LINCOLN, Neb., Nov. 6, 2025 /PRNewswire/ — Nelnet (NYSE: NNI) lately reported GAAP web source of revenue of $106.7 million, or $2.94 according to proportion, for the 0.33 quarter of 2025, when compared with GAAP web source of revenue of $2.4 million, or $0.07 according to proportion, for a similar era a month in the past.

Web source of revenue, apart from spinoff marketplace worth changes¹, used to be $107.3 million, or $2.95 according to proportion, for the 0.33 quarter of 2025, when compared with $12.4 million, or $0.34 according to proportion, for a similar era in 2024.

The 0.33 quarter 2025 running effects integrated refer to pieces:

• Non-recurring earnings of $32.9 million ($25.0 million next tax or $0.69 according to proportion) from the corporate’s authorities servicing pledge. Upon attaining a last word with the Branch of Training, the corporate known earnings on a pledge amendment for products and services in the past carried out.
• A achieve of $30.2 million ($23.0 million next tax or $0.63 according to proportion) linked to a bias redemption and building up within the difference wearing worth on a undertaking capital funding.
• The popularity of $28.9 million ($22.0 million next tax or $0.60 according to proportion) of adverse provision (that higher source of revenue) linked to the reversal of allowance for mortgage losses on a portfolio of loans offered.
• Sure expense pieces of $20.1 million ($15.3 million next tax or $0.42 according to proportion) linked to a non-cash rate to write-off debt bargain prices linked to the repurchase of the corporate’s personal debt ($8.3 million); persisted losses within the corporate’s sun building industry ($6.0 million); and a non-cash impairment rate on a sun building undertaking ($5.8 million).

“Strong results this quarter were driven by ongoing strength across our core businesses in loan servicing, consumer lending, payments, and technology along with some one-time transactions that had a positive impact,” mentioned Jeff Noordhoek, well-known government officer of Nelnet. “We remain focused on long-term value creation and see meaningful opportunities to invest in and grow these businesses. During the quarter, we repurchased shares at an attractive price and increased our dividend. We also plan to make a significant contribution to our foundation before the end of the year. Additionally, we were excited to announce our agreement to acquire Finastra’s Canadian student loan servicing business, which builds on our legacy of serving student loan borrowers and government partners in both the U.S. and Canada. We look forward to continuing their success.”

Nelnet has 4 reportable running sections, incomes passion source of revenue on loans in its Asset Future and Control (AGM) and Nelnet Reserve sections, each a part of the corporate’s Nelnet Monetary Products and services (NFS) section, and fee-based earnings in its Mortgage Servicing and Methods (known as Nelnet Assorted Products and services (NDS)) and Training Era Products and services and Bills (known as Nelnet Trade Products and services (NBS)) sections. Alternative industry actions and running sections that aren’t reportable and now not a part of the NFS section are blended and integrated in Company Actions.

Asset Future and Control

The AGM running branch reported mortgage and funding web passion source of revenue of $44.7 million all over the 0.33 quarter of 2025, when compared with $38.4 million for a similar era a month in the past. The rise in 2025 used to be because of an building up in mortgage unfold², which used to be partly offset by means of the anticipated runoff of the Federal People Training Mortgage Program (FFELP) mortgage portfolio. The common stability of loans remarkable reduced from $9.8 billion for the 0.33 quarter of 2024 to $8.8 billion for a similar era in 2025.

AGM known a adverse provision for mortgage losses within the 0.33 quarter of 2025 of $7.4 million ($5.6 million next tax) when compared with provision expense of $12.0 million ($9.1 million next tax) for a similar era in 2024. As mentioned above, all over the 0.33 quarter of 2025, the corporate offered $203.3 million of client loans and lowered its allowance (and known adverse provision expense) of $28.9 million linked to this mortgage sale.

As well as, all over the 0.33 quarter of 2025, AGM known a lack of $8.3 million ($6.3 million next tax) from repurchasing $377.6 million of its personal debt within the secondary marketplace. As of September 30, 2025, the corporate holds $499.5 million (par worth) of its personal FFELP asset-backed securities. For accounting functions, those notes are eradicated in consolidation and aren’t integrated within the corporate’s consolidated monetary statements. Alternatively, those securities stay legally remarkable on the believe stage and could also be offered to 3rd events or redeemed at par because the believe generates coins.

AGM known web source of revenue next tax of $27.8 million for the 3 months ended September 30, 2025, when compared with a web lack of $12.4 million for a similar era in 2024. Within the 0.33 quarter of 2024, AGM known a lack of $9.5 million ($7.2 million next tax) linked to adjustments within the honest worth of spinoff tools that don’t qualify for hedge accounting and a provision expense of $29.0 million ($22.0 million next tax) linked to sure of the corporate’s advisable passion investments.

Nelnet Reserve

As of September 30, 2025, Nelnet Reserve had general belongings of $2.00 billion that consisted of a $974.9 million and $1.01 billion mortgage and funding portfolio, respectively, and general deposits, together with intercompany deposits, of $1.73 billion. Nelnet Reserve reported mortgage and funding web passion source of revenue of $15.4 million all over the 0.33 quarter of 2025, when compared with $10.6 million for a similar era a month in the past. The rise in 2025 used to be because of an building up within the mortgage and funding portfolio, partly offset by means of a snip in web passion margin.

Nelnet Reserve known a provision for mortgage losses within the 0.33 quarter of 2025 of $3.8 million ($2.9 million next tax), when compared with $6.1 million ($4.6 million next tax) within the 0.33 quarter of 2024.

Nelnet Reserve known web source of revenue next tax for the quarter ended September 30, 2025 of $4.6 million, when compared with a web lack of $3.6 million for a similar era in 2024. Within the 0.33 quarter of 2024, Nelnet Reserve known a lack of $3.6 million  ($2.7 million next tax) linked to adjustments within the honest worth of spinoff tools that don’t qualify for hedge accounting

Mortgage Servicing and Methods

Earnings from the Mortgage Servicing and Methods branch used to be $151.1 million for the 0.33 quarter of 2025, when compared with $108.2 million for a similar era in 2024. The rise in earnings used to be because of the $32.9 million of non-recurring earnings from the federal government servicing pledge as mentioned above and an building up of personal schooling mortgage servicing quantity because of the conversion of Uncover Monetary Products and services and SoFi Lending Corp. mortgage portfolios all over the fourth quarter of 2024 and primary quarter of 2025. As of September 30, 2025, the corporate used to be servicing $508.7 billion in government-owned, FFELP, non-public schooling, and client loans for 14.2 million debtors.

The Mortgage Servicing and Methods branch reported web source of revenue next tax of $35.2 million for the 3 months ended September 30, 2025, when compared with a lack of $3.5 million for a similar era in 2024. Web source of revenue in 2025 has been undoubtedly impacted in 2025 when compared with 2024 because of an building up in earnings and a snip in bills got from strategic value control actions together with efficiencies accomplished with era and automation.

On October 23, 2025, the corporate introduced that it entered into an word with DH Company, an entirely owned subsidiary of Finastra Holdings Restricted (Finastra), to procure Finastra’s Canadian scholar mortgage servicing industry for about $93 million in coins. The transaction is anticipated to similar within the first quarter of 2026, topic to normal endmost statuses. Finastra’s Canadian scholar mortgage servicing industry is the chief supplier of scholar mortgage servicing answers to governments and monetary establishments in Canada offering era enabled controlled products and services around the mortgage lifecycle. The industry lately products and services loans for two.4 million debtors on proprietary era platforms.

Training Era Products and services and Bills

For the 0.33 quarter of 2025, earnings from the Training Era Products and services and Bills running branch used to be $129.3 million, an building up from $118.2 million for a similar era in 2024. Earnings much less direct prices to grant products and services for the 0.33 quarter of 2025 used to be $79.0 million, when compared with $72.9 million for a similar era in 2024. Working margin has reduced in 2025 when compared with 2024 as the corporate continues to assemble investments to aid the expansion within the buyer bottom and building of untouched applied sciences.

Web source of revenue next tax for the Training Era Products and services and Bills branch used to be $19.0 million for the 3 months ended September 30, 2025, when compared with $20.4 million for a similar era in 2024.

Company Actions

The corporate has an funding in an unaffiliated third-party era corporate. In August 2025, this era corporate finished an fairness carry and permitted gentle trade in to redeem present fairness holders with a portion of the proceeds. The corporate redeemed a portion of its funding and altered its wearing worth of its difference funding to mirror the August 2025 transaction worth. Because of this transaction, the corporate known a pre-tax achieve of $30.2 million.

For the 0.33 quarter of 2025, the corporate reported a lack of $6.0 million ($4.6 million next tax) in its sun engineering, procurement, and building (EPC) industry. Because the acquisition of this industry in 2022, it has incurred low and, in lots of circumstances, adverse margins on legacy tasks. The corporate continues to acknowledge loss reserves that constitute its estimate of prices it is going to incur to finish the difference legacy oaths.

Proportion Repurchases

All the way through the primary 9 months of 2025, the corporate has repurchased 439,895 Magnificence A ordinary stocks for $53.1 million (moderate value of $120.69 according to proportion), together with a complete of 217,850 Magnificence A ordinary stocks for $27.3 million (moderate value of $125.19 according to proportion) all over the 0.33 quarter.

Board of Administrators Broadcasts Fourth Quarter Dividend

The Nelnet Board of Administrators declared a fourth-quarter coins dividend at the corporate’s remarkable stocks of Magnificence A ordinary hold and Magnificence B ordinary hold of $0.33 according to proportion. The dividend might be paid on December 15, 2025, to shareholders of report on the similar of commercial on December 1, 2025.

The Nelnet Underpinning used to be established to aid us satisfy our core worth of giving again to the communities the place we are living and paintings. Traditionally, Nelnet has contributed every year to the Underpinning to aid this challenge. Because of contemporary tax legislation adjustments and powerful running efficiency in 2025, our Board of Administrators has licensed a contribution of as much as $35 million to the Underpinning. We predict this quantity will guard our 2025 annual contribution in addition to contributions for the foreseeable day. The whole contribution might be expensed within the fourth quarter of 2025.

Ahead-Taking a look and Cautionary Statements

This press let fall accommodates forward-looking statements throughout the which means of federal securities rules. The phrases “anticipate,” “assume,” “believe,” “continue,” “could,” “ensure,” “estimate,” “expect,” “forecast,” “future,” “intend,” “may,” “plan,” “potential,” “predict,” “scheduled,” “should,” “will,” “would,” and related expressions, in addition to statements in day nerve-racking, are supposed to spot forward-looking statements. Those statements are in response to control’s flow expectancies as of the age of this let fall and are topic to identified and unknown dangers, uncertainties, suppositions, and alternative components that can motive the untouched effects and function to be materially other from any day effects or efficiency expressed or implied by means of such forward-looking statements. Such dangers and uncertainties come with, however aren’t restricted to: dangers linked to the facility to effectively guard and building up allotted volumes of scholar loans serviced by means of the corporate beneath present and day servicing oaths with the Branch of Training, dangers linked to detrimental pledge adjustments or interpretations, dangers linked to persistently assembly carrier necessities to steer clear of the review of efficiency consequences, and dangers linked to the corporate’s talent to conform to commitments with third-party shoppers for the servicing of Federal Direct Mortgage Program, FFEL Program, non-public schooling, and client loans; mortgage portfolio dangers reminiscent of credit score possibility, prepayment possibility, rate of interest foundation and repricing possibility, dangers linked to the usefulness of derivatives to supremacy publicity to rate of interest fluctuations, uncertainties in regards to the anticipated advantages from bought securitized and unsecuritized FFELP, non-public schooling, client, and alternative loans, or funding pursuits therein, and projects to buy alternative FFELP, non-public schooling, client, and alternative loans; financing and liquidity dangers, together with dangers of adjustments within the rate of interest climate; dangers from adjustments within the phrases of schooling loans and within the tutorial credit score and products and services markets on account of adjustments in appropriate rules, laws, and authorities methods and budgets; dangers linked to a breach of or failure within the corporate’s operational or knowledge methods or infrastructure, or the ones of third-party distributors, together with disclosure of unrevealed or non-public knowledge and/or harm to recognition on account of cyber breaches; dangers linked to usefulness of synthetic knowledge; uncertainties inherent in forecasting day coins flows from scholar mortgage belongings, together with funding pursuits therein, and linked asset-backed securitizations; dangers linked to the facility of Nelnet Reserve to reach its industry targets and successfully deploy mortgage and storehouse methods and reach anticipated marketplace penetration; dangers linked to the anticipated advantages to the corporate from its proceeding funding in Hudl; dangers linked to the corporate’s sun tax fairness investments and sun building industry, together with dangers of now not with the ability to understand tax credit which stay topic to recapture by means of taxing government and dangers from the affect of the enactment of the One Fat Stunning Invoice that speeds up the expiration and section out of solar power credit; dangers and uncertainties linked to alternative projects to pursue alternative strategic investments (and expected source of revenue therefrom) together with undertaking capital and actual property investments, reinsurance, acquisitions, and alternative actions (together with dangers related to mistakes that once in a while happen in changing mortgage servicing portfolios to a untouched servicing platform), together with actions which are supposed to diversify the corporate each inside and out of doors of its ancient core education-related companies; dangers and uncertainties related to order alternate; dangers from adjustments in financial statuses and client conduct; dangers linked to the corporate’s talent to evolve to technological alternate; dangers linked to the unique discussion board provisions within the corporate’s articles of incorporation; dangers linked to the corporate’s government chairman’s talent to regulate issues linked to the corporate thru balloting rights; dangers linked to linked get together transactions; dangers linked to herbal failures, terrorist actions, or world hostilities; and dangers and uncertainties related to litigation issues and keeping up compliance with the in depth regulatory necessities appropriate to the corporate’s companies, together with contemporary adjustments to the regulatory climate in the US, and uncertainties inherent within the estimates and suppositions about day occasions that control is needed to assemble within the preparation of the corporate’s consolidated monetary statements.

For more info, see the “Risk Factors” divisions and alternative cautionary discussions of dangers and uncertainties integrated in paperwork filed or furnished by means of the corporate with the Securities and Alternate Fee. All forward-looking statements on this let fall are as of the age of this let fall. Even supposing the corporate might spontaneously replace or revise its forward-looking statements from presen to presen to mirror untouched effects or adjustments within the corporate’s expectancies, the corporate disclaims any loyalty to take action with the exception of as required by means of legislation.

Non-GAAP Efficiency Measures

The corporate prepares its monetary statements and gifts its monetary ends up in accordance with U.S. GAAP. Alternatively, it additionally supplies alternative non-GAAP monetary knowledge linked to express pieces control believes to be notable within the analysis of its running effects and function. Reconciliations of GAAP to non-GAAP monetary knowledge, and a dialogue of why the corporate believes offering this alternative knowledge comes in handy to buyers, is supplied within the “Non-GAAP Disclosures” division underneath.

Non-GAAP Disclosures
(Greenbacks in hundreds, with the exception of proportion knowledge)
(unaudited)

Non-GAAP monetary measures disclosed by means of control are supposed to grant alternative knowledge and perception relative to industry developments to buyers and, in sure circumstances, to provide monetary knowledge as deliberate by means of ranking companies and alternative customers of monetary knowledge. Those measures aren’t in keeping with, or an alternative to, GAAP and could also be other from, or inconsistent with, non-GAAP monetary measures old by means of alternative firms. The corporate experiences this non-GAAP knowledge since the corporate believes that it supplies alternative knowledge relating to operational and function signs which are intently assessed by means of control. There’s no complete, authoritative steerage for the presentation of such non-GAAP knowledge, which is handiest intended to complement GAAP effects by means of offering alternative knowledge that control makes use of to evaluate efficiency.

Web source of revenue, apart from spinoff marketplace worth changes

SOURCE Nelnet, Inc.