What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-05-06 compared with 2026-02-06 · 495 added, 251 removed, 1141 unchanged (40% of the section changed)

21 unchanged sentences

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.

In addition, words such as “believes,” “expects,” “anticipates,” “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 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 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 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.

13 unchanged sentences

Summary results of operations

Three months ended December 31,

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

Three months ended March 31, Six months ended March 31,

$ in millions, except per share amounts 2026 2025 % change 2026 2025 % change

Net revenues $ 3,859 $ 3,403 13 % $ 7,594 $ 6,940 9 %

12 unchanged sentences

$ 2.83 $ 2.42 17 % $ 5.69 $ 5.36 6 %

Three months ended December 31,

Three months ended March 31, Six months ended March 31,

Other selected financial highlights 2026 2025 2026 2025

17 unchanged sentences

26.0 % 26.2 % 24.3 % 22.9 %

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 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.

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.

RAYMOND JAMES FINANCIAL, INC.

1 unchanged sentence

Management’s Discussion and Analysis

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.

Quarter ended March 31, 2026 compared with the quarter ended March 31, 2025

For our fiscal second quarter of 2026, we generated net revenues of $3.86 billion, an increase of 13% compared with the prior-year quarter, and pre-tax income of $735 million, an increase of 10%.

Our net income available to common shareholders of $542 million increased 10% compared with the prior-year quarter and our earnings per diluted share were $2.72, an increase of 15%.

Our ROCE was 17.3%, up from 16.4% for the prior-year quarter, and our ROTCE was 20.1% (1) , compared with 19.2% (1) for the prior-year quarter.

For the three months ended March 31, 2026, adjusted net income available to common shareholders, which excluded the impact of $22 million of acquisition-related expenses, net of tax, was $564 million (1) , an increase of 11% compared with adjusted net income available to common shareholders for the prior-year quarter.

Our adjusted earnings per diluted share were $2.83 (1) , an increase of 17% compared with the prior-year quarter.

Adjusted ROCE was 18.0% (1) , compared with 16.9% (1) for the prior-year quarter, and adjusted ROTCE was 20.9% (1) , compared with 19.7% (1) for the prior-year quarter.

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 driven by financial advisor recruiting and retention.

Net revenues also increased due to higher investment banking revenues primarily driven by higher underwriting revenues and higher brokerage revenues due to an increase in client activity in our PCG segment.

Compensation, commissions and benefits expense increased 15%, primarily due to an increase in commissions expense resulting from higher asset management and related administrative fees and brokerage 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 65.8% compared with 64.8% 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.

Our adjusted total compensation ratio, which excluded acquisition-related compensation expenses, was 65.7% (1) compared with 64.5% (1) for the prior-year quarter.

The increase in the total compensation ratio primarily resulted from changes in our revenue mix compared with the prior-year quarter, as revenues with a higher associated direct compensation expense increased compared with the prior-year quarter, while interest-related revenues, which have little associated direct compensation, were relatively flat.

Non-compensation expenses increased 10%, primarily due to an increase in expenses to support our growth, including communications and information processing expenses resulting from continued investments in technology to benefit our advisors and their clients, 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 26.0% for our fiscal second quarter of 2026, a slight decrease from 26.2% for 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.

As of March 31, 2026, our tier 1 leverage ratio was 12.4% and total capital ratio was 24.0%, both well above regulatory capital requirements.

We also continue to have substantial liquidity with $3.0 billion of RJF corporate cash (2) as of March 31, 2026.

Consistent with our long‑term strategic priorities and disciplined acquisition approach, we deployed capital in connection with our acquisition of GreensLedge during the current quarter, and subsequent to quarter-end, our acquisition of Clark Capital, which closed in April 2026.

During the three months ended March 31, 2026, we repurchased $400 million of our common stock at an average price of $155 per share under the Board’s common stock repurchase authorization, leaving $1.5 billion available under such authorization as of March 31, 2026.

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

(1) These are non-GAAP financial measures.

4 unchanged sentences

Management’s Discussion and Analysis

Six months ended March 31, 2026 compared with the six months ended March 31, 2025

For the six months ended March 31, 2026, we generated net revenues of $7.59 billion, an increase of 9% compared with the prior-year period, and pre-tax income of $1.46 billion, an increase of 3%.

Our net income available to common shareholders of $1.10 billion was 1% higher than the prior-year period and our earnings per diluted share were $5.51, an increase of 6%.

Our annualized ROCE was 17.7%, down from 18.4% for the prior-year period, and our annualized ROTCE was 20.5% (1) , compared with 21.6% (1) for the prior-year period.

For the six months ended March 31, 2026, adjusted net income available to common shareholders, which excluded the impact of $37 million of acquisition-related expenses, net of tax, was $1.14 billion (1) , an increase of 2% compared with adjusted net income available to common shareholders for the prior-year period.

Our adjusted earnings per diluted share were $5.69 (1) , an increase of 6% compared with the prior-year period.

Adjusted annualized ROCE was 18.2% (1) , compared with 18.9% (1) for the prior-year period, and adjusted annualized ROTCE was 21.2% (1) , compared with 22.1% (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.

Brokerage revenues also increased compared with the prior-year period largely due to an increase in client activity in our PCG segment, as well as higher trailing revenues primarily due to higher client asset values.

Mutual fund service fees also increased primarily due to higher average mutual fund assets.

Offsetting these increases, investment banking revenues decreased primarily due to lower merger & acquisition and advisory revenues compared with a strong prior-year period, particularly in the fiscal first quarter.

Combined net interest income and RJBDP fees from third-party banks decreased slightly compared with the prior-year period primarily due to a decline in RJBDP fees from third-party banks, partially offset by higher net interest income.

Compensation, commissions and benefits expense increased 12%, primarily due to higher commissions expenses resulting from an increase in asset management and related administrative fees and brokerage 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 65.7%, compared with 64.5% for the prior-year period.

Our adjusted compensation ratio, which excluded acquisition-related compensation expenses, was 65.5% (1) , compared with 64.3% for the prior-year period.

For the year‑to‑date period, the increase in the total compensation ratio primarily reflected a shift in our revenue mix, driven by growth in compensable asset management and related administrative fees and brokerage revenues outpacing non-compensable interest‑related revenues, as well as lower investment banking revenues where decreases generally have an adverse impact on our firmwide compensation ratio.

Non-compensation expenses increased 9%, primarily due to an increase in expenses to support our growth, including communications and information processing expenses resulting from continued investments in technology to benefit our advisors and their clients, 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 24.3% for the six months ended March 31, 2026, an increase from 22.9% for the prior-year period, primarily due to a lower benefit related to share-based compensation that settled during the current-year period compared with the prior-year period.

During the six months ended March 31, 2026, we repurchased $800 million of our common stock at an average price of $158 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

8 unchanged sentences

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

Three months ended December 31,

Three months ended March 31, Six months ended March 31,

$ in millions

2026 2025 2026 2025

Net income available to common shareholders $ 542 $ 493 $ 1,104 $ 1,092

1 unchanged sentence

Expenses related to acquisitions:

Compensation, commissions and benefits — Acquisition-related retention

Compensation, commissions and benefits:

Acquisition-related retention

Other acquisition-related compensation 1 — 1 —

Total “Compensation, commissions and benefits” expense 7 8 14 16

Communications and information processing 3 — 4 —

Professional fees

Other — Amortization of identifiable intangible assets

Amortization of identifiable intangible assets

All other acquisition-related expenses

Total “Other” expense 13 10 23 21

Total pre-tax impact of non-GAAP adjustments related to acquisitions 27 19 47 39

6 unchanged sentences

Compensation, commissions and benefits expense $ 2,541 $ 2,204 $ 4,991 $ 4,476

Acquisition-related retention (as detailed above)

Total compensation-related acquisition expenses (as detailed above)

Adjusted compensation, commissions and benefits expense

$ 2,534 $ 2,196 $ 4,977 $ 4,460

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Three months ended March 31, Six months ended March 31,

$ in millions, except per share amounts

2026 2025 2026 2025

Pre-tax margin

19.0 % 19.7 % 19.3 % 20.5 %

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

Impact of non-GAAP adjustments on pre-tax margin :

Expenses related to acquisitions:

Compensation, commissions and benefits — Acquisition-related retention

Compensation, commissions and benefits:

Acquisition-related retention

0.1 % 0.3 % 0.2 % 0.2 %

Other acquisitions-related compensation

— % — % — % — %

Total “Compensation, commissions and benefits” expense

0.1 % 0.3 % 0.2 % 0.2 %

Communications and information processing 0.1 % — % — % — %

Professional fees

Other — Amortization of identifiable intangible assets

0.1 % — % 0.1 % — %

Amortization of identifiable intangible assets

0.3 % 0.3 % 0.3 % 0.3 %

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

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

Total pre-tax impact of non-GAAP adjustments related to acquisitions 0.7 % 0.6 % 0.6 % 0.5 %

Adjusted pre-tax margin 19.7 % 20.3 % 19.9 % 21.0 %

20.0 % 21.7 %

Total compensation ratio 65.8 % 64.8 % 65.7 % 64.5 %

1 unchanged sentence

Acquisition-related retention 0.1 % 0.3 % 0.2 % 0.2 %

Other acquisition-related compensation — % — % — % — %

Total “Compensation, commissions and benefits” expenses related to acquisitions 0.1 % 0.3 % 0.2 % 0.2 %

Adjusted total compensation ratio 65.7 % 64.5 % 65.5 % 64.3 %

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 $ 2.72 $ 2.36 $ 5.51 $ 5.22

1 unchanged sentence

Expenses related to acquisitions:

Compensation, commissions and benefits — Acquisition-related retention

Compensation, commissions and benefits:

Acquisition-related retention

0.03 0.04 0.06 0.08

Other acquisition-related compensation — — — —

Total “Compensation, commissions and benefits” expense 0.03 0.04 0.06 0.08

Communications and information processing 0.02 — 0.02 —

Professional fees 0.02 — 0.03 0.01

Other — Amortization of identifiable intangible assets

Amortization of identifiable intangible assets

0.05 0.05 0.10 0.10

All other acquisition-related expenses 0.02 — 0.02 —

Total “Other” expense 0.07 0.05 0.12 0.10

Total pre-tax impact of non-GAAP adjustments related to acquisitions 0.14 0.09 0.23 0.19

2 unchanged sentences

Adjusted diluted earnings per common share $ 2.83 $ 2.42 $ 5.69 $ 5.36

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Three months ended March 31, Six months ended March 31,

$ in millions 2026 2025 2026 2025

Average common equity $ 12,529 $ 11,989 $ 12,494 $ 11,857

1 unchanged sentence

Expenses related to acquisitions:

Compensation, commissions and benefits — Acquisition-related retention

Compensation, commissions and benefits:

Acquisition-related retention

Other acquisition-related compensation 1 — — —

Total “Compensation, commissions and benefits” expense 4 4 7 8

Communications and information processing 1 — 1 —

Professional fees 2 1 3 1

Other — Amortization of identifiable intangible assets

Amortization of identifiable intangible assets

All other acquisition-related expenses 2 — 1 —

Total “Other” expense 7 5 11 11

Total pre-tax impact of non-GAAP adjustments related to acquisitions 14 10 22 20

8 unchanged sentences

Expenses related to acquisitions:

Compensation, commissions and benefits — Acquisition-related retention

Compensation, commissions and benefits:

Acquisition-related retention

Other acquisition-related compensation 1 — — —

Total “Compensation, commissions and benefits” expense 4 4 7 8

Communications and information processing 1 — 1 —

Professional fees 2 1 3 1

Other — Amortization of identifiable intangible assets

Amortization of identifiable intangible assets

All other acquisition-related expenses 2 — 1 —

Total “Other” expense 7 5 11 11

Total pre-tax impact of non-GAAP adjustments related to acquisitions 14 10 22 20

14 unchanged sentences

Tangible common equity is computed by subtracting goodwill and identifiable intangible assets, net, along with the associated deferred tax liabilities, from total common equity attributable to RJF.

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 quarter-to-date period 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 three, 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 three.

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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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.

These rate cuts brought the target range to 3.50% to 3.75% by the end of our fiscal first quarter of 2026, where it remained through our fiscal second quarter of 2026.

The Fed has indicated that it intends to closely monitor market conditions to determine whether it will consider making any adjustments to short-term interest rates during the remainder of our fiscal 2026.

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

24 unchanged sentences

Net interest income and RJBDP fees from third-party banks

Three months ended December 31,

$ in millions 2025 2024 % change

Three months ended March 31, Six months ended March 31,

$ in millions 2026 2025 % change 2026 2025 % change

Net interest income

4 unchanged sentences

$ 650 $ 651 — % $ 1,317 $ 1,324 (1) %

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.

Quarter ended March 31, 2026 compared with the quarter ended March 31, 2025

For the three months ended March 31, 2026, combined net interest income and RJBDP fees from third-party banks was $650 million, a slight decrease compared with the prior-year quarter, primarily due to lower short-term interest rates and lower average RJBDP balances swept to third-party banks, which largely offset the impacts from growth in average interest-earning assets in the Bank segment, including significant growth in securities‑based and residential mortgage loans, and a favorable mix shift in interest-earning assets, primarily from available-for-sale securities to loans.

Six months ended March 31, 2026 compared with the six months ended March 31, 2025

For the six months ended March 31, 2026, combined net interest income and RJBDP fees from third-party banks was $1.32 billion, a slight decrease compared with the prior-year period, primarily due to lower short-term interest rates and lower average RJBDP balances swept to third-party banks, partially offset by the impacts from growth in average interest-earning assets in the Bank segment, including significant growth in securities‑based and residential mortgage loans, and a favorable mix shift in interest-earning assets, primarily from available-for-sale securities to loans.

RAYMOND JAMES FINANCIAL, INC.

2 unchanged sentences

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

Three months ended December 31,

Quarter ended March 31, 2026 compared with the quarter ended March 31, 2025

Three months ended March 31,

$ in millions Average

63 unchanged sentences

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

Three months ended December 31,

Three months ended March 31,

2026 compared to 2025

47 unchanged sentences

Management’s Discussion and Analysis

Six months ended March 31, 2026 compared with the six months ended March 31, 2025

Six months ended March 31,

$ in millions Average

balance Interest Annualized

Interest-earning assets:

Bank segment:

Cash and cash equivalents $ 5,348 $ 99 3.71 % $ 6,141 $ 138 4.47 %

Available-for-sale securities 7,117 81 2.28 % 8,555 97 2.26 %

Loans held for sale and investment:

Loans held for investment:

SBL 21,404 591 5.46 % 16,794 530 6.24 %

C&I loans 10,645 325 6.03 % 10,248 346 6.69 %

CRE loans 7,763 236 6.01 % 7,620 259 6.72 %

REIT loans 1,721 55 6.31 % 1,683 61 7.18 %

Residential mortgage loans 10,575 217 4.11 % 9,633 187 3.87 %

Tax-exempt loans (3)

1,140 15 3.39 % 1,291 17 3.37 %

Loans held for sale 262 8 6.30 % 221 8 6.95 %

Total loans held for sale and investment 53,510 1,447 5.37 % 47,490 1,408 5.89 %

All other interest-earning assets 243 6 4.73 % 239 6 5.45 %

Interest-earning assets — Bank segment $ 66,218 $ 1,633 4.90 % $ 62,425 $ 1,649 5.25 %

All other segments:

Cash and cash equivalents $ 4,855 $ 88 3.65 % $ 4,056 $ 90 4.47 %

Assets segregated for regulatory purposes and restricted cash 3,820 66 3.48 % 3,539 78 4.39 %

Trading assets — debt securities 1,476 41 5.57 % 1,414 38 5.35 %

Brokerage client receivables 2,652 84 6.34 % 2,389 86 7.23 %

All other interest-earning assets 2,986 55 3.59 % 2,529 49 3.86 %

Interest-earning assets — all other segments $ 15,789 $ 334 4.23 % $ 13,927 $ 341 4.90 %

Total interest-earning assets $ 82,007 $ 1,967 4.77 % $ 76,352 $ 1,990 5.19 %

Interest-bearing liabilities:

Bank segment:

Bank deposits:

Money market and savings accounts $ 35,664 $ 250 1.41 % $ 32,725 $ 312 1.92 %

Interest-bearing demand deposits 21,989 387 3.54 % 20,897 437 4.19 %

Certificates of deposit 2,092 42 4.04 % 2,260 52 4.59 %

Total bank deposits (4)

59,745 679 2.29 % 55,882 801 2.88 %

FHLB advances and all other interest-bearing liabilities 752 12 2.90 % 1,078 15 2.69 %

Interest-bearing liabilities — Bank segment $ 60,497 $ 691 2.30 % $ 56,960 $ 816 2.88 %

All other segments:

Trading liabilities — debt securities $ 869 $ 24 5.64 % $ 842 $ 21 5.08 %

Brokerage client payables 5,189 24 0.93 % 4,732 37 1.55 %

Senior notes payable 3,521 86 4.91 % 2,040 46 4.50 %

All other interest-bearing liabilities (4)

1,181 19 3.05 % 1,141 20 3.68 %

Interest-bearing liabilities — all other segments $ 10,760 $ 153 2.85 % $ 8,755 $ 124 2.85 %

Total interest-bearing liabilities $ 71,257 $ 844 2.38 % $ 65,715 $ 940 2.88 %

Firmwide net interest income $ 1,123 $ 1,050

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

Bank segment 2.81 % 2.63 %

Firmwide 2.75 % 2.76 %

(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.

Six months ended March 31,

2026 compared to 2025

Increase/(decrease) due to

$ in millions Volume Rate Total

Interest-earning assets:

Interest income

Bank segment:

Cash and cash equivalents $ (17) $ (22) $ (39)

Available-for-sale securities (17) 1 (16)

Loans held for sale and investment:

Loans held for investment:

SBL 126 (65) 61

C&I loans 13 (34) (21)

CRE loans 5 (28) (23)

REIT loans 1 (7) (6)

Residential mortgage loans 18 12 30

Tax-exempt loans (2) — (2)

Loans held for sale 1 (1) —

Total loans held for sale and investment 162 (123) 39

All other interest-earning assets — — —

Interest-earning assets — Bank segment $ 128 $ (144) $ (16)

All other segments:

Cash and cash equivalents $ 15 $ (17) $ (2)

Assets segregated for regulatory purposes and restricted cash 5 (17) (12)

Trading assets — debt securities 1 2 3

Brokerage client receivables 9 (11) (2)

All other interest-earning assets 9 (3) 6

Interest-earning assets — all other segments $ 39 $ (46) $ (7)

Total interest-earning assets $ 167 $ (190) $ (23)

Interest-bearing liabilities:

Interest expense

Bank segment:

Bank deposits:

Money market and savings accounts $ 24 $ (86) $ (62)

Interest-bearing demand deposits 20 (70) (50)

Certificates of deposit (4) (6) (10)

Total bank deposits 40 (162) (122)

FHLB advances and all other interest-bearing liabilities (4) 1 (3)

Interest-bearing liabilities — Bank segment $ 36 $ (161) $ (125)

All other segments:

Trading liabilities — debt securities $ 1 $ 2 $ 3

Brokerage client payables 3 (16) (13)

Senior notes payable 36 4 40

All other interest-bearing liabilities 2 (3) (1)

Interest-bearing liabilities — all other segments $ 42 $ (13) $ 29

Total interest-bearing liabilities $ 78 $ (174) $ (96)

Change in firmwide net interest income $ 89 $ (16) $ 73

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

RESULTS OF OPERATIONS – PRIVATE CLIENT GROUP

1 unchanged sentence

Operating results

Three months ended December 31,

$ in millions 2025 2024 % change

Three months ended March 31, Six months ended March 31,

$ in millions 2026 2025 % change 2026 2025 % change

Asset management and related administrative fees

2 unchanged sentences

Mutual and other fund products

176 152 16 % 340 304 12 %

Insurance and annuity products

132 117 13 % 264 235 12 %

Equities, ETFs and fixed income products

180 150 20 % 354 313 13 %

Total brokerage revenues 488 419 16 % 958 852 12 %

1 unchanged sentence

Mutual fund and other investment products

152 130 17 % 294 256 15 %

Bank segment 187 183 2 % 375 370 1 %

1 unchanged sentence

Client account and other fees

74 66 12 % 145 136 7 %

Total account and service fees 506 509 (1) % 1,008 1,036 (3) %

Investment banking

7 9 (22) % 15 17 (12) %

Interest income

107 110 (3) % 221 236 (6) %

8 6 33 % 12 11 9 %

Total revenues 2,827 2,510 13 % 5,618 5,085 10 %

13 unchanged sentences

Non-compensation expenses

286 256 12 % 564 511 10 %

Total non-interest expenses 2,394 2,055 16 % 4,723 4,141 14 %

5 unchanged sentences

PCG client asset balances

$ in billions December 31,

$ in billions March 31,

2026 December 31,

2025 September 30,

1 unchanged sentence

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 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.

As of March 31, 2026, December 31, 2025, and March 31, 2025 PCG AUA included assets associated with firms affiliated with us through our RIA and custody services (“RCS”) division of $228.2 billion, $224.6 billion, and $185.6 billion, respectively, of which $199.1 billion, $195.0 billion, and $158.5 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 December 31,

Three months ended March 31, Six months ended March 31,

$ in millions 2026 2025 2026 2025

2 unchanged sentences

Domestic PCG net new assets growth - annualized (2)

5.8 % 2.6 % 7.0 % 3.3 %

(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 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.

PCG AUA as of March 31, 2026 decreased 1% compared with December 31, 2025, reflecting market-driven depreciation from lower equity markets, partially offset by net new assets driven by financial advisor recruiting and retention.

PCG assets in fee-based accounts increased slightly compared with the preceding quarter, as net inflows into fee-based programs more than offset the impact of market-driven depreciation.

Compared with March 31, 2025, PCG AUA and PCG assets in fee-based accounts increased 15% and 20%, respectively, reflecting market appreciation and net new assets driven by financial 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.

6 unchanged sentences

The Asset Management segment receives a higher portion of the revenues related to accounts invested in managed programs, as compared to the portion received for non-managed programs, as it is performing portfolio management services in addition to administrative services.

The vast majority of the revenues we earn from fee-based accounts are recorded in “Asset management and related administrative fees” on our Condensed Consolidated Statements of Income and Comprehensive Income.

Fees received from such accounts are based on the value of client assets in fee-based accounts and vary based on the specific account types in which the client invests and the level of assets in the client relationship.

As fees for the majority of such accounts are billed based on balances as of the beginning of the quarter, revenues from fee-based accounts may not be immediately affected by changes in asset values, but rather the impacts are seen in the following quarter.

RAYMOND JAMES FINANCIAL, INC.

1 unchanged sentence

Management’s Discussion and Analysis

Clients’ domestic cash sweep balances and ESP balances

$ in millions December 31,

$ in millions March 31,

2026 December 31,

2025 September 30,

1 unchanged sentence

2025 March 31,

2025 December 31,

Bank segment $ 29,829 $ 27,819 $ 26,555 $ 26,635 $ 25,783

7 unchanged sentences

$ 57,762 $ 58,078 $ 56,353 $ 55,180 $ 57,759

Three months ended December 31,

Three months ended March 31, Six months ended March 31,

2026 2025 2026 2025

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 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.

The average yield on RJBDP - third-party banks for the three and six months ended March 31, 2026 decreased from the comparative prior-year periods 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 increased 3% compared with September 30, 2025, primarily due to increases in RJBDP balances, partially offset by a decline in ESP balances.

Total clients’ domestic cash sweep and ESP balances decreased 1% compared with December 31, 2025, primarily due to decreases in RJBDP balances, and remained flat compared with March 31, 2025, as declines in ESP balances were offset by higher RJBDP 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 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 $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 $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 $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.

Quarter ended March 31, 2026 compared with the quarter ended March 31, 2025

Net revenues of $2.81 billion increased 13%, while pre-tax income of $416 million decreased 3%, primarily due to the impact of a higher proportion of compensable revenues to total net revenues, resulting from lower interest-related revenues.

Asset management and related administrative fees increased $254 million, or 17%, 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 driven by financial advisor recruiting and retention.

Brokerage revenues increased $69 million, or 16%, primarily due to higher client activity in the current quarter, as well as higher trailing revenues primarily due to higher client asset values.

Account and service fees decreased $3 million, or 1%, 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 offset by higher mutual fund service fees primarily driven by higher average mutual fund assets.

Compensation-related expenses increased $309 million, or 17%, primarily due to higher commissions expense resulting from higher 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, and annual salary increases.

Non-compensation expenses increased $30 million, or 12%, primarily due to higher expenses to support our growth, including investments in technology to benefit our advisors and their clients, higher financial advisor recruiting-related expenses, and higher occupancy and equipment expenses.

Six months ended March 31, 2026 compared with the six months ended March 31, 2025

Net revenues of $5.58 billion increased 11%, while pre-tax income of $855 million decreased 4%, primarily due to the impact of a higher proportion of compensable revenues to total net revenues, resulting from lower interest-related revenues.

Asset management and related administrative fees increased $471 million, or 16%, 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 driven by financial advisor recruiting and retention.

Brokerage revenues increased $106 million, or 12%, primarily due to higher client activity in the current-year period, as well as higher trailing revenues primarily due to higher client asset values.

Account and service fees decreased $28 million, or 3%, 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 decline in the average RJBDP third-party bank yield, partially offset by higher mutual fund service fees primarily driven by higher average mutual fund assets.

Compensation-related expenses increased $529 million, or 15%, primarily due to higher commission expense resulting from higher 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, and annual salary increases.

Non-compensation expenses increased $53 million, or 10%, primarily due to higher expenses to support our growth, including investments in technology to benefit our advisors and their clients, higher financial advisor recruiting-related expenses, and higher occupancy and equipment expenses.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

RESULTS OF OPERATIONS – CAPITAL MARKETS

1 unchanged sentence

Operating results

Three months ended December 31,

$ in millions 2025 2024 % change

Three months ended March 31, Six months ended March 31,

$ in millions 2026 2025 % change 2026 2025 % change

Brokerage revenues:

2 unchanged sentences

Total brokerage revenues

156 161 (3) % 297 287 3 %

Investment banking:

2 unchanged sentences

Equity underwriting

56 31 81 % 87 66 32 %

Debt underwriting

77 47 64 % 127 103 23 %

Total investment banking 272 207 31 % 472 524 (10) %

Interest income

27 28 (4) % 55 57 (4) %

Affordable housing investments business revenues 28 20 40 % 59 49 20 %

6 4 50 % 10 9 11 %

Total revenues 489 420 16 % 893 926 (4) %

6 unchanged sentences

Non-compensation expenses

120 98 22 % 230 203 13 %

Total non-interest expenses 413 360 15 % 784 766 2 %

1 unchanged sentence

$ 51 $ 36 42 % $ 60 $ 110 (45) %

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.

Quarter ended March 31, 2026 compared with the quarter ended March 31, 2025

Net revenues of $464 million increased 17% and pre-tax income of $51 million increased 42% compared with the prior-year quarter.

Investment banking revenues increased $65 million, or 31%, primarily due to higher debt and equity underwriting revenues driven by an increase in the number of transactions during the current quarter and larger individual transactions and, to a lesser extent, incremental revenues resulting from our acquisition of GreensLedge which was completed toward the end of the quarter.

Compensation-related expenses increased $31 million, or 12%, primarily due to the increase in revenues and business growth.

Non-compensation expenses increased $22 million, or 22%, primarily due to higher expenses related to the growth in investment banking and affordable housing investments business revenues, as well as higher other expenses related to our growth, including incremental expenses associated with GreensLedge which was acquired during the quarter.

RAYMOND JAMES FINANCIAL, INC.

1 unchanged sentence

Management’s Discussion and Analysis

Six months ended March 31, 2026 compared with the six months ended March 31, 2025

Net revenues of $844 million decreased 4% and pre-tax income of $60 million decreased 45% compared with the prior-year period.

Investment banking revenues decreased $52 million, or 10%, due to lower merger & acquisition and advisory revenues, largely due to larger transactions in the prior-year period.

Partially offsetting this decrease, underwriting revenues increased driven by an increased number of transactions, as well as incremental revenues resulting from GreensLedge, which was acquired during the current-year period.

Brokerage revenues increased $10 million, or 3%, primarily due to higher client activity in equity products in the current-year period.

Compensation-related expenses decreased $9 million, or 2%, generally consistent with the decrease in revenues.

Non-compensation expenses increased $27 million, or 13%, primarily due to higher expenses related to our growth, including incremental expenses associated with GreensLedge which was acquired during the current-year period.

RESULTS OF OPERATIONS – ASSET MANAGEMENT

1 unchanged sentence

Operating results

Three months ended December 31,

$ in millions 2025 2024 % change

Three months ended March 31, Six months ended March 31,

$ in millions 2026 2025 % change 2026 2025 % change

Asset management and related administrative fees:

4 unchanged sentences

Account and service fees

7 6 17 % 13 12 8 %

All other 5 5 — % 9 11 (18) %

2 unchanged sentences

Compensation, commissions and benefits

65 57 14 % 124 115 8 %

Non-compensation expenses

125 111 13 % 249 222 12 %

Total non-interest expenses 190 168 13 % 373 337 11 %

4 unchanged sentences

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

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

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

4 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 December 31,

$ in billions March 31,

2026 December 31,

2025 September 30,

1 unchanged sentence

2025 March 31,

2025 December 31,

$ 216.2 $ 214.7 $ 209.2 $ 198.0 $ 183.3

9 unchanged sentences

Activity (including activity in assets managed for affiliated entities)

Three months ended December 31,

Three months ended March 31, Six months ended March 31,

$ in billions 2026 2025 2026 2025

Financial assets under management at beginning of period $ 296.9 $ 258.6 $ 290.9 $ 259.5

Raymond James Investment Management - net inflows/(outflows)

AMS - net inflows 5.1 1.1

Net market appreciation/(depreciation) in asset values

5.7 3.7 10.8 4.8

Raymond James Investment Management

0.8 0.1 0.4 0.8

Total net inflows

6.5 3.8 11.2 5.6

Net market depreciation in asset values

(4.5) (2.5) (3.2) (5.2)

Financial assets under management at end of period $ 298.9 $ 259.9 $ 298.9 $ 259.9

2 unchanged sentences

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 December 31, 2025

As of March 31, 2026

$ in billions AUM Average fee rate

3 unchanged sentences

Total financial assets under management $ 82.7 0.31 %

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Non-discretionary asset-based programs

2 unchanged sentences

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

$ in billions December 31,

$ in billions March 31,

2026 December 31,

2025 September 30,

1 unchanged sentence

2025 March 31,

2025 December 31,

Total assets $ 609.1 $ 603.5 $ 586.6 $ 547.8 $ 505.3

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

Compared with the preceding quarter, the increase in these assets was due to net new assets driven by financial advisor recruiting and retention, which more than offset market depreciation during the current quarter.

Compared with the prior‑year quarter, the increase primarily reflected market appreciation and net new assets driven by financial advisor recruiting and retention.

Raymond James Trust

1 unchanged sentence

(including those managed for affiliated entities).

$ in billions December 31,

$ in billions March 31,

2026 December 31,

2025 September 30,

1 unchanged sentence

2025 March 31,

2025 December 31,

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

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.

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

Quarter ended March 31, 2026 compared with the quarter ended March 31, 2025

Net revenues of $327 million increased 13% and pre-tax income of $137 million increased 13%.

Asset management and related administrative fees increased $37 million, or 13%, 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.

Compensation expenses increased $8 million, or 14%, and reflected the impact of the increase in revenues.

Non-compensation expenses increased $14 million, or 13%, largely due to higher investment sub-advisory fee expense resulting from the increase in assets under management in sub-advised programs.

Six months ended March 31, 2026 compared with the six months ended March 31, 2025

Net revenues of $653 million increased 12% and pre-tax income of $280 million increased 14%.

Asset management and related administrative fees increased $71 million, or 13%, 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 since the prior-year period and net inflows to PCG fee-based accounts.

Compensation expenses increased $9 million, or 8%, and reflected the impact of the increase in revenues.

Non-compensation expenses increased $27 million, or 12%, 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 due to investments in our growth.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

RESULTS OF OPERATIONS – BANK

1 unchanged sentence

Operating results

Three months ended December 31,

$ in millions 2025 2024 % change

Three months ended March 31, Six months ended March 31,

$ in millions 2026 2025 % change 2026 2025 % change

Interest income $ 802 $ 802 — % $ 1,633 $ 1,649 (1) %

5 unchanged sentences

Compensation and benefits

47 45 4 % 95 91 4 %

Non-compensation expenses:

Bank loan benefit for credit losses

Bank loan provision for credit losses

5 16 (69) % 2 16 (88) %

RJBDP fees to PCG

187 183 2 % 375 370 1 %

81 73 11 % 162 147 10 %

Total non-compensation expenses 273 272 — % 539 533 1 %

1 unchanged sentence

Pre-tax income $ 166 $ 117 42 % $ 339 $ 235 44 %

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

Quarter ended March 31, 2026 compared with the quarter ended March 31, 2025

Net revenues of $486 million increased 12% and pre-tax income of $166 million increased 42%.

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.

Net interest income increased $53 million, or 13%, primarily due to higher average interest-earning assets, particularly securities-based and residential mortgage loans, lower funding costs driven by the decline in short-term interest rates, and a favorable mix shift in interest-earning assets from available-for-sale securities to loans.

The Bank segment net interest margin increased to 2.81% from 2.67% for the prior-year quarter.

The bank loan provision for credit losses was $5 million for the current quarter, compared with $16 million for the prior-year quarter.

The bank loan provision for credit losses for the current quarter primarily reflected the impacts of a weakened economic outlook toward the end of the quarter, specific reserves on certain CRE loans, and loan downgrades primarily in our CRE and C&I loan portfolios, partially offset by net paydowns of certain loans in our corporate loan portfolio.

The bank loan provision for credit losses for the prior-year quarter primarily reflected the impacts of charge-offs of certain CRE and C&I loans and loan downgrades primarily related to our CRE loan portfolio.

Non-compensation expenses, excluding the bank loan provision for credit losses, increased $12 million, or 5%, primarily due to higher expenses related to our growth.

Six months ended March 31, 2026 compared with the six months ended March 31, 2025

Net revenues of $973 million increased 13% and pre-tax income of $339 million increased 44%.

Net interest income increased $109 million, or 13%, primarily due to higher average interest-earning assets, particularly securities-based and residential mortgage loans, lower funding costs driven by the decline in short-term interest rates, and a favorable mix shift in interest-earning assets from available-for-sale securities to loans.

The Bank segment net interest margin increased to 2.81% from 2.63% for the prior-year period.

The bank loan provision for credit losses was $2 million for the current-year period, compared with $16 million for the prior-year period.

The bank loan provision for credit losses for the current-year period primarily reflected the impacts of specific reserves and loan downgrades in our CRE and C&I loan portfolios, partially offset by net paydowns of certain loans in our corporate loan portfolio.

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

RAYMOND JAMES FINANCIAL, INC.

1 unchanged sentence

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.

Non-compensation expenses, excluding the bank loan provision for credit losses, increased $20 million, or 4%, primarily due higher expenses related to our growth.

RESULTS OF OPERATIONS – OTHER

1 unchanged sentence

Operating results

Three months ended December 31,

$ in millions 2025 2024 % change

Three months ended March 31, Six months ended March 31,

$ in millions 2026 2025 % change 2026 2025 % change

Interest income

3 unchanged sentences

Interest expense (44) (25) 76 % (88) (50) 76 %

Net revenues (1) 12 NM

Net revenues (1) 13 NM (2) 25 NM

Non-interest expenses:

3 unchanged sentences

$ (35) $ (34) (3) % $ (71) $ (64) (11) %

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

Quarter ended March 31, 2026 compared with the quarter ended March 31, 2025

Pre-tax loss was $35 million, compared with a pre-tax loss of $34 million for the prior-year quarter.

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.

Net revenues decreased $14 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 decreases in short-term interest rates.

Non-interest expenses decreased $13 million, or 28%, primarily due to lower compensation-related expenses in the current quarter.

Six months ended March 31, 2026 compared with the six months ended March 31, 2025

Pre-tax loss was $71 million, compared with a pre-tax loss of $64 million for the prior-year period.

Net revenues decreased $27 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 decreases in short-term interest rates.

Non-interest expenses decreased $20 million, or 22%, primarily due to lower compensation-related expenses in the current-year period.

RAYMOND JAMES FINANCIAL, INC.

4 unchanged sentences

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

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.

Total assets of $91.94 billion as of March 31, 2026 were $3.7 billion, or 4%, higher than our total assets as of September 30, 2025.

Bank loans, net increased $3.3 billion, primarily due to continued growth in securities-based and residential mortgage loans.

Brokerage client receivables, net increased $479 million primarily due to an increase in margin loans and assets segregated for regulatory purposes and restricted cash increased $347 million primarily due to an increase in client cash balances at our broker-dealer subsidiaries, which resulted in an increase in brokerage client payables and a corresponding increase in segregated assets.

Loans to financial advisors, net also increased $268 million due to financial advisor recruiting and retention-related activity.

These increases were partially offset by a $486 million decrease in available-for-sale securities due to net maturities or redemptions during the period.

As of March 31, 2026, our total liabilities of $79.33 billion were $3.6 billion, or 5%, higher than our total liabilities as of September 30, 2025, largely due to a $3.5 billion increase in bank deposits primarily driven by higher RJBDP balances swept to our Bank segment.

Brokerage client payables also increased $754 million due to the aforementioned increase in client cash balances at our broker-dealer subsidiaries.

These increases were partially offset by a $493 million decrease in accrued compensation, commissions and benefits primarily due to the payment of prior-year bonuses and certain benefits during the period.

LIQUIDITY AND CAPITAL RESOURCES

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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.

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.

This includes meeting our regulatory capital requirements and conservative internal management targets.

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

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Liquidity and capital management

Senior management establishes our liquidity and capital management frameworks.

Senior management establishes our liquidity and capital management frameworks, which support the successful execution of our business strategies by ensuring ongoing and sufficient funding and liquidity.

Our liquidity and capital management frameworks are overseen by our Asset and Liability Committee, a senior management committee that develops and executes strategies and policies to manage our liquidity risk and interest rate risk, as well as provides oversight over the firm’s investments.

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Our treasury department assists in evaluating, monitoring and controlling the impact that our business activities have on our financial condition and liquidity, and also maintains our relationships with various lenders.

The objective of our liquidity management framework is to support the successful execution of our business strategies while ensuring ongoing and sufficient funding and liquidity.

Our capital planning and capital risk management processes are governed by the Capital Planning Committee (“CPC”), a senior management committee that provides oversight on our capital planning and ensures that our strategic planning and risk management processes are integrated into the capital planning process.

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$ in millions

December 31, 2025 September 30, 2025

March 31, 2026 September 30, 2025

Common equity tier 1 capital/Tier 1 capital

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$ in millions

December 31, 2025 September 30, 2025

March 31, 2026 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 $11.2 billion at March 31, 2026 decreased $170 million compared with September 30, 2025.

The decrease in cash and cash equivalents primarily resulted from net investments in bank loans, common stock repurchases, the annual payment of prior-year bonuses and certain benefits, 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 or redemptions of available-for-sale securities 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

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.

RJF corporate cash of $2.96 billion as of March 31, 2026, 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 March 31, 2026, RJF had loaned $1.10 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 December 31, 2025

TriState Capital Bank 2,899

$ in millions March 31, 2026 September 30, 2025

RJF $ 1,886 $ 2,296

Raymond James Bank 3,632 1,851

TriState Capital Bank 2,315 3,112

RJ&A 1,830 2,654

Raymond James Ltd.

(“RJ Ltd.”) 637 516

Raymond James Capital Services, LLC 148 132

Raymond James Wealth Management Limited (“RJWM”) 141 131

Raymond James Trust Company of New Hampshire 123 135

Raymond James Capital Services, LLC 130

Raymond James Investment Management 116

Raymond James Financial Services, Inc.

Raymond James Investment Management 71 109

Other subsidiaries 328 337

Total cash and cash equivalents $ 11,219 $ 11,389

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.

RJF maintained depository accounts at Raymond James Bank and TriState Capital Bank totaling $384 million as of March 31, 2026.

The portion of this total that was available on demand without restrictions, which amounted to $351 million as of March 31, 2026, 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 December 31, 2025.

and RJWM, was held to meet regulatory requirements and was not available for use by the parent as of March 31, 2026.

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 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.

At March 31, 2026, 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.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

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.

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.

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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.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Borrowings and financing arrangements

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

As of 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.

As of March 31, 2026, 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 March 31, 2026.

See Note 15 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 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.

As of March 31, 2026, 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).

Lenders are generally under no contractual obligation to lend to us under uncommitted credit facilities.

See Notes 7 and 15 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for additional information regarding these borrowings.

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during the quarter End of period

March 31, 2026 $ 280 $ 376 $ 361 $ 243 $ 352 $ 272

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

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

We had $700 million in FHLB borrowings outstanding at March 31, 2026, 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 March 31, 2026, we had $9.4 billion in immediate credit available from the FHLB based on the collateral pledged.

See Notes 7 and 15 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 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.

As of March 31, 2026, our bank subsidiaries had pledged certain bank loans with the Federal Reserve and had $17.2 billion in immediate credit available from the FRB based on collateral pledged.

See Note 7 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 December 31, 2025, the clearing organization is under no contractual obligation to lend to us under this arrangement.

While we had borrowings outstanding as of March 31, 2026, 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 $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.

We account for each of these types of transactions as collateralized agreements and financings, with the outstanding balance of $781 million as of March 31, 2026 related to the securities loaned included in “Collateralized financings” on our Condensed Consolidated Statements of Financial Condition of this Form 10-Q.

See Note 7 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 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.

At March 31, 2026, 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.

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Outlook Stable Stable Stable

Last rating action

Date of last rating action

February 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.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

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

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.

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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Conversely, an improvement in RJF’s current credit rating could have a favorable impact on the facility fee, as well as the interest rate applicable to any borrowings on such line.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Other sources and uses of liquidity

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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 $1.40 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.

Those policies against which we could readily borrow had a cash surrender value of $1.38 billion as of March 31, 2026, and we were able to borrow up to 90%, or $1.24 billion, of the March 31, 2026 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.

There were no borrowings outstanding against any of these policies as of March 31, 2026.

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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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 as part of our capital deployment strategies.

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

On April 30, 2026, we completed our acquisition of all outstanding shares of Clark Capital, an asset management firm specializing in wealth-focused solutions.

The acquisition was funded using cash on hand as of the acquisition date.

Clark Capital will become one of our independent boutique investment managers under Raymond James Investment Management in our Asset Management segment.

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 17 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 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.

As of March 31, 2026, 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 March 31, 2026.

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

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

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

The firm has been cooperating with this inquiry.

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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.

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.

On March 27, 2026, the federal district court entered an order dismissing some of the claims asserted in the consolidated case.

We intend to continue vigorously defending against the remaining claims in the case.

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 prohibited 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.

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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.

AND SUBSIDIARIES

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 December 31, 2025 including, but not limited to, U.S.

Our forecasts incorporate assumptions related to macroeconomic indicators 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 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.

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 March 31, 2026, 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 March 31, 2026.

As of March 31, 2026, use of the downside case scenario would have resulted in an increase of approximately $145 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 $25 million in the quantitative portion of our allowance for credit losses on bank loans at March 31, 2026.

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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To the extent macroeconomic conditions worsen beyond those assumed in this downside case scenario, we could incur provisions for credit losses significantly in excess of those estimated in this analysis.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

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 December 31, 2025.

See Note 8 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 March 31, 2026.

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 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.

AND SUBSIDIARIES

Management’s Discussion and Analysis

In addition, refer to Note 17 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for information regarding legal and regulatory matters contingencies as of March 31, 2026.

ACCOUNTING STANDARDS UPDATE

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

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

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, credit spreads, equity prices, and foreign exchange rates.

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We are exposed to market risk, primarily related to interest rate risk, as a result of our trading inventory (primarily comprised of fixed income financial instruments) in our Capital Markets segment.

Changes in the value of our trading inventory may result from fluctuations in interest rates, credit spreads, equity prices, macroeconomic factors, investor expectations or risk appetites, liquidity, as well as dynamic relationships between these factors.

Changes in the value of our trading inventory may result from fluctuations in interest rates, credit spreads, equity prices, macroeconomic factors, investor expectations or risk appetites, and liquidity, as well as dynamic relationships between these factors.

We actively manage interest rate risk arising from our fixed income trading inventory through the use of hedging strategies utilizing U.S.

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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.

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

$ in millions High Low December 31,

Six months ended March 31, 2026 Period-end VaR Three months ended March 31, Six months ended March 31,

$ in millions High Low March 31,

2026 September 30,

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

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

During the three and six months ended March 31, 2026, our regulatory-defined daily losses in our trading portfolios exceeded our predicted VaR on one occasion.

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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We also manage interest rate risk as part of our liquidity management framework.

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.

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

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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-200 $1,697 (13)%

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

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.

At March 31, 2026, our available-for-sale securities portfolio had a fair value of $6.40 billion with a weighted-average yield of 2.31% and a weighted-average life, after factoring in estimated prepayments, of 3.9 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 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.

As of March 31, 2026, the effective duration of our available-for-sale securities portfolio was approximately 3.40, which means that we would expect the market value of our available-for-sale securities portfolio to increase approximately 3.40% for every 100-basis point decline in interest rates and decline approximately 3.40% 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 5 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 December 31, 2025, our EVE analyses were within approved limits.

As of March 31, 2026, 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 December 31, 2025, including contractual principal repayments.

The following table shows the maturities of our bank loan portfolio at March 31, 2026, including contractual principal repayments.

Maturities are generally determined based upon contractual terms;

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Total loans held for sale and investment $ 26,015 $ 13,493 $ 4,908 $ 10,857 $ 55,273

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.

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 March 31, 2026.

Interest rate type

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Total loans held for sale and investment $ 2,508 $ 26,750 $ 29,258

(1) Adjustable rate residential mortgage loans included loans which were still in their fixed-rate period at December 31, 2025.

(1) Adjustable rate residential mortgage loans included loans which were still in their fixed-rate period at March 31, 2026.

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 $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.

For example, our bank loan portfolio includes loans which are denominated in Canadian dollars (“CAD”), totaling $961 million and $1.00 billion at March 31, 2026 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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Investments in non-bank foreign subsidiaries

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

At March 31, 2026, we had foreign exchange risk in our investment in RJ Ltd.

of CAD 507 million, and in our investment in our UK PCG subsidiary, of £326 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.

however, we do not believe we had material foreign exchange risk either individually, or in the aggregate, pertaining to these subsidiaries as of March 31, 2026.

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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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 December 31,

Three months ended March 31, Six months ended March 31,

2026 2025 2026 2025

$ 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 $ — — % $ (8) 0.31 % $ (1) 0.02 % $ (12) 0.23 %

CRE loans (6) 0.31 % (7) 0.37 % (14) 0.36 % (7) 0.18 %

Residential mortgage loans 1 0.04 % — — % 1 0.02 % — — %

Total loans held for investment

$ (5) 0.04 % $ (15) 0.13 % $ (14) 0.05 % $ (19) 0.08 %

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

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.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

$ in millions December 31, 2025 September 30, 2025

$ in millions March 31, 2026 September 30, 2025

Nonperforming loans (1)

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Nonperforming assets as a % of Bank segment total assets 0.27 % 0.29 %

(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.

(1) Nonperforming loans at March 31, 2026 and September 30, 2025 included $75 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 8 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 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.

Although our nonperforming assets as a percentage of our Bank segment’s assets remained low as of March 31, 2026, 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 8 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 December 31, 2025.

There were no significant changes to those processes during the three months ended March 31, 2026.

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

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

March 31, 2026 $ 4 $ 2 $ 6 0.04 % 0.02 % 0.06 %

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

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.

Our March 31, 2026 percentage of over 30 day delinquent residential mortgage loans compares favorably to the national average of 1.96%, as most recently reported by the Fed.

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

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

December 31, 2025

March 31, 2026

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 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.

At March 31, 2026 and September 30, 2025, these loans totaled $3.20 billion and $3.04 billion, respectively, or approximately 30% 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 March 31, 2026, begins amortizing is five years.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Corporate and tax-exempt loans

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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.

AND SUBSIDIARIES

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 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

As of March 31, 2026

Loans outstanding as a % of

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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.

Loan funds are primarily extended to institutional sponsors and fund vehicles and 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.

Our credit exposure on these loans is primarily driven by the credit quality and performance of the underlying collateral.

We manage credit risk through diversification across issuers and industries, loan specific legal and contractual protections, and loan specific structural credit enhancements designed to reduce our risk of loss, as well as ongoing monitoring.

Subscription lines are primarily extended to private equity funds and are 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 for subscription lines is primarily driven by the credit quality and funding reliability of the limited partners, rather than the performance of underlying fund investments.

These loans generally have short-term maturities, are structured to mitigate risk through covenant and collateral arrangements, and are subject to concentration limits across key risk factors.

Across our loan funds and subscription lines, historical default rates 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.

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See the section “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and capital resources” of this Form 10-Q for information regarding our liquidity and how we manage liquidity risk.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Operational 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 three months ended December 31, 2025 or 2024.

We did not incur any significant losses related to such operational challenges during the six months ended March 31, 2026 or 2025.

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