Raymond James Financial Inc. (RJF) FY2025 10-K and Q3 FY2026 10-Q Summary

Business

From the fiscal 2025 Form 10-K, accession 0000720005-25-000093.

Raymond James is a diversified financial services firm built around a large wealth management business. Through roughly 8,900 employee and independent financial advisors, it provides financial planning, investment advisory and brokerage services to individuals. It also runs an investment bank and institutional brokerage, an asset manager, and two banks that lend mainly against clients' securities and homes. Most of its revenue comes from asset-based fees on client assets held in fee-based accounts. Interest income and sweep fees earned on client cash and bank loans add a second, rate-sensitive source of revenue, and underwriting, M&A advisory and trading commissions add a third, more cyclical one. The firm operates mainly in the U.S., with smaller operations in Canada, the UK and other parts of Europe. Fiscal 2025 net revenues were $14.07 billion. RJF is a bank holding company and financial holding company supervised by the Federal Reserve. Paul M. Shoukry has been Chief Executive Officer since February 2025, and Paul C. Reilly is Executive Chair.

The firm reports five segments:

• Private Client Group (PCG): fiscal 2025 net revenues $10.18 billion. This is the core wealth management business. At September 30, 2025, client assets under administration (AUA) were $1.67 trillion, of which $1.01 trillion was in fee-based accounts. The firm had 8,943 affiliated financial advisors. Advisors can affiliate in several ways, which the firm markets as "AdvisorChoice":
  • as employees in traditional branches;
  • as independent contractors, who bear their own costs and receive a higher payout;
  • through the RIA and Custody Services (RCS) division, which provides custody, trade execution and other services to third-party registered investment advisers and broker-dealers. RCS held $217.3 billion of AUA, and its advisors are not counted in the advisor total.

PCG earns asset management and administrative fees on fee-based accounts, commissions and trailing fees on brokerage, mutual fund, annuity and insurance products, and net interest income on margin loans and client cash. It also earns servicing fees from banks that take client cash swept through the Raymond James Bank Deposit Program (RJBDP), a multi-bank sweep program. Those fees rise and fall with client cash balances and short-term interest rates.

• Capital Markets: fiscal 2025 net revenues $1.77 billion. This segment provides M&A and advisory services in the U.S., Canada and Europe, equity and debt underwriting (including public finance for state and local governments and non-profits), and institutional fixed income and equity brokerage, with market-making in debt instruments. It also has an equity research platform focused on U.S. and Canadian companies. Its affordable housing investments business syndicates and manages low-income housing tax credit funds.
• Asset Management: fiscal 2025 net revenues $1.19 billion. Fees are generally a percentage of fee-billable financial assets under management (AUM). The segment includes:
  • Asset Management Services, which oversees managed programs for PCG clients;
  • Raymond James Investment Management, a multi-boutique manager of retail, institutional and proprietary mutual fund assets;
  • two trust companies.

About 75% of managed-program fees are billed on balances at the start of each quarter, so market moves show up in revenue a quarter later.

• Bank: fiscal 2025 net revenues $1.78 billion; total assets $65.26 billion at September 30, 2025. This segment comprises Raymond James Bank (Florida-chartered) and TriState Capital Bank (Pennsylvania-chartered). Securities-based loans (SBL) and residential mortgages made up 46% of segment assets. Corporate and tax-exempt loans made up 33%, and 66% of those were U.S. or Canadian syndicated loans. The rest is mostly an available-for-sale portfolio of agency mortgage-backed securities and Treasuries. Funding comes largely from PCG client cash swept into the banks through the RJBDP and from the Enhanced Savings Program (ESP), a high-yield FDIC-insured deposit product for PCG clients.
• Other. This segment holds interest income on corporate cash, private equity investments (mostly in third-party funds), and unallocated corporate costs. These include interest on the public debt, certain legal and regulatory provisions, and certain acquisition-related expenses.

Interest-rate sensitivity is central to earnings. The 10-K states that rising short-term rates have historically increased the firm's net earnings and that falling rates are expected to generally reduce them, though there may be offsetting benefits elsewhere. Falling rates cut both net interest income and the RJBDP fees earned from third-party banks. The size of the effect depends on balances, asset yields and the rates paid to clients on their cash. For fiscal 2026, the 10-K said it expected combined net interest income and RJBDP fees from third-party banks to be hurt by the Fed's 25-basis-point cuts in September and October 2025.

People and competition. At September 30, 2025, the firm had about 19,500 associates, including 3,878 employee financial advisors, plus 5,065 independent advisors. Its main operations are in St. Petersburg, Florida, with other corporate offices in Southfield, Michigan and Memphis, Tennessee, and a primary data center near Denver, Colorado. It competes with larger securities firms affiliated with major banks and insurers, discount and online brokers, and fintechs. The 10-K says the most important competitive factor is the ability to recruit and retain financial advisors, bankers and portfolio managers in a labor market where rivals offer guaranteed contracts and upfront payments.

Risk factors

From the fiscal 2025 Form 10-K, accession 0000720005-25-000093. The June 30, 2026 Form 10-Q (accession 0000720005-26-000070) reports no material changes to these risk factors.

The risks below are the most specific to Raymond James's model. Several of them tie back to its dependence on client cash and advisor relationships.

• Client cash and deposit funding. The Bank segment's growth relies heavily on PCG client cash swept through the RJBDP. A drop in sweep balances, a shift in how cash is allocated between the firm's banks and third-party banks, or clients moving cash to money funds or fixed income would force the firm onto costlier funding such as the ESP and higher-yield sweep offerings. The same changes would also cut fees from third-party banks. The ESP runs through a reciprocal deposit program. If third-party capacity shrinks, FDIC coverage could fall and clients could withdraw uninsured deposits. Reciprocal balances above $5 billion count as brokered deposits, which bring higher FDIC costs and more regulatory scrutiny. Competitive pressure or rule changes on sweep fees could also force the firm to pay clients more.
• Interest rates and markets. Lower short-term rates are expected to generally reduce net earnings through net interest income and RJBDP fees. Higher rates reduce the value of the available-for-sale portfolio and fixed income trading inventory.
• Fee revenue tied to asset values. As clients keep moving to fee-based accounts, more revenue moves directly with markets. Asset management fees also face competition, contract renegotiation and the shift to lower-fee passive products.
• Advisor recruiting and retention. Advisors keep leaving traditional firms for independent RIAs, some backed by private equity, and recruiting has become highly competitive. Departures, or retiring advisors selling their practices to outside firms, reduce reported AUA. Recruiting loans and incentives weigh on earnings. If competitors withdrew from the industry's Protocol for Broker Recruiting, recruiting could get harder and claims could rise.
• Litigation and regulatory proceedings. The firm is regularly named in lawsuits and arbitrations, including suits by clients of the independent RIAs and broker-dealers it clears and custodies for. Defense costs are rising. The cash sweep matters described under Current quarter are an example.
• Cybersecurity. The firm faces daily malicious activity, including AI-enabled phishing and attempts to impersonate clients. It has not had a material cyber loss. Its risks are higher while acquired businesses' systems are being migrated, and it depends on third-party and cloud providers. Insurance may not cover all losses.
• Credit risk. The firm lends through SBL and commercial and industrial (C&I), commercial real estate (CRE), REIT, residential mortgage and tax-exempt loans, and offers margin lending. Losses could follow real estate declines, economic downturns or concentrated exposures. TriState Capital Bank relies on third parties to monitor and control the securities collateral behind its SBL book.
• Liquidity and holding-company structure. RJF depends on dividends from its broker-dealer and bank subsidiaries, which net capital rules and regulators can restrict. Its stock is effectively subordinated to all subsidiary liabilities.
• Growth toward regulatory thresholds. If average total consolidated assets reach $100 billion over four consecutive quarters, RJF becomes a Category IV bank holding company. That would bring stress capital buffer requirements, supervisory stress testing, and liquidity buffer requirements. A July 2023 proposal would also remove the AOCI opt-out election for such firms, which could reduce regulatory capital ratios. Bank subsidiaries averaging $50 billion or more in assets face resolution planning requirements.
• Acquisitions and integration. Acquired firms may not deliver the expected revenue, retention or cost savings. Acquisitions also bring added regulatory and integration burdens.
• Competition, technology and AI. Fintechs and non-traditional firms are lowering barriers to entry, and institutional trading margins keep compressing. The firm's own use of AI brings model, data and security risks.
• Credit ratings. A downgrade would raise borrowing costs and the fee on the $1 billion revolving credit facility. A drop below investment grade could trigger collateral calls on derivatives and withdrawals of uninsured deposits.
• Weather and concentration of operations. The main operations in St. Petersburg, Florida are exposed to hurricanes. The firm self-insures errors-and-omissions liability and employee healthcare.

Management's discussion, fiscal 2025

From the fiscal 2025 Form 10-K, accession 0000720005-25-000093.

Results. In fiscal 2025, net revenues rose 10% to $14.07 billion and pre-tax income rose 3% to $2.71 billion. Net income available to common shareholders rose 3% to $2.13 billion, and diluted EPS rose 6% to $10.30. Return on common equity (ROCE) fell to 17.7% from 18.9%, and return on tangible common equity (ROTCE) fell to 20.6% from 22.6%. Adjusted net income available to common shareholders was $2.21 billion and adjusted diluted EPS was $10.66. These figures exclude $75 million of after-tax expenses tied to acquisitions completed in earlier years.

Drivers. Revenue growth came mainly from asset management and related administrative fees. Fees were billed on larger fee-based balances, reflecting market appreciation and net new assets. Investment banking rose sharply on better market conditions, and brokerage rose on higher client activity. Partly offsetting these gains, combined net interest income and RJBDP fees from third-party banks fell 4% to $2.63 billion from $2.74 billion. Lower short-term rates and smaller balances swept to third-party banks more than offset growth in interest-earning assets.

Compensation expense rose 10%, and the compensation ratio rose to 64.5% from 64.1%. Revenue shifted toward compensable fees and away from interest-related revenue, which carries little direct compensation. Non-compensation expenses rose 16%. Fiscal 2025 included a net provision for legal and regulatory matters, including a $58 million increase for the settlement of a matter involving bond underwritings for one issuer sold to institutional investors between 2013 and 2015, whereas fiscal 2024 had a net reserve release. Technology spending, sub-advisory fees and recruiting-related business development also increased. The effective tax rate was 21.3%, down from 21.8%.

Segments in fiscal 2025.

Balance sheet, capital and funding. Total assets were $88.23 billion at September 30, 2025, up 6%, as net bank loans grew $5.57 billion. Tier 1 leverage was 13.1% and total capital 24.1%. Funding actions during the year:

• On September 11, 2025, the firm issued $1.5 billion of senior notes: $650 million of 4.90% notes due 2035 and $850 million of 5.65% notes due 2055.
• It amended its revolving credit facility, raising capacity to $1 billion and extending it to September 2030.
• On August 15, 2025, it redeemed $98 million of subordinated notes.

RJF corporate cash was $3.67 billion. During fiscal 2025 the firm repurchased 7.4 million shares for $1.1 billion, at an average price of $148.

Current quarter, fiscal third quarter 2026 (three months ended June 30, 2026)

From the Form 10-Q for the quarter ended June 30, 2026, accession 0000720005-26-000070, unless otherwise noted. Results were first announced in the July 22, 2026 earnings release, Form 8-K accession 0000720005-26-000066.

Headline results. Net revenues rose 16% from the prior-year quarter to $3.93 billion. Pre-tax income rose 33% to $750 million, and net income available to common shareholders rose 37% to $595 million. Diluted EPS was $3.01, up 42%. ROCE was 18.8%, up from 14.3%, and ROTCE was 22.6%, up from 16.7%. Excluding $25 million of after-tax acquisition-related expenses, adjusted net income available to common shareholders was $620 million (up 38%) and adjusted diluted EPS was $3.14 (up 44%).

The prior-year quarter included the $58 million legal settlement expense in Capital Markets.

What drove the quarter.

• Revenue. Asset management and related administrative fees grew with PCG fee-based assets, which rose on market appreciation and net new assets from advisor recruiting and retention. Investment banking rose on M&A advisory and debt underwriting, and PCG brokerage revenues increased.
• Compensation. Compensation expense rose 17%, and the compensation ratio rose to 65.7% from 64.8%. Commissions grew with fee revenue, while interest-related PCG revenues fell. The newly acquired Clark Capital and GreensLedge also added compensation costs.
• Non-compensation expenses. These fell 5%, for two reasons. The $58 million settlement did not recur, and the Bank recorded a $26 million benefit for credit losses against a $15 million provision a year earlier. Higher professional fees, including external legal fees, and acquisition-related costs partly offset these declines.
• Tax. The effective tax rate was 20.7%, down from 22.6%, because of larger non-taxable gains on corporate-owned life insurance.

Interest rates. The Fed has cut its target range by 50 basis points so far in fiscal 2026, reaching 3.50% to 3.75% by the end of the first fiscal quarter, where it stayed through the third. Combined net interest income and RJBDP fees from third-party banks was $658 million, slightly above the prior-year quarter. Loan growth in the Bank segment, particularly SBL and residential mortgages, offset three drags:

• lower short-term rates;
• interest on the $1.5 billion of September 2025 senior notes, net of income on the reinvested proceeds;
• lower balances swept to third-party banks.

Segments, quarter ended June 30, 2026.

Key metrics.

• PCG assets. PCG AUA and fee-based assets were up 18% and 22% from a year earlier, and 9% and 11% from March 31, 2026. RCS assets reached $251.3 billion.
• Net new assets. The earnings release reports domestic PCG net new assets of $21.7 billion for the quarter, a 5.5% annualized growth rate, and 6.6% annualized for the first nine months.
• Client cash. Clients' domestic cash sweep and ESP balances rose 7% from a year earlier and 2% from March 31, 2026, mainly from higher ESP balances. The release puts the total at $58.8 billion.
• Bank loans. Net bank loans reached a record $56.2 billion, up 13%. Within that, SBL grew 34% to $24.8 billion (earnings release).

Nine months ended June 30, 2026.

• Net revenues rose 11% to $11.52 billion and pre-tax income rose 12% to $2.21 billion. Net income available to common shareholders rose 11% to $1.70 billion. Diluted EPS rose 16% to $8.52, and adjusted diluted EPS rose 17% to $8.83.
• PCG net revenues rose 12% to $8.42 billion, but PCG pre-tax income fell 2% to $1.28 billion. Lower interest-related revenue shifted the mix toward compensable revenue, and the firm continued to invest in growth.
• Bank segment pre-tax income rose 52% to $545 million, and its net interest margin improved to 2.78% from 2.67%.
• The year-to-date effective tax rate was 23.1%.

Acquisitions completed in fiscal 2026. Both deals were funded with cash on hand. Neither the 10-Q nor the related 8-Ks disclose a headline purchase price for either deal.

• GreensLedge Holdings LLC. A boutique investment bank specializing in structured products advisory and placement. RJF acquired a majority stake near the end of the second fiscal quarter, and GreensLedge has been part of Capital Markets since March 1, 2026. The deal added $131 million of goodwill and $31 million of intangible assets.
• Clark Capital Management Group, Inc. A Philadelphia-based asset manager specializing in wealth-focused solutions. RJF announced the agreement on January 15, 2026 (Form 8-K, accession 0000720005-26-000028) and bought all outstanding shares on April 30, 2026. At closing, Clark Capital brought about $36 billion of financial assets under management and $11 billion of non-discretionary assets, $47 billion in total. It keeps its brand as a boutique within Raymond James Investment Management and is reported in Asset Management. Preliminary purchase accounting recognized about $305 million of goodwill and about $330 million of intangible assets.
• Combined terms. Cash paid for acquisitions, net of cash acquired, totaled $484 million in the nine months. Part of the price for each deal depends on revenue-based targets and is payable over five to seven years. Total contingent consideration is capped at $275 million, and its fair value was $180 million at June 30, 2026.

Balance sheet and capital. Total assets were $94.24 billion at June 30, 2026, up $6.01 billion (7%) from September 30, 2025:

• Net bank loans rose $4.7 billion.
• Goodwill and intangibles rose $761 million, mainly from the two acquisitions.
• Bank deposits rose $4.42 billion.
• Cash and cash equivalents fell $1.41 billion to $9.98 billion, reflecting loan growth, buybacks and the acquisitions.

Tier 1 leverage was 11.7% and total capital 22.5%, both well above requirements. RJF corporate cash was $2.52 billion.

Shareholder returns. In December 2025 the Board authorized $2 billion of share repurchases. The firm bought back $400 million of stock in the quarter at an average price of $152 and $1.2 billion over nine months, leaving $1.1 billion available. The quarterly dividend was $0.54 per share, up from $0.50. On January 2, 2026, all Series B preferred stock was redeemed for $81 million.

Credit. The 10-Q describes the loan book as diversified, with low nonperforming assets relative to Bank segment assets. Interest-only adjustable-rate residential mortgages totaled $3.41 billion, about 30% of the residential portfolio. Under a moderate-recession downside scenario, the modeled allowance for credit losses would be about $150 million higher.

Regulatory and legal matters.

• SEC inquiry into cash sweeps. Since August 2024, the SEC's Division of Enforcement has been requesting information on the firm's cash sweep practices for advisory clients, and the firm is cooperating.
• Cash sweep class actions. Three putative class actions over rates paid on sweep balances were filed in 2024 and consolidated, and one plaintiff's claims were voluntarily dismissed in July 2025. On March 27, 2026, the court dismissed some of the claims. Plaintiffs moved for class certification on May 21, 2026. The firm says it will keep defending the case vigorously.
• UK restriction lifted. A 2023 voluntary restriction agreed with the UK Financial Conduct Authority barred Raymond James Investment Services Limited from onboarding new branches or advisors without prior consent. It was lifted in January 2026.
• Reasonably possible losses. For matters where an estimate is possible, the upper end of reasonably possible losses was about $10 million above existing accruals.

Outlook. In the earnings release, CEO Paul Shoukry said the firm enters the fiscal fourth quarter "with significant momentum," citing strong business drivers, robust advisor recruiting, strong investment banking pipelines, and ample capital and liquidity.

At its May 27, 2026 Analyst & Investor Day (Form 8-K, accession 0000720005-26-000060), management presented these non-GAAP financial targets:

• adjusted compensation ratio of about 65%;
• adjusted pre-tax margin of about 20%;
• adjusted ROCE of 17% or more;
• adjusted ROTCE of 20% or more.

The targets assume current equity markets and short-term rates, mid-single-digit investment banking revenue growth, recruiting costs at the current pace, steady buybacks, and a 25% full-year tax rate.

Subsequent events

Events after June 30, 2026, from the Form 10-Q (accession 0000720005-26-000070) and Forms 8-K filed through September 23, 2026.

The 10-Q does not include a separate subsequent-events note. Neither the 10-Q nor the 8-Ks filed after the quarter through September 23, 2026 disclose any acquisition, divestiture or new debt financing after June 30, 2026. The post-quarter disclosures are:

• Underwriting commitments. Four underwriting commitments open at June 30, 2026 were later settled in open market transactions with no losses (10-Q, Note 17).
• Cash sweep litigation. On July 16, 2026, the federal district court allowed two named plaintiffs in the consolidated cash sweep case to drop their claims without prejudice. The case remains pending with two named plaintiffs (10-Q, Regulatory).
• Monthly operating data. As of July 31, 2026, client AUA was a record $1.93 trillion, up 17% from a year earlier (Form 8-K, accession 0000720005-26-000073). As of August 31, 2026 (Form 8-K, accession 0000720005-26-000077):

The July release said client cash fell 4% in July as clients paid quarterly fees.

• Dividend. On August 26, 2026, the Board declared a quarterly dividend of $0.54 per share, payable October 15, 2026 to shareholders of record on October 1, 2026 (Form 8-K, accession 0000720005-26-000075).
• New director. On August 27, 2026, the Board appointed William W. Weatherford, managing partner of Weatherford Capital and former Speaker of the Florida House of Representatives, as an independent director effective December 15, 2026. He will serve on the Audit and Risk Committees, and the Board grows from twelve to thirteen members (Form 8-K, accession 0000720005-26-000075).