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Jefferies Q2 Earnings Fall 40% on Equity Underwriting Weakness; Advisory Fees Up 61%

Jefferies expects a rebound in late 2025 with improving activity levels alongside a strong deal pipeline

General view of Jefferies Financial Group offices in Manhattan, New York City, U.S., December 8, 2021. REUTERS/Eduardo Munoz/File Photo
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Overview

  • Jefferies reported net earnings of $88 million ($0.40 per share) for the quarter ended May 31, down 40% from a year earlier.
  • Equity underwriting revenue fell 51% to $122.4 million as market volatility and policy uncertainty held back deal formation.
  • Advisory revenue surged 61% to $457.9 million, driven by market-share gains in merger and acquisition advisory.
  • Total investment banking revenue slipped 2.7% to $766.3 million while capital markets revenue edged down 0.4% to $704.2 million.
  • CEO Rich Handler and President Brian Friedman highlighted a robust backlog and active client discussions as foundations for a late-2025 rebound.