Jefferies Financial Group Inc. (NYSE:JEF):

Q2 Financial Highlights

$ in thousands, except per share amounts	Quarter End						Year-to-Date
		2Q25			2Q24			2025			2024
Net earnings attributable to common shareholders	$	88,017		$	145,736		$	215,955		$	295,377
Diluted earnings per common share from continuing operations	$	0.40		$	0.64		$	0.97		$	1.34
Return on adjusted tangible shareholders' equity from continuing operations¹		5.5	%		9.1	%		6.9	%		9.6	%
Total net revenues	$	1,634,447		$	1,656,445		$	3,227,466		$	3,394,648
Investment banking net revenues¹⁴	$	766,307		$	787,386		$	1,466,999		$	1,514,396
Capital markets net revenues¹⁴	$	704,155		$	707,061		$	1,402,439		$	1,431,339
Asset management net revenues	$	154,621		$	156,524		$	346,336		$	429,907
Pre-tax earnings from continuing operations	$	134,901		$	227,754		$	285,966		$	447,996
Book value per common share	$	49.96		$	46.57		$	49.96		$	46.57
Adjusted tangible book value per fully diluted share³	$	32.84		$	31.27		$	32.84		$	31.27

Quarterly Cash Dividend

The Jefferies Board of Directors declared a quarterly cash dividend equal to $0.40 per Jefferies common share, payable on August 29, 2025 to record holders of Jefferies common shares on August 18, 2025.

Management Comments

"Net revenues of $1.63 billion for the second quarter reflect a resilient full-service investment banking and capital markets business against a backdrop of significant uncertainty related to U.S. policy and geopolitical events which meaningfully slowed activity levels for the first two months of the quarter. In May, some clarity came to the economy and markets, which began to restore investor confidence, and we experienced a noticeable increase in momentum. Despite the difficult first two months of this period, our quarterly Investment Banking Advisory activity was particularly strong and we believe our momentum and market position continues to strengthen. While nothing is certain, the global economy continues to show remarkable resilience in the face of incredibly significant crosscurrents. Given the strength of our current backlog, overall activity levels and an abundance of discussions with clients around capital formation, strategic opportunities and their need to transact, we are increasingly optimistic about the second half of 2025.

"Despite strong momentum in Advisory and Equities, net earnings attributable to common shareholders of $88 million and return on adjusted tangible shareholders' equity of 5.5% were impacted by lower revenues in Fixed Income, lower activity levels at Jefferies Finance and some modest one-time non-compensation expenses. We expect margins to normalize as the business environment improves and our operating leverage takes effect.

"Investment Banking net revenues from Advisory, Equity underwriting and Debt underwriting totaling $786 million for the second quarter were up 6.4% versus the prior year quarter. Strong performance in Advisory, which was up 61%, largely from continued market share gains, was offset by Equity underwriting net revenues, which were down 51%, consistent with a reduction in deal activity attributable to volatile equity market conditions, particularly in the first two months of the quarter when activity was severely muted. Debt underwriting net revenues were flat for the second quarter compared to the prior year quarter.

"Capital Markets net revenues of $704 million for the second quarter were down slightly versus the prior year quarter. Equities net revenues of $526 million increased 24% from the prior year quarter, as increased global trading volumes and activity levels in corporate derivatives drove strong global performance. Fixed Income net revenues of $178 million decreased 37% from the prior year comparable quarter.

"Asset Management fees and investment return revenues of $71 million for the quarter were up 43% from the prior year quarter, primarily due to improved performance across several strategies."

Richard Handler, CEO, and Brian Friedman, President

Financial Summary (Unaudited)

$ in thousands	Three Months Ended									Six Months Ended
	May 31, 2025			February 28, 2025			May 31, 2024			May 31, 2025			May 31, 2024
Net revenues by source:
Advisory	$	457,860		$	397,780		$	283,898		$	855,640		$	622,465
Equity underwriting		122,366			128,520			249,187			250,886			458,490
Debt underwriting		205,363			199,362			205,499			404,725			334,693
Other investment banking¹⁴		(19,282	)		(24,970	)		48,802			(44,252	)		98,748
Total Investment Banking		766,307			700,692			787,386			1,466,999			1,514,396
Equities¹⁴		526,244			409,058			422,884			935,302			794,684
Fixed income		177,911			289,226			284,177			467,137			636,655
Total Capital Markets		704,155			698,284			707,061			1,402,439			1,431,339
Total Investment Banking and Capital Markets Net revenues⁵		1,470,462			1,398,976			1,494,447			2,869,438			2,945,735
Asset management fees and revenues⁶		20,766			88,630			16,818			109,396			76,475
Investment return		50,404			(5,634	)		32,942			44,770			150,582
Allocated net interest⁴		(19,144	)		(17,221	)		(16,003	)		(36,365	)		(31,015	)
Other investments, inclusive of net interest¹³		102,595			125,940			122,767			228,535			233,865
Total Asset Management Net revenues		154,621			191,715			156,524			346,336			429,907
Other		9,364			2,328			5,474			11,692			19,006
Total Net revenues by source	$	1,634,447		$	1,593,019		$	1,656,445		$	3,227,466		$	3,394,648

Non-interest expenses:
Compensation and benefits	$	854,839		$	841,127		$	861,993		$	1,695,966		$	1,788,864
Compensation ratio¹⁵		52.3	%		52.8	%		52.0	%		52.5	%		52.7	%
Non-compensation expenses	$	644,707		$	600,827		$	566,698		$	1,245,534		$	1,157,788
Non-compensation ratio¹⁵		39.4	%		37.7	%		34.2	%		38.6	%		34.1	%
Total Non-interest expenses	$	1,499,546		$	1,441,954		$	1,428,691		$	2,941,500		$	2,946,652

Net earnings from continuing operations before income taxes	$	134,901		$	151,065		$	227,754		$	285,966		$	447,996
Income tax expense	$	43,506		$	14,216		$	73,107		$	57,722		$	129,066
Income tax rate		32.3	%		9.4	%		32.1	%		20.2	%		28.8	%
Net earnings from continuing operations	$	91,395		$	136,849		$	154,647		$	228,244		$	318,930
Net earnings (losses) from discontinued operations, net of income taxes		—			—			40			—			(7,851	)
Net losses attributable to noncontrolling interests		(7,668	)		(6,983	)		(4,790	)		(14,651	)		(12,228	)
Preferred stock dividends		11,046			16,039			13,741			26,940			27,930
Net earnings attributable to common shareholders	$	88,017		$	127,793		$	145,736		$	215,955		$	295,377

Highlights

Three Months Ended May 31, 2025 Versus May 31, 2024		Six Months Ended May 31, 2025 Versus May 31, 2024
Net earnings attributable to common shareholders of $88 million, or $0.40 per diluted common share from continuing operations. Return on adjusted tangible shareholders' equity from continuing operations¹ of 5.5%. We had 206.3 million common shares outstanding and 254.6 million common shares outstanding on a fully diluted basis² at May 31, 2025. Our book value per common share was $49.96 and tangible book value per fully diluted share³ was $32.84. Effective tax rate from continuing operations of 32.3% compared to 32.1% for the prior year quarter.		Net earnings attributable to common shareholders of $216 million, or $0.97 per diluted common share from continuing operations. Return on adjusted tangible shareholders' equity from continuing operations¹ of 6.9%. Repurchased 0.7 million shares of common stock for $58 million, at an average price of $80.11 per share in connection with net-share settlements related to our equity compensation plans. Effective tax rate from continuing operations of 20.2% compared to 28.8% for the prior year period. The lower tax rate reflects the partial resolution of certain state and local tax matters during the first quarter of 2025.

Investment Banking and Capital Markets		Investment Banking and Capital Markets
Investment Banking net revenues from Advisory, Equity underwriting and Debt underwriting totaling $786 million were 6% higher than the prior year quarter. Other investment banking net revenues were $(19) million, compared to net revenues of $49 million for the prior year quarter in large part due to the prior year quarter including Foursight operating revenues as well as the impact of the gain on sale as Foursight was sold in April 2024, and lower performance from Jefferies Finance. Advisory net revenues of $458 million were higher than the prior year quarter, primarily attributable to market share gains and an increase in mergers and acquisitions activity levels across most sectors. Underwriting net revenues of $328 million were lower than the prior year quarter, as Debt underwriting was flat and Equity underwriting declined, consistent with the overall industry slowdown attributable to significant uncertainty related to U.S. policy and geopolitical events which meaningfully slowed activity levels. Capital Markets net revenues of $704 million were modestly lower compared to the prior year quarter. Equities net revenues increased from the prior year quarter, as results from our global electronic trading and Europe and Asia equity cash businesses significantly increased over the prior year quarter. Additionally, results from our corporate derivatives businesses were also strong. Fixed Income net revenues decreased meaningfully from the prior year quarter as lower global activity levels led to volatility in credit spreads and a difficult trading environment impacting distressed, securitized products and emerging markets businesses.		Investment Banking net revenues from Advisory, Equity underwriting and Debt underwriting totaling $1.51 billion were 7% higher than the prior year. Other investment banking net revenues were $(44) million, compared to net revenues of $99 million for the prior year period in part due to the prior year period including Foursight operating revenues as well as the impact of the gain on sale as Foursight was sold in April 2024, and lower performance from Jefferies Finance. Advisory net revenues of $856 million were higher than the prior year period, primarily attributable to market share gains and an increase in mergers and acquisitions activity levels across all sectors. Underwriting net revenues of $656 million were lower than the prior year, as stronger net revenues in Debt underwriting attributable to the increase in transaction activity across most sectors were offset by lower net revenues in Equity underwriting, consistent with the overall industry slowdown attributable to significant uncertainty related to U.S. policy and geopolitical events which meaningfully slowed activity levels. Capital Markets net revenues of $1.40 billion were modestly lower compared to the prior year. Equities net revenues were strong for the quarter attributable to continued market share gains and overall increased levels of activity during the period. Fixed Income net revenues decreased meaningfully from the prior year as lower global activity levels led to volatility in credit spreads and a difficult trading environment impacting several businesses, including distressed, municipals, emerging markets, securitized products and corporates.

Asset Management		Asset Management
Asset Management fees and revenues and investment return of $71 million were higher than the prior year quarter. Investment return increased due to improved performance across several strategies.		Asset Management fees and revenues and investment return of $154 million were lower than the prior year. Asset management fees and revenues were higher compared to prior year, primarily reflecting higher performance fees on funds managed by us and through our strategic affiliates. Investment return decreased, as improved performance across several strategies was offset by a challenging investment environment particularly for several strategies with a long equity bias.

Non-interest Expenses		Non-interest Expenses
Compensation and benefits expense as a percentage of Net revenues was 52.3%, compared to 52.0% for the prior year quarter. Non-compensation expenses were higher primarily due to increased brokerage and clearing fees associated with increased equities trading volumes, business development and higher technology and communication expenses. In addition, non-compensation expenses for the prior year quarter include Foursight activity up through the sale in April 2024.		Compensation and benefits expense as a percentage of Net revenues was 52.5%, compared to 52.7% for the prior year period. Non-compensation expenses were higher primarily due to increased brokerage and clearing fees associated with increased equities trading volumes, business development and higher technology and communication expenses. The current year also includes approximately $17 million in charitable donations, including $10 million to support Los Angeles wildfire relief efforts, while the prior year includes the impact of $27 million in bad debt expenses associated with the shutdown of Weiss Multi-Strategy Advisers. In addition, non-compensation expenses for the prior year quarter include Foursight activity up through the sale in April 2024.

Amounts herein pertaining to May 31, 2025 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 six months ended May 31, 2025 will be provided upon filing our Quarterly Report on Form 10-Q with the SEC, which we expect to file on or about July 9, 2025.

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 May 31,						Six Months Ended May 31,
		2025			2024			2025			2024
Revenues
Investment banking	$	789,269		$	738,584		$	1,518,779		$	1,417,649
Principal transactions		338,507			416,195			745,737			1,056,931
Commissions and other fees		353,233			271,782			641,533			517,325
Asset management fees and revenues		20,076			11,768			105,484			62,140
Interest		878,025			879,727			1,723,196			1,699,216
Other		115,205			198,240			232,450			314,977
Total revenues		2,494,315			2,516,296			4,967,179			5,068,238
Interest expense		859,868			859,851			1,739,713			1,673,590
Net revenues		1,634,447			1,656,445			3,227,466			3,394,648
Non-interest expenses
Compensation and benefits		854,839			861,993			1,695,966			1,788,864
Brokerage and clearing fees		129,745			110,536			239,181			220,206
Underwriting costs		14,525			18,552			32,371			37,036
Technology and communications		146,198			135,238			285,673			272,750
Occupancy and equipment rental		30,711			29,327			60,910			57,480
Business development		80,070			68,630			152,361			126,281
Professional services		77,768			75,493			150,234			153,337
Depreciation and amortization		52,253			49,946			83,241			93,148
Cost of sales		42,961			37,462			84,529			72,133
Other expenses		70,476			41,514			157,034			125,417
Total non-interest expenses		1,499,546			1,428,691			2,941,500			2,946,652
Earnings from continuing operations before income taxes		134,901			227,754			285,966			447,996
Income tax expense		43,506			73,107			57,722			129,066
Net earnings from continuing operations		91,395			154,647			228,244			318,930
Net earnings (losses) from discontinued operations, net of income taxes		—			40			—			(7,851	)
Net earnings		91,395			154,687			228,244			311,079
Net losses attributable to noncontrolling interests		(7,668	)		(4,790	)		(14,651	)		(12,228	)
Preferred stock dividends		11,046			13,741			26,940			27,930
Net earnings attributable to common shareholders	$	88,017		$	145,736		$	215,955		$	295,377

Financial Data and Metrics (Unaudited)

	Three Months Ended						Six Months Ended
	May 31, 2025		February 28, 2025		May 31, 2024		May 31, 2025		May 31, 2024
Other Data:
Number of trading days		63		61		64		124		125
Number of trading loss days⁷		13		4		1		17		4
Average VaR (in millions)⁸	$	11.89	$	13.13	$	13.36	$	12.50	$	14.22

*In millions, except other data*	May 31, 2025		February 28, 2025		May 31, 2024
Financial position:
Total assets	$	67,285	$	70,219	$	63,001
Cash and cash equivalents		11,260		11,176		10,842
Financial instruments owned		25,570		26,087		22,787
Level 3 financial instruments owned⁹		763		781		691
Goodwill and intangible assets, net		2,060		2,038		2,057
Total equity		10,382		10,268		9,952
Total shareholders' equity		10,305		10,204		9,875
Tangible shareholders' equity¹⁰		8,245		8,166		7,818
Other data and financial ratios:
Leverage ratio¹¹		6.5		6.8		6.3
Tangible gross leverage ratio¹²		7.9		8.3		7.8
Number of employees at period end		7,671		7,701		7,611
Number of employees excluding OpNet, Tessellis and Stratos at period end		5,949		5,994		5,635

Components of Numerators and Denominators for Earnings Per Common Share

$ in thousands, except per share amounts	Three Months Ended May 31,						Six Months Ended May 31,
		2025			2024			2025			2024
Numerator for earnings per common share from continuing operations:
Net earnings from continuing operations	$	91,395		$	154,647		$	228,244		$	318,930
Less: Net losses attributable to noncontrolling interests		(7,668	)		(3,785	)		(14,651	)		(10,237	)
Allocation of earnings to participating securities		(11,046	)		(13,741	)		(26,940	)		(27,930	)
Net earnings from continuing operations attributable to common shareholders for basic earnings per share	$	88,017		$	144,691		$	215,955		$	301,237
Net earnings from continuing operations attributable to common shareholders for diluted earnings per share	$	88,017		$	144,691		$	215,955		$	301,237

Numerator for earnings per common share from discontinued operations:
Net earnings (losses) from discontinued operations, net of taxes	$	—		$	40		$	—		$	(7,851	)
Less: Net losses attributable to noncontrolling interests		—			(1,005	)		—			(1,991	)
Net earnings (losses) from discontinued operations attributable to common shareholders for basic and diluted earnings per share	$	—		$	1,045		$	—		$	(5,860	)
Net earnings attributable to common shareholders for basic earnings per share	$	88,017		$	145,736		$	215,955		$	295,377
Net earnings attributable to common shareholders for diluted earnings per share	$	88,017		$	145,736		$	215,955		$	295,377

Denominator for earnings per common share:
Weighted average common shares outstanding		206,254			212,039			206,150			211,787
Weighted average shares of restricted stock outstanding with future service required		(2,248	)		(2,329	)		(2,276	)		(2,366	)
Weighted average restricted stock units outstanding with no future service required		11,091			10,261			10,944			10,514
Weighted average basic common shares		215,097			219,971			214,818			219,935
Stock options and other share-based awards		4,262			3,470			4,984			3,124
Senior executive compensation plan restricted stock unit awards		2,538			2,705			2,581			2,528
Weighted average diluted common shares		221,897			226,146			222,383			225,587

Earnings (losses) per common share:
Basic from continuing operations	$	0.41		$	0.66		$	1.01		$	1.37
Basic from discontinued operations		—			—			—			(0.03	)
Basic	$	0.41		$	0.66		$	1.01		$	1.34
Diluted from continuing operations	$	0.40		$	0.64		$	0.97		$	1.34
Diluted from discontinued operations		—			—			—			(0.03	)
Diluted	$	0.40		$	0.64		$	0.97		$	1.31

Non-GAAP Reconciliations

The following tables reconcile our non-GAAP financial measures to their respective U.S. GAAP financial measures. Management believes such non-GAAP financial measures are useful to investors as they allow them to view our results through the eyes of management, while facilitating a comparison across historical periods. These measures should not be considered a substitute for, or superior to, measures prepared in accordance with U.S. GAAP.

Return on Adjusted Tangible Equity Reconciliation

$ in thousands	Three Months Ended May 31,						Six Months Ended May 31,
		2025			2024			2025			2024
Net earnings attributable to common shareholders (GAAP)	$	88,017		$	145,736		$	215,955		$	295,377
Intangible amortization and impairment expense, net of tax		5,824			5,799			13,093			9,946
Adjusted net earnings to common shareholders (non-GAAP)		93,841			151,535			229,048			305,323
Preferred stock dividends		11,046			13,741			26,940			27,930
Adjusted net earnings to total shareholders (non-GAAP)	$	104,887		$	165,276		$	255,988		$	333,253

Adjusted net earnings to total shareholders (non-GAAP)¹	$	419,548		$	661,104		$	511,976		$	666,506

Net earnings impact for net (earnings) losses from discontinued operations, net of noncontrolling interests		—			(1,045	)		—			5,861
Adjusted net earnings to total shareholders from continuing operations (non-GAAP)		104,887			164,231			255,988			339,114
Adjusted net earnings to total shareholders from continuing operations (non-GAAP)¹		419,548			656,924			511,976			678,228

	February 28,						November 30,
		2025			2024			2024			2023
Shareholders' equity (GAAP)	$	10,204,228		$	9,780,097		$	10,156,772		$	9,709,827
Less: Intangible assets, net and goodwill		(2,037,906	)		(2,063,956	)		(2,054,310	)		(2,044,776	)
Less: Deferred tax asset, net		(507,452	)		(466,468	)		(497,590	)		(458,343	)
Less: Weighted average impact of dividends and share repurchases		(67,343	)		(49,053	)		(157,540	)		(115,344	)
Adjusted tangible shareholders' equity (non-GAAP)	$	7,591,527		$	7,200,620		$	7,447,332		$	7,091,364

Return on adjusted tangible shareholders' equity (non-GAAP)¹		5.5	%		9.2	%		6.9	%		9.4	%
Return on adjusted tangible shareholders' equity from continuing operations (non-GAAP)¹		5.5	%		9.1	%		6.9	%		9.6	%

Adjusted Tangible Book Value and Fully Diluted Shares Outstanding Reconciliation

Reconciliation of book value (shareholders' equity) to adjusted tangible book value and common shares outstanding to fully diluted shares outstanding:

$ in thousands, except per share amounts		May 31, 2025
Book value (GAAP)		$	10,305,025
Stock options⁽¹⁾			114,939
Intangible assets, net and goodwill			(2,060,018	)
Adjusted tangible book value (non-GAAP)		$	8,359,946

Common shares outstanding (GAAP)			206,272
Preferred shares			27,563
Restricted stock units ("RSUs")			14,099
Stock options⁽¹⁾			5,064
Other			1,566
Adjusted fully diluted shares outstanding (non-GAAP)⁽²⁾			254,564

Book value per common share outstanding		$	49.96
Adjusted tangible book value per fully diluted share outstanding (non-GAAP)		$	32.84

⁽¹⁾	Stock options added to book value are equal to the total number of stock options outstanding as of May 31, 2025 of 5.1 million multiplied by the weighted average exercise price of $22.69 on May 31, 2025.
⁽²⁾	Fully diluted shares outstanding include vested and unvested RSUs as well as the target number of RSUs issuable under the senior executive compensation plans until the performance period is complete. Fully diluted shares outstanding also include all stock options and the impact of convertible preferred shares if-converted to common shares.

Notes

Return on adjusted tangible shareholders' equity and Return on adjusted tangible shareholders' equity from continuing operations represent non-GAAP financial measures and are based on full year or annualized amounts. Refer to schedule on page 8 for a reconciliation to U.S. GAAP amounts.
Shares outstanding on a fully diluted basis (a non-GAAP financial measure) is defined as common shares outstanding plus preferred shares, restricted stock units, stock options and other shares. Refer to schedule on page 9 for a reconciliation to U.S. GAAP amounts.
Adjusted tangible book value per fully diluted share (a non-GAAP financial measure) is defined as adjusted tangible book value (a non-GAAP financial measure) divided by shares outstanding on a fully diluted basis (a non-GAAP financial measure). Refer to schedule on page 9 for a reconciliation to U.S. GAAP amounts.
Allocated net interest represents an allocation to Asset Management of certain of our long-term debt interest expense, net of interest income on our Cash and cash equivalents and other sources of liquidity. Allocated net interest has been disaggregated to increase transparency and to present direct Asset Management revenues. We believe that aggregating Allocated net interest would obscure the revenue results by including an amount that is unique to our credit spreads, debt maturity profile, capital structure, liquidity risks and allocation methods.
Allocated net interest is not separately disaggregated for Investment Banking and Capital Markets. This presentation is aligned to our Investment Banking and Capital Markets internal performance measurement.
Asset management fees and revenues include management and performance fees from funds and accounts managed by us as well as our share of fees received by affiliated asset management companies with which we have revenue and profit share arrangements, as well as earnings on our ownership interest in affiliated asset managers.
Number of trading loss days is calculated based on trading activities in our Investment Banking and Capital Markets and Asset Management business segments, excluding certain Other investments.
VaR estimates the potential loss in value of trading positions due to adverse market movements over a one-day time horizon with a 95% confidence level. For a further discussion of the calculation of VaR, see "Value-at-Risk" in Part II, Item 7A "Quantitative and Qualitative Disclosures About Market Risk" in our Annual Report on Form 10-K for the year ended November 30, 2024.
Level 3 financial instruments represent those financial instruments classified as such under Accounting Standards Codification 820, accounted for at fair value and included within Financial instruments owned.
Tangible shareholders' equity (a non-GAAP financial measure) is defined as shareholders' equity less Intangible assets and goodwill. We believe that tangible shareholders' equity is meaningful for valuation purposes, as financial companies are often measured as a multiple of tangible shareholders' equity, making these ratios meaningful for investors.
Leverage ratio equals total assets divided by total equity.
Tangible gross leverage ratio (a non-GAAP financial measure) equals total assets less goodwill and intangible assets divided by tangible shareholders' equity. The tangible gross leverage ratio is used by rating agencies in assessing our leverage ratio.
Beginning in fiscal 2024, we now refer to "Merchant banking" as "Other investments" in our Asset Management reportable segment.
Beginning in the fourth quarter of 2024, revenues from corporate equity derivative transactions historically included within Other investment banking net revenues were reclassified to Equities net revenues as the underlying business has matured and has started to generate meaningful revenues. Prior year amounts have been revised to conform to this reclassification change to the current year reporting.
Compensation ratio equals total compensation expense divided by total net revenues. Non-compensation ratio equals total non-compensation expense divided by total net revenues.

Source: Jefferies Financial Group Inc.

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Jonathan Freedman 212.778.8913

Jefferies Announces Second Quarter 2025 Financial Results