Jefferies' 10-Q Shows A $23.3 Million Higher Quarterly Profit Than Its September 28 Release
A post-closing tax adjustment lifted net earnings to common shareholders and cut income tax expense by $24.2 million.
Jefferies Financial Group's 10-Q, filed Friday, reports quarterly profit that is higher than the figures in its September 28 earnings release. The firm says post-closing adjustments for excess tax benefits on share-based awards added $23.3 million to net earnings attributable to common shareholders for the three months ended August 31, and $22.1 million for the nine months.
The finding: a tax adjustment after the release
The 10-Q says its results differ from those in the Form 8-K dated September 28. Income tax expense was $24.2 million lower in both periods.
Net earnings attributable to common shareholders were $283.9 million, against $224.0 million a year earlier. Earnings before income taxes rose to $351.0 million from $331.8 million.
Income tax expense was $62.8 million, versus $89.3 million a year earlier. The effective tax rate was 17.9% for the quarter, against 26.9% a year earlier. For nine months it was 20.6%, against 23.8%. The prior quarter's filing showed 20.8% for the three months ended May 31.
The 10-Q attributes the lower rate to the excess tax benefits on share-based awards, investment tax credits and lower state and local taxes.
The balance sheet moved with it
The benefit lifted both total assets and shareholders' equity by $24.2 million, to $81.30 billion and $10.71 billion.
The tax change did not touch revenue. Net revenues were $2.22 billion, up 8.5% from $2.05 billion a year earlier.
What moved the other way
Fixed income net revenues were $176.0 million in the quarter, down 25.6% from $236.7 million. For nine months they were $594.8 million, down 15.5%. The filing says credit markets stayed challenging for the products where the firm is most active.
The nine-month figure includes a gross mark-to-market loss of $64.7 million tied to Market Financial Solutions in the securitized products business.
Equities and advisory ran the other way. Equities net revenues were $626.2 million, up 28.7%, which the firm calls its strongest quarter on record. Advisory revenue was $817.8 million, up 24.7%.
Other items in the filing
Stratos Group International, a Jefferies subsidiary, has agreed since quarter-end to sell nearly all its operations and assets to AvaTrade Markets. The 10-Q says the sale of Tessellis is expected to close in the first quarter of 2027.
Sumitomo Mitsui Banking Corporation (SMBC) held 19.6% of Jefferies' common stock at August 31, fully diluted. The board declared a $0.40 dividend on September 28, payable November 25 to holders of record on November 16.
Jefferies' next quarterly filing will show whether the excess-tax-benefit effect recurs or the effective tax rate drifts back toward last year's 26.9%.
Sources
- 10-Q Filing — Jefferies Financial (JEF) — SEC EDGAR
- 10-Q Filing — Jefferies Financial (JEF), Q2 FY2026 filed 2026-07-09 (comparison basis) — SEC EDGAR
