Jefferies Financial Group (JEF) investor relations material

Executive summary

• Net revenues for Q2 2026 rose 35% year-over-year to $2.21 billion, with net earnings attributable to common shareholders up 157% to $226.2 million and diluted EPS of $1.02 for Q2 2026.

• Six-month net revenues increased 30.9% to $4.22 billion, and net earnings attributable to common shareholders rose 77% to $382.2 million.

• Return on adjusted tangible shareholders' equity reached 12.8% for the quarter.

• Effective tax rate for the quarter decreased to 20.8% from 32.3% in the prior year, aided by investment tax credits and lower state/local taxes.

• Repurchased 4.0 million shares for $197 million and declared a $0.40 per share dividend.

Financial highlights

• Q2 2026 net revenues: $2.21 billion (Q2 2025: $1.63 billion); six months: $4.22 billion (2025: $3.23 billion).

• Q2 net earnings: $249.98 million (2025: $91.40 million); six months: $409.32 million (2025: $228.24 million).

• Diluted EPS for Q2: $1.02 (voting), $1.13 (non-voting); six months: $1.70 (voting), $1.83 (non-voting).

• Book value per common share was $51.95; adjusted tangible book value per fully diluted share was $34.55.

• Compensation and benefits expense up 39% year-over-year to $1.19 billion for the quarter.

Outlook and guidance

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

• Management expects to build on current momentum, citing a strong backlog and new business bookings for the second half of 2026.

• The acquisition of 50% of Hildene is targeted for Q3 2026 and is expected to be immediately accretive.

• Asset management business is repositioning capital in anticipation of the Hildene Holdings acquisition.