Jefferies Financial Group Inc.JEF
Jefferies Financial Group Inc. Segments Disclosure
Note 22. Segment Reporting
We operate in two reportable business segments: (1) Investment
Banking and Capital Markets and (2) Asset Management. The
Investment Banking and Capital Markets reportable business
segment includes our capital markets activities and investment
banking business, which is composed of financial advisory and
underwriting activities. The Investment Banking and Capital
Markets reportable business segment provides the sales, trading,
origination and advisory effort for various fixed income, equity
and advisory products and services. The Asset Management
reportable business segment provides investment management
services to investors globally and invests capital in hedge funds,
separately managed accounts and third-party asset managers.
Our reportable business segment information is prepared using
the following methodologies:
•Net revenues, expenses and income (loss) from equity method
investments directly associated with each reportable business
segment are included in determining earnings (losses) from
continuing operations before income taxes.
•Net revenues and expenses not directly associated with
specific reportable business segments are allocated based on
the most relevant measures applicable, including each
reportable business segment’s net revenues, headcount and
other factors.
•Reportable business segment assets include an allocation of
indirect corporate assets that have been fully allocated to our
reportable business segments, generally based on each
reportable business segment’s capital utilization.
Net revenues presented for our Investment Banking and Capital
Markets reportable segment include allocations of interest
income and interest expense as we assess the profitability of
these businesses inclusive of the net interest revenue or expense
associated with the respective activities, including the net
interest cost of allocated long-term debt, which is a function of
the mix of each business's associated assets and liabilities and
the related funding costs. During 2023, we refined our allocated
net interest methodology to better reflect net interest expense
across our business units based on use of capital. Historical
periods have been recast to conform with the revised
methodology.
Our Chief Executive Officer and President serve collectively as
our chief operating decision maker (“CODM”). In this capacity, the
CODM evaluates the performance of each business segment and
allocate resources based on a variety of strategic and financial
considerations. These considerations include measures of
segment results and profitability, including net revenues and
earnings before income taxes, which are calculated in
accordance with U.S. GAAP and align with the amounts reported
in our Consolidated Statements of Earnings. The CODM regularly
reviews results and profitability measures to monitor budget
versus actual results. Furthermore, the ongoing monitoring of
budget versus actual results is used to assess the performance
of each reportable business segment and significantly influences
decisions about allocating resources.
Summary of our results by reportable business segment:
Year Ended November 30, | |||
$ in millions | 2025 | 2024 | 2023 |
Investment Banking and Capital Markets: | |||
Revenues | |||
Non-interest revenues ................................... | $6,551.9 | $6,011.3 | $4,331.1 |
Interest income .............................................. | 3,239.3 | 3,363.2 | 2,734.0 |
Total revenues (1) ......................................... | 9,791.2 | 9,374.5 | 7,065.1 |
Interest expense ............................................. | 3,183.2 | 3,170.2 | 2,560.7 |
Net revenues (1) ............................................ | 6,608.0 | 6,204.3 | 4,504.4 |
Non-interest expenses | |||
Compensation and benefits ......................... | 3,616.0 | 3,418.6 | 2,403.0 |
Brokerage and clearing fees ......................... | 445.7 | 372.2 | 327.4 |
Technology and communications ............... | 541.8 | 488.5 | 455.5 |
Business development .................................. | 297.4 | 243.9 | 165.8 |
Other segment items (3) (4) ......................... | 725.0 | 658.3 | 643.4 |
Total non-interest expenses ........................ | 5,625.9 | 5,181.5 | 3,995.1 |
Earnings before income taxes ...................... | $982.1 | $1,022.8 | $509.3 |
Asset Management: | |||
Revenues | |||
Non-interest revenues ................................... | $843.9 | $933.4 | $233.8 |
Interest income .............................................. | 163.0 | 180.3 | 134.6 |
Total revenues (2) ......................................... | 1,006.9 | 1,113.7 | 368.4 |
Interest expense ............................................. | 296.7 | 310.0 | 180.1 |
Net revenues (2) ............................................ | 710.2 | 803.7 | 188.3 |
Non-interest expenses | |||
Compensation and benefits ......................... | 244.2 | 241.0 | 132.2 |
Brokerage and clearing fees ......................... | 43.5 | 60.6 | 39.2 |
Technology and communications ............... | 56.4 | 58.1 | 21.6 |
Business development .................................. | 38.3 | 39.6 | 11.8 |
Cost of sales ................................................... | 190.9 | 206.3 | 29.4 |
Other segment items (3) (5) ......................... | 273.5 | 242.2 | 116.8 |
Total non-interest expenses ........................ | 846.8 | 847.8 | 351.0 |
Losses before income taxes (6) (7) ........... | $(136.6) | $(44.1) | $(162.7) |
Year Ended November 30, | |||
2025 | 2024 | 2023 | |
Total of Reportable Business Segments: | |||
Revenues | |||
Non-interest revenues ................................... | $7,395.8 | $6,944.7 | $4,564.9 |
Interest income .............................................. | 3,402.3 | 3,543.5 | 2,868.6 |
Total revenues ............................................... | 10,798.1 | 10,488.2 | 7,433.5 |
Interest expense ............................................. | 3,479.9 | 3,480.2 | 2,740.8 |
Net revenues .................................................. | 7,318.2 | 7,008.0 | 4,692.7 |
Non-interest expenses | |||
Compensation and benefits ......................... | 3,860.2 | 3,659.6 | 2,535.2 |
Brokerage and clearing fees ......................... | 489.2 | 432.8 | 366.6 |
Technology and communications ............... | 598.2 | 546.6 | 477.1 |
Business development .................................. | 335.7 | 283.5 | 177.6 |
Cost of sales ................................................... | 190.9 | 206.3 | 29.4 |
Other segment items (3) ............................... | 998.5 | 900.5 | 760.2 |
Total non-interest expenses ........................ | 6,472.7 | 6,029.3 | 4,346.1 |
Earnings before income taxes ..................... | $845.5 | $978.7 | $346.6 |
(1)Includes total net earnings related to equity method investees of $80.5 million,
$82.8 million and $13.0 million, respectively.
(2)Includes total net earnings (losses) related to equity method investees of
$14.8 million, $3.7 million and $(205.2) million, respectively.
(3)Primarily consists of underwriting costs, occupancy and equipment rental,
professional services, and depreciation and amortization.
(4)Includes depreciation and amortization of $101.5 million, $103.0 million and
$89.9 million, respectively.
(5)Includes depreciation and amortization of $90.8 million, $87.3 million and
$22.3 million, respectively.
(6)Consists of earnings before income taxes of $69.4 million, $42.0 million and
$38.0 million, respectively, related to asset management fees and investment
return and consists of losses before income taxes of $206.0 million,
$86.1 million and $200.7 million, respectively, related to Other investments.
(7)Includes losses before income taxes related to non-controlling interests of
$28.1 million, $27.4 million and $14.9 million, respectively.
Reconciliation of Reportable Segment Information:
Year Ended November 30, | |||
$ in millions | 2025 | 2024 | 2023 |
Total revenues for reportable segments ... | $7,318.2 | $7,008.0 | $4,692.7 |
Other revenues not allocated to segments | 25.5 | 26.8 | 7.7 |
Total consolidated net revenues ................ | $7,343.7 | $7,034.8 | $4,700.4 |
Total earnings for reportable segments .... | $845.5 | $978.7 | $346.6 |
Earnings not allocated to segments ........... | 25.5 | 26.8 | 7.7 |
Total consolidated earnings ........................ | $871.0 | $1,005.5 | $354.3 |
Assets by reportable business segment:
November 30, | ||
$ in millions | 2025 | 2024 |
Investment Banking and Capital Markets ................. | $70,335.5 | $59,142.9 |
Asset Management ...................................................... | 5,676.8 | 5,217.4 |
Total assets .................................................................. | $76,012.3 | $64,360.3 |
Net Revenues by Geographic Region
Net revenues for the Investment Banking and Capital Markets
reportable business segment are recorded in the geographic
region in which the position was risk-managed or, in the case of
investment banking, in which the senior coverage banker is
located. For the Asset Management reportable business
segment, net revenues are allocated according to the location of
the investment advisor or the location of the invested capital.
Year Ended November 30, | |||
$ in millions | 2025 | 2024 | 2023 |
Americas (1) ..................................... | $5,008.6 | $4,952.3 | $3,625.6 |
Europe and the Middle East (2) ..... | 1,781.4 | 1,577.5 | 775.9 |
Asia-Pacific ...................................... | 553.8 | 505.0 | 298.9 |
Net revenues .................................... | $7,343.8 | $7,034.8 | $4,700.4 |
(1)Primarily relates to U.S. results.
(2)Primarily relates to U.K. results.
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 | |
| 2016 | Feb 27, 2017 | |
| 2015 | Feb 19, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.