# HOULIHAN LOKEY CAPITAL, INC. X-17A-5 (2026-05-22) — Broker-dealer annual report

- Company: HOULIHAN LOKEY CAPITAL, INC.
- Form: X-17A-5
- Filed: 2026-05-22
- Period: 2026-03-31
- Accession: 0000789994-26-000007
- CIK: 789994
- File #: 8-35643
- Type: Broker-dealer
- Material weakness: No
- Auditor: KPMG LLP
- Auditor location: Los Angeles, CA
- Contact: Ed Taniguchi
- Phone: 3107885397
- Signed by: Ed Taniguchi (Chief Financial Officer)

Original filing: https://www.sec.gov/Archives/edgar/data/789994/000078999426000007/FY26Exemption1.pdf

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# Houlihan Lokey Capital, Inc.

(SEC I.D. NO. 8-35643)

## Financial Statement

## As of March 31, 2026

(With Report of Independent Registered Public Accounting Firm Thereon)

Filed pursuant to Rule 17a-5(e)(3) as a PUBLIC DOCUMENT.

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### HOULIHAN LOKEY CAPITAL, INC. TABLE OF CONTENTS

| Report of Independent Registered Public Accounting Firm |  |
|---------------------------------------------------------|--|
| Statement of Financial Condition as of March 31, 2026   |  |
| Notes to Financial Statement                            |  |

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![](_page_2_Picture_0.jpeg)

KPMG LLP 633 West 5th Street Suite 4700 Los Angeles, CA 90071

### **Report of Independent Registered Public Accounting Firm**

To the Stockholder and Board of Directors Houlihan Lokey Capital, Inc.:

### *Opinion on the Financial Statement*

We have audited the accompanying statement of financial condition of Houlihan Lokey Capital, Inc. (the Company) as of March 31, 2026, and the related notes (collectively, the financial statement). In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company as of March 31, 2026, in conformity with U.S. generally accepted accounting principles.

### *Basis for Opinion*

This financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on this financial statement based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statement. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statement. We believe that our audit provides a reasonable basis for our opinion.

![](_page_2_Picture_9.jpeg)

We have served as the Company's auditor since 2006.

Los Angeles, California May 22, 2026

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| @@2A@                                                                  |          |
| .@5.;10.@52>B6C.92;A@                                                  | <br>     |
| !;C2@A:2;A@20B?6A62@                                                   | <br>     |
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| (2026C./923?<:.33696.A2%<A2                                            | <br>     |
| 232??21A.E2@%<A2                                                       | <br>     |
| &A52?.@@2A@                                                            | <br>     |
| *<A.9.@@2A@                                                            | <br>     |
|                                                                        |          |
| #6./696A62@.;1)A<085<912?@>B6AF                                        |          |
| #6./696A62@                                                            |          |
| 232??216;0<:2                                                          | <br>     |
| *<A.996./696A62@                                                       | <br>     |
|                                                                        |          |
| <::6A:2;A@.;10<;A6;42;062@%<A2                                         |          |
|                                                                        |          |
| )A<085<912?@2>B6AF                                                     |          |
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| 116A6<;.9=.61<br>6;0.=6A.9                                             | <br>     |
| (2A.6;212.?;6;4@                                                       | <br>     |
| *<A.9@A<085<912?@2>B6AF                                                | <br>     |
| *<A.996./696A62@.;1@A<085<912?@2>B6AF                                  | <br>     |

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### HOULIHAN LOKEY CAPITAL, INC. NOTES TO FINANCIAL STATEMENT (SEC I.D. NO. 8-35643)

### Note 1 - Organization and Description of Business

### Nature of Operations

Houlihan Lokey Capital, Inc. (the Company) is a California corporation registered as a broker under Section 15(b) of the Securities Exchange Act of 1934. The Company is a wholly owned subsidiary of Houlihan Lokey, Inc., a California corporation (the Parent).

The Company offers financial services and financial advice to a broad clientele located throughout the United States of America, Europe, and Canada. Together, the Company, its Parent's other subsidiaries form an organization that provides financial services to meet a wide variety of client needs. Specifically, the Company directs its services to the following areas:

Corporate Finance ("CF") provides general financial 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 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 time an engagement letter is signed ("Retainer Fees") and, in some cases, fees paid during the course of the engagement ("Progress Fees").

Financial Restructuring ("FR") provides advice to debtors, creditors and other parties in connection with recapitalization/deleveraging transactions implemented through bankruptcy and out-of-court exchanges, consent solicitations or other mechanisms, as well as in distressed mergers and capital markets activities. As part of these engagements, our FR business segment offers a wide range of advisory services to our clients, including, negotiation, and confirmation of plans of reorganization; structuring and analysis of exchange offers; liability management transactions; corporate vability assessment; dispute resolution and procuring debtor-in-possession financing. The majority of our FR revenues consists of Completion Fees. 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 Retainer Fees and/or Progress Fees.

Financial and Valuation Advisory ("FVA") provides financial advisory and valuation services with respect to companies, debt and equity interests (including complex illiquid investments), and other types of assess and liabilities; fairness opinions in connection with mergers 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, trustes. Also, our FVA business segment provides dispute resolution services to clients, for which fees are usually based on the hourly rates of our financial professionals. The majority of our FVA revenues consists of Retainer Fees, Progress Fees and/or Completion Fees.

The Company exclusively concentrates its efforts toward the earning of professional fees. The Company does not handle customer investment accounts.

### Note 2 - Summary of Significant Accounting Policies

### Basis of Presentation

The accompanying financial statement has been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and in the format prescribed by Rule 17a-5 under the Securities Exchange Act of 1934 for brokers in securities.

### Use of Estimates

The preparation of the financial statement in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assess and liabilities at the financial statement. Management estimates and assumptions also affect the 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 the current economic environment, which management believes to be reasonable under the circumstances. Management adjusts such estimates when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Significant items subject to such estimates and assumptions include the allowance for credit losses; income tax uncertainties; and other contingencies.

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{8}------------------------------------------------

### HOULIHAN LOKEY CAPITAL, INC. NOTES TO FINANCIAL STATEMENT (CONTINUED) (SEC I.D. NO. 8-35643)

### Note 6 - Fair Value Measurements

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

|                                    | March 31, 2026 |        |  |                        |  |           |  |               |
|------------------------------------|----------------|--------|--|------------------------|--|-----------|--|---------------|
|                                    |                | Levell |  | Level II               |  | Level III |  | Total         |
| Corporate debt securities          |                |        |  | \$ 18.793.547 \$ = = = |  |           |  | \$ 18.793.547 |
| U.S. treasury securities           |                |        |  | 32,320,715             |  |           |  | 32,320,715    |
| Total asset measured at fair value |                |        |  | \$ 51,114,262 \$       |  |           |  | \$ 51.114.262 |

### Note 7 - Allowance for Credit Losses

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

|                | March 31, 2026         |  |                              |                           |
|----------------|------------------------|--|------------------------------|---------------------------|
|                | Accounts<br>Receivable |  | Unbilled Work<br>in Progress |                           |
| Ending balance |                        |  |                              | \$ 3,724,751 \$ 3,840,637 |

### Note 8 - Commitments and Contingencies

The Company has been named in various legal actions arising in the normal course of business. In 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.

### Note 9 - Income Taxes

Deferred income taxes arise principally from temporary differences between book and tax recognition of income, and losses relating to financing and other transactions. Deferred income taxes as of March 31, 2026 comprise the following:

|                                             |         | March 31, 2026 |
|---------------------------------------------|---------|----------------|
| Deferred tax assets:                        |         |                |
| Deferred compensation expense/accrued bonus | ಲ್ಲಿ ಸಾ | 110,979,797    |
| Operating lease liabilities                 |         | 1,115,504      |
| Other, net                                  |         | 1,448,038      |
| Total deferred tax assets                   |         | 113,543,339    |
| Deferred tax liabilities:                   |         |                |
| Operating lease right-of-use assets         |         | (1,048,004)    |
| Other, net                                  |         | (205,610)      |
| Total deferred tax liabilities              |         | (1,253,614)    |
| Net deferred tax assets                     | S       | 112,289,725    |

Houlihan Lokey Inc. and its subsidiaries, including the Company, file a consolidated federal income tax return, as well as consolidated and separate returns in state and local jurisdictions. As of March 31, 2026 all of the federal necessed income tax returns filed since 2023 by the Parent, which include the Company as a subsidiary, are still subject to adjustment upon audit. The Parent files combined income tax returns in many states and the Company also files separate income tax returns in many states, which are also open to audit.

### Note 10 - Reserve Requirements for Brokers or Dealers

The Company does not carry the accounts of its customers and, accordingly, is exempt from the 15c3-3 under the Securities Exchange Act of 1934 based on section (k)(2)(2)(2) and the Company's other business activities contemplated Footnote 74 of the SEC Release No 34-70073 adopting amendments to 17 C.F.R. Section 240.17a-5. Because of such exemption, the Company is not required to prepare a determination of reserve requirements for brokers or dealers.

{9}------------------------------------------------

### HOULIHAN LOKEY CAPITAL, INC. NOTES TO FINANCIAL STATEMENT (CONTINUED) (SEC I.D. NO. 8-35643)

### Note 11 - Net Capital Requirements

The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (Rule 15c3-1), which requires the maintenance of minimum net capital. As of March 31, 2026, the Company had net capital of \$168.2 million, which was \$168.0 million in excess of its required net capital of \$250,000.


Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.