BUSINESS WIRE<\/a>)–Jefferies Financial Group Inc. (NYSE: JEF): <\/p>\nQ3 Financial Highlights <\/p>\n
$ in thousands, except per share amounts <\/p>\n
Quarter End <\/p>\n
Year-to-Date <\/p>\n
3Q26 <\/p>\n
3Q25 <\/p>\n
2026 <\/p>\n
2025 <\/p>\n
Net earnings attributable to common shareholders <\/p>\n
$ <\/p>\n
260,578 <\/p>\n
$ <\/p>\n
223,986 <\/p>\n
$ <\/p>\n
639,666 <\/p>\n
$ <\/p>\n
439,912 <\/p>\n
Diluted earnings per voting common share <\/p>\n
$ <\/p>\n
1.08 <\/p>\n
$ <\/p>\n
1.01 <\/p>\n
$ <\/p>\n
2.79 <\/p>\n
$ <\/p>\n
1.98 <\/p>\n
Return on adjusted tangible shareholders’ equity1 <\/p>\n
13.5 <\/p>\n
% <\/p>\n
13.6 <\/p>\n
% <\/p>\n
12.9 <\/p>\n
% <\/p>\n
9.3 <\/p>\n
% <\/p>\n
Total net revenues <\/p>\n
$ <\/p>\n
2,221,934 <\/p>\n
$ <\/p>\n
2,047,432 <\/p>\n
$ <\/p>\n
6,445,515 <\/p>\n
$ <\/p>\n
5,274,898 <\/p>\n
Investment banking net revenues <\/p>\n
$ <\/p>\n
1,331,423 <\/p>\n
$ <\/p>\n
1,135,325 <\/p>\n
$ <\/p>\n
3,555,536 <\/p>\n
$ <\/p>\n
2,602,324 <\/p>\n
Capital markets net revenues <\/p>\n
$ <\/p>\n
802,178 <\/p>\n
$ <\/p>\n
723,382 <\/p>\n
$ <\/p>\n
2,380,226 <\/p>\n
$ <\/p>\n
2,125,821 <\/p>\n
Asset management net revenues <\/p>\n
$ <\/p>\n
85,635 <\/p>\n
$ <\/p>\n
176,882 <\/p>\n
$ <\/p>\n
493,615 <\/p>\n
$ <\/p>\n
523,218 <\/p>\n
Pre-tax earnings <\/p>\n
$ <\/p>\n
351,038 <\/p>\n
$ <\/p>\n
331,815 <\/p>\n
$ <\/p>\n
878,803 <\/p>\n
$ <\/p>\n
617,781 <\/p>\n
Book value per common share17 <\/p>\n
$ <\/p>\n
46.55 <\/p>\n
$ <\/p>\n
50.60 <\/p>\n
$ <\/p>\n
46.55 <\/p>\n
$ <\/p>\n
50.60 <\/p>\n
Adjusted tangible book value per fully diluted share3 <\/p>\n
$ <\/p>\n
35.21 <\/p>\n
$ <\/p>\n
33.38 <\/p>\n
$ <\/p>\n
35.21 <\/p>\n
$ <\/p>\n
33.38 <\/p>\n
Quarterly Cash Dividend and Stock Buyback Activity <\/p>\n
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. <\/p>\n
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. <\/p>\n
Management Comments <\/p>\n
“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. <\/p>\n
“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. <\/p>\n
“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. <\/p>\n
Story Continues <\/p>\n
“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. <\/p>\n
“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. <\/p>\n
“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. <\/p>\n
“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.” <\/p>\n
Richard Handler, CEO, and Brian Friedman, President <\/p>\n
Financial Summary (Unaudited) <\/p>\n
$ in thousands <\/p>\n
Three Months Ended <\/p>\n
Nine Months Ended <\/p>\n
August 31,
2026 <\/p>\n
May 31,
2026 <\/p>\n
August 31,
2025 <\/p>\n
August 31,
2026 <\/p>\n
August 31,
2025 <\/p>\n
Net revenues by source: <\/p>\n
Advisory <\/p>\n
$ <\/p>\n
817,823 <\/p>\n
$ <\/p>\n
674,118 <\/p>\n
$ <\/p>\n
655,578 <\/p>\n
$ <\/p>\n
2,019,069 <\/p>\n
$ <\/p>\n
1,511,218 <\/p>\n
Equity underwriting <\/p>\n
305,549 <\/p>\n
370,691 <\/p>\n
181,205 <\/p>\n
982,209 <\/p>\n
432,091 <\/p>\n
Debt underwriting <\/p>\n
177,072 <\/p>\n
160,186 <\/p>\n
249,525 <\/p>\n
519,116 <\/p>\n
654,250 <\/p>\n
Other investment banking <\/p>\n
30,979 <\/p>\n
1,825 <\/p>\n
49,017 <\/p>\n
35,142 <\/p>\n
4,765 <\/p>\n
Total Investment Banking <\/p>\n
1,331,423 <\/p>\n
1,206,820 <\/p>\n
1,135,325 <\/p>\n
3,555,536 <\/p>\n
2,602,324 <\/p>\n
Equities <\/p>\n
626,154 <\/p>\n
600,751 <\/p>\n
486,695 <\/p>\n
1,785,393 <\/p>\n
1,421,997 <\/p>\n
Fixed income <\/p>\n
176,024 <\/p>\n
198,541 <\/p>\n
236,687 <\/p>\n
594,833 <\/p>\n
703,824 <\/p>\n
Total Capital Markets <\/p>\n
802,178 <\/p>\n
799,292 <\/p>\n
723,382 <\/p>\n
2,380,226 <\/p>\n
2,125,821 <\/p>\n
Total Investment Banking and Capital Markets Net revenues5 <\/p>\n
2,133,601 <\/p>\n
2,006,112 <\/p>\n
1,858,707 <\/p>\n
5,935,762 <\/p>\n
4,728,145 <\/p>\n
Asset management fees and revenues6 <\/p>\n
13,285 <\/p>\n
15,169 <\/p>\n
15,916 <\/p>\n
98,364 <\/p>\n
125,312 <\/p>\n
Investment return <\/p>\n
20,949 <\/p>\n
31,037 <\/p>\n
68,026 <\/p>\n
140,978 <\/p>\n
112,796 <\/p>\n
Allocated net interest4 <\/p>\n
(21,438 <\/p>\n
) <\/p>\n
(22,935 <\/p>\n
) <\/p>\n
(18,550 <\/p>\n
) <\/p>\n
(66,611 <\/p>\n
) <\/p>\n
(54,915 <\/p>\n
) <\/p>\n
Other investments, inclusive of net interest <\/p>\n
72,839 <\/p>\n
164,447 <\/p>\n
111,490 <\/p>\n
320,884 <\/p>\n
340,025 <\/p>\n
Total Asset Management Net revenues <\/p>\n
85,635 <\/p>\n
187,718 <\/p>\n
176,882 <\/p>\n
493,615 <\/p>\n
523,218 <\/p>\n
Other <\/p>\n
2,698 <\/p>\n
12,621 <\/p>\n
11,843 <\/p>\n
16,138 <\/p>\n
23,535 <\/p>\n
Total Net revenues by source <\/p>\n
$ <\/p>\n
2,221,934 <\/p>\n
$ <\/p>\n
2,206,451 <\/p>\n
$ <\/p>\n
2,047,432 <\/p>\n
$ <\/p>\n
6,445,515 <\/p>\n
$ <\/p>\n
5,274,898 <\/p>\n
Non-interest expenses: <\/p>\n
Compensation and benefits <\/p>\n
$ <\/p>\n
1,192,745 <\/p>\n
$ <\/p>\n
1,188,245 <\/p>\n
$ <\/p>\n
1,083,510 <\/p>\n
$ <\/p>\n
3,466,880 <\/p>\n
$ <\/p>\n
2,779,476 <\/p>\n
Compensation ratio13 <\/p>\n
53.7 <\/p>\n
% <\/p>\n
53.9 <\/p>\n
% <\/p>\n
52.9 <\/p>\n
% <\/p>\n
53.8 <\/p>\n
% <\/p>\n
52.7 <\/p>\n
% <\/p>\n
Non-compensation expenses <\/p>\n
$ <\/p>\n
678,151 <\/p>\n
$ <\/p>\n
702,657 <\/p>\n
$ <\/p>\n
632,107 <\/p>\n
$ <\/p>\n
2,099,832 <\/p>\n
$ <\/p>\n
1,877,641 <\/p>\n
Non-compensation ratio13 <\/p>\n
30.5 <\/p>\n
% <\/p>\n
31.8 <\/p>\n
% <\/p>\n
30.9 <\/p>\n
% <\/p>\n
32.6 <\/p>\n
% <\/p>\n
35.6 <\/p>\n
% <\/p>\n
Total Non-interest expenses <\/p>\n
$ <\/p>\n
1,870,896 <\/p>\n
$ <\/p>\n
1,890,902 <\/p>\n
$ <\/p>\n
1,715,617 <\/p>\n
$ <\/p>\n
5,566,712 <\/p>\n
$ <\/p>\n
4,657,117 <\/p>\n
Net earnings before income taxes <\/p>\n
$ <\/p>\n
351,038 <\/p>\n
$ <\/p>\n
315,549 <\/p>\n
$ <\/p>\n
331,815 <\/p>\n
$ <\/p>\n
878,803 <\/p>\n
$ <\/p>\n
617,781 <\/p>\n
Income tax expense <\/p>\n
$ <\/p>\n
86,976 <\/p>\n
$ <\/p>\n
65,571 <\/p>\n
$ <\/p>\n
89,311 <\/p>\n
$ <\/p>\n
205,417 <\/p>\n
$ <\/p>\n
147,033 <\/p>\n
Income tax rate <\/p>\n
24.8 <\/p>\n
% <\/p>\n
20.8 <\/p>\n
% <\/p>\n
26.9 <\/p>\n
% <\/p>\n
23.4 <\/p>\n
% <\/p>\n
23.8 <\/p>\n
% <\/p>\n
Net earnings <\/p>\n
$ <\/p>\n
264,062 <\/p>\n
$ <\/p>\n
249,978 <\/p>\n
$ <\/p>\n
242,504 <\/p>\n
$ <\/p>\n
673,386 <\/p>\n
$ <\/p>\n
470,748 <\/p>\n
Net losses attributable to noncontrolling interests <\/p>\n
(2,740 <\/p>\n
) <\/p>\n
(5,440 <\/p>\n
) <\/p>\n
(10,041 <\/p>\n
) <\/p>\n
(24,038 <\/p>\n
) <\/p>\n
(24,692 <\/p>\n
) <\/p>\n
Preferred stock dividends <\/p>\n
6,224 <\/p>\n
29,184 <\/p>\n
28,559 <\/p>\n
57,758 <\/p>\n
55,528 <\/p>\n
Net earnings attributable to common shareholders <\/p>\n
$ <\/p>\n
260,578 <\/p>\n
$ <\/p>\n
226,234 <\/p>\n
$ <\/p>\n
223,986 <\/p>\n
$ <\/p>\n
639,666 <\/p>\n
$ <\/p>\n
439,912 <\/p>\n
Results Discussion <\/p>\n
Three Months Ended August 31, 2026 Versus August 31, 2025 <\/p>\n
Nine Months Ended August 31, 2026 Versus August 31, 2025 <\/p>\n
Investment Banking and Capital Markets <\/p>\n
Investment Banking and Capital Markets <\/p>\n
Asset Management <\/p>\n
Asset Management <\/p>\n
Non-interest Expenses <\/p>\n
Non-interest Expenses <\/p>\n
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. <\/p>\n
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. <\/p>\n
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). <\/p>\n
Consolidated Statements of Earnings (Unaudited) <\/p>\n
$ in thousands, except per share amounts <\/p>\n
Three Months Ended August 31, <\/p>\n
Nine Months Ended August 31, <\/p>\n
2026 <\/p>\n
2025 <\/p>\n
2026 <\/p>\n
2025 <\/p>\n
Revenues <\/p>\n
Investment banking <\/p>\n
$ <\/p>\n
1,303,833 <\/p>\n
$ <\/p>\n
1,088,197 <\/p>\n
$ <\/p>\n
3,531,742 <\/p>\n
$ <\/p>\n
2,606,976 <\/p>\n
Principal transactions <\/p>\n
468,655 <\/p>\n
486,893 <\/p>\n
1,444,819 <\/p>\n
1,232,630 <\/p>\n
Commissions and other fees <\/p>\n
392,932 <\/p>\n
325,178 <\/p>\n
1,161,150 <\/p>\n
966,711 <\/p>\n
Asset management fees and revenues <\/p>\n
9,869 <\/p>\n
13,079 <\/p>\n
87,019 <\/p>\n
118,563 <\/p>\n
Interest <\/p>\n
922,999 <\/p>\n
846,894 <\/p>\n
2,590,080 <\/p>\n
2,570,090 <\/p>\n
Other <\/p>\n
132,510 <\/p>\n
147,433 <\/p>\n
405,450 <\/p>\n
379,883 <\/p>\n
Total revenues <\/p>\n
3,230,798 <\/p>\n
2,907,674 <\/p>\n
9,220,260 <\/p>\n
7,874,853 <\/p>\n
Interest expense <\/p>\n
1,008,864 <\/p>\n
860,242 <\/p>\n
2,774,745 <\/p>\n
2,599,955 <\/p>\n
Net revenues <\/p>\n
2,221,934 <\/p>\n
2,047,432 <\/p>\n
6,445,515 <\/p>\n
5,274,898 <\/p>\n
Non-interest expenses <\/p>\n
Compensation and benefits <\/p>\n
1,192,745 <\/p>\n
1,083,510 <\/p>\n
3,466,880 <\/p>\n
2,779,476 <\/p>\n
Brokerage and clearing fees <\/p>\n
139,475 <\/p>\n
121,164 <\/p>\n
420,053 <\/p>\n
360,345 <\/p>\n
Underwriting costs <\/p>\n
31,858 <\/p>\n
20,332 <\/p>\n
90,099 <\/p>\n
52,703 <\/p>\n
Technology and communications <\/p>\n
173,235 <\/p>\n
157,171 <\/p>\n
495,953 <\/p>\n
442,844 <\/p>\n
Occupancy and equipment rental <\/p>\n
34,713 <\/p>\n
32,908 <\/p>\n
103,072 <\/p>\n
93,818 <\/p>\n
Business development <\/p>\n
83,000 <\/p>\n
78,999 <\/p>\n
247,530 <\/p>\n
231,360 <\/p>\n
Professional services <\/p>\n
88,652 <\/p>\n
73,329 <\/p>\n
264,303 <\/p>\n
223,563 <\/p>\n
Depreciation and amortization <\/p>\n
43,282 <\/p>\n
53,230 <\/p>\n
147,475 <\/p>\n
136,471 <\/p>\n
Cost of sales <\/p>\n
… <\/p>\n","protected":false},"excerpt":{"rendered":"Quarterly Record Investment Banking and Equities Net Revenues NEW YORK, September 28, 2026–(BUSINESS WIRE)–Jefferies Financial Group Inc. (NYSE:…\n","protected":false},"author":2,"featured_media":864008,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[25833,28,30623,364519,25528,112,207093],"class_list":["post-864007","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-asset-management","tag-business","tag-capital-markets","tag-common-share","tag-investment-banking","tag-markets","tag-net-earnings"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/864007","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=864007"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/864007\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/864008"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=864007"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=864007"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=864007"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}