Jefferies Financial Group Inc.
Jefferies Financial Group Inc. is a U.S.-headquartered global investment banking and capital markets firm with two reportable segments: Investment Banking and Capital Markets, and Asset Management. It advises companies and sponsors, underwrites equity and debt, trades equities and fixed income for institutional clients, and manages alternative investment strategies through directly owned and affiliated managers.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueAdvisory, equity underwriting, debt underwriting and related capital raising services.
Cash equities, electronic trading, derivatives, convertibles, prime services and research.
Trading and client solutions across rates, credit, structured products and financing.
Alternative investment management and seeding of affiliated strategies, plus proprietary investments.
Products
Reported · share of revenue- Investment Banking Advisory38.5 %
- Commissions and Other Fees23.4 %
- Equities23.2 %
- Other Investments17.0 %
- Internet Connection and Boadband Revenue4.1 %
- Other3.7 %
Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
Jefferies primarily serves public companies, private companies, financial sponsors, institutional investors and government entities. Its trading and prime services businesses also serve hedge funds, money managers, registered investment advisors, pension plans and insurance companies that need execution, financing, research and market access.
Public and private companies buy advisory, underwriting and financing for M&A, growth and refinancing.
Mutual funds, hedge funds, pension plans and insurers buy execution, research and trading liquidity.
Private equity and sponsor-backed borrowers use leveraged finance, syndication and capital markets execution.
Hedge funds and money managers use prime brokerage, outsourced trading and financing services.
Public-sector borrowers access debt underwriting and structured finance solutions.
Strategy
Jefferies is focused on deepening its investment banking franchise, improving execution in equities and fixed income, and expanding credit and alternative asset management. Management also emphasizes balance-sheet discipline, modest leverage, and returning excess liquidity to shareholders while continuing to simplify legacy investments.
Higher client penetration in advisory and underwriting supports franchise breadth and fee generation.
These platforms diversify revenue away from pure transaction activity and deepen client relationships.
A liquid balance sheet supports trading, financing and regulatory capital needs in volatile markets.
Shareholder returns and portfolio cleanup improve capital efficiency and reduce complexity.
Geography
Q1/2026Jefferies operates globally from headquarters in New York, with regional headquarters in London and Hong Kong. Its investment banking and trading businesses cover the Americas, Europe and the Middle East, and Asia-Pacific, while client activity is concentrated in major financial centers and cross-border capital markets.
Share of the revenue the company reports by geography.
Risks
Jefferies is exposed to market, credit and liquidity risk because a large part of its business depends on trading, underwriting, financing and principal positions. It also faces regulatory capital constraints, valuation risk in goodwill and investments, and earnings sensitivity to capital markets activity, client risk appetite and funding conditions.
- Market risk on trading and principal positionsImpact: HighLikelihood: Medium
Equities, fixed income, derivatives and loans are marked to market or exposed to price changes.
Exposure - Credit and counterparty riskImpact: HighLikelihood: Medium
Client financing, settlement and derivative exposures can become uncollectible if counterparties default.
Exposure - Liquidity and funding riskImpact: HighLikelihood: Medium
The firm relies on market access and short- and long-term funding to support its balance sheet.
Exposure - Regulatory capital constraintsImpact: Medium
Broker-dealer and UK prudential requirements can limit capital withdrawals and business flexibility.
Exposure - Goodwill and investment impairmentImpact: Medium
Valuations depend on future profitability, trading volumes and capital markets activity.
Exposure
Accounting
Judgemental itemsPrincipal trading and derivative positions are sensitive to market inputs and can swing earnings.
Impact: Impacts revenue volatility and balance sheet carrying values
Goodwill is material and depends on forecasts of future profitability and market multiples.
Impact: Could create large non-cash charges if reporting unit values decline
Management must judge whether declines in investee value are other-than-temporary.
Impact: Can affect other income and reduce carrying value
Allocated interest income and expense changes segment profitability presentation.
Impact: Affects comparability of Investment Banking, Equities and Fixed Income results
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Last updated: 24/09/2026