Jefferies Financial Group Inc. announced its second-quarter fiscal year 2025 financial results on June 25, 2025, reporting a nearly 40% plunge in net earnings attributable to common shareholders to $88.0 million, or $0.40 per share, compared to $145.7 million, or $0.64 per share, in the prior year quarter. Total net revenues for the quarter were $1.63 billion, a slight decrease from $1.66 billion in the comparable period. The firm's performance was impacted by significant uncertainty related to U.S. policy and geopolitical events, which slowed activity levels for the first two months of the quarter.
Investment Banking net revenues from Advisory, Equity underwriting, and Debt underwriting totaled $786 million, up 6.4% year-over-year. Advisory activity was particularly strong, surging 61% due to continued market share gains. However, Equity underwriting net revenues were down 51%, consistent with a reduction in deal activity attributable to volatile equity market conditions. Debt underwriting net revenues remained flat compared to the prior year quarter.
Capital Markets net revenues were $704 million, a slight decrease from the prior year quarter. Equities net revenues increased 24% to $526 million, benefiting from increased global trading volumes and activity in corporate derivatives. Conversely, Fixed Income net revenues decreased 37% to $178 million. Asset Management fees and investment return revenues increased 43% to $71 million, primarily due to improved performance across several strategies.
Despite the difficult start to the quarter, management expressed increasing optimism for the second half of 2025, citing a noticeable increase in momentum in May as economic and market clarity began to restore investor confidence. The firm highlighted the strength of its current backlog and ongoing client discussions around capital formation and strategic opportunities, expecting margins to normalize as the business environment improves.
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