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Nelnet Reports Second Quarter 2026 Results

NNI
  • Nelnet reported GAAP net income of $66.7 million ($1.85 per share) for the second quarter of 2026, down from $181.5 million ($4.97 per share) in the same period in 2025.
  • Non-GAAP net income excluding derivative market value adjustments was $63.9 million ($1.77 per share) for the second quarter of 2026, compared to $184.4 million ($5.05 per share) in 2025.
  • The 2025 results included a $175.0 million gain from the partial redemption of an investment in ALLO; excluding this gain, 2025 GAAP net income was $48.5 million ($1.32 per share).
  • Nelnet operates through three divisions: Nelnet Financial Services (NFS), Loan Servicing and Systems (NDS), and Education Technology Services and Payments (NBS).
  • In the Asset Generation and Management (AGM) segment, the loan portfolio totaled $7.83 billion as of June 30, 2026, with consumer loans growing to $1.21 billion from $411.5 million in the prior year.
  • AGM acquired $3.07 billion of consumer loans in the second quarter of 2026, including $2.86 billion in short-duration Pay Later receivables, while the average FFELP loan balance declined to $6.7 billion.
  • AGM recorded a loan loss provision of $41.3 million for the quarter, driven by initial allowances on acquired loans under the CECL methodology rather than credit deterioration.
  • Nelnet Bank reported net income of $10.5 million for the quarter, with a loan portfolio of $1.64 billion and total deposits of $2.51 billion as of June 30, 2026.
  • Loan Servicing and Systems revenue increased to $132.2 million due to the acquisition of NDS Canada and consumer servicing growth, offsetting a decline in Department of Education servicing revenue.
  • Education Technology Services and Payments revenue was $118.9 million, with net income of $14.7 million, though operating margins decreased due to higher expenses for technology development.
  • Corporate activities recognized an unrealized gain of $8.6 million from changes in the fair value of marketable equity securities.
  • The company repurchased 316,600 Class A shares for $40.6 million during the first six months of 2026, including 190,281 shares for $24.4 million in the second quarter.
  • The Board declared a third-quarter cash dividend of $0.33 per share, payable on September 15, 2026, to shareholders of record on September 1, 2026.