Key Takeaways JEF's Q4 adjusted EPS rose 5.5% to $0.96, surpassing the consensus estimate of $0.83.Net revenues climbed 5.6% Y/Y to $2.07B, driven by gains in Investment Banking and Equities.Quarterly expenses jumped to $1.82B due to rising compensation, tech and business development costs.Jefferies Financial Group’s (JEF) fourth-quarter fiscal 2025 (ended Nov. 30) adjusted earnings from continuing operations of 96 cents per share grew 5.5% year over year. The Zacks Consensus Estimate for earnings was 83 ce ...

Core Insights - Jefferies reported a higher profit for the fourth quarter, driven by a rebound in dealmaking and strong underwriting, indicating robust activity in Wall Street's investment banking sector [1] Group 1: Financial Performance - The company's fourth-quarter profit increased significantly, reflecting improved market conditions and increased transaction volumes [1] - The rebound in dealmaking suggests a recovery in mergers and acquisitions, which is a positive sign for the investment banking industry [1] Group 2: Market Implications - The strong underwriting performance indicates that investor confidence is returning, which may lead to more capital market activities [1] - This performance serves as an early indicator of the overall strength of Wall Street's investment banking landscape [1]

Financial Performance - Net earnings attributable to common shareholders for Q4 2025 were $190.89 million, or $0.87 per diluted share, compared to $205.75 million, or $0.91 per diluted share in Q4 2024[2]. - Adjusted net earnings attributable to common shareholders for Q4 2025 were $213.46 million, or $0.96 per diluted share, reflecting a strong performance despite a $30 million markdown related to Point Bonita[4]. - Total net revenues for Q4 2025 were $2.07 billion, up 5.7% from $1.96 billion in Q4 2024, driven by a 20% increase in Investment Banking net revenues[2][4]. - Investment Banking net revenues reached $1.19 billion in Q4 2025, a 20% increase year-over-year, with strong performance in Advisory services[5][12]. - Capital Markets net revenues were $692 million, up 6% from the prior year quarter, with Equities net revenues growing 18%[6][12]. - Asset Management net revenues were $186.99 million, down from $314.75 million in Q4 2024, primarily due to a pre-tax loss of $30 million related to Point Bonita[7][12]. - Net earnings attributable to common shareholders for the three months ended November 30, 2025, were $190,890, compared to $205,746 in the prior year, a decrease of 7.2%[21]. - Adjusted net earnings attributable to common shareholders for the three months ended November 30, 2025, were $213,460, compared to $205,747 in 2024, an increase of 3.3%[24]. Shareholder Returns - The company declared a quarterly cash dividend of $0.40 per common share, payable on February 27, 2026[3]. - Preferred stock dividends for the year ended November 30, 2025, were $79.68 million, an increase from $74.11 million in 2024[25]. Tax and Expenses - The effective tax rate from continuing operations was 14.8%, significantly lower than 28.2% in the prior year quarter, primarily due to the resolution of certain tax matters[13]. - Compensation and benefits expense as a percentage of net revenues increased to 52.2%, compared to 50.2% for the prior year quarter[4]. - Non-compensation expenses as a percentage of net revenues rose to 35.5%, up from 34.2% in the prior year quarter, reflecting increased brokerage and clearing fees due to higher equities trading volumes[4]. Asset and Leverage Metrics - Total assets as of November 30, 2025, were $76,012,000, compared to $64,360,000 in the prior year, reflecting a growth of 18.1%[20]. - The leverage ratio increased to 7.1 from 6.3 in the prior year, indicating a higher level of debt relative to equity[20]. Market Strategy - Jefferies is focused on technology investments to enhance productivity and client solutions, aiming for long-term growth and market share gains[8]. Adjusted Metrics - The return on adjusted tangible shareholders' equity from continuing operations was 11.8%, with an adjusted return of 12.9% after excluding the impact of the Point Bonita markdown[4][13]. - Adjusted net earnings excluding Point Bonita loss for Q4 2025 were $249.09 million, up 7.1% from $232.44 million in Q4 2024[25]. - The adjusted return on adjusted tangible shareholders' equity from continuing operations for Q4 2025 was 12.9%, compared to 12.7% in Q4 2024[25]. - Adjusted tangible book value increased to $8.65 billion in Q4 2025, up 5.3% from $8.22 billion in Q4 2024[26]. Trading and Risk Metrics - The number of trading days for the three months ended November 30, 2025, was 63, consistent with the same period in 2024[20]. - The average Value at Risk (VaR) for the three months ended November 30, 2025, was $9.50 million, down from $10.45 million in the prior quarter[20].

Core Viewpoint - Jefferies Financial Group Inc. is experiencing fluctuations in its consensus price target, reflecting changing analyst sentiments and indicating a generally positive outlook for the company's future performance [1][6]. Price Target Trends - The average price target for Jefferies increased to $83.67 last month, suggesting positive sentiment from analysts, likely due to favorable conditions in investment banking and recent business acquisitions [2][6]. - A year ago, the average price target was $77.5, showing a moderate increase over the year, which reflects a generally positive outlook from analysts over the longer term [4]. Analyst Sentiment - Despite a current price target of $47 set by Chris Kotowski from Oppenheimer, the overall trend indicates increasing confidence in Jefferies' future performance [2][6]. - The average price target in the last quarter was $76, lower than the most recent month's target, suggesting that analysts have become more optimistic about Jefferies' prospects [3]. Upcoming Events - The upcoming fourth-quarter earnings release on January 7, 2025, is highly anticipated, as it may provide further insights into the company's financial health and future prospects [3][6].

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Jefferies Financial Group Inc. (NYSE:JEF) will release earnings results for the fourth quarter, after the closing bell on Wednesday, Jan. 7, 2025.Analysts expect the company to report quarterly earnings at 94 cents per share, up from 93 cents per share in the year-ago period. The consensus estimate for Jefferies Financial's quarterly revenue is $1.99 billion, up from $1.96 billion a year earlier, according to data from Benzinga Pro.On Dec. 11, Oppenheimer analyst Chris Kotowski maintained Jefferies Financia ...

Jefferies Financial Group Inc. (NYSE:JEF) will release earnings results for the fourth quarter, after the closing bell on Wednesday, Jan. 7, 2025.Analysts expect the company to report quarterly earnings at 94 cents per share, up from 93 cents per share in the year-ago period. The consensus estimate for Jefferies Financial's quarterly revenue is $1.99 billion, up from $1.96 billion a year earlier, according to data from Benzinga Pro.On Dec. 11, Oppenheimer analyst Chris Kotowski maintained Jefferies Financia ...

New York, New York--(Newsfile Corp. - January 5, 2026) - Leading international securities law firm Bleichmar Fonti & Auld LLP announces an investigation into Jefferies Financial Group Inc. (NYSE: JEF) and Point Bonita Capital for potential violations of the federal securities laws after SEC probe is revealed.If you invested in Jefferies or Point Bonita, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/jefferies-financial-group-inc-class-action.Why are Jefferies ...

Jefferies Financial Group Inc. (NYSE:JEF) will release earnings results for the fourth quarter, after the closing bell on Wednesday, Jan. 7, 2025.Analysts expect the company to report quarterly earnings at 94 cents per share, up from 93 cents per share in the year-ago period. The consensus estimate for Jefferies Financial's quarterly revenue is $1.99 billion, up from $1.96 billion a year earlier, according to data from Benzinga Pro.On Dec. 8, Jefferies agreed to acquire 50% interest in Hildene Holding Compa ...

Group 1 - Jefferies Financial Group Inc. is set to release its fourth-quarter earnings results on January 7, 2025, after the market closes [1] - Analysts project Jefferies Financial to report earnings of 94 cents per share, an increase from 93 cents per share in the same quarter last year [1] - The consensus estimate for Jefferies Financial's quarterly revenue is $1.99 billion, up from $1.96 billion a year earlier [1] Group 2 - On December 8, Jefferies agreed to acquire a 50% interest in Hildene Holding Company [2] - Constellation shares rose by 2.3% to close at $141.17 on the preceding Friday [2]