Jefferies Financial Group Inc.
For the period ended Aug 31, 2025. Filed Oct 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.
Aug 31, 2025 · Filed Oct 9, 2025
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious 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 OperationsCurrent report: 10-Q
Period ended 2025-08-31; filed 2025-10-09.
0000096223-25-000014
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 1859 previous paragraphs and 1943 current paragraphs.
1423 unchanged; 213 reworded; 283 added; 200 removed; 23 previous and 24 current paragraphs rearranged.
Tables are not compared: 55 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 (283)
Current report
•Net revenues were$2.05 billion, up 21.6% compared to$1.68
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billion for the prior year quarter and Earnings from continuing
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compared to$252.7 million for the prior year quarter. This is
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Equities businesses, along with a meaningful improvement in
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business, partially offset by a decline in the performance of our
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Fixed Income business.
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prior year quarter largely associated with growth in business
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activity, particularly in Equities. While non-compensation
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expenses were higher for the period, our overall net revenues
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for the period grew even faster. Non-compensation expenses
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as a percentage of Net revenues was therefore 30.9%
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compared to 32.2% for the prior year quarter.
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up 17.4% compared to$925.6 million for the prior year quarter.
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Advisory had its best quarter ever with net revenuesup 10.7%,
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driven by an increase in the average fee per deal earned by us
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from mergers and acquisitions advisory services. Total
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underwriting net revenues wereup 29.3% as market conditions
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for equity and debt underwriting improved. Other investment
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banking net revenues were$49.0 million, compared to
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•Equities net revenues were$486.7 million, up 25.7% compared
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to$387.3 million for the prior year quarter, primarily due to
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increased global trading volumes, growth in prime brokerage
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and corporate derivatives activity and strong results across
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•Fixed income net revenues were$236.7 million, down 18.2%
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compared to$289.2 million for the prior year quarter as activity
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levels continued to be slow for the asset classes where we are
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most active.
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compared to$59.0 million for the prior year quarter. Asset
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management fees and revenues modestly increased driven by
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current quarter. Investment return net revenues meaningfully
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of strategies.
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•Compensation and benefits expenses were$1.08 billion, an
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increase of 21.9%, compared to$889.1 million for the prior
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percentage of Net revenues was essentially flat compared to
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the prior year quarter percentage.
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•Non-compensation expenses were$632.1 million,16.7% higher
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compared to$541.8 million for the prior year quarter and
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versus a 21.6% increase in net revenues. Non-compensation
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volumes, and increased technology and communication and
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business development expenses.
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Removed paragraphs (200)
Previous 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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wereup 6.4% compared to$738.6 million for the prior year
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quarter. Advisory net revenues wereup 61.3%, primarily
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underwriting net revenues were down 28% as debt underwriting
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remained flat and equity underwriting declined, consistent with
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an overall industry slowdown attributable to significant
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uncertainty related to U.S. policy and geopolitical events which
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meaningfully slowed activity levels. Other investment banking
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net revenues were$(19.3) million, compared to net revenues of
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year quarter includes Foursight operating revenues as well as
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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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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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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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losses on certain investment positions.
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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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year quarter.
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compared to$566.7 million for the prior year quarter. Non-
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brokerage and clearing fees other transactional costs (included
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trading volumes. Additionally, non-compensation expenses
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increased due to higher business development, technology and
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communication expenses and a write-down on certain assets
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prior year quarter include Foursight activity up through the sale
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Net revenues was 39.4% compared to 34.2% for the prior year
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quarter.
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•Net revenues were$3.23 billion, down 4.9% compared to$3.39
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billion for the prior year period, as market uncertainty related to
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U.S. policy and geopolitical events reduced activity levels for
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certain of our businesses during the current year.
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•Earnings from continuing operations before income taxes were
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operations before income taxes were$331.8 million, up 31.3%
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prior year period. Our results reflect solid performance in our
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reflective of solid performance in our Investment Banking and
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generated by our Asset Management business and a decline in
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investment returns generated by our Asset Management
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underwriting and Debt underwriting totaling$1.51 billion were
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underwriting and Debt underwriting totaling$1.09 billion were
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$48.8 million for the prior year quarter. Other investment
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$17.9 million for the prior year quarter. Other investment
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ventures and net gains or losses on investments, and the prior
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ventures and net gains or losses on investments.
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of our equities business lines.
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most of our equities business lines.
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•Asset management net revenues were$154.6 million
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•Asset management net revenues were$176.9 million
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performance fees realized during the period offset by a
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higher management and performance fees realized during the
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Investment return increased due to improved returns generated
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increased due to improved returns generated across a number
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quarter. Compensation and benefits expense as a percentage
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year quarter. Compensation and benefits expense as a
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compensation expenses were higher primarily due to increased
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expenses were higher primarily due to increased brokerage and
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associated with increased global equities trading volumes and
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clearing fees associated with increased global equities trading
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underwriting and Debt underwriting totaling$785.6 million
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underwriting and Debt underwriting totaling$2.60 billion were
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$283.9 million for the prior year quarter, driven by market share
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Advisory net revenues wereup 24.4% driven by market share
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and acquisitions activity levels across most sectors. Total
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levels across most sectors. Total underwriting net revenues
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$794.7 million for theprior year period, as stronger results in our
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were down 3.6% as stronger results in debt underwriting were
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underwriting activity, consistent with the overall industry
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offset by lower equity underwriting activity, consistent with the
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policy and geopolitical events. Other investment banking net
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events. Other investment banking net revenues were$4.8
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was lower than the prior year period. Other investment banking
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prior year period. Other investment banking net revenues
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banking net revenues include the net returns on our
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include the net returns on our investments in our Jefferies
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ventures and net gains or losses on investments, and the prior
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Finance and Berkadia joint ventures and net gains or losses on
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revenues as well as the gain on the sale of Foursight in April
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operating revenues as well as the gain on the sale of Foursight
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to$794.7 million for theprior year period, attributable to
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$1.18 billion for theprior year period, attributable to market
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attributable to market share gains and increased global trading
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share gains and increased global trading volumes driving
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volumes driving stronger results across several of our equities
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stronger results across most of our equities business lines.
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lower global activity levels and volatility in credit spreads
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global activity levels and volatility in credit spreads for the first-
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•Asset management net revenues were$346.3 million
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•Asset management net revenues were$523.2 million
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management fees and revenues were modestly higher and
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Investment return net revenues were modestly higher.
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increase in non-compensation expenses was primarily due to
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compensation expenses was primarily due to increased
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in other expenses) associated with increased global equities
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brokerage and clearing fees associated with increased global
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higher technology and communication expenses. The current
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and technology and communication expenses. The current
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year also includes$16.3 million in charitable donations,
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year also includes approximately$17.0 million in charitable
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including$9.6 million to support Los Angeles wildfire relief
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donations, including$9.6 million to support Los Angeles
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efforts, as well as a$5.7 million land donation by HomeFed,
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wildfire relief efforts, as well as a$5.7 million land donation by
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and a write-down on certain assets held for sale. Other
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HomeFed, and a write-down on certain assets held for sale.
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expenses for the prior year period include bad debt expenses
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Other expenses for the prior year period include bad debt
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of$26.2 million largely related to our losses associated with
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expenses of$26.2 million largely related to the shutdown of
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the shutdown of Weiss Multi-Strategy Advisers (“Weiss”). In
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Weiss Multi-Strategy Advisers (“Weiss”). In addition, non-
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held for sale. In addition, Non-compensation expenses for the
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compensation expenses for the prior year period include
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operations before income taxes declined 11.8% to
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gains and an increase in mergers and acquisitions activity
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investments, and the prior year period includes Foursight
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higher performance fees realized during the current year.
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Banking and Capital Markets and Asset Management
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1,907 employees at August 31, 2024 of our Stratos, Tessellis,
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also includes mark-to-market net losses on certain investment
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reflecting higher management and performance fees on funds
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revenues was 52.9% and 52.7% for the current quarter and
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Non-compensation expenses as a percentage of Net revenues
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primarily driven by the resolution of certain state and local tax
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Notes as the note matures on June 19, 2026. The amounts at August 31, 2025
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B-1 Non-Voting Convertible Preferred Shares with a par value of
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Series B Preferred Stock upon dissolution, liquidation or winding
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up of Jefferies Financial Group Inc. Each share of Series B-1
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Preferred Stock is automatically convertible into 500 shares of
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stock exists, subject to certain anti-dilution adjustments. The
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and distributions alongside our voting common stock on an as-
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Additionally, on September 19, 2025, we entered into an amended
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exchange shares of our voting common stock for shares of the
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Series B-1 Preferred Stock at a rate of 500 shares of voting
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common stock for one share of Series B-1 Preferred Stock. The
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Amended and Restated Exchange Agreement is limited to 17,500
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accounts for the exclusive benefit of customers.
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attributable to market share gains and an increase in mergers
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the gain on the sale of Foursight in April 2024.
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across a number of fund strategies, partially offset by net
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•Earnings from continuing operations before income taxes were
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$98.7 million for theprior year period. Other investment
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investments in our Jefferies Finance and Berkadia joint
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year period includes Foursight operating revenues as well as
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the gain on the sale of Foursight in April 2024.
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lower global activity levels and volatility in credit spreads
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addition, non-compensation expenses for the prior year period
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year quarter. Other investment banking net revenues for the prior
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gain on the sale of Foursight in April 2024.
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market share gains and an increase in mergers and acquisition
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offset by lower revenues from our U.S. equity cash business.
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a challenging market in the current year due to lower global
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generated across a number of fund strategies.
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period compared to net gains in the prior year period, partially
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November 30,2024. Included within our global headcount are
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November 30,2024 of our Stratos, Tessellis, HomeFed, and M
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debt expenses and a write-down on certain assets held for
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year period includes activity from Foursight, which was sold in
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Note 2, Summary of Significant Accounting Policies in our
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The amounts at May 31, 2025 and November 30, 2024 also exclude