Jefferies Launches $6.56 Million Autocallable Notes Linked to Nasdaq-100, Russell 2000, and Consumer Staples ETF

Structured Product Design and Market Exposure Strategy

Jefferies Financial Group structured these notes to offer investors exposure across diversified market segments with protective barriers and conditional income components. As senior unsecured obligations of Jefferies Financial Group Inc., these notes rank equally with other senior unsecured debt issued by the company. The selection of the Nasdaq-100 Index, Russell 2000 Index, and the State Street Consumer Staples Select Sector SPDR ETF reflects a strategy linking performance to large-cap technology, small-cap, and defensive consumer sectors.

The performance of the notes depends on the worst-performing underlying among the three, based on initial values set on July 17, 2026: $85.19 for XLP, 28,592.66 for Nasdaq-100, and 2,962.217 for Russell 2000. This approach introduces diversification risk since returns hinge on the weakest performer rather than an average or best performer.

Contingent Coupon Structure and Observation Timeline

The notes feature a contingent coupon paying $11.79 monthly per note, conditional on market performance. Coupon observation dates commence August 17, 2026, and continue monthly. To receive the coupon on any date, the worst-performing underlying must meet or exceed its coupon barrier, set at 75% of the initial value: $63.89 for XLP, 21,444.50 for Nasdaq-100, and 2,221.663 for Russell 2000.

This design means investors risk missing coupon payments if the worst-performing underlying dips below the 75% barrier on observation dates. The aggregate principal of $6,563,000 supports potential monthly payments if conditions are met, but the contingent nature introduces income variability with no guarantee of all coupon payments before maturity or early call.

Autocall Feature and Early Redemption Terms

The notes include an autocall provision allowing early redemption at par plus accrued contingent coupons if the worst-performing underlying reaches or exceeds its initial value on any call observation date, starting January 19, 2027, and continuing monthly. Upon triggering, investors receive the $1,000 principal per note plus any due contingent coupon.

This autocall mechanism creates an asymmetric payoff: investors gain principal and coupons if the worst-performing underlying recovers fully but forgo further upside. If the underlying remains below the call threshold, investors retain the notes, receive contingent coupons when barriers are met, but face downside risk at maturity. Call observation dates may be postponed under certain conditions outlined in the product supplement.

Principal Risk at Maturity and Capital Protection Thresholds

At maturity on July 22, 2031, investors’ returns depend on the worst-performing underlying’s final value relative to a 60% threshold of initial value: $51.11 for XLP, 17,155.60 for Nasdaq-100, and 1,777.330 for Russell 2000. If the final value meets or exceeds this threshold, investors receive full principal. If below, repayment is reduced proportionally, potentially resulting in capital loss.

This exposes investors to significant downside risk if the worst-performing underlying declines more than 40% by maturity. The filing notes that in such cases, the maturity payment will be less than the principal, and investors may lose some or all of their investment. The final contingent coupon is paid only if the underlying’s value on the last coupon observation date exceeds the coupon barrier, offering limited compensation if performance has deteriorated.

Underwriting Details and Pricing Information

Jefferies LLC, a wholly-owned subsidiary of Jefferies Financial Group Inc., served as underwriter and broker-dealer for this offering. The public offering price was set at 100% of principal ($1,000 per note), raising $6,563,000 before expenses. Underwriting discounts and commissions totaled 0.50%, or $32,815, resulting in net proceeds of $6,530,185 before expenses. Proceeds are designated for general corporate purposes.

The estimated note value on July 17, 2026, was $987.60, approximately 1.24% below the offering price, reflecting transaction costs and embedded derivative features such as the contingent coupon, autocall, and downside protection. Investors purchasing at par paid a premium relative to this valuation.

Credit Risk and Unsecured Status

The filing highlights that payments depend on the creditworthiness of Jefferies Financial Group Inc. Investors bear the risk of default, with no claim on the underlying indices or ETF. The notes are senior unsecured obligations, ranking equally with other unsecured debt. In bankruptcy, holders would be paid after secured creditors and statutory priorities.

No credit ratings or forward-looking credit improvement plans were disclosed for these notes.

FINRA Conflict of Interest and Regulatory Compliance

Jefferies LLC, as a FINRA member and broker-dealer affiliate of the issuer, participates in the note distribution, subjecting the offering to FINRA Rule 5121 regarding conflicts of interest. The company complied with all Rule 5121 requirements, addressing the conflict arising from the issuer and underwriter affiliation.

This structure allows Jefferies to earn underwriting commissions and benefit from the notes’ performance as embedded derivatives are marked to market. No additional compensation or sales practice details beyond standard FINRA compliance were disclosed.

Book-Entry Issuance and Custodial Arrangements

Issued solely in book-entry form through The Depository Trust Company, delivery is expected on or about July 22, 2026, against payment in immediately available funds. The notes carry CUSIP/ISIN identifiers 47234KBD5 and US47234KBD54, facilitating secondary market trading. The Bank of New York Mellon acts as Trustee, overseeing compliance and administration.

Jefferies Financial Services, Inc., a wholly-owned subsidiary, serves as Calculation Agent, responsible for determining observation values, coupon payments, call triggers, and final maturity payouts based on closing values of the three underlyings. Coupon and call observation dates may be postponed if market closures prevent scheduled observations.

Investor Disclosures and Tax Information

The pricing supplement includes extensive risk disclosures covering market, structural, and credit risks (pages PS-7 through PS-12). Investors are advised to review the supplement alongside the product supplement, prospectus, and prospectus supplement before investing. A section on U.S. federal income tax consequences is included, though detailed tax treatment is not provided in this excerpt.

Forward-looking statements disclaim guarantees of projections or assumptions. No earnings guidance, revenue forecasts, or detailed use of proceeds beyond general corporate purposes were provided. Investors seeking tax and risk details should consult the full product supplement and prospectus documents.

Market Context and Series A Global Medium-Term Notes Program

These notes are part of Jefferies Financial Group's Series A Global Medium-Term Notes program, enabling issuance of structured products linked to various underlyings including indices, ETFs, commodities, and currencies. The program offers tailored features such as contingent income and downside protections to meet investor demand.

Pricing finalized on July 17, 2026, with the issue date three business days later on July 22, 2026. The five-year maturity exposes investors to the worst-performing underlying’s performance. Jefferies hedges its obligations via derivative positions in the Nasdaq-100, Russell 2000, and XLP ETF, maintaining a market-neutral stance while transferring performance risk to investors.