Jefferies Financial Group Inc

Overview

N/M — Not Meaningful

Executive Summary

Consolidated Results

•Net revenues were$7.03 billion for 2024, up 49.7% compared

to$4.70 billion for 2023, reflecting strength across all lines of

business primarily due to market share gains and a stronger

overall market for our services.

•Earnings from continuing operations before income taxes were

$1.01 billion for 2024, up 183.8% compared to$354.3 million

for 2023.

•Our overall results were strong for 2024, driven by strength and

continued momentum in Investment Banking and Equities.

•Net earnings from discontinued operations (including gain on

disposal), net of income taxes were$3.7 million and reflects

the current year results of OpNet offset by a gain on the sale of

OpNet, which closed in August 2024.

Business Results

•Investment banking net revenues were$3.44 billion for 2024,

up 51.6% compared to$2.27 billion for 2023. Advisory net

revenues were$1.81 billion, up 51.1% compared to$1.20

billion for 2023, primarily attributable to market share gains

and increased overall market opportunity. Total underwriting

net revenues were$1.49 billion for 2024, up 53.4% compared

to$970.5 million for 2023, due to increased equity and debt

underwriting activity as a result of a more robust equity and

general capital markets environment.

•Equities net revenues were$1.59 billion for 2024, up 39.8%

compared to$1.14 billion for 2023, attributable to market

share gains, increased volumes and more favorable trading

opportunities driving stronger results across most of our

equities business lines

•Fixed income net revenues were$1.17 billion, up 6.8%

compared to$1.09 billion for 2023, driven by stronger results

from our distressed trading and securitized markets

businesses, partially offset by reduced activity in our global

structured solutions business and less favorable results across

ouremerging markets, credit e-trading, corporates, and

municipal securities businesses, which were particularly strong

in the prior fiscal year.

•Asset management net revenues were$803.7 million for 2024,

compared to$188.3 million for 2023. Investment return for

2024 were higher on improved performance across a number

of our investment strategies, partially offset by$36.2 million of

revenue losses associated with our investment in Weiss. Other

investments net revenues for the current year were

meaningfully higher than the prior year largely due to the

inclusion of Stratos and Tessellis in our overall results as these

entities became consolidated subsidiaries in the fourth quarter

of 2023.

Non-interest Expenses

•Compensation and benefits expense was$3.66 billion for

2024, an increase of$1.12 billion, or 44.3%, compared to$2.54

billion for 2023. Compensation and benefits expense as a

percentage of Net revenues was 52.0% for 2024, compared to

53.9% for 2023. The ratio for 2024 was impacted by the

consolidation of Stratos and Tessellis, which have lower

compensation ratios.

•Non-compensation expenses were$2.37 billion for 2024, an

increase of$558.8 million, or 30.9%, compared to$1.81 billion

for 2023. The increase in non-compensation expenses is

primarily attributed to increased brokerage and clearing fees

associated with increased trading volumes and higher

technology and communication and business development

expenses. Other expenses include bad debt expenses largely

related to our losses associated with Weiss Strategy Advisers

upon its shutdown in the first quarter of 2024. In addition, Non-

compensation expenses were higher due to the inclusion of

Stratos and Tessellis as operating subsidiaries, particularly

impacting depreciation and amortization expense, following

the consolidation of these entities in the fourth quarter of 2023,

partially offset by the impact of the spin-off of Vitesse Energy

in January 2023 and sale of Foursight in April 2024. The

increased cost of sales for 2024 reflects increased sales

activity within our HomeFed real estate subsidiary. Non-

compensation expenses as a percentage of Net revenues

improved from 38.5% in 2023 to 33.7% in 2024 as our revenue

growth outpaced expense growth. The ratio includes our Other

investments portfolio, which have higher non-compensation

expense ratios.

Headcount

•At November 30, 2024, we had 7,822 employees globally

across all of our consolidated subsidiaries within our

Investment Banking and Capital Markets and Asset

Management reportable segments, an increase of 258

employees from our headcount of 7,564 at November 30,2023.

Included within our global headcount are 2,063 employees of

our Stratos, Tessellis, HomeFed and M Science subsidiaries.

During the past year, we have increased the number of our

Investment Banking Managing Directors and related staff,

along with additional technology and corporate staff to support

our growth and strategic priorities.