Jefferies Financial Group Inc.JEF
Jefferies Financial Group Inc. Revenue Disclosure
Note 13. Revenues from Contracts with Customers
Revenue from contracts with customers is recognized when, or
Year Ended November 30, | |||
$ in thousands | 2025 | 2024 | 2023 |
Revenues from contracts with customers: | |||
Investment banking ......................... | $3,787,318 | $3,302,664 | $2,169,366 |
Commissions and other fees ........ | 1,300,950 | 1,085,349 | 905,665 |
Asset management fees ................ | 67,719 | 50,700 | 33,867 |
Real estate revenues ....................... | 94,630 | 119,050 | 44,825 |
Internet connection and broadband revenues ................. | 228,063 | 240,874 | — |
Other contracts with customers .... | 67,810 | 59,388 | 79,485 |
Total revenue from contracts with customers ........................... | 5,546,490 | 4,858,025 | 3,233,208 |
Other sources of revenue: | |||
Principal transactions ..................... | 1,610,960 | 1,816,963 | 1,413,283 |
Revenues from strategic affiliates | 90,567 | 41,802 | 48,707 |
Interest .............................................. | 3,402,317 | 3,543,497 | 2,868,674 |
Other ................................................. | 173,343 | 254,782 | (122,473) |
Total revenues ................................. | $10,823,677 | $10,515,069 | $7,441,399 |
as, we satisfy our performance obligations by transferring the
promised goods or services to the customers. A good or service
is transferred to a customer when, or as, the customer obtains
control of that good or service. A performance obligation may be
satisfied over time or at a point in time. Revenue from a
performance obligation satisfied over time is recognized by
measuring our progress in satisfying the performance obligation
in a manner that depicts the transfer of the goods or services to
the customer. Revenue from a performance obligation satisfied
at a point in time is recognized at the point in time that we
determine the customer obtains control over the promised good
or service. The amount of revenue recognized reflects the
consideration we expect to be entitled to in exchange for those
promised goods or services (i.e., the “transaction price”). In
determining the transaction price, we consider multiple factors,
including the effects of variable consideration. Variable
consideration is included in the transaction price only to the
extent it is probable that a significant reversal in the amount of
cumulative revenue recognized will not occur when the
uncertainties with respect to the amount are resolved. In
determining when to include variable consideration in the
transaction price, we consider the range of possible outcomes,
the predictive value of our past experiences, the time period of
when uncertainties expect to be resolved and the amount of
consideration that is susceptible to factors outside of our
influence, such as market volatility or the judgment and actions
of third-parties.
The following provides detailed information on the recognition of
our revenues from contracts with customers:
•Investment Banking. We provide our clients with a full range of
financial advisory and underwriting services. Revenues from
financial advisory services primarily consist of fees generated
in connection with merger, acquisition and restructuring
transactions. Advisory fees from mergers and acquisitions
engagements are recognized at a point in time when the
related transaction is completed, as the performance
obligation is to successfully broker a specific transaction. Fees
received prior to the completion of the transaction are deferred
within Accrued expenses and other liabilities. Advisory fees
from restructuring engagements are recognized over time
using a time elapsed measure of progress as our clients
simultaneously receive and consume the benefits of those
services as they are provided. A significant portion of the fees
we receive for our advisory services are considered variable as
they are contingent upon a future event (e.g., completion of a
transaction or third-party emergence from bankruptcy) and are
excluded from the transaction price until the uncertainty
associated with the variable consideration is subsequently
resolved, which is expected to occur upon achievement of the
specified milestone. Payment for advisory services is generally
due promptly upon completion of a specified milestone or, for
retainer fees, periodically over the course of the engagement.
We recognize a receivable between the date of completion of
the milestone and payment by the customer. Expenses
associated with investment banking advisory engagements are
deferred only to the extent they are explicitly reimbursable by
the client and the related revenue is recognized at a point in
time. All other investment banking advisory related expenses,
including expenses incurred related to restructuring
assignments, are expensed as incurred. All investment banking
advisory expenses are recognized within their respective
expense category in our Consolidated Statements of Earnings
and any expenses reimbursed by our clients are recognized as
Investment banking revenues.
Underwriting services include underwriting and placement
agent services in both the equity and debt capital markets,
including private equity placements, initial public offerings,
follow-on offerings and equity-linked securities transactions
and structuring, underwriting and distributing public and private
debt, including investment grade debt, high yield bonds,
leveraged loans, municipal bonds and mortgage-backed and
asset-backed securities. Underwriting and placement agent
revenues are recognized at a point in time on trade-date, as the
client obtains the control and benefit of the underwriting
offering at that point. Costs associated with underwriting
transactions are deferred until the related revenue is
recognized or the engagement is otherwise concluded and are
recorded on a gross basis within Underwriting costs as we are
acting as a principal in the arrangement. Any expenses
reimbursed by our clients are recognized as Investment
banking revenues.
•Commissions and Other Fees. We earn commission and other
fee revenue by executing, settling and clearing transactions for
clients primarily in equity, equity-related and futures products
and facilitating foreign currency spot transactions. Trade
execution and clearing services, when provided together,
represent a single performance obligation as the services are
not separately identifiable in the context of the contract.
Commission revenues associated with combined trade
execution and clearing services, as well as trade execution
services on a standalone basis, are recognized at a point in
time on trade-date. Commissions revenues are generally paid
on settlement date, and we record a receivable between trade-
date and payment on settlement date. We permit institutional
customers to allocate a portion of their gross commissions to
pay for research products and other services provided by third
parties. The amounts allocated for those purposes are
commonly referred to as soft dollar arrangements. We act as
an agent in the soft dollar arrangements as the customer
controls the use of the soft dollars and directs our payments to
third-party service providers on its behalf. Accordingly,
amounts allocated to soft dollar arrangements are netted
against commission revenues in our Consolidated Statements
of Earnings. We also earn investment research fees for the
sales of our proprietary investment research when a contract
with a client has been identified. The delivery of investment
research services represents a distinct performance obligation
that is satisfied over time when the performance obligation is
to provide ongoing access to a research platform or research
analysts, with fees recognized on a straight-line basis over the
period in which the performance obligation is satisfied. The
performance obligation is satisfied at a point in time when the
performance obligation is to provide individual interactions
with research analysts or research events, with fees
recognized on the interaction date.
We earn account advisory and distribution fees in connection
with wealth management services. Account advisory fees are
recognized over time using the time-elapsed method as we
determined that the customer simultaneously receives and
consumes the benefits of investment advisory services as they
are provided. Account advisory fees may be paid in advance of
a specified service period or in arrears at the end of the
specified service period (e.g., quarterly). Account advisory fees
paid in advance are initially deferred within Accrued expenses
and other liabilities. Distribution fees are variable and
recognized when the uncertainties with respect to the amounts
are resolved.
•Asset Management Fees. We earn management and
performance fees in connection with investment advisory
services provided to various funds and accounts, which are
satisfied over time and measured using a time elapsed
measure of progress as the customer receives the benefits of
the services evenly throughout the term of the contract.
Management and performance fees are considered variable as
they are subject to fluctuation (e.g., changes in assets under
management, market performance) and/ or are contingent on
a future event during the measurement period (e.g., meeting a
specified benchmark) and are recognized only to the extent it
is probable that a significant reversal in the amount of
cumulative revenue recognized will not occur when the
uncertainty is resolved. Management fees are generally based
on month-end assets under management or an agreed upon
notional amount and are included in the transaction price at
the end of each month when the assets under management or
notional amount is known. Performance fees are received
when the return on assets under management for a specified
performance period exceed certain benchmark returns, “high-
water marks” or other performance targets. The performance
period related to our performance fees is annual or semi-
annual. Accordingly, performance fee revenue will generally be
recognized only at the end of the performance period to the
extent that the benchmark return has been met.
•Real Estate Revenues. Revenues from the sales of real estate
are recognized at a point in time when the related transaction
is complete. The majority of our real estate sales of land, lots
and homes transfer the goods and services to the customer at
the close of escrow when the title transfers to the buyer and
the buyer has the benefit and control of the goods and service.
If the performance obligation under the contract with a
customer related to a parcel of real estate is not yet complete
when title transfers to the buyer, revenue associated with the
incomplete performance obligation is deferred until the
performance obligation is completed.
•Internet Connection and Broadband Revenues. Revenues
associated with internet connection and mobile voice services
provided to customers are recognized based on the volume of
service provided as of a given date and the related service
charge. Revenues from the activation of broadband services
are recognized on a straight-line basis over a period of 24
months. Amounts received in advance are deferred and
recognized into revenue over the 24 month service period.
Disaggregation of RevenueYear Ended November 30, 2025 | |||
$ in thousands | Investment Banking and Capital Markets | Asset Management | Total |
Major business activity: | |||
Investment banking - Advisory ................ | $2,145,422 | $— | $2,145,422 |
Investment banking - Underwriting ......... | 1,641,897 | — | 1,641,897 |
Equities (1) ................................................. | 1,293,944 | — | 1,293,944 |
Fixed income (1) ........................................ | 7,005 | — | 7,005 |
Asset management ................................... | — | 67,719 | 67,719 |
Other investments ..................................... | — | 390,503 | 390,503 |
Total ............................................................ | $5,088,268 | $458,222 | $5,546,490 |
Primary geographic region: | |||
Americas ..................................................... | $3,711,906 | $222,549 | $3,934,455 |
Europe and the Middle East ..................... | 963,294 | 231,994 | 1,195,288 |
Asia-Pacific ................................................ | 413,068 | 3,679 | 416,747 |
Total ............................................................ | $5,088,268 | $458,222 | $5,546,490 |
Year Ended November 30, 2024 | |||
$ in thousands | Investment Banking and Capital Markets | Asset Management | Total |
Major business activity: | |||
Investment banking - Advisory ................ | $1,811,633 | $— | $1,811,633 |
Investment banking - Underwriting ......... | 1,491,030 | — | 1,491,030 |
Equities (1) ................................................. | 1,074,666 | — | 1,074,666 |
Fixed income (1) ........................................ | 8,859 | — | 8,859 |
Asset management ................................... | — | 50,700 | 50,700 |
Other investments .................................... | — | 421,137 | 421,137 |
Total ............................................................ | $4,386,188 | $471,837 | $4,858,025 |
Primary geographic region: | |||
Americas ..................................................... | $3,196,908 | $223,057 | $3,419,965 |
Europe and the Middle East .................... | 812,052 | 245,299 | 1,057,351 |
Asia-Pacific ................................................ | 377,228 | 3,481 | 380,709 |
Total ............................................................ | $4,386,188 | $471,837 | $4,858,025 |
Year Ended November 30, 2023 | |||
$ in thousands | Investment Banking and Capital Markets | Asset Management | Total |
Major business activity: | |||
Investment banking - Advisory ................ | $1,198,915 | $— | $1,198,915 |
Investment banking - Underwriting ......... | 970,451 | — | 970,451 |
Equities (1) ................................................. | 894,602 | — | 894,602 |
Fixed income (1) ........................................ | 10,577 | — | 10,577 |
Asset management ................................... | — | 33,867 | 33,867 |
Other investments ..................................... | — | 124,796 | 124,796 |
Total ............................................................ | $3,074,545 | $158,663 | $3,233,208 |
Primary geographic region: | |||
Americas ..................................................... | $2,349,161 | $153,286 | $2,502,447 |
Europe and the Middle East ..................... | 485,432 | 2,646 | 488,078 |
Asia-Pacific ................................................ | 239,952 | 2,731 | 242,683 |
Total ............................................................ | $3,074,545 | $158,663 | $3,233,208 |
(1)Revenues from contracts with customers associated with the equities and
fixed income businesses primarily represent commissions and other fee
revenue.
Refer to Note 22, Segment Reporting, for a further discussion on
the allocation of revenues to geographic regions.
Information on Remaining Performance Obligations and Revenue
Recognized from Past Performance
We do not disclose information about remaining performance
obligations pertaining to contracts that have an original expected
duration of one year or less. The transaction price allocated to
remaining unsatisfied or partially unsatisfied performance
obligations with an original expected duration exceeding one year
was not material at November 30, 2025. Investment banking
advisory fees that are contingent upon completion of a specific
milestone and fees associated with certain distribution services
are also excluded as the fees are considered variable and not
included in the transaction price.
For the years ended November 30, 2025, 2024, and 2023, we
recognized $85.0 million, $41.0 million and $38.1 million,
respectively, of revenue related to performance obligations
satisfied (or partially satisfied) in previous periods, mainly due to
resolving uncertainties in variable consideration that was
constrained in prior periods. In addition, we recognized $32.4
million, $32.1 million, and $31.5 million of revenues primarily
associated with distribution services for the years ended
November 30, 2025, 2024, and 2023, respectively, a portion of
which relates to prior periods.
Contract Balances
The timing of our revenue recognition may differ from the timing
of payment by our customers. We record a receivable when
revenue is recognized prior to payment and we have an
unconditional right to payment. Alternatively, when payment
precedes the provision of the related services, we record deferred
revenue until the performance obligations are satisfied.
Our deferred revenue primarily relates to retainer and milestone
fees received in investment banking advisory engagements
where the performance obligation has not yet been satisfied.
Deferred revenue at November 30, 2025 and 2024 was $92.3
million and $79.1 million, respectively, which is recorded in
Accrued expenses and other liabilities. For the years ended
November 30, 2025, 2024, and 2023, we recognized revenues of
$54.1 million, $34.6 million, and $22.7 million, respectively, that
were recorded as deferred revenue at the beginning of the
periods.
We had receivables related to revenues from contracts with
customers of $396.8 million and $275.9 million at November 30,
2025 and 2024, respectively.
Contract Costs
We capitalize costs to fulfill contracts associated with
investment banking advisory engagements where the revenue is
recognized at a point in time and the costs are determined to be
recoverable. Capitalized costs to fulfill a contract are recognized
at the point in time that the related revenue is recognized.
At November 30, 2025 and 2024, capitalized costs to fulfill a
contract were $5.2 million and $5.8 million, respectively, which
are recorded in Receivables – Fees, interest and other. For the
years ended November 30, 2025, 2024, and 2023, we recognized
expenses of $2.1 million, $3.6 million, and $1.8 million,
respectively, related to costs to fulfill a contract that were
capitalized as of the beginning of the year. There were no
significant impairment charges recognized in relation to these
capitalized costs for the years ended November 30, 2025, 2024,
and 2023.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jan 28, 2026 | Showing above |
| 2024 | Jan 28, 2025 | |
| 2023 | Jan 26, 2024 | |
| 2022 | Jan 27, 2023 | |
| 2021 | Jan 28, 2022 | |
| 2020 | Jan 29, 2021 | |
| 2019 | Jan 29, 2020 | |
| 2017 | Feb 27, 2018 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.