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Jefferies Announces First Quarter 2025 Financial Results

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

Q1 Financial Highlights

Ìý

$ in thousands, except per share amounts

Quarter End

Ìý

Ìý

1Q25

Ìý

Ìý

1Q24

Ìý

Net earnings attributable to common shareholders

$

127,793

Ìý

$

149,641

Ìý

Diluted earnings per common share from continuing operations

$

0.57

Ìý

$

0.69

Ìý

Return on adjusted tangible shareholders' equity from continuing operations1

Ìý

8.0

%

Ìý

9.8

%

Total net revenues

$

1,593,019

Ìý

$

1,738,203

Ìý

Investment banking net revenues14

$

700,692

Ìý

$

727,010

Ìý

Capital markets net revenues14

$

698,284

Ìý

$

724,278

Ìý

Asset management net revenues

$

191,715

Ìý

$

273,383

Ìý

Pre-tax earnings from continuing operations

$

151,065

Ìý

$

220,242

Ìý

Book value per common share

$

49.48

Ìý

$

46.13

Ìý

Adjusted tangible book value per fully diluted share3

$

32.57

Ìý

$

30.89

Ìý

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 addressÌýtheir 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)

Ìý

$ in thousands

Three Months Ended

Ìý

February 28,
2025

November 30,
2024

February 29,
2024

Net revenues by source:

Ìý

Ìý

Ìý

Advisory

$

397,780

Ìý

$

596,707

Ìý

$

338,567

Ìý

Equity underwriting

Ìý

128,520

Ìý

Ìý

191,218

Ìý

Ìý

209,303

Ìý

Debt underwriting

Ìý

199,362

Ìý

Ìý

171,456

Ìý

Ìý

129,194

Ìý

Other investment banking14

Ìý

(24,970

)

Ìý

27,443

Ìý

Ìý

49,946

Ìý

Total Investment Banking

Ìý

700,692

Ìý

Ìý

986,824

Ìý

Ìý

727,010

Ìý

Equities14

Ìý

409,058

Ìý

Ìý

410,768

Ìý

Ìý

371,800

Ìý

Fixed income

Ìý

289,226

Ìý

Ìý

240,922

Ìý

Ìý

352,478

Ìý

Total Capital Markets

Ìý

698,284

Ìý

Ìý

651,690

Ìý

Ìý

724,278

Ìý

Total Investment Banking and Capital Markets Net revenues5

Ìý

1,398,976

Ìý

Ìý

1,638,514

Ìý

Ìý

1,451,288

Ìý

Asset management fees and revenues6

Ìý

88,630

Ìý

Ìý

13,752

Ìý

Ìý

59,657

Ìý

Investment return

Ìý

(5,634

)

Ìý

101,762

Ìý

Ìý

117,640

Ìý

Allocated net interest4

Ìý

(17,221

)

Ìý

(15,104

)

Ìý

(15,012

)

Other investments, inclusive of net interest13

Ìý

125,940

Ìý

Ìý

214,340

Ìý

Ìý

111,098

Ìý

Total Asset Management Net revenues

Ìý

191,715

Ìý

Ìý

314,750

Ìý

Ìý

273,383

Ìý

Other

Ìý

2,328

Ìý

Ìý

3,338

Ìý

Ìý

13,532

Ìý

Total Net revenues by source

$

1,593,019

Ìý

$

1,956,602

Ìý

$

1,738,203

Ìý

Ìý

Ìý

Ìý

Ìý

Non-interest expenses:

Ìý

Ìý

Ìý

Compensation and benefits

$

841,127

Ìý

$

981,626

Ìý

$

926,871

Ìý

Compensation ratio15

Ìý

52.8

%

Ìý

50.2

%

Ìý

53.3

%

Non-compensation expenses

$

600,827

Ìý

$

670,114

Ìý

$

591,090

Ìý

Non-compensation ratio15

Ìý

37.7

%

Ìý

34.2

%

Ìý

34.0

%

Total Non-interest expenses

$

1,441,954

Ìý

$

1,651,740

Ìý

$

1,517,961

Ìý

Ìý

Ìý

Ìý

Ìý

Net earnings from continuing operations before income taxes

$

151,065

Ìý

$

304,862

Ìý

$

220,242

Ìý

Income tax expense

$

14,216

Ìý

$

86,117

Ìý

$

55,959

Ìý

Income tax rate

Ìý

9.4

%

Ìý

28.2

%

Ìý

25.4

%

Net earnings from continuing operations

$

136,849

Ìý

$

218,745

Ìý

$

164,283

Ìý

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

Ìý

�

Ìý

Ìý

5,155

Ìý

Ìý

(7,891

)

Net losses attributable to noncontrolling interests

Ìý

(6,983

)

Ìý

(8,262

)

Ìý

(7,438

)

Preferred stock dividends

Ìý

16,039

Ìý

Ìý

26,416

Ìý

Ìý

14,189

Ìý

Net earnings attributable to common shareholders

$

127,793

Ìý

$

205,746

Ìý

$

149,641

Ìý

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)

Ìý

$ in thousands, except per share amounts

Three Months Ended

Ìý

February 28,
2025

February 29,
2024

Revenues

Ìý

Ìý

Investment banking

$

729,510

Ìý

$

679,065

Ìý

Principal transactions

Ìý

407,230

Ìý

Ìý

640,736

Ìý

Commissions and other fees

Ìý

288,300

Ìý

Ìý

245,543

Ìý

Asset management fees and revenues

Ìý

85,408

Ìý

Ìý

50,372

Ìý

Interest

Ìý

845,171

Ìý

Ìý

819,489

Ìý

Other

Ìý

117,245

Ìý

Ìý

116,737

Ìý

Total revenues

Ìý

2,472,864

Ìý

Ìý

2,551,942

Ìý

Interest expense

Ìý

879,845

Ìý

Ìý

813,739

Ìý

Net revenues

Ìý

1,593,019

Ìý

Ìý

1,738,203

Ìý

Non-interest expenses

Ìý

Ìý

Compensation and benefits

Ìý

841,127

Ìý

Ìý

926,871

Ìý

Brokerage and clearing fees

Ìý

109,436

Ìý

Ìý

109,670

Ìý

Underwriting costs

Ìý

17,846

Ìý

Ìý

18,484

Ìý

Technology and communications

Ìý

139,475

Ìý

Ìý

137,512

Ìý

Occupancy and equipment rental

Ìý

30,199

Ìý

Ìý

28,153

Ìý

Business development

Ìý

72,291

Ìý

Ìý

57,651

Ìý

Professional services

Ìý

72,466

Ìý

Ìý

77,844

Ìý

Depreciation and amortization

Ìý

30,988

Ìý

Ìý

43,202

Ìý

Cost of sales

Ìý

41,568

Ìý

Ìý

34,671

Ìý

Other expenses

Ìý

86,558

Ìý

Ìý

83,903

Ìý

Total non-interest expenses

Ìý

1,441,954

Ìý

Ìý

1,517,961

Ìý

Earnings from continuing operations before income taxes

Ìý

151,065

Ìý

Ìý

220,242

Ìý

Income tax expense

Ìý

14,216

Ìý

Ìý

55,959

Ìý

Net earnings from continuing operations

Ìý

136,849

Ìý

Ìý

164,283

Ìý

Net losses from discontinued operations, net of income taxes

Ìý

�

Ìý

Ìý

(7,891

)

Net earnings

Ìý

136,849

Ìý

Ìý

156,392

Ìý

Net losses attributable to noncontrolling interests

Ìý

(6,983

)

Ìý

(7,438

)

Preferred stock dividends

Ìý

16,039

Ìý

Ìý

14,189

Ìý

Net earnings attributable to common shareholders

$

127,793

Ìý

$

149,641

Ìý

Ìý

Ìý

Ìý

Financial Data and Metrics (Unaudited)

Ìý

Ìý

Three Months Ended

Ìý

February 28,
2025

November 30,
2024

February 29,
2024

Other Data:

Ìý

Ìý

Ìý

Number of trading days

Ìý

61

Ìý

63

Ìý

61

Number of trading loss days7

Ìý

4

Ìý

8

Ìý

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:

Ìý

Ìý

Ìý

Total assets

$

70,219

$

64,360

$

60,933

Cash and cash equivalents

Ìý

11,176

Ìý

12,153

Ìý

7,616

Financial instruments owned

Ìý

26,087

Ìý

24,138

Ìý

23,212

Level 3 financial instruments owned9

Ìý

781

Ìý

734

Ìý

589

Goodwill and intangible assets

Ìý

2,038

Ìý

2,054

Ìý

2,064

Total equity

Ìý

10,268

Ìý

10,225

Ìý

9,867

Total shareholders' equity

Ìý

10,204

Ìý

10,157

Ìý

9,780

Tangible shareholders' equity10

Ìý

8,166

Ìý

8,103

Ìý

7,716

Other data and financial ratios:

Ìý

Ìý

Ìý

Leverage ratio11

Ìý

6.8

Ìý

6.3

Ìý

6.2

Tangible gross leverage ratio12

Ìý

8.3

Ìý

7.7

Ìý

7.6

Number of employees at period end

Ìý

7,701

Ìý

7,822

Ìý

7,745

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

Ìý

5,994

Ìý

5,968

Ìý

5,790

Components of Numerators and Denominators for Earnings Per Common Share

Ìý

$ in thousands, except per share amounts

Three Months Ended

Ìý

February 28, 2025

February 29, 2024

Numerator for earnings per common share from continuing operations:

Ìý

Ìý

Net earnings from continuing operations

$

136,849

Ìý

$

164,283

Ìý

Less: Net losses attributable to noncontrolling interests

Ìý

(6,983

)

Ìý

(6,452

)

Allocation of earnings to participating securities

Ìý

(16,039

)

Ìý

(14,189

)

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

$

127,793

Ìý

$

156,546

Ìý

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

$

127,793

Ìý

$

156,546

Ìý

Ìý

Ìý

Ìý

Numerator for earnings per common share from discontinued operations:

Ìý

Ìý

Net losses from discontinued operations, net of taxes

$

�

Ìý

$

(7,891

)

Less: Net losses attributable to noncontrolling interests

Ìý

�

Ìý

Ìý

(986

)

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

$

�

Ìý

$

(6,905

)

Net earnings attributable to common shareholders for basic earnings per share

$

127,793

Ìý

$

149,641

Ìý

Net earnings attributable to common shareholders for diluted earnings per share

$

127,793

Ìý

$

149,641

Ìý

Ìý

Ìý

Ìý

Denominator for earnings per common share:

Ìý

Ìý

Weighted average common shares outstanding

Ìý

206,046

Ìý

Ìý

211,535

Ìý

Weighted average shares of restricted stock outstanding with future service required

Ìý

(2,200

)

Ìý

(2,402

)

Weighted average restricted stock units outstanding with no future service required

Ìý

10,690

Ìý

Ìý

10,913

Ìý

Weighted average basic common shares

Ìý

214,536

Ìý

Ìý

220,046

Ìý

Stock options and other share-based awards

Ìý

5,287

Ìý

Ìý

2,894

Ìý

Senior executive compensation plan restricted stock unit awards

Ìý

2,625

Ìý

Ìý

2,351

Ìý

Weighted average diluted common shares

Ìý

222,448

Ìý

Ìý

225,291

Ìý

Ìý

Ìý

Ìý

Earnings (losses) per common share:

Ìý

Ìý

Basic from continuing operations

$

0.60

Ìý

$

0.71

Ìý

Basic from discontinued operations

Ìý

�

Ìý

Ìý

(0.03

)

Basic

$

0.60

Ìý

$

0.68

Ìý

Diluted from continuing operations

$

0.57

Ìý

$

0.69

Ìý

Diluted from discontinued operations

Ìý

�

Ìý

Ìý

(0.03

)

Diluted

$

0.57

Ìý

$

0.66

Ìý

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

Ìý

$ in thousands

Three Months Ended

Ìý

February 28, 2025

February 29, 2024

Net earnings attributable to common shareholders (GAAP)

$

127,791

Ìý

$

149,641

Ìý

Intangible amortization and impairment expense, net of tax

Ìý

7,073

Ìý

Ìý

4,147

Ìý

Adjusted net earnings to common shareholders (non-GAAP)

Ìý

134,864

Ìý

Ìý

153,788

Ìý

Preferred stock dividends

Ìý

16,039

Ìý

Ìý

14,189

Ìý

Adjusted net earnings to total shareholders (non-GAAP)

$

150,903

Ìý

$

167,977

Ìý

Ìý

Ìý

Ìý

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

$

603,612

Ìý

$

671,908

Ìý

Ìý

Ìý

Ìý

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

Ìý

�

Ìý

Ìý

6,905

Ìý

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

Ìý

150,903

Ìý

Ìý

174,882

Ìý

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

Ìý

603,612

Ìý

Ìý

699,528

Ìý

Ìý

Ìý

Ìý

Ìý

November 30,

Ìý

Ìý

2024

Ìý

Ìý

2023

Ìý

Shareholders' equity (GAAP)

$

10,156,772

Ìý

$

9,709,827

Ìý

Less: Intangible assets, net and goodwill

Ìý

(2,054,310

)

Ìý

(2,044,776

)

Less: Deferred tax asset, net

Ìý

(497,590

)

Ìý

(458,343

)

Less: Weighted average impact of dividends and share repurchases

Ìý

(94,936

)

Ìý

(67,475

)

Adjusted tangible shareholders' equity (non-GAAP)

$

7,509,936

Ìý

$

7,139,233

Ìý

Ìý

Ìý

Ìý

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

Ìý

8.0

%

Ìý

9.4

%

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

Ìý

8.0

%

Ìý

9.8

%

Ìý

Adjusted Tangible Book Value and Fully Diluted Shares Outstanding Reconciliation

Ìý

Reconciliation of book value (shareholders' equity) to adjusted tangible book value and common shares outstanding to fully diluted shares outstanding:

Ìý

$ in thousands, except per share amounts

Ìý

February 28, 2025

Book value (GAAP)

Ìý

$

10,204,228

Ìý

Stock options(1)

Ìý

Ìý

114,939

Ìý

Intangible assets, net and goodwill

Ìý

Ìý

(2,037,906

)

Adjusted tangible book value (non-GAAP)

Ìý

$

8,281,261

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Common shares outstanding (GAAP)

Ìý

Ìý

206,250

Ìý

Preferred shares

Ìý

Ìý

27,563

Ìý

Restricted stock units ("RSUs")

Ìý

Ìý

13,950

Ìý

Stock options(1)

Ìý

Ìý

5,065

Ìý

Other

Ìý

Ìý

1,459

Ìý

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

Ìý

Ìý

254,287

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Book value per common share outstanding

Ìý

$

49.48

Ìý

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

Ìý

$

32.57

Ìý

(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.

Jefferies Financial Group

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