Jefferies shares declined 3.3% on the first trading day after the release of its fiscal fourth-quarter earnings, despite the firm reporting year-over-year increases in both revenues and net earnings. The sell-off reflected investor concern over a 4% rise in non-interest expenses as well as the markedown and pre-tax loss of $30 million related to the firm’s Point Bonita investment.

For the quarter ended November 30, 2025, Jefferies reported net revenues of $2.07 billion, a 6% increase from $1.96 billion in the year-ago period. Net earnings attributable to common shareholders were $191 million, down from $206 million a year earlier, translating to diluted EPS of $0.87 versus $0.91 in Q4 2024. Adjusted net earnings, excluding the Point Bonita charge, rose to $213 million, or $0.96 per share, compared with $0.91 of adjusted EPS in the prior-year quarter.

Investment banking net revenues climbed 20% to $1.19 billion, driven by record advisory fees of $634 million—Jefferies’ second-best quarter in that line—and a 78% increase in equity underwriting revenues to $340 million. Capital markets net revenues grew 6% to $692 million, led by an 18% rise in equities revenues to $486 million, partially offset by a 14% decline in fixed income revenues to $206 million. Asset management net revenues decreased 41% to $187 million, reflecting lower performance fees and the impact of the Point Bonita write-down.

Jefferies’ management highlighted ongoing opportunities in corporate advisory and electronic equities trading as key drivers for 2026 growth. The firm’s compensation ratio of 52.2% and non-compensation ratio of 35.5% in Q4 point to margin pressure from higher staffing and technology investments. A quarterly cash dividend of $0.40 per share was declared, underscoring confidence in the balance sheet, while the firm continues to target market share gains and margin expansion in a ‘more normal’ operating environment.