What changed in this filing

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Item 7. Management’s Discussion and Analysis

2025-11-25 compared with 2024-11-26 · 370 added, 372 removed, 1281 unchanged (37% of the section changed)

47 unchanged sentences

Other selected financial highlights 2025 2024 2023

Return on common equity 18.9 % 17.7 % 17.0 %

Adjusted return on common equity (1)

Pre-tax margin

19.3 % 20.6 % 19.6 %

Return on tangible common equity (1)

Adjusted pre-tax margin (1)

20.0 % 21.4 % 20.5 %

Adjusted return on tangible common equity (1)

Return on common equity (“ROCE”)

17.7 % 18.9 % 17.7 %

Adjusted ROCE (1)

18.3 % 19.6 % 18.4 %

Return on tangible common equity (“ROTCE”) (1)

20.6 % 22.6 % 21.7 %

Adjusted ROTCE (1)

21.3 % 23.3 % 22.5 %

Compensation ratio 64.5 % 64.1 % 62.8 %

9 unchanged sentences

Year ended September 30, 2025 compared with the year ended September 30, 2024

We generated strong net revenues and pre-tax income for the year ended September 30, 2024, which increased 10% and 16%, respectively, compared with the prior year.

Our net income available to common shareholders was 19% higher than the prior year and our earnings per diluted share increased 22%.

Our return on common equity (“ROCE”) was 18.9%, compared with 17.7% for the prior year, and our return on tangible common equity (“ROTCE”) was 22.6% (1) , compared with 21.7% (1) for the prior year.

Adjusted net income available to common shareholders (1) for the year ended September 30, 2024, which excludes the impact of $97 million of expenses related to acquisitions completed in prior years, such as compensation expenses related to retention awards and amortization of identifiable intangible assets, increased 18% compared with adjusted net income available to common shareholders (1) for the prior year which, in addition to acquisition-related expenses, excluded the impact of a $32 million favorable insurance settlement related to a previously-settled legal matter.

Our adjusted earnings per diluted share (1) increased 21% compared with the prior year.

For the year ended September 30, 2025, we generated net revenues of $14.07 billion, an increase of 10% compared with the prior year, and pre-tax income of $2.71 billion, an increase of 3%.

Our net income available to common shareholders of $2.13 billion was 3% higher than the prior year and our earnings per diluted share were $10.30, reflecting a 6% increase.

Our ROCE was 17.7%, down from 18.9% for the prior year, and our ROTCE was 20.6% (1) , compared with 22.6% (1) for the prior year.

Excluding the impact of $75 million of expenses, net of their tax effect, related to acquisitions completed in prior years, adjusted net income available to common shareholders for the year ended September 30, 2025 was $2.21 billion (1) , an increase of 3% compared with adjusted net income available to common shareholders for the prior year.

Our adjusted earnings per diluted share were $10.66 (1) , an increase of 6% compared with the prior year.

Adjusted ROCE was 18.3% (1) , compared with 19.6% (1) for the prior year, and adjusted ROTCE was 21.3% (1) , compared with 23.3% (1) in the prior year.

The increase in net revenues compared with the prior year was primarily due to higher asset management and related administrative fees, largely the result of higher PCG client assets in fee-based accounts at the beginning of each of the current-year billing periods compared with the prior-year billing periods.

Brokerage revenues also increased compared with the prior year largely due to an increase in client activity in the PCG segment and investment banking revenues increased primarily due to more favorable market conditions in the current year.

Offsetting these increases was a decrease in combined net interest income and RJBDP fees from third-party banks, as the favorable impacts of higher short-term interest rates and higher average interest-earning asset balances and RJBDP balances swept to third-party banks were more than offset by a significant increase in interest expense.

The increase in interest expense was primarily due to a shift in the mix of deposit balances at our Bank segment, as RJBDP balances swept to the Bank segment declined compared with the prior year and a significant portion was replaced with higher-cost ESP balances and certificate of deposit balances.

Compensation, commissions and benefits expense increased 13%, primarily due to an increase in compensable revenues, as well as an increase in compensation costs to support our growth and annual salary increases.

Our compensation ratio, or the ratio of compensation, commissions and benefits expense to net revenues, was 64.1%, compared with 62.8% for the prior year.

The increase in PCG client assets in fee-based accounts resulted from net market appreciation and net new assets to the firm since the prior year.

Investment banking revenues also increased significantly compared with the prior year primarily due to more favorable market conditions during the year.

Brokerage revenues also increased compared with the prior year largely due to an increase in client activity in both our PCG and Capital Markets segments.

Offsetting these increases was a decrease in combined net interest income and RJBDP fees from third-party banks, due to lower short-term interest rates compared with the prior year and lower RJBDP balances swept to third-party banks, which more than offset a favorable impact from growth in average interest-earning assets.

Compensation, commissions and benefits expense increased 10%, primarily due to an increase in compensable revenues, an increase in compensation costs to support our growth, including financial advisor recruiting-related expenses, and annual salary increases.

Our compensation ratio was 64.5%, compared with 64.1% for the prior year.

Excluding acquisition-related compensation expenses, our adjusted compensation ratio was 64.3% (1) , compared with an adjusted compensation ratio of 63.7% (1) for the prior year.

The increase in the compensation ratio primarily resulted from changes in our revenue mix due to increases in compensable revenues compared with the prior year, as well as a decrease in combined net interest income and RJBDP fees from third-party banks, which have little associated direct compensation.

Non-compensation expenses decreased 4%, largely due to a significant decrease in expenses related to legal and regulatory matters, as the current year reflected net legal and regulatory matters reserve release while the prior year included elevated provisions for legal and regulatory matters, as well as a decrease in the bank loan provision for credit losses.

Partially offsetting these decreases in expenses, was the impact of higher communications and information processing expenses resulting from continued investments in technology to benefit our clients and advisors and to support our growth, the aforementioned $32 million insurance settlement received in the prior year related to a previously-settled legal matter that did not reoccur, higher investment sub-advisory fees resulting from growth in assets under management in sub-advised programs, and higher non-interest expenses related to deposits, including the impact of a FDIC special assessment in the current year.

Occupancy and equipment and business development expenses also increased compared with the prior year.

Our effective income tax rate was 21.8%, a decrease from 23.7% for the prior year, primarily due to the impact of a higher tax benefit recognized in the current year related to nontaxable valuation gains associated with our company-owned life insurance policies, as well as a change in the amount of nondeductible fines and penalties compared with the prior year.

The increase in the compensation ratio primarily resulted from changes in our revenue mix due to increases in compensable revenues compared with the prior year, including asset management and related administrative fees, investment banking revenues, and brokerage revenues, as well as a decrease in combined net interest income and RJBDP fees from third-party banks, which have little associated direct compensation.

Non-compensation expenses increased 16%, primarily due to higher provisions for legal and regulatory matters as the current year included a net provision expense for legal and regulatory matters, including a $58 million expense increase associated with the settlement of a legal matter related to bond underwritings for a specific issuer sold to institutional investors between 2013 and 2015, while the prior year reflected a net reserve release.

Non-compensation expenses also increased due to higher communications and information processing expenses resulting from continued investments in technology to benefit our advisors and their clients and to support our growth, higher investment sub-advisory fees resulting from growth in assets under management in sub-advised programs, and higher business development expenses, primarily due to financial advisor recruiting and other business growth investments.

Our effective income tax rate was 21.3% for the year ended September 30, 2025, a decrease from 21.8% for the prior year, primarily due to the impact of a larger tax benefit recognized during the current year related to share-based compensation that vested during the year and, to a lesser extent, the release of accruals for uncertain tax positions following the expiration of applicable statutes of limitations, partially offset by lower non-taxable valuation gains on our corporate-owned life insurance policies recognized in the current year compared with the prior year.

(1) ROTCE, adjusted net income available to common shareholders, adjusted earnings per diluted share, adjusted ROCE, adjusted ROTCE, and adjusted compensation ratio are non-GAAP financial measures.

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Management’s Discussion and Analysis

As of September 30, 2024, tier 1 leverage ratio was 12.8% and total capital ratio was 24.1%, both well above regulatory capital requirements.

We also continued to have substantial liquidity with $2.16 billion (1) of cash at the parent as of September 30, 2024.

We believe our capital and funding position provide us the opportunity to manage our balance sheet prudently and to continue to be opportunistic and invest in growth.

During the year ended September 30, 2024, we repurchased 7.7 million shares of our common stock under the Board of Directors’ common stock repurchase authorization for $900 million at an average price of $117 per share.

After the effect of those repurchases, $644 million remained under the Board’s authorization.

In total, we returned $1.3 billion of capital to shareholders through the combination of share repurchases and dividends in the fiscal year.

We expect to continue to repurchase our common stock to offset dilution from share-based compensation and to be opportunistic with incremental repurchases.

Given our capital and liquidity levels, we expect to maintain, or potentially increase, our share repurchase activity levels;

however, we will continue to monitor market conditions and other capital needs as we consider the magnitude and timing of these repurchases.

As we look ahead, we believe we are well-positioned for long-term growth, with our strong capital and liquidity position, total client assets under administration of $1.57 trillion and net bank loans of $46 billion.

We expect our fiscal first quarter of 2025 results to be favorably impacted by higher asset management and related administrative fees, which will benefit from the 7% increase in both PCG fee-based assets and financial assets under management from June 30, 2024 to September 30, 2024.

In addition, our financial advisor recruiting activity remains robust, including a strong recruiting pipeline.

We also have a healthy investment banking pipeline, and we expect investment banking revenues to benefit as the market environment becomes more constructive for transaction closings over the next few quarters.

Although the market is still challenging, we expect fixed income brokerage revenues to benefit from increased activity from depository institutions resulting from decreases in short-term interest rates and the yield curve steepening.

While the decline in short-term interest rates is expected to have a favorable impact on certain of our businesses, we anticipate our combined net interest income and RJBDP fees from third-party banks will decrease in our fiscal 2025 due to the 50-basis point and 25-basis point decreases in short-term interest rates enacted by the Fed in September 2024 and November 2024, respectively;

although the magnitude of such decline is largely dependent on the level of short-term interest rates, including any additional rate cuts in our fiscal 2025, our interest-earning asset levels, client cash balances, and other factors that may impact the current market environment.

While we maintain discipline in controlling our expenses, we continue to invest to support growth across our businesses which may increase expenses in future periods.

Corporate loan growth has remained muted in fiscal 2024, but we believe we are well-positioned to increase lending as new origination activity increases, which may increase provisions for credit losses in future periods.

In addition, although our current loan portfolio credit metrics are solid and we continue to proactively manage our credit risk in our loan portfolio, future economic deterioration or changes in the macroeconomic outlook could also result in increased bank loan provisions for credit losses in future periods.

We continue to maintain strong levels of liquidity and capital.

As of September 30, 2025, our tier 1 leverage ratio was 13.1% and total capital ratio was 24.1%, both well above regulatory capital requirements.

On September 11, 2025, to secure financing during a period of favorable market conditions characterized by tight credit spreads and attractive benchmark yields, we issued $1.5 billion in senior notes, consisting of $650 million in 4.90% senior notes due 2035 and $850 million in 5.65% senior notes due 2055.

We also amended our revolving credit facility to increase our borrowing capacity to $1 billion and reduce our cost of borrowing.

These actions increased our available liquidity on hand for deployment in our growth and to meet client needs, resulting in $3.7 billion of RJF corporate cash (1) as of September 30, 2025.

During the year ended September 30, 2025, we repurchased 7.4 million shares of our common stock for $1.1 billion at an average price of $148 per share under the Board of Directors’ common stock repurchase authorization, leaving $399 million available under the authorization as of September 30, 2025.

We believe our strong capital and liquidity positions enable us to invest in growth across our businesses and remain opportunistic in our capital deployment.

Year ended September 30, 2024 compared with the year ended September 30, 2023

1 unchanged sentence

(1) For additional information, please see the “Liquidity and capital resources - Sources of liquidity” section in this MD&A.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

19 unchanged sentences

Professional fees

Bank loan provision for credit losses — Initial provision for credit losses on acquired loans

Amortization of identifiable intangible assets 41 44 45

Initial provision for credit losses on acquired lending commitments — — 5

All other acquisition-related expenses

6 unchanged sentences

Adjusted net income available to common shareholders $ 2,205 $ 2,137 $ 1,806

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Year ended September 30,

$ in millions 2025 2024 2023

Pre-tax income

6 unchanged sentences

Adjusted “Compensation, commissions and benefits” expense $ 9,037 $ 8,171 $ 7,219

Pre-tax margin

19.3 % 20.6 % 19.6 %

Less the impact of non-GAAP adjustments on pre-tax margin :

Expenses related to acquisitions:

Compensation, commissions and benefits:

Acquisition-related retention 0.2 % 0.4 % 0.6 %

Other acquisition-related compensation — % — % 0.1 %

Total “Compensation, commissions and benefits” expense 0.2 % 0.4 % 0.7 %

Communications and information processing

Professional fees

0.1 % — % 0.1 %

Amortization of identifiable intangible assets

0.3 % 0.3 % 0.4 %

All other acquisition-related expenses 0.1 % 0.1 % — %

Total “Other” expense 0.4 % 0.4 % 0.4 %

Total pre-tax impact of non-GAAP adjustments related to acquisitions 0.7 % 0.8 % 1.2 %

Other — Insurance settlement received

— % — % (0.3) %

Total non-GAAP adjustments

0.7 % 0.8 % 0.9 %

Adjusted pre-tax margin

20.0 % 21.4 % 20.5 %

Total compensation ratio 64.5 % 64.1 % 62.8 %

4 unchanged sentences

Adjusted total compensation ratio 64.3 % 63.7 % 62.1 %

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Year ended September 30,

$ in millions, except per share amounts

2024 2023 2022

Diluted earnings per common share $ 10.30 $ 9.70 $ 7.97

6 unchanged sentences

Communications and information processing

0.01 0.01 0.01

Professional fees 0.05 0.02 0.01

Bank loan provision for credit losses — Initial provision for credit losses on acquired loans

Amortization of identifiable intangible assets 0.20 0.21 0.21

Initial provision for credit losses on acquired lending commitments — — 0.02

All other acquisition-related expenses 0.04 0.02 —

5 unchanged sentences

Adjusted diluted earnings per common share $ 10.66 $ 10.05 $ 8.30

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Year ended September 30,

$ in millions, except per share amounts

2025 2024 2023

Average common equity $ 12,035 $ 10,893 $ 9,791

7 unchanged sentences

Professional fees 3 2 1

Bank loan provision for credit losses — Initial provision for credit losses on acquired loans

Amortization of identifiable intangible assets 21 22 22

Initial provision for credit losses on acquired lending commitments — — 2

All other acquisition-related expenses 1 2 —

5 unchanged sentences

Adjusted average common equity $ 12,067 $ 10,929 $ 9,819

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Year ended September 30,

2024 2023 2022

Average common equity $ 12,035 $ 10,893 $ 9,791

9 unchanged sentences

Professional fees 3 2 1

Bank loan provision for credit losses — Initial provision for credit losses on acquired loans

Amortization of identifiable intangible assets 21 22 22

Initial provision for credit losses on acquired lending commitments — — 2

All other acquisition-related expenses 1 2 —

9 unchanged sentences

Adjusted return on tangible common equity 21.3 % 23.3 % 22.5 %

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Diluted earnings per common share is computed by dividing net income available to common shareholders (less allocation of earnings and dividends to participating securities) by diluted weighted-average common shares outstanding for each respective period or, in the case of adjusted diluted earnings per common share, computed by dividing adjusted net income available to common shareholders (less allocation of earnings and dividends to participating securities) by diluted weighted-average common shares outstanding for each respective period.

Pre-tax margin is computed by dividing pre-tax income by net revenues for each respective period or, in the case of adjusted pre-tax margin, computed by dividing adjusted pre-tax income by net revenues for each respective period.

Total compensation ratio is computed by dividing compensation, commissions and benefits expense by net revenues for each respective period.

6 unchanged sentences

Adjusted ROCE is computed by dividing adjusted net income available to common shareholders by adjusted average common equity for each respective period, or in the case of adjusted ROTCE, computed by dividing adjusted net income available to common shareholders by adjusted average tangible common equity for each respective period.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

NET INTEREST ANALYSIS

Largely in response to inflationary pressures since the beginning of fiscal year 2022, the Fed rapidly and consistently increased its benchmark short-term interest rate commencing in March 2022 and continuing throughout our fiscal year 2023.

Since the beginning of our fiscal year 2023, the Fed increased the Fed funds target rate 225 basis points from a September 30, 2022 range of 3.00% to 3.25% to a range of 5.25% to 5.50% as of September 30, 2023, where it remained for the vast majority of our fiscal 2024.

Effective September 19, 2024, the Fed reduced the Fed funds target rate by 50 basis points to a range of 4.75% to 5.00% and enacted an additional 25-basis point decrease in November 2024 to a range of 4.50% to 4.75%.

In the beginning of our fiscal 2024, the Fed funds target rate was at a range of 5.25% to 5.50% where it remained throughout most of our fiscal 2024.

In late September 2024, the Fed decreased the Fed funds target rate by 50 basis points, followed by three additional 25-basis-point reductions during fiscal 2025 to end the current year at a range of 4.00% to 4.25%.

Effective October 30, 2025, the Fed enacted an additional 25-basis point decrease reducing the Fed funds target rate to a range of 3.75% to 4.00%.

The Fed has indicated that it intends to closely monitor market conditions to determine whether it will consider making additional downward adjustments to short-term interest rates in our fiscal 2026.

The following table details the Fed’s short-term interest rate activity since the beginning of our fiscal year 2023.

We anticipate our combined net interest income and RJBDP fees from third-party banks will be unfavorably impacted in our fiscal 2026 due to the impact of the two 25-basis point decreases in short-term interest rates enacted by the Fed in September 2025 and October 2025.

The magnitude of this decline will largely depend on the level of short-term interest rates, including any additional rate cuts during fiscal 2026, as well as our interest-earning asset levels, client cash balances, and other market-related factors.

However, declines in short-term interest rates are also expected to have a favorable impact on certain of our other businesses.

The following table details the Fed’s short-term interest rate activity since the end of our fiscal year 2023.

RJF fiscal quarter ended Effective date of interest rate action

2 unchanged sentences

(in basis points) Fed funds target rate

September 30, 2022 September 22, 2022 75 3.00% - 3.25%

December 31, 2022 November 3, 2022 75 3.75% - 4.00%

December 31, 2022 December 15, 2022 50 4.25% - 4.50%

March 31, 2023 February 2, 2023 25 4.50% - 4.75%

March 31, 2023 March 23, 2023 25 4.75% - 5.00%

June 30, 2023 May 4, 2023 25 5.00% - 5.25%

September 30, 2023 July 27, 2023 25 5.25% - 5.50%

1 unchanged sentence

December 31, 2024 November 8, 2024 (25) 4.50% - 4.75%

December 31, 2024 December 19, 2024 (25) 4.25% - 4.50%

September 30, 2025

September 18, 2025 (25) 4.00% - 4.25%

Rate changes subsequent to September 30, 2025

December 31, 2025 October 30, 2025 (25) 3.75% - 4.00%

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Given the relationship between our interest-sensitive assets and liabilities (primarily held in our PCG, Bank, and Other segments) and the nature of fees we earn from third-party banks on client cash balances swept to such banks as part of the RJBDP (included in account and service fees), our financial results are sensitive to changes in interest rates.

1 unchanged sentence

As it relates to our net interest income, the magnitude of the effect of a decrease in interest rates depends on a number of factors impacting balances, asset yields, and the cost of funding.

The magnitude of the impact to our net interest margin depends on the yields on interest-earning assets relative to the cost of interest-bearing liabilities, including deposit rates paid to clients on their cash balances.

Decreases in short-term interest rates generally also result in a decrease to our RJBDP fees earned from third-party banks, although the magnitude of the impact may also be impacted by demand for cash balances by third-party banks and the rate paid to clients on their cash sweep balances.

The magnitude of the impact on our net interest margin depends on the yields on interest-earning assets relative to the cost of interest-bearing liabilities, including deposit rates paid to clients on their cash balances.

Decreases in short-term interest rates generally result in a decrease to our RJBDP fees earned from third-party banks, although the magnitude of the impact may also be impacted by demand for cash balances by third-party banks and the rate paid to clients on their cash sweep balances.

Rates paid to clients on their cash balances are generally impacted by the level of short-term interest rates, as well as competitive industry dynamics and the demand for client cash.

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In recent fiscal years, we have sought to continue to meet client demand for higher yields on cash balances, without sacrificing the benefits of FDIC insurance on such balances, by introducing new deposit products leveraging our bank subsidiaries or through initiatives offered within the RJBDP.

Such programs include our ESP introduced to our clients in fiscal 2023 where such deposits are held by Raymond James Bank, offer enhanced rates to clients and, through a reciprocal deposit program, FDIC coverage of up to $50 million for certain accounts, as well as initiatives offered from time to time within the RJBDP program which may offer enhanced rates to clients on certain balances within the program.

Such programs include our ESP introduced to our clients in fiscal 2023 where such deposits are held by Raymond James Bank, offer enhanced rates, and offer FDIC coverage of up to $50 million for certain accounts, as well as initiatives offered from time to time within the RJBDP program which may offer enhanced rates to clients on certain balances within the program.

These programs, while meeting client needs and diversifying our funding sources, have a higher relative cost than other alternatives therefore reducing our net interest margin and yields on RJBDP balances.

Refer to the discussion of our net interest income within the “Management’s Discussion and Analysis - Results of Operations”

of our PCG, Bank, and Other segments, where applicable.

Also refer to “Management’s Discussion and Analysis - Results of

Operations - Private Client Group - Clients’ domestic cash sweep balances” for further information on the RJBDP.

Net interest income and RJBDP fees from third-party banks

8 unchanged sentences

$ 2,633 $ 2,737 $ 2,873 (4) % (5) %

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Year ended September 30, 2025 compared with the year ended September 30, 2024

Combined net interest income and RJBDP fees from third-party banks was $2.63 billion and $2.74 billion for the years ended September 30, 2025 and 2024, respectively.

The 5% decline compared with the prior year was driven by a decline in net interest income, as the benefits of higher short-term interest rates and higher average interest-earning asset balances were more than offset by a significant increase in interest expense.

However, the growth in the ESP balances compared with the prior year has allowed us to deploy a relatively higher portion of RJBDP balances to third-party banks instead of our Bank segment which, coupled with higher yields earned on such balances, resulted in an increase in RJBDP fees from third-party banks compared with the prior year.

Refer to the discussion of our net interest income within the “Management’s Discussion and Analysis - Results of Operations” of our PCG, Bank, and Other segments, where applicable.

Also refer to “Management’s Discussion and Analysis - Results of Operations - Private Client Group - Clients’ domestic cash sweep balances” for additional information on the RJBDP.

The 4% decline compared with the prior year was primarily due to lower short-term interest rates and lower average RJBDP balances swept to third-party banks, which more than offset a favorable impact from growth in average interest-earning assets.

Year ended September 30, 2024 compared with the year ended September 30, 2023

39 unchanged sentences

Money market and savings accounts $ 33,196 $ 601 1.81 % $ 31,519 $ 681 2.16 % $ 40,463 $ 547 1.35 %

Interest-bearing checking accounts 20,329 1,001 4.92 % 10,352 473 4.57 % 2,061 39 1.88 %

Interest-bearing demand deposits

21,328 877 4.11 % 20,329 1,001 4.92 % 10,352 473 4.57 %

Certificates of deposit 2,034 91 4.47 % 2,633 123 4.66 % 2,163 84 3.88 %

65 unchanged sentences

Money market and savings accounts $ 33 $ (113) $ (80) $ (163) $ 297 $ 134

Interest-bearing checking accounts 489 39 $ 528 321 113 434

Interest-bearing demand deposits

46 (170) $ (124) 489 39 528

Certificates of deposit (27) (5) $ (32) 20 19 39

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Through our PCG segment, we provide financial planning, investment advisory, and securities transaction services for which we generally charge either asset-based fees (presented in “Asset management and related administrative fees”) or sales commissions (presented in “Brokerage revenues”).

We also earn revenues for distribution and related support services performed related to mutual and other funds, fixed and variable annuities, and insurance products.

We also earn revenues for distribution and related services performed related to mutual and other funds, fixed and variable annuities, and insurance products.

Asset management and related administrative fees and brokerage revenues in this segment are typically correlated with the level of PCG client AUA, including those in fee-based accounts, as well as the overall U.S.

1 unchanged sentence

In periods where equity markets improve, AUA and client activity generally increase, thereby having a favorable impact on net revenues.

In periods of rising interest rates, we may also see increased interest in fixed income and fixed annuity products.

We also earn servicing fees, such as omnibus and education and marketing support fees, from mutual fund, annuity, and exchange-traded product companies whose products we distribute.

In periods of rising interest rates, we may also see increased activity in fixed income and fixed annuity products.

We also earn servicing fees, such as omnibus and education and marketing support fees, from mutual fund, annuity, and exchange-traded fund companies whose products we distribute.

Servicing fees earned from such companies are based on the level of assets or number of positions in such programs or a flat fee.

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Account and service fees:

Mutual fund and annuity service fees 461 415 428 11 % (3) %

Mutual fund and other investment products

518 461 415 12 % 11 %

Bank segment 754 824 1,093 (8) % (25) %

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Non-compensation expenses

Communications and information processing 420 388 332 8 % 17 %

Occupancy and equipment 227 211 198 8 % 7 %

Business development 167 155 126 8 % 23 %

Professional fees 69 65 56 6 % 16 %

All other 91 145 73 (37) % 99 %

Total non-compensation expenses 974 964 785 1 % 23 %

1,078 974 964 11 % 1 %

Total non-interest expenses 8,462 7,674 6,891 10 % 11 %

Pre-tax income $ 1,720 $ 1,785 $ 1,763 (4) % 1 %

(1) Effective October 1, 2024, we updated our methodology for allocating interest income on certain cash balances to our segments, resulting in a reallocation of interest income from the Other segment to the PCG segment.

Prior year segment results have not been conformed to the current year presentation.

RAYMOND JAMES FINANCIAL, INC.

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As of September 30, 2025, 2024, and 2023, PCG AUA included assets associated with firms affiliated with us through our RCS division of $217.3 billion, $180.7 billion, and $133.3 billion, respectively, of which $188.0 billion, $153.1 billion, and $111.7 billion, respectively, were assets in fee-based accounts.

Based on the nature of the services provided to such firms, revenues related to these assets are included in “Account and services fees.”

Based on the nature of the services provided to such firms, revenues related to these assets in the PCG segment are included in “Account and service fees.” The growth in RCS client assets over time is partially due to transfers into RCS from our other financial advisor channels.

We may continue to experience transfers to our RCS division;

however, consistent with our experience in recent fiscal years, we would not expect these financial advisor transfers to significantly impact our results of operations.

Domestic PCG net new assets

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(1) Domestic PCG net new assets represents domestic PCG client inflows, including dividends and interest, less domestic PCG client outflows, including commissions, advisory fees, and other fees.

(2) The domestic PCG net new assets growth percentage is based on the beginning domestic PCG AUA balance for the indicated period.

PCG AUA and PCG assets in fee-based accounts as of September 30, 2024 increased 25% and 28%, respectively, compared with September 30, 2023, resulting from equity market appreciation and net new assets, due to the favorable impact of our advisor retention and recruiting.

PCG assets in fee-based accounts continued to be a significant percentage of overall PCG AUA due to many clients’ preference for fee-based alternatives versus transaction-based accounts and, as a result, a significant portion of our PCG revenues is more directly impacted by market movements.

(2) The Domestic PCG net new asset growth percentage is based on the beginning Domestic PCG AUA balance for the indicated period.

PCG AUA and PCG assets in fee-based accounts as of September 30, 2025 increased 11% and 15%, respectively, compared with September 30, 2024, due to market-driven appreciation and net new assets, reflecting the favorable impact of our advisor recruiting and retention.

Offsetting these favorable impacts, domestic PCG net new assets, as well as our PCG AUA and assets in fee-based accounts, were negatively impacted by the departure of primarily one large branch in our independent contractor division in our first fiscal quarter of 2025.

PCG fee-based assets increased 7% from June 30, 2025 to September 30, 2025, which will favorably impact asset management and related administrative fees for our fiscal first quarter of 2026 results.

Fee-based accounts within our PCG segment are comprised of a wide array of products and programs that we offer our clients.

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Generally, with planned retirements, assets are retained at the firm pursuant to advisor succession plans.

During the year ended September 30, 2024, we continued to experience net transfers to our RCS division.

Advisors in our RCS division are not included in our financial advisor metric although their client assets are included in PCG AUA.

We may continue to experience transfers to our RCS division;

however, consistent with our experience in recent fiscal years, we would not expect these financial advisor transfers to significantly impact our results of operations.

Clients’ domestic cash sweep balances and ESP balances

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$ 56,353 $ 57,875 $ 56,425

(1) In March 2023, we introduced our ESP, in which PCG clients may deposit cash in a high-yield Raymond James Bank account.

ESP balances held at Raymond James Bank as of the respective year end were included in “Bank deposits” on our Consolidated Statement of Financial Condition.

Year ended September 30,

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In the current interest rate environment the PCG segment RJBDP fee revenues are derived from the yield from third-party banks in the program and the Bank segment RJBDP servicing costs reflect such market rate for the deposits.

In fiscal 2022, the PCG segment revenues reflected the base servicing fee until May 2022, when the yield from third-party banks first exceeded such level.

The fees that the PCG segment earns from the Bank segment, as well as the servicing costs incurred on the deposits in the Bank segment, are eliminated in consolidation.

See “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Net interest analysis” of this Form 10-K for further information regarding factors impacting the servicing fees we receive related to the RJBDP, as well as the interest paid to clients on their cash balances.

RAYMOND JAMES FINANCIAL, INC.

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The “Average yield on RJBDP - third-party banks” in the preceding table is computed by dividing RJBDP fees from third-party banks, which are net of the interest expense paid to clients by the third-party banks, by the average daily RJBDP balances at third-party banks.

The average yield on RJBDP - third-party banks increased from the prior year largely as a result of the increases in the Fed’s short-term benchmark interest rate throughout fiscal 2023.

The average yield on RJBDP - third-party banks for the year ended September 30, 2025 decreased from the prior year largely as a result of the decreases in the Fed’s short-term benchmark interest rate and, to a lesser extent, the impact of growth in RJBDP balances offering enhanced rates to clients which reduced the yield earned from third-party banks on such balances.

See “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Net interest analysis” of this Form 10-K for additional information.

Total clients’ domestic cash sweep and ESP balances increased 3% compared with September 30, 2023, with increases in both RJBDP balances and the ESP, which was introduced to clients in March 2023.

Total clients’ domestic cash sweep and ESP balances decreased 3% compared with September 30, 2024, with decreases in both RJBDP balances and the ESP.

PCG segment results can be impacted by not only changes in the level of client cash balances, but also by the allocation of client cash balances between the RJBDP, the CIP, and the ESP, as the PCG segment may earn different amounts from each of these client cash destinations, depending on multiple factors.

For example, the ESP has provided us the flexibility to sweep more RJBDP balances to third-party banks and reduce the amount of RJBDP balances held in our Bank segment.

Year ended September 30, 2025 compared with the year ended September 30, 2024

Net revenues of $9.46 billion increased 9% and pre-tax income of $1.79 billion increased 1%.

Asset management and related administrative fees increased $701 million, or 15%, primarily due to higher assets in fee-based accounts at the beginning of each of the current year quarterly billing periods compared with the prior-year billing periods resulting from market appreciation and net new assets, due to the favorable impact of our advisor retention and recruiting.

Net revenues of $10.18 billion increased 8% while pre-tax income of $1.72 billion decreased 4%.

Asset management and related administrative fees increased $734 million, or 14%, primarily due to higher assets in fee-based accounts at the beginning of each of the current-year quarterly billing periods compared with the prior-year billing periods resulting from market-driven appreciation and net new assets, due to the favorable impact of our advisor recruiting and retention.

Brokerage revenues increased $106 million, or 6%, primarily due to higher client activity in the current year.

Account and service fees decreased $81 million, or 4%, primarily due to a decrease in RJBDP fees resulting from lower average client cash sweep balances.

RJBDP fees paid to PCG from our Bank segment decreased due to a decline in balances allocated to our Bank segment which more than offset the impact of higher short-term interest rates, while RJBDP fees from third-party banks increased due to the aforementioned increase in short-term interest rates, as well as higher average balances swept to such banks.

Partially offsetting the decline in total RJBDP fees, mutual fund service fees increased, primarily from higher average mutual fund assets, and client account and other fees increased primarily due to business growth.

Net interest income increased $6 million, or 2%.

Other revenues decreased $21 million, or 44%, primarily due to a favorable arbitration award during the prior year, which did not reoccur in the current year.

Compensation-related expenses increased $773 million, or 13%, primarily due to higher commission expense resulting from higher compensable revenues, including asset management and related administrative fees and brokerage revenues, as well as an increase in compensation costs to support our growth and annual salary increases.

Non-compensation expenses increased $10 million, or 1%, compared with the prior year primarily due higher communications and information processing, occupancy and equipment, and business development expenses largely to support our growth.

These increases were partially offset by the favorable impact of a net legal and regulatory matters reserve release in the current year compared with elevated provisions for legal and regulatory matters in the prior year.

Account and service fees decreased $123 million, or 6%, primarily due to a decrease in RJBDP fees largely resulting from a decrease in the average RJBDP third-party bank yield.

RJBDP fees from third-party banks decreased by a greater amount than RJBDP fees from our Bank segment as average balances swept to third-party banks declined due to a higher allocation of balances swept to our Bank segment, which increased compared to the prior year.

Partially offsetting the decline in total RJBDP fees, mutual fund service fees increased primarily due to higher average mutual fund assets.

Compensation-related expenses increased $684 million, or 10%, primarily due to higher commission expense resulting from higher compensable revenues, including asset management and related administrative fees and brokerage revenues, as well as an increase in compensation costs to support our growth, including higher financial advisor recruiting-related expenses, and annual salary increases.

Non-compensation expenses increased $104 million, or 11%, compared with the prior year primarily due to higher expenses to support our growth, including investments in technology and financial advisor recruiting activities.

In addition, the current year included higher expenses related to legal and regulatory matters as the prior year reflected a net reserve release which did not reoccur in the current year.

Year ended September 30, 2024 compared with the year ended September 30, 2023

Refer to “Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our 2024 Form 10-K for a discussion of our fiscal 2024 results compared to fiscal 2023.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

RESULTS OF OPERATIONS – CAPITAL MARKETS

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We earn brokerage revenues for the sale of both equity and fixed income products to institutional clients, as well as from our market-making activities in fixed income debt instruments.

Client activity is influenced by a combination of general market activity and our Capital Markets group’s ability to find attractive investment opportunities for clients.

Client activity is influenced by a combination of general market

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

activity and our Capital Markets group’s ability to find attractive investment opportunities for clients.

In certain cases, we transact on a principal basis, which involves the purchase of financial instruments from, and the sale of financial instruments to, our clients as well as other dealers who may be purchasing or selling financial instruments for their own account or acting on behalf of their clients.

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1,128 1,002 902 13 % 11 %

Non-compensation expenses:

Communications and information processing

115 102 89 13 % 15 %

Occupancy and equipment 47 42 38 12 % 11 %

Business development

61 61 45 — % 36 %

Professional fees

60 56 47 7 % 19 %

120 142 110 (15) % 29 %

Total non-compensation expenses

Non-compensation expense

496 403 403 23 % — %

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Pre-tax income/(loss)

$ 67 $ (91) $ 415 NM NM

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

$ 146 $ 67 $ (91) 118 % NM

Year ended September 30, 2025 compared with the year ended September 30, 2024

Net revenues of $1.47 billion increased 21% and we generated pre-tax income of $67 million compared with a pre-tax loss of $91 million for the prior year.

Investment banking revenues increased $207 million, or 34%, primarily due to a higher volume of transactions closed as a result of more favorable investment banking market conditions in the current year compared to the prior year.

Brokerage revenues increased $35 million, or 7%, due to an increase in fixed income brokerage revenues primarily resulting from increased activity from depository institution clients, as well as an increase in equity brokerage revenues primarily due to higher levels of client activity.

Compensation-related expenses increased $100 million, or 11%, primarily due to the increase in revenues, as well as an increase in compensation costs to support our growth and annual salary increases.

Non-compensation expenses remained flat as higher communications and information processing expenses, occupancy and equipment expenses, and professional fees were offset by lower provisions for legal and regulatory matters.

Net revenues of $1.77 billion increased 20% and pre-tax income of $146 million increased 118%.

Investment banking revenues increased $216 million, or 26%, primarily due to more favorable market conditions and larger transactions closed during the current year.

Brokerage revenues increased $55 million, or 11%, primarily due to an increase in both fixed income and equity securities as client activity levels increased in the current year.

Compensation-related expenses increased $126 million, or 13%, primarily due to the increase in revenues.

Non-compensation expenses increased $93 million, or 23%, primarily due to the aforementioned $58 million reserve increase in the current year associated with the settlement of a legal matter, and higher expenses to support our growth.

Year ended September 30, 2024 compared with the year ended September 30, 2023

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Non-compensation expenses

Communications and information processing

456 383 336 19 % 14 %

Investment sub-advisory fees

178 147 149 21 % (1) %

142 132 132 8 % — %

Total non-compensation expenses 383 336 334 14 % 1 %

Total non-interest expenses 685 606 534 13 % 13 %

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Managed programs

Management fees recorded in our Asset Management segment are generally calculated as a percentage of the value of our fee-billable AUM.

These AUM include the portion of fee-based AUA in our PCG segment that is invested in programs overseen by our Asset Management segment (included in the “AMS” line of the following table), as well as retail accounts managed on behalf of third-party institutions, institutional accounts and proprietary mutual funds that we manage (collectively included in the “Raymond James Investment Management” line of the following table).

Management fees recorded in our Asset Management segment are generally calculated as a percentage of the value of our fee-billable financial assets under management (“AUM”).

These AUM include the portion of fee-based AUA in our PCG segment that is invested in programs overseen by AMS, as well as retail accounts managed on behalf of third-party institutions, institutional accounts and proprietary mutual funds managed by Raymond James Investment Management.

Revenues related to fee-based AUA in our PCG segment are shared by the PCG and Asset Management segments, the amount of which depends on whether or not clients are invested in assets that are in managed programs overseen by our Asset Management segment and the administrative services provided (see our “Management’s Discussion and Analysis - Results of Operations - Private Client Group” for additional information).

Our AUM in AMS are impacted by market fluctuations and net inflows or outflows of assets, including transfers between fee-based accounts and transaction-based accounts within our PCG segment.

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

Our AUM in AMS are impacted by market fluctuations and net inflows or outflows of assets, including transfers between fee-based accounts and transaction-based accounts within our PCG segment.

Revenues earned by Raymond James Investment Management for retail accounts managed on behalf of third-party institutions, institutional accounts and our proprietary mutual funds are recorded entirely in the Asset Management segment.

Our AUM in Raymond James Investment Management are impacted by market and investment performance and net inflows or outflows of assets, including the impact of acquisitions.

Our AUM in Raymond James Investment Management are impacted by market and investment performance and net inflows or outflows of assets.

Fees for our managed programs are generally collected quarterly.

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$ 274.9 $ 244.8 $ 196.4

(1) Represents the portion of our PCG segment fee-based AUA (as disclosed in “Assets in fee-based accounts” in the “Selected key metrics - PCG client asset balances” section of our “Management’s Discussion and Analysis - Results of Operations - Private Client Group”) that is invested in managed programs overseen by the Asset Management segment.

(2) Represents the portion of the AMS AUM that is managed by Raymond James Investment Management and, as a result, is included in both AMS and Raymond James Investment Management in the preceding table.

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Financial assets under management at beginning of year $ 259.5 $ 207.9 $ 184.0

Raymond James Investment Management:

Net inflows/(outflows)

Raymond James Investment Management - net inflows/(outflows)

(0.6) (2.9) 2.2

Acquisition of Chartwell Investment Partners (“Chartwell”) (1)

AMS - net inflows 10.5 10.1 6.0

Net market appreciation/(depreciation) in asset values 44.4 15.7 (36.2)

Net market appreciation in asset values

21.5 44.4 15.7

Financial assets under management at end of year $ 290.9 $ 259.5 $ 207.9

(1) Represents June 1, 2022 assets under management of Chartwell, a registered investment adviser acquired as part of the TriState Capital acquisition.

See Note 3 of the Notes to Consolidated Financial Statements of this Form 10-K for additional information about this acquisition.

See “Management’s Discussion and Analysis - Results of Operations - Private Client Group” for additional information about our retail client assets, including those fee-based assets invested in programs managed by AMS.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

See “Management’s Discussion and Analysis - Results of Operations - Private Client Group” for further information about our retail client assets, including those fee-based assets invested in programs managed by AMS.

Raymond James Investment Management

Assets managed by Raymond James Investment Management include assets managed by our subsidiaries:

Eagle Asset Management, Scout Investments, Reams Asset Management (a division of Scout Investments), ClariVest Asset Management, Cougar Global Investments, and Chartwell Investment Partners.

The following table presents Raymond James Investment Management’s AUM by objective, excluding assets for which it does not exercise discretion, as well as the approximate average client fee rate earned on such assets.

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Total financial assets under management $ 81.7 0.32 %

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Non-discretionary asset-based programs

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Net revenues of $1.19 billion increased 16% and pre-tax income of $503 million increased 19%.

Asset management and related administrative fees increased $137 million, or 16%, driven by higher financial assets under management and assets in non-discretionary asset-based programs at AMS, primarily due to market-driven appreciation in asset values and net inflows to PCG fee-based accounts.

Compensation expenses increased $25 million, or 13%, primarily due to higher revenues, as well as an increase in compensation costs to support our growth and annual cost increases, including salaries.

Non-compensation expenses increased $47 million, or 14%, largely due to higher investment sub-advisory fees, resulting from the increase in assets under management in sub-advised programs, as well as higher communications and information processing expenses.

Asset management and related administrative fees increased $160 million, or 16%, primarily driven by higher financial assets under management and assets in non-discretionary asset-based programs at AMS, primarily due to market-driven appreciation in asset values and net inflows to PCG fee-based accounts.

Compensation expenses increased $6 million, or 3%.

Non-compensation expenses increased $73 million, or 19%, largely due to higher investment sub-advisory fees, resulting from the increase in assets under management in sub-advised programs, as well as higher expenses due to investments in our growth.

Year ended September 30, 2024 compared to the year ended September 30, 2023

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

Year ended September 30, 2023 compared to the year ended September 30, 2022

Refer to “Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our 2023 Form 10-K for a discussion of our fiscal 2023 results compared to fiscal 2022.

RESULTS OF OPERATIONS – BANK

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For an overview of our Bank segment operations refer to the information presented in “Item 1 - Business” of this Form 10-K.

Our Bank segment results included the results of TriState Capital Bank since the acquisition date of June 1, 2022.

See Note 3 of the Notes to Consolidated Financial Statements of this Form 10-K for information regarding this acquisition.

Operating results

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Year ended September 30, 2025 compared with the year ended September 30, 2024

Net revenues of $1.72 billion decreased 15%, while pre-tax income of $380 million increased 2%.

Net interest income decreased $301 million, or 15%, primarily due to increased interest expense resulting from a higher-cost mix of deposits, as RJBDP balances declined and a significant portion was replaced with higher-cost ESP balances, which was introduced to clients in March 2023, and certificate of deposit balances.

The increase in interest expense was partially offset by an increase in interest income, primarily due to higher short-term interest rates and higher average interest-earning asset balances during the current year.

The Bank segment net interest margin decreased to 2.67% from 3.28% for the prior year.

Net revenues of $1.78 billion increased 3% and pre-tax income of $491 million increased 29%.

Net interest income increased $59 million, or 4%, primarily due to the impact of higher average interest-earning assets, particularly securities-based loans, partially offset by the impact of lower short-term interest rates.

The Bank segment net interest margin increased slightly to 2.68% from 2.67% for the prior year.

The bank loan provision for credit losses was $37 million for the current year, a decrease of $8 million compared with $45 million for the prior year.

The bank loan provision for credit losses for the current year primarily reflected the impacts of loan growth, specific reserves, loan downgrades, and charge-offs in our C&I and CRE loan portfolios, partially offset by the favorable impacts of an improved economic forecast, loan repayments, and loan sales in the C&I loan portfolio.

The bank loan provision for credit losses for the prior year primarily reflected the impacts of a weakened macroeconomic outlook for certain loan portfolios, including a weakened outlook for commercial real estate prices compared with the preceding year, charge-offs

The bank loan provision for credit losses for the current year primarily reflected the impacts of loan downgrades, charge-offs, and specific reserves on certain loans, partially offset by the favorable impacts of an improved economic forecast and reserve releases related to certain loan sales and paydowns.

The bank loan provision for credit losses for the prior year primarily reflected the impacts of loan growth, specific reserves, loan downgrades, and charge-offs in our C&I and CRE loan portfolios, partially offset by the favorable impacts of an improved economic forecast, loan repayments, and loan sales in the C&I loan portfolio.

Non-compensation expenses, excluding the bank loan provision for credit losses, decreased $47 million, or 4%, primarily due to a decrease of $70 million, or 8%, in RJBDP fees paid to PCG, partially offset by higher expenses related to our growth.

The Bank segment RJBDP fees paid to PCG and related revenues earned by the PCG segment are eliminated in consolidation.

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

of certain loans, and loan downgrades during the year.

These negative impacts on the prior-year provision were partially offset by the favorable impacts of loan repayments and sales, which had a larger impact than provisions on new loans during the prior year.

Non-compensation expenses, excluding the bank loan provision for credit losses, decreased $222 million, or 17%, primarily due to a decrease in RJBDP fees paid to PCG.

RJBDP fees paid to PCG decreased $269 million, or 25%, primarily due to the aforementioned decline in RJBDP balances swept to the Bank segment, partially offset by an increase in rates applicable to such balances.

These Bank segment fees and the related revenues earned by the PCG segment are eliminated in consolidation.

The decrease in RJBDP fees paid to PCG was partially offset by increases in expenses related to deposits, including an incremental FDIC special assessment enacted during the current year and expenses related to the ESP and certificate of deposit issuances during the current year, as well as higher communications and information processing expenses.

The FDIC special assessment resulted in $10 million of incremental expense for the year ended September 30, 2024.

Year ended September 30, 2024 compared to the year ended September 30, 2023

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RESULTS OF OPERATIONS – OTHER

This segment includes interest income on certain corporate cash balances, our private equity investments, which predominantly consist of investments in third-party funds, certain other corporate investing activity, and certain corporate overhead costs of RJF that are not allocated to other segments, including the interest costs on our public debt, certain provisions for legal and regulatory matters, and certain acquisition-related expenses.

This segment includes interest income on certain RJF corporate cash balances, our private equity investments, which predominantly consist of investments in third-party funds, certain other corporate investing activity, and certain corporate overhead costs of RJF that are not allocated to other segments, including the interest costs on our public debt, certain provisions for legal and regulatory matters, and certain acquisition-related expenses.

For an overview of our Other segment operations, refer to the information presented in “Item 1 - Business” of this Form 10-K.

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Interest income (1)

$ 139 $ 193 $ 147 (28) % 31 %

All other 7 6 9 17 % (33) %

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Interest expense (100) (100) (97) — % 3 %

Net revenues 99 59 (50) 68 % NM

Net revenues 46 99 59 (54) % 68 %

Non-interest expenses:

Compensation and benefits 147 104 95 41 % 9 %

Insurance settlement received — (32) — 100 % NM

All other 5 110 51 (95) % 116 %

45 5 78 800 % (94) %

Total non-interest expenses 192 109 173 76 % (37) %

Pre-tax loss $ (146) $ (10) $ (114) (1,360) % 91 %

Prior-year segment results have not been conformed to the current-year presentation.

Year ended September 30, 2025 compared to the year ended September 30, 2024

Pre-tax loss was $146 million compared with a pre-tax loss of $10 million in the prior year.

Net revenues increased $40 million, primarily due to an increase in interest income earned as a result of higher short-term interest rates applicable to our corporate cash balances and, to a lesser extent, higher average corporate cash balances.

Non-interest expenses decreased $64 million, or 37%, primarily due to the positive impact of a net legal and regulatory matters reserve release in the current year compared with a provision for legal and regulatory matters in the prior year, partially offset by the impacts of a $32 million insurance settlement received during the prior year related to a previously-settled legal matter that did not reoccur in the current year and, to a lesser extent, higher compensation expenses in the current year.

Net revenues decreased $53 million primarily due a decrease in interest income which reflected the impact of a decrease in short-term interest rates.

Non-interest expenses increased $83 million, or 76%, primarily due to higher compensation-related expenses in the current year, a net reserve release in the prior year related to legal and regulatory matters which did not reoccur in the current year, and higher acquisition-related expenses.

Year ended September 30, 2024 compared to the year ended September 30, 2023

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A significant portion of our assets were liquid in nature, providing us with flexibility in financing our business.

Total assets of $82.99 billion as of September 30, 2024 were $4.63 billion, or 6%, greater than our total assets as of September 30, 2023.

Bank loans, net increased $2.22 billion primarily driven by increases in SBL and residential mortgage loans.

Cash and cash equivalents increased $1.69 billion primarily driven by an increase in cash held in our Bank segment, largely resulting from an increase in bank deposits during the year.

Other assets increased $564 million, partially due to valuation increases on our company-owned life insurance policies.

Collateralized agreements, trading assets, and other receivables, net also increased $331 million, $293 million, and $217 million, respectively.

These increases were partially offset by a $921 million decrease in available-for-sale securities primarily driven by net maturities.

As of September 30, 2024, our total liabilities of $71.33 billion were $3.15 billion, or 5%, greater than our total liabilities as of September 30, 2023, largely due to a $1.81 billion increase in bank deposits.

Collateralized financings also increased $601 million due to an increase in securities lending activity and repurchase agreements in support of our brokerage operations.

Accrued compensation, commissions, and benefits, brokerage client payables, and trading liabilities also increased $411 million, $378 million, and $260 million, respectively.

These increases were partially offset by a $266 million decrease in derivative liabilities.

Total assets of $88.23 billion as of September 30, 2025 were $5.24 billion, or 6%, higher than our total assets as of September 30, 2024.

Bank loans, net increased $5.57 billion primarily driven by increases in SBL, residential mortgage loans, and C&I loans.

Cash and cash equivalents increased $391 million (see Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Cash flows for more information).

Loans to financial advisors, net also increased $300 million due to our recruiting activities.

These increases were partially offset by a $1.37 billion decrease in available-for-sale securities primarily driven by net maturities.

As of September 30, 2025, our total liabilities of $75.73 billion were $4.40 billion, or 6%, higher than our total liabilities as of September 30, 2024.

This increase was largely driven by a $2.89 billion increase in bank deposits and a $1.48 billion increase in senior notes payable due to the $1.5 billion issuance of senior notes in September 2025.

Accrued compensation, commissions, and benefits also increased $278 million.

These increases were partially offset by a $349 million decrease in other borrowings due to the redemption of our subordinated notes, as well as the maturity and repayment of certain FHLB borrowings.

LIQUIDITY AND CAPITAL RESOURCES

Liquidity and capital are essential to our business.

Liquidity risk is the risk that the firm will be unable to meet expected or unexpected cash flow requirements, such as payments under long-term debt agreements, commitments to extend credit, and customer deposit withdrawals, while continuing to support its businesses and customers under a range of economic conditions.

The primary goal of our liquidity management activities is to ensure adequate funding and liquidity to conduct our business over a range of economic and market environments, including times of broader industry or market liquidity stress events.

In times of market stress or uncertainty, we generally maintain higher levels of liquidity, including increased cash levels in our Bank segment, to ensure we have adequate funding to support our business and meet our clients’ needs.

In times of market stress or uncertainty, we generally maintain higher levels of liquidity to ensure we have adequate funding to support our businesses and meet our clients’ needs.

We seek to manage capital levels to support execution of our business strategy, provide financial strength to our subsidiaries, and maintain sustained access to the capital markets, while at the same time meeting our regulatory capital requirements and conservative internal management targets.

Liquidity and capital resources are provided primarily through our business operations and financing activities.

Our business operations generate substantially all of their own liquidity and funding needs.

Our businesses generate substantially all of their own liquidity and funding needs.

We have a contingency funding plan which would guide our actions if one or more of our businesses were to experience disruptions from normal funding and liquidity sources.

These actions include reallocating client cash balances in the RJBDP from third-party banks to our bank subsidiaries thereby bringing those deposits onto our Consolidated Statements of Financial Condition, increasing our FHLB borrowings or borrowing from the Federal Reserve’s discount window at our bank subsidiaries, accessing committed and uncommitted lines of credit at the parent or certain operating subsidiaries, or accessing capital markets.

We also have the ability to create additional sources of funding by developing new products to meet the financial needs of our clients, such as the ESP deposit offering which was introduced to PCG clients in fiscal 2023 and, from time to time, offering enhanced rates on certain RJBDP deposits.

We also have the ability to create additional sources of funding by developing new products to meet the financial needs of our clients, such as the ESP deposit offering and, from time to time, offering enhanced rates on certain RJBDP deposits.

With each of our deposit offerings, we work to obtain sufficient liquidity to support our business operations while also maintaining a high level of FDIC insurance coverage for our clients.

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We manage the maturities and diversity of our funding across products and seek to maintain a diversified funding profile with an appropriate tenor, taking into consideration the characteristics and liquidity profile of our assets (e.g., the maturities of our available-for-sale securities portfolio).

The liquidity management framework includes senior management’s review of short- and long-term cash flow forecasts, review of necessary expenditures, monitoring of the availability of alternative sources of financing, and daily monitoring of liquidity in our significant subsidiaries.

The liquidity management framework includes senior management’s review of short- and long-term cash flow forecasts, monitoring of the availability of alternative sources of financing, and daily monitoring of liquidity in our significant subsidiaries.

Our decisions on the allocation of resources to our business units consider, among other factors, projected profitability, cash flow, risk, future liquidity needs, and required capital levels.

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Information about our common equity is included in the Consolidated Statements of Financial Condition, the Consolidated Statements of Changes in Shareholders’ Equity, and Note 19 of the Notes to Consolidated Financial Statements of this Form 10-K.

Under regulatory capital rules applicable to us as a bank holding company that has made an election to be a financial holding company, we are required to maintain minimum leverage ratios (defined as tier 1 capital divided by adjusted average assets), as well as minimum ratios of tier 1 capital, common equity tier 1 (“CET1”), and total capital to risk-weighted assets.

These capital ratios incorporate quantitative measures of our assets, liabilities, and certain off-balance sheet items as calculated under the regulatory capital rules and are subject to qualitative judgments by the regulators about components, risk-weightings, and other factors.

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In order to maintain our ability to take certain capital actions, including dividends and common equity repurchases, and to make bonus payments, we must hold a capital conservation buffer above our minimum risk-based capital requirements.

See Note 24 of the Notes to Consolidated Financial Statements of this Form 10-K for additional information about our regulatory capital and related capital ratios.

See Note 23 of the Notes to Consolidated Financial Statements of this Form 10-K for further information about our regulatory capital and related capital ratios.

We have classified all of our investments in debt securities as available-for-sale and have not classified any of our investments in debt securities as held-to-maturity.

Accordingly, we account for our available-for-sale securities at fair value at each reporting date, with unrealized gains and losses, net of tax, included in accumulated other comprehensive income/(loss) (“AOCI”).

Current Basel III rules permit us to make an election to exclude most components of AOCI when calculating CET1, tier 1 capital, and total capital.

Accordingly, we account for our available-for-sale securities at fair value at each reporting date, with unrealized gains and losses, net of tax, included in AOCI.

Current Basel III rules permit us to make an election to exclude most components of AOCI when calculating CET1 capital, tier 1 capital, and total capital.

We have elected the AOCI opt-out for regulatory capital purposes and therefore exclude certain elements of AOCI, including gains/losses on our available-for-sale portfolio, from our capital calculations.

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September 30, 2025 September 30, 2024

Credit risk-weighted assets:

On-balance sheet assets:

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Other off-balance sheet items 480 429

Total credit risk-weighted assets

45,543 42,825

Market risk-weighted assets

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government and its agencies.

Cash and cash equivalents (excluding amounts segregated for regulatory purposes and restricted cash) of $11.00 billion at September 30, 2024 increased $1.69 billion compared with September 30, 2023.

The increase in cash and cash equivalents primarily resulted from net income, an increase in bank deposits, net maturities of available-for-sale securities during the year, and proceeds from loan sales.

These increases were partially offset by investments in bank loans, common stock repurchases and dividends paid on our common and preferred stock.

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

Cash and cash equivalents (excluding amounts segregated for regulatory purposes and restricted cash) of $11.39 billion at September 30, 2025 increased $391 million compared with September 30, 2024.

The increase in cash and cash equivalents primarily resulted from an increase in bank deposits, net income, proceeds from the issuance of $1.5 billion of senior notes, and net maturities of available-for-sale securities during the year.

These increases were partially offset by net investments in bank loans, common stock repurchases, dividends paid on our common and preferred stock, net loans provided to financial advisors, and the repayment of certain FHLB borrowings and our subordinated notes during the year.

Sources of liquidity

Approximately $2.16 billion of our total September 30, 2024 cash and cash equivalents was RJF corporate cash, which included the cash held at the parent company as well as cash it loaned to RJ&A.

RJF corporate cash of $3.67 billion as of September 30, 2025, included cash and cash equivalents held directly at the parent company as well as cash loaned by the parent company to RJ&A.

As of September 30, 2025, RJF had loaned $1.40 billion to RJ&A (such amount is included in the RJ&A cash balance in the following table), which RJ&A has invested on behalf of RJF in cash and cash equivalents or otherwise deployed in its normal business activities.

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Raymond James Bank 1,851

Charles Stanley & Co.

Limited (“Charles Stanley”) 147

Raymond James Financial Services, Inc.

Raymond James Trust Company of New Hampshire 135

Raymond James Capital Services, LLC 132

Raymond James Wealth Management Limited (1)

Raymond James Financial Services, Inc.

Raymond James Investment Management 109

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Total cash and cash equivalents $ 11,389

(1) Effective July 1, 2025, Charles Stanley & Co.

Limited changed its legal name to Raymond James Wealth Management Limited (“RJWM”).

RJF maintained depository accounts at Raymond James Bank and TriState Capital Bank totaling $302 million as of September 30, 2025.

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subsidiaries, including RJ Ltd.

and Charles Stanley, was held to meet regulatory requirements and was not available for use by the parent as of September 30, 2024.

and RJWM, was held to meet regulatory requirements and was not available for use by the parent as of September 30, 2025.

In addition to the cash balances described, we have various other potential sources of cash available to the parent company from subsidiaries, as described in the following section.

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At September 30, 2025, RJ&A significantly exceeded the minimum regulatory requirements, the covenants in its financing arrangements pertaining to net capital, as well as its internally-targeted net capital tolerances.

FINRA may impose certain restrictions, such as restricting withdrawals of equity capital, if a member firm were to fall below a certain threshold or fail to meet minimum net capital requirements which may result in RJ&A limiting dividends it would otherwise remit to RJF.

We evaluate regulatory requirements, loan covenants and certain internal tolerances when determining the amount of liquidity available to RJF from RJ&A.

Our bank subsidiaries may pay dividends to RJF without prior approval of their regulators as long as the dividends do not exceed the sum of their current calendar year and the previous two calendar years’ retained net income, and they maintain their targeted regulatory capital ratios, among other restrictions.

Dividends paid to RJF from our bank subsidiaries may be limited to the extent that capital is needed to support balance sheet growth or as part of our liquidity and capital management activities.

Although we have liquidity available to us from our other subsidiaries, the available amounts may not be as significant as those previously described and, in certain instances, may be subject to regulatory requirements.

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

limiting dividends it would otherwise remit to RJF.

We evaluate regulatory requirements, loan covenants and certain internal tolerances when determining the amount of liquidity available to RJF from RJ&A.

Dividends paid to RJF from our bank subsidiaries may be limited to the extent that capital is needed to support balance sheet growth or as part of our liquidity and capital management activities.

If necessary, RJF can also access additional liquidity, largely without regulatory preapproval, from certain other subsidiaries that generally do not serve as regular sources of dividend distributions to the parent.

Borrowings and financing arrangements

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Our ability to borrow under these arrangements is dependent upon compliance with the conditions in our various loan agreements and, in the case of secured borrowings, collateral eligibility requirements.

As of September 30, 2024, RJF and RJ&A had the ability to borrow under our $750 million Credit Facility, a committed unsecured line of credit.

In September 2025, we amended our revolving credit facility agreement, a committed unsecured line of credit under which both RJ&A and RJF have the ability to borrow.

The amended agreement extended the term to September 2030, increased the borrowing capacity to $1 billion, and decreased the applicable rate by which interest is calculated, generally resulting in a decrease of 12.5 basis points across all borrowing scenarios.

We had no such borrowings outstanding under this facility as of September 30, 2025.

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Our uncommitted secured financing arrangements generally require us to post collateral in excess of the amount borrowed and are generally collateralized by RJ&A-owned securities or by securities that we have received as collateral under reverse repurchase agreements (i.e., securities purchased under agreements to resell).

As of September 30, 2024, we had outstanding borrowings under three uncommitted secured borrowing arrangements out of a total of 12 uncommitted financing arrangements (eight uncommitted secured and four uncommitted unsecured).

However, lenders are under no contractual obligation to lend to us under uncommitted credit facilities.

As of September 30, 2025, we had outstanding borrowings under three uncommitted secured borrowing arrangements out of a total of 14 uncommitted financing arrangements (nine uncommitted secured and five uncommitted unsecured).

However, lenders are generally under no contractual obligation to lend to us under uncommitted credit facilities.

See Notes 6 and 15 of the Notes to Consolidated Financial Statements of this Form 10-K for additional information regarding these borrowings.

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September 30, 2024 $ 344 $ 402 $ 402 $ 337 $ 413 $ 413

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Management’s Discussion and Analysis

Other borrowings and collateralized financings

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The interest rates on our floating-rate advances are based on SOFR.

We use interest rate swaps to manage the risk of increases in interest rates associated with the majority of our floating-rate FHLB advances by converting the balances subject to variable interest rates to a fixed interest rate.

We use interest rate swaps to manage the risk of increases in interest rates associated with our floating-rate FHLB advances by converting the balances subject to variable interest rates to a fixed interest rate.

We pledge certain of our bank loans and available-for-sale securities with the FHLB as security for both the repayment of certain borrowings and to secure capacity for additional borrowings as needed.

As of September 30, 2024, we had an additional $9.61 billion in immediate credit available from the FHLB based on the collateral pledged.

With the pledge of incremental collateral, we could further increase credit available to us from the FHLB.

As of September 30, 2025, we had $9.6 billion in immediate credit available from the FHLB based on the collateral pledged.

See Notes 6 and 15 of the Notes to Consolidated Financial Statements of this Form 10-K for additional information regarding bank loans and available-for-sale securities pledged with the FHLB and for additional information on our FHLB borrowings, including the related maturities and interest rates.

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Management’s Discussion and Analysis

As member banks, our bank subsidiaries have access to the Federal Reserve’s discount window and may have access to other lending programs that may be established by the Federal Reserve in unusual and exigent circumstances.

As of September 30, 2024, our bank subsidiaries had pledged certain bank loans and available-for-sale securities with the Federal Reserve and subsequent to that date have continued to pledge additional assets to further increase our borrowing capacity and support our operational readiness to borrow from the discount window.

See Note 7 of the Notes to Consolidated Financial Statements of this Form 10-K for additional information regarding bank loans pledged with the FRB.

As of September 30, 2025, our bank subsidiaries had pledged certain bank loans with the Federal Reserve and had $15.1 billion in immediate credit available from the FRB based on collateral pledged.

See Note 6 of the Notes to Consolidated Financial Statements of this Form 10-K for additional information regarding our assets pledged with the FRB.

A portion of our fixed income transactions are cleared through a third-party clearing organization, which provides financing for the purchase of trading instruments to support such transactions.

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While we had borrowings outstanding as of September 30, 2025, the clearing organization is under no contractual obligation to lend to us under this arrangement.

At September 30, 2024, we had subordinated notes due May 2030 outstanding, with an aggregate principal amount of $98 million.

On August 15, 2025, we redeemed all subordinated notes, pursuant to the applicable indenture provisions.

The subordinated notes were redeemed at their principal amount of $98 million, plus accrued and unpaid interest, utilizing cash on hand.

See Note 15 of the Notes to Consolidated Financial Statements of this Form 10-K for additional information regarding these borrowings.

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Senior notes payable

At September 30, 2024, we had aggregate outstanding senior notes payable of $2.04 billion, which, exclusive of any unaccreted premiums or discounts and debt issuance costs, was comprised of $500 million par 4.65% senior notes due April 2030, $800 million par 4.95% senior notes due July 2046, and $750 million par 3.75% senior notes due April 2051.

See Note 17 of the Notes to Consolidated Financial Statements of this Form 10-K for additional information on senior notes payable.

On September 11, 2025, to secure financing during a period of favorable market conditions characterized by tight credit spreads and attractive benchmark yields, we issued $1.5 billion in senior notes, consisting of $650 million in aggregate principal amount of 4.90% senior notes due September 2035 and $850 million in aggregate principal amount of 5.65% senior notes due September 2055 in a registered underwritten public offering.

As of September 30, 2025, after the issuance of the aforementioned notes, we had aggregate outstanding senior notes payable of $3.52 billion, which, exclusive of any unaccreted premiums or discounts and debt issuance costs, was comprised of $500 million par 4.65% senior notes due April 2030, $650 million par 4.90% senior notes due September 2035, $800 million par 4.95% senior notes due July 2046, $750 million par 3.75% senior notes due April 2051, and $850 million par 5.65% senior notes due September 2055.

At September 30, 2025, estimated future contractual interest payments on our senior notes were approximately $3.44 billion, of which $171 million is payable in fiscal 2026, with the remainder extending through fiscal 2055.

See Note 16 of the Notes to Consolidated Financial Statements of this Form 10-K for additional information on our senior notes payable.

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Management’s Discussion and Analysis

Credit ratings

Our issuer, senior long-term debt, and preferred stock credit ratings as of the most current report are detailed in the following table.

In connection with our 2025 senior notes issuance, the rating agencies affirmed our current credit ratings for the newly issued debt.

Credit Rating

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Any rating downgrades could increase our costs in the event we were to obtain additional financing.

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

Should our credit rating be downgraded prior to a public debt offering, it is probable that we would have to offer a higher rate of interest to bond investors.

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Other sources and uses of liquidity

We have company-owned life insurance policies which are utilized to fund certain non-qualified deferred compensation plans and other employee benefit plans.

We have corporate-owned life insurance policies which are utilized to fund certain non-qualified deferred compensation plans and other employee benefit plans.

Certain of our non-qualified deferred compensation plans and other employee benefit plans are employee-directed (i.e., the participant chooses investment portfolio benchmarks) while others are company-directed.

Of the company-owned life insurance policies which fund these plans, certain policies could be used as a source of liquidity for the firm.

Of the corporate-owned life insurance policies which fund these plans, certain policies could be used as a source of liquidity for the firm.

Those policies against which we could readily borrow had a cash surrender value of $1.35 billion as of September 30, 2025, comprised of $939 million related to employee-directed plans and $410 million related to company-directed plans, and we were able to borrow up to 90%, or $1.21 billion, of the September 30, 2025 total without restriction.

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Subject to certain conditions, this registration statement will be effective through May 8, 2027.

In May 2024, Raymond James Bank entered into a joint venture with a third party to offer private credit solutions in order to finance clients’ merger and acquisition transactions.

All loans made by the joint venture to borrower companies are subject to unanimous approval by both Raymond James Bank and the joint venture member.

Raymond James Bank may make advances through a loan to the joint venture.

The activity of this joint venture did not have a significant impact on our financial position or results of operations for the year ended September 30, 2024.

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Management’s Discussion and Analysis

We purchase our own common stock from time to time in conjunction with a number of activities, which are described in further detail in Note 19 and “Part II - Item 5 - Market for registrant’s common equity, related shareholder matters and issuer purchases of equity securities” of this Form 10-K.

In periods where our capital and liquidity position are strong, and subject to our Board of Directors’ common stock repurchase authorization limit, we may purchase higher quantities of our shares on a more consistent basis than we have historically as part of our capital deployment strategies.

On October 14, 2025, we announced we had reached an agreement to acquire a majority stake in GreensLedge Holdings LLC (“GreensLedge”), a boutique investment bank specializing in structured credit and securitization.

The transaction, which is subject to the satisfaction of customary closing conditions, including regulatory approvals, is currently expected to close in our fiscal 2026.

The acquisition of GreensLedge will add securitization and advisory capabilities to our existing fixed income operations.

We currently have the ability to utilize our cash on hand to fund the acquisition.

GreensLedge will operate within our Capital Markets segment upon completion of the acquisition.

As part of our ongoing operations, we also enter into contractual arrangements that may require future cash payments, including certificates of deposit, lease obligations and other contractual arrangements, such as for software licenses and various services.

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We have entered into investment commitments, lending commitments, and other commitments to extend credit for which we are unable to reasonably predict the timing of future payments.

See Note 19 of the Notes to Consolidated Financial Statements of this Form 10-K for additional information.

See Note 18 of the Notes to Consolidated Financial Statements of this Form 10-K for further information.

Refer to the discussion of the regulatory environment in which we operate and the impact on our operations of certain rules and regulations in “Item 1 - Business - Regulation” of this Form 10-K.

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In addition, regulatory agencies and SROs institute investigations from time to time into industry practices, among other things.

For example, in August 2024, the SEC’s Division of Enforcement requested information regarding our practices related to cash

For example, beginning in August 2024, the SEC’s Division of Enforcement requested information regarding our practices related to cash sweep programs for investment advisory clients and is reportedly conducting similar reviews at other financial institutions.

The firm has been cooperating with this inquiry.

In addition, in August 2024 and December 2024, a total of three putative class action lawsuits were filed in federal district court alleging, among other things, that the firm breached its fiduciary duties or agreements with regard to rates paid to clients in our cash sweep programs.

All three cases were subsequently consolidated, but on July 24, 2025, the plaintiff in one of the three lawsuits voluntarily dismissed all of their claims without prejudice.

We intend to vigorously defend against the claims asserted by the remaining named plaintiffs.

The SEC adopted final rules mandating central clearing of cash, repurchase, and reverse repurchase transactions in U.S.

In February 2025, the SEC extended the compliance dates for these rules by one year to December 2026 for cash market transactions and to June 2027 for repurchase and reverse repurchase transactions.

We are actively working to update our business practices to align with the new requirements and do not expect the rule to have a material impact on our financial position.

In December 2024, the SEC adopted a final rule amending SEC Rules 15c3-3, the Customer Protection rule, and 15c3-1, the Net Capital rule.

These amendments will require large clearing/carrying broker-dealers, including RJ&A, to compute customer and Proprietary Account of Broker-dealer reserve requirements and make any required reserve account deposits daily rather than the current weekly requirement.

In June 2025, the SEC extended the compliance date for this rule by six months to June 30, 2026.

We are prepared to comply with the rule as of its effective date and do not expect it to have a material impact on our financial position.

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Management’s Discussion and Analysis

sweep programs for investment advisory clients and is reportedly conducting similar reviews at other financial institutions.

The firm has been cooperating with this request.

In addition, in August 2024, two putative class action lawsuits were filed in federal district court alleging, among other things, that the firm breached its fiduciary duties or agreements with regard to rates paid to clients in our cash sweep programs.

We intend to vigorously defend against these lawsuits.

In August 2024, the firm entered into a settlement (the “Settlement”) with the SEC’s Division of Enforcement to resolve an investigation of the firm’s compliance with records preservation requirements relating to business communications sent over electronic messaging channels that have not been approved by the firm.

In the Settlement, the firm agreed to cease and desist from further violations of certain records preservation requirements, admitted the SEC’s factual findings, agreed to pay a civil monetary penalty of $50 million, agreed to engage an independent compliance consultant, and agreed to implement improvements to our related compliance policies and procedures.

On July 4, 2025, the One Big Beautiful Bill Act was signed into law, enacting significant changes to the U.S.

Among its many provisions, those with the largest impact on our firm include the restoration of accelerated depreciation provisions (i.e., bonus depreciation), immediate expensing for domestic research and development costs (reversing prior amortization requirements), modifications to certain U.S.

international tax provisions enacted under the 2017 Tax Cuts and Jobs Act, a new limitation on charitable contributions whereby deductions will only be permitted for amounts exceeding 1% of taxable income, and the eventual phaseout of certain renewable energy tax credit programs.

The changes to renewable energy programs do not impact tax credits applicable to our existing renewable energy equity investments.

The accelerated depreciation provisions were effective for the year ended September 30, 2025 and did not have a material impact on our financial position, results of operations, or effective income tax rate.

We do not expect the remaining provisions, which have varying effective dates, to have a material impact on our effective tax rate.

In August 2023, Raymond James Investment Services Limited, one of our U.K.

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This VREQ has not had a material impact on our consolidated results of operations, and we do not expect it to have a material impact in the future.

The Organization for Economic Co-operation and Development (“OECD”) has issued the Global Anti-Base Erosion Model Rules (“Pillar II”) which generally provides for multinational organizations to have a minimum effective corporate tax rate of 15% in each jurisdiction in which they operate.

We have foreign operations in the U.K, Canada, and Germany, and will be subject to certain portions of Pillar II beginning in fiscal 2025.

We do not anticipate that Pillar II will have a material impact on our consolidated results of operations or effective income tax rate.

CRITICAL ACCOUNTING ESTIMATES

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gross domestic product, equity market indices, unemployment rates, and commercial real estate and residential home price indices.

To demonstrate the sensitivity of credit loss estimates on our bank loan portfolio to macroeconomic forecasts, we compared our modeled estimates under the base case economic scenario used to estimate the allowance for credit losses as of September 30, 2025 to what our estimate would have been under a downside case scenario and an upside case scenario, without considering any offsetting effects in the qualitative component of our allowance for credit losses.

As of September 30, 2025, use of the downside case scenario would have resulted in an increase of approximately $170 million in the quantitative portion of our allowance for credit losses on bank loans, while the use of the upside case scenario would have resulted in a reduction of

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

To demonstrate the sensitivity of credit loss estimates on our bank loan portfolio to macroeconomic forecasts, we compared our modeled estimates under the base case economic scenario used to estimate the allowance for credit losses as of September 30, 2024 to what our estimate would have been under a downside case scenario and an upside case scenario, without considering any offsetting effects in the qualitative component of our allowance for credit losses.

As of September 30, 2024, use of the downside case scenario would have resulted in an increase of approximately $175 million in the quantitative portion of our allowance for credit losses on bank loans, while the use of the upside case scenario would have resulted in a reduction of approximately $30 million in the quantitative portion of our allowance for credit losses on bank loans.

approximately $25 million in the quantitative portion of our allowance for credit losses on bank loans.

These hypothetical outcomes reflect the relative sensitivity of the modeled portion of our allowance estimate to macroeconomic forecasted scenarios but do not consider any potential impact qualitative adjustments could have on the allowance for credit losses in such environments.

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ACCOUNTING STANDARDS UPDATE

In November 2023, the Financial Accounting Standards Board (“FASB”) issued amended guidance related to disclosures for segment reporting (ASU 2023-07).

The amendment requires a public entity to disclose on an annual and interim basis, for each reportable segment, the significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss.

The guidance also requires a public entity to disclose, for each reportable segment, an amount for other segment items (those not captured as a significant expense) and the reported measure of a segment’s profit or loss.

This new guidance is effective for annual periods beginning in our fiscal 2025 and interim periods beginning in our fiscal first quarter of 2026 with early adoption permitted.

This guidance will be applied on a retrospective basis.

Since this amendment only requires additional disclosures, adoption of this ASU will not have an impact on our financial condition, results of operations, or cash flows.

In December 2023, the FASB issued amended guidance related to disclosures for income taxes (ASU 2023-09).

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The guidance also requires an entity to disclose income taxes paid (net of refunds received), disaggregated by federal, state, and foreign taxes, and net amounts paid to an individual jurisdiction when they represent 5% or more of the total income taxes paid.

This new guidance is effective for annual periods beginning in our fiscal 2026 with early adoption permitted.

This new guidance is effective for annual periods beginning in our fiscal 2026 with early adoption permitted, although we do not plan to early adopt.

This guidance will be applied on a prospective basis with retrospective application permitted.

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This amendment requires public business entities to provide detailed disclosures in the notes to financial statements disaggregating specific expense categories, including employee compensation, depreciation, and intangible asset amortization, as well as certain other disclosures to provide enhanced transparency into the nature and function of expenses.

This new guidance is effective for annual periods beginning in our fiscal 2028 and interim periods beginning in our fiscal first quarter of 2029 with early adoption permitted.

This new guidance is effective for annual periods beginning in our fiscal 2028 and interim periods beginning in our fiscal first quarter of 2029 with early adoption permitted, although we do not plan to early adopt.

This guidance will be applied on a prospective basis with retrospective application permitted.

Since this amendment only requires additional disclosures, adoption of this ASU will not have an impact on our financial condition, results of operations, or cash flows.

In September 2025, the FASB issued amended guidance related to capitalization of internal-use software costs (ASU 2025-06).

This amendment eliminates references to sequential software development stages and requires capitalization of internal-use software costs once management has authorized and committed to funding the software project and when the probability that the project will be completed and the software will be used to perform the function intended is evident.

This new guidance is effective for annual and interim periods beginning in our fiscal 2029 with early adoption permitted.

This guidance will be applied using a prospective transition approach, with a modified retrospective or full retrospective transition approach permitted.

Since the capitalization of internal-use software costs generally will not change significantly for most types of software under the amendments in this guidance, we do not expect adoption of this ASU to have a material impact on our financial condition or results of operations.

In November 2025, the FASB issued amended guidance related to the accounting for purchased loans (ASU 2025-08).

Under this new guidance, loans acquired without credit deterioration and deemed “seasoned” will be considered purchased seasoned loans and accounted for using the gross-up approach at acquisition (i.e., record the loan at its purchase price and separately record an allowance for expected credit losses).

Seasoned loans include all loans acquired in a business combination, that do

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

this amendment only requires additional disclosures, adoption of this ASU will not have an impact on our financial condition, results of operations, or cash flows.

not have “more-than-insignificant” deterioration of credit quality since origination, as well as loans purchased at least 90 days after origination, where the purchaser was not involved in the origination of the loans.

This new guidance is effective for annual and interim periods beginning in our fiscal 2028 with early adoption permitted.

This guidance will be applied using a prospective transition approach.

We are evaluating the impact the adoption of this ASU will have on our financial condition and results of operations.

See Note 2 of the Notes to Consolidated Financial Statements of this Form 10-K for information regarding accounting guidance adopted during the year ended September 30, 2025.

RISK MANAGEMENT

Risks are an inherent part of our business and activities.

Risks are an inherent part of our business and activities and, as a result, we are subject to various uncertainties that may impact our strategic objectives, operations, and financial results.

Management of risk is critical to our fiscal soundness and profitability.

Our risk management processes are multi-faceted and require communication, judgment and knowledge of financial products and markets.

We have a formal ERM program to assess and review aggregate risks across the firm.

Our management takes an active role in the ERM process, which requires specific administrative and business functions to participate in the identification, assessment, monitoring and control of various risks.

Our risk management framework is comprised of common principles and standards for the management and control of risks that align with our culture and risk appetite.

This framework allows for identification, assessment, monitoring, reporting, and control of various risks, with associates, including senior management, playing an active role in support of this framework.

The principal risks related to our business activities are market, credit, liquidity, operational, model, and compliance.

Our Board of Directors, including its Risk Committee and Audit Committee, oversees the firm’s management and mitigation of risk, reinforcing a culture that encourages ethical conduct and risk management throughout the firm.

Senior management communicates and reinforces this culture through three lines of risk management and a number of senior-level management committees.

Risk oversight and decision-making are supported by a formalized risk governance structure in addition to a three lines of risk management model.

Our Board of Directors, including its Risk Committee and Audit Committee, is responsible for the review and approval of the risk management framework and receives regular updates on risks identified including the assessment, monitoring, and reporting of those risks and related issues.

The Board of Directors, including its Risk Committee and Audit Committee, assists in articulating the firm’s risk appetite.

The RJF Enterprise Risk Management Committee is the senior management-level committee responsible for risk oversight and is supported by additional risk-specific committees.

These committees support effective risk governance by providing a forum for communication, escalation, and risk remediation with representation across all lines of risk management.

Our first line of risk management, which includes all of our businesses, owns its risks and is responsible for identifying, mitigating, and escalating risks arising from its day-to-day activities.

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We have exposure to market risk primarily through our broker-dealer trading operations and our banking operations.

Through our broker-dealer subsidiaries, we trade debt obligations and, to a lesser extent, equity securities and maintain trading inventories to ensure availability of securities to facilitate client transactions.

Through our broker-dealer subsidiaries, we trade fixed income and, to a lesser extent, equity securities and maintain trading inventories to ensure availability of securities to facilitate client transactions.

Inventory levels may fluctuate daily as a result of client demand.

Within our banking operations, we hold investments in an available-for-sale securities portfolio, and from time to time may hold Small Business Administration loan securitizations not yet sold.

Our primary market risks relate to interest rates, equity prices, and foreign exchange rates.

Interest rate risk results from changes in levels of interest rates, the volatility of interest rates, mortgage prepayment speeds, and credit spreads.

Within our banking operations, we hold investments in an available-for-sale securities portfolio, and from time to time may hold Small Business Administration (“SBA”) loan securitizations not yet sold.

Our primary market risks relate to interest rates, credit spreads, equity prices, and foreign exchange rates.

Interest rate risk results from changes in levels of interest rates, the volatility of interest rates and mortgage prepayment speeds.

Credit spread risk results from change in the market perception of the credit quality of issuers, which can affect the value of credit sensitive instruments such as corporate bonds, municipal bonds, and structured products.

Equity risk results from changes in prices of equity securities.

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Risk exposure is controlled by limiting our participation, the transaction size, or through the syndication process.

Market Risk Management is responsible for measuring, monitoring, and reporting market risks associated with the firm’s trading and derivative portfolios.

While Market Risk Management maintains ongoing communication with the revenue-generating business units, it is independent of such units.

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Management’s Discussion and Analysis

Market Risk Management is responsible for measuring, monitoring, and reporting market risks associated with the firm’s trading and derivative portfolios.

While Market Risk Management maintains ongoing communication with the revenue-generating business units, it is independent of such units.

Trading activities

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The VaR model is independently reviewed by our Model Risk Management function.

See the “Model risk” section that follows for additional information.

See “Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations - Risk management - Model risk” of this Form 10-K for further information.

The modeling of the risk characteristics of trading positions involves a number of assumptions and approximations that management believes to be reasonable.

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As a result, VaR results are more reliable when used as indicators of risk levels and trends within a firm than as a basis for inferring differences in risk-taking across firms.

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Management’s Discussion and Analysis

The following table sets forth the high, low, period-end and average daily one-day VaR for all of our trading portfolios, including fixed income and equity instruments, and for our derivatives for the periods and dates indicated.

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Daily VaR $ 6 $ 1 $ 3 $ 2 Average daily VaR $ 3 $ 2

We perform daily back-testing procedures for our VaR model, as defined by the Fed’s MRR, whereby we compare each day’s projected VaR to its regulatory-defined daily trading losses, which exclude fees, commissions, reserves, net interest income,

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Management’s Discussion and Analysis

and intraday trading.

Our daily VaR reached a high of $6 million on one day due to positions held to support our underwriting activities.

Regulatory-defined daily trading losses are used to evaluate the performance of our VaR model and are not comparable to our actual daily net revenues.

Based on these daily “ex ante” versus “ex post” comparisons, we determine whether the number of times that regulatory-defined daily trading losses exceed VaR is consistent with our expectations at a 99% confidence level.

During the year ended September 30, 2024, our regulatory-defined daily losses in our trading portfolios exceeded our predicted VaR on two occasions.

During the year ended September 30, 2025, our regulatory-defined daily losses in our trading portfolios exceeded our predicted VaR on three occasions primarily due to heightened market volatility in early April 2025 driven by economic uncertainties surrounding the potential impacts of changes in international trade policy.

Separately, RJF provides additional market risk disclosures to comply with the MRR, including 10-day VaR and 10-day Stressed VaR, which are available on our website at https://www.raymondjames.com/investor-relations/financial-information/filings-and-reports within “Other Reports and Information.”

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Various interest rate scenarios are modeled in order to determine the effect those scenarios may have on net interest income.

The following table is an analysis of our banking operations’ estimated net interest income over a 12-month period based on instantaneous shifts in interest rates (expressed in basis points) using our previously described asset/liability model, which assumes a dynamic balance sheet, a weighted average deposit beta on our interest-bearing deposit accounts without stated maturities of approximately 65% as interest rates rise and approximately 55% as interest rates fall, and that interest rates do not decline below zero.

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Management’s Discussion and Analysis

While not presented, additional rate scenarios are performed, including interest rate ramps and yield curve shifts that may more realistically mimic the speed of potential interest rate movements.

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-200 $1,661 (10)%

(1) Our 0-basis point scenario was based on interest rates as of September 30, 2024 and did not include the impact of the Fed’s November 2024 decrease in short-term interest rates.

The preceding table does not include the impacts of an instantaneous change in interest rates on net interest income on assets and liabilities outside of our banking operations or on our RJBDP fees from third-party banks, which are also sensitive to changes in interest rates and are included in “Account and service fees” on our Consolidated Statements of Income and

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Management’s Discussion and Analysis

Comprehensive Income.

(1) Our 0-basis point scenario was based on interest rates as of September 30, 2025 and did not include the impact of the Fed’s October 2025 decrease in short-term interest rates.

Refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Net interest analysis” of this Form 10-K for additional information on our net interest income.

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As of September 30, 2025, our EVE analyses were within approved limits.

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Management’s Discussion and Analysis

The following table shows the maturities of our bank loan portfolio at September 30, 2025, including contractual principal repayments.

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Total loans held for sale and investment $ 22,139 $ 13,298 $ 6,158 $ 10,424 $ 52,019

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Management’s Discussion and Analysis

The following table shows the distribution of the recorded investment of those bank loans that mature in more than one year between fixed and adjustable interest rate loans at September 30, 2025.

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Residential mortgage loans (1)

208 10,081 10,289

Tax-exempt loans 1,095 — 1,095

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Total loans held for sale and investment $ 2,660 $ 27,220 $ 29,880

(1) Adjustable rate residential mortgage loans included loans which were still in their fixed-rate period at September 30, 2025

Contractual loan terms for SBL, C&I loans, CRE loans, REIT loans, and residential mortgage loans may include an interest rate floor, cap and/or fixed interest rates for a certain period of time, which would impact the timing of the interest rate reset for the respective loan.

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Our banking operations are also subject to foreign exchange risk due to our investments in foreign subsidiaries as well as transactions and resulting balances denominated in a currency other than the USD.

For example, our bank loan portfolio includes loans which are denominated in Canadian dollars, totaling $1.23 billion and $1.40 billion at September 30, 2024 and 2023, respectively, when converted to USD.

For example, our bank loan portfolio includes loans which are denominated in Canadian dollars, totaling $1.00 billion and $1.23 billion at September 30, 2025 and 2024, respectively, when converted to the USD using the spot rate at that time.

A majority of such loans are held in a Canadian subsidiary of Raymond James Bank.

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At September 30, 2025, we had foreign exchange risk in our investment in RJ Ltd.

of CAD 441 million and in our investment in Charles Stanley of £277 million, which were not hedged.

of CAD 487 million and in our investment in our UK PCG subsidiary of £309 million, which were not hedged.

We had other, less significant investments in foreign domiciled subsidiaries, primarily in Europe, which were not hedged;

however, we do not believe we had material foreign exchange risk either individually, or in the aggregate, pertaining to these subsidiaries as of September 30, 2025.

Foreign exchange gains/losses related to our foreign investments are primarily reflected in OCI on our Consolidated Statements of Income and Comprehensive Income.

See Note 20 of the Notes to Consolidated Financial Statements of this Form 10-K for additional information regarding our components of OCI.

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Management’s Discussion and Analysis

exchange gains/losses related to our foreign investments are primarily reflected in OCI on our Consolidated Statements of Income and Comprehensive Income.

See Note 19 of the Notes to Consolidated Financial Statements of this Form 10-K for further information regarding our components of OCI.

Transactions and resulting balances denominated in a currency other than the USD

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See Note 5 of the Notes to Consolidated Financial Statements of this Form 10-K for information regarding our derivatives.

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Management’s Discussion and Analysis

Credit risk is the risk of loss due to adverse changes in a borrower’s, issuer’s, or counterparty’s ability to meet its financial obligations under contractual or agreed-upon terms.

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See Note 2 of the Notes to Consolidated Financial Statements of this Form 10‑K for additional information about our determination of the allowance for credit losses associated with certain of our brokerage lending activities.

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Management’s Discussion and Analysis

We offer loans to financial advisors for recruiting and retention purposes.

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See Notes 2 and 8 of the Notes to Consolidated Financial Statements of this Form 10-K for additional information about our loans to financial advisors.

Banking activities

Banking operations

Our Bank segment has a substantial loan portfolio.

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For our SBL and residential mortgage loans, we utilize the credit risk rating system used by bank regulators in measuring the credit quality of each homogeneous class of loans.

In evaluating credit risk, we consider trends in loan performance, historical experience through various economic cycles, industry or client

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Management’s Discussion and Analysis

concentrations, the loan portfolio composition and macroeconomic factors (both current and forecasted).

In evaluating credit risk, we consider trends in loan performance, historical experience through various economic cycles, industry or client concentrations, the loan portfolio composition and macroeconomic factors (both current and forecasted).

These factors have a potentially negative impact on loan performance and net charge-offs.

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Our allowance for credit losses methodology is described in Note 2 of the Notes to Consolidated Financial Statements of this Form 10-K.

We segregate our loan portfolio into six loan portfolio segments, which also serve as classes of financing receivables for purposes of credit analysis.

We segregate our bank loan portfolio into six loan portfolio segments, which also serve as classes of financing receivables for purposes of credit analysis.

The risk characteristics relevant to each portfolio segment are as follows.

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This portfolio segment includes CRE construction loans which involve risks such as project budget overruns, performance variables related to the contractor and subcontractors, or the inability to sell the project or secure permanent financing once the project is completed.

As of September 30, 2025, our CRE construction loans represented less than 1% of total loans held for sale and investment.

With respect to commercial construction of residential developments, there is also the risk that the builder has a geographical concentration of developments.

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Loans in this segment are made to businesses that own or finance income-producing real estate across various property sectors.

This portfolio segment may include extensions of credit to companies that engage in real estate development.

This portfolio segment may include extensions of credit to companies that engage in real estate

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Management’s Discussion and Analysis

Repayment of these loans is dependent on income generated from real estate properties or the sale of real estate.

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For non-profit entities, repayment is expected from revenues which may include fundraising proceeds.

These loans are subject to demographic risk, therefore much of the credit assessment of tax-exempt loans is driven by the entity’s revenue base and the general economic

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

These loans are subject to demographic risk, therefore much of the credit assessment of tax-exempt loans is driven by the entity’s revenue base and the general economic environment.

Adverse developments in either of these areas may have a negative effect on the credit quality of loans in this segment.

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Residential mortgage loans (1) 0.01 % 1 0.01 % — — %

Total loans held for sale and investment $ (62) 0.14 % $ (54) 0.12 % $ (26) 0.08 %

Total loans held for investment

$ (41) 0.08 % $ (62) 0.14 % $ (54) 0.12 %

The level of nonperforming assets is another indicator of potential future credit losses.

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Nonperforming assets as a % of Bank segment total assets 0.29 % 0.28 %

(1) Nonperforming loans at September 30, 2024 and 2023 included $89 million and $96 million, respectively, which were current pursuant to their contractual terms.

The increase in nonperforming loans and assets as of September 30, 2024 as compared with September 30, 2023 was primarily due to certain loans that were placed on nonaccrual status with an associated allowance during the year ended September 30, 2024.

(1) Nonperforming loans at September 30, 2025 and 2024 included $109 million and $89 million, respectively, of loans, which were current pursuant to their contractual terms.

See table summarizing nonaccrual loans by portfolio segment in Note 7 of the Notes to Consolidated Financial Statements of this Form 10-K for additional information.

Although our nonperforming assets as a percentage of our Bank segment’s assets remained low as of September 30, 2025, any prolonged period of market deterioration could result in an increase in our nonperforming assets, an increase in our allowance for credit losses and/or an increase in net charge-offs in future periods, although the extent would depend on future developments that are highly uncertain.

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Management’s Discussion and Analysis

See further explanation of our bank loan portfolio segments, allowance for credit losses, and the credit loss provision in Notes 2 and 7 of the Notes to Consolidated Financial Statements of this Form 10-K and “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations - Bank” of this Form 10-K.

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The underwriting policy for the SBL portfolio primarily includes a review of collateral, including LTV, and a review of repayment history.

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Management’s Discussion and Analysis

Corporate and tax-exempt loan portfolios

As of September 30, 2024, our corporate and tax-exempt loans held for investment represented approximately 33% of the Bank segment’s total assets and were comprised of approximately 1,500 borrowers.

As of September 30, 2025, our corporate and tax-exempt loans held for investment represented 33% of the Bank segment’s total assets and were comprised of approximately 1,600 borrowers.

A large portion of these loan portfolios was comprised of loans to larger companies, including public companies, with earnings before interest, taxes, depreciation, and amortization greater than $100 million.

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Our corporate loans included project finance real estate loans, commercial lines of credit, and term loans.

As of September 30, 2024, approximately 67% of our corporate loans were participations in Shared National Credit (“SNC”) or other large, syndicated loans.

As of September 30, 2025, 66% of our corporate loans were participations in Shared National Credit (“SNC”) or other large, syndicated loans.

We are typically either involved in the syndication of the loans at inception or purchase loans in secondary trading markets.

The remainder of our corporate loan portfolio is comprised of smaller participations and direct loans.

There are no subordinated loans or mezzanine financings in the corporate loan portfolio.

Our tax-exempt loans are long-term loans to governmental and non-profit entities.

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All corporate and tax-exempt loans are independently underwritten in accordance with our credit policies, are subject to approval by a loan committee, and credit quality is monitored on an ongoing basis by our lending staff.

In addition, corporate and tax-exempt loans are subject to regulatory review.

Our credit policies include criteria related to LTV limits based upon property type, single borrower loan limits, loan term and structure parameters (including guidance on leverage, debt service coverage ratios, and debt repayment ability), industry concentration limits, secondary sources of repayment, municipality demographics, and other criteria.

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In a limited number of transactions, loans in the portfolio are extended on an unsecured basis.

In addition, corporate and tax-exempt loans are subject to regulatory review.

Residential mortgage loan portfolio

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Substantially all of our residential mortgage loans adhere to strict underwriting parameters pertaining to credit score and credit history, debt-to-income ratio of the borrower, LTV, and combined LTV (including second mortgage/home equity loans).

As of September 30, 2024, approximately 95% of the residential mortgage loan portfolio consisted of owner-occupant borrowers (approximately 74% for their primary residences and 21% for second home residences).

As of September 30, 2025, 95% of the residential mortgage loan portfolio consisted of owner-occupant borrowers (73% for their primary residences and 22% for second home residences).

Approximately 30% of the first lien residential mortgage loans were ARM loans, which receive interest-only payments based on a fixed rate for an initial period of the loan, ranging from the first five to fifteen years depending on the loan, and then become fully amortizing, subject to annual and lifetime interest rate caps.

A significant portion of our originated 15 or 30-year fixed-rate residential mortgage loans are sold in the secondary market.

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Management’s Discussion and Analysis

Risk monitoring process

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Collateral adjustments, as triggered by our monitoring procedures, are made by the borrower as necessary to ensure our loans are adequately secured, resulting in minimizing our credit risk.

Collateral calls have been minimal relative to our SBL portfolio.

We track and review many factors to monitor credit risk in our residential mortgage loan portfolio.

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See Note 7 of the Notes to Consolidated Financial Statements of this Form 10-K for additional information.

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Management’s Discussion and Analysis

The following table presents a summary of delinquent residential mortgage loans, the vast majority of which are first mortgage loans, which are comprised of loans which are two or more payments past due as well as loans in the process of foreclosure.

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Colorado 4% 1%

The occurrence of a natural disaster or severe weather event in any of these states, for example wildfires in California and hurricanes impacting the southeastern U.S., such as hurricanes Helene and Milton which made landfall in September 2024 and October 2024, respectively, could result in additional credit loss provisions and/or charge-offs on our loans in such states and therefore negatively impact our net income and regulatory capital in any given period.

The occurrence of a natural disaster or severe weather event in any of these states, for example wildfires in California and hurricanes in Florida, could result in additional credit loss provisions and/or charge-offs on our loans in such states and therefore negatively impact our net income and regulatory capital in any given period.

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Management’s Discussion and Analysis

Loans where borrowers may be subject to payment increases include ARM loans with terms that initially require payment of interest only.

Payments may increase significantly when the interest-only period ends and the loan principal begins to amortize.

At September 30, 2024 and 2023, these loans totaled $2.96 billion and $2.85 billion, respectively, or approximately 31% and 33% of the residential mortgage portfolio, respectively.

At September 30, 2025 and 2024, these loans totaled $3.04 billion and $2.96 billion, respectively, or 29% and 31% of the residential mortgage portfolio, respectively.

The weighted-average number of years before the remainder of the loans, which were still in their interest-only period at September 30, 2025, begins amortizing is five years.

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Credit policies for our corporate loans include criteria related to single borrower loan limits, loan term and structure parameters (including guidance on leverage, debt service coverage ratios, and debt repayment ability), industry concentration limits, secondary sources of repayment, municipality demographics, and other criteria.

Credit policies for our CRE loans also include LTV limits based upon property type.

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Management’s Discussion and Analysis

To further mitigate risks related to our CRE portfolio, the expected cash flows from all significant new or renewed income-producing property commitments are stress tested to reflect risks related to varying interest rates, vacancy rates, and rental rates.

Credit policies for our CRE loans also include LTV limits based upon property type and, in times of uncertainty, we may originate loans at even tighter thresholds.

CRE loans are also monitored for geographic concentration and total relationship exposure.

Construction CRE loans are monitored on an ongoing basis to ensure projects are on time and within budget as part of our credit risk evaluation.

Higher-risk CRE construction loans receive quarterly reviews by senior bank executives.

We actively monitor economic and other factors that may impact our borrowers and corporate loan portfolio which could impact our provision for credit losses in future periods.

Credit risk in our corporate and tax-exempt loan portfolios is monitored on an individual loan basis for trends in borrower operating performance, payment history, credit ratings, collateral performance, loan covenant compliance, municipality demographics and other factors including industry performance and concentrations, geographic concentrations, and total relationship exposure.

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See Note 2 of the Notes to Consolidated Financial Statements of this Form 10-K for additional information on our allowance for credit losses policies.

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Management’s Discussion and Analysis

Our corporate bank loan portfolio does not contain a significant concentration in any single industry.

The following table details the industry concentrations (top five categories) of our corporate bank loans.

September 30, 2024

The following table details the top industry concentrations of our C&I and CRE loans, which comprise the vast majority of our corporate loan portfolio.

As of September 30, 2025

Loans outstanding as a % of

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total loans held for sale and investment

Subscription lines

Transportation and logistics

Multi-family 12% 5%

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Office real estate 5% 2%

Loan fund 7% 3%

Subscription lines 5% 2%

The Fed’s measures to control inflation, including through increases in short-term interest rates in prior fiscal years resulted in relatively high interest rates throughout most of our fiscal 2024, which coupled with the uncertainty regarding the timing and magnitude of Fed interest rate cuts during fiscal 2024 had a negative impact on borrowers.

Market-wide corporate loan growth has remained low in fiscal 2024, but we believe we are well-positioned to increase lending as new origination activity increases, which may increase provisions for credit losses in future periods.

We continue to closely monitor economic factors, including inflation and interest rates, that may impact our corporate loan portfolio.

Additionally, in our fiscal 2024 we have sold, and may continue to sell in our fiscal 2025, corporate loans as part of our credit risk mitigation strategies.

The effects of recent macroeconomic factors, including changes in business and consumer behavior, have most notably impacted the commercial real estate sector.

Specifically, risk related to office real estate loans has increased due to the increase in remote work, pressure from higher interest rates, uncertainty related to tenant lease renewals, and elevated refinancing risks for loans with near-term maturities, among other issues.

To mitigate risks related to our CRE portfolio, the expected cash flows from all significant new or renewed income-producing property commitments are stress tested to reflect risks related to varying interest rates, vacancy rates, and rental rates.

Additionally, we continue to maintain conservative underwriting standards, including LTV limits that generally range between 65% to 80% at origination, depending upon property type and, in times of uncertainty, we may originate loans at even tighter thresholds.

Currently, LTV at origination is generally at or below 70% for newly-originated CRE loans.

These LTV ratios are subject to change over the life of the loan as property values change.

We seek to mitigate our refinancing risks in our CRE portfolio by subjecting loans with stated maturities in the near term to enhanced monitoring procedures.

For example, approximately 50% of our office real estate loans are scheduled to mature in calendar years 2024 and 2025.

Such office real estate loans with near-term maturities are subject to monthly reporting if a loan reaches our lowest pass rating.

We also remain in frequent contact with the related borrowers well in advance of a loan’s stated maturity to take action on the loan ahead of any credit concerns, including working with the borrower to restructure the loan as necessary and ensuring that our allowances for credit losses are adequate to cover potential losses on the loans.

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Management’s Discussion and Analysis

Our C&I loan portfolio includes facilities to support debt funds and private equity firms, primarily in the form of loans to the funds and subscription lines.

Loan funds are generally secured by diversified pools of senior-secured loans or other credit instruments held in bankruptcy-remote vehicles, with collateral monitored by an independent custodian.

Credit exposure is primarily driven by the credit quality and performance of the underlying collateral for loan funds.

Subscription facilities are typically secured by uncalled capital commitments from a diversified base of investment-grade institutional investors and high-net-worth investors, with repayment sourced from capital calls.

Credit exposure is primarily driven by the credit quality and funding reliability of the limited partners for subscription facilities, rather than the performance of underlying fund investments.

These facilities generally have short-term maturities, are structured to mitigate risk through covenant and collateral arrangements, are subject to concentration limits across key risk factors, and exhibit low historical default rates.

While historical defaults have been low, we maintain an allowance for credit losses that we believe is sufficient based on the risk characteristics of this portfolio.

The collateral securing our CRE loan portfolio is geographically diverse and primarily located throughout the United States.

As of September 30, 2024, the CRE loans with collateral in Pennsylvania, New York, New Jersey, and California represented approximately 8% of total loans held for sale and investment.

No single state individually accounted for more than 3% of the total loans held for sale and investment, while our CRE loans with collateral located in Canada represented less than 2%.

As of September 30, 2024, our highest industry concentrations within our CRE portfolio were multi-family, industrial warehouse, and office real estate which were 5%, 4%, and 3%, respectively, of total loans held for sale and investment.

As a result of the aforementioned pressures on office real estate loans within our CRE portfolio, we are actively monitoring credit metrics across these loans.

As of September 30, 2024, 9% of such loans were considered criticized loans and 5% were nonperforming.

As of September 30, 2024, our allowance for credit losses related to office real estate CRE loans represented 4% of the amortized cost of such loans.

As of September 30, 2024, our CRE portfolio included CRE construction loans of less than 2% of total loans held for sale and investment.

Construction CRE loans are monitored on an ongoing basis to ensure projects are on time and within budget to evaluate credit risk.

Consistent with all CRE loans, construction CRE loans are also monitored for geographic concentration, as well as the total relationship exposure.

Furthermore, CRE construction loans designated as higher risk are reviewed at least quarterly by senior bank executives.

Liquidity risk

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In order to mitigate and control operational risk, we have developed and continue to enhance specific policies and procedures that are designed to identify and manage operational risk at appropriate levels throughout the organization and within such departments as Finance, Operations, Information Technology, Legal, Compliance, Risk Management, and Internal Audit.

These control mechanisms attempt to ensure that operational policies and procedures are being followed and that our various businesses are operating within established corporate policies and limits.

These departments attempt to ensure that operational policies and procedures are being followed and that our various businesses are operating within established corporate policies and limits.

In addition, we have created business continuity plans for critical systems, and redundancies are built into the systems as deemed appropriate.

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The committee establishes risk appetite levels for major operational risks, monitors operating unit performance for adherence to defined risk tolerances, and establishes policies for risk management at the enterprise level.

Periods of severe market volatility can result in a significantly higher level of transactions on specific days, which may present operational challenges from time to time that may result in losses.

These losses can result from, but are not limited to, trade errors, failed transaction settlements, late collateral calls to borrowers and counterparties, or interruptions to our system processing.

We did not incur any significant losses related to such operational challenges during the years ended September 30, 2024, 2023, or 2022.

As more fully described in the discussion of our business technology risks included in various risk factors presented in “Item 1A - Risk Factors” of this Form 10-K, despite our implementation of protective measures and endeavoring to modify them as circumstances warrant, our computer systems, software and networks may be vulnerable to human error, natural disasters, power loss, cyber-attacks and other information security breaches, and other events that could have an impact on the security and stability of our operations.

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

Periods of severe market volatility can result in a significantly higher level of transactions on specific days, which may present operational challenges from time to time that may result in losses.

These losses can result from, but are not limited to, trade errors, failed transaction settlements, late collateral calls to borrowers and counterparties, or interruptions to our system processing.

We did not incur any significant losses related to such operational challenges during the years ended September 30, 2025, 2024, or 2023.

As more fully described in the discussion of our business technology risks included in various risk factors presented in “Item 1A - Risk Factors” and “Item 1C - Cybersecurity” of this Form 10-K, despite our implementation of protective measures and endeavoring to modify them as circumstances warrant, our computer systems, software and networks may be vulnerable to human error, natural disasters, power loss, cyber-attacks and other information security breaches, and other events that could have an impact on the security and stability of our operations.

Model risk refers to the possibility of unintended business outcomes arising from the design, implementation or use of models.

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Our model risk management framework consists primarily of model governance, maintaining the firmwide model inventory, validating and approving models used across the firm, and ongoing monitoring.

Results of validations and issues identified are reported to the Enterprise Risk Management Committee and Risk Committee of the Board of Directors.

Validation issues identified are reported to the Enterprise Risk Management Committee and Risk Committee of the Board of Directors.

Model Risk Management assumes responsibility for the independent and effective challenge of model completeness, integrity and design based on intended use.

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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-K

Item 7. Management’s Discussion and Analysis