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How Houlihan Lokey (HLI) makes money

Houlihan Lokey (HLI) made $692M of revenue in the second quarter fiscal 2027 (Q2 FY27), +5% from a year earlier. Of every dollar of revenue, 35¢ was left as gross profit, 22¢ was left as operating profit, 16¢ was left as net earnings.

Drawing the Sankey…

Houlihan Lokey revenue by quarterHoulihan Lokey revenue by quarter$666MQ4 FY25$605MQ1 FY26$660MQ2 FY26$717MQ3 FY26$636MQ4 FY26$511MQ1 FY27$692MQ2 FY27
Houlihan Lokey: where each dollar of revenue goesHoulihan Lokey: where each dollar of revenue goesCost of revenue65¢Gross profit35¢Operating expenses12¢Operating profit22¢Income tax7¢Net earnings16¢Operating cash flow36¢Free cash flow35¢

Where each dollar of revenue goes

LineQ2 FY27% of revenue
Revenue$692M100.0%
Cost of revenue$453M65.5%
Gross profit$239M34.5%
Operating expenses$85.0M12.3%
Operating profit$154M22.3%
Income tax$49.0M7.1%
Net earnings$109M15.8%
Operating cash flow$252M36.4%
Free cash flow$240M34.7%

Revenue, quarter by quarter

QuarterRevenueY/Y
Q2 FY27$692M+5%
Q1 FY27$511M-16%
Q4 FY26$636M-5%
Q3 FY26$717M+13%
Q2 FY26$660M+15%
Q1 FY26$605M+18%
Q4 FY25$666M+28%

From Houlihan Lokey's 10-Q filed Oct 30, 2026 (on EDGAR).

Questions

How does Houlihan Lokey make money?

Houlihan Lokey (HLI) made $692M of revenue in the second quarter fiscal 2027 (Q2 FY27), +5% from a year earlier. Of every dollar of revenue, 35¢ was left as gross profit, 22¢ was left as operating profit, 16¢ was left as net earnings.

What is Houlihan Lokey's profit margin?

Net earnings were $109M, 15.8% of revenue, in the second quarter fiscal 2027; the operating margin was 22.3%.

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Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.