HOULIHAN LOKEY, INC., 10-Q filed on 8/6/2024
Quarterly Report
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Cover Page - shares
 3 Months Ended
Jun. 30, 2024
Aug. 02, 2024
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2024  
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 553-8871  
Title of 12(b) Security Class A Common Stock, par value $0.001  
Trading Symbol HLI  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Amendment Flag false  
Entity Central Index Key 0001302215  
Current Fiscal Year End Date --03-31  
Document Fiscal Year Focus 2025  
Document Fiscal Period Focus Q1  
Class A Common Stock    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   53,119,956
Class B Common Stock    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   16,413,593
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CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Jun. 30, 2024
Mar. 31, 2024
Assets    
Cash and cash equivalents $ 449,697 $ 721,235
Restricted cash 619 619
Investment securities 35,622 38,005
Accounts receivable, net of allowance for credit losses of $9,856 and $8,767, respectively 192,587 199,630
Unbilled work in progress, net of allowance for credit losses of $6,049 and $6,132, respectively 156,023 192,012
Income taxes receivable 48,179 32,856
Deferred income taxes 80,607 90,064
Property and equipment, net 143,368 136,701
Operating lease right-of-use assets 362,222 344,024
Goodwill 1,175,370 1,127,497
Other intangible assets, net 198,707 197,439
Other assets 99,915 90,677
Total assets 2,942,916 3,170,759
Liabilities:    
Accrued salaries and bonuses 491,048 726,031
Accounts payable and accrued expenses 110,114 114,171
Deferred income 36,647 33,139
Deferred income taxes 7,598 7,505
Operating lease liabilities 435,200 415,412
Other liabilities 32,831 37,751
Total liabilities 1,113,438 1,334,009
Commitments and Contingencies
Stockholders' equity:    
Additional paid-in capital 691,651 739,870
Retained earnings 1,207,328 1,163,419
Accumulated other comprehensive loss (69,570) (66,608)
Total stockholders' equity 1,829,478 1,836,750
Total liabilities and stockholders' equity 2,942,916 3,170,759
Common Class A    
Stockholders' equity:    
Common stock 53 52
Common Class B    
Stockholders' equity:    
Common stock $ 16 $ 17
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CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($)
$ in Thousands
Jun. 30, 2024
Mar. 31, 2024
Allowance for doubtful accounts $ 9,856 $ 8,767
Allowance for doubtful accounts, unbilled work in process $ 6,049 $ 6,132
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) 53,053,499 52,348,511
Common stock, shares outstanding (in shares) 53,053,499 52,348,511
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) 16,456,793 16,746,676
Common stock, shares outstanding (in shares) 16,456,793 16,746,676
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 3 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Income Statement [Abstract]    
Revenues $ 513,609 $ 415,829
Operating expenses:    
Employee compensation and benefits 330,116 263,483
Travel, meals, and entertainment 18,512 16,018
Rent 19,284 17,403
Depreciation and amortization 8,856 6,532
Information technology and communications 16,189 13,548
Professional fees 8,477 9,557
Other operating expenses 16,607 15,941
Total operating expenses 418,041 342,482
Operating income 95,568 73,347
Other income, net (4,306) (3,005)
Income before provision for income taxes 99,874 76,352
Provision for income taxes 10,934 14,962
Net income 88,940 61,390
Other comprehensive income, net of tax:    
Foreign currency translation adjustments (2,962) 2,974
Comprehensive income attributable to Houlihan Lokey, Inc. $ 85,978 $ 64,364
Weighted average shares of common stock outstanding:    
Basic (in shares) 65,031,216 63,806,156
Fully Diluted (in shares) 68,501,059 68,000,392
Earnings per share    
Basic (in dollars per share) $ 1.37 $ 0.96
Fully Diluted (in dollars per share) $ 1.30 $ 0.90
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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, 2023         50,638,924 18,048,345      
Beginning balance at Mar. 31, 2023       $ 1,613,297 $ 51 $ 18 $ 642,970 $ 1,033,072 $ (62,814)
Increase (Decrease) in Stockholders' Equity                  
Shares issued (in shares)           1,556,285      
Shares issued       5,177   $ 1 5,176    
Stock compensation vesting       37,348     37,348    
Dividends       (35,953)       (35,953)  
Conversion of Class B to Class A shares (in shares)         (651,068) 651,068      
Other shares repurchased/forfeited (in shares)           (917,997)      
Other shares repurchased/forfeited       (69,767)   $ (1) (69,766)    
Net income $ 61,390     61,390       61,390  
Change in unrealized translation       2,974         2,974
Total comprehensive income       64,364       61,390 2,974
Ending balance (in shares) at Jun. 30, 2023         51,296,601 18,035,565      
Ending balance at Jun. 30, 2023       1,615,053 $ 51 $ 18 616,315 1,058,509 (59,840)
Beginning balance (in shares) at Mar. 31, 2024   52,348,511 16,746,676   52,348,511 16,746,676      
Beginning balance at Mar. 31, 2024 1,836,750     1,836,750 $ 52 $ 17 739,870 1,163,419 (66,608)
Increase (Decrease) in Stockholders' Equity                  
Shares issued (in shares)         91,656 1,218,641      
Shares issued       21,523   $ 1 21,522    
Stock compensation vesting       30,782     30,782    
Dividends       (45,031)       (45,031)  
Conversion of Class B to Class A shares (in shares)         608,084 (608,084)      
Conversion of Class B to Class A shares       0 $ 1 $ (1)      
Shares issued to non-employee directors (in shares)         5,248        
Shares issued to non-employee directors 710           710    
Other shares repurchased/forfeited (in shares)           (900,440)      
Other shares repurchased/forfeited       (101,234)   $ (1) (101,233)    
Net income 88,940     88,940       88,940  
Change in unrealized translation       (2,962)         (2,962)
Total comprehensive income       85,978       88,940 (2,962)
Ending balance (in shares) at Jun. 30, 2024   53,053,499 16,456,793   53,053,499 16,456,793      
Ending balance at Jun. 30, 2024 $ 1,829,478     $ 1,829,478 $ 53 $ 16 $ 691,651 $ 1,207,328 $ (69,570)
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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 3 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Cash flows from operating activities:    
Net income $ 88,940 $ 61,390
Adjustments to reconcile net income to net cash used in operating activities:    
Deferred income taxes 8,989 (4,735)
Provision for bad debts, net 2,436 2,076
Unrealized losses on investment securities (152) 156
Non-cash lease expense 9,380 7,695
Depreciation and amortization 8,856 6,532
Contingent consideration valuation 804 0
Compensation expense – equity and liability classified share awards (Note 14) 33,071 39,409
Changes in operating assets and liabilities:    
Accounts receivable 15,552 42,358
Unbilled work in progress 36,073 10,178
Other assets (7,624) 5,785
Accrued salaries and bonuses (234,141) (289,298)
Accounts payable and accrued expenses and other (14,902) (15,899)
Deferred income 3,507 (1,253)
Income taxes payable (15,300) 2,038
Net cash used in operating activities (64,511) (133,568)
Cash flows from investing activities:    
Purchases of investment securities (1,486) (35)
Sales or maturities of investment securities 4,021 3,328
Acquisition of business, net of cash acquired (32,095) 0
Purchase of property and equipment, net (10,872) (15,654)
Net cash used in investing activities (40,432) (12,361)
Cash flows from financing activities:    
Dividends paid (51,270) (41,971)
Share repurchases (240) 0
Payments to settle employee tax obligations on share-based awards (100,993) (69,766)
Earnouts paid (9,706) 0
Other financing activities 710 587
Net cash used in financing activities (161,499) (111,150)
Effects of exchange rate changes on cash, cash equivalents, and restricted cash (5,096) (1,244)
Net decrease in cash, cash equivalents, and restricted cash (271,538) (258,323)
Cash, cash equivalents, and restricted cash – beginning of period 721,854 714,812
Cash, cash equivalents, and restricted cash – end of period 450,316 456,489
Supplemental disclosures of non-cash activities:    
Shares issued via vesting of liability classified awards 5,953 5,176
Shares issued as consideration for acquisition 12,489 0
Cash acquired through acquisitions 2,170 0
Cash paid during the period:    
Interest 301 105
Taxes, net of refunds $ 17,216 $ 17,660
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BACKGROUND
 3 Months Ended
Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
BACKGROUND Background
Houlihan Lokey, Inc. ("Houlihan Lokey," or "HL, Inc." also referred to as the "Company," "we," "our," or "us") is a Delaware corporation that controls the following primary subsidiaries:
•Houlihan Lokey Capital, Inc., a California corporation ("HL Capital, Inc."), is a wholly owned direct subsidiary of HL, Inc. HL Capital, Inc. is registered as a broker-dealer under Section 15(b) of the Securities Exchange Act of 1934 and a member of Financial Industry Regulatory Authority, Inc.

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

•Houlihan Lokey UK Limited, a private limited company registered in England ("HL UK Ltd."), is an indirect subsidiary of HL, Inc. HL UK Ltd. 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 and advice on mergers and acquisitions and capital markets offerings. We advise public and private institutions, including financial sponsors, on a wide variety of matters, including buy-side and sell-side M&A transactions, debt and equity financings in both the private and public markets, and other corporate finance 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; liability management transactions, 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 financial advisory and valuation services with respect to companies, debt and equity interests (including complex illiquid investments), and other types of assets and liabilities; fairness opinions in connection with mergers and acquisitions and other transactions, solvency opinions in connection with corporate spin-offs and dividend recapitalizations, and other types of financial opinions in connection with other transactions; as well as diligence, tax, transaction accounting, and other financial advisory services to companies, boards of directors, special committees, retained counsel, financial and strategic investors, trustees, and other parties. 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
 3 Months Ended
Jun. 30, 2024
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 three months ended June 30, 2024 are not necessarily indicative of the results of operations to be expected for the fiscal year ending March 31, 2025. 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, 2024 (the "2024 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, 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 mergers and acquisitions, capital markets, and other corporate finance transactions. 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. Completion Fees, Retainer Fees, and Progress Fees from these engagements are considered variable and constrained until the corresponding 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 regulatory approval).
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 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 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. 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, diligence, tax transaction accounting, and other financial advisory 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 June 30, 2024, we had three foreign currency forward contracts outstanding between the U.S. dollar and the pound sterling with an aggregate notional value of $67.0 million. As of June 30, 2023, we had five foreign currency forward contracts outstanding between the pound sterling and the euro with a notional value of $85.2 million. The change in fair value of these contracts represented a net gain/(loss) included in Other operating expenses of $(521) and $129 during the three months ended June 30, 2024 and June 30, 2023, 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 June 30, 2024 and March 31, 2024, 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.     
June 30, 2024March 31, 2024
Cash and cash equivalents$449,697 $721,235 
Restricted cash (1)
619 619 
Total cash, cash equivalents, and restricted cash$450,316 $721,854 
(1)Restricted cash as of June 30, 2024 and March 31, 2024 consisted of cash deposits in support of two letters of credit 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.
In 2021, the Organization for Economic Co-operation and Development (“OECD”) reached agreement among various countries to establish a 15% minimum tax on certain multinational enterprises, commonly referred to as Pillar Two. The EU effective dates are January 1, 2024 and January 1, 2025, for different aspects of the directive. A significant number of other countries are expected to also implement similar legislation with varying effective dates in the future. The Company is continuing to evaluate the potential impact on future periods of Pillar Two, pending legislative adoption by individual countries.

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 June 30, 2024, 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 June 30, 2024, 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 June 30, 2024, 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.
v3.24.2.u1
REVENUE RECOGNITION
 3 Months Ended
Jun. 30, 2024
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, 2024Increase/(Decrease)June 30, 2024
Receivables (1)
$192,952 $(7,397)$185,555 
Unbilled work in progress, net of allowance for credit losses192,012 (35,989)156,023 
Contract Assets (1)
6,678 354 7,032 
Contract Liabilities (2)
33,139 3,508 36,647 
(1)Included within Accounts receivable, net of allowance for credit losses in the June 30, 2024 Consolidated Balance Sheets.
(2)Included within Deferred income in the June 30, 2024 Consolidated Balance Sheets.

During the three months ended June 30, 2024, $11.0 million of Revenues 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 as of June 30, 2024.
v3.24.2.u1
RELATED PARTY TRANSACTIONS
 3 Months Ended
Jun. 30, 2024
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 $42 and $1,535 for the three months ended June 30, 2024 and 2023, respectively. Accounts receivable and Unbilled work in progress in the accompanying Consolidated Balance Sheets include amounts pertaining to these services of $96 and $7,228 as of June 30, 2024 and March 31, 2024, respectively.
Other assets in the accompanying Consolidated Balance Sheets includes loans receivable from certain employees of $36,114 and $32,937 as of June 30, 2024 and March 31, 2024, respectively.
v3.24.2.u1
FAIR VALUE MEASUREMENTS
 3 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS Fair Value Measurements
The following table presents information about the Company's financial assets, and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair values:
June 30, 2024
Level ILevel IILevel IIITotal
Corporate debt securities$— $17,814 $— $17,814 
U.S. treasury securities— 17,275 — 17,275 
Certificates of deposit— 533 — 533 
Total assets measured at fair value$— $35,622 $— $35,622 

March 31, 2024
Level ILevel IILevel IIITotal
Corporate debt securities$— $21,641 $— $21,641 
U.S. treasury securities— 15,833 — 15,833 
Certificates of deposit— 531 — 531 
Total assets measured at fair value$— $38,005 $— $38,005 

The Company had no transfers between fair value levels during the three months ended June 30, 2024.
v3.24.2.u1
INVESTMENT SECURITIES
 3 Months Ended
Jun. 30, 2024
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:
June 30, 2024
Amortized CostGross Unrealized GainsGross Unrealized (Losses)Fair Value
Corporate debt securities$18,423 $2 $(611)$17,814 
U.S. treasury securities17,438 144 (307)17,275 
Certificates of deposit533 — — 533 
Total securities with unrealized gains/(losses)$36,394 $146 $(918)$35,622 

March 31, 2024
Amortized CostGross Unrealized GainsGross Unrealized (Losses)Fair Value
Corporate debt securities$22,318 $8 $(685)$21,641 
U.S. treasury securities16,071 110 (348)15,833 
Certificates of deposit531 — — 531 
Total securities with unrealized gains/(losses)$38,920 $118 $(1,033)$38,005 

Scheduled maturities of the debt securities held by the Company included within the investment securities portfolio were as follows:
June 30, 2024March 31, 2024
Amortized CostEstimated Fair ValueAmortized CostEstimated Fair Value
Due within one year$9,595 $9,492 $7,592 $7,566 
Due within years two through five26,799 26,130 31,328 30,439 
Total debt within the investment securities portfolio$36,394 $35,622 $38,920 $38,005 
v3.24.2.u1
ALLOWANCE FOR CREDIT LOSSES
 3 Months Ended
Jun. 30, 2024
Receivables [Abstract]  
ALLOWANCE FOR CREDIT LOSSES Allowance for Credit Losses
The following table presents information about the Company's allowance for credit losses:
June 30, 2024
Beginning balance$14,899 
Provision for bad debt, net2,436 
Recovery/(write-off) of uncollectible accounts, net (1,430)
Ending balance$15,905 
v3.24.2.u1
PROPERTY AND EQUIPMENT
 3 Months Ended
Jun. 30, 2024
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT Property and Equipment
Property and equipment, net of accumulated depreciation consists of the following:
June 30, 2024March 31, 2024
Equipment$10,937 $9,972 
Furniture and fixtures34,621 29,672
Leasehold improvements148,805 144,996
Computers and software14,263 12,282
Other8,090 8,088
Total cost216,716 205,010 
Less: accumulated depreciation(73,348)(68,309)
Total net book value$143,368 $136,701 
Additions to property and equipment during the three months ended June 30, 2024 were primarily related to purchases of furniture and fixtures.
Depreciation expense of $5,315 and $3,177 was recognized for the three months ended June 30, 2024 and 2023, respectively.
v3.24.2.u1
GOODWILL AND OTHER INTANGIBLE ASSETS
 3 Months Ended
Jun. 30, 2024
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 LivesJune 30, 2024March 31, 2024
GoodwillIndefinite$1,175,370 $1,127,497 
Tradename-Houlihan LokeyIndefinite192,210 192,210 
Other intangible assetsVaries103,721 98,897 
Total cost1,471,301 1,418,604 
Less: accumulated amortization(97,224)(93,668)
Goodwill and other intangibles, net$1,374,077 $1,324,936 

Goodwill attributable to the Company’s business segments is as follows:
April 1, 2024
Change (1)
June 30, 2024
Corporate Finance$872,967 $47,873 $920,840 
Financial Restructuring162,815 — 162,815 
Financial and Valuation Advisory91,715 — 91,715 
Goodwill$1,127,497 $47,873 $1,175,370 
(1)Changes pertain primarily to the acquisition of Triago Advisors.
Amortization expense of approximately $3,541 and $3,355 was recognized for the three months ended June 30, 2024 and 2023, respectively.

The estimated future amortization for finite-lived intangible assets for each of the next five fiscal years and thereafter are as follows:
Year Ending
March 31,
Remainder of 2025$4,321 
20261,873 
2027— 
2028— 
2029 and thereafter— 
v3.24.2.u1
LOANS PAYABLE
 3 Months Ended
Jun. 30, 2024
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 June 30, 2024 and March 31, 2024, no principal was outstanding under the HLI Line of Credit.

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 $0.0 million and $9.0 million as of June 30, 2024 and March 31, 2024, respectively, which is included in Other liabilities in our Consolidated Balance Sheets.
In December 2023, the Company acquired 7 Mile Advisors, LLC ("7MA"). Total consideration included an unsecured note of $14.5 million bearing interest at an annual rate of 2.00% and payable on December 11, 2053. The note was issued by the Company to the former principals and sellers of 7MA (who became employees of the Company). Under certain circumstances, the note will be pre-paid to each seller for Company stock over a three-year period in equal annual installments starting in December 2024. The Company incurred interest expense of $72 for the three months ended June 30, 2024. Contingent consideration was also issued in connection with the acquisition of 7MA, which had a carrying value of $4.0 million as of June 30, 2024, and is included in Other liabilities in our Consolidated Balance Sheets.
v3.24.2.u1
ACCUMULATED OTHER COMPREHENSIVE (LOSS)
 3 Months Ended
Jun. 30, 2024
Equity [Abstract]  
ACCUMULATED OTHER COMPREHENSIVE (LOSS) Accumulated Other Comprehensive (Loss)
Accumulated other comprehensive (loss) is comprised of Foreign currency translation adjustments of $(2,962) and $2,974 for the three months ended June 30, 2024 and 2023, respectively.

Accumulated other comprehensive (loss) as of June 30, 2024 was comprised of the following:
Balance, April 1, 2024$(66,608)
Foreign currency translation adjustment(2,962)
Balance, June 30, 2024$(69,570)
v3.24.2.u1
INCOME TAXES
 3 Months Ended
Jun. 30, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES Income Taxes
The Company’s provision for income taxes was $10,934 and $14,962 for the three months ended June 30, 2024 and 2023, respectively. These represent effective tax rates of 10.9% and 19.6% for the three months ended June 30, 2024 and 2023, respectively.
v3.24.2.u1
EARNINGS PER SHARE
 3 Months Ended
Jun. 30, 2024
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. The determination of weighted average shares of common stock outstanding includes both the Company's Class A common stock and Class B common stock. Please refer to Note 15 for further detail on our two classes of authorized Company common stock.
Three Months Ended June 30,
20242023
Numerator:
Net income attributable Houlihan Lokey, Inc.$88,940 $61,390 
Denominator:
Weighted average shares of common stock outstanding — basic65,031,216 63,806,156 
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
3,469,843 4,194,236 
Weighted average shares of common stock outstanding — diluted68,501,059 68,000,392 
Basic earnings per share$1.37 $0.96 
Diluted earnings per share$1.30 $0.90 
v3.24.2.u1
EMPLOYEE BENEFIT PLANS
 3 Months Ended
Jun. 30, 2024
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 $3,045 and $3,029 to these plans during the three months ended June 30, 2024 and 2023, 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 the fiscal year ended March 31, 2024, at $87.60 per share and (ii) six independent directors in the first quarter of the fiscal year ending March 31, 2025, at $134.08 per share.
An excess tax benefit of $21,921 and $7,299 was recognized during the three months ended June 30, 2024 and 2023, 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 three months ended June 30, 2024 and 2023 were related to shares vested in May 2024 and May 2023, 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 2016 Incentive Plan during the three months ended June 30, 2024 and 2023 was as follows:
Unvested Share AwardsShares
Weighted Average
Grant Date
Fair Value
Balance, April 1, 20244,519,024 $83.37 
Granted912,625 134.08 
Vested(1,607,736)80.09 
Forfeited/Repurchased(131,618)177.11 
Balance, June 30, 20243,692,295 $97.24 
Balance, April 1, 20235,281,779 $79.57 
Granted1,248,066 87.60 
Vested(1,626,636)74.14 
Forfeited/Repurchased(155,400)80.01 
Balance, June 30, 20234,747,809 $83.53 
Activity in liability-classified share awards during the three months ended June 30, 2024 and 2023 was as follows:
Awards Settleable in SharesFair Value
Balance, April 1, 2024$17,184 
Offer to grant1,625 
Share price determined-converted to cash payments(5)
Share price determined-transferred to equity grants(7,265)
Forfeited(224)
Balance, June 30, 2024$11,315 
Balance, April 1, 2023$11,971 
Offer to grant5,515 
Share price determined-converted to cash payments(3)
Share price determined-transferred to equity grants(6,172)
Forfeited— 
Balance, June 30, 2023$11,311 
Activity in Restricted Stock Unit awards during the three months ended June 30, 2024 and 2023 was as follows:
Restricted Stock UnitsRSUs
Weighted Average Grant Date Fair Value
RSUs as of April 1, 2024843,730 $95.09 
Issued68,601 134.08 
Forfeitures(17,779)180.95 
Vested(268,114)94.70 
RSUs as of June 30, 2024626,438 $99.55 
RSUs as of April 1, 20231,050,646 $95.46 
Issued94,286 87.60 
Forfeitures(4,302)77.11 
Vested(266,883)94.38 
RSUs as of June 30, 2023873,747 $95.02 

Compensation expenses for the Company associated with both equity-classified and liability-classified awards totaled $33,071 and $39,409 for the three months ended June 30, 2024 and 2023, respectively.

As of June 30, 2024 and 2023, there was $412,184 and $479,580, respectively, of total unrecognized compensation cost related to unvested share awards granted under the 2016 Incentive Plan. These costs are recognized over a weighted average period of 2.6 years and 3.7 years, as of June 30, 2024 and 2023, 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.
v3.24.2.u1
STOCKHOLDERS' EQUITY
 3 Months Ended
Jun. 30, 2024
Equity [Abstract]  
STOCKHOLDERS' EQUITY 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.
Class A Common Stock
During the three months ended June 30, 2024 and 2023, 5,248 and 6,609 shares were issued to non-employee directors and 608,084 and 651,068 shares were converted from Class B to Class A, respectively.
As of June 30, 2024, there were 52,983,316 Class A shares held by the public and 70,183 Class A shares held by non-employee directors. As of June 30, 2023, there were 51,231,666 Class A shares held by the public and 64,935 Class A shares held by non-employee directors.

Class B Common Stock
As of June 30, 2024 and 2023, there were 16,456,793 and 18,035,565 Class B shares held by the HL Voting Trust, respectively.

Dividends
Previously declared dividends related to unvested shares of $15,840 and $14,673 were unpaid as of June 30, 2024 and 2023, 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 June 30, 2024, shares with a value of $457.7 million remained available for purchase under the program.
During the three months ended June 30, 2024 and 2023, the Company repurchased 672,581 and 507,511 shares, respectively, of Class B common stock, to satisfy $100,993 and $69,766, respectively, of required withholding taxes in connection with the vesting of restricted awards. There were no regular share repurchases made under the existing share repurchase program during the three months ended June 30, 2024
v3.24.2.u1
LEASES
 3 Months Ended
Jun. 30, 2024
Leases [Abstract]  
LEASES Leases
Lessee Arrangements
Operating Leases
We lease real estate and equipment used in operations from third parties. As of June 30, 2024, the remaining term of our operating leases ranged from 1 to 15 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 June 30, 2024.

Maturity of Operating Leases
Operating Leases
Remaining 2025$30,028 
202654,061 
202753,977 
202853,397 
202952,705 
Thereafter342,450 
Total586,618 
Less: present value discount(151,418)
Operating lease liabilities$435,200 

As of June 30, 2024, the Company has entered into an operating lease for additional office space that has not yet commenced for approximately $1.8 million. This operating lease will commence during fiscal year 2025 with a lease term of 5 years.
Lease costs
Three Months Ended June 30,
20242023
Operating lease expense$15,033 $12,423 
Variable lease expense (1)
4,622 5,237 
Short-term lease expense54 46 
Less: Sublease income(425)(303)
Total lease costs$19,284 $17,403 
(1)Primarily consists of payments for property taxes, common area maintenance and usage based operating costs.
Weighted-average details
June 30,
20242023
Weighted-average remaining lease term (years)1212
Weighted-average discount rate5.4 %5.0 %

Supplemental cash flow information related to leases:
Three Months Ended June 30,
20242023
Operating cash flows:
Cash paid for amounts included in the measurement of Operating lease liabilities$17,698 $10,251 
Non-cash activity:
Operating lease right-of-use assets obtained in exchange of Operating lease liabilities$24,348 $6,750 
Change in Operating lease right-of-use assets due to remeasurement1,416 46,168 
v3.24.2.u1
COMMITMENTS AND CONTINGENCIES
 3 Months Ended
Jun. 30, 2024
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 June 30, 2024 or March 31, 2024.
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 2024 Annual Report.
v3.24.2.u1
SEGMENT AND GEOGRAPHICAL INFORMATION
 3 Months Ended
Jun. 30, 2024
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 June 30,
20242023
Revenues by segment
Corporate Finance$328,417 $227,051 
Financial Restructuring117,422 123,368 
Financial and Valuation Advisory67,770 65,410 
Revenues$513,609 $415,829 
Segment profit (1)
Corporate Finance$100,422 $61,622 
Financial Restructuring39,149 43,594 
Financial and Valuation Advisory17,641 14,899 
Total segment profit157,212 120,115 
Corporate expenses (2)
61,644 46,768 
Other income, net(4,306)(3,005)
Income before provision for income taxes$99,874 $76,352 
(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.

June 30, 2024March 31, 2024
Assets by segment
Corporate Finance$1,144,817 $1,147,432 
Financial Restructuring197,444 192,185 
Financial and Valuation Advisory167,629 170,627 
Total segment assets1,509,890 1,510,244 
Corporate assets1,433,026 1,660,515 
Total assets$2,942,916 $3,170,759 

Three Months Ended June 30,
20242023
Income before provision for income taxes by geography
United States$61,058 $52,402 
International38,816 23,950 
Income before provision for income taxes$99,874 $76,352 
Three Months Ended June 30,
20242023
Revenues by geography
United States$366,559 $327,736 
International147,050 88,093 
Revenues$513,609 $415,829 

June 30, 2024March 31, 2024
Assets by geography
United States$1,992,499 $1,957,454 
International950,4171,213,305
Total assets$2,942,916 $3,170,759 
v3.24.2.u1
SUBSEQUENT EVENTS
 3 Months Ended
Jun. 30, 2024
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS Subsequent EventsOn July 25, 2024, the Company's board of directors declared a quarterly cash dividend of $0.57 per share of Class A and Class B common stock, payable on September 15, 2024, to shareholders of record on September 3, 2024
v3.24.2.u1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Pay vs Performance Disclosure    
Net income $ 88,940 $ 61,390
v3.24.2.u1
Insider Trading Arrangements
 3 Months Ended
Jun. 30, 2024
shares
Trading Arrangements, by Individual  
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Gillian Zucker [Member]  
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
(c) On May 21, 2024, Gillian Zucker, Independent Director on our Board of Directors, 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 2,400 shares of the Company's common stock until July 31, 2025.
Name Gillian Zucker
Title Independent Director
Rule 10b5-1 Arrangement Adopted true
Adoption Date May 21, 2024
Arrangement Duration 436 days
Aggregate Available 2,400
v3.24.2.u1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 3 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
Basis of Presentation
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 three months ended June 30, 2024 are not necessarily indicative of the results of operations to be expected for the fiscal year ending March 31, 2025. 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, 2024 (the "2024 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, 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 mergers and acquisitions, capital markets, and other corporate finance transactions. 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. Completion Fees, Retainer Fees, and Progress Fees from these engagements are considered variable and constrained until the corresponding 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 regulatory approval).
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 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 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. 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, diligence, tax transaction accounting, and other financial advisory 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 June 30, 2024, we had three foreign currency forward contracts outstanding between the U.S. dollar and the pound sterling with an aggregate notional value of $67.0 million. As of June 30, 2023, we had five foreign currency forward contracts outstanding between the pound sterling and the euro with a notional value of $85.2 million. The change in fair value of these contracts represented a net gain/(loss) included in Other operating expenses of $(521) and $129 during the three months ended June 30, 2024 and June 30, 2023, 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 June 30, 2024 and March 31, 2024, 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.     
June 30, 2024March 31, 2024
Cash and cash equivalents$449,697 $721,235 
Restricted cash (1)
619 619 
Total cash, cash equivalents, and restricted cash$450,316 $721,854 
(1)Restricted cash as of June 30, 2024 and March 31, 2024 consisted of cash deposits in support of two letters of credit for our Frankfurt office.
Investment Securities
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
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
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
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.
In 2021, the Organization for Economic Co-operation and Development (“OECD”) reached agreement among various countries to establish a 15% minimum tax on certain multinational enterprises, commonly referred to as Pillar Two. The EU effective dates are January 1, 2024 and January 1, 2025, for different aspects of the directive. A significant number of other countries are expected to also implement similar legislation with varying effective dates in the future. The Company is continuing to evaluate the potential impact on future periods of Pillar Two, pending legislative adoption by individual countries.
Leases
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 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 June 30, 2024, 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 June 30, 2024, 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.
Business Combinations Policy
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.
v3.24.2.u1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 3 Months Ended
Jun. 30, 2024
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.     
June 30, 2024March 31, 2024
Cash and cash equivalents$449,697 $721,235 
Restricted cash (1)
619 619 
Total cash, cash equivalents, and restricted cash$450,316 $721,854 
(1)Restricted cash as of June 30, 2024 and March 31, 2024 consisted of cash deposits in support of two letters of credit 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.     
June 30, 2024March 31, 2024
Cash and cash equivalents$449,697 $721,235 
Restricted cash (1)
619 619 
Total cash, cash equivalents, and restricted cash$450,316 $721,854 
(1)Restricted cash as of June 30, 2024 and March 31, 2024 consisted of cash deposits in support of two letters of credit for our Frankfurt office.
v3.24.2.u1
REVENUE RECOGNITION (Tables)
 3 Months Ended
Jun. 30, 2024
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, 2024Increase/(Decrease)June 30, 2024
Receivables (1)
$192,952 $(7,397)$185,555 
Unbilled work in progress, net of allowance for credit losses192,012 (35,989)156,023 
Contract Assets (1)
6,678 354 7,032 
Contract Liabilities (2)
33,139 3,508 36,647 
(1)Included within Accounts receivable, net of allowance for credit losses in the June 30, 2024 Consolidated Balance Sheets.
(2)Included within Deferred income in the June 30, 2024 Consolidated Balance Sheets.
v3.24.2.u1
FAIR VALUE MEASUREMENTS (Tables)
 3 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Schedule of Information About Other Financial Assets
The following table presents information about the Company's financial assets, and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair values:
June 30, 2024
Level ILevel IILevel IIITotal
Corporate debt securities$— $17,814 $— $17,814 
U.S. treasury securities— 17,275 — 17,275 
Certificates of deposit— 533 — 533 
Total assets measured at fair value$— $35,622 $— $35,622 

March 31, 2024
Level ILevel IILevel IIITotal
Corporate debt securities$— $21,641 $— $21,641 
U.S. treasury securities— 15,833 — 15,833 
Certificates of deposit— 531 — 531 
Total assets measured at fair value$— $38,005 $— $38,005 
v3.24.2.u1
INVESTMENT SECURITIES (Tables)
 3 Months Ended
Jun. 30, 2024
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:
June 30, 2024
Amortized CostGross Unrealized GainsGross Unrealized (Losses)Fair Value
Corporate debt securities$18,423 $2 $(611)$17,814 
U.S. treasury securities17,438 144 (307)17,275 
Certificates of deposit533 — — 533 
Total securities with unrealized gains/(losses)$36,394 $146 $(918)$35,622 

March 31, 2024
Amortized CostGross Unrealized GainsGross Unrealized (Losses)Fair Value
Corporate debt securities$22,318 $8 $(685)$21,641 
U.S. treasury securities16,071 110 (348)15,833 
Certificates of deposit531 — — 531 
Total securities with unrealized gains/(losses)$38,920 $118 $(1,033)$38,005 
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:
June 30, 2024March 31, 2024
Amortized CostEstimated Fair ValueAmortized CostEstimated Fair Value
Due within one year$9,595 $9,492 $7,592 $7,566 
Due within years two through five26,799 26,130 31,328 30,439 
Total debt within the investment securities portfolio$36,394 $35,622 $38,920 $38,005 
v3.24.2.u1
ALLOWANCE FOR CREDIT LOSSES (Tables)
 3 Months Ended
Jun. 30, 2024
Receivables [Abstract]  
Allowance for Uncollectible Accounts Receivable
June 30, 2024
Beginning balance$14,899 
Provision for bad debt, net2,436 
Recovery/(write-off) of uncollectible accounts, net (1,430)
Ending balance$15,905 
v3.24.2.u1
PROPERTY AND EQUIPMENT (Tables)
 3 Months Ended
Jun. 30, 2024
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment
Property and equipment, net of accumulated depreciation consists of the following:
June 30, 2024March 31, 2024
Equipment$10,937 $9,972 
Furniture and fixtures34,621 29,672
Leasehold improvements148,805 144,996
Computers and software14,263 12,282
Other8,090 8,088
Total cost216,716 205,010 
Less: accumulated depreciation(73,348)(68,309)
Total net book value$143,368 $136,701 
v3.24.2.u1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)
 3 Months Ended
Jun. 30, 2024
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 LivesJune 30, 2024March 31, 2024
GoodwillIndefinite$1,175,370 $1,127,497 
Tradename-Houlihan LokeyIndefinite192,210 192,210 
Other intangible assetsVaries103,721 98,897 
Total cost1,471,301 1,418,604 
Less: accumulated amortization(97,224)(93,668)
Goodwill and other intangibles, net$1,374,077 $1,324,936 
Schedule of Goodwill
Goodwill attributable to the Company’s business segments is as follows:
April 1, 2024
Change (1)
June 30, 2024
Corporate Finance$872,967 $47,873 $920,840 
Financial Restructuring162,815 — 162,815 
Financial and Valuation Advisory91,715 — 91,715 
Goodwill$1,127,497 $47,873 $1,175,370 
(1)Changes pertain primarily to the acquisition of Triago Advisors.
Estimated Future Amortization for Amortizable Intangible Assets
The estimated future amortization for finite-lived intangible assets for each of the next five fiscal years and thereafter are as follows:
Year Ending
March 31,
Remainder of 2025$4,321 
20261,873 
2027— 
2028— 
2029 and thereafter— 
v3.24.2.u1
ACCUMULATED OTHER COMPREHENSIVE (LOSS) (Tables)
 3 Months Ended
Jun. 30, 2024
Equity [Abstract]  
Schedule of Accumulated Other Comprehensive Loss
Accumulated other comprehensive (loss) as of June 30, 2024 was comprised of the following:
Balance, April 1, 2024$(66,608)
Foreign currency translation adjustment(2,962)
Balance, June 30, 2024$(69,570)
v3.24.2.u1
EARNINGS PER SHARE (Tables)
 3 Months Ended
Jun. 30, 2024
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. The determination of weighted average shares of common stock outstanding includes both the Company's Class A common stock and Class B common stock. Please refer to Note 15 for further detail on our two classes of authorized Company common stock.
Three Months Ended June 30,
20242023
Numerator:
Net income attributable Houlihan Lokey, Inc.$88,940 $61,390 
Denominator:
Weighted average shares of common stock outstanding — basic65,031,216 63,806,156 
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
3,469,843 4,194,236 
Weighted average shares of common stock outstanding — diluted68,501,059 68,000,392 
Basic earnings per share$1.37 $0.96 
Diluted earnings per share$1.30 $0.90 
v3.24.2.u1
EMPLOYEE BENEFIT PLANS (Tables)
 3 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Activity in Equity Classified Share Awards Activity in equity-classified share awards which relate to the 2016 Incentive Plan during the three months ended June 30, 2024 and 2023 was as follows:
Unvested Share AwardsShares
Weighted Average
Grant Date
Fair Value
Balance, April 1, 20244,519,024 $83.37 
Granted912,625 134.08 
Vested(1,607,736)80.09 
Forfeited/Repurchased(131,618)177.11 
Balance, June 30, 20243,692,295 $97.24 
Balance, April 1, 20235,281,779 $79.57 
Granted1,248,066 87.60 
Vested(1,626,636)74.14 
Forfeited/Repurchased(155,400)80.01 
Balance, June 30, 20234,747,809 $83.53 
Activity in Liability Classified Share Awards
Activity in liability-classified share awards during the three months ended June 30, 2024 and 2023 was as follows:
Awards Settleable in SharesFair Value
Balance, April 1, 2024$17,184 
Offer to grant1,625 
Share price determined-converted to cash payments(5)
Share price determined-transferred to equity grants(7,265)
Forfeited(224)
Balance, June 30, 2024$11,315 
Balance, April 1, 2023$11,971 
Offer to grant5,515 
Share price determined-converted to cash payments(3)
Share price determined-transferred to equity grants(6,172)
Forfeited— 
Balance, June 30, 2023$11,311 
Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity
Activity in Restricted Stock Unit awards during the three months ended June 30, 2024 and 2023 was as follows:
Restricted Stock UnitsRSUs
Weighted Average Grant Date Fair Value
RSUs as of April 1, 2024843,730 $95.09 
Issued68,601 134.08 
Forfeitures(17,779)180.95 
Vested(268,114)94.70 
RSUs as of June 30, 2024626,438 $99.55 
RSUs as of April 1, 20231,050,646 $95.46 
Issued94,286 87.60 
Forfeitures(4,302)77.11 
Vested(266,883)94.38 
RSUs as of June 30, 2023873,747 $95.02 
v3.24.2.u1
LEASES (Tables)
 3 Months Ended
Jun. 30, 2024
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 June 30, 2024.

Maturity of Operating Leases
Operating Leases
Remaining 2025$30,028 
202654,061 
202753,977 
202853,397 
202952,705 
Thereafter342,450 
Total586,618 
Less: present value discount(151,418)
Operating lease liabilities$435,200 
Lease, Cost
Lease costs
Three Months Ended June 30,
20242023
Operating lease expense$15,033 $12,423 
Variable lease expense (1)
4,622 5,237 
Short-term lease expense54 46 
Less: Sublease income(425)(303)
Total lease costs$19,284 $17,403 
(1)Primarily consists of payments for property taxes, common area maintenance and usage based operating costs.
Weighted-average details
June 30,
20242023
Weighted-average remaining lease term (years)1212
Weighted-average discount rate5.4 %5.0 %

Supplemental cash flow information related to leases:
Three Months Ended June 30,
20242023
Operating cash flows:
Cash paid for amounts included in the measurement of Operating lease liabilities$17,698 $10,251 
Non-cash activity:
Operating lease right-of-use assets obtained in exchange of Operating lease liabilities$24,348 $6,750 
Change in Operating lease right-of-use assets due to remeasurement1,416 46,168 
v3.24.2.u1
SEGMENT AND GEOGRAPHICAL INFORMATION (Tables)
 3 Months Ended
Jun. 30, 2024
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 June 30,
20242023
Revenues by segment
Corporate Finance$328,417 $227,051 
Financial Restructuring117,422 123,368 
Financial and Valuation Advisory67,770 65,410 
Revenues$513,609 $415,829 
Segment profit (1)
Corporate Finance$100,422 $61,622 
Financial Restructuring39,149 43,594 
Financial and Valuation Advisory17,641 14,899 
Total segment profit157,212 120,115 
Corporate expenses (2)
61,644 46,768 
Other income, net(4,306)(3,005)
Income before provision for income taxes$99,874 $76,352 
(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.

June 30, 2024March 31, 2024
Assets by segment
Corporate Finance$1,144,817 $1,147,432 
Financial Restructuring197,444 192,185 
Financial and Valuation Advisory167,629 170,627 
Total segment assets1,509,890 1,510,244 
Corporate assets1,433,026 1,660,515 
Total assets$2,942,916 $3,170,759 
Revenue by Geographic Areas
Three Months Ended June 30,
20242023
Income before provision for income taxes by geography
United States$61,058 $52,402 
International38,816 23,950 
Income before provision for income taxes$99,874 $76,352 
Three Months Ended June 30,
20242023
Revenues by geography
United States$366,559 $327,736 
International147,050 88,093 
Revenues$513,609 $415,829 
Assets by Geographical Areas
June 30, 2024March 31, 2024
Assets by geography
United States$1,992,499 $1,957,454 
International950,4171,213,305
Total assets$2,942,916 $3,170,759 
v3.24.2.u1
BACKGROUND (Details)
 3 Months Ended
Jun. 30, 2024
segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of business segments 3
v3.24.2.u1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details)
$ in Thousands, € in Millions
 3 Months Ended
Jun. 30, 2024
USD ($)
segment
numberOfInstruments
Jun. 30, 2023
USD ($)
Jun. 30, 2023
EUR (€)
numberOfInstruments
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 Other operating expenses  
Foreign Currency Forward Contract      
Related Party Transaction [Line Items]      
Number of derivative instruments | numberOfInstruments 3   5
Fair value gains (losses) included in other operating expenses $ (521) $ 129  
Foreign Currency Forward Contract | United States of America, Dollars      
Related Party Transaction [Line Items]      
Aggregate notional value of foreign currency forward contract $ 67,000    
Foreign Currency Forward Contract | United Kingdom, Pounds      
Related Party Transaction [Line Items]      
Aggregate notional value of foreign currency forward contract | €     € 85.2
v3.24.2.u1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Mar. 31, 2023
Accounting Policies [Abstract]        
Cash and cash equivalents $ 449,697 $ 721,235    
Restricted cash 619 619    
Total cash, cash equivalents, and restricted cash $ 450,316 $ 721,854 $ 456,489 $ 714,812
v3.24.2.u1
REVENUE RECOGNITION - Summary of Receivables, Contract Assets, and Contract Liabilities (Details)
$ in Thousands
 3 Months Ended
Jun. 30, 2024
USD ($)
Receivables  
Beginning balance $ 192,952
Increase/(Decrease) (7,397)
Ending balance 185,555
Unbilled work in process, net of allowance for doubtful accounts  
Beginning balance 192,012
Increase/(Decrease) (35,989)
Ending balance 156,023
Contract Assets  
Beginning balance 6,678
Increase/(Decrease) 354
Ending balance 7,032
Contract Liabilities  
Beginning balance 33,139
Increase/(Decrease) 3,508
Ending balance $ 36,647
v3.24.2.u1
REVENUE RECOGNITION - Narrative (Details)
$ in Millions
 3 Months Ended
Jun. 30, 2024
USD ($)
Revenue from Contract with Customer [Abstract]  
Revenue recognized that was previously included in deferred income $ 11.0
v3.24.2.u1
RELATED PARTY TRANSACTIONS (Details) - USD ($)
$ in Thousands
 3 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Mar. 31, 2024
Related Party Transaction [Line Items]      
Other assets $ 99,915   $ 90,677
Accounts receivable 192,587   199,630
Unbilled work in progress 156,023   192,012
Related Party      
Related Party Transaction [Line Items]      
Accounts receivable 96    
Unbilled work in progress     7,228
Certain Employees      
Related Party Transaction [Line Items]      
Other assets 36,114   $ 32,937
Financial Advisory Services      
Related Party Transaction [Line Items]      
Related party transaction, amounts of transaction $ 42 $ 1,535  
v3.24.2.u1
FAIR VALUE MEASUREMENTS (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Mar. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total asset measured at fair value $ 35,622 $ 38,005
Level I    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total asset measured at fair value 0 0
Level II    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total asset measured at fair value 35,622 38,005
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 17,814 21,641
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 17,814 21,641
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 17,275 15,833
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 17,275 15,833
U.S. treasury securities | Level III    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total asset measured at fair value 0 0
Certificates of deposit    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total asset measured at fair value 533 531
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 533 531
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
v3.24.2.u1
INVESTMENT SECURITIES - Schedule of Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Securities Held to Maturity (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Mar. 31, 2024
Schedule of Held-to-maturity Securities [Line Items]    
Amortized Cost $ 36,394 $ 38,920
Gross Unrealized Gains 146 118
Gross Unrealized (Losses) (918) (1,033)
Fair Value 35,622 38,005
Corporate debt securities    
Schedule of Held-to-maturity Securities [Line Items]    
Amortized Cost 18,423 22,318
Gross Unrealized Gains 2 8
Gross Unrealized (Losses) (611) (685)
Fair Value 17,814 21,641
U.S. treasury securities    
Schedule of Held-to-maturity Securities [Line Items]    
Amortized Cost 17,438 16,071
Gross Unrealized Gains 144 110
Gross Unrealized (Losses) (307) (348)
Fair Value 17,275 15,833
Certificates of deposit    
Schedule of Held-to-maturity Securities [Line Items]    
Amortized Cost 533 531
Gross Unrealized Gains 0 0
Gross Unrealized (Losses) 0 0
Fair Value $ 533 $ 531
v3.24.2.u1
INVESTMENT SECURITIES - Schedule of Maturities of Debt Securities (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Mar. 31, 2024
Debt Securities, Held-to-maturity, Maturity [Abstract]    
Amortized Cost , due within one year $ 9,595 $ 7,592
Estimated Fair Value, due within one year 9,492 7,566
Amortized Cost, Due within years two through five years 26,799 31,328
Estimated Fair Value, Due within years two through five 26,130 30,439
Amortized Cost 36,394 38,920
Estimated Fair Value $ 35,622 $ 38,005
v3.24.2.u1
ALLOWANCE FOR CREDIT LOSSES (Details)
$ in Thousands
 3 Months Ended
Jun. 30, 2024
USD ($)
Allowance for Uncollectible Accounts Receivable  
Beginning balance $ 14,899
Provision for bad debt, net 2,436
Recovery/(write-off) of uncollectible accounts, net (1,430)
Ending balance $ 15,905
v3.24.2.u1
PROPERTY AND EQUIPMENT (Details) - USD ($)
$ in Thousands
 3 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Mar. 31, 2024
Property, Plant and Equipment [Line Items]      
Total cost $ 216,716   $ 205,010
Less: accumulated depreciation (73,348)   (68,309)
Total net book value 143,368   136,701
Depreciation expense 5,315 $ 3,177  
Equipment      
Property, Plant and Equipment [Line Items]      
Total cost 10,937   9,972
Furniture and fixtures      
Property, Plant and Equipment [Line Items]      
Total cost 34,621   29,672
Leasehold improvements      
Property, Plant and Equipment [Line Items]      
Total cost 148,805   144,996
Computers and software      
Property, Plant and Equipment [Line Items]      
Total cost 14,263   12,282
Other      
Property, Plant and Equipment [Line Items]      
Total cost $ 8,090   $ 8,088
v3.24.2.u1
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Goodwill and Other Intangible Assets (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]    
Goodwill $ 1,175,370 $ 1,127,497
Tradename-Houlihan Lokey 192,210 192,210
Other intangible assets 103,721 98,897
Total cost 1,471,301 1,418,604
Less: accumulated amortization (97,224) (93,668)
Goodwill and other intangibles, net $ 1,374,077 $ 1,324,936
v3.24.2.u1
GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill by Business Segments (Details)
$ in Thousands
 3 Months Ended
Jun. 30, 2024
USD ($)
Goodwill  
Goodwill, Beginning Balance $ 1,127,497
Changes 47,873
Goodwill, Ending Balance 1,175,370
Corporate Finance  
Goodwill  
Goodwill, Beginning Balance 872,967
Changes 47,873
Goodwill, Ending Balance 920,840
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
v3.24.2.u1
GOODWILL AND OTHER INTANGIBLE ASSETS - Finite-Lived Intangible Assets, Additional Information (Details) - USD ($)
$ in Thousands
 3 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]    
Amortization expense $ 3,541 $ 3,355
v3.24.2.u1
GOODWILL AND OTHER INTANGIBLE ASSETS - Finite-Lived Intangible Assets, Amortization Expense, Fiscal Year Maturity (Details)
$ in Thousands
Jun. 30, 2024
USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]  
Remainder of 2025 $ 4,321
2026 1,873
2027 0
2028 0
2029 and thereafter $ 0
v3.24.2.u1
LOANS PAYABLE - Narrative (Details) - USD ($)
 1 Months Ended 3 Months Ended
Aug. 23, 2019
Dec. 31, 2023
Jun. 30, 2024
Mar. 31, 2024
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
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 | 2.00% Loans Payable        
Debt Instrument [Line Items]        
Loans payable, face amount   $ 14,500,000    
Stated interest rate (as a percent)   2.00%    
Debt instrument, exchange period   3 years    
Interest on debt     72,000  
Baylor Klein, Ltd        
Debt Instrument [Line Items]        
Contingent consideration     0 $ 9,000,000
7 Mile Advisors, LLC        
Debt Instrument [Line Items]        
Contingent consideration     $ 4,000,000  
v3.24.2.u1
ACCUMULATED OTHER COMPREHENSIVE (LOSS) (Details)
$ in Thousands
 3 Months Ended
Jun. 30, 2024
USD ($)
Accumulated Other Comprehensive Loss  
Balance, April 1, 2024 $ (66,608)
Balance, June 30, 2024 (69,570)
Accumulated Foreign Currency Adjustment Attributable to Parent  
Accumulated Other Comprehensive Loss  
Foreign currency translation adjustment $ (2,962)
v3.24.2.u1
ACCUMULATED OTHER COMPREHENSIVE (LOSS) - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Equity [Abstract]    
Foreign currency translation adjustments $ (2,962) $ 2,974
v3.24.2.u1
INCOME TAXES (Details) - USD ($)
$ in Thousands
 3 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Income Tax Disclosure [Abstract]    
Provision for income taxes $ 10,934 $ 14,962
Effective tax rate 10.90% 19.60%
v3.24.2.u1
EARNINGS PER SHARE (Details)
$ / shares in Units, $ in Thousands
 3 Months Ended
Jun. 30, 2024
USD ($)
class_of_stock
$ / shares
shares
Jun. 30, 2023
USD ($)
$ / shares
shares
Earnings Per Share [Abstract]    
Number of classes of common stock | class_of_stock 2  
Numerator:    
Net income | $ $ 88,940 $ 61,390
Denominator:    
Weighted average shares of common stock outstanding—basic (in shares) 65,031,216 63,806,156
Weighted average number of incremental shares issuable from unvested restricted stock and restricted stock units, as calculated using the treasury stock method (in shares) 3,469,843 4,194,236
Weighted average shares of common stock outstanding—diluted (in shares) 68,501,059 68,000,392
Net income per share attributable to holders of shares of common stock    
Basic (in dollars per share) | $ / shares $ 1.37 $ 0.96
Diluted (in dollars per share) | $ / shares $ 1.30 $ 0.90
v3.24.2.u1
EMPLOYEE BENEFIT PLANS - Defined Contribution Plans (Narrative) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]    
Defined contribution plan, amount of contributions $ 3,045 $ 3,029
v3.24.2.u1
EMPLOYEE BENEFIT PLANS - Share-Based Incentive Plans (Narrative) (Details)
 1 Months Ended 3 Months Ended
Oct. 19, 2017
shares
Aug. 31, 2015
Jun. 30, 2024
USD ($)
director
$ / shares
Jun. 30, 2023
USD ($)
director
$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Excess tax benefits recorded | $     $ 21,921,000 $ 7,299,000
Compensation expenses | $     33,071,000 39,409,000
Unrecognized compensation cost | $     $ 412,184,000 $ 479,580,000
Unrecognized compensation cost, period for recognition     2 years 7 months 6 days 3 years 8 months 12 days
Increase (reduction) to common stock available for issuance (in shares) 12,200,000      
Common stock available for issuance (in shares) 8,000,000.0      
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%      
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]        
Number of independent director recipients | director     6 6
Aggregate shares granted, price per share (in dollars per share) | $ / shares     $ 134.08 $ 87.60
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      
v3.24.2.u1
EMPLOYEE BENEFIT PLANS - Activity in Equity Classified Share Awards (Details) - $ / shares
 3 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Restricted Stock Units (RSUs)    
Shares    
Beginning balance (in shares) 843,730 1,050,646
Granted (in shares) 68,601 94,286
Vested (in shares) (268,114) (266,883)
Forfeited/Repurchased (in shares) (17,779) (4,302)
Ending balance (in shares) 626,438 873,747
Weighted Average Grant Date Fair Value    
Beginning balance (in dollars per share) $ 95.09 $ 95.46
Granted (in dollars per share) 134.08 87.60
Vested (in dollars per share) 94.70 94.38
Forfeited/Repurchased (in dollars per share) 180.95 77.11
Ending balance (in dollars per share) $ 99.55 $ 95.02
2006 Incentive Plan | Restricted Stock    
Shares    
Beginning balance (in shares) 4,519,024 5,281,779
Granted (in shares) 912,625 1,248,066
Vested (in shares) (1,607,736) (1,626,636)
Forfeited/Repurchased (in shares) (131,618) (155,400)
Ending balance (in shares) 3,692,295 4,747,809
Weighted Average Grant Date Fair Value    
Beginning balance (in dollars per share) $ 83.37 $ 79.57
Granted (in dollars per share) 134.08 87.60
Vested (in dollars per share) 80.09 74.14
Forfeited/Repurchased (in dollars per share) 177.11 80.01
Ending balance (in dollars per share) $ 97.24 $ 83.53
v3.24.2.u1
EMPLOYEE BENEFIT PLANS - Activity in Liability Classified Shares (Details) - USD ($)
$ in Thousands
 3 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Awards Settleable in Shares    
Beginning balance $ 17,184 $ 11,971
Offer to grant 1,625 5,515
Share price determined-converted to cash payments (5) (3)
Share price determined-transferred to equity grants (7,265) 6,172
Forfeited (224) 0
Ending balance $ 11,315 $ 11,311
v3.24.2.u1
STOCKHOLDERS' EQUITY (Details)
 3 Months Ended
Jun. 30, 2024
USD ($)
class_of_stock
vote
shares
Jun. 30, 2023
USD ($)
shares
Mar. 31, 2024
shares
Mar. 31, 2023
shares
Apr. 30, 2022
USD ($)
Class of Stock [Line Items]          
Number of classes of common stock | class_of_stock 2        
Conversion ratio of common stock 1        
Dividends outstanding | $ $ 15,840,000 $ 14,673,000      
Authorized amount to be repurchased | $         $ 500,000,000
Stock repurchase program, remaining authorized repurchase amount | $ $ 457,700,000        
Class A Common Stock          
Class of Stock [Line Items]          
Common stock voting rights, number of votes | vote 1        
Shares issued of common stock (in shares) 53,053,499   52,348,511    
Number of common shares outstanding (in shares) 53,053,499   52,348,511    
Class A Common Stock | Common stock          
Class of Stock [Line Items]          
Shares issued to non-employee directors (in shares) 5,248        
Conversion of Class B to Class A shares (in shares) 608,084 651,068      
Number of common shares outstanding (in shares) 53,053,499 51,296,601 52,348,511 50,638,924  
Class B Common Stock          
Class of Stock [Line Items]          
Common stock voting rights, number of votes | vote 10        
Shares issued of common stock (in shares) 16,456,793   16,746,676    
Number of common shares outstanding (in shares) 16,456,793   16,746,676    
Outstanding common stock repurchased and retired (in shares) 672,581,000 507,511,000      
Shares repurchased and retired, value | $ $ 100,993,000 $ 69,766,000      
Class B Common Stock | Common stock          
Class of Stock [Line Items]          
Number of common shares outstanding (in shares) 16,456,793 18,035,565 16,746,676 18,048,345  
Investor | Class A Common Stock          
Class of Stock [Line Items]          
Shares issued of common stock (in shares) 52,983,316,000 51,231,666,000      
HL Holders | Class B Common Stock          
Class of Stock [Line Items]          
Number of common shares outstanding (in shares) 16,456,793,000 18,035,565,000      
Director | Class A Common Stock          
Class of Stock [Line Items]          
Shares issued to non-employee directors (in shares) 5,248 6,609      
Shares issued of common stock (in shares) 70,183,000 64,935,000      
v3.24.2.u1
LEASES - Narrative (Details)
$ in Millions
Jun. 30, 2024
USD ($)
Lessee, Lease, Description [Line Items]  
Lease not yet commenced, amount $ 1.8
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 15 years
v3.24.2.u1
LEASES - Maturity of Existing Operating Leases (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Mar. 31, 2024
Leases [Abstract]    
Remaining 2025 $ 30,028  
2026 54,061  
2027 53,977  
2028 53,397  
2029 52,705  
Thereafter 342,450  
Total 586,618  
Less: present value discount (151,418)  
Operating lease liabilities $ 435,200 $ 415,412
v3.24.2.u1
LEASES - Lease Cost (Details) - USD ($)
$ in Thousands
 3 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Leases [Abstract]    
Operating lease expense $ 15,033 $ 12,423
Variable lease expense 4,622 5,237
Short-term lease expense 54 46
Less: Sublease income (425) (303)
Total lease costs $ 19,284 $ 17,403
v3.24.2.u1
LEASES - Weighted Average Details (Details)
Jun. 30, 2024
Jun. 30, 2023
Leases [Abstract]    
Weighted-average remaining lease term (years) 12 years 12 years
Weighted-average discount rate 5.40% 5.00%
v3.24.2.u1
LEASES - Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
 3 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Leases [Abstract]    
Cash paid for amounts included in the measurement of Operating lease liabilities $ 17,698 $ 10,251
Operating lease right-of-use assets obtained in exchange of Operating lease liabilities 24,348 6,750
Change in Operating lease right-of-use assets due to remeasurement $ 1,416 $ 46,168
v3.24.2.u1
SEGMENT AND GEOGRAPHICAL INFORMATION - Revenue and Assets by Segment (Details) - USD ($)
$ in Thousands
 3 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Mar. 31, 2024
Segment Reporting Information [Line Items]      
Revenues $ 513,609 $ 415,829  
Segment profit 157,212 120,115  
Corporate expenses 418,041 342,482  
Other income, net (4,306) (3,005)  
Income before provision for income taxes 99,874 76,352  
Total assets 2,942,916   $ 3,170,759
Operating Segments      
Segment Reporting Information [Line Items]      
Total assets 1,509,890   1,510,244
Operating Segments | Corporate Finance      
Segment Reporting Information [Line Items]      
Revenues 328,417 227,051  
Segment profit 100,422 61,622  
Total assets 1,144,817   1,147,432
Operating Segments | Financial Restructuring      
Segment Reporting Information [Line Items]      
Revenues 117,422 123,368  
Segment profit 39,149 43,594  
Total assets 197,444   192,185
Operating Segments | Financial Advisory Services      
Segment Reporting Information [Line Items]      
Revenues 67,770 65,410  
Segment profit 17,641 14,899  
Total assets 167,629   170,627
Corporate, Non-Segment      
Segment Reporting Information [Line Items]      
Corporate expenses 61,644 46,768  
Total assets 1,433,026   $ 1,660,515
Segment Reconciling Items      
Segment Reporting Information [Line Items]      
Other income, net $ (4,306) $ (3,005)  
v3.24.2.u1
SEGMENT AND GEOGRAPHICAL INFORMATION - Revenue and Assets by Geographical Areas (Details) - USD ($)
$ in Thousands
 3 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Mar. 31, 2024
Revenues from External Customers and Long-Lived Assets [Line Items]      
Income before provision for income taxes $ 99,874 $ 76,352  
Revenues 513,609 415,829  
Total assets 2,942,916   $ 3,170,759
United States      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Income before provision for income taxes 61,058 52,402  
Revenues 366,559 327,736  
Total assets 1,992,499   1,957,454
International      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Income before provision for income taxes 38,816 23,950  
Revenues 147,050 $ 88,093  
Total assets $ 950,417   $ 1,213,305
v3.24.2.u1
SUBSEQUENT EVENTS (Details)
Jul. 25, 2024
$ / shares
Subsequent Event  
Subsequent Event [Line Items]  
Common stock, dividends, per share, declared (in dollars per share) $ 0.57