Jefferies Financial : Statement of Financial Condition (11/30/2025)

About this update from Jefferies Financial Group Inc.

Jefferies Financial Services, Inc. (SEC I.D No. 026-00164) Statement of Financial Condition as of November 30, 2025 and Independent Auditor's Report ****** Deloitte & Touche LLP 30 Rockefeller Plaza New York, NY 10112 Tel: +1 212-492-4000 https://www.deloitte.com INDEPENDENT AUDITOR'S REPORT To the Board of Directors and Stockholder of Jefferies Financial Services, Inc. We have audited the accompanying statement of financial condition of Jefferies Financial Services, Inc. (the "Company"), as of November 30, 2025, and the related notes to the statement of financial condition (collectively referred to as the "financial statements"). In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of November 30, 2025, in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for one year after the date that the financial statements are issued. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. January 28, 2026 Statement of Financial Condition $ in thousands November 30, 2025 Assets Cash and cash equivalents .................................................................................................................................................................................. $ 2,466,277 Financial instruments owned, at fair value (includes $15,763 of securities pledged) ................................................................................ 4,431,536 Securities purchased under agreements to resell ........................................................................................................................................... 379,995 Receivables: Brokers, dealers and clearing organizations ................................................................................................................................................. 679,156 Fees, interest and other .................................................................................................................................................................................... 9,581 Due from affiliates ............................................................................................................................................................................................ 51,825 Premises and equipment ..................................................................................................................................................................................... 134 Other assets ........................................................................................................................................................................................................... 7,978 Total assets ........................................................................................................................................................................................................... $ 8,026,482 Liabilities and Stockholder's Equity Financial instruments sold, not yet purchased, at fair value .......................................................................................................................... $ 2,795,560 Securities loaned ................................................................................................................................................................................................... 31,159 Payables: Brokers, dealers and clearing organizations ................................................................................................................................................ 2,525,669 Due to Parent and affiliates ............................................................................................................................................................................. 1,875,720 Accrued expenses and other liabilities .............................................................................................................................................................. 38,562 Total liabilities ....................................................................................................................................................................................................... 7,266,670 Subordinated liabilities ......................................................................................................................................................................................... 550,000 Stockholder's equity Class A common stock, $2 par value; authorized, issued and outstanding 1,000 shares ..................................................................... 2 Additional paid-in-capital ................................................................................................................................................................................. 290,371 Retained deficit .................................................................................................................................................................................................. (80,561) Total stockholder's equity ................................................................................................................................................................................... 209,812 Total liabilities and stockholder's equity .......................................................................................................................................................... $ 8,026,482 See accompanying notes to Statement of Financial Condition. 3 Jefferies Financial Services, Inc. Notes to Statement of Financial Condition Note 1. Organization and Basis of Presentation Organization and Business Jefferies Financial Services, Inc. (the "Company"), an entity incorporated in the State of Delaware, engages primarily as a market maker in Over-the-Counter ("OTC") derivative transactions and acts as a dealer in swap and security-based swap transactions to a broad range of clients including its affiliates. The Company is a wholly owned subsidiary of Jefferies Financial Group Inc. ("Jefferies" or the "Parent"), a diversified holding company incorporated in the state of New York and engaged in a variety of businesses. The Company operates and is managed as a single reportable business within the Capital Markets segment of Jefferies. The Company is a registered OTC derivatives dealer and is conditionally registered as a security-based swap dealer with the Securities Exchange Commission ("SEC") and is subject to the SEC's regulatory rules and minimum net capital requirements. Furthermore, as a registered swap dealer with the Commodity Futures Trading Commission ("CFTC") and a member of the National Futures Association ("NFA"), the Company is also subject to the CFTC's regulatory rules and the minimum net capital requirements under both the CFTC and the NFA. The Company is dependent on Jefferies LLC, a registered broker-dealer and subsidiary of the Parent, wherein Jefferies LLC employees provide trade support, operational support, execution, and settlement services, as well as other supporting roles, for the Company's OTC derivatives and swaps business. Basis of Presentation The accompanying Statement of Financial Condition has been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). These principles require management to make a number of estimates and assumptions that may affect the amounts reported in the Statement of Financial Condition and accompanying notes. The most important of these estimates and assumptions relate to fair value measurements, related party transactions, compensation and benefits, and the accounting for income taxes. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. Subsequent Events Management has evaluated events and transactions that occurred subsequent to November 30, 2025 through the date this Statement of Financial Condition was issued, and determined there were no events or transactions during such period requiring recognition or disclosure in the Statement of Financial Condition. Note 2. Significant Accounting Policies Cash Equivalents Cash equivalents include highly liquid investments, including money market funds, not held for resale with original maturities of three months or less. Financial Instruments and Fair Value Financial instruments owned and Financial instruments sold, not yet purchased are recorded at fair value as required by accounting pronouncements. These instruments primarily represent the Company's trading activities and include both cash and derivative products. The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). Fair Value Hierarchy. In determining fair value, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from independent sources. Unobservable inputs reflect the assumptions that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The Company applies a hierarchy to categorize its fair value measurements broken down into three levels based on the transparency of inputs as follows: Level 1 - Quoted prices are available in active markets for identical assets or liabilities at the reported date. Valuation adjustments and block discounts are not applied to Level 1 instruments. Level 2 - Pricing inputs other than quoted prices in active markets, which are either directly or indirectly observable at the reported date. The nature of these financial instruments include cash instruments for which quoted prices are available but traded less frequently, derivative instruments for which fair values have been derived using model inputs that are directly observable in the market, or can be derived principally from, or corroborated by, observable market data, and instruments that are fair valued by using other financial instruments, the parameters of which can be directly observed. Level 3 - Instruments that have little to no pricing observability at the reported date. These financial instruments are measured using management's best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. Certain financial instruments have bid and ask prices that can be observed in the marketplace. For financial instruments whose inputs are based on bid-ask prices, the financial instrument is valued at the point within the bid-ask range that meets the Company's best estimate of fair value. The Company uses prices and inputs that are current at the measurement date. For financial instruments that do not have readily determinable fair values using quoted market prices, the determination of fair value is based on the best available information, taking into account the types of financial instruments, current financial information, restrictions (if any) on dispositions, fair values of underlying financial instruments and quotations for similar instruments. 4 Jefferies Financial Services, Inc.

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