Here’s a rewritten version of the Reuters article with fresh structure and phrasing:
Jefferies Q2 Profit Takes a Hit as Equity Underwriting Slumps, But Deal Outlook Improves**
Earnings slide; advisory revenue shines
Jefferies Financial Group reported a nearly 40% year-over-year drop in Q2 net income, slumping to \$88 million (40¢ per share), underperforming analyst expectations of 44¢. The decline stemmed largely from a steep falloff in equity underwriting revenue, which halved to \$122.4 million amid heightened market volatility through the early part of the March–May quarter ([reuters.com][1]).
Advisory fees surge among few bright spots
In contrast, advisory revenue surged 61%, reaching \$457.9 million, driven by market share gains. Debt underwriting remained steady, while overall capital markets revenue dipped slightly by 0.4% to $704.2 million due to weaker fixed‑income results.
Policy noise delayed deals; sentiment has since improved.
Jefferies attributed the slow start to global deal‑making to uncertainty from U.S. policy choices and geopolitical tensions in March and April. However, market sentiment improved in May, according to President Brian Friedman, with diminishing policy risks—and increased transaction discussions ([reuters.com][1]). He noted clients are becoming more comfortable “with an expectation that there won’t be material negative impacts” from U.S. or geopolitical developments ([reuters.com][1]).
Baking in rebound for late 2025
Backlogs are growing, and management expects a rebound in activity during Q3 and Q4 as visibility improves ([reuters.com][1]).
Indicator for industry peers
Since Jefferies reports early, its results provide a bellwether for upcoming earnings from larger players like JPMorgan, Goldman Sachs, and Morgan Stanley. Shares slid nearly 2% in after‑hours trading following the release.
Bottom Line:
Jefferies’ Q2 took a hit from a sharp decline in equity underwriting—reflecting broader market caution—but strong advisory growth and rising deal activity signal potential recovery in the second half of 2025.
NYC Journals 