Jefferies Financial Group

Jefferies Financial Group (JEF) Q1 2025 Earnings

Reported Mar 26, 2025 at 4:17 PM ET · SEC Source

Q1 25 EPS

$0.57

MISS 52.31%

Est. $1.20

Q1 25 Revenue

$1.59B

MISS 14.49%

Est. $1.86B

vs S&P Since Q1 25

-38.4%

TRAILING MARKET

JEF -5.8% vs S&P +32.6%

Market Reaction

Did JEF Beat Earnings? Q1 2025 Results

Jefferies Financial Group delivered a sharply disappointing start to fiscal 2025, with first-quarter earnings per share of $0.57 missing the consensus estimate of $1.20 by 52.31% and revenue of $1.59 billion falling 14.49% short of the $1.86 billion … Read more Jefferies Financial Group delivered a sharply disappointing start to fiscal 2025, with first-quarter earnings per share of $0.57 missing the consensus estimate of $1.20 by 52.31% and revenue of $1.59 billion falling 14.49% short of the $1.86 billion Wall Street had expected, sending shares down roughly 9% in the aftermath. The most material drag came from Asset Management, where investment returns swung to a loss of $5.63 million from a gain of $101.76 million a year ago, as strategies with long equity bias buckled under a difficult market environment. Capital markets compounded the pressure, with Fixed Income revenues sliding 18% and Equity underwriting collapsing 39%, conditions the firm attributed directly to uncertainty surrounding U.S. Trade policy and geopolitical turbulence. Bright spots were limited but real, including a 17% jump in Advisory revenues and a 54% surge in Debt underwriting. Looking ahead, management acknowledged increasingly challenging conditions yet pointed to a high-quality investment banking backlog that continues to build, contingent on confidence and market visibility returning.

Key Takeaways

  • Advisory revenues up 17% YoY driven by meaningful market share gains and increased transaction levels across most sectors in global M&A markets
  • Debt underwriting revenues up 54% YoY reflecting strong results
  • Equities revenues up 10% YoY with strong prime services and global electronic trading performance
  • Low effective tax rate of 9.4% driven by partial resolution of state and local tax matters
  • Asset management investment return declined significantly due to difficult environment for strategies with long equity bias
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JEF YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

24/7 Wall St

JEF Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“Our first quarter results reflect strength in Advisory, Debt underwriting and Equities offset by a meaningful decline in asset management investment return compared to the prior year quarter. The capital markets have become increasingly more challenging due to the uncertainties that have arisen around U.S. policy and geopolitical events. There remains strong dialogue around potential investment banking transactions (capital raising and advisory) and our high quality backlog continues to build. Its realization depends on confidence and visibility reemerging, which may be beginning.”

— Richard Handler, Q1 2025 Earnings Press Release