Jefferies Shares Slide 3.3% as Rising Expenses and Private Credit Losses Offset Q4 Earnings Beat

Summary

Despite exceeding analyst expectations for both earnings and revenue, Jefferies faced investor skepticism as total expenses climbed during the quarter. The firm's investment banking and underwriting divisions showed robust year-over-year growth, signaling a recovery in capital markets activity. However, the positive momentum was dampened by a $30 million pre-tax loss tied to its Point Bonita investment, highlighting persistent volatility within the private credit sector. Consequently, the market prioritized concerns over margin compression and credit exposure over the headline revenue beat.

Potential Positives

• Strong recovery in investment banking and underwriting fees suggests a cyclical upturn in M&A and IPO activity.
• Revenue and earnings per share (EPS) both exceeded consensus estimates, demonstrating core business resilience.
• Market share gains in advisory services position the firm well for a broader recovery in the financial sector.

Potential Negatives

• Rising operating expenses are squeezing profit margins despite higher top-line growth.
• A $30 million pre-tax loss in Point Bonita underscores risks associated with the firm's private credit and alternative investment portfolios.
• Increased compensation costs may continue to weigh on net income if revenue growth slows down.

FAQ

$JEF Revenue

$JEF had revenues of $2.9B in Q4 2025.This is an increase of 3.42% from the same period in the prior year.

You can track financials on financials dashboard.

$JEF Hedge Fund Activity

We have seen 272 institutional investors add shares of $JEF stock to their portfolio, and 193 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• EMINENCE CAPITAL, LP added 1,896,547 shares  (+129.72%)  to their portfolio in Q3 2025, for an estimated $139,759,515
• ARTEMIS INVESTMENT MANAGEMENT LLP added 1,087,393 shares  (+84.15%)  to their portfolio in Q3 2025, for an estimated $85,002,406
• INVESCO LTD. removed 1,063,544 shares  (-68.09%)  to their portfolio in Q3 2025, for an estimated $52,818,345
• ALLIANCEBERNSTEIN L.P. removed 919,378 shares  (-13.73%)  to their portfolio in Q3 2025, for an estimated $11,689,956
• MILLENNIUM MANAGEMENT LLC added 824,731 shares  (+116.59%)  to their portfolio in Q3 2025, for an estimated $61,543,961
• FMR LLC added 782,987 shares  (+109.37%)  to their portfolio in Q3 2025, for an estimated $58,904,673
• ALYESKA INVESTMENT GROUP, L.P. added 760,977 shares  (+100.00%)  to their portfolio in Q3 2025, for an estimated $49,783,115
• QUBE RESEARCH & TECHNOLOGIES LTD removed 730,547 shares  (-54.58%)  to their portfolio in Q3 2025, for an estimated $33,430,645
• UBS GROUP AG added 643,754 shares  (+154.03%)  to their portfolio in Q3 2025, for an estimated $46,599,033
• FEDERATED HERMES, INC. added 532,923 shares  (+56.15%)  to their portfolio in Q3 2025, for an estimated $45,047,344

To track hedge funds' stock portfolios, check out institutional holdings dashboard.

$JEF Analyst Ratings

Wall Street analysts have issued reports on $JEF in the last several months. We have seen 4 firms issue buy ratings on the stock, and 0 firms issue sell ratings.

Here are some recent analyst ratings:

• Oppenheimer issued a "Outperform" rating on 2025-12-11
• Morgan Stanley issued a "Overweight" rating on 2025-12-08
• BMO Capital issued a "Market Perform" rating on 2025-10-17
• Oppenheimer issued a "Outperform" rating on 2025-10-17
• Goldman Sachs issued a "Buy" rating on 2025-10-14
• Morgan Stanley issued a "Equal Weight" rating on 2025-09-30
• Morgan Stanley issued a "Equal Weight" rating on 2025-09-08