Jefferies (NYSE:JEF) Reports Q4 CY2025 Revenue Surpassing Expectations

Jefferies Financial Group Surpasses Revenue Forecasts in Q4 2025

Jefferies Financial Group (NYSE:JEF), a leading investment banking institution, posted its fourth quarter results for calendar year 2025, outperforming revenue projections with a 5.7% year-over-year increase to $2.07 billion. However, its GAAP earnings per share came in at $0.85, falling 10% short of analyst expectations.

Q4 2025 Performance Highlights

• Total Revenue: $2.07 billion, surpassing the $2.01 billion consensus (5.7% annual growth, 3% above estimates)
• Pre-tax Income: $253.2 million, representing a 12.2% margin
• GAAP EPS: $0.85, compared to the expected $0.94 (10% below forecast)
• Tangible Book Value Per Share: $33.69, nearly matching the $33.79 estimate (down 14.6% year-over-year)
• Market Value: $13.67 billion

About Jefferies Financial Group

Founded in 1962 and adopting its current name in 2018 after operating as Leucadia National Corporation, Jefferies Financial Group is a global player in investment banking and capital markets. The firm offers advisory, securities trading, and asset management services to corporations, institutions, and high-net-worth clients.

Evaluating Revenue Trends

Consistent sales growth is a key indicator of a company’s strength. While any business can deliver strong results in the short term, sustained expansion is a hallmark of quality. Over the past five years, Jefferies has achieved a modest compound annual revenue growth rate of 4.1%, which is below the financial sector average and sets a low bar for further analysis.

Jefferies Quarterly Revenue

Although long-term performance is crucial, recent shifts in interest rates and market conditions can significantly impact financial firms. Notably, Jefferies’ revenue has grown at an impressive 25% annualized rate over the last two years, outpacing its five-year average and indicating a recent uptick in demand.

Jefferies Year-On-Year Revenue Growth

This quarter, Jefferies delivered a 5.7% increase in revenue compared to the same period last year, beating Wall Street’s projections by 3%.

Discover More Growth Opportunities

Understanding Tangible Book Value Per Share (TBVPS)

Financial companies with diverse operations manage intricate balance sheets, and market valuations often reflect the importance of financial stability and consistent book value growth. TBVPS is a crucial metric, as it measures the real net worth per share across all business lines, offering a transparent view of shareholder equity regardless of operational complexity. In contrast, EPS can be skewed by mergers, acquisitions, and varying accounting methods, making book value a more reliable indicator of performance.

Over the past five years, Jefferies’ TBVPS has grown at a slow 2.4% annual rate. However, in the last two years, this trend has reversed, with TBVPS declining by 3.8% annually, dropping from $36.39 to $33.69 per share.

Jefferies Quarterly Tangible Book Value per Share

Given the multifaceted nature of financial institutions, TBVPS stands out as a key measure of financial health. It reflects the company’s liquid net worth per share, providing a clearer picture of overall stability than EPS, which can be distorted by complex revenue streams and accounting practices.

Jefferies’ TBVPS has shown only modest growth over five years, and more recently, it has declined, highlighting challenges in maintaining shareholder value.

Jefferies Quarterly Tangible Book Value per Share

Summary of Jefferies’ Q4 Results

Jefferies exceeded revenue expectations this quarter, but its earnings per share fell short. Overall, the quarter was relatively weak, with shares dropping 3.3% to $62.55 immediately after the announcement.

While the latest earnings were underwhelming, a single quarter does not define the company’s long-term prospects. For a deeper analysis of Jefferies’ investment potential, including a look at its fundamentals and valuation, read our full research report, available for free to active Edge members.