LINCOLN, Neb., Would possibly 8, 2025 /PRNewswire/ — Nelnet (NYSE: NNI) nowadays reported GAAP web source of revenue of $82.6 million, or $2.26 in keeping with proportion, for the primary quarter of 2025, when compared with GAAP web source of revenue of $73.4 million, or $1.98 in keeping with proportion, for a similar era a 12 months in the past.

Web source of revenue, apart from by-product marketplace price changes¹, used to be $87.4 million, or $2.39 in keeping with proportion, for the primary quarter of 2025, when compared with $67.4 million, or $1.81 in keeping with proportion, for a similar era in 2024.

“We’re pleased with Nelnet’s strong operating results to kick off 2025,” mentioned Jeff Noordhoek, eminent government officer of Nelnet. “In a challenging and uncertain economic environment, all our core businesses are performing well and contributing to this momentum. We enhanced our already strong capital and liquidity positions, allowing us to be ready to strategically invest in opportunities that we believe will drive long-term success and value creation.”

Nelnet has 4 reportable working sections, incomes passion source of revenue on loans in its Asset Time and Control (AGM) and Nelnet Locker sections, each a part of the corporate’s Nelnet Monetary Products and services (NFS) category, and fee-based income in its Mortgage Servicing and Techniques (known as Nelnet Diverse Products and services (NDS)) and Schooling Generation Products and services and Bills (known as Nelnet Industry Products and services (NBS)) sections. Alternative trade actions and working sections that aren’t reportable and no longer a part of the NFS category are mixed and integrated in Company Actions.

Asset Time and Control

The AGM working branch reported mortgage and funding web passion source of revenue of $52.9 million all through the primary quarter of 2025, when compared with $40.6 million for a similar era a 12 months in the past. The rise in 2025 used to be because of an build up in mortgage unfold², however used to be partly offset via the predicted runoff of the Federal Society Schooling Mortgage Program (FFELP) mortgage portfolio. The typical stability of loans exceptional diminished from $11.6 billion for the primary quarter of 2024 to $9.5 billion for a similar era in 2025.

AGM identified a provision for mortgage losses within the first quarter of 2025 of $13.0 million ($9.9 million later tax), when compared with $6.5 million ($4.9 million later tax) within the first quarter of 2024. Provision for mortgage losses used to be basically impacted via forming an preliminary allowance for loans got all through the era. All the way through the primary quarter of 2025, AGM got $832.6 million of loans, together with $702.8 million of FFELP loans.

As well as, AGM identified a lack of $3.8 million ($2.9 million later tax) connected to adjustments within the honest price of by-product tools that don’t qualify for hedge accounting, when compared with source of revenue of $5.7 million ($4.3 million later tax) for a similar era in 2024. AGM identified web source of revenue later tax of $22.7 million for the 3 months ended March 31, 2025, when compared with $25.6 million for a similar era in 2024.

Nelnet Locker

As of March 31, 2025, Nelnet Locker had a $761.6 million and $872.2 million mortgage and funding portfolio, respectively, and overall deposits, together with intercompany deposits, of $1.38 billion. Nelnet Locker reported mortgage and funding web passion source of revenue of $12.4 million all through the primary quarter of 2025, when compared with $7.6 million for a similar era a 12 months in the past. The rise in 2025 used to be because of an build up within the mortgage and funding portfolio and web passion margin.

Nelnet Locker identified a provision for mortgage losses within the first quarter of 2025 of $2.3 million ($1.7 million later tax), when compared with $4.4 million ($3.3 million later tax) within the first quarter of 2024. As well as, Nelnet Locker identified a lack of $2.5 million ($1.9 million later tax) connected to adjustments within the honest price of by-product tools that don’t qualify for hedge accounting, when compared with source of revenue of $2.3 million ($1.7 million later tax) for a similar era in 2024.

Nelnet Locker identified web source of revenue later tax for the quarter ended March 31, 2025 of $1.5 million, when compared with $0.9 million for a similar era in 2024.

Mortgage Servicing and Techniques

Income from the Mortgage Servicing and Techniques branch used to be $120.7 million for the primary quarter of 2025, when compared with $127.2 million for a similar era in 2024. On April 1, 2024, the corporate started to earn income underneath its brandnew Unified Servicing and Knowledge Answer (USDS) oath which changed its legacy scholar mortgage servicing oath with the Branch of Schooling (Branch). Income earned underneath the USDS oath on a in keeping with borrower mixed foundation is not up to the legacy oath. The trim in income from the federal government servicing oath used to be partly offset via an build up in non-public schooling mortgage servicing income. Non-public and client mortgage servicing income greater to $22.7 million for the 3 months ended March 31, 2025, when compared with $12.6 million for a similar era in 2024, on account of the conversion of Uncover Monetary Products and services and SoFi Lending Corp. mortgage portfolios all through the fourth quarter of 2024 and primary quarter of 2025.

As of March 31, 2025, the corporate used to be servicing $542.3 billion in government-owned, FFELP, non-public schooling, and client loans for 15.6 million debtors, when compared with $532.2 billion in servicing quantity for 15.9 million debtors as of March 31, 2024.

The Mortgage Servicing and Techniques branch reported web source of revenue later tax of $14.1 million for the 3 months ended March 31, 2025, when compared with $12.2 million for a similar era in 2024.

Schooling Generation Products and services and Bills

For the primary quarter of 2025, income from the Schooling Generation Products and services and Bills working branch used to be $147.3 million, an build up from $143.5 million for a similar era in 2024. Income much less direct prices to grant products and services for the primary quarter of 2025 used to be $99.3 million, when compared with $94.9 million for a similar era in 2024.

Web source of revenue later tax for the Schooling Generation Products and services and Bills branch used to be $36.1 million for the 3 months ended March 31, 2025, when compared with $36.2 million for a similar era in 2024.

This branch is matter to seasonal fluctuations. In line with the timing of when income is identified and when bills are incurred, income and working margin are upper within the first quarter when compared with the extra of the 12 months.

Company Actions

Integrated in Company Actions are the working result of the corporate’s 45 % balloting club passion in ALLO Holdings LLC, a protecting corporate for ALLO Communications LLC (ALLO). All the way through the primary quarter of 2024, the corporate identified a loss on its ALLO balloting club passion funding of $10.7 million ($8.1 million later tax). The corporate has deny too much wearing price connected to this funding in ALLO. Accordingly, deny losses have been identified in this funding within the first quarter of 2025, and absent spare balloting club fairness contributions, the corporate is not going to acknowledge day losses in this funding.

As in the past introduced in April 2025, Nelnet entered into an commitment with ALLO pursuant to which ALLO will redeem sure of its club pursuits from Nelnet. Upon last, Nelnet expects to obtain mixture money proceeds of roughly $410 million from ALLO for those redemptions and acknowledge a pre-tax achieve of roughly $175 million. The transaction is anticipated to near in past due Would possibly 2025, matter to commonplace last situations. Right away following the last of the transaction, Nelnet is not going to personal any most well-liked club pursuits of ALLO, however will preserve an important balloting fairness funding in ALLO. Nelnet’s possession of ALLO will trim from 45% to roughly 26%.

Board of Administrators Broadcasts 2d Quarter Dividend and Authorizes Unused Conserve Repurchase Program

The Nelnet Board of Administrators declared a second-quarter money dividend at the corporate’s exceptional stocks of Elegance A habitual conserve and Elegance B habitual conserve of $0.28 in keeping with proportion. The dividend shall be paid on June 16, 2025, to shareholders of file on the near of commercial on June 2, 2025.

As well as, the Board of Administrators has approved a brandnew conserve repurchase program to buy as much as 5 million stocks of the corporate’s Elegance A habitual conserve all through the three-year era finishing Would possibly 8, 2028. The 5 million stocks approved underneath the brandnew program comprises the too much unpurchased stocks from the prior repurchase program, which expires on Would possibly 8, 2025. Stocks is also repurchased underneath the brandnew program from age to age within the noticeable marketplace or non-public transactions (together with with connected events), and the timing and quantity of repurchases relies on marketplace situations, proportion costs, buying and selling volumes, and alternative elements, together with compliance with credit score assurances and securities rules.

Ahead-Taking a look and Cautionary Statements

This press loose 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 worrying, are meant to spot forward-looking statements. Those statements are in line with control’s stream expectancies as of the moment of this loose and are matter to identified and unknown dangers, uncertainties, suppositions, and alternative elements that can reason the original effects and function to be materially other from any day effects or efficiency expressed or implied via such forward-looking statements. Such dangers and uncertainties come with, however aren’t restricted to: dangers connected to the power to effectively preserve and build up allotted volumes of scholar loans serviced via the corporate underneath current and day servicing words with the Branch, dangers connected to adverse oath adjustments or interpretations, dangers connected to constantly assembly carrier necessities to steer clear of the evaluation of efficiency consequences, and dangers connected to the corporate’s talent to agree to assurances with third-party shoppers for the servicing of Federal Direct Mortgage Program, FFEL Program, non-public schooling, and client loans; mortgage portfolio dangers corresponding to credit score possibility, prepayment possibility, rate of interest foundation and repricing possibility, dangers connected to the worth 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 tasks to buy spare 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 instructional credit score and products and services markets as a result of adjustments in acceptable rules, laws, and authorities techniques and budgets; dangers connected 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 secret or private knowledge and/or injury to recognition as a result of cyber breaches; dangers connected to worth of man-made knowledge; uncertainties inherent in forecasting day money flows from scholar mortgage property, together with funding pursuits therein, and connected asset-backed securitizations; dangers connected to the power of Nelnet Locker to reach its trade targets and successfully deploy mortgage and storehouse methods and reach anticipated marketplace penetration; dangers connected to the predicted advantages to the corporate from its proceeding funding in ALLO and Hudl, and dangers connected to sun tax fairness investments, together with dangers of no longer having the ability to understand tax credit which stay matter to recapture via taxing government; dangers and uncertainties connected to alternative tasks to pursue spare strategic investments (and expected source of revenue therefrom) together with undertaking capital and actual property investments, reinsurance, acquisitions, sun development, and alternative actions (together with dangers related to mistakes that on occasion happen in changing mortgage servicing portfolios to a brandnew servicing platform), together with actions which are meant to diversify the corporate each inside of and out of doors of its historic core education-related companies; dangers and uncertainties related to surrounding alternate; dangers from adjustments in financial situations and client conduct; dangers connected to the corporate’s talent to conform to technological alternate; dangers connected to the unique discussion board provisions within the corporate’s articles of incorporation; dangers connected to the corporate’s government chairman’s talent to keep watch over issues connected to the corporate thru balloting rights; dangers connected to connected occasion transactions; dangers connected to herbal screw ups, terrorist actions, or global hostilities; and dangers and uncertainties related to litigation issues and keeping up compliance with the in depth regulatory necessities acceptable to the corporate’s companies, together with adjustments to the regulatory climate from the alternate in presidential management, and uncertainties inherent within the estimates and suppositions about day occasions that control is needed to put together 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 via the corporate with the Securities and Alternate Fee. All forward-looking statements on this loose are as of the moment of this loose. Even if the corporate might eagerly replace or revise its forward-looking statements from age to age to replicate original effects or adjustments within the corporate’s expectancies, the corporate disclaims any loyalty to take action apart from as required via regulation.

Non-GAAP Efficiency Measures

The corporate prepares its monetary statements and items its monetary ends up in accordance with U.S. GAAP. On the other hand, it additionally supplies spare non-GAAP monetary knowledge connected to express pieces control believes to be remarkable within the analysis of its working effects and function. Reconciliations of GAAP to non-GAAP monetary knowledge, and a dialogue of why the corporate believes offering this spare knowledge comes in handy to buyers, is equipped within the “Non-GAAP Disclosures” division underneath.

Non-GAAP Disclosures
(Greenbacks in 1000’s, apart from proportion knowledge)
(unaudited)

Non-GAAP monetary measures disclosed via control are supposed to grant spare knowledge and perception relative to trade traits to buyers and, in sure instances, to give monetary knowledge as deliberate via score companies and alternative customers of monetary knowledge. Those measures aren’t in line with, or an alternative to, GAAP and is also other from, or inconsistent with, non-GAAP monetary measures impaired via alternative firms. The corporate studies this non-GAAP knowledge for the reason that corporate believes that it supplies spare knowledge relating to operational and function signs which are carefully assessed via control. There’s no complete, authoritative steering for the presentation of such non-GAAP knowledge, which is handiest supposed to complement GAAP effects via offering spare knowledge that control makes use of to evaluate efficiency.

Web source of revenue, apart from by-product marketplace price changes

SOURCE Nelnet, Inc.