Jefferies Financial Group Inc.
For the period ended May 31, 2025. Filed Jul 9, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
May 31, 2025 · Filed Jul 9, 2025
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-02-28; filed 2025-04-09.
0001628280-25-017192
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-05-31; filed 2025-07-09.
0000096223-25-000007
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 1699 previous paragraphs and 1859 current paragraphs.
1376 unchanged; 165 reworded; 291 added; 142 removed; 16 previous and 27 current paragraphs rearranged.
Tables are not compared: 50 previous and 55 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (291)
Current report
•Net revenues were$1.63 billion, down 1.3% compared to$1.66
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billion for the prior year quarter, as market uncertainty related
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to U.S. policy and geopolitical events reduced activity levels for
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certain of our businesses during the current quarter.
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$134.9 million, down 40.8% compared to$227.8 million for the
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prior year quarter, primarily driven by higher non-compensation
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expenses associated with certain business activity, particularly
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in Equities. The prior year period includes the results of
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Foursight through its sale in April 2024.
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wereup 6.4% compared to$738.6 million for the prior year
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quarter. Advisory net revenues wereup 61.3%, primarily
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attributable to market share gains and an increase in mergers
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and acquisitions activity levels across most sectors. Total
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underwriting net revenues were down 28% as debt underwriting
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remained flat and equity underwriting declined, consistent with
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an overall industry slowdown attributable to significant
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uncertainty related to U.S. policy and geopolitical events which
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meaningfully slowed activity levels. Other investment banking
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net revenues were$(19.3) million, compared to net revenues of
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the gain on the sale of Foursight in April 2024.
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•Equities net revenues were$526.2 million, up 24.4% compared
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to$422.9 million for the prior year quarter, primarily
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attributable to market share gains and increased global trading
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business lines.
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•Fixed income net revenues were$177.9 million, down 37.4%
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compared to$284.2 million for the prior year quarter due to
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lower global activity levels and volatility in credit spreads
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impacting the overall trading environment in the current
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compared to$156.5 million for the prior year quarter. Asset
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management fees and revenues were modestly higher and
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Investment return increased due to improved returns generated
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across a number of fund strategies, partially offset by net
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losses on certain investment positions.
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•Compensation and benefits expenses were$854.8 million, a
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decrease of 1%, compared to$862.0 million for the prior year
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of Net revenues was 52.3%, compared to 52.0% for the prior
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•Non-compensation expenses were$644.7 million, higher
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compared to$566.7 million for the prior year quarter. Non-
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compensation expenses were higher primarily due to increased
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brokerage and clearing fees other transactional costs (included
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Removed paragraphs (142)
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•Net revenues were$1.59 billion, down 8.4% compared to$1.74
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billion for the prior year quarter, reflecting a more challenging
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environment due to uncertainties that have arisen around U.S.
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policy and geopolitical events.
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$151.1 million, down 31.4% compared to$220.2 million for the
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prior year quarter. Our first quarter results reflect strength in
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our overall Investment Banking advisory and underwriting
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businesses as well our Equities business offset by a
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Fixed Income business.
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were up 7.2% compared to$677.1 million for theprior year
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quarter. Advisory net revenues were$397.8 million, up 17.5%
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compared to$338.6 million for theprior year quarter, primarily
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attributable to meaningful market share gains and an increase
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in transaction levels across most sectors in the global mergers
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and acquisitions markets. Total underwriting net revenues
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were$327.9 million, down 3.1% compared to$338.5 million for
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theprior year quarter, asstrong results in debt underwriting
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overall industry opportunity in the equity market slowed
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particularly in sectors where we have significant market share.
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Other investment banking net revenues were negative$(25.0)
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million, compared to net revenues of$49.9 million for theprior
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•Equities net revenues were$409.1 million, up 10.0% compared
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to$371.8 million for theprior year quarter, attributable to
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•Fixed income net revenues were$289.2 million, down 17.9%
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compared to$352.5 million for theprior year quarter, as a
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higher confidence driving stronger activity in the prior year
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compared to$273.4 million for theprior year quarter. Asset
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management fees and revenues increased as strong
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performance across multiple managed funds resulted in higher
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performance fee income for the calendar year 2024 which was
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realized in the first quarter of 2025. Investment return
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decreased due to a challenging investment environment for a
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compared to particularly strong performance across several of
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these strategies in theprior year quarter.
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Non-interest Expenses
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decrease of 9.3%, compared to$926.9 million for theprior year
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of Net revenues was 52.8%, compared to 53.3% for theprior
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•Non-compensation expenses were$600.8 million, slightly
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higher compared to$591.3 million for theprior year quarter.
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Non-compensation expenses for the current year quarter
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Reworded paragraphs (165)
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underwriting and Debt underwriting totaling$725.7 million
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underwriting and Debt underwriting totaling$785.6 million
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the net returns on our investments in our Jefferies Finance and
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investments in our Jefferies Finance and Berkadia joint
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Berkadia joint ventures and net gains or losses on investments.
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ventures and net gains or losses on investments, and the prior
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compensation expenses for the current year quarter includes
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year quarter includes Foursight operating revenues as well as
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stronger results across several of our equities business lines.
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volumes driving stronger results across several of our equities
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•Asset management net revenues were$191.7 million
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•Asset management net revenues were$154.6 million
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Weiss. In addition, Non-compensation expenses for the prior year
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held for sale. In addition, Non-compensation expenses for the
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quarter include Foursight activity. Non-compensation expenses
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prior year quarter include Foursight activity up through the sale
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include Foursight activity. Non-compensation expenses as a
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in April 2024. Non-compensation expenses as a percentage of
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meaningful decline in investment return generated by our Asset
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business offset by a meaningful decline in investment return
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Management business and a decline in the performance in our
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generated by our Asset Management business and a decline in
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was offset by a slowdown in equity underwriting activity, as
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in debt underwriting were offset by a slowdown in equity
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includes$16.3 million in charitable donations, including
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year also includes$16.3 million in charitable donations,
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$9.6 million to support Los Angeles wildfire relief efforts, as
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including$9.6 million to support Los Angeles wildfire relief
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expenses for the prior year quarter include bad debt expenses
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expenses for the prior year period include bad debt expenses
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of$27.0 million largely related to our losses associated with
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of$26.2 million largely related to our losses associated with
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addition, Non-compensation expenses for the prior year quarter
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addition, non-compensation expenses for the prior year period
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At February 28, 2025, we had 7,701 employees globally across all
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•At May 31, 2025, we had 7,671 employees globally across all of
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of our consolidated subsidiaries within our Investment Banking
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our consolidated subsidiaries within our Investment Banking
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segments, a decrease of 121 employees from our headcount of
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segments, a decrease of 151 employees from our headcount
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7,822 at November 30,2024. Included within our global
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of 7,822 at November 30,2024. Included within our global
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compared to$338.5 million for theprior year quarter, driven by
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$283.9 million for the prior year quarter, driven by market share
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year quarter. Other investment banking net revenues include
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year quarter. Other investment banking net revenues for the prior
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events. Backlog snapshots are subject to limitations as the time
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U.S. policy and geopolitical events. Backlog snapshots are
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transactions varies and is influenced by factors we do not
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influenced by factors we do not control. Transactions not
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control. Transactions not included in the estimate may occur, and
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included in the estimate may occur, and expected transactions
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expected transactions may also be modified or cancelled.
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may also be modified or cancelled.
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year quarter and include mark-to-market net losses compared to
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period and include mark-to-market net losses compared to mark-
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mark-to-market net gains in the prior year quarter. Performance
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to-market net gains in the prior year period. Performance from
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from our strategic Berkadia joint venture modestly increased
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our strategic Berkadia joint venture modestly increased while
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while performance from our strategic Jefferies Finance joint
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performance from our strategic Jefferies Finance joint venture
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venture was lower than the prior year comparable period. Other
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was lower than the prior year period. Other investment banking
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$371.8 million for theprior year quarter, as stronger results in our
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$794.7 million for theprior year period, as stronger results in our
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prime services business significantly increased over the prior
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businesses significantly increased over the prior year period.
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and equity options businesses were also strong. These increases
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businesses were also strong. These increases were partially
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were partially offset by lower revenues from our traditional U.S.
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offset by lower revenues from our U.S. equity cash business.
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of a challenging market in the current year compared to higher
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of a challenging market in the current quarter due to lower global
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result of a challenging market in the current year compared to
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a challenging market in the current year due to lower global
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by us and our affiliated asset managers; and
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by us and our affiliated asset managers;
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Other investments net revenues were$125.9 million, up 13%
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Other investments net revenues were$102.6 million, down 16%
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$48.8 million for the prior year quarter. Other investment
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banking net revenues include the net returns on our
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•Earnings from continuing operations before income taxes were
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•Investment banking net revenues from Advisory, Equity
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underwriting and Debt underwriting totaling$1.51 billion were
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banking net revenues include the net returns on our
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investments in our Jefferies Finance and Berkadia joint
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ventures and net gains or losses on investments, and the prior
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•Asset management net revenues were$346.3 million
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efforts, as well as a$5.7 million land donation by HomeFed,
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from$454.7 million for the prior year quarter, driven by lower
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quarter and include mark-to-market net losses on certain
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investment positions. Performance from our strategic Berkadia
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strategic Jefferies Finance joint venture was lower than the prior
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subject to limitations as the time frame for the realization of
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1,922 employees at May 31, 2025 and 2,063 employees at
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year period includes$16.3 million in charitable donations,
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including$9.6 million to support Los Angeles wildfire relief
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bad debt expenses of$26.2 million largely related to our losses
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The provision for income taxes on continuing operations was
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Note 2, Summary of Significant Accounting Policies in our
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respectively, than total assets at May 31, 2025.
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derivative contracts, partially offset by a decrease in U.S.
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government and agency securities. Financial instruments sold,
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At May 31, 2025 and November 30, 2024, we had 565,000,000
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14,099,321 share-based awards that do not require the holder to
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monitor the impact on our business.
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Banking and Capital Markets and Asset Management
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Tessellis, HomeFed and M Science subsidiaries.
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investment banking net revenues for the prior year quarter also
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frame for the realization of revenues from these expected
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of strategies, particularly those with a long equity bias, and a
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significant portion of our compensation expense is highly
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support Los Angeles wildfire relief efforts, as well as a
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largely related to our losses associated with the shutdown of
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financial statements included in Part II, Item 8 of our Annual
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Report on Form 10-K for the year ended November 30, 2024.
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driven by increases in corporate debt and equity securities. Our
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billion at February 28, 2025 and November 30, 2024, respectively,
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securities, U.S. government and agency securities, and sovereign
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February 28, 2025, we had 13,950,457 share-based awards that
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exercise price of$22.69 per share.
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accounts for the exclusive benefit of customers.