Jefferies Financial Group Inc (JEF)

Jefferies Announces Second Quarter 2026 Financial ResultsJune 24, 2026 4:16 PM
Business Wire Quarterly Record Combined Investment Banking Advisory and Underwriting Net Revenues, as well as Quarterly Record Equities Net Revenues Jefferies Financial Group Inc. (NYSE: JEF) Q2 Financial Highlights $ in thousands, except per share amounts Quarter End Year-to-Date     2Q26     2Q25     2026     2025   Net earnings attributable to common shareholders $ 226,234   $ 88,017   $ 382,161   $ 215,955   Diluted earnings per voting common share $ 1.02   $ 0.40   $ 1.70   $ 0.97   Return on adjusted tangible shareholders' equity1   12.8 %   5.5 %   12.2 %   6.9 % Total net revenues $ 2,206,451   $ 1,634,447   $ 4,223,581   $ 3,227,466   Investment banking net revenues $ 1,206,820   $ 766,307   $ 2,224,113   $ 1,466,999   Capital markets net revenues $ 799,292   $ 704,155   $ 1,578,048   $ 1,402,439   Asset management net revenues $ 187,718   $ 154,621   $ 407,980   $ 346,336   Pre-tax earnings $ 315,549   $ 134,901   $ 527,765   $ 285,966   Book value per common share $ 51.95   $ 49.96   $ 51.95   $ 49.96   Adjusted tangible book value per fully diluted share3 $ 34.55   $ 32.84   $ 34.55   $ 32.84   Quarterly Cash Dividend and Stock Buyback Activity The Jefferies Board of Directors declared a quarterly cash dividend equal to $0.40 per Jefferies common share, payable on August 28, 2026 to record holders of Jefferies common shares on August 18, 2026. During the quarter, we repurchased 4.0 million shares of common stock for $197 million, or an average price of $49.83 per share. Our Board of Directors has increased our share buyback authorization back to a total of $250 million. Management Comments "Our strong second quarter net revenues of $2.21 billion, net earnings attributable to common shareholders of $226 million, diluted earnings per voting common share of $1.02 and return on adjusted tangible shareholders' equity of 12.8% reflect the momentum and market position we have been building at Jefferies. "The continued acceleration in our core businesses during the second quarter drove record first half net revenues in Advisory, total Investment Banking, Equities, total Capital Markets and combined Investment Banking and Capital Markets. We expect to build further on this momentum in coming periods. “Investment Banking net revenues were $1.21 billion, up 57% from the prior year quarter. Growth was driven by continued market share gains and a growing addressable market in our Advisory and Equity Underwriting businesses and represent a balanced performance, as no single outsized fee drove our results. We continue to make progress in building our corporate M&A business, while staying focused on our historical areas of strength in sponsor-led activity and had very strong performance during the quarter with corporates particularly in the healthcare, industrials and energy sectors. The new issue market remains resilient. We continue to be optimistic about the second half of 2026, given the strength of our current backlog and new business bookings. "Capital Markets net revenues were $799 million, up 14% from the prior year quarter. Equities delivered record net revenues of $601 million, up 14% from the prior year quarter. Our continued growth in Equities is being driven by market share gains in cash and electronic trading in EMEA, Asia and the Americas, as well as growth in prime services where we have become an increasingly important strategic partner to some of the most significant, well diversified, hedge funds in the world. While the growth of client-related prime brokerage balances has added to our overall balance sheet size, it has added a layer of high quality, consistent revenues that supports a more durable earnings profile. Additionally, our equity derivatives business continues to expand in sync with our investment banking business, and has allowed Jefferies to support some of our corporate clients' most important transactions with strategic derivative solutions. The shape and scale of growth in our Equities business is translating to higher overall equities operating margins after we invested the past few years in infrastructure to support meaningfully larger global volumes. Fixed Income net revenues were $199 million, up 12%, from the prior year quarter, reflecting strong performance in our distressed, municipal and emerging markets businesses. "Asset management fees and investment return revenues were $46 million, down 35% compared to the prior year quarter due to weaker performance across several fund strategies, as well as the impact of our strategy to reposition the business by reducing capital allocated to certain funds in line with the announcement we made last fall when we disclosed our intent to acquire 50% of Hildene. In the short term, this has resulted in modestly lower investment return until we close our investment in Hildene, which we are targeting to complete in our third quarter, and should be immediately accretive to results." Richard Handler, CEO, and Brian Friedman, President Financial Summary (Unaudited) $ in thousands Three Months Ended Six Months Ended   May 31,
2026 February 28,
2026 May 31,
2025 May 31,
2026 May 31,
2025 Net revenues by source:           Advisory $ 674,118   $ 527,128   $ 457,860   $ 1,201,246   $ 855,640   Equity underwriting   370,691     305,969     122,366     676,660     250,886   Debt underwriting   160,186     181,858     205,363     342,044     404,725   Other investment banking   1,825     2,338     (19,282 )   4,163     (44,252 ) Total Investment Banking   1,206,820     1,017,293     766,307     2,224,113     1,466,999   Equities   600,751     558,488     526,244     1,159,239     935,302   Fixed income   198,541     220,268     177,911     418,809     467,137   Total Capital Markets   799,292     778,756     704,155     1,578,048     1,402,439   Total Investment Banking and Capital Markets Net revenues5   2,006,112     1,796,049     1,470,462     3,802,161     2,869,438   Asset management fees and revenues6   15,169     69,910     20,766     85,079     109,396   Investment return   31,037     88,992     50,404     120,029     44,770   Allocated net interest4   (22,935 )   (22,238 )   (19,144 )   (45,173 )   (36,365 ) Other investments, inclusive of net interest   164,447     83,598     102,595     248,045     228,535   Total Asset Management Net revenues   187,718     220,262     154,621     407,980     346,336   Other   12,621     819     9,364     13,440     11,692   Total Net revenues by source $ 2,206,451   $ 2,017,130   $ 1,634,447   $ 4,223,581   $ 3,227,466               Non-interest expenses:           Compensation and benefits $ 1,188,245   $ 1,085,890   $ 854,839   $ 2,274,135   $ 1,695,966   Compensation ratio13   53.9 %   53.8 %   52.3 %   53.8 %   52.5 % Non-compensation expenses $ 702,657   $ 719,024   $ 644,707   $ 1,421,681   $ 1,245,534   Non-compensation ratio13   31.8 %   35.6 %   39.4 %   33.7 %   38.6 % Total Non-interest expenses $ 1,890,902   $ 1,804,914   $ 1,499,546   $ 3,695,816   $ 2,941,500               Net earnings before income taxes $ 315,549   $ 212,216   $ 134,901   $ 527,765   $ 285,966   Income tax expense $ 65,571   $ 52,870   $ 43,506   $ 118,441   $ 57,722   Income tax rate   20.8 %   24.9 %   32.3 %   22.4 %   20.2 % Net earnings $ 249,978   $ 159,346   $ 91,395   $ 409,324   $ 228,244   Net losses attributable to noncontrolling interests   (5,440 )   (15,858 )   (7,668 )   (21,298 )   (14,651 ) Preferred stock dividends   29,184     19,504     11,046     48,461     26,940   Net earnings attributable to common shareholders $ 226,234   $ 155,700   $ 88,017   $ 382,161   $ 215,955               Results Discussion Three Months Ended May 31, 2026 Versus May 31, 2025   Six Months Ended May 31, 2026 Versus May 31, 2025 Net earnings attributable to common shareholders of $226 million. Diluted earnings per voting common share of $1.02. Return on adjusted tangible shareholders' equity1 of 12.8%. Repurchased 4.0 million shares of common stock for $197 million, at an average price of $49.83 per share, including 2.5 million shares of common stock in the open market for $121 million and 1.5 million shares of common stock for $76 million in connection with net-share settlements related to our equity compensation plans. We had 194.1 million voting common shares outstanding and 252.0 million common shares outstanding on a fully diluted basis2 at May 31, 2026. Our book value per common share was $51.95 and adjusted tangible book value per fully diluted share3 was $34.55. Effective tax rate of 20.8% compared to 32.3% for the prior year quarter. The lower rate was primarily from investment tax credits and lower state and local taxes.     Net earnings attributable to common shareholders of $382 million. Diluted earnings per voting common share of $1.70. Return on adjusted tangible shareholders' equity1 of 12.2%. Repurchased 7.0 million shares of common stock for $372 million, at an average price of $53.42 per share, including 5.0 million shares of common stock in the open market for $265 million and 2.0 million shares of common stock for $107 million in connection with net-share settlements related to our equity compensation plans. Effective tax rate of 22.4% compared to 20.2% for the prior year period. The lower rate last year was primarily driven by the partial resolution of certain state and local tax matters in the prior year period. Investment Banking and Capital Markets   Investment Banking and Capital Markets Investment Banking net revenues from combined Advisory and Underwriting totaling $1.20 billion reflect our best quarterly results ever and were 53% higher than the prior year quarter. Advisory net revenues of $674 million reflect our best quarter on record and were 47% higher than the prior year quarter, driven by market share gains and increased deal volumes. Underwriting net revenues of $531 million were 62% higher than the prior year quarter, primarily driven by market share gains and increased activity in Equity underwriting across most sectors. Debt underwriting remained solid but decreased compared to the prior year quarter primarily due to lower deal values and lower origination of asset-backed securities. Capital Markets net revenues of $799 million were 14% higher compared to the prior year quarter. Equities net revenues increased 14%, marking our strongest quarter on record, primarily due to higher global trading volumes driving stronger results across most of our businesses, particularly within cash and electronic trading. Additionally, prime services continues to expand. Fixed Income net revenues increased 12% from the prior year quarter, primarily driven by strong performance in our distressed, municipal securities and emerging markets businesses.     Investment Banking net revenues from Advisory and Underwriting totaling $2.22 billion reflect our best first-half year results ever and were 47% higher than the prior year period. Advisory net revenues of $1.20 billion reflect our best first-half year results ever and were 40% higher than the prior year period, driven by market share gains and increased overall market opportunity. Underwriting net revenues of $1.02 billion were 55% higher than the prior year period, primarily driven by market share gains and increased activity in Equity underwriting across several sectors and is reflective of a stronger issuance market. Debt underwriting remained strong but decreased compared to the prior year period primarily due to lower deal values. Capital Markets net revenues of $1.58 billion reflect our best first-half year results ever and were 13% higher compared to the prior year period. Equities net revenues increased 24%, marking our highest first-half year results on record, primarily due to higher global trading volumes driving stronger results across most of our businesses, particularly within cash and electronic trading. Additionally, prime services continues to expand. Our equity options, convertibles, and corporate derivatives businesses also produced strong results. Fixed Income net revenues decreased 10% from the prior year period and current year results include a mark-to-market loss associated with Market Financial Solutions.   Asset Management   Asset Management Asset Management fees and revenues and investment return of $46 million were lower than the prior year quarter. Asset management fees and revenues decreased from the prior year quarter, as a result of lower management fees from funds and accounts managed by us, primarily Point Bonita, as well as funds and accounts managed by our strategic affiliates. Investment return decreased from the prior year quarter, as strong performance from strategies with a long equity bias was offset by lower performance across other fund strategies and the impact of reduced capital allocated to certain funds based on our strategy to reposition the business.     Asset Management fees and revenues and investment return of $205 million were meaningfully higher than the prior year period. Asset management fees and revenues were lower compared to the prior year period, as a result of higher performance fees from funds and accounts managed by our strategic affiliates, offset by lower performance fees largely associated with Point Bonita. Investment return increased significantly from the prior year period due to improved performance across several fund strategies, particularly those with a long-equity bias.   Non-interest Expenses   Non-interest Expenses Compensation and benefits expense as a percentage of Net revenues was 54%, compared to 52% for the prior year quarter. Non-compensation expenses were higher primarily due to increased brokerage and clearing fees associated with increased equities trading volumes, and increased technology and communication expenses. Non-compensation expenses as a percentage of Net revenues decreased to 32%, compared to 39% for the prior year quarter.     Compensation and benefits expense as a percentage of Net revenues was 54%, compared to 53% for the prior year period. Non-compensation expenses were higher primarily due to increased brokerage and clearing fees associated with increased equities trading volumes, and increased technology and communication and business development expenses. In addition, other expenses were higher primarily due to the write-down of goodwill associated with the expected sale of Tessellis. Non-compensation expenses as a percentage of Net revenues decreased to 34%, compared to 39% for the prior year period.   * * * * Amounts herein pertaining to May 31, 2026 represent a preliminary estimate as of the date of this earnings release and may be revised upon filing our Quarterly Report on Form 10-Q with the Securities and Exchange Commission (“SEC”). More information on our results of operations for the three and six months ended May 31, 2026 will be provided upon filing our Quarterly Report on Form 10-Q with the SEC, which we expect to file on or about July 9, 2026. This press release contains certain “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current views and include statements about our future and statements that are not historical facts. These forward-looking statements are usually preceded by the words “should,” “expect,” “intend,” “may,” “will,” "would," or similar expressions. Forward-looking statements may contain expectations regarding revenues, earnings, operations, and other results, and may include statements of future performance, plans, and objectives. Forward-looking statements may also include statements pertaining to our strategies for future development of our businesses and products. Forward-looking statements represent only our belief regarding future events, many of which by their nature are inherently uncertain. It is possible that the actual results may differ, possibly materially, from the anticipated results indicated in these forward-looking statements. Information regarding important factors, including Risk Factors that could cause actual results to differ, perhaps materially, from those in our forward-looking statements is contained in reports we file with the SEC. You should read and interpret any forward-looking statement together with reports we file with the SEC. We undertake no obligation to update or revise any such forward-looking statement to reflect subsequent circumstances. Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy will be profitable or equal the corresponding indicated performance level(s). Consolidated Statements of Earnings (Unaudited) $ in thousands, except per share amounts Three Months Ended May 31, Six Months Ended May 31,     2026     2025     2026     2025   Revenues         Investment banking $ 1,209,625   $ 789,269   $ 2,227,909   $ 1,518,779   Principal transactions   488,666     338,507     976,164     745,737   Commissions and other fees   400,614     353,233     768,218     641,533   Asset management fees and revenues   9,788     20,076     77,150     105,484   Interest   853,962     878,025     1,667,081     1,723,196   Other   155,542     115,205     272,940     232,450   Total revenues   3,118,197     2,494,315     5,989,462     4,967,179   Interest expense   911,746     859,868     1,765,881     1,739,713   Net revenues   2,206,451     1,634,447     4,223,581     3,227,466   Non-interest expenses         Compensation and benefits   1,188,245     854,839     2,274,135     1,695,966   Brokerage and clearing fees   147,446     129,745     280,578     239,181   Underwriting costs   26,858     14,525     58,241     32,371   Technology and communications   162,860     146,198     322,718     285,673   Occupancy and equipment rental   34,499     30,711     68,359     60,910   Business development   89,108     80,070     164,530     152,361   Professional services   98,707     77,768     175,651     150,234   Depreciation and amortization   47,328     52,253     104,193     83,241   Cost of sales   31,253     42,961     61,173     84,529   Other expenses   64,598     70,476     186,238     157,034   Total non-interest expenses   1,890,902     1,499,546     3,695,816     2,941,500   Earnings before income taxes   315,549     134,901     527,765     285,966   Income tax expense   65,571     43,506     118,441     57,722   Net earnings   249,978     91,395     409,324     228,244   Net losses attributable to noncontrolling interests   (5,440 )   (7,668 )   (21,298 )   (14,651 ) Preferred stock dividends   29,184     11,046     48,461     26,940   Net earnings attributable to common shareholders $ 226,234   $ 88,017   $ 382,161   $ 215,955             Financial Data and Metrics (Unaudited)   Three Months Ended Six Months Ended   May 31,
2026 February 28,
2026 May 31,
2025 May 31,
2026 May 31,
2025 Other Data:           Number of trading days   63   61   63   124   124 Number of trading loss days7   0   1   13   1   17 Average VaR (in millions)8 $ 10.31 $ 9.78 $ 11.89 $ 10.05 $ 12.50 In millions, except other data May 31,
2026 February 28,
2026 May 31,
2025 Financial position:       Total assets $ 79,540 $ 74,380 $ 67,285 Cash and cash equivalents   14,315   11,963   11,260 Financial instruments owned   28,038   28,079   25,570 Level 3 financial instruments owned9   839   849   763 Goodwill and intangible assets, net14   1,974   1,979   2,060 Total equity   10,607   10,662   10,382 Total shareholders' equity   10,567   10,611   10,305 Tangible shareholders' equity10   8,593   8,632   8,245 Other data and financial ratios:       Leverage ratio11   7.5   7.0   6.5 Tangible gross leverage ratio12   9.0   8.4   7.9 Number of employees at period end   7,371   7,596   7,671 Number of employees excluding Tessellis and Stratos at period end   6,236   6,221   5,949 Non-GAAP Reconciliations The following tables reconcile our non-GAAP financial measures to their respective U.S. GAAP financial measures. Management believes such non-GAAP financial measures are useful to investors as they allow them to view our results through the eyes of management, while facilitating a comparison across historical periods. These measures should not be considered a substitute for, or superior to, measures prepared in accordance with U.S. GAAP. Return on Adjusted Tangible Equity Reconciliation $ in thousands Three Months Ended May 31, Six Months Ended May 31,     2026     2025     2026     2025   Net earnings attributable to common shareholders (GAAP) $ 226,234   $ 88,017   $ 382,161   $ 215,955   Intangible amortization and impairment expense, net of tax15   1,682     5,824     48,170     13,093   Adjusted net earnings to common shareholders (non-GAAP)   227,916     93,841     430,331     229,048   Preferred stock dividends   29,184     11,046     48,461     26,940   Adjusted net earnings to total shareholders (non-GAAP) $ 257,100   $ 104,887   $ 478,792   $ 255,988             Adjusted net earnings to total shareholders (non-GAAP)1 $ 1,028,400   $ 419,548   $ 957,584   $ 511,976               February 28, November 30,     2026     2025     2025     2024   Shareholders' equity (GAAP) $ 10,610,845   $ 10,204,228   $ 10,574,696   $ 10,156,772   Less: Goodwill and intangible assets, net   (1,978,652 )   (2,037,906 )   (2,040,147 )   (2,054,310 ) Less: Deferred tax asset, net   (493,427 )   (507,452 )   (459,052 )   (497,590 ) Less: Weighted average impact of dividends and share repurchases   (112,340 )   (67,343 )   (244,489 )   (157,540 ) Adjusted tangible shareholders' equity (non-GAAP) $ 8,026,426   $ 7,591,527   $ 7,831,008   $ 7,447,332             Return on adjusted tangible shareholders' equity (non-GAAP)1   12.8 %   5.5 %   12.2 %   6.9 % Adjusted Tangible Book Value and Fully Diluted Shares Outstanding Reconciliation Reconciliation of book value (shareholders' equity) to adjusted tangible book value and common shares outstanding to fully diluted shares outstanding: $ in thousands, except per share amounts May 31, 2026 May 31, 2025 Book value (GAAP) $ 10,566,996   $ 10,305,025   Stock options(1)   114,939     114,939   Goodwill and intangible assets, net(2)   (1,974,240 )   (2,060,018 ) Adjusted tangible book value (non-GAAP) $ 8,707,695   $ 8,359,946           Voting common shares outstanding (GAAP)   194,145     206,272   Non-voting common shares outstanding (GAAP)   9,247     —   Preferred shares   27,563     27,563   Restricted stock units ("RSUs")   14,251     14,099   Stock options(1)   5,064     5,064   Other   1,758     1,566   Adjusted fully diluted shares outstanding (non-GAAP)(3)   252,028     254,564           Book value per common share outstanding $ 51.95   $ 49.96   Adjusted tangible book value per fully diluted share outstanding (non-GAAP) $ 34.55   $ 32.84         (1) Stock options added to book value are equal to the total number of stock options outstanding as of May 31, 2026 and 2025 of 5.1 million multiplied by the exercise price of $22.69 on May 31, 2026 and 2025. (2) Includes goodwill and intangible assets related to Tessellis which were reclassified to assets held for sale during the first quarter of 2026. (3) Fully diluted shares outstanding include vested and unvested RSUs as well as the target number of RSUs issuable under the senior executive compensation plans until the performance period is complete. Fully diluted shares outstanding also include all stock options and the impact of convertible preferred shares if-converted to common shares. Notes Return on adjusted tangible shareholders' equity represents a non-GAAP financial measure and is based on full year or annualized amounts. Refer to schedule on page 8 for a reconciliation to U.S. GAAP amounts. Shares outstanding on a fully diluted basis (a non-GAAP financial measure) is defined as common shares outstanding plus preferred shares, restricted stock units, stock options and other shares. Refer to schedule on page 9 for a reconciliation to U.S. GAAP amounts. Adjusted tangible book value per fully diluted share (a non-GAAP financial measure) is defined as adjusted tangible book value (a non-GAAP financial measure) divided by shares outstanding on a fully diluted basis (a non-GAAP financial measure). Refer to schedule on page 9 for a reconciliation to U.S. GAAP amounts. Allocated net interest represents an allocation to Asset Management of certain of our long-term debt interest expense, net of interest income on our Cash and cash equivalents and other sources of liquidity. Allocated net interest has been disaggregated to increase transparency and to present direct Asset Management revenues. We believe that aggregating Allocated net interest would obscure the revenue results by including an amount that is unique to our credit spreads, debt maturity profile, capital structure, liquidity risks and allocation methods. Allocated net interest is not separately disaggregated for Investment Banking and Capital Markets. This presentation is aligned to our Investment Banking and Capital Markets internal performance measurement. Asset management fees and revenues include management and performance fees from funds and accounts managed by us, revenue from strategic affiliated asset managers where we are entitled to portions their operating revenues and income based on our ownership interests in the affiliates. Number of trading loss days is calculated based on trading activities in our Investment Banking and Capital Markets and Asset Management business segments, excluding certain Other investments. VaR estimates the potential loss in value of trading positions due to adverse market movements over a one-day time horizon with a 95% confidence level. For a further discussion of the calculation of VaR, see "Value-at-Risk" in Part II, Item 7A "Quantitative and Qualitative Disclosures About Market Risk" in our Annual Report on Form 10-K for the year ended November 30, 2025. Level 3 financial instruments represent those financial instruments classified as such under Accounting Standards Codification 820, accounted for at fair value and included within Financial instruments owned. Tangible shareholders' equity (a non-GAAP financial measure) is defined as shareholders' equity less Intangible assets and goodwill. We believe that tangible shareholders' equity is meaningful for valuation purposes, as financial companies are often measured as a multiple of tangible shareholders' equity, making these ratios meaningful for investors. Leverage ratio equals total assets divided by total equity. Tangible gross leverage ratio (a non-GAAP financial measure) equals total assets less goodwill and intangible assets divided by tangible shareholders' equity. The tangible gross leverage ratio is used by rating agencies in assessing our leverage ratio. Compensation ratio equals total compensation expense divided by total net revenues. Non-compensation ratio equals total non-compensation expense divided by total net revenues. Includes goodwill and intangible assets related to Tessellis which were reclassified to assets held for sale during the first quarter of 2026. Includes a $35.5 million after-tax write-down of goodwill associated with Tessellis for the six months ended May 31, 2026.   View source version on businesswire.com: https://www.businesswire.com/news/home/20260624112595/en/ FOR MORE INFORMATION
Jonathan Freedman 212.778.8913 Original: Jefferies Announces Second Quarter 2026 Financial Results

Jefferies to Release its Second Quarter Financial Results on June 24, 2026June 16, 2026 4:20 PM
Business Wire Jefferies Financial Group Inc. (NYSE: JEF) today announced it will release its second quarter financial results on Wednesday, June 24, 2026 after market close. About Jefferies Jefferies (NYSE: JEF) is one of the world’s leading full-service investment banking and capital markets firms. We primarily serve public companies, private companies, and their sponsors and owners, institutional investors, and government entities. Our services are enhanced by our relentless client focus, our differentiated insights and a flat and nimble operating structure. For more information: www.jefferies.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260616489538/en/ For media inquiries:
Jonathan Freedman (212) 284-2300
MediaContact@Jefferies.com Original: Jefferies to Release its Second Quarter Financial Results on June 24, 2026

Jefferies Releases "Shifting Sands: Israel's Role as a Financial Capital in an Evolving Middle East,” a Comprehensive Report Highlighting Israel's Capital Market Resilience and Tech Ecosystem Strength Amid Regional TransformationMay 6, 2026 3:00 PM
Business Wire Jefferies announced today the publication of "Shifting Sands: Israel's Role as a Financial Capital in an Evolving Middle East," a comprehensive analysis of Israel's evolving position as a regional technology and financial hub. The report is being presented by Natti Ginor, Managing Director and Head of Jefferies' Israel Coverage Group, at the Milken Institute Global Conference in Beverly Hills. The report details Israel's remarkable capital markets performance and technology ecosystem resilience throughout a period of regional conflict. Key highlights include: Capital Markets Outperformance: The TA-35 index surged 52% in 2025, significantly outpacing the S&P 500's 16% gain, while Tel Aviv Stock Exchange equity market capitalization rose 46% to approximately $628 billion. Tech Ecosystem Strength: Israel's private tech sector raised an estimated $19.9 billion across approximately 860 funding rounds in 2025, marking a 62% increase in total capital raised year-over-year. Historic M&A Activity: 2025 witnessed over 150 deals with a cumulative transaction value of $82.3 billion, headlined by Google's $32 billion acquisition of Wiz—the largest deal in Israeli history. Global Investor Confidence: Foreign investor holdings in TASE-listed securities more than doubled since October 2023, reaching a new all-time high of $108 billion by January 2026, with net inflows of $1.4 billion in 2025. “Israel has demonstrated unprecedented resilience as both a capital markets and technology leader," said Natti Ginor, Managing Director and Head of Israel Coverage Group at Jefferies. "Despite ongoing geopolitical challenges, global investor sentiment toward Israel remains highly favorable. The combination of strong capital markets, cutting-edge innovation, and deepening global market integration is reinforcing Israel’s role as a key economic and strategic player in the evolving Middle East." The report also examines Israel's leadership in key technology sectors including cybersecurity, artificial intelligence, and defense-tech, while highlighting major dual-listing initiatives such as Palo Alto Networks' February 2026 listing on the Tel Aviv Stock Exchange. Jefferies continues to demonstrate its commitment to Israel, ranking as the #1 investment bank in Israel in 2025 by deal count and having led 10 global equity follow-on offerings for TASE-listed companies totaling over $3.5 billion since the start of the conflict. The full report is available here. About Jefferies Financial Group Inc. Jefferies (NYSE: JEF) is one of the world’s leading full-service investment banking and capital markets firms. We primarily serve public companies, private companies, and their sponsors and owners, institutional investors, and government entities. Our services are enhanced by our relentless client focus, our differentiated insights and a flat and nimble operating structure. View source version on businesswire.com: https://www.businesswire.com/news/home/20260506091815/en/ For inquiries, please contact:
Jonathan Freedman
Head of Marketing and Communications
Jefferies Financial Group Inc.
mediacontact@jefferies.com Original: Jefferies Releases "Shifting Sands: Israel's Role as a Financial Capital in an Evolving Middle East,” a Comprehensive Report Highlighting Israel's Capital Market Resilience and Tech Ecosystem Strength Amid Regional Transformation

Jefferies Financial Group Inc. Announces Pricing of $1,100,000,000 5.125% Senior Notes Due 2031April 23, 2026 5:44 PM
Business Wire
Jefferies Financial Group Inc. (NYSE: JEF) (“JFG”, “we” or “our”) today announced the pricing of its public offering of $1.1 billion aggregate principal amount of 5.125% Senior Notes due 2031 (the “Notes”) with an effective yield of 5.304%, maturing April 28, 2031. The offering is expected to settle on April 28, 2026, subject to the satisfaction of customary closing conditions.


JFG intends to use the net proceeds of the offering for general corporate purposes. Jefferies LLC served as sole global co-ordinator and joint book-runner for the offering of the Notes, SMBC Nikko Securities America, Inc. served as joint book-runner, BNY Mellon Capital Markets, LLC, Citigroup Global Markets Inc. and Natixis Securities Americas LLC served as senior co-managers, and Academy Securities, Inc., AmeriVet Securities, Inc., BBVA Securities Inc., CaixaBank, S.A., Citizens JMP Securities, LLC, Fifth Third Securities, Inc., First Citizens Capital Securities, LLC, HSBC Securities (USA) Inc., Huntington Securities, Inc., Intesa Sanpaolo IMI Securities Corp., M&T Securities, Inc., NatWest Markets Securities Inc., Santander US Capital Markets LLC, Standard Chartered Bank, SG Americas Securities, LLC, UniCredit Capital Markets LLC and U.S. Bancorp Investments, Inc. served as co-managers.


The offering of the Notes is being made pursuant to an effective shelf registration statement, base prospectus and related prospectus supplement. Copies of the prospectus supplement and the base prospectus, when available, may be obtained by contacting Jefferies LLC at toll-free (877) 877-0696, or by email at DCMProspectuses@jefferies.com; or SMBC Nikko Securities America, Inc. at toll-free (888) 868-6856, or by email at prospectus@smbcnikko-si.com. Investors may also obtain these documents for free by visiting EDGAR on the Securities and Exchange Commission's (“SEC”) website at www.sec.gov.


This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.


About Jefferies Financial Group Inc.


Jefferies (NYSE: JEF) is one of the world’s leading full-service investment banking and capital markets firms. We primarily serve public companies, private companies, and their sponsors and owners, institutional investors, and government entities. Our services are enhanced by our relentless client focus, our differentiated insights and a flat and nimble operating structure.


Forward-Looking Statements


This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements about our future and statements that are not historical facts. These forward-looking statements are typically identified by such words as “believe,” “expect,” “anticipate,” “may,” “intend,” “outlook,” “will,” “estimate,” “forecast,” “project,” “should,” and other similar words and expressions, and are subject to numerous assumptions, risks and uncertainties, which will change over time. Forward-looking statements may contain beliefs, goals, intentions and expectations regarding revenues, earnings, operations, arrangements and other results, and may include statements of future performance, plans, and objectives. Forward-looking statements also include statements pertaining to our strategies for future development of our businesses and products. Forward-looking statements speak only as of the date they are made; we do not assume any duty, and do not undertake, to update any forward-looking statements. Furthermore, because forward-looking statements represent only our belief regarding future events, many of which by their nature are inherently uncertain, the actual results or outcomes may differ, possibly materially, from the anticipated results or outcomes indicated in these forward-looking statements. Information regarding important factors, including risk factors that could cause actual results or outcomes to differ, perhaps materially, from those in our forward-looking statements, is contained in reports we file with the SEC, including our Quarterly Report on Form 10-Q for the quarter ended February 28, 2026. You should read and interpret any forward-looking statement together with reports we file or furnish with the SEC. Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy will be profitable or equal the corresponding indicated performance level(s).

View source version on businesswire.com: https://www.businesswire.com/news/home/20260423257034/en/
For inquiries, please contact:

Jonathan Freedman

Head of Marketing and Communications

Jefferies Financial Group Inc.

mediacontact@jefferies.com


Original: Jefferies Financial Group Inc. Announces Pricing of $1,100,000,000 5.125% Senior Notes Due 2031

Futures slip while oil holds above $100 as markets track Iran conflict developments: Dow Jones, S&P, Nasdaq, Wall StreetMarch 26, 2026 6:05 AM
IH Market News
U.S. equity futures pointed lower on Thursday as investors sifted through a wave of reports about possible negotiations aimed at ending the Iran conflict. Oil prices remained above $100 per barrel, the U.S. dollar strengthened slightly and gold prices moved lower. Meanwhile, Jefferies Financial (NYSE:JEF) reported first-quarter results that were weighed down by losses tied to loans issued to companies that later collapsed.



Futures edge lower



Futures linked to major U.S. stock indexes moved down early Thursday as traders weighed the likelihood of diplomatic progress in the Iran war.By 04:18 ET, Dow futures were down 203 points, or 0.4%. S&P 500 futures had fallen 35 points, or 0.5%, while Nasdaq 100 futures dropped 156 points, or 0.6%.Wall Street’s main indexes had closed higher in the previous session on hopes that the United States and Iran might enter talks to bring an end to the nearly month-long conflict. Media reports suggested Tehran had privately indicated a willingness to engage in discussions with Washington. U.S. Vice President JD Vance is also reportedly prepared to travel to Pakistan as early as this weekend to take part in negotiations.The Wall Street Journal also reported that the U.S. and Israel may delay attempts to assassinate Iran’s foreign minister or parliament speaker while diplomatic communications continue.However, signals from both sides remain inconsistent. The opposing parties appear far apart on the conditions required to stop the fighting, and the Pentagon has been moving additional ground forces into the Middle East.At the same time, Israeli officials — whose country has been conducting military operations against Iran alongside the U.S. — are said to be worried that Washington could announce a one-month ceasefire. Israeli Prime Minister Benjamin Netanyahu has therefore ordered a new two-day offensive aimed at destroying as much of Iran’s military capacity as possible, according to reports from the New York Times and CNN.



Oil trades above $100 a barrel



Amid the ongoing stream of developments from the Middle East, oil prices again climbed above the $100-per-barrel mark on Thursday.Brent crude futures for May delivery, the global benchmark, were last up 3.4% at $105.73 a barrel. U.S. West Texas Intermediate crude futures also rose 3.7% to $93.67 a barrel.Iran is said to be examining a 15-point peace proposal from the United States. At the same time, the White House has warned that further air strikes could target the country if it refuses to reach an agreement. White House Press Secretary Karoline Leavitt said U.S. President Donald Trump “does not bluff and […] is prepared to unleash hell,” although the Wall Street Journal has reported that Trump has privately told aides he would prefer to see the war brought to a rapid end.Analysts at Vital Knowledge noted that the Trump administration has officially scheduled the president’s upcoming visit to China for May 14–15, which could indicate that Washington expects the conflict to conclude before then.Despite the swirl of news and speculation, the Strait of Hormuz remains effectively closed. The key shipping route — through which roughly one-fifth of the world’s oil and natural gas passes — has been largely inaccessible for weeks due to the threat of Iranian attacks. While oil prices have retreated somewhat from the near-$120 per barrel peak seen earlier this month, they remain significantly higher than levels recorded before the conflict began in late February.



Dollar strengthens



Oil remaining above $100 per barrel has helped support the U.S. dollar even as risk appetite has improved slightly, analysts at ING said.The greenback has been one of the main safe-haven assets sought by investors since the conflict began, rising about 2% over the past month.A dollar index measuring the currency against a basket of peers — which has fluctuated sharply this week amid headlines related to the Iran war — was last up 0.1% at 99.70.“Markets may well require some more convincing headlines on de-escalation to take the dollar meaningfully lower from here,” ING analysts including Francesco Pesole and Chris Turner wrote in a note.



Gold declines



The strength of the U.S. dollar has helped cap any rebound in gold prices, which have fallen since the conflict began after reaching a record high earlier this year.Some market commentators believe gold’s sharp rally in recent months reduced its relative appeal, encouraging investors to seek alternative safe-haven assets as the conflict spread across the Middle East.At the same time, expectations that the Federal Reserve may keep interest rates elevated for longer in response to inflation driven by higher energy prices have reduced demand for non-yielding assets like gold.Spot gold was down 1.7% at $4,432.27 per ounce at 05:02 ET, while gold futures fell 2.7% to $4,461.59 per ounce.“In the near term, gold is trading inside a defined range. The market needs to clear the mid-$4,500s and hold it to shift the tone. Until that happens, rallies can still run into resistance and turn into selling opportunities,” American Hartford Gold President Max Baecker told Investing.com.



Jefferies earnings disappoint



Separately, Jefferies Financial (NYSE:JEF) released quarterly results that fell short of expectations, as losses linked to loans extended to companies that later collapsed overshadowed solid investment banking performance during the first quarter.The company said it recorded $17 million in losses — after adjusting for compensation and taxes — tied to the collapse of British lender Market Financial Solutions and First Brands, a U.S. auto-parts supplier that filed for bankruptcy.However, Jefferies President Brian Friedman told Reuters that the outlook for mergers, acquisitions and initial public offerings should remain “increasingly strong” provided that the Iran conflict reaches a “reasonable end.”According to Dealogic data cited by Reuters, more than $1 trillion worth of deals have already been announced in 2026, representing a 27% increase compared with the same period in 2025. Potential large technology IPOs expected later this year could add further momentum to dealmaking activity.Jefferies Financial Group stock price

Original: Futures slip while oil holds above $100 as markets track Iran conflict developments: Dow Jones, S&P, Nasdaq, Wall Street

Jefferies Announces First Quarter 2026 Financial ResultsMarch 25, 2026 4:15 PM
Business Wire
Jefferies Financial Group Inc. (NYSE: JEF)


Q1 Financial Highlights




$ in thousands, except per share amounts






Quarter End








 






 






1Q26






 






 






1Q25






 








Net earnings attributable to common shareholders






$






155,700






 






$






127,793






 








Diluted earnings per common share from continuing operations






$






0.70






 






$






0.57






 








Return on adjusted tangible shareholders' equity1






 






10.9






%






 






8.0






%








Total net revenues






$






2,017,130






 






$






1,593,019






 








Investment banking net revenues






$






1,017,293






 






$






700,692






 








Capital markets net revenues






$






778,756






 






$






698,284






 








Asset management net revenues






$






220,262






 






$






191,715






 








Pre-tax earnings from continuing operations






$






212,216






 






$






151,065






 








Book value per common share






$






51.91






 






$






49.48






 








Adjusted tangible book value per fully diluted share3






$






34.24






 






$






32.57






 







Quarterly Cash Dividend and Stock Buyback Activity


The Jefferies Board of Directors declared a quarterly cash dividend equal to $0.40 per Jefferies common share, payable on May 29, 2026 to record holders of Jefferies common shares on May 18, 2026.


Repurchased 3.0 million shares of common stock for $174 million, or an average price of $58.18 per share. Our Board of Directors has increased our share buyback authorization back to a total of $250 million.


Management Comments


"Our first quarter net revenues were $2.02 billion, net earnings attributable to common shareholders were $156 million, diluted earnings per common share from continuing operations were $0.70 and return on adjusted tangible shareholders' equity was 10.9%. Net earnings attributable to common shareholders for the current quarter reflects a $36 million, non-cash, after-tax write-down of goodwill associated with the announced sale of Tessellis (the final component of our original investment in Linkem which was divested in 2024). In addition, we have $17 million of losses related to Market Financial Solutions and First Brands after adjusting for compensation and taxes. Our direct exposure to First Brands is now zero.


"We delivered first quarter record net revenues from overall Investment Banking Advisory and Equity and Debt Underwriting revenues, as well as from Equities, with net revenues increasing 40% and 37%, respectively, versus the first quarter of 2025. These results underscore both the strength of our franchise and the durability of our strategy.


"We made progress in the further wind-down of our legacy merchant banking portfolio, with the announced sale of Tessellis. We expect this transaction to close in the first quarter of 2027. Going forward, our financial results will increasingly reflect our core business activities.


"Over the last six months, our businesses have been operating exceptionally well, in fact setting a best-ever record in first quarter net revenues in our largest two businesses, as mentioned above. Management is disappointed and takes full responsibility for the losses already recognized and that may be absorbed over time in respect of First Brands, all of which are manageable.


“Investment Banking net revenues were $1.02 billion, up 45% from the prior year quarter. Growth was driven by improved Advisory and Equity Underwriting net revenues on market share gains and a stronger overall market for our services, supported by robust activity across both corporate and sponsor clients, as well as improved performance at Jefferies Finance. Our investment banking business is diversified, global and well-positioned and our team is doing an excellent job helping clients navigate the current environment.


"Capital Markets net revenues were $779 million, up 12% from the prior year quarter. Equities net revenues increased 37%, driven by market share gains, higher global trading volumes, and continued strength across our equity options, corporate derivatives and global electronic trading businesses. Fixed Income net revenues were $220 million, despite the mark-to-market loss associated with Market Financial Solutions, reflecting a slower market environment compared to the prior year quarter but improved activity relative to recent quarters.


"Asset management fees and investment return revenues were $159 million, up 91% compared to the prior year quarter. Investment return increased significantly from the prior year quarter due to improved performance across fund strategies.


"The world is challenging, but the acceleration in core business momentum that started in the second half of 2025 has continued through our first quarter of 2026 and into our second quarter. Our goal is to build upon this momentum throughout the rest of fiscal 2026 and beyond."


Richard Handler, CEO, and Brian Friedman, President


Financial Summary (Unaudited)




$ in thousands






Three Months Ended








 






February 28,

2026






November 30,

2025






February 28,

2025








Net revenues by source:






 






 






 








Advisory






$






527,128






 






$






634,203






 






$






397,780






 








Equity underwriting






 






305,969






 






 






339,799






 






 






128,520






 








Debt underwriting






 






181,858






 






 






215,757






 






 






199,362






 








Other investment banking






 






2,338






 






 






(1,784






)






 






(24,970






)








Total Investment Banking






 






1,017,293






 






 






1,187,975






 






 






700,692






 








Equities






 






558,488






 






 






485,869






 






 






409,058






 








Fixed income






 






220,268






 






 






206,045






 






 






289,226






 








Total Capital Markets






 






778,756






 






 






691,914






 






 






698,284






 








Total Investment Banking and Capital Markets Net revenues5






 






1,796,049






 






 






1,879,889






 






 






1,398,976






 








Asset management fees and revenues6






 






69,910






 






 






15,602






 






 






88,630






 








Investment return






 






88,992






 






 






65,018






 






 






(5,634






)








Allocated net interest4






 






(22,238






)






 






(21,130






)






 






(17,221






)








Other investments, inclusive of net interest






 






83,598






 






 






127,508






 






 






125,940






 








Total Asset Management Net revenues






 






220,262






 






 






186,998






 






 






191,715






 








Other






 






819






 






 






1,966






 






 






2,328






 








Total Net revenues by source






$






2,017,130






 






$






2,068,853






 






$






1,593,019






 








 






 






 






 








Non-interest expenses:






 






 






 








Compensation and benefits






$






1,085,890






 






$






1,080,779






 






$






841,127






 








Compensation ratio13






 






53.8






%






 






52.2






%






 






52.8






%








Non-compensation expenses






$






719,024






 






$






734,866






 






$






600,827






 








Non-compensation ratio13






 






35.6






%






 






35.5






%






 






37.7






%








Total Non-interest expenses






$






1,804,914






 






$






1,815,645






 






$






1,441,954






 








 






 






 






 








Net earnings from continuing operations before income taxes






$






212,216






 






$






253,208






 






$






151,065






 








Income tax expense






$






52,870






 






$






37,537






 






$






14,216






 








Income tax rate






 






24.9






%






 






14.8






%






 






9.4






%








Net earnings from continuing operations






$






159,346






 






$






215,671






 






$






136,849






 








Net losses from discontinued operations, net of income taxes






 






—






 






 






(4,374






)






 






—






 








Net losses attributable to noncontrolling interests






 






(15,858






)






 






(3,738






)






 






(6,983






)








Preferred stock dividends






 






19,504






 






 






24,145






 






 






16,039






 








Net earnings attributable to common shareholders






$






155,700






 






$






190,890






 






$






127,793






 







Highlights




Three Months Ended February 28, 2026 Versus February 28, 2025









Net earnings attributable to common shareholders of $156 million, or $0.70 per diluted common share from continuing operations.



Return on adjusted tangible shareholders' equity from continuing operations1 of 10.9%.



Repurchased 3.0 million shares of common stock for $174 million, at an average price of $58.18 per share, including 2.5 million shares of common stock in the open market for $144 million under our current Board of Directors authorization and 0.5 million shares of common stock for $30 million in connection with net-share settlements related to our equity compensation plans.



We had 204.4 million common shares outstanding and 255.5 million common shares outstanding on a fully diluted basis2 at February 28, 2026. Our book value per common share was $51.91 and adjusted tangible book value per fully diluted share3 was $34.24.



Effective tax rate from continuing operations of 24.9% compared to 9.4% for the prior year quarter. The fluctuation in rate was primarily driven by the resolution of certain state and local tax matters which occurred during the first quarter of 2025.









Investment Banking and Capital Markets









Investment Banking net revenues from combined Advisory, Equity underwriting and Debt underwriting totaled $1.01 billion, our best first quarter ever and 40% higher than the prior year first quarter.


Advisory net revenues of $527 million were 33% higher than the prior year quarter, driven by increased deal volumes across several sectors.



Underwriting net revenues of $488 million were 49% higher than the prior year quarter, primarily driven by market share gains and increased activity in Equity underwriting across most sectors. Debt underwriting remained solid but decreased compared to the prior year quarter due to lower deal values.






Capital Markets net revenues of $779 million were 12% higher compared to the prior year quarter.


Equities net revenues increased 37%, marking our strongest first quarter on record, due to market share gains and higher global trading volumes driving stronger results, particularly within our equity options, corporate derivatives, and global electronic trading businesses. Additionally, our prime services, Europe and U.S. equity cash businesses, also delivered strong results.



Fixed Income net revenues decreased from the prior year quarter. Strong performance in our municipal securities and emerging markets businesses was more than offset by lower results from our securitized products business. Additionally, current quarter results include a mark-to-market loss associated with Market Financial Solutions.












Asset Management









Asset Management fees and revenues and investment return of $159 million were meaningfully higher than the prior year quarter. Results for the current quarter includes a final $10 million pre-tax loss that fully writes-off our direct exposure to First Brands.



Asset management fees and revenues decreased from the prior year quarter, as a result of higher performance fees from funds and accounts managed by our strategic partners, offset by lower performance fees largely associated with Point Bonita.



Investment return increased significantly from the prior year quarter due to improved performance across several fund strategies, particularly those with a long equity bias.









Non-interest Expenses









Compensation and benefits expense as a percentage of Net revenues was 53.8%, compared to 52.8% for the prior year quarter.



Non-compensation expenses were higher primarily due to increased brokerage and clearing fees associated with increased equities trading volumes, and increased technology and communication expenses, as well as a write-down associated with Tessellis. Non-compensation expenses as a percentage of Net revenues decreased to 35.6%, compared to 37.7% for the prior year quarter.







* * * *


Amounts herein pertaining to February 28, 2026 represent a preliminary estimate as of the date of this earnings release and may be revised upon filing our Quarterly Report on Form 10-Q with the Securities and Exchange Commission (“SEC”). More information on our results of operations for the three months ended February 28, 2026 will be provided upon filing our Quarterly Report on Form 10-Q with the SEC, which we expect to file on or about April 7, 2026.


This press release contains certain “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current views and include statements about our future and statements that are not historical facts. These forward-looking statements are usually preceded by the words “should,” “expect,” “intend,” “may,” “will,” "would," or similar expressions. Forward-looking statements may contain expectations regarding revenues, earnings, operations, and other results, and may include statements of future performance, plans, and objectives. Forward-looking statements may also include statements pertaining to our strategies for future development of our businesses and products. Forward-looking statements represent only our belief regarding future events, many of which by their nature are inherently uncertain. It is possible that the actual results may differ, possibly materially, from the anticipated results indicated in these forward-looking statements. Information regarding important factors, including Risk Factors that could cause actual results to differ, perhaps materially, from those in our forward-looking statements is contained in reports we file with the SEC. You should read and interpret any forward-looking statement together with reports we file with the SEC. We undertake no obligation to update or revise any such forward-looking statement to reflect subsequent circumstances.


Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy will be profitable or equal the corresponding indicated performance level(s).


Consolidated Statements of Earnings (Unaudited)




$ in thousands, except per share amounts






Three Months Ended February 28,








 






 






2026






 






 






2025






 








Revenues






 






 








Investment banking






$






1,018,284






 






$






729,510






 








Principal transactions






 






487,498






 






 






407,230






 








Commissions and other fees






 






367,604






 






 






288,300






 








Asset management fees and revenues






 






67,362






 






 






85,408






 








Interest






 






813,119






 






 






845,171






 








Other






 






117,398






 






 






117,245






 








Total revenues






 






2,871,265






 






 






2,472,864






 








Interest expense






 






854,135






 






 






879,845






 








Net revenues






 






2,017,130






 






 






1,593,019






 








Non-interest expenses






 






 








Compensation and benefits






 






1,085,890






 






 






841,127






 








Brokerage and clearing fees






 






133,132






 






 






109,436






 








Underwriting costs






 






31,383






 






 






17,846






 








Technology and communications






 






159,858






 






 






139,475






 








Occupancy and equipment rental






 






33,860






 






 






30,199






 








Business development






 






75,422






 






 






72,291






 








Professional services






 






76,944






 






 






72,466






 








Depreciation and amortization






 






56,865






 






 






30,988






 








Cost of sales






 






29,920






 






 






41,568






 








Other expenses






 






121,640






 






 






86,558






 








Total non-interest expenses






 






1,804,914






 






 






1,441,954






 








Earnings before income taxes






 






212,216






 






 






151,065






 








Income tax expense






 






52,870






 






 






14,216






 








Net earnings






 






159,346






 






 






136,849






 








Net losses attributable to noncontrolling interests






 






(15,858






)






 






(6,983






)








Preferred stock dividends






 






19,504






 






 






16,039






 








Net earnings attributable to common shareholders






$






155,700






 






$






127,793






 







Financial Data and Metrics (Unaudited)




 






Three Months Ended








 






February 28,

2026






November 30,

2025






February 28,

2025








Other Data:






 






 






 








Number of trading days






 






61






 






63






 






61








Number of trading loss days7






 






1






 






3






 






4








Average VaR (in millions)8






$






9.78






$






9.50






$






13.13









In millions, except other data






February 28,

2026






November 30,

2025






February 28,

2025








Financial position:






 






 






 








Total assets






$






74,380






$






76,012






$






70,219








Cash and cash equivalents






 






11,963






 






14,044






 






11,176








Financial instruments owned






 






28,079






 






27,723






 






26,087








Level 3 financial instruments owned9






 






849






 






738






 






781








Goodwill and intangible assets, net14






 






1,979






 






2,040






 






2,038








Total equity






 






10,662






 






10,642






 






10,268








Total shareholders' equity






 






10,611






 






10,575






 






10,204








Tangible shareholders' equity10






 






8,632






 






8,535






 






8,166








Other data and financial ratios:






 






 






 








Leverage ratio11






 






7.0






 






7.1






 






6.8








Tangible gross leverage ratio12






 






8.4






 






8.7






 






8.3








Number of employees at period end






 






7,596






 






7,787






 






7,701








Number of employees excluding Tessellis and Stratos at period end






 






6,221






 






6,194






 






5,994







Components of Numerators and Denominators for Earnings Per Common Share




$ in thousands, except per share amounts






Three Months Ended




February 28,








 






 






2026






 






 






2025






 








Numerator for earnings per common share:






 






 








Net earnings






$






159,346






 






$






136,849






 








Less: Net losses attributable to noncontrolling interests






 






(15,858






)






 






(6,983






)








Allocation of earnings to participating securities






 






(19,504






)






 






(16,039






)








Net earnings attributable to common shareholders for basic earnings per share






$






155,700






 






$






127,793






 








Net earnings attributable to common shareholders for diluted earnings per share






$






155,700






 






$






127,793






 








 






 






 








Denominator for earnings per common share:






 






 








Weighted average common shares outstanding






 






206,093






 






 






206,046






 








Weighted average shares of restricted stock outstanding with future service required






 






(2,147






)






 






(2,200






)








Weighted average restricted stock units outstanding with no future service required






 






11,761






 






 






10,690






 








Weighted average basic common shares






 






215,707






 






 






214,536






 








Stock options and other share-based awards






 






5,152






 






 






5,287






 








Senior executive compensation plan restricted stock unit awards






 






2,411






 






 






2,625






 








Weighted average diluted common shares






 






223,270






 






 






222,448






 








 






 






 








Earnings per common share:






 






 








Basic






$






0.72






 






$






0.60






 








Diluted






$






0.70






 






$






0.57






 







Non-GAAP Reconciliations


The following tables reconcile our non-GAAP financial measures to their respective U.S. GAAP financial measures. Management believes such non-GAAP financial measures are useful to investors as they allow them to view our results through the eyes of management, while facilitating a comparison across historical periods. These measures should not be considered a substitute for, or superior to, measures prepared in accordance with U.S. GAAP.


Return on Adjusted Tangible Equity Reconciliation




$ in thousands






Three Months Ended




February 28,








 






 






2026






 






 






2025






 








Net earnings attributable to common shareholders (GAAP)






$






155,700






 






$






127,791






 








Intangible amortization and impairment expense, net of tax15






 






42,433






 






 






7,073






 








Adjusted net earnings to common shareholders (non-GAAP)






 






198,133






 






 






134,864






 








Preferred stock dividends






 






19,504






 






 






16,039






 








Adjusted net earnings to total shareholders (non-GAAP)






$






217,637






 






$






150,903






 








 






 






 








Adjusted net earnings to total shareholders (non-GAAP)1






$






870,548






 






$






603,612






 








 






 






 








 






November 30,








 






 






2025






 






 






2024






 








Shareholders' equity (GAAP)






$






10,574,696






 






$






10,156,772






 








Less: Goodwill and intangible assets, net






 






(2,040,147






)






 






(2,054,310






)








Less: Deferred tax asset, net






 






(459,052






)






 






(497,590






)








Less: Weighted average impact of dividends and share repurchases






 






(106,532






)






 






(94,936






)








Adjusted tangible shareholders' equity (non-GAAP)






$






7,968,965






 






$






7,509,936






 








 






 






 








Return on adjusted tangible shareholders' equity (non-GAAP)1






 






10.9






%






 






8.0






%







Adjusted Tangible Book Value and Fully Diluted Shares Outstanding Reconciliation


Reconciliation of book value (shareholders' equity) to adjusted tangible book value and common shares outstanding to fully diluted shares outstanding:




$ in thousands, except per share amounts






February 28, 2026






February 28, 2025








Book value (GAAP)






$






10,610,845






 






$






10,204,228






 








Stock options(1)






 






114,939






 






 






114,939






 








Goodwill and intangible assets, net(2)






 






(1,978,652






)






 






(2,037,906






)








Adjusted tangible book value (non-GAAP)






$






8,747,132






 






$






8,281,261






 








 






 






 






 








Common shares outstanding (GAAP)






 






204,423






 






 






206,250






 








Preferred shares






 






27,563






 






 






27,563






 








Restricted stock units ("RSUs")






 






16,746






 






 






13,950






 








Stock options(1)






 






5,065






 






 






5,065






 








Other






 






1,671






 






 






1,459






 








Adjusted fully diluted shares outstanding (non-GAAP)(3)






 






255,468






 






 






254,287






 








 






 






 






 








Book value per common share outstanding






$






51.91






 






$






49.48






 








Adjusted tangible book value per fully diluted share outstanding (non-GAAP)






$






34.24






 






$






32.57






 









(1)







Stock options added to book value are equal to the total number of stock options outstanding as of February 28, 2026 and 2025 of 5.1 million multiplied by the exercise price of $22.69 on February 28, 2026 and 2025.








(2)







Includes goodwill and intangible assets related to Tessellis which were reclassified to assets held for sale during the first quarter of 2026.








(3)







Fully diluted shares outstanding include vested and unvested RSUs as well as the target number of RSUs issuable under the senior executive compensation plans until the performance period is complete. Fully diluted shares outstanding also include all stock options and the impact of convertible preferred shares if-converted to common shares.







Notes



Return on adjusted tangible shareholders' equity represents a non-GAAP financial measure and is based on full year or annualized amounts. Refer to schedule on page 8 for a reconciliation to U.S. GAAP amounts.



Shares outstanding on a fully diluted basis (a non-GAAP financial measure) is defined as common shares outstanding plus preferred shares, restricted stock units, stock options and other shares. Refer to schedule on page 9 for a reconciliation to U.S. GAAP amounts.



Adjusted tangible book value per fully diluted share (a non-GAAP financial measure) is defined as adjusted tangible book value (a non-GAAP financial measure) divided by shares outstanding on a fully diluted basis (a non-GAAP financial measure). Refer to schedule on page 9 for a reconciliation to U.S. GAAP amounts.



Allocated net interest represents an allocation to Asset Management of certain of our long-term debt interest expense, net of interest income on our Cash and cash equivalents and other sources of liquidity. Allocated net interest has been disaggregated to increase transparency and to present direct Asset Management revenues. We believe that aggregating Allocated net interest would obscure the revenue results by including an amount that is unique to our credit spreads, debt maturity profile, capital structure, liquidity risks and allocation methods.



Allocated net interest is not separately disaggregated for Investment Banking and Capital Markets. This presentation is aligned to our Investment Banking and Capital Markets internal performance measurement.



Asset management fees and revenues include management and performance fees from funds and accounts managed by us, revenue from strategic affiliated asset managers where we are entitled to portions their operating revenues and income based on our ownership interests in the affiliates.



Number of trading loss days is calculated based on trading activities in our Investment Banking and Capital Markets and Asset Management business segments, excluding certain Other investments.



VaR estimates the potential loss in value of trading positions due to adverse market movements over a one-day time horizon with a 95% confidence level. For a further discussion of the calculation of VaR, see "Value-at-Risk" in Part II, Item 7A "Quantitative and Qualitative Disclosures About Market Risk" in our Annual Report on Form 10-K for the year ended November 30, 2025.



Level 3 financial instruments represent those financial instruments classified as such under Accounting Standards Codification 820, accounted for at fair value and included within Financial instruments owned.



Tangible shareholders' equity (a non-GAAP financial measure) is defined as shareholders' equity less Intangible assets and goodwill. We believe that tangible shareholders' equity is meaningful for valuation purposes, as financial companies are often measured as a multiple of tangible shareholders' equity, making these ratios meaningful for investors.



Leverage ratio equals total assets divided by total equity.



Tangible gross leverage ratio (a non-GAAP financial measure) equals total assets less goodwill and intangible assets divided by tangible shareholders' equity. The tangible gross leverage ratio is used by rating agencies in assessing our leverage ratio.



Compensation ratio equals total compensation expense divided by total net revenues. Non-compensation ratio equals total non-compensation expense divided by total net revenues.



Includes goodwill and intangible assets related to Tessellis which were reclassified to assets held for sale during the first quarter of 2026.



Includes a $35.5 million after-tax write-down of goodwill associated with Tessellis.



 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260325419075/en/
FOR MORE INFORMATION

Jonathan Freedman 212.778.8913


Original: Jefferies Announces First Quarter 2026 Financial Results