01—Abstract
Summary
Summary of the 10-Q filed August 6, 2025. Cited figures are marked; the original filing is the authoritative source.
Raymond James Financial, Inc. reported fiscal third-quarter 2025 results (quarter ended June 30, 2025) with net revenues of $3.40 billiona, up 5% from the prior-year quarter, while pre-tax income fell 13% to $563 million.
Net income available to common shareholders was $435 millionb and diluted EPS was $2.12, down 8% from $2.31. The decline was driven largely by a $58 million expense increase tied to the settlement of a legal matter related to bond underwritings for a specific issuer, which pushed non-compensation expenses up 28%. For the nine months ended June 30, 2025, net revenues rose 10% to $10.34 billion, pre-tax income rose 5% to $1.98 billion, and diluted EPS was $7.35, up 7%.
Growth was led by asset management and related administrative fees, which reached $1.73 billionc in the quarter, and by investment banking, which rose 16% to $212 million in the quarter and increased significantly year to date. Offsetting these gains, combined net interest income and RJBDP fees from third-party banks fell 2% in the quarter to $656 million as short-term rates declined. Bank loans, net grew to $49.84 billion from $45.99 billion at September 30, 2024, while the bank deposit base rose to $57.25 billion.
Capital remained strong, with a tier 1 leverage ratio of 13.1% and total capital ratio of 24.2% at RJF, and the company repurchased 3.3 million shares for $451 milliond in the quarter. The filing also discloses an SEC Division of Enforcement inquiry, beginning in August 2024, into cash sweep program practices, along with putative class actions over client cash sweep rates; one of the three consolidated lawsuits was voluntarily dismissed on July 24, 2025.
The company stated it intends to vigorously defend the remaining claims. Management also noted it expects to redeem its $98 million of subordinated notes on August 15, 2025, with no material impact expected on fiscal fourth-quarter results.
02—Key points
Key Highlights
- Net revenues of $3.40 billion for the quarter, up 5%; nine-month net revenues of $10.34 billion, up 10%.
- Pre-tax income of $563 million for the quarter, down 13%, reflecting a $58 million expense increase from a legal matter settlement tied to bond underwritings.
- Diluted EPS of $2.12 for the quarter (down 8%) and $7.35 for nine months (up 7%); adjusted diluted EPS was $2.18 for the quarter.
- Asset management and related administrative fees rose to $1.73 billion in the quarter, driven by higher fee-based client assets; PCG assets in fee-based accounts reached $943.9 billion, up 15% year over year.
- Combined net interest income and RJBDP fees from third-party banks fell 2% to $656 million in the quarter due to lower short-term interest rates.
- Bank loans, net increased to $49.84 billion from $45.99 billion at September 30, 2024; bank deposits rose to $57.25 billion.
- Capital ratios remained well above requirements, with RJF tier 1 leverage at 13.1% and total capital at 24.2%; $749 million remained under the share repurchase authorization.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed August 6, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $3.84B$3.76B | +2.1% |
| Net Income | $436.00M$492.00M | −11.4% |
| EPS (Basic) | $2.16$2.37 | −8.9% |
| EPS (Diluted) | $2.12$2.31 | −8.2% |
| Shares Outstanding (Basic) | 201.20M206.80M | −2.7% |
| Shares Outstanding (Diluted) | 205.50M212.30M | −3.2% |
05—Questions
Frequently Asked Questions
What drove the decline in pre-tax income this quarter despite higher revenues?
Non-compensation expenses rose 28% to $633 million, primarily due to a $58 million expense increase tied to the settlement of a legal matter related to bond underwritings for a specific issuer sold to institutional investors between 2013 and 2015. Higher bank loan provisions for credit losses of $15 million, compared with a $10 million benefit in the prior-year quarter, also contributed.
What is the status of the SEC inquiry and lawsuits related to cash sweep programs?
The SEC's Division of Enforcement requested information beginning in August 2024 regarding cash sweep program practices for investment advisory clients, and the firm is cooperating. Three putative class actions were filed in August and December 2024 over rates paid on cash sweep balances; they were consolidated, and on July 24, 2025, one plaintiff voluntarily dismissed all claims without prejudice. The firm intends to vigorously defend against the remaining claims.
How is the balance sheet and capital position trending?
Total assets were $84.82 billion at June 30, 2025, up from $82.99 billion at September 30, 2024, while total shareholders' equity rose to $12.26 billion. RJF's common equity tier 1 capital was $10.88 billion, and the tier 1 leverage ratio was 13.1%. The company repurchased 5.3 million shares for $751 million in the first nine months of fiscal 2025.
What drove the growth in investment banking revenues?
Investment banking revenues increased 16% to $212 million in the quarter, primarily from higher mergers and acquisitions and advisory revenues, as well as increased underwriting revenues. Year to date, investment banking revenues rose to $753 million from $543 million, primarily due to more favorable market conditions and larger transactions.
06—Continue