Jefferies Financial Group (JEF) investor relations material

Executive summary

• Net earnings attributable to common shareholders rose to $156 million for the quarter ended February 28, 2026, up 21.8% year-over-year, with net revenues increasing 27% to $2.02 billion compared to the prior year quarter.

• Record first quarter net revenues in Investment Banking and Equities, with advisory and equity underwriting revenues up 32.5% and 48.8% year-over-year, respectively.

• Return on adjusted tangible shareholders' equity was 10.9%, up from 8.0% year-over-year.

• Asset Management segment saw improved investment returns despite a decline in fees, and a binding offer to sell Tessellis was accepted, with closing expected in Q1 2027.

• Progress made in winding down legacy merchant banking portfolio, including the announced sale of Tessellis.

Financial highlights

• Net revenues: $2.02 billion, up 27% year-over-year; non-interest expenses: $1.80 billion, up 25.2%.

• Earnings before income taxes: $212.2 million, up 40.5% year-over-year.

• Effective tax rate increased to 24.9% from 9.4% in the prior year quarter.

• Basic and diluted EPS were $0.72 and $0.70, respectively, compared to $0.60 and $0.57 in the prior year quarter.

• Compensation and benefits expense was $1.09 billion, representing 53.8% of net revenues.

Outlook and guidance

• Investment banking backlog remains strong, but realization timing is subject to market conditions.

• Management expects to build on strong momentum from the second half of 2025 through 2026 and beyond.

• Financial results will increasingly reflect core business activities as legacy assets are wound down.

• The sale of Tessellis is expected to close in the first quarter of 2027.

• Management continues to monitor geopolitical risks and market volatility, focusing on robust liquidity and capital positions.