Jefferies Announces Fourth Quarter 2025 Financial Results

View all news January 7, 2026 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 million 15, 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 operations 1 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 basis 2 at November 30, 2025. Our book value per common share was $51.26 and adjusted tangible book value per fully diluted share 3 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 million 15, 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 operations 1 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 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.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.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.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.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.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.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.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.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.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.Leverage ratio equals total assets divided by total equity.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.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.Compensation ratio equals total compensation expense divided by total net revenues. Non-compensation ratio equals total non-compensation expense divided by total net revenues.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. Jonathan Freedman 212.778.8913 Source: Jefferies Financial Group Inc. Categories: Press Releases View all news