What changed in this filing

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Item 1. Financial Statements

2026-10-09 compared with 2026-07-09 · 396 added, 351 removed, 1797 unchanged (29% of the section changed)

1 unchanged sentence

Consolidated Statements of Financial Condition (Unaudited)

May 31, November 30,

August 31, November 30,

$ in thousands, except share and per share amounts

35 unchanged sentences

Series B preferred shares, par value of $ 1 per share, authorized 70,000 shares;

55,125 shares issued and outstanding

0 and 55,125 shares issued and outstanding

Voting common shares, par value $ 1 per share, authorized 552,264,500 and 565,000,000 shares;

14 unchanged sentences

Consolidated Statements of Earnings (Unaudited)

Three Months Ended May 31, Six Months Ended May 31,

Three Months Ended August 31, Nine Months Ended August 31,

$ in thousands, except per share amounts

37 unchanged sentences

Diluted weighted-average common shares outstanding 38,981 — 32,624 —

(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.

(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 2026.

Refer to Note 16, Total Equity, for further discussion.

See accompanying notes to consolidated financial statements.

May 2026 Form 10-Q

August 2026 Form 10-Q

Consolidated Statements of Comprehensive Income (Unaudited)

Three Months Ended May 31, Six Months Ended May 31,

Three Months Ended August 31, Nine Months Ended August 31,

$ in thousands 2026 2025 2026 2025

4 unchanged sentences

Cash flow hedges 517 — 263 —

Unrealized gains on available-for-sale-securities 908 37 1,492 162

Net unrealized gains on available-for-sale-securities 602 99 2,094 261

Total other comprehensive income (loss), net of tax ( 5,879 ) ( 35,232 ) 22,512 48,204

3 unchanged sentences

Comprehensive income attributable to common shareholders $ 278,004 $ 188,754 $ 684,230 $ 488,116

(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.

(1) Includes income tax expense of $ 0.9 million and $ 6.4 million for the three and nine months ended August 31, 2026, respectively, and income tax expense of $ 4.5 million and $ 14.6 million for the three and nine months ended August 31, 2025, respectively.

(2) Includes income tax benefit of $ 1.6 million for the three months ended August 31, 2026 and income tax expense of $ 6.1 million for the nine months ended August 31, 2026.

Includes income tax benefit of $ 15.1 million for the three months ended August 31, 2025 and income tax expense of $ 3.4 million for the nine months ended August 31, 2025.

See accompanying notes to consolidated financial statements.

1 unchanged sentence

Consolidated Statements of Changes in Equity (Unaudited)

Three Months Ended May 31, Six Months Ended May 31,

Three Months Ended August 31, Nine Months Ended August 31,

$ in thousands, except par value and per share amounts 2026 2025 2026 2025

1 unchanged sentence

Balance, beginning of period $ 55 $ 55 $ 55 $ 55

Conversion of preferred shares into non-voting common shares ( 55 ) — ( 55 ) —

Balance, end of period $ — $ 55 $ — $ 55

3 unchanged sentences

Exchange of voting for non-voting common shares ( 3,770 ) — ( 13,017 ) —

( 9,247 ) — ( 9,247 ) —

Other 32 24 4,086 1,511

3 unchanged sentences

Exchange of voting for non-voting common shares 3,770 — 13,017 —

9,247 — 9,247 —

Conversion of preferred shares into non-voting common shares 27,562 — 27,562 —

Balance, end of period $ 40,579 $ — $ 40,579 $ —

3 unchanged sentences

Purchase of common shares for treasury ( 68,204 ) ( 902 ) ( 432,960 ) ( 57,751 )

Conversion of preferred shares into non-voting common shares ( 27,507 ) — ( 27,507 ) —

Dividend equivalents 7,153 6,138 23,574 23,089

13 unchanged sentences

Dividends - preferred shares — ( 11,025 ) ( 22,050 ) ( 33,075 )

Other 5 — — —

Balance, end of period $ 8,996,409 $ 8,461,907 $ 8,996,409 $ 8,461,907

10 unchanged sentences

See accompanying notes to consolidated financial statements.

May 2026 Form 10-Q

August 2026 Form 10-Q

Consolidated Statements of Cash Flows (Unaudited)

Six Months Ended May 31,

Nine Months Ended August 31,

$ in thousands 2026 2025

1 unchanged sentence

Net earnings $ 697,577 $ 470,748

Adjustments to reconcile net earnings to net cash used in operating activities:

Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:

Depreciation and amortization 128,699 144,434

4 unchanged sentences

Distributions received on investments in related parties 52,400 71,368

Loss on assets held for sale — 12,566

Other adjustments 47,095 434,110

14 unchanged sentences

Accrued expenses and other liabilities 85,540 ( 432,723 )

Net cash used in operating activities ( 137,864 ) ( 3,643,497 )

Net cash provided by (used in) operating activities 2,453,506 ( 3,459,309 )

Cash flows from investing activities:

1 unchanged sentence

Capital distributions from investments and repayments of loans from related parties 593,556 379,193

Originations and purchases of loans, notes and other receivables ( 24,782 ) —

Principal collections of loans, notes and other receivables 156 —

Net payments on premises and equipment ( 162,203 ) ( 151,425 )

Proceeds from assets held for sale — 26,843

Net cash used in investing activities ( 359,668 ) ( 211,727 )

Jefferies Financial Group Inc.

Consolidated Statements of Cash Flows (Unaudited)

Nine Months Ended August 31,

$ in thousands 2026 2025

Cash flows from financing activities:

16 unchanged sentences

Cash, cash equivalents, and restricted cash at end of period $ 18,061,538 $ 12,570,092

Jefferies Financial Group Inc.

Consolidated Statements of Cash Flows (Unaudited)

Six Months Ended May 31,

Nine Months Ended August 31,

$ in thousands 2026 2025

3 unchanged sentences

Income taxes, net (1) 209,106 235,549

(1) Includes the purchase of tax credits in the aggregate of $ 56.2 million for the six months ended May 31, 2026.

(1) Includes the purchase of tax credits in the aggregate of $ 60.6 million and $ 149.7 million for the nine months ended August 31, 2026 and 2025, respectively.

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.

During the nine months ended August 31, 2026, we exchanged real estate properties with a fair market value of $ 40.0 million.

During the nine months ended August 31, 2025, we donated land with a fair market value of $ 5.7 million.

Noncash financing activities:

During the nine months ended August 31, 2026, 55,125 preferred shares were converted into 27,562,500 non-voting common shares.

Cash, cash equivalents and restricted cash by category in our Consolidated Statements of Financial Condition:

May 31, November 30,

August 31, November 30,

$ in thousands 2026 2025

3 unchanged sentences

See accompanying notes to consolidated financial statements.

May 2026 Form 10-Q

August 2026 Form 10-Q

Notes to Consolidated Financial Statements

32 unchanged sentences

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.

Subsequent to August 31, 2026, Stratos Group International, LLC (“Stratos”), a subsidiary of Jefferies, entered into a definitive agreement with AvaTrade Markets Ltd.

to sell substantially all of its assets and business operations.

The acquired assets are expected to be migrated over the next 120 days.

Basis of Presentation

23 unchanged sentences

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.

During the three and nine months ended August 31, 2026, there were no significant changes made to the Company’s significant accounting policies.

Accounting Developments

6 unchanged sentences

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

The adoption of ASU 2023-09

August 2026 Form 10-Q

Notes to Consolidated Financial Statements

is expected to affect disclosures only and will not have an impact on our financial condition, results of operations or cash flows.

In November 2024, the FASB issued ASU No.

23 unchanged sentences

Assets and Liabilities Held for Sale

During 2026, we accepted a binding offer from a third party for the sale of Tessellis.

During 2026, we accepted a binding offer from a third party for the sale of Tessellis S.p.A.

(“Tessellis”).

We expect the sale to close during the first quarter of 2027.

3 unchanged sentences

Tessellis’ major classes of assets and liabilities:

$ in thousands May 31, 2026

$ in thousands August 31, 2026

Assets held for sale:

15 unchanged sentences

Fair Value Disclosures

May 31, 2026 (1)

August 31, 2026 (1)

$ in thousands Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting (2) Total

19 unchanged sentences

Sovereign obligations 841,077 728,494 — — 1,569,571

Residential mortgage-backed and other asset-backed securities — 9,000 — — 9,000

Loans — 116,966 1,263 — 118,229

4 unchanged sentences

Long-term debt — 2,920,617 1,021,303 — 3,941,920

(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.

(1) Excludes investments at fair value based on net asset value (“NAV”) of $ 1.38 billion at August 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

August 2026 Form 10-Q

Notes to Consolidated Financial Statements

40 unchanged sentences

Information about our investments in entities that have the characteristics of an investment company:

August 31, 2026

$ in thousands Fair Value (1) Unfunded Commitments Redemption Frequency Redemption Notice Period

27 unchanged sentences

(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

August 2026 Form 10-Q

Notes to Consolidated Financial Statements

Level 3 Rollforwards

Three Months Ended May 31, 2026

$ in thousands Balance at February 28, 2026

Three Months Ended August 31, 2026

$ in thousands Balance at May 31, 2026

Total gains/losses (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into/

(out of) Level 3 Balance at May 31, 2026

(out of) Level 3 Balance at August 31, 2026

For instruments still held at

May 31, 2026, changes in unrealized gains (losses) included in:

August 31, 2026, changes in unrealized gains (losses) included in:

Earnings (1) Other comprehensive income

17 unchanged sentences

Long-term debt 1,070,114 ( 19,476 ) — — ( 20,479 ) 28,231 ( 37,087 ) 1,021,303 27,097 ( 4,324 )

Six Months Ended May 31, 2026

Nine Months Ended August 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

(out of) Level 3 Balance at August 31, 2026

For instruments still held at

May 31, 2026, changes in unrealized gains (losses) included in:

August 31, 2026, changes in unrealized gains (losses) included in:

Earnings (1) Other comprehensive income

20 unchanged sentences

Notes to Consolidated Financial Statements

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.

Analysis of Level 3 Assets and Liabilities for the Three Months Ended August 31, 2026

Transfers of assets of $ 101.7 million from Level 2 or NAV to Level 3 of the fair value hierarchy are primarily attributed to:

• Investments at fair value of $ 74.4 million, CDOs and CLOs of $ 14.1 million, Loan and other receivables of $ 8.6 million and Other ABS of $ 4.0 million due to reduced pricing transparency.

Transfers of assets of $ 34.8 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.

• Other ABS of $ 14.8 million, CDOs and CLOs of $ 13.9 million and Corporate equity securities of $ 5.7 million due to greater pricing transparency supporting classification into Level 2.

Transfers of liabilities of $ 34.0 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.

• Structured notes within Long-term debt of $ 19.7 million and certain derivatives of $ 13.8 million due to reduced market and pricing transparency.

Transfers of liabilities of $ 64.9 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.

• Structured notes within Long-term debt of $ 56.8 million and certain derivatives of $ 8.0 million due to greater pricing and market transparency.

Net losses on Level 3 assets were $ 18.7 million and net losses on Level 3 liabilities were $ 41.9 million for the three months ended August 31, 2026.

Net losses on Level 3 assets were primarily due to decreased market values across Other ABS, Corporate equity securities and CDOs and CLOs, partially offset by increased market values of Investments at fair value and Corporate debt securities.

Net losses on Level 3 liabilities were primarily due to increased valuations of certain Derivatives and Other secured financings, partially offset by a decrease of structured notes within Long-term debt.

Analysis of Level 3 Assets and Liabilities for the Nine Months Ended August 31, 2026

Transfers of assets of $ 171.4 million from Level 2 or NAV to Level 3 of the fair value hierarchy are primarily attributed to:

• Investments at fair value of $ 74.4 million, Other ABS of $ 56.3 million, CDOs and CLOs of $ 31.7 million and Loan and other receivables of $ 8.4 million due to reduced pricing transparency.

Transfers of assets of $ 150.4 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.

• CDOs and CLOs of $ 52.4 million, Loans and other receivables of $ 50.9 million, Other ABS of $ 36.3 million, Corporate equity securities of $ 5.5 million and Corporate debt securities of $ 5.2 million due to greater pricing transparency supporting classification into Level 2.

Transfers of liabilities of $ 46.3 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.

• Structured notes within Long-term debt of $ 46.2 million due to pricing transparency.

Transfers of liabilities of $ 101.7 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

• Structured notes within Long-term debt of $ 62.9 million, certain Derivatives of $ 29.3 million and Loans of $ 7.4 million due to greater pricing and market transparency.

Net losses on Level 3 assets were $ 52.4 million and net losses on Level 3 liabilities were $ 8.6 million for the nine months ended August 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, Investments at fair value, Corporate equity securities and Corporate debt securities.

Net losses on Level 3 liabilities were primarily due to increased valuations of certain Derivatives and Other secured financings, partially offset by decreased market values of structured notes within Long-term debt, Corporate equity securities and loans.

August 2026 Form 10-Q

Notes to Consolidated Financial Statements

Three Months Ended May 31, 2025

$ in thousands Balance at February 28, 2025

Three Months Ended August 31, 2025

$ in thousands Balance at May 31, 2025

Total gains/losses (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into/

(out of) Level 3 Balance at May 31, 2025

(out of) Level 3 Balance at August 31, 2025

For instruments still held at

May 31, 2025, changes in unrealized gains (losses) included in:

August 31, 2025, changes in unrealized gains (losses) included in:

Earnings (1) Other comprehensive income

11 unchanged sentences

Corporate debt securities 644 126 ( 119 ) — ( 270 ) — 107 488 ( 117 ) —

RMBS 15 ( 15 ) — — — — — — — —

CMBS 1,153 — — 35 — — — 1,188 — —

3 unchanged sentences

Long-term debt 991,156 54,332 — — ( 2,050 ) 29,155 ( 1,429 ) 1,071,164 ( 7,342 ) ( 44,940 )

Six Months Ended May 31, 2025

Nine Months Ended August 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

(out of) Level 3 Balance at August 31, 2025

For instruments still held at

May 31, 2025, changes in unrealized gains (losses) included in:

August 31, 2025, changes in unrealized gains (losses) included in:

Earnings (1) Other comprehensive income

22 unchanged sentences

Notes to Consolidated Financial Statements

Analysis of Level 3 Assets and Liabilities for the Three Months Ended May 31, 2025

Analysis of Level 3 Assets and Liabilities for the Three Months Ended August 31, 2025

Transfers of assets of $ 64.4 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.

• Loan and other receivables of $ 43.5 million, CDOs and CLOs of $ 12.6 million and Other ABS of $ 6.7 million due to reduced pricing transparency.

Transfers of assets of $ 94.5 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.

• Other ABS of $ 50.7 million, CDOs and CLOs of $ 27.1 million, Corporate debt securities of $ 12.3 million and Loans and other receivables of $ 4.3 million due to greater pricing transparency supporting classification into Level 2.

Transfers of liabilities of $ 16.0 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to:

1 unchanged sentence

Transfers of liabilities of $ 22.2 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

• Structured notes within Long-term debt of $ 14.5 million and Net derivatives of $ 7.7 million due to greater pricing and market transparency.

Net gains on Level 3 assets were $ 30.0 million and net losses on Level 3 liabilities were $ 65.5 million for the three months ended August 31, 2025.

Net gains on Level 3 assets were primarily due to increased market values across Corporate equity securities, Investments at fair value, Loans and other receivables and Other ABS, partially offset by decreased market values of CDOs and CLOs.

Net losses on Level 3 liabilities were primarily due to increased valuations of structured notes within Long-term debt, certain derivatives and Loans.

Analysis of Level 3 Assets and Liabilities for the Nine Months Ended August 31, 2025

Transfers of assets of $ 99.5 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.

• Loan and other receivables of $ 38.2 million, Corporate equity securities of $ 32.2 million, CDOs and CLOs of $ 18.6 million and Other ABS of $ 10.0 million due to reduced pricing transparency.

Transfers of assets of $ 123.5 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.

• Corporate equity securities of $ 50.8 million, CDOs and CLOs of $ 35.4 million, Loans and other receivables of $ 20.3 million, Investments at fair value of $ 10.0 million, Other ABS of $ 4.4 million and Corporate debt securities of $ 2.5 million due to greater pricing transparency supporting classification into Level 2.

Transfers of liabilities of $ 21.3 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to:

1 unchanged sentence

Transfers of liabilities of $ 42.1 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

Notes to Consolidated Financial Statements

• Structured notes within Long-term debt of $ 32.8 million and certain Derivatives of $ 9.2 million due to greater pricing and market transparency.

Net gains on Level 3 assets were $ 25.1 million and net losses on Level 3 liabilities were $ 6.4 million for the nine months ended August 31, 2025.

Net gains on Level 3 assets were primarily due to increased market values across Corporate equity securities and Investments at fair value, partially offset by decreased valuations of CDOs and CLOs and Loans and other receivables.

Net losses on Level 3 liabilities were primarily due to increased valuations of structured notes within Long-term debt, partially offset by decreased market values of certain Derivatives and Loans.

Significant Unobservable Inputs used in Level 3 Fair Value Measurements

8 unchanged sentences

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.

Jefferies Financial Group Inc.

August 2026 Form 10-Q

Notes to Consolidated Financial Statements

August 31, 2026

Financial Instruments Owned Fair Value

5 unchanged sentences

Discounted cash flows Discount rate/yield 17 % —

Scenario analysis Estimated recovery percentage 6 % —

CDOs and CLOs $ 69,063 Discounted cash flows Constant prepayment rate 15 % - 20 % 17 %

15 unchanged sentences

Derivatives $ 17,242

Interest rate swaps Market approach Basis points upfront 0.2 —

Equity options Volatility benchmarking Volatility 94 % —

Discounted cash flows Borrow rate 4 % - 6 % 4 %

Investments at fair value $ 211,908

10 unchanged sentences

Structured notes Market approach Price $ 60 - $ 119 $ 98

May 2026 Form 10-Q

Jefferies Financial Group Inc.

Notes to Consolidated Financial Statements

42 unchanged sentences

Structured notes Market approach Price $ 72 - $ 120 $ 101

Jefferies Financial Group Inc.

August 2026 Form 10-Q

Notes to Consolidated Financial Statements

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.

At August 31, 2026 and November 30, 2025, asset exclusions consisted of $ 36.0 million and $ 28.2 million, respectively, primarily composed of CDOs and CLOs, Investments at fair value, certain derivatives, other ABS and CMBS.

At August 31, 2026 and November 30, 2025, liability exclusions consisted of $ 2.2 million and $ 0.2 million, respectively, primarily composed of loans, corporate equity securities and corporate debt securities.

Uncertainty of Fair Value Measurement from Use of Significant Unobservable Inputs

7 unchanged sentences

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.

• CDOs and CLOs, corporate debt securities, RMBS, certain derivatives and other ABS using a discounted cash flows valuation technique.

A significant increase (decrease) in isolation in the constant default rate, loss severity or cumulative loss rate would result in a significantly lower (higher) fair value measurement.

The impact of changes in the constant prepayment rate and duration would have differing impacts depending on the capital structure and type of security.

A significant increase (decrease) in the discount rate/security yield would result in a significantly lower (higher) fair value measurement.

A significant increase (decrease) in the borrow rate, discount rate and security yield would result in a significantly lower (higher) fair value measurement.

• Corporate equity securities and derivative equity options using volatility benchmarking.

4 unchanged sentences

Three Months Ended

May 31, Six Months Ended

August 31, Nine Months Ended

$ in thousands 2026 2025 2026 2025

8 unchanged sentences

Difference between contractual principal and fair value:

$ in thousands May 31,

$ in thousands August 31,

2026 November 30,

7 unchanged sentences

Fair value of loans and other receivables on nonaccrual status:

$ in thousands May 31,

$ in thousands August 31,

2026 November 30,

5 unchanged sentences

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

There were no impairments or downward adjustments on these investments during both the three and nine months ended August 31, 2026 and 2025.

Jefferies Financial Group Inc.

Notes to Consolidated Financial Statements

9 unchanged sentences

master netting agreements or similar agreements with counterparties.

May 31, 2026 (1)

August 31, 2026 (1)

Assets Liabilities

41 unchanged sentences

(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.

Jefferies Financial Group Inc.

August 2026 Form 10-Q

Notes to Consolidated Financial Statements

42 unchanged sentences

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

$ in thousands Three Months Ended May 31, Six Months Ended May 31,

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

Gains (Losses) 2026 2025 2026 2025

2 unchanged sentences

Total $ ( 10,030 ) $ ( 12,486 ) $ ( 29,833 ) $ ( 37,188 )

(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.

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

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

$ in thousands Three Months Ended May 31, Six Months Ended May 31,

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

Gains (Losses) 2026 2025 2026 2025

3 unchanged sentences

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,

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

Gains (Losses) 2026 2025 2026 2025

2 unchanged sentences

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

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

Gains (Losses) 2026 2025 2026 2025

7 unchanged sentences

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

Jefferies Financial Group Inc.

Notes to Consolidated Financial Statements

OTC Derivatives

Remaining contract maturities at May 31, 2026:

Remaining contract maturities at August 31, 2026:

OTC Derivative Assets (1) (2) (3)

24 unchanged sentences

Total OTC derivative liabilities included in Financial instruments sold, not yet purchased $ 1,719,744

(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.

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

(2) OTC derivative assets and liabilities in the tables above are gross of collateral pledged.

OTC derivative assets and liabilities are recorded net of collateral pledged in our Consolidated Statements of Financial Condition.

At May 31, 2026, cash collateral received and pledged was $ 678.6 million and $ 804.5 million, respectively.

At August 31, 2026, cash collateral received and pledged was $ 569.5 million and $ 810.1 million, respectively.

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

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

OTC derivative assets at May 31, 2026:

OTC derivative assets at August 31, 2026:

Counterparty credit quality (1):

9 unchanged sentences

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

August 31, 2026

External Credit Rating

10 unchanged sentences

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

$ in millions August 31, 2026 November 30, 2025

Derivative instrument liabilities with credit-risk-related contingent features $ 231.2 $ 107.3

4 unchanged sentences

The initial margin will be returned if counterparties elect to terminate the contract after a downgrade.

Jefferies Financial Group Inc.

August 2026 Form 10-Q

Notes to Consolidated Financial Statements

Collateralized Transactions

August 31, 2026

$ in millions Securities Lending Arrangements Repurchase Agreements Obligation to Return Securities Received as Collateral, at Fair Value Total

19 unchanged sentences

Total $ 2,540.8 $ 18,261.2 $ 200.5 $ 21,002.5

August 31, 2026

$ in millions Overnight and Continuous Up to 30 Days 31-90

15 unchanged sentences

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

At August 31, 2026 and November 30, 2025, the approximate fair value of securities received as collateral by us that may be sold or repledged was $ 59.63 billion and $ 49.68 billion, respectively.

At August 31, 2026 and November 30, 2025, a substantial portion of the securities received by us had been sold or repledged.

Jefferies Financial Group Inc.

Notes to Consolidated Financial Statements

2 unchanged sentences

Generally, transactions are executed under standard industry agreements, including, but not limited to, master securities lending agreements (securities lending transactions) and master repurchase agreements (repurchase transactions).

August 31, 2026

$ in millions Gross Amounts Netting in Consolidated Statements of Financial Condition Net Amounts in Consolidated Statements of Financial Condition Additional Amounts Available for Setoff (1) Available Collateral (2) Net Amount (3)

33 unchanged sentences

These securities are included in Financial instruments owned, at fair value and are generally initially categorized as Level 2 within the fair value hierarchy.

Jefferies Financial Group Inc.

August 2026 Form 10-Q

Notes to Consolidated Financial Statements

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

Three Months Ended May 31, Six Months Ended May 31,

Three Months Ended August 31, Nine Months Ended August 31,

$ in millions 2026 2025 2026 2025

2 unchanged sentences

Cash flows received on retained interests 10.8 6.7 35.8 18.1

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

$ in millions August 31, 2026 November 30, 2025

Securitization Type Total

14 unchanged sentences

The related liabilities do not have recourse to our general credit.

$ in millions May 31, 2026 November 30, 2025

$ in millions August 31, 2026 November 30, 2025

Financial instruments owned $ — $ 456.1

21 unchanged sentences

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

Jefferies Financial Group Inc.

Notes to Consolidated Financial Statements

Consolidated VIEs:

May 31, 2026 (1)

August 31, 2026 (1)

$ in millions Secured Funding Vehicles Other

23 unchanged sentences

Other secured financings (5) 3,042.4 21.6

Repurchase agreement — 147.8

Securities sold under agreements to repurchase — 147.8

Other liabilities (6) 7.3 85.1

3 unchanged sentences

(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.

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

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

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

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

Secured Funding Vehicles.

2 unchanged sentences

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.

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.

From time to time, we may also securitize other financial instruments, hold variable interests in other securitization vehicles, and acquire equity interests in financing vehicles established to provide credit facilities.

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.

7 unchanged sentences

Nonconsolidated VIEs

August 31, 2026

Carrying Amount Maximum Exposure to Loss VIE Assets

17 unchanged sentences

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

Jefferies Financial Group Inc.

August 2026 Form 10-Q

Notes to Consolidated Financial Statements

where we have committed to sell ownership interests in any of the investment vehicles.

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

Collateralized Loan Obligations .

21 unchanged sentences

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.

At August 31, 2026 and November 30, 2025, our remaining equity commitment in the JCP Entities was $ 8.8 million and $ 9.7 million, respectively.

At August 31, 2026 and November 30, 2025, we also had remaining commitments of $ 2.8 million and $ 0.4 million, respectively, to a private equity fund managed by us for the benefit of our employees.

The carrying value of our collective equity interests were $ 1.6 million and $ 3.4 million at August 31, 2026 and November 30, 2025, respectively.

Our exposure to loss is limited to the total of our carrying value and unfunded equity commitment.

1 unchanged sentence

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.

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

investment vehicles was $ 182.5 million and $ 282.2 million, respectively.

The carrying value of our equity investments was $ 1.56 billion at $ 1.72 billion August 31, 2026 and November 30, 2025, respectively.

Our exposure to loss is limited to the total of our carrying value and unfunded equity commitment.

2 unchanged sentences

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,

$ in millions August 31, 2026

Carrying value (1) $ 17.2

$ in thousands Three and Six Months Ended May 31, 2026

$ in millions Three Months Ended

August 31, Nine Months Ended

2026 2025 2026 2025

Income tax credits and other income tax benefits $ 22.1 $ — $ 52.9 $ —

13 unchanged sentences

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.

May 2026 Form 10-Q

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

Jefferies Financial Group Inc.

Notes to Consolidated Financial Statements

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.

as a result of our secondary trading and market-making activities, and underwriting, placement and structuring activities.

Our maximum exposure to loss on these securities is limited to the carrying value of our investments in these securities.

These mortgage-backed and other asset-backed secured funding vehicles discussed are not included in the above table containing information about our variable interests in nonconsolidated VIEs.

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

$ in millions August 31, 2026 November 30, 2025

Total Investments in and loans to related parties $ 1,653.3 $ 1,496.1

Three Months Ended May 31, Six Months Ended May 31,

Three Months Ended August 31, Nine Months Ended August 31,

$ in millions 2026 2025 2026 2025

1 unchanged sentence

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.

For certain investees, we receive financial information on a lag and the summarized information provided for these investees is based on the latest financial information available as of August 31, 2026.

Jefferies Finance

6 unchanged sentences

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.

At August 31, 2026, we and MassMutual each had equity commitments to Jefferies Finance of $ 750.0 million, for a combined total commitment of $ 1.50 billion.

The equity commitment is reduced quarterly based on our share of any undistributed earnings from Jefferies Finance and the commitment is increased only to the extent the share of such earnings are distributed.

At May 31, 2026, our unfunded commitment to Jefferies Finance was $ 15.4 million.

As of August 31, 2026, our commitment to Jefferies Finance has been fully funded.

The investment commitment is scheduled to expire on March 1, 2027 with automatic one year extensions absent a 60 day termination notice by either party.

Jefferies Finance has executed a secured revolving credit facility with us and MassMutual, to be funded equally, to support loan underwritings by Jefferies Finance, which bears interest based on the interest rates of the related Jefferies Finance underwritten

loans and is secured by the underlying loans funded by the proceeds of the facility.

The total facility is a committed amount of $ 500.0 million at May 31, 2026.

The total facility is a committed amount of $ 500.0 million at August 31, 2026.

Advances are shared equally between us and MassMutual.

The facility is scheduled to mature on March 1, 2027 with automatic one year extensions absent a 60 day termination notice by either party.

At May 31, 2026, our $ 250.0 million commitment was undrawn.

At August 31, 2026, we had funded $ 61.5 million of our $ 250.0 million commitment.

Activity related to the facility:

Three Months Ended May 31, Six Months Ended May 31,

Three Months Ended August 31, Nine Months Ended August 31,

$ in millions 2026 2025 2026 2025

2 unchanged sentences

Selected financial information for Jefferies Finance:

$ in millions May 31,

2026 November 30, 2025

$ in millions August 31, 2026 November 30, 2025

Total assets $ 7,417.5 $ 7,356.1

1 unchanged sentence

Total mezzanine equity 16.9 14.8

$ in millions May 31,

2026 November 30, 2025

$ in millions August 31, 2026 November 30, 2025

Our total investment balance $ 750.8 $ 691.0

Three Months Ended May 31, Six Months Ended May 31,

Three Months Ended August 31, Nine Months Ended August 31,

$ in millions 2026 2025 2026 2025

Net earnings (losses) attributable to members $ 35.4 $ 0.1 $ 68.5 $ ( 1.6 )

Net earnings attributable to members $ 45.3 $ 27.0 $ 113.8 $ 25.4

Activity related to our other transactions with Jefferies Finance:

Three Months Ended May 31, Six Months Ended May 31,

Three Months Ended August 31, Nine Months Ended August 31,

$ in millions 2026 2025 2026 2025

4 unchanged sentences

Asset management fee revenues (4) — — — 7.5

Underwriting revenues (expenses) (5) ( 0.2 ) — ( 1.1 ) —

Net underwriting revenues (5) 5.0 0.5 3.9 0.5

Service fees (6) 25.4 24.0 116.8 101.0

7 unchanged sentences

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

Jefferies Financial Group Inc.

August 2026 Form 10-Q

Notes to Consolidated Financial Statements

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

$ in millions May 31,

2026 November 30, 2025

$ in millions August 31, 2026 November 30, 2025

Financial instruments owned, at fair value (1) $ 2.0 $ 10.9

5 unchanged sentences

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

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

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

(4) Payable to Jefferies Finance in connection with loans originated by Jefferies Finance to borrowers who are investment banking clients of ours.

We have also entered into an agreement to indemnify Jefferies Finance with respect to any foreign currency exposure on these loans.

In the third quarter of 2026, we purchased a $ 24.8 million pre-IPO term loan from Jefferies Finance.

The loan is accounted for at amortized cost and reported within Other assets.

Berkadia is a commercial real estate finance and investment sales joint venture that was formed by us and Berkshire Hathaway Inc.

6 unchanged sentences

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.

At August 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

$ in millions August 31, 2026 November 30, 2025

Total assets $ 4,690.0 $ 5,269.8

1 unchanged sentence

Total noncontrolling interest 565.3 369.0

$ in millions May 31,

2026 November 30, 2025

$ in millions August 31, 2026 November 30, 2025

Our total investment balance $ 438.8 $ 429.7

Three Months Ended May 31, Six Months Ended May 31,

Three Months Ended August 31, Nine Months Ended August 31,

$ in millions 2026 2025 2026 2025

Net earnings attributable to members $ 70.2 $ 70.9 $ 137.1 $ 152.9

Three Months Ended May 31, Six Months Ended May 31,

Three Months Ended August 31, Nine Months Ended August 31,

$ in millions 2026 2025 2026 2025

Distributions $ 25.4 $ 42.3 $ 52.0 $ 69.3

At 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.

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

Real Estate Investments

6 unchanged sentences

Selected financial information for the real estate investments:

$ in millions May 31,

2026 November 30, 2025

$ in millions August 31, 2026 November 30, 2025

Total assets $ 307.9 $ 312.6

Total liabilities 459.3 470.7

2026 November 30, 2025

August 31, 2026 November 30, 2025

Our total investment balance $ 100.4 $ 98.7

Three Months Ended May 31, Six Months Ended May 31,

Three Months Ended August 31, Nine Months Ended August 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,

Net earnings $ 1.8 $ 0.4 $ 6.7 $ 1.7

Three Months Ended

August 31, Nine Months Ended

$ in millions 2026 2025 2026 2025

3 unchanged sentences

(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.

The amount of our investments in JCP Fund V included in Financial instruments owned, at fair value was $ 0.8 million and $ 2.8 million at August 31, 2026 and November 30, 2025, respectively.

We account for these investments at fair value based on the NAV of the funds provided by the fund managers.

The following summarizes the results from these investments which are included in Principal transactions revenues:

May 2026 Form 10-Q

Notes to Consolidated Financial Statements

Three Months Ended May 31, Six Months Ended May 31,

Three Months Ended August 31, Nine Months Ended August 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.

Net gains from our investments in JCP Fund V $ 0.1 $ 0.6 $ 0.4 $ 0.4

Jefferies Financial Group Inc.

Notes to Consolidated Financial Statements

At both August 31, 2026 and November 30, 2025, we were committed to invest equity of up to $ 85.0 million in JCP Fund V.

At both August 31, 2026 and November 30, 2025, our unfunded commitment relating to JCP Fund V was $ 8.7 million.

We do not expect any further capital to be called by JCP Fund V.

The following is a summary of the Net change in net assets resulting from operations for 100.0 % of JCP Fund V, in which we owned effectively 35.2 % at May 31, 2026 of the combined equity interests:

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

Three Months Ended (1)

$ in millions March 31, 2026 December 31, 2025 March 31, 2025 December 31, 2024

$ in millions June 30, 2026 March 31, 2026 December 31, 2025 June 30, 2025 March 31, 2025 December 31, 2024

Net increase (decrease) in net assets resulting from operations $ 0.2 $ 1.0 $ — $ 1.7 $ 0.1 $ ( 0.6 )

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

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

In July 2024, we invested $ 25.0 million in the Class A Common Equity Units of Hildene Insurance Holdings, LLC (“Hildene Insurance”), an investment fund with insurance exposures.

On March 1, 2025, we made an additional investment of $ 75.0 million in Hildene Insurance, which resulted in an increase of our effective ownership from 8.8 % to 23.5 %.

The investment is accounted for under the equity method with a carrying amount of $ 120.0 million and $ 113.8 million at May 31, 2026 and November 30, 2025, respectively.

The investment is accounted for under the equity method with a carrying amount of $ 128.1 million and $ 113.8 million at August 31, 2026 and November 30, 2025, respectively.

Selected financial information for Hildene Insurance:

$ in millions March 31, 2026 (1) September 30,

$ in millions June 30, 2026 (1)

September 30, 2025 (1)

Total assets $ 637.6 $ 498.4

2 unchanged sentences

Three Months Ended (1)

$ in millions March 31, 2026 March 31, 2025 December 31, 2025 December 31, 2024

$ in millions June 30, 2026 March 31, 2026 December 31, 2025 June 30, 2025 March 31, 2025 December 31, 2024

Net increase in members’ equity resulting from operations $ 44.1 $ 15.8 $ 16.6 $ 44.9 $ 27.5 $ 8.4

(1) Financial information for Hildene Insurance Holdings, LLC included in our financial position at 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.

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

On December 9, 2025, we entered into an agreement to acquire a 50 % interest in Hildene Holding Company, LLC, parent of Hildene Capital Management, LLC, a credit-focused asset manager and the parent of Hildene Insurance.

1 unchanged sentence

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.

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.

Closing is targeted to occur in the first quarter of 2027, subject to customary approvals.

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

GAAP, and are included within corporate equity securities in Financial instruments owned,

at fair value.

At both August 31, 2026 and November 30, 2025, the total fair value of our total equity investment in common shares of ApiJect was $ 97.9 million, which is classified within Level 3 of the fair value hierarchy.

Additionally, we own warrants to purchase up to 950,000 shares of common stock at any time or from time to time on or before April 15, 2032.

We also have a term loan agreement with a principal of ApiJect for $ 23.3 million, which matures on July 31, 2026.

We also have a term loan agreement with a principal of ApiJect for $ 23.3 million, which matures on October 31, 2026.

The loan is accounted for at amortized cost and is reported within Other assets.

The loan has a fair value of $ 23.3 million at both 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.

The loan has a fair value of $ 23.3 million at both August 31, 2026 and November 30, 2025, which would be classified as Level 3 in the fair value hierarchy.

For the three and nine months ended August 31, 2026, we have purchased secured convertible promissory notes totaling $ 9.8 million and $ 23.5 million, respectively, from ApiJect.

These promissory notes are accounted for at fair value in Financial instruments owned and classified within Level 3 of the fair value hierarchy.

3 unchanged sentences

The sale closed in the third quarter of 2025.

Three Months Ended May 31, Six Months Ended May 31,

Three Months Ended August 31, Nine Months Ended August 31,

$ in millions 2026 2025 2026 2025

2 unchanged sentences

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.

Jefferies Financial Group Inc.

Notes to Consolidated Financial Statements

We recognized interest income of $ 1.0 million on the loan during the nine months ended August 31, 2025.

We also hold preferred shares in the seller, which are accounted for at fair value in Financial instruments owned with a fair value of $ 7.3 million and $ 43.2 million at August 31, 2026 and November 30, 2025, respectively, and are classified within Level 3 of the fair value hierarchy.

In the third quarter of 2026, we received a distribution on the preferred shares of $ 37.6 million and recognized a gain of $ 1.8 million.

In September 2024, we provided a € 15.0 million loan, which matured in August 2026, to an individual related to the seller, secured by a privately owned aircraft and guaranteed by the individual.

We recognized interest income of $ 0.4 million and $ 1.5 million for the three and nine months ended August 31, 2026, respectively, and $ 0.5 million and $ 1.5 million during the three and nine months ended August 31, 2025, respectively.

Credit Losses on Financial Assets Measured at Amortized Cost

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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.

The underlying contractual collateral maintenance for significantly all of our secured financing receivables requires that the counterparty continually adjust the collateralization amount,

August 2026 Form 10-Q

Notes to Consolidated Financial Statements

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.

11 unchanged sentences

Three Months Ended

May 31, Six Months Ended

August 31, Nine Months Ended

$ in thousands 2026 2025 2026 2025

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Goodwill and Intangible Assets

Six Months Ended May 31, 2026

Nine Months Ended August 31, 2026

$ in thousands Investment Banking and Capital Markets Asset Management Total

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(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.

The remaining goodwill balance was reclassified as held for sale at August 31, 2026.

See Note 4, Assets and Liabilities Held for Sale.

Six Months Ended May 31, 2025

Nine Months Ended August 31, 2025

$ in thousands Investment Banking and Capital Markets Asset Management Total

2 unchanged sentences

Measurement period adjustments (1) — 1,802 1,802

Write-off related to disposals — ( 5,563 ) ( 5,563 )

Balance, at end of period $ 1,537,879 $ 302,553 $ 1,840,432

2 unchanged sentences

Carrying values of goodwill by reporting unit:

$ in millions May 31, 2026 November 30, 2025

$ in millions August 31, 2026 November 30, 2025

Investment banking $ 702.7 $ 702.0

4 unchanged sentences

Total $ 1,726.0 $ 1,837.6

Goodwill Impairment Testing

The quantitative goodwill impairment test is performed at the level of the reporting unit.

A reporting unit is an operating segment or one level below an operating segment.

The fair value of each reporting unit is compared with its carrying value, including goodwill and allocated intangible assets.

If the fair value is in excess of the carrying value, the goodwill for the reporting unit is considered not to be impaired.

If the fair value is less than the carrying value, then an impairment loss is recognized for the amount by which the carrying value of the reporting unit exceeds the reporting unit's fair value.

Allocated tangible equity plus allocated goodwill and intangible assets are used for the carrying amount of each reporting unit.

Jefferies Financial Group Inc.

Notes to Consolidated Financial Statements

We test goodwill allocated to our Investment Banking, Equities, Fixed Income and Asset Management reporting units annually on August 1 and test goodwill allocated to other individual investments annually on November 30.

Our annual goodwill impairment testing at August 1, 2026 did not indicate any goodwill impairment in any of our Investment Banking, Equities and Fixed Income reporting units, which are part of our Investment Banking and Capital Markets reportable segment and did not indicate any goodwill impairment in our Asset Management reporting unit.

The results of our assessment indicated that each of these reporting units had a fair value in excess of their carrying amounts based on current projections.

Estimating the fair value of a reporting unit requires management judgment.

Estimated fair values for our reporting units were determined using methodologies that include a market valuation method that incorporated price-to-earnings and price-to-book multiples of comparable public companies and/or projected cash flows.

Under the market valuation approach, the key assumptions are the selected multiples and our internally developed projections of future profitability, growth and return on equity for each reporting unit.

The weight assigned to the multiples requires judgment in qualitatively and quantitatively evaluating the size, profitability and the nature of the business activities of the reporting units as compared to the comparable publicly-traded companies.

In addition, as the fair values determined under the market valuation approach represent a noncontrolling interest, we applied a control premium to arrive at the estimated fair value of each reporting unit on a controlling basis.

We engaged an independent valuation specialist to assist us in our valuation process at August 1.

Intangible Assets

May 31, 2026 Weighted Average Remaining Lives (Years)

August 31, 2026 Weighted Average Remaining Lives (Years)

$ in thousands Gross Cost Accumulated Amortization Net Carrying Amount

11 unchanged sentences

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.

(1) Following the acceptance of a binding offer for Tessellis during the first quarter of 2026, intangible assets of $ 82.7 million related to Tessellis were reclassified as held for sale.

See Note 4, Assets and Liabilities Held for Sale.

May 2026 Form 10-Q

Notes to Consolidated Financial Statements

At August 1, 2026, we performed our annual impairment testing of intangible assets with an indefinite useful life consisting of exchange and clearing organization membership interests and registrations.

We utilized quantitative assessments of membership interests and registrations that have available quoted sales prices as well as certain other membership interests and registrations that have declined in utilization and qualitative assessments were performed on the remainder of our indefinite-life intangible assets.

With regard to our qualitative assessments of the remaining indefinite life intangible assets, based on our assessments of market conditions, the utilization of the assets and the replacement costs associated with the assets, we have concluded that it is not more likely than not that the intangible assets are impaired.

Amortization Expense

For finite life intangible assets, we recognized aggregate amortization expense of $ 2.1 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.

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

These expenses are included in Depreciation and amortization.

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Three Months Ended

May 31, Six Months Ended

August 31, Nine Months Ended

$ in thousands 2026 2025 2026 2025

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Total revenues $ 3,230,798 $ 2,907,674 $ 9,220,260 $ 7,874,853

August 2026 Form 10-Q

Notes to Consolidated Financial Statements

Disaggregation of Revenue

Three Months Ended May 31, 2026

Three Months Ended August 31, 2026

$ in thousands Investment Banking and Capital Markets Asset Management Total

12 unchanged sentences

Total $ 1,687,411 $ 64,397 $ 1,751,808

Three Months Ended May 31, 2025

Three Months Ended August 31, 2025

$ in thousands Investment Banking and Capital Markets Asset Management Total

12 unchanged sentences

Total $ 1,406,091 $ 98,071 $ 1,504,162

Jefferies Financial Group Inc.

Notes to Consolidated Financial Statements

Six Months Ended May 31, 2026

Nine Months Ended August 31, 2026

$ in thousands Investment Banking and Capital Markets Asset Management Total

12 unchanged sentences

Total $ 4,659,292 $ 222,976 $ 4,882,268

Six Months Ended May 31, 2025

Nine Months Ended August 31, 2025

$ in thousands Investment Banking and Capital Markets Asset Management Total

16 unchanged sentences

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.

The transaction price allocated to remaining unsatisfied or partially unsatisfied performance obligations with an original expected duration exceeding one year was not material at August 31, 2026.

Investment banking advisory fees that are contingent upon completion of a specific milestone and fees associated with certain distribution services are also excluded as the fees are considered variable and not included in the transaction price.

During the three and 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.

During the three and nine months ended August 31, 2026, we recognized $ 21.6 million and $ 32.7 million, respectively, compared with $ 36.1 million and $ 83.8 million during the three and nine months ended August 31, 2025, respectively, of revenue related to performance obligations satisfied (or partially satisfied) in previous periods, mainly due to resolving uncertainties in variable consideration that was constrained in prior periods.

In addition, three and nine months ended August 31, 2026, we recognized $ 9.8 million and $ 26.4 million, respectively, compared with $ 8.5 million and $ 24.0 million during the three and nine months ended August 31, 2025, respectively, of revenues primarily associated with distribution services, a portion of which relates to prior periods.

Contract Balances

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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.

Deferred revenue at August 31, 2026 and November 30, 2025 was $ 59.5 million and $ 92.3 million, respectively, which is recorded in Accrued expenses and other liabilities.

During the three and nine months ended August 31, 2026, we recognized

Jefferies Financial Group Inc.

Notes to Consolidated Financial Statements

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

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

Contract Costs

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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.

At August 31, 2026 and November 30, 2025, capitalized costs to fulfill a contract were $ 6.3 million and $ 5.2 million, respectively, which are recorded in Receivables – Fees, interest and other.

During the three and nine months ended August 31, 2026, we recognized expenses of $ 2.5 million and $ 3.9 million, respectively, compared with $ 1.3 million and $ 1.9 million during the three and nine months ended August 31, 2025, respectively, related to costs to fulfill a contract that were capitalized as of the beginning of the year.

There were no significant impairment charges recognized in relation to these capitalized costs for the three and nine months ended August 31, 2026 and August 31, 2025.

Compensation Plans

1 unchanged sentence

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

Notes to Consolidated Financial Statements

At August 31, 2026, there were approximately 2.1 million shares of restricted stock outstanding with future service required, 6.7 million RSUs outstanding with future service required (including target RSUs that may be issued under the senior executive compensation plan), 7.7 million RSUs outstanding with no future service required, and 5.1 million stock options outstanding.

The maximum potential increase to common shares outstanding resulting from these outstanding awards is 19.4 million at August 31, 2026.

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

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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.

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.

2 unchanged sentences

Three Months Ended

May 31, Six Months Ended

August 31, Nine Months Ended

$ in millions 2026 2025 2026 2025

4 unchanged sentences

(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:

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

$ in millions Remaining Unamortized Amounts Weighted Average

5 unchanged sentences

Short-Term Borrowings

$ in thousands May 31, 2026 November 30, 2025

$ in thousands August 31, 2026 November 30, 2025

Bank loans and other credit facilities $ 316,060 $ 568,418

Fixed rate callable note 1,149,029 1,198,788

Fixed rate callable notes 1,149,721 1,198,788

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

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

At 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.

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

Our borrowings include credit facilities that contain certain covenants that, among other things, require us to maintain a specified level of tangible net worth, require a minimum regulatory net capital requirement for our U.S.

1 unchanged sentence

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.

Jefferies Financial Group Inc.

At August 31, 2026, we were in compliance with all covenants under these credit facilities.

August 2026 Form 10-Q

Notes to Consolidated Financial Statements

Long-Term Debt

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

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

unsecured borrowings

7 unchanged sentences

2029 1,313 1,312

2031 and Later 217,137 71,924

29 unchanged sentences

(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.

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

(3) Carrying values include unamortized discounts and premiums, valuation adjustments and debt issuance costs.

At 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.

At August 31, 2026 and November 30, 2025, our borrowings under several credit facilities classified within Long-term debt amounted to $ 670.2 million and $ 803.2 million, respectively.

Interest on these credit facilities is based on an adjusted Secured Overnight Financing Rate (“SOFR”) plus a spread or other adjusted rates, as defined in the various credit agreements.

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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.

At August 31, 2026 , we were in compliance with all covenants under theses credit agreements.

(4) The structured notes are classified as Level 2 or Level 3 in the fair value hierarchy.

All of our long-term debt with exception of certain of the structured notes would be classified as Level 2 in the fair value hierarchy.

(5) Interest rates exclude structured notes.

May 2026 Form 10-Q

Jefferies Financial Group Inc.

Notes to Consolidated Financial Statements

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.

For the nine months ended August 31, 2026, long-term debt increased by $ 2.56 billion to $ 18.46 billion at August 31, 2026, primarily due to proceeds of $ 4.53 billion from the issuances of unsecured senior notes, $ 169.2 million from net issuances of structured notes, $ 32.6 million from valuation adjustments and $ 18.4 million from currency losses on foreign currency borrowings.

These increases were partially offset by repayments of $ 1.55 billion on our unsecured senior notes, paydowns of $ 556.2 million in subsidiary debt and the reclassification of $ 51.9 million of Tessellis’ borrowings to liabilities held for sale (refer to Note 4, Assets and Liabilities Held for Sale for further information).

Preferred Shares

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

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

On April 27, 2023, we established Series B Non-Voting Convertible Preferred Shares with a par value of $ 1.00 per share (“Series B Preferred Stock”) and designated 70,000 shares as Series B Preferred Stock.

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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.

During 2024, we issued 55,125 shares of Series B Preferred Stock to SMBC in exchange for approximately 27.6 million shares of voting common stock.

These preferred shares were subsequently converted by SMBC into 27.6 million shares of non-voting common stock on June 30, 2026.

As of August 31, 2026 , there is no outstanding Series B Preferred Stock.

On September 19, 2025, our Board of Directors established Series B-1 Non-Voting Convertible Preferred Shares with a par value of $ 1.00 per share (“Series B-1 Preferred Stock”) and designated 17,500 shares as Series B-1 Preferred Stock with a liquidation preference of $ 500 per share.

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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.

As of August 31, 2026 , there is no outstanding Series B-1 Preferred Stock.

Common Shares

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The rights of the holders of each class of common stock are identical with the exception of voting rights.

May 31, 2026 (1)

August 31, 2026

Common Shares Par Value Authorized

12 unchanged sentences

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.

Jefferies Financial Group Inc.

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

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

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

In September 2026, the Board of Directors has authorized the repurchase of common stock up to $ 250.0 million under our share repurchase program for future repurchases.

August 2026 Form 10-Q

Notes to Consolidated Financial Statements

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$ in thousands, except per share amounts Three Months Ended

May 31, 2026 Six Months Ended

August 31, 2026 Nine Months Ended

August 31, 2026

Voting Non-Voting Voting Non-Voting

Basic net earnings per share:

Basic earnings per share:

Allocation of distributed earnings (cash dividends paid) $ 80,481 $ 16,232 $ 251,819 $ 19,930

5 unchanged sentences

Number of shares used in per share computation 198,437 30,293 208,132 11,353

Basic net earnings per share (1) $ 1.05 $ 1.71 $ 1.75 $ 3.04

Diluted net earnings per share:

Basic earnings per share (1) $ 1.22 $ 1.35 $ 2.99 $ 3.53

Diluted earnings per share:

Allocation of total earnings for basic computation $ 242,862 $ 41,021 $ 621,617 $ 40,101

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 — 7,110 — 59,843

2 unchanged sentences

Weighted average effect of dilutive securities:

Participating securities 5 — — —

Conversion of preferred shares to non-voting common shares — 8,688 — 21,271

2 unchanged sentences

Number of shares used in per share computation 206,345 38,981 215,531 32,624

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

Diluted earnings per share (1) $ 1.18 $ 1.23 $ 2.88 $ 3.06

(1) As a result of the timing of SMBC’s conversion of 55,125 shares of preferred stock for shares of Jefferies’ non-voting common stock and the exchange of 3.8 million shares of Jefferies’ voting common stock for non-voting common stock during the third quarter of 2026, basic and diluted earnings per share differ between the voting and non-voting common shares.

Because non-voting shares were outstanding for only a portion of the three and nine month periods, their weighted average share count amplified the impact of distributed dividends, and accordingly, the non-voting common shares reflect higher earnings per share than the voting common shares, despite both classes having identical dividend rates.

Jefferies Financial Group Inc.

Notes to Consolidated Financial Statements

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

Three Months Ended August 31, 2025

Nine Months Ended August 31, 2025

Numerator for earnings per common share:

Net earnings $ 242,504 $ 470,748

Net losses attributable to noncontrolling interests ( 10,041 ) ( 24,692 )

Allocation of earnings to participating securities (1) ( 28,559 ) ( 55,528 )

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

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

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

Denominator for earnings per common share:

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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.

Dividends paid on participating securities were $ 11.0 million and $ 33.1 million for the three and nine months ended August 31, 2025, respectively.

Undistributed earnings are allocated to participating securities based upon their right to share in earnings if all earnings for the period had been distributed.

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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.

Jefferies Financial Group Inc.

Antidilutive shares at August 31, 2025 were 13.4 % of the weighted average common shares outstanding for three and nine months ended August 31, 2025.

August 2026 Form 10-Q

Notes to Consolidated Financial Statements

Six Months Ended May 31, 2026

Nine Months Ended August 31, 2026

Declaration Date Record Date Payment Date Per Common Share Amount

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March 25, 2026 May 18, 2026 May 29, 2026 $ 0.40

Six Months Ended May 31, 2025

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

Nine Months Ended August 31, 2025

Declaration Date Record Date Payment Date Per Common Share Amount

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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.

June 25, 2025 August 18, 2025 August 29, 2025 $ 0.40

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

During the three months ended August 31, 2026, we paid no cash dividends related to the Series B Preferred Stock, as all outstanding shares were converted into non-voting common stock before the dividend record date.

During the nine months ended August 31, 2026, we paid cash dividends of $ 22.1 million.

During the three and nine months ended August 31, 2025, we paid cash dividends related to the Series B Preferred stock of $ 11.0 million and $ 33.1 million, respectively.

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

Accumulated Other Comprehensive Income (Loss)

$ in thousands May 31,

$ in thousands August 31,

2026 November 30,

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

Three Months Ended May 31, Six Months Ended

Three Months Ended

August 31, Nine Months Ended

$ in thousands 2026 2025 2026 2025

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Total reclassifications for the period, net of tax $ 2,980 $ 2,180 $ 8,459 $ 9,012

(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.

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.

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

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

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

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

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

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

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Hong Kong 2020

Three Months Ended May 31, Six Months Ended

Three Months Ended

August 31, Nine Months Ended

$ in millions 2026 2025 2026 2025

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(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

For the population of loans to be acquired under the loan purchase commitments, at August 31, 2026, Jefferies had also entered into back-to-back committed sale contracts aggregating to $ 2.59 billion.

Jefferies Financial Group Inc.

Notes to Consolidated Financial Statements

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

Equity Commitments.

Includes commitments to invest in our joint venture, Jefferies Finance, asset management funds and in Jefferies Capital Partners, LLC, a manager of private equity funds, which consists of a team led by our President and a director.

At 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.

At August 31, 2026, our outstanding commitments relating to Jefferies Capital Partners, LLC and its private equity funds were $ 9.7 million.

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

Loan Commitments.

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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.

At August 31, 2026, we had outstanding loan commitments of $ 220.3 million to a client and $ 3.2 million to strategic affiliates.

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

Underwriting Commitments.

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Notional amounts associated with our derivative contracts meeting the definition of a guarantee under U.S.

GAAP at May 31, 2026:

GAAP at August 31, 2026:

Expected Maturity Date (Fiscal Years)

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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.

At August 31, 2026, the fair value of derivative contracts meeting the definition of a guarantee, gross of any counterparty and cash collateral netting, is a liability of approximately $ 759.2 million.

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.

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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.

At August 31, 2026, the aggregate amount of infrastructure improvement bonds outstanding was $ 68.3 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 .

At August 31, 2026, we provided guarantees to certain counterparties in the form of standby letters of credit in the amount of $ 455.6 million, with a weighted average maturity of less than one year .

Standby letters of credit commit us to make payment to the beneficiary if the guaranteed party fails to fulfill its obligation under a contractual arrangement with that beneficiary.

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Accordingly, no liability has been recognized for these arrangements.

Additionally, we provide certain indemnifications in connection with third-party clearing and

Jefferies Financial Group Inc.

Additionally, we provide certain

August 2026 Form 10-Q

Notes to Consolidated Financial Statements

execution arrangements whereby a third-party may clear and settle transactions on behalf of our clients.

indemnifications in connection with third-party clearing and execution arrangements whereby a third-party may clear and settle transactions on behalf of our clients.

These indemnifications generally have standard contractual terms and are entered into in the ordinary course of business.

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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.

Jefferies LLC is also an Introducing Broker subject to Regulation 1.17 of the Commodity Futures Trading Commission (“CFTC”) under the Commodity Exchange Act, which sets forth minimum financial requirements.

In June 2026, Jefferies LLC changed its registration status with the CFTC and the NFA from a futures commission merchant to an Introducing Broker.

The minimum net capital requirement in determining excess net capital for a dually registered U.S.

broker-dealer and 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.

broker-dealer and CFTC Introducing Broker is equal to the greater of the requirement under Rule 15c3-1 or Regulation 1.17.

FINRA is the designated examining authority for Jefferies LLC and the National Futures Association (“NFA”) is the designated self-regulatory organization (“DSRO”) for Jefferies LLC as an Introducing Broker.

In June 2026, Jefferies LLC changed its registration status with the CFTC and the NFA from an futures commission merchant to an Introducing Broker.

Jefferies Financial Services, Inc.

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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:

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

$ in thousands Net

Capital Excess Net Capital

Capital Excess Net

Jefferies LLC $ 3,713,973 $ 3,485,328

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(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.

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

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

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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.

At August 31, 2026, Jefferies LLC had $ 225.5 million in cash and qualified U.S.

Government securities on deposit in special reserve bank accounts for the exclusive benefit of customers.

As a registered broker dealer that clears and carries proprietary accounts of brokers or dealers (commonly referred to as “PAB”), Jefferies LLC is also required to compute a reserve requirement for PABs pursuant to SEC Rule 15c3-3.

At May 31, 2026, Jefferies LLC had $ 264.9 million in cash and qualified U.S.

At August 31, 2026, Jefferies LLC had $ 528.2 million in cash and qualified U.S.

Government securities in special reserve bank accounts for the exclusive benefit of PABs.

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• 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.

Jefferies Financial Group Inc.

Notes to Consolidated Financial Statements

• 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

Notes to Consolidated Financial Statements

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.

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Three Months Ended

May 31, Six Months Ended

August 31, Nine Months Ended

$ in millions 2026 2025 2026 2025

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Earnings before income taxes $ 427 $ 336 $ 995 $ 692

Three Months Ended

August 31, Nine Months Ended

$ in millions 2026 2025 2026 2025

Asset Management:

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

(2) Includes total net earnings (losses) related to equity method investees of $ 3.8 million $ 2.2 million, $ 8.0 million and $ 4.6 million, respectively.

Jefferies Financial Group Inc.

Notes to Consolidated Financial Statements

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

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

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

August 2026 Form 10-Q

Notes to Consolidated Financial Statements

Reconciliation of Reportable Segment Information:

Three Months Ended

May 31, Six Months Ended

August 31, Nine Months Ended

$ in millions 2026 2025 2026 2025

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Assets by reportable business segment:

$ in millions May 31,

$ in millions August 31,

2026 November 30,

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Three Months Ended

May 31, Six Months Ended

August 31, Nine Months Ended

$ in millions 2026 2025 2026 2025

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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.

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

• Receivables from and payables to customers include balances arising from officers’, directors’ and employees’ individual security transactions.

These transactions are subject to the same regulations as all customer transactions and are provided on substantially the same terms.

• Two of our directors and certain of our officers have total investments in entities managed by us of approximately $ 8.7 million and $ 10.4 million at May 31, 2026 and November 30, 2025, respectively.

We have a strategic alliance with Sumitomo Mitsui Financial Group, Inc., Sumitomo Mitsui Banking Corporation (“SMBC”) and SMBC Nikko Securities Inc.

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

Sumitomo Mitsui Banking Corporation (“SMBC”)

We have a strategic alliance with Sumitomo Mitsui Financial Group, Inc., SMBC and SMBC Nikko Securities Inc.

(together referred to as “SMBC Group”) to collaborate on corporate and investment banking business opportunities as well as opportunities related to equity sales, trading and research.

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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,

$ in thousands August 31,

2026 November 30,

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Securities sold under agreements to repurchase 514,781 638,581

Other secured financings 19,700 —

Brokers, dealers and clearing organizations 4,301 470

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Total liabilities $ 984,957 $ 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

Notes to Consolidated Financial Statements

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

Three Months Ended

May 31, Six Months Ended

August 31, Nine Months Ended

$ in thousands 2026 2025 2026 2025

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Non-interest expenses

Compensation and benefits 6 — $ 1,250 $ —

Technology and communications 2,020 — 3,044 —

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

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(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.

Jefferies Financial Group Inc.

Notes to Consolidated Financial Statements

In addition, we are party to an arrangement with SMBC in which we provide various administrative services to SMBC.

For the three and nine months ended August 31, 2026, we charged SMBC an aggregate $ 5.7 million and $ 11.9 million, respectively, for administrative services.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements