[{"_1":2,"_3":-5,"_4":-5},"loaderData",{"_5":6,"_7":8},"actionData","errors","root",{"_99":100},"en-item",{"_9":10,"_10":11},"kind","item",{"_12":13,"_14":15,"_16":17,"_18":19,"_20":21,"_22":23,"_24":25,"_26":27,"_28":29,"_30":31,"_32":31,"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":-5,"_48":49,"_50":-5,"_51":-5,"_52":53,"_54":55,"_56":57,"_58":42,"_59":42,"_60":61,"_62":42,"_63":64},"id","sfnm8for80at2178fch7npljt","revision",2,"title","Jefferies 2026财年第三季度资产813亿美元净收益6.62亿美元","originalTitle","Jefferies Financial Group Inc. (0000096223) (Filer)","summary","Jefferies Financial Group Inc. 截至2026年8月31日的季度总资产813.02亿美元，总负债705.49亿美元，股东权益107.52亿美元；当季归属于普通股股东净收益6.62亿美元，同比增长50.4%。公司现金及现金等价物168.84亿美元，Level 3资产89.14亿美元。投资银行与资本市场收入增长显著，资产管理业务出现亏损。","reason","公司资产规模扩张且流动性充裕，但Level 3资产波动及部分业务亏损提示需关注衍生品风险敞口与资产质量变化。","source",{"_12":90,"_91":92,"_9":93,"_94":42,"_95":96,"_97":98},"links",{"_87":88,"_78":89},"publishedAt","2026-10-09T20:16:49.000Z","discoveredAt","2026-10-09T23:26:35.589Z","timelineAt","category","ai-products","tags",[84,85,86],"stockSymbols",[83],"score",76,"selected",true,"channel","news","story",{"_73":74,"_16":75},"x","readingMode","full","author","language","body",{"_64":77,"_78":-5,"_79":80,"_81":82},"outline",[],"relatedStories",[76],"indexable","markdownAvailable","group",{"_65":66,"_45":67,"_68":69,"_70":71,"_72":71},"hasTranslation","bodyLanguage","zh","factId","fdzOb9VYohOw",{"_73":74,"_16":75},"reportCount",1,"additionalSourceCount",0,"developmentCount","publicId","f09cbe94-03d1-4911-aa8d-1fa673f50de3","Jefferies发行结构性票据",{"_73":74,"_16":75},"

美国

证券交易委员会

华盛顿特区 20549

10-Q 表


☒	根据《1934 年证券交易法》第 13 或 15(d) 条提交的季度报告

截至 2026 年 8 月 31 日的季度

或


☐	根据《1934 年证券交易法》第 13 或 15(d) 条提交的过渡报告

从到

委员会文件编号 1-05721

杰弗里金融集团公司

（在章程中指定的注册人全名）

纽约

13-2615557

（州或其他司法管辖区
的成立或组织）

（联邦税务局雇主
识别号码）

520 美国大道,

纽约，

纽约

10022

（主要执行办公室地址）

（邮政编码）

注册人的电话号码，包括区号：(212) 284-2300

根据《法案》第 12(b) 条注册的证券：


每类证券的名称	交易符号	每种证券的注册交易所名称
有投票权的普通股，面值 1 美元/股	JEF	纽约证券交易所
4.850% 2027 年到期高级债券	JEF 27A	纽约证券交易所
5.875% 2028 年到期高级债券	JEF 28	纽约证券交易所
5.125% 2031 年到期高级债券	JEF 31	纽约证券交易所
2.750% 2032 年到期高级债券	JEF 32A	纽约证券交易所
6.200% 2034 年到期高级债券	JEF 34	纽约证券交易所
5.500% 2036 年到期高级债券	JEF 36	纽约证券交易所

通过勾选方框表明注册人（1）是否已提交根据《证券交易法》第 13 或 15(d) 条在前 12 个月（或注册人需提交此类报告的较短期间）内应提交的所有报告，以及（2）是否在过去 90 天内已受此类提交要求约束。是 ☒ 否 ☐

通过勾选方框表明注册人是否在前 12 个月（或注册人需提交此类文件的较短期间）内已提交根据规章 S-T 第 405 条（本章第 232.405 条）应提交的每个交互式数据文件。是 ☒ 否 ☐

通过勾选方框表明注册人是大型加速提交者、加速提交者、非加速提交者、小规模报告公司或新兴成长公司。请参见《交易所法》第 12b-2 条中“大型加速提交者”、“加速提交者”、“小规模报告公司”和“新兴成长公司”的定义。

大型加速提交者

☒

加速提交者

☐

非加速申报者

☐

小报告公司

☐

新兴成长公司

☐

如果是一家新兴成长公司，请勾选方框表示注册人是否选择不使用根据《交易法》第13(a)条提供的任何新修订的财务会计标准的延长过渡期。 ☐

请勾选方框表示注册人是否为壳公司（根据《交易法》第12b-2条定义）。是 ☐ 否 ☒

截至2026年9月29日，有表决权和无表决权普通股的流通股数分别为189,090,556股和40,579,081股。

Jefferies Financial Group, Inc.

10-Q季度报告索引

2026年8月31日


第一部分：财务信息
	页码
项目1. 财务报表	2
合并财务状况表（未审计）	2
合并收益表（未审计）	3
合并综合收益表（未审计）	4
合并股东权益变动表（未审计）	5
合并现金流量表（未审计）	6
合并财务报表附注（未审计）	8
项目2. 管理层讨论与分析	45
项目3. 关于市场风险的定量和定性披露	67
项目4. 控制和程序	67

第二部分：其他信息

项目1. 法律诉讼	68
项目1A. 风险因素	68
项目2. 未注册的股权证券销售及资金使用	68
项目5. 其他信息	68
项目6. 附件	68

第一部分：财务信息

项目1. 财务报表。



合并财务状况表（未审计）	2026年8月31日	2026年11月30日


金额以千美元计，除每股金额和股数外	2026	2025

资产
现金及现金等价物	$	16,883,584		$	14,043,889
为监管目的而隔离或存入的现金和证券，或存入清算和存管机构	1,177,954		917,697
按公允价值计算的自有金融工具（包括质押证券17,552,721美元和17,419,373美元）	27,282,633		27,722,739
对关联方的投资和贷款	1,653,340		1,496,125
借入的证券	11,158,355		8,295,161
按协议回购的证券	7,840,742		8,449,107
按公允价值计算的作为抵押品的证券	289,869		200,495



应收款项：
经纪商、交易商和清算机构	3,096,144		4,310,143
客户	4,416,818		3,439,921
费用、利息和其他	877,248		806,324
营业场所和设备	1,193,043		1,246,470
商誉	1,726,023		1,837,570
待售资产	294,060		—





其他资产（包括质押资产675,462美元和627,259美元）	3,412,045		3,246,706
总资产	$	81,301,858		$	76,012,347
负债和权益
短期借款	$	1,465,781		$	1,767,206
按公允价值计算的尚未购买的已售金融工具	15,095,989		13,320,152



借出的证券	4,023,003		2,540,759
按回购协议出售的证券	12,920,669		12,156,737
其他担保融资（按公允价值计算，包括413,121和425,964）	2,336,070		2,885,878
返还作为抵押品收到的证券的义务，按公允价值计算	289,869		200,495



应付账款：
经纪人、交易商和清算机构	5,182,459		6,955,100
客户	6,175,387		5,216,714
租赁负债	541,486		594,097
待售负债	302,551		—
应计费用和其他负债	3,756,749		3,836,709





长期债务（按公允价值计算，包括3,941,920和3,734,843）	18,458,995		15,895,891
总负债	$	70,549,008		$	65,369,738
中间级股权
可赎回非控制性权益	406		406



股权
系列B优先股，面值每份1美元，授权70,000份；已发行和流通0份和55,125份	—		55
有投票权普通股，面值每份1美元，授权552,264,500和565,000,000份；已发行和流通189,078,660和206,296,167份，扣除132,039,410和114,821,903份库藏股后	189,079		206,296
无投票权普通股，面值每份1美元，授权47,735,500和35,000,000份；已发行和流通40,579,081和0份	40,579		—
额外实收资本	1,850,209		2,177,954
其他综合亏损累计额	(361,922)		(384,434)
留存收益	8,996,409		8,574,825
杰弗里金融集团公司的总股东权益	10,714,354		10,574,696
非控制性权益	38,090		67,507
总权益	$	10,752,444		$	10,642,203
总负债和权益	$	81,301,858		$	76,012,347

请参阅合并财务报表的附注。


2		杰弗里金融集团公司

合并损益表（未经审计）


	截至8月31日的三个月		截至8月31日的九个月
金额以千为单位，除非另有说明	2026		2025		2026		2025


收入
投资银行	$	1,303,833			$	1,088,197		$	3,531,742	$	2,606,976
自营交易	468,655			486,893			1,444,819		1,232,630
佣金和其他费用	392,932			325,178			1,161,150		966,711
资产管理费用和收入	9,869			13,079			87,019		118,563
利息	922,999			846,894			2,590,080		2,570,090





其他	132,510			147,433			405,450		379,883
总收入	3,230,798			2,907,674			9,220,260		7,874,853
利息支出	1,008,864			860,242			2,774,745		2,599,955
净收入	2,221,934			2,047,432			6,445,515		5,274,898
非利息支出
薪酬和福利	1,192,745			1,083,510			3,466,880		2,779,476
经纪和清算费用	139,475			121,164			420,053		360,345
承销费用	31,858			20,332			90,099		52,703
技术和通信	173,235			157,171			495,953		442,844
办公和设备租赁	34,713			32,908			103,072		93,818
业务发展	83,000			78,999			247,530		231,360
专业服务	88,652			73,329			264,303		223,563
折旧和摊销	43,282			53,230			147,475		136,471
销售成本	22,922			34,430			84,095		118,959





其他费用	61,014			60,544			247,252		217,578
总非利息支出	1,870,896			1,715,617			5,566,712		4,657,117
税前收益	351,038			331,815			878,803		617,781
所得税费用	62,785			89,311			181,226		147,033


净收益	288,253			242,504			697,577		470,748
归属于非控制性权益的净损失	(2,740)			(10,041)			(24,038)		(24,692)

优先股股息	7,110			28,559			59,897		55,528
归属于普通股东的净收益	$	283,883			$	223,986		$	661,718	$	439,912

有投票权普通股每股收益（1）
基本	$	1.22			$	1.04		$	2.99	$	2.05
稀释	$	1.18			$	1.01		$	2.88	$	1.98
基本加权平均普通股份数	198,437			215,293			208,132		214,977
稀释加权平均普通股份数	206,345			222,715			215,531		222,539

无投票权普通股每股收益（1）
基本	$	1.35			$	—		$	3.53	$	—
稀释	$	1.23			$	—		$	3.06	$	—
基本加权平均普通股份数	30,293			—			11,353		—
稀释加权平均普通股份数	38,981			—			32,624		—

(1)尽管有投票权和无投票权普通股的股息率相同，但由于2026年股份活动的时间不同，每股普通股的基本和稀释收益有所不同。有关进一步讨论，请参阅注释16，总权益。

参见合并财务报表的附注。


2026年8月10-Q表		3

合并综合收益表 (未经审计)


	截至8月31日的三个月		截至8月31日的九个月
单位：千美元	2026		2025		2026		2025


净收益	$	288,253			$	242,504		$	697,577	$	470,748
税后其他综合收益（损失）：

货币折算调整和其他（1）	(1,802)			8,551			2,184		39,998
与特定工具信用风险相关的公允价值变动（2）	(5,196)			(43,882)			17,971		7,945
现金流量对冲	517			—			263		—






可供出售证券未实现收益	602			99			2,094		261
税后其他综合收益（损失）总额	(5,879)			(35,232)			22,512		48,204
综合收益	282,374			207,272			720,089		518,952
归属于非控制性权益的净损失	(2,740)			(10,041)			(24,038)		(24,692)




优先股股息	7,110			28,559			59,897		55,528
归属于普通股东的综合收益	$	278,004			$	188,754		$	684,230	$	488,116

(1)包括截至2026年8月31日三个月和九个月的税费用分别为0.9百万美元和6.4百万美元，以及截至2025年8月31日三个月和九个月的税费用分别为4.5百万美元和14.6百万美元。

(2)包括截至2026年8月31日三个月的税项收益1.6百万美元，以及截至2026年8月31日九个月的税费用6.1百万美元。包括截至2025年8月31日三个月的税项收益15.1百万美元和截至2025年8月31日九个月的税费用3.4百万美元。

参见合并财务报表的附注。


4		Jefferies Financial Group Inc.

合并股东权益变动表 (未经审计)


	截至8月31日的三个月		截至8月31日的九个月
单位：千美元，除面值和每股金额外	2026		2025		2026		2025


优先股，面值1美元
期初余额	$	55			$	55		$	55	$	55
优先股转换为非投票普通股	(55)			—			(55)		—
期末余额	$	—			$	55		$	—	$	55
投票普通股，面值1美元
期初余额	$	194,145			$	206,272		$	206,296	$	205,504
购买普通股作为库藏股	(1,328)			(16)			(8,286)		(735)

投票普通股与非投票普通股的交换	(3,770)			—			(13,017)		—




其他	32			24			4,086		1,511
期末余额	$	189,079			$	206,280		$	189,079	$	206,280
非投票普通股，面值1美元
期初余额	$	9,247			$	—		$	—	$	—
投票普通股与非投票普通股的交换	3,770			—			13,017		—
优先股转换为非投票普通股	27,562			—			27,562		—
期末余额	$	40,579			$	—		$	40,579	$	—
额外实收资本
期初余额	$	1,915,162			$	2,129,358		$	2,177,954	$	2,104,199
股权激励费用	22,170			13,980			95,767		67,810

购买普通股作为库藏股	(68,204)			(902)			(432,960)		(57,751)
优先股转换为非投票普通股	(27,507)			—			(27,507)		—
股息等值	7,153			6,138			23,574		23,089

与合并子公司权益相关的变动	—			(4,710)			4,606		(5,833)



其他	1,435			1,545			8,775		13,895
期末余额	$	1,850,209			$	2,145,409		$	1,850,209	$	2,145,409
累计其他综合损失，税后
期初余额	$	(356,043)			$	(339,695)		$	(384,434)	$	(423,131)



税后其他综合（损失）收益	(5,879)			(35,232)			22,512		48,204
期末余额	$	(361,922)			$	(374,927)		$	(361,922)	$	(374,927)
留存收益
期初余额	$	8,804,430			$	8,309,035		$	8,574,825	$	8,270,145
归属于Jefferies Financial Group Inc.的净收益	290,993			252,545			721,615		495,440
普通股股息（每股0.40美元、0.40美元、1.20美元、1.20美元）	(99,014)			(88,648)			(277,981)		(270,603)
优先股股息	—			(11,025)			(22,050)		(33,075)






期末余额	$	8,996,409			$	8,461,907		$	8,996,409	$	8,461,907
杰富瑞金融集团公司的总股东权益	$	10,714,354			$	10,438,724		$	10,714,354	$	10,438,724
非控股权益
期初余额	$	40,389			$	77,149		$	67,507	$	68,215
归属于非控股权益的净损失	(2,740)			(10,041)			(24,038)		(24,692)
出资	300			1,455			981		18,909
分配	(177)			(10,464)			(7,606)		(14,787)





其他	318			4,087			1,246		14,541
期末余额	$	38,090			$	62,186		$	38,090	$	62,186
总权益	$	10,752,444			$	10,500,910		$	10,752,444	$	10,500,910

详见合并财务报表的附注。


2026年8月10-Q表		5

合并现金流量表 (未经审计)


	截至8月31日的九个月
金额以千美元计	2026	2025


经营活动产生的现金流量：
净收益	$	697,577		$	470,748
调整项目以将净收益调节为经营活动产生的净现金：
折旧和摊销	128,699		144,434
资产减值	65,413		—

基于股票的薪酬	95,767		67,810
净坏账费用	30,583		16,931
与关联方投资和贷款相关的收益	(99,082)		(54,270)
从关联方投资中收到的分配	52,400		71,368

出售资产的损失	—		12,566


其他调整	47,095		434,110
资产和负债的净变动：




应收款项：
经纪人、交易商和清算机构	1,210,771		(193,514)
客户	(976,898)		(533,734)



费用、利息和其他	(116,742)		(60,040)
借入的证券	(2,867,877)		(945,232)
持有的金融工具	416,562		(1,712,385)
按协议回购的证券	597,100		(1,664,568)



其他资产	(95,054)		(266,563)
应付款项：
经纪人、交易商和清算机构	(1,769,291)		(26,372)



客户	958,673		374,518
贷出的证券	1,486,559		(62,979)
尚未购买的已售金融工具	1,792,713		1,260,915
按协议回购的证券	771,786		(312,049)
租赁负债	(58,788)		(48,280)



应计费用和其他负债	85,540		(432,723)
经营活动产生的净现金	2,453,506		(3,459,309)

投资活动产生的现金流量：
对关联方投资和贷款的出资	(766,395)		(466,338)
来自关联方投资的资本分配和关联方贷款的偿还	593,556		379,193
贷款、票据和其他应收款的发放和购买	(24,782)		—
贷款、票据和其他应收款的本金收回	156		—
与场所和设备相关的净支付	(162,203)		(151,425)
出售资产的收益	—		26,843









投资活动使用的净现金	(359,668)		(211,727)


6		杰富瑞金融集团有限公司

合并现金流量表 (未经审计)


	截至8月31日的九个月
金额以千美元计	2026	2025


融资活动产生的现金流量：
短期借款的收益	5,211,712		7,170,583
短期借款的支付	(5,497,779)		(6,363,688)
长期债务发行的收益（扣除发行成本）	6,968,788		3,852,721
长期债务的偿还	(4,397,648)		(1,758,422)

购买普通股用于库存	(439,932)		(58,486)
向普通股和优先股股东支付的股息	(276,460)		(280,589)
其他担保融资的净收益（支付）	(539,583)		497,768
银行透支的净变动	(10,278)		(22,050)
非控股权益的出资收益	981		18,909
向非控股权益支付的分配	(7,606)		(8,084)





其他	17,470		9,573
融资活动提供的净现金	1,029,665		3,058,235

汇率变动对现金、现金等价物和受限现金的影响	(2,566)		17,281
现金、现金等价物和受限现金的变动，重新分类自（至）待售资产	(20,985)		—
现金、现金等价物和受限现金的净增加（减少）	3,120,937		(595,520)
期初现金、现金等价物和受限现金	14,961,586		13,165,612
期末现金、现金等价物和受限现金	$	18,061,538		$	12,570,092


	截至8月31日的九个月
单位：千美元	2026	2025


现金流量信息的补充披露：
期间支付的现金：
利息	$	2,706,822		$	2,588,490
所得税，净额（1）	209,106		235,549

(1)包括截至2026年8月31日和2025年8月31日的九个月内购买的税额抵免总额分别为6060万美元和14970万美元。

非现金投资活动：

截至2026年8月31日的九个月内，我们以4000万美元的公允市场价值交换了房地产资产。

截至2025年8月31日的九个月内，我们捐赠了价值570万美元的地产。

非现金融资活动：

截至2026年8月31日的九个月内，55,125股优先股转换为27,562,500股无投票权普通股。

我们合并资产负债表中按类别划分的现金、现金等价物和受限现金：



	8月31日	11月30日
单位：千美元	2026	2025
现金和现金等价物	$	16,883,584		$	14,043,889
存放在清算和托管机构用于监管目的的现金	1,177,954		917,697

现金、现金等价物和受限现金总额	$	18,061,538		$	14,961,586

参见合并财务报表附注。


2026年8月10-Q表		7

合并财务报表附注

（未经审计）

索引


	页码
注释1. 组织架构与列报基础	9
注释2. 重要会计政策摘要	9
注释3. 会计发展	9
注释4. 持有待售的资产和负债	10
注释5. 公允价值披露	11
注释6. 衍生金融工具	21
注释7. 抵押交易	24
注释8. 资产证券化活动	25
注释9. 可变利益实体	26
注释10. 投资	29
注释11. 按摊余成本计量的金融资产的信用损失	31
注释12. 商誉和无形资产	32
注释13. 与客户合同的收入	33
注释14. 薪酬计划	35


注释15. 借款	35
注释16. 总权益	37
注释17. 所得税	40
注释18. 承诺、或有事项和担保	40
注释19. 监管要求	42
注释20. 分部报告	42
注释21. 关联方交易	44


8		Jefferies Financial Group Inc.

合并财务报表附注

（未经审计）

注释1. 组织架构与列报基础

组织架构

Jefferies Financial Group Inc. 是一家总部位于美国的全球投资银行和资本市场公司。随附的合并财务报表代表了 Jefferies Financial Group Inc. 及其子公司的账目（统称为“公司”、“我们”或“我们”）。我们与合并的子公司以及通过我们的关联公司，提供广泛范围的金融服务，涵盖投资银行、资本市场和资产管理。

我们分为两个可报告业务部门：(1) 投资银行与资本市场和(2) 资产管理。投资银行与资本市场可报告业务部门包括我们的资本市场活动和投资银行业务，该业务为客户提供承销和财务顾问服务。我们在美洲；欧洲和中东；以及亚太地区开展业务。投资银行与资本市场还包括我们的公司贷款合资企业（“Jefferies Finance LLC”或“Jefferies Finance”），以及我们的商业房地产合资企业（“Berkadia Commercial Mortgage Holding LLC”或“Berkadia”）。资产管理可报告业务部门为全球投资者提供另类投资管理服务，并从我们或我们附属的资产管理公司投资和管理的资本中产生投资收入，包括我们原有投行组合的某些剩余业务和资产。

2026年8月31日之后，Jefferies的子公司Stratos Group International, LLC（“Stratos”）与AvaTrade Markets Ltd.达成一项最终协议，出售其大部分资产和业务运营。这些收购资产预计将在接下来的120天内迁移。

列报基础

附带的合并财务报表已按照美国通用会计准则（“U.S. GAAP”）编制，并应与我们截至2025年11月30日的年度报告中包含的合并财务报表及其中的注释一并阅读。我们截至2025年11月30日的年度报告中的某些附注披露在合并财务报表中已被简化或省略，因为根据U.S. GAAP的中期报告要求，这些披露并非必需。合并财务报表反映了管理层认为对于公允列报中期期间结果所必需的所有正常、经常性调整。我们合并财务报表中列示的中期期间的结果不一定代表整个年度的结果。

为了按照U.S. GAAP编制这些合并财务报表，我们对资产和负债的报告、或有资产和负债的披露以及报告期间收入和费用的报告金额做出了一些估计和假设。其中最重要的估计和假设涉及公允价值计量、薪酬和福利、商誉和无形资产以及所得税的会计处理。尽管这些和其他估计和假设基于最可靠的信息，但实际结果可能与这些估计有重大差异。

我们合并财务报表及其相应附注中的某些前期金额已重新分类，以与本期的列报保持一致。此类重新分类对净收益、总资产、总负债或股东权益没有影响。

合并

我们的政策是合并我们通过拥有多数投票权股份而控制的所有实体。此外，我们还合并符合“可变利益实体”（“VIE”）定义的实体，且我们是该VIE的主要受益人。主要受益人是指有权直接指导对实体经济表现最具影响的活动的方，并且有义务承担该实体的损失或有权利从该实体获得可能对实体具有重大影响的收益。对于未完全控股的合并实体，第三方持有的股权在我们的合并资产负债表和合并股东权益变动表中列为非控制性权益。归属于非控制性权益的净收益部分在我们的合并损益表中列为归属于非控制性权益的净收益（损失）。

在我们对某实体具有重大影响但不具有控制权且该实体不符合VIE定义的情况下，我们根据美国通用会计准则下的公允价值选择权，采用权益法核算或公允价值核算，我们所占的净收益或损益分别记录在其他收入或自营交易收入中。我们还与第三方投资者成立了非合并投资工具，这些工具通常以合伙企业或有限责任公司形式设立，并按公允价值计量。我们作为这些投资工具的一般合伙人或管理成员，并通常为第三方投资者提供了终止或“踢出”权利。

集团内部账户和交易在合并时予以抵销。

注释2. 重要会计政策摘要

有关公司重要会计政策的详细讨论，请参阅我们截至2025年11月30日的年度报告10-K表格中包含的合并财务报表中的注释2，重要会计政策摘要。

在截至2026年8月31日的三个月和九个月内，公司的重要会计政策没有发生重大变化。

注释3. 会计发展

未来期间将采用的会计准则

所得税。2023年12月，FASB发布了ASU No. 2023-09（“ASU 2023-09”），改进所得税披露。该指引旨在通过要求（i）在税率调节中保持一致的类别并增加信息的细分程度，以及（ii）按司法管辖区细分已支付的所得税，来改进所得税披露要求。该指引对所得税披露要求进行了若干其他修改。ASU 2023-09中的修正案适用于2024年12月15日之后开始的财年，并且可以追溯适用，也可以选择前瞻性适用。ASU 2023-09的采用


2026年8月10-Q表		9

合并财务报表附注

（未审）

预计仅会影响披露内容，不会对我们的财务状况、经营成果或现金流量产生影响。

费用. 2024年11月，FASB发布了ASU No. 2024-03（“ASU 2024-03”），即《利润表费用分解》。该指南主要要求对某些类型的费用进行增强型披露。ASU 2024-03中的修正案适用于2026年12月15日之后开始的财年，以及2027年12月15日之后开始的财年内的中期期间，可以采用前瞻性或追溯基础进行应用。我们正在评估该标准对我们披露的影响。

信用损失. 2025年7月，FASB发布了ASU No. 2025-05（“ASU 2025-05”），即《金融工具–信用损失》。该指南在应用与当前应收账款和由与客户合同产生的当前合同资产的预期信用损失估计相关指南时，提供了可选的实务便利。ASU 2025-05中的修正案适用于2025年12月15日之后开始的财年和中期报告期间，允许提前采用。我们正在评估该标准对我们财务报表的影响。

内部使用软件. 2025年9月，FASB发布了ASU No. 2025-06（“ASU 2025-06”），即《无形资产–商誉和其他–内部使用软件》。该指南对实体必须开始资本化软件成本的门槛进行了现代化和澄清，其依据是（i）管理层已授权并承诺资助该软件项目，以及（ii）该项目很可能完成，并且软件将用于预期的功能。ASU 2025-06中的修正案适用于2027年12月15日之后开始的财年和中期报告期间，允许提前采用。我们正在评估该标准对我们财务报表的影响。

已采用的会计准则

分部报告. 2023年11月，财务会计准则委员会（“FASB”）发布了ASU No. 2023-07（“ASU 2023-07”），即《报告分部披露的改进》。该指南主要要求对重要分部费用进行增强型披露。我们自2025年11月30日止的财年开始采用该指南，仅影响我们的披露。有关更多信息，请参阅第20号附注，分部报告。

附注4. 持有待售的资产和负债

Tessellis

在2026年，我们接受了第三方关于出售Tessellis S.p.A.（“Tessellis”）的具有约束力的报价。我们预计该出售将在2027年第一季度完成。

持有待售资产初始记录价值为账面价值或估计公允价值减去预计出售成本中的较低者。一旦被指定为持有待售资产，我们停止对这些资产计提折旧和摊销费用。

Tessellis包含在我们的资产管理报告分部中。

Tessellis的主要资产和负债类别：


单位为千美元	2026年8月31日
持有待售资产：
现金及现金等价物	$	20,985
对关联方的投资和贷款	6,466
其他应收款	35,879
物业和设备，净值	66,254
商誉	55,873
其他资产	108,603
持有待售总资产	$	294,060

出售中的负债：
短期借款	$	2,362
租赁负债	18,394
应计费用和其他负债	231,742
长期债务	50,053
出售中的总负债	$	302,551


10		Jefferies Financial Group Inc.

合并财务报表附注

（未经审计）

注5. 公允价值披露


	2026年8月31日（1）
单位：千美元	第1级	第2级	第3级	交易对手和现金抵押品净额（2）	总计
资产：
自有金融工具：
公司股权证券	$	8,702,348		$	245,591	$	243,389		$	—	$	9,191,328
公司债务证券	—		5,121,102		65,825	—		5,186,927
抵押债务凭证和抵押贷款凭证	—		716,390		92,164	—		808,554
美国政府和联邦机构证券	2,278,084		74,193		—	—		2,352,277
市政证券	—		749,490		—	—		749,490
主权义务	651,033		765,581		—	—		1,416,614
住房抵押贷款支持证券	—		1,744,712		4,679	—		1,749,391
商业抵押贷款支持证券	—		14,766		237	—		15,003
其他资产支持证券	—		1,276,842		154,956	—		1,431,798
贷款和其他应收款	—		1,734,057		98,321	—		1,832,378
衍生品	1,435		5,003,437		19,926	(4,075,515)		949,283
按公允价值计量的投资	—		2,765		211,908	—		214,673
扣除基于NAV的公允价值计量的投资后的自有金融工具总计	$	11,632,900		$	17,448,926	$	891,405		$	(4,075,515)	$	25,897,716

作为抵押品收到的证券	$	289,869		$	—	$	—		$	—	$	289,869

负债：
尚未购买的已售金融工具：
公司股权证券	$	8,056,698		$	35,002	$	240		$	—	$	8,091,940
公司债务证券	—		2,754,288		651	—		2,754,939

美国政府和联邦机构证券	1,318,879		4		—	—		1,318,883

主权义务	841,077		728,494		—	—		1,569,571


贷款	—		116,966		1,263	—		118,229
衍生品	874		5,538,296		19,394	(4,316,137)		1,242,427
尚未购买的已售金融工具总计	$	10,217,528		$	9,173,050	$	21,548		$	(4,316,137)	$	15,095,989
其他担保融资	$	—		$	402,403	$	10,718		$	—	$	413,121
归还作为抵押品收到的证券的义务	289,869		—		—	—		289,869
长期债务	—		2,920,617		1,021,303	—		3,941,920

(1)不包括按公允价值计量的投资，其净值（“NAV”）为13.8亿美元，按公允价值层级分类。

(2)代表在公允价值层级各层级中与同一交易对手的头寸进行交易对手和现金抵押品净额。


2026年8月10-Q表		11

合并财务报表附注

（未经审计）


	2025年11月30日（1）
单位：千美元	第1级	第2级	第3级	交易对手和现金抵押品净额（2）	总计
资产：
自有金融工具：
公司股权证券	$	7,664,824		$	249,847	$	218,853		$	—	$	8,133,524
公司债务证券	—		5,367,201		37,578	—		5,404,779
抵押债务凭证和抵押贷款凭证	—		645,798		40,187	—		685,985
美国政府和联邦机构证券	2,342,718		106,633		—	—		2,449,351
市政证券	—		563,994		—	—		563,994
主权义务	860,832		815,722		—	—		1,676,554
住房抵押贷款支持证券	—		1,827,092		6,663	—		1,833,755
商业抵押贷款支持证券	—		10,458		348	—		10,806
其他资产支持证券	—		909,474		133,001	—		1,042,475
贷款和其他应收款	—		2,111,517		127,720	—		2,239,237
衍生品	72		5,519,463		10,311	(3,705,764)		1,824,082
按公允价值计量的投资	—		13,567		163,107	—		176,674
扣除基于NAV的公允价值计量的投资后的自有金融工具总计	$	10,868,446		$	18,140,766	$	737,768		$	(3,705,764)	$	26,041,216

作为抵押品收到的证券	$	200,495		$	—	$	—		$	—	$	200,495

负债：
尚未购买的已售金融工具：
公司股权证券	$	5,571,534		$	47,631	$	155		$	—	$	5,619,320
公司债务证券	—		2,761,794		3,720	—		2,765,514
抵押债务凭证和抵押贷款凭证	—		627		—	—		627
美国政府和联邦机构证券	1,913,403		4		—	—		1,913,407
主权债务	796,564		540,555		—	—		1,337,119


贷款	—		184,391		9,757	—		194,148
衍生品	24		5,429,227		45,953	(3,985,187)		1,490,017
已售出但尚未购回的金融工具	$	8,281,525		$	8,964,229	$	59,585		$	(3,985,187)	$	13,320,152

其他担保融资	$	—		$	412,510	$	13,454		$	—	$	425,964
归还作为抵押品收到的证券的义务	200,495		—		—	—		200,495
长期债务	—		2,671,485		1,063,358	—		3,734,843

(1)不包括基于公允价值的总投资，其公允价值为16.8亿美元，按公允价值层级在2025年11月30日的净值计算。

(2)代表在公允价值层级各层级中，与同一交易对手方的交易对手和现金抵押品净额。


12		Jefferies Financial Group Inc.

合并财务报表附注

(未经审计)

我们在计量按公允价值持续核算的金融资产和负债时，所使用的估值技术和输入值没有重大变化。有关详情，请参阅我们2025年11月30日止年度的10-K表格年度报告第II部分第8项中包含的合并财务报表。

按公允价值计量的投资

按公允价值计量的投资包括对对冲基金、私募股权基金、信贷基金、房地产基金和其他基金的投资，这些基金按基金的净值计量，由基金管理人提供，并且不包含在公允价值层级中。按公允价值计量的投资还包括对私营公司的直接股权投资，这些投资按公允价值计量，使用涉及可比公司报价或市场数据、类似公司比率和倍数（例如，市盈率、市净率）、折现现金流分析以及公司后续融资或资本发行中观察到的交易价格的估值技术。对私营公司的直接股权投资在公允价值层级中归类为第2层级或第3层级。

有关我们对具有投资公司特征的实体的投资信息：


	2026年8月31日
千美元	公允价值（1）	未缴承诺	赎回频率	赎回通知期
对冲基金（2）	$	642,298		$	—		季度（43%）月度（34%）不适用（23%）	45 - 90天 45 - 90天不适用
私募股权基金（3）	64,535		20,218		不适用（100%）	不适用
信贷基金（4）	347,405		28,396		季度（30%）月度（4%）不适用（66%）	90天 30天不适用
房地产和其他基金（5）	330,679		78,245		季度（5%）不适用（95%）	90天不适用
总计	$	1,384,917		$	126,859


	2025年11月30日
千美元	公允价值（1）	未缴承诺	赎回频率	赎回通知期
对冲基金（2）	$	888,880		$	—		季度（42%）月度（41%）不适用（17%）	45 - 90天 45 - 60天不适用
私募股权基金（3）	66,476		26,828		不适用（100%）	不适用
信贷基金（4）	490,321		23,847		季度（56%）月度（2%）不适用（42%）	90天 30天不适用
房地产和其他基金（5）	235,846		114,872		季度（19%）未赎回（81%）	90天未赎回
总计	$	1,681,523		$	165,547

未赎回 - 不可赎回

(1)当公允价值基于净资产值（NAV）计算时，公允价值已从各基金的资本声明中得出。

(2)包括投资于对冲基金，这些基金主要在国内外市场、商品和多资产证券中进行长期和短期投资。

(3)包括投资于股权基金，这些基金投资于各种美国和外国私人公司的股权，涵盖广泛的行业。这些投资不可赎回；相反，通过基金底层资产的清算获得分配，这些资产预计主要在大约一到九年内清算。

(4)主要包括投资于以下领域的基金：

•跨行业和资产类型的困境和特殊情形的多空信用策略；

•预计通常在90至120天内到期的短期贸易应收款和应付款；以及

•结构化信贷、机会信贷和私人信贷中的困境和事件驱动机会。

(5)主要包括专注于购买或建设房地产业务的公司房地产策略以及风险投资基金管理的投资。


2026年8月10-Q表		13

合并财务报表附注

（未经审计）

第三级公允价值变动


	截至2026年8月31日的三个月
单位：千美元	2026年5月31日余额	总收益/损失（已实现和未实现）（1）	购买	出售	结算	发行	净转入/（转出）第三级	2026年8月31日余额	对于截至 2026年8月31日仍持有的工具，未实现收益（损失）的变化包含在：
收益（1）	其他综合收益（损失）（1）
第三级资产：
拥有的金融工具：
公司股权证券	$	255,866		$	(9,752)		$	2,764		$	(375)	$	—		$	—	$	(5,114)	$	243,389	$	(9,729)	$	—
公司债务证券	54,811		1,520		10,578		(548)		(440)		—	(96)		65,825		1,738	—
CDO和CLO	62,546		(3,446)		40,119		(7,263)		—		—	208		92,164		(1,705)	—


RMBS	5,376		(283)		—		—		(414)		—	—		4,679		(378)	—
CMBS	235		2		—		—		—		—	—		237		2	—
其他ABS	190,089		(14,482)		25,567		(588)		(34,867)		—	(10,763)		154,956		(9,577)	—
贷款和其他应收款	90,322		1,043		79,664		(61,237)		(19,765)		—	8,294		98,321		21,387	—
按公允价值计量的投资	171,368		6,744		—		(267)		(40,337)		—	74,400		211,908		4,946	—
第三级负债：
已卖出但尚未购入的金融工具：
公司股权证券	$	169		$	(234)		$	—		$	—	$	—		$	—	$	305	$	240	$	76	$	—
公司债务证券	571		96		—		—		—		—	(16)		651		(96)	—




贷款	1,352		207		(345)		—		—		—	49		1,263		(504)	—
净衍生品（2）	13,541		59,419		—		—		(81,176)		1,835	5,849		(532)		22,715	—
其他担保融资	10,076		1,895		(120)		—		(1,133)		—	—		10,718		(1,967)	—
长期债务	1,070,114		(19,476)		—		—		(20,479)		28,231	(37,087)		1,021,303		27,097	(4,324)


	截至2026年8月31日的九个月
单位：千美元	2025年11月30日余额	总收益/损失（已实现和未实现）（1）	购买	出售	结算	发行	净转入/（转出）第三级	2026年8月31日余额	对于截至 2026年8月31日仍持有的工具，未实现收益（损失）的变化包含在：
收益（1）	其他综合收益（损失）（1）
资产：
持有的金融工具：
公司股权证券	$	218,853		$	8,953		$	27,447		$	(6,684)	$	(103)		$	—	$	(5,077)	$	243,389	$	9,088	$	—
公司债务证券	37,578		2,686		32,482		(282)		(1,501)		—	(5,138)		65,825		1,640	—
CDO 和 CLO	40,187		(15,862)		116,957		(28,426)		(23)		—	(20,669)		92,164		(10,243)	—


RMBS	6,663		(800)		—		—		(1,184)		—	—		4,679		(1,269)	—
CMBS	348		(96)		—		—		—		—	(15)		237		(96)	—
其他 ABS	133,001		(82,710)		165,628		(35,758)		(45,205)		—	20,000		154,956		(79,314)	—
贷款和其他应收款	127,720		25,149		126,248		(109,704)		(28,554)		—	(42,538)		98,321		26,928	—
按公允价值计量的投资	163,107		10,281		9,475		(976)		(44,379)		—	74,400		211,908		8,006	—
负债：
已卖出但尚未购买的金融工具：
公司股权证券	$	155		$	(3,074)		$	(500)		$	—	$	—		$	—	$	3,659	$	240	$	3,430	$	—
公司债务证券	3,720		374		(1,373)		—		—		—	(2,070)		651		(339)	—




贷款	9,757		(1,009)		(697)		725		—		—	(7,513)		1,263		(1,207)	—
净衍生品 (2)	35,642		56,151		(4,630)		—		(64,970)		10,019	(32,744)		(532)		8,808	—
其他担保融资	13,454		1,535		—		—		(4,271)		—	—		10,718		(1,932)	—
长期债务	1,063,358		(45,425)		—		—		(44,174)		64,312	(16,768)		1,021,303		31,833	16,887

(1)已实现和未实现的收益/损失主要报告在自营交易收入。与长期债务中结构化票据相关的工具特定信用风险变化在我们的合并综合收益表中按税后净额列示。

(2)净衍生品代表持有的金融工具—衍生品和尚未购买的金融工具—衍生品。


14		Jefferies Financial Group Inc.

合并财务报表附注

(未经审计)

截至 2026 年 8 月 31 日的三个月内 Level 3 资产和负债分析

由于定价透明度降低，从公允价值层级的 Level 2 或 NAV 转移到 Level 3 的资产转移金额为 1.017 亿美元，主要包括：

•按公允价值计量的投资 7440 万美元，CDO 和 CLO 1410 万美元，贷款和其他应收款 860 万美元，以及其他 ABS 400 万美元。

由于定价透明度提高，支持归类为 Level 2，从公允价值层级的 Level 3 转移到 Level 2 的资产转移金额为 3480 万美元，主要包括：

•其他 ABS 1480 万美元，CDO 和 CLO 1390 万美元，以及公司股权证券 570 万美元。

由于市场和定价透明度降低，从公允价值层级的 Level 2 转移到 Level 3 的负债转移金额为 3400 万美元，主要包括：

•长期债务中的结构化票据 1970 万美元以及某些衍生品 1380 万美元。

由于定价和市场透明度提高，从公允价值层级的 Level 3 转移到 Level 2 的负债转移金额为 6490 万美元，主要包括：

•长期债务中的结构化票据 5680 万美元以及某些衍生品 800 万美元。

截至 2026 年 8 月 31 日的三个月内，Level 3 资产的净损失为 1870 万美元，Level 3 负债的净损失为 4190 万美元。Level 3 资产的净损失主要由于其他 ABS、公司股权证券和 CDO 和 CLO 的市场价值下降，部分被按公允价值计量的投资和公司债务证券的市场价值上升所抵消。Level 3 负债的净损失主要由于某些衍生品和其他担保融资的估值上升，部分被长期债务中的结构化票据下降所抵消。

截至 2026 年 8 月 31 日的九个月内 Level 3 资产和负债分析

由于定价透明度降低，从公允价值层级的 Level 2 或 NAV 转移到 Level 3 的资产转移金额为 1.714 亿美元，主要包括：

•公允价值投资为7440万美元，其他ABS为5630万美元，CDO和CLO为3170万美元，以及由于定价透明度降低而产生的840万美元贷款和其他应收款。

由于以下原因，从公允价值层级3转移到层级2的资产转移金额为1.504亿美元：

•CDO和CLO为5240万美元，贷款和其他应收款为5090万美元，其他ABS为3630万美元，公司权益证券为550万美元，公司债务证券为520万美元，这是由于更高的定价透明度支持将其归类为层级2。

由于以下原因，从公允价值层级2转移到层级3的负债转移金额为4630万美元：

•长期债务中的结构化票据为4620万美元，由于定价透明度。

由于以下原因，从公允价值层级3转移到层级2的负债转移金额为1.017亿美元：

•长期债务中的结构化票据为6290万美元，某些衍生品为2930万美元，贷款为740万美元，这是由于更高的定价和市场透明度。

截至2026年8月31日的九个月内，层级3资产的净损失为5240万美元，层级3负债的净损失为860万美元。层级3资产的净损失主要是由于其他ABS、CDO和CLO的市场价值下降，部分被贷款和其他应收款、公允价值投资、公司权益证券和公司债务证券的增加所抵消。层级3负债的净损失主要是由于某些衍生品和其他担保融资的估值上升，部分被长期债务中的结构化票据、公司权益证券和贷款的市场价值下降所抵消。


2026年8月10-Q表		15

合并财务报表附注

(未经审计)


	截至2025年8月31日的三个月
金额以千美元计	2025年5月31日余额	总收益/损失（已实现和未实现）(1)	购买	销售	结算	发行	净转入/ (转出)层级3	2025年8月31日余额	对于仍持有至截至2025年8月31日，未实现收益（损失）的变化包括：
收益(1)	其他综合收益 (损失) (1)
资产：
自营金融工具：
公司权益证券	$	231,160		$	21,824		$	20,785		$	(1,487)	$	(788)		$	—	$	815	$	272,309	$	21,916	$	—
公司债务证券	44,682		872		1,221		(788)		—		—	(11,607)		34,380		860	—
CDO和CLO	70,948		(3,654)		20,718		(17,731)		(3,463)		—	(14,509)		52,309		(4,188)	—


RMBS	7,947		46		—		—		(15)		—	—		7,978		50	—
CMBS	505		1		—		—		—		—	—		506		1	—
其他ABS	153,681		(2,589)		23,586		(1,579)		(2,888)		—	(44,036)		126,175		(732)	—
贷款和其他应收款	92,168		3,213		65,988		(44,566)		(16,129)		—	39,248		139,922		4,862	—
公允价值投资	153,379		10,308		1,000		(2,446)		(741)		—	—		161,500		9,502	—

负债：
已卖出但尚未购回的金融工具：
公司权益证券	$	161		$	(312)		$	(1)		$	426	$	—		$	—	$	522	$	796	$	309	$	—
公司债务证券	644		126		(119)		—		(270)		—	107		488		(117)	—



CMBS	1,153		—		—		35		—		—	—		1,188		—	—
贷款	313		1,691		—		—		—		—	(38)		1,966		(1,101)	—
净衍生品(2)	33,288		9,477		(533)		719		(748)		—	(5,307)		36,896		(9,313)	—
其他担保融资	18,876		143		—		—		(2,905)		—	—		16,114		(255)	—
长期债务	991,156		54,332		—		—		(2,050)		29,155	(1,429)		1,071,164		(7,342)	(44,940)


	截至2025年8月31日的九个月
金额以千美元计	2024年11月30日余额	总收益/损失（已实现和未实现）(1)	购买	销售	结算	发行	净转入/ (转出)层级3	截至2025年8月31日的余额	对于仍于截至2025年8月31日，未实现损益变动包含在：
收益（1）	其他综合收益（损失）（1）
资产：
持有的金融工具：
公司股权证券	$	239,364		$	31,303		$	28,748		$	(8,940)	$	494		$	—	$	(18,660)	$	272,309	$	29,840	$	—
公司债务证券	24,931		2,385		12,455		(1,168)		(2,197)		—	(2,026)		34,380		1,472	—
CDO和CLO	63,976		(14,474)		69,479		(39,811)		(10,013)		—	(16,848)		52,309		(15,237)	—

主权义务	172		2		—		(174)		—		—	—		—		—	—
RMBS	7,714		315		—		—		(51)		—	—		7,978		331	—
CMBS	477		29		—		—		—		—	—		506		29	—
其他ABS	103,214		(2,792)		60,151		(31,920)		(8,089)		—	5,611		126,175		(1,256)	—
贷款和其他应收款	152,586		(8,455)		213,419		(196,921)		(38,621)		—	17,914		139,922		10,777	—
公允价值计量的投资	137,865		16,742		22,549		(2,446)		(3,210)		—	(10,000)		161,500		13,540	—
负债：
已售未购的金融工具：
公司股权证券	$	208		$	(864)		$	(72,161)		$	73,148	$	—		$	—	$	465	$	796	$	999	$	—
公司债务证券	165		60		(280)		351		192		—	—		488		(90)	—



CMBS	1,153		—		—		105		—		—	(70)		1,188		—	—
贷款	16,864		(14,097)		(875)		74		—		—	—		1,966		(1,790)	—
净衍生品（2）	22,286		(11,263)		(533)		23,307		(1,166)		—	4,265		36,896		2,447	—
其他担保融资	14,884		346		—		—		(7,647)		8,531	—		16,114		(1,366)	—
长期债务	821,903		32,255		—		—		(4,849)		247,279	(25,424)		1,071,164		(28,330)	(3,925)

（1）已实现和未实现损益主要报告在自营交易收入。与长期债务中的结构化票据相关的工具特定信用风险变动在我们的合并综合收益表中按税后净额列示。

（2）净衍生品代表持有的金融工具—衍生品和已售未购的金融工具—衍生品。


16		Jefferies Financial Group Inc.

合并财务报表附注

（未经审计）

截至2025年8月31日止三个月的Level 3资产和负债分析

由于定价透明度降低，从公允价值层级2转移到层级3的资产为6.44亿美元，主要包括：

•4.35亿美元的贷款和其他应收款、1.26亿美元的CDO和CLO以及0.67亿美元的其他ABS。

由于定价透明度提高，支持归类为层级2，从公允价值层级3转移到层级2的资产为9.45亿美元，主要包括：

•5.07亿美元的其他ABS、2.71亿美元的CDO和CLO、1.23亿美元的公司债务证券以及0.43亿美元的贷款和其他应收款。

由于市场和定价透明度降低，从公允价值层级2转移到层级3的负债为1.60亿美元，主要包括：

•长期债务中的结构化票据1.31亿美元，部分被2.40亿美元的净衍生品转入层级3所抵消。

由于定价和市场透明度提高，从公允价值层级3转移到层级2的负债为2.22亿美元，主要包括：

•长期债务中的结构化票据1.45亿美元和净衍生品0.77亿美元。

截至2025年8月31日止三个月，层级3资产的净收益为3.00亿美元，层级3负债的净损失为6.55亿美元。层级3资产的净收益主要由于公司股权证券、公允价值计量的投资、贷款和其他应收款以及其它ABS的市场价格上涨，部分被CDO和CLO的市场价格下跌所抵消。层级3负债的净损失主要由于长期债务中的结构化票据、某些衍生品和贷款的估值上涨。

截至2025年8月31日的九个月期间的三级资产和负债分析

将价值9950万美元的资产从公允价值层级的二级转移到三级主要是由于：

•由于定价透明度降低，贷款和其他应收款为3820万美元，公司股权证券为3220万美元，CDO和CLO为1860万美元，其他ABS为1000万美元。

将价值12350万美元的资产从公允价值层级的三级转移到二级主要是由于：

•公司股权证券5080万美元，CDO和CLO 3540万美元，贷款和其他应收款2030万美元，按公允价值计量的投资1000万美元，其他ABS 440万美元和公司债务证券250万美元，由于更高的定价透明度支持归类为二级。

将价值2130万美元的负债从公允价值层级的二级转移到三级主要是由于：

•由于市场和定价透明度降低，长期债务中的衍生品净额1340万美元和结构化票据740万美元。

将价值4210万美元的负债从公允价值层级的三级转移到二级主要是由于：

•由于更高的定价和市场透明度，长期债务中的结构化票据3280万美元和某些衍生品920万美元。

截至2025年8月31日的九个月期间，三级资产的净收益为2510万美元，三级负债的净损失为640万美元。三级资产的净收益主要是由于公司股权证券和按公允价值计量的投资的市场价值增加，部分被CDO和CLO以及贷款和其他应收款的估值下降所抵消。三级负债的净损失主要是由于长期债务中的结构化票据估值增加，部分被某些衍生品和贷款的市场价值下降所抵消。

三级公允价值计量中使用的重要不可观察输入

以下表格提供了有关我们金融资产和负债的估值技术、重要不可观察输入及其范围的信息，这些输入与所持头寸的市场价值相关阈值有关，按公允价值定期计量且具有显著三级余额。由于金融服务业不同公司产品范围不同，不可观察输入的范围可能在不同公司之间存在显著差异。这些输入并不代表可用于任何单一金融工具估值的输入（i.e.,用于估值某一类金融工具中的一个金融工具的输入可能不适用于该类别中其他金融工具的估值）。此外，下面列出的输入范围不应被解释为对我们金融工具公允价值的不确定性；相反，输入范围反映了每个类别中金融工具的底层特征的差异。

对于某些类别，我们根据构成该类别的金融工具的公允价值提供了输入值的加权平均值。我们认为，输入值的范围或加权平均值并不能说明我们第三层级公允价值的合理不确定性。范围和加权平均值由每个类别内的个别金融工具及其在总体中的相对分布所驱动。披露的输入值与在其他期间披露的输入值相比，不应被期望必然说明我们对特定金融工具不可观察输入值的估计变化，因为构成该类别的金融工具总体将根据期间内金融工具的买卖以及每期转入和转出第三层级的情况而有所不同。


2026年8月10-Q表		17

合并财务报表附注

（未审计）


2026年8月31日
持有的金融工具	公允价值（以千为单位）	估值技术	重要的不可观察输入项	输入项 / 范围	加权平均值
公司股权证券	$	243,389
非交易所交易证券	市场法	价格	$0	-	$486	$81
	波动率基准	波动率	28	%	-	32%	31%
公司债务证券	$	65,825		市场法	价格	$67	-	$125	$94
		现金流折现	折现率/收益率	17%	—
		情景分析	预计回收百分比	6%	—
CDO和CLO	$	69,063		现金流折现	固定提前还款率	15	%	-	20%	17%
			固定违约率	2%	—
			损失严重性	30%	—
			折现率/收益率	13	%	-	16%	14%
		市场法	价格	$100	-	$116	$107

RMBS	$	4,679		现金流折现	固定提前还款率	10%	—
			固定违约率	1%	—
			损失严重性	50%	—
			折现率/收益率	15%	—


其他ABS	$	144,953		现金流折现	折现率/收益率	15	%	-	20%	16%



			累计损失率	16	%	-	17%	16%
			期限（年）	0.9	-	1.2	1.1
		市场法	价格	$116	-	$136	$131
		情景分析	预计回收百分比	35	%	-	41%	36%
贷款和其他应收款	$	98,321		市场法	价格	$4	-	$116	$93
		情景分析	预计回收百分比	6	%	-	100%	58%
衍生品	$	17,242

股权期权		波动率基准	波动率	94%	—
		现金流折现	借款利率	4	%	-	6%	4%
以公允价值计量的投资	$	211,908
Private equity securities		Market approach	Price	$0	-	$170,363	$6,083
			Discount rate/yield	28%	—
			Estimated revenue	$29,990,436	—
Financial Instruments Sold, Not Yet Purchased:





Derivatives	$	19,394
Equity options		Volatility benchmarking	Volatility	42	%	-	94%	74%
Interest rate swaps		Market approach	Basis points upfront	7	-	24	15

Other secured financings	$	10,718		Scenario analysis	Estimated recovery percentage	29	%	-	100%	72%
		Market approach	Price	$120	—
Long-term debt	$	1,021,303
Structured notes		Market approach	Price	$60	-	$119	$98


18		Jefferies Financial Group Inc.

Notes to Consolidated Financial Statements

(Unaudited)


November 30, 2025
Financial Instruments Owned	Fair Value (in thousands)	Valuation Technique	Significant Unobservable Input(s)	Input / Range	Weighted Average
Corporate equity securities	$	218,853
Non-exchange-traded securities	Market approach	Price	$0	-	$486	$85
		Volatility benchmarking	Volatility	44	%	-	48%	47%
Corporate debt securities	$	37,578		Market approach	Price	$49	-	$121	$72
		Discounted cash flows	Discount rate/yield	18	%	-	20%	19%
		Scenario analysis	Estimated recovery percentage	30%	—
CDOs and CLOs	$	25,824		Discounted cash flows	Constant prepayment rate	20%	—
			Constant default rate	2%	—
			Loss severity	30%	—
			Discount rate/yield	17%	—
		Market approach	Price	$98	-	$100	$99

RMBS	$	6,663		Discounted cash flows	Constant prepayment rate	12%	—
			Constant default rate	0.3%	—
			Loss severity	20%	—
			Discount rate/yield	15%	—

Other ABS	$	129,693		Discounted cash flows	Discount rate/yield	16%	—



			Cumulative loss rate	16%	—
			Duration (years)	1.1	-	1.2	1.1
		Market approach	Price	$116	-	$133	$130
		Scenario analysis	Estimated recovery percentage	66%	—
Loans and other receivables	$	127,720		Market approach	Price	$67	-	$129	$97
		Scenario analysis	Estimated recovery percentage	8	%	-	100%	35%
Derivatives	$	6,094
Embedded options		Market approach	Basis points upfront	0.4	-	0.5	0.5
Equity options		Volatility benchmarking	Volatility	34%	—

Investments at fair value	$	157,162
Private equity securities		Market approach	Price	$0	-	$27,989	$2,722
			Discount rate/yield	28%	—
			Estimated revenue	$29,818,082	—
Financial Instruments Sold, Not Yet Purchased:


Corporate debt securities	$	3,720		Scenario analysis	Estimated recovery percentage	30%	—
Loans	$	9,757		Market approach	Price	$100	-	$129	$117
		Scenario analysis	Estimated recovery percentage	30%	—
Derivatives	$	45,953
Equity options		Volatility benchmarking	Volatility	34	%	-	61%	58%
Embedded options		Market approach	Basis points upfront	0	-	21	13

Other secured financings	$	13,454		Scenario analysis	Estimated recovery percentage	74	%	-	100%	96%
		Market approach	Price	$114	-	$117	$115
Long-term debt	$	1,063,358
Structured notes		Market approach	Price	$72	-	$120	$101


August 2026 Form 10-Q		19

Notes to Consolidated Financial Statements

(Unaudited)

The fair values of certain Level 3 assets and liabilities that were determined based on third-party pricing information, unadjusted past transaction prices or a percentage of the reported enterprise fair value are excluded from the above tables. At August 31, 2026 and November 30, 2025, asset exclusions consisted of $36.0 million and $28.2 million, respectively, primarily composed of CDOs and CLOs, Investments at fair value, certain derivatives, other ABS and CMBS. At August 31, 2026 and November 30, 2025, liability exclusions consisted of $2.2 million and $0.2 million, respectively, primarily composed of loans, corporate equity securities and corporate debt securities.

Uncertainty of Fair Value Measurement from Use of Significant Unobservable Inputs

For recurring fair value measurements categorized within Level 3 of the fair value hierarchy, the uncertainty of the fair value measurement due to the use of significant unobservable inputs and interrelationships between those unobservable inputs (if any) are described below:

•Non-exchange-traded securities, corporate debt securities, CDOs and CLOs, loans and other receivables, other ABS, private equity securities, certain derivatives, other secured financings and structured notes using a market approach valuation technique. A significant increase (decrease) in the price of the private equity securities, nonexchange-traded securities, corporate debt securities, CDOs and CLOs, other ABS, loans and other receivables, other secured financings and structured notes would result in a significantly higher (lower) fair value measurement. A significant increase (decrease) in the revenue or revenue multiple related to private equity securities would result in a significantly higher (lower) fair value measurement. A significant increase (decrease) in the discount rate/security yield related to private equity securities would result in a significantly lower (higher) fair value measurement. Depending on whether we are a receiver or (payer) of basis points upfront, a significant increase in basis points would result in a significant increase (decrease) in the fair value measurement of options.

•Corporate debt securities, loans and other receivables, other ABS and other secured financings using a scenario analysis valuation technique. A significant increase (decrease) in the possible recovery rates underlying the financial instrument would result in a significantly higher (lower) fair value measurement for the financial instrument.

•CDOs and CLOs, corporate debt securities, RMBS, certain derivatives and other ABS using a discounted cash flows valuation technique. A significant increase (decrease) in isolation in the constant default rate, loss severity or cumulative loss rate would result in a significantly lower (higher) fair value measurement. The impact of changes in the constant prepayment rate and duration would have differing impacts depending on the capital structure and type of security. A significant increase (decrease) in the borrow rate, discount rate and security yield would result in a significantly lower (higher) fair value measurement.

•Corporate equity securities and derivative equity options using volatility benchmarking. A significant increase (decrease) in volatility would result in a significantly higher (lower) fair value measurement.

Fair Value Option Election

For a description of our financial assets and liabilities for which we have elected the fair value option, refer to our consolidated financial statements included in Part II, Item 8 of our Annual Report on Form 10-K for the year ended November 30, 2025.

Fair value option gains (losses):


	Three Months Ended August 31,	Nine Months Ended August 31,
$ in thousands	2026	2025	2026	2025


Financial instruments owned:
Loans and other receivables (1)	$	4,192		$	(62,934)	$	(20,278)	$	(35,557)







Other secured financings (1)	746		(2,908)		6,537	(4,566)
Long-term debt:
Changes in instrument-specific credit risk (2)	(6,721)		(56,163)		24,157	7,356
Other changes in fair value (1)	1,425		(58,429)		(35,174)	(27,159)

(1)Changes in fair value are included in Principal transactions revenues.

(2)Changes in fair value of structured notes related to instrument-specific credit risk are presented net of tax in our Consolidated Statements of Comprehensive Income.

Difference between contractual principal and fair value:


$ in thousands	August 31, 2026	November 30, 2025


Financial instruments owned:
Loans and other receivables (1)	$	1,413,248		$	2,378,747
Loans and other receivables on nonaccrual status and/or 90 days or greater past due (1)	436,361		319,394
Loans and other receivables 90 days or greater past due (1)	128,835		100,300
Long-term debt	232,646		166,273
Other secured financings	6,704		237

(1)Interest income is recognized separately from other changes in fair value and is included in Interest revenues.

Fair value of loans and other receivables on nonaccrual status:


$ in thousands	August 31, 2026	November 30, 2025


Financial instruments owned:
Loans and other receivables on nonaccrual status and/or 90 days or greater past due	$	128,462		$	119,900
Loans and other receivables 90 days or greater past due	92,667		47,000

Financial Instruments Not Measured at Fair Value

Certain of our financial instruments are not carried at fair value but are recorded at amounts that approximate fair value due to their liquid or short-term nature and generally negligible credit risk. These financial assets include Cash and cash equivalents and Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations and would generally be presented within Level 1 of the fair value hierarchy.

We have equity securities without readily determinable fair values, which we account for at cost, minus impairment, which are presented within Other assets and were $21.9 million at both August 31, 2026 and November 30, 2025. There were no impairments or downward adjustments on these investments during both the three and nine months ended August 31, 2026 and 2025.


20		Jefferies Financial Group Inc.

Notes to Consolidated Financial Statements

(Unaudited)

Note 6. Derivative Financial Instruments

Our derivative activities are recorded at fair value in our Consolidated Statement of Financial Condition in Financial instruments owned and Financial instruments sold, not yet purchased, net of cash paid or received under credit support agreements and on a net counterparty basis when a legally enforceable right to offset exists under a master netting agreement. We enter into derivative transactions to satisfy the needs of our clients and to manage our own exposure to market and credit risks. In addition, we apply hedge accounting to: (1) interest rate swaps that have been designated as fair value hedges of the changes in fair value due to the benchmark interest rate for certain fixed rate senior long-term debt, (2) an interest rate swap designated as hedge to offset the variability in cash flows from floating rate debt due to contractually specified interest rate, and (3) forward foreign exchange contracts designated as hedges to offset the change in the value of certain net investments in foreign operations.

Derivatives are subject to various risks similar to other financial instruments, including market, credit and operational risk. The risks of derivatives should not be viewed in isolation, but rather should be considered on an aggregate basis along with our other trading-related activities. We manage the risks associated with derivatives on an aggregate basis along with the risks associated with proprietary trading as part of our firm wide risk management policies.

In connection with our derivative activities, we may enter into International Swaps and Derivatives Association, Inc. master netting agreements or similar agreements with counterparties.


	August 31, 2026 (1)
	Assets	Liabilities
$ in thousands	Fair Value	Number of Contracts (2)	Fair Value	Number of Contracts (2)
Derivatives designated as accounting hedges:
Interest rate contracts:
Cleared OTC	$	—		—		$	910	3
Bilateral OTC	346		1		—		—
Foreign exchange contracts:
Bilateral OTC	1,069		1		43,625		17
Total derivatives designated as accounting hedges	1,415			44,535
Derivatives not designated as accounting hedges:
Interest rate contracts:
Exchange-traded	876		4,273		233		15,193
Cleared OTC	1,073,315		9,404		1,059,366		9,147
Bilateral OTC	267,397		745		800,746		1,533
Foreign exchange contracts:
Exchange-traded	885		627		641		1,879

Bilateral OTC	155,131		32,332		109,282		11,914
Equity contracts:
Exchange-traded	1,438,125		2,277,967		1,209,793		1,411,012

Bilateral OTC	2,044,367		33,276		2,313,733		32,037
Commodity contracts:
Exchange-traded	247		640		578		377

Bilateral OTC	6,620		12,125		2,044		5,597
Credit contracts:

Cleared OTC	8,197		89		10,420		35
Bilateral OTC	28,223		16		7,193		25
Total derivatives not designated as accounting hedges	5,023,383			5,514,029
Total gross derivative assets/liabilities:
Exchange-traded	1,440,133			1,211,245
Cleared OTC	1,081,512			1,070,696
Bilateral OTC	2,503,153			3,276,623
Amounts offset in our Consolidated Statements of Financial Condition (3):
Exchange-traded	(878,475)			(878,475)
Cleared OTC	(1,067,959)			(1,070,696)
Bilateral OTC	(2,129,081)			(2,366,966)
Net amounts per Consolidated Statements of Financial Condition (4)	$	949,283			$	1,242,427

(1)Exchange-traded derivatives include derivatives executed on an organized exchange. Cleared OTC derivatives include derivatives executed bilaterally and subsequently novated to and cleared through central clearing counterparties. Bilateral OTC derivatives include derivatives executed and settled bilaterally without the use of an organized exchange or central clearing counterparty.

(2)The number of exchange-traded contracts may include open futures contracts. The unsettled fair value of these futures contracts is included in Receivables from/Payables to brokers, dealers and clearing organizations.

(3)Amounts netted include both netting by counterparty and for cash collateral paid or received.

(4)We have not received or pledged additional collateral under master netting agreements and/or other credit support agreements that is eligible to be offset beyond what has been offset in our Consolidated Statements of Financial Condition.


August 2026 Form 10-Q		21

Notes to Consolidated Financial Statements

(Unaudited)


	November 30, 2025 (1)
	Assets	Liabilities
$ in thousands	Fair Value	Number of Contracts (2)	Fair Value	Number of Contracts (2)
Derivatives designated as accounting hedges:
Interest rate contracts:
Cleared OTC	$	—		—		$	2,519	4
Foreign exchange contracts:
Bilateral OTC	40,444		7		574		2
Total derivatives designated as accounting hedges	40,444			3,093
Derivatives not designated as accounting hedges:
Interest rate contracts:
Exchange-traded	232		33,107		24		36,811
Cleared OTC	806,009		8,148		804,799		8,325
Bilateral OTC	285,053		1,576		614,104		823
Foreign exchange contracts:


Bilateral OTC	115,068		34,418		103,297		12,028
Equity contracts:
Exchange-traded	2,776,601		3,275,468		2,156,730		2,298,561
Bilateral OTC	1,367,089		57,254		1,670,215		36,481
Commodity contracts:
Exchange-traded	452		627		73		668
Bilateral OTC	6,381		18,497		7,293		15,417
Credit contracts:
Cleared OTC	10,960		58		17,120		13
Bilateral OTC	121,557		17		98,456		15
Total derivatives not designated as accounting hedges	5,489,402			5,472,111
Total gross derivative assets/liabilities:
Exchange-traded	2,777,285			2,156,827
Cleared OTC	816,969			824,438
Bilateral OTC	1,935,592			2,493,939
Amounts offset in our Consolidated Statements of Financial Condition (3):
Exchange-traded	(1,600,969)			(1,600,969)
Cleared OTC	(815,810)			(819,548)
Bilateral OTC	(1,288,985)			(1,564,670)
Net amounts per Consolidated Statements of Financial Condition (4)	$	1,824,082			$	1,490,017

(3)Amounts netted include both netting by counterparty and for cash collateral paid or received.

Gains (losses) recognized in Interest expense related to fair value hedges:


$ in thousands	Three Months Ended August 31,	Nine Months Ended August 31,
Gains (Losses)	2026	2025	2026	2025
Interest rate swaps (1)	$	(15,702)		$	8,902	$	(43,986)	$	2,859
Long-term debt	5,672		(21,388)		14,153	(40,047)
Total	$	(10,030)		$	(12,486)	$	(29,833)	$	(37,188)

(1)Includes net settlements of $9.7 million and $28.9 million for the three and nine months ended August 31, 2026, respectively, and $12.3 million and $36.4 million for the three and nine months ended August 31, 2025, respectively.

Gains (losses) on our cash flow hedge recognized as a component of Other comprehensive income (loss) (“OCI”), in our Consolidated Statements of Comprehensive Income:


$ in thousands	Three Months Ended August 31,	Nine Months Ended August 31,
Gains (Losses)	2026	2025	2026	2025
Interest rate contracts
Recognized in OCI	$	600		$	—	$	346	$	—

Net change included within AOCI	$	600		$	—	$	346	$	—

Gains (losses) on our net investment hedges recognized in Currency translation and other adjustments, a component of OCI, in our Consolidated Statements of Comprehensive Income:


$ in thousands	Three Months Ended August 31,	Nine Months Ended August 31,
Gains (Losses)	2026	2025	2026	2025
Foreign exchange contracts	$	(12,988)		$	(3,238)	$	(20,519)	$	(77,370)
Total	$	(12,988)		$	(3,238)	$	(20,519)	$	(77,370)

Unrealized and realized gains (losses) on derivative contracts recognized primarily in Principal transactions revenues, which are utilized in connection with our client activities and our economic risk management activities:


$ in thousands	Three Months Ended August 31,	Nine Months Ended August 31,
Gains (Losses)	2026	2025	2026	2025
Interest rate contracts	$	(53,618)		$	242	$	(133,707)	$	(30,970)
Foreign exchange contracts	11,928		(15,402)		13,377	1,309
Equity contracts	1,002,699		444,317		662,026	1,762,483
Commodity contracts	9,626		3,476		28,504	16,932
Credit contracts	(59)		(9,105)		(11,773)	(7,401)
Total	$	970,576		$	423,528	$	558,427	$	1,742,353

The net gains (losses) on derivative contracts in the table above are one of a number of activities comprising our business activities and are before consideration of economic hedging transactions, which generally offset the net gains (losses) included above. We substantially mitigate our exposure to market risk on our cash instruments through derivative contracts, which generally provide offsetting revenues, and we manage the risk associated with these contracts in the context of our overall risk management framework.


22		Jefferies Financial Group Inc.

Notes to Consolidated Financial Statements

(Unaudited)

OTC Derivatives

Remaining contract maturities at August 31, 2026:


	OTC Derivative Assets (1) (2) (3)
$ in thousands	0 – 12 Months	1 – 5 Years	Greater Than 5 Years	Cross-Maturity Netting (4)	Total
Commodity swaps, options and forwards	$	6,619		$	—		$	—		$	—	$	6,619
Equity options and forwards	61,747		248,300		—		—		310,047
Credit default swaps	—		26,483		—		—		26,483
Total return swaps	286,327		174,318		—		(80,225)		380,420
Foreign currency forwards, swaps and options	98,927		335		—		(126)		99,136

Interest rate swaps, options and forwards	45,145		158,279		27,964		(35,655)		195,733
Total	$	498,765		$	607,715		$	27,964		$	(116,006)	1,018,438
Cross-product counterparty netting					(61,347)
Total OTC derivative assets included in Financial instruments owned					$	957,091


	OTC Derivative Liabilities (1) (2) (3)
$ in thousands	0 – 12 Months	1 – 5 Years	Greater Than 5 Years	Cross-Maturity Netting (4)	Total
Commodity swaps, options and forwards	$	2,043		$	—		$	—		$	—	$	2,043
Equity options and forwards	176,494		204,010		11,965		—		392,469
Credit default swaps	41		3,408		—		—		3,449
Total return swaps	259,892		388,799		5		(80,225)		568,471
Foreign currency forwards, swaps and options	89,653		6,314		—		(126)		95,841
Fixed income forwards	6,935		—		—		—		6,935
Interest rate swaps, options and forwards	45,246		173,263		529,029		(35,655)		711,883
Total	$	580,304		$	775,794		$	540,999		$	(116,006)	1,781,091
Cross-product counterparty netting					(61,347)
Total OTC derivative liabilities included in Financial instruments sold, not yet purchased					$	1,719,744

(1)At August 31, 2026, we held net exchange-traded derivative assets and liabilities with a fair value of $561.7 million and $332.8 million, respectively, which are not included in these tables.

(2)OTC derivative assets and liabilities in the tables above are gross of collateral pledged. OTC derivative assets and liabilities are recorded net of collateral pledged in our Consolidated Statements of Financial Condition. At August 31, 2026, cash collateral received and pledged was $569.5 million and $810.1 million, respectively.

(3)Derivative fair values include counterparty netting within product category.

(4)Amounts represent the netting of receivable balances with payable balances for the same counterparty within product category across maturity categories.

OTC derivative assets at August 31, 2026:


Counterparty credit quality (1):	$ in thousands
A- or higher	$	294,515
BBB- to BBB+	74,645
BB+ or lower	330,152
Unrated	257,779
Total	$	957,091

(1)We utilize internal credit ratings determined by our Risk Management department. Credit ratings determined by Risk Management use methodologies that produce ratings generally consistent with those produced by external rating agencies.

Credit Related Derivative Contracts

External credit ratings of the underlyings or referenced assets for our written credit related derivative contracts:


	August 31, 2026
	External Credit Rating
$ in millions	Investment Grade	Non-investment Grade	Total Notional
Credit protection sold:
Index credit default swaps	$	422.4	$	744.6	$	1,167.0


	November 30, 2025
	External Credit Rating
$ in millions	Investment Grade	Non-investment Grade	Total Notional
Credit protection sold:
Index credit default swaps	$	51.4	$	873.2	$	924.6

Contingent Features

Certain derivative instruments contain provisions that require us to either post additional collateral or immediately settle any outstanding liability balances upon a specific event related to our credit, primarily downgrades in our credit ratings. The following table presents the aggregate fair value of all derivative instruments with such credit-risk-related contingent features that are in a net liability position, the collateral amounts we have posted or received in the normal course of business and the potential collateral we could have been required to return and/or post additionally to our counterparties if the credit-risk-related contingent features underlying these agreements were triggered:


$ in millions	August 31, 2026	November 30, 2025
Derivative instrument liabilities with credit-risk-related contingent features	$	231.2		$	107.3
Collateral posted	(44.2)		(70.0)
Collateral received	176.6		343.3
Return of and additional collateral required in the event of a credit rating downgrade below investment grade (1)	363.5		380.5

(1)These potential outflows include initial margin received from counterparties at the execution of the derivative contract. The initial margin will be returned if counterparties elect to terminate the contract after a downgrade.


August 2026 Form 10-Q		23

Notes to Consolidated Financial Statements

(Unaudited)

Note 7. Collateralized Transactions


	August 31, 2026
$ in millions	Securities Lending Arrangements	Repurchase Agreements	Obligation to Return Securities Received as Collateral, at Fair Value	Total
Collateral Pledged:

Corporate equity securities	$	3,214.2		$	2,493.3	$	56.0	$	5,763.5
Corporate debt securities	323.7		3,428.4		—	3,752.1
Mortgage-backed and asset-backed securities	397.2		2,128.9		—	2,526.1
U.S. government and federal agency securities	63.4		8,232.7		—	8,296.1
Municipal securities	—		565.5		—	565.5
Sovereign obligations	24.5		1,638.3		233.9	1,896.7
Loans and other receivables	—		579.5		—	579.5
Total	$	4,023.0		$	19,066.6	$	289.9	$	23,379.5


	November 30, 2025
$ in millions	Securities Lending Arrangements	Repurchase Agreements	Obligation to Return Securities Received as Collateral, at Fair Value	Total
Collateral Pledged:

Corporate equity securities	$	1,875.2		$	1,028.6	$	—	$	2,903.8
Corporate debt securities	589.7		3,271.5		—	3,861.2
Mortgage-backed and asset-backed securities	—		2,062.6		—	2,062.6
U.S. government and federal agency securities	21.6		9,183.1		—	9,204.7
Municipal securities	—		422.3		—	422.3
Sovereign obligations	54.3		1,487.7		200.5	1,742.5
Loans and other receivables	—		805.4		—	805.4
Total	$	2,540.8		$	18,261.2	$	200.5	$	21,002.5


	August 31, 2026
$ in millions	Overnight and Continuous	Up to 30 Days	31-90 Days	Greater than 90 Days	Total
Securities lending arrangements	$	3,402.3		$	397.2	$	144.5		$	79.0	$	4,023.0
Repurchase agreements	9,625.1		1,689.9		4,342.5	3,409.1		19,066.6
Obligation to return securities received as collateral, at fair value	289.9		—		—	—		289.9
Total	$	13,317.3		$	2,087.1	$	4,487.0		$	3,488.1	$	23,379.5


	November 30, 2025
$ in millions	Overnight and Continuous	Up to 30 Days	31-90 Days	Greater than 90 Days	Total
Securities lending arrangements	$	2,072.7		$	123.8	$	81.3		$	263.0	$	2,540.8
Repurchase agreements	2,108.1		9,569.4		2,959.8	3,623.9		18,261.2
Obligation to return securities received as collateral, at fair value	200.5		—		—	—		200.5
Total	$	4,381.3		$	9,693.2	$	3,041.1		$	3,886.9	$	21,002.5

We receive securities as collateral under resale agreements, securities borrowing transactions, customer margin loans, and in connection with securities-for-securities transactions in which we are the lender of securities. We also receive securities as initial margin on certain derivative transactions. In many instances, we are permitted by contract to rehypothecate the securities received as collateral. These securities may be used to secure repurchase agreements, enter into securities lending transactions, satisfy margin requirements on derivative transactions or cover short positions. At August 31, 2026 and November 30, 2025, the approximate fair value of securities received as collateral by us that may be sold or repledged was $59.63 billion and $49.68 billion, respectively. At August 31, 2026 and November 30, 2025, a substantial portion of the securities received by us had been sold or repledged.


24		Jefferies Financial Group Inc.

Notes to Consolidated Financial Statements

(Unaudited)

Securities Financing Agreements

To manage our exposure to credit risk associated with securities financing transactions, we may enter into master netting agreements and collateral arrangements with counterparties. Generally, transactions are executed under standard industry agreements, including, but not limited to, master securities lending agreements (securities lending transactions) and master repurchase agreements (repurchase transactions).


	August 31, 2026
$ in millions	Gross Amounts	Netting in Consolidated Statements of Financial Condition	Net Amounts in Consolidated Statements of Financial Condition	Additional Amounts Available for Setoff (1)	Available Collateral (2)	Net Amount (3)
Assets:
Securities borrowing arrangements	$	11,158.4		$	—		$	11,158.4		$	(903.6)	$	(2,476.3)	$	7,778.5
Reverse repurchase agreements	13,986.6		(6,145.9)		7,840.7		(1,873.0)		(5,834.5)		133.2
Securities received as collateral, at fair value	289.9		—		289.9		—		(289.9)		—
Liabilities:
Securities lending arrangements	$	4,023.0		$	—		$	4,023.0		$	(903.6)	$	(2,594.8)	$	524.6
Repurchase agreements	19,066.6		(6,145.9)		12,920.7		(1,873.0)		(10,649.5)		398.2
Obligation to return securities received as collateral, at fair value	289.9		—		289.9		—		(289.9)		—


	November 30, 2025
$ in millions	Gross Amounts	Netting in Consolidated Statements of Financial Condition	Net Amounts in Consolidated Statements of Financial Condition	Additional Amounts Available for Setoff (1)	Available Collateral (2)	Net Amount (4)
Assets:
Securities borrowing arrangements	$	8,295.2		$	—		$	8,295.2		$	(512.3)	$	(1,913.5)	$	5,869.4
Reverse repurchase agreements	14,553.6		(6,104.5)		8,449.1		(2,727.2)		(5,670.2)		51.7
Securities received as collateral, at fair value	200.5		—		200.5		—		(200.5)		—
Liabilities:
Securities lending arrangements	$	2,540.8		$	—		$	2,540.8		$	(512.3)	$	(1,920.0)	$	108.5
Repurchase agreements	18,261.2		(6,104.5)		12,156.7		(2,727.2)		(8,666.7)		762.8
Obligation to return securities received as collateral, at fair value	200.5		—		200.5		—		(200.5)		—

(1)Under master netting agreements with our counterparties, we have the legal right of offset with a counterparty, which incorporates all of the counterparty’s outstanding rights and obligations under the arrangement. These balances reflect additional credit risk mitigation that is available by a counterparty in the event of a counterparty’s default, but which are not netted in our Consolidated Statements of Financial Condition because other netting provisions of U.S. GAAP are not met.

(2)Includes securities received or paid under collateral arrangements with counterparties that could be liquidated in the event of a counterparty default and thus offset against a counterparty’s rights and obligations under the respective repurchase agreements or securities borrowing or lending arrangements.

(3)Includes $7.64 billion of securities borrowing arrangements, for which we have received securities collateral of $7.40 billion, and $320.0 million of repurchase agreements, for which we have pledged securities collateral of $342.4 million, which are subject to master netting agreements, but we have not determined the agreements to be legally enforceable.

(4)Includes $5.81 billion of securities borrowing arrangements, for which we have received securities collateral of $5.69 billion, and $670.0 million of repurchase agreements, for which we have pledged securities collateral of $688.0 million, which are subject to master netting agreements, but we have not determined the agreements to be legally enforceable.

Note 8. Securitization Activities

We engage in securitization activities related to corporate loans, mortgage loans, consumer loans and mortgage-backed and other asset-backed securities. In our securitization transactions, we transfer these assets to special purpose entities (“SPEs”) and act as the placement or structuring agent for the beneficial interests sold to investors by the SPE. A portion of our securitization transactions are the securitization of assets issued or guaranteed by U.S. government agencies. These SPEs generally meet the criteria of VIEs; however, we generally do not consolidate the SPEs as we are not considered the primary beneficiary for these SPEs. Refer to Note 9, Variable Interest Entities for further discussion on VIEs and our determination of the primary beneficiary.

We account for our securitization transactions as sales, provided we have relinquished control over the transferred assets. Transferred assets are carried at fair value with unrealized gains and losses reflected in Principal transactions revenues prior to the identification and isolation for securitization. Subsequently, revenues recognized upon securitization are reflected as net underwriting revenues. We generally receive cash proceeds in connection with the transfer of assets to an SPE. We may, however, have continuing involvement with the transferred assets, which is limited to retaining one or more tranches of the securitization (primarily senior and subordinated debt securities in the form of mortgage-backed and other-asset backed securities or CLOs). These securities are included in Financial instruments owned, at fair value and are generally initially categorized as Level 2 within the fair value hierarchy.


August 2026 Form 10-Q		25

Notes to Consolidated Financial Statements

(Unaudited)

Securitizations that were accounted for as sales in which we had continuing involvement:


	Three Months Ended August 31,	Nine Months Ended August 31,
$ in millions	2026	2025	2026	2025
Transferred assets	$	1,816.5		$	1,451.8	$	5,235.7	$	4,085.3
Proceeds on new securitizations	1,816.5		1,451.8		5,235.7	4,085.3
Cash flows received on retained interests	10.8		6.7		35.8	18.1

We have no explicit or implicit arrangements to provide additional financial support to these SPEs, have no liabilities related to these SPEs and do not have any outstanding derivative contracts executed in connection with these securitization activities at August 31, 2026 and November 30, 2025.

Our retained interests in SPEs where we transferred assets and have continuing involvement and received sale accounting treatment:


$ in millions	August 31, 2026	November 30, 2025
Securitization Type	Total Assets	Retained Interests	Total Assets	Retained Interests
U.S. government agency RMBS	$	182.4		$	2.4	$	405.7	$	4.0
U.S. government agency CMBS	621.2		1.0		1,108.2	1.1
CLOs	12,979.1		102.9		10,970.6	436.6
Consumer and other loans	2,862.2		116.9		2,596.7	104.9

Total assets represent the unpaid principal amount of assets in the SPEs in which we have continuing involvement and are presented solely to provide information regarding the size of the transactions and the size of the underlying assets supporting our retained interests and are not considered representative of the risk of potential loss. Assets retained in connection with a securitization transaction represent the fair value of the securities of one or more tranches issued by an SPE, including senior and subordinated tranches. Our risk of loss is limited to this fair value amount which is included in total Financial instruments owned in our Consolidated Statements of Financial Condition.

Although not obligated, in connection with secondary market-making activities we may make a market in the securities issued by these SPEs. In these market-making transactions, we buy these securities from and sell these securities to investors. Securities purchased through these market-making activities are not considered to be continuing involvement in these SPEs. To the extent we purchased securities through these market-making activities, and we are not deemed to be the primary beneficiary of the VIE, these securities are included in agency and non-agency mortgage-backed and asset-backed securitizations in the nonconsolidated VIEs section presented in Note 9, Variable Interest Entities.

If we have not relinquished control over the transferred assets, the assets continue to be recognized in Financial instruments owned and a corresponding liability is recognized in Other secured financings. The related liabilities do not have recourse to our general credit.


$ in millions	August 31, 2026	November 30, 2025
Financial instruments owned	$	—		$	456.1
Other secured financings	—		456.1

Note 9. Variable Interest Entities

VIEs are entities in which equity investors lack the characteristics of a controlling financial interest. VIEs are consolidated by the primary beneficiary. The primary beneficiary is the party who has both (1) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (2) an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity.

Our variable interests in VIEs include debt and equity interests, commitments, guarantees and certain fees. Our involvement with VIEs arises primarily from:

•Purchases of securities in connection with our trading and secondary market making activities;

•Retained interests held as a result of securitization activities;

•Acting as placement agent and/or underwriter in connection with client-sponsored securitizations;

•Financing of agency and non-agency mortgage-backed and other asset-backed securities;

•Warehouse funding arrangements for client-sponsored consumer and mortgage loan vehicles and CLOs through participation agreements, forward sale agreements, reverse repurchase agreements, and revolving loan and note commitments; and

•Loans to, investments in and fees from various investment vehicles.

We determine whether we are the primary beneficiary of a VIE upon our initial involvement with the VIE and we reassess whether we are the primary beneficiary of a VIE on an ongoing basis. Our determination of whether we are the primary beneficiary of a VIE is based upon the facts and circumstances for each VIE and requires judgment. Our considerations in determining the VIE’s most significant activities and whether we have power to direct those activities include, but are not limited to, the VIE’s purpose and design and the risks passed through to investors, the voting interests of the VIE, management, service and/or other agreements of the VIE, involvement in the VIE’s initial design and the existence of explicit or implicit financial guarantees. In situations where we have determined that the power over the VIE’s significant activities is shared, we assess whether we are the party with the power over the most significant activities. If we are the party with the power over the most significant activities, we meet the “power” criteria of the primary beneficiary. If we do not have the power over the most significant activities or we determine that decisions require consent of each sharing party, we do not meet the “power” criteria of the primary beneficiary.

We assess our variable interests in a VIE both individually and in aggregate to determine whether we have an obligation to absorb losses of or a right to receive benefits from the VIE that could potentially be significant to the VIE. The determination of whether our variable interest is significant to the VIE requires judgment. In determining the significance of our variable interest, we consider the terms, characteristics and size of the variable interests, the design and characteristics of the VIE, our involvement in the VIE and our market-making activities related to the variable interests.


26		Jefferies Financial Group Inc.

Notes to Consolidated Financial Statements

(Unaudited)

Consolidated VIEs:


	August 31, 2026 (1)
$ in millions	Secured Funding Vehicles	Other
Cash	$	0.5		$	19.0

Financial instruments owned	5.8		144.9
Securities purchased under agreements to resell (2)	2,907.3		—
Receivables from brokers (3)	—		53.6
Other receivables	1.4		3.1
Other assets (4)	24.7		84.2
Total assets	$	2,939.7		$	304.8
Financial instruments sold, not yet purchased	$	—		$	71.2
Other secured financings (5)	2,919.5		26.0


Other liabilities (6)	12.1		92.2
Long-term debt	—		70.2
Total liabilities	$	2,931.6		$	259.6


	November 30, 2025 (1)
$ in millions	Secured Funding Vehicles	Other
Cash	$	—		$	1.7
Segregated cash	—		1.4
Financial instruments owned	1.4		142.6
Securities purchased under agreements to resell (2)	3,043.4		121.5
Receivables from brokers (3)	—		104.1
Other receivables	—		3.1
Other assets (4)	—		87.1
Total assets	$	3,044.8		$	461.5
Financial instruments sold, not yet purchased	$	—		$	83.8
Other secured financings (5)	3,042.4		21.6
Securities sold under agreements to repurchase	—		147.8
Other liabilities (6)	7.3		85.1
Long-term debt	—		70.2
Total liabilities	$	3,049.7		$	408.5

(1)Assets and liabilities are presented prior to consolidation and thus a portion of these assets and liabilities are eliminated in consolidation.

(2)Securities purchased under agreements to resell primarily represent amounts due under collateralized transactions on related consolidated entities, all of which are eliminated in consolidation.

(3)Includes $0.5 million and $0.5 million at August 31, 2026 and November 30, 2025, respectively, with related consolidated entities, which are eliminated in consolidation.

(4)Includes $3.3 million and $3.4 million at August 31, 2026 and November 30, 2025, respectively, with related consolidated entities, which are eliminated in consolidation.

(5)Includes $615.3 million and $780.5 million at August 31, 2026 and November 30, 2025, respectively, with related consolidated entities, which are eliminated in consolidation.

(6)Includes $91.7 million and $84.0 million at August 31, 2026 and November 30, 2025, respectively, with related consolidated entities, which are eliminated in consolidation.

Secured Funding Vehicles. We sell agency and non-agency residential and commercial mortgage loans, and asset-backed securities to asset-backed financing vehicles pursuant to the terms of a master repurchase agreement. Our variable interests in these vehicles consist of our collateral margin maintenance obligations under the master repurchase agreement, and retained interests in securities issued. The assets of these VIEs consist of reverse repurchase agreements, which are available for the benefit of the vehicle’s debt holders. From time to time, we may also securitize other financial instruments, hold variable interests in other securitization vehicles, and acquire equity interests in financing vehicles established to provide credit facilities.

Other. We manage investment vehicles for external investors and for the benefit of our employees and we may also hold a controlling financial interest in investment vehicles managed by third parties. The assets of these VIEs consist primarily of equity securities and broker receivables. Our variable interests in these vehicles consist of equity securities, management and performance fees and revenue share arrangements. The creditors of these VIEs do not have recourse to our general credit and each such VIE’s assets are not available to satisfy any other debt.

We are the primary beneficiary of a real estate syndication entity that develops multi-family residential property and manages the property. The assets of the VIE consist primarily of real estate and its liabilities primarily consist of accrued expenses and long-term debt secured by the real estate property. Our variable interest in the VIE primarily consists of our limited liability company interest, a sponsor promote and development and asset management fees for managing the project.

We are the primary beneficiary of special purpose vehicles that hold risk retention notes issued as part of unsecured loan asset- backed transactions. Our variable interests in the VIEs primarily consist of our ownership of certificates issued by the VIEs.

Nonconsolidated VIEs


	August 31, 2026
	Carrying Amount	Maximum Exposure to Loss	VIE Assets
$ in millions	Assets	Liabilities
CLOs	$	1,515.9		$	5.4	$	6,698.6	$	21,170.1
Asset-backed vehicles	994.0		—		1,320.2	9,663.4
Related party private equity vehicles	1.5		—		11.3	74.0
Other investment vehicles	1,557.5		—		1,755.5	96,705.2
Total	$	4,068.9		$	5.4	$	9,785.6	$	127,612.7


	November 30, 2025
	Carrying Amount	Maximum Exposure to Loss	VIE Assets
$ in millions	Assets	Liabilities
CLOs	$	1,245.3		$	96.5	$	7,055.5	$	17,600.4
Asset-backed vehicles	1,207.3		—		1,797.1	6,616.0
Related party private equity vehicles	3.5		—		14.3	57.7
Other investment vehicles	1,722.7		—		2,009.6	74,007.9
Total	$	4,178.8		$	96.5	$	10,876.5	$	98,282.0

Maximum Exposure to Loss

Maximum exposure to loss represents the total of the carrying value of our on-balance sheet interests in the unconsolidated VIEs and the notional amount of any unfunded off-balance sheet arrangements with the unconsolidated VIEs. With respect to CLOs and asset-backed vehicles, the off-balance sheet arrangements typically represent the undrawn notional amount of arrangements to finance the acquisition of assets during the warehousing and pre-closing phase of the vehicles. The maximum exposure to loss is based on the unlikely event that all of the assets in the VIEs become worthless and incorporates not only potential losses associated with the carrying amounts of assets recognized on the Consolidated Statements of Financial Condition but also potential losses associated with unfunded commitments and other contractual arrangements. The maximum exposure to loss does not include the offsetting benefit of any financial instruments that may be utilized to hedge the risks associated with our variable interests, is not reduced by the amount of collateral held as part of a transaction with a VIE


August 2026 Form 10-Q		27

Notes to Consolidated Financial Statements

(Unaudited)

and does not consider any executed forward sale agreements where we have committed to sell ownership interests in any of the investment vehicles.

Collateralized Loan Obligations. Assets collateralizing the CLOs include bank loans, participation interests, sub-investment grade and senior secured U.S. loans, and senior secured Euro-denominated corporate leveraged loans and bonds. We underwrite securities issued in CLO transactions on behalf of sponsors and provide advisory services to the sponsors. We may also sell corporate loans to the CLOs. Our variable interests where we have been involved in providing underwriting and/or advisory services include:

•Forward sale agreements whereby we commit to sell, at a fixed price, corporate loans and ownership interests in a CLO;

•Warehouse funding arrangements in the form of:

◦Participation interests in corporate loans and commitments to fund such participation interests;

◦Reverse repurchase agreements and commitments to fund such reverse repurchase agreements;

◦Variable funding notes; and

◦Senior and subordinated notes issued in connection with CLO warehousing activities.

•Trading positions in securities issued in CLO transactions.

Asset-Backed Vehicles. We provide financing and lending related services to certain client-sponsored VIEs in the form of revolving funding note agreements, revolving credit facilities, forward purchase agreements and reverse repurchase agreements. We also may transfer originated corporate loans to certain VIEs and hold subordinated interests issued by the vehicle. The underlying assets, which are collateralizing the vehicles, are primarily composed of unsecured consumer loans, mortgage loans and corporate loans. In addition, we may provide structuring and advisory services and act as an underwriter or placement agent for securities issued by the vehicles. We do not control the activities of these entities.

Related Party Private Equity Vehicles. We have committed to invest in private equity funds, (the “JCP Funds”, including JCP Fund V (refer to Note 10, Investments for further information)) managed by Jefferies Capital Partners, LLC (the “JCP Manager”). Additionally, we have committed to invest in the general partners of the JCP Funds (the “JCP General Partners”) and the JCP Manager. Our variable interests consist of equity interests that, in total, provide us with limited and general partner investment returns of the JCP Funds, a portion of the carried interest earned by the JCP General Partners and a portion of the management fees earned by the JCP Manager. At August 31, 2026 and November 30, 2025, our remaining equity commitment in the JCP Entities was $8.8 million and $9.7 million, respectively. At August 31, 2026 and November 30, 2025, we also had remaining commitments of $2.8 million and $0.4 million, respectively, to a private equity fund managed by us for the benefit of our employees. The carrying value of our collective equity interests were $1.6 million and $3.4 million at August 31, 2026 and November 30, 2025, respectively. Our exposure to loss is limited to the total of our carrying value and unfunded equity commitment. The assets of the vehicles primarily consist of private equity and equity related investments.

Other Investment Vehicles. At August 31, 2026 and November 30, 2025, our remaining equity commitment in various other

investment vehicles was $182.5 million and $282.2 million, respectively. The carrying value of our equity investments was $1.56 billion at $1.72 billion August 31, 2026 and November 30, 2025, respectively. Our exposure to loss is limited to the total of our carrying value and unfunded equity commitment. These investment vehicles have assets primarily consisting of private and public equity investments, debt instruments, trade and insurance claims, various oil and gas assets. Additionally, we hold an investment in an unconsolidated energy tax credit vehicle in the form of a limited partnership, which operates with the objective of generating a return derived from tax credits earned within the partnership. The proportional amortization method has been elected for this investment and the amortization of the investment and related income tax credits and other income tax benefits are recorded as a component of income tax expense.


$ in millions	August 31, 2026
Carrying value (1)	$	17.2


$ in millions	Three Months Ended August 31,	Nine Months Ended August 31,
	2026	2025	2026	2025
Income tax credits and other income tax benefits	$	22.1		$	—	$	52.9	$	—
Proportional amortization	(16.3)		—		(39.0)	—
Net benefits included in income tax expense	$	5.8		$	—	$	13.9	$	—

(1)Amounts presented within Other Assets in our Consolidated Statements of Financial Condition and Consolidated Statements of Cash Flows.

Mortgage-Backed and Other Asset-Backed Secured Funding Vehicles. In connection with our secondary trading and market-making activities, we buy and sell agency and non-agency mortgage-backed securities and other asset-backed securities, which are issued by third-party securitization SPEs and are generally considered variable interests in VIEs. Securities issued by securitization SPEs are backed by residential mortgage loans, U.S. agency collateralized mortgage obligations, commercial mortgage loans, CDOs and CLOs and other consumer loans, such as installment receivables, automobile loans and student loans. These securities are accounted for at fair value and included in Financial instruments owned. We have no other involvement with the related SPEs and therefore do not consolidate these entities.

We also engage in underwriting, placement and structuring activities for third-party-sponsored securitization trusts generally through agency (Fannie Mae, Federal Home Loan Mortgage Corporation (“Freddie Mac”) or Ginnie Mae) or non-agency-sponsored SPEs and may purchase loans or mortgage-backed securities from third-parties that are subsequently transferred into the securitization trusts. The securitizations are backed by residential and commercial mortgage, home equity and automobile loans. We do not consolidate agency-sponsored securitizations as we do not have the power to direct the activities of the SPEs that most significantly impact their economic performance. Further, we are not the servicer of non-agency-sponsored securitizations and therefore do not have power to direct the most significant activities of the SPEs and accordingly, do not consolidate these entities. We may retain unsold senior and/or subordinated interests at the time of securitization in the form of securities issued by the SPEs.

At August 31, 2026 and November 30, 2025, we held $1.24 billion and $1.06 billion of agency mortgage-backed securities, respectively, and $262.1 million and $156.3 million of non-agency mortgage-backed and other asset-backed securities, respectively,


28		Jefferies Financial Group Inc.

Notes to Consolidated Financial Statements

(Unaudited)

as a result of our secondary trading and market-making activities, and underwriting, placement and structuring activities. Our maximum exposure to loss on these securities is limited to the carrying value of our investments in these securities. These mortgage-backed and other asset-backed secured funding vehicles discussed are not included in the above table containing information about our variable interests in nonconsolidated VIEs.

Note 10. Investments

Investments for which we exercise significant influence over the investee are accounted for under the equity method of accounting with our shares of the investees’ earnings recognized in Other revenues. Equity method investments, including any loans to the investees, are reported within Investments in and loans to related parties.


$ in millions	August 31, 2026	November 30, 2025
Total Investments in and loans to related parties	$	1,653.3	$	1,496.1


	Three Months Ended August 31,	Nine Months Ended August 31,
$ in millions	2026	2025	2026	2025
Total equity method pickup earnings recognized in Other revenues	$	52.8		$	39.1	$	99.1	$	54.3

The following presents summarized financial information about our significant equity method investees. For certain investees, we receive financial information on a lag and the summarized information provided for these investees is based on the latest financial information available as of August 31, 2026.

Jefferies Finance

Jefferies Finance, our 50/50 joint venture with Massachusetts Mutual Life Insurance Company (“MassMutual”) structures, underwrites and syndicates primarily senior secured loans to corporate borrowers; and manages proprietary and third-party investments in both broadly syndicated and direct lending loans. In connection with its Leveraged Finance business, loans are originated primarily through our investment banking efforts and Jefferies Finance typically syndicates to third-party investors substantially all of its arranged volume through us. The Asset Management business is a multi-strategy private credit platform that manages proprietary and third-party capital across commingled funds, funds-of-one, separately managed accounts, business development companies, CLOs and levered balance sheet funds. Broadly syndicated loan investments are sourced through transactions arranged by Jefferies Finance and third-party arrangers and managed through its subsidiary, Apex Credit Partners LLC. Direct lending investments are primarily sourced through us. Jefferies Finance and its subsidiaries that are involved in investment management are registered investment advisers with the SEC.

At August 31, 2026, we and MassMutual each had equity commitments to Jefferies Finance of $750.0 million, for a combined total commitment of $1.50 billion. The equity commitment is reduced quarterly based on our share of any undistributed earnings from Jefferies Finance and the commitment is increased only to the extent the share of such earnings are distributed. As of August 31, 2026, our commitment to Jefferies Finance has been fully funded. The investment commitment is scheduled to expire on March 1, 2027 with automatic one year extensions absent a 60 day termination notice by either party.

Jefferies Finance has executed a secured revolving credit facility with us and MassMutual, to be funded equally, to support loan underwritings by Jefferies Finance, which bears interest based on the interest rates of the related Jefferies Finance underwritten loans and is secured by the underlying loans funded by the proceeds of the facility. The total facility is a committed amount of $500.0 million at August 31, 2026. Advances are shared equally between us and MassMutual. The facility is scheduled to mature on March 1, 2027 with automatic one year extensions absent a 60 day termination notice by either party. At August 31, 2026, we had funded $61.5 million of our $250.0 million commitment.

Activity related to the facility:


	Three Months Ended August 31,	Nine Months Ended August 31,
$ in millions	2026	2025	2026	2025
Interest income	$	1.8		$	—		$	2.1		$	—
Unfunded commitment fees	0.2		$	0.3		$	0.8		$	0.9

Selected financial information for Jefferies Finance:


$ in millions	August 31, 2026	November 30, 2025
Total assets	$	7,417.5		$	7,356.1
Total liabilities	5,899.0		5,959.2
Total mezzanine equity	16.9		14.8


$ in millions	August 31, 2026	November 30, 2025
Our total investment balance	$	750.8	$	691.0


	Three Months Ended August 31,	Nine Months Ended August 31,
$ in millions	2026	2025	2026	2025
Net earnings attributable to members	$	45.3		$	27.0	$	113.8	$	25.4

Activity related to our other transactions with Jefferies Finance:


	Three Months Ended August 31,	Nine Months Ended August 31,
$ in millions	2026	2025	2026	2025
Origination and syndication fee revenues (1)	$	41.8		$	73.3	$	136.6	$	191.9
Origination fee expenses (1)	10.7		18.3		40.3	50.7
CLO placement and structuring fee revenues (2)	0.2		0.8		3.0	2.3
Placement and referral fees (3)	4.8		6.1		18.5	16.1
Asset management fee revenues (4)	—		—		—	7.5
Net underwriting revenues (5)	5.0		0.5		3.9	0.5
Service fees (6)	25.4		24.0		116.8	101.0

(1)We engage in the origination and syndication of loans underwritten by Jefferies Finance. In connection with such services, we earned fees, which are recognized in Investment banking revenues. In addition, we paid fees to Jefferies Finance in respect of certain loans originated by Jefferies Finance, which are recognized as Business development expenses.

(2)We act as a placement and/or structuring agent for CLOs managed by Jefferies Finance, which are recognized as fees and included in Investment banking revenues.

(3)We act as a placement agent for investment funds managed by Jefferies Finance, which are recognized as fees and included in Commissions and other fees.

(4)Under a fee and revenue sharing agreement with Jefferies Finance, we receive fees, which are included in Asset management fees and revenues.

(5)We act as an underwriter in connection with term loans issued by Jefferies Finance.

(6)Under a service agreement, we charge Jefferies Finance for various administrative services provided.


August 2026 Form 10-Q		29

Notes to Consolidated Financial Statements

(Unaudited)

Additional balances with Jefferies Finance as reported in our Consolidated Statements of Financial Condition.


$ in millions	August 31, 2026	November 30, 2025
Assets
Financial instruments owned, at fair value (1)	$	2.0		$	10.9


Other assets (2)	13.0		7.0
Liabilities
Financial instruments sold, not yet purchased, at fair value (1)	$	1.3		$	0.4
Payables:
Brokers, dealers and clearing organizations (3)	23.3		17.2
Customers (4)	2.3		3.3

(1)In connection with our capital markets activities, from time to time we make a market in long-term debt securities and term loans of Jefferies Finance (i.e., we buy and sell debt securities and tern loans of Jefferies Finance).

(2)Receivable for services and certain fees from Jefferies Finance.

(3)Cash collateral, net, received from Jefferies Finance on OTC foreign currency derivatives.

(4)Payable to Jefferies Finance in connection with loans originated by Jefferies Finance to borrowers who are investment banking clients of ours. We have also entered into an agreement to indemnify Jefferies Finance with respect to any foreign currency exposure on these loans.

In the third quarter of 2026, we purchased a $24.8 million pre-IPO term loan from Jefferies Finance. The loan is accounted for at amortized cost and reported within Other assets.

Berkadia

Berkadia is a commercial real estate finance and investment sales joint venture that was formed by us and Berkshire Hathaway Inc. We are entitled to receive 45.0% of the profits of Berkadia. Berkadia originates commercial and multifamily real estate loans that are sold to U.S. government agencies or other investors with Berkadia retaining the servicing rights. Berkadia also provides advisory services in connection with sales of multifamily assets. Berkadia is a servicer of commercial real estate loans in the U.S., performing primary, master and special servicing functions for U.S. government agency programs and financial services companies.

Commercial paper issued by Berkadia is supported by a $1.50 billion surety policy issued by a Berkshire Hathaway insurance subsidiary, for which we receive a surety fee, and a corporate guaranty, and we have agreed to reimburse Berkshire Hathaway for one-half of any losses incurred thereunder. At August 31, 2026, the aggregate amount of commercial paper outstanding was $1.47 billion.

Selected financial information for Berkadia:


$ in millions	August 31, 2026	November 30, 2025
Total assets	$	4,690.0		$	5,269.8
Total liabilities	3,158.7		3,953.1
Total noncontrolling interest	565.3		369.0


$ in millions	August 31, 2026	November 30, 2025
Our total investment balance	$	438.8	$	429.7


	Three Months Ended August 31,	Nine Months Ended August 31,
$ in millions	2026	2025	2026	2025
Net earnings attributable to members	$	70.2		$	70.9	$	137.1	$	152.9


	Three Months Ended August 31,	Nine Months Ended August 31,
$ in millions	2026	2025	2026	2025
Distributions	$	25.4		$	42.3	$	52.0	$	69.3

At August 31, 2026 and November 30, 2025, we had commitments to purchase $6.7 million and $13.6 million, respectively, of agency CMBS from Berkadia.

Real Estate Investments

Our real estate equity method investments primarily consist of our equity interests in Brooklyn Renaissance Plaza and Hotel and 54 Madison. Brooklyn Renaissance Plaza is composed of a hotel, office building complex and parking garage located in Brooklyn, New York. We have a 25.4% equity interest in the hotel and a 61.3% equity interest in the office building and garage. Although we have a majority interest in the office building and garage, we do not have control, but only have the ability to exercise significant influence on this investment. We are amortizing our basis difference between the estimated fair value and the underlying book value of Brooklyn Renaissance office building and garage over the respective useful lives (weighted average life of 39 years).

We own a 48.1% equity interest in 54 Madison, a fund that most recently owned an interest in one real estate project and the fund is in the process of being liquidated.

Selected financial information for the real estate investments:


$ in millions	August 31, 2026	November 30, 2025
Total assets	$	307.9		$	312.6
Total liabilities	459.3		470.7

	August 31, 2026	November 30, 2025
Our total investment balance	$	100.4		$	98.7


	Three Months Ended August 31,	Nine Months Ended August 31,
$ in millions	2026	2025	2026	2025
Net earnings	$	1.8		$	0.4	$	6.7	$	1.7



	Three Months Ended August 31,	Nine Months Ended August 31,
$ in millions	2026	2025	2026	2025

Distributions we received from Brooklyn Renaissance Hotel	$	—		$	—	$	—	$	1.2

JCP Fund V

We have limited partnership interests of 3% and 12% in Jefferies Capital Partners V L.P. and Jefferies SBI USA Fund L.P. (together, “JCP Fund V”), respectively, which are private equity funds managed by a team led by our President and which are in the process of being fully liquidated. The amount of our investments in JCP Fund V included in Financial instruments owned, at fair value was $0.8 million and $2.8 million at August 31, 2026 and November 30, 2025, respectively. We account for these investments at fair value based on the NAV of the funds provided by the fund managers. The following summarizes the results from these investments which are included in Principal transactions revenues:


	Three Months Ended August 31,	Nine Months Ended August 31,
$ in millions	2026	2025	2026	2025
Net gains from our investments in JCP Fund V	$	0.1		$	0.6	$	0.4	$	0.4


30		Jefferies Financial Group Inc.

Notes to Consolidated Financial Statements

(Unaudited)

At both August 31, 2026 and November 30, 2025, we were committed to invest equity of up to $85.0 million in JCP Fund V. At both August 31, 2026 and November 30, 2025, our unfunded commitment relating to JCP Fund V was $8.7 million. We do not expect any further capital to be called by JCP Fund V.

The following is a summary of the Net change in net assets resulting from operations for 100.0% of JCP Fund V, in which we owned effectively 8.3% at August 31, 2026 of the combined equity interests:


	Three Months Ended (1)
$ in millions	June 30, 2026	March 31, 2026	December 31, 2025	June 30, 2025	March 31, 2025	December 31, 2024
Net increase (decrease) in net assets resulting from operations	$	0.2		$	1.0		$	—	$	1.7	$	0.1	$	(0.6)

(1)Financial information for JCP Fund V within our results of operations for the three and nine months ended August 31, 2026 and 2025 is included based on the periods presented.

Hildene

In July 2024, we invested $25.0 million in the Class A Common Equity Units of Hildene Insurance Holdings, LLC (“Hildene Insurance”), an investment fund with insurance exposures. On March 1, 2025, we made an additional investment of $75.0 million in Hildene Insurance, which resulted in an increase of our effective ownership from 8.8% to 23.5%. The investment is accounted for under the equity method with a carrying amount of $128.1 million and $113.8 million at August 31, 2026 and November 30, 2025, respectively.

Selected financial information for Hildene Insurance:


$ in millions	June 30, 2026 (1)	September 30, 2025 (1)
Total assets	$	637.6		$	498.4
Total liabilities	30.9		0.7
Total members’ equity	606.7		497.7


	Three Months Ended (1)
$ in millions	June 30, 2026	March 31, 2026	December 31, 2025	June 30, 2025	March 31, 2025	December 31, 2024
Net increase in members’ equity resulting from operations	$	44.1		$	15.8		$	16.6	$	44.9	$	27.5	$	8.4

(1)Financial information for Hildene Insurance Holdings, LLC included in our financial position at August 31, 2026 and November 30, 2025 is based on the dates presented, and in our results of operations for the three and nine months ended August 31, 2026 and 2025 is based on the periods presented.

On December 9, 2025, we entered into an agreement to acquire a 50% interest in Hildene Holding Company, LLC, parent of Hildene Capital Management, LLC, a credit-focused asset manager and the parent of Hildene Insurance. We will contribute our existing revenue share, a portion of our interest in a Hildene-managed fund, and $340.0 million in cash. Hildene’s principals will contribute their ownership interests and approximately $250.0 million of the fund and related equity interests. Closing is targeted to occur in the first quarter of 2027, subject to customary approvals.

ApiJect

We own shares that represent a 37.9% and 33.6% economic interest in ApiJect at August 31, 2026 and November 30, 2025, respectively, which are accounted for at fair value by electing the fair value option available under U.S. GAAP, and are included within corporate equity securities in Financial instruments owned,

at fair value. At both August 31, 2026 and November 30, 2025, the total fair value of our total equity investment in common shares of ApiJect was $97.9 million, which is classified within Level 3 of the fair value hierarchy. Additionally, we own warrants to purchase up to 950,000 shares of common stock at any time or from time to time on or before April 15, 2032.

We also have a term loan agreement with a principal of ApiJect for $23.3 million, which matures on October 31, 2026. The loan is accounted for at amortized cost and is reported within Other assets. The loan has a fair value of $23.3 million at both August 31, 2026 and November 30, 2025, which would be classified as Level 3 in the fair value hierarchy.

For the three and nine months ended August 31, 2026, we have purchased secured convertible promissory notes totaling $9.8 million and $23.5 million, respectively, from ApiJect. These promissory notes are accounted for at fair value in Financial instruments owned and classified within Level 3 of the fair value hierarchy.

Aircadia

In December 2023, Aircadia Leasing II LLC (“Aircadia”), a wholly owned subsidiary, purchased airplanes from one of our clients and simultaneously entered into a lease with the seller to lease the airplanes for a term of 42 months. The transaction was accounted for as a sale leaseback and the airplanes were recorded within Premises and equipment at $57.7 million. During the second quarter of 2025, we agreed to sell the airplanes and we recognized a loss of $12.8 million. The sale closed in the third quarter of 2025.


	Three Months Ended August 31,	Nine Months Ended August 31,
$ in millions	2026	2025	2026	2025
Operating lease income	$	—		$	—	$	—	$	6.9

Also in December 2023, we provided a loan to the seller for $30.0 million, which was paid off on April 1, 2025. The loan was accounted for at amortized cost and included within Investments in and loans to related parties. We recognized interest income of $1.0 million on the loan during the nine months ended August 31, 2025. We also hold preferred shares in the seller, which are accounted for at fair value in Financial instruments owned with a fair value of $7.3 million and $43.2 million at August 31, 2026 and November 30, 2025, respectively, and are classified within Level 3 of the fair value hierarchy. In the third quarter of 2026, we received a distribution on the preferred shares of $37.6 million and recognized a gain of $1.8 million.

In September 2024, we provided a €15.0 million loan, which matured in August 2026, to an individual related to the seller, secured by a privately owned aircraft and guaranteed by the individual. We recognized interest income of $0.4 million and $1.5 million for the three and nine months ended August 31, 2026, respectively, and $0.5 million and $1.5 million during the three and nine months ended August 31, 2025, respectively.

Note 11. Credit Losses on Financial Assets Measured at Amortized Cost

Secured Financing Receivables. In evaluating secured financing receivables (reverse repurchases agreements, securities borrowing arrangements, and margin loans), the underlying collateral maintenance provisions are taken into consideration. The underlying contractual collateral maintenance for significantly all of our secured financing receivables requires that the counterparty continually adjust the collateralization amount,


August 2026 Form 10-Q		31

Notes to Consolidated Financial Statements

(Unaudited)

securing the credit exposure on these contracts. Collateralization levels for our secured financing receivables are initially established based upon the counterparty, the type of acceptable collateral that is monitored daily and adjusted to mitigate the potential of any credit losses. Credit losses are not recognized for secured financing receivables where the underlying collateral’s fair value is equal to or exceeds the asset’s amortized cost basis. In cases where the collateral’s fair value does not equal or exceed the amortized cost basis, the allowance for credit losses, if any, is limited to the difference between the fair value of the collateral at the reporting date and the amortized cost basis of the financial assets.

Broker Receivables. Our receivables from brokers, dealers, and clearing organizations include deposits of cash with exchange clearing organizations to meet margin requirements, amounts due from clearing organizations for daily variation settlements, securities failed-to-deliver or receive and receivables and payables for fees and commissions. These receivables generally do not give rise to material credit risk and have a remote probability of default either because of their short-term nature or due to the credit protection framework inherent in the design and operations of brokers, dealers and clearing organizations. As such, generally, no allowance for credit losses is held against these receivables.

Investment Banking Fee Receivables. Our allowance for credit losses on our investment banking fee receivables uses a provisioning matrix based on the shared risk characteristics and historical loss experience for such receivables. In some instances, we may adjust the allowance calculated based on the provision matrix to incorporate a specific allowance based on the unique credit risk profile of a receivable. The provisioning matrix is periodically updated to reflect changes in the underlying portfolio’s credit characteristics and most recent historical loss data.

Allowance for credit losses for investment banking receivables:



	Three Months Ended August 31,	Nine Months Ended August 31,
$ in thousands	2026	2025	2026	2025
Beginning balance	$	14,529		$	2,315	$	3,681	$	5,277

Bad debt expense	7,867		2,156		22,286	4,974
Charge-offs	(200)		—		(216)	(3,076)
Recoveries collected	(2,343)		(1,274)		(5,898)	(3,978)
Ending balance (1)	$	19,853		$	3,197	$	19,853	$	3,197

(1)Substantially all of the allowance for doubtful accounts relate to mergers and acquisitions and restructuring fee receivables, which include recoverable expense receivables.

Other Financial Assets. For all other financial assets measured at amortized cost, we estimate expected credit losses over the financial assets’ life as of the reporting date based on relevant information about past events, current conditions, and reasonable and supportable forecasts.

Note 12. Goodwill and Intangible Assets

Goodwill


	Nine Months Ended August 31, 2026
$ in thousands	Investment Banking and Capital Markets	Asset Management	Total
Balance, at beginning of period	$	1,535,961		$	301,609	$	1,837,570
Currency translation and other adjustments	1,430		2,113		3,543

Impairment (1)	—		(58,240)		(58,240)
Reclassification to held for sale (1)	—		(56,850)		(56,850)
Balance, at end of period	$	1,537,391		$	188,632	$	1,726,023

(1)Following the acceptance of a binding offer for Tessellis during the first quarter of 2026, we recorded a $58.2 million goodwill impairment charge. The remaining goodwill balance was reclassified as held for sale at August 31, 2026. See Note 4, Assets and Liabilities Held for Sale.


	Nine Months Ended August 31, 2025
$ in thousands	Investment Banking and Capital Markets	Asset Management	Total
Balance, at beginning of period	$	1,533,013		$	294,925	$	1,827,938
Currency translation and other adjustments	4,866		11,389		16,255
Measurement period adjustments (1)	—		1,802		1,802

Write-off related to disposals	—		(5,563)		(5,563)
Balance, at end of period	$	1,537,879		$	302,553	$	1,840,432

(1)Relates to a measurement period adjustment recorded during the second quarter of 2025 attributable to the Go Internet acquisition. Refer to Note 4, Business Acquisitions and Discontinued Operations in our consolidated financial statements included in Part II, Item 8 of our Annual Report on Form 10-K for the year ended November 30, 2025 for further discussion.

Carrying values of goodwill by reporting unit:


$ in millions	August 31, 2026	November 30, 2025
Investment banking	$	702.7		$	702.0
Equities and wealth management	256.1		255.9
Fixed income	578.5		578.0
Asset management	143.0		143.0
Other investments	45.7		158.7
Total	$	1,726.0		$	1,837.6

Goodwill Impairment Testing

The quantitative goodwill impairment test is performed at the level of the reporting unit. A reporting unit is an operating segment or one level below an operating segment. The fair value of each reporting unit is compared with its carrying value, including goodwill and allocated intangible assets. If the fair value is in excess of the carrying value, the goodwill for the reporting unit is considered not to be impaired. If the fair value is less than the carrying value, then an impairment loss is recognized for the amount by which the carrying value of the reporting unit exceeds the reporting unit's fair value. Allocated tangible equity plus allocated goodwill and intangible assets are used for the carrying amount of each reporting unit.


32		Jefferies Financial Group Inc.

Notes to Consolidated Financial Statements

(Unaudited)

We test goodwill allocated to our Investment Banking, Equities, Fixed Income and Asset Management reporting units annually on August 1 and test goodwill allocated to other individual investments annually on November 30. Our annual goodwill impairment testing at August 1, 2026 did not indicate any goodwill impairment in any of our Investment Banking, Equities and Fixed Income reporting units, which are part of our Investment Banking and Capital Markets reportable segment and did not indicate any goodwill impairment in our Asset Management reporting unit. The results of our assessment indicated that each of these reporting units had a fair value in excess of their carrying amounts based on current projections.

Estimating the fair value of a reporting unit requires management judgment. Estimated fair values for our reporting units were determined using methodologies that include a market valuation method that incorporated price-to-earnings and price-to-book multiples of comparable public companies and/or projected cash flows. Under the market valuation approach, the key assumptions are the selected multiples and our internally developed projections of future profitability, growth and return on equity for each reporting unit. The weight assigned to the multiples requires judgment in qualitatively and quantitatively evaluating the size, profitability and the nature of the business activities of the reporting units as compared to the comparable publicly-traded companies. In addition, as the fair values determined under the market valuation approach represent a noncontrolling interest, we applied a control premium to arrive at the estimated fair value of each reporting unit on a controlling basis. We engaged an independent valuation specialist to assist us in our valuation process at August 1.

Intangible Assets


	August 31, 2026	Weighted Average Remaining Lives (Years)
$ in thousands	Gross Cost		Accumulated Amortization		Net Carrying Amount
Customer relationships (1)	$	127,686			$	(107,275)		$	20,411	4.5
Trademarks and trade names (1)	129,066			(49,839)			79,227	21.5
Exchange and clearing organization membership interests and registrations	8,712			—			8,712	N/A
Other (1)	15,156			(14,525)			631	2.0
Total	$	280,620			$	(171,639)		$	108,981


	November 30, 2025	Weighted Average Remaining Lives (Years)
$ in thousands	Gross Cost	Assets Acquired		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	166,328		$	622		$	(116,810)		$	50,140	4.6
Trademarks and trade names	160,674		—			(55,948)		104,726	20.6
Exchange and clearing organization membership interests and registrations	8,717		—			—		8,717	N/A
Other	86,815		99			(47,920)		38,994	2.8
Total	$	422,534		$	721		$	(220,678)		$	202,577

(1)Following the acceptance of a binding offer for Tessellis during the first quarter of 2026, intangible assets of $82.7 million related to Tessellis were reclassified as held for sale. See Note 4, Assets and Liabilities Held for Sale.

At August 1, 2026, we performed our annual impairment testing of intangible assets with an indefinite useful life consisting of exchange and clearing organization membership interests and registrations. We utilized quantitative assessments of membership interests and registrations that have available quoted sales prices as well as certain other membership interests and registrations that have declined in utilization and qualitative assessments were performed on the remainder of our indefinite-life intangible assets. With regard to our qualitative assessments of the remaining indefinite life intangible assets, based on our assessments of market conditions, the utilization of the assets and the replacement costs associated with the assets, we have concluded that it is not more likely than not that the intangible assets are impaired.

Amortization Expense

For finite life intangible assets, we recognized aggregate amortization expense of $2.2 million and $12.8 million for the three and nine months ended August 31, 2026, respectively, and $8.6 million and $25.0 million for the three and nine months ended August 31, 2025, respectively. These expenses are included in Depreciation and amortization.

Estimated future amortization expense for the next five fiscal years:


Year	$ in thousands
Remainder of fiscal year 2026	$	2,165
Year ending November 30, 2027	8,685
Year ending November 30, 2028	8,567
Year ending November 30, 2029	8,380
Year ending November 30, 2030	8,322

Note 13. Revenues from Contracts with Customers



	Three Months Ended August 31,	Nine Months Ended August 31,
$ in thousands	2026	2025	2026	2025
Revenues from contracts with customers:
Investment banking	$	1,300,443		$	1,086,307	$	3,520,393	$	2,597,559
Commissions and other fees	386,968		319,784		1,138,899	951,933
Asset management fees	2,156		8,236		12,648	61,539


Real estate revenues	8,847		16,621		13,388	43,913
Internet connection and broadband revenues	35,524		56,598		142,038	171,069
Other contracts with customers	17,870		16,616		54,902	49,515
Total revenue from contracts with customers	1,751,808		1,504,162		4,882,268	3,875,528
Other sources of revenue:
Principal transactions	468,655		486,893		1,444,819	1,232,630
Revenues from strategic affiliates	15,883		11,933		104,250	76,582
Interest	922,999		846,894		2,590,080	2,570,090
Other	71,453		57,792		198,843	120,023
Total revenues	$	3,230,798		$	2,907,674	$	9,220,260	$	7,874,853


August 2026 Form 10-Q		33

Notes to Consolidated Financial Statements

(Unaudited)

Disaggregation of Revenue


	Three Months Ended August 31, 2026
$ in thousands	Investment Banking and Capital Markets	Asset Management	Total
Major business activity:
Investment banking - Advisory	$	817,822		$	—	$	817,822
Investment banking - Underwriting	482,621		—		482,621
Equities (1)	385,244		—		385,244
Fixed income (1)	1,724		—		1,724
Asset management	—		2,156		2,156
Other investments	—		62,241		62,241
Total	$	1,687,411		$	64,397	$	1,751,808
Primary geographic region:
Americas	$	1,308,726		$	26,937	$	1,335,663
Europe and the Middle East	232,627		36,426		269,053
Asia-Pacific	146,058		1,034		147,092
Total	$	1,687,411		$	64,397	$	1,751,808

	Three Months Ended August 31, 2025
$ in thousands	Investment Banking and Capital Markets	Asset Management	Total
Major business activity:
Investment banking - Advisory	$	655,578		$	—	$	655,578
Investment banking - Underwriting	430,730		—		430,730
Equities (1)	318,319		—		318,319
Fixed income (1)	1,464		—		1,464
Asset management	—		8,236		8,236
Other investments	—		89,835		89,835
Total	$	1,406,091		$	98,071	$	1,504,162
Primary geographic region:
Americas	$	1,038,469		$	39,591	$	1,078,060
Europe and the Middle East	252,336		57,591		309,927
Asia-Pacific	115,286		889		116,175
Total	$	1,406,091		$	98,071	$	1,504,162


	Nine Months Ended August 31, 2026
$ in thousands	Investment Banking and Capital Markets	Asset Management	Total
Major business activity:
Investment banking - Advisory	$	2,019,068		$	—	$	2,019,068
Investment banking - Underwriting	1,501,325		—		1,501,325
Equities (1)	1,133,843		—		1,133,843
Fixed income (1)	5,056		—		5,056
Asset management	—		12,648		12,648
Other investments	—		210,328		210,328
Total	$	4,659,292		$	222,976	$	4,882,268
Primary geographic region:
Americas	$	3,512,963		$	74,937	$	3,587,900
Europe and the Middle East	747,347		145,080		892,427
Asia-Pacific	398,982		2,959		401,941
Total	$	4,659,292		$	222,976	$	4,882,268


	Nine Months Ended August 31, 2025
$ in thousands	Investment Banking and Capital Markets	Asset Management	Total
Major business activity:
Investment banking - Advisory	$	1,511,218		$	—	$	1,511,218
Investment banking - Underwriting	1,086,341		—		1,086,341
Equities (1)	946,549		—		946,549
Fixed income (1)	5,384		—		5,384
Asset management	—		61,539		61,539
Other investments	—		264,497		264,497
Total	$	3,549,492		$	326,036	$	3,875,528
Primary geographic region:
Americas	$	2,575,418		$	149,184	$	2,724,602
Europe and the Middle East	663,986		174,079		838,065
Asia-Pacific	310,088		2,773		312,861
Total	$	3,549,492		$	326,036	$	3,875,528

(1)Revenues from contracts with customers associated with the equities and fixed income businesses primarily represent commissions and other fee revenue.

Refer to Note 20, Segment Reporting, for a further discussion on the allocation of revenues to geographic regions.

Information on Remaining Performance Obligations and Revenue Recognized from Past Performance

We do not disclose information about remaining performance obligations pertaining to contracts that have an original expected duration of one year or less. The transaction price allocated to remaining unsatisfied or partially unsatisfied performance obligations with an original expected duration exceeding one year was not material at August 31, 2026. Investment banking advisory fees that are contingent upon completion of a specific milestone and fees associated with certain distribution services are also excluded as the fees are considered variable and not included in the transaction price.

During the three and nine months ended August 31, 2026, we recognized $21.6 million and $32.7 million, respectively, compared with $36.1 million and $83.8 million during the three and nine months ended August 31, 2025, respectively, of revenue related to performance obligations satisfied (or partially satisfied) in previous periods, mainly due to resolving uncertainties in variable consideration that was constrained in prior periods. In addition, three and nine months ended August 31, 2026, we recognized $9.8 million and $26.4 million, respectively, compared with $8.5 million and $24.0 million during the three and nine months ended August 31, 2025, respectively, of revenues primarily associated with distribution services, a portion of which relates to prior periods.

Contract Balances

The timing of our revenue recognition may differ from the timing of payment by our customers. We record a receivable when revenue is recognized prior to payment and we have an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, we record deferred revenue until the performance obligations are satisfied.

Our deferred revenue primarily relates to retainer and milestone fees received in investment banking advisory engagements where the performance obligation has not yet been satisfied. Deferred revenue at August 31, 2026 and November 30, 2025 was $59.5 million and $92.3 million, respectively, which is recorded in Accrued expenses and other liabilities. During the three and nine months ended August 31, 2026, we recognized


34		Jefferies Financial Group Inc.

Notes to Consolidated Financial Statements

(Unaudited)

revenues of $19.7 million and $77.3 million, respectively, compared with $44.8 million and $52.8 million for the three and nine months ended August 31, 2025, respectively, that were recorded as deferred revenue at the beginning of the periods.

We had receivables related to revenues from contracts with customers of $475.2 million and $396.8 million at August 31, 2026 and November 30, 2025, respectively.

Contract Costs

We capitalize costs to fulfill contracts associated with investment banking advisory engagements where the revenue is recognized at a point in time and the costs are determined to be recoverable. Capitalized costs to fulfill a contract are recognized at the point in time that the related revenue is recognized.

At August 31, 2026 and November 30, 2025, capitalized costs to fulfill a contract were $6.3 million and $5.2 million, respectively, which are recorded in Receivables – Fees, interest and other. During the three and nine months ended August 31, 2026, we recognized expenses of $2.5 million and $3.9 million, respectively, compared with $1.3 million and $1.9 million during the three and nine months ended August 31, 2025, respectively, related to costs to fulfill a contract that were capitalized as of the beginning of the year. There were no significant impairment charges recognized in relation to these capitalized costs for the three and nine months ended August 31, 2026 and August 31, 2025.

Note 14. Compensation Plans

For a description of Restricted Stock, Restricted Stock Units, the Senior Executive Compensation Plan and other compensation plans refer to Note 15. Compensation Plans in our consolidated financial statements included in Part II, Item 8 of our Annual Report on Form 10-K for the year ended November 30, 2025.

At August 31, 2026, there were approximately 2.1 million shares of restricted stock outstanding with future service required, 6.7 million RSUs outstanding with future service required (including target RSUs that may be issued under the senior executive compensation plan), 7.7 million RSUs outstanding with no future service required, and 5.1 million stock options outstanding. The maximum potential increase to common shares outstanding resulting from these outstanding awards is 19.4 million at August 31, 2026.

In December 2025, the Compensation Committee of our Board of Directors granted RSUs and performance stock units (“PSUs”) to each of our senior executives as follows:


$ in millions	Grant Terms
RSUs
Aggregate grant date fair value	$14.3
Vesting period	3-year cliff
PSUs
Aggregate target fair value	$14.3
Service period	3 years
Performance period	Fiscal 2025 to Fiscal 2027
Performance target (1)	10% ROTE
Performance range (2)	7.5% - 15% ROTE

(1)ROTE is defined as return on tangible equity measured over three years.

(2)Performance below an ROTE of 7.5% results in forfeiture of all PSUs. An ROTE of 15% or greater results in earning 150% of target PSUs and between 7.5% to 15%, the level of earning PSUs is linearly interpolated.

In addition, we sponsor non-share-based compensation plans. Non-share-based compensation plans sponsored by us include a

profit sharing plan and other forms of restricted cash awards. Restricted cash awards are subject to ratable vesting terms with service requirements. These awards are amortized as compensation expense over the relevant service period, which is generally considered to start at the beginning of the annual compensation year.

Components of total compensation cost associated with certain of our compensation plans:


	Three Months Ended August 31,	Nine Months Ended August 31,
$ in millions	2026	2025	2026	2025
Restricted cash awards	$	132.2		$	126.3	$	389.7	$	372.9

Restricted stock and RSUs (1)	22.2		14.0		95.8	67.8
Profit sharing plan	2.9		2.2		12.9	11.4
Total compensation cost	$	157.3		$	142.5	$	498.4	$	452.1

(1)Total compensation cost associated with restricted stock and RSUs includes the amortization of sign-on, retention and senior executive awards, less forfeitures and clawbacks.

Remaining unamortized amounts related to certain compensation plans at August 31, 2026:


$ in millions	Remaining Unamortized Amounts	Weighted Average Vesting Period (in Years)
Non-vested share-based awards	$	196.0		3.1
Restricted cash awards (1)	1,000.5		2.5
Total	$	1,196.5

(1)The remaining unamortized amount is included within Other assets.

Note 15. Borrowings

Short-Term Borrowings


$ in thousands	August 31, 2026	November 30, 2025


Bank loans and other credit facilities	$	316,060		$	568,418
Fixed rate callable notes	1,149,721		1,198,788

Total short-term borrowings (1)	$	1,465,781		$	1,767,206

(1) Short-term borrowings mature in one year or less and are recorded at cost, which is a reasonable approximation of their fair values due to their liquid and short-term nature.

At August 31, 2026 and November 30, 2025, the weighted average interest rate on bank loans outstanding is 4.90% and 4.92% per annum, respectively.

Our borrowings include credit facilities that contain certain covenants that, among other things, require us to maintain a specified level of tangible net worth, require a minimum regulatory net capital requirement for our U.S. broker-dealer, Jefferies LLC, and impose certain restrictions on the future indebtedness of certain of our subsidiaries that are borrowers. Interest is based on rates at spreads over the federal funds rate or other adjusted rates, as defined in the various credit agreements, or at a rate as agreed between the bank and us in reference to the bank’s cost of funding. At August 31, 2026, we were in compliance with all covenants under these credit facilities.


August 2026 Form 10-Q		35

Notes to Consolidated Financial Statements

(Unaudited)

Long-Term Debt


$ in thousands	Maturity (Fiscal Years)	August 31, 2026	November 30, 2025


Parent Co. unsecured borrowings
Fixed rate	2026	$	—		$	869,461
	2027	1,121,714		1,117,106
	2028	996,038		1,029,501
	2029	591,472		586,495
	2030	1,013,529		1,063,637
	2031 and Later	8,600,403		4,782,178

Variable rate	2026	—		45,235


	2029	1,313		1,312

	2031 and Later	217,137		71,924

Structured notes (1)	2026	76,130		102,743
	2027	100,489		94,777
	2028	188,238		176,009
	2029	184,671		178,956
	2030	307,098		443,825
	2031 and Later	2,504,510		2,156,638
Total Parent Co. unsecured borrowings (2)	15,902,742		12,719,797

Subsidiaries secured borrowings
Fixed rate	2026	89,923		166,414
	2027	645,309		630,114
	2028	170,595		746,556
	2029	276,495		191,068



Variable rate	2026	12,935		525,000
	2027	—		124,458
	2028	670,200		—


	2030 and Later	39,606		—


Total Subsidiaries secured borrowings	1,905,063		2,383,610
Subsidiaries unsecured borrowings
Fixed rate	2029	—		3,937
	2030	—		1,416
	2031 and Later	651,190		633,372

Variable rate	2026	—		100,000
	2027	—		53,759




Total Subsidiaries unsecured borrowings	651,190		792,484
Total long-term debt (3)	$	18,458,995		$	15,895,891
Fair value (4)	$	18,320,516		$	16,122,970
Weighted-average interest rate (5)	5.18	%	5.11	%
Interest rate range (5)	0.00% - 7.40%	0.00% - 7.50%

(1)Structured notes have various interest rate payment terms and are accounted for at fair value, with changes in fair value resulting from non-credit components recognized in Principal transactions revenues.

(2)Carrying values of certain borrowings, totaling $2.08 billion and $2.68 billion for August 31, 2026 and November 30, 2025, respectively, include cumulative hedging adjustments of $157.0 million and $142.8 million at August 31, 2026 and November 30, 2025, respectively, associated with interest rate swaps based on designation as fair value hedges.

(3)Carrying values include unamortized discounts and premiums, valuation adjustments and debt issuance costs. At August 31, 2026 and November 30, 2025, our borrowings under several credit facilities classified within Long-term debt amounted to $670.2 million and $803.2 million, respectively. Interest on these credit facilities is based on an adjusted Secured Overnight Financing Rate (“SOFR”) plus a spread or other adjusted rates, as defined in the various credit agreements. Certain of our long-term borrowings are callable by us prior to maturity reflected at their contractual maturity dates. Additionally, certain of our borrowings are under agreements containing covenants that, among other things, require us to maintain specified levels of tangible net worth and liquidity amounts, certain credit and rating levels and impose certain restrictions on future indebtedness of and require specified levels of regulated capital and cash reserves for certain of our subsidiaries. At August 31, 2026, we were in compliance with all covenants under theses credit agreements.

(4)The structured notes are classified as Level 2 or Level 3 in the fair value hierarchy. All of our long-term debt with exception of certain of the structured notes would be classified as Level 2 in the fair value hierarchy.

(5)Interest rates exclude structured notes.


36		Jefferies Financial Group Inc.

Notes to Consolidated Financial Statements

(Unaudited)

For the nine months ended August 31, 2026, long-term debt increased by $2.56 billion to $18.46 billion at August 31, 2026, primarily due to proceeds of $4.53 billion from the issuances of unsecured senior notes, $169.2 million from net issuances of structured notes, $32.6 million from valuation adjustments and $18.4 million from currency losses on foreign currency borrowings. These increases were partially offset by repayments of $1.55 billion on our unsecured senior notes, paydowns of $556.2 million in subsidiary debt and the reclassification of $51.9 million of Tessellis’ borrowings to liabilities held for sale (refer to Note 4, Assets and Liabilities Held for Sale for further information).

Note 16. Total Equity

Preferred Shares

At August 31, 2026 and November 30, 2025, 6.0 million of preferred shares, par value $1.00 per share, were authorized.

On April 27, 2023, we established Series B Non-Voting Convertible Preferred Shares with a par value of $1.00 per share (“Series B Preferred Stock”) and designated 70,000 shares as Series B Preferred Stock. The Series B Preferred Stock has a liquidation preference of $17,500 per share and rank senior to our voting common stock upon dissolution, liquidation or winding up of Jefferies Financial Group Inc. The Series B Preferred Stock participates in cash dividends and distributions alongside our voting common stock on an as-converted basis. Additionally, on April 27, 2023, we entered into an Exchange Agreement with Sumitomo Mitsui Banking Corporation’s (“SMBC”), which entitles SMBC to exchange shares of our voting common stock for shares of the Series B Preferred Stock at a rate of 500 shares of voting common stock for one share of Series B Preferred Stock and SMBC is required to pay $1.50 per share of voting common stock exchanged. During 2024, we issued 55,125 shares of Series B Preferred Stock to SMBC in exchange for approximately 27.6 million shares of voting common stock. These preferred shares were subsequently converted by SMBC into 27.6 million shares of non-voting common stock on June 30, 2026. As of August 31, 2026, there is no outstanding Series B Preferred Stock.

On September 19, 2025, our Board of Directors established Series B-1 Non-Voting Convertible Preferred Shares with a par value of $1.00 per share (“Series B-1 Preferred Stock”) and designated 17,500 shares as Series B-1 Preferred Stock with a liquidation preference of $500 per share. Additionally, on September 19, 2025, we entered into an amended and restated Exchange Agreement (the “Amended and Restated Exchange Agreement”) with SMBC, which entitles SMBC to exchange shares of our voting common stock for shares of the Series B-1 Preferred Stock at a rate of 500 shares of voting common stock for one share of Series B-1 Preferred Stock. The Amended and Restated Exchange Agreement is limited to 17,500 shares of Series B-1 Preferred Stock. Under the Amended and Restated Exchange Agreement, SMBC is permitted to increase its economic ownership in the Company to up to 20% on an as-converted and fully diluted basis, while continuing to own less than 5% of a voting interest in the Company. As of August 31, 2026, there is no outstanding Series B-1 Preferred Stock.

Common Shares

Our Board of Directors has authorized two classes of common stock (i) voting and (ii) non-voting. The rights of the holders of each class of common stock are identical with the exception of voting rights.


August 31, 2026
Common Shares	Par Value	Authorized Shares (1)	Outstanding Shares
Voting common shares	$1.00	552,264,500		189,078,660
Non-voting common shares	$1.00	47,735,500		40,579,081
Total		600,000,000		229,657,741

November 30, 2025
Common Shares	Par Value	Authorized Shares	Outstanding Shares
Voting common shares	$1.00	565,000,000		206,296,167
Non-voting common shares	$1.00	35,000,000		—
Total		600,000,000		206,296,167

(1)On March 26, 2026, shareholders approved an Amended and Restated Certificate of Incorporation, which authorized the issuance of 552,264,500 shares of voting common stock with a par value of $1.00 per share, and 47,735,500 shares of non-voting common stock with a par value of $1.00 per share.

On April 27, 2026, SMBC exchanged 9.2 million shares of Jefferies’ voting common stock for shares of non-voting common stock on a one-for-one basis. The rights of voting and non-voting common shares are identical, except with respect to voting rights.

On June 30, 2026, SMBC converted 55,125 preferred shares for 27.6 million non-voting common shares in accordance with the Exchange Agreement.

On July 10, 2026, SMBC also exchanged 3.8 million shares of Jefferies’ voting common shares for non-voting common shares on a one-for-one basis.

At August 31, 2026, SMBC owns 19.6% of our combined voting and non-voting common stock on a fully-diluted basis.

During the nine months ended August 31, 2026, we repurchased a total 8.3 million of our common shares for $441.2 million, or an average price of $53.25 per share, including 6.3 million of our common shares for $333.0 million in the open market under our share repurchase program, and 2.0 million of our common shares for $108.2 million in connection with net-share tax withholding under our equity compensation plan. In September 2026, the Board of Directors has authorized the repurchase of common stock up to $250.0 million under our share repurchase program for future repurchases.


August 2026 Form 10-Q		37

Notes to Consolidated Financial Statements

(Unaudited)

Earnings Per Common Share

We compute basic and diluted earnings per share of voting and non-voting common stock using the two-class method. Under the two-class method, distributed and undistributed earnings are allocated to common shares and participating securities based on their respective rights to receive dividends or participate in undistributed earnings.

Basic earnings per share is calculated using the weighted-average number of common shares outstanding. Diluted earnings per share is computed using the weighted-average number of shares and the effect of potentially dilutive securities outstanding during the period.

The numerators and denominators used to calculate basic and diluted earnings per common share are as follows:


$ in thousands, except per share amounts	Three Months Ended August 31, 2026	Nine Months Ended August 31, 2026
	Voting	Non-Voting	Voting	Non-Voting
Basic earnings per share:
Numerator
Allocation of distributed earnings (cash dividends paid)	$	80,481		$	16,232	$	251,819	$	19,930
Allocation of undistributed earnings	162,381		24,789		369,798	20,171
Net earnings attributable to common shareholders for basic earnings per share	$	242,862		$	41,021	$	621,617	$	40,101
Denominator
Weighted average common shares outstanding	191,147		30,293		199,269	11,353
Weighted average shares of restricted stock outstanding with future service required	(2,058)		—		(2,095)	—
Weighted average RSUs outstanding with no future service required	9,348		—		10,958	—
Number of shares used in per share computation	198,437		30,293		208,132	11,353
Basic earnings per share (1)	$	1.22		$	1.35	$	2.99	$	3.53

Diluted earnings per share:
Numerator
Allocation of total earnings for basic computation	$	242,862		$	41,021	$	621,617	$	40,101

Reallocation of total earnings as a result of conversion of preferred shares to non-voting common shares	—		7,110		—	59,843

Net earnings attributable to common shareholders for diluted earnings per share	$	242,862		$	48,131	$	621,617	$	99,944
Denominator
Number of shares used in basic computation	198,437		30,293		208,132	11,353
Weighted average effect of dilutive securities:

Add: Conversion of preferred shares to non-voting common shares	—		8,688		—	21,271
Add: Stock options and other share-based awards	5,210		—		4,900	—
Add: Senior executive compensation plan restricted stock unit awards	2,698		—		2,499	—
Number of shares used in per share computation	206,345		38,981		215,531	32,624
Diluted earnings per share (1)	$	1.18		$	1.23	$	2.88	$	3.06

(1)As a result of the timing of SMBC’s conversion of 55,125 shares of preferred stock for shares of Jefferies’ non-voting common stock and the exchange of 3.8 million shares of Jefferies’ voting common stock for non-voting common stock during the third quarter of 2026, basic and diluted earnings per share differ between the voting and non-voting common shares. Because non-voting shares were outstanding for only a portion of the three and nine month periods, their weighted average share count amplified the impact of distributed dividends, and accordingly, the non-voting common shares reflect higher earnings per share than the voting common shares, despite both classes having identical dividend rates.


38		Jefferies Financial Group Inc.

Notes to Consolidated Financial Statements

(Unaudited)




In thousands, except per share amounts	Three Months Ended August 31, 2025	Nine Months Ended August 31, 2025
Numerator for earnings per common share:
Net earnings	$	242,504		$	470,748
Less: Net losses attributable to noncontrolling interests	(10,041)		(24,692)

Allocation of earnings to participating securities (1)	(28,559)		(55,528)
Net earnings attributable to common shareholders for basic earnings per share	$	223,986		$	439,912


Net earnings attributable to common shareholders for diluted earnings per share	$	223,986		$	439,912








Denominator for earnings per common share:
Weighted average common shares outstanding	206,272		206,191
Weighted average shares of restricted stock outstanding with future service required	(2,224)		(2,259)
Weighted average RSUs outstanding with no future service required	11,245		11,045
Weighted average basic common shares	215,293		214,977
Stock options and other share-based awards	4,643		4,915
Senior executive compensation plan RSU awards	2,779		2,647

Weighted average diluted common shares (2)	222,715		222,539

Earnings per common share:


Basic	$	1.04		$	2.05


Diluted	$	1.01		$	1.98

(1)Represents dividends declared during the period on participating securities plus an allocation of undistributed earnings to participating securities. Net losses are not allocated to participating securities. Participating securities represent certain preferred stock, restricted stock and RSUs for which requisite service has not yet been rendered and amounted to weighted average shares of 27.6 million for both the three and nine months ended August 31, 2025. Dividends paid on participating securities were $11.0 million and $33.1 million for the three and nine months ended August 31, 2025, respectively. Undistributed earnings are allocated to participating securities based upon their right to share in earnings if all earnings for the period had been distributed.

(2)Certain securities have been excluded as they would be antidilutive. However, these securities could potentially dilute earnings per share in the future. Antidilutive shares at August 31, 2025 were 13.4% of the weighted average common shares outstanding for three and nine months ended August 31, 2025.


August 2026 Form 10-Q		39

Notes to Consolidated Financial Statements

(Unaudited)

Dividends


Nine Months Ended August 31, 2026
Declaration Date	Record Date	Payment Date	Per Common Share Amount
January 7, 2026	February 17, 2026	February 27, 2026	$0.40
March 25, 2026	May 18, 2026	May 29, 2026	$0.40



June 24, 2026	August 18, 2026	August 28, 2026	$0.40

Nine Months Ended August 31, 2025
Declaration Date	Record Date	Payment Date	Per Common Share Amount
January 8, 2025	February 14, 2025	February 27, 2025	$0.40
March 26, 2025	May 19, 2025	May 29, 2025	$0.40
June 25, 2025	August 18, 2025	August 29, 2025	$0.40

On September 28, 2026, the Board of Directors declared a dividend of $0.40 per common share to be paid on November 25, 2026 to common shareholders of record at November 16, 2026.

During the three months ended August 31, 2026, we paid no cash dividends related to the Series B Preferred Stock, as all outstanding shares were converted into non-voting common stock before the dividend record date. During the nine months ended August 31, 2026, we paid cash dividends of $22.1 million. During the three and nine months ended August 31, 2025, we paid cash dividends related to the Series B Preferred stock of $11.0 million and $33.1 million, respectively.

The payment of dividends is subject to the discretion of our Board of Directors and depends upon general business conditions and other factors that our Board of Directors may deem to be relevant.

Accumulated Other Comprehensive Income (Loss)


$ in thousands	August 31, 2026	November 30, 2025
Net unrealized losses on available-for-sale securities	$	298		$	(1,796)
Net currency translation adjustments and other	(143,336)		(145,280)
Net unrealized losses related to instrument-specific credit risk	(182,717)		(200,688)
Net cash flow hedges	263		—
Net minimum pension liability	(36,430)		(36,670)
Total accumulated other comprehensive loss, net of tax	$	(361,922)		$	(384,434)

Amounts reclassified out of accumulated other comprehensive income (loss) to net earnings:



	Three Months Ended August 31,	Nine Months Ended August 31,
$ in thousands	2026	2025	2026	2025
Net unrealized gains on instrument-specific credit risk at fair value (1)	$	3,135		$	2,304	$	8,925	$	9,962

Amortization of defined benefit pension plan actuarial losses (2)	(155)		(124)		(466)	(950)
Total reclassifications for the period, net of tax	$	2,980		$	2,180	$	8,459	$	9,012

(1)The amounts include income tax expense of $1.0 million and $2.8 million for the three and nine months ended August 31, 2026, respectively, compared with income tax expense of $0.8 million and $3.4 million for the three and nine months ended August 31, 2025, respectively, which were reclassified to Principal transactions revenues.

(2)The amount includes income tax benefit of $0.1 million for the nine months ended August 31, 2026, compared with an income tax benefit of $0.3 million for nine months ended August 31, 2025, which were reclassified to Compensation and benefits expenses.

Note 17. Income Taxes

At August 31, 2026 and November 30, 2025, our total gross unrecognized tax benefits were $240.7 million and $241.6 million, respectively.

At August 31, 2026 and November 30, 2025, we had interest accrued of $200.4 million and $177.9 million, respectively, included in Accrued expenses and other liabilities.

The total amount of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate was $189.7 million and $190.9 million (net of Federal benefit) at August 31, 2026 and November 30, 2025, respectively.

We recognize interest and penalties, if any, related to unrecognized tax benefits in income tax expense.

We are currently under examination by a number of taxing jurisdictions. Though we do not expect that resolution of these examinations will have a material effect on our consolidated financial position, they may have a material impact on our consolidated results of operations for the period in which resolution occurs.

Earliest tax years that remain subject to examination in the major tax jurisdictions in which we operate:


Jurisdiction	Tax Year
United States	2022
New York State	2003
New York City	2006
United Kingdom	2023
Germany	2020
Hong Kong	2020


	Three Months Ended August 31,	Nine Months Ended August 31,
$ in millions	2026	2025	2026	2025

Income tax expense	$	62.8		$	89.3		$	181.2	$	147.0
Effective tax rate	17.9	%	26.9	%	20.6	%	23.8	%

Note 18. Commitments, Contingencies and Guarantees

Commitments


	Expected Maturity Date (Fiscal Years)
$ in millions	2026	2027	2028 and 2029	2030 and 2031	2032 and Later	Maximum Payout
Equity commitments (1)	$	4.0		$	105.8		$	88.9		$	0.6	$	88.6	$	287.9
Loan commitments (1)	0.6		193.4		101.7		105.7		10.6		412.0
Loan purchase commitments (2)	2,768.1		—		—		—		—		2,768.1


Forward starting reverse repos (3)	2,381.1		—		—		—		—		2,381.1
Forward starting repos (3)	1,037.8		—		—		—		—		1,037.8
Other unfunded commitments (1)	242.7		941.1		3,034.1		41.4		—		4,259.3
Total commitments	$	6,434.3		$	1,240.3		$	3,224.7		$	147.7	$	99.2	$	11,146.2

(1)Equity, loan and other unfunded commitments are presented by contractual maturity date. The amounts, however, are available on demand.

(2)Loan purchase commitments consist of unfunded commitments to acquire secondary market loans. For the population of loans to be acquired under the loan purchase commitments, at August 31, 2026, Jefferies had also entered into back-to-back committed sale contracts aggregating to $2.59 billion.


40		Jefferies Financial Group Inc.

Notes to Consolidated Financial Statements

(Unaudited)

(3)At August 31, 2026, all of the of the forward starting securities purchased under agreements to resell and all of the forward starting securities sold under agreements to repurchase settled within three business days.

Equity Commitments. Includes commitments to invest in our joint venture, Jefferies Finance, asset management funds and in Jefferies Capital Partners, LLC, a manager of private equity funds, which consists of a team led by our President and a director. At August 31, 2026, our outstanding commitments relating to Jefferies Capital Partners, LLC and its private equity funds were $9.7 million.

Additionally, at August 31, 2026, we had other outstanding equity commitments to invest up to $163.8 million with strategic affiliates and $114.4 million to various other investments.

Loan Commitments. From time to time, we make commitments to extend credit to clients and to strategic affiliates. These commitments and any related drawdowns of these facilities typically have fixed maturity dates and are contingent on certain representations, warranties and contractual conditions applicable to the borrower. At August 31, 2026, we had outstanding loan commitments of $220.3 million to a client and $3.2 million to strategic affiliates.

Loan commitments outstanding at August 31, 2026 also include our portion of the outstanding secured revolving credit facility provided to Jefferies Finance, to support loan underwriting by Jefferies Finance.

Underwriting Commitments. In connection with investment banking activities, we may from time to time provide underwriting commitments to our clients in connection with capital raising transactions.

Forward Starting Reverse Repos and Repos. We enter into commitments to take possession of securities with agreements to resell on a forward starting basis and to sell securities with agreements to repurchase on a forward starting basis that are primarily secured by U.S. government and agency securities.

Other Unfunded Commitments. Other unfunded commitments include obligations in the form of revolving notes, warehouse financings and debt securities to provide financing to asset-backed and CLO vehicles. Upon advancing funds, drawn amounts are collateralized by the assets of an entity. Other unfunded commitments also include written put options to certain bondholders of an equity method investee.

Guarantees

Derivative Contracts. As a dealer, we make markets and trade in a variety of derivative instruments. Certain derivative contracts that we have entered into meet the accounting definition of a guarantee under U.S. GAAP, including credit default swaps, written foreign currency options and written equity put options. On certain of these contracts, such as written interest rate caps and foreign currency options, the maximum payout cannot be quantified since the increase in interest or foreign exchange rates are not contractually limited by the terms of the contract. As such, we have disclosed notional values as a measure of our maximum potential payout under these contracts.

Notional amounts associated with our derivative contracts meeting the definition of a guarantee under U.S. GAAP at August 31, 2026:


	Expected Maturity Date (Fiscal Years)
$ in millions	2026	2027	2028 and 2029	2030 and 2031		Notional/ Maximum Payout
Guarantee Type:
Derivative contracts—non-credit related	$	5,274.8		$	17,193.7		$	23,331.3	$	3,924.8	$	49,724.6

Total derivative contracts	$	5,274.8		$	17,193.7		$	23,331.3	$	3,924.8	$	49,724.6

The derivative contracts deemed to meet the definition of a guarantee under U.S. GAAP are before consideration of hedging transactions and only reflect a partial or “one-sided” component of any risk exposure. Written equity options and written credit default swaps are often executed in a strategy that is in tandem with long cash instruments (e.g., equity and debt securities). We substantially mitigate our exposure to market risk on these contracts through hedges, such as other derivative contracts and/or cash instruments, and we manage the risk associated with these contracts in the context of our overall risk management framework. We believe notional amounts overstate our expected payout and that fair value of these contracts is a more relevant measure of our obligations. At August 31, 2026, the fair value of derivative contracts meeting the definition of a guarantee, gross of any counterparty and cash collateral netting, is a liability of approximately $759.2 million.

HomeFed. For real estate development projects, we are generally required to obtain infrastructure improvement bonds at the beginning of construction work and warranty bonds upon completion of such improvements. These bonds are issued by surety companies to guarantee a municipality satisfactory completion of a project. As the planned area is developed and the municipality accepts the improvements, the bonds are released. At August 31, 2026, the aggregate amount of infrastructure improvement bonds outstanding was $68.3 million.

Standby Letters of Credit. At August 31, 2026, we provided guarantees to certain counterparties in the form of standby letters of credit in the amount of $455.6 million, with a weighted average maturity of less than one year. Standby letters of credit commit us to make payment to the beneficiary if the guaranteed party fails to fulfill its obligation under a contractual arrangement with that beneficiary. Since commitments associated with these collateral instruments may expire unused, the amount shown does not necessarily reflect the actual future cash funding requirement.

Other Guarantees. We are members of various exchanges and clearing houses. In the normal course of business, we provide guarantees to securities clearing houses and exchanges. These guarantees generally are required under the standard membership agreements, such that members are required to guarantee the performance of other members. Additionally, if a member becomes unable to satisfy its obligations to the clearing house, other members would be required to meet these shortfalls. To mitigate these performance risks, the exchanges and clearing houses often require members to post collateral. Our obligations under such guarantees could exceed the collateral amounts posted. Our maximum potential liability under these arrangements cannot be quantified; however, the potential for us to be required to make payments under such guarantees is deemed remote. Accordingly, no liability has been recognized for these arrangements. Additionally, we provide certain


August 2026 Form 10-Q		41

Notes to Consolidated Financial Statements

(Unaudited)

indemnifications in connection with third-party clearing and execution arrangements whereby a third-party may clear and settle transactions on behalf of our clients. These indemnifications generally have standard contractual terms and are entered into in the ordinary course of business. Our obligations in respect of such transactions are secured by the assets in our client’s account, as well as any proceeds received from the transactions cleared and settled on behalf of our client. However, we believe that it is unlikely we would have to make any material payments under these arrangements and no material liabilities related to these indemnifications have been recognized.

Note 19. Regulatory Requirements

Net Capital

Jefferies LLC is a broker-dealer registered with the SEC and a member firm of the Financial Industry Regulatory Authority (“FINRA”) and is subject to the SEC Uniform Net Capital Rule (“Rule 15c3-1”), which requires the maintenance of minimum net capital, and has elected to calculate minimum capital requirements using the alternative method permitted by Rule 15c3-1 in calculating net capital. Jefferies LLC is also an Introducing Broker subject to Regulation 1.17 of the Commodity Futures Trading Commission (“CFTC”) under the Commodity Exchange Act, which sets forth minimum financial requirements. In June 2026, Jefferies LLC changed its registration status with the CFTC and the NFA from a futures commission merchant to an Introducing Broker. The minimum net capital requirement in determining excess net capital for a dually registered U.S. broker-dealer and CFTC Introducing Broker is equal to the greater of the requirement under Rule 15c3-1 or Regulation 1.17. FINRA is the designated examining authority for Jefferies LLC and the National Futures Association (“NFA”) is the designated self-regulatory organization (“DSRO”) for Jefferies LLC as an Introducing Broker. In June 2026, Jefferies LLC changed its registration status with the CFTC and the NFA from an futures commission merchant to an Introducing Broker.

Jefferies Financial Services, Inc. (“JFSI”) is registered with the SEC as a Security-Based Swap Dealer (“SBS Dealer”) and an OTC Derivatives Dealer (“OTCDD”) subject to the SEC’s SBS dealer regulatory rules and the SEC’s net capital requirements. JFSI is also registered as a swap dealer with the CFTC and is subject to the CFTC’s regulatory capital requirements pursuant to the minimum financial requirements for swap dealers. Additionally, as a registered member firm, JFSI is subject to the net capital requirements of the NFA. The SEC is the designated examining authority for JFSI in its capacity as an SBS Dealer and OTCDD, while the NFA is the DSRO for JFSI, as a CFTC registered swap dealer.

Certain non-U.S. subsidiaries are subject to capital adequacy requirements as prescribed by the regulatory authorities in their respective jurisdictions. This includes Jefferies International Limited (“JIL”), which is subject to the regulatory supervision and requirements of the Financial Conduct Authority in the U.K. and Jefferies GmbH, which is subject to the regulatory supervision of the German Federal Financial Supervisory Authority.

At August 31, 2026, net capital and excess net capital were as follows:


$ in thousands	Net Capital	Excess Net Capital
Jefferies LLC	$	3,713,973		$	3,485,328
JFSI - SEC	371,762		326,827
JFSI - CFTC	371,762		333,994
JIL (1)	2,331,178		1,363,033
Jefferies GmbH (1)	394,252		290,749

(1)Represents an equivalent capital requirement in the respective jurisdiction.

At August 31, 2026, Jefferies LLC, JFSI, JIL and Jefferies GmbH are in compliance with their applicable requirements.

The regulatory capital requirements referred to above may restrict our ability to withdraw capital from our regulated subsidiaries.

Customer Protection and Segregation Requirement

As a registered broker dealer that clears and carries customer accounts, Jefferies LLC is subject to the customer protection provisions under SEC Rule 15c3-3 and is required to compute a reserve formula requirement for customer accounts and deposit cash or qualified securities into a special reserve bank account for the exclusive benefit of customers. At August 31, 2026, Jefferies LLC had $225.5 million in cash and qualified U.S. Government securities on deposit in special reserve bank accounts for the exclusive benefit of customers.

As a registered broker dealer that clears and carries proprietary accounts of brokers or dealers (commonly referred to as “PAB”), Jefferies LLC is also required to compute a reserve requirement for PABs pursuant to SEC Rule 15c3-3. At August 31, 2026, Jefferies LLC had $528.2 million in cash and qualified U.S. Government securities in special reserve bank accounts for the exclusive benefit of PABs.

The qualified securities meeting the SEC Rule 15c3-3 customer and PAB requirements are included in Cash and securities segregated and Securities purchased under agreements to resell.

JFSI is exempt from the CFTC and SEC segregation rules.

Note 20. Segment Reporting

We operate in two reportable business segments: (1) Investment Banking and Capital Markets and (2) Asset Management. The Investment Banking and Capital Markets reportable business segment includes our capital markets activities and investment banking business, which is composed of financial advisory and underwriting activities. The Investment Banking and Capital Markets reportable business segment provides the sales, trading, origination and advisory effort for various fixed income, equity and advisory products and services. The Asset Management reportable business segment provides investment management services to investors globally and invests capital in hedge funds, separately managed accounts and third-party asset managers.

Our reportable business segment information is prepared using the following methodologies:

•Net revenues, expenses and income (loss) from equity method investments directly associated with each reportable business segment are included in determining earnings (losses) from continuing operations before income taxes.


42		Jefferies Financial Group Inc.

Notes to Consolidated Financial Statements

(Unaudited)

•Net revenues and expenses not directly associated with specific reportable business segments are allocated based on the most relevant measures applicable, including each reportable business segment’s net revenues, headcount and other factors.

•Reportable business segment assets include an allocation of indirect corporate assets that have been fully allocated to our reportable business segments, generally based on each reportable business segment’s capital utilization.

Net revenues presented for our Investment Banking and Capital Markets reportable segment include allocations of interest income and interest expense as we assess the profitability of these businesses inclusive of the net interest revenue or expense associated with the respective activities, including the net interest cost of allocated long-term debt, which is a function of the mix of each business's associated assets and liabilities and the related funding costs.

Our Chief Executive Officer and President serve collectively as our chief operating decision maker (“CODM”). In this capacity, the CODM evaluates the performance of each business segment and allocates resources based on a variety of strategic and financial considerations. These considerations include measures of segment results and profitability, including net revenues and earnings before income taxes, which are calculated in accordance with U.S. GAAP and align with the amounts reported in our Consolidated Statements of Earnings. The CODM regularly reviews results and profitability measures to monitor budget versus actual results. Furthermore, the ongoing monitoring of budget versus actual results is used to assess the performance of each reportable business segment and significantly influences decisions about allocating resources.

Summary of our results by reportable business segment:



	Three Months Ended August 31,	Nine Months Ended August 31,
$ in millions	2026	2025	2026	2025
Investment Banking and Capital Markets:
Revenues
Non-interest revenues	$	2,184		$	1,840	$	6,006	$	4,658
Interest income	880		805		2,187	2,450
Total revenues (1)	3,064		2,645		8,193	7,108
Interest expense	931		787		2,258	2,380
Net revenues (1)	2,133		1,858		5,935	4,728
Non-interest expenses
Compensation and benefits	1,135		1,024		3,264	2,579
Brokerage and clearing fees	131		110		386	330
Technology and communications	159		141		447	401
Business development	80		72		235	202
Other segment items (3) (4)	201		175		608	524
Total non-interest expenses	1,706		1,522		4,940	4,036
Earnings before income taxes	$	427		$	336	$	995	$	692



	Three Months Ended August 31,	Nine Months Ended August 31,
$ in millions	2026	2025	2026	2025
Asset Management:
Revenues
Non-interest revenues	$	121		$	209	$	588	$	623
Interest income	43		42		112	120
Total revenues (2)	164		251		700	743
Interest expense	78		74		206	220
Net revenues (2)	86		177		494	523
Non-interest expenses
Compensation and benefits	58		59		202	207
Brokerage and clearing fees	8		11		35	30
Technology and communications	15		16		49	42
Business development	3		7		13	29
Cost of sales	23		34		84	119
Other segment items (3) (5)	58		66		244	194
Total non-interest expenses	165		193		627	621
Losses before income taxes (6) (7)	$	(79)		$	(16)	$	(133)	$	(98)



Total of Reportable Business Segments:
Revenues
Non-interest revenues	$	2,305		$	2,049	$	6,594	$	5,281
Interest income	923		847		2,299	2,570
Total revenues	3,228		2,896		8,893	7,851
Interest expense	1,009		861		2,464	2,600
Net revenues	2,219		2,035		6,429	5,251
Non-interest expenses
Compensation and benefits	1,193		1,083		3,466	2,786
Brokerage and clearing fees	139		121		421	360
Technology and communications	174		157		496	443
Business development	83		79		248	231
Cost of sales	23		34		84	119
Other segment items (3)	259		241		852	718
Total non-interest expenses	1,871		1,715		5,567	4,657
Earnings before income taxes	$	348		$	320	$	862	$	594

(1)Includes total net earnings related to equity method investees of $43 million, $35 million, $81 million and $46 million, respectively.

(2)Includes total net earnings related to equity method investees of $10 million $4 million, $18 million and $9 million, respectively.

(3)Primarily consists of Underwriting costs, Occupancy and equipment rental, Professional services, and Depreciation and amortization.

(4)Includes Depreciation and amortization of $35 million, $30 million, $102 million and $69 million, respectively.

(5)Includes Depreciation and amortization of $9 million, $23 million, $45 million and $67 million, respectively.

(6)Consists of (losses) earnings before income taxes of $(49) million, $125 million, $(6) million and $142 million, respectively, related to asset management fees and investment return and earnings (losses) before taxes of $(31) million, $(141) million, $(128) million and $(240) million, respectively, related to Other investments.

(7)Includes losses before income taxes related to non-controlling interests of $3 million, $10 million, $24 million and $25 million, respectively.


August 2026 Form 10-Q		43

Notes to Consolidated Financial Statements

(Unaudited)

Reconciliation of Reportable Segment Information:



	Three Months Ended August 31,	Nine Months Ended August 31,
$ in millions	2026	2025	2026	2025
Total revenues for reportable segments	$	2,219		$	2,035	$	6,429	$	5,251
Other revenues not allocated to segments	3		12		17	24
Total consolidated net revenues	$	2,222		$	2,047	$	6,446	$	5,275

Total earnings for reportable segments	$	348		$	320	$	862	$	594
Earnings not allocated to segments	3		12		17	24
Total consolidated earnings	$	351		$	332	$	879	$	618

Assets by reportable business segment:


$ in millions	August 31, 2026	November 30, 2025
Investment Banking and Capital Markets	$	76,188		$	70,335
Asset Management	5,114		5,677
Total assets	$	81,302		$	76,012

Net Revenues by Geographic Region

Net revenues for the Investment Banking and Capital Markets reportable business segment are recorded in the geographic region in which the position was risk-managed or, in the case of investment banking, in which the senior coverage banker is located. For the Asset Management reportable business segment, net revenues are allocated according to the location of the investment advisor or the location of the invested capital.



	Three Months Ended August 31,	Nine Months Ended August 31,
$ in millions	2026	2025	2026	2025
Americas (1)	$	1,638		$	1,448	$	4,573	$	3,545
Europe and the Middle East (2)	399		454		1,313	1,313
Asia-Pacific	185		145		560	417
Net revenues	$	2,222		$	2,047	$	6,446	$	5,275

(1)Primarily relates to U.S. results.

(2)Primarily relates to U.K. results.

Note 21. Related Party Transactions

Officers, Directors and Employees

The following sets forth information regarding related party transactions with our officers, directors and employees:

•At August 31, 2026 and November 30, 2025, we had $14.1 million and $19.2 million, respectively, of loans, net of allowance, outstanding to certain of our officers and employees (none of whom are executive officers or directors) that are included in Other assets.

•Receivables from and payables to customers include balances arising from officers’, directors’ and employees’ individual security transactions. These transactions are subject to the same regulations as all customer transactions and are provided on substantially the same terms.

•Two of our directors and certain of our officers have total investments in entities managed by us of approximately $8.9 million and $10.4 million at August 31, 2026 and November 30, 2025, respectively.

Sumitomo Mitsui Banking Corporation (“SMBC”)

We have a strategic alliance with Sumitomo Mitsui Financial Group, Inc., SMBC and SMBC Nikko Securities Inc. (together referred to as “SMBC Group”) to collaborate on corporate and investment banking business opportunities as well as opportunities related to equity sales, trading and research.

The following tables summarize balances with SMBC as reported in our Consolidated Statements of Financial Condition and Consolidated Statements of Earnings. In addition, the synergies and value creation resulting from our strategic alliance with SMBC generate additive benefits for us, which are not necessarily reflected by the activity presented in the following tables.




$ in thousands	August 31, 2026	November 30, 2025
Assets
Cash and cash equivalents	$	351,647		$	444,506
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations	26,273		27,975
Financial instruments owned, at fair value	15,364		395

Securities borrowed	5,648		3,872
Securities purchased under agreements to resell	158,792		357,261

Receivables:
Brokers, dealers and clearing organizations	27,757		7,752
Customers	109		206
Fees, interest and other	5,984		5,438
Other assets	18,471		6,203
Total assets	$	610,045		$	853,608

Liabilities

Financial instruments sold, not yet purchased, at fair value	$	1,890		$	6,763
Securities loaned	403,671		620
Securities sold under agreements to repurchase	514,781		638,581
Other secured financings	19,700		—
Payables:
Brokers, dealers and clearing organizations	4,301		470


Accrued expenses and other liabilities	40,614		9,537
Long-term debt (1)	—		—
Total liabilities	$	984,957		$	655,971

(1)We have a credit facility with SMBC of $700 million with an interest rate based on adjusted SOFR plus a spread.


	Three Months Ended August 31,	Nine Months Ended August 31,
$ in thousands	2026	2025	2026	2025
Revenues
Investment banking	$	3,390		$	3,114	$	11,652	$	11,912
Principal transactions (1)	19,778		(13,306)		68,089	(14,301)
Commissions and other fees	822		754		2,223	2,155

Interest	4,135		7,222		13,543	21,956

Total revenues	28,125		(2,216)		95,507	21,722
Interest expense	10,448		10,811		26,688	32,527
Net revenues	$	17,677		$	(13,027)	$	68,819	$	(10,805)
Non-interest expenses





Business development	$	19,362		$	11,108	$	47,259	$	22,913



Other expenses	56		1		232	6
Total non-interest expenses	$	19,418		$	11,109	$	47,491	$	22,919

(1)Primarily represents net gains (losses) on interest rate derivatives executed with SMBC.


44		Jefferies Financial Group Inc.

Notes to Consolidated Financial Statements

(Unaudited)

In addition, we are party to an arrangement with SMBC in which we provide various administrative services to SMBC. For the three and nine months ended August 31, 2026, we charged SMBC an aggregate $5.7 million and $11.9 million, respectively, for administrative services.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

This report may contain or incorporate by reference certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and/or the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about our future and statements that are not historical or current facts. These forward-looking statements are often preceded by the words “should,” “expect,” “believe,” “intend,” “may,” “will,” “would,” “could” 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 also include statements pertaining to our strategies for future development of our business 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 that could cause actual results to differ, perhaps materially, from those in our forward-looking statements is contained in this report and other documents we file. You should read and interpret any forward-looking statement together with these documents, including the following:

•the description of our business and risk factors contained in our Annual Report on Form 10-K for the year ended November 30, 2025 and filed with the Securities and Exchange Commission (“SEC”) on January 28, 2026;

•the discussion of our analysis of financial condition and results of operations contained in this report under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations” herein;

•the discussion of our risk management policies, procedures and methodologies contained in this report under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Risk Management” herein;

•the consolidated financial statements and notes to the consolidated financial statements contained in this report; and

•cautionary statements we make in our public documents, reports and announcements.

Any forward looking statement speaks only as of the date on which that statement is made. We undertake no obligation to update any forward looking statement to reflect events or circumstances that occur after the date on which the statement is made, except as required by applicable law.

Our business, by its nature, does not produce predictable or necessarily recurring earnings. Our results in any given period can be materially affected by conditions in global financial markets, economic conditions generally and our own activities and positions.

Consolidated Results of Operations

Overview


	Three Months Ended August 31,
$ in thousands	2026	2025	% Change
Net revenues	$	2,221,934		$	2,047,432		8.5	%
Non-interest expenses	1,870,896		1,715,617		9.1	%
Earnings before income taxes	351,038		331,815		5.8	%
Income tax expense	62,785		89,311		(29.7)	%
Net earnings	288,253		242,504		18.9	%

Net losses attributable to noncontrolling interests	(2,740)		(10,041)		(72.7)	%

Preferred stock dividends	7,110		28,559		(75.1)	%
Net earnings attributable to common shareholders	283,883		223,986		26.7	%
Effective tax rate	17.9	%	26.9	%



	Nine Months Ended August 31,
$ in thousands	2026	2025	% Change
Net revenues	$	6,445,515		$	5,274,898		22.2	%
Non-interest expenses	5,566,712		4,657,117		19.5	%
Earnings before income taxes	878,803		617,781		42.3	%
Income tax expense	181,226		147,033		23.3	%
Net earnings	697,577		470,748		48.2	%

Net losses attributable to noncontrolling interests	(24,038)		(24,692)		(2.6)	%

Preferred stock dividends	59,897		55,528		7.9	%
Net earnings attributable to common shareholders	661,718		439,912		50.4	%
Effective tax rate	20.6	%	23.8	%

Post-Closing Adjustments to Previously Reported Results

Our results of operations for the three and nine months ended August 31, 2026, as reported in this Quarterly Report on Form 10-Q, differ from the results of operations previously presented in our Current Report on Form 8-K dated September 28, 2026. The differences reflect post-closing adjustments related to the recognition of excess tax benefits associated with share-based awards, which increased our deferred tax asset and decreased our income tax expense.

The net impact of these adjustments was an increase in net earnings attributable to common shareholders of $23.3 million and $22.1 million for the three and nine months ended August 31, 2026, respectively, compared with the amounts previously disclosed. These adjustments also increased total assets by $24.2 million, from $81.28 billion to $81.30 billion, and increased total shareholders’ equity by $24.2 million, from $10.69 billion to $10.71 billion. Income tax expense decreased by $24.2 million for both the three and nine months ended August 31, 2026.

Executive Summary

Three Months Ended August 31, 2026 Versus August 31, 2025

Net earnings attributable to common shareholders were $283.9 million and $224.0 million for the three months ended August 31, 2026 and 2025, respectively.

Our effective tax rate was 17.9%, and 26.9% for the three months ended August 31, 2026 and 2025, respectively.


August 2026 Form 10-Q		45

Nine Months Ended August 31, 2026 Versus August 31, 2025

Net earnings attributable to common shareholders were $661.7 million and $439.9 million for the nine months ended August 31, 2026 and 2025, respectively.

Our effective tax rate was 20.6%, and 23.8% for the nine months ended August 31, 2026 and 2025, respectively.

The remainder of our “Consolidated Results of Operations” is presented on a detailed product and expense basis. Our “Revenues by Source” is reported along the following business lines: Investment Banking, Equities, Fixed Income and Asset Management.

At August 31, 2026, we had 7,065 employees globally across all of our consolidated subsidiaries within our Investment Banking and Capital Markets and Asset Management reportable segments, compared to 7,787 at November 30, 2025. Included within our global headcount are 677 employees at August 31, 2026 and 1,797 employees at November 30, 2025 of our Stratos, Tessellis, HomeFed and M Science subsidiaries.

Revenues by Source

We present our results as two reportable business segments: Investment Banking and Capital Markets and Asset Management. Additionally, corporate activities are fully allocated to each of these reportable business segments.

Net revenues presented for our Investment Banking and Capital Markets reportable segment include allocations of interest income and interest expense as we assess the profitability of these businesses inclusive of these costs, including the net interest cost of allocated short- and long-term debt, which is a function of the mix of each business’s associated assets and liabilities and the related funding costs.

Debt valuation adjustments on derivative contracts, gains and losses on investments held in deferred compensation plans, foreign currency transaction gains or losses or certain other corporate income items are not considered by management in assessing the financial performance of our operating businesses and are, therefore, not reported as part of our business segment results.


	Three Months Ended August 31,
	2026	2025
$ in thousands	Amount	% of Net Revenues	Amount	% of Net Revenues	% Change
Advisory	$	817,823		36.8	%	$	655,578	32.0	%	24.7	%
Equity underwriting	305,549		13.8		181,205		8.9	68.6
Debt underwriting	177,072		8.0		249,525		12.2	(29.0)

Other investment banking	30,979		1.4		49,017		2.4	(36.8)
Total Investment Banking	1,331,423		60.0		1,135,325		55.5	17.3
Equities	626,154		28.2		486,695		23.8	28.7
Fixed income	176,024		7.9		236,687		11.6	(25.6)
Total Capital Markets	802,178		36.1		723,382		35.4	10.9
Total Investment Banking and Capital Markets (1)	2,133,601		96.1		1,858,707		90.9	14.8
Asset management fees and revenues	13,285		0.6		15,916		0.8	(16.5)
Investment return	20,949		0.9		68,026		3.3	(69.2)
Allocated net interest (2)	(21,438)		(1.0)		(18,550)		(0.9)	15.6
Other investments, inclusive of net interest	72,839		3.3		111,490		5.4	(34.7)
Total Asset Management	85,635		3.8		176,882		8.6	(51.6)
Other	2,698		0.1		11,843		0.5	(77.2)
Net revenues	$	2,221,934		100.0	%	$	2,047,432	100.0	%	8.5	%


	Nine Months Ended August 31,
	2026	2025
$ in thousands	Amount	% of Net Revenues	Amount	% of Net Revenues	% Change
Advisory	$	2,019,069		31.3	%	$	1,511,218	28.6	%	33.6	%
Equity underwriting	982,209		15.2		432,091		8.2	127.3
Debt underwriting	519,116		8.1		654,250		12.4	(20.7)

Other investment banking	35,142		0.5		4,765		0.1	637.5
Total Investment Banking	3,555,536		55.1		2,602,324		49.3	36.6
Equities	1,785,393		27.7		1,421,997		27.0	25.6
Fixed income	594,833		9.2		703,824		13.3	(15.5)
Total Capital Markets	2,380,226		36.9		2,125,821		40.3	12.0
Total Investment Banking and Capital Markets (1)	5,935,762		92.0		4,728,145		89.6	25.5
Asset management fees and revenues	98,364		1.5		125,312		2.4	(21.5)
Investment return	140,978		2.2		112,796		2.1	25.0
Allocated net interest (2)	(66,611)		(1.0)		(54,915)		(1.0)	21.3
Other investments, inclusive of net interest	320,884		5.0		340,025		6.4	(5.6)
Total Asset Management	493,615		7.7		523,218		9.9	(5.7)
Other	16,138		0.3		23,535		0.5	(31.4)
Net revenues	$	6,445,515		100.0	%	$	5,274,898	100.0	%	22.2	%

(1)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.

(2)Allocated net interest represents an allocation to Asset Management 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 make clearer actual Investment return. We believe that aggregating Investment return and Allocated net interest would obscure the Investment return by including an amount that is unique to our credit spreads, debt maturity profile, capital structure, liquidity risks and allocation methods.

Investment Banking Revenues

Investment banking is composed of revenues from:

•advisory services with respect to mergers and acquisitions, debt financing, restructurings and private capital transactions;

•underwriting services, which include debt underwriting, syndication and placement services related to investment grade debt, high yield bonds, leveraged loans, emerging market debt, global structured notes, municipal debt and mortgage-backed and asset-backed securities; and equity underwriting and placement services related to equity offerings, preferred stock and equity-linked securities;

•our 50% share of net earnings from our Jefferies Finance joint venture;

•our 45% share of net earnings from Berkadia, our commercial real estate joint venture, which includes commercial mortgage origination and servicing as well as investment sales;

•securities and loans received or acquired in connection with our investment banking activities; and

•certain revenue-sharing agreements with SMBC primarily associated with investment banking transactions.


46		Jefferies Financial Group Inc.




	Deals Completed
	Three Months Ended August 31,	Nine Months Ended August 31,
	2026	2025	2026	2025


Advisory transactions	115		104		332	280
Public and private equity and convertible offerings	71		52		201	132
Public and private debt financings	361		384		872	865




	Aggregate Value
	Three Months Ended August 31,	Nine Months Ended August 31,
$ in billions	2026	2025	2026	2025


Advisory transactions	$	138.8		$	128.9	$	407.1	$	327.9
Public and private equity and convertible offerings	35.3		25.8		191.2	69.8
Public and private debt financings	137.8		154.2		343.8	401.7

Three Months Ended August 31, 2026 Versus August 31, 2025

Investment banking net revenues were $1.33 billion, up 17.3% compared to $1.14 billion for the prior year quarter.

Advisory had its best quarter on record, with net revenues of $817.8 million, up 24.7% compared to $655.6 million for the prior year quarter, driven by market share gains across multiple sectors.

Total underwriting net revenues were $482.6 million, up 12.0% from $430.7 million for the prior year quarter, primarily driven by market share gains and increased activity in Equity underwriting across most sectors. Debt underwriting decreased compared to the prior year quarter, primarily due to lower deal values.

Other investment banking net revenues were $31.0 million, compared to net revenues of $49.0 million for the prior year quarter, with lower mark-to-market net gains on certain investment positions for the current quarter. Performance from our Jefferies Finance joint venture improved, while performance from our Berkadia joint venture remained flat from the prior year quarter.

Our investment banking backlog remains strong, although the extent and timing of its realization is always subject to change. Backlog snapshots are subject to limitations as the time frame for the realization of revenues from these expected transactions varies and is influenced by factors we do not control. Transactions not included in the estimate may occur, and expected transactions may be modified or cancelled.

Nine Months Ended August 31, 2026 Versus August 31, 2025

Investment banking net revenues were $3.56 billion, up 36.6% compared to $2.60 billion for the prior year period.

Advisory net revenues were a record $2.02 billion and increased 33.6% compared to $1.51 billion for the prior year period, driven by market share gains and increased overall market opportunity.

Total underwriting net revenues were $1.50 billion, up 38.2% compared to $1.09 billion for the prior year period, primarily driven by market share gains and increased activity in Equity underwriting across most sectors. Debt underwriting decreased compared to the prior year period, primarily due to lower origination activity in our securitized products business.

Other investment banking net revenues were $35.1 million, compared to net revenues of $4.8 million for the prior year period, largely due to improved performance from our Jefferies Finance joint venture.

Equities Net Revenues

Equities is composed of net revenues from:

•services provided to our clients for which we earn commissions or spread revenue by executing, settling and clearing transactions for clients;

•advisory services offered to clients;

•financing, securities lending and other prime brokerage services offered to clients, including capital introductions and outsourced trading;

•corporate equity derivative transactions; and

•wealth management services.

Three Months Ended August 31, 2026 Versus August 31, 2025

Equities net revenues were $626.2 million, up 28.7% from $486.7 million for the prior year quarter, marking our strongest quarter on record, driven by market share gains and higher global trading volumes, with stronger results across most of our businesses, particularly within cash and global electronic trading, equity options and corporate derivatives. Additionally, our prime services business continues to expand.

Nine Months Ended August 31, 2026 Versus August 31, 2025

Equities net revenues were a record $1.79 billion, up 25.6% compared to $1.42 billion for the prior year period, marking our strongest nine months on record, driven by market share gains and higher trading volumes, with stronger results across most of our businesses, particularly within cash and global electronic trading, equity options, convertibles, and corporate derivatives. Additionally, our prime services business continues to expand.

Fixed Income Net Revenues

Fixed income is composed of net revenues from:

•executing transactions for clients and making markets in securitized products, investment grade, high-yield, distressed, emerging markets, municipal, sovereign and emerging markets securities and loans;

•customized products and corporate hedging and foreign currency solutions through derivative products; and

•financing and other structuring services.

Three Months Ended August 31, 2026 Versus August 31, 2025

Fixed income net revenues were $176.0 million, down 25.6% compared to $236.7 million for the prior year quarter. Although both current and prior year quarters were impacted by significant U.S. policy and geopolitical events, market conditions were less favorable in the current quarter, which impacted results across several businesses.


August 2026 Form 10-Q		47

Nine Months Ended August 31, 2026 Versus August 31, 2025

Fixed income net revenues were $594.8 million, down 15.5% compared to $703.8 million for the prior year period, as credit markets remained challenging in the current year for the products and services where we are most active. Strong performance in our municipal securities, distressed and emerging markets businesses was more than offset by lower results from several other businesses, including our securitized products business, which includes a gross mark-to-market loss of $64.7 million associated with Market Financial Solutions during the nine months ended August 31, 2026.

Asset Management

We operate a diversified alternative asset management platform that provides institutional clients with a broad range of investment strategies, both directly and through our strategic affiliated asset managers. Certain affiliated managers also benefit from access to our global marketing and distribution platform, as well as operational infrastructure and support. Our asset management business makes seed and additional strategic investments directly in alternative asset management separately managed accounts and co-mingled funds where we act as the asset manager or in affiliated asset managers where we have strategic relationships and participate in the revenues or profits of the affiliated manager.

Asset management fees and revenues primarily consist of:

•Management and performance fees from funds and accounts managed by us;

•Placement and distribution fees for raising capital from investors; and

•Revenue from strategic affiliated asset managers where we are entitled to portions of their operating revenues and income based on our interests in the affiliates.

Fees and revenues are generally tied to the value of assets under management and the performance of those assets. Performance-based fees are earned when returns exceed specified benchmarks or performance targets and are typically recognized annually generally in our first quarter, once they become fixed and determinable and are not subject to significant reversal.

We also generate an investment return from capital invested in our managed funds and in funds managed by our affiliated asset managers. Additionally, we earn revenues from other investments, including our portfolio of real estate development activities, foreign exchange trading, and telecommunications operations.




	Three Months Ended August 31,
$ in thousands	2026	2025		% Change



Asset management fees and other	$	2,156		$	8,235			(73.8)	%
Revenue from strategic affiliates (1)	11,129		7,681			44.9
Total asset management fees and revenues	13,285		15,916			(16.5)	%
Investment return	20,949		68,026			(69.2)
Allocated net interest	(21,438)		(18,550)			15.6
Other investments	72,839		111,490			(34.7)
Total Asset Management	$	85,635		$	176,882			(51.6)	%


	Nine Months Ended August 31,
$ in thousands	2026	2025		% Change



Asset management fees and other	$	12,648		$	61,538			(79.4)	%
Revenue from strategic affiliates (1)	85,716		63,774			34.4
Total asset management fees and revenues	98,364		125,312			(21.5)	%
Investment return	140,978		112,796			25.0
Allocated net interest	(66,611)		(54,915)			21.3
Other investments	320,884		340,025			(5.6)
Total Asset Management	$	493,615		$	523,218			(5.7)	%

(1) Amounts include 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.

Three Months Ended August 31, 2026 Versus August 31, 2025

Asset management fees and revenues were $13.3 million, down 16.5% compared to $15.9 million for the prior year quarter, as higher management fees on funds and accounts managed by our strategic affiliates were offset by lower management fees on funds and accounts managed by us largely due to Point Bonita.

Investment return was $20.9 million compared to $68.0 million for the prior year quarter, due to lower performance across several fund strategies and the impact of reduced capital allocated to certain funds based on our strategy to reduce capital committed and reposition the business in recognition of our upcoming acquisition of Hildene Holdings.

Other investments net revenues were $72.8 million, down 34.7% compared to $111.5 million in the prior year quarter, primarily due to lower results from Tessellis and HomeFed.

Nine Months Ended August 31, 2026 Versus August 31, 2025

Asset management fees and revenues were $98.4 million, down 21.5% compared to $125.3 million for the prior year period, as higher performance fees from funds and accounts managed by our strategic affiliates were offset by lower performance fees largely associated with Point Bonita.

Investment return was $141.0 million, up 25.0% compared to $112.8 million for the prior year period, primarily driven by improved performance across several fund strategies, particularly those with a long-equity bias, partially offset by a decline in performance across several other funds, including Point Bonita.

Other investments net revenues were $320.9 million, down 5.6% compared to $340.0 million for the prior year period, as improved results from HomeFed and mark-to-market gains on certain investments were offset by lower results from Tessellis.

Assets Under Management

Assets under management (“AUM”) represents the assets we manage or are managed by our affiliated asset managers with whom we have revenue sharing arrangements. AUM primarily refers to the basis of assets from which we are entitled to earn fees and revenues though the measure also includes funds and separately managed accounts for which we do not charge fees. AUM includes:

•the net asset value of a fund or separately managed account managed by us or our affiliated managers and may include an agreed target AUM utilizing leverage;

•unfunded capital commitments to a fund; and


48		Jefferies Financial Group Inc.

•the fair value of any invested capital in our consolidated funds or separately managed accounts.

Net asset value generally refers to the fair value the assets less the liabilities of a fund or account.

Assets under management:


$ in millions	August 31, 2026	November 30, 2025

Net asset value seeded by us:
Jefferies funds or separately managed accounts	$	333		$	358
Our affiliates funds or separately managed accounts	1,517		1,741
Total net asset value of Jefferies’ invested capital (1)	1,850		2,099
Fair value of investment purchased with leverage	562		699
Total AUM attributed to Jefferies as investor	$	2,412		$	2,798
Net asset value of third-party investors:
Jefferies funds or separately managed accounts (2)	1,265		2,462
Our affiliates funds or separately managed accounts (3)	29,821		25,387
Total AUM attributed to third-party investors	$	31,086		$	27,849
Unfunded capital commitments	164		195
Aggregated AUM	$	33,662		$	30,842

(1)Revenues related to the investments made by us are presented in Investment return within the results of our asset management businesses.

(2)We earn asset management fees as a result of the third-party investments, which are presented in Asset management fees and revenues within the results of our asset management business.

(3)Revenues from our share of fees received by affiliated asset managers are presented in Revenue from strategic affiliates within the results of our asset management business.

Our definition of assets under management may differ from the calculations of other asset managers; and as a result, this measure may not be comparable to similar measures presented by other asset managers. Our definition of AUM may differ from that referenced in any of our investment management agreements, differs from the manner in which “Regulatory Assets Under Management” is reported to the SEC on Form ADV, and includes assets for which we do not act as an asset manager.

In addition to our investments directly in Jefferies’ and our strategic affiliates funds and separately managed accounts, we have capital invested in other equity method investees as part of our asset management business of $190.0 million and $174.0 million at August 31, 2026 and November 30, 2025, respectively.

Other

Other revenues include foreign currency transaction gains or losses, debt valuation adjustments on derivative contracts, gains and losses on investments held in deferred compensation plans or certain other corporate income items that are not attributed to business segments as management does not consider such amounts in assessing the financial performance of our operating businesses.

Non-interest Expenses




	Three Months Ended August 31,
$ in thousands	2026	2025		% Change
Compensation and benefits	$	1,192,745		$	1,083,510		10.1	%
Brokerage and clearing fees	139,475		121,164			15.1
Underwriting costs	31,858		20,332			56.7
Technology and communications	173,235		157,171			10.2
Occupancy and equipment rental	34,713		32,908			5.5
Business development	83,000		78,999			5.1
Professional services	88,652		73,329			20.9
Depreciation and amortization	43,282		53,230			(18.7)
Cost of sales	22,922		34,430			(33.4)
Other	61,014		60,544			0.8
Total non-interest expenses	$	1,870,896		$	1,715,617		9.1	%



	Nine Months Ended August 31,
$ in thousands	2026	2025		% Change
Compensation and benefits	$	3,466,880		$	2,779,476		24.7	%
Brokerage and clearing fees	420,053		360,345			16.6
Underwriting costs	90,099		52,703			71.0
Technology and communications	495,953		442,844			12.0
Occupancy and equipment rental	103,072		93,818			9.9
Business development	247,530		231,360			7.0
Professional services	264,303		223,563			18.2
Depreciation and amortization	147,475		136,471			8.1
Cost of sales	84,095		118,959			(29.3)
Other	247,252		217,578			13.6
Total non-interest expenses	$	5,566,712		$	4,657,117		19.5	%

Total Non-interest Expenses

Three Months Ended August 31, 2026 Versus August 31, 2025

Non-interest expenses were $1.87 billion, an increase of 9.1%, compared to $1.72 billion for the prior year quarter, primarily due to an increase in compensation and benefits expenses attributable to higher net revenues, higher brokerage and clearing fees on increased equities trading volumes and higher technology and communication expenses related to continued development of various trading and management systems as well as higher data related costs.

Nine Months Ended August 31, 2026 Versus August 31, 2025

Non-interest expenses were $5.57 billion, an increase of 19.5%, compared to $4.66 billion for the prior year period, primarily due to an increase in compensation and benefits expenses attributable to higher net revenues, higher brokerage and clearing fees on increased equities trading volumes and higher technology and communication expenses related to continued development of various trading and management systems as well as higher data related costs.

Compensation and Benefits

Compensation and benefits expense consists of salaries, benefits, commissions, annual cash compensation and share-based awards and the amortization of share-based and cash compensation awards to employees.


August 2026 Form 10-Q		49

Cash and share-based awards granted to employees may contain provisions such that employees who terminate their employment or are terminated without cause may continue to vest in their awards, so long as those awards are not forfeited as a result of other forfeiture provisions (primarily non-compete clauses) of those awards. Accordingly, the compensation expense for a portion of awards granted at year end as part of annual compensation is recorded during the year of the award. Compensation and benefits expense includes amortization expense associated with these awards to the extent vesting is contingent on future service. In addition, certain awards to our Chief Executive Officer and our President contain performance conditions and the awards are amortized over their service periods.

Compensation and benefits expense for the current quarter and current year was $1.19 billion and $3.47 billion, respectively, compared to $1.08 billion and $2.78 billion for the prior year quarter and prior year period, respectively. A significant portion of our compensation expense is highly variable with net revenues. Compensation and benefits expense as a percentage of Net revenues was 53.7% and 53.8% for the current quarter and current year, respectively, compared to 52.9% and 52.7% for the prior year quarter and prior year period, respectively.

Compensation expense related to the amortization of share- and cash-based awards amounted to $154.4 million and $485.5 million for the current quarter and current year, respectively, compared to $140.3 million and $440.7 million for the prior year quarter and prior year period, respectively.

Non-interest Expenses (Excluding Compensation and Benefits)

Three Months Ended August 31, 2026 Versus August 31, 2025

Non-compensation expenses as a percentage of Net revenues was 30.5% compared to 30.9% for the current quarter and prior year quarter, respectively, and was impacted by the following:

•Brokerage and clearing fees were higher by $18.3 million primarily tied to strong equities revenue growth across regions.

•Technology and communication expenses were higher by $16.1 million related to the continued development of various trading and management systems as well as higher data related costs.

Nine Months Ended August 31, 2026 Versus August 31, 2025

Non-compensation expenses as a percentage of Net revenues was 32.6% compared to 35.6% for the current year and prior year period, respectively, and was impacted by the following:

•Brokerage and clearing fees were higher by $59.7 million primarily tied to strong equities revenue growth across regions.

•Technology and communication expenses were higher by $53.1 million related to the continued development of various trading and management systems as well as higher data related costs.

•Other expenses were higher by $29.7 million compared to the prior year period, primarily due to the write-down of goodwill associated with the expected sale of Tessellis.

Income Taxes

Three Months Ended August 31, 2026 Versus August 31, 2025

The provision for income taxes on continuing operations was $62.8 million and $89.3 million for the three months ended August 31, 2026 and 2025, respectively, representing an effective tax rate of 17.9%, and 26.9%, respectively. The lower rate was primarily driven by the recognition of excess tax benefits associated with share-based awards, investment tax credits and lower state and local taxes.

Nine Months Ended August 31, 2026 Versus August 31, 2025

The provision for income taxes on continuing operations was $181.2 million and $147.0 million for the nine months ended August 31, 2026 and 2025, respectively, representing an effective tax rate of 20.6%, and 23.8%, respectively. The lower rate was primarily driven by the recognition of excess tax benefits associated with share-based awards, investment tax credits and lower state and local taxes.

Accounting Developments

There are no accounting standard updates, except as discussed in Note 3, Accounting Developments in our consolidated financial statements including in this Quarterly Report on Form 10-Q which we have either determined are applicable or expected to have a material impact on our consolidated financial statements.


50		Jefferies Financial Group Inc.

Critical Accounting Estimates

Our consolidated financial statements are prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and related notes. Actual results can and may differ from estimates. These differences could be material to our consolidated financial statements.

We believe our application of U.S. GAAP and the associated estimates are reasonable. Our accounting estimates are reevaluated, and adjustments are made when facts and circumstances dictate a change. Historically, we have found our application of accounting policies to be appropriate, and actual results have not differed materially from those determined using necessary estimates.

For further discussions of the following significant accounting policies and other significant accounting policies, refer to Note 2, Summary of Significant Accounting Policies, in our consolidated financial statements included in Part II, Item 8 of our Annual Report on Form 10-K for the year ended November 30, 2025.

Valuation of Financial Instruments

Financial instruments owned and Financial instruments sold, not yet purchased are recorded at fair value. The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). Unrealized gains or losses are generally recognized in Principal transactions revenues.

Fair Value Hierarchy – In determining fair value, we maximize the use of observable inputs and minimize the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from independent sources. Unobservable inputs reflect our assumptions that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. We apply a hierarchy to categorize our fair value measurements broken down into three levels based on the transparency of inputs, where Level 1 uses observable prices in active markets and Level 3 uses valuation techniques that incorporate significant unobservable inputs. Greater use of management judgment is required in determining fair value when inputs are less observable or unobservable in the marketplace, such as when the volume or level of trading activity for a financial instrument has decreased and when certain factors suggest that observed transactions may not be reflective of orderly market transactions. Judgment must be applied in determining the appropriateness of available prices, particularly in assessing whether available data reflects current prices and/or reflects the results of recent market transactions. Prices or quotes are weighed when estimating fair value with greater reliability placed on information from transactions that are considered to be representative of orderly market transactions.

Fair value is a market-based measure; therefore, when market observable inputs are not available, our judgment is applied to reflect those judgments that a market participant would use in valuing the same asset or liability. The availability of observable inputs can vary for different products. We use prices and inputs that are current as of the measurement date even in periods of market disruption or illiquidity. The valuation of financial instruments categorized within Level 3 of the fair value hierarchy involves the greatest extent of management judgment. (Refer to

Note 2, Summary of Significant Accounting Policies, in our consolidated financial statements included in Part II, Item 8 of our Annual Report on Form 10-K for the year ended November 30, 2025 and Note 5, Fair Value Disclosures in our consolidated financial statements included in this Quarterly Report on Form 10-Q for further information on the definitions of fair value, Level 1, Level 2 and Level 3 and related valuation techniques).

For information on the composition of our Financial instruments owned and Financial instruments sold, not yet purchased recorded at fair value and the composition of activity of our Level 3 assets and Level 3 liabilities, refer to Note 5, Fair Value Disclosures in our consolidated financial statements included in this Quarterly Report on Form 10-Q.

Controls Over the Valuation Process for Financial Instruments – Our Independent Price Verification Group, independent of the trading function, plays an important role in determining that our financial instruments are appropriately valued and that fair value measurements are reliable. This is particularly important where prices or valuations that require inputs are less observable. In the event that observable inputs are not available, the control processes are designed to assure that the valuation approach utilized is appropriate and consistently applied and that the assumptions are reasonable. Where a pricing model is used to determine fair value, these control processes include reviews of the pricing model’s theoretical soundness and appropriateness by risk management personnel with relevant expertise who are independent from the trading desks. In addition, recently executed comparable transactions and other observable market data are considered for purposes of validating assumptions underlying the model.

Income Taxes

Significant judgment is required in estimating our provision for income taxes. In determining the provision for income taxes, we must make judgments and interpretations about how to apply inherently complex tax laws to numerous transactions and business events. In addition, we must make estimates about the amount, timing and geographic mix of future taxable income, which includes various tax planning strategies to utilize tax attributes and deferred tax assets before they expire.

We record a valuation allowance to reduce our net deferred tax asset to the amount that is more likely than not to be realized. We are required to consider all available evidence, both positive and negative, and to weigh the evidence when determining whether a valuation allowance is required and the amount of such valuation allowance. Generally, greater weight is required to be placed on objectively verifiable evidence when making this assessment, in particular on recent historical operating results.

We also record reserves for unrecognized tax benefits based on our assessment of the probability of successfully sustaining tax filing positions. Management exercises significant judgment when assessing the probability of successfully sustaining tax filing positions, and in determining whether a contingent tax liability should be recorded and if so, estimating the amount. If our tax filing positions are successfully challenged, payments could be required that are in excess of reserved amounts or we may be required to reduce the carrying amount of our net deferred tax asset, either of which could be significant to our financial condition or results of operations.

Impairment of Equity Method Investments

We evaluate equity method investments for impairment when operating losses or other factors may indicate a decrease in value which is other than temporary. We consider a variety of


August 2026 Form 10-Q		51

factors including economic conditions nationally and in an investment’s geographic area of operation, adverse changes in the industry in which an investment operates, declines in business prospects, deterioration in earnings, increasing costs of operations and other relevant factors specific to the investee. Whenever we believe conditions or events indicate that one of these investments might be significantly impaired, we generally obtain from such investee updated cash flow projections and obtain other relevant information related to assessing the overall valuation of the investee. Utilizing this information, we assess whether the investment is considered to be other-than-temporarily impaired. To the extent an investment is deemed to be other-than-temporarily impaired, an impairment charge is recognized for the amount, if any, by which the investment’s book value exceeds our estimate of the investment’s fair value.

Goodwill

At August 31, 2026, goodwill of $1.73 billion (excluding goodwill classified as held for sale) represents 2.1% of total assets. The nature and accounting for goodwill is discussed in Note 2, Summary of Significant Accounting Policies in our consolidated financial statements included in Part II, Item 8 of our Annual Report on Form 10-K for the year ended November 30, 2025 and Note 12, Goodwill and Intangible Assets in our consolidated financial statements included in this Quarterly Report on Form 10-Q. Goodwill must be allocated to reporting units and tested for impairment at least annually, or when circumstances or events make it more likely than not that an impairment occurred. Goodwill is tested by comparing the estimated fair value of each reporting unit with its carrying value. Our annual goodwill impairment testing date for a substantial portion of our reporting units is August 1 and November 30 for other identified reporting units. The results of our annual tests did not indicate any goodwill impairment.

Estimating the fair value of a reporting unit requires management judgment and often involves the use of estimates and assumptions that could have a significant effect on whether or not an impairment charge is recorded and the magnitude of such a charge. Estimated fair values for our reporting units utilize market valuation methods that incorporate price-to-earnings and price-to-book multiples of comparable public companies and/or projected cash flows. Under the market valuation approach, the key assumptions are the selected multiples and our internally developed projections of future profitability, growth and return on equity for each reporting unit. The weight assigned to the multiples requires judgment in qualitatively and quantitatively evaluating the size, profitability and the nature of the business activities of the reporting units as compared to the comparable publicly-traded companies. Under the income approach, the key assumptions include our internally developed projections of future cash flows, growth rates and risk adjusted discount rates, which are sensitive to the interest rate environment and capital market conditions. The valuation methodologies for our reporting units are sensitive to management’s forecasts of future profitability, which are a significant component of the valuation and come with a level of uncertainty regarding trading volumes and capital market transaction levels. In addition, as the fair values determined under the market valuation approach represent a noncontrolling interest, we apply a control premium to arrive at the estimate fair value of each reporting unit on a controlling basis.

We use allocated tangible equity plus allocated goodwill and intangible assets for the carrying amount of each reporting unit. The amount of tangible equity allocated to a reporting unit is based on our cash capital model deployed in managing our businesses, which seeks to approximate the capital a business would require if it were operating independently. For further information on our Cash Capital Policy, refer to the Liquidity, Financial Condition and Capital Resources section herein. Intangible assets are allocated to a reporting unit based on either specifically identifying a particular intangible asset as pertaining to a reporting unit or, if shared among reporting units, based on an assessment of the reporting unit’s benefit from the intangible asset in order to generate results.

For certain of our reporting units included within Other investments we may first assess qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. If we determine on the basis of this qualitative assessment that it is not more likely than not that a reporting unit’s fair value is less than its carrying amount, we place reliance on our qualitative assessment and no quantitative calculation of the fair value of the reporting unit is performed.

Carrying values of goodwill by reporting unit:


$ in millions	August 31, 2026	November 30, 2025
Investment banking	$	702.7		$	702.0
Equities and wealth management	256.1		255.9
Fixed income	578.5		578.0
Asset management	143.0		143.0
Other investments	45.7		158.7
Total	$	1,726.0		$	1,837.6

The results of our annual assessments indicated that all of our reporting units had a fair value in excess of their carrying amounts. Our valuation methodologies and the assessment of qualitative factors are sensitive to management’s forecasts of future probability. At August 31, 2026, our Stratos reporting unit with allocated goodwill of $5.5 million is highly sensitive to the forecast assumptions used in our market approach valuation. Reductions in trading volumes and/or a decline in performance from the expected levels assumed in our forecast could cause a decline in the estimated fair value of our Stratos reporting unit and a resulting impairment of a portion of our goodwill.

During the first quarter of 2026, a binding offer to sell our Tessellis reporting unit was accepted. We have evaluated the goodwill allocated to Tessellis and, based on the estimated sales proceeds, recorded an impairment to goodwill of $58.2 million in the first quarter of 2026, which is recognized within Other expenses. At August 31, 2026, the remaining goodwill allocated to our Tessellis reporting unit is $55.9 million.

Refer to Note 4, Assets and Liabilities Held for Sale and Note 12, Goodwill and Intangible Assets in our consolidated financial statements included in this Quarterly Report on Form 10-Q for further details on goodwill.


52		Jefferies Financial Group Inc.

Liquidity, Financial Condition and Capital Resources

Our CFO and Global Treasurer are responsible for developing and implementing our liquidity, funding and capital management strategies. These policies are determined by the nature and needs of our day-to-day business operations, business opportunities, regulatory obligations, and liquidity requirements.

Our actual levels of capital, total assets and financial leverage are a function of a number of factors, including asset composition, business initiatives and opportunities, regulatory requirements, rating agency ratios and cost and availability of both long term and short-term funding. We have historically maintained a balance sheet consisting of a large portion of our total assets in cash and liquid marketable securities. The liquid nature of these assets provides us with flexibility in financing and managing our business.

We also own a legacy portfolio of businesses and investments that are reflected as consolidated subsidiaries, equity investments or securities. Over the most recent years, we completed several critical steps to substantially liquidate our legacy Other investments portfolio of businesses. During 2026, we announced the sale of our interest in Tessellis S.p.A., which we anticipate to close during the first quarter of 2027. Subsequent to August 31, 2026, Stratos Group International, LLC (“Stratos”), a subsidiary of Jefferies, entered into a definitive agreement with AvaTrade Markets Ltd. to sell substantially all of its assets and business operations. The acquired assets are expected to be migrated over the next 120 days.

We maintain modest leverage to support our investment grade ratings. The growth of our balance sheet is supported by our equity and we have quantitative metrics in place to monitor leverage and double leverage. Our capital plan is robust, in order to sustain our operating model through stressed conditions. We maintain adequate financial resources to support business activities in both normal and stressed market conditions, including a buffer in excess of our regulatory, or other internal or external, requirements. Our access to funding and liquidity is stable and efficient to ensure that there is sufficient liquidity to meet our financial obligations in normal and stressed market conditions.

Our Balance Sheet

A business unit level balance sheet and cash capital analysis are prepared and reviewed with senior management on a weekly basis. As a part of this balance sheet review process, capital is allocated to all assets and gross balance sheet limits are adjusted, as necessary. This process ensures that the allocation of capital and costs of capital are incorporated into business decisions. The goals of this process are to protect the firm’s platform, enable our businesses to remain competitive, maintain the ability to manage capital proactively and hold businesses accountable for both balance sheet and capital usage.

We actively monitor and evaluate our financial condition and the composition of our assets and liabilities. We continually monitor our overall securities inventory, including the inventory turnover rate, which confirms the liquidity of our overall assets. A significant portion of our financial instruments are valued on a daily basis and we monitor and employ balance sheet limits for our various businesses.




$ in millions	August 31, 2026	November 30, 2025	% Change
Total assets	$	81,301.9		$	76,012.3	7.0	%
Cash and cash equivalents	16,883.6		14,043.9		20.2
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations	1,178.0		917.7		28.4
Financial instruments owned	27,282.6		27,722.7		(1.6)
Financial instruments sold, not yet purchased	15,096.0		13,320.2		13.3
Total Level 3 assets	891.4		737.8		20.8
Securities borrowed	$	11,158.4		$	8,295.2	34.5	%
Securities purchased under agreements to resell	7,840.7		8,449.1		(7.2)
Total securities borrowed and securities purchased under agreements to resell	$	18,999.1		$	16,744.3	13.5	%
Securities loaned	$	4,023.0		$	2,540.8	58.3	%
Securities sold under agreements to repurchase	12,920.7		12,156.7		6.3
Total securities loaned and securities sold under agreements to repurchase	$	16,943.7		$	14,697.5	15.3	%

Total assets at August 31, 2026 and November 30, 2025 were $81.30 billion and $76.01 billion, respectively, an increase of 7.0%. During the three and nine months ended August 31, 2026, average total assets were higher by 11.8% and 8.3%, respectively, than total assets at August 31, 2026.

Our total Financial instruments owned inventory was $27.28 billion and $27.72 billion at August 31, 2026 and November 30, 2025, respectively. During the nine months ended August 31, 2026, our total Financial instruments owned decreased primarily due to decreases in derivative contracts, loans at fair value, investments at fair value, sovereign obligations, corporate debt securities and U.S. government and agency securities, partially offset by increases in corporate equity securities, mortgage and asset-backed securities and municipal securities. Financial instruments sold, not yet purchased inventory was $15.10 billion at August 31, 2026, an increase of 13.3% from $13.32 billion at November 30, 2025, with the increase primarily driven by increases in corporate equity securities and sovereign obligations, partially offset by decreases in U.S. government and agency securities, derivative contracts, loans sold at fair value, corporate debt securities and mortgage and asset-backed securities. Our overall net inventory position was $12.19 billion and $14.40 billion at August 31, 2026 and November 30, 2025, respectively, with the decrease primarily due to decreases in corporate equity securities, derivative contracts, sovereign obligations, loans, investments at fair value and corporate debt securities, partially offset by increases in U.S. government and agency securities, mortgage and asset-backed securities and municipal securities.

Level 3 assets:


$ in millions	August 31, 2026	Percent	November 30, 2025	Percent
Investment Banking	$	128.6		14.4	%	$	111.7	15.1	%
Equities and Fixed Income	421.2		47.2		343.6		46.7
Asset Management (1)	276.9		31.1		230.5		31.2
Other	64.7		7.3		52.0		7.0
Total	$	891.4		100.0	%	$	737.8	100.0	%

(1)At August 31, 2026 and November 30, 2025, $168.5 million and $195.8 million, respectively, are attributed to Other investments within our Asset Management reportable segment.


August 2026 Form 10-Q		53

Securities financing assets and liabilities include financing for our financial instruments trading activity, matched book transactions and mortgage finance transactions. Matched book transactions accommodate customers, as well as obtain securities for the settlement and financing of inventory positions. Our average month end balance of total reverse repos and stock borrows during the three and nine months ended August 31, 2026 was 18.4% and 15.9% higher, respectively, than the balance at August 31, 2026. Our average month end balance of total repos and stock loans during the three and nine months ended August 31, 2026 was 21.1% and 16.7% higher, respectively, than the balance at August 31, 2026.

Select information related to repurchase agreements:


$ in millions	Nine Months Ended August 31, 2026	Year Ended November 30, 2025


Securities Purchased Under Agreements to Resell:
Period end	$	7,841		$	8,449
Month end average	10,421		10,526
Maximum month end	13,730		14,927
Securities Sold Under Agreements to Repurchase:
Period end	$	12,921		$	12,157
Month end average	15,799		16,497
Maximum month end	18,913		19,785

Fluctuations in the balance of our repurchase agreements from period to period and intraperiod are dependent on business activity in those periods. Additionally, the fluctuations in the balances of our securities purchased under agreements to resell are influenced in any given period by our clients’ balances and our clients’ desires to execute collateralized financing arrangements via the repurchase market or via other financing products. Average balances and period end balances will fluctuate based on market and liquidity conditions and we consider the fluctuations intraperiod to be typical for the repurchase market.

Leverage Ratios:


$ in millions	August 31, 2026	November 30, 2025


Total assets	$	81,302		$	76,012
Total equity	$	10,752		$	10,642
Total shareholders’ equity	$	10,714		$	10,575
Deduct: Goodwill and intangible assets, net	(1,972)		(2,040)
Tangible shareholders’ equity	$	8,742		$	8,535
Leverage ratio (1)	7.6		7.1
Tangible gross leverage ratio (2)	9.1		8.7

(1)Leverage ratio equals total assets divided by total equity.

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

Liquidity Management

The key objectives of the liquidity management framework are to support the successful execution of our business strategies while ensuring sufficient liquidity through the business cycle and during periods of financial and idiosyncratic distress. Our liquidity management policies are designed to mitigate the potential risk that we may be unable to access adequate financing to service our financial obligations without material franchise or business impact.

The principal elements of our liquidity management framework are our Cash Capital Policy, our assessment of Modeled Liquidity Outflow (“MLO”) and our Contingency Funding Plan (“CFP”).

Liquidity Management Framework. Our Liquidity Management Framework is based on a model of a potential liquidity contraction over a one-year time period. This incorporates potential cash outflows during a market or our idiosyncratic liquidity stress event, including, but not limited to, the following:

•Repayment of all unsecured debt maturing within one year and no incremental unsecured debt issuance;

•Maturity rolloff of outstanding letters of credit with no further issuance and replacement with cash collateral;

•Higher margin requirements than currently exist on assets on securities financing activity, including repurchase agreements and other secured funding including central counterparty clearinghouses;

•Liquidity outflows related to possible credit downgrade;

•Lower availability of secured funding;

•Client cash withdrawals;

•The anticipated funding of outstanding investment and loan commitments; and

•Certain accrued expenses and other liabilities and fixed costs.

Cash Capital Policy. We maintain a cash capital model that measures long-term funding sources against requirements. Sources of cash capital include our equity, mezzanine equity and the noncurrent portion of long-term borrowings. Uses of cash capital include the following:

•Illiquid assets such as equipment, goodwill, net intangible assets, exchange memberships, deferred tax assets and certain investments;

•A portion of securities inventory and other assets not expected to be financed on a secured basis in a credit stressed environment (i.e., margin requirements); and

•Drawdowns of unfunded commitments.

To ensure that we do not need to liquidate inventory in the event of a funding stress, we seek to maintain surplus cash capital. Our total long-term capital of $26.07 billion at August 31, 2026 exceeded our cash capital requirements.

MLO. Our businesses are diverse, and our liquidity needs are determined by many factors, including market movements, collateral requirements and client commitments, all of which can change dramatically in a difficult funding environment. During a liquidity stress, credit-sensitive funding, including unsecured debt and some types of secured financing agreements, may be unavailable, and the terms (e.g., interest rates, collateral provisions and tenor) or availability of other types of secured financing may change. As a result of our policy to ensure we have sufficient funds to cover what we estimate may be needed in a liquidity stress, we hold more cash and unencumbered securities and have greater long-term debt balances than our businesses would otherwise require. As part of this estimation process, we calculate an MLO that could be experienced in a liquidity stress. MLO is based on a scenario that includes both a market-wide stress and firm-specific stress, characterized by some or all of the following elements:


54		Jefferies Financial Group Inc.

•Global recession, default by a medium-sized sovereign, low consumer and corporate confidence, and general financial instability.

•Severely challenged market environment with material declines in equity markets and widening of credit spreads.

•Damaging follow-on impacts to financial institutions leading to the failure of a large bank.

•A firm-specific crisis potentially triggered by material losses, reputational damage, litigation, executive departure, and/or a ratings downgrade.

The following are the critical modeling parameters of the MLO:

•Liquidity needs over a 30-day scenario.

•A two-notch downgrade of our long-term senior unsecured credit ratings.

•No support from government funding facilities.

•A combination of contractual outflows, such as upcoming maturities of unsecured debt, and contingent outflows (e.g., actions though not contractually required, we may deem necessary in a crisis). We assume that most contingent outflows will occur within the initial days and weeks of a stress.

•No diversification benefit across liquidity risks. We assume that liquidity risks are additive.

The calculation of our MLO under the above stresses and modeling parameters considers the following potential contractual and contingent cash and collateral outflows:

•All upcoming maturities of unsecured long-term debt, promissory notes and other unsecured funding products assuming we will be unable to issue new unsecured debt or rollover any maturing debt.

•Repurchases of our outstanding long-term debt in the ordinary course of business as a market maker.

•A portion of upcoming contractual maturities of secured funding activity due to either the inability to refinance or the ability to refinance only at wider haircuts (i.e., on terms which require us to post additional collateral). Our assumptions reflect, among other factors, the quality of the underlying collateral and counterparty concentration.

•Collateral postings to counterparties due to adverse changes in the value of our over-the-counter (“OTC”) derivatives and other outflows due to trade terminations, collateral substitutions, collateral disputes, collateral calls or termination payments required by a two-notch downgrade in our credit ratings.

•Variation margin postings required due to adverse changes in the value of our outstanding exchange-traded derivatives and any increase in initial margin and guarantee fund requirements by derivative clearing houses.

•Liquidity outflows associated with our prime services business, including withdrawals of customer credit balances, and a reduction in customer short positions.

•Liquidity outflows to clearing banks to ensure timely settlements of cash and securities transactions.

•Draws on our unfunded commitments considering, among other things, the type of commitment and counterparty.

•Other upcoming large cash outflows, such as employee compensation, tax and dividend payments, with no expectation of future dividends from any subsidiaries.

Based on the sources and uses of liquidity calculated under the MLO scenarios, we determine, based on a calculated surplus or deficit, additional long-term funding that may be needed versus funding through the repurchase financing market and consider any adjustments that may be necessary to our inventory balances and cash holdings. At August 31, 2026, we had sufficient excess liquidity to meet all contingent cash outflows detailed in the MLO for at least 30 days without balance sheet reduction. We regularly refine our model to reflect changes in market or economic conditions and our business mix.

CFP. Our CFP ensures the ability to access adequate liquid financial resources to meet liquidity shortfalls that may arise in emergency situations. The CFP triggers the following actions:

•Sets out the governance for managing liquidity during a liquidity crisis;

•Identifies key liquidity and capital early warning indicators that will help guide the response to the liquidity crisis;

•Identifies the actions and escalation procedures should we experience a liquidity crisis including coordination amongst senior management and the Board of Directors;

•Sets out the sources of funding available during a liquidity crisis;

•Sets out the communication plan during a liquidity crisis for key external stakeholders including regulators, relationship banks, rating agencies and funding counterparties; and

•Sets out an action plan to source additional funding.

Sources of Liquidity

Financial instruments that are cash and cash equivalents or are deemed by management to be generally readily convertible into cash, marginable or accessible for liquidity purposes within a relatively short period of time:


$ in millions	August 31, 2026	Average Balance Quarter Ended August 31, 2026 (1)	November 30, 2025
Cash and cash equivalents:
Cash in banks	$	4,167		$	5,131	$	3,904
Money market investments (2)	12,717		9,469		10,140
Total cash and cash equivalents	16,884		14,600		14,044
Other sources of liquidity:
Debt securities owned and securities purchased under agreements to resell (3)	2,135		2,115		1,824
Other (4)	883		1,640		1,836
Total other sources	3,018		3,755		3,660
Total cash and cash equivalents and other liquidity sources	$	19,902		$	18,355	$	17,704
Total cash and cash equivalents and other liquidity sources as % of Total assets	24.5	%		23.3	%
Total cash and cash equivalents and other liquidity sources as % of Total assets less goodwill and intangible assets	25.1	%		23.9	%

(1)Average balances are calculated based on weekly balances.


August 2026 Form 10-Q		55

(2)At August 31, 2026 and November 30, 2025, $12.69 billion and $10.12 billion, respectively, was invested in U.S. government money funds that invest primarily in cash, securities issued by the U.S. government and U.S. government-sponsored entities, and repurchase agreements that are fully collateralized by cash or government securities. The remaining balances at August 31, 2026 and November 30, 2025 are primarily invested in AAA-rated prime money funds. The average balance of U.S. government money funds for the quarter ended August 31, 2026 was $9.45 billion.

(3)Consists of unencumbered high-quality sovereign government securities and reverse repurchase agreements collateralized by U.S. government securities and other high quality sovereign government securities; deposits with a central bank within the European Economic Area, United Kingdom, Canada, Australia, Japan, Switzerland or the U.S.; and securities issued by a designated multilateral development bank and reverse repurchase agreements with underlying collateral composed of these securities.

(4)Other includes unencumbered inventory representing an estimate of the amount of additional secured financing that could be reasonably expected to be obtained from our Financial instruments owned that are currently not pledged after considering reasonable financing haircuts.

In addition to the cash balances and liquidity pool presented above, the majority of financial instruments (both long and short) in our trading accounts are actively traded and readily marketable. At August 31, 2026, we had the ability to readily obtain repurchase financing for 78.2% of our inventory at haircuts of 10% or less, which reflects the liquidity of our inventory. In addition, as a matter of our policy, all of these assets have internal capital assessed, which is in addition to the funding haircuts provided in the securities finance markets. Additionally, certain of our Financial instruments owned primarily consisting of loans and investments are predominantly funded by long term capital. Under our cash capital policy, we model capital allocation levels that are more stringent than the haircuts used in the market for secured funding; and we maintain surplus capital at these more stringent levels. We continually assess the liquidity of our inventory based on the level at which we could obtain financing in the marketplace for a given asset. Assets are considered to be liquid if financing can be obtained in the repurchase market or the securities lending market at collateral haircut levels of 10% or less.

Financial instruments by asset class that we consider to be of a liquid nature and the amount of such assets that have not been pledged as collateral:


	August 31, 2026	November 30, 2025


$ in millions	Liquid Financial Instruments	Unencumbered Liquid Financial Instruments (1)	Liquid Financial Instruments	Unencumbered Liquid Financial Instruments (1)
Corporate equity securities	$	8,130		$	1,124	$	7,434	$	2,715
Corporate debt securities	4,655		499		4,789	281
U.S. government, agency and municipal securities	2,980		156		3,013	56
Other sovereign obligations	1,269		1,895		1,461	1,731
Agency mortgage-backed securities (2)	3,997		—		3,060	—
Loans and other receivables	302		—		160	—
Total	$	21,333		$	3,674	$	19,917	$	4,783

(1)Unencumbered liquid balances represent assets that can be sold or used as collateral for a loan but have not been.

(2)Consists solely of agency mortgage-backed securities issued by the Federal Home Loan Mortgage Corporation (“Freddie Mac”), the Federal National Mortgage Association (“Fannie Mae”) and the Government National Mortgage Association (“Ginnie Mae”).

In addition to being able to be readily financed at reasonable haircut levels, we estimate that each of the individual securities within each asset class above could be sold into the market and converted into cash within three business days under normal market conditions, assuming that the entire portfolio of a given asset class was not simultaneously liquidated. There are no restrictions on the unencumbered liquid securities, nor have they been pledged as collateral.

Sources of Funding and Capital Resources

Our assets are funded by equity capital, senior debt, securities loaned, securities sold under agreements to repurchase, customer free credit balances, bank loans and other payables.

Secured Financing

We rely principally on readily available secured funding to finance our inventory of financial instruments owned and financial instruments sold. Our ability to support increases in total assets is largely a function of our ability to obtain short- and intermediate-term secured funding, primarily through securities financing transactions. We finance a portion of our long inventory and cover some of our short inventory by pledging and borrowing securities in the form of repurchase or reverse repurchase agreements (collectively “repos”), respectively. A portion of our cash and noncash repurchase financing activities is used as collateral that is considered eligible collateral by central clearing corporations. Central clearing corporations are situated between participating members who borrow cash and lend securities (or vice versa); accordingly, repo participants contract with the central clearing corporation and not one another individually. Therefore, counterparty credit risk is borne by the central clearing corporation which mitigates the risk through initial margin demands and variation margin calls from repo participants. The comparatively large proportion of our total repo activity that is eligible for central clearing reflects the high quality and liquid composition of the inventory we carry in our trading books. For those asset classes not eligible for central clearing house financing, we seek to execute our bi-lateral financings on an extended term basis and the tenor of our repurchase and reverse repurchase agreements generally exceeds the expected holding period of the assets we are financing. The weighted average maturity of cash and noncash repurchase agreements for non-clearing corporation eligible funded inventory is approximately six months at August 31, 2026.

Our ability to finance our inventory via central clearinghouses and bi-lateral arrangements is augmented by our ability to draw bank loans on an uncommitted basis under our various banking arrangements. At August 31, 2026, short-term borrowings, which must be repaid within one year or less include bank loans, overdrafts and borrowings under revolving credit facilities. Letters of credit are used in the normal course of business mostly to satisfy various collateral requirements in favor of exchanges in lieu of depositing cash or securities. Average short-term borrowings outstanding were $1.66 billion and $2.50 billion for the three and nine months ended August 31, 2026, respectively.

At August 31, 2026 and November 30, 2025, our borrowings under bank loans in Short-term borrowings were $316.1 million and $533.8 million, respectively. Our borrowings include credit facilities that contain certain covenants that, among other things, require us to maintain a specified level of tangible net worth, require a minimum regulatory net capital requirement for our U.S. broker-dealer, Jefferies LLC, and impose certain restrictions on


56		Jefferies Financial Group Inc.

the future indebtedness of certain of our subsidiaries that are borrowers. Interest is based on rates at spreads over the federal funds rate or other adjusted rates, as defined in the various credit agreements, or at a rate as agreed between the bank and us in reference to the bank’s cost of funding. At August 31, 2026, we were in compliance with all covenants under these credit facilities.

In addition to the above financing arrangements, we issue notes backed by eligible collateral under master repurchase agreements, which provide an additional financing source for our inventory (our “repurchase agreement financing program”). The notes issued under the program are presented within Other secured financings. At August 31, 2026, the outstanding notes totaled $2.29 billion, bear interest primarily at a spread over the Secured Overnight Funding Rate (“SOFR”) and mature from September 2026 to October 2028.

Total Long-Term Capital

At August 31, 2026 and November 30, 2025, we had total long-term capital of $26.07 billion and $23.14 billion, respectively, resulting in a long-term debt to equity capital ratio of 1.17:1 and 1.17:1, respectively.


$ in thousands	August 31, 2026	November 30, 2025


Unsecured Long-Term Debt (1)	$	15,318,630		$	12,494,842
Total Mezzanine Equity	406		406
Total Equity	10,752,444		10,642,203
Total Long-Term Capital	$	26,071,480		$	23,137,451

(1)Amounts at August 31, 2026 and November 30, 2025 exclude our secured long-term debt. Amounts at August 31, 2026 exclude $744.1 million and $352.6 million of our Senior Notes as the notes mature January 2027 and June 2027, respectively. Amounts at November 30, 2025 exclude $869.5 million of our Callable Notes as the notes matured April 2026 and $45.2 million of our Floating Senior Notes as the note matured on June 2026. The amounts at August 31, 2026 and November 30, 2025 also exclude $138.6 million and $102.7 million, respectively, of structured notes as the notes mature within one year.

Long-Term Debt

During the nine months ended August 31, 2026, long-term debt increased by $2.56 billion to $18.46 billion at August 31, 2026, as presented in our Consolidated Statements of Financial Condition. This increase is primarily due to proceeds of $4.53 billion from the issuances of unsecured senior notes, $169.2 million from net issuances of structured notes, $32.6 million from valuation adjustments and $18.4 million from currency losses on foreign currency borrowings. These increases were partially offset by repayments of $1.55 billion on our unsecured senior notes, paydowns of $566.2 million in subsidiary debt and the reclassification of $51.9 million of Tessellis’ borrowings to liabilities held for sale (refer to Note 4, Assets and Liabilities Held for Sale for further information).

At August 31, 2026, our unsecured long-term debt has a weighted average maturity of approximately 7.5 years.

At August 31, 2026 and November 30, 2025, our borrowings under several credit facilities classified within Long-term debt in our Consolidated Statements of Financial Condition amounted to $670.2 million and $803.2 million, respectively. Interest on these credit facilities is based on an adjusted SOFR plus a spread or other adjusted rates, as defined in the various credit agreements. The credit facility agreements contain certain covenants that, among other things, require us to maintain specified levels of tangible net worth and liquidity amounts, certain credit and rating levels and impose certain restrictions on future indebtedness of

and require specified levels of regulated capital and cash reserves for certain of our subsidiaries. At August 31, 2026, we were in compliance with all covenants under these credit facilities.

Long-term debt ratings:


	Rating	Outlook
Moody’s Investors Service	Baa2	Stable
Standard & Poor’s	BBB	Stable
Fitch Ratings	BBB+	Stable

Jefferies LLC

Jefferies International Limited

Jefferies GmbH

Rating

Outlook

Rating

Outlook

Rating

Outlook

Moody’s Investors Service

Baa1

Stable

Baa1

Stable

Baa1

Stable

Standard & Poor’s

BBB+

Stable

BBB+

Stable

BBB+

Stable

Access to external financing to finance our day-to-day operations, as well as the cost of that financing, is dependent upon various factors, including our debt ratings. Our current debt ratings are dependent upon many factors, including industry dynamics, operating and economic environment, operating results, operating margins, earnings trend and volatility, balance sheet composition, liquidity and liquidity management, our capital structure, our overall risk management, business diversification and our market share and competitive position in the markets in which we operate. Deterioration in any of these factors could impact our credit ratings. While certain aspects of a credit rating downgrade are quantifiable pursuant to contractual provisions, the impact on our business and trading results in future periods is inherently uncertain and depends on a number of factors, including the magnitude of the downgrade, the behavior of individual clients and future mitigating action taken by us.

Equity Capital

Preferred Shares

On April 27, 2023, we established Series B Non-Voting Convertible Preferred Shares with a par value of $1.00 per share (“Series B Preferred Stock”) and designated 70,000 shares as Series B Preferred Stock. The Series B Preferred Stock has a liquidation preference of $17,500 per share and rank senior to our voting common stock upon dissolution, liquidation or winding up of Jefferies Financial Group Inc. The Series B Preferred Stock participates in cash dividends and distributions alongside our voting common stock on an as-converted basis. On April 27, 2023, we entered into an Exchange Agreement with Sumitomo Mitsui Banking Corporation’s (“SMBC”), which entitles SMBC to exchange shares of our voting common stock for shares of the Series B Preferred Stock at a rate of 500 shares of voting common stock for one share of Series B Preferred Stock and SMBC is required to pay $1.50 per share of voting common stock so exchanged. During 2024, we issued 55,125 shares of Series B Preferred Stock to SMBC in exchange for approximately 27.6 million shares of voting common stock. These preferred shares were subsequently converted by SMBC into 27.6 million shares of non-voting common stock on June 30, 2026. As of August 31, 2026, there is no outstanding Series B Preferred Stock.


August 2026 Form 10-Q		57

preference of $500 per share. Additionally, on September 19, 2025, we entered into an amended and restated Exchange Agreement (the “Amended and Restated Exchange Agreement”) with SMBC, which entitles SMBC to exchange shares of our voting common stock for shares of the Series B-1 Preferred Stock at a rate of 500 shares of voting common stock for one share of Series B-1 Preferred Stock. The Amended and Restated Exchange Agreement is limited to 17,500 shares of Series B-1 Preferred Stock. Under the Amended and Restated Exchange Agreement, SMBC is permitted to increase its economic ownership in the Company to up to 20% on an as-converted and fully diluted basis, while continuing to own less than 5% of a voting interest in the Company. As of August 31, 2026, there is no outstanding Series B-1 Preferred Stock.

Common Shares

Voting Common Shares

On March 26, 2026, shareholders approved an Amended and Restated Certificate of Incorporation, which decreased authorized voting common shares to 552.3 million from 565.0 million.

At August 31, 2026 and November 30, 2025, we had 189.1 million and 206.3 million voting common shares outstanding, respectively.

At August 31, 2026, we had 16.2 million share-based awards that do not require the holder to pay any exercise price and 5.1 million stock options that require the holder to pay an exercise price of $22.69 per share.

During the nine months ended August 31, 2026, we repurchased a total of 8.3 million of our common shares for $441.2 million, or an average price of $53.25 per share, including 6.3 million of our common shares for $333.0 million in the open market under our share repurchase program, and 2.0 million of our common shares for $108.2 million in connection with net-share tax withholding under our equity compensation plan. In September 2026, the Board of Directors has authorized the repurchase of common stock up to $250.0 million under a share repurchase program for future repurchases.

Non-Voting Common Shares

On March 26, 2026, shareholders approved an Amended and Restated Certificate of Incorporation, which increased authorized non-voting common shares to 47.7 million from 35.0 million.

On April 27, 2026, SMBC exchanged 9.2 million voting common shares for non-voting common shares on a 1:1 basis.

On June 30, 2026, SMBC converted 55,125 preferred shares into 27.6 million non-voting common shares in accordance with the Exchange Agreement.

On July 10, 2026, SMBC also exchanged 3.8 million shares of Jefferies’ voting common shares for non-voting common shares on a 1:1 basis.

At August 31, 2026, we had 40.6 million non-voting common shares outstanding.

At August 31, 2026, SMBC owns 19.6% of our combined voting and non-voting common stock on a fully-diluted basis.

Dividends

We paid the following dividends to our voting and non-voting common stockholders and to our Series B Preferred stockholders:


Nine Months Ended August 31, 2026
Declaration Date	Record Date	Payment Date	Per Common Share Amount
January 7, 2026	February 17, 2026	February 27, 2026	$0.40
March 25, 2026	May 18, 2026	May 29, 2026	$0.40
June 24, 2026	August 18, 2026	August 28, 2026	$0.40

On September 28, 2026, the Board of Directors declared a dividend of $0.40 per common share to be paid on November 25, 2026 to common shareholders of record at November 16, 2026.

No cash dividends were paid on the Series B Preferred Stock during the three months ended August 31, 2026, as all outstanding shares were converted into non-voting common stock before the dividend record date. During the nine months ended August 31, 2026, we paid cash dividends of $22.1 million. During the three and nine months ended August 31, 2025, we paid cash dividends related to the Series B Preferred stock of $11.0 million and $33.1 million, respectively.

The payment of dividends is subject to the discretion of our Board of Directors and depends upon general business conditions and other factors that our Board of Directors may deem to be relevant.

Net Capital

Jefferies LLC is a broker-dealer registered with the SEC and a member firm of the Financial Industry Regulatory Authority (“FINRA”) and is subject to the SEC Uniform Net Capital Rule (“Rule 15c3-1”), which requires the maintenance of minimum net capital, and has elected to calculate minimum capital requirements using the alternative method permitted by Rule 15c3-1 in calculating net capital. Jefferies LLC is also an Introducing Broker subject to Regulation 1.17 of the Commodity Futures Trading Commission (“CFTC”) under the Commodity Exchange Act, which sets forth minimum financial requirements. In June 2026, Jefferies LLC changed its registration status with the CFTC and the NFA from a futures commission merchant to an Introducing Broker. The minimum net capital requirement in determining excess net capital for a dually registered U.S. broker-dealer and CFTC Introducing Broker is equal to the greater of the requirement under SEA Rule 15c3-1 or CFTC Regulation 1.17. FINRA is the designated examining authority for Jefferies LLC and the National Futures Association (“NFA”) is the designated self-regulatory organization (“DSRO”) for Jefferies LLC as an FCM. In June 2026, Jefferies LLC changed its registration status with the CFTC and the NFA from an FCM to an Introducing Broker.


58		Jefferies Financial Group Inc.

At August 31, 2026, net capital and excess net capital were as follows:


$ in thousands	Net Capital	Excess Net Capital
Jefferies LLC	$	3,713,973		$	3,485,328
JFSI - SEC	371,762		326,827
JFSI - CFTC	371,762		333,994
JIL (1)	2,331,178		1,363,033
Jefferies GmbH (1)	394,252		290,749

(1)Represents an equivalent capital requirement in the respective jurisdiction.

At August 31, 2026, Jefferies LLC, JFSI, JIL and Jefferies GmbH are in compliance with their applicable requirements.

The regulatory capital requirements referred to above may restrict our ability to withdraw capital from our regulated subsidiaries.

Customer Protection and Segregation Requirement

As a registered broker dealer that clears and carries customer accounts, Jefferies LLC is subject to the customer protection provisions under SEC Rule 15c3-3 and is required to compute reserve formula requirement for customer accounts and deposit cash or qualified securities into a special reserve bank account for the exclusive benefit of customers. At August 31, 2026, Jefferies LLC had $225.5 million in cash and qualified U.S. Government securities on deposit in special reserve bank accounts for the exclusive benefit of customers.

The qualified securities meeting the 15c3-3 customer and PAB requirements are included in Cash and securities segregated and Securities purchased under agreements to resell.

JFSI is exempt from the CFTC and SEC segregation rules.

Other Developments

Following Russia’s 2022 invasion of Ukraine, the U.S., the U.K., and the European Union governments, among others, developed financial and economic sanctions targeting Russia that, in various ways, constrain transactions with numerous Russian entities, including major Russian banks and individuals; transactions in Russian sovereign debt; and investment, trade and financing to, from, or in Ukraine. We do not have any operations in Russia or any clients with significant Russian operations, and we have minimal market risk related to securities of companies either domiciled or operating in Russia. We continue to closely monitor the status of global sanctions and restrictions, trading conditions related to Russian securities and the credit risk and nature of our counterparties.

Global markets continue to experience disruption and volatility following the geopolitical instability from the ongoing conflicts along Israel’s border with the Gaza Strip and elsewhere in the Middle East, including the ongoing military conflict among the U.S., Israel, and Iran. Our investments and assets in our growing business in the Persian Gulf, Saudi Arabia and Israel, as well as the related global macroeconomic climate, could be negatively affected by consequences from the geopolitical instability, including disruptions in the Strait of Hormuz and military conflict throughout the region. We continue to monitor these and other geopolitical conflicts and assess their potential impact on our business.

Since 2025, the United States has introduced actions through various means to increase import tariffs at various rates, including on certain products imported from almost all countries. Other countries have responded with retaliatory actions or plans for retaliatory actions. Some of these tariff announcements have since been followed by announcements of limited exemptions and temporary pauses, and wholly new arrangements with key trading partners of the United States. These actions, along with recent legal and policy developments, have led to increased economic uncertainty, and could negatively impact global supply chains and trade flow. The potential impact of tariffs on corporate earnings remains uncertain. We continue to closely monitor the impact of these matters on our business.

Beginning on September 24, 2025, First Brands Group, LLC and certain of its affiliates (“First Brands”) filed voluntary petitions for Chapter 11 bankruptcy protection. First Brands is an aftermarket auto parts manufacturer that sells its products to major auto-parts retailers (the “Obligors”). Point Bonita Capital, a division of Leucadia Asset Management (“LAM”), managed on behalf of third-party institutional and other investors an approximately $3 billion portfolio of trade-finance assets, which was supported by total invested equity of $1.9 billion, of which $113 million, or 5.9%, is owned by LAM. Since 2019, the portfolio has included purported accounts receivable purchased from First Brands and arising from the sale of First Brands’ products to Obligors. The purchase of receivables in this fashion is called factoring, and as of the Chapter 11 filing the Point Bonita portfolio had approximately $715 million in purported receivables due from retailers, including Walmart, AutoZone, NAPA, O’Reilly Auto Parts, and Advanced Auto Parts, with First Brands, as the servicer, responsible for collecting and remitting the Obligors’ payments to Point Bonita. For almost six years until September 15, 2025, Point Bonita had been paid on time and in full. On September 15, 2025, First Brands stopped directing timely transfers of funds to Point Bonita.

The First Brands bankruptcy proceedings have uncovered what is alleged to be a massive fraud that has resulted in the bankrupt estate bringing claims against its former CEO, its former Executive Vice President, one of its significant financing counterparties, and various related entities to recover billions of dollars in allegedly fraudulent transfers. As it relates to factoring, the alleged fraudulent activities included First Brands selling certain receivables more than once, selling receivables that had been inflated in amount, and selling fabricated receivables. The Company is exerting every effort to recover assets from First Brands and from the various Obligors. That process will take months to years to complete and, given the fraud, the recovery is highly uncertain. Our investment as it relates to exposure to First Brands is valued at zero.

Point Bonita Capital's portfolio also included accounts receivable purchased from Royalline Trading Pte Ltd (subsequently


August 2026 Form 10-Q		59

renamed Radiant Corporation World Pte. Ltd) (\"Radiant\") and Sapphire Minmetals Corporation Ltd (\"Sapphire\"), and due from third-party commodity traders including Glencore, Vitol and Gunvor. Receivables purchased from these entities had been paid in full since 2021. However, starting in January 2026, purchased receivables began to enter into default. Point Bonita Capital has subsequently obtained substantial prima facie evidence that Radiant and Sapphire were engaged in a sophisticated and systematic fraud involving extensive falsification of documents. LAM Trade Finance Group II, an entity within the Point Bonita Capital fund, has now commenced proceedings against Radiant, Sapphire and their respective principals in the English High Court for deceit, conspiracy, breach of contract and restitution and has obtained a worldwide freezing order to prevent dissipation of assets by the defendants.

Separately, Apex Credit Partners LLC (“Apex”), a wholly owned subsidiary of Jefferies Finance, 50%-owned by us, manages on behalf of third-party institutional and other investors certain CLOs that invest in broadly syndicated loans with approximately $4.1 billion in assets under management. 12 CLOs managed by Apex own approximately $52 million in the aggregate of First Brands’ term loans (including PIK interest), which is approximately 1% of the CLO assets managed by Apex. Additionally, approximately, $1 million of First Brands’ term loans (including PIK interest) and $0.2 million of debt-in-possession term loans were transferred from an Apex-managed CLO warehouse to Apex in anticipation of a CLO closing in January 2026. Apex beneficially owns a portion of the equity tranche and other senior tranches in an amount to comply with applicable securitization risk-retention rules and in certain instances such additional amounts which are not material.

Off-Balance Sheet Arrangements

We have contractual commitments arising in the ordinary course of business for securities loaned or purchased under agreements to resell, repurchase agreements, future purchases and sales of foreign currencies, securities transactions on a when-issued basis, purchases and sales of corporate loans in the secondary market and underwriting. Each of these financial instruments and activities contains varying degrees of off-balance sheet risk whereby the fair values of the securities underlying the financial instruments may be in excess of, or less than, the contract amount. The settlement of these transactions is not expected to have a material effect upon our consolidated financial statements.

In the normal course of business, we engage in other off balance-sheet arrangements, including derivative contracts. Neither derivatives’ notional amounts nor underlying instrument values are reflected as assets or liabilities in our Consolidated Statements of Financial Condition. Rather, the fair values of derivative contracts are reported in our Consolidated Statements of Financial Condition as Financial instruments owned or Financial instruments sold, not yet purchased as applicable. Derivative contracts are reflected net of cash paid or received pursuant to credit support agreements and are reported on a net by counterparty basis when a legal right of offset exists under an enforceable master netting agreement. For additional information about our accounting policies and our derivative activities, refer to Note 2, Summary of Significant Accounting Policies, in our consolidated financial statements included in Part II, Item 8 of our Annual Report on Form 10-K for the year ended November 30, 2025 and Note 5, Fair Value Disclosures and Note 6, Derivative Financial Instruments in our consolidated financial statements included in this Quarterly Report on Form 10-Q.

Risk Management

Overview

Risk is an inherent part of our business and activities. The extent to which we properly and effectively identify, assess, monitor and manage each of the various types of risk involved in our activities is critical to our financial soundness, viability and profitability. Accordingly, we have a comprehensive risk management approach, with a formal governance structure and policies and procedures outlining frameworks and processes to identify, assess, monitor and manage risk. Principal risks involved in our business activities include market, credit, liquidity and capital, operational, model and strategic risk. Legal and compliance, new business and reputational risk are also included within our principal risks.

Risk management is a multifaceted process that requires communication, judgment and knowledge of financial products and markets. Our risk management process encompasses the active involvement of executive and senior management, and also many departments independent of the revenue-producing business units, including Risk Management, Operations, Information Technology, Compliance, Legal and Finance. Our risk management policies, procedures and methodologies are flexible in nature and are subject to ongoing review and modification.

In achieving our strategic business objectives, our risk appetite incorporates keeping our clients’ interests as top priority and ensuring we are in compliance with applicable laws, rules and regulations, as well as adhering to the highest ethical standards. We undertake prudent risk-taking that protects the capital base and franchise, utilizing risk limits and tolerances that avoid outsized risk-taking. We maintain a diversified business mix and avoid significant concentrations to any sector, product, geography or activity and set quantitative concentration limits to manage this risk. We consider contagion, second order effects and correlation in our risk assessment process and actively seek out value opportunities of all sizes. We manage the risk of opportunities larger than our approved risk levels through risk sharing and risk distribution, sell-down and hedging as appropriate. We have a limited appetite for illiquid assets and complex derivative financial instruments. We maintain the asset quality of our balance sheet through conducting trading activity in liquid markets and generally ensure high turnover of our inventory. We subject less liquid positions and derivative financial instruments to particular scrutiny and use a wide variety of specific metrics, limits and constraints to manage these risks. We protect our reputation and franchise, as well as our standing within the market. We operate a federated approach to risk management and assign risk oversight responsibilities to a number of functions with specific areas of focus.

For discussion of liquidity and capital risk management, refer to the “Liquidity, Financial Condition and Capital Resources” section herein.

Governance and Risk Management Structure

For a discussion of our governance and risk management structure and our risk management framework, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Risk Management” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended November 30, 2025.


60		Jefferies Financial Group Inc.

Risk Considerations

We apply a comprehensive framework of limits on a variety of key metrics to constrain the risk profile of our business activities. The size of the limits reflects our risk appetite for a certain activity under normal business conditions. Key metrics included in our risk management framework include inventory position and exposure limits on a gross and net basis, scenario analysis and stress tests, Value-at-Risk (“VaR”), sensitivities, exposure concentrations, aged inventory, Level 3 assets, counterparty exposure, leverage and cash capital.

Market Risk

Market risk is defined as the risk of loss due to fluctuations in the market value of financial assets and liabilities attributable to changes in market variables.

Our market risk principally arises from interest rate risk, from exposure to changes in the yield curve, the volatility of interest rates, and credit spreads, and from equity price risks from exposure to changes in prices and volatilities of individual equities, equity baskets and equity indices. In addition, commodity price risk results from exposure to the changes in prices and volatilities of individual commodities, commodity baskets and commodity indices, and foreign exchange risk results from changes in foreign currency rates.

Market risk is present in our capital markets business through market making, proprietary trading, underwriting and investing activities and is present in our asset management business through investments in separately managed accounts and direct investments in funds. Given our involvement in a broad set of financial products and markets, market risk exposures are diversified and economic hedges are established as appropriate.

Market risk is monitored and managed through a set of key risk metrics such as VaR, stress scenarios, risk sensitivities and position exposures. Limits are set on the key risk metrics to monitor and control the risk exposure ensuring that it is in line with our risk appetite. Our risk appetite, including the market risk limits, is periodically reviewed to reflect business strategy and market environment. Material risk changes, top/emerging risks and limit utilizations/breaches are highlighted through risk reporting and escalated as necessary.

Trading is principally managed through front office trader mandates, where each trader is provided a specific mandate in line with our product registry. Mandates set out the activities, currencies, countries and products that a desk is permitted to trade in and set the limits applicable to a desk. Traders are responsible for knowing their trading limits and trading in a manner consistent with their mandate.

VaR

VaR is a statistical estimate of the potential loss from adverse market movements over a specified time horizon within a specified probability (confidence level). It provides a common risk measure across financial instruments, markets and asset classes. We estimate VaR using a model that simulates revenue and loss distributions by applying historical market changes to the current portfolio. We calculate a one-day VaR using a one-year look-back period measured at a 95% confidence level.


	VaR at August 31, 2026	Daily Firmwide VaR
$ in millions	Daily VaR for the Three Months Ended August 31, 2026
Risk Categories	Average	High	Low
Interest Rates and Credit Spreads	$	5.89		$	6.18		$	8.74	$	4.43
Equity Prices	7.62		7.86		9.31		6.56
Currency Rates	0.46		0.54		1.97		0.25
Commodity Prices	0.63		0.62		1.46		0.20
Diversification Effect (1)	(4.21)		(4.82)		N/A	N/A
Firmwide VaR (2)	$	10.39		$	10.38		$	12.74	$	8.78


		VaR at May 31, 2026	Daily Firmwide VaR
$ in millions	Daily VaR for the Three Months Ended May 31, 2026
Risk Categories			Average	High	Low
Interest Rates and Credit Spreads				$	4.13		$	5.44		$	13.96	$	0.96
Equity Prices				8.80		8.65		9.95		5.88
Currency Rates				1.90		2.61		3.08		1.90
Commodity Prices				0.85		0.64		1.21		0.21
Diversification Effect (1)				(4.65)		(7.03)		N/A	N/A
Firmwide VaR (2)				$	11.03		$	10.31		$	11.93	$	8.09

(1)The diversification effect is not applicable for the maximum and minimum VaR values as the firmwide VaR and the VaR values for the four risk categories might have occurred on different days during the period.

(2)The aggregated VaR presented here is less than the sum of the individual components (i.e., interest rate risk, foreign exchange rate risk, equity risk and commodity price risk) due to the benefit of diversification among the four risk categories. Diversification benefit equals the difference between aggregated VaR and the sum of VaRs for the four risk categories and arises because the market risk categories are not perfectly correlated.

VaR for our capital markets trading activities, which excludes the impact on VaR for each component of market risk from our asset management activities, by interest rate and credit spreads, equity, currency and commodity products:


	VaR at August 31, 2026	Daily Capital Markets VaR
$ in millions	Daily VaR for the Three Months Ended August 31, 2026
Risk Categories	Average	High	Low
Interest Rates and Credit Spreads	$	5.66		$	5.88		$	8.29	$	4.08
Equity Prices	3.55		3.87		5.62		2.71
Currency Rates	0.26		0.35		1.36		0.18

Diversification Effect (1)	(2.76)		(2.61)		N/A	N/A
Capital Markets VaR (2)	$	6.71		$	7.49		$	9.26	$	5.84


		VaR at May 31, 2026	Daily Capital Markets VaR
$ in millions	Daily VaR for the Three Months Ended May 31, 2026
Risk Categories			Average	High	Low
Interest Rates and Credit Spreads				$	3.90		$	5.17		$	13.99	$	0.59
Equity Prices				4.20		3.99		5.15		3.00
Currency Rates				1.38		2.30		2.81		—

Diversification Effect (1)				(2.41)		(4.32)		N/A	N/A
Capital Markets VaR (2)				$	7.07		$	7.14		$	9.52	$	5.25

(1)The diversification effect is not applicable for the maximum and minimum VaR values as the capital markets VaR and the VaR values for the four risk categories might have occurred on different days during the period.


August 2026 Form 10-Q		61

The efficacy of the VaR model is tested by comparing our actual daily net revenues for those positions included in the calculation of VaR with the daily VaR estimate. This evaluation is performed at various levels, from the overall level down to specific business lines. For the VaR model, revenue is defined as principal transactions revenues, trading related commissions, revenue from securitization activities and net interest income. VaR backtesting methodologies differ for regulated entities with approved capital models.

For a 95% confidence one day VaR model (i.e., no intra-day trading), assuming current changes in market value are consistent with the historical changes used in the calculation, losses would not be expected to exceed the VaR estimates more than twelve times on an annual basis (i.e., once in every 20 days). During the three months ended August 31, 2026, there were no days when the aggregate net trading loss exceeded the 95% one day VaR.

The chart below presents our daily firmwide and capital markets VaR over the last four quarters. The fluctuations in VaR during the first, second and third quarters of 2026 were primarily driven by volatility in the equity markets.

$\"VaR$

Daily Net Trading Revenue

There were 7 days with firmwide trading losses out of a total of 64 trading days during the three months ended August 31, 2026. The histogram below presents the distribution of our actual daily net trading revenue for substantially all of our trading activities:

$\"9472\"$


62		Jefferies Financial Group Inc.

Other Risk Measures

The VaR model does not include certain positions that are best measured and monitored using sensitivity analysis. Risk Management has additional procedures in place to assure that the level of potential loss driven by those positions not in the VaR model arising from market movements are within acceptable levels. Such procedures include performing stress tests and profit and loss analysis. The table below presents the potential reduction in earnings associated with a 10% stress of the fair value of the positions that are not included in the VaR model at August 31, 2026:


$ in thousands	10% Sensitivity
Investment in funds and other (1)	$	135,837
Private investments	57,466
Corporate debt securities in default	19,159
Trade claims	9,875

(1)Primarily includes investments in hedge funds, fund of funds and private equity funds classified within Level 3 of the fair value hierarchy and excluded from the fair value hierarchy based on net asset value.

The impact of changes in our own credit spreads on our structured notes for which the fair value option was elected is not included in VaR. The estimated credit spread risk sensitivity for each one basis point widening in our own credit spreads on financial liabilities for which the fair value option was elected was an increase in value of approximately $1.9 million at August 31, 2026, which is included in other comprehensive income.

Other Risk

We are also subject to interest rate risk on our long-term fixed interest rate debt. Generally, the fair market value of debt securities with a fixed interest rate will increase as interest rates fall, and the fair market value will decrease as interest rates rise. The following table represents principal cash flows by expected maturity dates and the related weighted-average interest rate on those maturities for our consolidated long-term debt obligations, inclusive of any related interest rate hedges. For the variable rate borrowings, the weighted-average interest rates are based on the rates in effect at the reporting date. Our market risk with respect to foreign currency exposure on our long-term debt is also presented in the table below.


	Expected Maturity Date (Fiscal Years)
$ in thousands	2026	2027	2028	2029	2030	Thereafter	Total	Fair Value
Rate Sensitive Liabilities:
Fixed Interest Rate Borrowings	$	161,786		$	667,658		$	1,348,618		$	461,712		$	1,311,258	$	8,967,692	$	12,918,724	$	12,643,992
Weighted-Average Interest Rate	2.53	%	5.23	%	5.10	%	5.03	%	4.40	%	5.62	%
Variable Interest Rate Borrowings	$	13,000		$	600,000		$	525,000		$	1,317		$	—	$	1,062,592	$	2,201,909	$	2,066,695
Weighted-Average Interest Rate	6.29	%	6.54	%	6.09	%	4.66	%	—	%	5.36	%
Borrowings with Foreign Currency Exposure	$	—		$	580,800		$	145,200		$	580,800		$	—	$	2,502,502	$	3,809,302	$	3,609,829
Weighted-Average Interest Rate	—	%	3.37	%	3.29	%	4.05	%	—	%	4.91	%

Stress Tests and Scenario Analysis

Stress tests are used to analyze the potential impact of specific events or extreme market moves on the current portfolio both firm-wide and within business segments. Stress testing is an important part of our risk management approach because it allows us to quantify our exposure to tail risks, highlight potential loss concentrations, undertake risk/reward analysis, set risk controls and overall assess and mitigate our risk.

We employ a range of stress scenarios, which comprise both historical market price and rate changes and hypothetical market environments, and generally involve simultaneous changes of many risk factors. Indicative market changes in the scenarios include, but are not limited to, a large widening of credit spreads, a substantial decline in equities markets, significant moves in selected emerging markets, large moves in interest rates and changes in the shape of the yield curve.

Unlike our VaR, which measures potential losses within a given confidence interval, stress scenarios do not have an associated implied probability. Rather, stress testing is used to estimate the potential loss from market moves that tend to be larger than those embedded in the VaR calculation. Stress testing complements VaR to cover for potential limitations of VaR such as the breakdown in correlations, non-linear risks, tail risk and extreme events and capturing market moves beyond the confidence levels assumed in the VaR calculations.

Stress testing is performed and reported at least weekly as part of our risk management process and on an ad hoc basis in response to market events or concerns. Current stress tests provide estimated revenue and loss of the current portfolio through a range of both historical and hypothetical events. The stress scenarios are reviewed and assessed at least annually so that they remain relevant and up to date with market developments. Additional hypothetical scenarios are also conducted on a sub-portfolio basis to assess the impact of any relevant idiosyncratic stress events as needed.


August 2026 Form 10-Q		63

Counterparty Credit Risk

Credit risk is the risk of loss due to adverse changes in a counterparty’s credit worthiness or its ability or willingness to meet its financial obligations in accordance with the terms and conditions of a financial contract.

We are exposed to credit risk as a trading counterparty to other broker-dealers and customers, as a counterparty to derivative contracts, as a direct lender and through extending loan commitments and providing securities-based lending and as a member of exchanges and clearing organizations. Credit exposure exists across a wide range of products, including cash and cash equivalents, loans, securities finance transactions and over-the-counter derivative contracts. The main sources of credit risk are:

•Loans and lending arising in connection with our investment banking and capital markets activities, which reflects our exposure at risk on a default event with no recovery of loans. Current exposure represents loans that have been drawn by the borrower and lending commitments that are outstanding. In addition, credit exposures on forward settling traded loans are included within our loans and lending exposures for consistency with the balance sheet categorization of these items. Loans and lending also arise in connection with our portion of a Secured Revolving Credit Facility that is with us and Massachusetts Mutual Life Insurance Company, to be funded equally, to support loan underwritings by Jefferies Finance. For further information on this facility, refer to Note 10, Investments in our consolidated financial statements included in this Quarterly Report on Form 10-Q.

•Securities and margin financing transactions, which reflect our credit exposure arising from reverse repurchase agreements, repurchase agreements and securities lending agreements to the extent the fair value of the underlying collateral differs from the contractual agreement amount and from margin provided to customers.

•OTC derivatives, which are reported net by counterparty when a legal right of setoff exists under an enforceable master netting agreement. OTC derivative exposure is based on a contract at fair value, net of cash collateral received or posted under credit support agreements. In addition, credit exposures on forward settling trades are included within our derivative credit exposures.

•Cash and cash equivalents, which includes both interest-bearing and non-interest-bearing deposits at banks.

Credit is extended to counterparties in a controlled manner and in order to generate acceptable returns, whether such credit is granted directly or is incidental to a transaction. All extensions of credit are monitored and managed as a whole to limit exposure to loss related to credit risk. Credit risk is managed according to the Credit Risk Management Policy, which sets out the process for identifying counterparty credit risk, establishing counterparty limits, and managing and monitoring credit limits. The policy includes our approach for:

•Client on-boarding and approving counterparty credit limits;

•Negotiating, approving and monitoring credit terms in legal and master documentation;

•Determining the analytical standards and risk parameters for ongoing management and monitoring credit risk books;

•Actively managing daily exposure, exceptions and breaches; and

•Monitoring daily margin call activity and counterparty performance.

Counterparty credit exposure limits are granted within our credit ratings framework, as detailed in the Credit Risk Management Policy. The Credit Risk Department assesses counterparty credit risk and sets credit limits at the counterparty master agreement level. Limits must be approved by appropriate credit officers and initiated in our credit and trading systems before trading commences. All credit exposures are reviewed against approved limits on a daily basis.

Our Secured Revolving Credit Facility, which supports loan underwritings by Jefferies Finance, is governed under separate policies other than the Credit Risk Management Policy and is approved by our Board. The loans outstanding to certain of our officers and employees are extended pursuant to a review by our most senior management.

Current counterparty credit exposures at August 31, 2026 and November 30, 2025 are summarized in the tables below and provided by credit quality, region and industry. Credit exposures presented take netting and collateral into consideration by counterparty and master agreement. Collateral taken into consideration includes both collateral received as cash as well as collateral received in the form of securities or other arrangements. Current exposure is the loss that would be incurred on a particular set of positions in the event of default by the counterparty, assuming no recovery. Current exposure equals the fair value of the positions less collateral. Issuer risk is the credit risk arising from inventory positions (for example, corporate debt securities and secondary bank loans). Issuer risk is included in our country risk exposure within the following tables.


64		Jefferies Financial Group Inc.


Counterparty Credit Exposure by Credit Rating
	Loans and Lending	Securities and Margin Finance	OTC Derivatives	Total	Cash and Cash Equivalents	Total with Cash and Cash Equivalents
	At	At	At	At	At	At
$ in millions	August 31, 2026	November 30, 2025	August 31, 2026	November 30, 2025	August 31, 2026	November 30, 2025	August 31, 2026	November 30, 2025	August 31, 2026	November 30, 2025	August 31, 2026	November 30, 2025
AAA Range	$	—		$	—		$	0.6		$	10.7		$	—		$	—	$	0.6		$	10.7	$	12,712.1	$	10,140.1	$	12,712.7	$	10,150.8
AA Range	91.4		91.1		364.2		218.8		56.8		270.5		512.4		580.4		302.7	156.8		815.1		737.2
A Range	19.4		24.5		1,650.5		1,081.5		85.8		173.6		1,755.7		1,279.6		3,502.8	3,514.5		5,258.5		4,794.1
BBB Range	188.2		263.7		249.6		166.7		18.5		20.2		456.3		450.6		363.9	232.5		820.2		683.1
BB or Lower	36.2		38.4		39.4		42.6		13.4		173.8		89.0		254.8		2.1	—		91.1		254.8
Unrated	189.2		279.5		—		—		3.4		9.9		192.6		289.4		—	—		192.6		289.4
Total	$	524.4		$	697.2		$	2,304.3		$	1,520.3		$	177.9		$	648.0	$	3,006.6		$	2,865.5	$	16,883.6	$	14,043.9	$	19,890.2	$	16,909.4

Counterparty Credit Exposure by Region
	Loans and Lending	Securities and Margin Finance	OTC Derivatives	Total	Cash and Cash Equivalents	Total with Cash and Cash Equivalents
	At	At	At	At	At	At
$ in millions	August 31, 2026	November 30, 2025	August 31, 2026	November 30, 2025	August 31, 2026	November 30, 2025	August 31, 2026	November 30, 2025	August 31, 2026	November 30, 2025	August 31, 2026	November 30, 2025
Asia-Pacific/Latin America/Other	$	17.3		$	15.8		$	277.9		$	234.6		$	4.9		$	0.4	$	300.1		$	250.8	$	729.5	$	766.3	$	1,029.6	$	1,017.1
Europe and the Middle East	38.3		1.7		798.4		426.5		54.2		88.4		890.9		516.6		59.3	71.3		950.2		587.9
North America	468.8		679.7		1,228.0		859.2		118.8		559.2		1,815.6		2,098.1		16,094.8	13,206.3		17,910.4		15,304.4
Total	$	524.4		$	697.2		$	2,304.3		$	1,520.3		$	177.9		$	648.0	$	3,006.6		$	2,865.5	$	16,883.6	$	14,043.9	$	19,890.2	$	16,909.4

Counterparty Credit Exposure by Industry
	Loans and Lending	Securities and Margin Finance	OTC Derivatives	Total	Cash and Cash Equivalents	Total with Cash and Cash Equivalents
	At	At	At	At	At	At
$ in millions	August 31, 2026	November 30, 2025	August 31, 2026	November 30, 2025	August 31, 2026	November 30, 2025	August 31, 2026	November 30, 2025	August 31, 2026	November 30, 2025	August 31, 2026	November 30, 2025
Asset Managers, Funds and Investment Advisors (1)	$	322.4		$	438.6		$	115.9		$	83.6		$	0.2		$	—	$	438.5		$	522.2	$	12,717.0	$	10,140.1	$	13,155.5	$	10,662.3
Banks, Broker-Dealers	8.4		5.7		1,319.2		863.8		165.4		478.9		1,493.0		1,348.4		4,166.6	3,903.8		5,659.6		5,252.2

Corporates	129.1		145.3		—		—		11.8		165.8		140.9		311.1		—	—		140.9		311.1
As Agent Banks	—		—		788.6		529.9		—		—		788.6		529.9		—	—		788.6		529.9
Other	64.5		107.6		80.6		43.0		0.5		3.3		145.6		153.9		—	—		145.6		153.9
Total	$	524.4		$	697.2		$	2,304.3		$	1,520.3		$	177.9		$	648.0	$	3,006.6		$	2,865.5	$	16,883.6	$	14,043.9	$	19,890.2	$	16,909.4

(1)Includes a $250.0 million secured revolving credit facility to Jefferies Finance, of which $188.5 million and $250.0 million is unfunded at August 31, 2026 and November 30, 2025, respectively.


August 2026 Form 10-Q		65

Country Risk Exposure

Country risk is the risk that events or developments that occur in the general environment of a country or countries due to economic, political, social, regulatory, legal or other factors, will affect the ability of obligors of the country to honor their obligations. We define the country of risk as the country of jurisdiction or domicile of the obligor and monitor country risk resulting from both trading positions and counterparty exposure, which may not include the offsetting benefit of any financial instruments utilized to manage market risk. The following tables reflect our top ten exposures at August 31, 2026 and November 30, 2025 to the sovereign governments, corporations and financial institutions in those non- U.S. countries in which we have net long issuer and counterparty exposure:


	August 31, 2026
	Issuer Risk	Counterparty Risk	Issuer and Counterparty Risk
$ in millions	Fair Value of Long Debt Securities	Fair Value of Short Debt Securities	Net Derivative Notional Exposure	Loans and Lending	Securities and Margin Finance	OTC Derivatives	Cash and Cash Equivalents	Excluding Cash and Cash Equivalents	Including Cash and Cash Equivalents
United Kingdom	$	1,869.4		$	(923.2)		$	(593.4)		$	36.0	$	196.9		$	50.6	$	0.6	$	636.3	$	636.9
France	1,051.1		(552.1)		(211.9)		0.3		279.8		—	1.4		567.2		568.6
Japan	2,615.9		(2,594.2)		70.0		—		88.1		0.4	156.5		180.2		336.7
Hong Kong	440.0		(392.2)		(2.7)		—		16.0		—	234.5		61.1		295.6
Italy	862.7		(1,525.7)		923.9		—		0.3		2.5	1.4		263.7		265.1
Canada	158.9		(91.3)		18.4		0.2		49.3		88.1	0.3		223.6		223.9
Spain	927.2		(616.9)		(167.7)		—		76.7		—	1.4		219.3		220.7
India	21.3		(15.9)		(0.4)		—		—		—	190.8		5.0		195.8
Taiwan	2,174.4		(2,314.0)		175.9		—		140.8		—	—		177.1		177.1
Australia	647.0		(555.0)		(53.0)		1.5		11.6		—	122.1		52.1		174.2
Total	$	10,767.9		$	(9,580.5)		$	159.1		$	38.0	$	859.5		$	141.6	$	709.0	$	2,385.6	$	3,094.6


	November 30, 2025
	Issuer Risk	Counterparty Risk	Issuer and Counterparty Risk
$ in millions	Fair Value of Long Debt Securities	Fair Value of Short Debt Securities	Net Derivative Notional Exposure	Loans and Lending	Securities and Margin Finance	OTC Derivatives	Cash and Cash Equivalents	Excluding Cash and Cash Equivalents	Including Cash and Cash Equivalents
Canada	$	175.2		$	(152.5)		$	46.3		$	—	$	56.9		$	373.3	$	—	$	499.2	$	499.2
United Kingdom	1,391.5		(806.6)		(260.2)		0.9		44.6		84.1	7.8		454.3		462.1
Hong Kong	54.6		(41.0)		1.7		—		24.3		—	294.9		39.6		334.5
Australia	837.8		(611.8)		(87.4)		—		11.6		0.2	92.8		150.4		243.2
France	628.5		(405.8)		(131.4)		0.9		149.2		—	0.1		241.4		241.5
Japan	1,570.6		(1,929.7)		364.7		—		67.6		0.1	140.0		73.3		213.3
Spain	546.6		(341.8)		(76.3)		—		74.9		0.2	1.1		203.6		204.7
India	19.9		(17.8)		0.6		—		—		—	198.9		2.7		201.6
Sweden	250.9		(168.4)		52.7		—		—		—	10.5		135.2		145.7
Taiwan	1,119.2		(903.9)		(172.2)		—		101.5		—	—		144.6		144.6
Total	$	6,594.8		$	(5,379.3)		$	(261.5)		$	1.8	$	530.6		$	457.9	$	746.1	$	1,944.3	$	2,690.4

Operational Risk

Operational risk is the risk of financial or non-financial impact, resulting from inadequate or failed internal processes, people and systems or from external events. We interpret this definition as including not only financial loss or gain but also other negative impacts to our objectives such as reputational impact, legal/regulatory impact and impact on our clients. Third-party risk is also included as a subset of operational risk and is defined as the potential threat presented to us, our employees or clients from our supply chain and other third parties used to perform a process, service or activity on our behalf.

Our Operational Risk framework includes governance as well as operational risk processes, comprises operational risk event capture and analysis, risk and control self-assessments, operational risk key indicators, action tracking, risk monitoring and reporting, deep dive risk assessments, new business approvals and vendor risk management. Each revenue producing and support department is responsible for the management and reporting of operational risks and the implementation of the Operational Risk Management Policy and processes within the department with regular operational risk training provided to our employees.

Operational risk events are mapped to risk categories used for the consistent classification of risk data to support root cause and trend analysis, which includes:

•Fraud and Theft

•Clients and Business Practices

•Market Conduct / Regulatory Compliance

•Business Disruption

•Technology

•Data Protection and Privacy

•Trading

•Transaction and Process Management

•People

•Cybersecurity

•Vendor Risk

Our Operational Risk Management Policy and operational risk management framework, infrastructure, methodology, processes, guidance and oversight of the operational risk processes are centralized and consistent firmwide and, additionally, subject to regional and legal entity operational risk governance, as required.


66		Jefferies Financial Group Inc.

We also maintain a Third-Party (“Vendor”) Risk Management Policy and Framework to ensure adequate control and monitoring over our critical third parties, which includes processes for conducting periodic reviews covering areas of risk including financial health, information security, privacy, business continuity management, disaster recovery and operational risk of our vendors.

Model Risk

Model risk refers to the risk of loss resulting from decisions that are based on the output of models, due to errors or weaknesses in the design and development, implementation or improper use of models. We use quantitative models primarily to value certain financial assets and liabilities and to monitor and manage our risk. Model risk is a function of the model materiality, frequency of use, complexity and uncertainty around inputs and assumptions used in a given model. Robust model risk management is a core part of our risk management approach and is overseen through our risk governance structure and risk management controls.

Legal and Compliance Risk

Legal and compliance risk includes the risk of noncompliance with applicable legal and regulatory requirements. We are subject to extensive regulation in the different jurisdictions in which we conduct our business. We have various procedures addressing issues such as regulatory capital requirements, sales and trading practices, use of and safekeeping of customer funds, credit granting, collection activities, anti-money laundering and record keeping. These risks also reflect the potential impact that changes in local and international laws and tax statutes have on the economics and viability of current or future transactions. In an effort to mitigate these risks, we continuously review new and pending regulations and legislation and participate in various industry interest groups. We also maintain an anonymous hotline for employees or others to report suspected inappropriate actions by us or by our employees or agents.

New Business Risk

New business risk refers to the risks of entering into a new line of business or offering a new product. By entering a new line of business or offering a new product, we may face risks that we are unaccustomed to dealing with and may increase the magnitude of the risks we currently face. The New Business Committee reviews proposals for new businesses and new products to determine if we are prepared to handle the additional or increased risks associated with entering into such activities.

Reputational Risk

We recognize that maintaining our reputation among clients, investors, regulators and the general public is an important aspect of minimizing legal and operational risks. Maintaining our reputation depends on a large number of factors, including the selection of our clients and the conduct of our business activities. We seek to maintain our reputation by screening potential clients and by conducting our business activities in accordance with high ethical standards. Our reputation and business activity can be affected by statements and actions of third parties, even false or misleading statements by them. We actively monitor public comment concerning us and are vigilant in seeking to assure accurate information and perception prevails.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Quantitative and qualitative disclosures about market risk are set forth under “Management’s Discussion and Analysis of Financial Condition and Results of Operations —Risk Management” in Part I, Item 2 of this Form 10-Q.

Item 4. Controls and Procedures

Our Management, under the direction of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of August 31, 2026. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures as of August 31, 2026 are functioning effectively to provide reasonable assurance that the information required to be disclosed by us in reports filed under the Securities Exchange Act of 1934 is (i) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding disclosure. A controls system cannot provide absolute assurance that the objectives of the controls system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected.

No change in our internal control over financial reporting occurred during the quarter ended August 31, 2026 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.


August 2026 Form 10-Q		67

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Many aspects of our business involve substantial risks of legal and regulatory liability. In the normal course of business, we have been named as defendants or co-defendants in lawsuits involving primarily claims for damages. We are also involved in a number of judicial and regulatory matters, including exams, investigations and similar reviews, arising out of the conduct of our business. Based on currently available information, we do not believe that any matter will have a material adverse effect on our consolidated financial statements.

Item 1A. Risk Factors

Information regarding our risk factors appears in Item 1A. of our Annual Report on Form 10-K for the year ended November 30, 2025. These risk factors describe some of the assumptions, risks, uncertainties and other factors that could adversely affect our business or that could otherwise result in changes that differ materially from our expectations.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(a) We did not have any unregistered sales of equity securities during the three months ended August 31, 2026.

Purchases of our common shares during the three months ended August 31, 2026:


$ in thousands, except share and per share amounts	(a) Total Number of Shares Purchased (1)	(b) Average Price Paid per Share (2)	(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	(d) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (2)
June 1, 2026 to June 30, 2026	412,013		$	49.26	400,000	$	230,340
July 1, 2026 to July 31, 2026	839,484		$	52.72	827,072	$	186,705
August 1, 2026 to August 31, 2026	76,920		$	56.00	72,928	$	182,611
Total	1,328,417		$	51.84	1,300,000

(1)An aggregate 28,417 shares repurchased other than as part of our publicly announced Board authorized repurchase program. We repurchased securities in connection with our share compensation plans which allow participants to satisfy certain tax liabilities arising from the vesting of restricted shares and the distribution of restricted share units with shares.

(2)Average price paid per share excludes the 1% excise tax on the net amount of our share repurchases required by the Inflation Reduction Act of 2022.

Item 5. Other Information

Rule 10b5-1 Trading Plans

During the three months ended August 31, 2026, no directors or executive officers entered into, modified or terminated, contracts, instructions or written plans for the sale or purchase of the Company’s securities that were intended to satisfy the affirmative defense conditions of Rule 10b5-1.

Item 6. Exhibits


Exhibit No.	Description
3.1	Restated Certificate of Incorporation of Jefferies Financial Group Inc. is incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K filed on March 31, 2026. *
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. **
32.2	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. **
101	Interactive Data Files pursuant to Rule 405 of Regulation S-T, formatted in Inline Extensible Business Reporting Language (iXBRL).
104	Cover page interactive data file pursuant to Rule 406 of Regulation S-T, formatted in iXBRL (included in exhibit 101)


*	Incorporated by reference.
**	Furnished herewith pursuant to item 601(b) (32) of Regulation S-K.


68		Jefferies Financial Group Inc.

Signatures

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



Jefferies Financial Group Inc.

/s/ MATT LARSON
Matt Larson
Executive Vice President and Chief Financial Officer

Dated: October 9, 2026


August 2026 Form 10-Q		69

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