Record advisory and equities fuel Jefferies (NYSE: JEF) strong Q2 2026 results
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Jefferies Financial Group reported strong second-quarter 2026 results, with net revenues of $2.21 billion and net earnings attributable to common shareholders of $226 million, or $1.02 per diluted share, significantly above the prior-year quarter. Investment banking net revenues reached $1.21 billion, up 57% year over year and a quarterly record, while capital markets net revenues were $799 million, up 14%. Equities delivered record net revenues of $601 million, also up 14%, and fixed income net revenues rose 12% to $199 million. Asset management net revenues were $188 million, with fees and investment returns lower than the prior-year quarter as the firm reallocates capital and prepares to acquire 50% of Hildene. Book value per common share was $51.95 and adjusted tangible book value per fully diluted share was $34.55. The board declared a quarterly dividend of $0.40 per share and the company repurchased 4.0 million shares for $197 million in the quarter.
Positive
- Record advisory, underwriting and equities performance: Q2 2026 investment banking net revenues reached $1.21 billion, up 57% year over year, with record advisory and equities net revenues contributing to strong overall profitability.
- Improved earnings and returns: Net earnings attributable to common shareholders rose to $226 million with diluted EPS of $1.02 and a 12.8% return on adjusted tangible shareholders' equity, indicating stronger efficiency and profitability.
Negative
- None.
Insights
Q2 2026 shows record fee revenues, strong profitability and active capital return.
Jefferies delivered Q2 2026 net revenues of $2.21 billion, with investment banking and capital markets driving record levels. Investment banking net revenues of $1.21 billion were up 57% year over year, and equities produced record net revenues of $601 million, up 14%.
Profitability improved meaningfully: net earnings attributable to common shareholders rose to $226 million, or $1.02 per diluted share, and return on adjusted tangible shareholders' equity reached 12.8%. The compensation ratio was 53.9% and the non-compensation ratio fell to 31.8%, indicating better operating leverage despite higher activity-related costs.
Capital return was notable, with a $0.40 per-share dividend and $197 million of share repurchases at an average price of $49.83, while book value per common share increased to $51.95. Asset management results were softer in the quarter as fees and investment returns declined, and the company recorded a $35.5 million after-tax goodwill write-down tied to Tessellis over six months, but the core advisory, underwriting, and equities franchises appear to be the primary earnings drivers.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net revenues Q2 2026: $2,206.5M
Net earnings to common Q2 2026: $226.2M
Diluted EPS Q2 2026: $1.02/share
+5 more
8 metrics
Net revenues Q2 2026
$2,206.5M
Three months ended May 31, 2026
Net earnings to common Q2 2026
$226.2M
Three months ended May 31, 2026
Diluted EPS Q2 2026
$1.02/share
Voting common shares, quarter ended May 31, 2026
Investment banking net revenues
$1,206.8M
Q2 2026, up 57% vs prior-year quarter
Capital markets net revenues
$799.3M
Q2 2026, up 14% vs prior-year quarter
Shares repurchased
4.0M shares for $197M
Quarter ended May 31, 2026, avg price $49.83
Quarterly dividend
$0.40/share
Declared payable August 28, 2026
Book value per share
$51.95
Book value per common share at May 31, 2026
Key Terms
Return on adjusted tangible shareholders' equity, Adjusted tangible book value, Value-at-Risk, Level 3 financial instruments, +2 more
6 terms
Adjusted tangible book value financial
"Adjusted tangible book value per fully diluted share 3 was $34.55."
Adjusted tangible book value measures a company's net worth based only on physical and cash resources after removing intangible items like goodwill, then further correcting for one-time charges, preferred claims, and other accounting quirks. For investors it offers a conservative, per-share estimate of what shareholders might realistically own or recover in a worst-case sale, similar to checking a car's resale value after subtracting add-ons and fixing known problems to see what you'd actually get.
Value-at-Risk financial
"Average VaR (in millions) 8 | $ | 10.31"
Value-at-risk (VaR) estimates the largest loss an investment or portfolio is likely to suffer over a specific time frame at a given probability level — for example, the amount you would expect to lose or exceed only 5% of the time. Think of it like a weather forecast for losses: it gives a commonly agreed threshold for how bad things might get. Investors use VaR to set risk limits, compare portfolios, and decide how much capital to hold against potential losses.
Level 3 financial instruments financial
"Level 3 financial instruments owned 9 | 839"
Level 3 financial instruments are assets or liabilities whose value must be estimated using significant judgment and models because there are no observable market prices — like trying to price a one‑of‑a‑kind antique instead of a stock that trades on an exchange. They matter to investors because those valuations are more uncertain and sensitive to assumptions, which can increase the risk of swings in reported assets, liabilities and earnings and make transparency about valuation methods especially important.
Compensation ratio financial
"Compensation ratio 13 | 53.9 % | 53.8 %"
The compensation ratio compares the total pay awarded to a top executive (often the CEO) with the pay of a typical employee, usually by dividing the executive’s total compensation by the company’s median worker pay. It matters to investors because it reveals how pay is distributed inside a company—like a snapshot of priorities—helping assess governance, cost structure and potential risks to morale, reputation or labor costs.
Earnings Snapshot
Net revenues: $2,206.5M
Q2 2026
Net revenues
$2,206.5M
higher vs $1,634.4M prior-year quarter
Net earnings to common
$226.2M
higher vs $88.0M prior-year quarter
Diluted EPS
$1.02
higher vs $0.40 prior-year quarter
Investment banking net revenues
$1,206.8M
+57% vs prior-year quarter
Capital markets net revenues
$799.3M
+14% vs prior-year quarter
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________________________
FORM 8-K
________________________________
CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): June 24, 2026
________________________________
(Exact name of registrant as specified in its charter)
________________________________
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||||||||
Registrant's telephone number, including area code: (212) 284-2300
(Former name or former address, if changed since last report)
______________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition
On June 24, 2026 , we issued a press release containing financial results for our quarter and six months ended May 31, 2026. A copy of the press release is attached hereto as Exhibit 99 and is incorporated herein by reference.
The information provided in this Item 2.02, including the exhibits hereto, is intended to be “furnished” and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any other filing under the Securities Act or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits
The following exhibits are furnished with this report:
| Exhibit No. | Description | ||||
| 99 | Press Release of Jefferies Financial Group Inc. - Quarter and Six Months ended May 31, 2026 Results | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: June 24, 2026
| JEFFERIES FINANCIAL GROUP INC. | ||||||||
| By: | /s/ Michael J. Sharp | |||||||
| Name: | Michael J. Sharp | |||||||
| Title: | Executive Vice President and General Counsel | |||||||
 | FOR MORE INFORMATION Jonathan Freedman 212.778.8913 | |||||||
For Immediate Release
NEW YORK — Jefferies Financial Group Inc. (NYSE: JEF)
June 24, 2026
Jefferies Announces Second Quarter 2026 Financial Results
Quarterly Record Combined Investment Banking Advisory and Underwriting Net Revenues,
as well as Quarterly Record Equities Net Revenues
Q2 Financial Highlights
| $ in thousands, except per share amounts | Quarter End | Year-to-Date | ||||||||||||
| 2Q26 | 2Q25 | 2026 | 2025 | |||||||||||
| Net earnings attributable to common shareholders | $ | 226,234 | $ | 88,017 | $ | 382,161 | $ | 215,955 | ||||||
| Diluted earnings per voting common share | $ | 1.02 | $ | 0.40 | $ | 1.70 | $ | 0.97 | ||||||
Return on adjusted tangible shareholders' equity1 | 12.8 | % | 5.5 | % | 12.2 | % | 6.9 | % | ||||||
| Total net revenues | $ | 2,206,451 | $ | 1,634,447 | $ | 4,223,581 | $ | 3,227,466 | ||||||
| Investment banking net revenues | $ | 1,206,820 | $ | 766,307 | $ | 2,224,113 | $ | 1,466,999 | ||||||
| Capital markets net revenues | $ | 799,292 | $ | 704,155 | $ | 1,578,048 | $ | 1,402,439 | ||||||
| Asset management net revenues | $ | 187,718 | $ | 154,621 | $ | 407,980 | $ | 346,336 | ||||||
| Pre-tax earnings | $ | 315,549 | $ | 134,901 | $ | 527,765 | $ | 285,966 | ||||||
| Book value per common share | $ | 51.95 | $ | 49.96 | $ | 51.95 | $ | 49.96 | ||||||
Adjusted tangible book value per fully diluted share3 | $ | 34.55 | $ | 32.84 | $ | 34.55 | $ | 32.84 | ||||||
Quarterly Cash Dividend and Stock Buyback Activity
The Jefferies Board of Directors declared a quarterly cash dividend equal to $0.40 per Jefferies common share, payable on August 28, 2026 to record holders of Jefferies common shares on August 18, 2026.
During the quarter, we repurchased 4.0 million shares of common stock for $197 million, or an average price of $49.83 per share. Our Board of Directors has increased our share buyback authorization back to a total of $250 million.
Management Comments
"Our strong second quarter net revenues of $2.21 billion, net earnings attributable to common shareholders of $226 million, diluted earnings per voting common share of $1.02 and return on adjusted tangible shareholders' equity of 12.8% reflect the momentum and market position we have been building at Jefferies.
"The continued acceleration in our core businesses during the second quarter drove record first half net revenues in Advisory, total Investment Banking, Equities, total Capital Markets and combined Investment Banking and Capital Markets. We expect to build further on this momentum in coming periods.
“Investment Banking net revenues were $1.21 billion, up 57% from the prior year quarter. Growth was driven by continued market share gains and a growing addressable market in our Advisory and Equity Underwriting businesses and represent a balanced performance, as no single outsized fee drove our results. We continue to make progress in building our corporate M&A business, while staying focused on our historical areas of strength in sponsor-led activity and had very strong performance during the quarter with corporates particularly in the healthcare, industrials and energy sectors. The new issue market remains resilient. We continue to be optimistic about the second half of 2026, given the strength of our current backlog and new business bookings.
"Capital Markets net revenues were $799 million, up 14% from the prior year quarter. Equities delivered record net revenues of $601 million, up 14% from the prior year quarter. Our continued growth in Equities is being driven by market share gains in cash and electronic trading in EMEA, Asia and the Americas, as well as growth in prime services where we have become an increasingly important strategic partner to some of the most significant, well diversified, hedge funds in the world. While the growth of client-related prime brokerage balances has added to our overall balance sheet size, it has added a layer of high quality, consistent revenues that supports a more durable earnings profile. Additionally, our equity derivatives business continues to expand in sync with our investment banking business, and has allowed Jefferies to support some of our corporate clients' most important transactions with strategic derivative solutions. The shape and scale of growth in our Equities business is translating to higher overall equities operating margins after we invested the past few years in infrastructure to support meaningfully larger global volumes. Fixed Income net revenues were $199 million, up 12%, from the prior year quarter, reflecting strong performance in our distressed, municipal and emerging markets businesses.
1 Jefferies Financial Group | ||||||||
"Asset management fees and investment return revenues were $46 million, down 35% compared to the prior year quarter due to weaker performance across several fund strategies, as well as the impact of our strategy to reposition the business by reducing capital allocated to certain funds in line with the announcement we made last fall when we disclosed our intent to acquire 50% of Hildene. In the short term, this has resulted in modestly lower investment return until we close our investment in Hildene, which we are targeting to complete in our third quarter, and should be immediately accretive to results."
Richard Handler, CEO, and Brian Friedman, President
2 Jefferies Financial Group | | ||||
Financial Summary (Unaudited)
| $ in thousands | Three Months Ended | Six Months Ended | |||||||||||||||
May 31, 2026 | February 28, 2026 | May 31, 2025 | May 31, 2026 | May 31, 2025 | |||||||||||||
Net revenues by source: | |||||||||||||||||
| Advisory | $ | 674,118 | $ | 527,128 | $ | 457,860 | $ | 1,201,246 | $ | 855,640 | |||||||
| Equity underwriting | 370,691 | 305,969 | 122,366 | 676,660 | 250,886 | ||||||||||||
| Debt underwriting | 160,186 | 181,858 | 205,363 | 342,044 | 404,725 | ||||||||||||
| Other investment banking | 1,825 | 2,338 | (19,282) | 4,163 | (44,252) | ||||||||||||
Total Investment Banking | 1,206,820 | 1,017,293 | 766,307 | 2,224,113 | 1,466,999 | ||||||||||||
| Equities | 600,751 | 558,488 | 526,244 | 1,159,239 | 935,302 | ||||||||||||
| Fixed income | 198,541 | 220,268 | 177,911 | 418,809 | 467,137 | ||||||||||||
Total Capital Markets | 799,292 | 778,756 | 704,155 | 1,578,048 | 1,402,439 | ||||||||||||
Total Investment Banking and Capital Markets Net revenues5 | 2,006,112 | 1,796,049 | 1,470,462 | 3,802,161 | 2,869,438 | ||||||||||||
Asset management fees and revenues6 | 15,169 | 69,910 | 20,766 | 85,079 | 109,396 | ||||||||||||
| Investment return | 31,037 | 88,992 | 50,404 | 120,029 | 44,770 | ||||||||||||
Allocated net interest4 | (22,935) | (22,238) | (19,144) | (45,173) | (36,365) | ||||||||||||
| Other investments, inclusive of net interest | 164,447 | 83,598 | 102,595 | 248,045 | 228,535 | ||||||||||||
Total Asset Management Net revenues | 187,718 | 220,262 | 154,621 | 407,980 | 346,336 | ||||||||||||
| Other | 12,621 | 819 | 9,364 | 13,440 | 11,692 | ||||||||||||
| Total Net revenues by source | $ | 2,206,451 | $ | 2,017,130 | $ | 1,634,447 | $ | 4,223,581 | $ | 3,227,466 | |||||||
| Non-interest expenses: | |||||||||||||||||
| Compensation and benefits | $ | 1,188,245 | $ | 1,085,890 | $ | 854,839 | $ | 2,274,135 | $ | 1,695,966 | |||||||
Compensation ratio13 | 53.9 | % | 53.8 | % | 52.3 | % | 53.8 | % | 52.5 | % | |||||||
| Non-compensation expenses | $ | 702,657 | $ | 719,024 | $ | 644,707 | $ | 1,421,681 | $ | 1,245,534 | |||||||
Non-compensation ratio13 | 31.8 | % | 35.6 | % | 39.4 | % | 33.7 | % | 38.6 | % | |||||||
| Total Non-interest expenses | $ | 1,890,902 | $ | 1,804,914 | $ | 1,499,546 | $ | 3,695,816 | $ | 2,941,500 | |||||||
| Net earnings before income taxes | $ | 315,549 | $ | 212,216 | $ | 134,901 | $ | 527,765 | $ | 285,966 | |||||||
| Income tax expense | $ | 65,571 | $ | 52,870 | $ | 43,506 | $ | 118,441 | $ | 57,722 | |||||||
| Income tax rate | 20.8 | % | 24.9 | % | 32.3 | % | 22.4 | % | 20.2 | % | |||||||
Net earnings | $ | 249,978 | $ | 159,346 | $ | 91,395 | $ | 409,324 | $ | 228,244 | |||||||
| Net losses attributable to noncontrolling interests | (5,440) | (15,858) | (7,668) | (21,298) | (14,651) | ||||||||||||
| Preferred stock dividends | 29,184 | 19,504 | 11,046 | 48,461 | 26,940 | ||||||||||||
Net earnings attributable to common shareholders | $ | 226,234 | $ | 155,700 | $ | 88,017 | $ | 382,161 | $ | 215,955 | |||||||
3 Jefferies Financial Group | | ||||
Results Discussion
Three Months Ended May 31, 2026 Versus May 31, 2025 | Six Months Ended May 31, 2026 Versus May 31, 2025 | |||||||
•Net earnings attributable to common shareholders of $226 million. •Diluted earnings per voting common share of $1.02. •Return on adjusted tangible shareholders' equity1 of 12.8%. •Repurchased 4.0 million shares of common stock for $197 million, at an average price of $49.83 per share, including 2.5 million shares of common stock in the open market for $121 million and 1.5 million shares of common stock for $76 million in connection with net-share settlements related to our equity compensation plans. •We had 194.1 million voting common shares outstanding and 252.0 million common shares outstanding on a fully diluted basis2 at May 31, 2026. Our book value per common share was $51.95 and adjusted tangible book value per fully diluted share3 was $34.55. •Effective tax rate of 20.8% compared to 32.3% for the prior year quarter. The lower rate was primarily from investment tax credits and lower state and local taxes. | •Net earnings attributable to common shareholders of $382 million. •Diluted earnings per voting common share of $1.70. •Return on adjusted tangible shareholders' equity1 of 12.2%. •Repurchased 7.0 million shares of common stock for $372 million, at an average price of $53.42 per share, including 5.0 million shares of common stock in the open market for $265 million and 2.0 million shares of common stock for $107 million in connection with net-share settlements related to our equity compensation plans. •Effective tax rate of 22.4% compared to 20.2% for the prior year period. The lower rate last year was primarily driven by the partial resolution of certain state and local tax matters in the prior year period. | |||||||
Investment Banking and Capital Markets | Investment Banking and Capital Markets | |||||||
•Investment Banking net revenues from combined Advisory and Underwriting totaling $1.20 billion reflect our best quarterly results ever and were 53% higher than the prior year quarter. •Advisory net revenues of $674 million reflect our best quarter on record and were 47% higher than the prior year quarter, driven by market share gains and increased deal volumes. •Underwriting net revenues of $531 million were 62% higher than the prior year quarter, primarily driven by market share gains and increased activity in Equity underwriting across most sectors. Debt underwriting remained solid but decreased compared to the prior year quarter primarily due to lower deal values and lower origination of asset-backed securities. •Capital Markets net revenues of $799 million were 14% higher compared to the prior year quarter. •Equities net revenues increased 14%, marking our strongest quarter on record, primarily due to higher global trading volumes driving stronger results across most of our businesses, particularly within cash and electronic trading. Additionally, prime services continues to expand. •Fixed Income net revenues increased 12% from the prior year quarter, primarily driven by strong performance in our distressed, municipal securities and emerging markets businesses. | •Investment Banking net revenues from Advisory and Underwriting totaling $2.22 billion reflect our best first-half year results ever and were 47% higher than the prior year period. •Advisory net revenues of $1.20 billion reflect our best first-half year results ever and were 40% higher than the prior year period, driven by market share gains and increased overall market opportunity. •Underwriting net revenues of $1.02 billion were 55% higher than the prior year period, primarily driven by market share gains and increased activity in Equity underwriting across several sectors and is reflective of a stronger issuance market. Debt underwriting remained strong but decreased compared to the prior year period primarily due to lower deal values. •Capital Markets net revenues of $1.58 billion reflect our best first-half year results ever and were 13% higher compared to the prior year period. •Equities net revenues increased 24%, marking our highest first-half year results on record, primarily due to higher global trading volumes driving stronger results across most of our businesses, particularly within cash and electronic trading. Additionally, prime services continues to expand. Our equity options, convertibles, and corporate derivatives businesses also produced strong results. •Fixed Income net revenues decreased 10% from the prior year period and current year results include a mark-to-market loss associated with Market Financial Solutions. | |||||||
Asset Management | Asset Management | |||||||
•Asset Management fees and revenues and investment return of $46 million were lower than the prior year quarter. •Asset management fees and revenues decreased from the prior year quarter, as a result of lower management fees from funds and accounts managed by us, primarily Point Bonita, as well as funds and accounts managed by our strategic affiliates. •Investment return decreased from the prior year quarter, as strong performance from strategies with a long equity bias was offset by lower performance across other fund strategies and the impact of reduced capital allocated to certain funds based on our strategy to reposition the business. | •Asset Management fees and revenues and investment return of $205 million were meaningfully higher than the prior year period. •Asset management fees and revenues were lower compared to the prior year period, as a result of higher performance fees from funds and accounts managed by our strategic affiliates, offset by lower performance fees largely associated with Point Bonita. •Investment return increased significantly from the prior year period due to improved performance across several fund strategies, particularly those with a long-equity bias. | |||||||
4 Jefferies Financial Group | | ||||
Non-interest Expenses | Non-interest Expenses | |||||||
•Compensation and benefits expense as a percentage of Net revenues was 54%, compared to 52% 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 expenses. Non-compensation expenses as a percentage of Net revenues decreased to 32%, compared to 39% for the prior year quarter. | •Compensation and benefits expense as a percentage of Net revenues was 54%, compared to 53% 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. In addition, other expenses were higher primarily due to the write-down of goodwill associated with the expected sale of Tessellis. Non-compensation expenses as a percentage of Net revenues decreased to 34%, compared to 39% for the prior year period. | |||||||
* * * *
Amounts herein pertaining to May 31, 2026 represent a preliminary estimate as of the date of this earnings release and may be revised upon filing our Quarterly Report on Form 10-Q with the Securities and Exchange Commission (“SEC”). More information on our results of operations for the three and six months ended May 31, 2026 will be provided upon filing our Quarterly Report on Form 10-Q with the SEC, which we expect to file on or about July 9, 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).
5 Jefferies Financial Group | | ||||
Consolidated Statements of Earnings (Unaudited)
$ in thousands, except per share amounts | Three Months Ended May 31, | Six Months Ended May 31, | ||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| Revenues | ||||||||||||||
| Investment banking | $ | 1,209,625 | $ | 789,269 | $ | 2,227,909 | $ | 1,518,779 | ||||||
| Principal transactions | 488,666 | 338,507 | 976,164 | 745,737 | ||||||||||
| Commissions and other fees | 400,614 | 353,233 | 768,218 | 641,533 | ||||||||||
| Asset management fees and revenues | 9,788 | 20,076 | 77,150 | 105,484 | ||||||||||
| Interest | 853,962 | 878,025 | 1,667,081 | 1,723,196 | ||||||||||
| Other | 155,542 | 115,205 | 272,940 | 232,450 | ||||||||||
| Total revenues | 3,118,197 | 2,494,315 | 5,989,462 | 4,967,179 | ||||||||||
| Interest expense | 911,746 | 859,868 | 1,765,881 | 1,739,713 | ||||||||||
| Net revenues | 2,206,451 | 1,634,447 | 4,223,581 | 3,227,466 | ||||||||||
| Non-interest expenses | ||||||||||||||
| Compensation and benefits | 1,188,245 | 854,839 | 2,274,135 | 1,695,966 | ||||||||||
| Brokerage and clearing fees | 147,446 | 129,745 | 280,578 | 239,181 | ||||||||||
| Underwriting costs | 26,858 | 14,525 | 58,241 | 32,371 | ||||||||||
| Technology and communications | 162,860 | 146,198 | 322,718 | 285,673 | ||||||||||
| Occupancy and equipment rental | 34,499 | 30,711 | 68,359 | 60,910 | ||||||||||
| Business development | 89,108 | 80,070 | 164,530 | 152,361 | ||||||||||
| Professional services | 98,707 | 77,768 | 175,651 | 150,234 | ||||||||||
| Depreciation and amortization | 47,328 | 52,253 | 104,193 | 83,241 | ||||||||||
| Cost of sales | 31,253 | 42,961 | 61,173 | 84,529 | ||||||||||
| Other expenses | 64,598 | 70,476 | 186,238 | 157,034 | ||||||||||
| Total non-interest expenses | 1,890,902 | 1,499,546 | 3,695,816 | 2,941,500 | ||||||||||
| Earnings before income taxes | 315,549 | 134,901 | 527,765 | 285,966 | ||||||||||
| Income tax expense | 65,571 | 43,506 | 118,441 | 57,722 | ||||||||||
| Net earnings | 249,978 | 91,395 | 409,324 | 228,244 | ||||||||||
| Net losses attributable to noncontrolling interests | (5,440) | (7,668) | (21,298) | (14,651) | ||||||||||
| Preferred stock dividends | 29,184 | 11,046 | 48,461 | 26,940 | ||||||||||
| Net earnings attributable to common shareholders | $ | 226,234 | $ | 88,017 | $ | 382,161 | $ | 215,955 | ||||||
| | ||||||||||||||
6 Jefferies Financial Group | | ||||
Financial Data and Metrics (Unaudited)
| Three Months Ended | Six Months Ended | ||||||||||||||||
May 31, 2026 | February 28, 2026 | May 31, 2025 | May 31, 2026 | May 31, 2025 | |||||||||||||
| Other Data: | |||||||||||||||||
| Number of trading days | 63 | 61 | 63 | 124 | 124 | ||||||||||||
Number of trading loss days7 | 0 | 1 | 13 | 1 | 17 | ||||||||||||
Average VaR (in millions)8 | $ | 10.31 | $ | 9.78 | $ | 11.89 | $ | 10.05 | $ | 12.50 | |||||||
| In millions, except other data | May 31, 2026 | February 28, 2026 | May 31, 2025 | ||||||||
| Financial position: | |||||||||||
| Total assets | $ | 79,540 | $ | 74,380 | $ | 67,285 | |||||
| Cash and cash equivalents | 14,315 | 11,963 | 11,260 | ||||||||
| Financial instruments owned | 28,038 | 28,079 | 25,570 | ||||||||
Level 3 financial instruments owned9 | 839 | 849 | 763 | ||||||||
Goodwill and intangible assets, net14 | 1,974 | 1,979 | 2,060 | ||||||||
| Total equity | 10,607 | 10,662 | 10,382 | ||||||||
| Total shareholders' equity | 10,567 | 10,611 | 10,305 | ||||||||
Tangible shareholders' equity10 | 8,593 | 8,632 | 8,245 | ||||||||
| Other data and financial ratios: | |||||||||||
Leverage ratio11 | 7.5 | 7.0 | 6.5 | ||||||||
Tangible gross leverage ratio12 | 9.0 | 8.4 | 7.9 | ||||||||
| Number of employees at period end | 7,371 | 7,596 | 7,671 | ||||||||
| Number of employees excluding Tessellis and Stratos at period end | 6,236 | 6,221 | 5,949 | ||||||||
7 Jefferies Financial Group | | ||||
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.
Return on Adjusted Tangible Equity Reconciliation
| $ in thousands | Three Months Ended May 31, | Six Months Ended May 31, | ||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||
| Net earnings attributable to common shareholders (GAAP) | $ | 226,234 | $ | 88,017 | $ | 382,161 | $ | 215,955 | ||||||
Intangible amortization and impairment expense, net of tax15 | 1,682 | 5,824 | 48,170 | 13,093 | ||||||||||
| Adjusted net earnings to common shareholders (non-GAAP) | 227,916 | 93,841 | 430,331 | 229,048 | ||||||||||
| Preferred stock dividends | 29,184 | 11,046 | 48,461 | 26,940 | ||||||||||
| Adjusted net earnings to total shareholders (non-GAAP) | $ | 257,100 | $ | 104,887 | $ | 478,792 | $ | 255,988 | ||||||
Adjusted net earnings to total shareholders (non-GAAP)1 | $ | 1,028,400 | $ | 419,548 | $ | 957,584 | $ | 511,976 | ||||||
| February 28, | November 30, | |||||||||||||
| 2026 | 2025 | 2025 | 2024 | |||||||||||
| Shareholders' equity (GAAP) | $ | 10,610,845 | $ | 10,204,228 | $ | 10,574,696 | $ | 10,156,772 | ||||||
| Less: Goodwill and intangible assets, net | (1,978,652) | (2,037,906) | (2,040,147) | (2,054,310) | ||||||||||
| Less: Deferred tax asset, net | (493,427) | (507,452) | (459,052) | (497,590) | ||||||||||
Less: Weighted average impact of dividends and share repurchases | (112,340) | (67,343) | (244,489) | (157,540) | ||||||||||
| Adjusted tangible shareholders' equity (non-GAAP) | $ | 8,026,426 | $ | 7,591,527 | $ | 7,831,008 | $ | 7,447,332 | ||||||
Return on adjusted tangible shareholders' equity (non-GAAP)1 | 12.8 | % | 5.5 | % | 12.2 | % | 6.9 | % | ||||||
8 Jefferies Financial Group | | ||||
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 | May 31, 2026 | May 31, 2025 | |||||||||
| Book value (GAAP) | $ | 10,566,996 | $ | 10,305,025 | |||||||
Stock options(1) | 114,939 | 114,939 | |||||||||
Goodwill and intangible assets, net(2) | (1,974,240) | (2,060,018) | |||||||||
| Adjusted tangible book value (non-GAAP) | $ | 8,707,695 | $ | 8,359,946 | |||||||
| Voting common shares outstanding (GAAP) | 194,145 | 206,272 | |||||||||
| Non-voting common shares outstanding (GAAP) | 9,247 | — | |||||||||
| Preferred shares | 27,563 | 27,563 | |||||||||
| Restricted stock units ("RSUs") | 14,251 | 14,099 | |||||||||
Stock options(1) | 5,064 | 5,064 | |||||||||
| Other | 1,758 | 1,566 | |||||||||
Adjusted fully diluted shares outstanding (non-GAAP)(3) | 252,028 | 254,564 | |||||||||
| Book value per common share outstanding | $ | 51.95 | $ | 49.96 | |||||||
| Adjusted tangible book value per fully diluted share outstanding (non-GAAP) | $ | 34.55 | $ | 32.84 | |||||||
(1) | Stock options added to book value are equal to the total number of stock options outstanding as of May 31, 2026 and 2025 of 5.1 million multiplied by the exercise price of $22.69 on May 31, 2026 and 2025. | ||||||||||
(2) | Includes goodwill and intangible assets related to Tessellis which were reclassified to assets held for sale during the first quarter of 2026. | ||||||||||
(3) | 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. | ||||||||||
9 Jefferies Financial Group | | ||||
Notes
1.Return on adjusted tangible shareholders' equity represents a non-GAAP financial measure and is 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, 2025.
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.Compensation ratio equals total compensation expense divided by total net revenues. Non-compensation ratio equals total non-compensation expense divided by total net revenues.
14.Includes goodwill and intangible assets related to Tessellis which were reclassified to assets held for sale during the first quarter of 2026.
15.Includes a $35.5 million after-tax write-down of goodwill associated with Tessellis for the six months ended May 31, 2026.
10 Jefferies Financial Group | | ||||
FAQ
How did Jefferies Financial Group (JEF) perform in Q2 2026?
Jefferies reported Q2 2026 net revenues of $2.21 billion and net earnings attributable to common shareholders of $226 million. Diluted EPS was $1.02, reflecting strong growth from investment banking and capital markets versus the prior-year quarter.
What were Jefferies (JEF) Q2 2026 investment banking and capital markets results?
Investment banking net revenues were $1.21 billion, up 57% year over year, driven by advisory and equity underwriting. Capital markets net revenues reached $799 million, up 14%, with record equities net revenues of $601 million.
What capital return did Jefferies (JEF) provide in Q2 2026?
The board declared a quarterly cash dividend of $0.40 per common share, payable August 28, 2026. Jefferies also repurchased 4.0 million shares for $197 million at an average price of $49.83 during the quarter.
How did Jefferies (JEF) asset management business perform in Q2 2026?
Asset management net revenues were $188 million in Q2 2026. Fees and investment returns were lower than the prior-year quarter due to weaker performance in several strategies and reduced capital allocated while preparing a 50% investment in Hildene.
What were Jefferies (JEF) book value and leverage metrics at May 31, 2026?
At May 31, 2026, book value per common share was $51.95 and adjusted tangible book value per fully diluted share was $34.55. Total assets were $79.54 billion and the leverage ratio was 7.5x.