NNI

LINCOLN, Neb., Aug. 6, 2026 /PRNewswire/ -- Nelnet (NYSE: NNI) today reported GAAP net income of $66.7 million, or $1.85 per share, for the second quarter of 2026, compared with GAAP net income of $181.5 million, or $4.97 per share, for the same period a year ago. Net income, excluding derivative market value adjustments1, was $63.9 million, or $1.77 per share, for the second quarter of 2026, compared with $184.4 million, or $5.05 per share, for the same period in 2025. Included in the operating results for the second quarter of 2025 is a gain of $175.0 million ($133.0 million after tax, or $3.65 per share) related to the partial redemption of Nelnet's investment in ALLO, a fiber-optic telecommunications company. Excluding this gain, GAAP net income for the second quarter of 2025 was $48.5 million, or $1.32 per share. "We delivered another quarter of solid results, reflecting the strength of our diversified strategy across consumer lending, servicing, payments, and technology, with a continued focus on education," said Jeff Noordhoek, chief executive officer of Nelnet. "This quarter included the first full quarter of contributions from our Canada servicing acquisition, and we continued to diversify our consumer lending business through additional portfolio purchases. We also continued to invest in artificial intelligence and product development across the organization. We remain focused on investing in our core businesses, pursuing opportunities for growth, and creating long-term value." Nelnet operates through three divisions: Nelnet Financial Services (NFS), Loan Servicing and Systems [referred to as Nelnet Diversified Services (NDS)], and Education Technology Services and Payments [referred to as Nelnet Business Services (NBS)]. NFS includes the company's Asset Generation and Management (AGM) and Nelnet Bank reportable operating segments, which earn interest income on loans and investments. NDS and NBS generate primarily fee-based revenue through loan servicing, education technology, and payment services. Business activities not included in these divisions are combined and reported within Corporate Activities. Nelnet Financial Services AGM As of June 30, 2026, AGM's loan portfolio totaled $7.83 billion, consisting primarily of federally insured loans originated under the Federal Family Education Loan Program ("FFEL Program" or FFELP). During the three months ended June 30, 2026, AGM acquired $3.07 billion of consumer loans, which includes $2.86 billion of short-duration Pay Later receivables that the company began to purchase during the third quarter of 2025 and $205.5 million of other consumer loans, compared with $142.5 million during the same period in 2025. The company's consumer loan portfolio has grown to $1.21 billion as of June 30, 2026, from $411.5 million as of June 30, 2025. The AGM operating segment reported loan and investment net interest income of $63.2 million for the three months ended June 30, 2026, compared with $49.9 million for the same period in 2025. The increase was primarily driven by higher loan spreads2 and growth in the company's consumer loan portfolio, partially offset by the anticipated runoff of the legacy FFELP portfolio. The average balance of FFELP loans outstanding declined from $8.7 billion for the three months ended June 30, 2025 to $6.7 billion for the same period in 2026. During the first six months of 2026, AGM contributed certain student loan trusts to Nelnet Bank that included $716.3 million of FFEL Program loans. AGM recorded a provision for loan losses of $41.3 million ($31.4 million after tax) for the three months ended June 30, 2026, compared with $11.1 million ($8.4 million after tax) for the same period in 2025. The primary item impacting provision for loan losses was the establishment of an initial allowance recorded on loans acquired during the periods to reflect lifetime expected credit losses at acquisition under the current expected credit loss (CECL) methodology. The higher provision in 2026 as compared with 2025 reflects the increase in consumer loan acquisitions and related portfolio growth rather than deterioration in underlying credit performance. Credit quality metrics, including delinquency rates and charge-offs, remained generally consistent with management's expectations. AGM holds interests in joint ventures engaged in the acquisition, ownership, and management of loan portfolios. During the three months ended June 30, 2026, AGM recognized income from these joint ventures of $8.6 million ($6.5 million after tax). AGM reported net income after tax of $22.2 million for the three months ended June 30, 2026, compared with $20.8 million for the same period in 2025. Nelnet Bank As of June 30, 2026, Nelnet Bank had a loan portfolio of $1.64 billion and an investment portfolio of $1.29 billion, and total deposits, including intercompany deposits, of $2.51 billion. Loan and investment net interest income increased to $19.3 million during the second quarter of 2026, compared with $14.1 million for the same period a year ago, due to an increase in the loan and investment portfolio, partially offset by a decrease in net interest margin. Nelnet Bank recorded a negative provision for loan losses of $0.2 million in the second quarter of 2026, compared with a provision for loan losses of $6.8 million ($5.2 million after tax) for the same period in 2025. Nelnet Bank recognized net income after tax of $10.5 million for the quarter ended June 30, 2026, compared with a loss of $0.4 million for the same period in 2025. Loan Servicing and Systems Revenue from the Loan Servicing and Systems segment was $132.2 million for the second quarter of 2026, compared with $120.7 million for the same period in 2025. The increase was due to the company's acquisition of NDS Canada during the first quarter of 2026 and growth in consumer servicing. These increases were partially offset by a decrease in borrowers serviced for the Department of Education (Department). As of June 30, 2026, the company was servicing $519.2 billion in Department, Canada student loan servicing, FFELP, private education, and consumer loans for 15.2 million borrowers. Operating margin decreased in the second quarter of 2026 compared with the same period in 2025 due to the decrease in revenue from the Department servicing contract and amortization of intangible assets from the NDS Canada acquisition. The Loan Servicing and Systems segment reported net income after tax of $11.3 million for the three months ended June 30, 2026, compared with $15.2 million for the same period in 2025. Education Technology Services and Payments For the second quarter of 2026, revenue from the Education Technology Services and Payments operating segment was $118.9 million, compared with $118.2 million for the same period in 2025. Revenue less direct costs to provide services for the second quarter of 2026 was $79.7 million, compared with $78.3 million for the same period in 2025. Operating margin decreased in the second quarter of 2026 compared with the same period in 2025 due to an increase in operating expenses to support continued growth in the customer base and investments in the development of new technologies. Net income after tax for the Education Technology Services and Payments segment was $14.7 million for the three months ended June 30, 2026, compared with $17.9 million for the same period in 2025. Corporate and Other Activities During the three months ended June 30, 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. Share Repurchases During the first six months of 2026, the company has repurchased 316,600 Class A common shares for $40.6 million (average price of $128.34 per share), including a total of 190,281 Class A common shares for $24.4 million (average price of $127.99 per share) during the quarter. Board of Directors Declares Third Quarter Dividend The Nelnet Board of Directors declared a third-quarter cash dividend on the company's outstanding shares of Class A common stock and Class B common stock of $0.33 per share. The dividend will be paid on September 15, 2026, to shareholders of record at the close of business on September 1, 2026. Forward-Looking and Cautionary Statements This press release contains forward-looking statements within the meaning of federal securities laws. The words "anticipate," "assume," "believe," "continue," "could," "ensure," "estimate," "expect," "focus," "forecast," "future," "intend," "may," "objective," "plan," "potential," "predict," "pursue," "scheduled," "should," "strategy," "will," "would," and similar expressions, as well as statements in future tense, are intended to identify forward-looking statements. These statements are based on management's current expectations as of the date of this release and are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results and performance to be materially different from any future results or performance expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to: risks related to the ability to successfully maintain and increase allocated volumes of student loans serviced by the company under existing and future servicing contracts with the Department, risks related to unfavorable contract modifications or interpretations, risks related to consistently meeting service requirements to avoid the assessment of performance penalties, and risks related to the company's ability to comply with agreements with third-party customers for the servicing of Federal Direct Loan Program, Canadian, FFEL Program, private education, and consumer loans; loan portfolio risks such as credit risk, prepayment risk, interest rate basis and repricing risk, risks related to the use of derivatives to manage exposure to interest rate fluctuations, uncertainties regarding the expected benefits from purchased securitized and unsecuritized FFELP, private education, consumer, and other loans, or residual interests therein, and initiatives to purchase additional FFELP, private education, consumer, and other loans; financing and liquidity risks, including risks of changes in the interest rate environment; risks from changes in the terms of education loans and in the educational credit and services markets resulting from changes in applicable laws, regulations, and government programs and budgets; risks related to a breach of or failure in the company's operational or information systems or infrastructure, or those of third-party vendors, including disclosure of confidential or personal information and/or damage to reputation resulting from cyber breaches; risks related to use of artificial intelligence; uncertainties inherent in forecasting future cash flows from student loan assets, including residual interests therein, and related asset-backed securitizations; risks related to the ability of Nelnet Bank to achieve its business objectives and effectively deploy loan and deposit strategies and achieve expected market penetration; risks related to the company's solar tax equity partnerships, including risks of not being able to realize tax credits which remain subject to recapture by taxing authorities and risks from the impact of the enactment of the One Big Beautiful Bill that accelerates the expiration and phase out of solar energy credits; risks and uncertainties related to other initiatives (and anticipated income therefrom) including venture capital, real estate, reinsurance, acquisitions, and other activities, including activities that are intended to diversify the company both within and outside of its historical core education-related businesses; risks and uncertainties associated with climate change; risks from changes in economic conditions and consumer behavior; risks related to the company's ability to adapt to technological change; risks related to the exclusive forum provisions in the company's articles of incorporation; risks related to the company's executive chairman's ability to control matters related to the company through voting rights; risks related to related party transactions; risks related to natural disasters, terrorist activities, or international hostilities; and risks and uncertainties associated with litigation matters, maintaining compliance with the extensive regulatory requirements applicable to the company's businesses, and uncertainties inherent in the estimates and assumptions about future events that management is required to make in the preparation of the company's consolidated financial statements. For more information, see the "Risk Factors" sections and other cautionary discussions of risks and uncertainties included in documents filed or furnished by the company with the Securities and Exchange Commission. All forward-looking statements in this release are as of the date of this release. Although the company may voluntarily update or revise its forward-looking statements from time to time to reflect actual results or changes in the company's expectations, the company disclaims any commitment to do so except as required by law. Non-GAAP Performance Measures The company prepares its financial statements and presents its financial results in accordance with U.S. GAAP. However, it also provides additional non-GAAP financial information related to specific items management believes to be important in the evaluation of its operating results and performance. Reconciliations of GAAP to non-GAAP financial information, and a discussion of why the company believes providing this additional information is useful to investors, are provided in the "Non-GAAP Disclosures" section below. Non-GAAP Disclosures(Dollars in thousands, except share data)(unaudited) Non-GAAP financial measures disclosed by management are meant to provide additional information and insight relative to business trends to investors and, in certain cases, to present financial information as measured by rating agencies and other users of financial information. These measures are not in accordance with, or a substitute for, GAAP and may be different from, or inconsistent with, non-GAAP financial measures used by other companies. The company reports this non-GAAP information because the company believes that it provides additional information regarding operational and performance indicators that are closely assessed by management. There is no comprehensive, authoritative guidance for the presentation of such non-GAAP information, which is only meant to supplement GAAP results by providing additional information that management utilizes to assess performance. View original content:https://www.prnewswire.com/news-releases/nelnet-reports-second-quarter-2026-results-302845376.html

LINCOLN, Neb., May 7, 2026 /PRNewswire/ -- Nelnet (NYSE: NNI) today reported GAAP net income of $71.1 million, or $1.97 per share, for the first quarter of 2026, compared with GAAP net income of $82.6 million, or $2.26 per share, for the same period a year ago. Net income, excluding derivative market value adjustments[1], was $69.9 million, or $1.94 per share, for the first quarter of 2026, compared with $87.4 million, or $2.39 per share, for the same period in 2025. "We're off to a strong start in 2026, with every business segment performing at a high level," said Jeff Noordhoek, chief executive officer of Nelnet. "We completed our Canadian acquisition in February, and integration is proceeding well, expanding our loan servicing reach and supporting our long-term diversification strategy focused on core strengths. This year, our focus is simple: Go. Technology is accelerating, innovation cycles are compressing, and the pace of change continues to increase. Our job is to move with speed—to be decisive and to keep pushing forward for our customers." Nelnet operates through three divisions: Nelnet Financial Services (NFS), Loan Servicing and Systems [referred to as Nelnet Diversified Services (NDS)], and Education Technology Services and Payments [referred to as Nelnet Business Services (NBS)]. NFS includes the company's Asset Generation and Management (AGM) and Nelnet Bank reportable operating segments, which earn interest income on loans and investments. NDS and NBS generate primarily fee-based revenue through loan servicing, education technology, and payment services. Business activities not included in these divisions are combined and reported within Corporate Activities. Nelnet Financial Services AGM The AGM operating segment reported loan and investment net interest income of $67.5 million during the first quarter of 2026, compared with $52.9 million for the same period a year ago. The increase in 2026 was due to an increase in loan spread[2] and growth in the company's consumer financing receivables. In the third quarter of 2025, the company began to purchase Pay Later receivables. As of March 31, 2026, the balance of Pay Later receivables was $766.2 million. The increase in net interest income was partially offset by the anticipated runoff of the legacy Federal Family Education Loan Program (the "FFEL Program" or FFELP) loan portfolio. The average balance of FFELP loans outstanding decreased from $8.6 billion for the first quarter of 2025 to $7.2 billion for the same period in 2026. AGM recorded a provision for loan losses of $48.5 million ($36.9 million after tax) in the first quarter of 2026, compared with $13.0 million ($9.9 million after tax) for the same period in 2025. The increase was primarily driven by the establishment of an initial allowance for loans acquired during the quarter. During the first quarter of 2026, AGM acquired $3.34 billion of loans, of which $2.85 billion were Pay Later receivables. The higher provision reflects portfolio growth rather than changes in underlying credit performance. Credit quality metrics, including delinquency rates and charge-offs, remained generally consistent with management's expectations. AGM holds interests in certain joint ventures engaged in the acquisition and management of loan portfolios. During the three months ended March 31, 2026, AGM recognized $15.4 million ($11.7 million after tax) of income from these joint ventures. AGM recognized net income after tax of $23.2 million for the three months ended March 31, 2026, compared with $22.7 million for the same period in 2025. Nelnet Bank As of March 31, 2026, Nelnet Bank had a $1.26 billion and $1.18 billion loan and investment portfolio, respectively, and total deposits, including intercompany deposits, of $1.96 billion. Nelnet Bank reported loan and investment net interest income of $17.8 million during the first quarter of 2026, compared with $12.4 million for the same period a year ago. The increase in 2026 was due to an increase in the loan and investment portfolio, partially offset by a decrease in net interest margin. Nelnet Bank recognized net income after tax for the quarter ended March 31, 2026 of $7.1 million, compared with $1.5 million for the same period in 2025. Loan Servicing and Systems Revenue from the Loan Servicing and Systems segment was $127.8 million for the first quarter of 2026, compared with $120.7 million for the same period in 2025. The increase was primarily due to the company's acquisition of NDS Canada during the first quarter of 2026. As of March 31, 2026, the company was servicing $525.7 billion in Department of Education, Canada Student Loan Program, FFELP, private education, and consumer loans for 15.5 million borrowers. As previously disclosed, on February 2, 2026, the company acquired a Canadian student loan servicing business ("NDS Canada") that delivers technology-enabled student loan servicing for governments and financial institutions, managing 2.7 million borrowers on proprietary platforms. Beginning on the acquisition date, the operating results of NDS Canada are included in the Loan Servicing and Systems operating segment. The Loan Servicing and Systems segment reported net income after tax of $15.0 million for the three months ended March 31, 2026, compared with $14.1 million for the same period in 2025. Education Technology Services and Payments For the first quarter of 2026, revenue from the Education Technology Services and Payments operating segment was $154.4 million, an increase from $147.3 million for the same period in 2025. Revenue less direct costs to provide services for the first quarter of 2026 was $104.5 million, compared with $99.3 million for the same period in 2025. Net income after tax for the Education Technology Services and Payments segment was $36.3 million for the three months ended March 31, 2026, compared with $36.1 million for the same period in 2025. This segment is subject to seasonal fluctuations. Based on the timing of when revenue is recognized and when expenses are incurred, revenue and operating margin are higher in the first quarter compared with the remainder of the year. Corporate and Other Activities During the three months ended March 31, 2026, the company recognized $10.8 million ($8.2 million after tax or $0.23 per share) of losses related to marketable equity securities with readily determinable fair values. These losses resulted from changes in market values during the period. Included in Corporate Activities are the company's equity interests held in partnerships that invest in solar tax equity projects. The company recognized $22.5 million ($6.9 million after tax and noncontrolling interests or $0.19 per share) of losses related to its solar tax equity partnerships during the three months ended March 31, 2026. Despite short-term losses, our tax equity investments are structured to deliver long-term value and cash flow. Board of Directors Declares Second Quarter Dividend The Nelnet Board of Directors declared a second-quarter cash dividend on the company's outstanding shares of Class A common stock and Class B common stock of $0.33 per share. The dividend will be paid on June 15, 2026, to shareholders of record at the close of business on June 1, 2026. Forward-Looking and Cautionary Statements This press release contains forward-looking statements within the meaning of federal securities laws. The words "anticipate," "assume," "believe," "continue," "could," "ensure," "estimate," "expect," "focus," "forecast," "future," "intend," "may," "objective," "plan," "potential," "predict," "pursue," "scheduled," "should," "strategy," "will," "would," and similar expressions, as well as statements in future tense, are intended to identify forward-looking statements. These statements are based on management's current expectations as of the date of this release and are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results and performance to be materially different from any future results or performance expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to: risks related to the ability to successfully maintain and increase allocated volumes of student loans serviced by the company under existing and future servicing contracts with the Department of Education, risks related to unfavorable contract modifications or interpretations, risks related to consistently meeting service requirements to avoid the assessment of performance penalties, and risks related to the company's ability to comply with agreements with third-party customers for the servicing of Federal Direct Loan Program, Canada Student Loan Program, FFEL Program, private education, and consumer loans; loan portfolio risks such as credit risk, prepayment risk, interest rate basis and repricing risk, risks related to the use of derivatives to manage exposure to interest rate fluctuations, uncertainties regarding the expected benefits from purchased securitized and unsecuritized FFELP, private education, consumer, and other loans, or residual interests therein, and initiatives to purchase additional FFELP, private education, consumer, and other loans; financing and liquidity risks, including risks of changes in the interest rate environment; risks from changes in the terms of education loans and in the educational credit and services markets resulting from changes in applicable laws, regulations, and government programs and budgets; risks related to a breach of or failure in the company's operational or information systems or infrastructure, or those of third-party vendors, including disclosure of confidential or personal information and/or damage to reputation resulting from cyber breaches; risks related to use of artificial intelligence; uncertainties inherent in forecasting future cash flows from student loan assets, including residual interests therein, and related asset-backed securitizations; risks related to the ability of Nelnet Bank to achieve its business objectives and effectively deploy loan and deposit strategies and achieve expected market penetration; risks related to the company's solar tax equity partnerships, including risks of not being able to realize tax credits which remain subject to recapture by taxing authorities and risks from the impact of the enactment of the One Big Beautiful Bill that accelerates the expiration and phase out of solar energy credits; risks and uncertainties related to other initiatives (and anticipated income therefrom) including venture capital, real estate, reinsurance, acquisitions, and other activities, including activities that are intended to diversify the company both within and outside of its historical core education-related businesses; risks and uncertainties associated with climate change; risks from changes in economic conditions and consumer behavior; risks related to the company's ability to adapt to technological change; risks related to the exclusive forum provisions in the company's articles of incorporation; risks related to the company's executive chairman's ability to control matters related to the company through voting rights; risks related to related party transactions; risks related to natural disasters, terrorist activities, or international hostilities; and risks and uncertainties associated with litigation matters, maintaining compliance with the extensive regulatory requirements applicable to the company's businesses, and uncertainties inherent in the estimates and assumptions about future events that management is required to make in the preparation of the company's consolidated financial statements. For more information, see the "Risk Factors" sections and other cautionary discussions of risks and uncertainties included in documents filed or furnished by the company with the Securities and Exchange Commission. All forward-looking statements in this release are as of the date of this release. Although the company may voluntarily update or revise its forward-looking statements from time to time to reflect actual results or changes in the company's expectations, the company disclaims any commitment to do so except as required by law. Non-GAAP Performance Measures The company prepares its financial statements and presents its financial results in accordance with U.S. GAAP. However, it also provides additional non-GAAP financial information related to specific items management believes to be important in the evaluation of its operating results and performance. Reconciliations of GAAP to non-GAAP financial information, and a discussion of why the company believes providing this additional information is useful to investors, is provided in the "Non-GAAP Disclosures" section below. Non-GAAP Disclosures (Dollars in thousands, except share data) (unaudited) Non-GAAP financial measures disclosed by management are meant to provide additional information and insight relative to business trends to investors and, in certain cases, to present financial information as measured by rating agencies and other users of financial information. These measures are not in accordance with, or a substitute for, GAAP and may be different from, or inconsistent with, non-GAAP financial measures used by other companies. The company reports this non-GAAP information because the company believes that it provides additional information regarding operational and performance indicators that are closely assessed by management. There is no comprehensive, authoritative guidance for the presentation of such non-GAAP information, which is only meant to supplement GAAP results by providing additional information that management utilizes to assess performance. Net income, excluding derivative market value adjustments View original content:https://www.prnewswire.com/news-releases/nelnet-reports-first-quarter-2026-results-302766164.html

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at consumer finance stocks, starting with Nelnet (NYSE:NNI). Consumer finance companies provide loans and credit products to individuals. Growth drivers include increasing consumer spending, financial inclusion initiatives in developing markets, and digital lending platforms reducing distribution costs. Challenges include credit risk during economic downturns, regulatory scrutiny of lending practices, and intensifying competition from traditional banks and fintech firms offering innovative credit solutions. The 20 consumer finance stocks we track reported a satisfactory Q4. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 1% below. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 12.2% since the latest earnings results. Starting as a student loan servicer in the 1970s and evolving through the changing landscape of education finance, Nelnet (NYSE:NNI) provides student loan servicing, education technology, payment processing, and banking services while managing a portfolio of education loans. Nelnet reported revenues of $341.5 million, down 8.6% year on year. This print fell short of analysts’ expectations by 10.6%. Overall, it was a softer quarter for the company with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EPS estimates. "Nelnet's teams knocked the ball out of the park in 2025, delivering record earnings and strengthening our foundation for long-term success," said Jeff Noordhoek, chief executive officer of Nelnet. Unsurprisingly, the stock is down 3.5% since reporting and currently trades at $126.72. Read our full report on Nelnet here, it’s free. Using data analytics to serve the millions of Americans with less-than-perfect credit scores, Atlanticus Holdings (NASDAQ:ATLC) provides technology and services that help lenders offer credit products to consumers often overlooked by traditional financing providers. Atlanticus Holdings reported revenues of $609.2 million, up 97.4% year on year, outperforming analysts’ expectations by 7.1%. The business had an exceptional quarter with an impressive beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates. Atlanticus Holdings scored the biggest analyst estimates beat and fastest revenue growth among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $53.05. Is now the time to buy Atlanticus Holdings? Access our full analysis of the earnings results here, it’s free. Spun off from Sallie Mae in 2014 to handle the company's loan servicing and collection operations, Navient (NASDAQ:NAVI) provides education loan servicing and business processing solutions that help manage federal student loans, private education loans, and government services. Navient reported revenues of $144 million, down 11.7% year on year, falling short of analysts’ expectations by 7.6%. It was a disappointing quarter as it posted a significant miss of analysts’ net interest income estimates and a significant miss of analysts’ revenue estimates. Navient delivered the slowest revenue growth in the group. As expected, the stock is down 33.3% since the results and currently trades at $8.04. Read our full analysis of Navient’s results here. Named after the biblical David fighting financial Goliaths, Dave (NASDAQ:DAVE) is a digital financial services platform that helps Americans living paycheck to paycheck with cash advances, banking services, and tools to improve their financial health. Dave reported revenues of $163.7 million, up 62.4% year on year. This print beat analysts’ expectations by 0.9%. It was a strong quarter as it also recorded full-year revenue guidance exceeding analysts’ expectations and a solid beat of analysts’ revenue estimates. Dave had the weakest full-year guidance update among its peers. The stock is up 3.2% since reporting and currently trades at $205.35. Read our full, actionable report on Dave here, it’s free. Originally created as a government-sponsored enterprise before privatizing in 2004, Sallie Mae (NASDAQ:SLM) is a financial services company that provides private education loans, savings products, and educational resources to help students and families pay for college. Sallie Mae reported revenues of $454.1 million, up 16.4% year on year. This number surpassed analysts’ expectations by 1%. Overall, it was a strong quarter as it also produced a beat of analysts’ EPS estimates and a narrow beat of analysts’ revenue estimates. The stock is down 26.5% since reporting and currently trades at $19.62. Read our full, actionable report on Sallie Mae here, it’s free. Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure? These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.

Futu Holdings FUTU reported fourth-quarter 2025 net income of HK$23.92 ($3.07) per American Depositary Share, rising 79.2% year over year. Revenues rose 45.3% year over year to US$827.2 million, surpassing the Zacks Consensus Estimate by 1.97%, driven by broad-based strength across brokerage commissions, interest income and other service revenue streams. Brokerage commission and handling charge income rose 34.6% year over year to $355.9 million, supported by higher overall trading volumes, partially offset by a mild decline in the blended commission rate. Interest income climbed 50.2% year over year to $390.3 million, reflecting increased contributions from the securities borrowing and lending business, bank deposits and margin financing activity. Futu Holdings Limited Sponsored ADR price-consensus-eps-surprise-chart | Futu Holdings Limited Sponsored ADR Quote Other income advanced 78.7% year over year to US$81.0 million, driven by growth in fund distribution service income and IPO subscription service charge income. Total funded accounts reached 3,365,414 as of Dec. 31, 2025, rising 39.6% year over year. FUTU added 234,000 net new funded accounts during the fourth quarter, an increase of 9% year over year. Total brokerage accounts rose 29.8% year over year to 5,948,093, while the total registered user base grew 16% year over year to 29.2 million. Total client assets reached HK$1.23 trillion as of Dec. 31, 2025, up 65.9% year over year, as robust net asset inflows were offset by depreciation in clients' Hong Kong stock holdings. Total trading volume reached a record HK$3.98 trillion (US$511.3 billion) in the fourth quarter of 2025, rising 37.8% year over year, with U.S. stock trading volume accounting for HK$3.04 trillion (US$390.6 billion) and Hong Kong stock turnover contributing HK$821.1 billion (US$105.5 billion) to the total. Margin financing and securities lending balance rose 33.1% year over year to HK$67.7 billion (US$8.7 billion), driven primarily by higher U.S. stock margin trading activity and short-term financing demand from Hong Kong IPO activity during the quarter. Wealth management client assets grew 62% year over year to HK$179.6 billion (US$23.1 billion). Futu expanded product offerings across markets, including funds focused on high dividends in Hong Kong, domestic equity-focused funds in Singapore and Shariah-compliant gold tracker funds in Malaysia. The number of IPO distribution and investor relations clients stood at 600 as of quarter end, up 24.5% year over year. Total costs declined 6.1% year over year to US$93.6 million. Gross profit rose 56.2% year over year to US$733.6 million. Gross margin expanded to 88.7% from 82.5% in the fourth quarter of 2024, reflecting operating leverage on strong top-line growth alongside lower interest expenses tied to the securities borrowing and lending business. Total operating expenses increased 8.6% year over year to $200.8 million. Research and development expenses rose 26.8% year over year to $65.1 million, reflecting increased headcount to support crypto and artificial intelligence initiatives. Selling and marketing expenses grew 9.2% year over year to $65.1 million, largely in line with growth in net new funded accounts, while customer acquisition costs remained flat year over year. General and administrative expenses declined 4.6% year over year to $70.6 million, primarily due to lower professional service expenses. Income from operations increased 87% year over year to $532.8 million. Operating margin expanded to 64.4% from 50% in the fourth quarter of 2024. Net income rose 80.2% year over year to $432.9 million. Net income margin expanded to 52.3% from 42.2% in the year-ago quarter. Non-GAAP adjusted net income, which excludes share-based compensation expenses, rose 77.0% year over year to $444million. As of Dec. 31, 2025, cash and cash equivalents were HK$10.47 billion (US$1.34 billion) compared to HK$10.72 billion as of Sept. 30, 2025. Cash held on behalf of clients declined to HK$113.4 billion from HK$127.6 billion in the prior quarter, reflecting lower client payables tied to a moderation in Hong Kong equity market activity. Borrowings rose modestly to HK$12.14 billion (US$1.56 billion) as of Dec. 31, 2025, from HK$11.82 billion as of Sept. 30, 2025, reflecting continued financing activity to support platform operations and margin lending growth. FUTU currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the broader Zacks Finance sector are Nelnet NNI, PhenixFIN PFX and ProAssurance PRA. Nelnet, PhenixFIN and ProAssurance each sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Nelnet’s 2026 EPS is pegged at $9.2 per share, down 23.21% year over year. The Zacks Consensus Estimate for PhenixFin’s 2026 EPS is pegged at $2.5 per share, down 1.96% year over year. The Zacks Consensus Estimate for ProAssurance’s 2026 EPS is pegged at $1.7 per share, down 33.95% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Nelnet, Inc. (NNI) : Free Stock Analysis Report ProAssurance Corporation (PRA) : Free Stock Analysis Report Futu Holdings Limited Sponsored ADR (FUTU) : Free Stock Analysis Report PhenixFIN Corporation (PFX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

LINCOLN, Neb., Feb. 26, 2026 /PRNewswire/ -- Nelnet (NYSE: NNI) today reported GAAP net income of $57.8 million, or $1.60 per share, for the fourth quarter of 2025, compared with GAAP net income of $63.2 million, or $1.73 per share, for the same period a year ago. Net income, excluding derivative market value adjustments1, was $56.3 million, or $1.56 per share, for the fourth quarter of 2025, compared with $52.7 million, or $1.44 per share, for the same period in 2024. "Nelnet's teams knocked the ball out of the park in 2025, delivering record earnings and strengthening our foundation for long-term success," said Jeff Noordhoek, chief executive officer of Nelnet. "Over time, we've meaningfully diversified our revenue, with each of our core businesses - consumer lending, loan servicing, payments, and technology - reporting solid performance and building real momentum. With our continued investments in technology and in both new and existing products and services, we see opportunities ahead in 2026." Nelnet operates through three divisions: Nelnet Financial Services (NFS), Loan Servicing and Systems [referred to as Nelnet Diversified Services (NDS)], and Education Technology Services and Payments [referred to as Nelnet Business Services (NBS)]. NFS includes the company's Asset Generation and Management (AGM) and Nelnet Bank reportable operating segments, which earn interest income on loans and investments. NDS and NBS generate primarily fee‑based revenue through loan servicing, education technology, and payment services. Business activities not included in these divisions are combined and reported within Corporate Activities. Nelnet Financial Services AGM The AGM operating segment reported loan and investment net interest income of $63.5 million during the fourth quarter of 2025, compared with $48.3 million for the same period a year ago. The increase in 2025 was due to an increase in loan spread2 and growth in the company's consumer financing receivables. In the third quarter of 2025, the company began to purchase Pay Later receivables. As of December 31, 2025, the balance of Pay Later receivables was $744.2 million. The increase in net interest income was offset by the anticipated runoff of the legacy Federal Family Education Loan Program (the "FFEL Program" or FFELP) loan portfolio. The average balance of FFELP loans outstanding decreased from $8.9 billion for the fourth quarter of 2024 to $7.9 billion for the same period in 2025. AGM recognized a provision for loan losses in the fourth quarter of 2025 of $32.5 million ($24.7 million after tax), compared with $13.5 million ($10.3 million after tax) in the fourth quarter of 2024. Provision for loan losses was primarily impacted by establishing an initial allowance for consumer loans acquired during the fourth quarter of 2025. AGM recognized net income after tax of $24.8 million during the fourth quarter of 2025, compared with $25.5 million for the same period in 2024. Nelnet Bank As of December 31, 2025, Nelnet Bank had a $957.6 million and $1.08 billion loan and investment portfolio, respectively, and total deposits, including intercompany deposits, of $1.76 billion. Nelnet Bank reported loan and investment net interest income of $17.6 million during the fourth quarter of 2025, compared with $12.9 million for the same period a year ago. The increase in 2025 was due to an increase in the loan and investment portfolio, partially offset by a decrease in net interest margin. Nelnet Bank recognized provision for loan losses in the fourth quarter of 2025 of $5.7 million ($4.3 million after tax), compared with $8.6 million ($6.5 million after tax) in the fourth quarter of 2024. Provision for loan losses at Nelnet Bank is due primarily from the establishment of an initial allowance for loans originated and acquired during the period. In 2024, Nelnet Bank recognized income of $5.5 million ($4.2 million after tax) related to changes in the fair value of derivative instruments that do not qualify for hedge accounting. Nelnet Bank recognized net income after tax for the quarter ended December 31, 2025 of $5.3 million, compared with $4.2 million for the same period in 2024. Loan Servicing and Systems Revenue from the Loan Servicing and Systems segment was $116.6 million for the fourth quarter of 2025, compared with $138.0 million for the same period in 2024. On April 1, 2024, the company began to earn revenue under its new Unified Servicing and Data Solution (USDS) contract which replaced its legacy student loan servicing contract with the Department of Education (Department). Revenue earned under the USDS contract on a per borrower blended basis is lower than the legacy contract. During the fourth quarter of 2024, the company recognized $10.9 million in non-recurring revenue under its Department servicing contract related to certain inflation provisions from the prior legacy contract and $4.0 million of non-recurring revenue from the conversion of a private education student loan portfolio. As of December 31, 2025, the company was servicing $486.2 billion in government-owned, FFEL Program, private education, and consumer loans for 13.2 million borrowers, compared with $532.4 billion in servicing volume for 15.8 million borrowers as of December 31, 2024. The Loan Servicing and Systems segment reported net income after tax of $8.9 million for the quarter ended December 31, 2025, compared with $20.4 million for the same period in 2024. Education Technology Services and Payments For the fourth quarter of 2025, revenue from the Education Technology Services and Payments operating segment was $112.3 million, an increase from $108.3 million for the same period in 2024. Revenue less direct costs to provide services for the fourth quarter of 2025 was $73.7 million, compared with $69.7 million for the same period in 2024. Operating expenses increased in 2025 compared with 2024, reflecting continued investment to expand the customer base and advance new product and technology development. Net income after tax for the Education Technology Services and Payments segment was $12.9 million for the quarter ended December 31, 2025, compared with $13.6 million for the same period in 2024. Corporate Activities Included in Corporate Activities are the operating results of the company's solar construction business. During the fourth quarter of 2025, the company reported a loss of $27.3 million ($20.7 million after tax or $0.57 per share) in its solar construction business. Since the acquisition of this business, the company has experienced low and, in certain cases, negative margins on projects. In addition, changes in legislation reducing clean energy tax incentives, tariff uncertainty, and rising construction costs adversely affected revenue and net income. As a result of these factors, the company sold the solar construction business in November 2025. Although the company retained a limited number of construction contracts to complete following the sale, the company does not expect the operating results from such contracts to be significant in future periods. Share Repurchases During the fourth quarter of 2025, the company repurchased 126,680 Class A common shares for $16.1 million (average price of $127.27 per share). Year-End Results GAAP net income for the year ended December 31, 2025 was $428.5 million, or $11.79 per share, compared with GAAP net income of $184.0 million, or $5.02 per share, for 2024. Net income in 2025, excluding derivative market value adjustments1, was $435.4 million, or $11.98 per share, compared with $176.4 million, or $4.81 per share, for 2024. Forward-Looking and Cautionary Statements This press release contains forward-looking statements within the meaning of federal securities laws. The words "anticipate," "assume," "believe," "continue," "could," "ensure," "estimate," "expect," "forecast," "future," "intend," "may," "plan," "potential," "predict," "scheduled," "see," "should," "will," "would," and similar expressions, as well as statements in future tense, are intended to identify forward-looking statements. These statements are based on management's current expectations as of the date of this release and are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results and performance to be materially different from any future results or performance expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to: risks related to the ability to successfully maintain and increase allocated volumes of student loans serviced by the company under existing and future servicing contracts with the Department, risks related to unfavorable contract modifications or interpretations, risks related to consistently meeting service requirements to avoid the assessment of performance penalties, and risks related to the company's ability to comply with agreements with third-party customers for the servicing of Federal Direct Loan Program, FFEL Program, private education, and consumer loans; loan portfolio risks such as credit risk, prepayment risk, interest rate basis and repricing risk, risks related to the use of derivatives to manage exposure to interest rate fluctuations, uncertainties regarding the expected benefits from purchased securitized and unsecuritized FFELP, private education, consumer, and other loans, or residual interests therein, and initiatives to purchase additional FFELP, private education, consumer, and other loans; financing and liquidity risks, including risks of changes in the interest rate environment; risks from changes in the terms of education loans and in the educational credit and services markets resulting from changes in applicable laws, regulations, and government programs and budgets; risks related to a breach of or failure in the company's operational or information systems or infrastructure, or those of third-party vendors, including disclosure of confidential or personal information and/or damage to reputation resulting from cyber breaches; risks related to use of artificial intelligence; uncertainties inherent in forecasting future cash flows from student loan assets, including residual interests therein, and related asset-backed securitizations; risks related to the ability of Nelnet Bank to achieve its business objectives and effectively deploy loan and deposit strategies and achieve expected market penetration; risks related to the company's solar tax equity partnerships, including risks of not being able to realize tax credits which remain subject to recapture by taxing authorities and risks from the impact of the enactment of the One Big Beautiful Bill that accelerates the expiration and phase out of solar energy credits; risks and uncertainties related to other initiatives (and anticipated income therefrom) including venture capital, real estate, reinsurance, acquisitions, and other activities, including activities that are intended to diversify the company both within and outside of its historical core education-related businesses; risks and uncertainties associated with climate change; risks from changes in economic conditions and consumer behavior; risks related to the company's ability to adapt to technological change; risks related to the exclusive forum provisions in the company's articles of incorporation; risks related to the company's executive chairman's ability to control matters related to the company through voting rights; risks related to related party transactions; risks related to natural disasters, terrorist activities, or international hostilities; and risks and uncertainties associated with litigation matters, maintaining compliance with the extensive regulatory requirements applicable to the company's businesses, and uncertainties inherent in the estimates and assumptions about future events that management is required to make in the preparation of the company's consolidated financial statements. For more information, see the "Risk Factors" sections and other cautionary discussions of risks and uncertainties included in documents filed or furnished by the company with the Securities and Exchange Commission. All forward-looking statements in this release are as of the date of this release. Although the company may voluntarily update or revise its forward-looking statements from time to time to reflect actual results or changes in the company's expectations, the company disclaims any commitment to do so except as required by law. Non-GAAP Performance Measures The company prepares its financial statements and presents its financial results in accordance with U.S. GAAP. However, it also provides additional non-GAAP financial information related to specific items management believes to be important in the evaluation of its operating results and performance. Reconciliations of GAAP to non-GAAP financial information, and a discussion of why the company believes providing this additional information is useful to investors, is provided in the "Non-GAAP Disclosures" section below. Non-GAAP Disclosures (Dollars in thousands, except share data) (unaudited) Non-GAAP financial measures disclosed by management are meant to provide additional information and insight relative to business trends to investors and, in certain cases, to present financial information as measured by rating agencies and other users of financial information. These measures are not in accordance with, or a substitute for, GAAP and may be different from, or inconsistent with, non-GAAP financial measures used by other companies. The company reports this non-GAAP information because the company believes that it provides additional information regarding operational and performance indicators that are closely assessed by management. There is no comprehensive, authoritative guidance for the presentation of such non-GAAP information, which is only meant to supplement GAAP results by providing additional information that management utilizes to assess performance. Net income, excluding derivative market value adjustments View original content:https://www.prnewswire.com/news-releases/nelnet-reports-fourth-quarter-2025-results-302698991.html