Jefferies Financial Group Inc. reported a decline in financial performance for the first quarter of 2025, with net revenues of $1.59 billion, down 8.4% from $1.74 billion in the same period last year. The decrease was attributed to a challenging market environment influenced by geopolitical uncertainties and U.S. policy changes. Earnings from continuing operations before income taxes fell by 31.4% to $151.1 million, compared to $220.2 million in the prior year quarter. The effective tax rate also decreased significantly to 9.4% from 25.4%, primarily due to the resolution of certain state and local tax matters.
In terms of segment performance, Jefferies' Investment Banking and Capital Markets division generated net revenues of $700.7 million, a slight decrease of 3.6% from the previous year. Advisory services saw a notable increase, with revenues rising 17.5% to $397.8 million, driven by market share gains in mergers and acquisitions. However, equity underwriting revenues dropped due to a slowdown in market activity. The Asset Management segment reported revenues of $191.7 million, down from $273.4 million, reflecting a challenging investment environment that negatively impacted returns.
Operationally, Jefferies maintained a global workforce of 7,701 employees as of February 28, 2025, a reduction from 7,822 employees at the end of November 2024. The company also engaged in strategic acquisitions, including the purchase of Stratos Group International and OpNet S.p.A. in late 2023, which have since been consolidated into its financial statements. The firm continues to focus on its core investment banking and asset management services while managing its legacy portfolio.
Looking ahead, Jefferies remains cautious about the market outlook, with expectations that geopolitical tensions and economic uncertainties may continue to impact performance. The company is committed to maintaining its capital structure and liquidity, with total assets increasing to $70.22 billion as of February 28, 2025, up 9.1% from the previous quarter. Jefferies plans to leverage its strong capital position to navigate potential market challenges while continuing to return value to shareholders through dividends and share repurchases.
About Jefferies Financial Group Inc.
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