Filing Flows › Houlihan Lokey (HLI) › Q3 FY26
Houlihan Lokey (HLI) Q3 FY26 earnings results (third quarter fiscal 2026)
10-Q filed Feb 3, 2026
Houlihan Lokey (HLI) reported revenue of $717M for the third quarter fiscal 2026 (Q3 FY26), +13% from a year earlier and +9% from the quarter before. Operating margin was 22.4%, net earnings $117M (16.3% of revenue).
Houlihan Lokey, Q3 FY26: revenue $717M (+13% year over year), operating margin 22.4%, net earnings $117M, operating cash flow $218M. The chart follows the revenue to costs, profit and cash.
| Q3 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $717M | +9% | +13% |
| Gross profit | $231M | +4% | +16% |
| Operating profit | $161M | +6% | +18% |
| Net earnings | $117M | +5% | +22% |
| Operating cash flow | $218M | -33% | -18% |
| Free cash flow | $217M | -33% | -17% |
What changed
Revenue was $717.1M in Q3 FY26, up 13% year over year and up 9% from the previous quarter.
Gross margin was 32.2%, up 0.8 points from a year earlier. Operating profit was $160.7M, a 22.4% margin (up 1.0 points year over year). Of the extra revenue versus a year earlier, 30% reached operating profit, above the 21% margin then. Operating expenses grew 11% against revenue growth of 13%. Net earnings were $116.5M, up 22% year over year. The effective tax rate was 31.3%.
Operating cash flow was $218.1M (down 18% year over year), 187% of net earnings. Non-cash charges added back $8.6M of depreciation and amortization and $60.9M of share-based compensation. Working capital and other items added $32.0M. Capital expenditures of $1.1M left free cash flow of $217.0M.
Questions
What was Houlihan Lokey's revenue in the third quarter fiscal 2026?
Houlihan Lokey (HLI) reported revenue of $717M for the third quarter fiscal 2026 (Q3 FY26), +13% from a year earlier and +9% from the quarter before.
Was Houlihan Lokey profitable in the third quarter fiscal 2026?
Operating profit was $161M (22.4% of revenue) and net earnings $117M.
Source: Houlihan Lokey 10-Q on SEC EDGAR.