What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-02-06 compared with 2025-08-06 · 339 added, 601 removed, 1053 unchanged (47% of the section changed)

20 unchanged sentences

Certain statements made in this Quarterly Report on Form 10-Q may constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995.

Forward-looking statements include information concerning future strategic objectives, business prospects, anticipated savings, financial results (including expenses, earnings, liquidity, cash flow and capital expenditures), industry or market conditions (including changes in interest rates, inflation, and international trade policies), demand for and pricing of our products (including cash sweep and deposit offerings), anticipated timing and benefits of our acquisitions, and our level of success integrating acquired businesses, anticipated results of litigation, regulatory developments, and general economic conditions.

In addition, words such as “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “projects,” and future or conditional verbs such as “will,” “may,” “could,” “should,” and “would,” as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements.

Forward-looking statements include information concerning future strategic objectives, business prospects, anticipated savings, financial results (including expenses, earnings, liquidity, cash flows and capital expenditures), industry or market conditions (including changes in interest rates and inflation), demand for and pricing of our products (including cash sweep and deposit offerings), anticipated timing and benefits of our acquisitions, and our level of success integrating acquired businesses, anticipated results of litigation, regulatory developments, and general economic conditions.

In addition, words such as “believes,” “expects,” “anticipates,” “intends,” “estimates,” “projects,” and future or conditional verbs such as “will,” “may,” “could,” “should,” and “would,” as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements.

Forward-looking statements are not guarantees, and they involve risks, uncertainties, and assumptions.

Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from those expressed in the forward-looking statements.

We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in our filings with the Securities and Exchange Commission (the “SEC”) from time to time, including our most recent Annual Report on Form 10-K, subsequent Quarterly Report on Form 10-Q, and Current Reports on Form 8-K, which are available at www.raymondjames.com and the SEC’s website at www.sec.gov.

We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in our filings with the Securities and Exchange Commission (the “SEC”) from time to time, including our most recent Annual Report on Form 10-K and Current Reports on Form 8-K, which are available at www.raymondjames.com and the SEC’s website at www.sec.gov.

We expressly disclaim any obligation to update any forward-looking statement in the event it later turns out to be inaccurate, whether as a result of new information, future events, or otherwise.

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Summary results of operations

Three months ended June 30, Nine months ended June 30,

$ in millions, except per share amounts 2025 2024 % change 2025 2024 % change

Three months ended December 31,

$ in millions, except per share amounts 2025 2024 % change

Net revenues $ 3,735 $ 3,537 6 %

12 unchanged sentences

$ 2.86 $ 2.93 (2) %

Three months ended June 30, Nine months ended June 30,

Three months ended December 31,

Other selected financial highlights 2025 2024

3 unchanged sentences

20.0 % 21.7 %

Return on common equity 14.3 % 17.8 % 17.1 % 18.2 %

Adjusted return on common equity (1)

Annualized return on common equity (“ROCE”)

18.0 % 20.4 %

Return on tangible common equity (1)

Adjusted annualized ROCE (1)

18.5 % 20.9 %

Adjusted return on tangible common equity (1)

Annualized return on tangible common equity (“ROTCE”) (1)

20.9 % 24.0 %

Compensation ratio 64.8 % 64.7 % 64.6 % 64.7 %

Adjusted compensation ratio (1)

Adjusted annualized ROTCE (1)

21.4 % 24.6 %

Total compensation ratio

65.6 % 64.2 %

Adjusted total compensation ratio (1)

65.4 % 64.0 %

Effective income tax rate

22.7 % 19.9 %

Quarter ended June 30, 2025 compared with the quarter ended June 30, 2024

For our fiscal third quarter of 2025, we generated net revenues of $3.40 billion, an increase of 5% compared with the prior-year quarter, while pre-tax income of $563 million decreased 13% compared with the prior-year quarter.

Our net income available to common shareholders was $435 million and our earnings per diluted share were $2.12, reflecting a decrease from the prior-year quarter levels of 11% and 8%, respectively.

Our annualized return on common equity (“ROCE”) for the quarter was 14.3%, compared with 17.8% for the prior-year quarter, and our annualized return on tangible common equity (“ROTCE”) was 16.7% (1) , compared with 21.2% (1) for the prior-year quarter.

The results for the quarter were adversely impacted by a $58 million increase in expense associated with the settlement of a legal matter related to bond underwritings for a specific issuer sold to institutional investors between 2013 and 2015.

Excluding the impact of $14 million of expenses, net of their tax effect, related to acquisitions completed in prior years, such as compensation expenses related to retention awards and amortization of identifiable intangible assets, our adjusted net income available to common shareholders was $449 million (1) for the three months ended June 30, 2025, a decrease of 12% compared with adjusted net income available to common shareholders for the prior-year quarter.

Quarter ended December 31, 2025 compared with the quarter ended December 31, 2024

For our fiscal first quarter of 2026, we generated net revenues of $3.74 billion, an increase of 6% compared with the prior-year quarter, while pre-tax income of $728 million decreased 3% compared with the prior-year quarter.

Our net income available to common shareholders of $562 million was 6% lower than the prior-year quarter and our earnings per diluted share were $2.79, reflecting a decrease of 2%.

Our ROCE was 18.0%, down from 20.4% for the prior-year quarter, and our ROTCE was 20.9% (1) , compared with 24.0% (1) for the prior-year quarter.

Excluding the impact of $15 million of expenses, net of tax, related to acquisitions, adjusted net income available to common shareholders for the three months ended December 31, 2025 was $577 million (1) , a decrease of 6% compared with adjusted net income available to common shareholders for the prior-year quarter.

Our adjusted earnings per diluted share were $2.86 (1) , a decrease of 2% compared with the prior-year quarter.

Adjusted annualized ROCE for the quarter was 14.8% (1) and adjusted annualized ROTCE was 17.2% (1) compared with adjusted annualized ROCE of 18.4% (1) and adjusted annualized ROTCE of 21.9% (1) for the prior-year quarter.

Adjusted ROCE was 18.5% (1) , compared with 20.9% (1) for the prior-year quarter, and adjusted ROTCE was 21.4% (1) , compared with 24.6% (1) for the prior-year quarter.

The increase in net revenues compared with the prior-year quarter 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 the current-year billing period compared with the prior-year billing period.

The increase in PCG client assets in fee-based accounts resulted from market-driven appreciation and net new assets to the firm since the prior-year period, reflecting the favorable impact of our advisor recruiting and retention.

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

Offsetting these increases, investment banking revenues decreased 36% primarily due to lower merger & acquisition and advisory revenues compared with a strong prior-year quarter.

(1) These are non-GAAP financial measures.

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Management’s Discussion and Analysis

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

The increase in PCG client assets in fee-based accounts was primarily due to market appreciation and net new assets to the firm since the prior-year period.

Investment banking revenues increased 16% compared with the prior-year quarter primarily due to an increase in mergers & acquisition and advisory revenues, as well as increased underwriting revenues, although uncertain market conditions for transaction closings adversely impacted both periods.

Brokerage revenues also increased compared with the prior-year quarter.

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 and lower average RJBDP balances swept to third-party banks compared with the prior-year quarter, which more than offset a favorable impact from growth in average interest-earning assets.

Compensation, commissions and benefits expense increased 5%, resulting from an increase in compensable revenues, annual salary increases, and an increase in compensation costs to support our growth.

Our compensation ratio, or the ratio of compensation, commissions and benefits expense to net revenues, was 64.8%, and excluding acquisition-related compensation expenses, our adjusted compensation ratio was 64.5% (1) , both remaining relatively unchanged compared with the prior-year quarter.

Non-compensation expenses increased 28%, primarily due to higher provisions for legal and regulatory matters as the current quarter included the aforementioned $58 million expense increase related to the settlement of a legal matter.

Non-compensation expenses also increased due to a bank loan provision for credit losses of $15 million for the current quarter compared with a benefit of $10 million for the prior-year quarter, higher communications and information processing expenses resulting from continued investments in technology to benefit our advisors and their clients and to support our growth, and higher investment sub-advisory fees resulting from growth in assets under management in sub-advised programs.

Our effective income tax rate was 22.6% for our fiscal third quarter of 2025, a decrease compared with the 23.6% effective income tax rate for the prior-year quarter, primarily due to higher non-taxable valuation gains on our corporate-owned life insurance policies recognized in the current quarter compared with the prior-year quarter.

As of June 30, 2025, our tier 1 leverage ratio was 13.1% and total capital ratio was 24.2% both well above regulatory capital requirements.

We also continue to have substantial liquidity with $2.35 billion of RJF corporate cash (2) as of June 30, 2025.

During the three months ended June 30, 2025, we repurchased 3.3 million shares of our common stock for $451 million at an average price of $137 per share under the Board of Directors’ common stock repurchase authorization, leaving $749 million available under the authorization as of June 30, 2025.

We believe our capital and liquidity levels allow us to invest in growth across our businesses and continue to be opportunistic in our deployment of capital.

Compensation, commissions and benefits expense increased 8%, primarily due to an increase in compensable revenues in the PCG segment, and an increase in compensation costs to support our growth, including financial advisor recruiting-related expenses.

Our total compensation ratio, or the ratio of compensation, commissions and benefits expense to net revenues, was 65.6% compared with 64.2% for the prior-year quarter.

Excluding acquisition-related compensation expenses, our adjusted total compensation ratio was 65.4% (1) compared with 64.0% (1) for the prior-year quarter.

The increase in the total compensation ratio primarily resulted from changes in our compensable revenue mix, as a decrease in revenues in the Capital Markets segment generally has an adverse impact on our firmwide compensation ratio.

Non-compensation expenses increased 8%, primarily 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 business development expenses primarily related to financial advisor recruiting, and higher investment sub-advisory fee expense resulting from growth in assets under management in sub-advised programs.

Our effective income tax rate was 22.7% for our fiscal first quarter of 2026, an increase from 19.9% for the prior-year quarter, primarily due to a lower benefit related to share-based compensation that settled during the current quarter compared with the prior-year quarter.

We continue to maintain strong levels of liquidity and capital.

As of December 31, 2025, our tier 1 leverage ratio was 12.7% and total capital ratio was 24.3%, both well above regulatory capital requirements.

We also continue to have substantial liquidity with $3.3 billion of RJF corporate cash (2) as of December 31, 2025.

Consistent with our long‑term strategic priorities and disciplined acquisition approach, we intend to deploy capital in connection with our announced acquisitions of GreensLedge and Clark Capital, which are expected to close later in fiscal 2026.

In December 2025, the Board of Directors increased the quarterly cash dividend on common shares by 8% to $0.54 per share and authorized common stock repurchases of up to $2 billion, replacing the previous authorization under which approximately $105 million was remaining as of December 2, 2025.

During the three months ended December 31, 2025, we repurchased 2.5 million shares of our common stock for $400 million at an average price of $162 per share under the Board’s common stock repurchase authorization, leaving $1.9 billion available under such authorization as of December 31, 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.

(1) These are non-GAAP financial measures.

Please see the “Reconciliation of non-GAAP financial measures to GAAP financial measures” in this MD&A for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures and for other important disclosures.

(2) This amount includes cash on hand at the parent, as well as parent cash loaned to RJ&A, which RJ&A has invested on behalf of RJF in cash and cash equivalents or otherwise deployed in its normal business activities.

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

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Management’s Discussion and Analysis

Nine months ended June 30, 2025 compared with the nine months ended June 30, 2024

For the nine months ended June 30, 2025, we generated net revenues of $10.34 billion, an increase of 10% compared with the prior-year period, and pre-tax income of $1.98 billion, an increase of 5%.

Our net income available to common shareholders of $1.53 billion was 4% higher than the prior-year period and our earnings per diluted share were $7.35, reflecting a 7% increase.

Our annualized ROCE was 17.1%, down from 18.2% for the prior-year period, and our annualized ROTCE was 19.9% (1) , compared with 21.8% (1) for the prior-year period.

Excluding the impact of $43 million of expenses, net of their tax effect, related to acquisitions completed in prior years, adjusted net income available to common shareholders for the nine months ended June 30, 2025 was $1.57 billion (1) , an increase of 4% compared with adjusted net income available to common shareholders for the prior-year period.

Our adjusted earnings per diluted share were $7.55 (1) , an increase of 6% compared with the prior-year period.

Adjusted annualized ROCE was 17.5% (1) , compared with 18.8% (1) for the prior-year period, and adjusted annualized ROTCE was 20.5% (1) , compared with 22.5% (1) for the prior-year period.

The increase in net revenues compared with the prior-year period 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 quarterly billing periods compared with the prior-year billing periods.

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 period.

Investment banking revenues also increased significantly compared with the prior-year period primarily due to more favorable market conditions at the beginning of our fiscal 2025.

Brokerage revenues also increased compared with the prior-year period 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 period and, to a lesser extent, 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, and annual salary increases.

Our compensation ratio was 64.6%, and excluding acquisition-related compensation expenses, our adjusted compensation ratio was 64.4% (1) , both remaining relatively unchanged compared with the prior-year period.

Non-compensation expenses increased 18%, primarily due to higher legal and regulatory matters expenses as the current-year period included a net provision expense for legal and regulatory matters, including a $58 million expense increase associated with the aforementioned settlement of a legal matter while the prior-year period 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.

Our effective income tax rate was 22.8% for the nine months ended June 30, 2025, an increase from 22.1% for the prior-year period, primarily due to lower non-taxable valuation gains on our corporate-owned life insurance policies recognized in the current-year period compared with the prior-year period.

During the nine months ended June 30, 2025, we repurchased 5.3 million shares of our common stock for $751 million at an average price of $141 per share under the Board of Directors’ common stock repurchase authorization.

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

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

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The following tables provide a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures.

Three months ended June 30, Nine months ended June 30,

Three months ended December 31,

$ in millions

2025 2024 2025 2024

Net income available to common shareholders $ 562 $ 599

4 unchanged sentences

Professional fees

Amortization of identifiable intangible assets 10 11 31 33

All other acquisition-related expenses

Total “Other” expense 10 11 31 35

Other — Amortization of identifiable intangible assets

Total pre-tax impact of non-GAAP adjustments related to acquisitions 20 20

9 unchanged sentences

$ 2,443 $ 2,264

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Three months ended June 30, Nine months ended June 30,

$ in millions, except per share amounts

2025 2024 2025 2024

Pre-tax margin

3 unchanged sentences

Compensation, commissions and benefits — Acquisition-related retention

0.3 % 0.3 % 0.2 % 0.4 %

Communications and information processing — % — %

Professional fees

— % — % — % — %

Amortization of identifiable intangible assets

0.2 % 0.4 % 0.3 % 0.4 %

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

Total “Other” expense 0.2 % 0.4 % 0.3 % 0.4 %

Other — Amortization of identifiable intangible assets

Total pre-tax impact of non-GAAP adjustments related to acquisitions 0.5 % 0.5 %

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Adjusted total compensation ratio 65.4 % 64.0 %

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Three months ended December 31,

$ in millions, except per share amounts

Diluted earnings per common share $ 2.79 $ 2.86

2 unchanged sentences

Compensation, commissions and benefits — Acquisition-related retention

0.04 0.05 0.12 0.15

Communications and information processing — —

Professional fees 0.01 —

Amortization of identifiable intangible assets 0.04 0.05 0.14 0.16

All other acquisition-related expenses — — — 0.01

Total “Other” expense 0.04 0.05 0.14 0.17

Other — Amortization of identifiable intangible assets

Total pre-tax impact of non-GAAP adjustments related to acquisitions

0.08 0.11 0.27 0.33

Tax effect of non-GAAP adjustments (0.02) (0.02)

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Adjusted diluted earnings per common share $ 2.86 $ 2.93

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Three months ended June 30, Nine months ended June 30,

$ in millions 2025 2024 2025 2024

Average common equity $ 12,458 $ 11,719

4 unchanged sentences

Professional fees 1 1

Amortization of identifiable intangible assets 5 5 16 16

All other acquisition-related expenses — — — 1

Total “Other” expense 5 5 16 17

Other — Amortization of identifiable intangible assets

Total pre-tax impact of non-GAAP adjustments related to acquisitions

11 unchanged sentences

Professional fees 1 1

Amortization of identifiable intangible assets 5 5 16 16

All other acquisition-related expenses — — — 1

Total “Other” expense 5 5 16 17

Other — Amortization of identifiable intangible assets

Total pre-tax impact of non-GAAP adjustments related to acquisitions

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Average common equity is computed by adding the total common equity attributable to RJF as of the date indicated to the prior quarter-end total, and dividing by two, or in the case of average tangible common equity, computed by adding tangible common equity as of the date indicated to the prior quarter-end total, and dividing by two.

Average common equity for the year-to-date period is computed by adding the total common equity attributable to RJF as of each quarter-end date during the indicated year-to-date period to the beginning of year total, and dividing by four, or in the case of average tangible common equity, computed by adding tangible common equity as of each quarter-end date during the indicated year-to-date period to the beginning of year total, and dividing by four.

Adjusted average common equity is computed by adjusting for the impact on average common equity of the non-GAAP adjustments, as applicable for each respective period.

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NET INTEREST ANALYSIS

The Fed funds target rate began our fiscal 2024 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 two additional 25‑basis-point reductions during fiscal 2025 to end the current-year period at a range of 4.25% to 4.50%.

The Fed has indicated that it intends to closely monitor market conditions to determine whether it will consider making additional adjustments to short-term interest rates during the remainder of our fiscal 2025.

The Fed funds target rate began our fiscal 2025 at a range of 4.75% to 5.00%.

The Fed lowered the federal funds target rate by 75 basis points during fiscal 2025 and an additional 50 basis points thus far in fiscal 2026, for a total decrease of 125 basis points since the beginning of fiscal 2025.

These rate cuts brought the target range down to 3.50% to 3.75% at the end of our first fiscal quarter of 2026.

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 during the remainder of our fiscal 2026.

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

The magnitude of this decline will largely depend on the level of short-term interest rates, including any additional rate cuts during the remainder of 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 an indirect favorable impact on certain non-interest-related components of net revenues.

The following table details the Fed’s short-term interest rate activity since the beginning of our fiscal year 2025.

RJF fiscal quarter ended Effective date of interest rate action Increase/(decrease)

RJF fiscal quarter ended Effective date of interest rate action Decrease

in interest rates

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Fed funds target rate

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

September 30, 2024 September 19, 2024 (50) 4.75% - 5.00%

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

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.

Increases in short-term interest rates have historically resulted in an increase in our net earnings, and we expect decreases in short-term interest rates to generally reduce our net earnings, although there may be offsetting favorable impacts.

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.

September 30, 2025 September 18, 2025 (25) 4.00% - 4.25%

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

December 31, 2025 December 11, 2025 (25) 3.50% - 3.75%

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

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 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.

1 unchanged sentence

Additionally, any future changes to regulatory rules or interpretations governing the fees the firm earns on cash sweep balances could also impact the rates we pay to clients on cash balances.

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, 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.

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 providing FDIC-insured deposit products leveraging our bank subsidiaries or through initiatives offered within the RJBDP.

Such programs include our ESP, 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.

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.

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Net interest income and RJBDP fees from third-party banks

Three months ended June 30, Nine months ended June 30,

$ in millions 2025 2024 % change 2025 2024 % change

Three months ended December 31,

$ in millions 2025 2024 % change

Net interest income

4 unchanged sentences

$ 667 $ 673 (1) %

Quarter ended June 30, 2025 compared with the quarter ended June 30, 2024

Combined net interest income and RJBDP fees from third-party banks was $656 million and $672 million for the three months ended June 30, 2025 and 2024, respectively.

The 2% decline compared with the prior-year quarter was primarily due to lower short-term interest rates and lower average RJBDP balances swept to third-party banks, which more than offset favorable impacts from growth in average interest-earning assets and a slight increase in net interest margin.

Nine months ended June 30, 2025 compared with the nine months ended June 30, 2024

Combined net interest income and RJBDP fees from third-party banks was $1.98 billion and $2.06 billion for the nine months ended June 30, 2025 and 2024, respectively.

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

Quarter ended December 31, 2025 compared with the quarter ended December 31, 2024

Combined net interest income and RJBDP fees from third-party banks was $667 million and $673 million for the three months ended December 31, 2025 and 2024, respectively.

The 1% decline compared with the prior-year quarter was primarily due to lower short-term interest rates and lower average RJBDP balances swept to third-party banks, which more than offset favorable impacts from growth in average interest-earning assets in the Bank segment, including significant growth in securities‑based and residential mortgage loans.

RAYMOND JAMES FINANCIAL, INC.

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The following table presents our consolidated average interest-earning asset and interest-bearing liability balances, interest income and expense and the related rates.

Quarter ended June 30, 2025 compared with the quarter ended June 30, 2024

Three months ended June 30,

Quarter ended December 31, 2025 compared with the quarter ended December 31, 2024

Three months ended December 31,

$ in millions Average

63 unchanged sentences

Changes attributable to both volume and rate have been allocated proportionately.

Three months ended June 30,

2025 compared to 2024

Increase/(decrease) due to

$ in millions Volume Rate Total

Interest-earning assets:

Interest income

Bank segment:

Cash and cash equivalents $ 3 $ (16) $ (13)

Available-for-sale securities (10) — (10)

Loans held for sale and investment:

Loans held for investment:

SBL 47 (40) 7

C&I loans 8 (30) (22)

CRE loans 6 (22) (16)

REIT loans — (4) (4)

Residential mortgage loans 8 7 15

Tax-exempt loans (1) — (1)

Loans held for sale — — —

Total loans held for sale and investment 68 (89) (21)

All other interest-earning assets — — —

Interest-earning assets — Bank segment $ 61 $ (105) $ (44)

All other segments:

Cash and cash equivalents $ 9 $ (14) $ (5)

Assets segregated for regulatory purposes and restricted cash — (10) (10)

Trading assets — debt securities (1) — (1)

Brokerage client receivables 1 (7) (6)

All other interest-earning assets 1 (2) (1)

Interest-earning assets — all other segments $ 10 $ (33) $ (23)

Total interest-earning assets $ 71 $ (138) $ (67)

Interest-bearing liabilities:

Interest expense

Bank segment:

Bank deposits:

Money market and savings accounts $ 13 $ (40) $ (27)

Interest-bearing demand deposits 11 (48) (37)

Certificates of deposit (8) (3) (11)

Total bank deposits 16 (91) (75)

FHLB advances and all other interest-bearing liabilities (3) — (3)

Interest-bearing liabilities — Bank segment $ 13 $ (91) $ (78)

All other segments:

Trading liabilities — debt securities $ — $ — $ —

Brokerage client payables 2 (9) (7)

Senior notes payable — — —

All other interest-bearing liabilities (3) (2) (5)

Interest-bearing liabilities — all other segments $ (1) $ (11) $ (12)

Total interest-bearing liabilities $ 12 $ (102) $ (90)

Change in firmwide net interest income $ 59 $ (36) $ 23

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Nine months ended June 30, 2025 compared with the nine months ended June 30, 2024

Nine months ended June 30,

$ in millions Average

balance Interest Annualized

Interest-earning assets:

Bank segment:

Cash and cash equivalents $ 5,960 $ 197 4.40 % $ 5,699 $ 232 5.40 %

Available-for-sale securities 8,363 142 2.27 % 10,069 167 2.22 %

Loans held for sale and investment:

Loans held for investment:

SBL 17,229 806 6.17 % 14,721 798 7.12 %

C&I loans 10,305 518 6.64 % 10,265 597 7.64 %

CRE loans 7,668 385 6.62 % 7,365 423 7.55 %

REIT loans 1,692 91 7.13 % 1,704 100 7.71 %

Residential mortgage loans 9,733 285 3.90 % 8,972 240 3.57 %

Tax-exempt loans (3)

1,283 26 3.37 % 1,443 29 3.28 %

Loans held for sale 232 12 6.96 % 180 10 8.15 %

Total loans held for sale and investment 48,142 2,123 5.85 % 44,650 2,197 6.50 %

All other interest-earning assets 237 10 5.39 % 235 11 6.10 %

Interest-earning assets — Bank segment $ 62,702 $ 2,472 5.23 % $ 60,653 $ 2,607 5.68 %

All other segments:

Cash and cash equivalents $ 4,076 $ 134 4.40 % $ 3,292 $ 149 6.04 %

Assets segregated for regulatory purposes and restricted cash 3,571 114 4.24 % 3,634 140 5.15 %

Trading assets — debt securities 1,387 57 5.47 % 1,251 54 5.80 %

Brokerage client receivables 2,402 128 7.15 % 2,266 140 8.22 %

All other interest-earning assets 2,531 75 3.88 % 2,265 69 3.89 %

Interest-earning assets — all other segments $ 13,967 $ 508 4.84 % $ 12,708 $ 552 5.77 %

Total interest-earning assets $ 76,669 $ 2,980 5.16 % $ 73,361 $ 3,159 5.70 %

Interest-bearing liabilities:

Bank segment:

Bank deposits:

Money market and savings accounts $ 33,088 $ 458 1.85 % $ 31,459 $ 497 2.11 %

Interest-bearing demand deposits 21,013 650 4.14 % 20,206 747 4.94 %

Certificates of deposit 2,094 71 4.52 % 2,642 92 4.64 %

Total bank deposits (4)

56,195 1,179 2.81 % 54,307 1,336 3.29 %

FHLB advances and all other interest-bearing liabilities 1,001 20 2.72 % 1,201 26 2.92 %

Interest-bearing liabilities — Bank segment $ 57,196 $ 1,199 2.81 % $ 55,508 $ 1,362 3.28 %

All other segments:

Trading liabilities — debt securities $ 834 $ 32 5.17 % $ 806 $ 33 5.46 %

Brokerage client payables 4,794 52 1.44 % 4,688 63 1.78 %

Senior notes payable 2,040 69 4.50 % 2,039 69 4.50 %

All other interest-bearing liabilities (4)

1,182 32 3.62 % 1,134 34 4.00 %

Interest-bearing liabilities — all other segments $ 8,850 $ 185 2.79 % $ 8,667 $ 199 3.05 %

Total interest-bearing liabilities $ 66,046 $ 1,384 2.81 % $ 64,175 $ 1,561 3.25 %

Firmwide net interest income $ 1,596 $ 1,598

Net interest margin (net yield on interest-earning assets)

Bank segment 2.67 % 2.68 %

Firmwide 2.78 % 2.91 %

(1) Loans are presented net of unamortized discounts, unearned income, deferred loan fees and costs, and charge-offs.

(2) Nonaccrual loans are included in the average loan balances.

Any payments received for corporate nonaccrual loans are applied entirely to principal.

Interest income on residential mortgage nonaccrual loans is recognized on a cash basis.

(3) The average rate on tax-exempt loans in the preceding table is presented on a taxable-equivalent basis utilizing the applicable federal statutory rates for each of the years presented.

(4) The average balance, interest expense, and average rate for “Total bank deposits” included amounts associated with affiliate deposits.

Such amounts are eliminated in consolidation and are offset in “All other interest-bearing liabilities” under “All other segments.”

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Increases and decreases in interest income and interest expense result from changes in average balances (volume) of interest-earning assets and interest-bearing liabilities, as well as changes in average interest rates.

The following table shows the effect that these factors had on the interest earned on our interest-earning assets and the interest incurred on our interest-bearing liabilities.

The effect of changes in volume is determined by multiplying the change in volume by the previous period’s average yield/cost.

Similarly, the effect of rate changes is calculated by multiplying the change in average yield/cost by the previous period’s volume.

Changes attributable to both volume and rate have been allocated proportionately.

Nine months ended June 30,

Three months ended December 31,

2025 compared to 2024

50 unchanged sentences

Operating results

Three months ended June 30, Nine months ended June 30,

$ in millions 2025 2024 % change 2025 2024 % change

Three months ended December 31,

$ in millions 2025 2024 % change

Asset management and related administrative fees

2 unchanged sentences

Mutual and other fund products

146 142 3 % 450 419 7 %

Insurance and annuity products

129 130 (1) % 364 382 (5) %

Equities, ETFs and fixed income products

145 137 6 % 458 397 15 %

Total brokerage revenues 470 433 9 %

Account and service fees:

Mutual fund and annuity service fees

126 118 7 % 382 339 13 %

Mutual fund and other investment products

Bank segment 188 187 1 %

1 unchanged sentence

Client account and other fees

72 66 9 % 208 195 7 %

Total account and service fees 502 527 (5) %

Investment banking

9 10 (10) % 26 29 (10) %

Interest income

114 126 (10) %

5 13 (62) % 16 23 (30) %

Total revenues 2,791 2,575 8 %

3 unchanged sentences

Non-interest expenses:

Financial advisor compensation and benefits

Financial advisor compensation:

Commissions, benefits and other compensation

1,512 1,325 14 %

Recruiting and retention-related compensation 107 88 22 %

Total financial advisor compensation

1,619 1,413 15 %

Administrative compensation and benefits 432 418 3 %

2 unchanged sentences

Non-compensation expenses

Communications and information processing

119 106 12 % 347 303 15 %

Occupancy and equipment

58 57 2 % 169 168 1 %

Business development

48 49 (2) % 130 126 3 %

Professional fees

16 16 — % 47 47 — %

33 31 6 % 92 66 39 %

Total non-compensation expenses

274 259 6 % 785 710 11 %

Total non-interest expenses 2,329 2,086 12 %

Pre-tax income $ 439 $ 462 (5) %

(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-period segment results have not been conformed to the current-period presentation.

RAYMOND JAMES FINANCIAL, INC.

3 unchanged sentences

PCG client asset balances

$ in billions June 30,

2025 March 31,

2025 December 31,

$ in billions December 31,

2025 September 30,

2025 June 30,

2025 March 31,

2025 December 31,

Assets under administration (“AUA”)

6 unchanged sentences

These assets are included in our financial assets under management as disclosed in the “Selected key metrics” section of our “Management’s Discussion and Analysis - Results of Operations - Asset Management.”

As of June 30, 2025, March 31, 2025, and June 30, 2024 PCG AUA included assets associated with firms affiliated with us through our RIA and custody services (“RCS”) division of $201.6 billion, $185.6 billion, and $167.2 billion, respectively, of which $173.9 billion, $158.5 billion, and $140.6 billion, respectively, were assets in fee-based accounts.

As of December 31, 2025, September 30, 2025, and December 31, 2024 PCG AUA included assets associated with firms affiliated with us through our RIA and custody services (“RCS”) division of $224.6 billion, $217.3 billion, and $188.2 billion, respectively, of which $195.0 billion, $188.0 billion, and $160.2 billion, respectively, were assets in fee-based accounts.

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.

2 unchanged sentences

Domestic PCG net new assets

Three months ended June 30, Nine months ended June 30,

Three months ended December 31,

$ in millions 2025 2024

2 unchanged sentences

Domestic PCG net new assets growth - annualized (2)

3.4 % 5.2 % 3.3 % 5.8 %

(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 asset growth - annualized 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 June 30, 2025 increased 7% and 8%, respectively, compared with March 31, 2025, and increased 11% and 15%, respectively, compared with June 30, 2024 due to market-driven appreciation and net new assets, reflecting the favorable impact of our advisor recruiting and retention.

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 directly impacted by market movements.

PCG AUA and PCG assets in fee-based accounts as of December 31, 2025 each increased 3% compared with September 30, 2025 and increased 15% and 19%, respectively, compared with December 31, 2024 due to market-driven appreciation and net new assets, reflecting the favorable impact of our advisor recruiting and retention.

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

1 unchanged sentence

Administrative services for such accounts (e.g., record-keeping) are generally performed by our Asset Management segment and, as a result, a portion of the related revenue is shared with the Asset Management segment.

PCG assets in fee-based accounts continue 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 directly impacted by market movements.

We also offer our clients fee-based accounts that are invested in “Managed programs” overseen by AMS, which is part of our Asset Management segment.

9 unchanged sentences

Clients’ domestic cash sweep balances and ESP balances

$ in millions June 30,

2025 March 31,

2025 December 31,

$ in millions December 31,

2025 September 30,

2025 June 30,

2025 March 31,

2025 December 31,

Bank segment $ 27,819 $ 26,555 $ 26,635 $ 25,783 $ 23,946

7 unchanged sentences

$ 58,078 $ 56,353 $ 55,180 $ 57,759 $ 59,736

Three months ended June 30, Nine months ended June 30,

2025 2024 2025 2024

Three months ended December 31,

Average yield on RJBDP - third-party banks

9 unchanged sentences

The “Average yield on RJBDP - third-party banks” in the preceding table is computed by dividing annualized 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 for the three and nine months ended June 30, 2025 decreased from the corresponding prior-year periods largely as a result of decreases in the Fed’s short-term benchmark interest rate.

For the nine-month period, the decrease also reflected the impact of growth in RJBDP balances offering enhanced rates to clients which reduced the yield earned from third-party banks on such balances.

The average yield on RJBDP - third-party banks for the three months ended December 31, 2025 decreased from the prior-year quarter largely as a result of decreases in the Fed’s short-term benchmark interest rate.

See “Management’s Discussion and Analysis - Net interest analysis” for further information.

Total clients’ domestic cash sweep and ESP balances decreased 4% compared with March 31, 2025, primarily due to seasonal declines related to client tax payments as well as quarterly asset management fee billings.

Total clients’ domestic cash sweep and ESP balances increased 3% compared with September 30, 2025, primarily due to increases in RJBDP balances, partially offset by a decline in ESP balances.

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.

Quarter ended June 30, 2025 compared with the quarter ended June 30, 2024

Net revenues of $2.49 billion increased 3%, while pre-tax income of $411 million decreased 7%.

Quarter ended December 31, 2025 compared with the quarter ended December 31, 2024

Net revenues of $2.77 billion increased 9%, while pre-tax income of $439 million decreased 5%, primarily due to the impact of lower interest-related revenues, which have little associated direct compensation, and costs associated with our continued investments in growth.

Asset management and related administrative fees increased $217 million, or 15%, primarily due to higher assets in fee-based accounts at the beginning of the current quarter compared with the prior-year quarter resulting from market-driven appreciation and net new assets, due to the favorable impact of our advisor recruiting and retention.

Brokerage revenues increased $11 million, or 3%, primarily due to higher client activity in the current quarter.

Brokerage revenues increased $37 million, or 9%, primarily due to higher client activity in the current quarter, as well as higher trailing revenues primarily due to higher asset values.

RAYMOND JAMES FINANCIAL, INC.

1 unchanged sentence

Management’s Discussion and Analysis

Account and service fees decreased $30 million, or 6%, primarily due to a decrease in RJBDP fees.

RJBDP fees paid to PCG from third-party banks and our Bank segment decreased despite an increase in average RJBDP balances, primarily driven by a reduction 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 to our Bank segment.

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

Compensation-related expenses increased $87 million, or 5%, 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 $15 million, or 6%, primarily due to higher communications and information processing expenses, largely due to investments in technology to support our growth.

Nine months ended June 30, 2025 compared with the nine months ended June 30, 2024

Net revenues of $7.52 billion increased 8%, while pre-tax income of $1.3 billion decreased 2%.

Asset management and related administrative fees increased $557 million, or 15%, primarily due to higher assets in fee-based accounts at the beginning of each of the current-year billing periods compared with the prior-year periods resulting from market-driven appreciation and net new assets, due to the favorable impact of our advisor recruiting and retention.

Brokerage revenues increased $74 million, or 6%, primarily due to higher client activity in the current-year period.

Account and service fees decreased $85 million, or 5%, primarily due to a decrease in RJBDP fees.

RJBDP fees paid to PCG from third-party banks and our Bank segment decreased primarily due to a decrease in the average RJBDP third-party bank yield.

These decreases were partially offset by higher average RJBDP balances.

Account and service fees decreased $25 million, or 5%, primarily due to a decrease in RJBDP fees paid to PCG from third-party banks which reflects the impacts of lower average balances swept to such banks and the aforementioned reduction in the average RJBDP third-party bank yield.

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 $484 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 and annual salary increases.

Non-compensation expenses increased $75 million, or 11%, primarily due to higher communications and information processing expenses, largely due to investments in technology to support our growth, and higher expenses related to legal and regulatory matters as the prior-year period reflected a net reserve release which did not reoccur in the current-year period.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Compensation-related expenses increased $220 million, or 12%, primarily due to higher commissions 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 financial advisor recruiting-related expenses.

Non-compensation expenses increased $23 million, or 9%, primarily due to higher expenses to support our growth, including investments in technology to benefit our advisors and their clients and higher financial advisor recruiting-related expenses.

RESULTS OF OPERATIONS – CAPITAL MARKETS

1 unchanged sentence

Operating results

Three months ended June 30, Nine months ended June 30,

$ in millions 2025 2024 % change 2025 2024 % change

Three months ended December 31,

$ in millions 2025 2024 % change

Brokerage revenues:

2 unchanged sentences

Total brokerage revenues

138 121 14 % 425 383 11 %

Investment banking:

2 unchanged sentences

Equity underwriting

38 33 15 % 104 82 27 %

Debt underwriting

60 49 22 % 163 116 41 %

Total investment banking 200 317 (37) %

Interest income

27 32 (16) % 84 81 4 %

Affordable housing investments business revenues 31 29 7 %

4 4 — % 13 12 8 %

Total revenues 404 506 (20) %

6 unchanged sentences

Non-compensation expenses

Communications and information processing

32 28 14 % 92 85 8 %

Occupancy and equipment

12 12 — % 35 35 — %

Business development

19 14 36 % 56 45 24 %

Professional fees

16 17 (6) % 36 42 (14) %

94 30 213 % 157 89 76 %

Total non-compensation expenses

173 101 71 % 376 296 27 %

Total non-interest expenses 371 406 (9) %

Pre-tax income/(loss)

$ (54) $ (14) (286) % $ 56 $ (28) NM

Quarter ended June 30, 2025 compared with the quarter ended June 30, 2024

Net revenues of $381 million increased 15%, while the segment pre-tax loss was $54 million, compared with a pre-tax loss of $14 million for the prior-year quarter.

Investment banking revenues increased $30 million, or 17%, due to increases in mergers & acquisition and advisory revenues, debt underwriting revenues and, to a lesser extent, equity underwriting revenues.

Brokerage revenues increased $17 million, or 14%, due to higher client activity in fixed income and equity products.

Compensation-related expenses increased $19 million, or 8%, primarily due to the increase in revenues.

Non-compensation expenses increased $72 million, or 71%, primarily due to the aforementioned $58 million reserve increase in the current quarter associated with the settlement of a legal matter, as well as higher business development expenses and communications and information processing expenses largely to support our growth.

Pre-tax income

$ 9 $ 74 (88) %

Quarter ended December 31, 2025 compared with the quarter ended December 31, 2024

Net revenues of $380 million decreased 21% and pre-tax income of $9 million decreased 88% compared with the prior-year quarter.

Investment banking revenues decreased $117 million, or 37%, primarily due to lower merger & acquisition and advisory revenues, reflecting fewer closings in the current quarter, compared with a strong prior-year quarter.

Brokerage revenues increased $15 million, or 12%, primarily due to higher client activity in fixed income and equity products resulting from more favorable market conditions in the current quarter.

Compensation-related expenses decreased $40 million, or 13%, primarily due to the decrease in revenues.

RAYMOND JAMES FINANCIAL, INC.

1 unchanged sentence

Management’s Discussion and Analysis

Nine months ended June 30, 2025 compared with the nine months ended June 30, 2024

Net revenues of $1.26 billion increased 27% and pre-tax income was $56 million, compared with a pre-tax loss of $28 million for the prior-year period.

Investment banking revenues increased $213 million, or 41%, primarily due to more favorable market conditions and larger transactions during the current-year period.

Brokerage revenues increased $42 million, or 11%, primarily due to an increase in both fixed income and equity securities.

Compensation-related expenses increased $104 million, or 14%, primarily due to the increase in revenues.

Non-compensation expenses increased $80 million, or 27%, primarily due to the aforementioned $58 million reserve increase in the current quarter, as well as higher business development expenses and communications and information processing expenses largely to support our growth, partially offset by lower professional fees.

RESULTS OF OPERATIONS – ASSET MANAGEMENT

1 unchanged sentence

Operating results

Three months ended June 30, Nine months ended June 30,

$ in millions 2025 2024 % change 2025 2024 % change

Three months ended December 31,

$ in millions 2025 2024 % change

Asset management and related administrative fees:

4 unchanged sentences

Account and service fees

5 5 — % 17 16 6 %

All other 4 6 (33) %

2 unchanged sentences

Compensation, commissions and benefits

54 56 (4) % 169 167 1 %

Non-compensation expenses

Communications and information processing

20 16 25 % 56 47 19 %

Investment sub-advisory fees

54 47 15 % 159 129 23 %

38 34 12 % 119 104 14 %

Total non-compensation expenses 112 97 15 % 334 280 19 %

Total non-interest expenses 183 169 8 %

Pre-tax income $ 143 $ 125 14 %

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Selected key metrics

8 unchanged sentences

Approximately 75% of these fees are based on balances as of the beginning of the quarter (primarily in AMS), approximately 10% are based on balances as of the end of the quarter, and approximately 15% are based on average daily balances throughout the quarter.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Financial assets under management

$ in billions June 30,

2025 March 31,

2025 December 31,

$ in billions December 31,

2025 September 30,

2025 June 30,

2025 March 31,

2025 December 31,

$ 214.7 $ 209.2 $ 198.0 $ 183.3 $ 181.9

9 unchanged sentences

Activity (including activity in assets managed for affiliated entities)

Three months ended June 30, Nine months ended June 30,

Three months ended December 31,

$ in billions 2025 2024

Financial assets under management at beginning of period $ 290.9 $ 259.5

Raymond James Investment Management:

— (1.5) (0.6) (3.7)

Transfer of Charles Stanley Asset Management (1)

Total Raymond James Investment Management

— (1.5) 0.8 (3.7)

Raymond James Investment Management - net inflows/(outflows)

AMS - net inflows 5.1 1.1

Net market appreciation in asset values

16.6 0.2 11.4 30.4

Net market appreciation/(depreciation) in asset values

Financial assets under management at end of period $ 296.9 $ 258.6

(1) The transfer was effective as of October 1, 2024.

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.

1 unchanged sentence

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.

As of June 30, 2025

As of December 31, 2025

$ in billions AUM Average fee rate

7 unchanged sentences

Administrative fees associated with these programs are predominantly based on balances at the beginning of the quarter.

$ in billions June 30,

2025 March 31,

2025 December 31,

$ in billions December 31,

2025 September 30,

2025 June 30,

2025 March 31,

2025 December 31,

Total assets $ 603.5 $ 586.6 $ 547.8 $ 505.3 $ 509.8

The increase in these assets compared with the preceding and prior-year quarters was primarily due to market-driven appreciation and net new assets, reflecting the favorable impact of our advisor recruiting and retention.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Raymond James Trust

1 unchanged sentence

(including those managed for affiliated entities).

$ in billions June 30,

2025 March 31,

2025 December 31,

$ in billions December 31,

2025 September 30,

2025 June 30,

2025 March 31,

2025 December 31,

Total assets $ 12.4 $ 11.8 $ 11.2 $ 10.6 $ 10.7

Fees earned on trust services are primarily reported within “Asset management and related administrative fees” on the Condensed Consolidated Statements of Income and Comprehensive Income.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Quarter ended June 30, 2025 compared with the quarter ended June 30, 2024

Net revenues of $291 million increased 10% and pre-tax income of $125 million increased 12%.

Asset management and related administrative fees increased $26 million, or 10%, 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.

Non-compensation expenses increased $15 million, or 15%, 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.

Nine months ended June 30, 2025 compared with the nine months ended June 30, 2024

Quarter ended December 31, 2025 compared with the quarter ended December 31, 2024

Net revenues of $326 million increased 11% and pre-tax income of $143 million increased 14%.

Asset management and related administrative fees increased $120 million, or 17%, 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.

Non-compensation expenses increased $54 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 communications and information processing expenses.

Asset management and related administrative fees increased $34 million, or 12%, 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 into PCG fee-based accounts.

Non-compensation expenses increased $13 million, or 12%, largely due to higher investment sub-advisory fee expense resulting from the increase in assets under management in sub-advised programs, as well as higher communications and information processing expenses due to investments in our growth.

RESULTS OF OPERATIONS – BANK

1 unchanged sentence

Operating results

Three months ended June 30, Nine months ended June 30,

$ in millions 2025 2024 % change 2025 2024 % change

Three months ended December 31,

$ in millions 2025 2024 % change

Interest income $ 831 $ 847 (2) %

5 unchanged sentences

Compensation and benefits

47 45 4 % 138 136 1 %

Non-compensation expenses:

Bank loan provision for credit losses

15 (10) NM 31 23 35 %

Bank loan benefit for credit losses

RJBDP fees to PCG

193 198 (3) % 563 627 (10) %

80 70 14 % 227 215 6 %

Total non-compensation expenses 266 261 2 %

1 unchanged sentence

Pre-tax income $ 173 $ 118 47 %

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Quarter ended June 30, 2025 compared with the quarter ended June 30, 2024

Quarter ended December 31, 2025 compared with the quarter ended December 31, 2024

Net revenues of $487 million increased 15% and pre-tax income of $173 million increased 47%.

Net interest income increased $34 million, or 8%, primarily due to the impact of higher average interest-earning assets, particularly securities-based loans, partially offset by the impact of the decrease in short-term interest rates.

Net interest income increased $56 million, or 14%, primarily due to the impacts of higher average interest-earning assets, particularly securities-based and residential mortgage loans, and lower funding costs driven by the decline in short-term interest rates and a favorable mix shift in deposits.

The Bank segment net interest margin increased to 2.81% from 2.60% for the prior-year quarter.

The bank loan provision for credit losses was $15 million for the current quarter compared with a benefit of $10 million for the prior-year quarter.

The bank loan provision for credit losses for the current quarter primarily reflected the impacts of a weaker economic outlook for the C&I loan portfolio, loan downgrades, and specific reserves.

The bank loan benefit for credit losses for the prior-year quarter primarily reflected the positive impacts of net loan repayments, sales, and improved loan grades on the C&I loan portfolio, and an improvement in forecasted home prices on the residential mortgage portfolio, partially offset by the impact of loan downgrades in our CRE portfolio.

Non-compensation expenses, excluding the bank loan provision for credit losses, increased $5 million, or 2%, primarily due to higher expenses related to our growth, partially offset by a decrease of $5 million, or 3%, in RJBDP fees paid to PCG.

These Bank segment fees and the related revenues earned by the PCG segment are eliminated in consolidation (see “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Private Client Group” for further information about these servicing fees).

Nine months ended June 30, 2025 compared with the nine months ended June 30, 2024

Net revenues of $1.32 billion increased 3% and pre-tax income of $358 million increased 27%.

Net interest income increased $28 million, or 2%, 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 decreased slightly to 2.67% from 2.68% for the prior-year period.

The bank loan provision for credit losses was $31 million for the current-year period, compared with $23 million for the prior-year period.

The bank loan provision for credit losses for the current-year period primarily reflected the impacts of loan downgrades, charge-offs in our C&I and CRE loan portfolios, and specific reserves.

The bank loan provision for credit losses for the prior-year period 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.

Non-compensation expenses, excluding the bank loan provision for credit losses, decreased $52 million, or 6%, primarily due to a decrease of $64 million, or 10%, in RJBDP fees paid to PCG, partially offset by higher expenses related to our growth.

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

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

The bank loan benefit for credit losses was $3 million for the current quarter.

The bank loan benefit for credit losses for the current quarter primarily reflected the impact of net paydowns of higher-risk loans in our corporate loan portfolio and an improved economic outlook for the C&I loan portfolio, partially offset by specific reserves on certain loans.

The bank loan provision for credit losses for the prior-year quarter primarily reflected the impacts of an improved macroeconomic forecast and loan repayments on criticized loans, offset by provisions on new loans, loan downgrades, primarily in the CRE and C&I loan portfolios, and charge-offs of certain loans.

RESULTS OF OPERATIONS – OTHER

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” and “Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our 2024 Form 10-K.

For an overview of our Other segment operations, as well as a description of the key factors impacting our Other segment results of operations, refer to the information presented in “Item 1 - Business” and “Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our 2025 Form 10-K.

Operating results

Three months ended June 30, Nine months ended June 30,

$ in millions 2025 2024 % change 2025 2024 % change

Three months ended December 31,

$ in millions 2025 2024 % change

Interest income

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Interest expense (44) (25) 76 %

Net revenues 9 28 (68) % 34 71 (52) %

Net revenues (1) 12 NM

Non-interest expenses:

Compensation and benefits 31 36 (14) %

All other 15 9 67 % 28 (7) NM

All other 4 6 (33) %

Total non-interest expenses 35 42 (17) %

$ (42) $ (10) (320) % $ (106) $ — NM

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

Quarter ended June 30, 2025 compared with the quarter ended June 30, 2024

$ (36) $ (30) (20) %

Quarter ended December 31, 2025 compared with the quarter ended December 31, 2024

Pre-tax loss was $36 million, compared with a pre-tax loss of $30 million for the prior-year quarter.

Net revenues decreased $19 million due to a decrease in interest income which reflected the impact of a decrease in short-term interest rates and, to a lesser extent, lower gains from certain investments in the current-year period.

Non-interest expenses increased $13 million, primarily due to higher compensation costs, professional fees, and communications and information processing expenses in the current-year period.

Nine months ended June 30, 2025 compared with the nine months ended June 30, 2024

Pre-tax loss was $106 million, compared with breakeven results for the prior-year period.

Net revenues decreased $37 million due to a decrease in interest income which reflected the impact of a decrease in short-term interest rates.

Non-interest expenses increased $69 million, or 97%, as the prior-year period reflected a net reserve release related to legal and regulatory matters which did not reoccur in the current-year period, as well as higher compensation costs, professional fees, and communications and information processing expenses in the current-year period partially due to investments in our growth.

Net revenues decreased $13 million primarily due to the impact of incremental interest expense from the $1.5 billion of senior notes issued in September 2025, net of interest income on the reinvested proceeds, as well as the impact of lower short-term interest rates on our corporate cash balances.

Non-interest expenses decreased $7 million, or 17%, primarily due to lower compensation-related expenses in the current quarter.

RAYMOND JAMES FINANCIAL, INC.

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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 $84.82 billion as of June 30, 2025 were $1.8 billion, or 2%, higher than our total assets as of September 30, 2024.

Banks loans, net increased $3.8 billion, primarily due to continued growth in securities-based loans.

Assets segregated for regulatory purposes and restricted cash balances increased $420 million primarily due to an increase in client cash balances in our broker-dealer subsidiaries.

Brokerage client receivables, net, collateralized agreements, and loans to financial advisors, net also increased $206 million, $192 million, and $174 million, respectively.

These increases were partially offset by a $1.8 billion decrease in cash and cash equivalents primarily due to net investments in bank loans, common stock repurchases, and dividends paid on our common stock during the period, partially offset by net income, an increase in bank deposits, and net maturities of available-for-sale securities during the period.

The net maturities of available-for-sale securities also contributed to a $1.1 billion decrease in our total assets.

As of June 30, 2025, our total liabilities of $72.55 billion were $1.2 billion, or 2%, higher than our total liabilities as of September 30, 2024, largely due to a $1.2 billion increase in bank deposits.

Brokerage client payables also increased $390 million due to an increase in client cash balances.

These increases were partially offset by a $200 million decrease in other borrowings due to the maturity and repayment of certain FHLB borrowings.

Total assets of $88.76 billion as of December 31, 2025 were $530 million, or 1%, higher than our total assets as of September 30, 2025.

Bank loans, net increased $1.9 billion, primarily due to continued growth in securities-based and residential mortgage loans, partially offset by a $1.5 billion decrease in cash and cash equivalents (see Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources - Cash flows for more information).

As of December 31, 2025, our total liabilities of $76.19 billion were $460 million, or 1%, higher than our total liabilities as of September 30, 2025, largely due to a $1.3 billion increase in bank deposits.

This increase was partially offset by a $658 million decrease in accrued compensation, commissions and benefits, primarily due to the annual payment in our fiscal first quarter of prior-year bonuses and certain benefits.

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 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.

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These actions include reallocating client cash balances in the RJBDP from third-party banks to our bank subsidiaries thereby bringing those deposits onto our Condensed 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 and, from time to time, offering enhanced rates on certain RJBDP deposits.

We also have various mechanisms to support deposit growth through modifications to existing products and programs, the issuance of additional certificates of deposit, and deposit activity generated through other deposit gathering capabilities in our Bank segment.

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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$ in millions

June 30, 2025 September 30, 2024

December 31, 2025 September 30, 2025

Common equity tier 1 capital/Tier 1 capital

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Tier 2 capital

Qualifying subordinated debt 79 99

Qualifying allowances for credit losses 521 531

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$ in millions

June 30, 2025 September 30, 2024

December 31, 2025 September 30, 2025

Credit 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 $9.20 billion at June 30, 2025 decreased $1.80 billion compared with September 30, 2024.

The decrease in cash and cash equivalents primarily resulted from net investments in bank loans, common stock repurchases, dividends paid on our common stock, the repayment of certain FHLB borrowings, and net loans provided to financial advisors during the period.

These decreases were partially offset by net income, net maturities of available-for-sale securities, and an increase in bank deposits during the period.

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 $9.89 billion at December 31, 2025 decreased $1.5 billion compared with September 30, 2025.

The decrease in cash and cash equivalents primarily resulted from net investments in bank loans, the annual payment in our fiscal first quarter of prior-year bonuses and certain benefits, common stock repurchases, net loans provided to financial advisors, and dividends paid on our common stock.

These decreases were partially offset by an increase in bank deposits, net income, and net maturities of available-for-sale securities during the period.

Sources of liquidity

Approximately $2.35 billion of our total June 30, 2025 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.

As of June 30, 2025, RJF had loaned $1.56 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.

RJF corporate cash of $3.31 billion as of December 31, 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 December 31, 2025, RJF had loaned $1.23 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 or otherwise deployed in its normal business activities.

The following table presents our holdings of cash and cash equivalents.

$ in millions June 30, 2025

$ in millions December 31, 2025

TriState Capital Bank 2,899

Raymond James Bank 1,749

Raymond James Capital Services, LLC 144

Raymond James Wealth Management Limited (1)

Raymond James Ltd.

("RJ Ltd.") 573

Raymond James Wealth Management Limited ("RJWM") 142

Raymond James Trust Company of New Hampshire 137

Raymond James Financial Services, Inc.

Raymond James Capital Services, LLC 130

Raymond James Investment Management 116

Raymond James Financial Services, Inc.

Other subsidiaries 342

Total cash and cash equivalents $ 9,890

(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 $299 million as of June 30, 2025.

The portion of this total that was available on demand without restrictions, which amounted to $267 million as of June 30, 2025, is reflected in the RJF cash balance and excluded from Raymond James Bank’s cash balance in the preceding table.

RJF maintained depository accounts at Raymond James Bank and TriState Capital Bank totaling $380 million as of December 31, 2025.

The portion of this total that was available on demand without restrictions, which amounted to $348 million as of December 31, 2025, is reflected in the RJF cash balance and excluded from Raymond James Bank’s cash balance in the preceding table.

A large portion of the cash and cash equivalents balances at our non-U.S.

subsidiaries, including RJ Ltd.

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

and RJWM, was held to meet regulatory requirements and was not available for use by the parent as of December 31, 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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In addition, covenants in RJ&A’s committed financing arrangements require its net capital to be a minimum of 10% of aggregate debit items.

At June 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.

At December 31, 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.

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

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.

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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 June 30, 2025, RJF and RJ&A had the ability to borrow under our $750 million Credit Facility, a committed unsecured line of credit.

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

As of December 31, 2025, RJF and RJ&A had the ability to borrow under our $1 billion Credit Facility, a committed unsecured line of credit.

We had no such borrowings outstanding under this facility as of December 31, 2025.

See Note 13 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for additional information regarding our Credit Facility.

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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 June 30, 2025, we had outstanding borrowings under two uncommitted secured borrowing arrangements out of a total of 13 uncommitted financing arrangements (eight uncommitted secured and five uncommitted unsecured).

As of December 31, 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.

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during the quarter End of period

June 30, 2025 $ 273 $ 315 $ 228 $ 211 $ 210 $ 210

March 31, 2025 $ 273 $ 299 $ 205 $ 268 $ 305 $ 215

December 31, 2025 $ 306 $ 368 $ 368 $ 277 $ 311 $ 311

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June 30, 2025 $ 273 $ 315 $ 228 $ 211 $ 210 $ 210

March 31, 2025 $ 273 $ 299 $ 205 $ 268 $ 305 $ 215

December 31, 2024 $ 344 $ 345 $ 307 $ 318 $ 330 $ 267

Other borrowings and collateralized financings

We had $750 million in FHLB borrowings outstanding at June 30, 2025, comprised of floating-rate and fixed-rate advances.

We had $700 million in FHLB borrowings outstanding at December 31, 2025, comprised of floating-rate and fixed-rate advances.

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 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 June 30, 2025, we had $9.38 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.

See Notes 6 and 14 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q 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.

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

As of December 31, 2025, we had $9.7 billion in immediate credit available from the FHLB based on the collateral pledged.

See Notes 6 and 13 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q 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.

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 June 30, 2025, our bank subsidiaries had pledged certain bank loans with the Federal Reserve and had $7.2 billion in immediate credit available from the FRB based on collateral pledged.

Subsequent to June 30, 2025, we have continued to pledge incremental collateral, further increasing our credit available to us from the FRB.

As of December 31, 2025, our bank subsidiaries had pledged certain bank loans with the Federal Reserve and had $15.6 billion in immediate credit available from the FRB based on collateral pledged.

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

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Amounts outstanding under this financing arrangement are collateralized by a portion of our trading inventory and accrue interest based on market rates.

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

At June 30, 2025, we had subordinated notes due May 2030 outstanding, with an aggregate principal amount of $98 million.

In July 2025, we notified holders of the subordinated notes of our intent to redeem all such notes on August 15, 2025 (the “Redemption Date”), pursuant to the applicable indenture provisions.

The subordinated notes will be redeemed at 100% of their principal amount, plus accrued and unpaid interest to, but excluding, the Redemption Date for a total of $100 million.

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

The redemption of the subordinated notes will not have a material impact on results for our fiscal fourth quarter of 2025.

See Note 14 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q and Note 16 of our 2024 Form 10-K for additional information regarding these borrowings.

While we had borrowings outstanding as of December 31, 2025, the clearing organization is under no contractual obligation to lend to us under this arrangement.

We may act as an intermediary between broker-dealers and other financial institutions whereby we borrow securities from one counterparty and then lend them to another counterparty.

Where permitted, we have also loaned securities owned by clients or the firm to broker-dealers and other financial institutions.

We account for each of these types of transactions as collateralized agreements and financings, with the outstanding balance of $655 million as of June 30, 2025 related to the securities loaned included in “Collateralized financings” on our Condensed Consolidated Statements of Financial Condition of this Form 10-Q.

See Note 6 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q and Note 2 of our 2024 Form 10-K for more information on our collateralized agreements and financings.

We account for each of these types of transactions as collateralized agreements and financings, with the outstanding balance of $514 million as of December 31, 2025 related to the securities loaned included in “Collateralized financings” on our Condensed Consolidated Statements of Financial Condition of this Form 10-Q.

See Note 6 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q and Note 2 of our 2025 Form 10-K for additional information on our collateralized agreements and financings.

Senior notes payable

At June 30, 2025, 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.

At December 31, 2025, 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.

See Note 16 of the Notes to Consolidated Financial Statements of our 2025 Form 10-K for additional information on our senior notes payable.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

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.

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

Credit Rating

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February 2025

Preferred stock:

BB+ Baa3 (hyb) Not rated

Last rating action

Date of last rating action

April 2025 March 2025

Our current credit ratings depend upon a number of factors, including industry dynamics, operating and economic environment, operating results, operating margins, earnings trends and volatility, balance sheet composition, liquidity and liquidity management, capital structure, overall risk management, business diversification and market share, and competitive position in the markets in which we operate.

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A downgrade to below investment grade may make a public debt offering difficult to execute on terms we would consider to be favorable.

A downgrade below investment grade could result in the termination of certain derivative contracts and the counterparties to the derivative instruments could request immediate payment or demand immediate and ongoing overnight collateralization on our derivative instruments in liability positions.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

and ongoing overnight collateralization on our derivative instruments in liability positions.

A credit downgrade could damage our reputation and result in certain counterparties limiting their business with us, result in negative comments by analysts, potentially negatively impact investors’ and/or clients’ perception of us, cause clients to withdraw bank deposits that exceed FDIC insurance limits from our bank subsidiaries, and cause a decline in our stock price.

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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.

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

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 $1.28 billion as of June 30, 2025, comprised of $888 million related to employee-directed plans and $392 million related to company-directed plans, and we were able to borrow up to 90%, or $1.15 billion, of the June 30, 2025 total without restriction.

To effect any such borrowing, the underlying investments would be converted to money market investments, therefore requiring us to take market risk related to the employee-directed plans.

There were no borrowings outstanding against any of these policies as of June 30, 2025.

Those policies against which we could readily borrow had a cash surrender value of $1.40 billion as of December 31, 2025, and we were able to borrow up to 90%, or $1.26 billion, of the December 31, 2025 total without restriction.

To effect any such borrowing, the underlying investments would be converted to money market investments, therefore requiring us to take market risk related to our employee-directed plans.

There were no borrowings outstanding against any of these policies as of December 31, 2025.

On May 8, 2024, we filed a “universal” shelf registration statement with the SEC pursuant to which we can issue debt, equity and other capital instruments if and when necessary or perceived by us to be opportune.

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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 16 and “Part II - Item 2 - Unregistered sales of equity securities and use of proceeds” of this Form 10-Q.

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.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

On October 14, 2025, we announced we had reached an agreement to acquire a majority stake in 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.

On January 15, 2026, we announced we had reached an agreement to acquire all of the outstanding shares in Clark Capital, an asset management firm specializing in wealth-focused solutions.

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

Upon completion of the acquisition, Clark Capital will maintain its brand and become an independent boutique investment manager within Raymond James Investment Management.

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

Clark Capital will operate within our Asset Management segment upon completion of the acquisition.

On January 2, 2026, we redeemed all 80,500 outstanding shares of our Series B Preferred Stock, which triggered the redemption of the related depositary shares, each representing a 1/40th interest in a share of Series B Preferred Stock, for an aggregate redemption value of $81 million.

The redemption of the Series B Preferred Stock will be reflected in our condensed consolidated financial statements in our fiscal second quarter of 2026.

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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See Note 15 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for further information.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

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 our 2025 Form 10-K.

RJF and many of its subsidiaries are each subject to various regulatory capital requirements.

As of June 30, 2025, all of our active regulated domestic and international subsidiaries had net capital in excess of minimum requirements.

In addition, RJF, Raymond James Bank, and TriState Capital Bank were categorized as “well-capitalized” as of June 30, 2025.

As of December 31, 2025, all of our active regulated domestic and international subsidiaries had net capital in excess of minimum requirements.

In addition, RJF, Raymond James Bank, and TriState Capital Bank were categorized as “well-capitalized” as of December 31, 2025.

The maintenance of certain risk-based and other regulatory capital levels could influence various capital allocation decisions impacting one or more of our businesses.

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In addition, in August 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.

All three cases were subsequently consolidated, but on July 24, 2025, the claims asserted by the plaintiff in one of the three lawsuits were voluntarily dismissed 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 statement of financial position.

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 most likely to have an 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 effective dates of these provisions vary, and we are currently evaluating the impact these changes will have on our consolidated financial statements, including the potential effects on our effective tax rate, deferred tax assets and liabilities, and related disclosures.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

In August 2023, Raymond James Investment Services Limited, one of our UK subsidiaries, agreed to a Voluntary Application for Imposition of Requirements (“VREQ”) with the Financial Conduct Authority (“FCA”) that prohibits the onboarding of new branches or financial advisors without the prior consent of the FCA.

This VREQ, which did not have a material impact on our consolidated results of operations, was lifted in January 2026, and the associated limitations are no longer in effect.

CRITICAL ACCOUNTING ESTIMATES

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We believe that of our accounting estimates and assumptions, those described in the following sections involve a high degree of judgment and complexity.

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

Loss provisions

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After testing the reasonableness of a variety of economic forecast scenarios, each model is run using a single forecast scenario selected for each model.

Our forecasts incorporate assumptions related to macroeconomic indicators as of June 30, 2025 including, but not limited to, U.S.

Our forecasts incorporate assumptions related to macroeconomic indicators as of December 31, 2025 including, but not limited to, U.S.

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 June 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 June 30, 2025.

As of June 30, 2025, use of the downside case scenario would have resulted in an increase of approximately $185 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 at June 30, 2025.

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 December 31, 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 December 31, 2025.

As of December 31, 2025, use of the downside case scenario would have resulted in an increase of approximately $160 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 at December 31, 2025.

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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See Note 2 of the Notes to Consolidated Financial Statements of our 2025 Form 10-K for information regarding our methodologies and assumptions used in estimating the allowance for credit losses.

See Note 7 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for information regarding our allowance for credit losses related to bank loans as of June 30, 2025.

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

See Note 7 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for information regarding our allowance for credit losses related to bank loans as of December 31, 2025.

Loss provisions for legal and regulatory matters

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For a description of the significant estimates and judgments associated with establishing such accruals, see the “Contingent liabilities” section of Note 2 of the Notes to Consolidated Financial Statements of our 2025 Form 10-K.

In addition, refer to Note 16 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for information regarding legal and regulatory matters contingencies as of June 30, 2025.

In addition, refer to Note 15 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for information regarding legal and regulatory matters contingencies as of December 31, 2025.

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

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, although we do not plan to early adopt.

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).

In December 2023, the Financial Accounting Standards Board (“FASB”) issued amended guidance related to disclosures for income taxes (ASU 2023-09).

The amendment requires a public entity to enhance its existing annual tabular reconciliation of its statutory income tax rate to its effective tax rate, with certain reconciling items at or above 5% of the applicable statutory income tax rate broken out by nature and/or jurisdiction.

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, although we do not plan to early adopt.

In accordance with the effective date of the guidance, we plan to adopt ASU 2023‑09 in our fiscal year 2026 Form 10‑K.

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

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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 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.

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

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 Enterprise Risk Management (“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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The second line of risk management tests and monitors the effectiveness of controls, as deemed necessary, and escalates risks when appropriate to senior management and the Board of Directors.

The third line of risk

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

management, Internal Audit, independently reviews activities conducted by the previous lines of risk management to assess their management and mitigation of risk, providing additional assurance to the Board of Directors and senior management, with a view toward enhancing our oversight, management, and mitigation of risk.

The third line of risk management, Internal Audit, independently reviews activities conducted by the previous lines of risk management to assess their management and mitigation of risk, providing additional assurance to the Board of Directors and senior management, with a view toward enhancing our oversight, management, and mitigation of risk.

Our legal department provides legal advice and guidance to each of these three lines of risk management.

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

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

Trading activities

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and extended periods of one-directional markets potentially distort risks within the portfolio.

In addition, should markets become more volatile, actual trading losses may exceed VaR results presented on a single day and might accumulate

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Management’s Discussion and Analysis

over a longer time horizon.

In addition, should markets become more volatile, actual trading losses may exceed VaR results presented on a single day and might accumulate over a longer time horizon.

As a result, management complements VaR with sensitivity analysis and stress testing and employs additional controls such as a daily review of trading results, review of aged inventory, independent review of pricing, monitoring of concentrations, and review of issuer ratings.

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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.

RAYMOND JAMES FINANCIAL, INC.

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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.

Nine months ended June 30, 2025 Period-end VaR Three months ended June 30, Nine months ended June 30,

$ in millions High Low June 30,

Three months ended December 31, 2025 Period-end VaR Three months ended December 31,

$ in millions High Low December 31,

2025 September 30,

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Daily VaR $ 5 $ 3 $ 3 $ 3 Average daily VaR $ 4 $ 2

Average daily VaR increased to $4 million for the three months ended December 31, 2025 compared with $2 million for the prior-year quarter, reflecting higher average trading inventory and the impact on our VaR model of heightened market volatility in early April 2025.

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, and intraday trading.

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

During the three months ended December 31, 2025, our regulatory-defined daily losses in our trading portfolios did not exceed our predicted VaR.

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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See “Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and capital resources” of this Form 10-Q for additional information.

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

To ensure that we remain within the tolerances established for net interest income, a sensitivity analysis of net interest income to interest rate conditions is estimated under a variety of scenarios.

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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 70% as interest rates rise and approximately 60% as interest rates fall, and that interest rates do not decline below zero.

RAYMOND JAMES FINANCIAL, INC.

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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 $1,688 (13)%

(1) Our 0-basis point scenario was based on interest rates as of June 30, 2025.

(1) Our 0-basis point scenario was based on interest rates as of December 31, 2025.

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 Condensed Consolidated Statements of Income and Comprehensive Income.

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

In our available-for-sale securities portfolio, we hold primarily fixed-rate agency-backed MBS, agency-backed CMOs, and U.S.

Treasuries, which are carried at fair value on our Condensed Consolidated Statements of Financial Condition, with changes in the fair value of the portfolio recorded through OCI on our Condensed Consolidated Statements of Income and Comprehensive Income.

Our available-for-sale securities portfolio is substantially all fixed rate and consists primarily of agency-backed MBS, agency-backed CMOs, and U.S.

These securities are carried at fair value on our Condensed Consolidated Statements of Financial Condition, with changes in the fair value of the portfolio recorded through OCI on our Condensed Consolidated Statements of Income and Comprehensive Income.

As the majority of our available-for-sale securities portfolio is comprised of U.S.

government and government agency-backed securities, changes in fair value are primarily driven by changes in interest rates.

At June 30, 2025, our available-for-sale securities portfolio had a fair value of $7.17 billion with a weighted-average yield of 2.24% and a weighted-average life, after factoring in estimated prepayments, of 3.9 years.

At December 31, 2025, our available-for-sale securities portfolio had a fair value of $6.65 billion with a weighted-average yield of 2.25% and a weighted-average life, after factoring in estimated prepayments, of 3.8 years.

To evaluate the interest rate sensitivity of our available-for-sale securities portfolio we also monitor, among other things, effective duration, defined as the approximate percentage change in price for a 100-basis point change in rates.

As of June 30, 2025, the effective duration of our available-for-sale securities portfolio was approximately 3.50, which means that we would expect the market value of our available-for-sale securities portfolio to increase approximately 3.50% for every 100-basis point decline in interest rates and decline approximately 3.50% for every 100-basis point increase in interest rates.

As of December 31, 2025, the effective duration of our available-for-sale securities portfolio was approximately 3.39, which means that we would expect the market value of our available-for-sale securities portfolio to increase approximately 3.39% for every 100-basis point decline in interest rates and decline approximately 3.39% for every 100-basis point increase in interest rates.

See Note 2 of the Notes to Consolidated Financial Statements of our 2025 Form 10-K and Note 4 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for additional information on our available-for-sale securities portfolio.

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These limits set a risk tolerance to changing interest rates and assist in determining strategies for mitigating this risk as EVE approaches these limits.

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

As of December 31, 2025, our EVE analyses were within approved limits.

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

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

The following table shows the maturities of our bank loan portfolio at December 31, 2025, including contractual principal repayments.

Maturities are generally determined based upon contractual terms;

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Total loans held for sale and investment $ 24,352 $ 13,278 $ 5,671 $ 10,582 $ 53,883

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 June 30, 2025.

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 December 31, 2025.

Interest rate type

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Total loans held for sale and investment $ 2,590 $ 26,941 $ 29,531

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

(1) Adjustable rate residential mortgage loans included loans which were still in their fixed-rate period at December 31, 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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dollar (“USD”).

For example, our bank loan portfolio includes loans which are denominated in Canadian dollars (“CAD”), totaling $1.04 billion and $1.23 billion at June 30, 2025 and September 30, 2024, respectively, when converted to the USD using the spot rate at that time.

For example, our bank loan portfolio includes loans which are denominated in Canadian dollars (“CAD”), totaling $987 million and $1.00 billion at December 31, 2025 and September 30, 2025, 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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See Note 2 of the Notes to Consolidated Financial Statements of our 2025 Form 10-K and Note 5 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for additional information regarding these derivatives.

Other sources of foreign exchange risk

Investments in non-bank foreign subsidiaries

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

of CAD 474 million, and in our investment in our U.K.

PCG subsidiary, of £314 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

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

either individually, or in the aggregate, pertaining to these subsidiaries as of June 30, 2025.

Other sources of foreign exchange risk

Investments in non-bank foreign subsidiaries

At December 31, 2025, we had foreign exchange risk in our investment in RJ Ltd.

of CAD 515 million, and in our investment in our UK PCG subsidiary, of £317 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 December 31, 2025.

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

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See Note 2 of the Notes to Consolidated Financial Statements of our 2025 Form 10-K and Notes 5 and 6 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for additional information about our credit risk mitigation related to derivatives and collateralized agreements.

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

Our client activities involve the execution, settlement, and financing of various transactions on behalf of our clients.

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See Note 2 of the Notes to Consolidated Financial Statements of our 2025 Form 10-K for additional information about our determination of the allowance for credit losses associated with certain of our brokerage lending activities.

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

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

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The following table presents net loan (charge-offs)/recoveries and the annualized percentage of net loan (charge-offs)/recoveries to the average outstanding loan balances by loan portfolio segment.

Three months ended June 30, Nine months ended June 30,

2025 2024 2025 2024

Three months ended December 31,

$ in millions Net loan

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amount Annualized

loans Net loan

(charge-off)/recovery

amount Annualized

loans Net loan

(charge-off)/recovery

amount Annualized

C&I loans $ (1) 0.04 % $ (4) 0.16 %

CRE loans (8) 0.41 % — — %

Residential mortgage loans — — % 1 0.04 % — — % 1 0.09 %

Total loans held for investment

$ (9) 0.07 % $ (4) 0.03 %

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

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

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The following table presents the balance of nonperforming loans, nonperforming assets, and related key credit ratios.

$ in millions June 30, 2025 September 30, 2024

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

$ in millions December 31, 2025 September 30, 2025

Nonperforming loans (1)

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Nonperforming assets as a % of Bank segment total assets 0.31 % 0.29 %

(1) Nonperforming loans at June 30, 2025 and September 30, 2024 included $127 million and $89 million, respectively, of loans, which were current pursuant to their contractual terms.

(1) Nonperforming loans at December 31, 2025 and September 30, 2025 included $122 million and $109 million, respectively, of loans which were current pursuant to their contractual terms.

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

Although our nonperforming assets as a percentage of our Bank segment’s assets remained low as of June 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.

Although our nonperforming assets as a percentage of our Bank segment’s assets remained low as of December 31, 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.

See further explanation of our bank loan portfolio segments, allowance for credit losses, and the credit loss provision in Note 7 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q and “Management’s Discussion and Analysis - Results of Operations - Bank” of this Form 10-Q and Note 2 of the Notes to Consolidated Financial Statements of our 2025 Form 10-K.

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There are various other factors included in these processes, depending on the loan portfolio.

There were no significant changes to those processes during the three months ended June 30, 2025.

There were no significant changes to those processes during the three months ended December 31, 2025.

See further discussion of our risk monitoring process in “Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations - Risk management - Credit risk - Banking activities” of our 2025 Form 10-K.

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$ in millions 30-89 days 90 days or more Total 30-89 days 90 days or more Total

June 30, 2025 $ 3 $ 10 $ 13 0.03 % 0.10 % 0.13 %

December 31, 2025 $ 6 $ 4 $ 10 0.06 % 0.03 % 0.09 %

September 30, 2025 $ 7 $ 6 $ 13 0.07 % 0.06 % 0.13 %

Our June 30, 2025 percentage of over 30 day delinquent residential mortgage loans compares favorably to the national average of 1.91%, as most recently reported by the Fed.

Our December 31, 2025 percentage of over 30 day delinquent residential mortgage loans compares favorably to the national average of 1.86%, as most recently reported by the Fed.

To manage and limit credit losses, we maintain processes to manage our loan delinquencies.

Substantially all of our residential first mortgages are serviced by a third party whereby the primary collection effort resides with the servicer.

Our personnel direct and actively monitor the servicers’ efforts through extensive communications regarding individual loan status changes and through requirements of timely and appropriate collection of property management actions and reporting, including management of third parties used in the collection process (e.g., appraisers, attorneys, etc.).

Residential mortgage loans over 60 days past due are generally reviewed by our personnel monthly and documented in a written report detailing delinquency information, balances, collection status, appraised value, and other data points.

Our senior management meets quarterly to discuss the status, collection strategy and charge-off recommendations on substantially all residential mortgage loans over 60 days past due.

Updated collateral valuations are generally obtained for loans over 90 days past due and charge-offs are typically taken on individual loans based on these valuations generally before the loan is 120 days past due.

Credit risk is also managed by diversifying the residential mortgage portfolio.

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The following table details the geographic concentrations (top five states) of our one-to-four family residential mortgage loans.

June 30, 2025

December 31, 2025

Loans outstanding as a % of

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

At June 30, 2025 and September 30, 2024, these loans totaled $2.97 billion and $2.96 billion, respectively, or approximately 30% 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 June 30, 2025, begins amortizing is five years.

At December 31, 2025 and September 30, 2025, these loans totaled $3.09 billion and $3.04 billion, respectively, or approximately 29% of the residential mortgage portfolio at each respective period end.

The weighted-average number of years before the remainder of the loans, which were still in their interest-only period at December 31, 2025, begins amortizing is five years.

Corporate and tax-exempt loans

We closely 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.

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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We also utilize loan sales and other risk mitigation techniques to manage the size and risk profile of our corporate bank loans.

RAYMOND JAMES FINANCIAL, INC.

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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.

June 30, 2025

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 December 31, 2025

Loans outstanding as a % of

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total loans held for sale and investment

Loan funds 9% 3%

Subscription lines 5% 2%

Transportation and logistics 4% 2%

Multi-family 11% 4%

Industrial warehouse 9% 3%

Loan fund 9% 4%

Office real estate 5% 2%

Subscription lines 5% 2%

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Management’s Discussion and Analysis

Risks related to our CRE loans, specifically, office real estate loans, continue to be impacted by corporate remote work policies, pressure from the relatively high interest rate environment that persisted throughout most of our fiscal 2024, uncertainty related to tenant lease renewals, and elevated refinancing risk for loans with near-term maturities, among other issues.

As of June 30, 2025, our highest industry concentrations within our CRE portfolio were multi-family, industrial warehouse, and office real estate, and the concentrations of such loans were generally consistent with those for our corporate loan portfolio detailed in the preceding table.

Refer to “Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations - Risk management - Credit risk - Banking activities” of our 2024 Form 10-K for further information on our CRE loans and a discussion of our risk monitoring process for these loans.

There were no significant changes to those processes during the nine months ended June 30, 2025.

Refer to Note 7 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for additional information on our credit metrics related to our CRE loan portfolio.

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.

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%.

Liquidity risk

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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 nine months ended June 30, 2025 or 2024.

We did not incur any significant losses related to such operational challenges during the three months ended December 31, 2025 or 2024.

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 our 2025 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.

AND SUBSIDIARIES

Management’s Discussion and Analysis

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

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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-Q

Item 2. Management’s Discussion and Analysis