Jefferies Financial Group Inc. 10-Q

Item 1. Financial Statements. Consolidated Statements of Financial Condition (Unaudited) May 31, November 30, $ in thousands, except share and per share amounts 2026 2025 Assets Cash and cash equivalents $ 14,314,804 $ 14,043,889 Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations 1,135,859 917,697 Financial instruments owned, at fair value (includes securities pledged of $ 15,400,089 and $ 17,419,373 ) 28,038,115 27,722,739 Investments in and loans to related parties 1,555,117 1,496,125 Securities borrowed 9,729,918 8,295,161 Securities purchased under agreements to resell 9,407,203 8,449,107 Securities received as collateral, at fair value 310,813 200,495 Receivables: Brokers, dealers and clearing organizations 3,269,022 4,310,143 Customers 4,187,519 3,439,921 Fees, interest and other 848,830 806,324 Premises and equipment 1,190,750 1,246,470 Goodwill 1,725,481 1,837,570 Assets held for sale 295,156 — Other assets (includes assets pledged of $ 717,897 and $ 627,259 ) 3,531,359 3,246,706 Total assets $ 79,539,946 $ 76,012,347 Liabilities and Equity Short-term borrowings $ 1,603,482 $ 1,767,206 Financial instruments sold, not yet purchased, at fair value 14,547,022 13,320,152 Securities loaned 3,104,614 2,540,759 Securities sold under agreements to repurchase 11,318,047 12,156,737 Other secured financings (includes $ 415,801 and $ 425,964 at fair value) 2,310,736 2,885,878 Obligation to return securities received as collateral, at fair value 310,813 200,495 Payables: Brokers, dealers and clearing organizations 6,385,622 6,955,100 Customers 7,122,654 5,216,714 Lease liabilities 550,928 594,097 Liabilities held for sale 299,760 — Accrued expenses and other liabilities 3,337,495 3,836,709 Long-term debt (includes $ 3,860,273 and $ 3,734,843 at fair value) 18,040,982 15,895,891 Total liabilities 68,932,155 65,369,738 Mezzanine Equity Redeemable noncontrolling interests 406 406 Equity Series B preferred shares, par value of $ 1 per share, authorized 70,000 shares; 55,125 shares issued and outstanding 55 55 Voting common shares, par value $ 1 per share, authorized 552,264,500 and 565,000,000 shares; 194,145,489 and 206,296,167 shares issued and outstanding, after deducting 126,972,581 and 114,821,903 shares held in treasury 194,145 206,296 Non-voting common shares, par value $ 1 per share, authorized 47,735,500 and 35,000,000 , shares; 9,247,081 and 0 shares issued and outstanding 9,247 — Additional paid-in capital 1,915,162 2,177,954 Accumulated other comprehensive loss ( 356,043 ) ( 384,434 ) Retained earnings 8,804,430 8,574,825 Total Jefferies Financial Group Inc. shareholders' equity 10,566,996 10,574,696 Noncontrolling interests 40,389 67,507 Total equity 10,607,385 10,642,203 Total liabilities and equity $ 79,539,946 $ 76,012,347 See accompanying notes to consolidated financial statements. 2 Jefferies Financial Group Inc. Consolidated Statements of Earnings (Unaudited) Three Months Ended May 31, Six Months Ended May 31, $ in thousands, except per share amounts 2026 2025 2026 2025 Revenues Investment banking $ 1,209,625 $ 789,269 $ 2,227,909 $ 1,518,779 Principal transactions 488,666 338,507 976,164 745,737 Commissions and other fees 400,614 353,233 768,218 641,533 Asset management fees and revenues 9,788 20,076 77,150 105,484 Interest 853,962 878,025 1,667,081 1,723,196 Other 155,542 115,205 272,940 232,450 Total revenues 3,118,197 2,494,315 5,989,462 4,967,179 Interest expense 911,746 859,868 1,765,881 1,739,713 Net revenues 2,206,451 1,634,447 4,223,581 3,227,466 Non-interest expenses Compensation and benefits 1,188,245 854,839 2,274,135 1,695,966 Brokerage and clearing fees 147,446 129,745 280,578 239,181 Underwriting costs 26,858 14,525 58,241 32,371 Technology and communications 162,860 146,198 322,718 285,673 Occupancy and equipment rental 34,499 30,711 68,359 60,910 Business development 89,108 80,070 164,530 152,361 Professional services 98,707 77,768 175,651 150,234 Depreciation and amortization 47,328 52,253 104,193 83,241 Cost of sales 31,253 42,961 61,173 84,529 Other expenses 64,598 70,476 186,238 157,034 Total non-interest expenses 1,890,902 1,499,546 3,695,816 2,941,500 Earnings before income taxes 315,549 134,901 527,765 285,966 Income tax expense 65,571 43,506 118,441 57,722 Net earnings 249,978 91,395 409,324 228,244 Net losses attributable to noncontrolling interests ( 5,440 ) ( 7,668 ) ( 21,298 ) ( 14,651 ) Preferred stock dividends 29,184 11,046 48,461 26,940 Net earnings attributable to common shareholders $ 226,234 $ 88,017 $ 382,161 $ 215,955 ​ Earnings per voting common share (1) Basic $ 1.05 $ 0.41 $ 1.75 $ 1.01 Diluted $ 1.02 $ 0.40 $ 1.70 $ 0.97 Basic weighted-average common shares outstanding 210,269 215,097 214,766 214,818 Diluted weighted-average common shares outstanding 216,744 221,897 221,947 222,383 ​ Earnings per non-voting common share (1) Basic $ 1.71 $ — $ 3.04 $ — Diluted $ 1.13 $ — $ 1.83 $ — Basic weighted-average common shares outstanding 3,518 — 1,778 — Diluted weighted-average common shares outstanding 31,081 — 29,341 — (1) Although voting and non-voting common shares have identical dividend rates, basic and diluted earnings per common share differ due to the timing of share activity during the quarter. Refer to Note 16, Total Equity, for further discussion. See accompanying notes to consolidated financial statements. May 2026 Form 10-Q 3 Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended May 31, Six Months Ended May 31, $ in thousands 2026 2025 2026 2025 Net earnings $ 249,978 $ 91,395 $ 409,324 $ 228,244 Other comprehensive income (loss), net of tax: Currency translation adjustments and other (1) ( 5,193 ) 46,769 3,986 31,447 Changes in fair value related to instrument-specific credit risk (2) ( 36,481 ) 21,571 23,167 51,827 Cash flow hedges ( 254 ) — ( 254 ) — Unrealized gains on available-for-sale-securities 908 37 1,492 162 Total other comprehensive income (loss), net of tax ( 41,020 ) 68,377 28,391 83,436 Comprehensive income 208,958 159,772 437,715 311,680 Net losses attributable to noncontrolling interests ( 5,440 ) ( 7,668 ) ( 21,298 ) ( 14,651 ) Preferred stock dividends 29,184 11,046 48,461 26,940 Comprehensive income attributable to common shareholders $ 185,214 $ 156,394 $ 410,552 $ 299,391 (1) Includes income tax expense of $ 1.0 million and $ 5.5 million for the three and six months ended May 31, 2026, respectively, and income tax expense of $ 14.6 million and $ 10.1 million for the three and six months ended May 31, 2025, respectively. (2) Includes income tax benefit of $ 11.2 million for the three months ended May 31, 2026 and income tax expense of $ 7.8 million for the six months ended May 31, 2026. Includes income tax expense of $ 7.9 million and $ 18.6 million for the three and six months ended May 31, 2025, respectively. See accompanying notes to consolidated financial statements. 4 Jefferies Financial Group Inc. Consolidated Statements of Changes in Equity (Unaudited) Three Months Ended May 31, Six Months Ended May 31, $ in thousands, except par value and per share amounts 2026 2025 2026 2025 Preferred shares $1 par value Balance, beginning of period $ 55 $ 55 $ 55 $ 55 Balance, end of period $ 55 $ 55 $ 55 $ 55 Voting common shares $1 par value Balance, beginning of period $ 204,423 $ 206,250 $ 206,296 $ 205,504 Purchase of common shares for treasury ( 3,962 ) ( 23 ) ( 6,958 ) ( 719 ) Exchange of 9,247,081 voting for non-voting common shares ( 9,247 ) — ( 9,247 ) — Other 2,931 45 4,054 1,487 Balance, end of period $ 194,145 $ 206,272 $ 194,145 $ 206,272 Non-voting common shares $1 par value Balance, beginning of period $ — $ — $ — $ — Exchange of 9,247,081 voting for non-voting common shares 9,247 — 9,247 — Balance, end of period $ 9,247 $ — $ 9,247 $ — Additional paid-in capital Balance, beginning of period $ 2,075,065 $ 2,094,138 $ 2,177,954 $ 2,104,199 Share-based compensation expense 22,925 18,193 73,597 53,830 Purchase of common shares for treasury ( 193,449 ) ( 1,227 ) ( 364,756 ) ( 56,849 ) Dividend equivalents 5,513 8,354 16,421 16,951 Change in equity interest related to consolidated subsidiaries — ( 1,976 ) 4,606 ( 1,123 ) Other 5,108 11,876 7,340 12,350 Balance, end of period $ 1,915,162 $ 2,129,358 $ 1,915,162 $ 2,129,358 Accumulated other comprehensive loss, net of tax Balance, beginning of period $ ( 315,023 ) $ ( 408,072 ) $ ( 384,434 ) $ ( 423,131 ) Other comprehensive (loss) income, net of taxes ( 41,020 ) 68,377 28,391 83,436 Balance, end of period $ ( 356,043 ) $ ( 339,695 ) $ ( 356,043 ) $ ( 339,695 ) Retained earnings Balance, beginning of period $ 8,646,325 $ 8,311,857 $ 8,574,825 $ 8,270,145 Net earnings attributable to Jefferies Financial Group Inc. 255,418 99,063 430,622 242,895 Dividends - common shares ($ 0.40 , $ 0.40 , $ 0.80 , $ 0.80 per share) ( 86,293 ) ( 90,860 ) ( 178,967 ) ( 181,955 ) Dividends - preferred shares ( 11,025 ) ( 11,025 ) ( 22,050 ) ( 22,050 ) Other 5 — — — Balance, end of period $ 8,804,430 $ 8,309,035 $ 8,804,430 $ 8,309,035 Total Jefferies Financial Group Inc. shareholders' equity $ 10,566,996 $ 10,305,025 $ 10,566,996 $ 10,305,025 Noncontrolling interests Balance, beginning of period $ 50,883 $ 64,211 $ 67,507 $ 68,215 Net losses attributable to noncontrolling interests ( 5,440 ) ( 7,668 ) ( 21,298 ) ( 14,651 ) Contributions 562 17,350 681 17,454 Distributions ( 5,911 ) ( 1,528 ) ( 7,429 ) ( 4,323 ) Other 295 4,784 928 10,454 Balance, end of period $ 40,389 $ 77,149 $ 40,389 $ 77,149 Total equity $ 10,607,385 $ 10,382,174 $ 10,607,385 $ 10,382,174 See accompanying notes to consolidated financial statements. May 2026 Form 10-Q 5 Consolidated Statements of Cash Flows (Unaudited) Six Months Ended May 31, $ in thousands 2026 2025 Cash flows from operating activities: Net earnings $ 409,324 $ 228,244 Adjustments to reconcile net earnings to net cash used in operating activities: Depreciation and amortization 82,305 88,454 Impairment of assets 65,413 — Share-based compensation 73,597 53,830 Net bad debt expense 24,380 13,463 Income on investments in and loans to related parties ( 46,289 ) ( 15,162 ) Distributions received on investments in related parties 26,846 28,593 Other adjustments 71,957 184,362 Net change in assets and liabilities: Receivables: Brokers, dealers and clearing organizations 1,035,793 ( 90,224 ) Customers ( 747,599 ) ( 158,094 ) Fees, interest and other ( 82,695 ) ( 143,594 ) Securities borrowed ( 1,440,729 ) ( 622,392 ) Financial instruments owned ( 348,992 ) ( 1,241,243 ) Securities purchased under agreements to resell ( 976,401 ) ( 1,266,238 ) Other assets ( 253,766 ) ( 205,378 ) Payables: Brokers, dealers and clearing organizations ( 562,978 ) 112,293 Customers 1,905,940 192,801 Securities loaned 569,268 ( 509,851 ) Financial instruments sold, not yet purchased 1,250,926 727,110 Securities sold under agreements to repurchase ( 828,336 ) ( 217,150 ) Lease liabilities ( 41,903 ) ( 33,240 ) Accrued expenses and other liabilities ( 323,925 ) ( 770,081 ) Net cash used in operating activities ( 137,864 ) ( 3,643,497 ) Cash flows from investing activities: Contributions to investments in and loans to related parties ( 210,679 ) ( 111,087 ) Capital distributions from investments and repayments of loans from related parties 111,385 47,190 Net payments on premises and equipment ( 112,864 ) ( 93,247 ) Net cash used in investing activities ( 212,158 ) ( 157,144 ) Cash flows from financing activities: Proceeds from short-term borrowings 4,191,712 4,744,829 Payments on short-term borrowings ( 4,431,779 ) ( 3,852,844 ) Proceeds from issuance of long-term debt, net of issuance costs 4,818,221 2,635,540 Repayment of long-term debt ( 2,668,443 ) ( 960,857 ) Purchase of common shares for treasury ( 371,714 ) ( 57,568 ) Dividends paid to common and preferred shareholders ( 184,596 ) ( 187,054 ) Net proceeds from (payments on) other secured financings ( 569,215 ) 556,902 Net change in bank overdrafts 82,132 ( 22,945 ) Proceeds from contributions of noncontrolling interests 681 16,354 Payments on distributions to noncontrolling interests ( 7,429 ) ( 3,223 ) Other 16,000 16,134 Net cash provided by financing activities 875,570 2,885,268 Effect of exchange rate changes on cash, cash equivalents, and restricted cash ( 4,836 ) 61,470 Change in cash, cash equivalents, and restricted cash reclassified from (to) assets held for sale ( 31,635 ) — Net increase (decrease) in cash, cash equivalents, and restricted cash 520,712 ( 853,905 ) Cash, cash equivalents, and restricted cash at beginning of period 14,961,586 13,165,612 Cash, cash equivalents, and restricted cash at end of period $ 15,450,663 $ 12,311,707 6 Jefferies Financial Group Inc. Consolidated Statements of Cash Flows (Unaudited) Six Months Ended May 31, $ in thousands 2026 2025 Supplemental disclosures of cash flow information: Cash paid during the period for: Interest $ 1,693,886 $ 1,716,136 Income taxes, net (1) 180,350 53,197 (1) Includes the purchase of tax credits in the aggregate of $ 56.2 million for the six months ended May 31, 2026. Noncash investing activities: During the six months ended May 31, 2026, we exchanged real estate properties with a fair market value of $ 40.0 million. During the six months ended May 31, 2025, we donated land with a fair market value of $ 5.7 million. Cash, cash equivalents and restricted cash by category in our Consolidated Statements of Financial Condition: May 31, November 30, $ in thousands 2026 2025 Cash and cash equivalents $ 14,314,804 $ 14,043,889 Cash on deposit for regulatory purposes with clearing and depository organizations 1,135,859 917,697 Total cash, cash equivalents and restricted cash $ 15,450,663 $ 14,961,586 See accompanying notes to consolidated financial statements. May 2026 Form 10-Q 7 Notes to Consolidated Financial Statements (Unaudited) Index Page Note 1. Organization and Basis of Presentation 9 Note 2. Summary of Significant Accounting Policies 9 Note 3. Accounting Developments 9 Note 4. Assets and Liabilities Held for Sale 10 Note 5. Fair Value Disclosures 11 Note 6. Derivative Financial Instruments 22 Note 7. Collateralized Transactions 25 Note 8. Securitization Activities 26 Note 9. Variable Interest Entities 27 Note 10. Investments 30 Note 11. Credit Losses on Financial Assets Measured at Amortized Cost 33 Note 12. Goodwill and Intangible Assets 33 Note 13. Revenues from Contracts with Customers 34 Note 14. Compensation Plans 35 Note 15. Borrowings 36 Note 16. Total Equity 38 Note 17. Income Taxes 41 Note 18. Commitments, Contingencies and Guarantees 41 Note 19. Regulatory Requirements 43 Note 20. Segment Reporting 43 Note 21. Related Party Transactions 45 8 Jefferies Financial Group Inc. Notes to Consolidated Financial Statements (Unaudited) Note 1. Organization and Basis of Presentation Organization Jefferies Financial Group Inc. is a U.S.-headquartered global investment banking and capital markets firm. The accompanying consolidated financial statements represent the accounts of Jefferies Financial Group Inc. and subsidiaries (together, the “Company,” “we” or “us”). We, collectively with our consolidated subsidiaries and through our affiliates, deliver a broad range of financial services across investment banking, capital markets and asset management. 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 our investment banking business, which provides underwriting and financial advisory services to our clients. We operate in the Americas; Europe and the Middle East; and Asia-Pacific. Investment Banking and Capital Markets also includes our corporate lending joint venture (“Jefferies Finance LLC” or “Jefferies Finance”), and our commercial real estate joint venture (“Berkadia Commercial Mortgage Holding LLC” or “Berkadia”). The Asset Management reportable business segment provides alternative investment management services to investors globally and generates investment income from capital invested in and managed by us or our affiliated asset managers, and includes certain remaining businesses and assets of our legacy merchant banking portfolio. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and should be read in conjunction with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended November 30, 2025. Certain footnote disclosures included in our Annual Report on Form 10-K for the year ended November 30, 2025 have been condensed or omitted from the consolidated financial statements as they are not required for interim reporting under U.S. GAAP. The consolidated financial statements reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for the fair presentation of the results for the interim period. The results presented in our consolidated financial statements for interim periods are not necessarily indicative of the results for the entire year. We have made a number of estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during the reporting period to prepare these consolidated financial statements in conformity with U.S. GAAP. The most important of these estimates and assumptions relate to fair value measurements, compensation and benefits, goodwill and intangible assets and the accounting for income taxes. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. Certain prior period amounts in our consolidated financial statements and respective notes have been reclassified to be consistent with the current period presentation. Such reclassifications had no impact on net earnings, total assets, total liabilities or stockholders’ equity. Consolidation Our policy is to consolidate all entities that we control by ownership of a majority of the outstanding voting stock. In addition, we consolidate entities that meet the definition of a variable interest entity (“VIE”) for which we are the primary beneficiary. The primary beneficiary is the party who has the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and who has 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. For consolidated entities that are less than wholly-owned, the third-party’s holding of equity interest is presented as Noncontrolling interests in our Consolidated Statements of Financial Condition and Consolidated Statements of Changes in Equity. The portion of net earnings attributable to the noncontrolling interests is presented as Net earnings (losses) attributable to noncontrolling interests in our Consolidated Statements of Earnings. In situations in which we have significant influence, but not control, of an entity that does not qualify as a VIE, we apply either the equity method of accounting or fair value accounting pursuant to the fair value option election under U.S. GAAP, with our portion of net earnings or gains and losses recorded in Other revenues or Principal transactions revenues, respectively. We also have formed nonconsolidated investment vehicles with third-party investors that are typically organized as partnerships or limited liability companies and are carried at fair value. We act as general partner or managing member for these investment vehicles and have generally provided the third-party investors with termination or “kick-out” rights. Intercompany accounts and transactions are eliminated in consolidation. Note 2. Summary of Significant Accounting Policies For a detailed discussion about the Company’s 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. During the three and six months ended May 31, 2026, there were no significant changes made to the Company’s significant accounting policies. Note 3. Accounting Developments Accounting Standards to be Adopted in Future Periods Income Taxes . In December 2023, the FASB issued ASU No. 2023-09 (“ASU 2023-09”), Improvements to Income Tax Disclosures. The guidance is intended to improve income tax disclosure requirements by requiring (i) consistent categories and greater disaggregation of information in the rate reconciliation and (ii) the disaggregation of income taxes paid by jurisdiction. The guidance makes several other changes to the income tax disclosure requirements. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024 and are required to be applied prospectively with the option of retrospective application. We are evaluating the impact of the standard on our income tax disclosures. May 2026 Form 10-Q 9 Notes to Consolidated Financial Statements (Unaudited) Expenses . In November 2024, the FASB issued ASU No. 2024-03 (“ASU 2024-03”), Disaggregation of Income Statement Expenses. The guidance primarily will require enhanced disclosures about certain types of expenses. The amendments in ASU 2024-03 are effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027 and may be applied either on a prospective or retrospective basis. We are evaluating the impact of the standard on our disclosures. Credit Losses . In July 2025, the FASB issued ASU No. 2025-05 (“ASU 2025-05”), Financial Instruments–Credit Losses. The guidance provides an optional practical expedient when applying the guidance related to the estimation of expected credit losses for current accounts receivable and current contract assets resulting from transactions arising from contracts with customers. The amendments in ASU 2025-05 are effective for fiscal years beginning after December 15, 2025, and interim reporting periods, with early adoption permitted. We are evaluating the impact of the standard on our financial statements. Internal-Use Software . In September 2025, the FASB issued ASU No. 2025-06 (“ASU 2025-06”), Intangibles–Goodwill and Other–Internal-Use Software. The guidance modernizes and clarifies the threshold for when an entity is required to start capitalizing software costs and is based on when (i) management has authorized and committed to funding the software project and (ii) it is probable that the project will be completed and the software will be used to perform the function intended. The amendments in ASU 2025-06 are effective for fiscal years beginning after December 15, 2027, and interim reporting periods, with early adoption permitted. We are evaluating the impact of the standard on our financial statements. Adopted Accounting Standards Segment Reporting . In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2023-07 (“ASU 2023-07”), Improvements to Reportable Segment Disclosures. The guidance primarily requires enhanced disclosures about significant segment expenses. We adopted the guidance beginning with our year ended November 30, 2025, which impacted our disclosures only. Refer to Note 20, Segment Reporting for additional information. Note 4. Assets and Liabilities Held for Sale Tessellis During 2026, we accepted a binding offer from a third party for the sale of Tessellis. We expect the sale to close during the first quarter of 2027. Assets held for sale are recorded initially at the lower of their carrying value or estimated fair value, less estimated costs to sell. Upon designation as an asset held for sale, we discontinue recording depreciation and amortization expense on such assets. Tessellis is included within our asset management reportable segment. Tessellis’ major classes of assets and liabilities: $ in thousands May 31, 2026 Assets held for sale: Cash and cash equivalents $ 31,635 Investments in and loans to related parties 6,493 Other receivables 25,881 Premises and equipment, net 65,896 Goodwill 56,104 Other assets 109,147 Total assets held for sale $ 295,156 Liabilities held for sale: Short term borrowings $ 4,665 Lease liabilities 19,410 Accrued expenses and other liabilities 225,513 Long-term debt 50,172 Total liabilities held for sale $ 299,760 10 Jefferies Financial Group Inc. Notes to Consolidated Financial Statements (Unaudited) Note 5. Fair Value Disclosures May 31, 2026 (1) $ in thousands Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting (2) Total Assets: Financial instruments owned: Corporate equity securities $ 8,172,828 $ 230,866 $ 255,866 $ — $ 8,659,560 Corporate debt securities — 5,211,023 54,811 — 5,265,834 Collateralized debt obligations and collateralized loan obligations — 650,379 62,546 — 712,925 U.S. government and federal agency securities 3,112,195 106,914 — — 3,219,109 Municipal securities — 649,349 — — 649,349 Sovereign obligations 807,151 886,209 — — 1,693,360 Residential mortgage-backed securities — 1,906,714 5,376 — 1,912,090 Commercial mortgage-backed securities — 9,768 235 — 10,003 Other asset-backed securities — 780,516 190,089 — 970,605 Loans and other receivables — 1,736,907 90,322 — 1,827,229 Derivatives 487 4,901,537 8,682 ( 3,475,770 ) 1,434,936 Investments at fair value — 5,268 171,368 — 176,636 Total financial instruments owned, excluding Investments at fair value based on NAV $ 12,092,661 $ 17,075,450 $ 839,295 $ ( 3,475,770 ) $ 26,531,636 Securities received as collateral $ 310,813 $ — $ — $ — $ 310,813 ​ Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 7,243,037 $ 22,912 $ 169 $ — $ 7,266,118 Corporate debt securities — 3,026,509 571 — 3,027,080 U.S. government and federal agency securities 1,048,105 3 — — 1,048,108 Sovereign obligations 733,221 698,985 — — 1,432,206 Residential mortgage-backed and other asset-backed securities — 9,000 — — 9,000 Loans — 148,729 1,352 — 150,081 Derivatives 246 5,193,630 22,223 ( 3,601,670 ) 1,614,429 Total financial instruments sold, not yet purchased $ 9,024,609 $ 9,099,768 $ 24,315 $ ( 3,601,670 ) $ 14,547,022 Other secured financings $ — $ 405,725 $ 10,076 $ — $ 415,801 Obligation to return securities received as collateral 310,813 — — — 310,813 Long-term debt — 2,790,159 1,070,114 — 3,860,273 (1) Excludes investments at fair value based on net asset value (“NAV”) of $ 1.51 billion at May 31, 2026 by level within the fair value hierarchy. (2) Represents counterparty and cash collateral netting across the levels of the fair value hierarchy for positions with the same counterparty. May 2026 Form 10-Q 11 Notes to Consolidated Financial Statements (Unaudited) November 30, 2025 (1) $ in thousands Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting (2) Total Assets: Financial instruments owned: Corporate equity securities $ 7,664,824 $ 249,847 $ 218,853 $ — $ 8,133,524 Corporate debt securities — 5,367,201 37,578 — 5,404,779 Collateralized debt obligations and collateralized loan obligations — 645,798 40,187 — 685,985 U.S. government and federal agency securities 2,342,718 106,633 — — 2,449,351 Municipal securities — 563,994 — — 563,994 Sovereign obligations 860,832 815,722 — — 1,676,554 Residential mortgage-backed securities — 1,827,092 6,663 — 1,833,755 Commercial mortgage-backed securities — 10,458 348 — 10,806 Other asset-backed securities — 909,474 133,001 — 1,042,475 Loans and other receivables — 2,111,517 127,720 — 2,239,237 Derivatives 72 5,519,463 10,311 ( 3,705,764 ) 1,824,082 Investments at fair value — 13,567 163,107 — 176,674 Total financial instruments owned, excluding Investments at fair value based on NAV $ 10,868,446 $ 18,140,766 $ 737,768 $ ( 3,705,764 ) $ 26,041,216 Securities received as collateral $ 200,495 $ — $ — $ — $ 200,495 ​ Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 5,571,534 $ 47,631 $ 155 $ — $ 5,619,320 Corporate debt securities — 2,761,794 3,720 — 2,765,514 Collateralized debt obligations and collateralized loan obligations — 627 — — 627 U.S. government and federal agency securities 1,913,403 4 — — 1,913,407 Sovereign obligations 796,564 540,555 — — 1,337,119 Loans — 184,391 9,757 — 194,148 Derivatives 24 5,429,227 45,953 ( 3,985,187 ) 1,490,017 Total financial instruments sold, not yet purchased $ 8,281,525 $ 8,964,229 $ 59,585 $ ( 3,985,187 ) $ 13,320,152 Other secured financings $ — $ 412,510 $ 13,454 $ — $ 425,964 Obligation to return securities received as collateral 200,495 — — — 200,495 Long-term debt — 2,671,485 1,063,358 — 3,734,843 (1) Excludes investments at fair value based on NAV of $ 1.68 billion at November 30, 2025 by level within the fair value hierarchy. (2) Represents counterparty and cash collateral netting across the levels of the fair value hierarchy for positions with the same counterparty. 12 Jefferies Financial Group Inc. Notes to Consolidated Financial Statements (Unaudited) There have been no significant changes in valuation techniques and inputs used in measuring our financial assets and liabilities that are accounted for at fair value on a recurring basis. 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. Investments at Fair Value Investments at fair value includes investments in hedge funds, private equity funds, credit funds, real estate funds and other funds, which are measured at the NAV of the funds, provided by the fund managers and are excluded from the fair value hierarchy. Investments at fair value also include direct equity investments in private companies, which are measured at fair value using valuation techniques involving quoted prices of or market data for comparable companies, similar company ratios and multiples ( e.g. , price/EBITDA, price/book value), discounted cash flow analyses and transaction prices observed for subsequent financing or capital issuance by the company. Direct equity investments in private companies are categorized within Level 2 or Level 3 of the fair value hierarchy. Information about our investments in entities that have the characteristics of an investment company: May 31, 2026 $ in thousands Fair Value (1) Unfunded Commitments Redemption Frequency Redemption Notice Period Hedge Funds (2) $ 725,883 $ — Quarterly ( 37 %) Monthly ( 42 %) N/R ( 21 %) 45 - 90 days 45 - 60 days N/R Private Equity Funds (3) 65,920 22,990 N/R ( 100 %) N/R Credit Funds (4) 435,715 23,847 Quarterly ( 48 %) Monthly ( 3 %) N/R ( 49 %) 90 days 30 days N/R Real Estate and Other Funds (5) 278,961 103,610 Quarterly ( 12 %) N/R ( 88 %) 90 days N/R Total $ 1,506,479 $ 150,447 November 30, 2025 $ in thousands Fair Value (1) Unfunded Commitments Redemption Frequency Redemption Notice Period Hedge Funds (2) $ 888,880 $ — Quarterly ( 42 %) Monthly ( 41 %) N/R ( 17 %) 45 - 90 days 45 - 60 days N/R Private Equity Funds (3) 66,476 26,828 N/R ( 100 %) N/R Credit Funds (4) 490,321 23,847 Quarterly ( 56 %) Monthly ( 2 %) N/R ( 42 %) 90 days 30 days N/R Real Estate and Other Funds (5) 235,846 114,872 Quarterly ( 19 %) N/R ( 81 %) 90 days N/R Total $ 1,681,523 $ 165,547 N/R - Not redeemable (1) Where fair value is calculated based on NAV, fair value has been derived from each of the funds’ capital statements. (2) Includes investments in hedge funds that invest, long and short, primarily in both public and private equity securities in domestic and international markets, commodities and multi-asset securities. (3) Includes investments in equity funds that invest in the equity of various U.S. and foreign private companies in a broad range of industries. These investments cannot be redeemed; instead, distributions are received through the liquidation of the underlying assets of the funds which are primarily expected to be liquidated in approximately one to nine years . (4) Primarily includes investments in funds that invest in: • Distressed and special situations long/short credit strategies across sectors and asset types; • Short-term trade receivables and payables that are expected to generally be outstanding between 90 to 120 days; and • Distressed and event-driven opportunities across structured credit, opportunistic credit, and private credit. (5) Primarily includes investments in corporate real estate strategies focused on buying or building real estate businesses and investments in venture capital funds. May 2026 Form 10-Q 13 Notes to Consolidated Financial Statements (Unaudited) Level 3 Rollforwards Three Months Ended May 31, 2026 $ in thousands Balance at February 28, 2026 Total gains/losses (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into/ (out of) Level 3 Balance at May 31, 2026 For instruments still held at May 31, 2026, changes in unrealized gains (losses) included in: Earnings (1) Other comprehensive income (loss) (1) Level 3 assets: Financial instruments owned: Corporate equity securities $ 218,483 $ 24,352 $ 14,242 $ ( 4,487 ) $ ( 103 ) $ — $ 3,379 $ 255,866 $ 24,802 $ — Corporate debt securities 50,755 ( 184 ) 4,717 ( 20 ) ( 432 ) — ( 25 ) 54,811 267 — CDOs and CLOs 61,455 ( 4,425 ) 37,442 ( 4,026 ) — — ( 27,900 ) 62,546 ( 4,703 ) — RMBS 6,134 ( 443 ) — — ( 315 ) — — 5,376 ( 443 ) — CMBS 355 ( 105 ) — — — — ( 15 ) 235 ( 105 ) — Other ABS 244,714 ( 22,349 ) 25,936 ( 27,041 ) ( 7,345 ) — ( 23,826 ) 190,089 ( 24,387 ) — Loans and other receivables 85,396 18,797 25,427 ( 28,760 ) ( 7,607 ) — ( 2,931 ) 90,322 21,162 — Investments at fair value 167,195 ( 1,100 ) 9,225 ( 685 ) ( 3,267 ) — — 171,368 ( 1,387 ) — Level 3 liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 167 $ 2 $ — $ — $ — $ — $ — $ 169 $ ( 2 ) $ — Corporate debt securities 555 — — — — — 16 571 — — Loans 921 135 — 375 — — ( 79 ) 1,352 ( 473 ) — Net derivatives (2) 28,562 2,873 ( 821 ) — ( 4,485 ) — ( 12,588 ) 13,541 ( 3,266 ) — Other secured financings 11,685 ( 245 ) — — ( 1,364 ) — — 10,076 ( 72 ) — Long-term debt 1,024,067 ( 6,329 ) — — — 29,344 23,032 1,070,114 40,009 ( 33,680 ) Six Months Ended May 31, 2026 $ in thousands Balance at November 30, 2025 Total gains/losses (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into/ (out of) Level 3 Balance at May 31, 2026 For instruments still held at May 31, 2026, changes in unrealized gains (losses) included in: Earnings (1) Other comprehensive income (loss) (1) Assets: Financial instruments owned: Corporate equity securities $ 218,853 $ 19,100 $ 25,895 $ ( 7,026 ) $ ( 103 ) $ — $ ( 853 ) $ 255,866 $ 19,153 $ — Corporate debt securities 37,578 1,110 14,323 — ( 1,061 ) — 2,861 54,811 1,518 — CDOs and CLOs 40,187 ( 9,155 ) 68,668 ( 15,658 ) ( 23 ) — ( 21,473 ) 62,546 ( 7,648 ) — RMBS 6,663 ( 522 ) — — ( 765 ) — — 5,376 ( 522 ) — CMBS 348 ( 98 ) — — — — ( 15 ) 235 ( 98 ) — Other ABS 133,001 ( 67,663 ) 139,191 ( 34,939 ) ( 10,264 ) — 30,763 190,089 ( 69,823 ) — Loans and other receivables 127,720 22,225 76,044 ( 79,669 ) ( 8,345 ) — ( 47,653 ) 90,322 23,736 — Investments at fair value 163,107 3,536 9,475 ( 708 ) ( 4,042 ) — — 171,368 2,484 — Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 155 $ 14 $ — $ — $ — $ — $ — $ 169 $ ( 14 ) $ — Corporate debt securities 3,720 181 — — — — ( 3,330 ) 571 ( 232 ) — Loans 9,757 ( 345 ) ( 697 ) 1,100 — — ( 8,463 ) 1,352 ( 1,805 ) — Net derivatives (2) 35,642 2,518 ( 1,492 ) — ( 3,125 ) — ( 20,002 ) 13,541 ( 3,494 ) — Other secured financings 13,454 ( 360 ) — 120 ( 3,138 ) — — 10,076 36 — Long-term debt 1,063,358 ( 25,949 ) — — ( 23,695 ) 36,081 20,319 1,070,114 4,737 21,212 (1) Realized and unrealized gains/losses are primarily reported in Principal transactions revenues . Changes in instrument-specific credit risk related to structured notes within Long-term debt are presented net of tax in our Consolidated Statements of Comprehensive Income. (2) Net derivatives represent Financial instruments owned—Derivatives and Financial instruments sold, not yet purchased—Derivatives. 14 Jefferies Financial Group Inc. Notes to Consolidated Financial Statements (Unaudited) Analysis of Level 3 Assets and Liabilities for the Three Months Ended May 31, 2026 Transfers of assets of $ 20.3 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to: • Loan and other receivables of $ 7.1 million, CDOs and CLOs of $ 5.0 million, Corporate equity securities of $ 4.3 million and Other ABS of $ 3.9 million due to reduced pricing transparency. Transfers of assets of $ 71.6 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to: • CDOs and CLOs of $ 32.9 million, Other ABS of $ 27.7 million and Loans and other receivables of $ 10.0 million due to greater pricing transparency supporting classification into Level 2. Transfers of liabilities of $ 40.3 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to: • Structured notes within Long-term debt of $ 31.3 million and Net derivatives transfers into Level 3 of $ 9.0 million due to reduced market and pricing transparency. Transfers of liabilities of $ 30.0 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to: • Net derivatives of $ 21.5 million and Structured notes within Long-term debt of $ 8.3 million due to greater pricing and market transparency. Net gains on Level 3 assets were $ 14.5 million and net gains on Level 3 liabilities were $ 3.6 million for the three months ended May 31, 2026. Net gains on Level 3 assets were primarily due to increased market values across Corporate equity securities and Loans and other receivables, partially offset by decreased market values of Other ABS, CDOs and CLOs and Investments at fair value. Net gains on Level 3 liabilities were primarily due to decreased valuations of structured notes within Long-term debt, partially offset by increases of certain Derivatives. Analysis of Level 3 Assets and Liabilities for the Six Months Ended May 31, 2026 Transfers of assets of $ 80.8 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to: • Other ABS of $ 52.3 million, CDOs and CLOs of $ 17.0 million, Corporate debt securities of $ 8.1 million and Loan and other receivables of $ 3.3 million due to reduced pricing transparency. Transfers of assets of $ 117.2 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to: • Loans and other receivables of $ 50.9 million, CDOs and CLOs of $ 38.5 million, Other ABS of $ 21.6 million and Corporate debt securities of $ 5.2 million due to greater pricing transparency supporting classification into Level 2. Transfers of liabilities of $ 36.1 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to: • Structured notes within Long-term debt of $ 26.4 million and Net derivatives of $ 9.6 million due to reduced market and pricing transparency. Transfers of liabilities of $ 47.6 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to: • Certain Derivatives of $ 29.6 million, Loans of $ 8.5 million and Structured notes within Long-term debt of $ 6.1 million due to greater pricing and market transparency. Net losses on Level 3 assets were $ 31.5 million and net gains on Level 3 liabilities were $ 23.9 million for the six months ended May 31, 2026. Net losses on Level 3 assets were primarily due to decreased market values across Other ABS and CDOs and CLOs, partially offset by increases of Loans and other receivables, Corporate equity securities and Investments at fair value. Net gains on Level 3 liabilities were primarily due to decreased valuations of structured notes within Long-term debt, partially offset by increased market values of certain Derivatives. May 2026 Form 10-Q 15 Notes to Consolidated Financial Statements (Unaudited) Three Months Ended May 31, 2025 $ in thousands Balance at February 28, 2025 Total gains/losses (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into/ (out of) Level 3 Balance at May 31, 2025 For instruments still held at May 31, 2025, changes in unrealized gains (losses) included in: Earnings (1) Other comprehensive income (loss) (1) Assets: Financial instruments owned: Corporate equity securities $ 212,409 $ 8,245 $ 2,482 $ ( 2,201 ) $ — $ — $ 10,225 $ 231,160 $ 5,003 $ — Corporate debt securities 25,925 2,547 18,805 ( 15,740 ) ( 2,177 ) — 15,322 44,682 2,194 — CDOs and CLOs 71,827 ( 4,123 ) 35,644 ( 18,469 ) ( 6,550 ) — ( 7,381 ) 70,948 ( 4,564 ) — RMBS 7,526 436 — — ( 15 ) — — 7,947 439 — CMBS 471 34 — — — — — 505 34 — Other ABS 147,319 6,814 27,523 ( 26,231 ) ( 1,863 ) — 119 153,681 5,985 — Loans and other receivables 153,764 ( 7,236 ) 18,008 ( 39,475 ) ( 13,063 ) — ( 19,830 ) 92,168 ( 10,875 ) — Investments at fair value 157,881 6,041 261 — ( 804 ) — ( 10,000 ) 153,379 3,581 — Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 590 $ ( 256 ) $ ( 173 ) $ — $ — $ — $ — $ 161 $ 31 $ — Corporate debt securities 1,113 222 ( 41,346 ) 41,436 ( 662 ) — ( 119 ) 644 ( 86 ) — RMBS 15 ( 15 ) — — — — — — — — CMBS 1,154 ( 1 ) — 35 — — ( 35 ) 1,153 1 — Loans 848 ( 658 ) ( 37 ) — 183 — ( 23 ) 313 ( 226 ) — Net derivatives (2) 42,076 ( 1,132 ) — — ( 4 ) — ( 7,652 ) 33,288 ( 6,385 ) — Other secured financings 12,705 — — — ( 2,360 ) 8,531 — 18,876 — — Long-term debt 860,684 34,729 — — ( 5,893 ) 93,570 8,066 991,156 ( 49,509 ) 14,781 Six Months Ended May 31, 2025 $ in thousands Balance at November 30, 2024 Total gains/losses (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into/ (out of) Level 3 Balance at May 31, 2025 For instruments still held at May 31, 2025, changes in unrealized gains (losses) included in: Earnings (1) Other comprehensive income (loss) (1) Assets: Financial instruments owned: Corporate equity securities $ 239,364 $ 9,940 $ 7,049 $ ( 5,366 ) $ 494 $ — $ ( 20,321 ) $ 231,160 $ 8,292 $ — Corporate debt securities 24,931 2,147 37,129 ( 23,787 ) ( 2,197 ) — 6,459 44,682 2,419 — CDOs and CLOs 63,976 ( 10,286 ) 52,875 ( 23,728 ) ( 6,550 ) — ( 5,339 ) 70,948 ( 10,336 ) — Sovereign obligations 172 2 — ( 174 ) — — — — — — RMBS 7,714 269 — — ( 36 ) — — 7,947 279 — CMBS 477 28 — — — — — 505 28 — Other ABS 103,214 ( 264 ) 86,866 ( 30,929 ) ( 4,175 ) — ( 1,031 ) 153,681 ( 565 ) — Loans and other receivables 152,586 ( 5,759 ) 72,851 ( 82,603 ) ( 21,549 ) 3,670 ( 27,028 ) 92,168 ( 9,134 ) — Investments at fair value 137,865 6,434 21,549 — ( 2,469 ) — ( 10,000 ) 153,379 3,974 — Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 208 $ 126 $ ( 173 ) $ — $ — $ — $ — $ 161 $ ( 126 ) $ — Corporate debt securities 165 52 ( 135,198 ) 135,433 — — 192 644 ( 123 ) — CMBS 1,153 — — 35 — — ( 35 ) 1,153 — — Loans 16,864 ( 1,673 ) ( 1,046 ) — 698 — ( 14,530 ) 313 39 — Net derivatives (2) 22,286 ( 13,925 ) — 22,588 ( 484 ) — 2,823 33,288 5,076 — Other secured financings 14,884 241 — — ( 4,780 ) 8,531 — 18,876 ( 241 ) — Long-term debt 821,903 ( 21,118 ) — — ( 2,799 ) 218,124 ( 24,954 ) 991,156 ( 19,522 ) 40,640 (1) Realized and unrealized gains/losses are primarily reported in Principal transactions revenues . Changes in instrument-specific credit risk related to structured notes within Long-term debt are presented net of tax in our Consolidated Statements of Comprehensive Income. (2) Net derivatives represent Financial instruments owned—Derivatives and Financial instruments sold, not yet purchased—Derivatives. 16 Jefferies Financial Group Inc. Notes to Consolidated Financial Statements (Unaudited) Analysis of Level 3 Assets and Liabilities for the Three Months Ended May 31, 2025 Transfers of assets of $ 31.5 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to: • Corporate debt securities of $ 15.9 million, Corporate equity securities of $ 11.1 million, Other ABS of $ 2.1 million and Loan and other receivables of $ 1.6 million due to reduced pricing transparency. Transfers of assets of $ 43.0 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to: • Loans and other receivables of $ 21.5 million, Investments at fair value of $ 10.0 million, CDOs and CLOs of $ 8.0 million and Other ABS of $ 2.0 million due to greater pricing transparency supporting classification into Level 2. Transfers of liabilities of $ 11.5 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to: • Structured notes within Long-term debt of $ 13.2 million, partially offset by net derivatives transfer into Level 3 of $ 2.0 million due to reduced market and pricing transparency. Transfers of liabilities of $ 11.2 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to: • Net derivatives of $ 5.7 million and Structured notes within Long-term debt of $ 5.1 million due to greater pricing and market transparency. Net gains on Level 3 assets were $ 12.8 million and net losses on Level 3 liabilities were $ 32.9 million for the three months ended May 31, 2025. Net gains on Level 3 assets were primarily due to increased market values across Corporate equity securities, Other ABS, Investments at fair value and Corporate debt securities, partially offset by decreased market values of Loans and other receivables and CDOs and CLOs. Net losses on Level 3 liabilities were primarily due to increased valuations of structured notes within Long-term debt, partially offset by decreased valuations of certain derivatives. Analysis of Level 3 Assets and Liabilities for the Six Months Ended May 31, 2025 Transfers of assets of $ 71.8 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to: • Corporate equity securities of $ 30.3 million, Loan and other receivables of $ 27.1 million, Corporate debt securities of $ 8.0 million, Other ABS of $ 3.3 million and CDOs and CLOs of $ 3.0 million due to reduced pricing transparency. Transfers of assets of $ 129.0 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to: • Loans and other receivables of $ 54.1 million, Corporate equity securities of $ 50.7 million, Investments at fair value of $ 10.0 million, CDOs and CLOs of $ 8.4 million and Other ABS of $ 4.4 million due to greater pricing transparency supporting classification into Level 2. Transfers of liabilities of $ 7.9 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to: • Net derivatives of $ 3.9 million and structured notes within Long-term debt of $ 3.9 million due to reduced market and pricing transparency. Transfers of liabilities of $ 44.4 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to: • Structured notes within Long-term debt of $ 28.8 million and Loans of $ 14.5 million due to greater pricing and market transparency. Net gains on Level 3 assets were $ 2.5 million and net gains on Level 3 liabilities were $ 36.3 million for the six months ended May 31, 2025. Net gains on Level 3 assets were primarily due to increased market values across Corporate equity securities, Investments at fair value and Corporate debt securities, partially offset by decreased valuations of CDOs and CLOs and Loans and other receivables. Net gains on Level 3 liabilities were primarily due to decreased valuations of structured notes within Long-term debt, certain derivatives and loans. May 2026 Form 10-Q 17 Notes to Consolidated Financial Statements (Unaudited) Significant Unobservable Inputs used in Level 3 Fair Value Measurements The tables below present information on the valuation techniques, significant unobservable inputs and their ranges for our financial assets and liabilities, subject to threshold levels related to the market value of the positions held, measured at fair value on a recurring basis with a significant Level 3 balance. The range of unobservable inputs could differ significantly across different firms given the range of products across different firms in the financial services sector. The inputs are not representative of the inputs that could have been used in the valuation of any one financial instrument ( i.e., the input used for valuing one financial instrument within a particular class of financial instruments may not be appropriate for valuing other financial instruments within that given class). Additionally, the ranges of inputs presented below should not be construed to represent uncertainty regarding the fair values of our financial instruments; rather, the range of inputs is reflective of the differences in the underlying characteristics of the financial instruments in each category. For certain categories, we have provided a weighted average of the inputs allocated based on the fair values of the financial instruments comprising the category. We do not believe that the range or weighted average of the inputs is indicative of the reasonableness of uncertainty of our Level 3 fair values. The range and weighted average are driven by the individual financial instruments within each category and their relative distribution in the population. The disclosed inputs when compared to the inputs as disclosed in other periods should not be expected to necessarily be indicative of changes in our estimates of unobservable inputs for a particular financial instrument as the population of financial instruments comprising the category will vary from period to period based on purchases and sales of financial instruments during the period as well as transfers into and out of Level 3 each period. 18 Jefferies Financial Group Inc. Notes to Consolidated Financial Statements (Unaudited) May 31, 2026 Financial Instruments Owned Fair Value (in thousands) Valuation Technique Significant Unobservable Input(s) Input / Range Weighted Average Corporate equity securities $ 255,866 Non-exchange-traded securities Market approach Price $ 0 - $ 486 $ 81 Volatility benchmarking Volatility 31 % — Corporate debt securities $ 54,811 Market approach Price $ 67 - $ 124 $ 92 Discounted cash flows Discount rate/yield 25 % - 30 % 26 % CDOs and CLOs $ 51,753 Discounted cash flows Constant prepayment rate 15 % - 20 % 18 % Constant default rate 2 % — Loss severity 30 % — Discount rate/yield 12 % - 16 % 14 % Market approach Price $ 100 - $ 117 $ 105 RMBS $ 5,376 Discounted cash flows Constant prepayment rate 10 % — Constant default rate 0.5 % — Loss severity 45 % — Discount rate/yield 20 % — Other ABS $ 185,232 Discounted cash flows Discount rate/yield 15.5 % - 16.1 % 15.9 % Cumulative loss rate 16.2 % - 17.1 % 16.6 % Duration (years) 1.1 - 1.2 1.2 Market approach Price $ 117 - $ 135 $ 130 Scenario analysis Estimated recovery percentage 56 % - 58 % 57 % Loans and other receivables $ 90,322 Market approach Price $ 8 - $ 117 $ 103 Scenario analysis Estimated recovery percentage 7 % - 100 % 76 % Derivatives $ 6,224 Interest rate swaps Market approach Basis points upfront 0.2 — Investments at fair value $ 168,327 Private equity securities Market approach Price $ 0 - $ 170,363 $ 7,711 Discount rate/yield 28 % — Estimated revenue $ 30,087,431 — Financial Instruments Sold, Not Yet Purchased: Derivatives $ 22,223 Equity options Volatility benchmarking Volatility 53 % — Interest rate swaps Market approach Basis points upfront 6.9 - 22.2 13.9 Other secured financings $ 10,076 Scenario analysis Estimated recovery percentage 74 % - 100 % 96 % Market approach Price $ 117 - $ 118 $ 118 Long-term debt $ 1,070,114 Structured notes Market approach Price $ 64 - $ 120 $ 99 May 2026 Form 10-Q 19 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 15.5 % - 15.7 % 15.6 % Cumulative loss rate 16.0 % - 16.4 % 16.2 % 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 0.0 - 21.0 13.3 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 20 Jefferies Financial Group Inc. 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 May 31, 2026 and November 30, 2025, asset exclusions consisted of $ 21.4 million and $ 28.2 million, respectively, primarily composed of CDOs and CLOs, Investments at fair value, certain derivatives, other ABS and CMBS. At May 31, 2026 and November 30, 2025, liability exclusions consisted of $ 2.1 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 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 discount rate/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 May 31, Six Months Ended May 31, $ in thousands 2026 2025 2026 2025 Financial instruments owned: Loans and other receivables (1) $ 8,506 $ 69,578 $ ( 32,588 ) $ 103,854 Other secured financings (1) 6,100 ( 1,418 ) 5,791 ( 1,659 ) Long-term debt: Changes in instrument-specific credit risk (2) ( 47,715 ) 28,763 30,306 66,501 Other changes in fair value (1) ( 1,226 ) 13,225 ( 52,838 ) 27,548 (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 May 31, 2026 November 30, 2025 Financial instruments owned: Loans and other receivables (1) $ 1,392,673 $ 2,378,747 Loans and other receivables on nonaccrual status and/or 90 days or greater past due (1) 416,067 319,394 Loans and other receivables 90 days or greater past due (1) 79,757 100,300 Long-term debt 203,199 166,273 Other secured financings 1,302 237 (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 May 31, 2026 November 30, 2025 Financial instruments owned: Loans and other receivables on nonaccrual status and/or 90 days or greater past due $ 73,215 $ 119,900 Loans and other receivables 90 days or greater past due 53,157 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 May 31, 2026 and November 30, 2025. There were no impairments or downward adjustments on these investments during both the three and six months ended May 31, 2026 and 2025. May 2026 Form 10-Q 21 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. May 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 $ 632 3 $ 1,376 1 Bilateral OTC — — 254 1 Foreign exchange contracts: Bilateral OTC 12,991 7 17,050 8 Total derivatives designated as accounting hedges 13,623 18,680 Derivatives not designated as accounting hedges: Interest rate contracts: Exchange-traded 1,139 31,873 316 30,588 Cleared OTC 246,988 8,849 244,768 9,260 Bilateral OTC 237,645 1,048 687,026 1,295 Foreign exchange contracts: Exchange-traded — 46 — 69 Bilateral OTC 124,715 34,491 112,458 10,012 Equity contracts: Exchange-traded 1,706,606 2,346,548 1,433,972 1,826,167 Bilateral OTC 2,539,543 39,955 2,703,100 36,753 Commodity contracts: Exchange-traded 617 637 288 563 Bilateral OTC 6,563 11,809 2,631 5,458 Credit contracts: Cleared OTC 1,799 107 6,932 7 Bilateral OTC 31,468 19 5,928 24 Total derivatives not designated as accounting hedges 4,897,083 5,197,419 Total gross derivative assets/liabilities: Exchange-traded 1,708,362 1,434,576 Cleared OTC 249,419 253,076 Bilateral OTC 2,952,925 3,528,447 Amounts offset in our Consolidated Statements of Financial Condition (3): Exchange-traded ( 705,242 ) ( 705,242 ) Cleared OTC ( 247,920 ) ( 252,771 ) Bilateral OTC ( 2,522,608 ) ( 2,643,657 ) Net amounts per Consolidated Statements of Financial Condition (4) $ 1,434,936 $ 1,614,429 (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. 22 Jefferies Financial Group Inc. 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 (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. Gains (losses) recognized in Interest expense related to fair value hedges: $ in thousands Three Months Ended May 31, Six Months Ended May 31, Gains (Losses) 2026 2025 2026 2025 Interest rate swaps (1) $ ( 29,405 ) $ ( 415 ) $ ( 28,284 ) $ ( 6,043 ) Long-term debt 19,391 ( 11,968 ) 8,475 ( 18,659 ) Total $ ( 10,014 ) $ ( 12,383 ) $ ( 19,809 ) $ ( 24,702 ) (1) Includes net settlements of $ 9.7 million and $ 19.3 million for the three and six months ended May 31, 2026, respectively, and $ 12.2 million and $ 24.1 million for the three and six months ended May 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 May 31, Six Months Ended May 31, Gains (Losses) 2026 2025 2026 2025 Interest rate contracts Recognized in OCI $ ( 254 ) $ — $ ( 254 ) $ — Net change included within AOCI $ ( 254 ) $ — $ ( 254 ) $ — 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 May 31, Six Months Ended May 31, Gains (Losses) 2026 2025 2026 2025 Foreign exchange contracts $ 20,434 $ ( 90,986 ) $ ( 7,531 ) $ ( 74,132 ) Total $ 20,434 $ ( 90,986 ) $ ( 7,531 ) $ ( 74,132 ) 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 May 31, Six Months Ended May 31, Gains (Losses) 2026 2025 2026 2025 Interest rate contracts $ ( 80,358 ) $ ( 8,710 ) $ ( 80,091 ) $ ( 31,212 ) Foreign exchange contracts 3,178 21,645 1,447 16,770 Equity contracts ( 221,296 ) 823,950 ( 340,671 ) 1,318,166 Commodity contracts 14,596 7,723 18,878 13,457 Credit contracts ( 8,657 ) 653 ( 11,715 ) 1,704 Total $ ( 292,537 ) $ 845,261 $ ( 412,152 ) $ 1,318,885 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. May 2026 Form 10-Q 23 Notes to Consolidated Financial Statements (Unaudited) OTC Derivatives Remaining contract maturities at May 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 $ 6,257 $ — $ — $ — $ 6,257 Equity options and forwards 68,134 199,435 — ( 3,825 ) 263,744 Credit default swaps 336 870 27,768 — 28,974 Total return swaps 550,180 78,174 — ( 9,563 ) 618,791 Foreign currency forwards, swaps and options 75,153 6,248 — — 81,401 Interest rate swaps, options and forwards 34,279 121,126 22,464 ( 26,994 ) 150,875 Total $ 734,339 $ 405,853 $ 50,232 $ ( 40,382 ) 1,150,042 Cross-product counterparty netting ( 39,665 ) Total OTC derivative assets included in Financial instruments owned $ 1,110,377 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 $ 2,325 $ — $ — $ — $ 2,325 Equity options and forwards 80,693 123,522 — ( 3,825 ) 200,390 Credit default swaps 36 1,712 4,421 — 6,169 Total return swaps 301,510 552,830 151 ( 9,563 ) 844,928 Foreign currency forwards, swaps and options 73,053 345 — — 73,398 Fixed income forwards 5,471 — — — 5,471 Interest rate swaps, options and forwards 27,854 109,428 486,251 ( 26,994 ) 596,539 Total $ 490,942 $ 787,837 $ 490,823 $ ( 40,382 ) 1,729,220 Cross-product counterparty netting ( 39,665 ) Total OTC derivative liabilities included in Financial instruments sold, not yet purchased $ 1,689,555 (1) At May 31, 2026, we held net exchange-traded derivative assets and liabilities with a fair value of $ 1.00 billion and $ 729.3 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 May 31, 2026, cash collateral received and pledged was $ 678.6 million and $ 804.5 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 May 31, 2026: Counterparty credit quality (1): $ in thousands A- or higher $ 530,743 BBB- to BBB+ 88,586 BB+ or lower 236,089 Unrated 254,959 Total $ 1,110,377 (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: May 31, 2026 External Credit Rating $ in millions Investment Grade Non-investment Grade Total Notional Credit protection sold: Index credit default swaps $ 78.3 $ 796.7 $ 875.0 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 May 31, 2026 November 30, 2025 Derivative instrument liabilities with credit-risk-related contingent features $ 311.7 $ 107.3 Collateral posted ( 111.7 ) ( 70.0 ) Collateral received 699.7 343.3 Return of and additional collateral required in the event of a credit rating downgrade below investment grade (1) 899.7 380.5 (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. 24 Jefferies Financial Group Inc. Notes to Consolidated Financial Statements (Unaudited) Note 7. Collateralized Transactions May 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 $ 2,573.1 $ 1,774.8 $ 80.3 $ 4,428.2 Corporate debt securities 311.8 3,428.5 — 3,740.3 Mortgage-backed and asset-backed securities 186.3 2,114.6 — 2,300.9 U.S. government and federal agency securities 14.4 8,435.1 — 8,449.5 Municipal securities — 430.9 — 430.9 Sovereign obligations 19.0 1,529.5 230.5 1,779.0 Loans and other receivables — 786.6 — 786.6 Total $ 3,104.6 $ 18,500.0 $ 310.8 $ 21,915.4 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 May 31, 2026 $ in millions Overnight and Continuous Up to 30 Days 31-90 Days Greater than 90 Days Total Securities lending arrangements $ 2,687.9 $ 236.3 $ 101.2 $ 79.2 $ 3,104.6 Repurchase agreements 2,007.7 8,299.2 4,116.7 4,076.4 18,500.0 Obligation to return securities received as collateral, at fair value 310.8 — — — 310.8 Total $ 5,006.4 $ 8,535.5 $ 4,217.9 $ 4,155.6 $ 21,915.4 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 May 31, 2026 and November 30, 2025, the approximate fair value of securities received as collateral by us that may be sold or repledged was $ 72.04 billion and $ 49.68 billion, respectively. At May 31, 2026 and November 30, 2025, a substantial portion of the securities received by us had been sold or repledged. May 2026 Form 10-Q 25 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). May 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 $ 9,729.9 $ — $ 9,729.9 $ ( 882.0 ) $ ( 2,149.8 ) $ 6,698.1 Reverse repurchase agreements 16,589.2 ( 7,182.0 ) 9,407.2 ( 1,498.4 ) ( 7,842.5 ) 66.3 Securities received as collateral, at fair value 310.8 — 310.8 — ( 310.8 ) — Liabilities: Securities lending arrangements $ 3,104.6 $ — $ 3,104.6 $ ( 882.0 ) $ ( 1,948.6 ) $ 274.0 Repurchase agreements 18,500.0 ( 7,182.0 ) 11,318.0 ( 1,498.4 ) ( 9,544.9 ) 274.7 Obligation to return securities received as collateral, at fair value 310.8 — 310.8 — ( 310.8 ) — 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 $ 6.62 billion of securities borrowing arrangements, for which we have received securities collateral of $ 6.44 billion, and $ 220.0 million of repurchase agreements, for which we have pledged securities collateral of $ 241.8 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. 26 Jefferies Financial Group Inc. Notes to Consolidated Financial Statements (Unaudited) Securitizations that were accounted for as sales in which we had continuing involvement: Three Months Ended May 31, Six Months Ended May 31, $ in millions 2026 2025 2026 2025 Transferred assets $ 2,050.5 $ 2,591.4 $ 3,419.2 $ 2,633.4 Proceeds on new securitizations 2,050.5 2,591.4 3,419.2 2,633.4 Cash flows received on retained interests 10.1 6.5 24.8 11.1 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 May 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 May 31, 2026 November 30, 2025 Securitization Type Total Assets Retained Interests Total Assets Retained Interests U.S. government agency RMBS $ 127.2 $ 2.5 $ 405.7 $ 4.0 U.S. government agency CMBS 692.7 1.0 1,108.2 1.1 CLOs 12,047.7 144.1 10,970.6 436.6 Consumer and other loans 2,878.2 104.8 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 May 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. May 2026 Form 10-Q 27 Notes to Consolidated Financial Statements (Unaudited) Consolidated VIEs: May 31, 2026 (1) $ in millions Secured Funding Vehicles Other Cash $ 0.1 $ 8.2 Financial instruments owned 2.7 185.7 Securities purchased under agreements to resell (2) 2,885.3 — Receivables from brokers (3) — 66.5 Other receivables 0.4 3.1 Other assets (4) — 85.0 Total assets $ 2,888.5 $ 348.5 Financial instruments sold, not yet purchased $ — $ 107.9 Other secured financings (5) 2,881.0 28.9 Other liabilities (6) 6.5 90.7 Long-term debt — 70.2 Total liabilities $ 2,887.5 $ 297.7 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 Repurchase agreement — 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 May 31, 2026 and November 30, 2025, respectively, with related consolidated entities, which are eliminated in consolidation. (4) Includes $ 3.0 million and $ 3.4 million at May 31, 2026 and November 30, 2025, respectively, with related consolidated entities, which are eliminated in consolidation. (5) Includes $ 603.2 million and $ 780.5 million at May 31, 2026 and November 30, 2025, respectively, with related consolidated entities, which are eliminated in consolidation. (6) Includes $ 89.3 million and $ 84.0 million at May 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. We also from time to time securitize other financial instruments and own variable interests in other securitization vehicles. 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 May 31, 2026 Carrying Amount Maximum Exposure to Loss VIE Assets $ in millions Assets Liabilities CLOs $ 991.5 $ 4.2 $ 5,605.9 $ 18,305.4 Asset-backed vehicles 1,299.1 — 1,611.8 8,980.8 Related party private equity vehicles 3.9 — 13.7 72.0 Other investment vehicles 1,613.5 — 1,833.6 82,166.8 Total $ 3,908.0 $ 4.2 $ 9,065.0 $ 109,525.0 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 and does not consider any executed forward sale agreements 28 Jefferies Financial Group Inc. Notes to Consolidated Financial Statements (Unaudited) 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 May 31, 2026 and November 30, 2025, our remaining equity commitment in the JCP Entities was $ 8.8 million and $ 9.7 million, respectively. At May 31, 2026 and November 30, 2025, we also had remaining commitments of $ 0.3 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 $ 4.0 million and $ 3.4 million at May 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 May 31, 2026 and November 30, 2025, our remaining equity commitment in various other investment vehicles was $ 205.6 million and $ 282.2 million, respectively. The carrying value of our equity investments was $ 1.61 billion at $ 1.72 billion May 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 thousands May 31, 2026 Carrying value (1) $ 33,462 $ in thousands Three and Six Months Ended May 31, 2026 Income tax credits and other income tax benefits $ 30,828 Proportional amortization ( 22,728 ) Net benefits included in income tax expense $ 8,100 (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 May 31, 2026 and November 30, 2025, we held $ 1.16 billion and $ 1.06 billion of agency mortgage-backed securities, respectively, and $ 156.6 million and $ 156.3 million of non-agency mortgage-backed and other asset-backed securities, respectively, 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 May 2026 Form 10-Q 29 Notes to Consolidated Financial Statements (Unaudited) 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 May 31, 2026 November 30, 2025 Total Investments in and loans to related parties $ 1,555.1 $ 1,496.1 Three Months Ended May 31, Six Months Ended May 31, $ in millions 2026 2025 2026 2025 Total equity method pickup earnings recognized in Other revenues $ 21.8 $ 8.1 $ 46.3 $ 15.2 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 May 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 May 31, 2026, we and MassMutual each had equity commitments to Jefferies Finance of $ 750.0 million, for a combined total commitment of $ 1.5 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. At May 31, 2026, our unfunded commitment to Jefferies Finance was $ 15.4 million. 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 May 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 May 31, 2026, our $ 250.0 million commitment was undrawn. Activity related to the facility: Three Months Ended May 31, Six Months Ended May 31, $ in millions 2026 2025 2026 2025 Interest income $ 0.2 $ — $ 0.4 $ — Unfunded commitment fees $ 0.3 $ 0.3 $ 0.6 $ 0.6 Selected financial information for Jefferies Finance: $ in millions May 31, 2026 November 30, 2025 Total assets $ 6,837.6 $ 7,356.1 Total liabilities 5,364.9 5,959.2 Total mezzanine equity 15.9 14.8 $ in millions May 31, 2026 November 30, 2025 Our total investment balance $ 728.5 $ 691.0 Three Months Ended May 31, Six Months Ended May 31, $ in millions 2026 2025 2026 2025 Net earnings (losses) attributable to members $ 35.4 $ 0.1 $ 68.5 $ ( 1.6 ) Activity related to our other transactions with Jefferies Finance: Three Months Ended May 31, Six Months Ended May 31, $ in millions 2026 2025 2026 2025 Origination and syndication fee revenues (1) $ 41.7 $ 58.4 $ 94.8 $ 118.6 Origination fee expenses (1) 11.0 13.9 29.6 32.4 CLO placement and structuring fee revenues (2) 1.9 1.3 2.9 1.5 Placement and referral fees (3) 7.5 9.4 13.8 10.0 Asset management fee revenues (4) — 7.5 — 7.5 Underwriting revenues (expenses) (5) ( 0.2 ) — ( 1.1 ) — Service fees (6) 25.8 22.7 91.4 77.1 (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. 30 Jefferies Financial Group Inc. Notes to Consolidated Financial Statements (Unaudited) Additional balances with Jefferies Finance as reported in our Consolidated Statements of Financial Condition. $ in millions May 31, 2026 November 30, 2025 Assets Financial instruments owned, at fair value (1) $ 4.1 $ 10.9 Other assets (2) 6.2 7.0 Liabilities Financial instruments sold, not yet purchased, at fair value (1) $ 1.6 $ 0.4 Payables: Brokers, dealers and clearing organizations (3) 17.7 17.2 Customers (4) 5.0 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 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. 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 May 31, 2026, the aggregate amount of commercial paper outstanding was $ 1.47 billion. Selected financial information for Berkadia: $ in millions May 31, 2026 November 30, 2025 Total assets $ 5,360.5 $ 5,269.8 Total liabilities 3,868.1 3,953.1 Total noncontrolling interest 540.1 369.0 $ in millions May 31, 2026 November 30, 2025 Our total investment balance $ 432.6 $ 429.7 Three Months Ended May 31, Six Months Ended May 31, $ in millions 2026 2025 2026 2025 Net earnings attributable to members $ 26.5 $ 44.2 $ 66.9 $ 82.0 Three Months Ended May 31, Six Months Ended May 31, $ in millions 2026 2025 2026 2025 Distributions $ 5.4 $ 10.9 $ 26.6 $ 27.0 At May 31, 2026 and November 30, 2025, we had commitments to purchase $ 9.0 million and $ 13.6 million, respectively, of agency CMBS from Berkadia. Revenues from other transactions with Berkadia for the six months ended May 31, 2025 were $ 0.1 million. 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 May 31, 2026 November 30, 2025 Total assets $ 310.0 $ 312.6 Total liabilities 463.6 470.7 May 31, 2026 November 30, 2025 Our total investment balance $ 100.0 $ 98.7 Three Months Ended May 31, Six Months Ended May 31, $ in millions 2026 2025 2026 2025 Net earnings (losses) $ 1.0 $ ( 3.3 ) $ 4.8 $ 1.3 Three Months Ended May 31, Six Months Ended May 31, $ in millions 2026 2025 2026 2025 Distributions we received from Brooklyn Renaissance Hotel $ — $ 1.2 $ — $ 1.2 JCP Fund V We have limited partnership interests of 11 % and 50 % 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 $ 3.1 million and $ 2.8 million at May 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: May 2026 Form 10-Q 31 Notes to Consolidated Financial Statements (Unaudited) Three Months Ended May 31, Six Months Ended May 31, $ in millions 2026 2025 2026 2025 Net gains (losses) from our investments in JCP Fund V $ 0.4 $ — $ 0.3 $ ( 0.2 ) At both May 31, 2026 and November 30, 2025, we were committed to invest equity of up to $ 85.0 million in JCP Fund V. At both May 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 35.2 % at May 31, 2026 of the combined equity interests: Three Months Ended (1) $ in millions March 31, 2026 December 31, 2025 March 31, 2025 December 31, 2024 Net increase (decrease) in net assets resulting from operations $ 1.0 $ — $ 0.1 $ ( 0.6 ) (1) Financial information for JCP Fund V within our results of operations for the three and six months ended May 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 8.83 % to 23.5 %. The investment is accounted for under the equity method with a carrying amount of $ 120.0 million and $ 113.8 million at May 31, 2026 and November 30, 2025, respectively. Selected financial information for Hildene Insurance: $ in millions March 31, 2026 (1) September 30, 2025 (1) Total assets $ 560.7 $ 498.4 Total liabilities 0.4 0.7 Total members’ equity 560.3 497.7 Three Months Ended (1) $ in millions March 31, 2026 March 31, 2025 December 31, 2025 December 31, 2024 Net increase in members’ equity resulting from operations $ 15.8 $ 27.5 $ 16.6 $ 8.4 (1) Financial information for Hildene Insurance Holdings, LLC included in our financial position at May 31, 2026 and November 30, 2025 is based on the dates presented, and in our results of operations for the three and six months ended May 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 third quarter of 2026, subject to customary approvals. ApiJect We own shares that represent a 37.9 % and 33.6 % economic interest in ApiJect at May 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 May 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 July 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 May 31, 2026 and November 30, 2025, which would be classified as Level 3 in the fair value hierarchy. We have purchased secured convertible promissory notes totaling $ 3.9 million in the second quarter of 2026, and $ 9.8 million in December 2025, 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 May 31, Six Months Ended May 31, $ in millions 2026 2025 2026 2025 Operating lease income (1) $ — $ 1.3 $ — $ 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 $ 0.2 million and $ 1.0 million on the loan during the three and six months ended May 31, 2025, respectively. We also hold preferred shares in the seller, which are accounted for at fair value in Financial instruments owned with a fair value of $ 43.2 million at both May 31, 2026 and November 30, 2025, and are classified within Level 3 of the fair value hierarchy. In September 2024, we provided a € 15.0 million loan, maturing in July 15, 2026, to an individual related to the seller, secured by a privately owned aircraft and guaranteed by the individual. We recognized interest income of $ 0.5 million and $ 1.1 million for the three and six months ended May 31, 2026, respectively, and $ 0.5 million and $ 0.9 million during the three and six months ended May 31, 2025, respectively. 32 Jefferies Financial Group Inc. Notes to Consolidated Financial Statements (Unaudited) 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, 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 May 31, Six Months Ended May 31, $ in thousands 2026 2025 2026 2025 Beginning balance $ 11,960 $ 2,046 $ 3,681 $ 5,277 Bad debt expense 4,255 1,472 14,419 2,818 Charge-offs ( 16 ) — ( 16 ) ( 3,076 ) Recoveries collected ( 1,670 ) ( 1,203 ) ( 3,555 ) ( 2,704 ) Ending balance (1) $ 14,529 $ 2,315 $ 14,529 $ 2,315 (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 Six Months Ended May 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 886 2,115 3,001 Impairment (1) — ( 58,240 ) ( 58,240 ) Reclassification to held for sale (1) — ( 56,850 ) ( 56,850 ) Balance, at end of period $ 1,536,847 $ 188,634 $ 1,725,481 (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 May 31, 2026. See Note 4, Assets and Liabilities Held for Sale. Six Months Ended May 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 4,457 7,917 12,374 Measurement period adjustments (1) — 1,802 1,802 Balance, at end of period $ 1,537,470 $ 304,644 $ 1,842,114 (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 May 31, 2026 November 30, 2025 Investment banking $ 702.5 $ 702.0 Equities and wealth management 256.0 255.9 Fixed income 578.3 578.0 Asset management 143.0 143.0 Other investments 45.7 158.7 Total $ 1,725.5 $ 1,837.6 Intangible Assets May 31, 2026 Weighted Average Remaining Lives (Years) $ in thousands Gross Cost Accumulated Amortization Net Carrying Amount Customer relationships (1) $ 127,611 $ ( 106,063 ) $ 21,548 4.7 Trademarks and trade names (1) 128,953 ( 48,874 ) 80,079 21.8 Exchange and clearing organization membership interests and registrations 8,708 — 8,708 N/A Other (1) 15,145 ( 14,446 ) 699 2.3 Total $ 280,417 $ ( 169,383 ) $ 111,034 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 at February 28, 2026. See Note 4, Assets and Liabilities Held for Sale. May 2026 Form 10-Q 33 Notes to Consolidated Financial Statements (Unaudited) Amortization Expense For finite life intangible assets, we recognized aggregate amortization expense of $ 2.1 million and $ 10.6 million for the three and six months ended May 31, 2026, respectively, and $ 8.6 million and $ 16.4 million for the three and six months ended May 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 $ 4,354 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 May 31, Six Months Ended May 31, $ in thousands 2026 2025 2026 2025 Revenues from contracts with customers: Investment banking $ 1,204,995 $ 785,455 $ 2,219,950 $ 1,511,116 Commissions and other fees 390,858 344,184 751,931 632,149 Asset management fees 3,593 7,495 10,492 53,303 Real estate revenues 2,295 16,211 4,541 27,292 Internet connection and broadband revenues 54,102 56,668 106,514 114,471 Other contracts with customers 18,967 16,791 37,032 32,899 Total revenue from contracts with customers 1,674,810 1,226,804 3,130,460 2,371,230 Other sources of revenue: Principal transactions 488,666 338,507 976,164 745,737 Revenues from strategic affiliates 19,075 21,336 88,367 64,785 Interest 853,962 878,025 1,667,081 1,723,196 Other 81,684 29,643 127,390 62,231 Total revenues $ 3,118,197 $ 2,494,315 $ 5,989,462 $ 4,967,179 Disaggregation of Revenue Three Months Ended May 31, 2026 $ in thousands Investment Banking and Capital Markets Asset Management Total Major business activity: Investment banking - Advisory $ 674,118 $ — $ 674,118 Investment banking - Underwriting 530,877 — 530,877 Equities (1) 389,218 — 389,218 Fixed income (1) 1,640 — 1,640 Asset management — 3,593 3,593 Other investments — 75,364 75,364 Total $ 1,595,853 $ 78,957 $ 1,674,810 Primary geographic region: Americas $ 1,161,291 $ 22,773 $ 1,184,064 Europe and the Middle East 277,424 55,131 332,555 Asia-Pacific 157,138 1,053 158,191 Total $ 1,595,853 $ 78,957 $ 1,674,810 Three Months Ended May 31, 2025 $ in thousands Investment Banking and Capital Markets Asset Management Total Major business activity: Investment banking - Advisory $ 457,725 $ — $ 457,725 Investment banking - Underwriting 327,730 — 327,730 Equities (1) 342,179 — 342,179 Fixed income (1) 2,005 — 2,005 Asset management — 7,495 7,495 Other investments — 89,670 89,670 Total $ 1,129,639 $ 97,165 $ 1,226,804 Primary geographic region: Americas $ 788,139 $ 38,522 $ 826,661 Europe and the Middle East 238,528 57,695 296,223 Asia-Pacific 102,972 948 103,920 Total $ 1,129,639 $ 97,165 $ 1,226,804 34 Jefferies Financial Group Inc. Notes to Consolidated Financial Statements (Unaudited) Six Months Ended May 31, 2026 $ in thousands Investment Banking and Capital Markets Asset Management Total Major business activity: Investment banking - Advisory $ 1,201,246 $ — $ 1,201,246 Investment banking - Underwriting 1,018,704 — 1,018,704 Equities (1) 748,599 — 748,599 Fixed income (1) 3,332 — 3,332 Asset management — 10,492 10,492 Other investments — 148,087 148,087 Total $ 2,971,881 $ 158,579 $ 3,130,460 Primary geographic region: Americas $ 2,204,238 $ 47,999 $ 2,252,237 Europe and the Middle East 514,719 108,655 623,374 Asia-Pacific 252,924 1,925 254,849 Total $ 2,971,881 $ 158,579 $ 3,130,460 Six Months Ended May 31, 2025 $ in thousands Investment Banking and Capital Markets Asset Management Total Major business activity: Investment banking - Advisory $ 855,505 $ — $ 855,505 Investment banking - Underwriting 655,611 — 655,611 Equities (1) 628,229 — 628,229 Fixed income (1) 3,920 — 3,920 Asset management — 53,303 53,303 Other investments — 174,662 174,662 Total $ 2,143,265 $ 227,965 $ 2,371,230 Primary geographic region: Americas $ 1,536,814 $ 109,593 $ 1,646,407 Europe and the Middle East 411,649 116,488 528,137 Asia-Pacific 194,802 1,884 196,686 Total $ 2,143,265 $ 227,965 $ 2,371,230 (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 May 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 six months ended May 31, 2026, we recognized $ 19.2 million and $ 25.2 million, respectively, compared with $10.1 million and $ 64.9 million during the three and six months ended May 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 six months ended May 31, 2026, we recognized $ 8.9 million and $ 16.6 million, respectively, compared with $7.7 million and $ 15.5 million during the three and six months ended May 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 May 31, 2026 and November 30, 2025 was $ 62.6 million and $ 92.3 million, respectively, which is recorded in Accrued expenses and other liabilities. During the three and six months ended May 31, 2026, we recognized revenues of $ 20.1 million and $ 61.1 million, respectively, compared with $ 25.5 million and $ 38.5 million for the three and six months ended May 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 $ 433.6 million and $ 396.8 million at May 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 May 31, 2026 and November 30, 2025, capitalized costs to fulfill a contract were $ 5.6 million and $ 5.2 million, respectively, which are recorded in Receivables – Fees, interest and other. During the three and six months ended May 31, 2026 and, we recognized expenses of $ 1.7 million and $ 2.9 million, respectively, compared with $ 1.4 million and $ 1.7 million during the three and six months ended May 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 six months ended May 31, 2026 and May 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 May 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), 7.6 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 19.3 million at May 31, 2026. May 2026 Form 10-Q 35 Notes to Consolidated Financial Statements (Unaudited) 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 May 31, Six Months Ended May 31, $ in millions 2026 2025 2026 2025 Restricted cash awards $ 124.9 $ 131.5 $ 257.5 $ 246.6 Restricted stock and RSUs (1) 22.9 18.2 73.6 53.8 Profit sharing plan 2.2 1.9 10.0 9.3 Total compensation cost $ 150.0 $ 151.6 $ 341.1 $ 309.7 (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 May 31, 2026: $ in millions Remaining Unamortized Amounts Weighted Average Vesting Period (in Years) Non-vested share-based awards $ 216.7 3.3 Restricted cash awards (1) 1,110.0 2.7 Total $ 1,326.7 (1) The remaining unamortized amount is included within Other assets. Note 15. Borrowings Short-Term Borrowings $ in thousands May 31, 2026 November 30, 2025 Bank loans and other credit facilities $ 454,453 $ 568,418 Fixed rate callable note 1,149,029 1,198,788 Total short-term borrowings (1) $ 1,603,482 $ 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 May 31, 2026 and November 30, 2025, the weighted average interest rate on bank loans outstanding is 4.79 % 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 May 31, 2026, we were in compliance with all covenants under these credit facilities. 36 Jefferies Financial Group Inc. Notes to Consolidated Financial Statements (Unaudited) Long-Term Debt $ in thousands Maturity (Fiscal Years) May 31, 2026 November 30, 2025 Parent Co. unsecured borrowings Fixed rate 2026 $ 25 $ 869,461 2027 1,119,684 1,117,106 2028 995,548 1,029,501 2029 589,966 586,495 2030 1,052,182 1,063,637 2031 and Later 7,381,048 4,782,178 Variable rate 2026 45,488 45,235 2027 350,000 — 2029 1,313 1,312 2031 and Later 71,932 71,924 Structured notes (1) 2026 52,732 102,743 2027 98,602 94,777 2028 150,090 176,009 2029 184,486 178,956 2030 380,072 443,825 2031 and Later 2,412,493 2,156,638 Total Parent Co. unsecured borrowings (2) 14,885,661 12,719,797 Subsidiaries secured borrowings Fixed rate 2026 93,558 166,414 2027 646,710 630,114 2028 750,692 746,556 2029 260,596 191,068 Variable rate 2026 12,958 525,000 2027 124,661 124,458 2028 525,000 — 2030 and Later 39,585 — Total Subsidiaries secured borrowings 2,453,760 2,383,610 Subsidiaries unsecured borrowings Fixed rate 2029 — 3,937 2030 — 1,416 2031 and Later 647,970 633,372 Variable rate 2026 — 100,000 2027 53,591 53,759 Total Subsidiaries unsecured borrowings 701,561 792,484 Total long-term debt (3) $ 18,040,982 $ 15,895,891 Fair value $ 18,071,116 $ 16,122,970 Weighted-average interest rate (4) 5.20 % 5.11 % Interest rate range (4) 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. 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. (2) Carrying values of certain borrowings, totaling $ 2.67 billion and $ 2.68 billion for May 31, 2026 and November 30, 2025, respectively, include cumulative hedging adjustments of $ 151.3 million and $ 142.8 million at May 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 May 31, 2026 and November 30, 2025, our borrowings under several credit facilities classified within Long-term debt amounted to $ 1.05 billion 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 May 31, 2026 , we were in compliance with all covenants under theses credit agreements. (4) Interest rates exclude structured notes. May 2026 Form 10-Q 37 Notes to Consolidated Financial Statements (Unaudited) For the six months ended May 31, 2026, long-term debt increased by $ 2.15 billion to $ 18.04 billion at May 31, 2026, primarily due to proceeds of $ 2.81 billion from the issuances of unsecured senior notes, $ 350.0 million from a drawdown of a revolver, $ 89.8 million from net issuances of structured notes, $ 30.1 million from increased subsidiaries’ borrowings, $ 26.4 million from valuation adjustments and $ 29.0 million from currency losses on foreign currency borrowings. These increases were partially offset by repayments of $ 1.12 billion on our unsecured senior notes 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). On July 7, 2026, we priced € 850.0 million aggregate principal amount of 4.500 % Senior Unsecured Notes due 2033. The offering is expected to close several business days after the pricing date, subject to customary closing conditions. Note 16. Total Equity Preferred Shares At May 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. As of November 30, 2025, SMBC had exchanged approximately 27.6 million shares of voting common stock for 55,125 shares of 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 May 31, 2026 , there are currently 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. May 31, 2026 (1) Common Shares Par Value Authorized Shares Outstanding Shares Voting common shares $ 1.00 552,264,500 194,145,489 Non-voting common shares $ 1.00 47,735,500 9,247,081 Total 600,000,000 203,392,570 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. At May 31, 2026, SMBC owns approximately 18.7 % of our common stock and 17.2 % on a fully-diluted basis. On June 30, 2026, SMBC converted 55,125 preferred shares for 27.6 million non-voting common shares in accordance with the Exchange Agreement. During the six months ended May 31, 2026, we repurchased a total 7.0 million of our common shares for $ 371.7 million, or an average price of $ 53.42 per share, including 5.0 million of our common shares for $ 264.9 million in the open market under our share repurchase program, and 2.0 million of our common shares for $ 106.8 million in connection with net-share tax withholding under our equity compensation plan. In June 2026, the Board of Directors has authorized the repurchase of common stock up to $ 250.0 million under our share repurchase program. 38 Jefferies Financial Group Inc. 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 May 31, 2026 Six Months Ended May 31, 2026 Voting Non-Voting Voting Non-Voting Basic net earnings per share: Numerator Allocation of distributed earnings (cash dividends paid) $ 81,710 $ 3,699 $ 171,338 $ 3,699 Allocation of undistributed earnings 138,508 2,317 205,424 1,701 Net earnings attributable to common shareholders for basic earnings per share $ 220,218 $ 6,016 $ 376,762 $ 5,400 Denominator Weighted average common shares outstanding 200,567 3,518 205,109 1,778 Weighted average shares of restricted stock outstanding with future service required ( 2,080 ) — ( 2,114 ) — Weighted average RSUs outstanding with no future service required 11,782 — 11,771 — Number of shares used in per share computation 210,269 3,518 214,766 1,778 Basic net earnings per share (1) $ 1.05 $ 1.71 $ 1.75 $ 3.04 Diluted net earnings per share: Numerator Allocation of total earnings for basic computation $ 220,218 $ 6,016 $ 376,762 $ 5,400 Reallocation of total earnings as a result of participating securities 3 — — — Reallocation of total earnings as a result of conversion of preferred shares to non-voting common shares — 29,181 — 48,414 Net earnings attributable to common shareholders for diluted earnings per share $ 220,221 $ 35,197 $ 376,762 $ 53,814 Denominator Number of shares used in basic computation 210,269 3,518 214,766 1,778 Weighted average effect of dilutive securities: Add: Participating securities 5 — — — Add: Conversion of preferred shares to non-voting common shares — 27,563 — 27,563 Add: Stock options and other share-based awards 4,082 — 4,781 — Add: Senior executive compensation plan restricted stock unit awards 2,388 — 2,400 — Number of shares used in per share computation 216,744 31,081 221,947 29,341 Diluted net earnings per share (1) $ 1.02 $ 1.13 $ 1.70 $ 1.83 (1) As a result of the timing of SMBC’s exchange of 9.2 million shares of Jefferies’ voting common stock for shares of non-voting common stock, 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 six month periods, their weighted 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. May 2026 Form 10-Q 39 Notes to Consolidated Financial Statements (Unaudited) In thousands, except per share amounts Three Months Ended May 31, 2025 Six Months Ended May 31, 2025 Numerator for earnings per common share from continuing operations: Net earnings from continuing operations $ 91,395 $ 228,244 Less: Net losses attributable to noncontrolling interests ( 7,668 ) ( 14,651 ) Allocation of earnings to participating securities (1) ( 11,046 ) ( 26,940 ) Net earnings from continuing operations attributable to common shareholders for basic earnings per share $ 88,017 $ 215,955 Net earnings from continuing operations attributable to common shareholders for diluted earnings per share $ 88,017 $ 215,955 Denominator for earnings per common share: Weighted average common shares outstanding 206,254 206,150 Weighted average shares of restricted stock outstanding with future service required ( 2,248 ) ( 2,276 ) Weighted average RSUs outstanding with no future service required 11,091 10,944 Weighted average basic common shares 215,097 214,818 Stock options and other share-based awards 4,262 4,984 Senior executive compensation plan RSU awards 2,538 2,581 Weighted average diluted common shares (2) 221,897 222,383 Earnings per common share: Basic $ 0.41 $ 1.01 Diluted $ 0.40 $ 0.97 (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 six months ended May 31, 2025. Dividends paid on participating securities were $ 11.0 million and $ 22.1 million for the three and six months ended May 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 May 31, 2025 were 13.4 % of the weighted average common shares outstanding for three and six months ended May 31, 2025. 40 Jefferies Financial Group Inc. Notes to Consolidated Financial Statements (Unaudited) Dividends Six Months Ended May 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 Six Months Ended May 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 On June 24, 2026, the Board of Directors declared a dividend of $ 0.40 per common share to be paid on August 28, 2026 to common shareholders of record at August 18, 2026. During the both three and six months ended May 31, 2026 and 2025, we paid cash dividends related to the Series B Preferred stock of $ 11.0 million and $ 22.1 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 May 31, 2026 November 30, 2025 Net unrealized losses on available-for-sale securities $ ( 304 ) $ ( 1,796 ) Net currency translation adjustments and other ( 141,600 ) ( 145,280 ) Net unrealized losses related to instrument-specific credit risk ( 177,521 ) ( 200,688 ) Net cash flow hedges ( 254 ) — Net minimum pension liability ( 36,364 ) ( 36,670 ) Total accumulated other comprehensive loss, net of tax $ ( 356,043 ) $ ( 384,434 ) Amounts reclassified out of accumulated other comprehensive income (loss) to net earnings: Three Months Ended May 31, Six Months Ended May 31, $ in thousands 2026 2025 2026 2025 Net unrealized gains on instrument-specific credit risk at fair value (1) $ 2,483 $ 5,121 $ 5,790 $ 7,658 Amortization of defined benefit pension plan actuarial losses (2) ( 156 ) ( 67 ) ( 311 ) ( 826 ) Total reclassifications for the period, net of tax $ 2,327 $ 5,054 $ 5,479 $ 6,832 (1) The amounts include income tax expense of $ 0.8 million and $ 1.8 million for the three and six months ended May 31, 2026, respectively, compared with income tax expense of $ 1.8 million and $ 2.6 million for the three and six months ended May 31, 2025, respectively, which were reclassified to Principal transactions revenues. (2) The amount includes income tax benefit of $ 0.1 million for the six months ended May 31, 2026, compared with an income tax benefit of $ 0.3 million for six months ended May 31, 2025, which were reclassified to Compensation and benefits expenses. Note 17. Income Taxes At May 31, 2026 and November 30, 2025, our total gross unrecognized tax benefits were $ 237.3 million and $ 241.6 million, respectively. At May 31, 2026 and November 30, 2025, we had interest accrued of $ 191.5 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 $ 187.0 million and $ 190.9 million (net of Federal benefit) at May 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 May 31, Six Months Ended May 31, $ in millions 2026 2025 2026 2025 Income tax expense $ 65.6 $ 43.5 $ 118.4 $ 57.7 Effective tax rate 20.8 % 32.3 % 22.4 % 20.2 % 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) $ 13.9 $ 128.7 $ 80.1 $ 0.6 $ 101.9 $ 325.2 Loan commitments (1) 0.6 254.6 104.6 32.9 10.7 403.4 Loan purchase commitments (2) 3,836.4 — — — — 3,836.4 Forward starting reverse repos (3) 2,888.2 — — — — 2,888.2 Forward starting repos (3) 1,683.4 — — — — 1,683.4 Other unfunded commitments (1) 316.3 1,248.0 2,066.4 — — 3,630.7 Total commitments $ 8,738.8 $ 1,631.3 $ 2,251.1 $ 33.5 $ 112.6 $ 12,767.3 (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 May 31, 2026, Jefferies had also entered into back-to-back committed sale contracts aggregating to $ 3.43 billion. (3) At May 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. May 2026 Form 10-Q 41 Notes to Consolidated Financial Statements (Unaudited) 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 May 31, 2026, our outstanding commitments relating to Jefferies Capital Partners, LLC and its private equity funds were $ 9.7 million. Additionally, at May 31, 2026, we had other outstanding equity commitments to invest up to $ 183.5 million with strategic affiliates and $ 116.6 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 May 31, 2026, we had outstanding loan commitments of $ 150.2 million to a client and $ 3.2 million to strategic affiliates. Loan commitments outstanding at May 31, 2026 also include our portion of the outstanding secured revolving credit facility provided to Jefferies Finance, to support loan underwritings 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 May 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 $ 6,506.0 $ 16,334.2 $ 18,427.2 $ 1,459.0 $ 42,726.4 Total derivative contracts $ 6,506.0 $ 16,334.2 $ 18,427.2 $ 1,459.0 $ 42,726.4 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 May 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 $ 558.2 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 May 31, 2026, the aggregate amount of infrastructure improvement bonds outstanding was $ 72.3 million. Standby Letters of Credit. At May 31, 2026, we provided guarantees to certain counterparties in the form of standby letters of credit in the amount of $ 345.5 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 indemnifications in connection with third-party clearing and 42 Jefferies Financial Group Inc. Notes to Consolidated Financial Statements (Unaudited) 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, as a dually-registered U.S. broker-dealer and futures commission merchant (“FCM”), is also subject to Regulation 1.17 of the Commodity Futures Trading Commission (“CFTC”) under the Commodity Exchange Act, which sets forth minimum financial requirements. The minimum net capital requirement in determining excess net capital for a dually registered U.S. broker-dealer and FCM 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 FCM. In June 2026, Jefferies LLC changed its registration status with the CFTC and the NFA from an FCM 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 May 31, 2026, net capital and excess net capital were as follows: $ in thousands Net Capital Excess Net Capital Jefferies LLC $ 1,968,926 $ 1,748,341 JFSI - SEC 245,822 198,013 JFSI - CFTC 245,822 210,333 JIL (1) 2,079,901 1,032,004 Jefferies GmbH (1) 397,293 278,262 (1) Represents an equivalent capital requirement in the respective jurisdiction. At May 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 May 31, 2026, Jefferies LLC had $ 219.1 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 May 31, 2026, Jefferies LLC had $ 264.9 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. • 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. May 2026 Form 10-Q 43 Notes to Consolidated Financial Statements (Unaudited) 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 May 31, Six Months Ended May 31, $ in millions 2026 2025 2026 2025 Investment Banking and Capital Markets: Revenues Non-interest revenues $ 2,020.4 $ 1,413.8 $ 3,821.8 $ 2,817.5 Interest income 536.7 842.6 1,306.9 1,645.2 Total revenues (1) 2,557.1 2,256.4 5,128.7 4,462.7 Interest expense 551.0 786.0 1,326.6 1,593.5 Net revenues (1) 2,006.1 1,470.4 3,802.1 2,869.2 Non-interest expenses Compensation and benefits 1,108.2 786.1 2,129.4 1,555.2 Brokerage and clearing fees 132.7 119.6 254.6 219.8 Technology and communications 146.2 132.6 288.7 260.2 Business development 85.2 70.9 155.4 129.6 Other segment items (3) (4) 218.2 172.9 407.4 349.4 Total non-interest expenses 1,690.5 1,282.1 3,235.5 2,514.2 Earnings before income taxes $ 315.6 $ 188.3 $ 566.6 $ 355.0 Asset Management: Revenues Non-interest revenues $ 211.1 $ 193.1 $ 467.0 $ 414.8 Interest income 26.2 35.4 69.1 78.0 Total revenues (2) 237.3 228.5 536.1 492.8 Interest expense 49.6 73.9 128.1 146.4 Net revenues (2) 187.7 154.6 408.0 346.4 Non-interest expenses Compensation and benefits 80.1 68.7 144.7 140.7 Brokerage and clearing fees 14.7 10.2 26.0 19.4 Technology and communications 16.7 13.6 34.0 25.5 Business development 3.9 9.1 9.1 22.7 Cost of sales 31.3 43.0 61.2 84.6 Other segment items (3) (5) 53.8 72.8 185.3 134.4 Total non-interest expenses 200.5 217.4 460.3 427.3 Losses before income taxes (6) (7) $ ( 12.8 ) $ ( 62.8 ) $ ( 52.3 ) $ ( 80.9 ) Total of Reportable Business Segments: Revenues Non-interest revenues $ 2,231.5 $ 1,606.9 $ 4,288.8 $ 3,232.3 Interest income 562.9 878.0 1,376.0 1,723.2 Total revenues 2,794.4 2,484.9 5,664.8 4,955.5 Interest expense 600.6 859.9 1,454.7 1,739.9 Net revenues 2,193.8 1,625.0 4,210.1 3,215.6 Non-interest expenses Compensation and benefits 1,188.3 854.8 2,274.1 1,695.9 Brokerage and clearing fees 147.4 129.8 280.6 239.2 Technology and communications 162.9 146.2 322.7 285.7 Business development 89.1 80.0 164.5 152.3 Cost of sales 31.3 43.0 61.2 84.6 Other segment items (3) 272.0 245.7 592.7 483.8 Total non-interest expenses 1,891.0 1,499.5 3,695.8 2,941.5 Earnings before income taxes $ 302.8 $ 125.5 $ 514.3 $ 274.1 (1) Includes total net earnings related to equity method investees of $ 17.9 million, $ 5.9 million, $ 38.2 million and $ 10.6 million, respectively. (2) Includes total net earnings (losses) related to equity method investees of $ 3.8 million $ 2.2 million, $ 8.0 million and $ 4.6 million, respectively. 44 Jefferies Financial Group Inc. Notes to Consolidated Financial Statements (Unaudited) (3) Primarily consists of underwriting costs, occupancy and equipment rental, professional services, and depreciation and amortization. (4) Includes depreciation and amortization of $ 34.2 million, $ 29.6 million, $ 67.7 million and $ 39.5 million, respectively. (5) Includes depreciation and amortization of $ 13.1 million, $ 22.6 million, $ 36.5 million and $ 43.7 million, respectively. (6) Consists of (losses) earnings before income taxes of $( 35.7 ) million, $ 4.7 million, $ 44.3 million and $ 18.1 million, respectively, related to asset management fees and investment return and earnings (losses) before taxes of $ 22.9 million, $( 67.5 ) million, $( 96.7 ) million and $( 99.1 ) million, respectively, related to Other investments. (7) Includes losses before income taxes related to non-controlling interests of $ 5.4 million, $ 7.7 million, $ 21.3 million and $ 14.7 million, respectively. Reconciliation of Reportable Segment Information: Three Months Ended May 31, Six Months Ended May 31, $ in millions 2026 2025 2026 2025 Total revenues for reportable segments $ 2,193.8 $ 1,625.0 $ 4,210.1 $ 3,215.6 Other revenues not allocated to segments 12.7 9.4 13.5 11.9 Total consolidated net revenues $ 2,206.5 $ 1,634.4 $ 4,223.6 $ 3,227.5 Total earnings for reportable segments $ 302.8 $ 125.5 $ 514.3 $ 274.1 Earnings not allocated to segments 12.7 9.4 13.5 11.9 Total consolidated earnings $ 315.5 $ 134.9 $ 527.8 $ 286.0 Assets by reportable business segment: $ in millions May 31, 2026 November 30, 2025 Investment Banking and Capital Markets $ 74,202.9 $ 70,335.5 Asset Management 5,337.0 5,676.8 Total assets $ 79,539.9 $ 76,012.3 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 May 31, Six Months Ended May 31, $ in millions 2026 2025 2026 2025 Americas (1) $ 1,529.7 $ 990.3 $ 2,935.5 $ 2,097.3 Europe and the Middle East (2) 477.3 488.2 913.6 859.1 Asia-Pacific 199.5 155.9 374.5 271.1 Net revenues $ 2,206.5 $ 1,634.4 $ 4,223.6 $ 3,227.5 (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 May 31, 2026 and November 30, 2025, we had $ 16.5 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 $ 8.7 million and $ 10.4 million at May 31, 2026 and November 30, 2025, respectively. SMBC We have a strategic alliance with Sumitomo Mitsui Financial Group, Inc., Sumitomo Mitsui Banking Corporation (“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 May 31, 2026 November 30, 2025 Assets Cash and cash equivalents $ 352,961 $ 444,506 Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations 26,337 27,975 Financial instruments owned, at fair value 7,426 395 Securities borrowed 5,403 3,872 Securities purchased under agreements to resell 210,919 357,261 Receivables: Brokers, dealers and clearing organizations 56,168 7,752 Customers — 206 Fees, interest and other 6,263 5,438 Other assets 11,953 6,203 Total assets $ 677,430 $ 853,608 Liabilities Financial instruments sold, not yet purchased, at fair value $ 7,704 $ 6,763 Securities loaned 187,287 620 Securities sold under agreements to repurchase 574,516 638,581 Payables: Brokers, dealers and clearing organizations 688 470 Accrued expenses and other liabilities 26,090 9,537 Long-term debt (1) 350,000 — Total liabilities $ 1,146,285 $ 655,971 (1) We have credit facilities with SMBC totaling $ 1.15 billion with interest rates based on various benchmark rates and associated spreads. May 2026 Form 10-Q 45 Notes to Consolidated Financial Statements (Unaudited) Three Months Ended May 31, Six Months Ended May 31, $ in thousands 2026 2025 2026 2025 Revenues Investment banking $ 4,933 $ 3,814 $ 8,262 $ 7,663 Principal transactions (1) 47,985 3,197 48,312 ( 995 ) Commissions and other fees 877 752 1,400 1,401 Interest 4,883 7,117 9,408 14,734 Total revenues 58,678 14,880 67,382 22,803 Interest expense 9,292 10,844 16,240 21,716 Net revenues $ 49,386 $ 4,036 $ 51,142 $ 1,087 Non-interest expenses Compensation and benefits 6 — $ 1,250 $ — Technology and communications 2,020 — 3,044 — Business development $ 18,540 $ 7,117 28,114 11,805 Other expenses 706 1 1,796 5 Total non-interest expenses $ 21,272 $ 7,118 $ 34,204 $ 11,810 (1) Primarily represents net gains (losses) on interest rate derivatives executed with SMBC. Other Related Party Transactions We have other related party transactions with equity method investees. Refer to Note 10, Investments for further information. 46 Jefferies Financial Group Inc.