Awards of restricted shares and restricted stock units ("RSU"s) 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 2024. 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.

Excess tax benefits recognized during the three months ended December 31, 2025 and 2024 were immaterial. Excess tax benefits of $30,562 and $21,921 were recognized during the nine months ended December 31, 2025 and 2024, respectively, as a component of the provision for income taxes. The excess tax benefits recognized during the nine months ended December 31, 2025 and 2024 were primarily related to shares vested in May 2025 and May 2024, respectively.

We recognize compensation expense for all stock-based awards, including restricted stock and RSU awards, based on the estimate of fair value of the award at the grant date. The fair value of each restricted stock and RSU award is measured based on the closing stock price of our common stock on the date of grant. We account for forfeitures as they occur. The compensation expense is recognized using a straight-line basis over the requisite service periods of the awards, which is generally four years.

The share awards are generally 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 nine months ended December 31, 2025 and 2024 was as follows:


Unvested Share Awards	Shares	Weighted Average Grant Date Fair Value
Balance as of April 1, 2025	3,686,093	$	99.02
Granted	1,140,756	173.51
Vested	(1,598,346)	93.61
Forfeited/Repurchased	(190,475)	114.67
Balance as of December 31, 2025	3,038,028	$	128.85

Balance as of April 1, 2024	4,519,024	$	83.37
Granted	975,043	136.04
Vested	(1,619,144)	80.49
Forfeited/Repurchased	(208,753)	90.69
Balance at December 31, 2024	3,666,170	$	98.24


Awards Settleable in Shares	Fair Value
Balance as of April 1, 2025	$	10,342
Offer to grant	95
Converted to equity grants (unvested)	(3,127)
Share price determined-transferred to equity grants	(4,703)
Forfeited	(1,070)
Balance as of December 31, 2025	$	1,537

Balance as of April 1, 2024	$	17,184
Offer to grant	1,198
Share price determined-converted to cash payments	(5)
Share price determined-transferred to equity grants	(3,896)
Forfeited	(3,128)
Balance as of December 31, 2024	$	11,353


Restricted Stock Units	RSUs	Weighted Average Grant Date Fair Value
RSUs as of April 1, 2025	677,013	$	107.39
Issued	62,818	173.74
Forfeitures	(6,235)	93.78
Vested	(296,055)	102.20
RSUs as of December 31, 2025	437,541	$	120.62

RSUs as of April 1, 2024	843,730	$	95.09
Issued	68,601	134.08
Forfeitures	(27,056)	94.81
Vested	(273,210)	94.75
RSUs as of December 31, 2024	612,065	$	99.63

Compensation expenses for the Company associated with both equity-classified and liability-classified awards totaled $60,923 and $45,586 for the three months ended December 31, 2025 and 2024, respectively, and $149,775 and $123,982 for the nine months ended December 31, 2025 and 2024, respectively.

As of December 31, 2025 and 2024, there was $349,399 and $421,133, respectively, of total unrecognized compensation cost related to unvested share awards granted under the 2016 Incentive Plan. These costs will be recognized over a weighted average period of 2.1 years and 1.2 years, as of December 31, 2025 and 2024, respectively.

On October 24, 2024, 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. Under the Amendment, the aggregate number of shares of common stock available for issuance under awards granted pursuant to the 2016 Incentive Plan on or after October 24, 2024 was equal to 8.0 million. Pursuant to the Amendment, the number of shares available for issuance increased on April 1, 2025 by 4,231,218.