Houlihan Lokey Inc. (NYSE: HLI), a leading global investment bank, posted strong financial results for the second quarter of fiscal 2025, with revenues surging 23% year-over-year to $575 million. Adjusted earnings per share (EPS) climbed 32% to $1.46, outpacing analysts' expectations.

The firm's performance was boosted by improvements in the mergers and acquisitions (M&A) markets, which benefited its Corporate Finance segment. Corporate Finance revenues soared 29% to $364 million, supported by increased deal activity and robust new business generation. While the closing period for transactions remains elongated compared to historical norms, Houlihan Lokey reported an increasing number of companies opting to go to market.

The Financial Restructuring segment also delivered a solid performance, with revenues rising 15% to $132 million. The company cited heightened restructuring activity driven by large-cap and middle-market opportunities, fueled by the lingering impacts of elevated interest rates and distressed balance sheets among corporates. Houlihan Lokey anticipates this trend to persist well into fiscal 2026, bolstering its restructuring business.

The Financial and Valuation Advisory segment recorded a 12% increase in revenues to $79 million, aided by growth in non-cyclical business lines and a resurgence in demand for M&A-related services as market conditions improve.