Jefferies Announces Fourth Quarter 2025 Financial Results

Key Terms

adjusted tangible shareholders' equity financial

A measure of a company’s net worth that removes intangible items (like goodwill, brand value, and certain deferred items) and then applies standard accounting adjustments so only the firm’s tangible, hard capital remains. For investors it shows the real, loss-absorbing cushion behind the shares—think of it as the cash-and-physical-assets portion of equity after stripping away paper value—helping assess solvency, dividend safety and downside risk.

adjusted diluted earnings per common share financial

Adjusted diluted earnings per common share is a measure of a company’s profit allocated to each common share after removing one-time or unusual items and counting all potential shares (like options) that could dilute ownership. Think of it as the company’s “cleaned-up” profit per share—useful for investors because it aims to show the underlying earning power and makes trends or comparisons clearer, though the adjustments depend on management’s choices.

effective tax rate financial

The effective tax rate is the percentage of a company's profits that it pays in taxes. It shows how much of its earnings go to taxes after all deductions and credits are considered. For investors, it indicates how much of the company's income is taken by taxes, impacting overall profitability and financial health.

Annual Report on Form 10-K regulatory

An annual report on Form 10‑K is a required, comprehensive filing that publicly traded companies give to regulators and investors summarizing their business, results of operations, detailed financial statements reviewed by independent auditors, material risks, legal issues and management’s discussion of performance. Investors use it like a company’s year‑end report card and medical checkup: it reveals how the business made money, where it is vulnerable, and the facts needed to compare value, judge risk and make informed investment decisions.

forward-looking statements regulatory

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

NEW YORK--(BUSINESS WIRE)--

Jefferies Financial Group Inc. (NYSE: JEF):

Q4 Financial Highlights

$ in thousands, except per share amounts	Quarter End						Year-to-Date
	4Q25			4Q24			2025			2024
Net earnings attributable to common shareholders	$	190,890		$	205,746		$	630,791		$	669,273
Adjusted net earnings attributable to common shareholders15	$	213,460		$	205,746		$	653,361		$	669,273
Diluted earnings per common share from continuing operations	$	0.87		$	0.91		$	2.85		$	2.96
Adjusted diluted earnings per common share from continuing operations15	$	0.96		$	0.91		$	2.94		$	2.96
Return on adjusted tangible shareholders' equity from continuing operations1		11.8	%		12.7	%		10.1	%		10.8	%
Adjusted return on adjusted tangible shareholders' equity from continuing operations1		12.9	%		12.7	%		10.4	%		10.8	%
Total net revenues	$	2,068,853		$	1,956,602		$	7,343,751		$	7,034,803
Investment banking net revenues13	$	1,187,975		$	986,824		$	3,790,299		$	3,444,787
Capital markets net revenues13	$	691,914		$	651,690		$	2,817,735		$	2,759,554
Asset management net revenues	$	186,998		$	314,750		$	710,216		$	803,669
Pre-tax earnings from continuing operations	$	253,208		$	304,862		$	870,989		$	1,005,546
Book value per common share	$	51.26		$	49.42		$	51.26		$	49.42
Adjusted tangible book value per fully diluted share3	$	33.69		$	32.36		$	33.69		$	32.36

Quarterly Cash Dividend

The Jefferies Board of Directors declared a quarterly cash dividend equal to $0.40 per Jefferies common share, payable on February 27, 2026 to record holders of Jefferies common shares on February 17, 2026.

Management Comments

"Our fourth quarter net revenues were $2.07 billion, net earnings attributable to common shareholders were $191 million and diluted earnings per common share from continuing operations were $0.87. Adjusting our results for a markdown and resulting pre-tax loss of $30 million associated with our investment in Point Bonita—a fund we advise and in which we hold an equity interest—our net earnings attributable to common shareholders was $213 million, or $0.96 per diluted share. Our quarterly results reflect strong performance and sustained momentum in both Investment Banking and Equities, with net revenues increasing 20% and 18%, respectively, partially offset by lower net revenues in Fixed Income and Asset Management. Adjusting for the impact of Point Bonita, our businesses delivered an adjusted return on adjusted tangible shareholders' equity of 12.9%.

“Investment Banking net revenues were $1.19 billion, up 20% from the prior year quarter, driven by market share gains and a stronger overall market for our services. Our Advisory net revenues were our second-best quarter on record, reflecting strong corporate and sponsor activity. Approximately 44% of annual Equity Underwriting net revenues were generated in the fourth quarter, positioning us well for 2026 as sponsor activity accelerates.

"Capital Markets net revenues were $692 million, up 6% from the prior year quarter. Equities net revenues grew 18%, driven by higher global volumes, market share gains, and continued strength in prime services, corporate derivatives and electronic trading—key areas of our growth strategy. Fixed Income net revenues declined 14% due to persistent credit market headwinds resulting in lower overall activity compared to the prior year quarter.

"Asset management fees and investment return revenues of $81 million was lower from the prior year quarter. While fee income was stable, an increase in investment return performance from certain strategies was offset by underperformance in other strategies including a pre-tax loss of $30 million related to our investment in Point Bonita.

"We are intensely focused on executing on our opportunity and realizing the attractive and consistent results that we believe Jefferies can produce. We believe we can continue to gain market position in what we anticipate will be an increasingly favorable environment. Ongoing technology investments are yielding innovation, enhanced productivity and better client solutions. Further, we continue to drive opportunities and initiatives we have underway across our firm to support additional long-term growth. Consistent market share gains, margin improvement and the benefits of scale and brand, and perhaps a more “normal” operating environment, all bode extremely well for Jefferies."

Richard Handler, CEO, and Brian Friedman, President

Please refer to the just-released Jefferies Financial Group Annual Letter from our CEO and President for broader perspective on 2025, as well as our strategy and outlook.

Financial Summary (Unaudited)

$ in thousands	Three Months Ended									Year Ended
	November 30, 2025			August 31, 2025			November 30, 2024			November 30, 2025			November 30, 2024
Net revenues by source:
Advisory	$	634,203		$	655,578		$	596,707		$	2,145,421		$	1,811,634
Equity underwriting		339,799			181,205			191,218			771,890			799,804
Debt underwriting		215,757			249,525			171,456			870,007			689,227
Other investment banking13		(1,784	)		49,017			27,443			2,981			144,122
Total Investment Banking		1,187,975			1,135,325			986,824			3,790,299			3,444,787
Equities13		485,869			486,695			410,768			1,907,866			1,592,793
Fixed income		206,045			236,687			240,922			909,869			1,166,761
Total Capital Markets		691,914			723,382			651,690			2,817,735			2,759,554
Total Investment Banking and Capital Markets Net revenues5		1,879,889			1,858,707			1,638,514			6,608,034			6,204,341
Asset management fees and revenues6		15,602			15,916			13,752			140,914			103,488
Investment return		65,018			68,026			101,762			177,814			212,209
Allocated net interest4		(21,130	)		(18,550	)		(15,104	)		(76,045	)		(62,135	)
Other investments, inclusive of net interest		127,508			111,490			214,340			467,533			550,107
Total Asset Management Net revenues		186,998			176,882			314,750			710,216			803,669
Other		1,966			11,843			3,338			25,501			26,793
Total Net revenues by source	$	2,068,853		$	2,047,432		$	1,956,602		$	7,343,751		$	7,034,803
Non-interest expenses:
Compensation and benefits	$	1,080,779		$	1,083,510		$	981,626		$	3,860,255		$	3,659,588
Compensation ratio14		52.2	%		52.9	%		50.2	%		52.6	%		52.0	%
Non-compensation expenses	$	734,866		$	632,107		$	670,114		$	2,612,507		$	2,369,669
Non-compensation ratio14		35.5	%		30.9	%		34.2	%		35.6	%		33.7	%
Total Non-interest expenses	$	1,815,645		$	1,715,617		$	1,651,740		$	6,472,762		$	6,029,257
Net earnings from continuing operations before income taxes	$	253,208		$	331,815		$	304,862		$	870,989		$	1,005,546
Income tax expense	$	37,537		$	89,311		$	86,117		$	184,570		$	293,194
Income tax rate		14.8	%		26.9	%		28.2	%		21.2	%		29.2	%
Net earnings from continuing operations	$	215,671		$	242,504		$	218,745		$	686,419		$	712,352
Net (losses) earnings from discontinued operations, net of income taxes		(4,374	)		—			5,155			(4,374	)		3,667
Net losses attributable to noncontrolling interests		(3,738	)		(10,041	)		(8,262	)		(28,430	)		(27,364	)
Preferred stock dividends		24,145			28,559			26,416			79,684			74,110
Net earnings attributable to common shareholders	$	190,890		$	223,986		$	205,746		$	630,791		$	669,273

Highlights

Three Months Ended November 30, 2025 Versus November 30, 2024		Year Ended November 30, 2025 Versus November 30, 2024
Net earnings attributable to common shareholders of: $191 million, or $0.87 per diluted common share from continuing operations. $213 million15, or $0.96 per diluted common share from continuing operations excluding impact of Point Bonita write-down. Return on adjusted tangible shareholders' equity from continuing operations1 of 11.8%. Excluding the impact of the write-down on Point Bonita, adjusted return on adjusted tangible shareholders' equity of 12.9%1. We had 206.3 million common shares outstanding and 256.7 million common shares outstanding on a fully diluted basis2 at November 30, 2025. Our book value per common share was $51.26 and adjusted tangible book value per fully diluted share3 was $33.69. Effective tax rate from continuing operations of 14.8% compared to 28.2% for the prior year quarter. The lower rate was primarily driven by the resolution of certain state and local tax matters.		Net earnings attributable to common shareholders of: $631 million, or $2.85 per diluted common share from continuing operations. $653 million15, or $2.94 per diluted common share from continuing operations excluding impact of Point Bonita write-down. Return on adjusted tangible shareholders' equity from continuing operations1 of 10.1%. Excluding the impact of the write-down on Point Bonita, adjusted return on adjusted tangible shareholders' equity of 10.4%1. Repurchased 0.7 million shares of common stock for $59 million, at an average price of $79.57 per share in connection with net-share settlements related to our equity compensation plan vestings. Effective tax rate from continuing operations of 21.2% compared to 29.2% for the prior year period. The lower rate was primarily driven by the resolution of certain state and local tax matters.

Investment Banking and Capital Markets		Investment Banking and Capital Markets
Investment Banking net revenues from Advisory, Equity underwriting and Debt underwriting totaling $1.19 billion were 24% higher than the prior year quarter. Advisory net revenues of $634 million reflect our second-best quarter ever and were 6% higher than the prior year quarter, driven by increased activity in mergers and acquisitions across a number of sectors. Underwriting net revenues of $556 million were meaningfully higher than the prior year quarter, primarily driven by market share gains and increased activity in Equity underwriting across most sectors. Debt underwriting results were solid. Capital Markets net revenues of $692 million were higher compared to the prior year quarter. Equities net revenues increased from the prior year quarter by 18%, as results from our prime services, global electronic trading businesses significantly increased from the prior year quarter. Additionally, revenues from our Europe equity cash business also produced strong results. Fixed Income net revenues decreased from the prior year quarter as strong results from our securitized markets business was offset by lower results in our client flow trading, global rates and municipal securities businesses.		Investment Banking net revenues from Advisory, Equity underwriting and Debt underwriting totaling $3.79 billion were 15% higher than the prior year. Other investment banking net revenues were $3 million, compared to net revenues of $144 million for the prior year period in part due to the prior year period including Foursight operating revenues as well as the impact of the gain on sale as Foursight was sold in April 2024, and mark to market losses in 2025 on certain positions compared to gains in the prior year. Advisory net revenues of $2.15 billion reflect our best year ever and were 18% higher than the prior year period, driven by market share gains and increased overall market opportunity. Underwriting net revenues of $1.64 billion were higher than the prior year period, as stronger net revenues in Debt underwriting attributable to the increase in transaction activity across most sectors were partially offset by lower net revenues in Equity underwriting, consistent with the overall industry slowdown in the first-half of 2025. Capital Markets net revenues of $2.82 billion were higher compared to the prior year. Equities net revenues were strong for the current year attributable to overall increased levels of activity during the period. Fixed Income net revenues decreased from the prior year period due to lower global activity levels and volatility in credit spreads for the first-half of 2025 meaningfully impacting the overall trading environment.

Asset Management		Asset Management
Asset Management fees and revenues and investment return of $81 million were modestly lower than the prior year quarter despite a markdown of $30 million on Point Bonita. Asset management fees and revenues remained flat. Investment return remained relatively flat as outperformance across multiple fund strategies was offset by underperformance in other strategies including a pre-tax loss of $30 million related to our investment in Point Bonita.		Asset Management fees and revenues and investment return of $319 million were slightly higher than the prior year period despite a markdown of $30 million on Point Bonita. Asset management fees and revenues were higher compared to the prior year period, primarily reflecting higher performance fees on funds managed by us and through our strategic affiliates. Investment return was lower compared to the prior year period, primarily driven by a pre-tax loss of $30 million related to our investment in Point Bonita.

Non-interest Expenses		Non-interest Expenses
Compensation and benefits expense as a percentage of Net revenues was 52.2%, compared to 50.2% for the prior year quarter. Non-compensation expenses were higher primarily due to increased brokerage and clearing fees associated with increased equities trading volumes, and increased technology and communication and business development expenses. Non-compensation expenses as a percentage of Net revenues increased to 35.5%, compared to 34.2% for the prior year quarter. These increases reflect our continued investment in advancing key strategic priorities that strengthen our platform and position us for long-term growth.		Compensation and benefits expense as a percentage of Net revenues was 52.6%, compared to 52.0% for the prior year period. Non-compensation expenses were higher primarily due to increased brokerage and clearing fees associated with increased equities trading volumes, and increased technology and communication and business development expenses. The current year period also includes approximately $19 million in charitable donations. In addition, non-compensation expenses for the prior year period include Foursight activity up through the sale in April 2024. Non-compensation expenses as a percentage of Net revenues increased to 35.6%, compared to 33.7% for the prior year period. These increases reflect our continued investment in advancing key strategic priorities that strengthen our platform and position us for long-term growth.

* * * *

Amounts herein pertaining to November 30, 2025 represent a preliminary estimate as of the date of this earnings release and may be revised upon filing our Annual Report on Form 10-K with the Securities and Exchange Commission (“SEC”). More information on our results of operations for the year ended November 30, 2025 will be provided upon filing our Annual Report on Form 10-K with the SEC, which we expect to file on or about January 28, 2026.

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)

$ in thousands, except per share amounts	Three Months Ended November 30,						Year Ended November 30,
	2025			2024			2025			2024
Revenues
Investment banking	$	1,192,314		$	964,317		$	3,799,290		$	3,309,060
Principal transactions		378,330			435,531			1,610,960			1,816,963
Commissions and other fees		356,042			297,381			1,322,753			1,085,349
Asset management fees and revenues		12,110			11,980			130,673			86,106
Interest		832,227			907,495			3,402,317			3,543,497
Other		177,801			234,537			557,684			674,094
Total revenues		2,948,824			2,851,241			10,823,677			10,515,069
Interest expense		879,971			894,639			3,479,926			3,480,266
Net revenues		2,068,853			1,956,602			7,343,751			7,034,803
Non-interest expenses
Compensation and benefits		1,080,779			981,626			3,860,255			3,659,588
Brokerage and clearing fees		128,858			111,396			489,203			432,721
Underwriting costs		33,135			17,439			85,838			68,492
Technology and communications		155,343			136,952			598,187			546,655
Occupancy and equipment rental		32,596			31,053			126,414			118,611
Business development		104,323			89,026			335,683			283,459
Professional services		90,258			78,237			313,821			296,204
Depreciation and amortization		55,810			51,201			192,281			190,326
Cost of sales		71,975			96,750			190,934			206,283
Other expenses		62,568			58,060			280,146			226,918
Total non-interest expenses		1,815,645			1,651,740			6,472,762			6,029,257
Earnings from continuing operations before income taxes		253,208			304,862			870,989			1,005,546
Income tax expense		37,537			86,117			184,570			293,194
Net earnings from continuing operations		215,671			218,745			686,419			712,352
Net (losses) earnings from discontinued operations (including gain on disposal), net of income taxes		(4,374	)		5,155			(4,374	)		3,667
Net earnings		211,297			223,900			682,045			716,019
Net losses attributable to noncontrolling interests		(3,738	)		(8,262	)		(28,430	)		(27,364	)
Preferred stock dividends		24,145			26,416			79,684			74,110
Net earnings attributable to common shareholders	$	190,890		$	205,746		$	630,791		$	669,273

Financial Data and Metrics (Unaudited)

	Three Months Ended									Year Ended
	November 30, 2025			August 31, 2025			November 30, 2024			November 30, 2025			November 30, 2024
Other Data:
Number of trading days		63			63			63			250			251
Number of trading loss days7		3			3			8			23			19
Average VaR (in millions)8	$	9.50		$	10.45		$	12.75		$	11.23		$	13.13

In millions, except other data	November 30, 2025		August 31, 2025		November 30, 2024
Financial position:
Total assets	$	76,012	$	69,320	$	64,360
Cash and cash equivalents		14,044		11,458		12,153
Financial instruments owned		27,723		26,117		24,138
Level 3 financial instruments owned9		739		803		734
Goodwill and intangible assets, net		2,040		2,052		2,054
Total equity		10,642		10,501		10,225
Total shareholders' equity		10,575		10,439		10,157
Tangible shareholders' equity10		8,535		8,387		8,103
Other data and financial ratios:
Leverage ratio11		7.1		6.6		6.3
Tangible gross leverage ratio12		8.7		8.0		7.7
Number of employees at period end		7,825		7,866		7,822
Number of employees excluding Tessellis and Stratos at period end		6,194		6,206		5,968

Components of Numerators and Denominators for Earnings Per Common Share

$ in thousands, except per share amounts	Three Months Ended November 30,						Year Ended November 30,
	2025			2024			2025			2024
Numerator for earnings per common share from continuing operations:
Net earnings from continuing operations	$	215,671		$	218,746		$	686,419		$	712,352
Less: Net losses attributable to noncontrolling interests		(3,738	)		(7,826	)		(28,430	)		(24,367	)
Allocation of earnings to participating securities		(24,145	)		(26,416	)		(79,684	)		(74,110	)
Net earnings from continuing operations attributable to common shareholders for basic earnings per share	$	195,264		$	200,156		$	635,165		$	662,609
Net earnings from continuing operations attributable to common shareholders for diluted earnings per share	$	195,264		$	200,156		$	635,165		$	662,609
Numerator for earnings per common share from discontinued operations:
Net (losses) earnings from discontinued operations, net of taxes	$	(4,374	)	$	5,155		$	(4,374	)	$	3,667
Less: Net losses attributable to noncontrolling interests		—			(436	)		—			(2,997	)
Net (losses) earnings from discontinued operations attributable to common shareholders for basic and diluted earnings per share	$	(4,374	)	$	5,591		$	(4,374	)	$	6,664
Net earnings attributable to common shareholders for basic earnings per share	$	190,890		$	205,747		$	630,791		$	669,273
Net earnings attributable to common shareholders for diluted earnings per share	$	190,890		$	205,747		$	630,791		$	669,273
Denominator for earnings per common share:
Weighted average common shares outstanding		206,286			205,499			206,214			208,873
Weighted average shares of restricted stock outstanding with future service required		(2,178	)		(2,298	)		(2,239	)		(2,334	)
Weighted average restricted stock units outstanding with no future service required		11,346			10,546			11,121			10,540
Weighted average basic common shares		215,454			213,747			215,096			217,079
Stock options and other share-based awards		4,862			4,968			4,913			3,638
Senior executive compensation plan restricted stock unit awards		3,009			3,619			2,737			2,933
Weighted average diluted common shares		223,325			222,334			222,746			223,650
Earnings (losses) per common share:
Basic from continuing operations	$	0.91		$	0.94		$	2.95		$	3.05
Basic from discontinued operations		(0.02	)		0.02			(0.02	)		0.03
Basic	$	0.89		$	0.96		$	2.93		$	3.08
Diluted from continuing operations	$	0.87		$	0.91		$	2.85		$	2.96
Diluted from discontinued operations		(0.02	)		0.02			(0.02	)		0.03
Diluted	$	0.85		$	0.93		$	2.83		$	2.99

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.

Adjusted Net Earnings Attributable to Common Shareholders and Adjusted Earnings Per Share Reconciliation

$ in thousands	Three Months Ended November 30,						Year Ended November 30,
	2025			2024			2025			2024
Net earnings attributable to common shareholders (GAAP)	$	190,890		$	205,747		$	630,791		$	669,273
Loss attributable to Point Bonita, net of tax		22,570			—			22,570			—
Adjusted net earnings attributable to common shareholders (non-GAAP)		213,460			205,747			653,361			669,273
Diluted earnings per share from continuing operations (GAAP)	$	0.87		$	0.91		$	2.85		$	2.96
Loss attributable to Point Bonita, net of tax		0.09			—			0.09			—
Adjusted diluted earnings per share from continuing operations (non-GAAP)	$	0.96		$	0.91		$	2.94		$	2.96

Return on Adjusted Tangible Equity Reconciliation

$ in thousands	Three Months Ended November 30,						Year Ended November 30,
	2025			2024			2025			2024
Net earnings attributable to common shareholders (GAAP)	$	190,890		$	205,747		$	630,791		$	669,273
Intangible amortization and impairment expense, net of tax		7,110			5,871			29,335			21,771
Adjusted net earnings to common shareholders (non-GAAP)		198,000			211,618			660,126			691,044
Preferred stock dividends		24,145			26,416			79,684			74,110
Adjusted net earnings to total shareholders (non-GAAP)	$	222,145		$	238,034		$	739,810		$	765,154
Adjusted net earnings to total shareholders (non-GAAP)1	$	888,580		$	952,136		$	739,810		$	765,154
Net earnings impact for net losses (earnings) from discontinued operations, net of noncontrolling interests		4,374			(5,591	)		4,374			(6,664	)
Adjusted net earnings to total shareholders from continuing operations (non-GAAP)		226,519			232,443			744,184			758,490
Adjusted net earnings to total shareholders from continuing operations (non-GAAP)1		906,076			929,772			744,184			758,490
Net earnings impact for Point Bonita loss		22,570			—			22,570			—
Adjusted net earnings to total shareholders from continuing operations excluding Point Bonita loss (non-GAAP)		249,089			232,443			766,754			758,490
Adjusted net earnings to total shareholders from continuing operations excluding Point Bonita loss (non-GAAP)1		996,356			929,772			766,754			758,490
	August 31,						November 30,
	2025			2024			2024			2023
Shareholders' equity (GAAP)	$	10,438,724		$	10,045,945		$	10,156,772		$	9,709,827
Less: Intangible assets, net and goodwill		(2,052,740	)		(2,073,105	)		(2,054,310	)		(2,044,776	)
Less: Deferred tax asset, net		(615,373	)		(572,772	)		(497,590	)		(458,343	)
Less: Weighted average impact of dividends and share repurchases		(64,387	)		(58,519	)		(258,443	)		(199,572	)
Adjusted tangible shareholders' equity (non-GAAP)	$	7,706,224		$	7,341,549		$	7,346,429		$	7,007,136
Return on adjusted tangible shareholders' equity (non-GAAP)1		11.5	%		13.0	%		10.1	%		10.9	%
Return on adjusted tangible shareholders' equity from continuing operations (non-GAAP)1		11.8	%		12.7	%		10.1	%		10.8	%
Adjusted return on adjusted tangible shareholders' equity from continuing operations (non-GAAP)1		12.9	%		12.7	%		10.4	%		10.8	%

Adjusted Tangible Book Value and Fully Diluted Shares Outstanding Reconciliation

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

$ in thousands, except per share amounts		November 30, 2025			November 30, 2024
Book value (GAAP)		$	10,574,696		$	10,156,772
Stock options(1)			114,939			114,939
Intangible assets, net and goodwill			(2,040,147	)		(2,054,310	)
Adjusted tangible book value (non-GAAP)		$	8,649,488		$	8,217,401
Common shares outstanding (GAAP)			206,296			205,504
Preferred shares			27,563			27,563
Restricted stock units ("RSUs")			16,203			14,381
Stock options(1)			5,065			5,065
Other			1,602			1,388
Adjusted fully diluted shares outstanding (non-GAAP)(2)			256,729			253,901
Book value per common share outstanding		$	51.26		$	49.42
Adjusted tangible book value per fully diluted share outstanding (non-GAAP)		$	33.69		$	32.36
(1)	Stock options added to book value are equal to the total number of stock options outstanding as of November 30, 2025 and 2024 of 5.1 million multiplied by the weighted average exercise price of $22.69 on November 30, 2025 and 2024.
(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, Return on adjusted tangible shareholders' equity from continuing operations and Adjusted 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 8 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 9 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 9 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, revenue from strategic affiliated asset managers where we are entitled to portions their operating revenues and income based on our ownership interests in the affiliates.
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 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.
14. Compensation ratio equals total compensation expense divided by total net revenues. Non-compensation ratio equals total non-compensation expense divided by total net revenues.
15. Adjusted net earnings attributable to common shareholders (a non-GAAP financial measure) excludes the $30.0 million expense ($22.6 million, net of tax) related to a loss associated with our investment in Point Bonita in the current quarter. Refer to schedule on page 8 for a reconciliation to U.S. GAAP amounts.

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Jonathan Freedman 212.778.8913

Source: Jefferies Financial Group Inc.