RJF

Financials

Raymond James Financial

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Market Data

Financials

XBRL · SEC EDGAR

2008–2025(18yr)

Revenue

Net Income

Free CF

Metric	FY 2008	FY 2009	FY 2010	FY 2011	FY 2012	FY 2013	FY 2014	FY 2015	FY 2016	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025Latest	YoY
Revenue	$3.2B	$2.6B	$3.0B	$3.4B	$3.9B	$4.6B	$5.0B	$5.3B	$5.5B	$6.5B	$7.5B	$8.0B	$8.2B	$9.9B	$11.3B	$13.0B	$14.9B	$15.9B	+6.6%
Net Income	$235.1M	$152.8M	$228.3M	$278.4M	$295.9M	$367.2M	$480.2M	$502.1M	$529.4M	$636.2M	$856.7M	$1.0B	$818.0M	$1.4B	$1.5B	$1.7B	$2.1B	$2.1B	+3.2%
Net Margin	7.3%	5.9%	7.7%	8.2%	7.6%	8.0%	9.7%	9.5%	9.6%	9.8%	11.5%	12.9%	10.0%	14.2%	13.3%	13.4%	13.9%	13.4%	-0.4pp
Free Cash Flow	$176.1M	$338.6M	-$1.0B	$1.5B	$313.8M	—	$447.4M	$825.1M	-$640.1M	$1.1B	$1.8B	$439.0M	$3.9B	$6.6B	-$19.0M	-$3.7B	$1.9B	$2.2B	+15.2%
FCF Margin	5.5%	13.0%	-35.0%	44.7%	8.0%	—	9.0%	15.5%	-11.6%	17.1%	23.7%	5.5%	48.1%	66.1%	-0.2%	-28.4%	13.1%	14.1%	+1.0pp
EPS (Diluted)	$1.93	$1.25	$1.83	$2.19	$2.20	$2.58	$3.32	$3.43	$3.65	$4.33	$5.75	$7.17	$5.83	$6.63	$6.98	$7.97	$9.70	$10.30	+6.2%

Total Debt$1.2B

Cash & Equiv.$11.4B

Net Cash$10.2B

4 min read

1. THE BIG PICTURE

Raymond James is successfully pivoting its profit engine toward its Bank and Asset Management segments to insulate its earnings from a volatile deal-making environment. While total net income fell 6% in the most recent quarter, Raymond James Financial is doubling down on its "AdvisorChoice" recruitment model to drive record client assets of $1.77 trillion, ensuring a steady stream of fee-based revenue even as investment banking falters (8-K).

2. WHERE THE RISKS HIT HARDEST

The "AdvisorChoice" platform’s growth is threatened by regulatory scrutiny because approaching the $100 billion asset threshold may impose stricter capital requirements that could restrict Raymond James Financial's ability to scale (10-K Item 1A). Furthermore, the "Service 1st" culture is vulnerable to cybersecurity risks; management notes that AI-driven social engineering poses a direct threat of "reputational risk," which could lead to lost revenue and higher operating costs if client trust is compromised (10-K Item 1A). Finally, the Bank segment’s 47% pre-tax income growth is susceptible to "cash sweep volatility," where an inability to deploy client cash into the bank deposit program could impair regulatory capital ratios and stall lending (8-K, 10-K Item 1A).

3. WHAT THE NUMBERS SAY TOGETHER

While Raymond James leads its peer group in gross margin at 93.0%, this efficiency does not translate to the bottom line; Raymond James Financial carries the lowest net margin (13.2%) and FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margin (9.0%) among its primary competitors (XBRL). This discrepancy highlights the high cost of a "human capital-intensive" business model that prioritizes advisor support over the automated, lower-cost structures used by "fintech" rivals (10-K Item 1). The 6% revenue growth in the most recent quarter is consistent with the TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter growth of 6.6%, but the 21% collapse in Capital Markets revenue reveals a structural dependency on market conditions that the Bank segment is currently masking (8-K). Sentiment appears cautious, with short interest at 5.3% of the float and six days to cover, suggesting some investors doubt the sustainability of the recent banking-driven outperformance (Yahoo Finance).

4. IS IT WORTH IT AT THIS PRICE?

At 10.9x Forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations, Raymond James trades at an 11% premium to the peer median of 9.8x (XBRL). This premium is supported by a revenue growth rate that leads most peers, though it is challenged by a 9.0% FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margin that trails significantly behind Ameriprise Financial's 46.3% (XBRL). At the current price, the market is pricing in ~0.8% long-term growth (CAPM analysis). This appears to be a low bar for Raymond James Financial to clear, given its 8% annualized net new asset growth and the recent acquisition of Clark Capital, which added $46 billion in assets (8-K). If growth were to align with a standard 2.5% GDP pace, the justified multiple would rise to 13.3x, suggesting the current valuation is conservative if Raymond James Financial maintains its advisor recruitment momentum.

5. WHAT WOULD CHANGE THIS VIEW?

Cautious if the Bank segment’s net interest margin contracts, as this division provided a 47% increase in pre-tax income that offset weakness elsewhere (8-K).
Constructive if the integration of Clark Capital drives Asset Management revenues significantly above the record $326 million achieved last quarter (8-K).
Cautious if regulatory compliance costs related to the $100 billion asset threshold cause Private Client Group pre-tax income to continue falling despite rising revenues (8-K).

6. BOTTOM LINE

Structural Advantage: A flexible multi-channel advisor platform (AdvisorChoice) that drives high retention and consistent asset inflows by allowing professionals to choose their level of independence. Bottom Line: Raymond James is a resilient, advisor-centric firm whose modest valuation premium is justified by strong asset gathering, though its thin margins leave it vulnerable to rising regulatory costs.

Source: Synthesis · LLM Analysis

3 min read

1. Top 5 Material Risks

Reputational Risk: Damage to the reputation of Raymond James Financial—whether through service failures, associate misconduct, or negative publicity—could lead to lost revenue and higher operating costs.
Cybersecurity: Malicious cyber activity, including phishing, malware, and AI-driven social engineering, poses a risk of financial loss to clients and potential liability for Raymond James Financial, even if the breach occurs outside of Raymond James Financial's own systems.
Liquidity and Funding: An inability to maintain adequate funding could force Raymond James Financial to scale back lending, sell assets at unfavorable prices, or reduce dividend payments.
Cash Sweep Volatility: Significant volatility in Raymond James Bank Deposit Program (RJBDP) balances, or an inability to deploy client cash to third-party banks, could impair the Bank segment’s growth and negatively affect regulatory capital ratios.
Litigation and Regulatory Proceedings: As the business grows, Raymond James Financial faces increasing exposure to lawsuits and regulatory investigations, which can result in substantial attorneys' fees and material adverse financial impacts.

2. Company-Specific Risks

Acquisition Integration: Raymond James Financial faces risks that acquired businesses may not assimilate successfully, potentially leading to significant expenses in technology and cybersecurity that are not offset by expected earnings.
Financial Advisor Retention: Raymond James Financial is subject to industry-wide trends where advisors depart to form independent RIAs, which can negatively impact reported Assets Under Administration (AUA).
Geographic Concentration: While Raymond James Financial maintains business continuity plans, principal operations are located in St. Petersburg, Florida, making Raymond James Financial susceptible to hurricanes or other serious weather conditions that could disrupt transaction processing and communications.
Recruiting Costs: To compete for talent, Raymond James Financial incurs costs for guaranteed contracts and upfront payments; if these recruits do not generate sufficient revenue, Raymond James Financial's earnings are negatively affected.

3. Regulatory/Legal Risks

Enhanced Prudential Standards: If average total consolidated assets equal or exceed $100 billion for four consecutive quarters, Raymond James Financial will be classified as a category IV bank holding company, triggering mandatory supervisory capital stress testing and liquidity buffer requirements.
Standard of Care: Compliance with the SEC’s Regulation Best Interest and similar state-level standards imposes ongoing costs related to legal, operations, and information technology.
Fair Lending Laws: Raymond James Bank and TriState Capital Bank are subject to the Community Reinvestment Act (CRA) and other fair lending laws; failure to perform adequately could result in restrictions on mergers, acquisitions, and expansion.
Capital Requirements: Failure to meet minimum capital requirements administered by federal regulators could preclude Raymond James Financial from accepting or renewing brokered deposits and trigger mandatory regulatory actions.

4. Financial Impact Map

Reputational Risk → Revenue → Lost revenue from client dissatisfaction and reduced use of financial products. Cybersecurity → Operating Expenses → Substantial additional resources required to modify protective measures, investigate vulnerabilities, and remediate exposures. Liquidity and Funding → Dividends and Share Repurchases → Potential for reduced or eliminated dividend payments and limitations on stock repurchases. Cash Sweep Volatility → Net Revenues / Bank Segment Growth → Reliance on higher-cost deposit sources to support asset growth reduces earnings. Litigation and Regulatory Proceedings → Operating Expenses → Substantial attorneys' fees and potential monetary damages or fines.

Source: 10-K Item 1A · LLM Analysis

Recent Filings

Form	Filed	Period
10-Q	Feb 2026	Dec 2025
8-K	Jan 2026	—
14A	Jan 2026	—
10-K	Nov 2025	Sep 2025