Nelnet — Third Quarter 2026 Earnings Summary

Financial Performance

• GAAP net income was $76.2 million ($2.13 per share) for the third quarter of 2026, down from $106.7 million ($2.94 per share) in the same period of 2025.
• Non-GAAP net income, excluding derivative market value adjustments, was $67.9 million ($1.89 per share) for the third quarter of 2026, compared to $107.3 million ($2.95 per share) in 2025.
• Total interest income was $209.0 million for the quarter, up from $205.9 million in 2025.
• Net interest income increased to $101.4 million for the quarter, compared to $85.3 million in 2025.
• Total operating expenses were $263.7 million for the quarter, up from $232.7 million in 2025.
• Provision for loan losses was $39.4 million for the quarter, compared to a negative provision of $3.6 million in 2025.
• Total assets were $14.14 billion as of September 30, 2026, compared to $13.88 billion as of September 30, 2025.
• Total liabilities were $10.52 billion as of September 30, 2026, compared to $10.29 billion as of September 30, 2025.

Business Segments and Product Lines

• Nelnet Financial Services (AGM): Loan and investment net interest income was $65.2 million, up from $44.7 million in 2025, driven by higher loan spreads and consumer loan portfolio growth. The average FFELP loan portfolio balance declined to $6.46 billion from $8.25 billion in 2025. Consumer loan portfolio increased to $1.30 billion from $840.7 million in 2025. AGM acquired $3.23 billion of consumer loans in the quarter, compared to $1.52 billion in 2025. AGM net income after tax was $33.9 million, up from $27.8 million in 2025.
• Nelnet Bank: Loan portfolio was $1.70 billion and investment portfolio was $1.64 billion as of September 30, 2026. Loan and investment net interest income increased to $20.4 million from $15.4 million in 2025. Net income after tax was $12.0 million, up from $4.6 million in 2025.
• Loan Servicing and Systems: Revenue was $139.8 million, down from $151.1 million in 2025. Excluding $5.3 million of revenue from contract modifications (compared to $32.9 million in 2025), revenue increased year-over-year, primarily due to the acquisition of NDS Canada which contributed $16.5 million. The segment services $523.6 billion in loans for 15.4 million borrowers. Net income after tax was $12.5 million, down from $35.2 million in 2025.
• Education Technology Services and Payments: Revenue was $132.9 million, up from $129.3 million in 2025. Revenue less direct costs was $83.4 million, up from $79.0 million in 2025. Net income after tax was $19.4 million, up from $19.0 million in 2025.
• New Products and Acquisitions: Announced FACTS Compass to support scholarship granting organizations through the new Federal Scholarship Tax Credit. BenefitEd offers a payroll deduction option for the program. Announced the acquisition of Entab, a school management technology provider in India.

Other Key Points

• The Board of Directors declared a fourth-quarter cash dividend of $0.36 per share, payable on December 15, 2026, to shareholders of record on December 1, 2026.
• During the first nine months of 2026, the company repurchased 731,932 Class A common shares for $93.7 million. In the third quarter specifically, 415,332 shares were repurchased for $53.1 million.
• Subsequent to September 30, 2026 (through November 5, 2026), the company repurchased an additional 295,990 Class A common shares for $37.0 million.
• Corporate and Other Activities recognized an unrealized loss of $9.3 million from changes in the fair value of marketable equity securities in the third quarter of 2026, compared to a gain of $30.2 million from a venture capital investment in 2025.