Jefferies Financial Group Inc.

Condensed Statements of Financial Condition

Condensed Statements of Earnings and Comprehensive Income

Condensed Statements of Cash Flows

Parent Company’s cash, cash equivalents and restricted cash by category within the Condensed Statements of Financial Condition:

Notes to Condensed Financial Statements

Note 1. Introduction and Basis of Presentation

The accompanying condensed financial statements (the “Parent

Company Only Financial Statements”), including the notes

thereto, should be read in conjunction with the consolidated

financial statements of Jefferies Financial Group Inc. (the

“Company”) and the notes thereto found in the Company’s

Annual Report on Form 10-K for the year ended November 30,

2025. For purposes of these condensed financial statements, the

Company’s wholly-owned and majority owned subsidiaries are

accounted for using the equity method of accounting.

The Parent Company Only Financial Statements have been

prepared in accordance with U.S. generally accepted accounting

principles (“U.S. GAAP”) for financial information. The significant

accounting policies of the Parent Company Only Financial

Statements are those used by the Company on a consolidated

basis, to the extent applicable. For further information regarding

the significant accounting policies refer to Note 2, Summary of

Significant Accounting Policies in the Company’s consolidated

financial statements included in the Annual Report on Form 10-K

for the year ended November 30, 2025.

The Company has made a number of estimates and assumptions

relating to the reporting of assets and liabilities and the

disclosure of contingent assets and liabilities to prepare these

financial statements in conformity with U.S. GAAP. The most

important of these estimates and assumptions relate to fair value

measurements, compensation and benefits, goodwill and

intangible assets, the ability to realize deferred tax assets and the

recognition and measurement of uncertain tax positions.

Although these and other estimates and assumptions are based

on the best available information, actual results could be

materially different from these estimates.

Note 2. Transactions with Subsidiaries

The Parent Company has transactions with its consolidated

subsidiaries and certain other affiliated entities determined on an

agreed upon basis and has guaranteed certain unsecured lines of

credit and contractual obligations of certain equity method

Note 3. Guarantees

In the normal course of its business, the Company issues

guarantees in respect of obligations of certain of its wholly-

owned subsidiaries under trading and other financial

arrangements, including guarantees to various trading

counterparties and banks. The Company records all derivative

contracts and Financial instruments owned and Financial

instruments sold, not yet purchased at fair value in its

Consolidated Statements of Financial Condition.

Certain of the Company’s subsidiaries are members of various

exchanges and clearing houses. In the normal course of

business, the Company provides guarantees to securities

clearinghouses and exchanges. These guarantees generally are

required under the standard membership agreements, such that

members are required to guarantee the performance of other

members. Additionally, if a member becomes unable to satisfy its

obligations to the clearinghouse, other members would be

required to meet these shortfalls. To mitigate these performance

risks, the exchanges and clearinghouses often require members

to post collateral. The Company’s obligations under such

guarantees could exceed the collateral amounts posted. The

maximum potential liability under these arrangements cannot be

quantified; however, the potential for the Company to be required

to make payments under such guarantees is deemed remote.

Accordingly, no liability has been recognized for these

arrangements.

The Company guarantees certain financing arrangements of

subsidiaries. The maximum amount payable under these

guarantees is$2.65 billion at November 30, 2025. For further

information, refer to Note 17, Borrowings in the Company’s

consolidated financial statements included in the Annual Report

on Form 10-K for the year ended November 30, 2025.