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Aug 6, 2026, 4:17 PM ETFinancial Services

Nelnet — Second Quarter 2026 Earnings Summary

NNINELNET INC
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Financial Performance

  • GAAP net income for the second quarter of 2026 was $66.7 million ($1.85 per share), compared to $181.5 million ($4.97 per share) in the same period of 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.
  • Excluding a $175.0 million gain from the partial redemption of an ALLO investment in Q2 2025, GAAP net income for that prior period was $48.5 million ($1.32 per share).
  • Total interest income was $204.9 million for the quarter, down from $212.3 million in the prior year period.
  • Net interest income increased to $96.0 million for the quarter, up from $79.4 million in the prior year period.
  • Loan servicing and systems revenue was $132.2 million, up from $120.7 million in the prior year period.
  • Education technology services and payments revenue was $118.9 million, up slightly from $118.2 million in the prior year period.
  • AGM loan and investment net interest income was $63.2 million, up from $49.9 million in the prior year period.
  • Nelnet Bank loan and investment net interest income was $19.3 million, up from $14.1 million in the prior year period.
  • AGM recorded a provision for loan losses of $41.3 million ($31.4 million after tax) for the quarter, compared to $11.1 million ($8.4 million after tax) in the prior year period.
  • Nelnet Bank recorded a negative provision for loan losses of $0.2 million for the quarter, compared to a provision of $6.8 million ($5.2 million after tax) in the prior year period.
  • Total assets were $14.28 billion as of June 30, 2026, compared to $13.71 billion as of June 30, 2025.
  • Total liabilities were $10.64 billion as of June 30, 2026, compared to $10.23 billion as of June 30, 2025.
  • Total Nelnet, Inc. shareholders' equity was $3.77 billion as of June 30, 2026, compared to $3.57 billion as of June 30, 2025.

Business Segments and Product Lines

  • Nelnet Financial Services (NFS):
    • Asset Generation and Management (AGM) loan portfolio totaled $7.83 billion as of June 30, 2026.
    • AGM acquired $3.07 billion of consumer loans during the quarter, including $2.86 billion of short-duration Pay Later receivables and $205.5 million of other consumer loans, compared to $142.5 million in the prior year period.
    • The consumer loan portfolio grew to $1.21 billion as of June 30, 2026, from $411.5 million as of June 30, 2025.
    • Average FFELP loans outstanding declined to $6.7 billion for the quarter ended June 30, 2026, from $8.7 billion in the prior year period.
    • AGM net income after tax was $22.2 million for the quarter, up from $20.8 million in the prior year period.
    • Nelnet Bank loan portfolio was $1.64 billion and investment portfolio was $1.29 billion as of June 30, 2026; total deposits were $2.51 billion.
    • Nelnet Bank net income after tax was $10.5 million for the quarter, compared to a loss of $0.4 million in the prior year period.
  • Loan Servicing and Systems (NDS):
    • Revenue increased to $132.2 million for the quarter, driven by the acquisition of NDS Canada and growth in consumer servicing, partially offset by a decrease in borrowers serviced for the Department of Education.
    • The segment serviced $519.2 billion in loans for 15.2 million borrowers as of June 30, 2026.
    • Operating margin decreased due to lower revenue from the Department servicing contract and amortization of intangible assets from the NDS Canada acquisition.
    • Segment net income after tax was $11.3 million, down from $15.2 million in the prior year period.
  • Education Technology Services and Payments (NBS):
    • Revenue was $118.9 million for the quarter, compared to $118.2 million in the prior year period.
    • Revenue less direct costs was $79.7 million, up from $78.3 million in the prior year period.
    • Operating margin decreased due to increased operating expenses to support customer base growth and technology investments.
    • Segment net income after tax was $14.7 million, down from $17.9 million in the prior year period.

Other Key Points

  • During the first six months of 2026, the company repurchased 316,600 Class A common shares for $40.6 million (average price of $128.34 per share), including 190,281 shares for $24.4 million (average price of $127.99 per share) during the second quarter.
  • The Board of Directors declared a third-quarter cash dividend of $0.33 per share on Class A and Class B common stock, payable on September 15, 2026, to shareholders of record on September 1, 2026.
  • The company recognized an unrealized gain of $8.6 million ($6.5 million after tax) from changes in the fair value of certain marketable equity securities during the quarter.
  • AGM recognized $8.6 million ($6.5 million after tax) in income from joint ventures engaged in loan portfolio acquisition, ownership, and management during the quarter.
  • AGM contributed student loan trusts containing $716.3 million of FFEL Program loans to Nelnet Bank during the first six months of 2026.
  • The NDS Canada acquisition contributed its first full quarter of results in the second quarter of 2026.
  • Management highlighted continued investment in artificial intelligence and product development across the organization.