Jefferies Financial Group (JEF) investor relations material

Executive summary

• Net earnings attributable to common shareholders reached $156 million, or $0.70 per diluted share, up from $128 million and $0.57 per share year-over-year.

• Total net revenues were $2.02 billion, a 27% increase compared to the same quarter last year.

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

• Record first quarter net revenues in Investment Banking and Equities, with strong performance across core businesses.

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

Financial highlights

• Investment Banking net revenues rose 45% year-over-year to $1.02 billion, driven by advisory and equity underwriting.

• Capital Markets net revenues increased 12% to $779 million, with Equities up 37% and Fixed Income at $220 million.

• Asset Management net revenues were $220 million, up from $192 million, with fees and investment return totaling $159 million, a 91% increase.

• Compensation and benefits expense was $1.09 billion, 53.8% of net revenues, slightly higher than the prior year.

• Non-compensation expenses rose due to higher brokerage, clearing, and technology costs, but as a percentage of net revenues, decreased to 35.6%.

Outlook and guidance

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

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