1 Houlihan Lokey 56 2 Goldman Sachs & Co 46 3 JP Morgan 41 4 Rothschild & Co 40 5 Morgan Stanley 36 Source: LSEG. Excludes accounting firms and brokers. 2024 M&A Advisory Rankings All Global Industrials Transactions Advisor Deals 1 Houlihan Lokey 81 2 Rothschild & Co 68 3 JP Morgan 64 4 Mizuho Financial Group 57 5 Goldman Sachs & Co 56 Source: LSEG. Excludes accounting firms and brokers. 2024 M&A Advisory Rankings All Global FinTech Transactions Advisor Deals 1 Houlihan Lokey 17 2 Raymond James Financial 14 2 The Goldman Sachs Group 14 4 William Blair & Co 12 5* Evercore/Jefferies/Morgan Stanley 10 Source: PitchBook Data, Inc. *Represents a three-way tie between Evercore Group, Jefferies Financial Group, and Morgan Stanley.
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99% 1% CY 2024 Global Closed M&A Transactions CY 2024 Source: LSEG. 1. Includes capital advisory transactions. The mid-cap space is less volatile than the large-cap space, which, when combined with HL’s ongoing opportunities to increase its relatively low market share, generally results in less revenue “downside” in weaker M&A markets 39,828 Transactions 39,372 Transactions 456 Transactions > $1B in Value 39,372 Transactions < $1B in Value HL Market Share1 Room to Grow – The BIG Target Mid-Cap Transactions Our market share in the Global mid-cap space is approximately 1%, based on the number of closed Corporate Finance transactions we completed in CY 2024 1% Corporate Finance Mergers & Acquisitions 20 99% 1% CY 2024
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Corporate Finance Capital Markets 21 → Houlihan Lokey is a market leader in placing bespoke capital in the private markets — from senior debt to equity – Access capital when traditional markets / providers are inappropriate or unreceptive → Placement of solution -oriented capital for a wide range of financing needs – High-touch, confidential, targeted process – Differentiated investor relationships and access to decision-makers → Financing solutions for companies at various stages of the corporate lifecycle – Acquisitions, dividends, refinancings, growth capital and special situations – ABLs, secured loans, mezzanine debt, minority and co-investment equity → Independent advisor on bank commitments and equity and debt securities offerings → Drive competition to optimize positioning, structure / terms and syndication – Value-added distribution (anchor investors) → Evaluate public vs. private market solutions → Ability in the US to participate in public / syndicated offerings – Act as Bookrunner / Co-Manager on securities offerings and Arranger on leveraged loans Private Capital Solutions Capital Markets Advisory Raised and advised on more than $19 billion across ~126 transactions in fiscal year 2024 We believe we have one of the largest capital markets groups at non-balance- sheet banks, raising capital for both sponsors and corporate clients More than 179 dedicated professionals across 16 offices in six countries as of December 31, 2024 → Long-term partner to GPs, offering an integrated set of solutions and a dedicated team to address their most important strategic decisions → Raise private capital from institutional and third -party investors for funds and single -asset transactions → Provide GP- and LP-led liquidity solutions across existing fund investments – Single- and multi-asset continuation vehicles, strip sales, LP stakes portfolios and fund- level financings → Provide strategic advisory regarding stake sales to Partners and Founders of private equity firms Private Funds Advisory
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By Deal Count Assets ($B) Lehman Brothers Holdings Inc. 691 Washington Mutual Inc.1 328 Sunac China Holdings Limited 304 WorldCom Inc. 104 General Motors Corporation 91 CIT Group Inc. 80 PG&E Corp. (Pacific Gas) (2019) 71 Enron Corp. 66 Conseco Inc. 61 Energy Future Holdings Corp. 41 MF Global Holdings Ltd. 41 Chrysler LLC 39 AIG Financial Products Corp. 38 Thornburg Mortgage Inc. 37 Pacific Gas & Electric (2004)2 36 Deepest bench in the industry with 54 Managing Directors and 240 total finance professionals as of March 31, 2024 A true global player, having dedicated resources in 17 offices worldwide and executed transactions in more than 60 countries since 2000 Extensive experience and flexibility to work on large global restructurings as well as mid-cap restructurings for debtors and creditors With contracting monetary policies and credit market instabilities, global restructuring activity has elevated and is expected to remain robust for the foreseeable future. We have maintained our market share throughout various economic cycles and continue to execute groundbreaking transactions in nearly all industries and geographies Top Global Restructuring Advisor 40 44 48 59 88 HOULIHAN LOKEY PJT Partners Lazard Rothschild & Co Parella Weinberg Partners LP Source: LSEG, BankruptcyData.com and Debtwire. Excludes sovereign debt. 1. Houlihan Lokey advised certain creditors of the Washington Mutual Receivership. 2. Houlihan Lokey advised a group of noteholders of Pacific Gas & Electric subsidiary National Energy Group Inc. 2024 Global Distressed Debt and Bankruptcy Restructuring Rankings Financial Restructuring 22 15 Largest Bankruptcies Advisor in 12 of the 15 Largest Bankruptcies 2000–2024
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Financial and Valuation Advisory 23 No. 1 Global M&A Fairness Opinion Advisor Over the Past 25 Years Note: As of December 31, 2024. Source: LSEG. Announced or completed transactions. Services Offered → Transaction (including Solvency) Opinions → Portfolio Valuation and Fund Advisory → Transaction Advisory Services → Corporate Valuation Advisory Services → Fund Opinions → Dispute Resolution Consulting Diversified Revenue Stream → Significant and growing revenues in massive global addressable markets → Diverse, full-cycle service portfolio balanced to mitigate volatility due to changing M&A markets → Low client concentration with more than 1,200 unique clients → Long-standing, sticky clients with over 50% of our FVA business being recurring in nature → Diverse client base, including corporate clients (public and private), financial sponsors, hedge funds, government agencies and entrepreneurially owned companies Operating Philosophy → Extending the HL brand and reputation as a premium provider and leading advisor in complex matters → Strengthening fee mix with larger -cap and public clients using value -added transaction driven services – Rapid growth in number of $1M+ clients → Client-centric, providing recurring and transaction -based services through the client’s full lifecycle → Market thought leader with innovative service offering, market indices and analytical tools → Realizing above -market revenue growth and margin targets Over the past 50 years, Houlihan Lokey has established one of the largest worldwide financial and valuation advisory practices Awarded the Best Valuation firm for Hard to Value Assets Globally for the Past 5 Years
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Houlihan Lokey has one of the largest Financial Sponsors Groups focused on mid and large-cap funds Most Active Investment Banks to Global P. E . 1 1 HOULIHAN LOKEY 217 2 Lincoln International 156 3 William Blair & Company 112 4 Lazard 96 5 Raymond James Financial 85 Broad and Deep Financial Sponsor Group → HL has 30 senior officers dedicated to the sponsor community in North America, Europe, and Japan as of FYE 2024 → Coverage of 1,300+ private equity firms, 300+ credit funds and 70+ family offices as of FYE 2024 → Organized geographically to ensure client coverage proximity → Each year, we work on hundreds of engagements for private equity groups and their portfolio companies → Sold over 800 companies to financial sponsors over the last five years → Buyout firms have approximately $950 billion of dry powder2 → Provide financial sponsors access to successful solutions – with coverage officers facilitating two-way information flow between sponsors and Houlihan Lokey In-Depth Data on Buyer Behavior Importance of Our Sponsor Relationships → Knowledge of and database on financial sponsor preferences and behavior through our relationships and deal flow → Collect and analyze comprehensive data on industry, size and general market trends Financial Sponsors Group 24 1. Represents number of transactions closed for the calendar year-to-date period ended December 31, 2023. Source: PitchBook. Excludes accounting firms and brokers. 2. As of March 31, 2024. US only. Source: Preqin.
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Private Equity Portfolio Company Inventory 25 Source: PitchBook as of December 31, 2024. Current Inventory of U.S. Private-Equity-Backed Companies (2014–2024) Given our strong market share serving the PE community, HL is well positioned to benefit from the growing number of portfolio companies held by private equity 4,524 7,186 7,213 7,526 7,821 8,290 8,760 9,209 9,701 10,386 10,865 11,283 11,710 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Greater than 5 Years Old Less than 5 Years Old
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Financial Overview 26
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Strong Top-Line Growth and Disciplined Expense 27 → Resilient business mix consisting of cyclical and countercyclical elements → Leader in each of our three business segments with ample growth opportunities Long history of revenue growth through various market cycles → Maintained double-digit adjusted pre-tax margins through downturns in the economy → Each business segment is similarly profitable to shareholders Consistent track record of profitability through market cycles → Minimal capital balance sheet requirements → Low leverage levels → Scalable model that can be further leveraged to support top-line growth Scalable, capital-light model Revenues Adjusted Pre-tax Margin1 Adjusted Net Income 1 Note: Fiscal year ended March 31. All dollar amounts in millions. 1. See page 30 for a description and reconciliation to the most directly comparable GAAP measures for relative year-to-date periods for fiscal 2024 and 2025. See page 31 for comparable historical GAAP figures and refer to previously filed earnings releases for historical adjustments. 2. Operated at higher margins due to temporarily lower non-compensation expenses as a result of COVID-19. $1,159 $1,525 $2,270 $1,809 $1,914 $1,394 $1,723 2020 2021 2022 2023 2024 9-mo ended 12/31/23 9-mo ended 12/31/24 24.3% 28.4% 29.9% 23.7% 23.0% 22.6% 25.5% 2020 2021² 2022² 2023 2024 9-mo ended 12/31/23 9-mo ended 12/31/24 $211 $317 $485 $315 $310 $223 $298 2020 2021² 2022² 2023 2024 9-mo ended 12/31/23 9-mo ended 12/31/24
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Business Segment Financials 28 Note: Fiscal year ended March 31. All dollar amounts in millions unless otherwise noted. Revenues By Business Segment 56% 53% 70% 62% 58% 59% 65% 30% 35% 17% 22% 27% 26% 22% 14% 12% 13% 16% 15% 15% 13% $1,159 $1,525 $2,270 $1,809 $1,914 $1,394 $1,723 2020 2021 2022 2023 2024 9-mo ended 12/31/2023 9-mo ended 12/31/2024 Corporate Finance Financial Restructuring Financial and Valuation Advisory
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Expense, Balance Sheet and Cash Management 29 Compensation Given our diversified business model, we are able to maintain a tight compensation ratio through market cycles Non-compensation We believe our annual non-compensation ratio is among the lowest of our publicly traded peers Operating Expenses We operate with extremely low levels of debt We maintain a revolver of $100 million which has remained largely undrawn We generate a significant amount of cash flow throughout the year We are focused on maintaining this balance sheet flexibility in order to enable us to be opportunistic, especially regarding acquisition opportunities Balance Sheet Health We are committed to the following principles: • Grow our quarterly dividend as the business grows • When possible, use cash to make acquisitions that are strategic as well as accretive to shareholders • If excess cash accumulates, return it to shareholders in the most efficient manner possible Shareholder Return
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Reconciliation of GAAP to Adjusted Financials 30 1. The aggregate of adjustments from employee compensation and benefits and non- compensation expenses. 2. Reflects the tax impact of utilizing the adjusted effective tax rate on the non-tax adjustments identified above. 3. Consists of all adjustments identified above net of the associated tax impact. (In thousands, except per share data) 2024 2023 2024 2023 Revenues $ 634,428 $ 511,130 $ 1,722,994 $ 1,393,948 Employee compensation and benefits expenses Employee compensation and benefits expenses (GAAP) $ 402,971 $ 324,039 $ 1,093,724 $ 884,064 Less: Acquisition related compensation and benefits (12,798) (9,694) (34,083) (26,786) Employee compensation and benefits expenses (adjusted) 390,173 314,345 1,059,641 857,278 Non-compensation expenses Non-compensation expenses (GAAP) $ 95,355 $ 90,551 $ 266,931 $ 249,720 Less: Acquisition related legal structure reorganization (3,619) $ (2,603) (4,824) $ (2,603) Less: Integration and acquisition related costs (4,668) (4,259) (8,222) (5,724) Less: Acquisition amortization (4,066) (1,560) (9,674) (8,275) Non-compensation expenses (adjusted) 83,002 82,129 244,211 233,118 Operating income Operating income (GAAP) $ 136,102 $ 96,540 $ 362,339 $ 260,164 Plus: Adjustments (1) 25,151 18,116 56,803 43,388 Operating income (adjusted) 161,253 114,656 419,142 303,552 Other income, net Other income, net (GAAP) $ (9,016) $ (6,035) $ (18,741) $ (12,336) Plus/(less): Change in acquisition earnout liability fair value — — (828) 816 Other income, net (adjusted) (9,016) (6,035) (19,569) (11,520) Provision for income taxes Provision for income taxes (GAAP) $ 49,816 $ 31,772 $ 103,289 $ 73,276 Plus: Impact of the excess tax benefit for stock vesting — — 21,921 7,299 Less: Reversal of deferred tax asset — — (1,690) — Less: Non-deductible acquisition related costs (1,462) (679) (1,462) (679) Adjusted provision for income taxes 48,354 31,093 122,058 79,896 Plus: Resulting tax impact (2) 8,380 5,491 18,525 12,516 Provision for income taxes (adjusted) 56,734 36,584 140,583 92,412 Net income Net income (GAAP) $ 95,302 $ 70,803 $ 277,791 $ 199,224 Plus/(less): Adjustments (3) 18,233 13,304 20,337 23,436 Net income (adjusted) $ 113,535 $ 84,107 $ 298,128 $ 222,660 Fully diluted shares outstanding Fully diluted shares outstanding (GAAP) 68,760,959 67,886,301 68,558,325 67,896,302 Plus: Impact of unvested GCA retention and deferred share awards 334,677 968,515 454,494 1,148,657 Fully diluted shares outstanding (adjusted) 69,095,636 68,854,816 69,012,819 69,044,959 Diluted EPS attributable to Houlihan Lokey, Inc, (GAAP) $ 1.39 $ 1.04 $ 4.05 $ 2.93 Diluted EPS attributable to Houlihan Lokey, Inc, (adjusted) $ 1.64 $ 1.22 $ 4.32 $ 3.22 Nine Months Ended December 31,Three Months Ended December 31,
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GAAP Pre-tax Income Comparable GAAP vs. Adjusted Financial Figures 31 Note: For fiscal years ended March 31. All dollar amounts in millions unless otherwise noted. GAAP Pre-tax Margin GAAP Net Income Adjusted Pre-tax Income Adjusted Pre-tax Margin Adjusted Net Income $224 $236 $409 $604 $324 $391 2019 2020 2021 2022 2023 2024 20.7% 20.3% 26.8% 26.6% 17.9% 20.4% 2019 2020 2021 2022 2023 2024 $159 $184 $313 $438 $254 $280 2019 2020 2021 2022 2023 2024 $264 $282 $434 $680 $428 $440 2019 2020 2021 2022 2023 2024 24.4% 24.3% 28.4% 29.9% 23.7% 23.0% 2019 2020 2021 2022 2023 2024 $189 $211 $317 $485 $315 $310 2019 2020 2021 2022 2023 2024
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Our Mission We will be recognized globally for providing the finest financial advice and service to our clients and the best place to work for our colleagues. We help our clients achieve superior outcomes by providing thoughtful, caring advice while acting with honor and integrity We are strategic in our approach to growth and are committed to creating lasting value for our shareholders We maintain an intellectually stimulating, fair and fun place to work We seek to improve our local and global communities through the responsible and direct actions of our firm and its people Our Vision 32
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HL.com