Jefferies Financial Group (JEF) Q3 2025 Financial Results Summary
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Released on September 29, 2025, Jefferies Financial Group Inc. has reported its financial results for the third quarter of 2025. Below is a detailed summary of the key highlights and metrics from the report.
### Financial Overview
– **Net Earnings**:
– Q3 2025: **$223.99 million**
– Q3 2024: **$167.13 million**
– **Growth**: **33.9%**
– **Diluted Earnings Per Share (EPS)**:
– Q3 2025: **$1.01**
– Q3 2024: **$0.72**
– **Growth**: **40.3%**
– **Return on Adjusted Tangible Shareholders’ Equity**:
– Q3 2025: **13.6%**
– Q3 2024: **10.3%**
– **Growth**: **31.3%**
– **Total Net Revenues**:
– Q3 2025: **$2.05 billion**
– Q3 2024: **$1.68 billion**
– **Growth**: **21.7%**
– **Investment Banking Net Revenues**:
– Q3 2025: **$1.14 billion**
– Q3 2024: **$943.57 million**
– **Growth**: **20.8%**
– **Capital Markets Net Revenues**:
– Q3 2025: **$723.38 million**
– Q3 2024: **$676.53 million**
– **Growth**: **6.9%**
– **Asset Management Net Revenues**:
– Q3 2025: **$176.88 million**
– Q3 2024: **$59.01 million**
– **Growth**: **198.5%**
– **Pre-tax Earnings from Continuing Operations**:
– Q3 2025: **$331.82 million**
– Q3 2024: **$252.69 million**
– **Growth**: **31.3%**
– **Book Value Per Common Share**:
– Q3 2025: **$50.60**
– Q3 2024: **$48.89**
– **Growth**: **3.5%**
– **Adjusted Tangible Book Value Per Fully Diluted Share**:
– Q3 2025: **$33.38**
– Q3 2024: **$31.87**
– **Growth**: **4.7%**
### Dividends and Share Repurchase
– **Quarterly Cash Dividend**:
– Declared at **$0.40** per common share, payable on **November 26, 2025**.
– **Share Repurchase Activity**:
– Repurchased **0.7 million shares** of common stock for **$58 million** at an average price of **$79.58** per share in connection with net-share settlements related to equity compensation plans.
### Key Highlights
– **Net Revenues Composition**:
– Investment Banking generated **$1.14 billion** on advisory and underwriting services, reflecting a **17%** growth compared to the previous year.
– Equities generated **$486.70 million**, representing an **incremental increase** attributed to improved global volumes.
– Fixed Income suffered a decline due to reduced activity levels in light of tighter credit conditions.
– **Market Position and Outlook**:
– Management noted a rebound in global market sentiment contributing to strong performance, particularly in Investment Banking and Equities.
– Investment Banking’s advisory business had its best quarter, buoyed by a rise in deal values and improved market conditions for M&A activity.
– **Tax Rate**:
– Effective tax rate fell to **26.9%** in Q3 2025 from **30.9%** in Q3 2024, primarily due to the resolution of state and local tax matters.
### Non-Interest Expenses
– **Total Non-Interest Expenses** were **$1.72 billion** for Q3 2025, compared to **$1.43 billion** in Q3 2024, marking a **20.1% increase**.
– **Compensation Ratio** was **52.9%** in Q3 2025, slightly up from **52.8%** in the prior year.
– **Non-compensation Expenses Ratio** fell to **30.9%**, down from **32.2%**, indicating more efficient management of operating costs.
### Conclusion
Jefferies Financial Group’s Q3 2025 financial results reflect robust growth across key operational segments. Strong net revenues driven by a surge in investment banking activity alongside controlled expenses have contributed to a significant increase in both net earnings and return on equity for the firm. The declaration of a quarterly dividend and ongoing share repurchase signify a commitment to returning value to shareholders.
# Consolidated Statements of Earnings (Unaudited)
*Amount in thousands*
| Revenues | Three Months Ended | Nine Months Ended | ||
|---|---|---|---|---|
| August 31, 2025 | August 31, 2024 | August 31, 2025 | August 31, 2024 | |
| Investment banking | $1,088,197 | $927,094 | $2,606,976 | $2,344,743 |
| Principal transactions | $486,893 | $324,501 | $1,232,630 | $1,381,432 |
| Commissions and other fees | $325,178 | $270,643 | $966,711 | $787,968 |
| Asset management fees and revenues | $13,079 | $11,986 | $118,563 | $74,126 |
| Interest | $846,894 | $936,786 | $2,570,090 | $2,636,002 |
| Other | $147,433 | $124,579 | $379,883 | $439,556 |
| Total revenues | $2,907,674 | $2,595,589 | $7,874,853 | $7,663,827 |
| Interest expense | $860,242 | $912,037 | $2,599,955 | $2,585,627 |
| Net revenues | $2,047,432 | $1,683,552 | $5,274,898 | $5,078,200 |
| Non-interest expenses | ||||
| Compensation and benefits | $1,083,510 | $889,098 | $2,779,476 | $2,677,962 |
| Brokerage and clearing fees | $121,164 | $101,119 | $360,345 | $321,325 |
| Underwriting costs | $20,332 | $14,017 | $52,703 | $51,053 |
| Technology and communications | $157,171 | $136,953 | $442,844 | $409,703 |
| Occupancy and equipment rental | $32,908 | $30,078 | $93,818 | $87,558 |
| Business development | $78,999 | $68,152 | $231,360 | $194,433 |
| Professional services | $73,329 | $64,630 | $223,563 | $217,967 |
| Depreciation and amortization | $53,230 | $45,977 | $136,471 | $139,125 |
| Cost of sales | $34,430 | $37,400 | $118,959 | $109,533 |
| Other expenses | $60,544 | $43,441 | $217,578 | $168,858 |
| Total non-interest expenses | $1,715,617 | $1,430,865 | $4,657,117 | $4,377,517 |
| Earnings from continuing operations | $331,815 | $252,687 | $617,781 | $700,683 |
| Income tax expense | $89,311 | $78,011 | $147,033 | $207,077 |
| Net earnings from continuing operations | $242,504 | $174,676 | $470,748 | $493,606 |
| Net earnings (losses) from discontinued operations | — | $6,363 | — | -1,488 |
| Net earnings | $242,504 | $181,039 | $470,748 | $492,118 |
| Net losses attributable to noncontrolling interests | -10,041 | -6,874 | -24,692 | -19,102 |
| Preferred stock dividends | $28,559 | $20,785 | $55,528 | $48,501 |
| Net earnings attributable to common shareholders | $223,986 | $167,128 | $439,912 | $462,719 |
# Condensed Consolidated Balance Sheets
*Amount in millions*
| August 31, 2025 | May 31, 2025 | August 31, 2024 | |
|---|---|---|---|
| Total assets | $69,320 | $67,285 | $63,275 |
| Cash and cash equivalents | $11,458 | $11,260 | $10,573 |
| Financial instruments owned | $26,117 | $25,570 | $24,039 |
| Level 3 financial instruments owned | $803 | $763 | $693 |
| Goodwill and intangible assets, net | $2,052 | $2,060 | $2,073 |
| Total equity | $10,501 | $10,382 | $10,115 |
| Total shareholders’ equity | $10,439 | $10,305 | $10,046 |
| Tangible shareholders’ equity | $8,387 | $8,245 | $7,973 |
| Other data and financial ratios: | |||
| Leverage ratio | 6.6 | 6.5 | 6.3 |
| Tangible gross leverage ratio | 8.0 | 7.9 | 7.7 |
| Number of employees at period end | 7,866 | 7,671 | 7,624 |
| Number of employees excluding Tessellis | 6,206 | 5,949 | 5,926 |
| and Stratos at period end |