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, 2023

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 November 2, 2023, the registrant had 51,614,392 shares of Class A common stock, $0.001 par value per share, and 17,370,751 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	25
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	34
Item 4.	Controls and Procedures	35
	PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	35
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	36
Item 3.	Defaults Upon Senior Securities	36
Item 4.	Mine Safety Disclosures	36
Item 5.	Other Information	36
Item 6.	Exhibits	37
Signatures		38

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, 2023		March 31, 2023
Assets
Cash and cash equivalents	$	493,929	$	714,439
Restricted cash	373		373
Investment securities	31,214		37,309
Accounts receivable, net of allowance for credit losses of $8,969 and $8,773, respectively	152,243		182,029
Unbilled work in progress, net of allowance for credit losses of $6,461 and $5,622, respectively	133,787		115,045
Income taxes receivable	22,549		17,693
Deferred income taxes	106,343		104,941
Property and equipment, net	119,394		88,345
Operating lease right-of-use assets	363,719		333,877
Goodwill	1,086,438		1,087,784
Other intangible assets, net	196,652		203,370
Other assets	74,912		83,609
Total assets	$	2,781,553	$	2,968,814
Liabilities and stockholders' equity
Liabilities:
Accrued salaries and bonuses	$	552,673	$	765,877
Accounts payable and accrued expenses	95,125		113,421
Deferred income	37,370		40,695
Deferred income taxes	349		544
Operating lease liabilities	419,421		374,869
Other liabilities	30,539		60,111
Total liabilities	1,135,477		1,355,517
Commitments and contingencies (Note 17)
Stockholders' equity:
Class A common stock, $0.001 par value. Authorized 1,000,000,000 shares; issued and outstanding 51,565,992 and 50,638,924 shares, respectively	52		51
Class B common stock, $0.001 par value. Authorized 1,000,000,000 shares; issued and outstanding 17,427,625 and 18,048,345 shares, respectively	17		18
Additional paid-in capital	638,404		642,970
Retained earnings	1,087,326		1,033,072
Accumulated other comprehensive loss	(79,723)		(62,814)
Total stockholders' equity	1,646,076		1,613,297
Total liabilities and stockholders' equity	$	2,781,553	$	2,968,814

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)	2023		2022		2023		2022
Revenues	$	466,989	$	489,537	$	882,818	$	908,181
Operating expenses:
Employee compensation and benefits	296,542		309,859		560,025		575,594
Travel, meals, and entertainment	14,151		12,370		30,169		23,420
Rent	19,013		13,285		36,416		25,075
Depreciation and amortization	7,086		19,475		13,618		38,618
Information technology and communications	14,328		13,183		27,876		24,173
Professional fees	10,859		9,598		20,416		16,067
Other operating expenses	14,733		22,396		30,674		38,293
Total operating expenses	376,712		400,166		719,194		741,240
Operating income	90,277		89,371		163,624		166,941
Other (income)/expense, net	(3,296)		5,104		(6,301)		6,853
Income before provision for income taxes	93,573		84,267		169,925		160,088
Provision for income taxes	26,542		23,537		41,504		28,576
Net income	67,031		60,730		128,421		131,512
Other comprehensive income, net of tax:
Foreign currency translation adjustments	(19,883)		(28,554)		(16,909)		(50,863)
Comprehensive income attributable to Houlihan Lokey, Inc.	$	47,148	$	32,176	$	111,512	$	80,649
Attributable to Houlihan Lokey, Inc. common stockholders:
Weighted average shares of common stock outstanding:
Basic	64,551,353		63,422,701		64,180,642		63,350,545
Fully diluted	67,867,381		69,800,028		67,881,623		69,316,792
Earnings per share (Note 13)
Basic	$	1.04	$	0.96	$	2.00	$	2.08
Fully diluted	$	0.99	$	0.87	$	1.89	$	1.90

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, 2023	51,296,601	$	51	18,035,565	$	18	$	616,315	$	1,058,509	$	(59,840)	$	1,615,053
Shares issued	—	—		55,907	—		5,635		—		—		5,635
Stock compensation vesting (Note 14)	—	—		—	—		41,662		—		—		41,662
Dividends	—	—		—	—		—		(38,214)		—		(38,214)
Conversion of Class B to Class A shares	508,491	1		(508,491)	(1)		—		—		—		—
Other shares repurchased/forfeited	(239,100)	—		(155,356)	—		(25,208)		—		—		(25,208)
Net income	—	—		—	—		—		67,031		—		67,031
Change in unrealized translation	—	—		—	—		—		—		(19,883)		(19,883)
Total comprehensive income	—	—		—	—		—		67,031		(19,883)		47,148
Balances – September 30, 2023	51,565,992	$	52	17,427,625	$	17	$	638,404	$	1,087,326	$	(79,723)	$	1,646,076

	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

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, 2023	50,638,924	$	51	18,048,345	$	18	$	642,970	$	1,033,072	$	(62,814)	$	1,613,297
Shares issued	—	—		1,612,192	1		10,811		—		—		10,812
Stock compensation vesting (Note 14)	—	—		—	—		79,010		—		—		79,010
Dividends	—	—		—	—		—		(74,167)		—		(74,167)
Conversion of Class B to Class A shares	1,159,559	1		(1,159,559)	(1)		—		—		—		—
Shares issued to non-employee directors (Note 14)	6,609	—		—	—		587		—		—		587
Other shares repurchased/forfeited	(239,100)	—		(1,073,353)	(1)		(94,974)		—		—		(94,975)
Net income	—	—		—	—		—		128,421		—		128,421
Change in unrealized translation	—	—		—	—		—		—		(16,909)		(16,909)
Total comprehensive income	—	—		—	—		—		128,421		(16,909)		111,512
Balances – September 30, 2023	51,565,992	$	52	17,427,625	$	17	$	638,404	$	1,087,326	$	(79,723)	$	1,646,076

	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

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)	2023		2022
Cash flows from operating activities:
Net income	$	128,421	$	131,512
Adjustments to reconcile net income to net cash used in operating activities:
Deferred income taxes	(2,633)		(14,088)
Provision for bad debts, net	4,058		6,103
Unrealized losses on investment securities	142		2,140
Non-cash lease expense	16,691		14,554
Depreciation and amortization	13,618		38,618
Contingent consideration valuation	(816)		2,869
Compensation expense – equity and liability classified share awards (Note 14)	82,149		82,006
Changes in operating assets and liabilities:
Accounts receivable	26,569		5,388
Unbilled work in progress	(19,582)		(53,837)
Other assets	8,697		(13,025)
Accrued salaries and bonuses	(211,229)		(264,724)
Accounts payable and accrued expenses and other	(36,234)		(79,174)
Deferred income	(3,325)		6,729
Income taxes payable	(4,274)		(57,988)
Net cash provided by/(used) in operating activities	2,252		(192,917)
Cash flows from investing activities:
Purchases of investment securities	(35)		(11,263)
Sales or maturities of investment securities	5,988		82,524
Purchase of property and equipment, net	(38,927)		(17,796)
Net cash provided by/(used in) investing activities	(32,974)		53,465
Cash flows from financing activities:
Dividends paid	(77,390)		(73,812)
Share repurchases	(24,952)		(48,905)
Payments to settle employee tax obligations on share-based awards	(70,025)		(42,191)
Earnouts paid	(7,053)		(2,078)
Loans payable to former shareholders redeemed	—		(33)
Repayments of loans to non-affiliates	—		(2,488)
Other financing activities	587		570
Net cash used in financing activities	(178,833)		(168,937)
Effects of exchange rate changes on cash, cash equivalents, and restricted cash	(10,955)		(21,502)
Net decrease in cash, cash equivalents, and restricted cash	(220,510)		(329,891)
Cash, cash equivalents, and restricted cash – beginning of period	714,812		834,070
Cash, cash equivalents, and restricted cash – end of period	$	494,302	$	504,179
Supplemental disclosures of non-cash activities:
Shares issued via vesting of liability classified awards	$	5,114	$	5,955
Cash paid during the period:
Interest	$	200	$	1,861
Taxes, net of refunds	48,410		102,418
Regulatory fines and penalties	15,000		—

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 is 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.

•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 through more than thirty offices in the United States of America, South America, Europe, the Middle East, and the Asia-Pacific region. The Company earns professional fees by providing focused services across the following three business segments:

•Corporate Finance ("CF") provides general financial advisory services, 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 M&A 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 through bankruptcy proceedings and 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, 2023 are not necessarily indicative of the results of operations to be expected for the fiscal year ending March 31, 2024. 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, 2023 (the "2023 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 (income)/expense, net in the Consolidated Statements of Comprehensive Income.

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).

7

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

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

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 engagement 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 or reports 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, 2023 we had three foreign currency forward contracts outstanding between the U.S. dollar and the pound sterling with an aggregate notional value of $35.2 million and two foreign currency forward contracts outstanding between the euro and the pound sterling with a notional value of €9.4 million. 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. The change in fair value of these contracts represented a loss included in Other operating expenses of $(1,217) and $(232) during the three months ended September 30, 2023 and September 30, 2022, respectively.

8

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

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

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, 2023 and March 31, 2023, 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.

9

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

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

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, 2023		March 31, 2023
Cash and cash equivalents	$	493,929	$	714,439
Restricted cash (1)	373		373
Total cash, cash equivalents, and restricted cash	$	494,302	$	714,812

(1)Restricted cash as of September 30, 2023 and March 31, 2023 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 collectability 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.

10

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

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

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 during the fourth quarter for impairment and more frequently if potential impairment indicators exist. Goodwill is reviewed for impairment in accordance with ASC Topic 350, Intangibles – Goodwill and Other, as amended by Accounting Standards Update ("ASU") No. 2017-04, Simplifying the Test for Goodwill Impairment, which permits management to perform a qualitative analysis to determine whether it is more likely than not that the fair value of a reporting unit is less than its corresponding carrying value. If management determines the reporting unit's fair value is more likely than not less than its carrying value, a quantitative analysis will be performed to compare the fair value of the reporting unit with its corresponding carrying value. If the conclusion of the quantitative analysis is that the fair value is in fact less than the carrying value, management will recognize a goodwill impairment charge for the amount by which the reporting unit’s carrying value exceeds its fair value. Impairment testing of goodwill requires a significant amount of judgment in assessing both qualitative factors and if necessary, quantitative factors used to estimate the fair value of the reporting unit. As of September 30, 2023, 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 quantitative 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, 2023, 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, 2023, no events or changes in circumstances were identified that indicated that the carrying amount of the finite-lived intangible assets were not recoverable.

11

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

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

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.

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, 2023		Increase/(Decrease)		September 30, 2023
Receivables (1)	$	175,023	$	(29,670)	$	145,353
Unbilled work in progress, net of allowance for credit losses	115,045		18,742		133,787
Contract Assets (1)	7,006		(116)		6,890
Contract Liabilities (2)	40,695		(3,325)		37,370

(1)Included within Accounts receivable, net of allowance for credit losses in the September 30, 2023 Consolidated Balance Sheets.

(2)Included within Deferred income in the September 30, 2023 Consolidated Balance Sheets.

During the three and six months ended September 30, 2023, $7.5 million and $20.7 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, 2023.

12

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

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

Note 4 — Related Party Transactions

The Company provides financial advisory services to certain related parties, and received fees for these services totaling approximately $2 and $1,537 for the three and six months ended September 30, 2023, respectively.

Other assets in the accompanying Consolidated Balance Sheets includes loans receivable from certain employees of $25,910 and $28,869 as of September 30, 2023 and March 31, 2023, respectively.

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, 2023
	Level I		Level II		Level III		Total
Corporate debt securities	$	—	$	20,505	$	—	$	20,505
U.S. treasury securities	—		10,186		—		10,186
Certificates of deposit	—		523		—		523
Total assets measured at fair value	$	—	$	31,214	$	—	$	31,214

	March 31, 2023
	Level I		Level II		Level III		Total
Corporate debt securities	$	—	$	23,617	$	—	$	23,617
U.S. treasury securities	—		12,990		—		12,990
Common stock	184		—		—		184
Certificates of deposit	—		518		—		518
Total assets measured at fair value	$	184	$	37,125	$	—	$	37,309

The Company had no transfers between fair value levels during the six months ended September 30, 2023.

13

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, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value (1)
Corporate debt securities	$	21,863	$	3	$	(1,361)	$	20,505
U.S. treasury securities	10,723		—		(537)		10,186
Certificates of deposit	523		—		—		523
Total securities with unrealized gains/(losses)	$	33,109	$	3	$	(1,898)	$	31,214

	March 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value (1)
Corporate debt securities	$	24,936	$	6	$	(1,325)	$	23,617
U.S. treasury securities	13,400		15		(425)		12,990
Common stock	768		—		(584)		184
Certificates of deposit	518		—		—		518
Total securities with unrealized gains/(losses)	$	39,622	$	21	$	(2,334)	$	37,309

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

	September 30, 2023				March 31, 2023
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due within one year	$	3,969	$	3,927	$	6,243	$	6,254
Due within years two through five	29,140		27,287		33,379		31,055
Total debt within the investment securities portfolio	$	33,109	$	31,214	$	39,622	$	37,309

Note 7 — Allowance for Credit Losses

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

	September 30, 2023
Beginning balance	$	14,395
Provision for bad debt, net	4,058
Recovery/(write-off) of uncollectible accounts, net	(3,023)
Ending balance	$	15,430

14

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, 2023		March 31, 2023
Equipment	$	11,126	$	10,178
Furniture and fixtures	18,298		19,508
Leasehold improvements	133,265		107,156
Computers and software	13,745		12,086
Other	7,442		7,411
Total cost	183,876		156,339
Less: accumulated depreciation	(64,482)		(67,994)
Total net book value	$	119,394	$	88,345

Additions to property and equipment during the six months ended September 30, 2023 were primarily related to leasehold improvement costs incurred.

Depreciation expense of $3,727 and $3,849 was recognized for the three months ended September 30, 2023 and 2022, respectively, and $6,903 and $7,228 was recognized for the six months ended September 30, 2023 and 2022, 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, 2023		March 31, 2023
Goodwill	Indefinite	$	1,086,438	$	1,087,784
Tradename-Houlihan Lokey	Indefinite	192,210		192,210
Other intangible assets	Varies	93,781		93,917
Total cost		1,372,429		1,373,911
Less: accumulated amortization		(89,339)		(82,757)
Goodwill and other intangibles, net		$	1,283,090	$	1,291,154

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

	April 1, 2023		Change (1)		September 30, 2023
Corporate Finance	$	833,254	$	(1,346)	$	831,908
Financial Restructuring	162,815		—		162,815
Financial and Valuation Advisory	91,715		—		91,715
Goodwill	$	1,087,784	$	(1,346)	$	1,086,438

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

15

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

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

Amortization expense of approximately $3,360 and $15,625 was recognized for the three months ended September 30, 2023 and 2022, respectively, and $6,715 and $31,390 for the six months ended September 30, 2023 and 2022, 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 2024	$	2,444
2025	1,694
2026	—
2027	—
2028 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, which was amended by the First Amendment to Credit Agreement dated as of August 2, 2022 (the "HLI Line of Credit"), which allows for borrowings of up to $100.0 million (and, subject to certain conditions, provides the Company with an uncommitted expansion option, which, if exercised in full, would provide for a total credit facility of $200.0 million). and matures on August 23, 2025 (or if such date is not a business day, the immediately preceding business day). Borrowings under the HLI Line of Credit bear interest at a floating rate, which can be either, at the Company's option, (i) Term Secured Overnight Financing Rate ("SOFR") plus a 0.10% SOFR adjustment plus a 1.00% margin or (ii) base rate, which is the highest of (a) the Federal Funds Rate plus one-half of one percent (0.50%), (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its “prime rate,” and (c) Term SOFR plus a 0.10% SOFR adjustment. Commitment fees apply to unused amounts, and the HLI Line of Credit contains debt covenants which require that the Company maintain certain financial ratios. As of September 30, 2023 and March 31, 2023, no principal was outstanding under the 2019 Line of Credit.

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 did not incur interest expense on this note during the three months ended September 30, 2023 and 2022, respectively, and incurred interest expense of $0 and $18 for the six months ended September 30, 2023 and 2022, 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 for the three months ended September 30, 2023 and 2022, and $41 for the six months ended September 30, 2023 and 2022.

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. As of September 30, 2023, the note was fully converted and exchanged for a combination of cash and Company stock. Contingent consideration was also issued in connection with the acquisition of MVP, the remaining liability of which was settled during the three months ended September 30, 2023. The carrying value of the MVP contingent consideration was $12.9 million as of March 31, 2023, which is included in Other liabilities in our Consolidated Balance Sheet.

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 $17.9 million and $18.1 million as of September 30, 2023 and March 31, 2023, respectively, which is included in Other liabilities in our Consolidated Balance Sheets.

16

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

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

Note 11 — Accumulated Other Comprehensive (Loss)

Accumulated other comprehensive (loss) is comprised of Foreign currency translation adjustments of $(19,883) and $(28,554) for the three months ended September 30, 2023 and 2022, respectively, and $(16,909) and $(50,863) for the six months ended September 30, 2023 and 2022, respectively.

Accumulated other comprehensive (loss) as of September 30, 2023 was comprised of the following:

Balance, April 1, 2023	$	(62,814)
Foreign currency translation adjustment	(16,909)
Balance, September 30, 2023	$	(79,723)

Note 12 — Income Taxes

The Company’s provision for income taxes was $26,542 and $23,537 for the three months ended September 30, 2023 and 2022, respectively, and $41,504 and $28,576 for the six months ended September 30, 2023 and 2022, respectively. These represent effective tax rates of 28.4% and 27.9% for the three months ended September 30, 2023 and 2022, respectively, and 24.4% and 17.9% for the six months ended September 30, 2023 and 2022, 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,
	2023		2022		2023		2022
Numerator:
Net income attributable Houlihan Lokey, Inc.	$	67,031	$	60,730	$	128,421	$	131,512
Denominator:
Weighted average shares of common stock outstanding — basic	64,551,353		63,422,701		64,180,642		63,350,545
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	3,316,028		6,377,327		3,700,981		5,966,247
Weighted average shares of common stock outstanding — diluted	67,867,381		69,800,028		67,881,623		69,316,792
Basic earnings per share	$	1.04	$	0.96	$	2.00	$	2.08
Diluted earnings per share	$	0.99	$	0.87	$	1.89	$	1.90

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 $3,083 and $1,867 to these plans during the three months ended September 30, 2023 and 2022, respectively, and $6,112 and $3,801 for the six months ended September 30, 2023 and 2022, respectively.

Share-Based Incentive Plans

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 2023 at $84.55 and (ii) six independent directors in the first quarter of fiscal 2024 at $87.60.

17

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

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

No excess tax benefit was recognized during the three months ended September 30, 2023 and 2022. An excess tax benefit of $7,299 and $8,102 was recognized during the six months ended September 30, 2023 and 2022, 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, 2023 and 2022 were related to shares vested in May 2023 and May 2022, 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, 2023 and 2022 was as follows:

Unvested Share Awards	Shares	Weighted Average Grant Date Fair Value
Balance, April 1, 2023	5,281,779	$	79.57
Granted	1,244,902	87.60
Vested	(1,636,778)	74.23
Forfeited/Repurchased	(306,521)	84.30
Balance, September 30, 2023	4,583,382	$	83.34
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

Activity in liability-classified share awards during the six months ended September 30, 2023 and 2022 was as follows:

Awards Settleable in Shares	Fair Value
Balance, April 1, 2023	$	11,971
Offer to grant	9,112
Share price determined-converted to cash payments	(3)
Share price determined-transferred to equity grants	(6,172)
Forfeited	—
Balance, September 30, 2023	$	14,908
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

18

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

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

Activity of our RSUs during the six months ended September 30, 2023 and 2022 was as follows:

Restricted Stock Units	RSUs	Weighted Average Grant Date Fair Value
RSUs as of April 1, 2023	1,050,646	$	95.46
Issued	94,286	87.60
Forfeitures	(19,070)	90.91
Vested	(266,883)	94.38
RSUs as of September 30, 2023	858,979	$	95.02
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

Compensation expenses for the Company associated with both equity-classified and liability-classified awards totaled $42,740 and $41,399 for the three months ended September 30, 2023 and 2022, respectively, and $82,149 and $82,006 for the six months ended September 30, 2023 and 2022, respectively.

As of September 30, 2023 and 2022, there was $463,603 and $519,704, 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 3.4 years and 2.8 years, as of September 30, 2023 and 2022, 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.

Note 15 — Stockholders' Equity

There are two classes of authorized Company 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.

19

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

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

Class A Common Stock

During the three months ended September 30, 2023 and 2022, no shares were issued to non-employee directors and 508,491 and 231,367 shares were converted from Class B to Class A, respectively. During the six months ended September 30, 2023 and 2022, 6,609 and 6,739 shares were issued to non-employee directors, respectively, and 1,159,559 and 497,859 shares were converted from Class B to Class A, respectively.

As of September 30, 2023, there were 51,501,057 Class A shares held by the public and 64,935 Class A shares held by non-employee directors. 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.

Class B Common Stock

As of September 30, 2023 and 2022, there were 17,427,625 and 18,874,122 of Class B shares held by the HL Voting Trust, respectively.

Dividends

Previously declared dividends related to unvested shares of $17,236 and $12,003 were unpaid as of September 30, 2023 and 2022, respectively.

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. As of September 30, 2023, shares with a value of $457.7 million remained available for purchase under the program.

During the three months ended September 30, 2023 and 2022, the Company repurchased 4,235 and 9,731 shares, respectively, of Class B common stock, to satisfy $259 and $70, respectively, of required withholding taxes in connection with the vesting of restricted awards. During the three months ended September 30, 2023, the Company repurchased 239,100 shares of its outstanding Class A common stock at a weighted average price of $104.36 per share, excluding commissions, for an aggregate purchase price of $24,952. 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 six months ended September 30, 2023 and 2022, the Company repurchased 766,832 and 506,462 shares, respectively, of Class B common stock, to satisfy $70,025 and 42,191 of required withholding taxes in connection with the vesting of restricted awards, respectively. During the six months ended September 30, 2023, the Company repurchased 239,100 shares of its outstanding Class A common stock at a weighted average price of $104.36 per share, excluding commissions, for an aggregate purchase price of $24,952. 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.

20

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

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

Note 16 — Leases

Lessee Arrangements

Operating Leases

We lease real estate and equipment used in operations from third parties. As of September 30, 2023, the remaining term of our operating leases ranged from 1 to 16 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, 2023.

Maturity of Operating Leases

	Operating Leases
Remaining 2024	$	12,980
2025	45,382
2026	51,080
2027	48,870
2028	48,165
Thereafter	370,454
Total	576,931
Less: present value discount	(157,510)
Operating lease liabilities	$	419,421

As of September 30, 2023, the Company has entered into operating leases for additional office space that have not yet commenced for approximately $6.5 million. These operating leases will commence during fiscal year 2024 with a lease term of 5 years to 13 years.

Lease costs

	Three Months Ended September 30,				Six Months Ended September 30,
	2023		2022		2023		2022
Operating lease expense	$	13,385	$	8,571	$	25,808	$	15,807
Variable lease expense (1)	5,476		4,725		10,713		9,244
Short-term lease expense	62		52		108		87
Less: Sublease income	90		(63)		(213)		(63)
Total lease costs	$	19,013	$	13,285	$	36,416	$	25,075

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

Weighted-average details

	September 30,
	2023		2022
Weighted-average remaining lease term (years)	12		9
Weighted-average discount rate	5.1	%	3.3	%

21

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

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

Supplemental cash flow information related to leases:

	Six Months Ended September 30,
	2023		2022
Operating cash flows:
Cash paid for amounts included in the measurement of Operating lease liabilities	$	17,562	$	18,292
Non-cash activity:
Operating lease right-of-use assets obtained in exchange of Operating lease liabilities	$	13,735	$	19,219
Change in Operating lease right-of-use assets due to remeasurement	32,655		161

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, 2023 or March 31, 2023.

There have been no material changes outside of the ordinary course of business to our known contractual obligations, which are included in Item 7 of our 2023 Annual Report.

22

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

	Three Months Ended September 30,				Six Months Ended September 30,
	2023		2022		2023		2022
Revenues by segment
Corporate Finance	$	281,684	$	315,016	$	508,735	$	578,967
Financial Restructuring	114,670		97,694		238,038		176,532
Financial and Valuation Advisory	70,635		76,827		136,045		152,682
Revenues	$	466,989	$	489,537	$	882,818	$	908,181
Segment profit (1)
Corporate Finance	$	90,517	$	93,794	$	152,139	$	185,359
Financial Restructuring	32,499		17,563		76,093		44,259
Financial and Valuation Advisory	19,593		26,169		34,492		45,203
Total segment profit	142,609		137,526		262,724		274,821
Corporate expenses (2)	52,332		48,155		99,100		107,880
Other (income)/expense, net	(3,296)		5,104		(6,301)		6,853
Income before provision for income taxes	$	93,573	$	84,267	$	169,925	$	160,088

(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, legal and compliance, marketing, and human capital.

	September 30, 2023		March 31, 2023
Assets by segment
Corporate Finance	$	1,006,417	$	1,015,760
Financial Restructuring	171,537		196,289
Financial and Valuation Advisory	175,106		165,395
Total segment assets	1,353,060		1,377,444
Corporate assets	1,428,493		1,591,370
Total assets	$	2,781,553	$	2,968,814

	Three Months Ended September 30,				Six Months Ended September 30,
	2023		2022		2023		2022
Income before provision for income taxes by geography
United States	$	61,280	$	63,771	$	113,682	$	114,023
International	32,293		20,496		56,243		46,065
Income before provision for income taxes	$	93,573	$	84,267	$	169,925	$	160,088

23

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,
	2023		2022		2023		2022
Revenues by geography
United States	$	328,958	$	377,608	$	656,694	$	681,057
International	138,031		111,929		226,124		227,124
Revenues	$	466,989	$	489,537	$	882,818	$	908,181

	September 30, 2023		March 31, 2023
Assets by geography
United States	$	1,795,032	$	1,861,296
International	986,521		1,107,518
Total assets	$	2,781,553	$	2,968,814

Note 19 — Subsequent Events

On October 24, 2023, the Company's board of directors declared a quarterly cash dividend of $0.55 per share of Class A and Class B common stock, payable on December 15, 2023, to shareholders of record on December 1, 2023.

24

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, 2023 (the "2023 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 through bankruptcy proceedings and 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.

25

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 typically 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, and in certain cases if certain financial metrics are not met. 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 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. 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 (Income)/Expense, Net

Other (income)/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 HLI Line of Credit (defined herein), (iii) equity income and/or gains or losses from funds and partnership interests where we have had 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, (iv) gains and/or losses associated with the reduction/increase of earnout liabilities, and (vi) other miscellaneous non-operating expenses.

Results of Consolidated Operations

The following is a discussion of our results of operations for the six months ended September 30, 2023 and 2022. 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.

26

	Three Months Ended September 30,						Six Months Ended September 30,
($ in thousands)	2023		2022		Change		2023		2022		Change
Revenues	$	466,989	$	489,537	(5)	%	$	882,818	$	908,181	(3)	%
Operating expenses:
Employee compensation and benefits	296,542		309,859		(4)	%	560,025		575,594		(3)	%
Non-compensation	80,170		90,307		(11)	%	159,169		165,646		(4)	%
Total operating expenses	376,712		400,166		(6)	%	719,194		741,240		(3)	%
Operating income	90,277		89,371		1	%	163,624		166,941		(2)	%
Other (income)/expense, net	(3,296)		5,104		(165)	%	(6,301)		6,853		(192)	%
Income before provision for income taxes	93,573		84,267		11	%	169,925		160,088		6	%
Provision for income taxes	26,542		23,537		13	%	41,504		28,576		45	%
Net income attributable to Houlihan Lokey, Inc.	$	67,031	$	60,730	10	%	$	128,421	$	131,512	(2)	%

Three Months Ended September 30, 2023 versus September 30, 2022

Revenues were $467.0 million for the three months ended September 30, 2023, compared with $489.5 million for the three months ended September 30, 2022, representing a decrease of (5)%. For the quarter, CF revenues decreased (11)%, FR revenues increased 17%, and FVA revenues decreased (8)% when compared with the three months ended September 30, 2022.

Operating expenses were $376.7 million for the three months ended September 30, 2023, compared with $400.2 million for the three months ended September 30, 2022, representing a decrease of (6)%. Employee compensation and benefits expense, as a component of operating expenses, was $296.5 million for the three months ended September 30, 2023, compared with $309.9 million for the three months ended September 30, 2022, representing a decrease of (4)%. 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 63.5% for the three months ended September 30, 2023, compared with 63.3% for the three months ended September 30, 2022. Non-compensation expense, as a component of operating expenses, was $80.2 million for the three months ended September 30, 2023, compared with $90.3 million for the three months ended September 30, 2022, representing a decrease of (11)%. The decrease in non-compensation expense was the result of a decrease in depreciation and amortization and other operating expenses.

Other (income)/expense, net decreased (165)% to $(3.3) million for the three months ended September 30, 2023, compared with $5.1 million for the three months ended September 30, 2022. This was primarily due to a gain recognized in association with earnout liability settlements made during the three months ended September 30, 2023, compared with losses recognized during the three months ended September 30, 2022 driven by an increase in the fair value of an earnout liability for one of our previous acquisitions and an unfavorable periodic warrant revaluation.

The provision for income taxes for the three months ended September 30, 2023 was $26.5 million, which reflected an effective tax rate of 28.4%. 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%.

Six Months Ended September 30, 2023 versus September 30, 2022

Revenues were $882.8 million for the six months ended September 30, 2023, compared with $908.2 million for the six months ended September 30, 2022, representing a decrease of (3)%. For the six months ended September 30, 2023, CF revenues decreased (12)%, FR revenues increased 35%, and FVA revenues decreased (11)% when compared with the six months ended September 30, 2022.

Operating expenses were $719.2 million for the six months ended September 30, 2023, compared with $741.2 million for the six months ended September 30, 2022, a decrease of (3)%. Employee compensation and benefits expense, as a component of operating expenses, was $560.0 million for the six months ended September 30, 2023, compared with $575.6 million for the six months ended September 30, 2022, a decrease of (3)%. The decrease in employee compensation and benefits expense was primarily a result of lower revenues when compared with the same period last year. The Compensation Ratio was 63.4% for the six months ended September 30, 2023, compared with 63.4% for the six months ended September 30, 2022. Non-compensation expense, as a component of operating expenses, was $159.2 million for the six months ended September 30, 2023, compared with $165.6 million for the six months ended September 30, 2022, a decrease of (4)%. The decrease in non-compensation expense was the result of a decrease in depreciation and amortization and other operating expenses.

27

Other (income)/expense, net decreased (192)% to $(6.3) million for the six months ended September 30, 2023, compared with $6.9 million for the six months ended September 30, 2022, primarily due to the aforementioned quarterly fluctuation, in addition to an increase in interest income and dividend income generated by our investment securities and gains recognized on various investment securities.

The provision for income taxes for the six months ended September 30, 2023 was $41.5 million, which reflected an effective tax rate of 24.4%. 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 increase in the Company's tax rate during the six months ended September 30, 2023 relative to the same period in 2022 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 that occurred during the six months ended September 30, 2022 and did not repeat during the six months ended September 30, 2023.

28

Business Segments

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

	Three Months Ended September 30,						Six Months Ended September 30,
($ in thousands)	2023		2022		Change		2023		2022		Change
Revenues by segment
Corporate Finance	$	281,684	$	315,016	(11)	%	$	508,735	$	578,967	(12)	%
Financial Restructuring	114,670		97,694		17	%	238,038		176,532		35	%
Financial and Valuation Advisory	70,635		76,827		(8)	%	136,045		152,682		(11)	%
Revenues	$	466,989	$	489,537	(5)	%	$	882,818	$	908,181	(3)	%
Segment profit (1)
Corporate Finance	$	90,517	$	93,794	(3)	%	$	152,139	$	185,359	(18)	%
Financial Restructuring	32,499		17,563		85	%	76,093		44,259		72	%
Financial and Valuation Advisory	19,593		26,169		(25)	%	34,492		45,203		(24)	%
Total segment profit	142,609		137,526		4	%	262,724		274,821		(4)	%
Corporate expenses (2)	52,332		48,155		9	%	99,100		107,880		(8)	%
Other (income)/expense, net	(3,296)		5,104		(165)	%	(6,301)		6,853		(192)	%
Income before provision for income taxes	$	93,573	$	84,267	11	%	$	169,925	$	160,088	6	%
Segment metrics
Number of Managing Directors
Corporate Finance	211		210		—	%	211		210		—	%
Financial Restructuring	60		56		7	%	60		56		7	%
Financial and Valuation Advisory	40		40		—	%	40		40		—	%
Number of closed transactions/Fee Events (3)
Corporate Finance	117		114		3	%	212		238		(11)	%
Financial Restructuring	31		24		29	%	61		40		53	%
Financial and Valuation Advisory	852		890		(4)	%	1,255		1,404		(11)	%

(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, legal and compliance, 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 $1,000. References to closed transactions should be understood to be the same as transactions that are “effectively closed” as described in Note 3 of our Consolidated Financial Statements.

Corporate Finance

Three Months Ended September 30, 2023 versus September 30, 2022

Revenues for CF were $281.7 million for the three months ended September 30, 2023, compared with $315.0 million for the three months ended September 30, 2022, representing a decrease of (11)%. Revenues decreased due to a decrease in the average transaction fee on closed transactions, which was driven by transaction mix, and did not represent a trend in the average transaction fee on closed transactions.

Segment profit for CF was $90.5 million for the three months ended September 30, 2023, compared with $93.8 million for the three months ended September 30, 2022, representing a decrease of (3)%. Profitability decreased  primarily as a result of a decrease in revenues when compared to the same quarter last year.

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Six Months Ended September 30, 2023 versus September 30, 2022

Revenues for CF were $508.7 million for the six months ended September 30, 2023, compared with $579.0 million for the six months ended September 30, 2022, representing a decrease of (12)%. Revenues decreased primarily due to a decrease in the number of closed transactions, which was driven by softness in the M&A markets.

Segment profit for CF was $152.1 million for the six months ended September 30, 2023, compared with $185.4 million for the six months ended September 30, 2022, representing a decrease of (18)%. Profitability decreased primarily as a result of a decrease in revenues and higher non-compensation expenses when compared to the same quarter last year.

Financial Restructuring

Three Months Ended September 30, 2023 versus September 30, 2022

Revenues for FR were $114.7 million for the three months ended September 30, 2023, compared with $97.7 million for the three months ended September 30, 2022, representing an increase of 17%. Revenues increased primarily due to an increase in the number of closed transactions during the quarter, which was driven by favorable market conditions for restructuring transactions.

Segment profit for FR was $32.5 million for the three months ended September 30, 2023, compared with $17.6 million for the three months ended September 30, 2022, an increase of 85%. Profitability increased primarily as a result of higher revenues and lower compensation expenses as a percentage of revenues when compared to the same quarter last year.

Six Months Ended September 30, 2023 versus September 30, 2022

Revenues for FR were $238.0 million for the six months ended September 30, 2023, compared with $176.5 million for the six months ended September 30, 2022, representing an increase of 35%. The increase in revenues was a result of an increase in the number of closed transactions, which was driven by favorable market conditions for restructuring transactions. This increase was partially offset by a reduction in the average transaction fee when compared to the same period last year, which was driven by transaction mix, and did not represent a trend in the average transaction fee on closed transactions.

Segment profit for FR was $76.1 million for the six months ended September 30, 2023, compared with $44.3 million for the six months ended September 30, 2022, an increase of 72%. Profitability increased primarily as a result of higher revenues and lower compensation expenses as a percentage of revenues when compared to the same period last year.

Financial and Valuation Advisory

Three Months Ended September 30, 2023 versus September 30, 2022

Revenues for FVA were $70.6 million for the three months ended September 30, 2023, compared with $76.8 million for the three months ended September 30, 2022, representing a decrease of (8)%. Revenues decreased primarily due to a decrease in the number of Fee Events. The decrease in the number of Fee Events was driven by softness in the M&A markets, which affected one or more of the service lines within our FVA business.

Segment profit for FVA was $19.6 million for the three months ended September 30, 2023, compared with $26.2 million for the three months ended September 30, 2022, a decrease of (25)%. Profitability decreased primarily as a result of lower revenues and higher non-compensation expenses when compared to the same quarter last year.

Six Months Ended September 30, 2023 versus September 30, 2022

Revenues for FVA were $136.0 million for the six months ended September 30, 2023, compared with $152.7 million for the three months ended September 30, 2022, representing a decrease of (11)%. The decrease in revenues was due to a decrease in the number of Fee Events. The decrease in the number of Fee Events was driven by softness in the M&A markets, which affected one or more of the service lines within our FVA business.

Segment profit for FVA was $34.5 million for the six months ended September 30, 2023, compared with $45.2 million for the three months ended September 30, 2022, a decrease of (24)%. Profitability decreased primarily as a result of lower revenues and an increase in non-compensation expenses when compared to the same period last year.

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Corporate Expenses

Three Months Ended September 30, 2023 versus September 30, 2022

Corporate expenses were $52.3 million for the three months ended September 30, 2023, compared with $48.2 million for the three months ended September 30, 2022. This 9% increase was driven by increased compensation expenses when compared to the same quarter last year.

Six Months Ended September 30, 2023 versus September 30, 2022

Corporate expenses were $99.1 million for the six months ended September 30, 2023, compared with $107.9 million for the three months ended September 30, 2022. This (8)% decrease was driven primarily by decreased non-compensation expenses when compared to the same period last year, due to a decrease in depreciation and amortization expense.

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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, 2023 and March 31, 2023, we had $392.1 million and $475.0 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 and government debt securities. Please refer to Note 6 for further detail.

As of September 30, 2023 and March 31, 2023, our restricted cash, cash and cash equivalents, and investment securities were as follows:

(In thousands)	September 30, 2023		March 31, 2023
Cash and cash equivalents	$	493,929	$	714,439
Investment securities	31,214		37,309
Total unrestricted cash and cash equivalents, including investment securities	525,143		751,748
Restricted cash (1)	373		373
Total cash, cash equivalents, and restricted cash, including investment securities	$	525,516	$	752,121

(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, 2023, accounts receivable, net of credit losses was $152.2 million. As of September 30, 2023, unbilled work in progress, net of credit losses was $133.8 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 was amended by the First Amendment to Credit Agreement dated as of August 2, 2022 (the "HLI Line of Credit"), which allows for borrowings of up to $100.0 million (and, subject to certain conditions, provides the Company with an uncommitted expansion option, which, if exercised in full, would provide for a total credit facility of $200.0 million), and matures on August 23, 2025. As of September 30, 2023 and March 31, 2023, no principal was outstanding under the HLI Line of Credit. Borrowings under the HLI Line of Credit bear interest at a floating rate, which can be either, at the Company’s option, (i) Term Secured Overnight Financing Rate (“SOFR”) plus a 0.10% SOFR adjustment plus a 1.00% margin or (ii) base rate, which is the highest of (a) the Federal Funds Rate plus one-half of one percent (0.50%), (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its “prime rate,” and (c) Term SOFR plus a 0.10% SOFR adjustment. Commitment fees apply to unused amounts, and the HLI Line of Credit contains debt covenants which require that the Company maintain certain financial ratios. 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 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, 2023, 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, 2023 and March 31, 2023.

32

The Company entered into a settlement agreement (the “Settlement) with the Securities and Exchange Commission (“SEC”) to resolve an investigation of the Company’s compliance with records preservation requirements related to business communications sent over off-channel electronic messaging platforms, as described in our 2023 Annual Report. The terms of the Settlement are consistent with previously and subsequently announced settlements between firms similar to the Company and the SEC relating to these issues. In the Settlement, the Company agreed to a cease and desist order, admitted the SEC’s factual findings, agreed to pay a civil monetary penalty of $15.0 million, and to comply with certain undertakings, including retaining an independent compliance consultant, related to retention of electronic communications as enumerated in the Settlement. As described in our 2023 Annual Report, the Company recognized a $15 million accrual in other (income)/expense, net for the fourth fiscal quarter and fiscal year ended March 31, 2023, relating to the Settlement, which was paid in August, 2023.

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)	2023		2022		Change
Operating activities:
Net income	$	128,421	$	131,512	(2)	%
Non-cash charges	113,209		132,202		(14)	%
Other operating activities	(239,378)		(456,631)		(48)	%
Net cash provided by/(used) in operating activities	2,252		(192,917)		(101)	%
Net cash provided by/(used in) investing activities	(32,974)		53,465		(162)	%
Net cash (used in) financing activities	(178,833)		(168,937)		6	%
Effects of exchange rate changes on cash, cash equivalents, and restricted cash	(10,955)		(21,502)		(49)	%
Net decrease in cash, cash equivalents, and restricted cash	(220,510)		(329,891)		(33)	%
Cash, cash equivalents, and restricted cash — beginning of period	714,812		834,070		(14)	%
Cash, cash equivalents, and restricted cash — end of period	$	494,302	$	504,179	(2)	%

Six Months Ended September 30, 2023

Operating activities resulted in a net inflow of $2.3 million, primarily attributable to net income plus equity and liability classified share awards issued, almost entirely offset by cash bonus payments paid in May, 2023. Investing activities resulted in a net outflow of $(33.0) million, primarily attributable to purchases of property and equipment, net. Financing activities resulted in a net outflow of $(178.8) million, primarily attributable to dividends paid and payments made to settle employee tax obligations on share-based awards.

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.

Contractual Obligations

There have been no material changes outside of the ordinary course of business to our known contractual obligations, which are included in Item 7 of our 2023 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.

33

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 2023 Annual Report.

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 and some of our investments. 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 net impact of the fluctuation of foreign currencies in other comprehensive income within the Consolidated Statements of Comprehensive Income was $(19,883) and $(28,554) during the three months ended September 30, 2023 and 2022, respectively, and $(16,909) and $(50,863) during the six months ended September 30, 2023 and 2022, 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.

34

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, 2023 we had three foreign currency forward contracts outstanding between the U.S. dollar and the pound sterling with an aggregate notional value of $35.2 million and two foreign currency forward contracts outstanding between the euro and the pound sterling with a notional value of €9.4 million. 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. The change in fair value of these contracts represented a loss included in Other operating expenses of $(1,217) and $(232) during the three months ended September 30, 2023 and September 30, 2022, 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.

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, 2023.

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, 2023 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 2023 Annual Report.

Item 1A.    Risk Factors

There have been no material changes to the risk factors disclosed in our 2023 Annual Report.

35

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

On August 14, 2023, the Company issued 54,655 shares of Class B common stock to certain former employees of a business acquired in 2020. The Company relied upon the exemption from registration provided by Section 4(a)(2) under the Securities Act of 1933, as amended, for transactions not involving a public offering and received no proceeds in connection with this issuance.

Purchases of Equity Securities

The following table summarizes all of the repurchases of Houlihan Lokey, Inc. equity securities during the quarter ended September 30, 2023:

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, 2023 - July 31, 2023 (2)	3,026	$	104.38	—	$	482,657,397
August 1, 2023 - August 31, 2023 (3)	123,865	101.76		123,500	470,088,910
September 1, 2023 - September 30, 2023 (4)	115,612	107.06		115,600	457,712,992
Total	242,503	$	104.32	239,100	$	457,712,992

(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 3,026 unvested shares of Class B common stock at an average price per share of $104.38, 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 365 unvested shares of Class B common stock at an average price per share of $99.54, which were withheld from employees to satisfy tax withholding obligations resulting from the vesting of certain restricted stock awards.

(4)Total Number of Shares Purchased consists of 12 unvested shares of Class B common stock at an average price per share of $107.82, which were withheld from employees to satisfy tax withholding obligations resulting from the vesting of certain restricted stock awards.

Item 3.    Defaults upon Senior Securities

None.

Item 4.    Mine Safety Disclosures

Not applicable.

Item 5.    Other Information

(a) None.

(b) None.

(c) On August 22, 2023, Christopher Crain, Secretary and General Counsel, adopted a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 4,000 shares of the Company's common stock until November 30, 2024.

36

Item 6.    Exhibits

		Incorporated by Reference
Exhibit Number	Exhibit Description	Form	File No.	Exhibit	Filing Date	Filed / Furnished Herewith
3.1	Second Amended and Restated Certificate of Incorporation of Houlihan Lokey, Inc., dated September 21, 2023.	8-K	001-37537	3.1	9/22/23
3.2	Amended and Restated Bylaws of the Company, dated July 26, 2023.	8-K	001-37537	3.1	8/1/23
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.

37

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 8, 2023	/s/ SCOTT L. BEISER
		Scott L. Beiser
		Chief Executive Officer
		(Principal Executive Officer)
Date:	November 8, 2023	/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, 2023 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 8, 2023	/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, 2023 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 8, 2023	/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, 2023 (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 8, 2023	/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, 2023 (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 8, 2023	/s/ J. LINDSEY ALLEY
		J. Lindsey Alley
		Chief Financial Officer
		(Principal Financial and Accounting Officer)

XML

Cover Page - shares	6 Months Ended
	Sep. 30, 2023	Nov. 02, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
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	2024
Document Fiscal Period Focus	Q2
Class A Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		51,614,392
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		17,370,751

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2023	Mar. 31, 2023
Assets
Cash and cash equivalents	$ 493,929	$ 714,439
Restricted cash	373	373
Investment securities	31,214	37,309
Accounts receivable, net of allowance for credit losses of $8,969 and $8,773, respectively	152,243	182,029
Unbilled work in progress, net of allowance for credit losses of $6,461 and $5,622, respectively	133,787	115,045
Income taxes receivable	22,549	17,693
Deferred income taxes	106,343	104,941
Property and equipment, net	119,394	88,345
Operating lease right-of-use assets	363,719	333,877
Goodwill	1,086,438	1,087,784
Other intangible assets, net	196,652	203,370
Other assets	74,912	83,609
Total assets	2,781,553	2,968,814
Liabilities:
Accrued salaries and bonuses	552,673	765,877
Accounts payable and accrued expenses	95,125	113,421
Deferred income	37,370	40,695
Deferred income taxes	349	544
Operating lease liabilities	419,421	374,869
Other liabilities	30,539	60,111
Total liabilities	1,135,477	1,355,517
Stockholders' equity:
Additional paid-in capital	638,404	642,970
Retained earnings	1,087,326	1,033,072
Accumulated other comprehensive loss	(79,723)	(62,814)
Total stockholders' equity	1,646,076	1,613,297
Total liabilities and stockholders' equity	2,781,553	2,968,814
Common Class A
Stockholders' equity:
Common stock	52	51
Common Class B
Stockholders' equity:
Common stock	$ 17	$ 18

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CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Thousands	Sep. 30, 2023	Mar. 31, 2023
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 8,969	$ 8,773
Allowance for doubtful accounts, unbilled work in process	$ 6,461	$ 5,622
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)	51,565,992	50,638,924
Common stock, shares outstanding (in shares)	51,565,992	50,638,924
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)	17,427,625	18,048,345
Common stock, shares outstanding (in shares)	17,427,625	18,048,345

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
Revenues	$ 466,989	$ 489,537	$ 882,818	$ 908,181
Operating expenses:
Employee compensation and benefits	296,542	309,859	560,025	575,594
Travel, meals, and entertainment	14,151	12,370	30,169	23,420
Rent	19,013	13,285	36,416	25,075
Depreciation and amortization	7,086	19,475	13,618	38,618
Information technology and communications	14,328	13,183	27,876	24,173
Professional fees	10,859	9,598	20,416	16,067
Other operating expenses	14,733	22,396	30,674	38,293
Total operating expenses	376,712	400,166	719,194	741,240
Operating income	90,277	89,371	163,624	166,941
Other (income)/expense, net	(3,296)	5,104	(6,301)	6,853
Income before provision for income taxes	93,573	84,267	169,925	160,088
Provision for income taxes	26,542	23,537	41,504	28,576
Net income	67,031	60,730	128,421	131,512
Other comprehensive income, net of tax:
Foreign currency translation adjustments	(19,883)	(28,554)	(16,909)	(50,863)
Comprehensive income attributable to Houlihan Lokey, Inc.	$ 47,148	$ 32,176	$ 111,512	$ 80,649
Weighted average shares of common stock outstanding:
Basic (in shares)	64,551,353	63,422,701	64,180,642	63,350,545
Fully Diluted (in shares)	67,867,381	69,800,028	67,881,623	69,316,792
Earnings per share (Note 13)
Basic (in dollars per share)	$ 1.04	$ 0.96	$ 2.00	$ 2.08
Fully Diluted (in dollars per share)	$ 0.99	$ 0.87	$ 1.89	$ 1.90

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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, 2022					49,853,564	17,649,555
Beginning balance at Mar. 31, 2022				$ 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
Ending balance at Sep. 30, 2022				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
Ending balance at Sep. 30, 2022				1,446,668	$ 50	$ 19	559,605	981,204	(94,210)
Beginning balance (in shares) at Mar. 31, 2023		50,638,924	18,048,345		50,638,924	18,048,345
Beginning balance at Mar. 31, 2023	1,613,297			1,613,297	$ 51	$ 18	642,970	1,033,072	(62,814)
Increase (Decrease) in Stockholders' Equity
Shares issued (in shares)						1,612,192
Shares issued				10,812		$ 1	10,811
Stock compensation vesting				79,010			79,010
Dividends				(74,167)				(74,167)
Conversion of Class B to Class A shares (in shares)					1,159,559	(1,159,559)
Conversion of Class B to Class A shares				0	$ 1	$ (1)
Shares issued to non-employee directors (in shares)					6,609
Shares issued to non-employee directors				587			587
Other shares repurchased/forfeited (in shares)					(239,100)	(1,073,353)
Other shares repurchased/forfeited				(94,975)		$ (1)	(94,974)
Net income	128,421			128,421				128,421
Change in unrealized translation				(16,909)					(16,909)
Total comprehensive income				111,512				128,421	(16,909)
Ending balance (in shares) at Sep. 30, 2023		51,565,992	17,427,625		51,565,992	17,427,625
Ending balance at Sep. 30, 2023	1,646,076			1,646,076	$ 52	$ 17	638,404	1,087,326	(79,723)
Beginning balance (in shares) at Jun. 30, 2023					51,296,601	18,035,565
Beginning balance at Jun. 30, 2023				1,615,053	$ 51	$ 18	616,315	1,058,509	(59,840)
Increase (Decrease) in Stockholders' Equity
Shares issued (in shares)						55,907
Shares issued				5,635			5,635
Stock compensation vesting				41,662			41,662
Dividends				(38,214)				(38,214)
Conversion of Class B to Class A shares (in shares)					508,491	(508,491)
Conversion of Class B to Class A shares				0	$ 1	$ (1)
Other shares repurchased/forfeited (in shares)					(239,100)	(155,356)
Other shares repurchased/forfeited				(25,208)			(25,208)
Net income	67,031			67,031				67,031
Change in unrealized translation				(19,883)					(19,883)
Total comprehensive income				47,148				67,031	(19,883)
Ending balance (in shares) at Sep. 30, 2023		51,565,992	17,427,625		51,565,992	17,427,625
Ending balance at Sep. 30, 2023	$ 1,646,076			$ 1,646,076	$ 52	$ 17	$ 638,404	$ 1,087,326	$ (79,723)

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net income	$ 128,421	$ 131,512
Adjustments to reconcile net income to net cash used in operating activities:
Deferred income taxes	(2,633)	(14,088)
Provision for bad debts, net	4,058	6,103
Unrealized losses on investment securities	142	2,140
Non-cash lease expense	16,691	14,554
Depreciation and amortization	13,618	38,618
Contingent consideration valuation	(816)	2,869
Compensation expense – equity and liability classified share awards (Note 14)	82,149	82,006
Changes in operating assets and liabilities:
Accounts receivable	26,569	5,388
Unbilled work in progress	(19,582)	(53,837)
Other assets	8,697	(13,025)
Accrued salaries and bonuses	(211,229)	(264,724)
Accounts payable and accrued expenses and other	(36,234)	(79,174)
Deferred income	(3,325)	6,729
Income taxes payable	(4,274)	(57,988)
Net cash provided by/(used) in operating activities	2,252	(192,917)
Cash flows from investing activities:
Purchases of investment securities	(35)	(11,263)
Sales or maturities of investment securities	5,988	82,524
Purchase of property and equipment, net	(38,927)	(17,796)
Net cash provided by/(used in) investing activities	(32,974)	53,465
Cash flows from financing activities:
Dividends paid	(77,390)	(73,812)
Share repurchases	(24,952)	(48,905)
Payments to settle employee tax obligations on share-based awards	(70,025)	(42,191)
Earnouts paid	(7,053)	(2,078)
Loans payable to former shareholders redeemed	0	(33)
Repayments of loans to non-affiliates	0	(2,488)
Other financing activities	587	570
Net cash used in financing activities	(178,833)	(168,937)
Effects of exchange rate changes on cash, cash equivalents, and restricted cash	(10,955)	(21,502)
Net decrease in cash, cash equivalents, and restricted cash	(220,510)	(329,891)
Cash, cash equivalents, and restricted cash – beginning of period	714,812	834,070
Cash, cash equivalents, and restricted cash – end of period	494,302	504,179
Supplemental disclosures of non-cash activities:
Shares issued via vesting of liability classified awards	5,114	5,955
Cash paid during the period:
Interest	200	1,861
Taxes, net of refunds	48,410	102,418
Regulatory fines and penalties	$ 15,000	$ 0

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BACKGROUND

6 Months Ended

Sep. 30, 2023

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 is 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.

•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 through more than thirty offices in the United States of America, South America, Europe, the Middle East, and the Asia-Pacific region. The Company earns professional fees by providing focused services across the following three business segments:

•Corporate Finance ("CF") provides general financial advisory services, 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 M&A 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 through bankruptcy proceedings and 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, 2023

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, 2023 are not necessarily indicative of the results of operations to be expected for the fiscal year ending March 31, 2024. 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, 2023 (the "2023 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 (income)/expense, net in the Consolidated Statements of Comprehensive Income.

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 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 engagement 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 or reports 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, 2023 we had three foreign currency forward contracts outstanding between the U.S. dollar and the pound sterling with an aggregate notional value of $35.2 million and two foreign currency forward contracts outstanding between the euro and the pound sterling with a notional value of €9.4 million. 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. The change in fair value of these contracts represented a loss included in Other operating expenses of $(1,217) and $(232) during the three months ended September 30, 2023 and September 30, 2022, 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, 2023 and March 31, 2023, 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, 2023		March 31, 2023
Cash and cash equivalents	$	493,929	$	714,439
Restricted cash (1)	373		373
Total cash, cash equivalents, and restricted cash	$	494,302	$	714,812

(1)Restricted cash as of September 30, 2023 and March 31, 2023 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 collectability 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 during the fourth quarter for impairment and more frequently if potential impairment indicators exist. Goodwill is reviewed for impairment in accordance with ASC Topic 350, Intangibles – Goodwill and Other, as amended by Accounting Standards Update ("ASU") No. 2017-04, Simplifying the Test for Goodwill Impairment, which permits management to perform a qualitative analysis to determine whether it is more likely than not that the fair value of a reporting unit is less than its corresponding carrying value. If management determines the reporting unit's fair value is more likely than not less than its carrying value, a quantitative analysis will be performed to compare the fair value of the reporting unit with its corresponding carrying value. If the conclusion of the quantitative analysis is that the fair value is in fact less than the carrying value, management will recognize a goodwill impairment charge for the amount by which the reporting unit’s carrying value exceeds its fair value. Impairment testing of goodwill requires a significant amount of judgment in assessing both qualitative factors and if necessary, quantitative factors used to estimate the fair value of the reporting unit. As of September 30, 2023, 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 quantitative 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, 2023, 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, 2023, 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, 2023

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, 2023		Increase/(Decrease)		September 30, 2023
Receivables (1)	$	175,023	$	(29,670)	$	145,353
Unbilled work in progress, net of allowance for credit losses	115,045		18,742		133,787
Contract Assets (1)	7,006		(116)		6,890
Contract Liabilities (2)	40,695		(3,325)		37,370

(1)Included within Accounts receivable, net of allowance for credit losses in the September 30, 2023 Consolidated Balance Sheets.

(2)Included within Deferred income in the September 30, 2023 Consolidated Balance Sheets.

During the three and six months ended September 30, 2023, $7.5 million and $20.7 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, 2023.

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RELATED PARTY TRANSACTIONS

6 Months Ended

Sep. 30, 2023

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

Related Party Transactions

The Company provides financial advisory services to certain related parties, and received fees for these services totaling approximately $2 and $1,537 for the three and six months ended September 30, 2023, respectively.

Other assets in the accompanying Consolidated Balance Sheets includes loans receivable from certain employees of $25,910 and $28,869 as of September 30, 2023 and March 31, 2023, respectively.

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FAIR VALUE MEASUREMENTS

6 Months Ended

Sep. 30, 2023

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, 2023
	Level I		Level II		Level III		Total
Corporate debt securities	$	—	$	20,505	$	—	$	20,505
U.S. treasury securities	—		10,186		—		10,186
Certificates of deposit	—		523		—		523
Total assets measured at fair value	$	—	$	31,214	$	—	$	31,214

	March 31, 2023
	Level I		Level II		Level III		Total
Corporate debt securities	$	—	$	23,617	$	—	$	23,617
U.S. treasury securities	—		12,990		—		12,990
Common stock	184		—		—		184
Certificates of deposit	—		518		—		518
Total assets measured at fair value	$	184	$	37,125	$	—	$	37,309

The Company had no transfers between fair value levels during the six months ended September 30, 2023.

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INVESTMENT SECURITIES

6 Months Ended

Sep. 30, 2023

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, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value (1)
Corporate debt securities	$	21,863	$	3	$	(1,361)	$	20,505
U.S. treasury securities	10,723		—		(537)		10,186
Certificates of deposit	523		—		—		523
Total securities with unrealized gains/(losses)	$	33,109	$	3	$	(1,898)	$	31,214

	March 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value (1)
Corporate debt securities	$	24,936	$	6	$	(1,325)	$	23,617
U.S. treasury securities	13,400		15		(425)		12,990
Common stock	768		—		(584)		184
Certificates of deposit	518		—		—		518
Total securities with unrealized gains/(losses)	$	39,622	$	21	$	(2,334)	$	37,309

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

	September 30, 2023				March 31, 2023
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due within one year	$	3,969	$	3,927	$	6,243	$	6,254
Due within years two through five	29,140		27,287		33,379		31,055
Total debt within the investment securities portfolio	$	33,109	$	31,214	$	39,622	$	37,309

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ALLOWANCE FOR CREDIT LOSSES

6 Months Ended

Sep. 30, 2023

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, 2023
Beginning balance	$	14,395
Provision for bad debt, net	4,058
Recovery/(write-off) of uncollectible accounts, net	(3,023)
Ending balance	$	15,430

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PROPERTY AND EQUIPMENT

6 Months Ended

Sep. 30, 2023

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

Property and Equipment

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

	September 30, 2023		March 31, 2023
Equipment	$	11,126	$	10,178
Furniture and fixtures	18,298		19,508
Leasehold improvements	133,265		107,156
Computers and software	13,745		12,086
Other	7,442		7,411
Total cost	183,876		156,339
Less: accumulated depreciation	(64,482)		(67,994)
Total net book value	$	119,394	$	88,345

Additions to property and equipment during the six months ended September 30, 2023 were primarily related to leasehold improvement costs incurred.

Depreciation expense of $3,727 and $3,849 was recognized for the three months ended September 30, 2023 and 2022, respectively

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GOODWILL AND OTHER INTANGIBLE ASSETS

6 Months Ended

Sep. 30, 2023

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, 2023		March 31, 2023
Goodwill	Indefinite	$	1,086,438	$	1,087,784
Tradename-Houlihan Lokey	Indefinite	192,210		192,210
Other intangible assets	Varies	93,781		93,917
Total cost		1,372,429		1,373,911
Less: accumulated amortization		(89,339)		(82,757)
Goodwill and other intangibles, net		$	1,283,090	$	1,291,154

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

	April 1, 2023		Change (1)		September 30, 2023
Corporate Finance	$	833,254	$	(1,346)	$	831,908
Financial Restructuring	162,815		—		162,815
Financial and Valuation Advisory	91,715		—		91,715
Goodwill	$	1,087,784	$	(1,346)	$	1,086,438

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

Amortization expense of approximately $3,360 and $15,625 was recognized for the three months ended September 30, 2023 and 2022, respectively, and $6,715 and $31,390 for the six months ended September 30, 2023 and 2022, 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 2024	$	2,444
2025	1,694
2026	—
2027	—
2028 and thereafter	—

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LOANS PAYABLE

6 Months Ended

Sep. 30, 2023

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, which was amended by the First Amendment to Credit Agreement dated as of August 2, 2022 (the "HLI Line of Credit"), which allows for borrowings of up to $100.0 million (and, subject to certain conditions, provides the Company with an uncommitted expansion option, which, if exercised in full, would provide for a total credit facility of $200.0 million). and matures on August 23, 2025 (or if such date is not a business day, the immediately preceding business day). Borrowings under the HLI Line of Credit bear interest at a floating rate, which can be either, at the Company's option, (i) Term Secured Overnight Financing Rate ("SOFR") plus a 0.10% SOFR adjustment plus a 1.00% margin or (ii) base rate, which is the highest of (a) the Federal Funds Rate plus one-half of one percent (0.50%), (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its “prime rate,” and (c) Term SOFR plus a 0.10% SOFR adjustment. Commitment fees apply to unused amounts, and the HLI Line of Credit contains debt covenants which require that the Company maintain certain financial ratios. As of September 30, 2023 and March 31, 2023, no principal was outstanding under the 2019 Line of Credit.

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 did not incur interest expense on this note during the three months ended September 30, 2023 and 2022, respectively, and incurred interest expense of $0 and $18 for the six months ended September 30, 2023 and 2022, 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 for the three months ended September 30, 2023 and 2022, and $41 for the six months ended September 30, 2023 and 2022.

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. As of September 30, 2023, the note was fully converted and exchanged for a combination of cash and Company stock. Contingent consideration was also issued in connection with the acquisition of MVP, the remaining liability of which was settled during the three months ended September 30, 2023. The carrying value of the MVP contingent consideration was $12.9 million as of March 31, 2023, which is included in Other liabilities in our Consolidated Balance Sheet.

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 $17.9 million and $18.1 million as of September 30, 2023 and March 31, 2023, 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, 2023

Equity [Abstract]

ACCUMULATED OTHER COMPREHENSIVE (LOSS)

Accumulated Other Comprehensive (Loss)

Accumulated other comprehensive (loss) is comprised of Foreign currency translation adjustments of $(19,883) and $(28,554) for the three months ended September 30, 2023 and 2022, respectively, and $(16,909) and $(50,863) for the six months ended September 30, 2023 and 2022, respectively.

Accumulated other comprehensive (loss) as of September 30, 2023 was comprised of the following:

Balance, April 1, 2023	$	(62,814)
Foreign currency translation adjustment	(16,909)
Balance, September 30, 2023	$	(79,723)

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INCOME TAXES	6 Months Ended
	Sep. 30, 2023
Income Tax Disclosure [Abstract]
INCOME TAXES	Income TaxesThe Company’s provision for income taxes was $26,542 and $23,537 for the three months ended September 30, 2023 and 2022, respectively, and $41,504 and $28,576 for the six months ended September 30, 2023 and 2022, respectively. These represent effective tax rates of 28.4% and 27.9% for the three months ended September 30, 2023 and 2022, respectively, and 24.4% and 17.9% for the six months ended September 30, 2023 and 2022, respectively.

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EARNINGS PER SHARE

6 Months Ended

Sep. 30, 2023

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,
	2023		2022		2023		2022
Numerator:
Net income attributable Houlihan Lokey, Inc.	$	67,031	$	60,730	$	128,421	$	131,512
Denominator:
Weighted average shares of common stock outstanding — basic	64,551,353		63,422,701		64,180,642		63,350,545
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	3,316,028		6,377,327		3,700,981		5,966,247
Weighted average shares of common stock outstanding — diluted	67,867,381		69,800,028		67,881,623		69,316,792
Basic earnings per share	$	1.04	$	0.96	$	2.00	$	2.08
Diluted earnings per share	$	0.99	$	0.87	$	1.89	$	1.90

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EMPLOYEE BENEFIT PLANS

6 Months Ended

Sep. 30, 2023

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 $3,083 and $1,867 to these plans during the three months ended September 30, 2023 and 2022, respectively, and $6,112 and $3,801 for the six months ended September 30, 2023 and 2022, respectively.

Share-Based Incentive Plans

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 2023 at $84.55 and (ii) six independent directors in the first quarter of fiscal 2024 at $87.60.

No excess tax benefit was recognized during the three months ended September 30, 2023 and 2022. An excess tax benefit of $7,299 and $8,102 was recognized during the six months ended September 30, 2023 and 2022, 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, 2023 and 2022 were related to shares vested in May 2023 and May 2022, 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, 2023 and 2022 was as follows:

Unvested Share Awards	Shares	Weighted Average Grant Date Fair Value
Balance, April 1, 2023	5,281,779	$	79.57
Granted	1,244,902	87.60
Vested	(1,636,778)	74.23
Forfeited/Repurchased	(306,521)	84.30
Balance, September 30, 2023	4,583,382	$	83.34
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

Activity in liability-classified share awards during the six months ended September 30, 2023 and 2022 was as follows:

Awards Settleable in Shares	Fair Value
Balance, April 1, 2023	$	11,971
Offer to grant	9,112
Share price determined-converted to cash payments	(3)
Share price determined-transferred to equity grants	(6,172)
Forfeited	—
Balance, September 30, 2023	$	14,908
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

Activity of our RSUs during the six months ended September 30, 2023 and 2022 was as follows:

Restricted Stock Units	RSUs	Weighted Average Grant Date Fair Value
RSUs as of April 1, 2023	1,050,646	$	95.46
Issued	94,286	87.60
Forfeitures	(19,070)	90.91
Vested	(266,883)	94.38
RSUs as of September 30, 2023	858,979	$	95.02
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

Compensation expenses for the Company associated with both equity-classified and liability-classified awards totaled $42,740 and $41,399 for the three months ended September 30, 2023 and 2022, respectively, and $82,149 and $82,006 for the six months ended September 30, 2023 and 2022, respectively.

As of September 30, 2023 and 2022, there was $463,603 and $519,704, 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 3.4 years and 2.8 years, as of September 30, 2023 and 2022, 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, 2023

Equity [Abstract]

STOCKHOLDERS' EQUITY

Stockholders' EquityThere are two classes of authorized Company 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, 2023 and 2022, no shares were issued to non-employee directors and 508,491 and 231,367 shares were converted from Class B to Class A, respectively. During the six months ended September 30, 2023 and 2022, 6,609 and 6,739 shares were issued to non-employee directors, respectively, and 1,159,559 and 497,859 shares were converted from Class B to Class A, respectively.

As of September 30, 2023, there were 51,501,057 Class A shares held by the public and 64,935 Class A shares held by non-employee directors. 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.

Class B Common Stock

As of September 30, 2023 and 2022, there were 17,427,625 and 18,874,122 of Class B shares held by the HL Voting Trust, respectively.

Dividends

Previously declared dividends related to unvested shares of $17,236 and $12,003 were unpaid as of September 30, 2023 and 2022, respectively.

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. As of September 30, 2023, shares with a value of $457.7 million remained available for purchase under the program.

During the three months ended September 30, 2023 and 2022, the Company repurchased 4,235 and 9,731 shares, respectively, of Class B common stock, to satisfy $259 and $70, respectively, of required withholding taxes in connection with the vesting of restricted awards. During the three months ended September 30, 2023, the Company repurchased 239,100 shares of its outstanding Class A common stock at a weighted average price of $104.36 per share, excluding commissions, for an aggregate purchase price of $24,952. 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 six months ended September 30, 2023 and 2022, the Company repurchased 766,832 and 506,462 shares, respectively, of Class B common stock, to satisfy $70,025 and 42,191 of required withholding taxes in connection with the vesting of restricted awards, respectively. During the six months ended September 30, 2023, the Company repurchased 239,100 shares of its outstanding Class A common stock at a weighted average price of $104.36 per share, excluding commissions, for an aggregate purchase price of $24,952. 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.

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LEASES

6 Months Ended

Sep. 30, 2023

Leases [Abstract]

LEASES

Leases

Lessee Arrangements

Operating Leases

We lease real estate and equipment used in operations from third parties. As of September 30, 2023, the remaining term of our operating leases ranged from 1 to 16 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, 2023.

Maturity of Operating Leases

	Operating Leases
Remaining 2024	$	12,980
2025	45,382
2026	51,080
2027	48,870
2028	48,165
Thereafter	370,454
Total	576,931
Less: present value discount	(157,510)
Operating lease liabilities	$	419,421

As of September 30, 2023, the Company has entered into operating leases for additional office space that have not yet commenced for approximately $6.5 million. These operating leases will commence during fiscal year 2024 with a lease term of 5 years to 13 years.

Lease costs

	Three Months Ended September 30,				Six Months Ended September 30,
	2023		2022		2023		2022
Operating lease expense	$	13,385	$	8,571	$	25,808	$	15,807
Variable lease expense (1)	5,476		4,725		10,713		9,244
Short-term lease expense	62		52		108		87
Less: Sublease income	90		(63)		(213)		(63)
Total lease costs	$	19,013	$	13,285	$	36,416	$	25,075

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

Weighted-average details

	September 30,
	2023		2022
Weighted-average remaining lease term (years)	12		9
Weighted-average discount rate	5.1	%	3.3	%

Supplemental cash flow information related to leases:

	Six Months Ended September 30,
	2023		2022
Operating cash flows:
Cash paid for amounts included in the measurement of Operating lease liabilities	$	17,562	$	18,292
Non-cash activity:
Operating lease right-of-use assets obtained in exchange of Operating lease liabilities	$	13,735	$	19,219
Change in Operating lease right-of-use assets due to remeasurement	32,655		161

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COMMITMENTS AND CONTINGENCIES

6 Months Ended

Sep. 30, 2023

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, 2023 or March 31, 2023.

There have been no material changes outside of the ordinary course of business to our known contractual obligations, which are included in Item 7 of our 2023 Annual Report.

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SEGMENT AND GEOGRAPHICAL INFORMATION

6 Months Ended

Sep. 30, 2023

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

	Three Months Ended September 30,				Six Months Ended September 30,
	2023		2022		2023		2022
Revenues by segment
Corporate Finance	$	281,684	$	315,016	$	508,735	$	578,967
Financial Restructuring	114,670		97,694		238,038		176,532
Financial and Valuation Advisory	70,635		76,827		136,045		152,682
Revenues	$	466,989	$	489,537	$	882,818	$	908,181
Segment profit (1)
Corporate Finance	$	90,517	$	93,794	$	152,139	$	185,359
Financial Restructuring	32,499		17,563		76,093		44,259
Financial and Valuation Advisory	19,593		26,169		34,492		45,203
Total segment profit	142,609		137,526		262,724		274,821
Corporate expenses (2)	52,332		48,155		99,100		107,880
Other (income)/expense, net	(3,296)		5,104		(6,301)		6,853
Income before provision for income taxes	$	93,573	$	84,267	$	169,925	$	160,088

(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, legal and compliance, marketing, and human capital.

	September 30, 2023		March 31, 2023
Assets by segment
Corporate Finance	$	1,006,417	$	1,015,760
Financial Restructuring	171,537		196,289
Financial and Valuation Advisory	175,106		165,395
Total segment assets	1,353,060		1,377,444
Corporate assets	1,428,493		1,591,370
Total assets	$	2,781,553	$	2,968,814

	Three Months Ended September 30,				Six Months Ended September 30,
	2023		2022		2023		2022
Income before provision for income taxes by geography
United States	$	61,280	$	63,771	$	113,682	$	114,023
International	32,293		20,496		56,243		46,065
Income before provision for income taxes	$	93,573	$	84,267	$	169,925	$	160,088

	Three Months Ended September 30,				Six Months Ended September 30,
	2023		2022		2023		2022
Revenues by geography
United States	$	328,958	$	377,608	$	656,694	$	681,057
International	138,031		111,929		226,124		227,124
Revenues	$	466,989	$	489,537	$	882,818	$	908,181

	September 30, 2023		March 31, 2023
Assets by geography
United States	$	1,795,032	$	1,861,296
International	986,521		1,107,518
Total assets	$	2,781,553	$	2,968,814

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SUBSEQUENT EVENTS	6 Months Ended
	Sep. 30, 2023
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	Subsequent EventsOn October 24, 2023, the Company's board of directors declared a quarterly cash dividend of $0.55 per share of Class A and Class B common stock, payable on December 15, 2023, to shareholders of record on December 1, 2023

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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net income	$ 67,031	$ 60,730	$ 128,421	$ 131,512

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Insider Trading Arrangements	3 Months Ended	6 Months Ended
	Sep. 30, 2023 shares	Sep. 30, 2023 shares
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Christopher Crain [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On August 22, 2023, Christopher Crain, Secretary and General Counsel, adopted a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 4,000 shares of the Company's common stock until November 30, 2024.
Name	Christopher Crain
Rule 10b5-1 Arrangement Adopted	true
Non-Rule 10b5-1 Arrangement Adopted	false
Adoption Date	August 22, 2023
Arrangement Duration	466 days
Aggregate Available	4,000	4,000

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Sep. 30, 2023

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, 2023 are not necessarily indicative of the results of operations to be expected for the fiscal year ending March 31, 2024. 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, 2023 (the "2023 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 (income)/expense, net in the Consolidated Statements of Comprehensive Income.

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.

Revenues

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 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 engagement 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 or reports 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, 2023 we had three foreign currency forward contracts outstanding between the U.S. dollar and the pound sterling with an aggregate notional value of $35.2 million and two foreign currency forward contracts outstanding between the euro and the pound sterling with a notional value of €9.4 million. 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. The change in fair value of these contracts represented a loss included in Other operating expenses of $(1,217) and $(232) during the three months ended September 30, 2023 and September 30, 2022, 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, 2023 and March 31, 2023, 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, 2023		March 31, 2023
Cash and cash equivalents	$	493,929	$	714,439
Restricted cash (1)	373		373
Total cash, cash equivalents, and restricted cash	$	494,302	$	714,812

(1)Restricted cash as of September 30, 2023 and March 31, 2023 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, 2023

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, 2023		March 31, 2023
Cash and cash equivalents	$	493,929	$	714,439
Restricted cash (1)	373		373
Total cash, cash equivalents, and restricted cash	$	494,302	$	714,812

(1)Restricted cash as of September 30, 2023 and March 31, 2023 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, 2023		March 31, 2023
Cash and cash equivalents	$	493,929	$	714,439
Restricted cash (1)	373		373
Total cash, cash equivalents, and restricted cash	$	494,302	$	714,812

(1)Restricted cash as of September 30, 2023 and March 31, 2023 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, 2023

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, 2023		Increase/(Decrease)		September 30, 2023
Receivables (1)	$	175,023	$	(29,670)	$	145,353
Unbilled work in progress, net of allowance for credit losses	115,045		18,742		133,787
Contract Assets (1)	7,006		(116)		6,890
Contract Liabilities (2)	40,695		(3,325)		37,370

(1)Included within Accounts receivable, net of allowance for credit losses in the September 30, 2023 Consolidated Balance Sheets.

(2)Included within Deferred income in the September 30, 2023 Consolidated Balance Sheets.

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FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Sep. 30, 2023

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, 2023
	Level I		Level II		Level III		Total
Corporate debt securities	$	—	$	20,505	$	—	$	20,505
U.S. treasury securities	—		10,186		—		10,186
Certificates of deposit	—		523		—		523
Total assets measured at fair value	$	—	$	31,214	$	—	$	31,214

	March 31, 2023
	Level I		Level II		Level III		Total
Corporate debt securities	$	—	$	23,617	$	—	$	23,617
U.S. treasury securities	—		12,990		—		12,990
Common stock	184		—		—		184
Certificates of deposit	—		518		—		518
Total assets measured at fair value	$	184	$	37,125	$	—	$	37,309

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INVESTMENT SECURITIES (Tables)

6 Months Ended

Sep. 30, 2023

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, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value (1)
Corporate debt securities	$	21,863	$	3	$	(1,361)	$	20,505
U.S. treasury securities	10,723		—		(537)		10,186
Certificates of deposit	523		—		—		523
Total securities with unrealized gains/(losses)	$	33,109	$	3	$	(1,898)	$	31,214

	March 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value (1)
Corporate debt securities	$	24,936	$	6	$	(1,325)	$	23,617
U.S. treasury securities	13,400		15		(425)		12,990
Common stock	768		—		(584)		184
Certificates of deposit	518		—		—		518
Total securities with unrealized gains/(losses)	$	39,622	$	21	$	(2,334)	$	37,309

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, 2023				March 31, 2023
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due within one year	$	3,969	$	3,927	$	6,243	$	6,254
Due within years two through five	29,140		27,287		33,379		31,055
Total debt within the investment securities portfolio	$	33,109	$	31,214	$	39,622	$	37,309

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ALLOWANCE FOR CREDIT LOSSES (Tables)

6 Months Ended

Sep. 30, 2023

Receivables [Abstract]

Allowance for Uncollectible Accounts Receivable

	September 30, 2023
Beginning balance	$	14,395
Provision for bad debt, net	4,058
Recovery/(write-off) of uncollectible accounts, net	(3,023)
Ending balance	$	15,430

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PROPERTY AND EQUIPMENT (Tables)

6 Months Ended

Sep. 30, 2023

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

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

	September 30, 2023		March 31, 2023
Equipment	$	11,126	$	10,178
Furniture and fixtures	18,298		19,508
Leasehold improvements	133,265		107,156
Computers and software	13,745		12,086
Other	7,442		7,411
Total cost	183,876		156,339
Less: accumulated depreciation	(64,482)		(67,994)
Total net book value	$	119,394	$	88,345

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GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

6 Months Ended

Sep. 30, 2023

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, 2023		March 31, 2023
Goodwill	Indefinite	$	1,086,438	$	1,087,784
Tradename-Houlihan Lokey	Indefinite	192,210		192,210
Other intangible assets	Varies	93,781		93,917
Total cost		1,372,429		1,373,911
Less: accumulated amortization		(89,339)		(82,757)
Goodwill and other intangibles, net		$	1,283,090	$	1,291,154

Schedule of Goodwill

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

	April 1, 2023		Change (1)		September 30, 2023
Corporate Finance	$	833,254	$	(1,346)	$	831,908
Financial Restructuring	162,815		—		162,815
Financial and Valuation Advisory	91,715		—		91,715
Goodwill	$	1,087,784	$	(1,346)	$	1,086,438

(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 2024	$	2,444
2025	1,694
2026	—
2027	—
2028 and thereafter	—

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ACCUMULATED OTHER COMPREHENSIVE (LOSS) (Tables)

6 Months Ended

Sep. 30, 2023

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Loss

Accumulated other comprehensive (loss) as of September 30, 2023 was comprised of the following:

Balance, April 1, 2023	$	(62,814)
Foreign currency translation adjustment	(16,909)
Balance, September 30, 2023	$	(79,723)

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EARNINGS PER SHARE (Tables)

6 Months Ended

Sep. 30, 2023

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,
	2023		2022		2023		2022
Numerator:
Net income attributable Houlihan Lokey, Inc.	$	67,031	$	60,730	$	128,421	$	131,512
Denominator:
Weighted average shares of common stock outstanding — basic	64,551,353		63,422,701		64,180,642		63,350,545
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	3,316,028		6,377,327		3,700,981		5,966,247
Weighted average shares of common stock outstanding — diluted	67,867,381		69,800,028		67,881,623		69,316,792
Basic earnings per share	$	1.04	$	0.96	$	2.00	$	2.08
Diluted earnings per share	$	0.99	$	0.87	$	1.89	$	1.90

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EMPLOYEE BENEFIT PLANS (Tables)

6 Months Ended

Sep. 30, 2023

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, 2023 and 2022 was as follows:

Unvested Share Awards	Shares	Weighted Average Grant Date Fair Value
Balance, April 1, 2023	5,281,779	$	79.57
Granted	1,244,902	87.60
Vested	(1,636,778)	74.23
Forfeited/Repurchased	(306,521)	84.30
Balance, September 30, 2023	4,583,382	$	83.34
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

Activity in Liability Classified Share Awards

Activity in liability-classified share awards during the six months ended September 30, 2023 and 2022 was as follows:

Awards Settleable in Shares	Fair Value
Balance, April 1, 2023	$	11,971
Offer to grant	9,112
Share price determined-converted to cash payments	(3)
Share price determined-transferred to equity grants	(6,172)
Forfeited	—
Balance, September 30, 2023	$	14,908
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

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LEASES (Tables)

6 Months Ended

Sep. 30, 2023

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, 2023.

Maturity of Operating Leases

	Operating Leases
Remaining 2024	$	12,980
2025	45,382
2026	51,080
2027	48,870
2028	48,165
Thereafter	370,454
Total	576,931
Less: present value discount	(157,510)
Operating lease liabilities	$	419,421

Lease, Cost

Lease costs

	Three Months Ended September 30,				Six Months Ended September 30,
	2023		2022		2023		2022
Operating lease expense	$	13,385	$	8,571	$	25,808	$	15,807
Variable lease expense (1)	5,476		4,725		10,713		9,244
Short-term lease expense	62		52		108		87
Less: Sublease income	90		(63)		(213)		(63)
Total lease costs	$	19,013	$	13,285	$	36,416	$	25,075

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

Weighted-average details

	September 30,
	2023		2022
Weighted-average remaining lease term (years)	12		9
Weighted-average discount rate	5.1	%	3.3	%

Supplemental cash flow information related to leases:

	Six Months Ended September 30,
	2023		2022
Operating cash flows:
Cash paid for amounts included in the measurement of Operating lease liabilities	$	17,562	$	18,292
Non-cash activity:
Operating lease right-of-use assets obtained in exchange of Operating lease liabilities	$	13,735	$	19,219
Change in Operating lease right-of-use assets due to remeasurement	32,655		161

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SEGMENT AND GEOGRAPHICAL INFORMATION (Tables)

6 Months Ended

Sep. 30, 2023

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,
	2023		2022		2023		2022
Revenues by segment
Corporate Finance	$	281,684	$	315,016	$	508,735	$	578,967
Financial Restructuring	114,670		97,694		238,038		176,532
Financial and Valuation Advisory	70,635		76,827		136,045		152,682
Revenues	$	466,989	$	489,537	$	882,818	$	908,181
Segment profit (1)
Corporate Finance	$	90,517	$	93,794	$	152,139	$	185,359
Financial Restructuring	32,499		17,563		76,093		44,259
Financial and Valuation Advisory	19,593		26,169		34,492		45,203
Total segment profit	142,609		137,526		262,724		274,821
Corporate expenses (2)	52,332		48,155		99,100		107,880
Other (income)/expense, net	(3,296)		5,104		(6,301)		6,853
Income before provision for income taxes	$	93,573	$	84,267	$	169,925	$	160,088

(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, legal and compliance, marketing, and human capital.

	September 30, 2023		March 31, 2023
Assets by segment
Corporate Finance	$	1,006,417	$	1,015,760
Financial Restructuring	171,537		196,289
Financial and Valuation Advisory	175,106		165,395
Total segment assets	1,353,060		1,377,444
Corporate assets	1,428,493		1,591,370
Total assets	$	2,781,553	$	2,968,814

Revenue by Geographic Areas

	Three Months Ended September 30,				Six Months Ended September 30,
	2023		2022		2023		2022
Income before provision for income taxes by geography
United States	$	61,280	$	63,771	$	113,682	$	114,023
International	32,293		20,496		56,243		46,065
Income before provision for income taxes	$	93,573	$	84,267	$	169,925	$	160,088

	Three Months Ended September 30,				Six Months Ended September 30,
	2023		2022		2023		2022
Revenues by geography
United States	$	328,958	$	377,608	$	656,694	$	681,057
International	138,031		111,929		226,124		227,124
Revenues	$	466,989	$	489,537	$	882,818	$	908,181

Assets by Geographical Areas

	September 30, 2023		March 31, 2023
Assets by geography
United States	$	1,795,032	$	1,861,296
International	986,521		1,107,518
Total assets	$	2,781,553	$	2,968,814

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BACKGROUND (Details)	6 Months Ended
	Sep. 30, 2023 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, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) segment	Sep. 30, 2023 EUR (€)	Sep. 30, 2022 EUR (€)
Related Party Transaction [Line Items]
Number of business segments | segment			3
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Other operating expenses
Foreign Currency Forward Contract
Related Party Transaction [Line Items]
Fair value gains (losses) included in other operating expenses | $	$ (1,217)	$ (232)
Foreign Currency Forward Contract | United States of America, Dollars
Related Party Transaction [Line Items]
Aggregate notional value of foreign currency forward contract | $	$ 35,200		$ 35,200
Foreign Currency Forward Contract | United Kingdom, Pounds
Related Party Transaction [Line Items]
Aggregate notional value of foreign currency forward contract | €				€ 9.4	€ 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

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Mar. 31, 2022
Accounting Policies [Abstract]
Cash and cash equivalents	$ 493,929	$ 714,439
Restricted cash	373	373
Total cash, cash equivalents, and restricted cash	$ 494,302	$ 714,812	$ 504,179	$ 834,070

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REVENUE RECOGNITION - Summary of Receivables, Contract Assets, and Contract Liabilities (Details) $ in Thousands	6 Months Ended
	Sep. 30, 2023 USD ($)
Receivables
Beginning balance	$ 175,023
Increase/(Decrease)	(29,670)
Ending balance	145,353
Unbilled work in process, net of allowance for doubtful accounts
Beginning balance	115,045
Increase/(Decrease)	18,742
Ending balance	133,787
Contract Assets
Beginning balance	7,006
Increase/(Decrease)	(116)
Ending balance	6,890
Contract Liabilities
Beginning balance	40,695
Increase/(Decrease)	(3,325)
Ending balance	$ 37,370

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REVENUE RECOGNITION - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Sep. 30, 2023	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenue recognized that was previously included in deferred income	$ 7.5	$ 20.7

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RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Sep. 30, 2023	Sep. 30, 2023	Mar. 31, 2023
Related Party Transaction [Line Items]
Other assets	$ 74,912	$ 74,912	$ 83,609
Certain Employees
Related Party Transaction [Line Items]
Other assets	25,910	25,910	$ 28,869
Financial Advisory Services
Related Party Transaction [Line Items]
Related party transaction, amounts of transaction	$ 2	$ 1,537

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FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Mar. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total asset measured at fair value	$ 31,214	$ 37,309
Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total asset measured at fair value	0	184
Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total asset measured at fair value	31,214	37,125
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	20,505	23,617
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	20,505	23,617
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	10,186	12,990
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	10,186	12,990
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
Common stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total asset measured at fair value		184
Common stock | Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total asset measured at fair value		184
Common stock | Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total asset measured at fair value		0
Common stock | Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total asset measured at fair value		0
Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total asset measured at fair value	523	518
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	523	518
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, 2023	Mar. 31, 2023
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 33,109
Gross Unrealized Gains	3
Gross Unrealized (Losses)	(1,898)
Fair Value	31,214
Amortized Cost		$ 39,622
Gross Unrealized Gains		21
Gross Unrealized (Losses)		(2,334)
Fair Value		37,309
Corporate debt securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	21,863
Gross Unrealized Gains	3
Gross Unrealized (Losses)	(1,361)
Fair Value	20,505
Amortized Cost		24,936
Gross Unrealized Gains		6
Gross Unrealized (Losses)		(1,325)
Fair Value		23,617
U.S. treasury securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	10,723
Gross Unrealized Gains	0
Gross Unrealized (Losses)	(537)
Fair Value	10,186
Amortized Cost		13,400
Gross Unrealized Gains		15
Gross Unrealized (Losses)		(425)
Fair Value		12,990
Common stock
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost		768
Gross Unrealized Gains		0
Gross Unrealized (Losses)		(584)
Fair Value		184
Certificates of deposit
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	523	518
Gross Unrealized Gains	0	0
Gross Unrealized (Losses)	0	0
Fair Value	$ 523	$ 518

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INVESTMENT SECURITIES - Schedule of Maturities of Debt Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Mar. 31, 2023
Debt Securities, Held-to-maturity, Maturity [Abstract]
Amortized Cost , due within one year	$ 3,969	$ 6,243
Estimated Fair Value, due within one year	3,927	6,254
Amortized Cost, Due within years two through five years	29,140	33,379
Estimated Fair Value, Due within years two through five	27,287	31,055
Amortized Cost	33,109	39,622
Estimated Fair Value	$ 31,214	$ 37,309

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ALLOWANCE FOR CREDIT LOSSES (Details) $ in Thousands	6 Months Ended
	Sep. 30, 2023 USD ($)
Allowance for Uncollectible Accounts Receivable
Beginning balance	$ 14,395
Provision for bad debt, net	4,058
Recovery/(write-off) of uncollectible accounts, net	(3,023)
Ending balance	$ 15,430

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PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Mar. 31, 2023
Property, Plant and Equipment [Line Items]
Total cost	$ 183,876		$ 183,876		$ 156,339
Less: accumulated depreciation	(64,482)		(64,482)		(67,994)
Total net book value	119,394		119,394		88,345
Depreciation expense	3,727	$ 3,849	6,903	$ 7,228
Equipment
Property, Plant and Equipment [Line Items]
Total cost	11,126		11,126		10,178
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total cost	18,298		18,298		19,508
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total cost	133,265		133,265		107,156
Computers and software
Property, Plant and Equipment [Line Items]
Total cost	13,745		13,745		12,086
Other
Property, Plant and Equipment [Line Items]
Total cost	$ 7,442		$ 7,442		$ 7,411

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GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 1,086,438	$ 1,087,784
Tradename-Houlihan Lokey	192,210	192,210
Other intangible assets	93,781	93,917
Total cost	1,372,429	1,373,911
Less: accumulated amortization	(89,339)	(82,757)
Goodwill and other intangibles, net	$ 1,283,090	$ 1,291,154

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GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill by Business Segments (Details) $ in Thousands	6 Months Ended
	Sep. 30, 2023 USD ($)
Goodwill
Goodwill, Beginning Balance	$ 1,087,784
Changes	(1,346)
Goodwill, Ending Balance	1,086,438
Corporate Finance
Goodwill
Goodwill, Beginning Balance	833,254
Changes	(1,346)
Goodwill, Ending Balance	831,908
Financial Restructuring
Goodwill
Goodwill, Beginning Balance	162,815
Changes	0
Goodwill, Ending Balance	162,815
Financial Advisory Services
Goodwill
Goodwill, Beginning Balance	91,715
Changes	0
Goodwill, Ending Balance	$ 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, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 3,360	$ 15,625	$ 6,715	$ 31,390

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GOODWILL AND OTHER INTANGIBLE ASSETS - Finite-Lived Intangible Assets, Amortization Expense, Fiscal Year Maturity (Details) $ in Thousands	Sep. 30, 2023 USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remainder of 2024	$ 2,444
2025	1,694
2026	0
2027	0
2028 and thereafter	$ 0

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LOANS PAYABLE - Narrative (Details) - USD ($)				3 Months Ended		6 Months Ended
	Aug. 31, 2020	Dec. 31, 2019	Aug. 23, 2019	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Mar. 31, 2023	May 31, 2018
Bank of America | Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity			$ 100,000,000
Margin adjustment			1.00%
Outstanding line of credit				$ 0		$ 0		$ 0
Bank of America | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Basis spread on variable rate			0.10%
Bank of America | Revolving Credit Facility | Fed Funds Effective Rate Overnight Index Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate			0.50%
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]
Loans payable, face amount	$ 4,500,000			12,900,000		12,900,000
Debt instrument, exchange period	3 years
Loans Payable | 2.88% Loans Payable
Debt Instrument [Line Items]
Loans payable, face amount									$ 2,800,000
Stated interest rate (as a percent)									2.88%
Interest on debt						0	$ 18,000
Loans Payable | 2.75% Loans Payable
Debt Instrument [Line Items]
Loans payable, face amount		$ 4,000,000
Stated interest rate (as a percent)		2.75%
Interest on debt				21,000	$ 21,000	41,000	$ 41,000
Debt instrument, exchange period		4 years
Baylor Klein, Ltd
Debt Instrument [Line Items]
Contingent consideration				$ 17,900,000		$ 17,900,000		$ 18,100,000

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ACCUMULATED OTHER COMPREHENSIVE (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Sep. 30, 2023	Sep. 30, 2023
Accumulated Other Comprehensive Loss
Balance, April 1, 2023		$ (62,814)
Balance, September 30, 2023	$ (79,723)	$ (79,723)
Accumulated Foreign Currency Adjustment Attributable to Parent
Accumulated Other Comprehensive Loss
Foreign currency translation adjustment	$ (16,909)

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INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 26,542	$ 23,537	$ 41,504	$ 28,576
Effective tax rate	28.40%	27.90%	24.40%	17.90%

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EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Numerator:
Net income	$ 67,031	$ 60,730	$ 128,421	$ 131,512
Denominator:
Weighted average shares of common stock outstanding—basic (in shares)	64,551,353	63,422,701	64,180,642	63,350,545
Weighted average number of incremental shares issuable from unvested restricted stock and restricted stock units, as calculated using the treasury stock method (in shares)	3,316,028	6,377,327	3,700,981	5,966,247
Weighted average shares of common stock outstanding—diluted (in shares)	67,867,381	69,800,028	67,881,623	69,316,792
Net income per share attributable to holders of shares of common stock
Basic (in dollars per share)	$ 1.04	$ 0.96	$ 2.00	$ 2.08
Diluted (in dollars per share)	$ 0.99	$ 0.87	$ 1.89	$ 1.90

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EMPLOYEE BENEFIT PLANS - Defined Contribution Plans (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Defined contribution plan, amount of contributions	$ 3,083	$ 1,867	$ 6,112	$ 3,801

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EMPLOYEE BENEFIT PLANS - Share-Based Incentive Plans (Narrative) (Details) - USD ($)		1 Months Ended	3 Months Ended		6 Months Ended
	Oct. 19, 2017	Aug. 31, 2015	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Excess tax benefits recorded			$ 7,299,000	$ 8,102,000
Compensation expenses			42,740,000	41,399,000	$ 82,149,000	$ 82,006,000
Unrecognized compensation cost			$ 463,603,000	$ 519,704,000	$ 463,603,000	$ 519,704,000
Unrecognized compensation cost, period for recognition					3 years 4 months 24 days	2 years 9 months 18 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]
Aggregate shares granted, price per share (in dollars per share)					$ 87.60	$ 84.49
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, price per share (in dollars per share)			$ 87.60	$ 84.55
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, 2023	Sep. 30, 2022
Restricted Stock Units (RSUs)
Shares
Beginning balance (in shares)	1,050,646	1,038,503
Granted (in shares)	94,286	50,556
Vested (in shares)	(266,883)	(24,138)
Forfeited/Repurchased (in shares)	(19,070)	(14,275)
Ending balance (in shares)	858,979	1,050,646
Weighted Average Grant Date Fair Value
Beginning balance (in dollars per share)	$ 95.46	$ 95.27
Granted (in dollars per share)	87.60	84.55
Vested (in dollars per share)	94.38	63.75
Forfeited/Repurchased (in dollars per share)	90.91	96.82
Ending balance (in dollars per share)	$ 95.02	$ 95.45
2006 Incentive Plan | Restricted Stock
Shares
Beginning balance (in shares)	5,281,779	4,314,375
Granted (in shares)	1,244,902	2,221,461
Vested (in shares)	(1,636,778)	(1,175,311)
Forfeited/Repurchased (in shares)	(306,521)	(76,002)
Ending balance (in shares)	4,583,382	5,284,523
Weighted Average Grant Date Fair Value
Beginning balance (in dollars per share)	$ 79.57	$ 71.42
Granted (in dollars per share)	87.60	84.49
Vested (in dollars per share)	74.23	59.82
Forfeited/Repurchased (in dollars per share)	84.30	80.44
Ending balance (in dollars per share)	$ 83.34	$ 79.37

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EMPLOYEE BENEFIT PLANS - Activity in Liability Classified Shares (Details) - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Awards Settleable in Shares
Beginning balance	$ 11,971	$ 14,349
Offer to grant	9,112	6,188
Share price determined-converted to cash payments	(3)	(2,676)
Share price determined-transferred to equity grants	(6,172)	4,269
Forfeited	0	0
Ending balance	$ 14,908	$ 13,592

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STOCKHOLDERS' EQUITY (Details)	3 Months Ended		6 Months Ended
	Sep. 30, 2023 USD ($) vote $ / shares shares	Sep. 30, 2022 USD ($) $ / shares shares	Sep. 30, 2023 USD ($) vote class_of_stock $ / shares shares	Sep. 30, 2022 USD ($) $ / shares shares	Jun. 30, 2023 shares	Mar. 31, 2023 shares	Jun. 30, 2022 shares	Mar. 31, 2022 shares	Jul. 31, 2021 USD ($)	Aug. 18, 2015
Class of Stock [Line Items]
Number of classes of common stock | class_of_stock			2
Conversion ratio of common stock										1
Dividends outstanding | $	$ 17,236,000	$ 12,003,000	$ 17,236,000	$ 12,003,000
Authorized amount to be repurchased | $									$ 500,000,000
Stock repurchase program, remaining authorized repurchase amount | $	$ 457,700,000		$ 457,700,000
Weighted average price per share (in dollars per share) | $ / shares	$ 104.36	$ 81.74	$ 104.36	$ 84.72
Class A Common Stock
Class of Stock [Line Items]
Common stock voting rights, number of votes | vote	1		1
Shares issued of common stock (in shares)	51,565,992		51,565,992			50,638,924
Number of common shares outstanding (in shares)	51,565,992		51,565,992			50,638,924
Outstanding common stock repurchased and retired (in shares)	239,100,000	100,257,000	239,100,000	577,287,000
Shares repurchased and retired, value | $	$ 24,952,000	$ 8,195,000	$ 24,952,000	$ 48,905,000
Class A Common Stock | Common stock
Class of Stock [Line Items]
Shares issued to non-employee directors (in shares)			6,609	6,739
Conversion of Class B to Class A shares (in shares)	508,491	231,367	1,159,559	497,859
Number of common shares outstanding (in shares)	51,565,992	49,780,875	51,565,992	49,780,875	51,296,601	50,638,924	49,649,765	49,853,564
Class B Common Stock
Class of Stock [Line Items]
Common stock voting rights, number of votes | vote	10		10
Shares issued of common stock (in shares)	17,427,625		17,427,625			18,048,345
Number of common shares outstanding (in shares)	17,427,625		17,427,625			18,048,345
Outstanding common stock repurchased and retired (in shares)	4,235,000	9,731,000	766,832,000	506,462,000
Shares repurchased and retired, value | $	$ 259,000	$ 70,000	$ 70,025,000	$ 42,191,000
Class B Common Stock | Common stock
Class of Stock [Line Items]
Number of common shares outstanding (in shares)	17,427,625	18,874,122	17,427,625	18,874,122	18,035,565	18,048,345	19,136,952	17,649,555
Investor | Class A Common Stock
Class of Stock [Line Items]
Shares issued of common stock (in shares)	51,501,057,000	49,722,549,000	51,501,057,000	49,722,549,000
HL Holders | Class B Common Stock
Class of Stock [Line Items]
Number of common shares outstanding (in shares)	17,427,625,000	18,874,122,000	17,427,625,000	18,874,122,000
Director | Class A Common Stock
Class of Stock [Line Items]
Shares issued to non-employee directors (in shares)	0	0	6,609	6,739
Shares issued of common stock (in shares)	64,935,000	58,326,000	64,935,000	58,326,000

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LEASES - Narrative (Details) $ in Millions	Sep. 30, 2023 USD ($)
Lessee, Lease, Description [Line Items]
Lease not yet commenced, amount	$ 6.5
Minimum
Lessee, Lease, Description [Line Items]
Operating lease, term of contract	1 year
Operating lease, lease not yet commenced, term of contract	5 years
Maximum
Lessee, Lease, Description [Line Items]
Operating lease, term of contract	16 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, 2023	Mar. 31, 2023
Leases [Abstract]
Remaining 2024	$ 12,980
2025	45,382
2026	51,080
2027	48,870
2028	48,165
Thereafter	370,454
Total	576,931
Less: present value discount	(157,510)
Operating lease liabilities	$ 419,421	$ 374,869

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LEASES - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Leases [Abstract]
Operating lease expense	$ 13,385	$ 8,571	$ 25,808	$ 15,807
Variable lease expense	5,476	4,725	10,713	9,244
Short-term lease expense	62	52	108	87
Less: Sublease income	90
Less: Sublease income		(63)	(213)	(63)
Total lease costs	$ 19,013	$ 13,285	$ 36,416	$ 25,075

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LEASES - Weighted Average Details (Details)	Sep. 30, 2023	Sep. 30, 2022
Leases [Abstract]
Weighted-average remaining lease term (years)	12 years	9 years
Weighted-average discount rate	5.10%	3.30%

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LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Leases [Abstract]
Cash paid for amounts included in the measurement of Operating lease liabilities	$ 17,562	$ 18,292
Operating lease right-of-use assets obtained in exchange of Operating lease liabilities	13,735	19,219
Change in Operating lease right-of-use assets due to remeasurement	$ 32,655	$ 161

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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, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Mar. 31, 2023
Segment Reporting Information [Line Items]
Revenues	$ 466,989	$ 489,537	$ 882,818	$ 908,181
Segment profit	142,609	137,526	262,724	274,821
Corporate expenses	376,712	400,166	719,194	741,240
Other (income)/expense, net	(3,296)	5,104	(6,301)	6,853
Income before provision for income taxes	93,573	84,267	169,925	160,088
Total assets	2,781,553		2,781,553		$ 2,968,814
Operating Segments
Segment Reporting Information [Line Items]
Total assets	1,353,060		1,353,060		1,377,444
Operating Segments | Corporate Finance
Segment Reporting Information [Line Items]
Revenues	281,684	315,016	508,735	578,967
Segment profit	90,517	93,794	152,139	185,359
Total assets	1,006,417		1,006,417		1,015,760
Operating Segments | Financial Restructuring
Segment Reporting Information [Line Items]
Revenues	114,670	97,694	238,038	176,532
Segment profit	32,499	17,563	76,093	44,259
Total assets	171,537		171,537		196,289
Operating Segments | Financial Advisory Services
Segment Reporting Information [Line Items]
Revenues	70,635	76,827	136,045	152,682
Segment profit	19,593	26,169	34,492	45,203
Total assets	175,106		175,106		165,395
Corporate, Non-Segment
Segment Reporting Information [Line Items]
Corporate expenses	52,332	48,155	99,100	107,880
Total assets	1,428,493		1,428,493		$ 1,591,370
Segment Reconciling Items
Segment Reporting Information [Line Items]
Other (income)/expense, net	$ (3,296)	$ 5,104	$ (6,301)	$ 6,853

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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, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Mar. 31, 2023
Revenues from External Customers and Long-Lived Assets [Line Items]
Income before provision for income taxes	$ 93,573	$ 84,267	$ 169,925	$ 160,088
Revenues	466,989	489,537	882,818	908,181
Total assets	2,781,553		2,781,553		$ 2,968,814
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Income before provision for income taxes	61,280	63,771	113,682	114,023
Revenues	328,958	377,608	656,694	681,057
Total assets	1,795,032		1,795,032		1,861,296
International
Revenues from External Customers and Long-Lived Assets [Line Items]
Income before provision for income taxes	32,293	20,496	56,243	46,065
Revenues	138,031	$ 111,929	226,124	$ 227,124
Total assets	$ 986,521		$ 986,521		$ 1,107,518

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SUBSEQUENT EVENTS (Details)	Oct. 24, 2023 $ / shares
Subsequent Event
Subsequent Event [Line Items]
Common stock, dividends, per share, declared (in dollars per share)	$ 0.55