Jefferies Q1 2025 Earnings Report
Key Takeaways
Jefferies' Q1 2025 results showed net revenue of $1.59 billion and net income attributable to common shareholders of $127.8 million. While Advisory and Debt Underwriting grew significantly, Equity Underwriting and Asset Management returns were weaker. The return on adjusted tangible equity stood at 8.0%.
Total net revenues were $1.59 billion, down from $1.74 billion in Q1 2024.
Net income attributable to common shareholders was $127.8 million, down from $149.6 million.
Investment Banking Advisory revenue increased 17% to $397.8 million.
Return on adjusted tangible equity from continuing operations was 8.0%.
Jefferies
Jefferies
Jefferies Revenue by Segment
Forward Guidance
Jefferies expects to benefit from a strong backlog in investment banking and continued focus on risk and liquidity management, though challenges remain in asset management and capital markets due to macroeconomic and geopolitical factors.
Positive Outlook
- Advisory revenues increased 17% YoY on market share gains.
- Debt underwriting revenues rose 54% YoY.
- Equities trading revenue increased 10% YoY.
- Continued strength in prime services and global electronic trading.
- Strong investment banking backlog offers future revenue potential.
Challenges Ahead
- Total net revenues declined YoY to $1.59B.
- Asset Management net revenues declined 30% YoY.
- Equity underwriting revenue dropped 39% YoY.
- Fixed Income revenue declined 18% YoY.
- Non-compensation expenses increased due to charitable and business development costs.