Jefferies Financial Group Inc.
For the period ended Feb 28, 2026. Filed Apr 7, 2026.
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.
Feb 28, 2026 · Filed Apr 7, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious 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 OperationsCurrent report: 10-Q
Period ended 2026-02-28; filed 2026-04-07.
0000096223-26-000017
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 1943 previous paragraphs and 1721 current paragraphs.
1203 unchanged; 240 reworded; 266 added; 471 removed; 29 previous and 12 current paragraphs rearranged.
Tables are not compared: 55 previous and 49 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 (266)
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Item 2. Management’s Discussion and Analysis of Financial
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Forward-Looking Statements
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Net earnings attributable to common shareholders were
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$155.7 million and$127.8 million for thethree months ended
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February 28, 2026 and 2025, respectively.
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Our effective tax rate was 24.9%, and 9.4% for thethree months
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ended February 28, 2026 and 2025, respectively.
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segments, compared to 7,787 at November 30, 2025. Included
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within our global headcount are 1,578 employees at February 28,
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linked securities; and loan syndication;
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venture;
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origination and servicing as well as investment sales;
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Investment banking net revenues were$1.02 billion, up 45.2%
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Advisory net revenues of$527.1 million wereup 32.5% compared
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to$397.8 million for the prior year quarter, partially driven by
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increased deal volumes across several sectors.
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Total underwriting net revenues were$487.8 million, up 48.8%
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from$327.9 million for the prior year quarter, primarily driven by
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market share gains and increased activity in Equity underwriting
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across a range of sectors. Debt underwriting remained solid but
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decreased compared to the prior year quarter.
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Other investment banking net revenues were$2.3 million,
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compared to net revenues of$(25.0) million for the prior year
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investment positions for the current quarter. Performance from
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our Jefferies Finance joint venture improved and performance
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from our Berkadia joint venture modestly increased from the prior
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year quarter.
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Equities net revenues were$558.5 million, up 36.5% from
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$409.1 million for the prior year quarter, marking our strongest
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first quarter on record, due to market share gains and higher
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global trading volumes driving stronger results, particularly within
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trading businesses. Our prime services, and Europe and U.S.
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Fixed income net revenues were$220.3 million, down 23.8%
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markets remained challenging in the current quarter for the
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Strong performance in our municipal securities and emerging
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markets businesses was more than offset by lower results from
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our securitized products business, which includes a gross mark-
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to-market loss of $42.8 million associated with Market Financial
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Solutions during the current quarter.
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that provides institutional clients with a broad range of
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Consolidated Results
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•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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operations before income taxes were$331.8 million, up 31.3%
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reflective of solid performance in our Investment Banking and
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Equities businesses, along with a meaningful improvement in
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investment returns generated by our Asset Management
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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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•Non-compensation expenses were higher compared to the
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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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Business Results
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•Investment banking net revenues from Advisory, Equity
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underwriting and Debt underwriting totaling$1.09 billion were
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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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$17.9 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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investments in our Jefferies Finance and Berkadia joint
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ventures and net gains or losses on investments.
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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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most of our equities business lines.
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•Fixed income net revenues were$236.7 million, down 18.2%
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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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•Asset management net revenues were$176.9 million
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compared to$59.0 million for the prior year quarter. Asset
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•the consolidated financial statements and notes to the
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•theconsolidated financial statements and notes to the
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At August 31, 2025, we had 7,866 employees globally across all
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At February 28, 2026, we had 7,596 employees globally across all
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1,907 employees at August 31, 2024 of our Stratos, Tessellis,
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2026 and 1,797 employees at November 30, 2025 of our Stratos,
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HomeFed and M Science subsidiaries.
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Tessellis, HomeFed and M Science subsidiaries.
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these businesses inclusive of the net interest revenue or expense
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these businesses inclusive of these costs, including the net
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structured notes, municipal debt, mortgage-backed and asset-
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structured notes, municipal debt and mortgage-backed and
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backed securities; equity underwriting and placement services
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asset-backed securities; equity underwriting and placement
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related to equity offerings, preferred stock, and equity-linked
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services related to equity offerings, preferred stock and equity-
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•our 50% share of net earnings from our corporate lending joint
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•our 50% share of net earnings from our Jefferies Finance joint
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$617.8 million, compared to$700.7 million for the prior year
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compared to$700.7 million for the prior year quarter.
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quarter and include mark-to-market net gains on certain
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quarter andinclude mark-to-market net gains on certain
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equity options, corporate derivatives and global electronic trading
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our equity options, corporate derivatives and global electronic
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businesses also produced strong results.
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equity cash businesses also produced strong results.
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compared to$289.2 million for the prior year quarter as activity
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compared to$289.2 million for the prior year quarter as credit
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services where we are most active, impacting the overall trading
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products and services where we are most active, impacting the
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environment and several of our businesses, including emerging
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overall trading environment and several of our businesses.
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directly and through our affiliated asset managers. We provide
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investment strategies, both directly and through our strategic
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certain of our affiliated asset managers access to our global
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benefit from access to our global marketing and distribution
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marketing and distribution platform, as well as operational
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platform, as well as operational infrastructure and support. Our
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Our asset management business makes seed and additional
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asset management business makes seed and additional
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•revenue from affiliated asset managers where we are entitled
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•Revenue from strategic affiliated asset managers where we are
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on our ownership interests in our affiliated asset managers;
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based on our ownership interests in the affiliates.
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of assets under management and the performance return of
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management and the performance of those assets.
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fixed and determinable and are not probable of being
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become fixed and determinable and are not subject to significant
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development activities, foreign exchange trading and
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activities, foreign exchange trading, and telecommunications
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(1)These amounts include our share of fees received by affiliated asset
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(1)Amounts include our share of fees received by affiliated asset management
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management companies with which we have revenue and profit share
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companies with which we have revenue and profit share arrangements, as
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arrangements, as well as earnings on our ownership interest in affiliated asset
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well as earnings on our ownership interest in affiliated asset managers.
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reflecting higher performance fees on funds managed by us and
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reflecting higher performance fees on funds managed through
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Other investments net revenues were$340.0 million and
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Other investments net revenues were$83.6 million, down 33.6%
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Jefferies Finance joint venture was lower than the prior year
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performance from Stratos and HomeFed was lower than the prior
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fee and revenues are calculated and the measure also includes
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fees and revenues though the measure also includes funds and
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funds and separately managed accounts for which we do not
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separately managed accounts for which we do not charge fees.
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separately managed accounts and the fair value of any invested
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•the fair value of any invested capital in our consolidated funds
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(3)We earn asset management fees as a result of the third-party investments,
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(2)We earn asset management fees as a result of the third-party investments,
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(2)Revenues from our share of fees received by affiliated asset managers are
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(3)Revenues from our share of fees received by affiliated asset managers are
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Our definition of assets under management is not based on any
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Our definition of assets under management may differ from the
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definition contained in any of our investment management
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that referenced in any of our investment management
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agreements and differs from the manner in which “Regulatory
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agreements, differs from the manner in which “Regulatory Assets
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Assets Under Management” is reported to the SEC on Form ADV.
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Under Management” is reported to the SEC on Form ADV, and
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$174.0 million at February 28, 2026 and November 30, 2025,
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At February 28, 2026, we had 7,596 employees globally across all
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and Capital Markets and Asset Management reportable
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Tessellis, HomeFed, and M Science subsidiaries.
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financial statements included in this Quarterly Report on Form
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qualitative factors are sensitive to management’s forecasts of
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Goodwill and Intangible Assets in our consolidated financial
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statements included in this Quarterly Report on Form 10-Q for
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connection with net-share tax withholding under our equity
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Jefferies GmbH, which is subject to the regulatory supervision of
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Securities purchased under agreements to resell.
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entities, including major Russian banks and individuals;
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increased due to improved returns generated across a number
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Compensation and benefits expense as a percentage of Net
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compensation expenses as a percentage of Net revenues was
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Banking and Capital Markets and Asset Management
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compared to$289.2 million for the prior year quarter as a result
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environment and several of our businesses, including distressed
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reflecting higher management and performance fees on funds
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managed by us and through our strategic affiliates.
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Compensation and benefits expense as a percentage of Net
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Non-compensation expenses as a percentage of Net revenues
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year period, respectively, and was impacted by the following:
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•Brokerage and clearing fees were higher by$39.0 million
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related to the continued development of various trading and
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management systems as well as higher data related costs.
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The provision for income taxes on continuing operations was
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August 31, 2025 and 2024, respectively, representing an effective
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primarily driven by the resolution of certain state and local tax
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14.5% to up to 20% (on an as-converted and fully diluted basis),
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consolidated financial statements included in this Quarterly
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did not indicate any goodwill impairment.
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stock awards under our equity compensation plans.
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at fair value, U.S. government and agency securities, and
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August 31, 2025. Our average month end balance of total repos
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exchanges and clearing organizations in the event of a credit
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At August 31, 2025 and November 30, 2024, we had 565,000,000
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an as-converted basis and 14.5% on a fully-diluted, as-converted
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SEA Rule 15c3-1 or CFTC Regulation 1.17. Accordingly, FINRA is
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in Russia. We continue to closely monitor the status of global
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have loans outstanding to certain of our officers and