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May 31
Jefferies Q2 2025 Earnings Report
Jefferies reported Q2 2025 earnings with $88 million in net income on $1.63 billion in revenue.
Key Takeaways
Jefferies delivered stable revenue and modest profitability amid a challenging market. Strong advisory and equities performance partially offset declines in fixed income and equity underwriting.
Net income was $88 million with EPS of $0.40.
Revenue totaled $1.63 billion, down slightly year-over-year.
Advisory revenue surged due to higher M&A activity and market share gains.
Fixed income revenue fell significantly due to reduced activity and difficult trading conditions.
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
Management expressed optimism for stronger performance in the second half of 2025 based on improving market conditions and a strong deal pipeline.
Positive Outlook
- Noticeable pickup in May activity and investor confidence.
- Strong backlog across advisory and underwriting businesses.
- Increased client discussions on capital formation and strategic transactions.
- Advisory revenues benefited from market share gains.
- Improved asset management investment returns.
Challenges Ahead
- Weak fixed income trading amid low global activity and volatile credit spreads.
- Equity underwriting activity reduced by early-quarter market uncertainty.
- Jefferies Finance activity levels remained subdued.
- Higher non-compensation expenses including tech and communications.
- Low return on equity due to one-time non-compensation costs.