Jefferies Financial Group Inc.

We present our results as two reportable business segments:

Investment Banking and Capital Markets and Asset Management.

Additionally, corporate activities are fully allocated to each of

these reportable business segments.

Net revenues presented for our Investment Banking and Capital

Markets reportable segment include allocations of interest

income and interest expense as we assess the profitability of

these businesses inclusive of these costs, including the net

interest cost of allocated short- and long-term debt, which is a

function of the mix of each business’s associated assets and

liabilities and the related funding costs.

Debt valuation adjustments on derivative contracts, gains and

losses on investments held in deferred compensation plans,

foreign currency transaction gains or losses or certain other

corporate income items are not considered by management in

assessing the financial performance of our operating businesses

and are, therefore, not reported as part of our business segment

results.

(1)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.

(2)Allocated net interest represents an allocation to Asset Management 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 make clearer actual

Investment return. We believe that aggregating Investment return and

Allocated net interest would obscure the Investment return by including an

amount that is unique to our credit spreads, debt maturity profile, capital

structure, liquidity risks and allocation methods.

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.

Investment Banking Revenues

Investment banking is composed of revenues from:

•advisory services with respect to mergers and acquisitions,

debt financing, restructurings and private capital transactions;

•underwriting services, which include debt underwriting and

placement services related to investment grade debt, high yield

bonds, leveraged loans, emerging market debt, global

structured notes, municipal debt, mortgage-backed and asset-

backed securities; equity underwriting and placement services

related to equity offerings, preferred stock, and equity-linked

securities; and loan syndication;

•our 50% share of net earnings from our Jefferies Finance joint

venture;

•our 45% share of net earnings from our commercial real estate

joint venture, Berkadia (which includes commercial mortgage

origination and servicing) as well as investment sales;

•Foursight, our wholly-owned subsidiary engaged in the lending

and servicing of automobile loans (until the sale in April 2024);

•securities and loans received or acquired in connection with

our investment banking activities; and

•certain revenue-sharing agreements with SMBC primarily

associated with investment banking transactions.

Investment banking net revenues were$3.79 billion, up 10.0%

compared to$3.44 billion for the prior year period.

Advisory net revenues of$2.15 billion reflect a record year, an

increase of 18.4% compared to$1.81 billion for the prior year

period, driven by market share gains and increased overall

market opportunity.

Total underwriting net revenues were$1.64 billion, up 10.3%

compared to$1.49 billion for the prior year period. Solid net

revenues in Debt underwriting were driven by an increase in

mergers and acquisition activity across most sectors and

collateralized loan origination activity. Equity underwriting net

revenues declined due to reduced transaction activity across

most sectors, reflecting a broad industry slowdown in the first-

half of 2025. However, by June, market conditions began to

strengthen and transaction volumes accelerated as economic

and market clarity improved. Over 40% of our annual Equity

underwriting net revenues were generated in the fourth quarter of

Other investment banking net revenues were$3.0 million,

compared to net revenues of$144.1 million for the prior year

period. A significant portion of the decrease is attributable to the

prior year’s inclusion of Foursight’s operating revenues as well as

the gain on the sale of Foursight in April 2024. The current year

also includes mark-to-market net losses on certain investment

positions compared to mark-to-market net gains in the prior year

period. Additionally, performance of our Berkadia joint venture

increased while performance of our Jefferies Finance joint

venture was lower than the prior year period.

Our investment banking momentum and backlog remains strong,

continuing the trend we saw during the second half of 2025,

although the extent and timing of its realization is always subject

to change. Backlog snapshots are subject to limitations as the

time frame for the realization of revenues from these expected

transactions varies and is influenced by factors we do not

control. Transactions not included in the estimate may occur, and

expected transactions may be modified or cancelled.

Equities Net Revenues

Equities is composed of net revenues from:

•services provided to our clients from which we earn

commissions or spread revenue by executing, settling and

clearing transactions for clients;

•advisory services offered to clients;

•financing, securities lending and other prime brokerage

services offered to clients, including capital introductions and

outsourced trading;

•corporate equity derivative transactions; and

•wealth management services.

Equities net revenues were a record$1.91 billion, up 19.8%

compared to$1.59 billion for the prior year period, as market

share gains and overall strong client activity drove stronger

results in our prime services, global electronic trading, Europe

and Asia equity cash, equity options and corporate derivatives

businesses, many of which have been key areas of focus and

investment in prior years. These increases were partially offset by

lower revenues from our U.S. equity cash business.

Fixed Income Net Revenues

Fixed income is composed of net revenues from:

•executing transactions for clients and making markets in

securitized products, investment grade, high-yield, distressed,

emerging markets, municipal, sovereign and emerging markets

securities and loans;

•customized products and corporate hedging and foreign

currency solutions through derivative products; and

•financing and other structuring services.

Fixed income net revenues were$909.9 million, down 22.0%

compared to$1.17 billion for the prior year period, as a result of

lower global activity levels and volatility in credit spreads for the

first-half of 2025 meaningfully impacting the overall trading

environment. Strong results from our global structured solutions

business were offset by lower results in our distressed trading,

municipals, emerging markets, corporates and rates businesses.

Asset Management

We operate a diversified alternative asset management platform

through our Leucadia Asset Management division that provides

institutional clients with a broad range of investment strategies,

both directly and through our strategic affiliated asset managers.

Certain affiliated managers also benefit from access to our

global marketing and distribution platform, as well as operational

infrastructure and support. Our asset management business

makes seed and additional strategic investments directly in

alternative asset management separately managed accounts and

co-mingled funds where we act as the asset manager or in

affiliated asset managers where we have strategic relationships

and participate in the revenues or profits of the affiliated

manager.

Asset management fees and revenues primarily consist of:

•Management and performance fees from funds and accounts

managed by us;

•Placement and distribution fees for raising capital from

investors; and

•Revenue from strategic affiliated asset managers where we are

entitled to portions of their operating revenues and income

based on our ownership interests in the affiliates.

Fees and revenues are generally tied to the value of assets under

management and the performance of those assets.

Performance-based fees are earned when returns exceed

specified benchmarks or performance targets and are typically

recognized annually generally in our first quarter, once they

become fixed and determinable and are not subject to significant

reversal.

We also generate an investment return from capital invested in

our managed funds and in funds managed by our affiliated asset

managers. Additionally, we earn revenues from other

investments, including our portfolio of real estate development

activities, foreign exchange trading, and telecommunications

operations.

(1)Amounts include our share of fees received by affiliated asset management

companies with which we have revenue and profit share arrangements, as

well as earnings on our ownership interest in affiliated asset managers.

Asset management fees and revenues were$140.9 million, up

36.2% compared to$103.5 million for the prior year period,

primarily reflecting higher performance fees on funds managed

by us and through our strategic affiliates.

Investment return was$177.8 million, down 16.2% compared to

$212.2 million for the prior year period, primarily driven by a pre-

tax loss of $30.0 million related to our investment in Point Bonita.

Other investments net revenues were$467.5 million, down 15.0%

compared to$550.1 million for the prior year period, as

performance from Stratos and HomeFedwas lower than the prior

year period, as well as net losses recognized on certain

investments in the current year period compared to net gains in

the prior year period.

Assets Under Management

Assets under management (“AUM”) represents the assets we

manage or are managed by our affiliated asset managers with

whom we have revenue sharing arrangements. AUM primarily

refers to the basis of assets from which we are entitled to earn

fees and revenues though the measure also includes funds and

separately managed accounts for which we do not charge fees.

AUM includes:

•the net asset value of a fund or separately managed account

managed by us or our affiliated managers and may include an

agreed target AUM utilizing leverage;

•unfunded capital commitments to a fund; and

•the fair value of any invested capital in our consolidated funds

or separately managed accounts.

Net asset value generally refers to the fair value the assets less

the liabilities of a fund or account.

Assets under management:

(1)Revenues related to the investments made by us are presented in Investment

return within the results of our asset management businesses.

(2)We earn asset management fees as a result of the third-party investments,

which are presented in Asset management fees and revenues within the

results of our asset management business.

(3)Revenues from our share of fees received by affiliated asset managers are

presented in Revenue from strategic affiliates within the results of our asset

management business. November 30, 2024 includes an adjustment of

$3.02 billion.

Our definition of assets under management may differ from the

calculations of other asset managers; and as a result, this

measure may not be comparable to similar measures presented

by other asset managers. Our definition of AUM may differ from

that referenced in any of our investment management

agreements, differs from the manner in which “Regulatory Assets

Under Management” is reported to the SEC on Form ADV, and

includes assets for which we do not act as an asset manager.

In addition to our investments directly in Jefferies’ and our

strategic affiliates funds and separately managed accounts, we

have capital invested in other equity method investees as part of

our asset management business of$174.0 million and

$81.0 million at November 30, 2025 and November 30, 2024,

Other

Other revenues include foreign currency transaction gains or

losses, debt valuation adjustments on derivative contracts, gains

and losses on investments held in deferred compensation plans

or certain other corporate income items that are not attributed to

business segments as management does not consider such

amounts in assessing the financial performance of our operating

businesses.