Jefferies Announces Fourth Quarter 2025 Financial Results

About this update from Jefferies Financial Group Inc.

NEW YORK, January 07, 2026 --( BUSINESS WIRE )-- Jefferies Financial Group Inc. (NYSE: JEF): Q4 Financial Highlights Quarterly Cash Dividend The Jefferies Board of Directors declared a quarterly cash dividend equal to $0.40 per Jefferies common share, payable on February 27, 2026 to record holders of Jefferies common shares on February 17, 2026. Management Comments "Our fourth quarter net revenues were $2.07 billion, net earnings attributable to common shareholders were $191 million and diluted earnings per common share from continuing operations were $0.87. Adjusting our results for a markdown and resulting pre-tax loss of $30 million associated with our investment in Point Bonita—a fund we advise and in which we hold an equity interest—our net earnings attributable to common shareholders was $213 million, or $0.96 per diluted share. Our quarterly results reflect strong performance and sustained momentum in both Investment Banking and Equities, with net revenues increasing 20% and 18%, respectively, partially offset by lower net revenues in Fixed Income and Asset Management. Adjusting for the impact of Point Bonita, our businesses delivered an adjusted return on adjusted tangible shareholders' equity of 12.9%. "Investment Banking net revenues were $1.19 billion, up 20% from the prior year quarter, driven by market share gains and a stronger overall market for our services. Our Advisory net revenues were our second-best quarter on record, reflecting strong corporate and sponsor activity. Approximately 44% of annual Equity Underwriting net revenues were generated in the fourth quarter, positioning us well for 2026 as sponsor activity accelerates. "Capital Markets net revenues were $692 million, up 6% from the prior year quarter. Equities net revenues grew 18%, driven by higher global volumes, market share gains, and continued strength in prime services, corporate derivatives and electronic trading—key areas of our growth strategy. Fixed Income net revenues declined 14% due to persistent credit market headwinds resulting in lower overall activity compared to the prior year quarter. "Asset management fees and investment return revenues of $81 million was lower from the prior year quarter. While fee income was stable, an increase in investment return performance from certain strategies was offset by underperformance in other strategies including a pre-tax loss of $30 million related to our investment in Point Bonita. "We are intensely focused on executing on our opportunity and realizing the attractive and consistent results that we believe Jefferies can produce. We believe we can continue to gain market position in what we anticipate will be an increasingly favorable environment. Ongoing technology investments are yielding innovation, enhanced productivity and better client solutions. Further, we continue to drive opportunities and initiatives we have underway across our firm to support additional long-term growth. Consistent market share gains, margin improvement and the benefits of scale and brand, and perhaps a more "normal" operating environment, all bode extremely well for Jefferies." Richard Handler, CEO, and Brian Friedman, President Please refer to the just-released Jefferies Financial Group Annual Letter from our CEO and President for broader perspective on 2025, as well as our strategy and outlook. Financial Summary (Unaudited) Highlights * * * * Amounts herein pertaining to November 30, 2025 represent a preliminary estimate as of the date of this earnings release and may be revised upon filing our Annual Report on Form 10-K with the Securities and Exchange Commission ("SEC"). More information on our results of operations for the year ended November 30, 2025 will be provided upon filing our Annual Report on Form 10-K with the SEC, which we expect to file on or about January 28, 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) Financial Data and Metrics (Unaudited) Components of Numerators and Denominators for Earnings Per Common Share 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. Adjusted Net Earnings Attributable to Common Shareholders and Adjusted Earnings Per Share Reconciliation Return on Adjusted Tangible Equity Reconciliation 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: Notes View source version on businesswire.com: https://www.businesswire.com/news/home/20260107796286/en/ Contacts Jonathan Freedman 212.778.8913

View stock analysis, news, and events for Jefferies Financial Group Inc.