v3.26.1
Equity
 12 Months Ended
Mar. 31, 2026
Equity [Abstract]  
Equity
9. Equity
The Company has two classes of common stock outstanding, Class A common stock and Class B common stock.
Class A common stock
Holders of Class A common stock are entitled to one vote for each share held of record on all matters submitted to a vote of stockholders. Additionally, holders of shares of Class A common stock are entitled to receive dividends when and if declared by the Board of Directors, subject to any statutory or contractual
restrictions on the payment of dividends and to any restrictions on the payment of dividends imposed by the terms of any outstanding preferred stock.
Class B common stock
Holders of Class B common stock are entitled to ten votes for each share held of record on all matters submitted to a vote of stockholders, but have de minimis economic rights. Holders of Class B units of HLA hold shares of Class B common stock at a one-to-one ratio. Class B units (together with the corresponding shares of Class B common stock) may be exchanged for shares of Class A common stock on a one-to-one basis, or, at the Company’s election, for cash in an amount equal to the net proceeds from the sale of shares of Class A common stock equal to the number of shares of Class B common stock being exchanged, subject to certain restrictions.
Shares of Common Stock Outstanding
The following table shows a rollforward of the Company’s common stock outstanding:
Class AClass B
March 31, 2023
38,611,919 15,409,507 
Shares issued (repurchased) in connection with offerings1,867,322 (1,744,872)
Shares issued in connection with ESPP27,179 — 
Shares repurchased for employee tax withholdings(38,557)— 
Forfeitures(54,595)— 
Restricted stock granted134,538 — 
March 31, 2024
40,547,806 13,664,635 
Shares issued (repurchased) in connection with offering1,562,281 (1,486,223)
Shares issued in connection with ESPP22,633 — 
Shares repurchased for employee tax withholdings(35,260)— 
Forfeitures(29,826)— 
Restricted stock granted1,429,904 — 
March 31, 2025
43,497,538 12,178,412 
Shares issued (repurchased) in connection with offering378,705 (341,962)
Shares repurchased and retired(199,000)— 
Shares issued in connection with ESPP29,184 — 
Shares repurchased for employee tax withholdings(49,128)— 
Forfeitures(85,518)— 
Restricted stock granted125,703 — 
March 31, 2026
43,697,484 11,836,450 
Income and equity allocations to NCI interests are based upon the relative ownership percentage of the Consolidated Funds and Partnerships held by non-controlling owners. The reallocation adjustment between HLI stockholders’ equity and NCI in HLA relates to the impact of changes in economic ownership percentages during the period and adjusting previously recorded equity transactions to the economic ownership percentage as of the end of each reporting period.
Share Repurchases
During the three months ended March 31, 2026, the Company repurchased 199,000 shares of its Class A common stock under the Stock Repurchase Program at a weighted-average price of $100.43 per share, for an aggregate purchase price of approximately $19,986 under the Stock Repurchase Program.
HLA Operating Agreement
In accordance with the limited liability company agreement of HLA (the “HLA Operating Agreement”), profits and losses from HLA are allocated on a pro rata basis based upon each member’s economic interests. The HLA Operating Agreement provides that distributions are made on a pro rata basis to pay income taxes owed by the members on their share of HLA’s taxable income. In addition to these tax distributions, HLA made distributions in excess of required tax distributions to members in an aggregate amount of $49,718, $46,383, and $43,053 for the years ended March 31, 2026, 2025, and 2024, respectively.
September 2025 Offering
In September 2025, the Company and a selling stockholder completed a registered offering of an aggregate of 528,705 shares of Class A common stock at a price to the underwriter of $146.51 per share (the “September 2025 Offering”). The shares sold consisted of 150,000 shares held by the selling stockholder and 378,705 shares newly issued by the Company. The Company received $55,484 in net proceeds from the sale of its shares and used all of the proceeds to settle exchanges of a total of 341,962 Class B units and 36,743 Class C units by certain members of HLA. In connection with the exchange of the Class B units, the Company also repurchased for par value and canceled a corresponding number of shares of Class B common stock. The Company did not receive any proceeds from the sale of shares by the selling stockholder.
February 2025 Offering
In February 2025, the Company and a selling stockholder completed a registered offering of an aggregate of 1,572,536 shares of Class A common stock at a price to the underwriter of $159.00 per share (the “February 2025 Offering”). The shares sold consisted of 10,255 shares held by the selling stockholder and 1,562,281 shares newly issued by the Company. The Company received $248,403 in net proceeds from the sale of its shares and used all of the proceeds to settle exchanges by certain members of HLA of a total of 1,486,223 Class B units and 76,058 Class C units. In connection with the exchange of the Class B units, the Company also repurchased for par value and canceled a corresponding number of shares of Class B common stock. The Company did not receive any proceeds from the sale of shares by the selling stockholder.
March 2024 Offering
In March 2024, the Company and a selling stockholder completed a registered offering of an aggregate of 1,922,322 shares of Class A common stock at a price to the underwriter of $108.00 per share (the “March 2024 Offering”). The shares sold consisted of 55,000 shares held by the selling stockholder and 1,867,322 shares newly issued by the Company. The Company received $201,671 in net proceeds from the sale of its shares and used all of the proceeds to settle exchanges by certain members of HLA of a total of 1,744,872 Class B units and 122,450 Class C units. In connection with the exchange of the Class B units, the Company also repurchased for par value and canceled a corresponding number of shares of Class B common stock. The Company did not receive any proceeds from the sale of shares by the selling stockholder.
Warrant Instrument
In connection with the Guardian Transaction, the Company issued the Warrant allowing for purchases of up to 400,000 shares of Class A common stock, with a grant date fair value of $19,618. The Warrant will
expire on February 29, 2036. The Company accounts for the Warrant as equity as it is indexed to the Company’s common stock and can only be settled in cash at the Company’s election.
Upon issuance, 150,000 shares of Class A common stock with a weighted average exercise price of $131.56 per share became exercisable. The remaining shares will vest evenly over a 10 year period subject to minimum annual contract commitments.
The fair value of the Warrant was estimated using a Black-Scholes valuation method using the following assumptions:
Closing share price as of grant date$132.24
Weighted average exercise price161.46
Risk Free Rate4.18%
Dividend rate1.63%
Volatility(1)
35.00%
Expected term10.2 years
(1)The Company estimates expected volatility based on the historic volatility of its own Class A common stock.