Quarterly Record Investment Banking and Equities Net Revenues
NEW YORK, September 28, 2026–(BUSINESS WIRE)–Jefferies Financial Group Inc. (NYSE: JEF):
Q3 Financial Highlights
$ in thousands, except per share amounts
Quarter End
Year-to-Date
3Q26
3Q25
2026
2025
Net earnings attributable to common shareholders
$
260,578
$
223,986
$
639,666
$
439,912
Diluted earnings per voting common share
$
1.08
$
1.01
$
2.79
$
1.98
Return on adjusted tangible shareholders’ equity1
13.5
%
13.6
%
12.9
%
9.3
%
Total net revenues
$
2,221,934
$
2,047,432
$
6,445,515
$
5,274,898
Investment banking net revenues
$
1,331,423
$
1,135,325
$
3,555,536
$
2,602,324
Capital markets net revenues
$
802,178
$
723,382
$
2,380,226
$
2,125,821
Asset management net revenues
$
85,635
$
176,882
$
493,615
$
523,218
Pre-tax earnings
$
351,038
$
331,815
$
878,803
$
617,781
Book value per common share17
$
46.55
$
50.60
$
46.55
$
50.60
Adjusted tangible book value per fully diluted share3
$
35.21
$
33.38
$
35.21
$
33.38
Quarterly Cash Dividend and Stock Buyback Activity
The Jefferies Board of Directors declared a quarterly cash dividend equal to $0.40 per Jefferies common share, payable on November 25, 2026 to record holders of Jefferies common shares on November 16, 2026.
During the quarter, we repurchased 1.3 million shares of common stock for $70 million, or an average price of $52.34 per share. Year to date, we repurchased 8.3 million shares of common stock for $441 million, or an average price of $53.25 per share. Our Board of Directors has increased our share buyback authorization back to $250 million for future repurchases.
Management Comments
“Our third quarter net revenues were $2.22 billion, net earnings attributable to common shareholders were $261 million, diluted earnings per voting common share were $1.08 and return on adjusted tangible shareholders’ equity was 13.5%, reflecting record quarterly results in Investment Banking and Equities, offset by a more subdued market for Fixed Income and a more challenging backdrop for certain funds in our Asset Management business.
“We believe the results of our third quarter demonstrate the strength and momentum of our business and are a strong foundation on which we can continue to build in future periods. We are very optimistic about the trajectory of Jefferies and our ability to achieve meaningfully higher operating margins and earnings as we complete the sale of Tessellis and continue to wind down the remainder of our legacy merchant banking investments. We are keenly focused on improving the consistency and quality of our earnings.
“Our Investment Banking and Equities businesses continued to gain momentum in the third quarter, driving quarterly record net revenues in Advisory, total Investment Banking, Equities and combined Investment Banking and Capital Markets. These results demonstrate the strength and breadth of our business, as well as the benefits of our long-term investments, and reflect the trust our clients put in us and our ability to serve them globally.
Story Continues
“Investment Banking net revenues were $1.33 billion, up 17% from the prior year quarter, with Advisory delivering a record quarter, up 25% versus last year, and Equity Underwriting up 69%. Our results were driven by a strong market opportunity and continued market share gains. We continue to expand our M&A business, led by strong sponsor-led activity during the quarter particularly in the healthcare, industrials and energy sectors. We are very optimistic about the balance of 2026 and our momentum heading into 2027, supported by the breadth and strength of our current backlog and new business activity.
“Capital Markets net revenues were $802 million, up 11% from the prior year quarter. Equities record quarterly net revenues of $626 million, up 29% from the prior year quarter, were driven by global cash and electronic trading, as well as continued growth in prime services. Our prime services business continues to strengthen its global position as a trusted partner to leading, well-diversified hedge funds, which enhances the quality, consistency and durability of our Equities revenues. Our equity options and structured derivatives businesses also continue to expand in partnership with our investment banking business. Fixed Income net revenues were $176 million, down 26% from the prior year quarter, reflecting ongoing slowness in market activity.
“Asset management fees and investment return revenues were $34 million compared to the prior year quarter of $84 million, reflecting weaker performance across several fund strategies. We remain confident in the long-term outlook for the business as we continue to reposition the platform by reducing capital allocated to certain existing funds consistent with the strategy we outlined last fall when we announced our intent to acquire and fund a 50% interest in Hildene.
“We are also continuing to expand our strategic alliance with SMBC. As expected, SMBC has increased its equity ownership in Jefferies to approximately 20% to become our largest shareholder. In Japan, our planned joint venture with SMBC represents a significant opportunity to align SMBC and SMBC Nikko’s domestic market expertise and balance sheet strength with Jefferies’ global Equities platform, global client relationships and trading technology. Expected to begin serving clients in January 2027, the joint venture is intended to scale a leading wholesale equities and equity capital markets business in Japan. We expect this to become a template for other ways to work together globally with our partners at SMBC.”
Richard Handler, CEO, and Brian Friedman, President
Financial Summary (Unaudited)
$ in thousands
Three Months Ended
Nine Months Ended
August 31,
2026
May 31,
2026
August 31,
2025
August 31,
2026
August 31,
2025
Net revenues by source:
Advisory
$
817,823
$
674,118
$
655,578
$
2,019,069
$
1,511,218
Equity underwriting
305,549
370,691
181,205
982,209
432,091
Debt underwriting
177,072
160,186
249,525
519,116
654,250
Other investment banking
30,979
1,825
49,017
35,142
4,765
Total Investment Banking
1,331,423
1,206,820
1,135,325
3,555,536
2,602,324
Equities
626,154
600,751
486,695
1,785,393
1,421,997
Fixed income
176,024
198,541
236,687
594,833
703,824
Total Capital Markets
802,178
799,292
723,382
2,380,226
2,125,821
Total Investment Banking and Capital Markets Net revenues5
2,133,601
2,006,112
1,858,707
5,935,762
4,728,145
Asset management fees and revenues6
13,285
15,169
15,916
98,364
125,312
Investment return
20,949
31,037
68,026
140,978
112,796
Allocated net interest4
(21,438
)
(22,935
)
(18,550
)
(66,611
)
(54,915
)
Other investments, inclusive of net interest
72,839
164,447
111,490
320,884
340,025
Total Asset Management Net revenues
85,635
187,718
176,882
493,615
523,218
Other
2,698
12,621
11,843
16,138
23,535
Total Net revenues by source
$
2,221,934
$
2,206,451
$
2,047,432
$
6,445,515
$
5,274,898
Non-interest expenses:
Compensation and benefits
$
1,192,745
$
1,188,245
$
1,083,510
$
3,466,880
$
2,779,476
Compensation ratio13
53.7
%
53.9
%
52.9
%
53.8
%
52.7
%
Non-compensation expenses
$
678,151
$
702,657
$
632,107
$
2,099,832
$
1,877,641
Non-compensation ratio13
30.5
%
31.8
%
30.9
%
32.6
%
35.6
%
Total Non-interest expenses
$
1,870,896
$
1,890,902
$
1,715,617
$
5,566,712
$
4,657,117
Net earnings before income taxes
$
351,038
$
315,549
$
331,815
$
878,803
$
617,781
Income tax expense
$
86,976
$
65,571
$
89,311
$
205,417
$
147,033
Income tax rate
24.8
%
20.8
%
26.9
%
23.4
%
23.8
%
Net earnings
$
264,062
$
249,978
$
242,504
$
673,386
$
470,748
Net losses attributable to noncontrolling interests
(2,740
)
(5,440
)
(10,041
)
(24,038
)
(24,692
)
Preferred stock dividends
6,224
29,184
28,559
57,758
55,528
Net earnings attributable to common shareholders
$
260,578
$
226,234
$
223,986
$
639,666
$
439,912
Results Discussion
Three Months Ended August 31, 2026 Versus August 31, 2025
Nine Months Ended August 31, 2026 Versus August 31, 2025
Investment Banking and Capital Markets
Investment Banking and Capital Markets
Asset Management
Asset Management
Non-interest Expenses
Non-interest Expenses
Amounts herein pertaining to August 31, 2026 represent a preliminary estimate as of the date of this earnings release and may be revised upon filing our Quarterly Report on Form 10-Q with the Securities and Exchange Commission (“SEC”). More information on our results of operations for the three and nine months ended August 31, 2026 will be provided upon filing our Quarterly Report on Form 10-Q with the SEC, which we expect to file on or about October 9, 2026.
This press release contains certain “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current views and include statements about our future and statements that are not historical facts. These forward-looking statements are usually preceded by the words “should,” “expect,” “intend,” “may,” “will,” “would,” or similar expressions. Forward-looking statements may contain expectations regarding revenues, earnings, operations, and other results, and may include statements of future performance, plans, and objectives. Forward-looking statements may also include statements pertaining to our strategies for future development of our businesses and products. Forward-looking statements represent only our belief regarding future events, many of which by their nature are inherently uncertain. It is possible that the actual results may differ, possibly materially, from the anticipated results indicated in these forward-looking statements. Information regarding important factors, including Risk Factors that could cause actual results to differ, perhaps materially, from those in our forward-looking statements is contained in reports we file with the SEC. You should read and interpret any forward-looking statement together with reports we file with the SEC. We undertake no obligation to update or revise any such forward-looking statement to reflect subsequent circumstances.
Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy will be profitable or equal the corresponding indicated performance level(s).
Consolidated Statements of Earnings (Unaudited)
$ in thousands, except per share amounts
Three Months Ended August 31,
Nine Months Ended August 31,
2026
2025
2026
2025
Revenues
Investment banking
$
1,303,833
$
1,088,197
$
3,531,742
$
2,606,976
Principal transactions
468,655
486,893
1,444,819
1,232,630
Commissions and other fees
392,932
325,178
1,161,150
966,711
Asset management fees and revenues
9,869
13,079
87,019
118,563
Interest
922,999
846,894
2,590,080
2,570,090
Other
132,510
147,433
405,450
379,883
Total revenues
3,230,798
2,907,674
9,220,260
7,874,853
Interest expense
1,008,864
860,242
2,774,745
2,599,955
Net revenues
2,221,934
2,047,432
6,445,515
5,274,898
Non-interest expenses
Compensation and benefits
1,192,745
1,083,510
3,466,880
2,779,476
Brokerage and clearing fees
139,475
121,164
420,053
360,345
Underwriting costs
31,858
20,332
90,099
52,703
Technology and communications
173,235
157,171
495,953
442,844
Occupancy and equipment rental
34,713
32,908
103,072
93,818
Business development
83,000
78,999
247,530
231,360
Professional services
88,652
73,329
264,303
223,563
Depreciation and amortization
43,282
53,230
147,475
136,471
Cost of sales
…