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Feb 28
Jefferies Q1 2025 Earnings Report
Jefferies reported a year-over-year decline in net income and revenues in Q1 2025, with strong performance in Advisory and Debt Underwriting offset by declines in Asset Management and Equity Underwriting.
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
Revenue by Segment
Advisory Revenue
CapyFin.comEquity Underwriting Revenue
CapyFin.comDebt Underwriting Revenue
CapyFin.comOther Investment Banking Revenue
CapyFin.comTotal Investment Banking Revenue
CapyFin.comTotal Capital Markets Revenue
CapyFin.com 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.