Jefferies Announces First Quarter 2025 Financial Results
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.
- 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
- 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
Capital Markets performance was mixed, with overall revenues declining
The most concerning segment was Asset Management, where revenues plummeted
The maintenance of Jefferies'
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
The weakness in Equity underwriting (down
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.
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
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
"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
"Capital Markets net revenues of
"Asset Management fees and investment return revenues of
"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
Richard Handler, CEO, and Brian Friedman, President
Financial Summary (Unaudited) |
|||||||||
$ in thousands |
Three Months Ended |
||||||||
|
February 28,
|
November 30,
|
February 29,
|
||||||
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 |
|
Investment Banking and Capital Markets |
|
Asset Management |
|
Non-interest Expenses |
|
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
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,
|
February 29,
|
||||
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,
|
November 30,
|
February 29,
|
|||
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,
|
November 30,
|
February 29,
|
|||
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
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 |
(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
-
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. -
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. -
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. - 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.
- 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.
- 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.
- 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.
-
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. - 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.
- 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.
- Leverage ratio equals total assets divided by total equity.
- 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.
- Beginning in fiscal 2024, we now refer to "Merchant banking" as “Other investments” in our Asset Management reportable segment.
- 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.
- 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250326627495/en/
FOR MORE INFORMATION
Jonathan Freedman 212.778.8913
Source: Jefferies Financial Group Inc.