Jefferies Financial Group reported a sharp earnings decline for its fiscal second quarter, with profit hurt by a slowdown in equity and debt underwriting amid continued economic and geopolitical uncertainty. Net income fell about 40% from a year earlier to $88 million, or $0.40 a share, missing the $0.44 consensus compiled by LSEG. Revenue edged down to $1.63 billion. The drop was driven by a halving of equity underwriting fees to $122.4 million, offsetting a 61% surge in mergers-and-acquisitions advisory revenue to $457.9 million as the bank gained share. Trading revenue was broadly flat at $704.2 million, with equities strength weighed down by weaker fixed-income performance. Chief Executive Officer Rich Handler and President Brian Friedman said the firm’s deal backlog and client engagement have improved since May, leaving them "increasingly optimistic" that activity will rebound in the second half of 2025 as macro-economic visibility improves.