HOULIHAN LOKEY, INC.HLI
HOULIHAN LOKEY, INC. Segments Disclosure
Segment and Geographical Information
The Company’s 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 payments to corporate employees, as well as expenses of senior management and corporate departmental functions managed on a worldwide basis, including office of the executives, accounting, human capital, marketing, information technology, and legal and compliance.
The following tables present information about revenues, profit and assets by segment and geography. The Company's Chief Operating Decision Maker ("CODM") is its Chief Executive Officer. The CODM oversees the performance of the Company's three reportable segments by analyzing their financial metrics, including revenues by segment and segment profit. The financial metrics the CODM regularly receives does not include asset information and the CODM does not use segment asset information to assess performance or allocate resources.
Year Ended March 31, | |||||||||||||||||
| 2026 | 2025 | 2024 | |||||||||||||||
| Revenues by segment | |||||||||||||||||
| Corporate Finance | $ | 1,744,634 | $ | 1,526,756 | $ | 1,106,826 | |||||||||||
| Financial Restructuring | 528,655 | 544,478 | 521,984 | ||||||||||||||
| Financial and Valuation Advisory | 344,227 | 318,182 | 285,594 | ||||||||||||||
| Revenues | 2,617,516 | 2,389,416 | 1,914,404 | ||||||||||||||
Employee compensation and benefits by segment (1) | |||||||||||||||||
| Corporate Finance | 965,291 | 871,313 | 638,072 | ||||||||||||||
| Financial Restructuring | 299,614 | 289,979 | 282,431 | ||||||||||||||
| Financial and Valuation Advisory | 188,526 | 175,412 | 155,502 | ||||||||||||||
| Non-compensation expense by segment | |||||||||||||||||
| Corporate Finance | 198,103 | 181,020 | 166,221 | ||||||||||||||
| Financial Restructuring | 49,948 | 45,193 | 45,437 | ||||||||||||||
| Financial and Valuation Advisory | 62,119 | 54,187 | 55,670 | ||||||||||||||
| Segment profit | |||||||||||||||||
| Corporate Finance | 581,240 | 474,423 | 302,533 | ||||||||||||||
| Financial Restructuring | 179,093 | 209,306 | 194,116 | ||||||||||||||
| Financial and Valuation Advisory | 93,582 | 88,583 | 74,422 | ||||||||||||||
| Total segment profit | 853,915 | 772,312 | 571,071 | ||||||||||||||
| Corporate expenses | 326,896 | 269,745 | 197,837 | ||||||||||||||
| Other (income) expense, net | (35,246) | (28,768) | (17,305) | ||||||||||||||
| Income before provision for income taxes | $ | 562,265 | $ | 531,335 | $ | 390,539 | |||||||||||
(1)We adjust the compensation expense for a business segment in situations where an employee residing in one business segment is performing work in another business segment where the revenues are accrued. Segment profit may vary significantly between periods depending on the levels of collaboration among the different segments.
| March 31, 2026 | March 31, 2025 | ||||||||||
| Assets by segment | |||||||||||
| Corporate Finance | $ | 1,476,768 | $ | 1,312,291 | |||||||
| Financial Restructuring | 179,073 | 179,498 | |||||||||
| Financial and Valuation Advisory | 223,008 | 207,162 | |||||||||
| Total segment assets | 1,878,849 | 1,698,951 | |||||||||
| Corporate assets | 2,430,106 | 2,120,757 | |||||||||
| Total assets | $ | 4,308,955 | $ | 3,819,708 | |||||||
Year Ended March 31, | |||||||||||||||||
| 2026 | 2025 | 2024 | |||||||||||||||
| Revenues by geography: | |||||||||||||||||
| United States | $ | 1,775,335 | $ | 1,702,163 | $ | 1,344,305 | |||||||||||
| International | 842,181 | 687,253 | 570,099 | ||||||||||||||
| Revenues | $ | 2,617,516 | $ | 2,389,416 | $ | 1,914,404 | |||||||||||
| March 31, 2026 | March 31, 2025 | ||||||||||
| Assets by geography | |||||||||||
| United States | $ | 2,634,651 | $ | 2,439,032 | |||||||
| International | 1,674,304 | 1,380,676 | |||||||||
| Total assets | $ | 4,308,955 | $ | 3,819,708 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | May 22, 2026 | Showing above |
| 2025 | May 15, 2025 | |
| 2024 | May 21, 2024 | |
| 2023 | May 25, 2023 | |
| 2022 | May 27, 2022 | |
| 2021 | May 21, 2021 | |
| 2020 | May 15, 2020 | |
| 2019 | May 24, 2019 | |
| 2018 | May 25, 2018 | |
| 2017 | Jun 13, 2017 | |
| 2016 | Jun 23, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.