For Immediate Release

Jefferies Financial Group Inc. (NYSE: JEF)

September 25, 2024

Q3 Financial Highlights

•Net earnings attributable to common shareholders of $167 million, or $0.75 per diluted common share

•Pre-tax income from continuing operations of $253 million

•QTD and YTD annualized adjusted net earnings to shareholders on adjusted tangible shareholders' equity from continuing operations1 of 10.3% and 10.0%, respectively

•Net revenues of $1.68 billion

Ø    Investment Banking net revenues of $949 million, including record quarterly advisory revenues of $592 million

Ø Capital Markets net revenues of $671 million

Ø Asset Management net revenues (before allocated net interest4) of $75 million

•At August 31, 2024, we had 205.5 million common shares outstanding and 253.8 million shares outstanding on a fully diluted basis2. Our book value per common share was $48.89 and adjusted tangible book value per fully diluted share3 was $31.87

Quarterly Cash Dividend

The Jefferies Board of Directors declared a quarterly cash dividend equal to $0.35 per Jefferies common share, payable on November 27, 2024 to record holders of Jefferies common shares on November 18, 2024.

Management Comments

"Capital Markets net revenues of $671 million were down only 3.0% versus an exceptionally strong prior quarter. Capital Markets net revenues were up 28.1% from the same quarter last year, driven by solid overall market conditions and strength across our diversified Equities and Fixed Income businesses. Equities net revenues increased 42.3% from the prior year comparable quarter, with strong performance in our cash and electronic businesses. Fixed Income net revenues increased 13.2% from the prior year comparable quarter, primarily reflecting strength across our credit trading businesses.

Financial Summary

$ in thousands, except per share amounts			Three Months Ended August 31,									Nine Months Ended August 31,
			2024			2023			% Change			2024			2023			% Change
Net revenues:
Investment Banking and Capital Markets			$	1,620,091		$	1,168,231		39%			$	4,565,826		$	3,446,382		32%
Asset Management			59,012			10,143			482%			488,919			47,699			925%
Other			4,449			3,735			19%			23,455			9,130			157%
Net revenues			1,683,552			1,182,109			42%			5,078,200			3,503,211			45%
Net earnings from continuing operations before income taxes			252,687			91,071			177%			700,683			267,008			162%
Income tax expense			78,011			37,124			110%			207,077			75,053			176%
Net earnings from continuing operations			174,676			53,947			224%			493,606			191,955			157%
Net earnings (losses) from discontinued operations (including gain on disposal), net of income taxes			6,363			—			N/M			(1,488)			—			N/M
Net earnings			181,039			53,947			236%			492,118			191,955			156%
Net losses attributable to noncontrolling interests			(6,874)			(3,772)			82%			(19,102)			(13,340)			43%
Net losses attributable to redeemable noncontrolling interests			—			—			N/M			—			(454)			(100)%
Preferred stock dividends			20,785			6,300			230%			48,501			8,316			483%
Net earnings attributable to common shareholders			$	167,128		$	51,419		225%			$	462,719		$	197,433		134%
Earnings per common share:
Basic from continuing operations			$	0.75		$	0.22		241%			$	2.12		$	0.83		155%
Basic from discontinued operations			0.03			—			N/M			—			—			N/M
Basic			$	0.78		$	0.22		254%			$	2.12		$	0.83		156%
Diluted from continuing operations			$	0.72		$	0.22		227%			$	2.06		$	0.82		151%
Diluted from discontinued operations			0.03			—			N/M			—			—			N/M
Diluted			$	0.75		$	0.22		243%			$	2.06		$	0.82		152%
Weighted average common shares			214,452			228,353						218,106			236,666
Weighted average diluted common shares			221,699			232,041						224,180			240,658

    

N/M — Not Meaningful

* * * *

Amounts herein pertaining to August 31, 2024 represent a preliminary estimate as of the date of this earnings release and may be revised upon filing our Quarterly Report on Form 10-Q with the Securities and Exchange Commission (“SEC”). More information on our results of operations for the three and nine months ended August 31, 2024 will be provided upon filing our Quarterly Report on Form 10-Q with the SEC, which we expect to file on or about October 9, 2024.

This press release contains certain “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current views and include statements about our future and statements that are not historical facts. These forward-looking statements are usually preceded by the words “should,” “expect,” “intend,” “may,” “will,” "would," or similar expressions. Forward-looking statements may contain expectations regarding revenues, earnings, operations, and other results, and may include statements of future performance, plans, and objectives. Forward-looking statements may also include statements pertaining to our strategies for future development of our businesses and products. Forward-looking statements represent only our belief regarding future events, many of which by their nature are inherently uncertain. It is possible that the actual results may differ, possibly materially, from the anticipated results indicated in these forward-looking statements. Information regarding important factors, including Risk Factors that could cause actual results to differ, perhaps materially, from those in our forward-looking statements is contained in reports we file with the SEC. You should read and interpret any forward-looking statement together with reports we file with the SEC. We undertake no obligation to update or revise any such forward-looking statement to reflect subsequent circumstances.

Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy will be profitable or equal the corresponding indicated performance level(s).

Components of Numerators and Denominators for Earnings Per Common Share

1.Annualized adjusted net earnings to shareholders on adjusted tangible shareholders' equity from continuing operations represents a non-GAAP financial measure. Refer to schedule on page 10 for a reconciliation to U.S. GAAP amounts.

2.Shares outstanding on a fully diluted basis (a non-GAAP financial measure) is defined as common shares outstanding plus preferred shares, restricted stock units, stock options and other shares. Refer to schedule on page 11 for a reconciliation to U.S. GAAP amounts.

3.Adjusted tangible book value per fully diluted share (a non-GAAP financial measure) is defined as adjusted tangible book value (a non-GAAP financial measure) divided by shares outstanding on a fully diluted basis (a non-GAAP financial measure). Refer to schedule on page 11 for a reconciliation to U.S. GAAP amounts.

4.Allocated net interest represents an allocation to Asset Management of certain of our long-term debt interest expense, net of interest income on our Cash and cash equivalents and other sources of liquidity. Allocated net interest has been disaggregated to increase transparency and to present direct Asset Management revenues. We believe that aggregating Allocated net interest would obscure the revenue results by including an amount that is unique to our credit spreads, debt maturity profile, capital structure, liquidity risks and allocation methods.

5.Allocated net interest is not separately disaggregated for Investment Banking and Capital Markets. This presentation is aligned to our Investment Banking and Capital Markets internal performance measurement.

6.Asset management fees and revenues include management and performance fees from funds and accounts managed by us as well as our share of fees received by affiliated asset management companies with which we have revenue and profit share arrangements, as well as earnings on our ownership interest in affiliated asset managers.

7.Number of trading loss days is calculated based on trading activities in our Investment Banking and Capital Markets and Asset Management business segments, excluding certain Other investments.

8.VaR estimates the potential loss in value of trading positions due to adverse market movements over a one-day time horizon with a 95% confidence level. For a further discussion of the calculation of VaR, see "Value-at-Risk" in Part II, Item 7A "Quantitative and Qualitative Disclosures About Market Risk" in our Annual Report on Form 10-K for the year ended November 30, 2023.

9.Level 3 financial instruments represent those financial instruments classified as such under Accounting Standards Codification 820, accounted for at fair value and included within Financial instruments owned.

10.Tangible shareholders' equity (a non-GAAP financial measure) is defined as shareholders' equity less Intangible assets and goodwill. We believe that tangible shareholders' equity is meaningful for valuation purposes, as financial companies are often measured as a multiple of tangible shareholders' equity, making these ratios meaningful for investors.

11.Leverage ratio equals total assets divided by total equity.

12.Tangible gross leverage ratio (a non-GAAP financial measure) equals total assets less goodwill and intangible assets divided by tangible shareholders' equity. The tangible gross leverage ratio is used by rating agencies in assessing our leverage ratio.

13.Beginning in fiscal 2024, we now refer to "Merchant banking" as “Other investments” in our Asset Management reportable segment.

The following tables reconcile our non-GAAP financial measures to their respective U.S. GAAP financial measures. Management believes such non-GAAP financial measures are useful to investors as they allow them to view our results through the eyes of management, while facilitating a comparison across historical periods. These measures should not be considered a substitute for, or superior to, measures prepared in accordance with U.S. GAAP.

Annualized Return on Adjusted Tangible Equity Reconciliation

Adjusted Tangible Book Value and Fully Diluted Shares Outstanding GAAP Reconciliation

Reconciliation of book value (shareholders' equity) to adjusted tangible book value and common shares outstanding to fully diluted shares outstanding: