Jefferies Financial Reports Earnings Miss Despite Strong Revenue Growth

Jefferies Financial Group Inc. (NYSE: JEF) reported first-quarter results that fell short of earnings expectations, even as the firm delivered strong revenue growth across several business segments.

The investment bank posted adjusted earnings per share of $0.70, below the consensus estimate of $0.95. Revenue totaled $2.02 billion, matching analyst expectations and rising 27% year over year from $1.59 billion in the same quarter last year.

Investment Banking net revenue reached a record $1.02 billion, increasing 45% year over year, driven by improved performance in advisory and equity underwriting. Capital Markets net revenue totaled $779 million, up 12% year over year, with equities delivering a record first-quarter performance of $558 million, up 37%.

Fixed Income revenue declined to $220 million from $289 million in the prior year, reflecting mark-to-market losses associated with Market Financial Solutions.

The company’s compensation ratio increased slightly to 53.8% from 52.8% a year earlier. Return on adjusted tangible shareholders’ equity improved to 10.9%, up from 8.0% in the first quarter of 2025.