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

…