10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

☒    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2022

OR

☐    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to ______________

Commission File Number: 001-37537

Houlihan Lokey, Inc.
(Exact name of registrant as specified in its charter)
Delaware	95-2770395
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

10250 Constellation Blvd.

5th Floor

Los Angeles, California 90067

(Address of principal executive offices) (Zip Code)

(310) 788-5200

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, par value $0.001	HLI	New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes    x  No  ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” "smaller reporting company" and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

As of October 31, 2022, the registrant had 49,850,823 shares of Class A common stock, $0.001 par value per share, and 18,802,093 shares of Class B common stock, $0.001 par value per share, outstanding.

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

TABLE OF CONTENTS

		Page
	PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements	1
	Consolidated Balance Sheets	1
	Consolidated Statements of Comprehensive Income	2
	Consolidated Statements of Changes in Stockholders' Equity	3
	Consolidated Statements of Cash Flows	5
	Notes to Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	37
Item 4.	Controls and Procedures	38
	PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	38
Item 1A.	Risk Factors	38
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	38
Item 3.	Defaults Upon Senior Securities	39
Item 4.	Mine Safety Disclosures	39
Item 5.	Other Information	39
Item 6.	Exhibits	40
Signatures		41

PART I. FINANCIAL INFORMATION

Item 1.    Financial Statements

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(In thousands, except share data and par value)	September 30, 2022		March 31, 2022
Assets
Cash and cash equivalents	$	503,806	$	833,697
Restricted cash	373		373
Investment securities	35,742		109,143
Accounts receivable, net of allowance for credit losses of $7,698 and $8,954, respectively	135,191		144,029
Unbilled work in progress, net of allowance for credit losses of $6,974 and $4,320, respectively	155,935		104,751
Deferred income taxes	112,092		95,278
Property and equipment, net	62,206		52,176
Operating lease right-of-use assets	168,291		171,942
Goodwill	1,051,294		1,070,442
Other intangible assets, net	214,598		247,333
Other assets	70,671		57,646
Total assets	$	2,510,199	$	2,886,810
Liabilities and Stockholders' Equity
Liabilities:
Accrued salaries and bonuses	$	685,568	$	953,604
Accounts payable and accrued expenses	98,182		126,190
Deferred income	35,482		28,753
Income taxes payable	3,869		61,266
Deferred income taxes	538		789
Loans payable to former shareholders	506		539
Operating lease liabilities	188,937		197,091
Other liabilities	50,449		74,873
Total liabilities	1,063,531		1,443,105
Commitments and contingencies (Note 17)
Stockholders' equity:
Class A common stock, $0.001 par value. Authorized 1,000,000,000 shares; issued and outstanding 49,780,875 and 49,853,564 shares, respectively	50		50
Class B common stock, $0.001 par value. Authorized 1,000,000,000 shares; issued and outstanding 18,874,122 and 17,649,555 shares, respectively	19		18
Additional paid-in capital	559,605		564,761
Retained earnings	981,204		922,223
Accumulated other comprehensive loss	(94,210)		(43,347)
Total stockholders' equity	1,446,668		1,443,705
Total liabilities and stockholders' equity	$	2,510,199	$	2,886,810

See accompanying Notes to Consolidated Financial Statements

1

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

	Three Months Ended September 30,				Six Months Ended September 30,
(In thousands, except share and per share data)	2022		2021		2022		2021
Revenues	$	489,537	$	537,272	$	908,181	$	909,994
Operating expenses:
Employee compensation and benefits	309,859		333,374		575,594		565,678
Travel, meals, and entertainment	12,370		4,687		23,420		6,374
Rent	13,285		9,050		25,075		19,275
Depreciation and amortization	19,475		4,344		38,618		8,515
Information technology and communications	13,183		8,858		24,173		15,819
Professional fees	9,598		6,915		16,067		13,616
Other operating expenses	22,396		12,725		38,293		15,722
Total operating expenses	400,166		379,953		741,240		644,999
Operating income	89,371		157,319		166,941		264,995
Other expense, net	5,104		853		6,853		752
Income before provision for income taxes	84,267		156,466		160,088		264,243
Provision for income taxes	23,537		43,583		28,576		65,400
Net income	60,730		112,883		131,512		198,843
Other comprehensive income, net of tax:
Foreign currency translation adjustments	(28,554)		(6,037)		(50,863)		(4,412)
Comprehensive income attributable to Houlihan Lokey, Inc.	$	32,176	$	106,846	$	80,649	$	194,431
Attributable to Houlihan Lokey, Inc. common stockholders:
Weighted average shares of common stock outstanding:
Basic	63,422,701		65,156,968		63,350,545		65,433,649
Fully diluted	69,800,028		68,566,127		69,316,792		68,641,962
Earnings per share (Note 13)
Basic	$	0.96	$	1.73	$	2.08	$	3.04
Fully diluted	$	0.87	$	1.65	$	1.90	$	2.90

See accompanying Notes to Consolidated Financial Statements

2

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

(UNAUDITED)

	Class A Common Stock			Class B Common Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Stockholders' Equity
(In thousands, except share data)	Shares	$		Shares	$		$		$		$		$
Balances – July 1, 2022	49,649,765	$	50	19,136,952	$	19	$	527,666	$	955,484	$	(65,656)	$	1,417,563
Shares issued	—	—		32,310	—		—		—		—		—
Stock compensation vesting (Note 14)	—	—		—	—		40,195		—		—		40,195
Dividends	—	—		—	—		—		(35,010)		—		(35,010)
Conversion of Class B to Class A shares	231,367	—		(231,367)	—		—		—		—		—
Other shares repurchased/forfeited	(100,257)	—		(63,773)	—		(8,256)		—		—		(8,256)
Net income	—	—		—	—		—		60,730		—		60,730
Change in unrealized translation	—	—		—	—		—		—		(28,554)		(28,554)
Total comprehensive income	—	—		—	—		—		60,730		(28,554)		32,176
Balances – September 30, 2022	49,780,875	$	50	18,874,122	$	19	$	559,605	$	981,204	$	(94,210)	$	1,446,668

	Class A Common Stock			Class B Common Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Stockholders' Equity
(In thousands, except share data)	Shares	$		Shares	$		$		$		$		$
Balances – July 1, 2021	51,091,269	$	51	17,745,973	$	18	$	745,705	$	657,375	$	(18,551)	$	1,384,598
Shares issued	—	—		31,867	—		2,615		—		—		2,615
Stock compensation vesting (Note 14)	—	—		—	—		17,717		—		—		17,717
Dividends	—	—		—	—		—		(28,580)		—		(28,580)
Conversion of Class B to Class A shares	384,632	—		(384,632)	—		—		—		—		—
Other shares repurchased/forfeited	(548,896)	—		(44,903)	(1)		(45,458)		—		—		(45,459)
Net income	—	—		—	—		—		112,883		—		112,883
Change in unrealized translation	—	—		—	—		—		—		(6,037)		(6,037)
Total comprehensive income	—	—		—	—		—		112,883		(6,037)		106,846
Balances – September 30, 2021	50,927,005	$	51	17,348,305	$	17	$	720,579	$	741,678	$	(24,588)	$	1,437,737

See accompanying Notes to Consolidated Financial Statements

3

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

(UNAUDITED)

	Class A Common Stock			Class B Common Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Stockholders' Equity
(In thousands, except share data)	Shares	$		Shares	$		$		$		$		$
Balances – April 1, 2022	49,853,564	$	50	17,649,555	$	18	$	564,761	$	922,223	$	(43,347)	$	1,443,705
Shares issued	—	—		2,304,890	2		6,019		—		—		6,021
Stock compensation vesting (Note 14)	—	—		—	—		79,362		—		—		79,362
Dividends	—	—		—	—		—		(72,531)		—		(72,531)
Conversion of Class B to Class A shares	497,859	—		(497,859)	—		—		—		—		—
Shares issued to non-employee directors (Note 14)	6,739	—		—	—		570		—		—		570
Other shares repurchased/forfeited	(577,287)	—		(582,464)	(1)		(91,107)		—		—		(91,108)
Net income	—	—		—	—		—		131,512		—		131,512
Change in unrealized translation	—	—		—	—		—		—		(50,863)		(50,863)
Total comprehensive income	—	—		—	—		—		131,512		(50,863)		80,649
Balances – September 30, 2022	49,780,875	$	50	18,874,122	$	19	$	559,605	$	981,204	$	(94,210)	$	1,446,668

	Class A Common Stock			Class B Common Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Stockholders' Equity
(In thousands, except share data)	Shares	$		Shares	$		$		$		$		$
Balances – April 1, 2021	51,245,442	$	51	16,951,696	$	17	$	803,573	$	600,096	$	(20,176)	$	1,383,561
Shares issued	—	—		2,014,510	2		14,638		—		—		14,640
Stock compensation vesting (Note 14)	—	—		—	—		49,014		—		—		49,014
Dividends	—	—		—	—		—		(57,261)		—		(57,261)
Conversion of Class B to Class A shares	1,103,085	1		(1,103,085)	(1)		—		—		—		—
Shares issued to non-employee directors (Note 14)	6,512	—		—	—		—		—		—		—
Other shares repurchased/forfeited	(1,428,034)	(1)		(514,816)	(1)		(146,646)		—		—		(146,648)
Net income	—	—		—	—		—		198,843		—		198,843
Change in unrealized translation	—	—		—	—		—		—		(4,412)		(4,412)
Total comprehensive income	—	—		—	—		—		198,843		(4,412)		194,431
Balances – September 30, 2021	50,927,005	$	51	17,348,305	$	17	$	720,579	$	741,678	$	(24,588)	$	1,437,737

See accompanying Notes to Consolidated Financial Statements

4

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Six Months Ended September 30,
(In thousands)	2022		2021
Cash flows from operating activities:
Net income	$	131,512	$	198,843
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income taxes	(14,088)		(8,068)
Provision for bad debts, net	6,103		5,559
Unrealized losses on investment securities	2,140		575
Non-cash lease expense	14,554		10,951
Depreciation and amortization	38,618		8,515
Contingent consideration valuation	2,869		—
Compensation expense – equity and liability classified share awards (Note 14)	82,006		53,246
Changes in operating assets and liabilities:
Accounts receivable	5,388		(24,388)
Unbilled work in progress	(53,837)		2,383
Other assets	(13,025)		7,732
Accrued salaries and bonuses	(264,724)		(69,542)
Accounts payable and accrued expenses and other	(79,174)		(19,434)
Deferred income	6,729		(945)
Income taxes payable	(57,988)		(45,309)
Net cash provided by/(used in) operating activities	(192,917)		120,118
Cash flows from investing activities:
Purchases of investment securities	(11,263)		(24,721)
Sales or maturities of investment securities	82,524		192,339
Acquisition of business, net of cash acquired	—		(304)
Purchase of property and equipment, net	(17,796)		(2,500)
Net cash provided by investing activities	53,465		164,814
Cash flows from financing activities:
Dividends paid	(73,812)		(59,504)
Share repurchases	(48,905)		(112,946)
Payments to settle employee tax obligations on share-based awards	(42,191)		(33,700)
Earnouts paid	(2,078)		(1,723)
Loans payable to former shareholders redeemed	(33)		(107)
Repayments of loans to non-affiliates	(2,488)		—
Other financing activities	570		478
Net cash used in financing activities	(168,937)		(207,502)
Effects of exchange rate changes on cash, cash equivalents, and restricted cash	(21,502)		(1,272)
Net increase/(decrease) in cash, cash equivalents, and restricted cash	(329,891)		76,158
Cash, cash equivalents, and restricted cash – beginning of period	834,070		847,224
Cash, cash equivalents, and restricted cash – end of period	$	504,179	$	923,382
Supplemental disclosures of non-cash activities:
Shares issued via vesting of liability classified awards	$	5,955	$	4,270
Fully amortized intangibles written off	—		2,000
Cash acquired through acquisitions	$	—	$	15,285
Cash paid during the period:
Interest	$	1,861	$	454
Taxes, net of refunds	102,418		118,685

See accompanying Notes to Consolidated Financial Statements

5

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(In thousands, except share data or as otherwise stated)

Note 1 — Background

Houlihan Lokey, Inc. ("Houlihan Lokey" or "HL, Inc.," also referred to as the "Company," "we," "our," or "us") is a Delaware corporation that controls the following primary subsidiaries:

•Houlihan Lokey Capital, Inc., a California corporation ("HL Capital, Inc."), is a wholly-owned direct subsidiary of HL, Inc. HL Capital, Inc. is registered as a broker-dealer under Section 15(b) of the Securities Exchange Act of 1934 and a member of Financial Industry Regulatory Authority, Inc.

•Houlihan Lokey Financial Advisors, Inc., a California corporation ("HL FA, Inc."), is a wholly-owned direct subsidiary of HL, Inc.

•HL Finance, LLC ("HL Finance"), a syndicated leveraged finance platform established to arrange senior secured leveraged loans for financial sponsor-backed, privately-held, and public corporate entities. HL Finance acts as an arranger on syndicated loan transactions and has entered into an agreement with an unaffiliated third party investor that may provide commitments with respect to certain syndicated loans arranged by HL Finance.

•Houlihan Lokey EMEA, LLP, a limited liability partnership registered in England ("HL EMEA, LLP"), is an indirect subsidiary of HL, Inc. HL EMEA, LLP is regulated by the Financial Conduct Authority in the United Kingdom ("U.K.").

The Company offers financial services and financial advice to a broad clientele located through more than thirty offices in the United States of America, Europe, the Middle East, and the Asia-Pacific region. Together, the Company and its subsidiaries form an organization that provides financial services to meet a wide variety of client needs. The Company concentrates its efforts toward the earning of professional fees with focused services across the following three business segments:

•Corporate Finance ("CF") provides general financial advisory services in addition to advice on mergers and acquisitions and capital markets offerings. We advise public and private institutions on a wide variety of situations, including buy-side and sell-side transactions, as well as leveraged loans, private mezzanine debt, high-yield debt, initial public offerings, follow-ons, convertibles, equity private placements, private equity, and liability management transactions, and advise financial sponsors on all types of transactions. The majority of our CF revenues consists of fees paid upon the successful completion of the transaction or engagement ("Completion Fees"). A CF transaction can fail to be completed for many reasons that are outside of our control. In these instances, our fees are generally limited to the fees paid at the time an engagement letter is signed ("Retainer Fees") and in some cases fees paid during the course of the engagement ("Progress Fees") that may have been received.

•Financial Restructuring ("FR") provides advice to debtors, creditors and other parties-in-interest in connection with recapitalization/deleveraging transactions implemented both through bankruptcy proceedings and through out-of-court exchanges, consent solicitations or other mechanisms, as well as in distressed mergers and acquisitions and capital markets activities. As part of these engagements, our FR business segment offers a wide range of advisory services to our clients, including: the structuring, negotiation, and confirmation of plans of reorganization; structuring and analysis of exchange offers; corporate viability assessment; dispute resolution and expert testimony; and procuring debtor-in-possession financing. Although atypical, FR transactions can fail to be completed for many reasons that are outside of our control. In these instances, our fees are generally limited to the Retainer Fees and/or Progress Fees.

•Financial and Valuation Advisory ("FVA") primarily provides valuations of various assets, including: companies; illiquid debt and equity securities; and intellectual property (among other assets and liabilities). These valuations are used for financial reporting, tax reporting, and other purposes. In addition, our FVA business segment renders fairness opinions in connection with mergers and acquisitions and other transactions, and solvency opinions in connection with corporate spin-offs and dividend recapitalizations, and other types of financial opinions in connection with other transactions. Also, our FVA business segment provides dispute resolution services to clients where fees are usually based on the hourly rates of our financial professionals. Unlike our CF or FR segments, the fees generated in our FVA segment are generally not contingent on the successful completion of a transaction.

6

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

(In thousands, except share data or as otherwise stated)

Note 2 — Summary of Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. ("GAAP"), pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the "SEC"), and include all information and footnotes required for consolidated financial statement presentation. The results of operations for the six months ended September 30, 2022 are not necessarily indicative of the results of operations to be expected for the fiscal year ending March 31, 2023. The unaudited interim consolidated financial statements and notes to consolidated financial statements should be read in conjunction with the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2022 (the "2022 Annual Report").

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its subsidiaries where it has a controlling financial interest. All intercompany balances and transactions have been eliminated.

The Company carries its investments in unconsolidated entities over which it has significant influence but does not control using the equity method, and includes its ownership share of the income and losses in Other expense, net in the Consolidated Statements of Comprehensive Income.

The Company’s equity method investments include variable interest entities (VIEs), which are defined as entities in which equity investors (i) do not have the characteristics of a controlling financial interest, and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The entity that consolidates a VIE is known as its primary beneficiary, and is generally the entity with (i) the power to direct the activities that most significantly impact the VIE’s economic performance, and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE.

Our involvement with VIEs arises from our variable interest related to a special purpose acquisition company of which the Company is a sponsor. The Company's exposure to loss from such VIEs is not material to our operating results and financial position.

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements. Management estimates and assumptions also affect the reported amounts of revenues and expenses during the reporting period, and disclosure of contingent assets and liabilities at the reporting date. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. Management adjusts such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Items subject to such estimates and assumptions include, but are not limited to: the allowance for credit losses; the valuation of deferred tax assets, valuation of acquired intangibles and goodwill, accrued expenses, and share based compensation; the allocation of goodwill and other assets across the reporting units (segments); and reserves for income tax uncertainties and other contingencies.

Revenues

Revenues consist of fee revenues from advisory services and reimbursed costs incurred in fulfilling the contracts. Revenues reflect fees generated from our CF, FR, and FVA business segments.

The Company generates revenues from contractual advisory services and reimbursed costs incurred in fulfilling the contracts for such services. Revenues for all three business segments (CF, FR, and FVA) are recognized upon satisfaction of the performance obligation, which may be satisfied over time or at a point in time. The amount and timing of the fees paid vary by the type of engagement.

7

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

(In thousands, except share data or as otherwise stated)

The amount of revenue recognized reflects the consideration we expect to be entitled to in exchange for those promised services (i.e., the “transaction price”). In determining the transaction price, we consider multiple factors, including the effects of variable consideration. Variable consideration is included in the transaction price only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainties with respect to the amount are resolved. In determining when to include variable consideration in the transaction price, we consider the range of possible outcomes, the predictive value of our past experiences, the time period of when uncertainties expect to be resolved and the amount of consideration that is susceptible to factors outside of our influence, such as market volatility or the judgment and actions of third parties. The substantial majority of the Company’s advisory fees (i.e., the success related Completion Fees) are considered variable and constrained as they are contingent upon a future event which includes factors outside of our control (e.g., completion of a transaction or third party emergence from bankruptcy or approval by the court).

Revenues for all three business segments are recognized upon satisfaction of the performance obligation and may be satisfied over time or at a point in time. The amount and timing of the fees paid vary by the type of engagement.

Revenues from CF engagements primarily consist of fees generated in connection with advisory services related to corporate finance, mergers and acquisitions, and capital markets offerings. Completion Fees from these engagements are recognized at a point in time when the related transaction has been effectively closed. At that time, the Company has transferred control of the promised service and the customer obtains control. CF contracts generally contain a variety of promised services that may be capable of being distinct, but they are not distinct within the context of the contract as the various services are inputs to the combined output of successfully brokering a specific transaction.

Revenues from FR engagements primarily consist of fees generated in connection with advisory services to debtors, creditors and other parties-in-interest involving recapitalization or deleveraging transactions implemented both through bankruptcy proceedings and through out-of-court exchanges, consent solicitations or other mechanisms, as well as in distressed mergers and acquisitions and capital markets activities. Retainer Fees and Progress Fees from restructuring engagements are recognized over time using a time elapsed measure of progress as our clients simultaneously receive and consume the benefits of those services as they are provided. Completion Fees from these engagements are considered variable and constrained until the related transaction has been effectively closed as they are contingent upon a future event, which includes factors outside of our control (e.g., completion of a transaction or third party emergence from bankruptcy or approval by the court).

Revenues from FVA engagements primarily consist of fees generated in connection with valuation and diligence services and rendering fairness, solvency and other financial opinions. Revenues are recognized at a point in time as these engagements include a singular objective that does not transfer any notable value to the Company’s clients until the opinions have been rendered and delivered to the client. However, certain engagements consist of advisory services where fees are usually based on the hourly rates of our financial professionals. Such revenues are recognized over time as the benefits of these advisory services are transferred to the Company’s clients throughout the course of the engagement, and, as a practical expedient, the Company has elected to use the ‘as-invoiced’ approach to recognize revenue.

Taxes, including value added taxes, collected from customers and remitted to governmental authorities are accounted for on a net basis, and therefore, are excluded from revenue in the Consolidated Statements of Comprehensive Income.

Operating Expenses

The majority of the Company’s operating expenses are related to compensation for employees, which includes the amortization of the relevant portion of the Company’s share-based incentive plans (Note 14). Other types of operating expenses include: Travel, meals, and entertainment; Rent; Depreciation and amortization; Information technology and communications; Professional fees; and Other operating expenses.

Translation of Foreign Currency Transactions

The reporting currency for the consolidated financial statements of the Company is the U.S. dollar. The assets and liabilities of subsidiaries whose functional currency is other than the U.S. dollar are included in the consolidation by translating the assets and liabilities at the reporting period-end exchange rates; however, revenues and expenses are translated using the applicable exchange rates determined on a monthly basis throughout the fiscal year. Resulting translation adjustments are reported as a separate component of Accumulated other comprehensive loss, net of applicable taxes.

8

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

(In thousands, except share data or as otherwise stated)

From time to time, we enter into transactions to hedge our exposure to certain foreign currency fluctuations through the use of derivative instruments or other methods. As of September 30, 2022, we had two foreign currency forward contracts outstanding between the pound sterling and the euro with notional values of €7.5 million and €0.5 million. As of September 30, 2021, we had one foreign currency forward contract outstanding between the pound sterling and the euro with a notional value of €1.7 million. The change in fair value of these contracts represented a net loss included in Other operating expenses of $(232) and $(7) during the three months ended September 30, 2022 and September 30, 2021, respectively.

Fair Value Measurements

The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels in accordance with Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurement:

•Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date.

•Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.

•Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date.

For Level 3 investments in which pricing inputs are unobservable and limited market activity exists, management's determination of fair value is based upon the best information available, and may incorporate management's own assumptions or involve a significant degree of judgment.

The following methods and assumptions were used by the Company in estimating fair value disclosures:

•Corporate debt securities: All fair value measurements are obtained from a third-party pricing service and are not adjusted by management.

•U.S. treasury securities: Fair values for U.S. treasury securities are based on quoted prices from recent trading activity of identical or similar securities. All fair value measurements are obtained from a third-party pricing service and are not adjusted by management.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given investment is based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and consideration of factors specific to the instrument.

The fair values of the financial instruments represent the amounts that would be received to sell assets or that would be paid to transfer liabilities in an orderly transaction between market participants as of a specified date. Fair value measurements maximize the use of observable inputs; however, in situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects the Company’s own judgments about the assumptions that market participants would use in pricing the asset or liability. Those judgments are developed by the Company based on the best information available in the circumstances, including expected cash flows and appropriately risk-adjusted discount rates, as well as available observable and unobservable inputs.

The carrying value of Cash and cash equivalents, Restricted cash, Accounts receivable, Unbilled work in progress, Accounts payable and accrued expenses, and Deferred income approximates fair value due to the short maturity of these instruments.

9

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

(In thousands, except share data or as otherwise stated)

The carrying value of the loans to employees included in Other assets, Loans payable to former shareholders, and an unsecured loan which is included in Loan payable to non-affiliate approximates fair value due to the variable interest rate borne by those instruments.

Cash and Cash Equivalents, and Restricted Cash

Cash and cash equivalents include cash held at banks and highly liquid investments with original maturities of three months or less. As of September 30, 2022 and March 31, 2022, the Company had cash balances with banks in excess of insured limits. The Company believes it is not exposed to any significant credit risk with respect to Cash and cash equivalents.

The following table provides a reconciliation of Cash and cash equivalents, and Restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Consolidated Statements of Cash Flows.     

	September 30, 2022		March 31, 2022
Cash and cash equivalents	$	503,806	$	833,697
Restricted cash (1)	373		373
Total cash, cash equivalents, and restricted cash	$	504,179	$	834,070

(1)Restricted cash as of September 30, 2022 and March 31, 2022 consisted of a cash secured letter of credit issued for our Frankfurt office.

Investment Securities

Investment securities consist primarily of corporate debt and U.S. treasury securities with original maturities over 90 days. The Company classifies its corporate debt and U.S. treasury securities as trading and measures them at fair value in the Consolidated Balance Sheets. Unrealized holding gains and losses for trading securities are included in Other operating expenses in the accompanying Consolidated Statements of Comprehensive Income.     

Allowance for Credit Losses

The allowance for credit losses on accounts receivable and unbilled work in progress reflects management’s best estimate of expected losses using the Company's internal current expected credit losses model. This model analyzes expected losses based on relevant information about historical experience, current conditions, and reasonable and supportable forecasts that could potentially affect the collectibility of the reported amounts. This is recorded through provision for bad debts, which is included in Other operating expenses in the accompanying Consolidated Statements of Comprehensive Income. Amounts deemed to be uncollectible are written off against the allowance for credit losses.

Property and Equipment

Property and equipment are stated at cost. Repair and maintenance charges are expensed as incurred and costs of renewals or improvements are capitalized at cost. Depreciation on furniture and office equipment is recognized on a straight-line basis over the estimated useful lives of the respective assets.

Income Taxes

The Company files consolidated federal income tax returns, as well as consolidated and separate returns in state and local jurisdictions, and the Company reports income tax expense on this basis.

We account for income taxes in accordance with ASC Topic 740, Income Taxes, which requires the recognition of tax benefits or expenses on temporary differences between the financial reporting and tax basis of our assets and liabilities. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities. The measurement of the deferred items is based on enacted tax laws and applicable tax rates. A valuation allowance related to a deferred tax asset is recorded if it is more likely than not that some portion or all of the deferred tax asset will not be realized.

10

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

(In thousands, except share data or as otherwise stated)

The Company utilized a comprehensive model to recognize, measure, present, and disclose in its financial statements any uncertain tax positions that have been taken or are expected to be taken on a tax return. The impact of an uncertain tax position that is more likely than not of being sustained upon audit by the relevant taxing authority must be recognized at the largest amount that is more likely than not to be sustained. No portion of an uncertain tax position will be recognized if the position has less than a 50% likelihood of being sustained. Interest expense and penalties related to income taxes are included in the provision for income taxes in the accompanying Consolidated Statements of Comprehensive Income.

The Global Intangible Low-Taxed Income tax (“GILTI inclusion”) can be recognized in the financial statements through an accounting policy election by either recording a period cost (permanent item) or providing deferred income taxes stemming from certain basis differences that are expected to result in GILTI inclusion. The Company has elected to account for the tax impacts of the GILTI inclusion as a period cost.

Leases

We assess whether an arrangement is or contains a lease at the inception of the agreement. Right-of-use ("ROU") assets represent our right to use underlying assets for the lease term and lease liabilities represent our obligation to make lease payments arising from leases. ROU assets and lease liabilities are recognized at the commencement date based on the present value of future lease payments over the lease terms utilizing the discount rate implicit in the leases. If the discount rate implicit in the leases is not readily determinable, the present value of future lease payments is calculated utilizing the Company’s incremental borrowing rate, which approximates the interest that the Company would have to pay on a secured loan. The Company elected to utilize a portfolio approach and applies the rates to a portfolio of leases with similar terms and economic environments. The terms of our leases used to determine the ROU asset and lease liability account for options to extend when it is reasonably certain that we will exercise those options, if applicable. ROU assets and lease liabilities are subject to adjustment in the event of modification to lease terms, changes in probability that an option to extend or terminate a lease would be exercised and other factors. In addition, ROU assets are periodically reviewed for impairment.

Lease expense is recognized on a straight-line basis over the lease terms. Lease expense includes amortization of the ROU assets and accretion of the lease liabilities. Amortization of ROU assets is calculated as the periodic lease cost less accretion of the lease liability. The amortized period for ROU assets is limited to the expected lease term.

The Company has elected a practical expedient to combine the lease and non-lease components into a single lease component. The Company also elected the short-term lease measurement and recognition exemption and does not establish ROU assets or lease liabilities for operating leases with terms of 12 months or less.

Goodwill and Intangible Assets

Goodwill represents an acquired company’s acquisition cost over the fair value of acquired net tangible and intangible assets. Goodwill is the net asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Intangible assets identified and accounted for include tradenames and marks, backlog, developed technologies, and customer relationships. Those intangible assets with finite lives, including backlog and customer relationships, are amortized over their estimated useful lives.

11

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

(In thousands, except share data or as otherwise stated)

Goodwill is reviewed annually for impairment and more frequently if potential impairment indicators exist. Goodwill is reviewed for impairment in accordance with Accounting Standards Update ("ASU") No. 2011-08, Testing Goodwill for Impairment, which permits management to make a qualitative assessment of whether it is more likely than not that one of its reporting unit’s fair value is less than its carrying amount before applying the two-step goodwill impairment test. If management concludes that it is not more likely than not that the fair value of the reporting unit is less than its carrying amount, then management would not be required to perform the two-step impairment test for that reporting unit. If the assessment indicates that it is more likely than not that the reporting unit’s fair value is less than its carrying value, management must test further for impairment utilizing a two-step process. Step 1 compares the estimated fair value of the reporting unit with its carrying value, including goodwill. If the carrying value of the reporting unit exceeds the estimated fair value, an impairment exists and is measured in Step 2 as the excess of the recorded amount of goodwill over the implied fair value of goodwill resulting from the valuation of the reporting unit. Impairment testing of goodwill requires a significant amount of judgment in assessing qualitative factors and estimating the fair value of the reporting unit, if necessary. The fair value is determined using an estimated market value approach, which considers estimates of future after tax cash flows, including a terminal value based on market earnings multiples, discounted at an appropriate market rate. As of September 30, 2022, management concluded that it was not more likely than not that the Company’s reporting units’ fair value was less than their carrying amount and no further impairment testing had been considered necessary.

Indefinite-lived intangible assets are reviewed annually for impairment in accordance with ASU 2012-02, Testing Indefinite-lived Intangible Assets for Impairment, which provides management the option to perform a qualitative assessment. If it is more likely than not that the asset is impaired, the amount that the carrying value exceeds the fair value is recorded as an impairment expense. As of September 30, 2022, management concluded that it was not more likely than not that the fair values were less than the carrying values.

Intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group (inclusive of other long-lived assets) be tested for possible impairment, management first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. As of September 30, 2022, no events or changes in circumstances were identified that indicated that the carrying amount of the finite-lived intangible assets were not recoverable.

Business Combinations

Accounting for business combinations requires management to make significant estimates and assumptions. We allocate the purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair value as of the acquisition date, with the consideration in excess recorded as goodwill. Critical estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows, expected asset lives, geographic risk premiums, discount rates, and more. The amounts and useful lives assigned to acquisition-related intangible assets impact the amount and timing of future amortization expense.

Note 3 — Revenue Recognition

Disaggregation of Revenues

The Company has disclosed disaggregated revenues based on its business segment and geographical area, which provides a reasonable representation of how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. See Note 18 for additional information.

Contract Balances

The timing of revenue recognition may differ from the timing of payment by customers. The Company records a receivable when revenue is recognized prior to payment and there is an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, the Company records deferred income (contract liability) until the performance obligations are satisfied.

12

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

(In thousands, except share data or as otherwise stated)

Costs incurred in fulfilling advisory contracts with point-in-time revenue recognition are recorded as a contract asset when the costs (i) relate directly to a contract, (ii) generate or enhance resources of the Company that will be used in satisfying performance obligations, and (iii) are expected to be recovered. The Company amortizes the contract asset costs related to fulfilling a contract based on recognition of fee revenues for the corresponding contract.

Costs incurred in fulfilling an advisory contract with over-time revenue recognition are expensed as incurred.

The change in the Company’s contract assets and liabilities during the period primarily reflects the timing difference between the Company’s performance and the customer’s payment. The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers:

	April 1, 2022		Increase/(Decrease)		September 30, 2022
Receivables (1)	$	139,680	$	(9,739)	$	129,941
Unbilled work in progress, net of allowance for credit losses	104,751		51,184		155,935
Contract Assets (1)	4,349		901		5,250
Contract Liabilities (2)	28,753		6,729		35,482

(1)Included within Accounts receivable, net of allowance for credit losses in the September 30, 2022 Consolidated Balance Sheet.

(2)Included within Deferred income in the September 30, 2022 Consolidated Balance Sheet.

During the three and six months ended September 30, 2022, $1.0 million and $6.5 million of Revenues, respectively, were recognized that were included in the Deferred income balance at the beginning of the period.

As a practical expedient, the Company does not disclose information about remaining performance obligations pertaining to (i) contracts that have an original expected duration of one year or less, and/or (ii) contracts where the variable consideration is allocated entirely to a wholly unsatisfied promise to transfer a distinct service that is or forms part of a single performance obligation. The transaction price allocated to remaining unsatisfied or partially unsatisfied performance obligations with an original expected duration exceeding one year was not material at September 30, 2022.

Note 4 — Related Party Transactions

Other assets in the accompanying Consolidated Balance Sheets includes loans receivable from certain employees of $23,447 and $17,100 as of September 30, 2022 and March 31, 2022, respectively.

13

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

(In thousands, except share data or as otherwise stated)

Note 5 — Fair Value Measurements

The following table presents information about the Company's financial assets, and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair values:

	September 30, 2022
	Level I		Level II		Level III		Total
Corporate debt securities	$	—	$	20,100	$	—	$	20,100
U.S. treasury securities	—		12,544		—		12,544
Certificates of Deposit	—		517		—		517
Total asset measured at fair value (1)	$	—	$	33,161	$	—	$	33,161

(1) Included within Investment securities in the Consolidated Balance Sheets.

	March 31, 2022
	Level I		Level II		Level III		Total
Corporate debt securities	$	—	$	87,074	$	—	$	87,074
U.S. treasury securities	—		17,662		—		17,662
Certificates of Deposit	—		516		—		516
Total asset measured at fair value (1)	$	—	$	105,252	$	—	$	105,252

(1) Included within Investment securities in the Consolidated Balance Sheets.

The Company had no transfers between fair value levels during the six months ended September 30, 2022.

14

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

(In thousands, except share data or as otherwise stated)

Note 6 — Investment Securities

The amortized cost and gross unrealized gains (losses) of marketable investment securities accounted under the fair value method were as follows:

	September 30, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value (1)
Corporate debt securities	$	21,910	$	—	$	(1,810)	$	20,100
U.S. treasury securities	13,196		—		(652)		12,544
Certificates of Deposit	517		—		—		517
Total securities with unrealized gains/(losses)	$	35,623	$	—	$	(2,462)	$	33,161

(1) Included within Investment securities in the Consolidated Balance Sheets.

	March 31, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value (1)
Corporate debt securities	$	88,475	$	2	$	(1,403)	$	87,074
U.S. treasury securities	17,891		—		(229)		17,662
Certificates of Deposit	516		—		—		516
Total securities with unrealized gains/(losses)	$	106,882	$	2	$	(1,632)	$	105,252

(1) Included within Investment securities in the Consolidated Balance Sheets.

Scheduled maturities of the debt securities held by the Company included within the investment securities portfolio were as follows:

	September 30, 2022				March 31, 2022
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due within one year	$	4,886	$	4,809	$	72,963	$	72,950
Due within years two through five	30,737		28,352		33,919		32,302
Total debt within the investment securities portfolio	$	35,623	$	33,161	$	106,882	$	105,252

Note 7 — Allowance for Credit Losses

The following table presents information about the Company's allowance for credit losses:

	September 30, 2022
Beginning balance	$	13,274
Provision for bad debt, net	6,103
Recovery/(write-off) of uncollectible accounts, net	(4,705)
Ending balance	$	14,672

15

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

(In thousands, except share data or as otherwise stated)

Note 8 — Property and Equipment

Property and equipment, net of accumulated depreciation consists of the following:

	September 30, 2022		March 31, 2022
Equipment	$	9,752	$	9,692
Furniture and fixtures	20,050		22,704
Leasehold improvements	73,104		59,462
Computers and software	14,549		14,308
Other	7,487		7,476
Total cost	124,942		113,642
Less: accumulated depreciation	(62,736)		(61,466)
Total net book value	$	62,206	$	52,176

Additions to property and equipment during the six months ended September 30, 2022 were primarily related to leasehold improvement costs incurred.

Depreciation expense of $3,849 and $2,732 was recognized for the three months ended September 30, 2022 and 2021, respectively, and $7,228 and $5,839 was recognized for the six months ended September 30, 2022 and 2021, respectively.

Note 9 — Goodwill and Other Intangible Assets

The following table provides a reconciliation of Goodwill and other intangibles, net reported on the Consolidated Balance Sheets.

	Useful Lives	September 30, 2022		March 31, 2022
Goodwill	Indefinite	$	1,051,294	$	1,070,442
Tradename-Houlihan Lokey	Indefinite	192,210		192,210
Other intangible assets	Varies	91,022		92,941
Total cost		1,334,526		1,355,593
Less: accumulated amortization		(68,634)		(37,818)
Goodwill and other intangibles, net		$	1,265,892	$	1,317,775

16

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

(In thousands, except share data or as otherwise stated)

Goodwill attributable to the Company’s business segments is as follows:

	April 1, 2022		Change (1)		September 30, 2022
Corporate Finance	$	815,912	$	(19,148)	$	796,764
Financial Restructuring	162,815		—		162,815
Financial and Valuation Advisory	91,715		—		91,715
Goodwill	$	1,070,442	$	(19,148)	$	1,051,294

(1)Changes pertain primarily to foreign currency translation adjustments.

Amortization expense of approximately $15,625 and $1,612 was recognized for the three months ended September 30, 2022 and 2021, respectively, and $31,390 and $2,676 for the six months ended September 30, 2022 and 2021, respectively.

The estimated future amortization for finite-lived intangible assets for each of the next five years and thereafter are as follows:

	Year Ended March 31,
Remainder of 2023	$	13,195
2024	7,374
2025	1,515
2026	—
2027 and thereafter	—

Note 10 — Loans Payable

On August 23, 2019, the Company entered into a syndicated revolving line of credit with Bank of America, N.A. and certain other financial institutions party thereto (the “2019 Line of Credit”), which allows for borrowings of up to $100.0 million (and, subject to certain conditions, provides the Company with an expansion option, which, if exercised in full, would provide for a total credit facility of $200.0 million). On August 2, 2022, the agreement governing the 2019 Line of Credit was amended to, among other things, (a) extend the maturity to August 23, 2025 (or if such date is not a business day, the immediately preceding business day), (b) replace the LIBOR reference rate with Term SOFR plus an applicable credit spread adjustment, (c) modify certain covenant restrictions, and (d) make certain other technical amendments. The agreement governing the 2019 Line of Credit provides that commitment fees apply to unused amounts and contains debt covenants which require that the Company maintain certain financial ratios. As of September 30, 2022 and March 31, 2022, no principal was outstanding under the 2019 Line of Credit.

In April 2018, the Company acquired Quayle Munro Limited. Total consideration included non-interest bearing unsecured convertible loans totaling GBP 10.5 million payable on May 31, 2022, which was extinguished during the three months ended June 30, 2022. The Company incurred imputed interest expense on these notes of $1 and $35 for the three months ended September 30, 2022 and 2021, respectively, and $22 and $94 for the six months ended September 30, 2022 and 2021, respectively.

In May 2018, the Company acquired BearTooth Advisors. Total consideration included an unsecured note of $2.8 million bearing interest at an annual rate of 2.88% and payable on May 21, 2048. This note was subsequently assigned by the seller to the former BearTooth principals (who became employees of the Company), and, under certain circumstances, is convertible into Company Class B common stock after the fifth anniversary of the closing of the transaction. The Company incurred interest expense on this note of $0 and $27 for the three months ended September 30, 2022 and 2021, respectively, and $18 and $53 for the six months ended September 30, 2022 and 2021, respectively.

In December 2019, the Company acquired Freeman & Co. Total consideration included an unsecured note of $4.0 million bearing interest at an annual rate of 2.75% and payable on December 16, 2049. The note issued by the Company to the seller was distributed to the former principals of Freeman & Co. (who became employees of the Company). Under certain circumstances, the note may be exchanged by each principal for Company stock over a four-year period in equal annual installments starting in December 2020. The Company incurred interest expense on this note of $21 and $20 for the three months ended September 30, 2022 and 2021, respectively, and $41 and $39 for the six months ended September 30, 2022 and 2021, respectively.

17

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

(In thousands, except share data or as otherwise stated)

In August 2020, the Company acquired MVP Capital, LLC (“MVP”). Total consideration included an unsecured non-interest bearing note of $4.5 million payable August 14, 2050. The note was issued by the Company to the former principals and sellers of MVP (who became employees of the Company). Under certain circumstances, the note may be exchanged by each seller for a combination of cash and Company stock over a three-year period in equal annual installments starting in August 2021. Contingent consideration was also issued in connection with the acquisition of MVP, which had a carrying value of $20.3 million as of September 30, 2022 and March 31, 2022, which is included in Other liabilities in our Consolidated Balance Sheets.

In July 2021, the Company acquired Baylor Klein, Ltd (“BK”). Contingent consideration was issued in connection with the acquisition of BK, which had a carrying value of $17.1 million and $17.6 million as of September 30, 2022 and March 31, 2022, respectively, which is included in Other liabilities in our Consolidated Balance Sheets.

Note 11 — Accumulated Other Comprehensive (Loss)

Accumulated other comprehensive (loss) is comprised of Foreign currency translation adjustments of $(28,554) and $(6,037) for the three months ended September 30, 2022 and 2021, respectively, and $(50,863) and $(4,412) for the six months ended September 30, 2022 and 2021, respectively. The recent strength of the U.S. dollar as compared to the foreign currencies of our international operations has triggered foreign currency translation adjustments that are greater than usual.

Accumulated other comprehensive (loss) as of September 30, 2022 was comprised of the following:

Balance, April 1, 2022	$	(43,347)
Foreign currency translation adjustment	(50,863)
Balance, September 30, 2022	$	(94,210)

Note 12 — Income Taxes

The Company’s provision for income taxes was $23,537 and $43,583 for the three months ended September 30, 2022 and 2021, respectively, and $28,576 and $65,400 for the six months ended September 30, 2022 and 2021, respectively. These represent an effective tax rate of 27.9% for each of the three months ended September 30, 2022 and 2021, and 17.9% and 24.7% for the six months ended September 30, 2022 and 2021, respectively.

Note 13 — Earnings Per Share

The calculations of basic and diluted earnings per share attributable to holders of shares of common stock are presented below.

	Three Months Ended September 30,				Six Months Ended September 30,
	2022		2021		2022		2021
Numerator:
Net income attributable Houlihan Lokey, Inc.	$	60,730	$	112,883	$	131,512	$	198,843
Denominator:
Weighted average shares of common stock outstanding — basic	63,422,701		65,156,968		63,350,545		65,433,649
Weighted average number of incremental shares pertaining to unvested restricted stock and issuable in respect of unvested restricted stock units, as calculated using the treasury stock method	6,377,327		3,409,159		5,966,247		3,208,313
Weighted average shares of common stock outstanding — diluted	69,800,028		68,566,127		69,316,792		68,641,962
Basic earnings per share	$	0.96	$	1.73	$	2.08	$	3.04
Diluted earnings per share	$	0.87	$	1.65	$	1.90	$	2.90

18

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

(In thousands, except share data or as otherwise stated)

Note 14 — Employee Benefit Plans

Defined Contribution Plans

The Company sponsors a 401(k) defined contribution savings plan for its domestic employees and defined contribution retirement plans for its international employees. The Company contributed approximately $1,867 and $1,298 to these plans during the three months ended September 30, 2022 and 2021, respectively, and $3,801 and $2,748 during the six months ended September 30, 2022 and 2021, respectively.

Share-Based Incentive Plans

Following the IPO, additional awards of restricted shares and restricted stock units have been and will be made under the Amended and Restated Houlihan Lokey, Inc. 2016 Incentive Award Plan (the "2016 Incentive Plan"), which became effective in August 2015 and was amended in October 2017. Under the 2016 Incentive Plan, it is anticipated that the Company will continue to grant cash and equity-based incentive awards to eligible service providers in order to attract, motivate and retain the talent necessary to operate the Company's business. Equity-based incentive awards issued under the 2016 Incentive Plan generally vest over a four-year period. Restricted shares of Class A common stock were granted under the 2016 Incentive Plan to (i) six independent directors in the first quarter of fiscal 2022 at $73.19 per share, and (ii) six independent directors in the first quarter of fiscal 2023 at $84.55.

No excess tax benefit was recognized during the three months ended September 30, 2022 or 2021. An excess tax benefit of $8,102 and $6,922 was recognized during the six months ended September 30, 2022 and 2021, respectively, as a component of the provision for income taxes and an operating activity on the Consolidated Statements of Cash Flows. The excess tax benefits recognized during the six months ended September 30, 2022 and 2021 were related to shares vested in May 2022 and 2021, respectively.

The share awards are classified as equity awards at the time of grant unless the number of shares granted is unknown. Awards that are settleable in shares based upon a future determinable stock price are classified as liabilities until the price is established and the resulting number of shares is known, at which time they are re-classified from liabilities to equity awards. Activity in equity classified share awards which relate to the Company's 2016 Incentive Plan during the six months ended September 30, 2022 and 2021 was as follows:

Unvested Share Awards	Shares	Weighted Average Grant Date Fair Value
Balance, April 1, 2022	4,314,375	$	71.42
Granted	2,221,461	84.49
Vested	(1,175,311)	59.82
Forfeited/Repurchased	(76,002)	80.44
Balance, September 30, 2022	5,284,523	$	79.37
Balance, April 1, 2021	2,744,605	$	51.37
Granted	1,638,748	73.19
Vested	(1,039,535)	47.80
Forfeited/Repurchased	(59,414)	60.92
Balance, September 30, 2021	3,284,404	$	63.22

19

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

(In thousands, except share data or as otherwise stated)

Activity in liability classified share awards during the six months ended September 30, 2022 and 2021 was as follows:

Awards Settleable in Shares	Fair Value
Balance, April 1, 2022	$	14,349
Offer to grant	6,188
Share price determined-converted to cash payments	(2,676)
Share price determined-transferred to equity grants	(4,269)
Forfeited	—
Balance, September 30, 2022	$	13,592
Balance, April 1, 2021	$	16,950
Offer to grant	1,094
Share price determined-converted to cash payments	(2,676)
Share price determined-transferred to equity grants	(4,269)
Forfeited	—
Balance, September 30, 2021	$	11,099

Activity of our RSUs during the six months ended September 30, 2022 and 2021 was as follows:

Restricted Stock Units	RSUs	Weighted Average Grant Date Fair Value
RSUs as of April 1, 2022	1,038,503	$	95.27
Issued	50,556	84.55
Forfeitures	(14,275)	96.82
Vested	(24,138)	63.75
RSUs as of September 30, 2022	1,050,646	$	95.45
RSUs as of April 1, 2021	38,475	$	55.58
Issued	54,525	71.09
Forfeitures	(1,595)	66.70
Vested	(12,454)	52.33
RSUs as of September 30, 2021	78,951	$	66.48

Compensation expenses for the Company associated with both equity and liability classified awards totaled $41,399 and $18,956 for the three months ended September 30, 2022 and 2021, respectively, and $82,006 and $53,246 for the six months ended September 30, 2022 and 2021, respectively.

As of September 30, 2022 and 2021, there was $519,704 and $177,341, respectively, of total unrecognized compensation cost related to unvested share awards granted under the 2016 Incentive Plan. These costs are recognized over a weighted average period of 2.8 years and 1.7 years, as of September 30, 2022 and 2021, respectively.

On October 19, 2017, our board of directors approved an amendment (the “Amendment”) to the 2016 Incentive Plan reducing the number of shares of common stock available for issuance under the 2016 Incentive Plan by approximately 12.2 million shares. Under the Amendment, the aggregate number of shares of common stock that are available for issuance under awards granted pursuant to the 2016 Incentive Plan is equal to the sum of (i) 8.0 million and (ii) any shares of our Class B common stock that are subject to awards under our 2006 Incentive Plan that terminate, expire or lapse for any reason after October 19, 2017.

20

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

(In thousands, except share data or as otherwise stated)

The number of shares available for issuance increases annually beginning on April 1, 2018 and ending on April 1, 2025, by an amount equal to the lowest of:

•6,540,659 shares of our Class A common stock and Class B common stock;

•Six percent of the shares of Class A common stock and Class B common stock outstanding on the final day of the immediately preceding fiscal year; and

•such smaller number of shares as determined by our board of directors.

Note 15 — Stockholders' Equity

There are two classes of authorized HL, Inc. common stock: Class A common stock and Class B common stock. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting and conversion rights. Each share of Class A common stock is entitled to one vote per share, and each share of Class B common stock is entitled to ten votes per share. Each share of Class B common stock may be converted into one share of Class A common stock at the option of its holder and will be automatically converted into one share of Class A common stock upon transfer thereof, subject to certain exceptions.

Class A Common Stock

During the three months ended September 30, 2022 and 2021, no shares were issued to non-employee directors and 231,367 and 384,632 shares were converted from Class B to Class A, respectively. During the six months ended September 30, 2022 and 2021, 6,739 and 6,512 shares were issued to non-employee directors, respectively, and 497,859 and 1,103,085 shares were converted from Class B to Class A, respectively.

As of September 30, 2022, there were 49,722,549 Class A shares held by the public and 58,326 Class A shares held by non-employee directors. As of September 30, 2021, there were 50,872,848 Class A shares held by the public and 54,157 Class A shares held by non-employee directors.

Class B Common Stock

As of September 30, 2022 and 2021, there were 18,874,122 and 17,348,305 of Class B shares held by the HL Voting Trust, respectively.

Dividends

Previously declared dividends related to unvested shares of $12,003 and $6,480 were unpaid as of September 30, 2022 and 2021, respectively.

Stock Subscriptions Receivable

Employees of the Company periodically issued notes receivable to the Company documenting loans made by the Company to such employees for the purchase of restricted shares of the Company.

21

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

(In thousands, except share data or as otherwise stated)

Share Repurchases

In April 2022, the board of directors authorized an increase to the existing July 2021 share repurchase program, which provides for share repurchases of a new aggregate amount of up to $500.0 million of the Company's Class A common stock and Class B common stock.

During the three months ended September 30, 2022 and 2021, the Company repurchased 9,731 and 490 shares, respectively, of Class B common stock, to satisfy $70 and an immaterial amount of required withholding taxes in connection with the vesting of restricted awards, respectively. During the three months ended September 30, 2022, the Company repurchased 100,257 shares of its outstanding Class A common stock at a weighted average price of $81.74 per share, excluding commissions, for an aggregate purchase price of $8,195. During the three months ended September 30, 2021, the Company repurchased an additional 548,896 shares of its outstanding Class A common stock at a weighted average price of $82.78 per share, excluding commissions, for an aggregate purchase price of $45,437.

During the six months ended September 30, 2022 and 2021, the Company repurchased 506,462 and 455,402 shares, respectively, of Class B common stock, to satisfy $42,191 and $33,700 of required withholding taxes in connection with the vesting of restricted awards, respectively. During the six months ended September 30, 2022, the Company repurchased 577,287 shares of its outstanding Class A common stock at a weighted average price of $84.72 per share, excluding commissions, for an aggregate purchase price of $48,905. During the six months ended September 30, 2021, the Company repurchased an additional 1,428,034 shares of its outstanding Class A common stock at a weighted average price of $79.06 per share, excluding commissions, for an aggregate purchase price of $112,904.

Note 16 — Leases

Lessee Arrangements

Operating Leases

We lease real estate and equipment used in operations from third parties. As of September 30, 2022, the remaining term of our operating leases ranged from 1 to 14 years with various automatic extensions.

The following table outlines the maturity of our existing operating lease liabilities on a fiscal year-end basis as of September 30, 2022.

Maturity of Operating Leases

	Operating Leases
Remaining 2023	$	15,430
2024	29,044
2025	29,093
2026	26,582
2027	23,036
Thereafter	93,575
Total	216,760
Less: present value discount	(27,823)
Operating lease liabilities	$	188,937

As of September 30, 2022, the Company has entered into operating leases for additional office space that have not yet commenced for approximately $190.2 million. These operating leases will commence between fiscal year 2023 and fiscal year 2024 with lease terms of 3 years to 13 years.

22

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

(In thousands, except share data or as otherwise stated)

Lease costs

	Three Months Ended September 30,				Six Months Ended September 30,
	2022		2021		2022		2021
Operating lease expense	$	8,571	$	6,459	$	15,807	$	13,674
Variable lease expense (1)	4,725		2,549		9,244		5,529
Short-term lease expense	52		43		87		90
Less: Sublease income	(63)		—		(63)		(18)
Total lease costs	$	13,285	$	9,051	$	25,075	$	19,275

(1)Primarily consists of payments for property taxes, common area maintenance and usage based operating costs.

Weighted-average details

	September 30,
	2022		2021
Weighted-average remaining lease term (years)	9		9
Weighted-average discount rate	3.3	%	3.8	%

Supplemental cash flow information related to leases:

	Six Months Ended September 30,
	2022		2021
Operating cash flows:
Cash paid for amounts included in the measurement of Operating lease liabilities	$	18,292	$	14,780
Non-cash activity:
Operating lease right-of-use assets obtained in exchange of Operating lease liabilities	$	19,219	$	217
Change in Operating lease right-of-use assets due to remeasurement	161		(330)

Note 17 — Commitments and Contingencies

The Company has been named in various legal actions arising in the normal course of business. In the opinion of the Company, in consultation with legal counsel, the final resolutions of these matters are not expected to have a material adverse effect on the Company’s financial condition, operations and cash flows.

The Company also provides routine indemnifications relating to certain real estate (office) lease agreements under which it may be required to indemnify property owners for claims and other liabilities arising from the Company’s use of the applicable premises. In addition, the Company guarantees the performance of its subsidiaries under certain office lease agreements. The terms of these obligations vary, and because a maximum obligation is not explicitly stated, the Company has determined that it is not possible to make an estimate of the maximum amount that it could be obligated to pay under such contracts. Based on historical experience and evaluation of specific indemnities, management believes that judgments, if any, against the Company related to such matters are not likely to have a material effect on the consolidated financial statements. Accordingly, the Company has not recorded any liability for these obligations as of September 30, 2022 or March 31, 2022.

There have been no material changes outside of the ordinary course of business to our known contractual obligations, which are set forth in the table included in Item 7 in our 2022 Annual Report.

23

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

(In thousands, except share data or as otherwise stated)

Note 18 — Segment and Geographical Information

The Company’s reportable segments are described in Note 1 and each are individually managed and provide separate services that require specialized expertise for the provision of those services. Revenues by segment represent fees earned on the various services offered within each segment. Segment profit consists of segment revenues, less (1) direct expenses including compensation, 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 charges related to incentive compensation 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 compliance and legal. The following tables present information about revenues, profit and assets by segment and geography.    

	Three Months Ended September 30,				Six Months Ended September 30,
	2022		2021		2022		2021
Revenues by segment
Corporate Finance	$	315,016	$	388,410	$	578,967	$	598,401
Financial Restructuring	97,694		83,184		176,532		181,959
Financial and Valuation Advisory	76,827		65,678		152,682		129,634
Revenues	$	489,537	$	537,272	$	908,181	$	909,994
Segment profit (1)
Corporate Finance	$	93,794	$	151,185	$	185,359	$	236,334
Financial Restructuring	17,563		20,082		44,259		46,175
Financial and Valuation Advisory	26,169		18,367		45,203		40,576
Total segment profit	137,526		189,634		274,821		323,085
Corporate expenses (2)	48,155		32,315		107,880		58,090
Other expense, net	5,104		853		6,853		752
Income before provision for income taxes	$	84,267	$	156,466	$	160,088	$	264,243

(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.

(2)Corporate expenses represent expenses that are not allocated to individual business segments such as office of the executives, accounting, information technology, compliance, legal, marketing, and human capital.

	September 30, 2022		March 31, 2022
Assets by segment
Corporate Finance	$	996,898	$	994,623
Financial Restructuring	171,669		178,148
Financial and Valuation Advisory	174,016		155,853
Total segment assets	1,342,583		1,328,624
Corporate assets	1,167,616		1,558,186
Total assets	$	2,510,199	$	2,886,810

	Three Months Ended September 30,				Six Months Ended September 30,
	2022		2021		2022		2021
Income before provision for income taxes by geography
United States	$	63,771	$	124,644	$	114,023	$	211,241
International	20,496		31,822		46,065		53,002
Income before provision for income taxes	$	84,267	$	156,466	$	160,088	$	264,243

24

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

(In thousands, except share data or as otherwise stated)

	Three Months Ended September 30,				Six Months Ended September 30,
	2022		2021		2022		2021
Revenues by geography
United States	$	377,608	$	432,726	$	681,057	$	744,453
International	111,929		104,546		227,124		165,541
Revenues	$	489,537	$	537,272	$	908,181	$	909,994

	September 30, 2022		March 31, 2022
Assets by geography
United States	$	1,713,187	$	2,032,390
International	797,012		854,420
Total assets	$	2,510,199	$	2,886,810

Note 19 — Business Combinations

On October 4, 2021 ("the Acquisition Date"), the Company completed a tender offer process resulting in the Company's acquisition of approximately 90% of GCA Corporation's (“GCA”) common stock for cash consideration of $531.9 million. The Company then acquired the GCA shares not purchased through the tender offer by way of a second-step transaction, which occurred on November 5, 2021 for $57.7 million. The consideration for these shares was paid on January 20, 2022. This all-cash transaction was valued at approximately $589.6 million, based on the consideration of ¥1,398 per share of GCA.

GCA is a global technology-focused investment bank providing M&A advisory and capital markets advisory services in Europe, Japan/Asia, and the United States. The addition of GCA significantly increases the Company's position in the technology sector, which is critical to meeting the needs of our clients as technology increasingly touches every business sector. GCA also increases the depth and breadth of our UK and European operations and this significant increase in scale has a direct impact on our ability to better serve our clients, both corporate and private equity, and meaningfully expands our geographic footprint in the UK and Europe. GCA also creates a significant platform for us to build from in the Asia Pacific region, meaningfully increasing our presence there and allowing us to begin to reach for scale in this rapidly growing part of the world.

Acquisition Consideration
GCA common shares, including employee share-based payment awards outstanding, as of the Acquisition Date	49,382,808
Cash consideration per share	¥	1,398
Cash consideration for tendered common shares	$	531,883
Cash consideration for remaining shares purchased	57,686
Total cash consideration	$	589,569

The Company financed the acquisition with cash on hand.

25

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

(In thousands, except share data or as otherwise stated)

Purchase Price Allocation

The following table summarizes the fair value of assets acquired and liabilities assumed as part of the GCA acquisition. We made significant estimates and exercised significant judgment in estimating fair values and accounting for such acquired assets and liabilities. The intangible assets subject to amortization will be amortized on a straight-line basis over their estimated useful lives as of the acquisition date. Measurement period adjustments recognized in the second quarter of fiscal 2023 related to updated estimated fair values for income taxes receivable/(payable) and deferred income taxes with no such adjustments recognized in the first quarter of fiscal 2023.

	Previously Reported As Of June 30, 2022		Measurement Period Adjustments		Fair Value As Of September 30, 2022		Weighted-Average Amortization Period
Assets acquired:
Cash and cash equivalents	$	228,877	$	—	$	228,877
Investment securities	515		—		515
Accounts receivable	54,804		—		54,804
Unbilled work in progress	4,672		—		4,672
Income taxes receivable	1,771		(1,771)		—
Deferred income taxes	—		1,876		1,876
Property and equipment	8,727		—		8,727
Operating lease right-of-use assets	27,383		—		27,383
Other assets	20,506		—		20,506
Intangible assets other than goodwill
Backlog	42,000		—		42,000		1.2 years
Trade name	17,100		—		17,100		2.0 years
Customer relationships	15,200		—		15,200		1.0 year
Total intangible assets acquired	74,300		—		74,300		1.3 years
Total assets	421,555		105		421,660
Liabilities assumed:
Accrued salaries and bonuses	152,409		—		152,409
Accounts payable and accrued expenses	22,722		—		22,722
Payable to affiliates	15		—		15
Deferred income	78		—		78
Deferred income taxes	3,552		(3,552)		—
Income taxes payable	—		2,697		2,697
Operating lease liabilities	27,527		—		27,527
Other liabilities	19,897		—		19,897
Total liabilities	226,200		(855)		225,345
Net identifiable assets acquired	195,355		960		196,315
Goodwill	394,214		(960)		393,254
Total GCA equity value	$	589,569	$	—	$	589,569

26

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

(In thousands, except share data or as otherwise stated)

We applied the acquisition method of accounting in accordance with Financial Accounting Standards Board ("FASB") ASC Topic 805, Business Combinations ("ASC 805"). Goodwill of $393.3 million was recognized as a result of the transaction and relates to (i) the value of assets that do not meet the definition of an identifiable intangible asset under ASC 805, but that do contribute to the value of the acquired business, including the assembled workforce and relationships with customers that are not tracked; (ii) the assemblage value associated with acquiring an on-going business whose value is worth more than simply the sum of its parts; and (iii) the expected synergies associated with combining global operations. None of the goodwill recognized is expected to be deductible for federal income tax purposes. The goodwill recognized is attributable to our CF business segment. The results of operations for GCA have been included in the Company's Consolidated Financial Statements since the Acquisition Date.

Unaudited Pro Forma Financial Information

The following unaudited pro forma financial information is presented to illustrate the estimated effects of the acquisition of GCA on the Company as if it had occurred on April 1, 2020, the first day of the Company's fiscal 2021, and is not necessarily indicative of either future results of operations or results that may have been achieved had the acquisition been consummated as of this date. The below unaudited pro forma results include certain pro forma adjustments to net earnings that were directly attributable to the acquisition, as if the acquisition had occurred on April 1, 2020, including the following:

•Elimination of transaction costs incurred by the Company directly attributable to the GCA acquisition of $0 and $(1,006), for the three months ended September 30, 2022 and 2021, respectively, and $0 and $(1,077) for the six months ended September 30, 2022 and 2021, respectively.

•An increase/(decrease) of amortization expense of $(14,688) and $2,138, for the three months ended September 30, 2022 and 2021, respectively, and $(29,306) and $11,680 for the six months ended September 30, 2022 and 2021, respectively, directly attributable to the GCA acquisition. This amortization was recognized as a result of the allocation of purchase consideration to the definite-lived intangible assets subject to amortization, noted above.

•Resulting tax impact of above adjustments of $4,098 and $(316), for the three months ended September 30, 2022 and 2021, respectively, and $5,246 and $(2,619) for the six months ended September 30, 2022 and 2021, respectively.

	(Unaudited)
	Three Months Ended September 30,				Six Months Ended September 30,
	2022		2021		2022		2021
Revenue	$	489,537	$	669,230	$	908,181	$	1,212,704
Net income	$	71,320	$	115,860	$	155,572	$	213,993

Note 20 — Subsequent Events

On October 25, 2022, the Company's board of directors declared a quarterly cash dividend of $0.53 per share of Class A and Class B common stock, payable on December 15, 2022, to shareholders of record on December 2, 2022.

27

Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

The following discussion should be read together with our consolidated financial statements and the related notes that appear elsewhere in this Quarterly Report on Form 10-Q. We make statements in this discussion that are forward-looking statements. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “intends,” “predicts,” “potential” or “continue,” the negative of these terms or other similar expressions. These forward-looking statements, which are subject to risks, uncertainties, and assumptions about us, may include projections of our future financial performance, based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including but not limited to, the factors listed under the heading “Cautionary Note Regarding Forward-Looking Statements” in our Annual Report on Form 10-K for the year ended March 31, 2022 (the "2022 Annual Report"). Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. These forward-looking statements speak only as of the date of this filing. You should not rely upon forward-looking statements as a prediction of future events. We are under no duty to and we do not undertake any obligation to update or review any of these forward-looking statements after the date of this filing to conform our prior statements to actual results or revised expectations whether as a result of new information, future developments or otherwise.

Key Financial Measures

Revenues

Revenues include fee revenues and reimbursements of expenses (see Note 2 and Note 3 to our unaudited consolidated financial statements in this Form 10-Q for additional information). Revenues reflect revenues from our Corporate Finance (“CF”), Financial Restructuring (“FR”), and Financial and Valuation Advisory (“FVA”) business segments that substantially consist of fees for advisory services.

Revenues for all three business segments are recognized upon satisfaction of the performance obligation and may be satisfied over time or at a point in time. The amount and timing of the fees paid vary by the type of engagement. In general, advisory fees are paid at the time an engagement letter is signed (“Retainer Fees”), during the course of the engagement (“Progress Fees”), or upon the successful completion of a transaction or engagement (“Completion Fees”).

CF provides general financial advisory services in addition to advice on mergers and acquisitions and capital markets offerings. We advise public and private institutions on a wide variety of situations, including buy-side and sell-side transactions, as well as leveraged loans, private mezzanine debt, high-yield debt, initial public offerings, follow-ons, convertibles, equity private placements, private equity, and liability management transactions, and advise financial sponsors on all types of transactions. The majority of our CF revenues consists of Completion Fees. A CF transaction can fail to be completed for many reasons that are outside of our control. In these instances, our fees are generally limited to Retainer Fees and in some cases Progress Fees that may have been received.

FR provides advice to debtors, creditors and other parties-in-interest in connection with recapitalization/deleveraging transactions implemented both through bankruptcy proceedings and through out-of-court exchanges, consent solicitations or other mechanisms, as well as in distressed mergers and acquisitions and capital markets activities. As part of these engagements, our FR business segment offers a wide range of advisory services to our clients, including: the structuring, negotiation, and confirmation of plans of reorganization; structuring and analysis of exchange offers; corporate viability assessment; dispute resolution and expert testimony; and procuring debtor-in-possession financing. Although atypical, FR transactions can fail to be completed for many reasons that are outside of our control. In these instances, our fees are generally limited to the Retainer Fees and/or Progress Fees.

FVA primarily provides valuations of various assets, including: companies; illiquid debt and equity securities; and intellectual property (among other assets and liabilities). These valuations are used for financial reporting, tax reporting, and other purposes. In addition, our FVA business segment renders fairness opinions in connection with mergers and acquisitions and other transactions, and solvency opinions in connection with corporate spin-offs and dividend recapitalizations, and other types of financial opinions in connection with other transactions. Also, our FVA business segment provides dispute resolution services to clients where fees are usually based on the hourly rates of our financial professionals. Unlike our CF or FR segments, the fees generated in our FVA segment are generally not contingent on the successful completion of a transaction.

28

Operating Expenses

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. Reimbursements of certain out-of-pocket deal expenses are recorded on a gross basis and are therefore included in both Revenues and Operating expenses on the Consolidated Statements of Comprehensive Income.

Employee Compensation and Benefits Expense. Our employee compensation and benefits expense, which accounts for the majority of our operating expenses, is determined by management based on revenues earned, headcount, the competitiveness of the prevailing labor market, and anticipated compensation expectations of our employees. These factors may fluctuate, and as a result, our employee compensation and benefits expense may fluctuate materially in any particular period. Accordingly, the amount of employee compensation and benefits expense recognized in any particular period may not be consistent with prior periods or indicative of future periods.

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. Base salary and benefits are paid ratably throughout the year. Our annual equity-based bonus awards include fixed share compensation awards and liability classified fixed dollar awards as a component of the annual bonus awards for certain employees. These equity awards are generally subject to annual vesting requirements over a four-year period beginning at the date of grant, which occurs in the first quarter of each fiscal year; accordingly, expenses are amortized over the stated vesting period. In most circumstances, the unvested portion of these awards is subject to forfeiture should the employee depart from the Company. Cash bonuses, which are accrued monthly, are discretionary and dependent upon a number of factors including the Company's performance, and are generally paid in the first fiscal quarter of each fiscal year with respect to prior year performance. Generally, a portion of the cash bonus is deferred and paid in the third quarter of the fiscal year in which the bonus is awarded. Annual bonuses paid to employees of GCA Corporation (“GCA”) were historically paid in the first calendar quarter of each year and we maintained that schedule for calendar year 2022 and paid all GCA bonuses in the first calendar quarter of 2022 with respect to calendar year 2021 performance. Bonuses paid to GCA employees in 2022 included both cash and Houlihan Lokey, Inc., Class B common stock awards subject to vesting similar to what is described above. After the first calendar quarter 2022 payment, GCA will be on the same bonus schedule as other Houlihan Lokey employees referred to above. We refer to the ratio of our employee compensation and benefits expenses to our revenues as our "Compensation Ratio."

Non-Compensation Expense. The balance of our operating expenses includes costs for travel, meals and entertainment, rent, depreciation and amortization, information technology and communications, professional fees, and other operating expenses. We refer to all of these expenses as non-compensation expenses. A portion of our non-compensation expenses fluctuates in response to changes in headcount.

Other Expense, Net

Other expense, net includes (i) interest income earned on non-marketable and investment securities, cash and cash equivalents, loans receivable from affiliates, employee loans, and commercial paper, (ii) interest expense and fees on our 2019 Line of Credit (defined herein), (iii) interest expense on the loan payable to affiliate, loans payable to former shareholders, and the loan payable to non-affiliates, (iv) equity income and/or gains or losses from funds and partnership interests where we have more than a minor ownership interest or more than minor influence over operations, but do not have a controlling interest and are not the primary beneficiary, and (v) gains and/or losses associated with the reduction/increase of earnout liabilities.

Results of Consolidated Operations

The following is a discussion of our results of consolidated operations for the three and six months ended September 30, 2022 and 2021. As described in Note 19 of Part I, Item 1 of this Form 10-Q, the Company completed the acquisition of GCA during the third quarter of fiscal 2021; therefore, our results of consolidated operations for the three and six months ended September 30, 2022 include GCA. The comparative results of consolidated operations for the three and six months ended September 30, 2021, do not include GCA. For a more detailed discussion of the factors that affected the revenues and the operating expenses of our CF, FR, and FVA business segments in these periods, see Part I, Item 2 of this Form 10-Q under the heading “Business Segments” below.

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	Three Months Ended September 30,						Six Months Ended September 30,
($ in thousands)	2022		2021		Change		2022		2021		Change
Revenues	$	489,537	$	537,272	(9)	%	$	908,181	$	909,994	—	%
Operating expenses:
Employee compensation and benefits	309,859		333,374		(7)	%	575,594		565,678		2	%
Non-compensation	90,307		46,579		94	%	165,646		79,321		109	%
Total operating expenses	400,166		379,953		5	%	741,240		644,999		15	%
Operating income	89,371		157,319		(43)	%	166,941		264,995		(37)	%
Other expense, net	5,104		853		498	%	6,853		752		811	%
Income before provision for income taxes	84,267		156,466		(46)	%	160,088		264,243		(39)	%
Provision for income taxes	23,537		43,583		(46)	%	28,576		65,400		(56)	%
Net income attributable to Houlihan Lokey, Inc.	$	60,730	$	112,883	(46)	%	$	131,512	$	198,843	(34)	%

Three Months Ended September 30, 2022 versus September 30, 2021

Revenues were $489.5 million for the three months ended September 30, 2022, compared with $537.3 million for the three months ended September 30, 2021, representing a decrease of (9)%. Revenues decreased primarily as a result of a decrease in the number of closed transactions and the average transaction fee on closed transactions for our CF business segment. This decrease was partially offset by an increase in the number of closed transactions for our FR business segment and an increase in the number of Fee Events for our FVA business segment. For the quarter, CF revenues decreased (19)%, FR revenues increased 17%, and FVA revenues increased 17% when compared with the three months ended September 30, 2021.

Operating expenses were $400.2 million for the three months ended September 30, 2022, compared with $380.0 million for the three months ended September 30, 2021, representing an increase of 5%. Employee compensation and benefits expense, as a component of operating expenses, was $309.9 million for the three months ended September 30, 2022, compared with $333.4 million for the three months ended September 30, 2021, representing a decrease of (7)%. The decrease in employee compensation and benefits expense was primarily a result of a decrease in revenues for the quarter when compared with the same quarter last year. The Compensation Ratio was 63.3% for the three months ended September 30, 2022, compared with 62.0% for the three months ended September 30, 2021. Non-compensation expense, as a component of operating expenses, was $90.3 million for the three months ended September 30, 2022, compared with $46.6 million for the three months ended September 30, 2021, representing an increase of 94%. The increase in non-compensation expense was primarily a result of the inclusion of GCA’s non-compensation expenses in the second quarter ended September 30, 2022, which were not included in the second quarter ended September 30, 2021, amortization of intangible assets recognized in connection with the acquisition of GCA, integration related costs associated with our acquisition of GCA and an increase in other operating expenses and travel, meals, and entertainment expenses.

Other expense, net was $5.1 million for the three months ended September 30, 2022, compared with $0.9 million for the three months ended September 30, 2021. Other expense, net increased primarily due to an increase in the fair value of an earnout liability for one of our previous acquisitions and a loss recognized in connection with a periodic warrant revaluation.

The provision for income taxes for the three months ended September 30, 2022 was $23.5 million, which reflected an effective tax rate of 27.9%. The provision for income taxes for the three months ended September 30, 2021 was $43.6 million which reflected an effective tax rate of 27.9%.

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Six Months Ended September 30, 2022 versus September 30, 2021

Revenues were relatively flat at $908.2 million for the six months ended September 30, 2022, compared with $910.0 million for the six months ended September 30, 2021. For the six months ended September 30, 2022, CF revenues decreased (3)%, FR revenues decreased (3)%, and FVA revenues increased 18% when compared with the six months ended September 30, 2021.

Operating expenses were $741.2 million for the six months ended September 30, 2022, compared with $645.0 million for the six months ended September 30, 2021, an increase of 15%. Employee compensation and benefits expense, as a component of operating expenses, was $575.6 million for the six months ended September 30, 2022, compared with $565.7 million for the six months ended September 30, 2021, an increase of 2%. The Compensation Ratio was 63.4% for the six months ended September 30, 2022, compared with 62.2% for the six months ended September 30, 2021. Non-compensation expense, as a component of operating expenses, was $165.6 million for the six months ended September 30, 2022, compared with $79.3 million for the six months ended September 30, 2021, an increase of 109%. The increase in non-compensation expense was primarily a result of the

inclusion of GCA’s non-compensation expenses in the six months ended September 30, 2022, which were not included in the

six months ended September 30, 2021, amortization of intangible assets recognized in connection with the acquisition of GCA, and an increase in other operating expenses and travel, meals, and entertainment expenses.

Other expense, net increased to $6.9 million for the six months ended September 30, 2022, compared with $0.8 million for the six months ended September 30, 2021, primarily due to an increase in the fair value of an earnout liability for one of our previous acquisitions and a loss recognized in connection with a periodic warrant revaluation.

The provision for income taxes for the six months ended September 30, 2022 was $28.6 million, which reflected an effective tax rate of 17.9%. The provision for income taxes for the six months ended September 30, 2021 was $65.4 million, which reflected an effective tax rate of 24.7%. The decrease in the Company's tax rate during the six months ended September 30, 2022 relative to the same period in 2021 was primarily a result of the release of the provision for an uncertain tax position as a result of the successful closure of a state audit.

As of March 31, 2022, the Company had recorded unrecognized tax positions in the amounts of $18.7 million. During the six months ended September 30, 2022, the Company received a Consent to Field Audit Adjustment from the State of New York for the years ended March 31, 2017, March 31, 2018 and March 31, 2019. During the six months ended September 30, 2022, a decrease to the Company's unrecognized tax benefits of $7.3 million was recognized as a result of this Consent to Field Audit Adjustment.

The Company believes that it is reasonably possible that a decrease of up to $0.5 million in gross unrecognized income tax benefits for federal and state items may be necessary within the next 12 months. For the remaining uncertain income tax positions, it is difficult at this time to estimate the timing of the resolution.

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Business Segments

The following table presents revenues, expenses and contributions from our continuing operations by business segment. The revenues by segment represents each segment’s revenues, and the profit by segment represents profit for each segment before corporate expenses, other expense, net, and income taxes.

	Three Months Ended September 30,						Six Months Ended September 30,
($ in thousands)	2022		2021		Change		2022		2021		Change
Revenues by Segment
Corporate Finance	$	315,016	$	388,410	(19)	%	$	578,967	$	598,401	(3)	%
Financial Restructuring	97,694		83,184		17	%	176,532		181,959		(3)	%
Financial and Valuation Advisory	76,827		65,678		17	%	152,682		129,634		18	%
Revenues	$	489,537	$	537,272	(9)	%	$	908,181	$	909,994	—	%
Segment Profit (1)
Corporate Finance	$	93,794	$	151,185	(38)	%	$	185,359	$	236,334	(22)	%
Financial Restructuring	17,563		20,082		(13)	%	44,259		46,175		(4)	%
Financial and Valuation Advisory	26,169		18,367		42	%	45,203		40,576		11	%
Total Segment Profit	137,526		189,634		(27)	%	274,821		323,085		(15)	%
Corporate Expenses (2)	48,155		32,315		49	%	107,880		58,090		86	%
Other expense, net	5,104		853		498	%	6,853		752		811	%
Income before provision for income taxes	$	84,267	$	156,466	(46)	%	$	160,088	$	264,243	(39)	%
Segment Metrics
Number of Managing Directors
Corporate Finance	210		126		67	%	210		126		67	%
Financial Restructuring	56		51		10	%	56		51		10	%
Financial and Valuation Advisory	40		37		8	%	40		37		8	%
Number of Closed Transactions/Fee Events (3)
Corporate Finance	114		134		(15)	%	238		218		9	%
Financial Restructuring	24		20		20	%	40		44		(9)	%
Financial and Valuation Advisory	890		806		10	%	1,404		1,242		13	%

(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.

(2)Corporate expenses represent expenses that are not allocated to individual business segments such as office of the executives, accounting, information technology, compliance, legal, marketing, and human capital.

(3)Fee Events applicable to FVA only; a Fee Event includes any engagement that involves revenue activity during the measurement period with a revenue minimum of one thousand dollars. References to closed transactions should be understood to be the same as transactions that are “effectively closed” as described in Note 2 of our Consolidated Financial Statements.

Corporate Finance

Three Months Ended September 30, 2022 versus September 30, 2021

Revenues for CF were $315.0 million for the three months ended September 30, 2022, compared with $388.4 million for the three months ended September 30, 2021, representing a decrease of (19)%. Revenues decreased primarily due to a decrease in the number of closed transactions when compared to the same quarter last year.

Segment profit for CF was $93.8 million for the three months ended September 30, 2022, compared with $151.2 million for the three months ended September 30, 2021, representing a decrease of (38)%. Profitability decreased primarily as a result of a decrease in revenues and an increase in non-compensation expenses when compared to the same quarter last year.

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Six Months Ended September 30, 2022 versus September 30, 2021

Revenues for CF were $579.0 million for the six months ended September 30, 2022, compared with $598.4 million for the six months ended September 30, 2021, representing a decrease of (3)%. Revenues decreased primarily due to a decrease in the average transaction fee on closed transactions when compared to the same period last year.

Segment profit for CF was $185.4 million for the six months ended September 30, 2022, compared with $236.3 million for the six months ended September 30, 2021. Profitability decreased primarily as a result of a decrease in revenues and higher non-compensation expenses when compared to the same period last year.

Financial Restructuring

Three Months Ended September 30, 2022 versus September 30, 2021

Revenues for FR were $97.7 million for the three months ended September 30, 2022, compared with $83.2 million for the three months ended September 30, 2021, representing an increase of 17%. Revenues increased primarily due to an increase in the number of closed transactions when compared to the same quarter last year and the closing of a significant fee event during the current year quarter when compared to the same quarter last year.

Segment profit for FR was $17.6 million for the three months ended September 30, 2022, compared with $20.1 million for the three months ended September 30, 2021, a decrease of (13)%. Profitability decreased primarily as a result of an increase in compensation expenses when compared to the same quarter last year.

Six Months Ended September 30, 2022 versus September 30, 2021

Revenues for FR were $176.5 million for the six months ended September 30, 2022, compared with $182.0 million for the six months ended September 30, 2021, representing a decrease of (3)%. The decrease in revenues was primarily a result of a decrease in the number of closed transactions when compared to the same period last year.

Segment profit for FR was $44.3 million for the six months ended September 30, 2022, compared with $46.2 million for the six months ended September 30, 2021, a decrease of (4)%. Profitability decreased primarily as a result of a decrease in revenues and higher non-compensation expenses when compared to the same period last year.

Financial and Valuation Advisory

Three Months Ended September 30, 2022 versus September 30, 2021

Revenues for FVA were $76.8 million for the three months ended September 30, 2022, compared with $65.7 million for the three months ended September 30, 2021, representing an increase of 17%. Revenues increased primarily due to an increase in the number of Fee Events when compared to the same quarter last year.

Segment profit for FVA was $26.2 million for the three months ended September 30, 2022, compared with $18.4 million for the three months ended September 30, 2021, an increase of 42%. Profitability increased primarily as a result of an increase in revenues and a decrease in compensation expenses as a percentage of revenues when compared to the same quarter last year.

Six Months Ended September 30, 2022 versus September 30, 2021

Revenues for FVA were $152.7 million for the six months ended September 30, 2022, compared with $129.6 million for the six months ended September 30, 2021, representing an increase of 18%. The increase in revenues was primarily a result of a higher number of Fee Events when compared to the same period last year.

Segment profit for FVA was $45.2 million for the six months ended September 30, 2022, compared with $40.6 million for the six months ended September 30, 2021, an increase of 11%. Profitability increased primarily as a result of an increase in revenues and a reduction in compensation expenses as a percentage of revenues when compared to the same period last year.

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Corporate Expenses

Three Months Ended September 30, 2022 versus September 30, 2021

Corporate expenses were $48.2 million for the three months ended September 30, 2022, compared with $32.3 million for the three months ended September 30, 2021. This 49% increase was primarily driven by corporate expenses attributable to GCA, integration costs associated with our acquisition of GCA, and amortization of intangible assets recognized in connection with the acquisition of GCA, which were not included in the same quarter last year.

Six Months Ended September 30, 2022 versus September 30, 2021

Corporate expenses were $107.9 million for the six months ended September 30, 2022, compared with $58.1 million for the six months ended September 30, 2021. This 86% increase was primarily driven by corporate expenses attributable to GCA, integration costs associated with our acquisition of GCA, and amortization of intangible assets recognized in connection with the acquisition of GCA, which were not included in the same period last year.

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Liquidity and Capital Resources

Our current assets comprise cash and cash equivalents, investment securities, receivables from affiliates, accounts receivable, and unbilled work in progress related to fees earned from providing advisory services. Our current liabilities include deferred income, accounts payable and accrued expenses, accrued salaries and bonuses, income taxes payable, and the current portion of loan obligations.

Our cash and cash equivalents include cash held at banks. We maintain moderate levels of cash on hand in support of regulatory requirements for our registered broker-dealer. As of September 30, 2022 and March 31, 2022, we had $374.4 million and $477.0 million of cash in foreign subsidiaries, respectively. Our excess cash may be invested from time to time in short-term investments, including treasury securities, commercial paper, certificates of deposit, and investment grade corporate debt securities, and special purpose acquisition companies. Please refer to Note 6 for further detail.

As of September 30, 2022 and March 31, 2022, our restricted cash, cash and cash equivalents, and investment securities were as follows:

(In thousands)	September 30, 2022		March 31, 2022
Cash and cash equivalents	$	503,806	$	833,697
Investment securities	35,742		109,143
Total unrestricted cash and cash equivalents, including investment securities	539,548		942,840
Restricted cash (1)	373		373
Total cash, cash equivalents, and restricted cash, including investment securities	$	539,921	$	943,213

(1)Represents a deposit in support of a letter of credit issued for our Frankfurt office.

Our liquidity is highly dependent upon cash receipts from clients that are generally dependent upon the successful completion of transactions, as well as the timing of receivables collections, which typically occur within 60 days of billing. As of September 30, 2022, accounts receivable, net of credit losses was $135.2 million. As of September 30, 2022, unbilled work in progress, net of credit losses was $155.9 million.

On August 23, 2019, the Company entered into a syndicated revolving line of credit with the Bank of America, N.A. and certain other financial institutions party thereto, which allows for borrowings of up to $100.0 million (and, subject to certain conditions, provides the Company with an expansion option, which, if exercised in full, would provide for a total credit facility of $200.0 million) (the "2019 Line of Credit"). On August 2, 2022, the agreement governing the 2019 Line of Credit was amended to, among other things, (a) extend the maturity to August 23, 2025, (b) replace the LIBOR reference rate with Term SOFR plus an applicable credit spread adjustment, (c) modify certain covenant restrictions, and (d) make certain other technical amendments. As of September 30, 2022, no principal was outstanding under the 2019 Line of Credit. The loan agreement requires compliance with certain loan covenants including, but not limited to, the maintenance of minimum consolidated earnings before interest, taxes, depreciation and amortization of no less than $150.0 million as of the end of any quarterly 12-month period and certain leverage ratios including a consolidated leverage ratio of less than 2.00 to 1.00. As of September 30, 2022, we were, and expect to continue to be, in compliance with such covenants.

The majority of the Company's payment obligations and commitments pertain to routine operating leases. The Company also has various obligations relating to notes payable and contingent consideration issued in connection with businesses previously acquired (see Note 10 included in Part I, Item 1 of this Form 10-Q).

In connection with certain acquisitions, certain employees may be entitled to deferred consideration, primarily in the form of retention payments, should certain service and/or performance conditions be met in the future. As a result of these conditions, such deferred consideration would be expensed as compensation in current and future periods and a portion thereof has been accrued as liabilities on the Consolidated Balance Sheets as of September 30, 2022 and March 31, 2022.

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Cash Flows

Our operating cash flows are primarily influenced by the amount and timing of receipt of advisory fees and the payment of operating expenses, including payments of incentive compensation to our employees. We pay a significant portion of our incentive compensation during the first and third quarters of each fiscal year. A summary of our operating, investing, and financing cash flows is as follows:

	Six Months Ended September 30,
(In thousands)	2022		2021		Change
Operating activities:
Net income	$	131,512	$	198,843	(34)	%
Non-cash charges	132,202		70,778		87	%
Other operating activities	(456,631)		(149,503)		205	%
Net cash provided by/(used in) operating activities	(192,917)		120,118		(261)	%
Net cash provided by investing activities	53,465		164,814		(68)	%
Net cash (used in) financing activities	(168,937)		(207,502)		(19)	%
Effects of exchange rate changes on cash, cash equivalents, and restricted cash	(21,502)		(1,272)		1,590	%
Net increase/(decrease) in cash, cash equivalents, and restricted cash	(329,891)		76,158		(533)	%
Cash, cash equivalents, and restricted cash — beginning of period	834,070		847,224		(2)	%
Cash, cash equivalents, and restricted cash — end of period	$	504,179	$	923,382	(45)	%

Six Months Ended September 30, 2022

Operating activities resulted in a net outflow of $(192.9) million, primarily attributable to cash bonus payments paid in May 2022. Investing activities resulted in a net inflow of $53.5 million, primarily attributable to sales or maturities of investment securities. Financing activities resulted in a net outflow of $(168.9) million, primarily attributable to dividends paid, share repurchases, and payments to settle employee tax obligations on share-based awards.

Six Months Ended September 30, 2021

Operating activities resulted in a net inflow of $120.1 million, primarily attributable to strong performance across the Company. Investing activities resulted in a net inflow of $164.8 million, primarily attributable to sales or maturities of investment securities. Financing activities resulted in a net outflow of $(207.5) million, primarily attributable to share repurchases, dividend payments, and payments to settle employee tax obligations on share-based awards.

Contractual Obligations

There have been no material changes outside of the ordinary course of business to our known contractual obligations, which are set forth in the table included in Item 7 in our 2022 Annual Report.

Critical Accounting Policies and Estimates

The preparation of consolidated financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the period for which they are determined to be necessary.

Business Combinations

Accounting for business combinations requires management to make significant estimates and assumptions. We allocate the purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair value as of the acquisition date, with the consideration in excess recorded a goodwill. Critical estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows, expected asset lives, geographic risk premiums, discount rates, and more. The amounts and useful lives assigned to acquisition-related intangible assets impact the amount and timing of future amortization expense.

For additional information on critical accounting policies and estimates, see “Critical Accounting Policies and Estimates” in the MD&A of the 2022 Annual Report.

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Recent Accounting Developments

For information on recently issued accounting developments and their impact or potential impact on our consolidated financial statements, see Note 2 to our unaudited consolidated financial statements in this Form 10-Q.

Item 3.    Quantitative and Qualitative Disclosures about Market Risk

Market Risk and Credit Risk

Our business is not capital intensive and we generally do not issue debt or invest in derivative instruments, other than for foreign currency hedging purposes. As a result, we are not subject to significant market risk (including interest rate risk) or credit risk (except in relation to receivables). We maintain our cash and cash equivalents with financial institutions with high credit ratings. Although these deposits are generally not insured, management believes we are not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held.

Our cash and cash equivalents are denominated primarily in U.S. dollars, pound sterling and euros, and we face foreign currency risk in our cash balances and other assets and liabilities held in accounts outside the U.S. due to potential currency movements and the associated foreign currency translation accounting requirements.

We regularly review our accounts receivable and allowance for credit losses by considering factors such as historical experience, credit quality, age of the accounts receivable and recoverable expense balances, and the current economic conditions that may affect a customer’s ability to pay such amounts owed to us. We maintain an allowance for credit losses that, in our opinion, provides for an adequate reserve to cover losses that may be incurred.

Risks Related to Cash and Short-Term Investments

Our cash is maintained in U.S. and non-U.S. bank accounts. We have exposure to foreign exchange risks through all of our international affiliates. However, we believe our cash is not subject to any material interest rate risk, equity price risk, credit risk or other market risk. Consistent with our past practice, we expect to maintain our cash in bank accounts or highly liquid securities.

Exchange Rate Risk

The exchange rate of the U.S. dollar relative to the currencies in the non-U.S. countries in which we operate may have an effect on the reported value of our non-U.S. dollar denominated or based assets and liabilities and, therefore, be reflected as a change in other comprehensive income. Our non-U.S. assets and liabilities that are sensitive to exchange rates consist primarily of trade payables and receivables, work in progress, and cash. The recent strength of the U.S. dollar as compared to the foreign currencies of our international operations has triggered foreign currency translation adjustments that are greater than usual. The net impact of the fluctuation of foreign currencies in other comprehensive income within the Consolidated Statements of Comprehensive Income was $(28,554) and $(6,037) during the three months ended September 30, 2022 and 2021, respectively, and $(50,863) and $(4,412) during the six months ended September 30, 2022 and 2021, respectively.

In addition, the reported amounts of our revenues and expenses may be affected by movements in the rate of exchange between the currencies in the non-U.S. countries in which we operate and the U.S. dollar, affecting our operating results. We have analyzed our potential exposure to changes in the value of the U.S. dollar relative to the pound sterling and euro, the primary currencies of our European operations, by performing a sensitivity analysis on our net income, and determined that while our earnings are subject to fluctuations from changes in foreign currency rates, at this time we do not believe we face any material risk in this respect.

From time to time, we enter into transactions to hedge our exposure to certain foreign currency fluctuations through the use of derivative instruments or other methods. As of September 30, 2022, we had two foreign currency forward contracts outstanding between the pound sterling and the euro with notional values of €7.5 million and €0.5 million. As of September 30, 2021, we had one foreign currency forward contract outstanding between the pound sterling and the euro with a notional value of €1.7 million. The change in fair value of these contracts represented a net loss included in Other operating expenses of $(232000) and $(7000) during the three months ended September 30, 2022 and September 30, 2021, respectively.

In summary, we have been impacted by changes in exchange rates and the potential impact of future currency fluctuation will increase as our international expansion continues. The magnitude of this impact will depend on the timing and volume of revenues and expenses of, and the amounts of assets and liabilities in, our foreign subsidiaries along with the timing of changes in the relative value of the U.S. dollar to the currencies of the non-U.S. countries in which we operate.

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Item 4.        Controls and Procedures

Limitations on Effectiveness of Controls and Procedures

In designing and evaluating our disclosure controls and procedures, management, including the chief executive officer and chief financial officer, recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute, assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected.

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our chief executive officer and chief financial officer, evaluated, as of the end of the period covered by this Quarterly Report on Form 10-Q, the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). Based on that evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of September 30, 2022.

Changes in Internal Control Over Financial Reporting

There was no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) identified in connection with the evaluation of our internal control over financial reporting performed during the fiscal quarter ended September 30, 2022 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1.    Legal Proceedings

From time to time, we may be subject to legal proceedings and claims in the ordinary course of business. There has been no material change in the nature of our legal proceedings from the descriptions contained in our 2022 Annual Report.

Item 1A.    Risk Factors

There have been no material changes to the risk factors disclosed in our 2022 Annual Report.

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds

Purchases of Equity Securities

The following table summarizes all of the repurchases of Houlihan Lokey, Inc. equity securities during the quarter ended September 30, 2022:

Period	Total Number of Shares Purchased	Average Price Paid Per  Share		Total Number of Shares Purchased As Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (1)
July 1, 2022 - July 31, 2022 (2)	1,053	$	77.91	—	$	500,000,000
August 1, 2022 - August 31, 2022	100,257	81.56		100,257	491,822,711
September 1, 2022 - September 30, 2022 (3)	41	80.22		—	491,822,711
Total	101,351	$	81.52	100,257	$	491,822,711

(1)The shares of Class A common stock repurchased through this program have been retired. In April 2022, the Company’s board of directors authorized a replacement program to the previous July 2021 share repurchase program, which provides for share repurchases of a new aggregate amount of up to $500 million of the Company's Class A common stock and Class B common stock.

(2)Total Number of Shares Purchased consists of 1,053 unvested shares of Class B common stock at an average price per share of $77.91, which were withheld from employees to satisfy tax withholding obligations resulting from the vesting of certain restricted stock awards.

(3)Total Number of Shares Purchased consists of 41 unvested shares of Class B common stock at an average price per share of $80.22, which were withheld from employees to satisfy tax withholding obligations resulting from the vesting of certain restricted stock awards.

38

Item 3.    Defaults upon Senior Securities

None.

Item 4.    Mine Safety Disclosures

Not applicable.

Item 5.    Other Information

None.

39

Item 6.    Exhibits

		Incorporated by Reference
Exhibit Number	Exhibit Description	Form	File No.	Exhibit	Filing Date	Filed / Furnished Herewith
3.1	Amended and Restated Certificate of Incorporation of Houlihan Lokey, Inc., dated August 18, 2015.	8-K	333-205610	3.1	8/21/15
3.2	Amended and Restated Bylaws of the Company, dated August 18, 2015.	8-K	333-205610	3.2	8/21/15
10.1	First Amendment to Credit Agreement, dated as of August 2, 2022, among the Company and the lenders party thereto	10-Q	001-37537	10.2	8/5/22
31.1	Rule 13a-14(a) / 15d-14(a) Certification of Chief Executive Officer.					*
31.2	Rule 13a-14(a) / 15d-14(a) Certification of Chief Financial Officer.					*
32.1	Section 1350 Certification of Chief Executive Officer.					**
32.2	Section 1350 Certification of Chief Financial Officer.					**
101.INS	Inline XBRL Instance Document - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.					*
101.SCH	Inline XBRL Taxonomy Extension Schema Document.					*
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document.					*
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document.					*
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document.					*
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document.					*
104.1	Cover Page Interactive Data File - The cover page interactive data file does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.					*

*	Filed herewith.
**	Furnished herewith.

40

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		HOULIHAN LOKEY, INC.
Date:	November 3, 2022	/s/ SCOTT L. BEISER
		Scott L. Beiser
		Chief Executive Officer
		(Principal Executive Officer)
Date:	November 3, 2022	/s/ J. LINDSEY ALLEY
		J. Lindsey Alley
		Chief Financial Officer
		(Principal Financial and Accounting Officer)

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Scott L. Beiser, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q for the period ending September 30, 2022 of Houlihan Lokey, Inc. as filed with the Securities and Exchange Commission on the date hereof;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 3, 2022	/s/ SCOTT L. BEISER
		Scott L. Beiser
		Chief Executive Officer
		(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, J. Lindsey Alley, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q for the period ending September 30, 2022 of Houlihan Lokey, Inc. as filed with the Securities and Exchange Commission on the date hereof;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 3, 2022	/s/ J. LINDSEY ALLEY
		J. Lindsey Alley
		Chief Financial Officer
		(Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Scott L. Beiser, Chief Executive Officer and Director of Houlihan Lokey, Inc. (the “Company”), hereby certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1)The Quarterly Report on Form 10-Q of the Company for the period ended September 30, 2022 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	November 3, 2022	/s/ SCOTT L. BEISER
		Scott L. Beiser
		Chief Executive Officer
		(Principal Executive Officer)

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, J. Lindsey Alley, Chief Financial Officer of Houlihan Lokey, Inc. (the “Company”), hereby certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1)The Quarterly Report on Form 10-Q of the Company for the period ended September 30, 2022 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	November 3, 2022	/s/ J. LINDSEY ALLEY
		J. Lindsey Alley
		Chief Financial Officer
		(Principal Financial and Accounting Officer)

XML

Cover Page - shares	6 Months Ended
	Sep. 30, 2022	Oct. 31, 2022
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	001-37537
Entity Registrant Name	Houlihan Lokey, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	95-2770395
Entity Address, Address Line One	10250 Constellation Blvd.
Entity Address, Address Line Two	5th Floor
Entity Address, City or Town	Los Angeles
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90067
City Area Code	(310)
Local Phone Number	788-5200
Title of 12(b) Security	Class A Common Stock, par value $0.001
Trading Symbol	HLI
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Amendment Flag	false
Entity Central Index Key	0001302215
Current Fiscal Year End Date	--03-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Class A Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		49,850,823
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		18,802,093

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2022	Mar. 31, 2022
Assets
Cash and cash equivalents	$ 503,806	$ 833,697
Restricted cash	373	373
Investment securities	35,742	109,143
Accounts receivable, net of allowance for credit losses of $7,698 and $8,954, respectively	135,191	144,029
Unbilled work in progress, net of allowance for credit losses of $6,974 and $4,320, respectively	155,935	104,751
Deferred income taxes	112,092	95,278
Property and equipment, net	62,206	52,176
Operating lease right-of-use assets	168,291	171,942
Goodwill	1,051,294	1,070,442
Other Intangible Assets, Net	214,598	247,333
Other intangible assets, net	70,671	57,646
Other assets	2,510,199	2,886,810
Liabilities:	685,568	953,604
Liabilities:
Accounts payable and accrued expenses	98,182	126,190
Deferred income	35,482	28,753
Income taxes payable	3,869	61,266
Deferred income taxes	538	789
Loans Payable	506	539
Operating Lease, Liability	188,937	197,091
Other Liabilities	50,449	74,873
Total liabilities	1,063,531	1,443,105
Additional paid-in capital	559,605	564,761
Retained earnings	981,204	922,223
Accumulated other comprehensive loss	(94,210)	(43,347)
Total stockholders' equity	1,446,668	1,443,705
Total liabilities and stockholders' equity	2,510,199	2,886,810
Common Class A
Common stock	50	50
Common Class B
Common stock	$ 19	$ 18

XML

CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Thousands	Sep. 30, 2022	Mar. 31, 2022
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 7,698	$ 8,954
Allowance for doubtful accounts, unbilled work in process	$ 6,974	$ 4,320
Common Class A
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	49,780,875	49,853,564
Common Stock, Shares, Outstanding	49,780,875	49,853,564
Common Class B
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	18,874,122	17,649,555
Common Stock, Shares, Outstanding	18,874,122	17,649,555

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
Revenues	$ 489,537	$ 537,272	$ 908,181	$ 909,994
Operating expenses:
Employee compensation and benefits	309,859	333,374	575,594	565,678
Travel, meals, and entertainment	12,370	4,687	23,420	6,374
Rent	13,285	9,050	25,075	19,275
Depreciation and amortization	19,475	4,344	38,618	8,515
Information technology and communications	13,183	8,858	24,173	15,819
Professional fees	9,598	6,915	16,067	13,616
Other operating expenses	22,396	12,725	38,293	15,722
Total operating expenses	400,166	379,953	741,240	644,999
Operating income	89,371	157,319	166,941	264,995
Other expense, net	5,104	853	6,853	752
Income before provision for income taxes	84,267	156,466	160,088	264,243
Provision for income taxes	23,537	43,583	28,576	65,400
Net income	60,730	112,883	131,512	198,843
Other comprehensive income, net of tax:
Foreign currency translation adjustments	(28,554)	(6,037)	(50,863)	(4,412)
Comprehensive income attributable to Houlihan Lokey, Inc.	$ 32,176	$ 106,846	$ 80,649	$ 194,431
Weighted average shares of common stock outstanding:
Basic (in shares)	63,422,701	65,156,968	63,350,545	65,433,649
Fully Diluted (in shares)	69,800,028	68,566,127	69,316,792	68,641,962
Net income per share of common stock
Basic (in dollars per share)	$ 0.96	$ 1.73	$ 2.08	$ 3.04
Fully Diluted (in dollars per share)	$ 0.87	$ 1.65	$ 1.90	$ 2.90

XML

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Class A Common Stock	Class B Common Stock	Total Stockholders' Equity	Common stock Class A Common Stock	Common stock Class B Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Mar. 31, 2021					51,245,442	16,951,696
Beginning balance at Mar. 31, 2021				$ 1,383,561	$ 51	$ 17	$ 803,573	$ 600,096	$ (20,176)
Increase (Decrease) in Stockholders' Equity
Shares issued (in shares)						2,014,510
Shares issued				14,640		$ 2	14,638
Stock compensation vesting				49,014			49,014
Dividends				(57,261)				(57,261)
Conversion of Class B to Class A shares (in shares)					1,103,085	(1,103,085)
Conversion of Class B to Class A shares				0	$ (1)	$ 1
Shares issued to non-employee directors (in shares)					6,512
Other shares repurchased/forfeited (in shares)					(1,428,034)	(514,816)
Other shares repurchased/forfeited				(146,648)	$ (1)	$ (1)	(146,646)
Net income	$ 198,843			198,843				198,843
Change in unrealized translation				(4,412)					(4,412)
Total comprehensive income				194,431				198,843	(4,412)
Ending balance (in shares) at Sep. 30, 2021					50,927,005	17,348,305
Ending balance at Sep. 30, 2021				1,437,737	$ 51	$ 17	720,579	741,678	(24,588)
Beginning balance (in shares) at Jun. 30, 2021					51,091,269	17,745,973
Beginning balance at Jun. 30, 2021				1,384,598	$ 51	$ 18	745,705	657,375	(18,551)
Increase (Decrease) in Stockholders' Equity
Shares issued (in shares)						31,867
Shares issued				2,615			2,615
Stock compensation vesting				17,717			17,717
Dividends				(28,580)				(28,580)
Conversion of Class B to Class A shares (in shares)					(384,632)	384,632
Other shares repurchased/forfeited (in shares)					(548,896)	(44,903)
Other shares repurchased/forfeited				(45,459)		$ (1)	(45,458)
Net income	112,883			112,883				112,883
Change in unrealized translation				(6,037)					(6,037)
Total comprehensive income				106,846				112,883	(6,037)
Ending balance (in shares) at Sep. 30, 2021					50,927,005	17,348,305
Ending balance at Sep. 30, 2021				1,437,737	$ 51	$ 17	720,579	741,678	(24,588)
Beginning balance (in shares) at Mar. 31, 2022		49,853,564	17,649,555		49,853,564	17,649,555
Beginning balance at Mar. 31, 2022	1,443,705			1,443,705	$ 50	$ 18	564,761	922,223	(43,347)
Increase (Decrease) in Stockholders' Equity
Shares issued (in shares)						2,304,890
Shares issued				6,021		$ 2	6,019
Stock compensation vesting				79,362			79,362
Dividends				(72,531)				(72,531)
Conversion of Class B to Class A shares (in shares)					497,859	(497,859)
Shares issued to non-employee directors (in shares)					6,739
Shares issued to non-employee directors				570			570
Other shares repurchased/forfeited (in shares)					(577,287)	(582,464)
Other shares repurchased/forfeited				(91,108)		$ (1)	(91,107)
Net income	131,512			131,512				131,512
Change in unrealized translation				(50,863)					(50,863)
Total comprehensive income				80,649				131,512	(50,863)
Ending balance (in shares) at Sep. 30, 2022		49,780,875	18,874,122		49,780,875	18,874,122
Ending balance at Sep. 30, 2022	1,446,668			1,446,668	$ 50	$ 19	559,605	981,204	(94,210)
Beginning balance (in shares) at Jun. 30, 2022					49,649,765	19,136,952
Beginning balance at Jun. 30, 2022				1,417,563	$ 50	$ 19	527,666	955,484	(65,656)
Increase (Decrease) in Stockholders' Equity
Shares issued (in shares)						32,310
Stock compensation vesting				40,195			40,195
Dividends				(35,010)				(35,010)
Conversion of Class B to Class A shares (in shares)					231,367	(231,367)
Other shares repurchased/forfeited (in shares)					(100,257)	(63,773)
Other shares repurchased/forfeited				(8,256)			(8,256)
Net income	60,730			60,730				60,730
Change in unrealized translation				(28,554)					(28,554)
Total comprehensive income				32,176				60,730	(28,554)
Ending balance (in shares) at Sep. 30, 2022		49,780,875	18,874,122		49,780,875	18,874,122
Ending balance at Sep. 30, 2022	$ 1,446,668			$ 1,446,668	$ 50	$ 19	$ 559,605	$ 981,204	$ (94,210)

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities:
Net income	$ 131,512	$ 198,843
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income taxes	(14,088)	(8,068)
Provision for bad debts, net	6,103	5,559
Unrealized losses on investment securities	2,140	575
Non-cash lease expense	14,554	10,951
Depreciation and amortization	38,618	8,515
Contingent consideration valuation	2,869	0
Compensation expense – equity and liability classified share awards (Note 14)	82,006	53,246
Changes in operating assets and liabilities:
Accounts receivable	5,388	(24,388)
Unbilled work in progress	(53,837)	2,383
Other assets	(13,025)	7,732
Accrued salaries and bonuses	(264,724)	(69,542)
Accounts payable and accrued expenses and other	(79,174)	(19,434)
Deferred income	6,729	(945)
Income taxes payable	(57,988)	(45,309)
Net cash provided by/(used in) operating activities	(192,917)	120,118
Cash flows from investing activities:
Purchases of investment securities	(11,263)	(24,721)
Sales or maturities of investment securities	82,524	192,339
Acquisition of business, net of cash acquired	0	(304)
Purchase of property and equipment, net	(17,796)	(2,500)
Net cash provided by investing activities	53,465	164,814
Cash flows from financing activities:
Dividends paid	(73,812)	(59,504)
Share repurchases	(48,905)	(112,946)
Payments to settle employee tax obligations on share-based awards	(42,191)	(33,700)
Earnouts paid	(2,078)	(1,723)
Loans payable to former shareholders redeemed	(33)	(107)
Repayments of loans to non-affiliates	(2,488)	0
Other financing activities	570	478
Net cash (used in) financing activities	(168,937)	(207,502)
Effects of exchange rate changes on cash, cash equivalents, and restricted cash	(21,502)	(1,272)
Net increase/(decrease) in cash, cash equivalents, and restricted cash	(329,891)	76,158
Cash, cash equivalents, and restricted cash – beginning of period	834,070	847,224
Cash, cash equivalents, and restricted cash – end of period	504,179	923,382
Supplemental disclosures of non-cash activities:
Shares issued via vesting of liability classified awards	5,955	4,270
Fully amortized intangibles written off	0	2,000
Cash acquired through acquisitions	0	15,285
Cash paid during the period:
Interest	1,861	454
Taxes, net of refunds	$ 102,418	$ 118,685

XML

BACKGROUND

6 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BACKGROUND

Background

Houlihan Lokey, Inc. ("Houlihan Lokey" or "HL, Inc.," also referred to as the "Company," "we," "our," or "us") is a Delaware corporation that controls the following primary subsidiaries:

•Houlihan Lokey Capital, Inc., a California corporation ("HL Capital, Inc."), is a wholly-owned direct subsidiary of HL, Inc. HL Capital, Inc. is registered as a broker-dealer under Section 15(b) of the Securities Exchange Act of 1934 and a member of Financial Industry Regulatory Authority, Inc.

•Houlihan Lokey Financial Advisors, Inc., a California corporation ("HL FA, Inc."), is a wholly-owned direct subsidiary of HL, Inc.

•HL Finance, LLC ("HL Finance"), a syndicated leveraged finance platform established to arrange senior secured leveraged loans for financial sponsor-backed, privately-held, and public corporate entities. HL Finance acts as an arranger on syndicated loan transactions and has entered into an agreement with an unaffiliated third party investor that may provide commitments with respect to certain syndicated loans arranged by HL Finance.

•Houlihan Lokey EMEA, LLP, a limited liability partnership registered in England ("HL EMEA, LLP"), is an indirect subsidiary of HL, Inc. HL EMEA, LLP is regulated by the Financial Conduct Authority in the United Kingdom ("U.K.").

The Company offers financial services and financial advice to a broad clientele located through more than thirty offices in the United States of America, Europe, the Middle East, and the Asia-Pacific region. Together, the Company and its subsidiaries form an organization that provides financial services to meet a wide variety of client needs. The Company concentrates its efforts toward the earning of professional fees with focused services across the following three business segments:

•Corporate Finance ("CF") provides general financial advisory services in addition to advice on mergers and acquisitions and capital markets offerings. We advise public and private institutions on a wide variety of situations, including buy-side and sell-side transactions, as well as leveraged loans, private mezzanine debt, high-yield debt, initial public offerings, follow-ons, convertibles, equity private placements, private equity, and liability management transactions, and advise financial sponsors on all types of transactions. The majority of our CF revenues consists of fees paid upon the successful completion of the transaction or engagement ("Completion Fees"). A CF transaction can fail to be completed for many reasons that are outside of our control. In these instances, our fees are generally limited to the fees paid at the time an engagement letter is signed ("Retainer Fees") and in some cases fees paid during the course of the engagement ("Progress Fees") that may have been received.

•Financial Restructuring ("FR") provides advice to debtors, creditors and other parties-in-interest in connection with recapitalization/deleveraging transactions implemented both through bankruptcy proceedings and through out-of-court exchanges, consent solicitations or other mechanisms, as well as in distressed mergers and acquisitions and capital markets activities. As part of these engagements, our FR business segment offers a wide range of advisory services to our clients, including: the structuring, negotiation, and confirmation of plans of reorganization; structuring and analysis of exchange offers; corporate viability assessment; dispute resolution and expert testimony; and procuring debtor-in-possession financing. Although atypical, FR transactions can fail to be completed for many reasons that are outside of our control. In these instances, our fees are generally limited to the Retainer Fees and/or Progress Fees.

•Financial and Valuation Advisory ("FVA") primarily provides valuations of various assets, including: companies; illiquid debt and equity securities; and intellectual property (among other assets and liabilities). These valuations are used for financial reporting, tax reporting, and other purposes. In addition, our FVA business segment renders fairness opinions in connection with mergers and acquisitions and other transactions, and solvency opinions in connection with corporate spin-offs and dividend recapitalizations, and other types of financial opinions in connection with other transactions. Also, our FVA business segment provides dispute resolution services to clients where fees are usually based on the hourly rates of our financial professionals. Unlike our CF or FR segments, the fees generated in our FVA segment are generally not contingent on the successful completion of a transaction.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Summary of Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. ("GAAP"), pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the "SEC"), and include all information and footnotes required for consolidated financial statement presentation. The results of operations for the six months ended September 30, 2022 are not necessarily indicative of the results of operations to be expected for the fiscal year ending March 31, 2023. The unaudited interim consolidated financial statements and notes to consolidated financial statements should be read in conjunction with the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2022 (the "2022 Annual Report").

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its subsidiaries where it has a controlling financial interest. All intercompany balances and transactions have been eliminated.

The Company carries its investments in unconsolidated entities over which it has significant influence but does not control using the equity method, and includes its ownership share of the income and losses in Other expense, net in the Consolidated Statements of Comprehensive Income.

The Company’s equity method investments include variable interest entities (VIEs), which are defined as entities in which equity investors (i) do not have the characteristics of a controlling financial interest, and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The entity that consolidates a VIE is known as its primary beneficiary, and is generally the entity with (i) the power to direct the activities that most significantly impact the VIE’s economic performance, and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE.

Our involvement with VIEs arises from our variable interest related to a special purpose acquisition company of which the Company is a sponsor. The Company's exposure to loss from such VIEs is not material to our operating results and financial position.

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements. Management estimates and assumptions also affect the reported amounts of revenues and expenses during the reporting period, and disclosure of contingent assets and liabilities at the reporting date. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. Management adjusts such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Items subject to such estimates and assumptions include, but are not limited to: the allowance for credit losses; the valuation of deferred tax assets, valuation of acquired intangibles and goodwill, accrued expenses, and share based compensation; the allocation of goodwill and other assets across the reporting units (segments); and reserves for income tax uncertainties and other contingencies.

Revenues

Revenues consist of fee revenues from advisory services and reimbursed costs incurred in fulfilling the contracts. Revenues reflect fees generated from our CF, FR, and FVA business segments.

The Company generates revenues from contractual advisory services and reimbursed costs incurred in fulfilling the contracts for such services. Revenues for all three business segments (CF, FR, and FVA) are recognized upon satisfaction of the performance obligation, which may be satisfied over time or at a point in time. The amount and timing of the fees paid vary by the type of engagement.

The amount of revenue recognized reflects the consideration we expect to be entitled to in exchange for those promised services (i.e., the “transaction price”). In determining the transaction price, we consider multiple factors, including the effects of variable consideration. Variable consideration is included in the transaction price only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainties with respect to the amount are resolved. In determining when to include variable consideration in the transaction price, we consider the range of possible outcomes, the predictive value of our past experiences, the time period of when uncertainties expect to be resolved and the amount of consideration that is susceptible to factors outside of our influence, such as market volatility or the judgment and actions of third parties. The substantial majority of the Company’s advisory fees (i.e., the success related Completion Fees) are considered variable and constrained as they are contingent upon a future event which includes factors outside of our control (e.g., completion of a transaction or third party emergence from bankruptcy or approval by the court).

Revenues for all three business segments are recognized upon satisfaction of the performance obligation and may be satisfied over time or at a point in time. The amount and timing of the fees paid vary by the type of engagement.

Revenues from CF engagements primarily consist of fees generated in connection with advisory services related to corporate finance, mergers and acquisitions, and capital markets offerings. Completion Fees from these engagements are recognized at a point in time when the related transaction has been effectively closed. At that time, the Company has transferred control of the promised service and the customer obtains control. CF contracts generally contain a variety of promised services that may be capable of being distinct, but they are not distinct within the context of the contract as the various services are inputs to the combined output of successfully brokering a specific transaction.

Revenues from FR engagements primarily consist of fees generated in connection with advisory services to debtors, creditors and other parties-in-interest involving recapitalization or deleveraging transactions implemented both through bankruptcy proceedings and through out-of-court exchanges, consent solicitations or other mechanisms, as well as in distressed mergers and acquisitions and capital markets activities. Retainer Fees and Progress Fees from restructuring engagements are recognized over time using a time elapsed measure of progress as our clients simultaneously receive and consume the benefits of those services as they are provided. Completion Fees from these engagements are considered variable and constrained until the related transaction has been effectively closed as they are contingent upon a future event, which includes factors outside of our control (e.g., completion of a transaction or third party emergence from bankruptcy or approval by the court).

Revenues from FVA engagements primarily consist of fees generated in connection with valuation and diligence services and rendering fairness, solvency and other financial opinions. Revenues are recognized at a point in time as these engagements include a singular objective that does not transfer any notable value to the Company’s clients until the opinions have been rendered and delivered to the client. However, certain engagements consist of advisory services where fees are usually based on the hourly rates of our financial professionals. Such revenues are recognized over time as the benefits of these advisory services are transferred to the Company’s clients throughout the course of the engagement, and, as a practical expedient, the Company has elected to use the ‘as-invoiced’ approach to recognize revenue.

Taxes, including value added taxes, collected from customers and remitted to governmental authorities are accounted for on a net basis, and therefore, are excluded from revenue in the Consolidated Statements of Comprehensive Income.

Operating Expenses

The majority of the Company’s operating expenses are related to compensation for employees, which includes the amortization of the relevant portion of the Company’s share-based incentive plans (Note 14). Other types of operating expenses include: Travel, meals, and entertainment; Rent; Depreciation and amortization; Information technology and communications; Professional fees; and Other operating expenses.

Translation of Foreign Currency Transactions

The reporting currency for the consolidated financial statements of the Company is the U.S. dollar. The assets and liabilities of subsidiaries whose functional currency is other than the U.S. dollar are included in the consolidation by translating the assets and liabilities at the reporting period-end exchange rates; however, revenues and expenses are translated using the applicable exchange rates determined on a monthly basis throughout the fiscal year. Resulting translation adjustments are reported as a separate component of Accumulated other comprehensive loss, net of applicable taxes.

From time to time, we enter into transactions to hedge our exposure to certain foreign currency fluctuations through the use of derivative instruments or other methods. As of September 30, 2022, we had two foreign currency forward contracts outstanding between the pound sterling and the euro with notional values of €7.5 million and €0.5 million. As of September 30, 2021, we had one foreign currency forward contract outstanding between the pound sterling and the euro with a notional value of €1.7 million. The change in fair value of these contracts represented a net loss included in Other operating expenses of $(232) and $(7) during the three months ended September 30, 2022 and September 30, 2021, respectively.

Fair Value Measurements

The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels in accordance with Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurement:

•Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date.

•Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.

•Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date.

For Level 3 investments in which pricing inputs are unobservable and limited market activity exists, management's determination of fair value is based upon the best information available, and may incorporate management's own assumptions or involve a significant degree of judgment.

The following methods and assumptions were used by the Company in estimating fair value disclosures:

•Corporate debt securities: All fair value measurements are obtained from a third-party pricing service and are not adjusted by management.

•U.S. treasury securities: Fair values for U.S. treasury securities are based on quoted prices from recent trading activity of identical or similar securities. All fair value measurements are obtained from a third-party pricing service and are not adjusted by management.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given investment is based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and consideration of factors specific to the instrument.

The fair values of the financial instruments represent the amounts that would be received to sell assets or that would be paid to transfer liabilities in an orderly transaction between market participants as of a specified date. Fair value measurements maximize the use of observable inputs; however, in situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects the Company’s own judgments about the assumptions that market participants would use in pricing the asset or liability. Those judgments are developed by the Company based on the best information available in the circumstances, including expected cash flows and appropriately risk-adjusted discount rates, as well as available observable and unobservable inputs.

The carrying value of Cash and cash equivalents, Restricted cash, Accounts receivable, Unbilled work in progress, Accounts payable and accrued expenses, and Deferred income approximates fair value due to the short maturity of these instruments.

The carrying value of the loans to employees included in Other assets, Loans payable to former shareholders, and an unsecured loan which is included in Loan payable to non-affiliate approximates fair value due to the variable interest rate borne by those instruments.

Cash and Cash Equivalents, and Restricted Cash

Cash and cash equivalents include cash held at banks and highly liquid investments with original maturities of three months or less. As of September 30, 2022 and March 31, 2022, the Company had cash balances with banks in excess of insured limits. The Company believes it is not exposed to any significant credit risk with respect to Cash and cash equivalents.

The following table provides a reconciliation of Cash and cash equivalents, and Restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Consolidated Statements of Cash Flows.     

	September 30, 2022		March 31, 2022
Cash and cash equivalents	$	503,806	$	833,697
Restricted cash (1)	373		373
Total cash, cash equivalents, and restricted cash	$	504,179	$	834,070

(1)Restricted cash as of September 30, 2022 and March 31, 2022 consisted of a cash secured letter of credit issued for our Frankfurt office.

Investment Securities

Investment securities consist primarily of corporate debt and U.S. treasury securities with original maturities over 90 days. The Company classifies its corporate debt and U.S. treasury securities as trading and measures them at fair value in the Consolidated Balance Sheets. Unrealized holding gains and losses for trading securities are included in Other operating expenses in the accompanying Consolidated Statements of Comprehensive Income.     

Allowance for Credit Losses

The allowance for credit losses on accounts receivable and unbilled work in progress reflects management’s best estimate of expected losses using the Company's internal current expected credit losses model. This model analyzes expected losses based on relevant information about historical experience, current conditions, and reasonable and supportable forecasts that could potentially affect the collectibility of the reported amounts. This is recorded through provision for bad debts, which is included in Other operating expenses in the accompanying Consolidated Statements of Comprehensive Income. Amounts deemed to be uncollectible are written off against the allowance for credit losses.

Property and Equipment

Property and equipment are stated at cost. Repair and maintenance charges are expensed as incurred and costs of renewals or improvements are capitalized at cost. Depreciation on furniture and office equipment is recognized on a straight-line basis over the estimated useful lives of the respective assets.

Income Taxes

The Company files consolidated federal income tax returns, as well as consolidated and separate returns in state and local jurisdictions, and the Company reports income tax expense on this basis.

We account for income taxes in accordance with ASC Topic 740, Income Taxes, which requires the recognition of tax benefits or expenses on temporary differences between the financial reporting and tax basis of our assets and liabilities. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities. The measurement of the deferred items is based on enacted tax laws and applicable tax rates. A valuation allowance related to a deferred tax asset is recorded if it is more likely than not that some portion or all of the deferred tax asset will not be realized.

The Company utilized a comprehensive model to recognize, measure, present, and disclose in its financial statements any uncertain tax positions that have been taken or are expected to be taken on a tax return. The impact of an uncertain tax position that is more likely than not of being sustained upon audit by the relevant taxing authority must be recognized at the largest amount that is more likely than not to be sustained. No portion of an uncertain tax position will be recognized if the position has less than a 50% likelihood of being sustained. Interest expense and penalties related to income taxes are included in the provision for income taxes in the accompanying Consolidated Statements of Comprehensive Income.

The Global Intangible Low-Taxed Income tax (“GILTI inclusion”) can be recognized in the financial statements through an accounting policy election by either recording a period cost (permanent item) or providing deferred income taxes stemming from certain basis differences that are expected to result in GILTI inclusion. The Company has elected to account for the tax impacts of the GILTI inclusion as a period cost.

Leases

We assess whether an arrangement is or contains a lease at the inception of the agreement. Right-of-use ("ROU") assets represent our right to use underlying assets for the lease term and lease liabilities represent our obligation to make lease payments arising from leases. ROU assets and lease liabilities are recognized at the commencement date based on the present value of future lease payments over the lease terms utilizing the discount rate implicit in the leases. If the discount rate implicit in the leases is not readily determinable, the present value of future lease payments is calculated utilizing the Company’s incremental borrowing rate, which approximates the interest that the Company would have to pay on a secured loan. The Company elected to utilize a portfolio approach and applies the rates to a portfolio of leases with similar terms and economic environments. The terms of our leases used to determine the ROU asset and lease liability account for options to extend when it is reasonably certain that we will exercise those options, if applicable. ROU assets and lease liabilities are subject to adjustment in the event of modification to lease terms, changes in probability that an option to extend or terminate a lease would be exercised and other factors. In addition, ROU assets are periodically reviewed for impairment.

Lease expense is recognized on a straight-line basis over the lease terms. Lease expense includes amortization of the ROU assets and accretion of the lease liabilities. Amortization of ROU assets is calculated as the periodic lease cost less accretion of the lease liability. The amortized period for ROU assets is limited to the expected lease term.

The Company has elected a practical expedient to combine the lease and non-lease components into a single lease component. The Company also elected the short-term lease measurement and recognition exemption and does not establish ROU assets or lease liabilities for operating leases with terms of 12 months or less.

Goodwill and Intangible Assets

Goodwill represents an acquired company’s acquisition cost over the fair value of acquired net tangible and intangible assets. Goodwill is the net asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Intangible assets identified and accounted for include tradenames and marks, backlog, developed technologies, and customer relationships. Those intangible assets with finite lives, including backlog and customer relationships, are amortized over their estimated useful lives.

Goodwill is reviewed annually for impairment and more frequently if potential impairment indicators exist. Goodwill is reviewed for impairment in accordance with Accounting Standards Update ("ASU") No. 2011-08, Testing Goodwill for Impairment, which permits management to make a qualitative assessment of whether it is more likely than not that one of its reporting unit’s fair value is less than its carrying amount before applying the two-step goodwill impairment test. If management concludes that it is not more likely than not that the fair value of the reporting unit is less than its carrying amount, then management would not be required to perform the two-step impairment test for that reporting unit. If the assessment indicates that it is more likely than not that the reporting unit’s fair value is less than its carrying value, management must test further for impairment utilizing a two-step process. Step 1 compares the estimated fair value of the reporting unit with its carrying value, including goodwill. If the carrying value of the reporting unit exceeds the estimated fair value, an impairment exists and is measured in Step 2 as the excess of the recorded amount of goodwill over the implied fair value of goodwill resulting from the valuation of the reporting unit. Impairment testing of goodwill requires a significant amount of judgment in assessing qualitative factors and estimating the fair value of the reporting unit, if necessary. The fair value is determined using an estimated market value approach, which considers estimates of future after tax cash flows, including a terminal value based on market earnings multiples, discounted at an appropriate market rate. As of September 30, 2022, management concluded that it was not more likely than not that the Company’s reporting units’ fair value was less than their carrying amount and no further impairment testing had been considered necessary.

Indefinite-lived intangible assets are reviewed annually for impairment in accordance with ASU 2012-02, Testing Indefinite-lived Intangible Assets for Impairment, which provides management the option to perform a qualitative assessment. If it is more likely than not that the asset is impaired, the amount that the carrying value exceeds the fair value is recorded as an impairment expense. As of September 30, 2022, management concluded that it was not more likely than not that the fair values were less than the carrying values.

Intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group (inclusive of other long-lived assets) be tested for possible impairment, management first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. As of September 30, 2022, no events or changes in circumstances were identified that indicated that the carrying amount of the finite-lived intangible assets were not recoverable.

Business Combinations

Accounting for business combinations requires management to make significant estimates and assumptions. We allocate the purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair value as of the acquisition date, with the consideration in excess recorded as goodwill. Critical estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows, expected asset lives, geographic risk premiums, discount rates, and more. The amounts and useful lives assigned to acquisition-related intangible assets impact the amount and timing of future amortization expense.

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REVENUE RECOGNITION

3 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

Revenue Recognition

Disaggregation of Revenues

The Company has disclosed disaggregated revenues based on its business segment and geographical area, which provides a reasonable representation of how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. See Note 18 for additional information.

Contract Balances

The timing of revenue recognition may differ from the timing of payment by customers. The Company records a receivable when revenue is recognized prior to payment and there is an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, the Company records deferred income (contract liability) until the performance obligations are satisfied.

Costs incurred in fulfilling advisory contracts with point-in-time revenue recognition are recorded as a contract asset when the costs (i) relate directly to a contract, (ii) generate or enhance resources of the Company that will be used in satisfying performance obligations, and (iii) are expected to be recovered. The Company amortizes the contract asset costs related to fulfilling a contract based on recognition of fee revenues for the corresponding contract.

Costs incurred in fulfilling an advisory contract with over-time revenue recognition are expensed as incurred.

The change in the Company’s contract assets and liabilities during the period primarily reflects the timing difference between the Company’s performance and the customer’s payment. The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers:

	April 1, 2022		Increase/(Decrease)		September 30, 2022
Receivables (1)	$	139,680	$	(9,739)	$	129,941
Unbilled work in progress, net of allowance for credit losses	104,751		51,184		155,935
Contract Assets (1)	4,349		901		5,250
Contract Liabilities (2)	28,753		6,729		35,482

(1)Included within Accounts receivable, net of allowance for credit losses in the September 30, 2022 Consolidated Balance Sheet.

(2)Included within Deferred income in the September 30, 2022 Consolidated Balance Sheet.

During the three and six months ended September 30, 2022, $1.0 million and $6.5 million of Revenues, respectively, were recognized that were included in the Deferred income balance at the beginning of the period.

As a practical expedient, the Company does not disclose information about remaining performance obligations pertaining to (i) contracts that have an original expected duration of one year or less, and/or (ii) contracts where the variable consideration is allocated entirely to a wholly unsatisfied promise to transfer a distinct service that is or forms part of a single performance obligation. The transaction price allocated to remaining unsatisfied or partially unsatisfied performance obligations with an original expected duration exceeding one year was not material at September 30, 2022.

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RELATED PARTY TRANSACTIONS	6 Months Ended
	Sep. 30, 2022
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	Related Party TransactionsOther assets in the accompanying Consolidated Balance Sheets includes loans receivable from certain employees of $23,447 and $17,100 as of September 30, 2022 and March 31, 2022, respectively.

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FAIR VALUE MEASUREMENTS

6 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

Fair Value Measurements

The following table presents information about the Company's financial assets, and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair values:

	September 30, 2022
	Level I		Level II		Level III		Total
Corporate debt securities	$	—	$	20,100	$	—	$	20,100
U.S. treasury securities	—		12,544		—		12,544
Certificates of Deposit	—		517		—		517
Total asset measured at fair value (1)	$	—	$	33,161	$	—	$	33,161

(1) Included within Investment securities in the Consolidated Balance Sheets.

	March 31, 2022
	Level I		Level II		Level III		Total
Corporate debt securities	$	—	$	87,074	$	—	$	87,074
U.S. treasury securities	—		17,662		—		17,662
Certificates of Deposit	—		516		—		516
Total asset measured at fair value (1)	$	—	$	105,252	$	—	$	105,252

(1) Included within Investment securities in the Consolidated Balance Sheets.

The Company had no transfers between fair value levels during the six months ended September 30, 2022.

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INVESTMENT SECURITIES

6 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

Investment Securities

The amortized cost and gross unrealized gains (losses) of marketable investment securities accounted under the fair value method were as follows:

	September 30, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value (1)
Corporate debt securities	$	21,910	$	—	$	(1,810)	$	20,100
U.S. treasury securities	13,196		—		(652)		12,544
Certificates of Deposit	517		—		—		517
Total securities with unrealized gains/(losses)	$	35,623	$	—	$	(2,462)	$	33,161

(1) Included within Investment securities in the Consolidated Balance Sheets.

	March 31, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value (1)
Corporate debt securities	$	88,475	$	2	$	(1,403)	$	87,074
U.S. treasury securities	17,891		—		(229)		17,662
Certificates of Deposit	516		—		—		516
Total securities with unrealized gains/(losses)	$	106,882	$	2	$	(1,632)	$	105,252

(1) Included within Investment securities in the Consolidated Balance Sheets.

Scheduled maturities of the debt securities held by the Company included within the investment securities portfolio were as follows:

	September 30, 2022				March 31, 2022
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due within one year	$	4,886	$	4,809	$	72,963	$	72,950
Due within years two through five	30,737		28,352		33,919		32,302
Total debt within the investment securities portfolio	$	35,623	$	33,161	$	106,882	$	105,252

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ALLOWANCE FOR CREDIT LOSSES

6 Months Ended

Sep. 30, 2022

Receivables [Abstract]

ALLOWANCE FOR CREDIT LOSSES

Allowance for Credit Losses

The following table presents information about the Company's allowance for credit losses:

	September 30, 2022
Beginning balance	$	13,274
Provision for bad debt, net	6,103
Recovery/(write-off) of uncollectible accounts, net	(4,705)
Ending balance	$	14,672

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PROPERTY AND EQUIPMENT

6 Months Ended

Sep. 30, 2022

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

Property and Equipment

Property and equipment, net of accumulated depreciation consists of the following:

	September 30, 2022		March 31, 2022
Equipment	$	9,752	$	9,692
Furniture and fixtures	20,050		22,704
Leasehold improvements	73,104		59,462
Computers and software	14,549		14,308
Other	7,487		7,476
Total cost	124,942		113,642
Less: accumulated depreciation	(62,736)		(61,466)
Total net book value	$	62,206	$	52,176

Additions to property and equipment during the six months ended September 30, 2022 were primarily related to leasehold improvement costs incurred.

Depreciation expense of $3,849 and $2,732 was recognized for the three months ended September 30, 2022 and 2021, respectively

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GOODWILL AND OTHER INTANGIBLE ASSETS

6 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill and Other Intangible Assets

The following table provides a reconciliation of Goodwill and other intangibles, net reported on the Consolidated Balance Sheets.

	Useful Lives	September 30, 2022		March 31, 2022
Goodwill	Indefinite	$	1,051,294	$	1,070,442
Tradename-Houlihan Lokey	Indefinite	192,210		192,210
Other intangible assets	Varies	91,022		92,941
Total cost		1,334,526		1,355,593
Less: accumulated amortization		(68,634)		(37,818)
Goodwill and other intangibles, net		$	1,265,892	$	1,317,775

Goodwill attributable to the Company’s business segments is as follows:

	April 1, 2022		Change (1)		September 30, 2022
Corporate Finance	$	815,912	$	(19,148)	$	796,764
Financial Restructuring	162,815		—		162,815
Financial and Valuation Advisory	91,715		—		91,715
Goodwill	$	1,070,442	$	(19,148)	$	1,051,294

(1)Changes pertain primarily to foreign currency translation adjustments.

Amortization expense of approximately $15,625 and $1,612 was recognized for the three months ended September 30, 2022 and 2021, respectively, and $31,390 and $2,676 for the six months ended September 30, 2022 and 2021, respectively.

The estimated future amortization for finite-lived intangible assets for each of the next five years and thereafter are as follows:

	Year Ended March 31,
Remainder of 2023	$	13,195
2024	7,374
2025	1,515
2026	—
2027 and thereafter	—

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LOANS PAYABLE

6 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

LOANS PAYABLE

Loans Payable

On August 23, 2019, the Company entered into a syndicated revolving line of credit with Bank of America, N.A. and certain other financial institutions party thereto (the “2019 Line of Credit”), which allows for borrowings of up to $100.0 million (and, subject to certain conditions, provides the Company with an expansion option, which, if exercised in full, would provide for a total credit facility of $200.0 million). On August 2, 2022, the agreement governing the 2019 Line of Credit was amended to, among other things, (a) extend the maturity to August 23, 2025 (or if such date is not a business day, the immediately preceding business day), (b) replace the LIBOR reference rate with Term SOFR plus an applicable credit spread adjustment, (c) modify certain covenant restrictions, and (d) make certain other technical amendments. The agreement governing the 2019 Line of Credit provides that commitment fees apply to unused amounts and contains debt covenants which require that the Company maintain certain financial ratios. As of September 30, 2022 and March 31, 2022, no principal was outstanding under the 2019 Line of Credit.

In April 2018, the Company acquired Quayle Munro Limited. Total consideration included non-interest bearing unsecured convertible loans totaling GBP 10.5 million payable on May 31, 2022, which was extinguished during the three months ended June 30, 2022. The Company incurred imputed interest expense on these notes of $1 and $35 for the three months ended September 30, 2022 and 2021, respectively, and $22 and $94 for the six months ended September 30, 2022 and 2021, respectively.

In May 2018, the Company acquired BearTooth Advisors. Total consideration included an unsecured note of $2.8 million bearing interest at an annual rate of 2.88% and payable on May 21, 2048. This note was subsequently assigned by the seller to the former BearTooth principals (who became employees of the Company), and, under certain circumstances, is convertible into Company Class B common stock after the fifth anniversary of the closing of the transaction. The Company incurred interest expense on this note of $0 and $27 for the three months ended September 30, 2022 and 2021, respectively, and $18 and $53 for the six months ended September 30, 2022 and 2021, respectively.

In December 2019, the Company acquired Freeman & Co. Total consideration included an unsecured note of $4.0 million bearing interest at an annual rate of 2.75% and payable on December 16, 2049. The note issued by the Company to the seller was distributed to the former principals of Freeman & Co. (who became employees of the Company). Under certain circumstances, the note may be exchanged by each principal for Company stock over a four-year period in equal annual installments starting in December 2020. The Company incurred interest expense on this note of $21 and $20 for the three months ended September 30, 2022 and 2021, respectively, and $41 and $39 for the six months ended September 30, 2022 and 2021, respectively.

In August 2020, the Company acquired MVP Capital, LLC (“MVP”). Total consideration included an unsecured non-interest bearing note of $4.5 million payable August 14, 2050. The note was issued by the Company to the former principals and sellers of MVP (who became employees of the Company). Under certain circumstances, the note may be exchanged by each seller for a combination of cash and Company stock over a three-year period in equal annual installments starting in August 2021. Contingent consideration was also issued in connection with the acquisition of MVP, which had a carrying value of $20.3 million as of September 30, 2022 and March 31, 2022, which is included in Other liabilities in our Consolidated Balance Sheets.

In July 2021, the Company acquired Baylor Klein, Ltd (“BK”). Contingent consideration was issued in connection with the acquisition of BK, which had a carrying value of $17.1 million and $17.6 million as of September 30, 2022 and March 31, 2022, respectively, which is included in Other liabilities in our Consolidated Balance Sheets.

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ACCUMULATED OTHER COMPREHENSIVE (LOSS)

6 Months Ended

Sep. 30, 2022

Equity [Abstract]

ACCUMULATED OTHER COMPREHENSIVE (LOSS)

Accumulated Other Comprehensive (Loss)

Accumulated other comprehensive (loss) is comprised of Foreign currency translation adjustments of $(28,554) and $(6,037) for the three months ended September 30, 2022 and 2021, respectively, and $(50,863) and $(4,412) for the six months ended September 30, 2022 and 2021, respectively. The recent strength of the U.S. dollar as compared to the foreign currencies of our international operations has triggered foreign currency translation adjustments that are greater than usual.

Accumulated other comprehensive (loss) as of September 30, 2022 was comprised of the following:

Balance, April 1, 2022	$	(43,347)
Foreign currency translation adjustment	(50,863)
Balance, September 30, 2022	$	(94,210)

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INCOME TAXES	6 Months Ended
	Sep. 30, 2022
Income Tax Disclosure [Abstract]
INCOME TAXES	Income TaxesThe Company’s provision for income taxes was $23,537 and $43,583 for the three months ended September 30, 2022 and 2021, respectively, and $28,576 and $65,400 for the six months ended September 30, 2022 and 2021, respectively. These represent an effective tax rate of 27.9% for each of the three months ended September 30, 2022 and 2021, and 17.9% and 24.7% for the six months ended September 30, 2022 and 2021, respectively.

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EARNINGS PER SHARE

6 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

EARNINGS PER SHARE

Earnings Per Share

The calculations of basic and diluted earnings per share attributable to holders of shares of common stock are presented below.

	Three Months Ended September 30,				Six Months Ended September 30,
	2022		2021		2022		2021
Numerator:
Net income attributable Houlihan Lokey, Inc.	$	60,730	$	112,883	$	131,512	$	198,843
Denominator:
Weighted average shares of common stock outstanding — basic	63,422,701		65,156,968		63,350,545		65,433,649
Weighted average number of incremental shares pertaining to unvested restricted stock and issuable in respect of unvested restricted stock units, as calculated using the treasury stock method	6,377,327		3,409,159		5,966,247		3,208,313
Weighted average shares of common stock outstanding — diluted	69,800,028		68,566,127		69,316,792		68,641,962
Basic earnings per share	$	0.96	$	1.73	$	2.08	$	3.04
Diluted earnings per share	$	0.87	$	1.65	$	1.90	$	2.90

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EMPLOYEE BENEFIT PLANS

6 Months Ended

Sep. 30, 2022

Share-based Payment Arrangement [Abstract]

EMPLOYEE BENEFIT PLANS

Employee Benefit Plans

Defined Contribution Plans

The Company sponsors a 401(k) defined contribution savings plan for its domestic employees and defined contribution retirement plans for its international employees. The Company contributed approximately $1,867 and $1,298 to these plans during the three months ended September 30, 2022 and 2021, respectively, and $3,801 and $2,748 during the six months ended September 30, 2022 and 2021, respectively.

Share-Based Incentive Plans

Following the IPO, additional awards of restricted shares and restricted stock units have been and will be made under the Amended and Restated Houlihan Lokey, Inc. 2016 Incentive Award Plan (the "2016 Incentive Plan"), which became effective in August 2015 and was amended in October 2017. Under the 2016 Incentive Plan, it is anticipated that the Company will continue to grant cash and equity-based incentive awards to eligible service providers in order to attract, motivate and retain the talent necessary to operate the Company's business. Equity-based incentive awards issued under the 2016 Incentive Plan generally vest over a four-year period. Restricted shares of Class A common stock were granted under the 2016 Incentive Plan to (i) six independent directors in the first quarter of fiscal 2022 at $73.19 per share, and (ii) six independent directors in the first quarter of fiscal 2023 at $84.55.

No excess tax benefit was recognized during the three months ended September 30, 2022 or 2021. An excess tax benefit of $8,102 and $6,922 was recognized during the six months ended September 30, 2022 and 2021, respectively, as a component of the provision for income taxes and an operating activity on the Consolidated Statements of Cash Flows. The excess tax benefits recognized during the six months ended September 30, 2022 and 2021 were related to shares vested in May 2022 and 2021, respectively.

The share awards are classified as equity awards at the time of grant unless the number of shares granted is unknown. Awards that are settleable in shares based upon a future determinable stock price are classified as liabilities until the price is established and the resulting number of shares is known, at which time they are re-classified from liabilities to equity awards. Activity in equity classified share awards which relate to the Company's 2016 Incentive Plan during the six months ended September 30, 2022 and 2021 was as follows:

Unvested Share Awards	Shares	Weighted Average Grant Date Fair Value
Balance, April 1, 2022	4,314,375	$	71.42
Granted	2,221,461	84.49
Vested	(1,175,311)	59.82
Forfeited/Repurchased	(76,002)	80.44
Balance, September 30, 2022	5,284,523	$	79.37
Balance, April 1, 2021	2,744,605	$	51.37
Granted	1,638,748	73.19
Vested	(1,039,535)	47.80
Forfeited/Repurchased	(59,414)	60.92
Balance, September 30, 2021	3,284,404	$	63.22

Activity in liability classified share awards during the six months ended September 30, 2022 and 2021 was as follows:

Awards Settleable in Shares	Fair Value
Balance, April 1, 2022	$	14,349
Offer to grant	6,188
Share price determined-converted to cash payments	(2,676)
Share price determined-transferred to equity grants	(4,269)
Forfeited	—
Balance, September 30, 2022	$	13,592
Balance, April 1, 2021	$	16,950
Offer to grant	1,094
Share price determined-converted to cash payments	(2,676)
Share price determined-transferred to equity grants	(4,269)
Forfeited	—
Balance, September 30, 2021	$	11,099

Activity of our RSUs during the six months ended September 30, 2022 and 2021 was as follows:

Restricted Stock Units	RSUs	Weighted Average Grant Date Fair Value
RSUs as of April 1, 2022	1,038,503	$	95.27
Issued	50,556	84.55
Forfeitures	(14,275)	96.82
Vested	(24,138)	63.75
RSUs as of September 30, 2022	1,050,646	$	95.45
RSUs as of April 1, 2021	38,475	$	55.58
Issued	54,525	71.09
Forfeitures	(1,595)	66.70
Vested	(12,454)	52.33
RSUs as of September 30, 2021	78,951	$	66.48

Compensation expenses for the Company associated with both equity and liability classified awards totaled $41,399 and $18,956 for the three months ended September 30, 2022 and 2021, respectively, and $82,006 and $53,246 for the six months ended September 30, 2022 and 2021, respectively.

As of September 30, 2022 and 2021, there was $519,704 and $177,341, respectively, of total unrecognized compensation cost related to unvested share awards granted under the 2016 Incentive Plan. These costs are recognized over a weighted average period of 2.8 years and 1.7 years, as of September 30, 2022 and 2021, respectively.

On October 19, 2017, our board of directors approved an amendment (the “Amendment”) to the 2016 Incentive Plan reducing the number of shares of common stock available for issuance under the 2016 Incentive Plan by approximately 12.2 million shares. Under the Amendment, the aggregate number of shares of common stock that are available for issuance under awards granted pursuant to the 2016 Incentive Plan is equal to the sum of (i) 8.0 million and (ii) any shares of our Class B common stock that are subject to awards under our 2006 Incentive Plan that terminate, expire or lapse for any reason after October 19, 2017.

The number of shares available for issuance increases annually beginning on April 1, 2018 and ending on April 1, 2025, by an amount equal to the lowest of:

•6,540,659 shares of our Class A common stock and Class B common stock;

•Six percent of the shares of Class A common stock and Class B common stock outstanding on the final day of the immediately preceding fiscal year; and

•such smaller number of shares as determined by our board of directors.

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STOCKHOLDERS' EQUITY

6 Months Ended

Sep. 30, 2022

Equity [Abstract]

STOCKHOLDERS' EQUITY

Stockholders' Equity

There are two classes of authorized HL, Inc. common stock: Class A common stock and Class B common stock. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting and conversion rights. Each share of Class A common stock is entitled to one vote per share, and each share of Class B common stock is entitled to ten votes per share. Each share of Class B common stock may be converted into one share of Class A common stock at the option of its holder and will be automatically converted into one share of Class A common stock upon transfer thereof, subject to certain exceptions.

Class A Common Stock

During the three months ended September 30, 2022 and 2021, no shares were issued to non-employee directors and 231,367 and 384,632 shares were converted from Class B to Class A, respectively. During the six months ended September 30, 2022 and 2021, 6,739 and 6,512 shares were issued to non-employee directors, respectively, and 497,859 and 1,103,085 shares were converted from Class B to Class A, respectively.

As of September 30, 2022, there were 49,722,549 Class A shares held by the public and 58,326 Class A shares held by non-employee directors. As of September 30, 2021, there were 50,872,848 Class A shares held by the public and 54,157 Class A shares held by non-employee directors.

Class B Common Stock

As of September 30, 2022 and 2021, there were 18,874,122 and 17,348,305 of Class B shares held by the HL Voting Trust, respectively.

Dividends

Previously declared dividends related to unvested shares of $12,003 and $6,480 were unpaid as of September 30, 2022 and 2021, respectively.

Stock Subscriptions Receivable

Employees of the Company periodically issued notes receivable to the Company documenting loans made by the Company to such employees for the purchase of restricted shares of the Company.

Share Repurchases

In April 2022, the board of directors authorized an increase to the existing July 2021 share repurchase program, which provides for share repurchases of a new aggregate amount of up to $500.0 million of the Company's Class A common stock and Class B common stock.

During the three months ended September 30, 2022 and 2021, the Company repurchased 9,731 and 490 shares, respectively, of Class B common stock, to satisfy $70 and an immaterial amount of required withholding taxes in connection with the vesting of restricted awards, respectively. During the three months ended September 30, 2022, the Company repurchased 100,257 shares of its outstanding Class A common stock at a weighted average price of $81.74 per share, excluding commissions, for an aggregate purchase price of $8,195. During the three months ended September 30, 2021, the Company repurchased an additional 548,896 shares of its outstanding Class A common stock at a weighted average price of $82.78 per share, excluding commissions, for an aggregate purchase price of $45,437.

During the six months ended September 30, 2022 and 2021, the Company repurchased 506,462 and 455,402 shares, respectively, of Class B common stock, to satisfy $42,191 and $33,700 of required withholding taxes in connection with the vesting of restricted awards, respectively. During the six months ended September 30, 2022, the Company repurchased 577,287 shares of its outstanding Class A common stock at a weighted average price of $84.72 per share, excluding commissions, for an aggregate purchase price of $48,905. During the six months ended September 30, 2021, the Company repurchased an additional 1,428,034 shares of its outstanding Class A common stock at a weighted average price of $79.06 per share, excluding commissions, for an aggregate purchase price of $112,904.

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LEASES

6 Months Ended

Sep. 30, 2022

Leases [Abstract]

LEASES

Leases

Lessee Arrangements

Operating Leases

We lease real estate and equipment used in operations from third parties. As of September 30, 2022, the remaining term of our operating leases ranged from 1 to 14 years with various automatic extensions.

The following table outlines the maturity of our existing operating lease liabilities on a fiscal year-end basis as of September 30, 2022.

Maturity of Operating Leases

	Operating Leases
Remaining 2023	$	15,430
2024	29,044
2025	29,093
2026	26,582
2027	23,036
Thereafter	93,575
Total	216,760
Less: present value discount	(27,823)
Operating lease liabilities	$	188,937

As of September 30, 2022, the Company has entered into operating leases for additional office space that have not yet commenced for approximately $190.2 million. These operating leases will commence between fiscal year 2023 and fiscal year 2024 with lease terms of 3 years to 13 years.

Lease costs

	Three Months Ended September 30,				Six Months Ended September 30,
	2022		2021		2022		2021
Operating lease expense	$	8,571	$	6,459	$	15,807	$	13,674
Variable lease expense (1)	4,725		2,549		9,244		5,529
Short-term lease expense	52		43		87		90
Less: Sublease income	(63)		—		(63)		(18)
Total lease costs	$	13,285	$	9,051	$	25,075	$	19,275

(1)Primarily consists of payments for property taxes, common area maintenance and usage based operating costs.

Weighted-average details

	September 30,
	2022		2021
Weighted-average remaining lease term (years)	9		9
Weighted-average discount rate	3.3	%	3.8	%

Supplemental cash flow information related to leases:

	Six Months Ended September 30,
	2022		2021
Operating cash flows:
Cash paid for amounts included in the measurement of Operating lease liabilities	$	18,292	$	14,780
Non-cash activity:
Operating lease right-of-use assets obtained in exchange of Operating lease liabilities	$	19,219	$	217
Change in Operating lease right-of-use assets due to remeasurement	161		(330)

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COMMITMENTS AND CONTINGENCIES

6 Months Ended

Sep. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

Commitments and Contingencies

The Company has been named in various legal actions arising in the normal course of business. In the opinion of the Company, in consultation with legal counsel, the final resolutions of these matters are not expected to have a material adverse effect on the Company’s financial condition, operations and cash flows.

The Company also provides routine indemnifications relating to certain real estate (office) lease agreements under which it may be required to indemnify property owners for claims and other liabilities arising from the Company’s use of the applicable premises. In addition, the Company guarantees the performance of its subsidiaries under certain office lease agreements. The terms of these obligations vary, and because a maximum obligation is not explicitly stated, the Company has determined that it is not possible to make an estimate of the maximum amount that it could be obligated to pay under such contracts. Based on historical experience and evaluation of specific indemnities, management believes that judgments, if any, against the Company related to such matters are not likely to have a material effect on the consolidated financial statements. Accordingly, the Company has not recorded any liability for these obligations as of September 30, 2022 or March 31, 2022.

There have been no material changes outside of the ordinary course of business to our known contractual obligations, which are set forth in the table included in Item 7 in our 2022 Annual Report.

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SEGMENT AND GEOGRAPHICAL INFORMATION

6 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

SEGMENT AND GEOGRAPHICAL INFORMATION

Segment and Geographical Information

The Company’s reportable segments are described in Note 1 and each are individually managed and provide separate services that require specialized expertise for the provision of those services. Revenues by segment represent fees earned on the various services offered within each segment. Segment profit consists of segment revenues, less (1) direct expenses including compensation, 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 charges related to incentive compensation 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 compliance and legal. The following tables present information about revenues, profit and assets by segment and geography.    

	Three Months Ended September 30,				Six Months Ended September 30,
	2022		2021		2022		2021
Revenues by segment
Corporate Finance	$	315,016	$	388,410	$	578,967	$	598,401
Financial Restructuring	97,694		83,184		176,532		181,959
Financial and Valuation Advisory	76,827		65,678		152,682		129,634
Revenues	$	489,537	$	537,272	$	908,181	$	909,994
Segment profit (1)
Corporate Finance	$	93,794	$	151,185	$	185,359	$	236,334
Financial Restructuring	17,563		20,082		44,259		46,175
Financial and Valuation Advisory	26,169		18,367		45,203		40,576
Total segment profit	137,526		189,634		274,821		323,085
Corporate expenses (2)	48,155		32,315		107,880		58,090
Other expense, net	5,104		853		6,853		752
Income before provision for income taxes	$	84,267	$	156,466	$	160,088	$	264,243

(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.

(2)Corporate expenses represent expenses that are not allocated to individual business segments such as office of the executives, accounting, information technology, compliance, legal, marketing, and human capital.

	September 30, 2022		March 31, 2022
Assets by segment
Corporate Finance	$	996,898	$	994,623
Financial Restructuring	171,669		178,148
Financial and Valuation Advisory	174,016		155,853
Total segment assets	1,342,583		1,328,624
Corporate assets	1,167,616		1,558,186
Total assets	$	2,510,199	$	2,886,810

	Three Months Ended September 30,				Six Months Ended September 30,
	2022		2021		2022		2021
Income before provision for income taxes by geography
United States	$	63,771	$	124,644	$	114,023	$	211,241
International	20,496		31,822		46,065		53,002
Income before provision for income taxes	$	84,267	$	156,466	$	160,088	$	264,243

	Three Months Ended September 30,				Six Months Ended September 30,
	2022		2021		2022		2021
Revenues by geography
United States	$	377,608	$	432,726	$	681,057	$	744,453
International	111,929		104,546		227,124		165,541
Revenues	$	489,537	$	537,272	$	908,181	$	909,994

	September 30, 2022		March 31, 2022
Assets by geography
United States	$	1,713,187	$	2,032,390
International	797,012		854,420
Total assets	$	2,510,199	$	2,886,810

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Business Combinations

6 Months Ended

Sep. 30, 2022

Business Combination and Asset Acquisition [Abstract]

Business Combinations

Business Combinations

On October 4, 2021 ("the Acquisition Date"), the Company completed a tender offer process resulting in the Company's acquisition of approximately 90% of GCA Corporation's (“GCA”) common stock for cash consideration of $531.9 million. The Company then acquired the GCA shares not purchased through the tender offer by way of a second-step transaction, which occurred on November 5, 2021 for $57.7 million. The consideration for these shares was paid on January 20, 2022. This all-cash transaction was valued at approximately $589.6 million, based on the consideration of ¥1,398 per share of GCA.

GCA is a global technology-focused investment bank providing M&A advisory and capital markets advisory services in Europe, Japan/Asia, and the United States. The addition of GCA significantly increases the Company's position in the technology sector, which is critical to meeting the needs of our clients as technology increasingly touches every business sector. GCA also increases the depth and breadth of our UK and European operations and this significant increase in scale has a direct impact on our ability to better serve our clients, both corporate and private equity, and meaningfully expands our geographic footprint in the UK and Europe. GCA also creates a significant platform for us to build from in the Asia Pacific region, meaningfully increasing our presence there and allowing us to begin to reach for scale in this rapidly growing part of the world.

Acquisition Consideration
GCA common shares, including employee share-based payment awards outstanding, as of the Acquisition Date	49,382,808
Cash consideration per share	¥	1,398
Cash consideration for tendered common shares	$	531,883
Cash consideration for remaining shares purchased	57,686
Total cash consideration	$	589,569

The Company financed the acquisition with cash on hand.

Purchase Price Allocation

The following table summarizes the fair value of assets acquired and liabilities assumed as part of the GCA acquisition. We made significant estimates and exercised significant judgment in estimating fair values and accounting for such acquired assets and liabilities. The intangible assets subject to amortization will be amortized on a straight-line basis over their estimated useful lives as of the acquisition date. Measurement period adjustments recognized in the second quarter of fiscal 2023 related to updated estimated fair values for income taxes receivable/(payable) and deferred income taxes with no such adjustments recognized in the first quarter of fiscal 2023.

	Previously Reported As Of June 30, 2022		Measurement Period Adjustments		Fair Value As Of September 30, 2022		Weighted-Average Amortization Period
Assets acquired:
Cash and cash equivalents	$	228,877	$	—	$	228,877
Investment securities	515		—		515
Accounts receivable	54,804		—		54,804
Unbilled work in progress	4,672		—		4,672
Income taxes receivable	1,771		(1,771)		—
Deferred income taxes	—		1,876		1,876
Property and equipment	8,727		—		8,727
Operating lease right-of-use assets	27,383		—		27,383
Other assets	20,506		—		20,506
Intangible assets other than goodwill
Backlog	42,000		—		42,000		1.2 years
Trade name	17,100		—		17,100		2.0 years
Customer relationships	15,200		—		15,200		1.0 year
Total intangible assets acquired	74,300		—		74,300		1.3 years
Total assets	421,555		105		421,660
Liabilities assumed:
Accrued salaries and bonuses	152,409		—		152,409
Accounts payable and accrued expenses	22,722		—		22,722
Payable to affiliates	15		—		15
Deferred income	78		—		78
Deferred income taxes	3,552		(3,552)		—
Income taxes payable	—		2,697		2,697
Operating lease liabilities	27,527		—		27,527
Other liabilities	19,897		—		19,897
Total liabilities	226,200		(855)		225,345
Net identifiable assets acquired	195,355		960		196,315
Goodwill	394,214		(960)		393,254
Total GCA equity value	$	589,569	$	—	$	589,569

We applied the acquisition method of accounting in accordance with Financial Accounting Standards Board ("FASB") ASC Topic 805, Business Combinations ("ASC 805"). Goodwill of $393.3 million was recognized as a result of the transaction and relates to (i) the value of assets that do not meet the definition of an identifiable intangible asset under ASC 805, but that do contribute to the value of the acquired business, including the assembled workforce and relationships with customers that are not tracked; (ii) the assemblage value associated with acquiring an on-going business whose value is worth more than simply the sum of its parts; and (iii) the expected synergies associated with combining global operations. None of the goodwill recognized is expected to be deductible for federal income tax purposes. The goodwill recognized is attributable to our CF business segment. The results of operations for GCA have been included in the Company's Consolidated Financial Statements since the Acquisition Date.

Unaudited Pro Forma Financial Information

The following unaudited pro forma financial information is presented to illustrate the estimated effects of the acquisition of GCA on the Company as if it had occurred on April 1, 2020, the first day of the Company's fiscal 2021, and is not necessarily indicative of either future results of operations or results that may have been achieved had the acquisition been consummated as of this date. The below unaudited pro forma results include certain pro forma adjustments to net earnings that were directly attributable to the acquisition, as if the acquisition had occurred on April 1, 2020, including the following:

•Elimination of transaction costs incurred by the Company directly attributable to the GCA acquisition of $0 and $(1,006), for the three months ended September 30, 2022 and 2021, respectively, and $0 and $(1,077) for the six months ended September 30, 2022 and 2021, respectively.

•An increase/(decrease) of amortization expense of $(14,688) and $2,138, for the three months ended September 30, 2022 and 2021, respectively, and $(29,306) and $11,680 for the six months ended September 30, 2022 and 2021, respectively, directly attributable to the GCA acquisition. This amortization was recognized as a result of the allocation of purchase consideration to the definite-lived intangible assets subject to amortization, noted above.

•Resulting tax impact of above adjustments of $4,098 and $(316), for the three months ended September 30, 2022 and 2021, respectively, and $5,246 and $(2,619) for the six months ended September 30, 2022 and 2021, respectively.

	(Unaudited)
	Three Months Ended September 30,				Six Months Ended September 30,
	2022		2021		2022		2021
Revenue	$	489,537	$	669,230	$	908,181	$	1,212,704
Net income	$	71,320	$	115,860	$	155,572	$	213,993

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Subsequent Events	6 Months Ended
	Sep. 30, 2022
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsOn October 25, 2022, the Company's board of directors declared a quarterly cash dividend of $0.53 per share of Class A and Class B common stock, payable on December 15, 2022, to shareholders of record on December 2, 2022

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Basis of Presentation

Basis of PresentationThe accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. ("GAAP"), pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the "SEC"), and include all information and footnotes required for consolidated financial statement presentation. The results of operations for the six months ended September 30, 2022 are not necessarily indicative of the results of operations to be expected for the fiscal year ending March 31, 2023. The unaudited interim consolidated financial statements and notes to consolidated financial statements should be read in conjunction with the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2022 (the "2022 Annual Report").

Principles of Consolidation

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its subsidiaries where it has a controlling financial interest. All intercompany balances and transactions have been eliminated.

The Company carries its investments in unconsolidated entities over which it has significant influence but does not control using the equity method, and includes its ownership share of the income and losses in Other expense, net in the Consolidated Statements of Comprehensive Income.

The Company’s equity method investments include variable interest entities (VIEs), which are defined as entities in which equity investors (i) do not have the characteristics of a controlling financial interest, and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The entity that consolidates a VIE is known as its primary beneficiary, and is generally the entity with (i) the power to direct the activities that most significantly impact the VIE’s economic performance, and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE.

Our involvement with VIEs arises from our variable interest related to a special purpose acquisition company of which the Company is a sponsor. The Company's exposure to loss from such VIEs is not material to our operating results and financial position.

Use of Estimates

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements. Management estimates and assumptions also affect the reported amounts of revenues and expenses during the reporting period, and disclosure of contingent assets and liabilities at the reporting date. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. Management adjusts such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Items subject to such estimates and assumptions include, but are not limited to: the allowance for credit losses; the valuation of deferred tax assets, valuation of acquired intangibles and goodwill, accrued expenses, and share based compensation; the allocation of goodwill and other assets across the reporting units (segments); and reserves for income tax uncertainties and other contingencies.

Revenue, Operating Expenses

Revenues

Revenues consist of fee revenues from advisory services and reimbursed costs incurred in fulfilling the contracts. Revenues reflect fees generated from our CF, FR, and FVA business segments.

The Company generates revenues from contractual advisory services and reimbursed costs incurred in fulfilling the contracts for such services. Revenues for all three business segments (CF, FR, and FVA) are recognized upon satisfaction of the performance obligation, which may be satisfied over time or at a point in time. The amount and timing of the fees paid vary by the type of engagement.

The amount of revenue recognized reflects the consideration we expect to be entitled to in exchange for those promised services (i.e., the “transaction price”). In determining the transaction price, we consider multiple factors, including the effects of variable consideration. Variable consideration is included in the transaction price only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainties with respect to the amount are resolved. In determining when to include variable consideration in the transaction price, we consider the range of possible outcomes, the predictive value of our past experiences, the time period of when uncertainties expect to be resolved and the amount of consideration that is susceptible to factors outside of our influence, such as market volatility or the judgment and actions of third parties. The substantial majority of the Company’s advisory fees (i.e., the success related Completion Fees) are considered variable and constrained as they are contingent upon a future event which includes factors outside of our control (e.g., completion of a transaction or third party emergence from bankruptcy or approval by the court).

Revenues for all three business segments are recognized upon satisfaction of the performance obligation and may be satisfied over time or at a point in time. The amount and timing of the fees paid vary by the type of engagement.

Revenues from CF engagements primarily consist of fees generated in connection with advisory services related to corporate finance, mergers and acquisitions, and capital markets offerings. Completion Fees from these engagements are recognized at a point in time when the related transaction has been effectively closed. At that time, the Company has transferred control of the promised service and the customer obtains control. CF contracts generally contain a variety of promised services that may be capable of being distinct, but they are not distinct within the context of the contract as the various services are inputs to the combined output of successfully brokering a specific transaction.

Revenues from FR engagements primarily consist of fees generated in connection with advisory services to debtors, creditors and other parties-in-interest involving recapitalization or deleveraging transactions implemented both through bankruptcy proceedings and through out-of-court exchanges, consent solicitations or other mechanisms, as well as in distressed mergers and acquisitions and capital markets activities. Retainer Fees and Progress Fees from restructuring engagements are recognized over time using a time elapsed measure of progress as our clients simultaneously receive and consume the benefits of those services as they are provided. Completion Fees from these engagements are considered variable and constrained until the related transaction has been effectively closed as they are contingent upon a future event, which includes factors outside of our control (e.g., completion of a transaction or third party emergence from bankruptcy or approval by the court).

Revenues from FVA engagements primarily consist of fees generated in connection with valuation and diligence services and rendering fairness, solvency and other financial opinions. Revenues are recognized at a point in time as these engagements include a singular objective that does not transfer any notable value to the Company’s clients until the opinions have been rendered and delivered to the client. However, certain engagements consist of advisory services where fees are usually based on the hourly rates of our financial professionals. Such revenues are recognized over time as the benefits of these advisory services are transferred to the Company’s clients throughout the course of the engagement, and, as a practical expedient, the Company has elected to use the ‘as-invoiced’ approach to recognize revenue.

Taxes, including value added taxes, collected from customers and remitted to governmental authorities are accounted for on a net basis, and therefore, are excluded from revenue in the Consolidated Statements of Comprehensive Income.

Operating Expenses

The majority of the Company’s operating expenses are related to compensation for employees, which includes the amortization of the relevant portion of the Company’s share-based incentive plans (Note 14). Other types of operating expenses include: Travel, meals, and entertainment; Rent; Depreciation and amortization; Information technology and communications; Professional fees; and Other operating expenses

Translation of Foreign Currency Transactions

Translation of Foreign Currency Transactions

The reporting currency for the consolidated financial statements of the Company is the U.S. dollar. The assets and liabilities of subsidiaries whose functional currency is other than the U.S. dollar are included in the consolidation by translating the assets and liabilities at the reporting period-end exchange rates; however, revenues and expenses are translated using the applicable exchange rates determined on a monthly basis throughout the fiscal year. Resulting translation adjustments are reported as a separate component of Accumulated other comprehensive loss, net of applicable taxes.

From time to time, we enter into transactions to hedge our exposure to certain foreign currency fluctuations through the use of derivative instruments or other methods. As of September 30, 2022, we had two foreign currency forward contracts outstanding between the pound sterling and the euro with notional values of €7.5 million and €0.5 million. As of September 30, 2021, we had one foreign currency forward contract outstanding between the pound sterling and the euro with a notional value of €1.7 million. The change in fair value of these contracts represented a net loss included in Other operating expenses of $(232) and $(7) during the three months ended September 30, 2022 and September 30, 2021, respectively.

Cash and Cash Equivalents, and Restricted Cash

Cash and Cash Equivalents, and Restricted Cash

Cash and cash equivalents include cash held at banks and highly liquid investments with original maturities of three months or less. As of September 30, 2022 and March 31, 2022, the Company had cash balances with banks in excess of insured limits. The Company believes it is not exposed to any significant credit risk with respect to Cash and cash equivalents.

The following table provides a reconciliation of Cash and cash equivalents, and Restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Consolidated Statements of Cash Flows.     

	September 30, 2022		March 31, 2022
Cash and cash equivalents	$	503,806	$	833,697
Restricted cash (1)	373		373
Total cash, cash equivalents, and restricted cash	$	504,179	$	834,070

(1)Restricted cash as of September 30, 2022 and March 31, 2022 consisted of a cash secured letter of credit issued for our Frankfurt office.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Schedule of Cash and Cash Equivalents

The following table provides a reconciliation of Cash and cash equivalents, and Restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Consolidated Statements of Cash Flows.     

	September 30, 2022		March 31, 2022
Cash and cash equivalents	$	503,806	$	833,697
Restricted cash (1)	373		373
Total cash, cash equivalents, and restricted cash	$	504,179	$	834,070

(1)Restricted cash as of September 30, 2022 and March 31, 2022 consisted of a cash secured letter of credit issued for our Frankfurt office.

Schedule of Restricted Cash

The following table provides a reconciliation of Cash and cash equivalents, and Restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Consolidated Statements of Cash Flows.     

	September 30, 2022		March 31, 2022
Cash and cash equivalents	$	503,806	$	833,697
Restricted cash (1)	373		373
Total cash, cash equivalents, and restricted cash	$	504,179	$	834,070

(1)Restricted cash as of September 30, 2022 and March 31, 2022 consisted of a cash secured letter of credit issued for our Frankfurt office.

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REVENUE RECOGNITION (Tables)

6 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Contract with Customer, Asset and Liability

The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers:

	April 1, 2022		Increase/(Decrease)		September 30, 2022
Receivables (1)	$	139,680	$	(9,739)	$	129,941
Unbilled work in progress, net of allowance for credit losses	104,751		51,184		155,935
Contract Assets (1)	4,349		901		5,250
Contract Liabilities (2)	28,753		6,729		35,482

(1)Included within Accounts receivable, net of allowance for credit losses in the September 30, 2022 Consolidated Balance Sheet.

(2)Included within Deferred income in the September 30, 2022 Consolidated Balance Sheet.

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FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Schedule of Information About Other Financial Assets

The following table presents information about the Company's financial assets, and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair values:

	September 30, 2022
	Level I		Level II		Level III		Total
Corporate debt securities	$	—	$	20,100	$	—	$	20,100
U.S. treasury securities	—		12,544		—		12,544
Certificates of Deposit	—		517		—		517
Total asset measured at fair value (1)	$	—	$	33,161	$	—	$	33,161

(1) Included within Investment securities in the Consolidated Balance Sheets.

	March 31, 2022
	Level I		Level II		Level III		Total
Corporate debt securities	$	—	$	87,074	$	—	$	87,074
U.S. treasury securities	—		17,662		—		17,662
Certificates of Deposit	—		516		—		516
Total asset measured at fair value (1)	$	—	$	105,252	$	—	$	105,252

(1) Included within Investment securities in the Consolidated Balance Sheets.

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INVESTMENT SECURITIES (Tables)

6 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Schedule of Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Securities

The amortized cost and gross unrealized gains (losses) of marketable investment securities accounted under the fair value method were as follows:

	September 30, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value (1)
Corporate debt securities	$	21,910	$	—	$	(1,810)	$	20,100
U.S. treasury securities	13,196		—		(652)		12,544
Certificates of Deposit	517		—		—		517
Total securities with unrealized gains/(losses)	$	35,623	$	—	$	(2,462)	$	33,161

(1) Included within Investment securities in the Consolidated Balance Sheets.

	March 31, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value (1)
Corporate debt securities	$	88,475	$	2	$	(1,403)	$	87,074
U.S. treasury securities	17,891		—		(229)		17,662
Certificates of Deposit	516		—		—		516
Total securities with unrealized gains/(losses)	$	106,882	$	2	$	(1,632)	$	105,252

(1) Included within Investment securities in the Consolidated Balance Sheets.

Schedule of Maturities of Debt Securities

Scheduled maturities of the debt securities held by the Company included within the investment securities portfolio were as follows:

	September 30, 2022				March 31, 2022
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due within one year	$	4,886	$	4,809	$	72,963	$	72,950
Due within years two through five	30,737		28,352		33,919		32,302
Total debt within the investment securities portfolio	$	35,623	$	33,161	$	106,882	$	105,252

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ALLOWANCE FOR CREDIT LOSSES (Tables)

6 Months Ended

Sep. 30, 2022

Receivables [Abstract]

Allowance for Uncollectible Accounts Receivable

	September 30, 2022
Beginning balance	$	13,274
Provision for bad debt, net	6,103
Recovery/(write-off) of uncollectible accounts, net	(4,705)
Ending balance	$	14,672

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PROPERTY AND EQUIPMENT (Tables)

6 Months Ended

Sep. 30, 2022

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

Property and equipment, net of accumulated depreciation consists of the following:

	September 30, 2022		March 31, 2022
Equipment	$	9,752	$	9,692
Furniture and fixtures	20,050		22,704
Leasehold improvements	73,104		59,462
Computers and software	14,549		14,308
Other	7,487		7,476
Total cost	124,942		113,642
Less: accumulated depreciation	(62,736)		(61,466)
Total net book value	$	62,206	$	52,176

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GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

6 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill and Other Intangibles

The following table provides a reconciliation of Goodwill and other intangibles, net reported on the Consolidated Balance Sheets.

	Useful Lives	September 30, 2022		March 31, 2022
Goodwill	Indefinite	$	1,051,294	$	1,070,442
Tradename-Houlihan Lokey	Indefinite	192,210		192,210
Other intangible assets	Varies	91,022		92,941
Total cost		1,334,526		1,355,593
Less: accumulated amortization		(68,634)		(37,818)
Goodwill and other intangibles, net		$	1,265,892	$	1,317,775

Schedule of Goodwill

Goodwill attributable to the Company’s business segments is as follows:

	April 1, 2022		Change (1)		September 30, 2022
Corporate Finance	$	815,912	$	(19,148)	$	796,764
Financial Restructuring	162,815		—		162,815
Financial and Valuation Advisory	91,715		—		91,715
Goodwill	$	1,070,442	$	(19,148)	$	1,051,294

(1)Changes pertain primarily to foreign currency translation adjustments.

Estimated Future Amortization for Amortizable Intangible Assets

The estimated future amortization for finite-lived intangible assets for each of the next five years and thereafter are as follows:

	Year Ended March 31,
Remainder of 2023	$	13,195
2024	7,374
2025	1,515
2026	—
2027 and thereafter	—

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ACCUMULATED OTHER COMPREHENSIVE (LOSS) (Tables)

6 Months Ended

Sep. 30, 2022

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Loss

Accumulated other comprehensive (loss) as of September 30, 2022 was comprised of the following:

Balance, April 1, 2022	$	(43,347)
Foreign currency translation adjustment	(50,863)
Balance, September 30, 2022	$	(94,210)

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EARNINGS PER SHARE (Tables)

6 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Calculation of Basic and Diluted Net Income Per Share

The calculations of basic and diluted earnings per share attributable to holders of shares of common stock are presented below.

	Three Months Ended September 30,				Six Months Ended September 30,
	2022		2021		2022		2021
Numerator:
Net income attributable Houlihan Lokey, Inc.	$	60,730	$	112,883	$	131,512	$	198,843
Denominator:
Weighted average shares of common stock outstanding — basic	63,422,701		65,156,968		63,350,545		65,433,649
Weighted average number of incremental shares pertaining to unvested restricted stock and issuable in respect of unvested restricted stock units, as calculated using the treasury stock method	6,377,327		3,409,159		5,966,247		3,208,313
Weighted average shares of common stock outstanding — diluted	69,800,028		68,566,127		69,316,792		68,641,962
Basic earnings per share	$	0.96	$	1.73	$	2.08	$	3.04
Diluted earnings per share	$	0.87	$	1.65	$	1.90	$	2.90

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EMPLOYEE BENEFIT PLANS (Tables)

6 Months Ended

Sep. 30, 2022

Share-based Payment Arrangement [Abstract]

Activity in Equity Classified Share Awards

Activity in equity classified share awards which relate to the Company's 2016 Incentive Plan during the six months ended September 30, 2022 and 2021 was as follows:

Unvested Share Awards	Shares	Weighted Average Grant Date Fair Value
Balance, April 1, 2022	4,314,375	$	71.42
Granted	2,221,461	84.49
Vested	(1,175,311)	59.82
Forfeited/Repurchased	(76,002)	80.44
Balance, September 30, 2022	5,284,523	$	79.37
Balance, April 1, 2021	2,744,605	$	51.37
Granted	1,638,748	73.19
Vested	(1,039,535)	47.80
Forfeited/Repurchased	(59,414)	60.92
Balance, September 30, 2021	3,284,404	$	63.22

Activity in Liability Classified Share Awards

Activity in liability classified share awards during the six months ended September 30, 2022 and 2021 was as follows:

Awards Settleable in Shares	Fair Value
Balance, April 1, 2022	$	14,349
Offer to grant	6,188
Share price determined-converted to cash payments	(2,676)
Share price determined-transferred to equity grants	(4,269)
Forfeited	—
Balance, September 30, 2022	$	13,592
Balance, April 1, 2021	$	16,950
Offer to grant	1,094
Share price determined-converted to cash payments	(2,676)
Share price determined-transferred to equity grants	(4,269)
Forfeited	—
Balance, September 30, 2021	$	11,099

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LEASES (Tables)

6 Months Ended

Sep. 30, 2022

Leases [Abstract]

Lessee, Operating Lease, Liability, Maturity

The following table outlines the maturity of our existing operating lease liabilities on a fiscal year-end basis as of September 30, 2022.

Maturity of Operating Leases

	Operating Leases
Remaining 2023	$	15,430
2024	29,044
2025	29,093
2026	26,582
2027	23,036
Thereafter	93,575
Total	216,760
Less: present value discount	(27,823)
Operating lease liabilities	$	188,937

Lease, Cost

Lease costs

	Three Months Ended September 30,				Six Months Ended September 30,
	2022		2021		2022		2021
Operating lease expense	$	8,571	$	6,459	$	15,807	$	13,674
Variable lease expense (1)	4,725		2,549		9,244		5,529
Short-term lease expense	52		43		87		90
Less: Sublease income	(63)		—		(63)		(18)
Total lease costs	$	13,285	$	9,051	$	25,075	$	19,275

(1)Primarily consists of payments for property taxes, common area maintenance and usage based operating costs.

Weighted-average details

	September 30,
	2022		2021
Weighted-average remaining lease term (years)	9		9
Weighted-average discount rate	3.3	%	3.8	%

Supplemental cash flow information related to leases:

	Six Months Ended September 30,
	2022		2021
Operating cash flows:
Cash paid for amounts included in the measurement of Operating lease liabilities	$	18,292	$	14,780
Non-cash activity:
Operating lease right-of-use assets obtained in exchange of Operating lease liabilities	$	19,219	$	217
Change in Operating lease right-of-use assets due to remeasurement	161		(330)

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SEGMENT AND GEOGRAPHICAL INFORMATION (Tables)

6 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Schedule of Revenue, Profit and Assets by Segment

The following tables present information about revenues, profit and assets by segment and geography.    

	Three Months Ended September 30,				Six Months Ended September 30,
	2022		2021		2022		2021
Revenues by segment
Corporate Finance	$	315,016	$	388,410	$	578,967	$	598,401
Financial Restructuring	97,694		83,184		176,532		181,959
Financial and Valuation Advisory	76,827		65,678		152,682		129,634
Revenues	$	489,537	$	537,272	$	908,181	$	909,994
Segment profit (1)
Corporate Finance	$	93,794	$	151,185	$	185,359	$	236,334
Financial Restructuring	17,563		20,082		44,259		46,175
Financial and Valuation Advisory	26,169		18,367		45,203		40,576
Total segment profit	137,526		189,634		274,821		323,085
Corporate expenses (2)	48,155		32,315		107,880		58,090
Other expense, net	5,104		853		6,853		752
Income before provision for income taxes	$	84,267	$	156,466	$	160,088	$	264,243

(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.

(2)Corporate expenses represent expenses that are not allocated to individual business segments such as office of the executives, accounting, information technology, compliance, legal, marketing, and human capital.

	September 30, 2022		March 31, 2022
Assets by segment
Corporate Finance	$	996,898	$	994,623
Financial Restructuring	171,669		178,148
Financial and Valuation Advisory	174,016		155,853
Total segment assets	1,342,583		1,328,624
Corporate assets	1,167,616		1,558,186
Total assets	$	2,510,199	$	2,886,810

Revenue by Geographic Areas

	Three Months Ended September 30,				Six Months Ended September 30,
	2022		2021		2022		2021
Income before provision for income taxes by geography
United States	$	63,771	$	124,644	$	114,023	$	211,241
International	20,496		31,822		46,065		53,002
Income before provision for income taxes	$	84,267	$	156,466	$	160,088	$	264,243

	Three Months Ended September 30,				Six Months Ended September 30,
	2022		2021		2022		2021
Revenues by geography
United States	$	377,608	$	432,726	$	681,057	$	744,453
International	111,929		104,546		227,124		165,541
Revenues	$	489,537	$	537,272	$	908,181	$	909,994

Assets by Geographical Areas

	September 30, 2022		March 31, 2022
Assets by geography
United States	$	1,713,187	$	2,032,390
International	797,012		854,420
Total assets	$	2,510,199	$	2,886,810

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Business Combinations (Tables)

6 Months Ended

Sep. 30, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of Business Acquisitions, by Acquisition

Acquisition Consideration
GCA common shares, including employee share-based payment awards outstanding, as of the Acquisition Date	49,382,808
Cash consideration per share	¥	1,398
Cash consideration for tendered common shares	$	531,883
Cash consideration for remaining shares purchased	57,686
Total cash consideration	$	589,569

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the fair value of assets acquired and liabilities assumed as part of the GCA acquisition. We made significant estimates and exercised significant judgment in estimating fair values and accounting for such acquired assets and liabilities. The intangible assets subject to amortization will be amortized on a straight-line basis over their estimated useful lives as of the acquisition date. Measurement period adjustments recognized in the second quarter of fiscal 2023 related to updated estimated fair values for income taxes receivable/(payable) and deferred income taxes with no such adjustments recognized in the first quarter of fiscal 2023.

	Previously Reported As Of June 30, 2022		Measurement Period Adjustments		Fair Value As Of September 30, 2022		Weighted-Average Amortization Period
Assets acquired:
Cash and cash equivalents	$	228,877	$	—	$	228,877
Investment securities	515		—		515
Accounts receivable	54,804		—		54,804
Unbilled work in progress	4,672		—		4,672
Income taxes receivable	1,771		(1,771)		—
Deferred income taxes	—		1,876		1,876
Property and equipment	8,727		—		8,727
Operating lease right-of-use assets	27,383		—		27,383
Other assets	20,506		—		20,506
Intangible assets other than goodwill
Backlog	42,000		—		42,000		1.2 years
Trade name	17,100		—		17,100		2.0 years
Customer relationships	15,200		—		15,200		1.0 year
Total intangible assets acquired	74,300		—		74,300		1.3 years
Total assets	421,555		105		421,660
Liabilities assumed:
Accrued salaries and bonuses	152,409		—		152,409
Accounts payable and accrued expenses	22,722		—		22,722
Payable to affiliates	15		—		15
Deferred income	78		—		78
Deferred income taxes	3,552		(3,552)		—
Income taxes payable	—		2,697		2,697
Operating lease liabilities	27,527		—		27,527
Other liabilities	19,897		—		19,897
Total liabilities	226,200		(855)		225,345
Net identifiable assets acquired	195,355		960		196,315
Goodwill	394,214		(960)		393,254
Total GCA equity value	$	589,569	$	—	$	589,569

Business Acquisition, Pro Forma Information

	(Unaudited)
	Three Months Ended September 30,				Six Months Ended September 30,
	2022		2021		2022		2021
Revenue	$	489,537	$	669,230	$	908,181	$	1,212,704
Net income	$	71,320	$	115,860	$	155,572	$	213,993

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BACKGROUND (Details)	6 Months Ended
	Sep. 30, 2022 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of business segments	3

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Thousands, € in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) segment	Sep. 30, 2021 USD ($)	Sep. 30, 2022 EUR (€)	Mar. 31, 2022 USD ($)	Sep. 30, 2021 EUR (€)
Related Party Transaction [Line Items]
Number of business segments | segment			3
Reduction to retained earnings	$ 1,446,668		$ 1,446,668			$ 1,443,705
Retained earnings	981,204		981,204			$ 922,223
Provision for income taxes	23,537	$ 43,583	$ 28,576	$ 65,400
Foreign Currency Forward Contract | United Kingdom, Pounds
Related Party Transaction [Line Items]
Aggregate notional value of foreign currency forward contract | €					€ 7.5
Foreign Currency Forward Contract | Euro Member Countries, Euro
Related Party Transaction [Line Items]
Aggregate notional value of foreign currency forward contract | €					€ 0.5		€ 1.7
Other operating expenses | Foreign Currency Forward Contract
Related Party Transaction [Line Items]
Fair value gains (losses) included in other operating expenses	$ (232)	$ (7)

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Mar. 31, 2021
Accounting Policies [Abstract]
Cash and cash equivalents	$ 503,806	$ 833,697
Restricted cash	373	373
Total cash, cash equivalents, and restricted cash	$ 504,179	$ 834,070	$ 923,382	$ 847,224

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REVENUE RECOGNITION - Summary of Receivables, Contract Assets, and Contract Liabilities (Details) $ in Thousands	6 Months Ended
	Sep. 30, 2022 USD ($)
Receivables
Beginning balance	$ 139,680
Increase/(Decrease)	(9,739)
Ending balance	129,941
Unbilled work in process, net of allowance for doubtful accounts
Beginning balance	104,751
Increase/(Decrease)	51,184
Ending balance	155,935
Contract Assets
Beginning balance	4,349
Increase/(Decrease)	901
Ending balance	5,250
Contract Liabilities
Beginning balance	28,753
Increase/(Decrease)	6,729
Ending balance	$ 35,482

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REVENUE RECOGNITION - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Sep. 30, 2022	Sep. 30, 2022
Revenue from Contract with Customer [Abstract]
Revenue recognized that was previously included in deferred income	$ 1.0	$ 6.5

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RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Mar. 31, 2022
Other Assets | Loans Receivable | Certain employees
Related Party Transaction [Line Items]
Due from related parties	$ 23,447	$ 17,100

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FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Mar. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total asset measured at fair value	$ 33,161	$ 105,252
Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total asset measured at fair value	0	0
Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total asset measured at fair value	33,161	105,252
Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total asset measured at fair value	0	0
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total asset measured at fair value	20,100	87,074
Corporate debt securities | Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total asset measured at fair value	0	0
Corporate debt securities | Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total asset measured at fair value	20,100	87,074
Corporate debt securities | Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total asset measured at fair value	0	0
U.S. treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total asset measured at fair value	12,544	17,662
U.S. treasury securities | Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total asset measured at fair value	0	0
U.S. treasury securities | Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total asset measured at fair value	12,544	17,662
U.S. treasury securities | Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total asset measured at fair value	0	0
Certificates of Deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total asset measured at fair value	517	516
Certificates of Deposit | Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total asset measured at fair value	0	0
Certificates of Deposit | Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total asset measured at fair value	517	516
Certificates of Deposit | Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total asset measured at fair value	$ 0	$ 0

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INVESTMENT SECURITIES - Schedule of Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Securities Held to Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Mar. 31, 2022
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 35,623
Gross Unrealized Gains	0
Gross Unrealized (Losses)	(2,462)
Fair Value (1)	33,161
Amortized Cost		$ 106,882
Gross Unrealized Gains		2
Gross Unrealized (Losses)		(1,632)
Fair Value (1)		105,252
Corporate debt securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	21,910
Gross Unrealized Gains	0
Gross Unrealized (Losses)	(1,810)
Fair Value (1)	20,100
Amortized Cost		88,475
Gross Unrealized Gains		2
Gross Unrealized (Losses)		(1,403)
Fair Value (1)		87,074
U.S. treasury securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	13,196
Gross Unrealized Gains	0
Gross Unrealized (Losses)	(652)
Fair Value (1)	12,544
Amortized Cost		17,891
Gross Unrealized Gains		0
Gross Unrealized (Losses)		(229)
Fair Value (1)		17,662
Certificates of Deposit
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	517	516
Gross Unrealized Gains	0	0
Gross Unrealized (Losses)	0	0
Fair Value (1)	$ 517	$ 516

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INVESTMENT SECURITIES - Schedule of Maturities of Debt Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Mar. 31, 2022
Debt Securities, Held-to-maturity, Maturity [Abstract]
Amortized Cost , due within one year	$ 4,886	$ 72,963
Estimated Fair Value, due within one year	4,809	72,950
Amortized Cost, Due within one year through five years	30,737	33,919
Estimated Fair Value, Due within one year through five years	28,352	32,302
Amortized Cost	35,623	106,882
Estimated Fair Value	$ 33,161	$ 105,252

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ALLOWANCE FOR CREDIT LOSSES (Details) $ in Thousands	6 Months Ended
	Sep. 30, 2022 USD ($)
Allowance for Uncollectible Accounts Receivable
Beginning balance	$ 13,274
Transition adjustment as of April 1, 2020	14,672
Provision for bad debt, net	6,103
Recovery/(write-off) of uncollectible accounts, net	(4,705)
Ending balance	$ 14,672

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PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Mar. 31, 2022
Property, Plant and Equipment [Line Items]
Total cost	$ 124,942		$ 124,942		$ 113,642
Less: accumulated depreciation	(62,736)		(62,736)		(61,466)
Total net book value	62,206		62,206		52,176
Depreciation expense	3,849	$ 2,732	7,228	$ 5,839
Equipment
Property, Plant and Equipment [Line Items]
Total cost	9,752		9,752		9,692
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total cost	20,050		20,050		22,704
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total cost	73,104		73,104		59,462
Computers and software
Property, Plant and Equipment [Line Items]
Total cost	14,549		14,549		14,308
Other
Property, Plant and Equipment [Line Items]
Total cost	$ 7,487		$ 7,487		$ 7,476

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GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 1,051,294	$ 1,070,442
Tradename-Houlihan Lokey	192,210	192,210
Other intangible assets	91,022	92,941
Total cost	1,334,526	1,355,593
Less: accumulated amortization	(68,634)	(37,818)
Goodwill and other intangibles, net	$ 1,265,892	$ 1,317,775

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GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill by Business Segments (Details) $ in Thousands	6 Months Ended
	Sep. 30, 2022 USD ($)
Goodwill
44652	$ 1,070,442
Changes	(19,148)
September 30, 2022	1,051,294
Corporate Finance
Goodwill
44652	815,912
Changes	(19,148)
September 30, 2022	796,764
Financial Restructuring
Goodwill
44652	162,815
Changes	0
September 30, 2022	162,815
Financial Advisory Services
Goodwill
44652	91,715
Changes	0
September 30, 2022	$ 91,715

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GOODWILL AND OTHER INTANGIBLE ASSETS - Finite-Lived Intangible Assets, Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 15,625	$ 1,612	$ 31,390	$ 2,676

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GOODWILL AND OTHER INTANGIBLE ASSETS - Finite-Lived Intangible Assets, Amortization Expense, Fiscal Year Maturity (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remainder of 2023	$ 13,195
2024	7,374
2025	1,515
2026	0
2027 and thereafter	$ 0

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LOANS PAYABLE - Narrative (Details)			3 Months Ended		6 Months Ended
	Aug. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Mar. 31, 2022 USD ($)	Aug. 23, 2019 USD ($)	May 31, 2018 USD ($)	Apr. 30, 2018 GBP (£)
Bank of America | Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity								$ 100,000,000
Outstanding line of credit			$ 0		$ 0
2019 Line of Credit, Expansion Option | Bank of America | Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity								$ 200,000,000
Loans Payable | Non Interest Bearing Unsecured Convertible Loan
Debt Instrument [Line Items]
Interest on debt			1,000	$ 35,000	22,000	$ 94,000
Loans payable, face amount	$ 4,500,000		20,300,000		20,300,000					£ 10,500,000
Debt instrument, exchange period	3 years
Loans Payable | 2.88% Loans Payable
Debt Instrument [Line Items]
Interest on debt			0	27,000	18,000	53,000
Stated interest rate (as a percent)									2.88%
Loans payable, face amount									$ 2,800,000
Loans Payable | 2.75% Loans Payable
Debt Instrument [Line Items]
Interest on debt			21,000	$ 20,000	41,000	$ 39,000
Stated interest rate (as a percent)		2.75%
Loans payable, face amount		$ 4,000,000
Debt instrument, exchange period		4 years
Baylor Klein, Ltd
Debt Instrument [Line Items]
Contingent consideration			$ 17,100,000		$ 17,100,000		$ 17,600,000

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ACCUMULATED OTHER COMPREHENSIVE (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Sep. 30, 2022	Sep. 30, 2022
Accumulated Other Comprehensive Loss
Balance, April 1, 2022		$ (43,347)
Balance, September 30, 2022	$ (94,210)	$ (94,210)
Accumulated Foreign Currency Adjustment Attributable to Parent
Accumulated Other Comprehensive Loss
Foreign currency translation adjustment	$ (50,863)

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INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 23,537	$ 43,583	$ 28,576	$ 65,400
Effective tax rate	27.90%		17.90%	24.70%

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EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Numerator:
Net income	$ 60,730	$ 112,883	$ 131,512	$ 198,843
Denominator:
Weighted average shares of common stock outstanding—basic (in shares)	63,422,701	65,156,968	63,350,545	65,433,649
Weighted average number of incremental shares issuable from unvested restricted stock and restricted stock units, as calculated using the treasury stock method (in shares)	6,377,327	3,409,159	5,966,247	3,208,313
Weighted average shares of common stock outstanding—diluted (in shares)	69,800,028	68,566,127	69,316,792	68,641,962
Net income per share attributable to holders of shares of common stock
Basic (in dollars per share)	$ 0.96	$ 1.73	$ 2.08	$ 3.04
Diluted (in dollars per share)	$ 0.87	$ 1.65	$ 1.90	$ 2.90

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EMPLOYEE BENEFIT PLANS - Defined Contribution Plans (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Share-based Payment Arrangement [Abstract]
Defined contribution plan, amount of contributions	$ 1,867	$ 1,298	$ 3,801	$ 2,748

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EMPLOYEE BENEFIT PLANS - Share-Based Incentive Plans (Narrative) (Details)		1 Months Ended	3 Months Ended				6 Months Ended
	Oct. 19, 2017 shares	Aug. 31, 2015	Sep. 30, 2022 USD ($)	Jun. 30, 2022 director $ / shares	Sep. 30, 2021 USD ($)	Jun. 30, 2021 director $ / shares	Sep. 30, 2022 USD ($) $ / shares shares	Sep. 30, 2021 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Excess tax benefits recorded | $			$ 8,102					$ 6,922,000
Payments to settle employee tax obligations on share-based awards | $							$ 42,191,000	33,700,000
Compensation expenses | $			41,399,000		$ 18,956,000		82,006,000	53,246,000
Unrecognized compensation cost | $			$ 519,704,000		$ 177,341,000		$ 519,704,000	$ 177,341,000
Unrecognized compensation cost, period for recognition							2 years 9 months 18 days	1 year 8 months 12 days
Increase (reduction) to common stock available for issuance (in shares)	12,200,000
Common stock available for issuance (in shares)	8,000,000
Increase (reduction) to common stock available for issuance (in shares)	(12,200,000)
Annual increase to number of shares available for issuance (as a percent)	6.00%
2006 Incentive Plan | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)							2,221,461	1,638,748
Aggregate shares granted, price per share (in dollars per share) | $ / shares							$ 84.49	$ 73.19
2016 Incentive Plan | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		4 years
2016 Incentive Plan | Director | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate shares granted, number of recipients | director				6		6
Aggregate shares granted, price per share (in dollars per share) | $ / shares				$ 84.55		$ 73.19
Class A Common Stock | April 1, 2018 | Amended And Restated 2016 Incentive Award Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase (reduction) to common stock available for issuance (in shares)	(6,540,659)
Increase (reduction) to common stock available for issuance (in shares)	6,540,659
Common Class B | April 1, 2018 | Amended And Restated 2016 Incentive Award Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase (reduction) to common stock available for issuance (in shares)	(6,540,659)
Increase (reduction) to common stock available for issuance (in shares)	6,540,659

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EMPLOYEE BENEFIT PLANS - Activity in Equity Classified Share Awards (Details) - $ / shares	6 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Restricted Stock Units (RSUs)
Shares
Beginning balance (in shares)	1,038,503	38,475
Granted (in shares)	50,556	54,525
Vested (in shares)	(24,138)	(12,454)
Forfeited/Repurchased (in shares)	(14,275)	(1,595)
Ending balance (in shares)	1,050,646	78,951
Weighted Average Grant Date Fair Value
Beginning balance (in dollars per share)	$ 95.27	$ 55.58
Granted (in dollars per share)	84.55	71.09
Vested (in dollars per share)	63.75	52.33
Forfeited/Repurchased (in dollars per share)	96.82	66.70
Ending balance (in dollars per share)	$ 95.45	$ 66.48
2006 Incentive Plan | Restricted Stock
Shares
Beginning balance (in shares)	4,314,375	2,744,605
Granted (in shares)	2,221,461	1,638,748
Vested (in shares)	(1,175,311)	(1,039,535)
Forfeited/Repurchased (in shares)	(76,002)	(59,414)
Ending balance (in shares)	5,284,523	3,284,404
Weighted Average Grant Date Fair Value
Beginning balance (in dollars per share)	$ 71.42	$ 51.37
Granted (in dollars per share)	84.49	73.19
Vested (in dollars per share)	59.82	47.80
Forfeited/Repurchased (in dollars per share)	80.44	60.92
Ending balance (in dollars per share)	$ 79.37	$ 63.22

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EMPLOYEE BENEFIT PLANS - Activity in Liability Classified Shares (Details) - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Awards Settleable in Shares
Beginning balance	$ 14,349	$ 16,950
Offer to grant	6,188	1,094
Share price determined-converted to cash payments	(2,676)	(2,676)
Share price determined-transferred to equity grants	(4,269)	4,269
Forfeited	0	0
Ending balance	$ 13,592	$ 11,099

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STOCKHOLDERS' EQUITY (Details)	3 Months Ended		6 Months Ended
	Sep. 30, 2022 USD ($) $ / shares shares	Sep. 30, 2021 USD ($) $ / shares shares	Sep. 30, 2022 USD ($) $ / shares shares	Sep. 30, 2021 USD ($) $ / shares shares	Jun. 30, 2022 shares	Mar. 31, 2022 shares	Jul. 31, 2021 USD ($)	Jun. 30, 2021 shares	Mar. 31, 2021 shares	Aug. 18, 2015
Class of Stock [Line Items]
Conversion ratio of common stock										1
Dividends outstanding | $	$ 12,003,000	$ 6,480,000	$ 12,003,000	$ 6,480,000
Authorized amount to be repurchased | $							$ 500,000,000
Weighted average price per share (in dollars per share) | $ / shares	$ 81.74	$ 82.78	$ 84.72	$ 79.06
Class A Common Stock
Class of Stock [Line Items]
Shares issued of common stock (in shares)	49,780,875		49,780,875			49,853,564
Number of common shares outstanding (in shares)	49,780,875		49,780,875			49,853,564
Outstanding common stock repurchased and retired (in shares)	100,257,000	548,896,000	577,287,000	1,428,034,000
Shares repurchased and retired, value | $	$ 8,195,000	$ 45,437,000	$ 48,905,000	$ 112,904,000
Class A Common Stock | Common stock
Class of Stock [Line Items]
Shares issued to non-employee directors (in shares)			6,739	6,512
Conversion of Class B to Class A shares (in shares)	231,367	384,632	497,859	1,103,085
Number of common shares outstanding (in shares)	49,780,875	50,927,005	49,780,875	50,927,005	49,649,765	49,853,564		51,091,269	51,245,442
Class B Common Stock
Class of Stock [Line Items]
Shares issued of common stock (in shares)	18,874,122		18,874,122			17,649,555
Number of common shares outstanding (in shares)	18,874,122		18,874,122			17,649,555
Outstanding common stock repurchased and retired (in shares)	9,731,000	490,000	506,462,000	455,402,000
Shares repurchased and retired, value | $	$ 70,000	$ 0	$ 42,191,000	$ 33,700,000
Class B Common Stock | Common stock
Class of Stock [Line Items]
Number of common shares outstanding (in shares)	18,874,122	17,348,305	18,874,122	17,348,305	19,136,952	17,649,555		17,745,973	16,951,696
Investor | Class A Common Stock
Class of Stock [Line Items]
Shares issued of common stock (in shares)	49,722,549,000	50,872,848,000	49,722,549,000	50,872,848,000
Director | Class A Common Stock
Class of Stock [Line Items]
Shares issued to non-employee directors (in shares)	0	0	6,739	6,512
HL Holders | Class B Common Stock
Class of Stock [Line Items]
Number of common shares outstanding (in shares)	18,874,122,000	17,348,305,000	18,874,122,000	17,348,305,000
Director | Class A Common Stock
Class of Stock [Line Items]
Shares issued of common stock (in shares)	58,326,000	54,157,000	58,326,000	54,157,000

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LEASES - Narrative (Details) $ in Millions	Sep. 30, 2022 USD ($)
Lessee, Lease, Description [Line Items]
Lease not yet commenced, amount	$ 190.2
Minimum
Lessee, Lease, Description [Line Items]
Operating lease, term of contract	1 year
Operating lease, lease not yet commenced, term of contract	3 years
Maximum
Lessee, Lease, Description [Line Items]
Operating lease, term of contract	14 years
Operating lease, lease not yet commenced, term of contract	13 years

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LEASES - Maturity of Existing Operating Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Mar. 31, 2022
Leases [Abstract]
Remaining 2023	$ 15,430
2024	29,044
2025	29,093
2026	26,582
2027	23,036
Thereafter	93,575
Total	216,760
Less: present value discount	(27,823)
Operating lease liabilities	$ 188,937	$ 197,091

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LEASES - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Leases [Abstract]
Operating lease expense	$ 8,571	$ 6,459	$ 15,807	$ 13,674
Variable lease expense	4,725	2,549	9,244	5,529
Short-term lease expense	52	43	87	90
Less: Sublease income	(63)	0	(63)	(18)
Total lease costs	$ 13,285	$ 9,051	$ 25,075	$ 19,275

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LEASES - Weighted Average Details (Details)	Sep. 30, 2022	Sep. 30, 2021
Leases [Abstract]
Weighted-average remaining lease term (years)	9 years	9 years
Weighted-average discount rate	3.30%	3.80%

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LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Leases [Abstract]
Cash paid for amounts included in the measurement of Operating lease liabilities	$ 18,292	$ 14,780
Operating lease right-of-use assets obtained in exchange of Operating lease liabilities	19,219	217
Change in Operating lease right-of-use assets due to remeasurement	$ 161	$ (330)

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SEGMENT AND GEOGRAPHICAL INFORMATION - Revenue and Assets by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Mar. 31, 2022
Segment Reporting Information [Line Items]
Revenues	$ 489,537	$ 537,272	$ 908,181	$ 909,994
Segment profit	137,526	189,634	274,821	323,085
Corporate expenses	400,166	379,953	741,240	644,999
Other expense, net	5,104	853	6,853	752
Income before provision for income taxes	84,267	156,466	160,088	264,243
Total assets	2,510,199		2,510,199		$ 2,886,810
Operating Segments
Segment Reporting Information [Line Items]
Total assets	1,342,583		1,342,583		1,328,624
Operating Segments | Corporate Finance
Segment Reporting Information [Line Items]
Revenues	315,016	388,410	578,967	598,401
Segment profit	93,794	151,185	185,359	236,334
Total assets	996,898		996,898		994,623
Operating Segments | Financial Restructuring
Segment Reporting Information [Line Items]
Revenues	97,694	83,184	176,532	181,959
Segment profit	17,563	20,082	44,259	46,175
Total assets	171,669		171,669		178,148
Operating Segments | Financial Advisory Services
Segment Reporting Information [Line Items]
Revenues	76,827	65,678	152,682	129,634
Segment profit	26,169	18,367	45,203	40,576
Total assets	174,016		174,016		155,853
Corporate, Non-Segment
Segment Reporting Information [Line Items]
Corporate expenses	48,155	32,315	107,880	58,090
Total assets	1,167,616		1,167,616		$ 1,558,186
Segment Reconciling Items
Segment Reporting Information [Line Items]
Other expense, net	$ 5,104	$ 853	$ 6,853	$ 752

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SEGMENT AND GEOGRAPHICAL INFORMATION - Revenue and Assets by Geographical Areas (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Mar. 31, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]
Income before provision for income taxes	$ 84,267	$ 156,466	$ 160,088	$ 264,243
Revenues	489,537	537,272	908,181	909,994
Total assets	2,510,199		2,510,199		$ 2,886,810
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Income before provision for income taxes	63,771	124,644	114,023	211,241
Revenues	377,608	432,726	681,057	744,453
Total assets	1,713,187		1,713,187		2,032,390
International
Revenues from External Customers and Long-Lived Assets [Line Items]
Income before provision for income taxes	20,496	31,822	46,065	53,002
Revenues	111,929	$ 104,546	227,124	$ 165,541
Total assets	$ 797,012		$ 797,012		$ 854,420

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Business Combinations - Narrative (Details) $ in Thousands			3 Months Ended		4 Months Ended	6 Months Ended
	Jan. 20, 2022 USD ($)	Oct. 04, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Jan. 31, 2022 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Oct. 04, 2021 ¥ / shares
Business Acquisition [Line Items]
Goodwill			$ 1,051,294			$ 1,051,294			$ 1,070,442
Provision for income taxes			23,537	$ 43,583		28,576	$ 65,400
GCA Corporation
Business Acquisition [Line Items]
Investment interest in Italy (as a percent)		90.00%
Payments to acquire businesses, gross	$ 57,686	$ 531,883			$ 589,569
Cash consideration per share | ¥ / shares										¥ 1,398
Goodwill		$ 393,300	393,254			393,254		$ 394,214
GCA Corporation | Acquisition-related Costs
Business Acquisition [Line Items]
Business combination, acquisition related costs			0	(1,006)		0	(1,077)
Amortization			(14,688)	2,138		(29,306)	11,680
Provision for income taxes			$ 4,098	$ (316)		$ 5,246	$ (2,619)

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Business Combinations - Schedule of Business Acquisitions, by Acquisition (Details) - GCA Corporation $ in Thousands			4 Months Ended
	Jan. 20, 2022 USD ($)	Oct. 04, 2021 USD ($)	Jan. 31, 2022 USD ($)	Oct. 04, 2021 ¥ / shares shares
Business Acquisition [Line Items]
GCA common shares, including employee share-based payment awards outstanding, as of the Acquisition Date (in shares) | shares				49,382,808,000
Cash consideration per share | ¥ / shares				¥ 1,398
Payments to acquire businesses, gross | $	$ 57,686	$ 531,883	$ 589,569

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Business Combinations - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Oct. 04, 2021
Business Acquisition [Line Items]
Goodwill	$ 1,051,294	$ 1,051,294		$ 1,070,442
GCA Corporation
Business Acquisition [Line Items]
Cash and cash equivalents	228,877	228,877	$ 228,877
Investment securities	515	515	515
Accounts receivable	54,804	54,804	54,804
Unbilled work in progress	4,672	4,672	4,672
Income taxes receivable	0	0	1,771
Measurement period adjustments, income taxes receivable	(1,771)
Deferred income taxes	1,876	1,876	0
Measurement period adjustments, deferred tax assets	1,876
Property and equipment	8,727	8,727	8,727
Operating lease right-of-use assets	27,383	27,383	27,383
Other assets	20,506	20,506	20,506
Total intangible assets acquired	74,300	74,300	74,300
Total assets	421,660	421,660	421,555
Measurement period adjustments, total assets	105
Accrued salaries and bonuses	152,409	152,409	152,409
Accounts payable and accrued expenses	22,722	22,722	22,722
Payable to affiliates	15	15	15
Deferred income	78	78	78
Deferred income taxes	0	0	3,552
Measurement period adjustments, deferred income taxes	(3,552)
Income taxes payable	2,697	2,697	0
Measurement period adjustments, income taxes payable	2,697
Operating lease liabilities	27,527	27,527	27,527
Other liabilities	19,897	19,897	19,897
Total liabilities	225,345	225,345	226,200
Measurement period adjustments, liabilities	(855)
Net identifiable assets acquired	196,315	196,315	195,355
Measurement period adjustments, net identifiable assets acquired	960
Goodwill	393,254	393,254	394,214		$ 393,300
Measurement period adjustments, goodwill	(960)
Total GCA equity value	589,569	$ 589,569	589,569
Weighted-Average Amortization Period		1 year 3 months 18 days
GCA Corporation | Backlog
Business Acquisition [Line Items]
Total intangible assets acquired	42,000	$ 42,000	42,000
Weighted-Average Amortization Period		1 year 2 months 12 days
GCA Corporation | Trade name
Business Acquisition [Line Items]
Total intangible assets acquired	17,100	$ 17,100	17,100
Weighted-Average Amortization Period		2 years
GCA Corporation | Customer relationships
Business Acquisition [Line Items]
Total intangible assets acquired	$ 15,200	$ 15,200	$ 15,200
Weighted-Average Amortization Period		1 year

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Business Combinations - Business Acquisition, Pro Forma Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Business Combination and Asset Acquisition [Abstract]
Revenue	$ 489,537	$ 669,230	$ 908,181	$ 1,212,704
Net income	$ 71,320	$ 115,860	$ 155,572	$ 213,993

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Subsequent Events (Details)	Oct. 25, 2022 $ / shares
Subsequent Event
Subsequent Event [Line Items]
Common stock, dividends, per share, declared (in dollars per share)	$ 0.53