The firm has successfully expanded gross margins from 84.9% in 2024Q2 to 90.5% by 2026Q2, though operating income growth remains constrained by SG&A expenses scaling in lockstep with revenue.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 | Sep'97 | Sep'96 |
|---|
| Sales/Revenue | 16.35B | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 14.58B | 14.03B | 12.59B | 11.34B | 10.75B | 9.66B | 7.66B | 7.62B | 7.16B | 6.28B | 5.32B | 5.08B | 4.76B | 4.41B | 3.71B | 3.19B | 2.84B | 2.38B | 2.76B | 2.61B | 2.34B | 2.04B | 1.78B | 1.45B | 1.44B | 1.44B | 1.47B | 1.08B | 951.9M | 826.3M | 638.3M |
| Gross Margin % | 89.16% | 88.16% | 85.44% | 88.28% | 96.37% | 98.79% | 94.91% | 96.15% | 96.99% | 97.41% | 97.36% | 97.51% | 97.59% | 97.5% | 96.94% | 96.98% | 95.19% | 91.3% | 86.05% | 83.93% | 88.73% | 94.54% | 97.35% | 96.95% | 94.97% | 86.33% | 86.54% | 87.7% | 87.9% | 89.08% | 88.43% |
| Gross Profit Growth % | - | 11.39% | 11.1% | 5.44% | 11.27% | 26.2% | 0.42% | 6.45% | 14.06% | 18.09% | 4.71% | 6.78% | 7.95% | 18.68% | 16.35% | 12.49% | 19.36% | -13.84% | 5.67% | 11.72% | 14.56% | 14.48% | 22.68% | 0.75% | -0.11% | -1.86% | 36.03% | 13.52% | 15.2% | 29.45% | 30.48% |
| Operating Expenses | 11.82B | 9.47B | 9.95B | 9.06B | 8.73B | 7.87B | 6.6B | 6.25B | 5.85B | 5.35B | 4.51B | 4.26B | 4.04B | 3.81B | 3.24B | 2.74B | 2.48B | 2.14B | 2.37B | 2.22B | 1.99B | 1.79B | 1.58B | 1.31B | 1.31B | 1.29B | 1.27B | 943.1M | 801.7M | 665.8M | 529.8M |
| OpEx % of Revenue | - | 59.5% | 67.51% | 70.52% | 78.24% | 80.48% | 81.86% | 78.81% | 79.24% | 83.06% | 82.49% | 81.87% | 82.89% | 84.36% | 84.72% | 83.28% | 83.24% | 82.22% | 73.98% | 71.32% | 75.74% | 83.04% | 86.19% | 87.72% | 86.3% | 76.91% | 74.49% | 76.54% | 74.03% | 71.78% | 73.4% |
| Selling, General & Admin | 10.73B | 7.24B | 8.21B | 7.3B | 7.33B | 6.58B | 5.99B | 5.65B | 5.33B | 4.68B | 4.05B | 3.95B | 3.71B | 3.44B | 2.93B | 2.5B | 2.14B | 1.93B | 2.21B | 1.77B | 1.6B | 1.43B | 1.27B | 1.03B | 1.02B | 1.02B | 1.01B | 754.7M | 648.2M | 537.4M | 423.9M |
| SG&A % of Revenue | - | 45.51% | 55.72% | 56.84% | 65.7% | 67.32% | 74.28% | 71.31% | 72.16% | 72.6% | 74.21% | 75.87% | 76.03% | 76.04% | 76.64% | 76.09% | 71.9% | 74.17% | 68.89% | 56.81% | 60.81% | 66.25% | 69.59% | 69.09% | 67.36% | 61.31% | 59.41% | 61.25% | 59.86% | 57.93% | 58.73% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 2.76B | 4.56B | 2.64B | 2.28B | 2.02B | 1.79B | 1.05B | 1.38B | 1.31B | 925M | 811.94M | 814.61M | 715.95M | 593.91M | 467.92M | 450.75M | 356.14M | 236.4M | 386.85M | 392.22M | 342.07M | 247.97M | 204.12M | 138.28M | 131.52M | 157.47M | 204.68M | 137.5M | 150.2M | 160.5M | 108.5M |
| Operating Margin % | 16.86% | 28.66% | 17.93% | 17.76% | 18.12% | 18.31% | 13.04% | 17.34% | 17.75% | 14.35% | 14.87% | 15.64% | 14.69% | 13.14% | 12.22% | 13.7% | 11.95% | 9.08% | 12.07% | 12.61% | 12.99% | 11.5% | 11.16% | 9.23% | 8.67% | 9.42% | 12.05% | 11.16% | 13.87% | 17.3% | 15.03% |
| Operating Income Growth % | - | 72.57% | 15.92% | 12.76% | 12.9% | 70.25% | -23.49% | 4.88% | 41.73% | 13.92% | -0.33% | 13.78% | 20.55% | 26.93% | 3.81% | 26.56% | 50.65% | -38.89% | -1.37% | 14.66% | 37.95% | 21.48% | 47.62% | 5.14% | -16.48% | -23.07% | 48.86% | -8.46% | -6.42% | 47.93% | 45.83% |
| EBITDA | 2.86B | 4.76B | 2.82B | 2.44B | 2.17B | 1.93B | 1.17B | 1.49B | 1.41B | 1.01B | 884.33M | 882.93M | 780.11M | 660.27M | 519.37M | 491.08M | 395.67M | 270.96M | 414.84M | 414.86M | 361.24M | 265.75M | 220.95M | 156.62M | 154.33M | 188.73M | 228.53M | 157.5M | 167M | 173.8M | 119.8M |
| EBITDA Margin % | 17.48% | 29.89% | 19.14% | 19.04% | 19.42% | 19.68% | 14.52% | 18.75% | 19.1% | 15.65% | 16.19% | 16.96% | 16.01% | 14.61% | 13.56% | 14.93% | 13.28% | 10.41% | 12.94% | 13.34% | 13.72% | 12.32% | 12.08% | 10.46% | 10.17% | 11.29% | 13.45% | 12.78% | 15.42% | 18.74% | 16.6% |
| EBITDA Growth % | -5.05% | 68.53% | 15.42% | 12.83% | 12.57% | 64.39% | -21.25% | 5.46% | 39.74% | 14.1% | 0.16% | 13.18% | 18.15% | 27.13% | 5.76% | 24.11% | 46.02% | -34.68% | -0% | 14.84% | 35.93% | 20.28% | 41.07% | 1.48% | -18.23% | -17.42% | 45.1% | -5.69% | -3.91% | 45.08% | 42.45% |
| D&A (Non-Cash Add-back) | 101M | 195M | 179M | 165M | 145M | 134M | 119M | 112M | 99M | 84M | 72.38M | 68.31M | 64.16M | 66.36M | 51.45M | 40.34M | 39.53M | 34.56M | 27.98M | 22.63M | 19.17M | 17.78M | 16.83M | 18.34M | 22.81M | 31.26M | 23.85M | 20M | 16.8M | 13.3M | 11.3M |
| EBIT | 2.76B | 4.56B | 2.64B | 2.28B | 2.02B | 1.79B | 1.05B | 1.38B | 1.31B | 925M | 811.94M | 814.61M | 715.95M | 593.91M | 467.92M | 450.75M | 356.14M | 236.4M | 386.85M | 392.22M | 342.07M | 247.97M | 204.12M | 138.28M | 131.52M | 157.47M | 204.68M | 137.5M | 150.2M | 160.5M | 108.5M |
| Net Interest Income | 2.22B | 2.15B | 2.13B | 2.38B | 1.2B | 673M | 822M | 998M | 842M | 648M | 524.34M | 437.21M | 376.8M | 363.23M | 361.89M | 326.49M | 308.04M | 386.63M | 331.83M | 227.33M | 173.31M | 127.77M | 86.25M | 82.1M | 83.47M | 106.04M | 117.04M | 78.3M | 71.3M | 54.4M | 43M |
| Interest Income | 3.97B | 3.99B | 4.23B | 3.75B | 1.51B | 823M | 1B | 1.28B | 1.04B | 802M | 640.4M | 543.28M | 480.89M | 473.6M | 453.26M | 392.32M | 370.89M | 443.58M | 724.06M | 726.99M | 469.98M | 245.56M | 134.76M | 127.71M | 159.8M | 334.39M | 345.69M | 229.8M | 202.3M | 155.7M | 126.5M |
| Interest Expense | 1.75B | 1.85B | 2.1B | 1.37B | 305M | 150M | 178M | 283M | 202M | 154M | 116.06M | 106.07M | 104.09M | 110.37M | 91.37M | 65.83M | 62.85M | 56.95M | 392.23M | 499.66M | 296.67M | 117.79M | 48.52M | 45.61M | 76.33M | 228.35M | 228.65M | 151.5M | 131M | 101.3M | 83.5M |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 2.76B | 2.71B | 2.64B | 2.28B | 2.02B | 1.79B | 1.05B | 1.38B | 1.31B | 925M | 811.94M | 814.61M | 715.95M | 593.91M | 467.92M | 450.75M | 356.14M | 236.4M | 386.85M | 392.22M | 342.07M | 247.97M | 204.12M | 138.28M | 131.52M | 157.47M | 204.68M | 137.5M | 150.2M | 160.5M | 108.5M |
| Pretax Margin % | 16.86% | 17.06% | 17.93% | 17.76% | 18.12% | 18.31% | 13.04% | 17.34% | 17.75% | 14.35% | 14.87% | 15.64% | 14.69% | 13.14% | 12.22% | 13.7% | 11.95% | 9.08% | 12.07% | 12.61% | 12.99% | 11.5% | 11.16% | 9.23% | 8.67% | 9.42% | 12.05% | 11.16% | 13.87% | 17.3% | 15.03% |
| Income Tax | 610M | 579M | 575M | 541M | 513M | 388M | 234M | 341M | 454M | 289M | 271.29M | 296.03M | 267.8M | 197.03M | 175.66M | 182.89M | 133.63M | 96.02M | 151.78M | 141.79M | 127.72M | 96.92M | 76.55M | 51.96M | 52.21M | 61.06M | 79.48M | 52.4M | 57.5M | 61.6M | 42.5M |
| Effective Tax Rate % | 22.13% | 21.33% | 21.76% | 23.73% | 25.37% | 21.66% | 22.24% | 24.8% | 34.63% | 31.24% | 33.41% | 36.34% | 37.4% | 33.18% | 37.54% | 40.58% | 37.52% | 40.62% | 39.23% | 36.15% | 37.34% | 39.09% | 37.5% | 37.58% | 39.7% | 38.77% | 38.83% | 38.11% | 38.28% | 38.38% | 39.17% |
| Net Income | 2.15B | 2.13B | 2.07B | 1.74B | 1.51B | 1.4B | 818M | 1.03B | 857M | 636M | 529.35M | 502.14M | 480.25M | 367.15M | 295.87M | 278.35M | 228.28M | 152.75M | 235.08M | 250.43M | 214.34M | 151.05M | 127.58M | 86.32M | 79.3M | 96.41M | 125.19M | 85.1M | 92.7M | 98.9M | 66M |
| Net Margin % | 13.13% | 13.42% | 14.03% | 13.54% | 13.53% | 14.35% | 10.14% | 13.04% | 11.61% | 9.87% | 9.69% | 9.64% | 9.85% | 8.13% | 7.73% | 8.46% | 7.66% | 5.87% | 7.33% | 8.05% | 8.14% | 7% | 6.97% | 5.76% | 5.23% | 5.77% | 7.37% | 6.91% | 8.56% | 10.66% | 9.14% |
| Net Income Growth % | -1.92% | 3.24% | 18.92% | 15.24% | 7.56% | 71.52% | -20.89% | 20.65% | 34.75% | 20.15% | 5.42% | 4.56% | 30.8% | 24.09% | 6.29% | 21.93% | 49.45% | -35.02% | -6.13% | 16.84% | 41.91% | 18.4% | 47.8% | 8.84% | -17.74% | -22.99% | 47.12% | -8.2% | -6.27% | 49.85% | 43.17% |
| Net Income (Continuing) | 2.15B | 2.13B | 2.07B | 1.74B | 1.51B | 1.4B | 818M | 1.03B | 857M | 636M | 540.65M | 518.58M | 448.15M | 396.88M | 292.26M | 267.85M | 222.52M | 140.38M | 235.08M | 250.43M | 214.34M | 151.05M | 127.58M | 86.32M | 79.3M | 96.41M | 125.19M | 85.1M | 92.7M | 98.9M | 66M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 15.15B | 1M | -6M | -27M | -26M | 58M | 62M | 62M | 83.89M | 111.64M | 146.43M | 264.07M | 292.02M | 335.41M | 411.34M | 324.23M | 294.05M | 200.68M | 237.32M | 229.67M | 154.91M | 91.03M | 21.37M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 10.78 | 10.30 | 9.70 | 7.97 | 6.98 | 6.63 | 3.89 | 4.78 | 3.84 | 2.89 | 2.44 | 2.29 | 2.21 | 1.72 | 1.47 | 1.46 | 1.27 | 0.87 | 1.32 | 1.41 | 1.23 | 0.89 | 0.76 | 0.52 | 0.47 | 0.59 | 0.79 | 0.52 | 0.55 | 0.61 | 0.41 |
| EPS Growth % | 1.92% | 6.19% | 21.71% | 14.18% | 5.28% | 70.44% | -18.62% | 24.48% | 32.87% | 18.44% | 6.55% | 3.62% | 28.49% | 17.01% | 0.68% | 14.96% | 45.98% | -34.09% | -6.38% | 14.63% | 38.2% | 17.11% | 46.15% | 10.64% | -20.34% | -25.32% | 51.92% | -5.45% | -9.84% | 48.78% | 41.38% |
| EPS (Basic) | - | 10.53 | 9.94 | 8.16 | 7.16 | 6.81 | 3.96 | 4.88 | 3.93 | 2.96 | 2.48 | 2.34 | 2.29 | 1.76 | 1.48 | 1.47 | 1.28 | 0.87 | 1.35 | 1.45 | 1.27 | 0.91 | 0.77 | 0.53 | 0.48 | 0.60 | 0.80 | 0.53 | 0.57 | 0.62 | 0.41 |
| Diluted Shares Outstanding | 199.2M | 206.6M | 212.3M | 216.9M | 215.3M | 211.2M | 210.3M | 216M | 223.2M | 219.9M | 216.77M | 218.81M | 215.38M | 210.81M | 197.69M | 184.25M | 179.39M | 175.93M | 178.59M | 178.04M | 173.61M | 169.57M | 167.41M | 165.33M | 167.54M | 164.7M | 158.18M | 163.51M | 168.59M | 163.46M | 159.66M |
| Basic Shares Outstanding | 196.1M | 202M | 207.1M | 211.8M | 209.9M | 205.7M | 206.4M | 211.5M | 217.91M | 214.91M | 212.66M | 213.82M | 209.9M | 206.6M | 196.21M | 183.67M | 179M | 175.78M | 174.57M | 173.41M | 168.92M | 165.33M | 165.14M | 163.85M | 164.28M | 160.68M | 156.23M | 160.67M | 162.54M | 159.55M | 159.66M |
| Dividend Payout Ratio | - | 19.48% | 18.52% | 20.41% | 18.36% | 15.54% | 25.06% | 18.47% | 17.62% | 19.97% | 21.43% | 20.54% | 18.35% | 20.86% | 23.25% | 22.67% | 24.53% | 35.44% | 22.61% | 19.36% | 17.53% | 17.41% | 16.2% | 20.44% | 23.34% | 18.08% | 11.09% | 15.63% | 12.51% | 10.01% | 11.97% |
Regulatory cash sweep litigation
According to the provided quarterly income statements, Raymond James Financial has successfully expanded its gross margin from 84.9% in 2024Q2 to 90.5% by 2026Q2, reflecting an improved ability to capture revenue efficiencies across its diversified wealth management and capital markets business segments over time.
The consistent upward trend in gross margin suggests that the firm is effectively leveraging its advisor platform to generate higher returns per unit of revenue. Investors should monitor whether this expansion is sustainable or if competitive pressures in the independent advisor market necessitate higher payout ratios that could compress these margins in future periods.
As reported in the firm's financial filings, operating income has fluctuated significantly, reaching $735 million in 2026Q2 compared to $609 million in 2024Q2, indicating that SG&A expenses are scaling nearly in lockstep with revenue growth, thereby limiting the realization of meaningful operating leverage for shareholders.
The lack of significant operating margin expansion, which hovered between 16.9% and 19.2% over the last ten quarters, suggests that the firm's cost structure remains heavily tied to variable advisor compensation and support infrastructure. This implies that the firm may struggle to significantly improve profitability without a structural shift in its expense management or a major increase in asset-based fee revenue.
Based on the provided data, Raymond James Financial's net income quality appears influenced by variable stock-based compensation, which peaked at $93 million in 2025Q1, suggesting that reported EPS figures may be periodically impacted by the timing of equity-based incentives used to retain key advisor talent.
The volatility in quarterly net income, ranging from $436 million to $604 million, warrants further investigation into the non-operating items and tax rate fluctuations that often obscure core operational performance. Analysts should be cautious of relying solely on headline EPS, as the firm's reliance on recruitment-related forgivable loans and equity grants creates a complex earnings profile.
While the firm demonstrates consistent revenue growth, the potential for regulatory intervention regarding cash sweep yields, as noted in recent industry context, poses a material risk to the high-margin net interest income that has historically bolstered the firm's overall profitability and net margin performance.
Short-term observers may focus on the firm's sensitivity to interest rate cycles and the potential for credit quality deterioration within the commercial real estate portfolio. If regulatory changes force a reduction in the spread earned on client cash, the firm may find it difficult to maintain its current net margin levels without a significant pivot in its revenue mix.
Quick answers to the most common questions about buying RJF stock.
Raymond James Financial, Inc. (RJF) is profitable, generating $2.13B in net income for the fiscal year ending 2025 with a net profit margin of 13.4%.
Raymond James Financial, Inc. (RJF) reported an operating income of $4.56B, resulting in an operating profit margin of 28.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Raymond James Financial, Inc. (RJF) generated $14.03B in gross profit for the year, representing a gross profit margin of 88.2%. This demonstrates the company's core pricing power and production efficiency.