☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
New York | 13-2615557 | ||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||
520 Madison Avenue, | New York, | New York | 10022 | ||
(Address of principal executive offices) | (Zip Code) | ||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Shares, par value $1 per share | JEF | New York Stock Exchange |
4.850% Senior Notes Due 2027 | JEF 27A | New York Stock Exchange |
5.875% Senior Notes Due 2028 | JEF 28 | New York Stock Exchange |
2.750% Senior Notes Due 2032 | JEF 32A | New York Stock Exchange |
6.200% Senior Notes Due 2034 | JEF 34 | New York Stock Exchange |
5.500% Senior Notes Due 2036 | JEF 36 | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||
Emerging growth company | ☐ |
Page | |
Consolidated Statements of Financial Condition (Unaudited) ......................................................................................................... | |
Consolidated Statements of Earnings (Unaudited) ............................................................................................................................ | |
Consolidated Statements of Comprehensive Income (Unaudited) .................................................................................................. | |
Consolidated Statements of Changes in Equity (Unaudited) ............................................................................................................ | |
Consolidated Statements of Cash Flows (Unaudited) ....................................................................................................................... | |
Notes to Consolidated Financial Statements (Unaudited) ................................................................................................................ | |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations ............................................... | |
Item 3. Quantitative and Qualitative Disclosures About Market Risk .................................................................................................... | |
Item 4. Controls and Procedures .................................................................................................................................................................. | |
Item 1. Legal Proceedings ............................................................................................................................................................................. | |
Item 1A. Risk Factors ..................................................................................................................................................................................... | |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds .................................................................................................. | |
Item 5. Other Information .............................................................................................................................................................................. | |
Item 6. Exhibits ................................................................................................................................................................................................ | |
2 | Jefferies Financial Group Inc. |
Consolidated Statements of Financial Condition (Unaudited) | February 28, | November 30, |
$ in thousands, except share and per share amounts | 2026 | 2025 |
Assets | ||
Cash and cash equivalents ............................................................................................................................................................... | $11,963,165 | $14,043,889 |
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations ................................................................................................................................................................................. | 1,752,549 | 917,697 |
Financial instruments owned, at fair value (includes securities pledged of $18,129,409 and $17,419,373) ....................... | 28,079,458 | 27,722,739 |
Investments in and loans to related parties ................................................................................................................................... | 1,560,602 | 1,496,125 |
Securities borrowed ........................................................................................................................................................................... | 7,675,862 | 8,295,161 |
Securities purchased under agreements to resell ........................................................................................................................ | 7,784,070 | 8,449,107 |
Securities received as collateral, at fair value ................................................................................................................................ | 393,867 | 200,495 |
Receivables: | ||
Brokers, dealers and clearing organizations ............................................................................................................................... | 3,762,461 | 4,310,143 |
Customers ........................................................................................................................................................................................ | 3,984,448 | 3,439,921 |
Fees, interest and other .................................................................................................................................................................. | 761,369 | 806,324 |
Premises and equipment .................................................................................................................................................................. | 1,198,511 | 1,246,470 |
Goodwill ............................................................................................................................................................................................... | 1,725,876 | 1,837,570 |
Assets held for sale ........................................................................................................................................................................... | 269,707 | — |
Other assets (includes assets pledged of $646,883 and $627,259) .......................................................................................... | 3,468,545 | 3,246,706 |
Total assets ........................................................................................................................................................................................ | $74,380,490 | $76,012,347 |
Liabilities and Equity | ||
Short-term borrowings ...................................................................................................................................................................... | $1,917,492 | $1,767,206 |
Financial instruments sold, not yet purchased, at fair value ....................................................................................................... | 14,459,138 | 13,320,152 |
Securities loaned ................................................................................................................................................................................ | 2,690,387 | 2,540,759 |
Securities sold under agreements to repurchase ......................................................................................................................... | 10,380,281 | 12,156,737 |
Other secured financings (includes $424,023 and $425,964 at fair value) ............................................................................... | 2,285,995 | 2,885,878 |
Obligation to return securities received as collateral, at fair value ............................................................................................. | 393,867 | 200,495 |
Payables: | ||
Brokers, dealers and clearing organizations ............................................................................................................................... | 5,646,053 | 6,955,100 |
Customers ........................................................................................................................................................................................ | 5,350,833 | 5,216,714 |
Lease liabilities ................................................................................................................................................................................... | 573,096 | 594,097 |
Liabilities held for sale ...................................................................................................................................................................... | 257,888 | — |
Accrued expenses and other liabilities ........................................................................................................................................... | 2,533,907 | 3,836,709 |
Long-term debt (includes $3,686,758 and $3,734,843 at fair value) .......................................................................................... | 17,229,419 | 15,895,891 |
Total liabilities .................................................................................................................................................................................... | 63,718,356 | 65,369,738 |
Mezzanine Equity | ||
Redeemable noncontrolling interests ............................................................................................................................................. | 406 | 406 |
Equity | ||
Series B preferred shares, par value of $1 per share, authorized 70,000 shares; 55,125 shares issued and outstanding | 55 | 55 |
Common shares, par value $1 per share, authorized 565,000,000 shares; 204,422,673 and 206,296,167 shares issued and outstanding, after deducting 116,695,397 and 114,821,903 shares held in treasury .................................................. | 204,423 | 206,296 |
Non-voting common shares, par value $1 per share, authorized 35,000,000, shares; no shares issued and outstanding .................................................................................................................................................................................... | — | — |
Additional paid-in capital .................................................................................................................................................................. | 2,075,065 | 2,177,954 |
Accumulated other comprehensive loss ........................................................................................................................................ | (315,023) | (384,434) |
Retained earnings .............................................................................................................................................................................. | 8,646,325 | 8,574,825 |
Total Jefferies Financial Group Inc. shareholders' equity .......................................................................................................... | 10,610,845 | 10,574,696 |
Noncontrolling interests ................................................................................................................................................................... | 50,883 | 67,507 |
Total equity ......................................................................................................................................................................................... | 10,661,728 | 10,642,203 |
Total liabilities and equity ................................................................................................................................................................ | $74,380,490 | $76,012,347 |
February 2026 Form 10-Q | 3 |
Three Months Ended February 28, | |||
$ in thousands, except per share amounts | 2026 | 2025 | |
Revenues | |||
Investment banking .................................................................................................................................................................... | $1,018,284 | $729,510 | |
Principal transactions ................................................................................................................................................................ | 487,498 | 407,230 | |
Commissions and other fees .................................................................................................................................................... | 367,604 | 288,300 | |
Asset management fees and revenues ................................................................................................................................... | 67,362 | 85,408 | |
Interest ......................................................................................................................................................................................... | 813,119 | 845,171 | |
Other ............................................................................................................................................................................................. | 117,398 | 117,245 | |
Total revenues ............................................................................................................................................................................ | 2,871,265 | 2,472,864 | |
Interest expense .......................................................................................................................................................................... | 854,135 | 879,845 | |
Net revenues ............................................................................................................................................................................... | 2,017,130 | 1,593,019 | |
Non-interest expenses | |||
Compensation and benefits ...................................................................................................................................................... | 1,085,890 | 841,127 | |
Brokerage and clearing fees ..................................................................................................................................................... | 133,132 | 109,436 | |
Underwriting costs ...................................................................................................................................................................... | 31,383 | 17,846 | |
Technology and communications ............................................................................................................................................ | 159,858 | 139,475 | |
Occupancy and equipment rental ............................................................................................................................................. | 33,860 | 30,199 | |
Business development ............................................................................................................................................................... | 75,422 | 72,291 | |
Professional services ................................................................................................................................................................. | 76,944 | 72,466 | |
Depreciation and amortization ................................................................................................................................................. | 56,865 | 30,988 | |
Cost of sales ................................................................................................................................................................................ | 29,920 | 41,568 | |
Other expenses ........................................................................................................................................................................... | 121,640 | 86,558 | |
Total non-interest expenses .................................................................................................................................................... | 1,804,914 | 1,441,954 | |
Earnings before income taxes .................................................................................................................................................. | 212,216 | 151,065 | |
Income tax expense ................................................................................................................................................................... | 52,870 | 14,216 | |
Net earnings ................................................................................................................................................................................ | 159,346 | 136,849 | |
Net losses attributable to noncontrolling interests ............................................................................................................... | (15,858) | (6,983) | |
Preferred stock dividends .......................................................................................................................................................... | 19,504 | 16,039 | |
Net earnings attributable to common shareholders ............................................................................................................ | $155,700 | $127,793 | |
Earnings per common share | |||
Basic ............................................................................................................................................................................................. | $0.72 | $0.60 | |
Diluted ........................................................................................................................................................................................... | 0.70 | 0.57 | |
Weighted-average common shares outstanding | |||
Basic ............................................................................................................................................................................................. | 215,707 | 214,536 | |
Diluted ........................................................................................................................................................................................... | 223,270 | 222,448 | |
4 | Jefferies Financial Group Inc. |
Three Months Ended February 28, | |||
$ in thousands | 2026 | 2025 | |
Net earnings ............................................................................................................................................................................. | $159,346 | $136,849 | |
Other comprehensive income (loss), net of tax: | |||
Currency translation adjustments and other (1) ................................................................................................................ | 9,179 | (15,322) | |
Changes in fair value related to instrument-specific credit risk (2) ................................................................................ | 59,648 | 30,256 | |
Unrealized gains on available-for-sale-securities ............................................................................................................. | 584 | 125 | |
Total other comprehensive income (loss), net of tax (3) ................................................................................................. | 69,411 | 15,059 | |
Comprehensive income .......................................................................................................................................................... | 228,757 | 151,908 | |
Net losses attributable to noncontrolling interests ............................................................................................................ | (15,858) | (6,983) | |
Preferred stock dividends ...................................................................................................................................................... | 19,504 | 16,039 | |
Comprehensive income attributable to common shareholders ...................................................................................... | $225,111 | $142,852 | |
February 2026 Form 10-Q | 5 |
Three Months Ended February 28, | |||
$ in thousands, except par value and per share amounts | 2026 | 2025 | |
Preferred shares $1 par value | |||
Balance, beginning of period .................................................................................................................................................... | $55 | $55 | |
Balance, end of period .............................................................................................................................................................. | $55 | $55 | |
Common shares $1 par value | |||
Balance, beginning of period .................................................................................................................................................... | $206,296 | $205,504 | |
Purchase of common shares for treasury .......................................................................................................................... | (2,996) | (696) | |
Other ......................................................................................................................................................................................... | 1,123 | 1,442 | |
Balance, end of period .............................................................................................................................................................. | $204,423 | $206,250 | |
Additional paid-in capital | |||
Balance, beginning of period .................................................................................................................................................... | $2,177,954 | $2,104,199 | |
Share-based compensation expense .................................................................................................................................. | 50,672 | 35,637 | |
Purchase of common shares for treasury .......................................................................................................................... | (171,307) | (55,622) | |
Dividend equivalents .............................................................................................................................................................. | 10,908 | 8,597 | |
Change in equity interest related to consolidated subsidiaries ....................................................................................... | 4,606 | 853 | |
Other ......................................................................................................................................................................................... | 2,232 | 474 | |
Balance, end of period .............................................................................................................................................................. | $2,075,065 | $2,094,138 | |
Accumulated other comprehensive loss, net of tax | |||
Balance, beginning of period .................................................................................................................................................... | $(384,434) | $(423,131) | |
Other comprehensive income, net of taxes ........................................................................................................................ | 69,411 | 15,059 | |
Balance, end of period .............................................................................................................................................................. | $(315,023) | $(408,072) | |
Retained earnings | |||
Balance, beginning of period .................................................................................................................................................... | $8,574,825 | $8,270,145 | |
Net earnings attributable to Jefferies Financial Group Inc. .............................................................................................. | 175,204 | 143,832 | |
Dividends - common shares ($0.40 and $0.40 per share) ................................................................................................ | (92,674) | (91,095) | |
Dividends - preferred shares ................................................................................................................................................. | (11,025) | (11,025) | |
Other ......................................................................................................................................................................................... | (5) | — | |
Balance, end of period .............................................................................................................................................................. | $8,646,325 | $8,311,857 | |
Total Jefferies Financial Group Inc. shareholders' equity ................................................................................................. | $10,610,845 | $10,204,228 | |
Noncontrolling interests | |||
Balance, beginning of period .................................................................................................................................................... | $67,507 | $68,215 | |
Net losses attributable to noncontrolling interests ........................................................................................................... | (15,858) | (6,983) | |
Contributions ........................................................................................................................................................................... | 119 | 104 | |
Distributions ............................................................................................................................................................................ | (1,518) | (2,795) | |
Other ......................................................................................................................................................................................... | 633 | 5,670 | |
Balance, end of period .............................................................................................................................................................. | $50,883 | $64,211 | |
Total equity ................................................................................................................................................................................. | $10,661,728 | $10,268,439 | |
6 | Jefferies Financial Group Inc. |
Three Months Ended February 28, | ||
$ in thousands | 2026 | 2025 |
Cash flows from operating activities: | ||
Net earnings ................................................................................................................................................................... | $159,346 | $136,849 |
Adjustments to reconcile net earnings to net cash used in operating activities: | ||
Depreciation and amortization ................................................................................................................................. | 41,335 | 32,995 |
Impairment of assets ................................................................................................................................................ | 65,413 | — |
Share-based compensation ...................................................................................................................................... | 50,672 | 35,637 |
Net bad debt expense ............................................................................................................................................... | 14,427 | 7,493 |
Income on investments in and loans to related parties ....................................................................................... | (24,474) | (7,052) |
Distributions received on investments in related parties ..................................................................................... | 21,173 | 16,142 |
Other adjustments ..................................................................................................................................................... | 118,761 | (44,419) |
Net change in assets and liabilities: | ||
Receivables: | ||
Brokers, dealers and clearing organizations ....................................................................................................... | 547,515 | (877,505) |
Customers ................................................................................................................................................................ | (544,527) | 32,699 |
Fees, interest and other .......................................................................................................................................... | 7,851 | (47,567) |
Securities borrowed ................................................................................................................................................... | 619,155 | (1,198,188) |
Financial instruments owned ................................................................................................................................... | (357,809) | (2,271,617) |
Securities purchased under agreements to resell ................................................................................................ | 664,567 | (1,976,348) |
Other assets ................................................................................................................................................................ | (305,830) | (236,583) |
Payables: | ||
Brokers, dealers and clearing organizations ....................................................................................................... | (1,308,863) | 546,020 |
Customers ................................................................................................................................................................ | 134,119 | 48,413 |
Securities loaned ........................................................................................................................................................ | 149,785 | (30,136) |
Financial instruments sold, not yet purchased ...................................................................................................... | 1,139,710 | 3,027,469 |
Securities sold under agreements to repurchase ................................................................................................. | (1,776,125) | 1,359,656 |
Lease liabilities ........................................................................................................................................................... | (17,783) | (21,429) |
Accrued expenses and other liabilities ................................................................................................................... | (1,135,709) | (1,197,694) |
Net cash used in operating activities ........................................................................................................................ | (1,737,291) | (2,665,165) |
Cash flows from investing activities: | ||
Contributions to investments in and loans to related parties ............................................................................. | (64,830) | (21,949) |
Capital distributions from investments and repayments of loans from related parties ................................. | 426 | 13,752 |
Net payments on premises and equipment ........................................................................................................... | (64,861) | (49,578) |
Net cash used in investing activities ........................................................................................................................ | (129,265) | (57,775) |
Cash flows from financing activities: | ||
Proceeds from short-term borrowings ................................................................................................................... | $2,081,271 | $3,253,704 |
Payments on short-term borrowings ...................................................................................................................... | (1,916,779) | (2,662,000) |
Proceeds from issuance of long-term debt, net of issuance costs .................................................................... | 2,570,746 | 1,536,928 |
Repayment of long-term debt .................................................................................................................................. | (1,239,142) | (188,890) |
Purchase of common shares for treasury.............................................................................................................. | (174,303) | (56,318) |
Dividends paid to common and preferred shareholders ...................................................................................... | (92,791) | (92,735) |
Net proceeds from (payments on) other secured financings ............................................................................. | (600,057) | 98,941 |
Net change in bank overdrafts ................................................................................................................................. | (8,400) | 137,305 |
Proceeds from contributions of noncontrolling interests .................................................................................... | 119 | 104 |
Payments on distributions to noncontrolling interests ........................................................................................ | (1,518) | (2,795) |
Other ............................................................................................................................................................................ | 7,956 | 1,916 |
Net cash provided by financing activities ................................................................................................................ | 627,102 | 2,026,160 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash ........................................... | (152) | (8,062) |
Change in cash, cash equivalents, and restricted cash reclassified from (to) assets held for sale ................. | (6,266) | — |
Net decrease in cash, cash equivalents, and restricted cash ................................................................................ | (1,239,606) | (704,842) |
Cash, cash equivalents, and restricted cash at beginning of period ..................................................................... | 14,961,586 | 13,165,612 |
Cash, cash equivalents, and restricted cash at end of period .............................................................................. | $13,715,714 | $12,460,770 |
February 2026 Form 10-Q | 7 |
Three Months Ended February 28, | ||
$ in thousands | 2026 | 2025 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for: | ||
Interest ......................................................................................................................................................................... | $831,330 | $845,673 |
Income taxes, net ....................................................................................................................................................... | 37,848 | 9,089 |
February 28, | November 30, | |
$ in thousands | 2026 | 2025 |
Cash and cash equivalents ........................................................................................................................................... | $11,963,165 | $14,043,889 |
Cash on deposit for regulatory purposes with clearing and depository organizations ....................................... | 1,752,549 | 917,697 |
Total cash, cash equivalents and restricted cash .................................................................................................... | $13,715,714 | $14,961,586 |
8 | Jefferies Financial Group Inc. |
Page | |
Note 1. Organization and Basis of Presentation ...................................................................................................................................................................... | |
Note 2. Summary of Significant Accounting Policies ............................................................................................................................................................. | |
Note 3. Accounting Developments ............................................................................................................................................................................................ | |
Note 4. Assets and Liabilities Held for Sale .............................................................................................................................................................................. | |
Note 5. Fair Value Disclosures .................................................................................................................................................................................................... | |
Note 6. Derivative Financial Instruments .................................................................................................................................................................................. | |
Note 7. Collateralized Transactions ........................................................................................................................................................................................... | |
Note 8. Securitization Activities ................................................................................................................................................................................................. | |
Note 9. Variable Interest Entities ................................................................................................................................................................................................ | |
Note 10. Investments ................................................................................................................................................................................................................... | |
Note 11. Credit Losses on Financial Assets Measured at Amortized Cost ......................................................................................................................... | |
Note 12. Goodwill and Intangible Assets .................................................................................................................................................................................. | |
Note 13. Revenues from Contracts with Customers ............................................................................................................................................................... | |
Note 14. Compensation Plans .................................................................................................................................................................................................... | |
Note 15. Borrowings ..................................................................................................................................................................................................................... | |
Note 16. Total Equity .................................................................................................................................................................................................................... | |
Note 17. Income Taxes ................................................................................................................................................................................................................ | |
Note 18. Commitments, Contingencies and Guarantees ....................................................................................................................................................... | |
Note 19. Regulatory Requirements ............................................................................................................................................................................................ | |
Note 20. Segment Reporting ....................................................................................................................................................................................................... | |
Note 21. Related Party Transactions ......................................................................................................................................................................................... |
February 2026 Form 10-Q | 9 |
10 | Jefferies Financial Group Inc. |
$ in thousands | February 28, 2026 |
Assets held for sale: | |
Cash and cash equivalents ........................................ | $6,266 |
Investments in and loans to related parties ............ | 6,579 |
Other receivables ........................................................ | 25,074 |
Premises and equipment, net .................................... | 66,215 |
Goodwill ........................................................................ | 56,850 |
Other assets ................................................................. | 108,723 |
Total assets held for sale ..................................... | $269,707 |
Liabilities held for sale: | |
Short term borrowings ................................................ | $6,071 |
Lease liabilities ............................................................ | 19,291 |
Accrued expenses and other liabilities .................... | 181,699 |
Long-term debt ............................................................ | 50,827 |
Total liabilities held for sale ................................ | $257,888 |
February 2026 Form 10-Q | 11 |
February 28, 2026 (1) | |||||
$ in thousands | Level 1 | Level 2 | Level 3 | Counterparty and Cash Collateral Netting (2) | Total |
Assets: | |||||
Financial instruments owned: | |||||
Corporate equity securities .................................................................................. | $7,339,191 | $354,960 | $218,483 | $— | $7,912,634 |
Corporate debt securities ..................................................................................... | — | 5,401,094 | 50,755 | — | 5,451,849 |
Collateralized debt obligations and collateralized loan obligations ............... | — | 591,727 | 61,455 | — | 653,182 |
U.S. government and federal agency securities ................................................ | 2,524,173 | 67,934 | — | — | 2,592,107 |
Municipal securities .............................................................................................. | — | 556,120 | — | — | 556,120 |
Sovereign obligations ............................................................................................ | 928,270 | 1,038,133 | — | — | 1,966,403 |
Residential mortgage-backed securities ............................................................ | — | 2,123,844 | 6,134 | — | 2,129,978 |
Commercial mortgage-backed securities .......................................................... | — | 2,150 | 355 | — | 2,505 |
Other asset-backed securities ............................................................................. | — | 630,244 | 244,714 | — | 874,958 |
Loans and other receivables ................................................................................ | — | 2,156,054 | 85,396 | — | 2,241,450 |
Derivatives .............................................................................................................. | 155 | 7,079,249 | 14,691 | (5,186,913) | 1,907,182 |
Investments at fair value ...................................................................................... | — | 13,569 | 167,195 | — | 180,764 |
Total financial instruments owned, excluding Investments at fair value based on NAV .................................................................................................... | $10,791,789 | $20,015,078 | $849,178 | $(5,186,913) | $26,469,132 |
Securities received as collateral .......................................................................... | $393,867 | $— | $— | $— | $393,867 |
Liabilities: | |||||
Financial instruments sold, not yet purchased: | |||||
Corporate equity securities .................................................................................. | $6,457,960 | $119,236 | $167 | $— | $6,577,363 |
Corporate debt securities ..................................................................................... | — | 3,196,057 | 555 | — | 3,196,612 |
Collateralized debt obligations and collateralized loan obligations ............... | — | 1,000 | — | — | 1,000 |
U.S. government and federal agency securities ................................................ | 1,590,146 | 16 | — | — | 1,590,162 |
Municipal securities .............................................................................................. | — | 88 | — | — | 88 |
Sovereign obligations ............................................................................................ | 688,027 | 837,099 | — | — | 1,525,126 |
Residential mortgage-backed securities ............................................................ | — | 2,041 | — | — | 2,041 |
Loans ....................................................................................................................... | — | 264,838 | 921 | — | 265,759 |
Derivatives .............................................................................................................. | 56 | 6,858,114 | 43,253 | (5,600,436) | 1,300,987 |
Total financial instruments sold, not yet purchased ....................................... | $8,736,189 | $11,278,489 | $44,896 | $(5,600,436) | $14,459,138 |
Other secured financings ...................................................................................... | $— | $412,338 | $11,685 | $— | $424,023 |
Obligation to return securities received as collateral ....................................... | 393,867 | — | — | — | 393,867 |
Long-term debt ....................................................................................................... | — | 2,662,691 | 1,024,067 | — | 3,686,758 |
12 | Jefferies Financial Group Inc. |
November 30, 2025 (1) | |||||
$ in thousands | Level 1 | Level 2 | Level 3 | Counterparty and Cash Collateral Netting (2) | Total |
Assets: | |||||
Financial instruments owned: | |||||
Corporate equity securities .................................................................................. | $7,664,824 | $249,847 | $218,853 | $— | $8,133,524 |
Corporate debt securities ..................................................................................... | — | 5,367,201 | 37,578 | — | 5,404,779 |
Collateralized debt obligations and collateralized loan obligations ............... | — | 645,798 | 40,187 | — | 685,985 |
U.S. government and federal agency securities ................................................ | 2,342,718 | 106,633 | — | — | 2,449,351 |
Municipal securities .............................................................................................. | — | 563,994 | — | — | 563,994 |
Sovereign obligations ............................................................................................ | 860,832 | 815,722 | — | — | 1,676,554 |
Residential mortgage-backed securities ............................................................ | — | 1,827,092 | 6,663 | — | 1,833,755 |
Commercial mortgage-backed securities .......................................................... | — | 10,458 | 348 | — | 10,806 |
Other asset-backed securities ............................................................................. | — | 909,474 | 133,001 | — | 1,042,475 |
Loans and other receivables ................................................................................ | — | 2,111,517 | 127,720 | — | 2,239,237 |
Derivatives .............................................................................................................. | 72 | 5,519,463 | 10,311 | (3,705,764) | 1,824,082 |
Investments at fair value ...................................................................................... | — | 13,567 | 163,107 | — | 176,674 |
Total financial instruments owned, excluding Investments at fair value based on NAV .................................................................................................... | $10,868,446 | $18,140,766 | $737,768 | $(3,705,764) | $26,041,216 |
Securities received as collateral .......................................................................... | $200,495 | $— | $— | $— | $200,495 |
Liabilities: | |||||
Financial instruments sold, not yet purchased: | |||||
Corporate equity securities .................................................................................. | $5,571,534 | $47,631 | $155 | $— | $5,619,320 |
Corporate debt securities ..................................................................................... | — | 2,761,794 | 3,720 | — | 2,765,514 |
Collateralized debt obligations and collateralized loan obligations ............... | — | 627 | — | — | 627 |
U.S. government and federal agency securities ................................................ | 1,913,403 | 4 | — | — | 1,913,407 |
Sovereign obligations ............................................................................................ | 796,564 | 540,555 | — | — | 1,337,119 |
Loans ....................................................................................................................... | — | 184,391 | 9,757 | — | 194,148 |
Derivatives .............................................................................................................. | 24 | 5,429,227 | 45,953 | (3,985,187) | 1,490,017 |
Total financial instruments sold, not yet purchased ....................................... | $8,281,525 | $8,964,229 | $59,585 | $(3,985,187) | $13,320,152 |
Other secured financings ...................................................................................... | $— | $412,510 | $13,454 | $— | $425,964 |
Obligation to return securities received as collateral ...................................... | 200,495 | — | — | — | 200,495 |
Long-term debt ....................................................................................................... | — | 2,671,485 | 1,063,358 | — | 3,734,843 |
February 2026 Form 10-Q | 13 |
14 | Jefferies Financial Group Inc. |
For instruments still held at February 28, 2026, changes in unrealized gains/(losses) included in: | ||||||||||
$ in thousands | Balance at November 30, 2025 | Total gains/ losses (realized and unrealized) (1) | Purchases | Sales | Settlements | Issuances | Net transfers into/ (out of) Level 3 | Balance at February 28, 2026 | Earnings (1) | Other comprehensive income (1) |
Assets: | ||||||||||
Financial instruments owned: | ||||||||||
Corporate equity securities ... | $218,853 | $(6,089) | $12,452 | $(3,342) | $(397) | $— | $(2,994) | $218,483 | $(6,456) | $— |
Corporate debt securities ...... | 37,578 | 1,716 | 66,717 | (66,617) | (629) | — | 11,990 | 50,755 | (579) | — |
CDOs and CLOs ....................... | 40,187 | (7,026) | 39,519 | (11,654) | — | — | 429 | 61,455 | (5,505) | — |
RMBS ........................................ | 6,663 | (127) | — | — | (402) | — | — | 6,134 | (127) | — |
CMBS ........................................ | 348 | 7 | — | — | — | — | — | 355 | 7 | — |
Other ABS ................................. | 133,001 | (45,135) | 119,288 | (7,909) | (2,919) | — | 48,388 | 244,714 | (45,257) | — |
Loans and other receivables . | 127,720 | (973) | 214,243 | (207,158) | (790) | — | (47,646) | 85,396 | 2,488 | — |
Investments at fair value ....... | 163,107 | 4,636 | 250 | (23) | (775) | — | — | 167,195 | 3,895 | — |
Liabilities: | ||||||||||
Financial instruments sold, not yet purchased: | ||||||||||
Corporate equity securities ... | $155 | $12 | $— | $— | $— | $— | $— | $167 | $(12) | $— |
Corporate debt securities ...... | 3,720 | 192 | — | — | — | — | (3,357) | 555 | (192) | — |
CDOs and CLOs ....................... | — | 3 | — | — | (3) | — | — | — | — | — |
Loans ........................................ | 9,757 | (40) | (697) | 725 | — | — | (8,824) | 921 | (1,687) | — |
Net derivatives (2) ................... | 35,642 | (11,191) | (5,332) | — | 1,484 | 7,638 | 321 | 28,562 | 7,430 | — |
Other secured financings ....... | 13,454 | (144) | — | 120 | (1,745) | — | — | 11,685 | 134 | |
Long-term debt ........................ | 1,063,358 | (18,984) | — | — | (23,695) | 6,737 | (3,349) | 1,024,067 | (34,884) | 53,868 |
February 2026 Form 10-Q | 15 |
For instruments still held at February 28, 2025, changes in unrealized gains/(losses) included in: | ||||||||||
$ in thousands | Balance at November 30, 2024 | Total gains/ losses (realized and unrealized) (1) | Purchases | Sales | Settlements | Issuances | Net transfers into/ (out of) Level 3 | Balance at February 28, 2025 | Earnings (1) | Other comprehensive income (1) |
Assets: | ||||||||||
Financial instruments owned: | ||||||||||
Corporate equity securities ....................... | $239,364 | $2,864 | $1,703 | $(1,016) | $— | $— | $(30,506) | $212,409 | $5,300 | $— |
Corporate debt securities | 24,931 | (1,002) | 6,753 | (895) | — | — | (3,862) | 25,925 | (1,248) | — |
CDOs and CLOs ................. | 63,976 | (4,646) | 17,177 | (9,981) | — | — | 5,301 | 71,827 | (4,664) | — |
Sovereign obligations ....... | 172 | 2 | — | (174) | — | — | (1) | — | ||
RMBS .................................. | 7,714 | (167) | — | — | (21) | — | — | 7,526 | (59) | — |
CMBS .................................. | 477 | (6) | — | — | — | — | — | 471 | — | — |
Other ABS ........................... | 103,214 | (1,889) | 54,165 | (4,709) | (2,312) | — | (1,150) | 147,319 | (1,318) | — |
Loans and other receivables .................... | 152,586 | (949) | 78,763 | (53,590) | (9,170) | — | (13,876) | 153,764 | (1,545) | — |
Investments at fair value . | 137,865 | 393 | 21,288 | — | (1,665) | — | — | 157,881 | 393 | — |
Liabilities: | ||||||||||
Financial instruments sold, not yet purchased: | ||||||||||
Corporate equity securities ....................... | $208 | $(72) | $— | $454 | $— | $— | $— | $590 | $72 | $— |
Corporate debt securities | 165 | (40) | (383) | 1,025 | — | — | 346 | 1,113 | 24 | — |
RMBs .................................. | — | — | — | 15 | — | — | — | 15 | — | — |
CMBS .................................. | 1,153 | 1 | — | 35 | — | — | (35) | 1,154 | (1) | — |
Loans .................................. | 16,864 | 301 | (1,917) | 75 | — | — | (14,475) | 848 | 89 | — |
Net derivatives (2) ............. | 22,286 | (16,020) | — | 22,588 | (279) | 299 | 13,202 | 42,076 | 14,559 | — |
Other secured financings . | 14,884 | (1,938) | — | — | (241) | — | — | 12,705 | 1,938 | — |
Long-term debt .................. | 821,903 | (55,177) | — | — | — | 124,554 | (30,596) | 860,684 | 29,428 | 25,749 |
16 | Jefferies Financial Group Inc. |
February 2026 Form 10-Q | 17 |
February 28, 2026 | |||||||
Financial Instruments Owned | Fair Value (in thousands) | Valuation Technique | Significant Unobservable Input(s) | Input / Range | Weighted Average | ||
Corporate equity securities ..................... | $218,483 | ||||||
Non-exchange-traded securities | Market approach | Price | $0 | - | $1,115 | $90 | |
Volatility benchmarking | Volatility | 45% | - | 49% | 48% | ||
Corporate debt securities ........................ | $50,755 | Market approach | Price | $58 | - | $122 | $92 |
Discounted cash flows | Discount rate/yield | 22% | - | 26% | 24% | ||
CDOs and CLOs .......................................... | $31,965 | Discounted cash flows | Constant prepayment rate | 15% | - | 20% | 16% |
Constant default rate | 2% | — | |||||
Loss severity | 30% | — | |||||
Discount rate/yield | 13% | - | 15% | 14% | |||
Market approach | Price | $98 | - | $118 | $101 | ||
RMBS ........................................................... | $6,134 | Discounted cash flows | Constant prepayment rate | 10% | — | ||
Constant default rate | 0.5% | — | |||||
Loss severity | 45% | — | |||||
Discount rate/yield | 20% | — | |||||
Other ABS ................................................... | $242,697 | Discounted cash flows | Discount rate/yield | 10.9% | - | 15.8% | 15.2% |
Cumulative loss rate | 10.5% | - | 17.4% | 16.5% | |||
Duration (years) | 1.1 | - | 1.5 | 1.2 | |||
Market approach | Price | $118 | - | $135 | $132 | ||
Scenario analysis | Estimated recovery percentage | 64% | - | 69% | 68% | ||
Loans and other receivables ................... | $85,396 | Market approach | Price | $8 | - | $118 | $106 |
Scenario analysis | Estimated recovery percentage | 18% | - | 222% | 92% | ||
Derivatives .................................................. | $11,104 | ||||||
Embedded options | Market approach | Basis points upfront | 0.3 | - | 0.5 | 0.4 | |
Equity options | Volatility benchmarking | Volatility | 51% | — | |||
Investments at fair value .......................... | $161,250 | ||||||
Private equity securities | Market approach | Price | $0 | - | $27,989 | $2,838 | |
Discount rate/yield | 28% | — | |||||
Estimated revenue | $29,760,909 | — | |||||
Financial Instruments Sold, Not Yet Purchased: | |||||||
Derivatives .................................................. | $43,253 | ||||||
Equity options | Volatility benchmarking | Volatility | 39% | - | 67% | 53% | |
Embedded options | Market approach | Basis points upfront | 7.2 | - | 19.9 | 12.8 | |
Other secured financings ......................... | $11,685 | Scenario analysis | Estimated recovery percentage | 74% | - | 100% | 95% |
Market approach | Price | $117 | - | $118 | $118 | ||
Long-term debt .......................................... | $1,024,067 | ||||||
Structured notes | Market approach | Price | $70 | - | $120 | $100 | |
18 | Jefferies Financial Group Inc. |
November 30, 2025 | |||||||
Financial Instruments Owned | Fair Value (in thousands) | Valuation Technique | Significant Unobservable Input(s) | Input / Range | Weighted Average | ||
Corporate equity securities ..................... | $218,853 | ||||||
Non-exchange-traded securities | Market approach | Price | $0 | - | $486 | $85 | |
Volatility benchmarking | Volatility | 44% | - | 48% | 47% | ||
Corporate debt securities ........................ | $37,578 | Market approach | Price | $49 | - | $121 | $72 |
Discounted cash flows | Discount rate/yield | 18% | - | 20% | 19% | ||
Scenario analysis | Estimated recovery percentage | 30% | — | ||||
CDOs and CLOs .......................................... | $25,824 | Discounted cash flows | Constant prepayment rate | 20% | — | ||
Constant default rate | 2% | — | |||||
Loss severity | 30% | — | |||||
Discount rate/yield | 17% | — | |||||
Market approach | Price | $98 | - | $100 | $99 | ||
RMBS ........................................................... | $6,663 | Discounted cash flows | Constant prepayment rate | 12% | — | ||
Constant default rate | 0.3% | — | |||||
Loss severity | 20% | — | |||||
Discount rate/yield | 15% | — | |||||
Other ABS ................................................... | $129,693 | Discounted cash flows | Discount rate/yield | 15.5% | - | 15.7% | 15.6% |
Cumulative loss rate | 16.0% | - | 16.4% | 16.2% | |||
Duration (years) | 1.1 | - | 1.2 | 1.1 | |||
Market approach | Price | $116 | - | $133 | $130 | ||
Scenario analysis | Estimated recovery percentage | 66% | — | ||||
Loans and other receivables ................... | $127,720 | Market approach | Price | $67 | - | $129 | $97 |
Scenario analysis | Estimated recovery percentage | 8% | - | 100% | 35% | ||
Derivatives .................................................. | $6,094 | ||||||
Embedded options | Market approach | Basis points upfront | 0.4 | - | 0.5 | 0.5 | |
Equity options | Volatility benchmarking | Volatility | 34% | — | |||
Investments at fair value .......................... | $157,162 | ||||||
Private equity securities | Market approach | Price | $0 | - | $27,989 | $2,722 | |
Discount rate/yield | 28% | — | |||||
Estimated revenue | $29,818,082 | — | |||||
Financial Instruments Sold, Not Yet Purchased: | |||||||
Corporate debt securities ........................ | $3,720 | Scenario analysis | Estimated recovery percentage | 30% | — | ||
Loans ........................................................... | $9,757 | Market approach | Price | $100 | - | $129 | $117 |
Scenario analysis | Estimated recovery percentage | 30% | — | ||||
Derivatives .................................................. | $45,953 | ||||||
Equity options | Volatility benchmarking | Volatility | 34% | - | 61% | 58% | |
Embedded options | Market approach | Basis points upfront | 0.0 | - | 21.0 | 13.3 | |
Other secured financings ......................... | $13,454 | Scenario analysis | Estimated recovery percentage | 74% | - | 100% | 96% |
Market approach | Price | $114 | - | $117 | $115 | ||
Long-term debt .......................................... | $1,063,358 | ||||||
Structured notes | Market approach | Price | $72 | - | $120 | $101 | |
February 2026 Form 10-Q | 19 |
Three Months Ended February 28, | ||
$ in thousands | 2026 | 2025 |
Financial instruments owned: | ||
Loans and other receivables (1) ............................................. | $(28,722) | $13,283 |
Other secured financings: | ||
Other changes in fair value (1) ................................................ | $(309) | $1,938 |
Long-term debt: | ||
Changes in instrument-specific credit risk (2) ...................... | $77,896 | $37,898 |
Other changes in fair value (1) ................................................ | (58,916) | 16,944 |
$ in thousands | February 28, 2026 | November 30, 2025 |
Financial instruments owned: | ||
Loans and other receivables (2) ................................ | $2,219,310 | $2,378,747 |
Loans and other receivables on nonaccrual status and/or 90 days or greater past due (2) ..... | 420,878 | 319,394 |
Loans and other receivables 90 days or greater past due (2) .............................................. | 70,748 | 100,300 |
Long-term debt ............................................................ | 222,020 | 166,273 |
Other secured financings ........................................... | (4,798) | 237 |
$ in thousands | February 28, 2026 | November 30, 2025 |
Financial instruments owned: | ||
Loans and other receivables on nonaccrual status and/or 90 days or greater past due ........................... | $109,143 | $119,900 |
Loans and other receivables 90 days or greater past due ..................................................................... | 66,657 | 47,000 |
20 | Jefferies Financial Group Inc. |
February 28, 2026 (1) | ||||
Assets | Liabilities | |||
$ in thousands | Fair Value | Number of Contracts (2) | Fair Value | Number of Contracts (2) |
Derivatives designated as accounting hedges: | ||||
Interest rate contracts: | ||||
Cleared OTC ........................................ | $3,515 | 3 | $1,256 | 1 |
Foreign exchange contracts: | ||||
Bilateral OTC ....................................... | 10,449 | 5 | 2,543 | 6 |
Total derivatives designated as accounting hedges ............................ | 13,964 | 3,799 | ||
Derivatives not designated as accounting hedges: | ||||
Interest rate contracts: | ||||
Exchange-traded ................................ | 529 | 44,784 | 56 | 48,774 |
Cleared OTC ........................................ | 2,331,733 | 8,403 | 2,356,258 | 8,865 |
Bilateral OTC ....................................... | 267,009 | 1,702 | 577,234 | 683 |
Foreign exchange contracts: | ||||
Exchange-traded ................................ | — | 36 | — | 22 |
Bilateral OTC ....................................... | 149,495 | 35,501 | 118,551 | 10,816 |
Equity contracts: | ||||
Exchange-traded ................................ | 2,553,216 | 3,135,250 | 1,875,392 | 2,233,288 |
Bilateral OTC ....................................... | 1,693,580 | 53,207 | 1,901,935 | 44,644 |
Commodity contracts: | ||||
Exchange-traded ................................ | 3,197 | 431 | 61 | 427 |
Bilateral OTC ....................................... | 4,445 | 7,198 | 9,626 | 8,209 |
Credit contracts: | ||||
Cleared OTC ........................................ | 1,402 | 71 | 4,800 | 10 |
Bilateral OTC ....................................... | 75,525 | 33 | 53,711 | 19 |
Total derivatives not designated as accounting hedges ....................... | 7,080,131 | 6,897,624 | ||
Total gross derivative assets/ liabilities: | ||||
Exchange-traded ................................ | 2,556,942 | 1,875,509 | ||
Cleared OTC ........................................ | 2,336,650 | 2,362,314 | ||
Bilateral OTC ....................................... | 2,200,503 | 2,663,600 | ||
Amounts offset in our Consolidated Statements of Financial Condition (3): | ||||
Exchange-traded ................................ | (1,318,353) | (1,318,353) | ||
Cleared OTC ........................................ | (2,335,539) | (2,338,936) | ||
Bilateral OTC ....................................... | (1,533,021) | (1,943,147) | ||
Net amounts per Consolidated Statements of Financial Condition (4) ................................. | $1,907,182 | $1,300,987 | ||
February 2026 Form 10-Q | 21 |
November 30, 2025 (1) | ||||
Assets | Liabilities | |||
$ in thousands | Fair Value | Number of Contracts (2) | Fair Value | Number of Contracts (2) |
Derivatives designated as accounting hedges: | ||||
Interest rate contracts: | ||||
Cleared OTC ......................................... | $— | — | $2,519 | 4 |
Foreign exchange contracts: | ||||
Bilateral OTC ........................................ | 40,444 | 7 | 574 | 2 |
Total derivatives designated as accounting hedges ............................. | 40,444 | 3,093 | ||
Derivatives not designated as accounting hedges: | ||||
Interest rate contracts: | ||||
Exchange-traded ................................. | 232 | 33,107 | 24 | 36,811 |
Cleared OTC ......................................... | 806,009 | 8,148 | 804,799 | 8,325 |
Bilateral OTC ........................................ | 285,053 | 1,576 | 614,104 | 823 |
Foreign exchange contracts: | ||||
Bilateral OTC ........................................ | 115,068 | 34,418 | 103,297 | 12,028 |
Equity contracts: | ||||
Exchange-traded ................................. | 2,776,601 | 3,275,468 | 2,156,730 | 2,298,561 |
Bilateral OTC ........................................ | 1,367,089 | 57,254 | 1,670,215 | 36,481 |
Commodity contracts: | ||||
Exchange-traded ................................. | 452 | 627 | 73 | 668 |
Bilateral OTC ....................................... | 6,381 | 18,497 | 7,293 | 15,417 |
Credit contracts: | ||||
Cleared OTC ......................................... | 10,960 | 58 | 17,120 | 13 |
Bilateral OTC ........................................ | 121,557 | 17 | 98,456 | 15 |
Total derivatives not designated as accounting hedges ............................. | 5,489,402 | 5,472,111 | ||
Total gross derivative assets/ liabilities: | ||||
Exchange-traded ................................. | 2,777,285 | 2,156,827 | ||
Cleared OTC ......................................... | 816,969 | 824,438 | ||
Bilateral OTC ........................................ | 1,935,592 | 2,493,939 | ||
Amounts offset in our Consolidated Statements of Financial Condition (3): | ||||
Exchange-traded ................................. | (1,600,969) | (1,600,969) | ||
Cleared OTC ......................................... | (815,810) | (819,548) | ||
Bilateral OTC ........................................ | (1,288,985) | (1,564,670) | ||
Net amounts per Consolidated Statements of Financial Condition (4) .................................. | $1,824,082 | $1,490,017 | ||
$ in thousands | Three Months Ended February 28, | |
Gains (Losses) | 2026 | 2025 |
Interest rate swaps (1) .............................................................. | $1,121 | $(5,628) |
Long-term debt ........................................................................... | (10,916) | (6,691) |
Total ............................................................................................. | $(9,795) | $(12,319) |
$ in thousands | Three Months Ended February 28, | |
Gains (Losses) | 2026 | 2025 |
Foreign exchange contracts ..................................................... | $(27,965) | $16,854 |
Total ............................................................................................. | $(27,965) | $16,854 |
$ in thousands | Three Months Ended February 28, | |
Gains (Losses) | 2026 | 2025 |
Interest rate contracts ............................................................... | $267 | $(22,502) |
Foreign exchange contracts ..................................................... | (1,731) | (4,875) |
Equity contracts ......................................................................... | (119,375) | 494,216 |
Commodity contracts ................................................................ | 4,282 | 5,734 |
Credit contracts.......................................................................... | (3,058) | 1,051 |
Total ............................................................................................. | $(119,615) | $473,624 |
22 | Jefferies Financial Group Inc. |
OTC Derivative Assets (1) (2) (3) | |||||
$ in thousands | 0 – 12 Months | 1 – 5 Years | Greater Than 5 Years | Cross- Maturity Netting (4) | Total |
Commodity swaps, options and forwards .................................... | $4,444 | $— | $— | $— | $4,444 |
Equity options and forwards ........ | 88,003 | 295,129 | 5,110 | (269) | 387,973 |
Credit default swaps ..................... | 1,012 | 25,469 | — | — | 26,481 |
Total return swaps ......................... | 174,444 | 180,251 | — | (5,324) | 349,371 |
Foreign currency forwards, swaps and options ................... | 86,314 | 520 | — | (520) | 86,314 |
Fixed income forwards ................. | 49,222 | — | — | — | 49,222 |
Interest rate swaps, options and forwards .................................... | 57,588 | 152,609 | 17,081 | (32,665) | 194,613 |
Total ................................................. | $461,027 | $653,978 | $22,191 | $(38,778) | 1,098,418 |
Cross-product counterparty netting ........................................ | (61,334) | ||||
Total OTC derivative assets included in Financial instruments owned .................. | $1,037,084 | ||||
OTC Derivative Liabilities (1) (2) (3) | |||||
$ in thousands | 0 – 12 Months | 1 – 5 Years | Greater Than 5 Years | Cross- Maturity Netting (4) | Total |
Commodity swaps, options and forwards .................................... | $9,624 | $— | $— | $— | $9,624 |
Equity options and forwards ........ | 52,569 | 293,741 | 3,879 | (269) | 349,920 |
Credit default swaps ...................... | — | 5,643 | — | — | 5,643 |
Total return swaps ......................... | 331,760 | 316,070 | 28 | (5,324) | 642,534 |
Foreign currency forwards, swaps and options ................... | 47,768 | 216 | — | (520) | 47,464 |
Fixed income forwards ................. | 797 | — | — | — | 797 |
Interest rate swaps, options and forwards .................................... | 34,569 | 108,293 | 421,001 | (32,665) | 531,198 |
Total ................................................. | $477,087 | $723,963 | $424,908 | $(38,778) | 1,587,180 |
Cross-product counterparty netting ........................................ | (61,334) | ||||
Total OTC derivative liabilities included in Financial instruments sold, not yet purchased ................................. | $1,525,846 | ||||
Counterparty credit quality (1): | $ in thousands |
A- or higher ............................................................................................... | $180,384 |
BBB- to BBB+ ........................................................................................... | 100,766 |
BB+ or lower ............................................................................................. | 332,366 |
Unrated ..................................................................................................... | 423,568 |
Total .......................................................................................................... | $1,037,084 |
February 28, 2026 | |||
External Credit Rating | |||
$ in millions | Investment Grade | Non- investment Grade | Total Notional |
Credit protection sold: | |||
Index credit default swaps ..................... | $119.8 | $808.5 | $928.3 |
November 30, 2025 | |||
External Credit Rating | |||
$ in millions | Investment Grade | Non- investment Grade | Total Notional |
Credit protection sold: | |||
Index credit default swaps ..................... | $51.4 | $873.2 | $924.6 |
$ in millions | February 28, 2026 | November 30, 2025 |
Derivative instrument liabilities with credit-risk- related contingent features .................................... | $98.9 | $107.3 |
Collateral posted ........................................................... | (13.2) | (70.0) |
Collateral received ........................................................ | 611.4 | 343.3 |
Return of and additional collateral required in the event of a credit rating downgrade below investment grade (1) ............................................... | 697.1 | 380.5 |
February 2026 Form 10-Q | 23 |
February 28, 2026 | ||||
$ in millions | Securities Lending Arrangements | Repurchase Agreements | Obligation to Return Securities Received as Collateral, at Fair Value | Total |
Collateral Pledged: | ||||
Corporate equity securities ..................... | $1,954.8 | $1,604.3 | $168.4 | $3,727.5 |
Corporate debt securities ..................... | 594.4 | 3,465.1 | — | 4,059.5 |
Mortgage-backed and asset-backed securities ..................... | 89.0 | 2,208.7 | — | 2,297.7 |
U.S. government and federal agency securities ..................... | 22.1 | 6,057.8 | — | 6,079.9 |
Municipal securities ........ | — | 421.7 | — | 421.7 |
Sovereign obligations ..... | 30.1 | 1,666.5 | 225.5 | 1,922.1 |
Loans and other receivables .................. | — | 406.9 | — | 406.9 |
Total .................................. | $2,690.4 | $15,831.0 | $393.9 | $18,915.3 |
November 30, 2025 | ||||
$ in millions | Securities Lending Arrangements | Repurchase Agreements | Obligation to Return Securities Received as Collateral, at Fair Value | Total |
Collateral Pledged: | ||||
Corporate equity securities ..................... | $1,875.2 | $1,028.6 | $— | $2,903.8 |
Corporate debt securities ..................... | 589.7 | 3,271.5 | — | 3,861.2 |
Mortgage-backed and asset-backed securities ..................... | — | 2,062.6 | — | 2,062.6 |
U.S. government and federal agency securities ..................... | 21.6 | 9,183.1 | — | 9,204.7 |
Municipal securities ........ | — | 422.3 | — | 422.3 |
Sovereign obligations ..... | 54.3 | 1,487.7 | 200.5 | 1,742.5 |
Loans and other receivables .................. | — | 805.4 | — | 805.4 |
Total .................................. | $2,540.8 | $18,261.2 | $200.5 | $21,002.5 |
February 28, 2026 | |||||
$ in millions | Overnight and Continuous | Up to 30 Days | 31-90 Days | Greater than 90 Days | Total |
Securities lending arrangements .............. | $2,252.7 | $89.0 | $150.7 | $198.0 | $2,690.4 |
Repurchase agreements . | 1,719.2 | 7,290.3 | 3,104.3 | 3,717.2 | 15,831.0 |
Obligation to return securities received as collateral, at fair value ............................. | 393.9 | — | — | — | 393.9 |
Total ................................... | $4,365.8 | $7,379.3 | $3,255.0 | $3,915.2 | $18,915.3 |
November 30, 2025 | |||||
$ in millions | Overnight and Continuous | Up to 30 Days | 31-90 Days | Greater than 90 Days | Total |
Securities lending arrangements .............. | $2,072.7 | $123.8 | $81.3 | $263.0 | $2,540.8 |
Repurchase agreements . | 2,108.1 | 9,569.4 | 2,959.8 | 3,623.9 | 18,261.2 |
Obligation to return securities received as collateral, at fair value ............................. | 200.5 | — | — | — | 200.5 |
Total ................................... | $4,381.3 | $9,693.2 | $3,041.1 | $3,886.9 | $21,002.5 |
24 | Jefferies Financial Group Inc. |
February 28, 2026 | ||||||
$ in millions | Gross Amounts | Netting in Consolidated Statements of Financial Condition | Net Amounts in Consolidated Statements of Financial Condition | Additional Amounts Available for Setoff (1) | Available Collateral (2) | Net Amount (3) |
Assets: | ||||||
Securities borrowing arrangements ................................... | $7,675.9 | $— | $7,675.9 | $(682.6) | $(1,762.3) | $5,231.0 |
Reverse repurchase agreements ......................................... | 13,234.8 | (5,450.7) | 7,784.1 | (1,970.8) | (5,766.1) | 47.2 |
Securities received as collateral, at fair value ................... | 393.9 | — | 393.9 | — | (393.9) | — |
Liabilities: | ||||||
Securities lending arrangements ........................................ | $2,690.4 | $— | $2,690.4 | $(682.6) | $(1,908.3) | $99.5 |
Repurchase agreements ....................................................... | 15,831.0 | (5,450.7) | 10,380.3 | (1,970.8) | (8,109.0) | 300.5 |
Obligation to return securities received as collateral, at fair value ............................................................................. | 393.9 | — | 393.9 | — | (393.9) | — |
November 30, 2025 | ||||||
$ in millions | Gross Amounts | Netting in Consolidated Statements of Financial Condition | Net Amounts in Consolidated Statements of Financial Condition | Additional Amounts Available for Setoff (1) | Available Collateral (2) | Net Amount (4) |
Assets: | ||||||
Securities borrowing arrangements ................................... | $8,295.2 | $— | $8,295.2 | $(512.3) | $(1,913.5) | $5,869.4 |
Reverse repurchase agreements ......................................... | 14,553.6 | (6,104.5) | 8,449.1 | (2,727.2) | (5,670.2) | 51.7 |
Securities received as collateral, at fair value ................... | 200.5 | — | 200.5 | — | (200.5) | — |
Liabilities: | ||||||
Securities lending arrangements ........................................ | $2,540.8 | $— | $2,540.8 | $(512.3) | $(1,920.0) | $108.5 |
Repurchase agreements ....................................................... | 18,261.2 | (6,104.5) | 12,156.7 | (2,727.2) | (8,666.7) | 762.8 |
Obligation to return securities received as collateral, at fair value ............................................................................. | 200.5 | — | 200.5 | — | (200.5) | — |
February 2026 Form 10-Q | 25 |
Three Months Ended February 28, | ||
$ in millions | 2026 | 2025 |
Transferred assets .................................................................... | $1,368.7 | $42.0 |
Proceeds on new securitizations ............................................ | 1,368.7 | 42.0 |
Cash flows received on retained interests ............................. | 14.9 | 6.4 |
$ in millions | February 28, 2026 | November 30, 2025 | ||
Securitization Type | Total Assets | Retained Interests | Total Assets | Retained Interests |
U.S. government agency RMBS ... | $333.6 | $6.0 | $405.7 | $4.0 |
U.S. government agency CMBS ... | 1,104.9 | 1.1 | 1,108.2 | 1.1 |
CLOs ................................................. | 10,907.4 | 50.3 | 10,970.6 | 436.6 |
Consumer and other loans ........... | 2,835.1 | 108.7 | 2,596.7 | 104.9 |
$ in millions | February 28, 2026 | November 30, 2025 |
Financial instruments owned ................. | $— | $456.1 |
Other secured financings ....................... | — | 456.1 |
26 | Jefferies Financial Group Inc. |
February 28, 2026 (1) | ||
$ in millions | Secured Funding Vehicles | Other |
Cash ................................................................................... | $0.1 | $2.1 |
Segregated cash .............................................................. | — | 2.3 |
Financial instruments owned ........................................ | 14.9 | 163.5 |
Securities purchased under agreements to resell (2) | 2,860.1 | 0.8 |
Receivables from brokers (3) ......................................... | — | 69.6 |
Other receivables ............................................................. | 0.5 | 3.1 |
Other assets (4) ............................................................... | — | 86.1 |
Total assets ...................................................................... | $2,875.6 | $327.5 |
Financial instruments sold, not yet purchased ........... | $— | $94.8 |
Other secured financings (5) ......................................... | 2,874.2 | 18.7 |
Payables to brokers and dealers ................................... | — | 1.2 |
Other liabilities (6) ........................................................... | 6.6 | 85.7 |
Long-term debt ................................................................ | — | 70.2 |
Total liabilities ................................................................. | $2,880.8 | $270.6 |
November 30, 2025 (1) | ||
$ in millions | Secured Funding Vehicles | Other |
Cash ................................................................................... | $— | $1.7 |
Segregated cash .............................................................. | — | 1.4 |
Financial instruments owned ......................................... | 1.4 | 142.6 |
Securities purchased under agreements to resell (2) | 3,043.4 | 121.5 |
Receivables from brokers (3) ......................................... | — | 104.1 |
Other receivables ............................................................. | — | 3.1 |
Other assets (4) ............................................................... | — | 87.1 |
Total assets ...................................................................... | $3,044.8 | $461.5 |
Financial instruments sold, not yet purchased ........... | $— | $83.8 |
Other secured financings (5) ......................................... | 3,042.4 | 21.6 |
Repurchase agreement ................................................... | — | 147.8 |
Other liabilities (6) ........................................................... | 7.3 | 85.1 |
Long-term debt ................................................................ | — | 70.2 |
Total liabilities ................................................................. | $3,049.7 | $408.5 |
February 28, 2026 | ||||
Carrying Amount | Maximum Exposure to Loss | VIE Assets | ||
$ in millions | Assets | Liabilities | ||
CLOs ...................................... | $739.9 | $51.7 | $6,221.1 | $20,689.2 |
Asset-backed vehicles ........ | 1,392.5 | — | 1,900.2 | 7,582.6 |
Related party private equity vehicles ............................ | 3.5 | — | 13.4 | 61.3 |
Other investment vehicles .. | 1,715.1 | — | 1,908.0 | 71,800.9 |
Total ....................................... | $3,851.0 | $51.7 | $10,042.7 | $100,134.0 |
November 30, 2025 | ||||
Carrying Amount | Maximum Exposure to Loss | VIE Assets | ||
$ in millions | Assets | Liabilities | ||
CLOs ...................................... | $1,245.3 | $96.5 | $7,055.5 | $17,600.4 |
Asset-backed vehicles ........ | 1,207.3 | — | 1,797.1 | 6,616.0 |
Related party private equity vehicles ............................ | 3.5 | — | 14.3 | 57.7 |
Other investment vehicles .. | 1,722.7 | — | 2,009.6 | 74,007.9 |
Total ....................................... | $4,178.8 | $96.5 | $10,876.5 | $98,282.0 |
February 2026 Form 10-Q | 27 |
$ in millions | February 28, 2026 | November 30, 2025 |
Total Investments in and loans to related parties ........................................................ | $1,560.6 | $1,496.1 |
28 | Jefferies Financial Group Inc. |
Three Months Ended February 28, | ||
$ in millions | 2026 | 2025 |
Total equity method pickup earnings recognized in Other revenues ................. | $24.5 | $7.1 |
Three Months Ended February 28, | ||
$ in millions | 2026 | 2025 |
Unfunded commitment fees ........................ | $0.3 | $0.3 |
$ in millions | February 28, 2026 | November 30, 2025 |
Total assets .................................................... | $6,903.7 | $7,356.1 |
Total liabilities ................................................ | 5,467.6 | 5,959.2 |
Total mezzanine equity ................................. | 14.9 | 14.8 |
$ in millions | February 28, 2026 | November 30, 2025 |
Our total investment balance ....................... | $710.6 | $691.0 |
Three Months Ended February 28, | ||
$ in millions | 2026 | 2025 |
Net earnings (losses) attributable to members .................................................... | $33.1 | $(1.7) |
Three Months Ended February 28, | ||
$ in millions | 2026 | 2025 |
Origination and syndication fee revenues (1) ............................................................... | $53.1 | $60.2 |
Origination fee expenses (1) ........................ | 18.6 | 18.5 |
CLO placement and structuring fee revenues (2) ............................................. | 1.0 | 0.2 |
Placement and referral fees (3) ................... | 6.3 | 0.6 |
Underwriting revenues (expenses) (4) ....... | (1.0) | — |
Service fees (5) .............................................. | 65.6 | 54.4 |
$ in millions | February 28, 2026 | November 30, 2025 |
Assets | ||
Financial instruments owned, at fair value (1) ..................................................................... | $2.6 | $10.9 |
Other assets (2) ............................................. | 17.0 | 7.0 |
Liabilities | ||
Financial instruments sold, not yet purchased, at fair value (1) (3) ............... | $7.5 | $0.4 |
Payables: | ||
Brokers, dealers and clearing organizations (4) ...................................... | 16.8 | 17.2 |
Customers (5) ........................................... | 4.8 | 3.3 |
February 2026 Form 10-Q | 29 |
$ in millions | February 28, 2026 | November 30, 2025 |
Total assets ................................................... | $5,146.4 | $5,269.8 |
Total liabilities ............................................... | 3,686.4 | 3,953.1 |
Total noncontrolling interest ....................... | 521.0 | 369.0 |
$ in millions | February 28, 2026 | November 30, 2025 |
Our total investment balance ....................... | $426.6 | $429.7 |
Three Months Ended February 28, | ||
$ in millions | 2026 | 2025 |
Net earnings attributable to members ....... | $40.5 | $37.8 |
Three Months Ended February 28, | ||
$ in millions | 2026 | 2025 |
Distributions ................................................... | $21.2 | $16.1 |
$ in millions | February 28, 2026 | November 30, 2025 |
Total assets .................................................... | $309.4 | $312.6 |
Total liabilities ................................................ | 463.7 | 470.7 |
February 28, 2026 | November 30, 2025 | |
Our total investment balance ....................... | $99.5 | $98.7 |
Three Months Ended February 28, | ||
$ in millions | 2026 | 2025 |
Net earnings ................................................... | $3.8 | $4.6 |
Three Months Ended February 28, | ||
$ in millions | 2026 | 2025 |
Net gains (losses) from our investments in JCP Fund V ............................................ | $— | $(0.2) |
Three Months Ended (1) | ||
$ in millions | December 31, 2025 | December 31, 2024 |
Net increase (decrease) in net assets resulting from operations ....................................................... | $— | $(0.6) |
30 | Jefferies Financial Group Inc. |
$ in millions | December 31, 2025 (1) | September 30, 2025 (1) |
Total assets ............................................................... | $564.6 | $498.4 |
Total liabilities ........................................................... | 20.1 | 0.7 |
Total members’ equity ............................................. | 544.5 | 497.7 |
Three Months Ended (1) | ||
$ in millions | December 31, 2025 | December 31, 2024 |
Net increase in members’ equity resulting from operations ............................................................. | $16.6 | $8.4 |
Three Months Ended February 28, | ||
$ in millions | 2026 | 2025 |
Operating lease income ................................ | $— | $5.6 |
February 2026 Form 10-Q | 31 |
Three Months Ended February 28, | ||
$ in thousands | 2026 | 2025 |
Beginning balance ........................................................ | $3,681 | $5,277 |
Bad debt expense ......................................................... | 10,164 | 1,347 |
Charge-offs ................................................................... | — | (3,076) |
Recoveries collected .................................................... | (1,885) | (1,502) |
Ending balance (1) .............................................................. | $11,960 | $2,046 |
Three Months Ended February 28, 2026 | |||
$ in thousands | Investment Banking and Capital Markets | Asset Management | Total |
Balance, at beginning of period ................... | $1,535,961 | $301,609 | $1,837,570 |
Currency translation and other adjustments .............................................. | 1,281 | 2,115 | 3,396 |
Impairment (1) ................................................ | — | (58,240) | (58,240) |
Reclassification to held for sale (1) ............ | — | (56,850) | (56,850) |
Balance, at end of period ............................. | $1,537,242 | $188,634 | $1,725,876 |
Three Months Ended February 28, 2025 | |||
$ in thousands | Investment Banking and Capital Markets | Asset Management | Total |
Balance, at beginning of period ................... | $1,533,013 | $294,925 | $1,827,938 |
Currency translation and other adjustments .............................................. | (1,151) | (2,140) | (3,291) |
Balance, at end of period ............................. | $1,531,862 | $292,785 | $1,824,647 |
$ in millions | February 28, 2026 | November 30, 2025 |
Investment banking .............................................................. | $702.6 | $702.0 |
Equities and wealth management ...................................... | 256.1 | 255.9 |
Fixed income ......................................................................... | 578.5 | 578.0 |
Asset management .............................................................. | 143.0 | 143.0 |
Other investments ................................................................. | 45.7 | 158.7 |
Total ........................................................................................ | $1,725.9 | $1,837.6 |
February 28, 2026 | Weighted Average Remaining Lives (Years) | |||
$ in thousands | Gross Cost | Accumulated Amortization | Net Carrying Amount | |
Customer relationships (1) ........................................ | $127,693 | $(104,980) | $22,713 | 5.0 |
Trademarks and trade names (1) ............................. | 128,981 | (47,963) | 81,018 | 22.0 |
Exchange and clearing organization membership interests and registrations ........................................ | 8,735 | — | 8,735 | N/A |
Other (1) ....................................................................... | 15,128 | (14,374) | 754 | 2.5 |
Total .............................................................................. | $280,537 | $(167,317) | $113,220 | |
November 30, 2025 | Weighted Average Remaining Lives (Years) | ||||
$ in thousands | Gross Cost | Assets Acquired | Accumulated Amortization | Net Carrying Amount | |
Customer relationships .......................... | $166,328 | $622 | $(116,810) | $50,140 | 4.6 |
Trademarks and trade names ................ | 160,674 | — | (55,948) | 104,726 | 20.6 |
Exchange and clearing organization membership interests and registrations .............................................. | 8,717 | — | — | 8,717 | N/A |
Other ........................................................... | 86,815 | 99 | (47,920) | 38,994 | 2.8 |
Total ........................................................... | $422,534 | $721 | $(220,678) | $202,577 | |
Year | $ in thousands |
Remainder of fiscal year 2026 ............................................................ | $6,535 |
Year ending November 30, 2027 ........................................................ | 8,685 |
Year ending November 30, 2028 ........................................................ | 8,567 |
Year ending November 30, 2029 ........................................................ | 8,380 |
Year ending November 30, 2030 ........................................................ | 8,322 |
Three Months Ended February 28, | ||
$ in thousands | 2026 | 2025 |
Revenues from contracts with customers: | ||
Investment banking .......................................................... | $1,014,955 | $725,661 |
Commissions and other fees ......................................... | 361,073 | 287,965 |
Asset management fees .................................................. | 6,899 | 45,808 |
Real estate revenues ........................................................ | 2,246 | 11,081 |
Internet connection and broadband revenues ............. | 52,412 | 57,804 |
Other contracts with customers ..................................... | 18,064 | 16,107 |
Total revenue from contracts with customers ............ | 1,455,649 | 1,144,426 |
Other sources of revenue: | ||
Principal transactions ...................................................... | 487,498 | 407,230 |
Revenues from strategic affiliates ................................. | 69,292 | 43,449 |
Interest ............................................................................... | 813,119 | 845,171 |
Other .................................................................................. | 45,707 | 32,588 |
Total revenues .................................................................. | $2,871,265 | $2,472,864 |
32 | Jefferies Financial Group Inc. |
Three Months Ended February 28, 2026 | |||
$ in thousands | Investment Banking and Capital Markets | Asset Management | Total |
Major business activity: | |||
Investment banking - Advisory ................ | $527,128 | $— | $527,128 |
Investment banking - Underwriting ......... | 487,827 | — | 487,827 |
Equities (1) ................................................. | 359,381 | — | 359,381 |
Fixed income (1) ........................................ | 1,692 | — | 1,692 |
Asset management ................................... | — | 6,899 | 6,899 |
Other investments ..................................... | — | 72,722 | 72,722 |
Total ............................................................ | $1,376,028 | $79,621 | $1,455,649 |
Primary geographic region: | |||
Americas ..................................................... | $1,042,946 | $25,226 | $1,068,172 |
Europe and the Middle East ..................... | 237,296 | 53,523 | 290,819 |
Asia-Pacific ................................................ | 95,786 | 872 | 96,658 |
Total ............................................................ | $1,376,028 | $79,621 | $1,455,649 |
Three Months Ended February 28, 2025 | |||
$ in thousands | Investment Banking and Capital Markets | Asset Management | Total |
Major business activity: | |||
Investment banking - Advisory ................ | $397,780 | $— | $397,780 |
Investment banking - Underwriting ......... | 327,881 | — | 327,881 |
Equities (1) ................................................. | 286,050 | — | 286,050 |
Fixed income (1) ........................................ | 1,915 | — | 1,915 |
Asset management ................................... | — | 45,808 | 45,808 |
Other investments .................................... | — | 84,992 | 84,992 |
Total ............................................................ | $1,013,626 | $130,800 | $1,144,426 |
Primary geographic region: | |||
Americas ..................................................... | $748,675 | $71,070 | $819,745 |
Europe and the Middle East .................... | 173,121 | 58,794 | 231,915 |
Asia-Pacific ................................................ | 91,830 | 936 | 92,766 |
Total ............................................................ | $1,013,626 | $130,800 | $1,144,426 |
February 2026 Form 10-Q | 33 |
$ in millions | Grant Terms |
RSUs | |
Aggregate grant date fair value ...................................... | $14.3 |
Vesting period ................................................................... | 3-year cliff |
PSUs | |
Aggregate target fair value .............................................. | $14.3 |
Service period .................................................................... | 3 years |
Performance period .......................................................... | Fiscal 2025 to Fiscal 2027 |
Performance target (1) .................................................... | 10% ROTE |
Performance range (2) ..................................................... | 7.5% - 15% ROTE |
Three Months Ended February 28, | ||
$ in millions | 2026 | 2025 |
Restricted cash awards ..................................................... | $132.6 | $115.1 |
Restricted stock and RSUs (1) .......................................... | 50.7 | 35.6 |
Profit sharing plan ............................................................... | 7.8 | 7.4 |
Total compensation cost................................................... | $191.1 | $158.1 |
$ in millions | Remaining Unamortized Amounts | Weighted Average Vesting Period (in Years) |
Non-vested share-based awards .............. | $225.9 | 3.4 |
Restricted cash awards (1) ........................ | 1,229.3 | 3.0 |
Total .............................................................. | $1,455.2 |
$ in thousands | February 28, 2026 | November 30, 2025 |
Bank loans and other credit facilities ........................ | $768,904 | $568,418 |
Fixed rate callable note ............................................... | 1,148,588 | 1,198,788 |
Total short-term borrowings (1) ............................... | $1,917,492 | $1,767,206 |
34 | Jefferies Financial Group Inc. |
$ in thousands | Maturity (Fiscal Years) | February 28, 2026 | November 30, 2025 |
Parent Co. unsecured borrowings | |||
Fixed rate | 2026 | $925,851 | $869,461 |
2027 | 1,118,840 | 1,117,106 | |
2028 | 995,065 | 1,029,501 | |
2029 | 597,501 | 586,495 | |
2030 | 1,051,878 | 1,063,637 | |
2031 and Later | 6,225,104 | 4,782,178 | |
Variable rate | 2026 | 46,087 | 45,235 |
2029 | 1,313 | 1,312 | |
2031 and Later | 71,928 | 71,924 | |
Structured notes (1) | 2026 | 69,176 | 102,743 |
2027 | 96,528 | 94,777 | |
2028 | 152,160 | 176,009 | |
2029 | 138,890 | 178,956 | |
2030 | 431,876 | 443,825 | |
2031 and Later | 2,206,359 | 2,156,638 | |
Total Parent Co. unsecured borrowings (2) .......................................................................................................................................... | 14,128,556 | 12,719,797 | |
Subsidiaries secured borrowings | |||
Fixed rate | 2026 | 112,725 | 166,414 |
2027 | 653,483 | 630,114 | |
2028 | 758,938 | 746,556 | |
2029 | 230,994 | 191,068 | |
Variable rate | 2026 | — | 525,000 |
2027 | 124,559 | 124,458 | |
2028 | 525,000 | — | |
Total Subsidiaries secured borrowings ................................................................................................................................................. | 2,405,699 | 2,383,610 | |
Subsidiaries unsecured borrowings | |||
Fixed rate | 2029 | — | 3,937 |
2030 | — | 1,416 | |
2031 and Later | 641,706 | 633,372 | |
Variable rate | 2026 | — | 100,000 |
2027 | 53,458 | 53,759 | |
Total Subsidiaries unsecured borrowings ............................................................................................................................................. | 695,164 | 792,484 | |
Total long-term debt (3) .......................................................................................................................................................................... | $17,229,419 | $15,895,891 | |
Fair value .................................................................................................................................................................................................... | $17,384,685 | $16,122,970 | |
Weighted-average interest rate (4) ....................................................................................................................................................... | 5.10% | 5.11% | |
Interest rate range (4) .............................................................................................................................................................................. | 0.00% - 7.40% | 0.00% - 7.50% | |
February 2026 Form 10-Q | 35 |
36 | Jefferies Financial Group Inc. |
Three Months Ended February 28, | ||
In thousands, except per share amounts | 2026 | 2025 |
Numerator for earnings per common share from continuing operations: | ||
Net earnings from continuing operations ................................................................................................................................................. | $159,346 | $136,849 |
Less: Net losses attributable to noncontrolling interests ....................................................................................................................... | (15,858) | (6,983) |
Allocation of earnings to participating securities (1) .............................................................................................................................. | (19,504) | (16,039) |
Net earnings from continuing operations attributable to common shareholders for basic earnings per share ......................... | $155,700 | $127,793 |
Net earnings from continuing operations attributable to common shareholders for diluted earnings per share ...................... | $155,700 | $127,793 |
Denominator for earnings per common share: | ||
Weighted average common shares outstanding ..................................................................................................................................... | 206,093 | 206,046 |
Weighted average shares of restricted stock outstanding with future service required ................................................................... | (2,147) | (2,200) |
Weighted average RSUs outstanding with no future service required ................................................................................................. | 11,761 | 10,690 |
Weighted average basic common shares ................................................................................................................................................ | 215,707 | 214,536 |
Stock options and other share-based awards ......................................................................................................................................... | 5,152 | 5,287 |
Senior executive compensation plan RSU awards .................................................................................................................................. | 2,411 | 2,625 |
Weighted average diluted common shares (2) ....................................................................................................................................... | 223,270 | 222,448 |
Earnings per common share: | ||
Basic ............................................................................................................................................................................................................... | $0.72 | $0.60 |
Diluted ............................................................................................................................................................................................................ | $0.70 | $0.57 |
February 2026 Form 10-Q | 37 |
Three Months Ended February 28, 2026 | |||
Declaration Date | Record Date | Payment Date | Per Common Share Amount |
January 7, 2026 | February 17, 2026 | February 27, 2026 | $0.40 |
Three Months Ended February 28, 2025 | |||
Declaration Date | Record Date | Payment Date | Per Common Share Amount |
January 8, 2025 | February 14, 2025 | February 27, 2025 | $0.40 |
$ in thousands | February 28, 2026 | November 30, 2025 |
Net unrealized losses on available-for-sale securities ....................................................................... | $(1,212) | $(1,796) |
Net currency translation adjustments and other ..... | (136,256) | (145,280) |
Net unrealized losses related to instrument- specific credit risk ....................................................... | (141,040) | (200,688) |
Net minimum pension liability .................................... | (36,515) | (36,670) |
Total accumulated other comprehensive loss, net of tax .............................................................................. | $(315,023) | $(384,434) |
Three Months Ended February 28, | ||
$ in thousands | 2026 | 2025 |
Net unrealized gains on instrument-specific credit risk at fair value (1) ....................................................... | $3,307 | $2,538 |
Amortization of defined benefit pension plan actuarial losses (2) ....................................................... | (155) | (759) |
Total reclassifications for the period, net of tax ..... | $3,152 | $1,779 |
Jurisdiction | Tax Year |
United States ........................................................................................... | 2022 |
New York State ........................................................................................ | 2001 |
New York City .......................................................................................... | 2006 |
United Kingdom ....................................................................................... | 2023 |
Germany ................................................................................................... | 2020 |
Hong Kong ............................................................................................... | 2019 |
India ........................................................................................................... | 2010 |
Three Months Ended February 28, | ||
$ in millions | 2026 | 2025 |
Income tax expense ...................................... | $52.9 | $14.2 |
Effective tax rate ............................................ | 24.9% | 9.4% |
Expected Maturity Date (Fiscal Years) | ||||||
$ in millions | 2026 | 2027 | 2028 and 2029 | 2030 and 2031 | 2032 and Later | Maximum Payout |
Equity commitments (1) .... | $14.1 | $115.6 | $— | $0.1 | $123.9 | $253.7 |
Loan commitments (1) ...... | 85.6 | 252.5 | 88.0 | 137.7 | 8.8 | 572.6 |
Loan purchase commitments (2) ................ | 3,607.5 | — | — | — | — | 3,607.5 |
Forward starting reverse repos (3) .............................. | 4,970.2 | — | — | — | — | 4,970.2 |
Forward starting repos (3) | 3,421.7 | — | — | — | — | 3,421.7 |
Other unfunded commitments (1) ................ | 134.2 | 1,516.6 | 1,276.0 | — | 16.5 | 2,943.3 |
Total commitments ........... | $12,233.3 | $1,884.7 | $1,364.0 | $137.8 | $149.2 | $15,769.0 |
38 | Jefferies Financial Group Inc. |
Expected Maturity Date (Fiscal Years) | |||||
$ in millions | 2026 | 2027 | 2028 and 2029 | 2030 and 2031 | Notional/ Maximum Payout |
Guarantee Type: | |||||
Derivative contracts— non-credit related ......... | $8,221.6 | $15,704.9 | $13,773.3 | $1,459.0 | $39,158.8 |
Total derivative contracts ....... | $8,221.6 | $15,704.9 | $13,773.3 | $1,459.0 | $39,158.8 |
February 2026 Form 10-Q | 39 |
$ in thousands | Net Capital | Excess Net Capital |
Jefferies LLC ................................................................. | $1,448,011 | $1,277,695 |
JFSI - SEC ...................................................................... | 333,245 | 298,800 |
JFSI - CFTC ................................................................... | 333,245 | 300,126 |
JIL (1) ............................................................................. | 2,095,104 | 1,045,119 |
Jefferies GmbH (1) ...................................................... | 386,316 | 158,187 |
40 | Jefferies Financial Group Inc. |
Three Months Ended February 28, | ||
$ in millions | 2026 | 2025 |
Investment Banking and Capital Markets: | ||
Revenues | ||
Non-interest revenues ............................................................ | $1,801.4 | $1,403.7 |
Interest income ....................................................................... | 770.1 | 802.6 |
Total revenues (1) .................................................................. | 2,571.5 | 2,206.3 |
Interest expense ..................................................................... | 775.5 | 807.3 |
Net revenues (1) ..................................................................... | 1,796.0 | 1,399.0 |
Non-interest expenses | ||
Compensation and benefits .................................................. | 1,021.3 | 769.1 |
Brokerage and clearing fees ................................................. | 121.8 | 100.2 |
Technology and communications ....................................... | 142.5 | 127.6 |
Business development .......................................................... | 70.3 | 58.7 |
Other segment items (3) (4) ................................................. | 189.1 | 176.4 |
Total non-interest expenses ................................................ | 1,545.0 | 1,232.0 |
Earnings before income taxes .............................................. | $251.0 | $167.0 |
Asset Management: | ||
Revenues | ||
Non-interest revenues ............................................................ | $255.9 | $221.7 |
Interest income ....................................................................... | 43.0 | 42.5 |
Total revenues (2) .................................................................. | 298.9 | 264.2 |
Interest expense ..................................................................... | 78.6 | 72.5 |
Net revenues (2) ..................................................................... | 220.3 | 191.7 |
Non-interest expenses | ||
Compensation and benefits .................................................. | 64.6 | 72.0 |
Brokerage and clearing fees ................................................. | 11.3 | 9.2 |
Technology and communications ....................................... | 17.3 | 11.9 |
Business development .......................................................... | 5.2 | 13.6 |
Cost of sales ........................................................................... | 29.9 | 41.6 |
Other segment items (3) (5) ................................................. | 131.6 | 61.6 |
Total non-interest expenses ................................................ | 259.9 | 209.9 |
Losses before income taxes (6) (7) .................................... | $(39.6) | $(18.2) |
Total of Reportable Business Segments: | ||
Revenues | ||
Non-interest revenues ............................................................ | $2,057.3 | $1,625.4 |
Interest income ....................................................................... | 813.1 | 845.1 |
Total revenues ........................................................................ | 2,870.4 | 2,470.5 |
Interest expense ..................................................................... | 854.1 | 879.8 |
Net revenues ........................................................................... | 2,016.3 | 1,590.7 |
Non-interest expenses | ||
Compensation and benefits .................................................. | 1,085.9 | 841.1 |
Brokerage and clearing fees ................................................. | 133.1 | 109.4 |
Technology and communications ....................................... | 159.8 | 139.5 |
Business development .......................................................... | 75.5 | 72.3 |
Cost of sales ........................................................................... | 29.9 | 41.6 |
Other segment items (3) ....................................................... | 320.7 | 238.0 |
Total non-interest expenses ................................................ | 1,804.9 | 1,441.9 |
Earnings before income taxes ............................................. | $211.4 | $148.8 |
February 2026 Form 10-Q | 41 |
Three Months Ended February 28, | ||
$ in millions | 2026 | 2025 |
Total revenues for reportable segments ................. | $2,016.3 | $1,590.7 |
Other revenues not allocated to segments ............... | 0.8 | 2.3 |
Total consolidated net revenues ............................... | $2,017.1 | $1,593.0 |
Total earnings for reportable segments .................. | $211.4 | $148.8 |
Earnings not allocated to segments .......................... | 0.8 | 2.3 |
Total consolidated earnings ....................................... | $212.2 | $151.1 |
$ in millions | February 28, 2026 | November 30, 2025 |
Investment Banking and Capital Markets ................. | $68,934.9 | $70,335.5 |
Asset Management ...................................................... | 5,445.6 | 5,676.8 |
Total assets .................................................................. | $74,380.5 | $76,012.3 |
Three Months Ended February 28, | ||
$ in millions | 2026 | 2025 |
Americas (1) ................................................................. | $1,405.8 | $1,084.3 |
Europe and the Middle East (2) .................................. | 436.3 | 370.6 |
Asia-Pacific ................................................................... | 175.0 | 138.1 |
Net revenues ................................................................ | $2,017.1 | $1,593.0 |
$ in thousands | February 28, 2026 | November 30, 2025 |
Assets | ||
Cash and cash equivalents ......................................... | $398,415 | $444,506 |
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations ................ | 27,444 | 27,975 |
Financial instruments owned, at fair value ............... | 6,312 | 395 |
Securities borrowed ..................................................... | 7,466 | 3,872 |
Securities purchased under agreements to resell ... | 263,644 | 357,261 |
Receivables: | ||
Brokers, dealers and clearing organizations ........ | 4,240 | 7,752 |
Customers ................................................................. | — | 206 |
Fees, interest and other ........................................... | 6,514 | 5,438 |
Other assets .................................................................. | 9,267 | 6,203 |
Total assets .................................................................. | $723,302 | $853,608 |
Liabilities | ||
Financial instruments sold, not yet purchased, at fair value ................................................................... | $2,814 | $6,763 |
Securities loaned .......................................................... | 89,662 | 620 |
Securities sold under agreements to repurchase ... | 562,528 | 638,581 |
Payables: | ||
Brokers, dealers and clearing organizations ....... | 3,403 | 470 |
Accrued expenses and other liabilities ..................... | 10,496 | 9,537 |
Long-term debt (1) ....................................................... | — | — |
Total liabilities .............................................................. | $668,903 | $655,971 |
Three Months Ended February 28, | ||
$ in thousands | 2026 | 2025 |
Revenues | ||
Investment banking ............................................................... | $3,329 | $3,849 |
Principal transactions (1) ..................................................... | 326 | (4,192) |
Commissions and other fees ............................................... | 523 | 649 |
Interest .................................................................................... | 4,525 | 7,617 |
Total revenues ....................................................................... | 8,703 | 7,923 |
Interest expense .................................................................... | 6,948 | 10,871 |
Net revenues .......................................................................... | $1,755 | $(2,948) |
Non-interest expenses | ||
Compensation and benefits | $1,243 | $— |
Technology and communications ....................................... | 1,024 | — |
Business development ......................................................... | 9,575 | 4,688 |
Other expenses ...................................................................... | 1,090 | 4 |
Total non-interest expenses ............................................... | $12,932 | $4,692 |
42 | Jefferies Financial Group Inc. |
February 2026 Form 10-Q | 43 |
Three Months Ended February 28, | |||
$ in thousands | 2026 | 2025 | % Change |
Net revenues .................................................... | $2,017,130 | $1,593,019 | 26.6% |
Non-interest expenses .................................... | 1,804,914 | 1,441,954 | 25.2% |
Earnings from continuing operations before income taxes ........................................ | 212,216 | 151,065 | 40.5% |
Income tax expense from continuing operations .......................................................... | 52,870 | 14,216 | 271.9% |
Net earnings from continuing operations ..... | 159,346 | 136,849 | 16.4% |
Net losses attributable to noncontrolling interests ............................................................. | (15,858) | (6,983) | 127.1% |
Preferred stock dividends ............................... | 19,504 | 16,039 | 21.6% |
Net earnings attributable to common shareholders ..................................................... | 155,700 | 127,793 | 21.8% |
Effective tax rate from continuing operations ........................................................ | 24.9% | 9.4% | |
44 | Jefferies Financial Group Inc. |
Three Months Ended February 28, | |||||
2026 | 2025 | ||||
$ in thousands | Amount | % of Net Revenues | Amount | % of Net Revenues | % Change |
Advisory .................................. | $527,128 | 26.2% | $397,780 | 25.0% | 32.5% |
Equity underwriting ............... | 305,969 | 15.2 | 128,520 | 8.1 | 138.1 |
Debt underwriting .................. | 181,858 | 9.0 | 199,362 | 12.5 | (8.8) |
Other investment banking .... | 2,338 | 0.1 | (24,970) | (1.6) | N/M |
Total Investment Banking ... | 1,017,293 | 50.5 | 700,692 | 44.0 | 45.2 |
Equities ................................... | 558,488 | 27.7 | 409,058 | 25.7 | 36.5 |
Fixed income ......................... | 220,268 | 10.9 | 289,226 | 18.2 | (23.8) |
Total Capital Markets .......... | 778,756 | 38.6 | 698,284 | 43.9 | 11.5 |
Total Investment Banking and Capital Markets (1) . | 1,796,049 | 89.1 | 1,398,976 | 87.9 | 28.4 |
Asset management fees and revenues ................... | 69,910 | 3.5 | 88,630 | 5.6 | (21.1) |
Investment return .................. | 88,992 | 4.4 | (5,634) | (0.4) | N/M |
Allocated net interest (2) ..... | (22,238) | (1.1) | (17,221) | (1.1) | 29.1 |
Other investments, inclusive of net interest .. | 83,598 | 4.1 | 125,940 | 7.9 | (33.6) |
Total Asset Management .... | 220,262 | 10.9 | 191,715 | 12.0 | 14.9 |
Other ....................................... | 819 | — | 2,328 | 0.1 | (64.8) |
Net revenues ......................... | $2,017,130 | 100.0% | $1,593,019 | 100.0% | 26.6% |
Deals Completed | |||||
Three Months Ended | |||||
February 28, 2026 | February 28, 2025 | ||||
Advisory transactions .................................................. | 99 | 92 | |||
Public and private equity and convertible offerings . | 56 | 35 | |||
Public and private debt financings ............................. | 257 | 213 | |||
Aggregate Value | ||
Three Months Ended | ||
$ in billions | February 28, 2026 | February 28, 2025 |
Advisory transactions .................................................. | $87.5 | $111.8 |
Public and private equity and convertible offerings . | 37.1 | 22.4 |
Public and private debt financings ............................. | 143.9 | 147.2 |
February 2026 Form 10-Q | 45 |
Three Months Ended February 28, | |||
$ in thousands | 2026 | 2025 | % Change |
Asset management fees and other .. | $6,899 | $45,808 | (84.9)% |
Revenue from strategic affiliates (1) | 63,011 | 42,822 | 47.1% |
Total asset management fees and revenues .......................................... | 69,910 | 88,630 | (21.1)% |
Investment return ................................ | 88,992 | (5,634) | N/M |
Allocated net interest .......................... | (22,238) | (17,221) | 29.1% |
Other investments ............................... | 83,598 | 126,128 | (33.7)% |
Total Asset Management .................. | $220,262 | $191,903 | 14.8% |
46 | Jefferies Financial Group Inc. |
$ in millions | February 28, 2026 | November 30, 2025 |
Net asset value seeded by us: | ||
Jefferies funds or separately managed accounts .............................................................. | $376 | $358 |
Our affiliates funds or separately managed accounts .............................................................. | 1,712 | 1,741 |
Total net asset value of Jefferies’ invested capital (1) ............................................................. | 2,088 | 2,099 |
Fair value of investment purchased with leverage ................................................................ | 539 | 699 |
Total AUM attributed to Jefferies as investor .... | $2,627 | $2,798 |
Net asset value of third-party investors: | ||
Jefferies funds or separately managed accounts (2) ........................................................ | 1,618 | 2,462 |
Our affiliates funds or separately managed accounts (3) ........................................................ | 26,898 | 25,387 |
Total AUM attributed to third-party investors .... | $28,516 | $27,849 |
Unfunded capital commitments ............................ | 194 | 195 |
Aggregated AUM ..................................................... | $31,337 | $30,842 |
Three Months Ended February 28, | |||
$ in thousands | 2026 | 2025 | % Change |
Compensation and benefits ........... | $1,085,890 | $841,127 | 29.1% |
Brokerage and clearing fees .......... | 133,132 | 109,436 | 21.7 |
Underwriting costs .......................... | 31,383 | 17,846 | 75.9 |
Technology and communications | 159,858 | 139,475 | 14.6 |
Occupancy and equipment rental . | 33,860 | 30,199 | 12.1 |
Business development ................... | 75,422 | 72,291 | 4.3 |
Professional services ..................... | 76,944 | 72,466 | 6.2 |
Depreciation and amortization ...... | 56,865 | 30,988 | 83.5 |
Cost of sales .................................... | 29,920 | 41,568 | (28.0) |
Other .................................................. | 121,640 | 86,558 | 40.5 |
Total non-interest expenses ......... | $1,804,914 | $1,441,954 | 25.2% |
February 2026 Form 10-Q | 47 |
48 | Jefferies Financial Group Inc. |
February 2026 Form 10-Q | 49 |
$ in millions | February 28, 2026 | November 30, 2025 |
Investment banking .......................................................... | $702.6 | $702.0 |
Equities and wealth management .................................. | 256.1 | 255.9 |
Fixed income ..................................................................... | 578.5 | 578.0 |
Asset management .......................................................... | 143.0 | 143.0 |
Other investments ............................................................ | 45.7 | 158.7 |
Total .................................................................................... | $1,725.9 | $1,837.6 |
50 | Jefferies Financial Group Inc. |
$ in millions | February 28, 2026 | November 30, 2025 | % Change |
Total assets ........................................... | $74,380.5 | $76,012.3 | (2.1)% |
Cash and cash equivalents .................. | 11,963.2 | 14,043.9 | (14.8) |
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations .................................... | 1,752.5 | 917.7 | 91.0 |
Financial instruments owned .............. | 28,079.5 | 27,722.7 | 1.3 |
Financial instruments sold, not yet purchased ......................................... | 14,459.1 | 13,320.2 | 8.6 |
Total Level 3 assets .............................. | 849.2 | 737.8 | 15.1 |
Securities borrowed .............................. | $7,675.9 | $8,295.2 | (7.5)% |
Securities purchased under agreements to resell ........................ | 7,784.1 | 8,449.1 | (7.9) |
Total securities borrowed and securities purchased under agreements to resell ....................... | $15,460.0 | $16,744.3 | (7.7)% |
Securities loaned ................................... | $2,690.4 | $2,540.8 | 5.9% |
Securities sold under agreements to repurchase ........................................ | 10,380.3 | 12,156.7 | (14.6) |
Total securities loaned and securities sold under agreements to repurchase ................................... | $13,070.7 | $14,697.5 | (11.1)% |
$ in millions | February 28, 2026 | Percent | November 30, 2025 | Percent |
Investment Banking ............ | $119.5 | 14.1% | $111.7 | 15.1% |
Equities and Fixed Income . | 441.2 | 52.0 | 343.6 | 46.7 |
Asset Management (1) ....... | 232.8 | 27.4 | 230.5 | 31.2 |
Other ...................................... | 55.7 | 6.5 | 52.0 | 7.0 |
Total ...................................... | $849.2 | 100.0% | $737.8 | 100.0% |
February 2026 Form 10-Q | 51 |
$ in millions | Three Months Ended February 28, 2026 | Year Ended November 30, 2025 |
Securities Purchased Under Agreements to Resell: | ||
Period end .......................................... | $7,784 | $8,449 |
Month end average ........................... | 10,217 | 10,526 |
Maximum month end ....................... | 23,202 | 14,927 |
Securities Sold Under Agreements to Repurchase: | ||
Period end .......................................... | $10,380 | $12,157 |
Month end average ........................... | 15,991 | 16,497 |
Maximum month end ....................... | 18,914 | 19,785 |
$ in millions | February 28, 2026 | November 30, 2025 |
Total assets .................................................................. | $74,380 | $76,012 |
Total equity ................................................................... | $10,662 | $10,642 |
Total shareholders’ equity .......................................... | $10,611 | $10,575 |
Deduct: Goodwill and intangible assets, net ............ | (1,979) | (2,040) |
Tangible shareholders’ equity ................................... | $8,632 | $8,535 |
Leverage ratio (1) ......................................................... | 7.0 | 7.1 |
Tangible gross leverage ratio (2) ............................... | 8.4 | 8.7 |
52 | Jefferies Financial Group Inc. |
$ in thousands | February 28, 2026 | Average Balance Quarter Ended February 28, 2026 (1) | November 30, 2025 |
Cash and cash equivalents: | |||
Cash in banks ............................................. | $5,153,327 | $5,282,239 | $3,903,807 |
Money market investments (2) ............... | 6,809,838 | 6,686,432 | 10,140,082 |
Total cash and cash equivalents ............ | 11,963,165 | 11,968,671 | 14,043,889 |
Other sources of liquidity: | |||
Debt securities owned and securities purchased under agreements to resell (3) ................................................ | 1,961,124 | 2,115,211 | 1,823,733 |
Other (4) ...................................................... | 1,065,391 | 1,168,287 | 1,836,150 |
Total other sources ................................... | 3,026,515 | 3,283,498 | 3,659,883 |
Total cash and cash equivalents and other liquidity sources ....................... | $14,989,680 | $15,252,169 | $17,703,772 |
Total cash and cash equivalents and other liquidity sources as % of Total assets .................................................... | 20.2% | 23.3% | |
Total cash and cash equivalents and other liquidity sources as % of Total assets less goodwill and intangible assets .................................................... | 20.7% | 23.9% |
February 2026 Form 10-Q | 53 |
February 28, 2026 | November 30, 2025 | |||
$ in thousands | Liquid Financial Instruments | Unencumbered Liquid Financial Instruments (1) | Liquid Financial Instruments | Unencumbered Liquid Financial Instruments (1) |
Corporate equity securities ............. | $6,846,950 | $1,260,037 | $7,433,971 | $2,715,099 |
Corporate debt securities ............. | 4,971,407 | 414,057 | 4,788,698 | 280,512 |
U.S. government, agency and municipal securities ............. | 3,148,135 | 160,097 | 3,013,344 | 55,781 |
Other sovereign obligations .......... | 1,779,436 | 1,698,650 | 1,460,571 | 1,731,074 |
Agency mortgage- backed securities (2) ....... | 3,635,424 | — | 3,060,262 | — |
Loans and other receivables .......... | 145,675 | — | 159,939 | — |
Total ........................... | $20,527,027 | $3,532,841 | $19,916,785 | $4,782,466 |
54 | Jefferies Financial Group Inc. |
$ in thousands | February 28, 2026 | November 30, 2025 |
Unsecured Long-Term Debt (1) .................................. | $13,037,385 | $12,494,842 |
Total Mezzanine Equity ............................................... | 406 | 406 |
Total Equity ................................................................... | 10,661,728 | 10,642,203 |
Total Long-Term Capital ............................................ | $23,699,519 | $23,137,451 |
Rating | Outlook | |
Moody’s Investors Service ......................................... | Baa2 | Stable |
Standard & Poor’s ........................................................ | BBB | Stable |
Fitch Ratings ................................................................. | BBB+ | Stable |
Jefferies LLC | Jefferies International Limited | Jefferies GmbH | ||||
Rating | Outlook | Rating | Outlook | Rating | Outlook | |
Moody’s Investors Service .......... | Baa1 | Stable | Baa1 | Stable | Baa1 | Stable |
Standard & Poor’s ............ | BBB+ | Stable | BBB+ | Stable | BBB+ | Stable |
Three Months Ended February 28, 2026 | |||
Declaration Date | Record Date | Payment Date | Per Common Share Amount |
January 7, 2026 | February 17, 2026 | February 27, 2026 | $0.40 |
February 2026 Form 10-Q | 55 |
56 | Jefferies Financial Group Inc. |
$ in thousands | Net Capital | Excess Net Capital |
Jefferies LLC ................................................................. | $1,448,011 | $1,277,695 |
JFSI - SEC ...................................................................... | 333,245 | 298,800 |
JFSI - CFTC ................................................................... | 333,245 | 300,126 |
JIL (1) ............................................................................. | 2,095,104 | 1,045,119 |
Jefferies GmbH (1) ...................................................... | 386,316 | 158,187 |
February 2026 Form 10-Q | 57 |
58 | Jefferies Financial Group Inc. |
VaR at February 28, 2026 | Daily Firmwide VaR | |||
$ in millions | Daily VaR for the Three Months Ended February 28, 2026 | |||
Risk Categories | Average | High | Low | |
Interest Rates and Credit Spreads ............................. | $3.18 | $4.06 | $8.05 | $1.41 |
Equity Prices ........................ | 8.24 | 8.45 | 11.85 | 5.13 |
Currency Rates .................... | 2.54 | 2.50 | 3.51 | 2.03 |
Commodity Prices .............. | 0.19 | 0.40 | 0.87 | 0.07 |
Diversification Effect (1) .... | (5.61) | (5.63) | N/A | N/A |
Firmwide VaR (2) ................ | $8.54 | $9.78 | $13.07 | $7.74 |
VaR at November 30, 2025 | Daily Firmwide VaR | |||
$ in millions | Daily VaR for the Three Months Ended November 30, 2025 | |||
Risk Categories | Average | High | Low | |
Interest Rates and Credit Spreads ............................. | $4.52 | $4.79 | $6.72 | $3.37 |
Equity Prices ........................ | 7.83 | 7.53 | 9.18 | 5.73 |
Currency Rates .................... | 1.91 | 1.79 | 2.54 | 1.37 |
Commodity Prices .............. | 0.56 | 0.45 | 0.93 | 0.15 |
Diversification Effect (1) .... | (5.86) | (5.06) | N/A | N/A |
Firmwide VaR (2) ................ | $8.96 | $9.50 | $11.05 | $7.60 |
VaR at February 28, 2026 | Daily Capital Markets VaR | |||
$ in millions | Daily VaR for the Three Months Ended February 28, 2026 | |||
Risk Categories | Average | High | Low | |
Interest Rates and Credit Spreads ............................. | $2.79 | $3.90 | $7.87 | $1.26 |
Equity Prices ........................ | 4.55 | 5.05 | 8.94 | 3.03 |
Currency Rates .................... | 2.30 | 2.10 | 2.97 | 1.56 |
Diversification Effect (1) .... | (3.03) | (3.81) | N/A | N/A |
Capital Markets VaR (2) .... | $6.61 | $7.24 | $9.74 | $5.26 |
VaR at November 30, 2025 | Daily Capital Markets VaR | |||
$ in millions | Daily VaR for the Three Months Ended November 30, 2025 | |||
Risk Categories | Average | High | Low | |
Interest Rates and Credit Spreads ............................. | $4.46 | $4.96 | $7.26 | $3.59 |
Equity Prices ........................ | 4.37 | 4.34 | 5.06 | 3.58 |
Currency Rates .................... | 1.72 | 1.47 | 1.99 | 1.18 |
Commodity Prices .............. | — | 0.03 | 0.09 | — |
Diversification Effect (1) .... | (4.11) | (4.01) | N/A | N/A |
Capital Markets VaR (2) .... | $6.44 | $6.79 | $9.04 | $4.48 |
February 2026 Form 10-Q | 59 |


60 | Jefferies Financial Group Inc. |
$ in thousands | 10% Sensitivity |
Investment in funds and other (1) .......................................................................................................................................................................... | $172,770 |
Private investments .................................................................................................................................................................................................. | 60,180 |
Corporate debt securities in default ....................................................................................................................................................................... | 23,722 |
Trade claims .............................................................................................................................................................................................................. | 2,141 |
Expected Maturity Date (Fiscal Years) | ||||||||
$ in thousands | 2026 | 2027 | 2028 | 2029 | 2030 | Thereafter | Total | Fair Value |
Rate Sensitive Liabilities: | ||||||||
Fixed Interest Rate Borrowings .......................... | $214,299 | $666,604 | $1,316,474 | $376,878 | $1,481,879 | $7,044,653 | $11,100,787 | $11,143,530 |
Weighted-Average Interest Rate ........................ | 3.36% | 5.23% | 5.12% | 5.31% | 4.48% | 5.65% | ||
Variable Interest Rate Borrowings ..................... | $— | $726,500 | $528,544 | $1,317 | $3,878 | $1,377,786 | $2,638,025 | $2,495,295 |
Weighted-Average Interest Rate ........................ | —% | 6.30% | 6.08% | 4.67% | 4.48% | 5.57% | ||
Borrowings with Foreign Currency Exposure ... | $932,519 | $644,408 | $590,950 | $590,950 | $— | $1,157,316 | $3,916,143 | $3,745,860 |
Weighted-Average Interest Rate ........................ | 3.90% | 3.03% | 3.37% | 4.05% | —% | —% | ||
February 2026 Form 10-Q | 61 |
62 | Jefferies Financial Group Inc. |
Counterparty Credit Exposure by Credit Rating | ||||||||||||
Loans and Lending | Securities and Margin Finance | OTC Derivatives | Total | Cash and Cash Equivalents | Total with Cash and Cash Equivalents | |||||||
At | At | At | At | At | At | |||||||
$ in millions | February 28, 2026 | November 30, 2025 | February 28, 2026 | November 30, 2025 | February 28, 2026 | November 30, 2025 | February 28, 2026 | November 30, 2025 | February 28, 2026 | November 30, 2025 | February 28, 2026 | November 30, 2025 |
AAA Range | $— | $— | $1.8 | $10.7 | $— | $— | $1.8 | $10.7 | $6,809.9 | $10,140.1 | $6,811.7 | $10,150.8 |
AA Range | 86.6 | 91.1 | 328.4 | 218.8 | 291.1 | 270.5 | 706.1 | 580.4 | 101.1 | 156.8 | 807.2 | 737.2 |
A Range | 36.2 | 24.5 | 1,385.9 | 1,081.5 | 158.9 | 173.6 | 1,581.0 | 1,279.6 | 4,808.1 | 3,514.5 | 6,389.1 | 4,794.1 |
BBB Range | 266.2 | 263.7 | 218.7 | 166.7 | 23.2 | 20.2 | 508.1 | 450.6 | 242.9 | 232.5 | 751.0 | 683.1 |
BB or Lower | 32.5 | 38.4 | 62.6 | 42.6 | 192.4 | 173.8 | 287.5 | 254.8 | 1.2 | — | 288.7 | 254.8 |
Unrated | 399.4 | 279.5 | — | — | 3.0 | 9.9 | 402.4 | 289.4 | — | — | 402.4 | 289.4 |
Total | $820.9 | $697.2 | $1,997.4 | $1,520.3 | $668.6 | $648.0 | $3,486.9 | $2,865.5 | $11,963.2 | $14,043.9 | $15,450.1 | $16,909.4 |
Counterparty Credit Exposure by Region | ||||||||||||
Loans and Lending | Securities and Margin Finance | OTC Derivatives | Total | Cash and Cash Equivalents | Total with Cash and Cash Equivalents | |||||||
At | At | At | At | At | At | |||||||
$ in millions | February 28, 2026 | November 30, 2025 | February 28, 2026 | November 30, 2025 | February 28, 2026 | November 30, 2025 | February 28, 2026 | November 30, 2025 | February 28, 2026 | November 30, 2025 | February 28, 2026 | November 30, 2025 |
Asia-Pacific/Latin America/Other | $15.8 | $15.8 | $333.4 | $234.6 | $2.7 | $0.4 | $351.9 | $250.8 | $568.0 | $766.3 | $919.9 | $1,017.1 |
Europe and the Middle East | 44.9 | 1.7 | 622.3 | 426.5 | 62.3 | 88.4 | 729.5 | 516.6 | 67.4 | 71.3 | 796.9 | 587.9 |
North America | 760.2 | 679.7 | 1,041.7 | 859.2 | 603.6 | 559.2 | 2,405.5 | 2,098.1 | 11,327.8 | 13,206.3 | 13,733.3 | 15,304.4 |
Total | $820.9 | $697.2 | $1,997.4 | $1,520.3 | $668.6 | $648.0 | $3,486.9 | $2,865.5 | $11,963.2 | $14,043.9 | $15,450.1 | $16,909.4 |
Counterparty Credit Exposure by Industry | ||||||||||||
Loans and Lending | Securities and Margin Finance | OTC Derivatives | Total | Cash and Cash Equivalents | Total with Cash and Cash Equivalents | |||||||
At | At | At | At | At | At | |||||||
$ in millions | February 28, 2026 | November 30, 2025 | February 28, 2026 | November 30, 2025 | February 28, 2026 | November 30, 2025 | February 28, 2026 | November 30, 2025 | February 28, 2026 | November 30, 2025 | February 28, 2026 | November 30, 2025 |
Asset Managers, Funds and Investment Advisors (1) | $607.3 | $438.6 | $112.3 | $83.6 | $21.7 | $— | $741.3 | $522.2 | $6,809.9 | $10,140.1 | $7,551.2 | $10,662.3 |
Banks, Broker-Dealers | 5.9 | 5.7 | 1,157.8 | 863.8 | 481.0 | 478.9 | 1,644.7 | 1,348.4 | 5,153.3 | 3,903.8 | 6,798.0 | 5,252.2 |
Corporates | 148.0 | 145.3 | — | — | 161.2 | 165.8 | 309.2 | 311.1 | — | — | 309.2 | 311.1 |
As Agent Banks | — | — | 675.1 | 529.9 | — | — | 675.1 | 529.9 | — | — | 675.1 | 529.9 |
Other | 59.7 | 107.6 | 52.2 | 43.0 | 4.7 | 3.3 | 116.6 | 153.9 | — | — | 116.6 | 153.9 |
Total | $820.9 | $697.2 | $1,997.4 | $1,520.3 | $668.6 | $648.0 | $3,486.9 | $2,865.5 | $11,963.2 | $14,043.9 | $15,450.1 | $16,909.4 |
February 2026 Form 10-Q | 63 |
64 | Jefferies Financial Group Inc. |
February 2026 Form 10-Q | 65 |
$ in thousands, except share and per share amounts | (a) Total Number of Shares Purchased (1) | (b) Average Price Paid per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | (d) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs |
December 1, 2025 to December 31, 2025 ................. | 406,618 | $61.16 | — | $250,000 |
January 1, 2026 to January 31, 2026 ..................... | 457,264 | $62.05 | 450,000 | $222,077 |
February 1, 2026 to February 28, 2026 .................... | 2,132,262 | $56.78 | 2,048,000 | $106,159 |
Total........................................... | 2,996,144 | $58.18 | 2,498,000 |
66 | Jefferies Financial Group Inc. |
Jefferies Financial Group Inc. |
/s/ MATT LARSON |
Matt Larson |
Executive Vice President and Chief Financial Officer |
| Date: | April 7, 2026 | By: | /s/ Richard B. Handler | |||||||||||
| Name: Title: | Richard B. Handler Chief Executive Officer | |||||||||||||
| Date: | April 7, 2026 | By: | /s/ Matt Larson | |||||||||||
| Name: Title: | Matt Larson Chief Financial Officer | |||||||||||||
| Date: | April 7, 2026 | By: | /s/ Richard B. Handler | |||||||||||
| Name: Title: | Richard B. Handler Chief Executive Officer | |||||||||||||
| Date: | April 7, 2026 | By: | /s/ Matt Larson | |||||||||||
| Name: Title: | Matt Larson Chief Financial Officer | |||||||||||||