Jefferies(JEF) - 2025 Q3 - Quarterly Results

Executive Summary Jefferies Financial Group reported strong Q3 2025 results, with significant net earnings and revenue growth from Investment Banking and Capital Markets Q3 & YTD Financial Highlights Q3 2025 financial highlights show significant year-over-year growth in net earnings and total revenues, driven by Investment Banking and Capital Markets Key Financial Highlights ($ thousands, except per share amounts) | Quarter End 3Q25 | Quarter End 3Q24 | Year-to-Date 2025 | Year-to-Date 2024 | | :--------------- | :--------------- | :---------------- | :---------------- | | Net earnings attributable to common shareholders | $223,986 | $167,128 | $439,912 | $462,719 | | Diluted EPS from continuing operations | $1.01 | $0.72 | $1.98 | $2.06 | | Return on adjusted tangible shareholders' equity from continuing operations | 13.6 % | 10.3 % | 9.3 % | 10.0 % | | Total net revenues | $2,047,432 | $1,683,552 | $5,274,898 | $5,078,200 | | Investment banking net revenues | $1,135,325 | $943,566 | $2,602,324 | $2,457,963 | | Capital markets net revenues | $723,382 | $676,525 | $2,125,821 | $2,107,863 | | Asset management net revenues | $176,882 | $59,012 | $523,218 | $488,919 | | Book value per common share | $50.60 | $48.89 | $50.60 | $48.89 | | Adjusted tangible book value per fully diluted share | $33.38 | $31.87 | $33.38 | $31.87 | Management Commentary Management highlighted continued market position growth, record Investment Banking Advisory results, and optimism for long-term value delivery - Net revenues of $2.05 billion for Q3 2025 reflect continued growth in market position amid a strengthening environment for services[4] - Investment Banking Advisory business delivered record quarterly results, driven by increased market share, human capital investments, and improved M&A and capital formation environments[4] - Management is optimistic about the near and long-term outlook for Jefferies, citing strong positioning with talent, global reach, product offerings, client relationships, and brand[5] Quarterly Cash Dividend The Board declared a $0.40 per common share quarterly cash dividend, payable in November 2025 - Quarterly cash dividend declared: $0.40 per Jefferies common share[3] - Payment Date: November 26, 2025[3] - Record Date: November 17, 2025[3] Detailed Financial Performance (Unaudited) This section details Jefferies' unaudited financial performance, covering net revenues by source, non-interest expenses, and consolidated earnings Net Revenues by Source Q3 2025 total net revenues increased to $2.05 billion, primarily from strong Investment Banking and Capital Markets, with overall year-to-date growth Net Revenues by Source ($ thousands) | Three Months Ended Aug 31, 2025 | Three Months Ended Aug 31, 2024 | Nine Months Ended Aug 31, 2025 | Nine Months Ended Aug 31, 2024 | | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Total Investment Banking | $1,135,325 | $943,566 | $2,602,324 | $2,457,963 | | Total Capital Markets | $723,382 | $676,525 | $2,125,821 | $2,107,863 | | Total Asset Management Net revenues | $176,882 | $59,012 | $523,218 | $488,919 | | Other | $11,843 | $4,449 | $23,535 | $23,455 | | Total Net revenues by source | $2,047,432 | $1,683,552 | $5,274,898 | $5,078,200 | Investment Banking Investment Banking net revenues grew 20.3% year-over-year in Q3 2025 to $1.14 billion, driven by record Advisory and improved underwriting Investment Banking Net Revenues ($ thousands) | Three Months Ended Aug 31, 2025 | Three Months Ended Aug 31, 2024 | Nine Months Ended Aug 31, 2025 | Nine Months Ended Aug 31, 2024 | | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Advisory | $655,578 | $592,462 | $1,511,218 | $1,214,927 | | Equity underwriting | $181,205 | $150,096 | $432,091 | $608,586 | | Debt underwriting | $249,525 | $183,078 | $654,250 | $517,771 | | Other investment banking | $49,017 | $17,930 | $4,765 | $116,679 | | Total Investment Banking | $1,135,325 | $943,566 | $2,602,324 | $2,457,963 | - Advisory net revenues of $656 million represent the best quarter ever, driven by increased deal values in M&A across most sectors due to improved market conditions[7] - Underwriting net revenues of $431 million were higher than the prior year quarter, as market conditions for Equity and Debt underwriting improved, leading to increased activity levels[7] Capital Markets Capital Markets net revenues increased 6.9% in Q3 2025 to $723 million, primarily from stronger Equities, offsetting Fixed Income declines year-to-date Capital Markets Net Revenues ($ thousands) | Three Months Ended Aug 31, 2025 | Three Months Ended Aug 31, 2024 | Nine Months Ended Aug 31, 2025 | Nine Months Ended Aug 31, 2024 | | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Equities | $486,695 | $387,342 | $1,421,997 | $1,182,025 | | Fixed income | $236,687 | $289,183 | $703,824 | $925,838 | | Total Capital Markets | $723,382 | $676,525 | $2,125,821 | $2,107,863 | - Equities net revenues increased from the prior year quarter due to higher global volumes, particularly in U.S. and Europe equity cash business, and strong results in equity options, corporate derivatives, and global electronic trading[7] - Fixed Income net revenues decreased from the prior year quarter as strong results from global structured products were offset by lower results in client flow trading businesses due to tight credit conditions[7] Asset Management Asset Management net revenues significantly increased to $176.9 million in Q3 2025, driven by higher fees and improved investment returns from fund performance Asset Management Net Revenues ($ thousands) | Three Months Ended Aug 31, 2025 | Three Months Ended Aug 31, 2024 | Nine Months Ended Aug 31, 2025 | Nine Months Ended Aug 31, 2024 | | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Asset management fees and revenues | $15,916 | $13,261 | $125,312 | $89,736 | | Investment return | $68,026 | $(40,135) | $112,796 | $110,447 | | Allocated net interest | $(18,550) | $(16,016) | $(54,915) | $(47,031) | | Other investments, inclusive of net interest | $111,490 | $101,902 |