Jefferies Financial Group Inc. reported its financial results for the second quarter of fiscal year 2025, revealing a slight decline in net revenues and a significant drop in earnings compared to the same period last year. For the three months ended May 31, 2025, the company generated net revenues of $1.63 billion, a decrease of 1.3% from $1.66 billion in the prior year quarter. Earnings from continuing operations before income taxes fell by 40.8% to $134.9 million, down from $227.8 million, primarily due to increased non-compensation expenses associated with business activities, particularly in Equities.
The company's investment banking segment showed mixed results, with net revenues from advisory services rising 61.3% to $457.9 million, driven by market share gains and increased mergers and acquisitions activity. However, total underwriting revenues decreased by 27.9% to $327.7 million, reflecting a slowdown in equity underwriting activity amid ongoing geopolitical uncertainties. Equities net revenues increased by 24.4% to $526.2 million, attributed to higher trading volumes, while fixed income revenues dropped 37.4% to $177.9 million due to lower global activity levels.
In terms of operational metrics, Jefferies reported a total headcount of 7,671 employees as of May 31, 2025, a decrease from 7,822 at the end of November 2024. The company’s total assets increased by 4.5% to $67.29 billion, driven by a rise in financial instruments owned, which reached $25.57 billion. The firm also maintained a strong liquidity position, with cash and cash equivalents totaling $11.26 billion, although this represented a decline from $12.15 billion at the end of the previous fiscal year.
Strategically, Jefferies has been active in managing its portfolio, including the sale of Foursight Capital LLC in April 2024 and the wholesale operations of OpNet in August 2024. The company continues to focus on its core investment banking and capital markets operations while managing its legacy assets. Looking ahead, Jefferies anticipates that ongoing market uncertainties may impact its business activities, but it remains committed to leveraging its strong market position and operational capabilities to navigate these challenges effectively.
About Jefferies Financial Group Inc.
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