Jefferies Announces Second Quarter 2025 Financial Results

About this update from Jefferies Financial Group Inc.

NEW YORK, June 25, 2025 --( BUSINESS WIRE )-- Jefferies Financial Group Inc. (NYSE: JEF): Q2 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 August 29, 2025 to record holders of Jefferies common shares on August 18, 2025. Management Comments "Net revenues of $1.63 billion for the second quarter reflect a resilient full-service investment banking and capital markets business against a backdrop of significant uncertainty related to U.S. policy and geopolitical events which meaningfully slowed activity levels for the first two months of the quarter. In May, some clarity came to the economy and markets, which began to restore investor confidence, and we experienced a noticeable increase in momentum. Despite the difficult first two months of this period, our quarterly Investment Banking Advisory activity was particularly strong and we believe our momentum and market position continues to strengthen. While nothing is certain, the global economy continues to show remarkable resilience in the face of incredibly significant crosscurrents. Given the strength of our current backlog, overall activity levels and an abundance of discussions with clients around capital formation, strategic opportunities and their need to transact, we are increasingly optimistic about the second half of 2025. "Despite strong momentum in Advisory and Equities, net earnings attributable to common shareholders of $88 million and return on adjusted tangible shareholders' equity of 5.5% were impacted by lower revenues in Fixed Income, lower activity levels at Jefferies Finance and some modest one-time non-compensation expenses. We expect margins to normalize as the business environment improves and our operating leverage takes effect. "Investment Banking net revenues from Advisory, Equity underwriting and Debt underwriting totaling $786 million for the second quarter were up 6.4% versus the prior year quarter. Strong performance in Advisory, which was up 61%, largely from continued market share gains, was offset by Equity underwriting net revenues, which were down 51%, consistent with a reduction in deal activity attributable to volatile equity market conditions, particularly in the first two months of the quarter when activity was severely muted. Debt underwriting net revenues were flat for the second quarter compared to the prior year quarter. "Capital Markets net revenues of $704 million for the second quarter were down slightly versus the prior year quarter. Equities net revenues of $526 million increased 24% from the prior year quarter, as increased global trading volumes and activity levels in corporate derivatives drove strong global performance. Fixed Income net revenues of $178 million decreased 37% from the prior year comparable quarter. "Asset Management fees and investment return revenues of $71 million for the quarter were up 43% from the prior year quarter, primarily due to improved performance across several strategies." Richard Handler, CEO, and Brian Friedman, President Financial Summary (Unaudited) Highlights Amounts herein pertaining to May 31, 2025 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, 2025 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, 2025. 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. 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 Source: Jefferies Financial Group Inc. View source version on businesswire.com: https://www.businesswire.com/news/home/20250625269412/en/ Contacts Jonathan Freedman 212.778.8913

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