Jefferies Financial Group (JEF) investor relations material

Financial performance and capital allocation

• LTM Q3'26 net revenue was $8.5bn; net earnings exceeded $935m and continuing-operations ROTE was 13.1%, up 726 bps since 2019.

• Investment Banking and Capital Markets generated over 90% of LTM revenue; fee-based revenues and client businesses drove 87% of growth since 2019.

• Investment Banking and Capital Markets revenue rose from $4.5bn in 2023 to $7.8bn; pretax profit increased from $0.5bn to $1.3bn and margin expanded from 11% to 16%+.

• Adjusted segment revenue grew 75% since 2023 while adjusted non-comp expenses rose 37%; the adjusted non-comp ratio declined from 30% to 24%.

• Capital returned since Nov. 2018 totaled $6.4bn and diluted shares fell 24%; 2026 dividends and repurchases approached 11% of tangible book value in the first 10 months.

Strategy and earnings outlook

• Client-first, people-led strategy remains focused on building an independent, full-service global investment bank; platform scale supports higher margins and operating leverage.

• Priorities include maturing the platform, gaining share, expanding margins and realizing returns on prior investment; the bulk of investment-banking hiring has passed, with targeted hiring continuing.

• Like-for-like revenue is expected to generate comp leverage from 2027; management sees continued investment-banking and equities opportunities, improving fixed income and more consistent asset-management results.

• Returns and EPS are expected to improve in 2027 and beyond; management cited current 13% ROTE and an aspiration toward mid-teens, without a promise, and no meaningful change in balance-sheet leverage appetite.

• Merchant-bank simplification and asset monetizations are nearing completion; exits from Tessellis, Stratos and two residual businesses are intended to remove earnings drag and redeploy capital.

Investment banking and equities growth

• Global rankings include #5 in advisory and ECM; FY YTD Sep. 2026 top-six fee share was 4.3%, up 160 bps since 2019.

• Advisory and ECM revenue totaled $4.0bn, including $2.7bn advisory and $1.3bn ECM; the franchise spans sponsor and corporate M&A and global ECM.

• Sponsor sell-side share for deals under $1bn reached 7.5%, ranking second; large-cap sponsor M&A share was 7.4%, ranking third. Biopharma ECM share reached 14.4%, ranking first.

• Equities LTM Q3'26 revenue reached a record $2.3bn; international revenue was 44% of global S&T, while prime-services balances grew ~4x and derivatives revenue ~5x since 2022.

• SMBC collaboration supports a Jan. 1, 2027 Japan equities launch, combining coverage, research, capital, technology and products; the goal is a #1 franchise. Jointly covered sponsor share grew >3x.