Jefferies Provides Letter from Its CEO and President Regarding Point Bonita Capital and First Brands Group

Jefferies Financial Group, Inc. (NYSE: JEF) (“Jefferies”) announced today that is has posted this letter from our CEO, Rich Handler, and our President, Brian Friedman:

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Dear Clients, Stakeholders and Friends of Jefferies,

Since the circumstances surrounding First Brands have resulted in articles and snippets that mention Jefferies (in many cases, with inaccurate or conflated allegations or assertions), we believe it’s important to share with our clients, fellow shareholders, bondholders, employee-partners, and friends of Jefferies both the actual facts and our perspective.

The possible impact on Jefferies of the First Brands bankruptcy should be considered and measured against these overriding facts:

• A sound financial condition – Jefferies had total equity on August 31, 2025 of $10.5 billion and tangible equity of $8.5 billion,
• Ample liquidity – Jefferies had cash of $11.5 billion on August 31, 2025,
• True momentum across our business, as demonstrated most clearly by Jefferies’ third quarter results announced two weeks ago – these results annualized would represent net revenues of $8.2 billion, earnings before income taxes of $1.3 billion and net earnings of $1.0 billion, and
• A continuing and strengthened partnership with SMBC – as we announced three weeks ago, SMBC and we significantly expanded our Global Strategic Alliance, which included $2.5 billion of new and incremental credit facilities and SMBC intending to increase its ownership interest in Jefferies from 14.5% to up to 20%.

This Thursday morning at our Annual Investor Meeting, we will amplify and detail the strong momentum of our unique Wall Street firm, which remains keenly focused on executing and further realizing its potential. In addition to a favorable operating environment for our business, we also see exceptional opportunities for continuing growth.

The issues surrounding First Brands are the result of decisions and actions at First Brands, including possible fraudulent or otherwise improper activity that is under investigation by the First Brands’ Chief Restructuring Officer and reportedly under investigation by the United States Department of Justice. Those actions and decisions drove First Brands – formerly a leader in its sector that had financial statements audited by a top accounting firm, major law firms representing it and a track record that attracted the support of major banks, lenders and sophisticated investors – to need bankruptcy protection.