Filing Flows › Houlihan Lokey (HLI) › Q2 FY26
Houlihan Lokey (HLI) Q2 FY26 earnings results (second quarter fiscal 2026)
10-Q filed Nov 4, 2025
Houlihan Lokey (HLI) reported revenue of $660M for the second quarter fiscal 2026 (Q2 FY26), +15% from a year earlier and +9% from the quarter before. Operating margin was 22.9%, net earnings $111M (16.8% of revenue).
Houlihan Lokey, Q2 FY26: revenue $660M (+15% year over year), operating margin 22.9%, net earnings $111M, operating cash flow $325M. The chart follows the revenue to costs, profit and cash.
| Q2 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $660M | +9% | +15% |
| Gross profit | $222M | +18% | +17% |
| Operating profit | $151M | +68% | +16% |
| Net earnings | $111M | +13% | +19% |
| Operating cash flow | $325M | — | +12% |
| Free cash flow | $323M | — | +16% |
What changed
Revenue was $660.0M in Q2 FY26, up 15% year over year and up 9% from the previous quarter.
Gross margin was 33.6%, up 0.6 points from a year earlier. Operating profit was $151.0M, a 22.9% margin (up 0.2 points year over year). Of the extra revenue versus a year earlier, 24% reached operating profit, above the 23% margin then. Operating expenses grew 20% against revenue growth of 15%. Net earnings were $111.0M, up 19% year over year. The effective tax rate was 30.4%.
Operating cash flow was $325.0M (up 12% year over year), 293% of net earnings. Non-cash charges added back $10.0M of depreciation and amortization and $46.6M of share-based compensation. Working capital and other items added $157.4M. Capital expenditures of $2.0M left free cash flow of $323.0M.
Questions
What was Houlihan Lokey's revenue in the second quarter fiscal 2026?
Houlihan Lokey (HLI) reported revenue of $660M for the second quarter fiscal 2026 (Q2 FY26), +15% from a year earlier and +9% from the quarter before.
Was Houlihan Lokey profitable in the second quarter fiscal 2026?
Operating profit was $151M (22.9% of revenue) and net earnings $111M.
Source: Houlihan Lokey 10-Q on SEC EDGAR.