Houlihan Lokey, Inc (NYSE: HLI) Q3 2026 Earnings Call dated Jan. 28, 2026
Corporate Participants:
Scott Adelson — Chief Executive Officer and Director
Lindsey Alley — Chief Financial Officer and Managing Director
Christopher Crain — Managing Director, General Counsel, and Secretary
Analysts:
Brennan Hawken — Analyst
James Yaro — Analyst
Devin Ryan — Analyst
Brendan O’Brien — Analyst
Ryan Kenny — Analyst
Alexander Bond — Analyst
Nathan Stein — Analyst
Presentation:
operator
Good day ladies and gentlemen. Thank you for standing by. Welcome to the Houlihan Loki’s third quarter fiscal year 2026 earnings conference call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. Please note that this conference call is being recorded today, January 28, 2026. I will now turn the call over to the company.
Christopher Crain — Managing Director, General Counsel, and Secretary
Thank you Operator and hello everyone. By now everyone should have access to our third quarter fiscal year 2026 earnings release which can be found on the Houlihan loki website@www.hl.com in the investor Relations section.
Before we begin our formal remarks, we need to remind everyone that the discussion today will include forward looking statements. These forward looking statements, which are usually identified by use of words such as will, expect, anticipate, should or other similar phrases, are not guarantees of future performance. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from from what we expect and therefore you should exercise caution when interpreting and relying on them. We refer all of you to our recent SEC filings for a more detailed discussion of the risks that could impact our future operating results and financial condition.
We encourage investors to review our regulatory filings, including the Form 10Q for the quarter ended December 31, 2025 when it is filed with the SEC. During today’s call we will discuss non GAAP financial measures which we believe can be useful in evaluating the Company’s financial performance. These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with gaap. A reconciliation of these measures to the most directly comparable GAAP measures is available in our earnings release and our investor presentation on the hl.com website. Hosting the Call Today we have Scott Adelson, Houlihan Lokey’s Chief Executive Officer and Lindsey Alley, Chief Financial Officer.
They will provide some opening remarks and then we will open the call to questions. With that, I’ll turn the call over to Scott.
Scott Adelson — Chief Executive Officer and Director
Thank you Christopher welcome everyone to our third quarter fiscal 2026 earnings call. We ended the quarter with revenues of 717 million and adjusted earnings per share of $1.94. Revenues were up 13% and adjusted earnings per share were up 18% compared to the same period last year. We are pleased with our results for the quarter as well as our performance year to date. We continue to benefit from improving investor sentiment, partially fueled by stronger company performance and expectations of declining interest rates, both of which should continue to further the M and A recovery.
As a result, private Equity activity has accelerated with an increasing number of portfolio companies choosing to explore the liquidity. Looking at each of our businesses, Corporate Finance produced $474 million of revenue for the quarter, representing a 12% increase over last year’s third quarter. Both average fee and new business activity continue to move upward. We enter our last fiscal quarter with positive inflection in the activity levels that increase our optimism for our fiscal year 2027. While we have anticipated and reported consistent progress in corporate finance throughout the year, our current visibility into both deal activity and backlog gives us more confidence in fiscal 2027 compared to our assessment a quarter ago.
Financial restructuring produced $156 million of revenue for the third quarter, a 19% increase versus the same period last year. We performed better than anticipated during the quarter due to accelerated transaction timelines that move several of our deals forward into the third quarter. Accordingly, we expect our third quarter restructuring results to be stronger than our fourth quarter results, reversing our typical seasonal pattern. Looking ahead to fiscal 2027, we expect restructuring to face some revenue pressures as it adjusts to an improving market environment. That said, recent geopolitical events introduce a new variable that could potentially drive restructuring activity levels higher.
Financial and valuation advisory produced $87 million of revenue for the third quarter, a 6% increase versus the third quarter last year. Like corporate finance, this business continues to benefit from an improving MA climate and continued strong capital markets with solid new business generation heading into our fourth quarter. We hired six new managing directors in the third quarter and in early January we closed the acquisition of the real estate advisory business of Melham Capital, bolstering our capital solutions capabilities. We gained 11 new colleagues between Munich and London and our new partners are off to a great start.
In addition, last week we announced an agreement for a controlling interest in Odera Partners, a prominent French corporate finance firm. The deal will significantly enhance our footprint in France to around 80 colleagues, making it one of our largest offices in Europe. This transaction is expected to close in our fourth quarter. We are thrilled with these transactions which reflect our commitment to build our capabilities in the right places, at the right time and most importantly, with the right partners. Our culture grows even stronger when we welcome new colleagues with the same vision and commitment to our clients success.
These two deals continue to strengthen our business in Europe, which as we have said before, has the potential to be the size of our US corporate finance business. Finally, as we look back at 2025, we are honored once again to be the number one most active M and A investment bank in the world and also once again the number one most active financial restructuring investment bank in the world. We congratulate our colleagues around the globe for the dedication that produced these distinctions. As we look beyond our fiscal fourth quarter, our outlook for the future is positive.
The expansion of our workforce across geography, industry and product will continue. Our relentless focus on independent, high quality advice to our clients will continue and our drive to create value for our shareholders will continue. We thank our employees for their commitment and our shareholders for their support. And with that I will turn it over to Lindsey.
Lindsey Alley — Chief Financial Officer and Managing Director
Thank you, Scott Revenues in Corporate finance were 474 million for the quarter, up 12% compared to the same period last year. It closed 177 transactions this quarter up from 170 in the same period last year, and our average transaction fee on closed deals increased.
Financial restructuring revenues were 156 million for the quarter, a 19% increase versus the same period last year. We closed 41 transactions this quarter, consistent with the same quarter last year and our average transaction fee on closed deals increased. We benefited from the closing of several transactions that were expected to close in our fiscal fourth quarter, resulting in our second strongest third quarter ever. As a result, we expect that our fourth quarter will look more like the first two quarters of our fiscal year and won’t have the same typical seasonality associated with that quarter. For financial and valuation advisory revenues were 87 million for the quarter, a 6% increase from the same period last year.
We had 1,103 fee events during the quarter compared to 1,005 in the same period last year, a 10% increase. Turning to expenses, our adjusted compensation expenses were $441 million for the quarter versus $390 million for the same period last year. Our only adjustment was $18 million for deferred retention payments related to certain acquisitions. Our adjusted compensation expense ratio for the third quarter in both fiscal 2026 and 2025 was 61.5%. We expect to maintain our long term target of 61.5% for the adjusted compensation expense ratio for the balance of the year. Our adjusted non compensation expense ratio for the third quarter was 13.1% consistent with the same period last year.
For the quarter we adjusted out of non compensation expenses, 2.2 million in integration and acquisition related costs, 1.3 million in non cash acquisition related amortization, and 600,000 pertaining to professional fees associated with streamlining our global organizational structure, also referred to as Project solow. Looking at year to date performance, adjusted non Compensation expenses increased 11% versus the same year to date period last year. We expect the fiscal fourth quarter year over year growth in adjusted non compensation expenses to be consistent with what we have experienced year to date. Our adjusted effective tax rate for the third quarter was 30.6% compared to 33.3% for the same quarter last year.
The decrease was primarily a result of decreased state taxes and decreased nondeductible expenses. For the quarter we adjusted out of our effective tax rate the effects of non deductible acquisition related costs. We expect the French transaction to close in the next couple of weeks. This transaction is structured as a combination between our French operations and ODAN and will result in Houleh and Loki owning 51% of the combined business and the previous shareholders of Odair owning 49%. As with many business combinations, we have created mechanisms that allow us to increase our ownership over time and under certain circumstances.
Turning to the balance sheet, we ended the quarter with approximately $1.2 billion of cash and investments. Also in our third quarter, we repurchased approximately 418,000 shares as part of our share repurchase program. We will continue to evaluate balance sheet flexibility for acquisitions versus excess cash for share repurchases. With that operator, we can open the line for questions.
operator
Thank you. We will now begin the question and answer session. To ask a question, you may press Star then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys.
If at any time your question has been addressed and you would like to withdraw your question, please press Star then two. At this time we will pause for just a moment to assemble our roster. And the first question today will come from Brennan Hawking with BMO Capital Markets. Please go ahead.
Brennan Hawken — Analyst
Hey, good afternoon, Scott. Good afternoon, Lindsey. I hope you guys are doing well. Would love to drill down on the outlook for restructuring so loud and clear on the seasonality. Not going to see the similar typical strength in the fiscal fourth quarter. But more importantly the outlook.
You guys have been early on in saying the activity was slowing as the capital markets activity and Corp pin has improved. Sounds like that remains the case. Can you maybe help us bridge the gap in between increasing concerns around the private credit markets? You know, the press attention on some of those issues recently and then the outlook for the restructuring activity as well.
Scott Adelson — Chief Executive Officer and Director
Yeah, happy to do that. If you look at structurally what we’ve been saying is that the market is getting better for M and A capital is very plentiful, interest rates are likely declining and you put those all together, you’re likely to see declining activity levels in restructuring, just structural.
Don’t disagree with you that there are, there are always all over the world pockets of opportunities, whether that is in industries, whether that’s in geographies, whether that is due to geopolitical events that creates opportunity for restructuring. The visibility of that and what we’re talking about, it’s not clear enough that it is showing up in consistent new opportunities. I don’t disagree with you at all that there is a very good chance that a number of those elements that we just discussed, some of them will occur, whether it be a sector or geography that will cause new opportunities to arise.
Brennan Hawken — Analyst
Okay, got it. Thanks for that. And then corporate finance. So the revenues picked up a bit quarter over quarter, but not as much as we typically see in the December quarter. So curious about the expectations for the end of the fiscal year. On the corporate finance side, I believe you’re commentary on the lack of seasonality was focused on restructuring. So just want to make sure I heard that right. And then it also sounds like the outlook is improving for next fiscal year. You know, could you maybe help us understand what if there’s like a comparable period that we should think about when we’re considering magnitude of potential growth that seems to be shaping up here as we think about next fiscal year.
Scott Adelson — Chief Executive Officer and Director
So yes, you heard that correctly. That was in relation to restructuring, not the corporate finance. Corporate finance is continuing to get stronger and stronger. As I said in my prepared statements, the MA activity is absolutely increasing and even more so on the private equity side than we have seen in recent history. And we expect that to continue and have good visibility that that is going to continue for a while.
Lindsey Alley — Chief Financial Officer and Managing Director
And yeah, I mean with respect to Q4, corporate finance has seen quite solid growth year to date and that’s probably not a bad proxy for Q4.
And I’d say that as Scott said, the activity levels, which are revenues six months from now, nine months from now, continue to give us comfort in our fiscal 27 estimates and how everyone’s thinking about the business.
Brennan Hawken — Analyst
Great. Thanks so much for taking my questions.
Scott Adelson — Chief Executive Officer and Director
Always our pleasure.
operator
The next question will come from James Yarrow with Goldman Sachs. Please go ahead.
James Yaro — Analyst
Thanks and thanks for taking the questions. And good afternoon. Just quickly, just quickly. On corporate finance, I just want to dig in a little bit on the US vs non U. S outlook and obviously I understand that you have a little bit more idiosyncratic growth in Europe given for example the two acquisitions you just announced and scaling from a lower base there.
But maybe you could just talk a little bit about compare and contrast the growth potential of those two regions.
Scott Adelson — Chief Executive Officer and Director
Yeah. Happy. Obviously, the US Continues to be both for us and for the market overall, the largest region, and that therefore is still the most important market. Having said that, in our European business is growing incredibly well. We really believe we are offering a truly differentiated product in Europe, and the market is rewarding us for that. And we continue to feel very good about the traction that we’re getting in Europe.
James Yaro — Analyst
Great. And so maybe tying that in with the acquisitions.
I’d just love to get your sense, if you take a step back on just the overall strategy for Europe and how these two acquisitions fit into completing the mosaic for your European business.
Scott Adelson — Chief Executive Officer and Director
Yeah, happy to do that. I mean, I think that obviously we have had a. A presence in France for a period of time, but it was a very relatively small business relative to a number of other countries in Europe. And at the same time, it’s one of the most important markets in Europe. It’s not lost on us that it is the headquarters of a couple of our sizable competitors, and we had to wait until we found the right partners to really aggressively grow that business.
And we feel incredibly good with the decision we’ve made.
Lindsey Alley — Chief Financial Officer and Managing Director
And I’d say that the acquisition of France obviously brings, or the combination of France brings, revenues along with it, but it also lifts kind of all the boats in Europe. I mean, being underweighted in that country had an impact across the UK and Europe for us. And I’d say that now that we have a solution, everyone is going to benefit from it. And in the Hula and Loki umbrella, in Emea,
Scott Adelson — Chief Executive Officer and Director
I agree with that completely. And then on the other side, the within capital solutions, as we have said before, we’re probably underweighted on the real estate side, and this is an effort to really continue to grow.
That underweighting on the real estate side, as always, reduce the underweighting would be the better way to say that no double negatives.
James Yaro — Analyst
Okay, that’s perfect. As always, super clear and helpful. Thank you so much.
Scott Adelson — Chief Executive Officer and Director
Great. Thanks, James.
operator
The next question will come from Devin Ryan with Citizens. Please go ahead.
Devin Ryan — Analyst
Great. Hi, Scott. Hi, Lindsey. How are you?
Scott Adelson — Chief Executive Officer and Director
Hey, Devin.
Lindsey Alley — Chief Financial Officer and Managing Director
Thanks.
Devin Ryan — Analyst
Want to ask a question? Just on sponsor engagement and nice to hear some of the improvement you’re seeing and just would be good to get a little bit of better sense of kind of the rate of change that you’re seeing with sponsors.
And obviously, you know, a lot of pressure, I think, on sponsors to return capital, obviously still record dry powder to deploy. So, you know, are you seeing kind of a steady build there or is it something maybe better than that, just given kind of those pressures? And is it broad based across verticals or is it targeted to certain verticals? Just love a little more context on kind of the trajectory that you’re seeing there. Thanks.
Scott Adelson — Chief Executive Officer and Director
Yeah, happy to do that. I mean, what we’ve been saying for a while is it’s been getting better quarter by quarter and that has been very consistent with some bumps along the road, usually due to external factors, geopolitical mostly that have caused that.
And really for the last couple of quarters we’ve really been saying it’s been picking up quite a bit and it’s really been after the beginning of the year, picking, continuing to pick up even more. And so it’s at an accelerating rate is what it feels like for new opportunities.
Lindsey Alley — Chief Financial Officer and Managing Director
And we’ve said this to individuals on, you know, either investor calls or analyst calls. But you know, there’s a couple of major inflection points during the calendar year in the middle market. One of them is after Labor Day and one of them is after New Year’s. And both of those periods of time were quite solid and strong for us and probably exceeded expectations.
And I think that’s a little bit why you’re hearing the commentary that we’re saying when we talk about activity levels increasing. And in terms of your question of sectors, it is really broad and across sectors and I would say that if anything it’s the sectors that under from an increased standpoint, the ones that had underperformed have come back even stronger. But it is very much across support.
Devin Ryan — Analyst
Got it. Okay, appreciate that. And then just want to come back to kind of a follow up of some of the discussion you were just having in those questions.
As we kind of think about some of the investments the firm has made over the past five, six years. I mean you’ve obviously built out quite a bit outside the US a lot of kind of sector specific M and A beefing up capital solutions. So kind of the capabilities are broader, they’re deeper. When you think about kind of the white space at the firm today, where do still see the biggest opportunities? Like if I look at a heat map from external data, which I know is not perfect, it looks like maybe there’s a little bit of room in health care and energy, just for example, but would love to hear from you kind of where you feel like there’s still nice white space and where you could just maybe add a little bit of resource and get some nice network effects on that.
Scott Adelson — Chief Executive Officer and Director
Yeah, I mean, I am A very strong believer that it is every. We have so much opportunity. I know that you want me to be more specific than that, but it is in every sector. We have really, really meaningful room to grow. And we talk about it. We have around 200 subsectors today and that is not built out all over the world even remotely. And it is also not. 200 is nowhere near saturation of subsectors. So that’s just on the industry side. And then obviously on the product side, you’re seeing us continue to build out with the example of what we’ve done in Germany and the UK and that Capital Solutions will continue to have build out and in capabilities well around the world.
And then obviously we have our other product lines as well and we have geographies. I mean it is, there’s a tremendous amount of white space out there. Our map, our page is quite white.
Devin Ryan — Analyst
Okay, well, good to hear. Thanks so much, guys. Appreciate it.
Scott Adelson — Chief Executive Officer and Director
Thanks.
operator
The next question will come from Brendan o’ Brien with Wolff Research. Please go ahead.
Brendan O’Brien — Analyst
Good afternoon and thanks for taking my questions. Hi. Just wanted to follow up on the restructuring outlook. I know there’s some uncertainty still, but just given the longer lead time for the business, you should have a pretty good baseline for how revenues will track at least early next year.
And so I was just hoping you can put some guardrails around how we should be thinking about the magnitude of decline in this business potentially just given it does tend to see higher highs, higher floors as you continue to progress through time.
Lindsey Alley — Chief Financial Officer and Managing Director
Yeah, I mean, I’d say we do have decent visibility looking forward in restructuring. We don’t generally share that information, but I think that, you know, you know, it’s kind of like, it’s kind of like anything else with respect to cyclicality. There are going to be ebbs and flows. We didn’t know sitting here before the last peak what it was going to look like.
And we don’t know what the next couple of years is going to look like, but we’re in an ebb period. Having said that, I’d say that we still believe that there are, that is a true global business for us. It is highly diversified and at any point, whether it’s a geography, an industry or a specific product could trigger restructuring growth. And so we’re quite comfortable with our position in restructuring over the next 10 to 20 years. We’re just in an ebb period right now. And what the sort of ebb looks like I think is anyone’s guess.
But I don’t. We’re certainly not sitting Here concerned about the magnitude of the decline. We don’t think about it that way.
Brendan O’Brien — Analyst
Helpful color. Thank you for taking the question and I guess for my follow up. Just want to touch on capital return. You know, understand your preference for maintaining enough cash to do acquisitions as you executed this quarter. But just given revenue should only accelerate from here and you already have a fairly strong cash position at least prepaying out these deals. I just want to get an update as to how you’re thinking about capital management at this juncture and also if we can get an update on what your acquisition pipeline looks like at the moment.
Lindsey Alley — Chief Financial Officer and Managing Director
So I’ll let Scott handle the acquisition pipeline. I think with respect to capital deployment, it really hasn’t changed. We have, as I think everyone knows, after the last couple quarters we have started to repurchase some shares. I think we will continue so long as the economy continues to perform well, we will continue to take a look at whether or not it makes sense to repurchase shares going forward in relatively smaller increments. And the reason we do it that way is because our pipeline, which Scott will talk about, is quite strong and we want to be, want to remain flexible in terms of being able to do acquisitions for cash.
And so you know, we’ve said before our strong preference is to put money to work, excess cash to work through, strategic acquisitions that make sense for us followed by dividends and share repurchases. And that really hasn’t changed for us. And Scott will talk a little bit about the pipeline.
Scott Adelson — Chief Executive Officer and Director
Happy to do that. As I said before, we’ve been very fortunate. Our pipeline is very strong. I think these two deals are an indication. But they are backed up by a number of other opportunities that are coming through the pipe. And I wish probably even more than all of you do that I could time them all perfectly to roll quarter by quarter.
I don’t get the right to do that. But they are, they are lined up and it’s fair to say we have, we have more that we have planned to do over time.
Brendan O’Brien — Analyst
Great. Thank you for taking my questions.
Scott Adelson — Chief Executive Officer and Director
Our pleasure.
operator
The next question will come from Ryan Kenny with Morgan Stanley. Please go ahead.
Ryan Kenny — Analyst
Thanks for taking my questions. Wondering if you could give some more color on the non comp expenses. It looks like it. And communication spend and professional fees have been a bit elevated. So anything that we should think about in terms of puts and takes in non comp in the quarter and as we look forward into fiscal 27,
Lindsey Alley — Chief Financial Officer and Managing Director
I’d say no puts and takes specifically in the quarter to mention it just A little bit higher than certainly the first couple quarters in terms of growth, I’d say for Q4, you know, the year to date growth for non comp is probably a decent proxy to what the Q4 is going to look like.
Probably a little bit higher than expected in terms of, in terms of rent, particularly in Europe and particularly around the acquisitions. You’re seeing a little bit of that, but other than that, not much to mention. And I’d say year to date as A proxy for Q4 growth is probably how I think about it.
Ryan Kenny — Analyst
Got it, thanks. And then
Lindsey Alley — Chief Financial Officer and Managing Director
fiscal 27, same as I mentioned before, kind of high single digits, which is kind of how we’re thinking about non comp.
Ryan Kenny — Analyst
All right, great. And then you announced the Data bank product in November. Can you give more color on what the strategy is with Data bank and is it something they are charging for? And how should we expect that in general your data strategy will evolve over time?
Scott Adelson — Chief Executive Officer and Director
Yeah, I mean, I would love to spend the next hour talking about that.
Lindsey would remind me that this is a small part of our business, but it is a, it certainly is an important indicator of what’s to come. And I think the fact that we have a tremendous amount of what we perceive to be very valuable data and the, the marketplace seems, seems to be indicating that as well. It’s super early days for us right now that where some of that is available to some existing clients, it is, there’s a technological front end to making it available and things like that for other people that is in the works.
But that, as I have stated many times before, the ability to monetize some of our proprietary data is something that is certainly top of mind to us.
Ryan Kenny — Analyst
Thank you.
Scott Adelson — Chief Executive Officer and Director
Sure thing.
operator
The next question will come from Alex Bond with kbw. Please go ahead.
Alexander Bond — Analyst
Hey everyone, Good afternoon. Just wanted to drill down on the corporate finance business a little bit more. So it sounds like the outlook for fiscal 27 remains upbeat, which is great. But just curious if you’ve seen activity levels impacted at all really by recent geopolitical happenings or I guess a heightened sense of geopolitical uncertainty over the last couple weeks or have clients really been willing to look through these issues and are now maybe just more accustomed to higher uncertainty levels.
So any color there would be great.
Scott Adelson — Chief Executive Officer and Director
Yeah, happy to do that. And I think that ties well to what Lindsey was talking about. After the kind of inflection points and most recently again at the beginning of the year, it really is. We recognize there is noise right around the world and the people’s willingness and Ability to just look through that noise and just get on with business is stronger than it has ever been.
Alexander Bond — Analyst
Got it. That makes sense. And maybe just moving over to Capital Solutions, you know, you’ve touched on, you know, continuing to build out a few of the teams within the group as an area of, as an area of focus for you recently.
It’d be great if you can just go into maybe a little bit more detail there and maybe comment on what inning you think you might be in in terms of the build out for the Capital Solutions group. More broadly.
Scott Adelson — Chief Executive Officer and Director
We are still in very early innings on Capital Solutions. I mean pick your innings. We’re using a baseball analogy, but third inning, fourth inning, I mean very early. And that business is growing really nice on call with one of the heads of it before this. And the demand is really significant in terms of where it’s coming from.
It is literally all over the map from the traditional business to the secondaries, to directs and even primary. So it is on all fronts at this point.
Alexander Bond — Analyst
Got it. Great. Thank you both.
operator
The next question will come from Nathan Stein with Deutsche Bank. Please go ahead.
Nathan Stein — Analyst
Hey everyone, good evening. One of your larger peers suggested on their earnings call a couple weeks ago or in the third inning of the broader capital market cycle. So this comment constitutes more than just advisory revenues. But I think that caught some folks by surprise just because it’s. That still seems rather early.
Wanted to address, wanted to ask you guys your thoughts on that and what inning you see us being in for the broader, call it advisory cycle.
Scott Adelson — Chief Executive Officer and Director
Well, when you say advisory cycle means different things, different people. Right? Because we are bull bear. Business makes it mix. Makes that. When you just say advisory, I’m not quite talking about M A. Sorry, I mean M and A specific M and A specifically within the corporate finance.
Nathan Stein — Analyst
Got it. I do agree with that. I mean I agree it’s very early innings. I mean third inning is as good a number.
I mean I don’t think we’re in the first and we’re definitely not in the fifth or sixth. So yeah, third, fourth, something like that.
Lindsey Alley — Chief Financial Officer and Managing Director
Third. Actually third feels even better as I think about feels early. There’s an enormous amount of pent up demand. I mean all of that everybody has talked about and read about and everybody’s backlogs that have been on hold that still exists, it has been picking up. But here is still a tremendous amount of pent up demand out there and following up on that, if when I was looking at 2025 calendar year industry M and A data it shows, call it the Middle market and below.
Sigh. Feels stable, down slightly, up slightly, you know, versus the year before. So really just consistent with the broader messaging of almost everyone who’s just very excited about the upper middle market space and below. I just wanted to I guess gauge how you guys are thinking about like anything you guys can do to kind of capitalize on what could be like a really strong next couple years in terms of, you know, just being. Well, anyway, I think I’m just asking like, do you guys agree with that statement and how prepared do you feel for the cyclical rebound?
Scott Adelson — Chief Executive Officer and Director
Yeah, I do agree with this statement and I do think that many of the things that we have done are positioning ourselves to be continue to be even better positioned to take advantage of it.
And that is why we continue to take share in that marketplace and have for quite a while and intend to for quite a while, to the best of our ability. And that is through this continuing sub sectorization, just knowing more about sectors and doing more deals in sectors, giving us more knowledge than other people. The growth in our Capital solutions group, being able to provide a broader array of services and helping people evaluate how they want to seek liquidity. I mean the global reach continues to expand so that we are able to that much better be able to service our clients.
I mean, the list goes on and on, but I’m starting to sound just like a pitch on it. But the reality of the matter is that those are all things we are constantly working on. So yes, we do. We’re well positioned for it.
Lindsey Alley — Chief Financial Officer and Managing Director
And I would add that it’s not lost on us that large cap M and A has come out faster and more aggressively than middle market M and A. And frankly we don’t, for us, we don’t think about it that way. We are going to grow with the markets, but the sizzle is market share.
We believe we continue to take market share in the middle market every single year, regardless of whether the market is up or the market is down. We don’t think, we think it’s increasingly harder to compete with our business model, the size of our platform. And that’s the story. It’s not what the M and A markets are doing and whether they’re up or whether they’re down. And it doesn’t matter what the large cap, the space is doing and whether it’s up or whether it’s down. I mean, I think we are quite focused on the area that we’ve been focused on for decades.
And come rain or storm, we are going to continue to take market share and that story is not going to, not going to end.
Scott Adelson — Chief Executive Officer and Director
And, and just a reminder that that large cap is 1% of the volume. Right. I mean, it. 90, 98 to 99% of all the M and A volume around the world is.
Nathan Stein — Analyst
Okay. Hello, this
operator
Nathan, your line may be muted.
Nathan Stein — Analyst
No, that’s, that’s all. Those are my two questions. So I appreciate it. Thanks, guys.
Scott Adelson — Chief Executive Officer and Director
Thanks. Thanks. Appreciate it.
operator
This will conclude our question and answer session. I would like to turn the conference back over to Scott Adelson for any closing remarks.
Scott Adelson — Chief Executive Officer and Director
I want to thank you all for participating in our third quarter fiscal 2026 earnings call. We look forward to updating everyone on our progress when we discuss our fourth quarter and full year results for the fiscal 2026 this spring. Thank you.
operator
The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect. Sam.