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Jefferies Announces First Quarter 2025 Financial Results

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Jefferies Financial Group (NYSE: JEF) has announced its Q1 2025 financial results, declaring a quarterly cash dividend of $0.40 per common share. The company reported mixed performance across divisions:

Investment Banking net revenues reached $726 million, up 7% year-over-year, with Advisory services increasing 17% and Debt underwriting rising 54%. However, Equity underwriting declined 39%. Capital Markets revenues totaled $698 million, down 4%, with Equities net revenues up 10% to $409 million, while Fixed Income decreased 18% to $289 million.

Asset Management fees and investment return revenues fell 53% to $83 million, despite increased management and performance fees. The company maintains strong liquidity and continues to build its high-quality backlog, though market challenges persist due to U.S. policy uncertainties and geopolitical events.

Jefferies Financial Group (NYSE: JEF) ha annunciato i risultati finanziari per il primo trimestre del 2025, dichiarando un dividendo in contante trimestrale di $0,40 per azione comune. L'azienda ha riportato prestazioni miste tra le divisioni:

I ricavi netti dell'Investment Banking hanno raggiunto $726 milioni, con un aumento del 7% rispetto all'anno precedente, con i servizi di consulenza in crescita del 17% e l'emissione di debito in aumento del 54%. Tuttavia, l'emissione di azioni è diminuita del 39%. I ricavi dei Capital Markets sono stati pari a $698 milioni, in calo del 4%, con i ricavi netti delle azioni in aumento del 10% a $409 milioni, mentre il reddito fisso è diminuito del 18% a $289 milioni.

Le commissioni di Asset Management e i ricavi da ritorno sugli investimenti sono scesi del 53% a $83 milioni, nonostante l'aumento delle commissioni di gestione e performance. L'azienda mantiene una forte liquidità e continua a costruire un portafoglio di alta qualità, sebbene le sfide di mercato persistano a causa delle incertezze politiche negli Stati Uniti e degli eventi geopolitici.

Jefferies Financial Group (NYSE: JEF) ha anunciado sus resultados financieros del primer trimestre de 2025, declarando un dividendo en efectivo trimestral de $0.40 por acción común. La compañía reportó un desempeño mixto entre las divisiones:

Los ingresos netos de Banca de Inversión alcanzaron $726 millones, un aumento del 7% interanual, con los servicios de asesoría en aumento del 17% y la suscripción de deuda en aumento del 54%. Sin embargo, la suscripción de acciones disminuyó un 39%. Los ingresos de Mercados de Capitales totalizaron $698 millones, una caída del 4%, con los ingresos netos de acciones en aumento del 10% a $409 millones, mientras que el ingreso fijo disminuyó un 18% a $289 millones.

Las comisiones de Gestión de Activos y los ingresos por retorno de inversiones cayeron un 53% a $83 millones, a pesar del aumento en las comisiones de gestión y desempeño. La compañía mantiene una sólida liquidez y continúa construyendo su cartera de alta calidad, aunque los desafíos del mercado persisten debido a las incertidumbres políticas en EE. UU. y a eventos geopolíticos.

제퍼리스 금융 그룹 (NYSE: JEF)가 2025년 1분기 재무 결과를 발표하며, 보통주당 $0.40의 분기 현금 배당금을 선언했습니다. 회사는 부서 간 혼합된 성과를 보고했습니다:

투자은행의 순수익은 $726백만에 달하며, 전년 대비 7% 증가했습니다. 자문 서비스는 17% 증가했으며, 채무 인수는 54% 상승했습니다. 그러나 주식 인수는 39% 감소했습니다. 자본 시장의 수익은 $698백만으로 4% 감소했으며, 주식의 순수익은 10% 증가하여 $409백만에 달했지만, 고정 수익은 18% 감소하여 $289백만이 되었습니다.

자산 관리 수수료와 투자 수익은 $83백만으로 53% 감소했으며, 관리 및 성과 수수료는 증가했습니다. 회사는 강력한 유동성을 유지하고 있으며, 고품질의 백로그를 계속 구축하고 있지만, 미국의 정책 불확실성과 지정학적 사건으로 인해 시장의 도전이 지속되고 있습니다.

Jefferies Financial Group (NYSE: JEF) a annoncé ses résultats financiers pour le premier trimestre 2025, déclarant un dividende en espèces trimestriel de $0,40 par action ordinaire. La société a rapporté des performances mitigées entre ses divisions :

Les revenus nets de la banque d'investissement ont atteint $726 millions, en hausse de 7 % par rapport à l'année précédente, avec des services de conseil en hausse de 17 % et des émissions de dette en hausse de 54 %. Cependant, les émissions d'actions ont diminué de 39 %. Les revenus des marchés de capitaux se sont élevés à $698 millions, en baisse de 4 %, avec des revenus nets des actions en hausse de 10 % à $409 millions, tandis que les revenus fixes ont diminué de 18 % à $289 millions.

Les frais de gestion d'actifs et les revenus des retours d'investissement ont chuté de 53 % à $83 millions, malgré l'augmentation des frais de gestion et de performance. L'entreprise maintient une forte liquidité et continue de constituer un carnet de commandes de haute qualité, bien que les défis du marché persistent en raison des incertitudes politiques aux États-Unis et des événements géopolitiques.

Jefferies Financial Group (NYSE: JEF) hat seine Finanzzahlen für das erste Quartal 2025 veröffentlicht und eine vierteljährliche Bar-Dividende von $0,40 pro Stammaktie erklärt. Das Unternehmen berichtete von gemischten Leistungen in den einzelnen Bereichen:

Die Nettoerlöse im Investment Banking erreichten $726 Millionen, was einem Anstieg von 7 % im Vergleich zum Vorjahr entspricht, wobei die Beratungsleistungen um 17 % und die Schuldenplatzierung um 54 % zunahmen. Allerdings fiel die Aktienplatzierung um 39 %. Die Erlöse der Kapitalmärkte beliefen sich auf insgesamt $698 Millionen, ein Rückgang um 4 %, wobei die Nettoerlöse aus Aktien um 10 % auf $409 Millionen stiegen, während die festverzinslichen Erträge um 18 % auf $289 Millionen sanken.

Die Gebühren für Asset Management und die Erträge aus Investitionen fielen um 53 % auf $83 Millionen, trotz gestiegener Management- und Leistungsgebühren. Das Unternehmen hält eine starke Liquidität und baut weiterhin sein hochwertiges Auftragsvolumen aus, obwohl die Marktbedingungen aufgrund von Unsicherheiten in der US-Politik und geopolitischen Ereignissen herausfordernd bleiben.

Positive
  • Advisory services revenue increased 17% through market share gains
  • Debt underwriting revenue grew 54%
  • Equities net revenue rose 10% to $409 million
  • Management and performance fees increased significantly
Negative
  • Asset Management revenues declined 53% to $83 million
  • Equity underwriting revenue decreased 39%
  • Fixed Income revenue fell 18%
  • Overall Capital Markets revenue dropped 4%

Insights

Jefferies' Q1 2025 results demonstrate their diversified business model's resilience amid market uncertainty. Investment Banking net revenues increased 7% to $726 million, with Advisory services showing particularly strong performance (up 17%) and Debt underwriting surging 54%. These gains helped offset a 39% decline in Equity underwriting, which management attributed to subdued activity in sectors where they have significant market share.

Capital Markets performance was mixed, with overall revenues declining 4% to $698 million. The Equities business performed well with 10% growth to $409 million, while Fixed Income revenues fell 18% to $289 million from what was described as an "exceptionally strong" comparative quarter.

The most concerning segment was Asset Management, where revenues plummeted 53% to $83 million. While management fees and performance fees actually increased, investment returns were considerably weaker due to difficult market conditions, particularly for strategies with long equity bias.

The maintenance of Jefferies' $0.40 quarterly dividend signals financial stability despite the mixed performance across business segments. Management's commentary about "record liquidity" and their focus on risk management while pursuing market share gains suggests a prudent approach to navigating the current challenging environment.

Jefferies' quarterly results provide valuable insights into current capital markets conditions. The stark contrast between business segments reflects the fragmented nature of today's market environment, with certain areas showing strength while others face significant headwinds.

The 17% growth in Advisory revenues indicates continued M&A activity despite broader market uncertainties, suggesting companies are still pursuing strategic transactions even amid economic ambiguity. Meanwhile, the impressive 54% surge in Debt underwriting points to organizations actively securing financing, possibly positioning themselves for various interest rate scenarios.

The weakness in Equity underwriting (down 39%) reveals subdued appetite for new equity issuances in Jefferies' focus sectors, while the sharp 53% decline in Asset Management investment returns highlights the difficult environment for active management strategies, particularly those with long equity bias.

Management's commentary about "increasingly more challenging" capital markets due to U.S. policy uncertainties and geopolitical tensions, paired with their observation about "high quality backlog" and confidence potentially "beginning" to reemerge, suggests we may be approaching an inflection point. The building transaction pipeline indicates pent-up demand that could materialize if market stability returns.

For investors, Jefferies' emphasis on maintaining strong liquidity while pursuing market share gains positions the firm to potentially capitalize when market conditions improve, while their diversified business model provides some downside protection in the current uncertain environment.

NEW YORK--(BUSINESS WIRE)-- Jefferies Financial Group Inc. (NYSE: JEF):

Q1 Financial Highlights

 

$ in thousands, except per share amounts

Quarter End

 

 

1Q25

 

 

1Q24

 

Net earnings attributable to common shareholders

$

127,793

 

$

149,641

 

Diluted earnings per common share from continuing operations

$

0.57

 

$

0.69

 

Return on adjusted tangible shareholders' equity from continuing operations1

 

8.0

%

 

9.8

%

Total net revenues

$

1,593,019

 

$

1,738,203

 

Investment banking net revenues14

$

700,692

 

$

727,010

 

Capital markets net revenues14

$

698,284

 

$

724,278

 

Asset management net revenues

$

191,715

 

$

273,383

 

Pre-tax earnings from continuing operations

$

151,065

 

$

220,242

 

Book value per common share

$

49.48

 

$

46.13

 

Adjusted tangible book value per fully diluted share3

$

32.57

 

$

30.89

 

Quarterly Cash Dividend

The Jefferies Board of Directors declared a quarterly cash dividend equal to $0.40 per Jefferies common share, payable on May 29, 2025 to record holders of Jefferies common shares on May 19, 2025.

Management Comments

"Our first quarter results reflect strength in Advisory, Debt underwriting and Equities offset by a meaningful decline in asset management investment return compared to the prior year quarter. The capital markets have become increasingly more challenging due to the uncertainties that have arisen around U.S. policy and geopolitical events. There remains strong dialogue around potential investment banking transactions (capital raising and advisory) and our high quality backlog continues to build. Its realization depends on confidence and visibility reemerging, which may be beginning.

"We remain very confident about our strategy, our team and our long-term growth opportunities across our global businesses and we will navigate this period of uncertainty the way we always do, by focusing on our clients and helping them address their challenges and opportunities, while watching our risk, maintaining record liquidity and striving to gain market share across our firm.

"Investment Banking net revenues from Advisory, Equity underwriting and Debt underwriting totaling $726 million for the quarter were up 7% versus the prior year quarter. We had strong performance in Advisory, which was up 17%, largely from market share gains, and Debt underwriting, which was up 54%, tempered by subdued performance in Equity underwriting, which was down 39% as the opportunity in the current year in sectors where we have more meaningful market share was down notably from the prior year's comparable period.

"Capital Markets net revenues of $698 million for the first quarter were down 4% versus the prior year quarter. Equities net revenues of $409 million increased 10% from the prior year quarter, with continued strong global performance across a variety of products. Fixed Income net revenues of $289 million decreased 18% from the prior year's exceptionally strong first quarter, driven by lower volatility translating to lower overall volumes.

"Asset Management fees and investment return revenues of $83 million for the quarter were down 53% from the prior year quarter. We achieved a modest increase in management fees and a significant increase in performance fees from our strong performance in calendar year 2024 that were realized in the first quarter of 2025. This was offset by considerably weaker investment return in the current quarter due to a difficult investment environment for a variety of strategies, particularly those with a long equity bias, compared to particularly strong performance in the prior year quarter across several strategies.

"We would also like to thank our clients and colleagues who came together in January as part of our Doing Good Global Trading Day, to proudly contribute $10 million to a variety of amazing charities to support Los Angeles wildfire relief efforts."

Richard Handler, CEO, and Brian Friedman, President

Financial Summary (Unaudited)

 

$ in thousands

Three Months Ended

 

February 28,
2025

November 30,
2024

February 29,
2024

Net revenues by source:

 

 

 

Advisory

$

397,780

 

$

596,707

 

$

338,567

 

Equity underwriting

 

128,520

 

 

191,218

 

 

209,303

 

Debt underwriting

 

199,362

 

 

171,456

 

 

129,194

 

Other investment banking14

 

(24,970

)

 

27,443

 

 

49,946

 

Total Investment Banking

 

700,692

 

 

986,824

 

 

727,010

 

Equities14

 

409,058

 

 

410,768

 

 

371,800

 

Fixed income

 

289,226

 

 

240,922

 

 

352,478

 

Total Capital Markets

 

698,284

 

 

651,690

 

 

724,278

 

Total Investment Banking and Capital Markets Net revenues5

 

1,398,976

 

 

1,638,514

 

 

1,451,288

 

Asset management fees and revenues6

 

88,630

 

 

13,752

 

 

59,657

 

Investment return

 

(5,634

)

 

101,762

 

 

117,640

 

Allocated net interest4

 

(17,221

)

 

(15,104

)

 

(15,012

)

Other investments, inclusive of net interest13

 

125,940

 

 

214,340

 

 

111,098

 

Total Asset Management Net revenues

 

191,715

 

 

314,750

 

 

273,383

 

Other

 

2,328

 

 

3,338

 

 

13,532

 

Total Net revenues by source

$

1,593,019

 

$

1,956,602

 

$

1,738,203

 

 

 

 

 

Non-interest expenses:

 

 

 

Compensation and benefits

$

841,127

 

$

981,626

 

$

926,871

 

Compensation ratio15

 

52.8

%

 

50.2

%

 

53.3

%

Non-compensation expenses

$

600,827

 

$

670,114

 

$

591,090

 

Non-compensation ratio15

 

37.7

%

 

34.2

%

 

34.0

%

Total Non-interest expenses

$

1,441,954

 

$

1,651,740

 

$

1,517,961

 

 

 

 

 

Net earnings from continuing operations before income taxes

$

151,065

 

$

304,862

 

$

220,242

 

Income tax expense

$

14,216

 

$

86,117

 

$

55,959

 

Income tax rate

 

9.4

%

 

28.2

%

 

25.4

%

Net earnings from continuing operations

$

136,849

 

$

218,745

 

$

164,283

 

Net earnings (losses) from discontinued operations, net of income taxes

 

 

 

5,155

 

 

(7,891

)

Net losses attributable to noncontrolling interests

 

(6,983

)

 

(8,262

)

 

(7,438

)

Preferred stock dividends

 

16,039

 

 

26,416

 

 

14,189

 

Net earnings attributable to common shareholders

$

127,793

 

$

205,746

 

$

149,641

 

Highlights

Three Months Ended February 28, 2025

  • Net earnings attributable to common shareholders of $128 million, or $0.57 per diluted common share from continuing operations.
  • Return on adjusted tangible shareholders' equity from continuing operations1 of 8.0%.
  • We had 206.3 million common shares outstanding and 254.3 million common shares outstanding on a fully diluted basis2 at February 28, 2025. Our book value per common share was $49.48 and tangible book value per fully diluted share3 was $32.57.
  • Effective tax rate from continuing operations of 9.4% compared to 25.4% for the prior year quarter. The lower rate was primarily driven by the partial resolution of certain state and local tax matters.
Investment Banking and Capital Markets
  • Investment Banking net revenues from Advisory, Equity underwriting and Debt underwriting totaling $726 million were 7% higher than the prior year quarter.
  • Advisory net revenues of $398 million were higher than the prior year quarter, primarily attributable to meaningful market share gains and an increase in transaction levels across most sectors in the global mergers and acquisitions markets.
  • Underwriting net revenues of $328 million were lower than the prior year quarter, as strong results in Debt underwriting were offset by reduced Equity underwriting activity, as overall industry opportunity slowed particularly in sectors where we have significant market share.
  • Capital Markets net revenues of $698 million were lower compared to the prior year quarter. Equities net revenues increased from the prior year quarter, as results in our prime services business significantly increased over the prior year period. Additionally, revenues from global electronic trading business were also strong. Fixed Income net revenues decreased from the prior year quarter as strong results from our global structured solutions and securitized markets businesses were offset by lower results primarily attributable to our distressed trading and municipal securities businesses, which were particularly strong in the prior year quarter.

Asset Management

  • Asset Management fees and revenues and investment return of $83 million were lower than the prior year quarter.
  • Asset management fees and revenues increased, as strong performance across multiple managed funds resulted in higher performance fee income for the calendar year 2024 which were realized in the first quarter of 2025.
  • Investment return decreased due to a difficult investment environment for a variety of strategies, particularly those with a long equity bias, compared to particularly strong performance across several strategies in the prior year quarter.

Non-interest Expenses

  • Compensation and benefits expense as a percentage of Net revenues was 52.8%, compared to 53.3% for the prior year quarter.
  • Non-compensation expenses slightly increased from the prior year quarter. The current year quarter includes approximately $17 million in charitable donations, including $10 million to support Los Angeles wildfire relief efforts, as well as a modest increase in business development expenses, while the prior year quarter includes the impact of $27 million in bad debt expenses associated with the shutdown of Weiss Multi-Strategy Advisers.

Amounts herein pertaining to February 28, 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 months ended February 28, 2025 will be provided upon filing our Quarterly Report on Form 10-Q with the SEC, which we expect to file on or about April 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)

 

$ in thousands, except per share amounts

Three Months Ended

 

February 28,
2025

February 29,
2024

Revenues

 

 

Investment banking

$

729,510

 

$

679,065

 

Principal transactions

 

407,230

 

 

640,736

 

Commissions and other fees

 

288,300

 

 

245,543

 

Asset management fees and revenues

 

85,408

 

 

50,372

 

Interest

 

845,171

 

 

819,489

 

Other

 

117,245

 

 

116,737

 

Total revenues

 

2,472,864

 

 

2,551,942

 

Interest expense

 

879,845

 

 

813,739

 

Net revenues

 

1,593,019

 

 

1,738,203

 

Non-interest expenses

 

 

Compensation and benefits

 

841,127

 

 

926,871

 

Brokerage and clearing fees

 

109,436

 

 

109,670

 

Underwriting costs

 

17,846

 

 

18,484

 

Technology and communications

 

139,475

 

 

137,512

 

Occupancy and equipment rental

 

30,199

 

 

28,153

 

Business development

 

72,291

 

 

57,651

 

Professional services

 

72,466

 

 

77,844

 

Depreciation and amortization

 

30,988

 

 

43,202

 

Cost of sales

 

41,568

 

 

34,671

 

Other expenses

 

86,558

 

 

83,903

 

Total non-interest expenses

 

1,441,954

 

 

1,517,961

 

Earnings from continuing operations before income taxes

 

151,065

 

 

220,242

 

Income tax expense

 

14,216

 

 

55,959

 

Net earnings from continuing operations

 

136,849

 

 

164,283

 

Net losses from discontinued operations, net of income taxes

 

 

 

(7,891

)

Net earnings

 

136,849

 

 

156,392

 

Net losses attributable to noncontrolling interests

 

(6,983

)

 

(7,438

)

Preferred stock dividends

 

16,039

 

 

14,189

 

Net earnings attributable to common shareholders

$

127,793

 

$

149,641

 

 

 

 

Financial Data and Metrics (Unaudited)

 

 

Three Months Ended

 

February 28,
2025

November 30,
2024

February 29,
2024

Other Data:

 

 

 

Number of trading days

 

61

 

63

 

61

Number of trading loss days7

 

4

 

8

 

3

Average VaR (in millions)8

$

13.13

$

12.75

$

15.13

In millions, except other data

February 28,
2025

November 30,
2024

February 29,
2024

Financial position:

 

 

 

Total assets

$

70,219

$

64,360

$

60,933

Cash and cash equivalents

 

11,176

 

12,153

 

7,616

Financial instruments owned

 

26,087

 

24,138

 

23,212

Level 3 financial instruments owned9

 

781

 

734

 

589

Goodwill and intangible assets

 

2,038

 

2,054

 

2,064

Total equity

 

10,268

 

10,225

 

9,867

Total shareholders' equity

 

10,204

 

10,157

 

9,780

Tangible shareholders' equity10

 

8,166

 

8,103

 

7,716

Other data and financial ratios:

 

 

 

Leverage ratio11

 

6.8

 

6.3

 

6.2

Tangible gross leverage ratio12

 

8.3

 

7.7

 

7.6

Number of employees at period end

 

7,701

 

7,822

 

7,745

Number of employees excluding OpNet, Tessellis and Stratos at period end

 

5,994

 

5,968

 

5,790

Components of Numerators and Denominators for Earnings Per Common Share

 

$ in thousands, except per share amounts

Three Months Ended

 

February 28, 2025

February 29, 2024

Numerator for earnings per common share from continuing operations:

 

 

Net earnings from continuing operations

$

136,849

 

$

164,283

 

Less: Net losses attributable to noncontrolling interests

 

(6,983

)

 

(6,452

)

Allocation of earnings to participating securities

 

(16,039

)

 

(14,189

)

Net earnings from continuing operations attributable to common shareholders for basic earnings per share

$

127,793

 

$

156,546

 

Net earnings from continuing operations attributable to common shareholders for diluted earnings per share

$

127,793

 

$

156,546

 

 

 

 

Numerator for earnings per common share from discontinued operations:

 

 

Net losses from discontinued operations, net of taxes

$

 

$

(7,891

)

Less: Net losses attributable to noncontrolling interests

 

 

 

(986

)

Net losses from discontinued operations attributable to common shareholders for basic and diluted earnings per share

$

 

$

(6,905

)

Net earnings attributable to common shareholders for basic earnings per share

$

127,793

 

$

149,641

 

Net earnings attributable to common shareholders for diluted earnings per share

$

127,793

 

$

149,641

 

 

 

 

Denominator for earnings per common share:

 

 

Weighted average common shares outstanding

 

206,046

 

 

211,535

 

Weighted average shares of restricted stock outstanding with future service required

 

(2,200

)

 

(2,402

)

Weighted average restricted stock units outstanding with no future service required

 

10,690

 

 

10,913

 

Weighted average basic common shares

 

214,536

 

 

220,046

 

Stock options and other share-based awards

 

5,287

 

 

2,894

 

Senior executive compensation plan restricted stock unit awards

 

2,625

 

 

2,351

 

Weighted average diluted common shares

 

222,448

 

 

225,291

 

 

 

 

Earnings (losses) per common share:

 

 

Basic from continuing operations

$

0.60

 

$

0.71

 

Basic from discontinued operations

 

 

 

(0.03

)

Basic

$

0.60

 

$

0.68

 

Diluted from continuing operations

$

0.57

 

$

0.69

 

Diluted from discontinued operations

 

 

 

(0.03

)

Diluted

$

0.57

 

$

0.66

 

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

 

$ in thousands

Three Months Ended

 

February 28, 2025

February 29, 2024

Net earnings attributable to common shareholders (GAAP)

$

127,791

 

$

149,641

 

Intangible amortization and impairment expense, net of tax

 

7,073

 

 

4,147

 

Adjusted net earnings to common shareholders (non-GAAP)

 

134,864

 

 

153,788

 

Preferred stock dividends

 

16,039

 

 

14,189

 

Adjusted net earnings to total shareholders (non-GAAP)

$

150,903

 

$

167,977

 

 

 

 

Adjusted net earnings to total shareholders (non-GAAP)1

$

603,612

 

$

671,908

 

 

 

 

Net earnings impact for net losses from discontinued operations, net of noncontrolling interests

 

 

 

6,905

 

Adjusted net earnings to total shareholders from continuing operations (non-GAAP)

 

150,903

 

 

174,882

 

Adjusted net earnings to total shareholders from continuing operations (non-GAAP)1

 

603,612

 

 

699,528

 

 

 

 

 

November 30,

 

 

2024

 

 

2023

 

Shareholders' equity (GAAP)

$

10,156,772

 

$

9,709,827

 

Less: Intangible assets, net and goodwill

 

(2,054,310

)

 

(2,044,776

)

Less: Deferred tax asset, net

 

(497,590

)

 

(458,343

)

Less: Weighted average impact of dividends and share repurchases

 

(94,936

)

 

(67,475

)

Adjusted tangible shareholders' equity (non-GAAP)

$

7,509,936

 

$

7,139,233

 

 

 

 

Return on adjusted tangible shareholders' equity (non-GAAP)1

 

8.0

%

 

9.4

%

Return on adjusted tangible shareholders' equity from continuing operations (non-GAAP)1

 

8.0

%

 

9.8

%

 

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:

 

$ in thousands, except per share amounts

 

February 28, 2025

Book value (GAAP)

 

$

10,204,228

 

Stock options(1)

 

 

114,939

 

Intangible assets, net and goodwill

 

 

(2,037,906

)

Adjusted tangible book value (non-GAAP)

 

$

8,281,261

 

 

 

 

 

 

Common shares outstanding (GAAP)

 

 

206,250

 

Preferred shares

 

 

27,563

 

Restricted stock units ("RSUs")

 

 

13,950

 

Stock options(1)

 

 

5,065

 

Other

 

 

1,459

 

Adjusted fully diluted shares outstanding (non-GAAP)(2)

 

 

254,287

 

 

 

 

 

 

Book value per common share outstanding

 

$

49.48

 

Adjusted tangible book value per fully diluted share outstanding (non-GAAP)

 

$

32.57

 

(1)

Stock options added to book value are equal to the total number of stock options outstanding as of February 28, 2025 of 5.1 million multiplied by the weighted average exercise price of $22.69 on February 28, 2025.

(2)

Fully diluted shares outstanding include vested and unvested RSUs as well as the target number of RSUs issuable under the senior executive compensation plans until the performance period is complete. Fully diluted shares outstanding also include all stock options and the impact of convertible preferred shares if-converted to common shares.

Notes

  1. Return on adjusted tangible shareholders' equity and Return on adjusted tangible shareholders' equity from continuing operations represent non-GAAP financial measures and are based on full year or annualized amounts. Refer to schedule on page 7 for a reconciliation to U.S. GAAP amounts.
  2. Shares outstanding on a fully diluted basis (a non-GAAP financial measure) is defined as common shares outstanding plus preferred shares, restricted stock units, stock options and other shares. Refer to schedule on page 8 for a reconciliation to U.S. GAAP amounts.
  3. Adjusted tangible book value per fully diluted share (a non-GAAP financial measure) is defined as adjusted tangible book value (a non-GAAP financial measure) divided by shares outstanding on a fully diluted basis (a non-GAAP financial measure). Refer to schedule on page 8 for a reconciliation to U.S. GAAP amounts.
  4. Allocated net interest represents an allocation to Asset Management of certain of our long-term debt interest expense, net of interest income on our Cash and cash equivalents and other sources of liquidity. Allocated net interest has been disaggregated to increase transparency and to present direct Asset Management revenues. We believe that aggregating Allocated net interest would obscure the revenue results by including an amount that is unique to our credit spreads, debt maturity profile, capital structure, liquidity risks and allocation methods.
  5. Allocated net interest is not separately disaggregated for Investment Banking and Capital Markets. This presentation is aligned to our Investment Banking and Capital Markets internal performance measurement.
  6. Asset management fees and revenues include management and performance fees from funds and accounts managed by us as well as our share of fees received by affiliated asset management companies with which we have revenue and profit share arrangements, as well as earnings on our ownership interest in affiliated asset managers.
  7. Number of trading loss days is calculated based on trading activities in our Investment Banking and Capital Markets and Asset Management business segments, excluding certain Other investments.
  8. VaR estimates the potential loss in value of trading positions due to adverse market movements over a one-day time horizon with a 95% confidence level. For a further discussion of the calculation of VaR, see "Value-at-Risk" in Part II, Item 7A "Quantitative and Qualitative Disclosures About Market Risk" in our Annual Report on Form 10-K for the year ended November 30, 2024.
  9. Level 3 financial instruments represent those financial instruments classified as such under Accounting Standards Codification 820, accounted for at fair value and included within Financial instruments owned.
  10. Tangible shareholders' equity (a non-GAAP financial measure) is defined as shareholders' equity less Intangible assets and goodwill. We believe that tangible shareholders' equity is meaningful for valuation purposes, as financial companies are often measured as a multiple of tangible shareholders' equity, making these ratios meaningful for investors.
  11. Leverage ratio equals total assets divided by total equity.
  12. Tangible gross leverage ratio (a non-GAAP financial measure) equals total assets less goodwill and intangible assets divided by tangible shareholders' equity. The tangible gross leverage ratio is used by rating agencies in assessing our leverage ratio.
  13. Beginning in fiscal 2024, we now refer to "Merchant banking" as “Other investments” in our Asset Management reportable segment.
  14. Beginning in the fourth quarter of 2024, revenues from corporate equity derivative transactions historically included within Other investment banking net revenues were reclassified to Equities net revenues as the underlying business has matured and has started to generate meaningful revenues. Prior year amounts have been revised to conform to this reclassification change to the current year reporting.
  15. Compensation ratio equals total compensation expense divided by total net revenues. Non-compensation ratio equals total non-compensation expense divided by total net revenues.

Source: Jefferies Financial Group Inc.

FOR MORE INFORMATION

Jonathan Freedman 212.778.8913

Source: Jefferies Financial Group Inc.

FAQ

What is Jefferies' (JEF) Q1 2025 dividend payment and record date?

Jefferies will pay a quarterly dividend of $0.40 per common share on May 29, 2025, to shareholders of record as of May 19, 2025.

How did JEF's Investment Banking division perform in Q1 2025?

Investment Banking net revenues increased 7% to $726 million, with Advisory up 17% and Debt underwriting up 54%, while Equity underwriting declined 39%.

What were Jefferies' Capital Markets revenues in Q1 2025?

Capital Markets revenues were $698 million, down 4% YoY, with Equities up 10% to $409 million and Fixed Income down 18% to $289 million.

Why did JEF's Asset Management revenues decline in Q1 2025?

Asset Management revenues fell 53% to $83 million due to weaker investment returns in a difficult environment, particularly affecting strategies with long equity bias.
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