Please wait

For Release: February 26, 2026
Investor Contact: Phil Morgan, 402.458.3038
Nelnet, Inc. supplemental financial information for the fourth quarter 2025
(All dollars are in thousands, except per share amounts, unless otherwise noted)
The following information should be read in connection with Nelnet, Inc.'s (the “Company's”) press release for fourth quarter 2025 earnings, dated February 26, 2026, and the Company's Annual Report on Form 10-K for the year ended December 31, 2025.
Forward-looking and cautionary statements
This report contains forward-looking statements and information that are based on management's current expectations as of the date of this document. Statements that are not historical facts, including statements about the Company's plans and expectations for future financial condition, results of operations or economic performance, or that address management's plans and objectives for future operations, and statements that assume or are dependent upon future events, are forward-looking statements. The words “anticipate,” “assume,” “believe,” “continue,” “could,” “ensure,” “estimate,” “expect,” “forecast,” “future,” “intend,” “may,” “plan,” “potential,” “predict,” “scheduled,” “should,” “will,” “would,” and similar expressions, as well as statements in future tense, are intended to identify forward-looking statements.
The forward-looking statements are based on assumptions and analyses made by management in light of management's experience and its perception of historical trends, current conditions, expected future developments, and other factors that management believes are appropriate under the circumstances. These statements 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. These factors include, among others, the risks and uncertainties set forth in the “Risk Factors” section of the Company's Annual Report on Form 10-K for the year ended December 31, 2025 (the "2025 Annual Report"), and include such risks and uncertainties as:
•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 U.S. Department of Education (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, Federal Family Education Loan Program (the “FFEL Program” or FFELP), 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; 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.
All forward-looking statements contained in this report are qualified by these cautionary statements and are made only as of the date of this document. Although the Company may from time to time voluntarily update or revise its prior forward-looking statements to reflect actual results or changes in the Company's expectations, the Company disclaims any commitment to do so except as required by law.
1


Consolidated Statements of Income
(Dollars in thousands, except share data)
(unaudited)
Three months ended Year ended
December 31, 2025September 30, 2025December 31, 2024December 31, 2025December 31, 2024
Interest income:
Loan interest$184,825 162,717 178,434 686,085 787,498 
Investment interest40,559 43,241 42,815 165,374 185,901 
Total interest income225,384 205,958 221,249 851,459 973,399 
Interest expense on bonds and notes payable and bank deposits118,273 120,708 141,170 496,950 680,537 
Net interest income107,111 85,250 80,079 354,509 292,862 
Less provision (negative provision) for loan losses38,147 (3,563)22,057 67,851 54,607 
Less provision for beneficial interests2,679 2,145 4,628 11,311 39,491 
Net interest income after provision66,285 86,668 53,394 275,347 198,764 
Other income (expense):
Loan servicing and systems revenue116,573 151,052 137,981 509,089 482,408 
Education technology services and payments revenue112,314 129,321 108,335 507,150 486,962 
Reinsurance premiums earned33,539 23,165 18,673 107,502 62,923 
Solar construction revenue3,379 5,738 13,828 14,371 56,569 
Other, net16,749 33,258 27,836 97,587 59,959 
Gain on partial redemption of ALLO investment— — — 175,044 — 
Derivative settlements, net451 761 1,087 2,700 6,134 
Derivative market value adjustments, net1,879 (788)13,792 (9,098)10,124 
Total other income (expense), net284,884 342,507 321,532 1,404,345 1,165,079 
Cost of services and expenses:
Loan servicing contract fulfillment and acquisition costs2,056 2,021 1,497 7,555 1,889 
Cost to provide education technology services and payments38,654 50,363 38,658 176,907 172,763 
Cost to provide solar construction services12,326 7,607 28,558 41,810 77,673 
Total cost of services53,036 59,991 68,713 226,272 252,325 
Salaries and benefits141,086 144,778 147,229 558,786 576,931 
Depreciation and amortization9,365 7,327 12,544 33,571 58,116 
Reinsurance losses and underwriting expenses25,715 19,962 16,180 93,551 55,246 
Impairment expense17,220 7,000 1,136 29,612 3,138 
Other expenses58,369 53,669 50,681 211,568 189,503 
Total operating expenses251,755 232,736 227,770 927,088 882,934 
Income before income taxes46,378 136,448 78,443 526,332 228,584 
Income tax expense(7,691)(35,773)(15,016)(127,986)(52,669)
Net income38,687 100,675 63,427 398,346 175,915 
Net loss (income) attributable to noncontrolling interests19,084 6,009 (268)30,128 8,130 
Net income attributable to Nelnet, Inc.$57,771 106,684 63,159 428,474 184,045 
Earnings per common share:
Net income attributable to Nelnet, Inc. shareholders - basic and diluted$1.60 2.94 1.73 11.79 5.02 
Weighted-average common shares outstanding -
basic and diluted
36,088,994 36,316,315 36,461,513 36,341,197 36,642,533 
2

Condensed Consolidated Balance Sheets
(Dollars in thousands)
(unaudited)
As ofAs ofAs of
December 31, 2025September 30, 2025December 31, 2024
Assets:
Loans and accrued interest receivable, net$10,006,695 10,227,261 9,992,744 
Cash, cash equivalents, and investments2,643,954 2,455,950 2,395,214 
Restricted cash677,563 550,371 736,502 
Goodwill and intangible assets, net187,312 189,783 194,357 
Other assets548,259 453,317 458,936 
Total assets$14,063,783 13,876,682 13,777,753 
Liabilities:
Bonds and notes payable$7,780,927 7,822,531 8,309,797 
Bank deposits1,669,173 1,476,765 1,186,131 
Other liabilities1,036,454 990,691 982,708 
Total liabilities10,486,554 10,289,987 10,478,636 
Equity:
Total Nelnet, Inc. shareholders' equity3,685,792 3,653,290 3,349,762 
Noncontrolling interests(108,563)(66,595)(50,645)
Total equity3,577,229 3,586,695 3,299,117 
Total liabilities and equity$14,063,783 13,876,682 13,777,753 
3

Overview
Nelnet is an operating holding company with primary businesses in consumer lending, loan servicing, payments, and technology-enabled services, many of which are focused on serving customers in the education sector. The Company conducts these activities both directly and through its wholly owned and majority-owned subsidiaries, and actively manages and operates its businesses on an integrated basis. Nelnet’s largest operating and technology platforms support loan servicing and education-related technology and payment solutions. A significant portion of the Company’s revenue is derived from net interest income earned on a portfolio of federally insured student loans, a substantial portion of which is serviced by the Company.
The Company has also broadened its operating business mix both within and beyond its historical education-focused activities. These businesses include banking and other financial services conducted through the Company’s bank and other subsidiaries, asset management and related customer-facing servicing, real estate development and management, reinsurance operations, renewable energy development, and selected strategic interests in early-stage, emerging growth, and other operating enterprises. The Company actively manages such businesses and holds interests in them for strategic and operational purposes.
The Company was formed as a Nebraska corporation in 1978 to service federal student loans for two local banks. The Company built on this initial foundation as a servicer to become a leading originator, holder, and servicer of federal student loans, principally consisting of loans originated under the FFEL Program.
The Health Care and Education Reconciliation Act of 2010 discontinued new loan originations under the FFEL Program, effective July 1, 2010, and requires all new federal student loan originations be made directly by the Department through the Federal Direct Loan Program. This law does not alter or affect the terms and conditions of existing FFELP loans. Subsequent to the Reconciliation Act of 2010, the Company no longer originates FFELP loans. However, a significant portion of the Company's income continues to be derived from its existing FFELP student loan portfolio. Interest income on the Company's existing FFELP loan portfolio will decline over time as the portfolio is paid down. To reduce its reliance on interest income from FFELP loans, the Company has expanded its services and products. This expansion has been accomplished through internal growth and innovation as well as acquisitions. The Company is also actively expanding its private education, consumer, and other loan portfolios, or residual interests therein, and as part of this strategy launched Nelnet Bank in 2020. In addition, the Company has been servicing federally owned student loans for the Department since 2009.


4

GAAP Net Income and Non-GAAP Net Income, Excluding Adjustments
The Company prepares its financial statements and presents its financial results in accordance with 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. A reconciliation of the Company's GAAP net income to Non-GAAP net income excluding derivative market value adjustments, and a discussion of why the Company believes providing this additional information is useful to investors, are provided below.
Three months endedYear ended
December 31, 2025September 30, 2025December 31, 2024December 31, 2025December 31, 2024
GAAP net income attributable to Nelnet, Inc.$57,771 106,684 63,159 428,474 184,045 
Realized and unrealized derivative market value adjustments (a)(1,879)788 (13,792)9,098 (10,124)
Tax effect (b)451 (189)3,310 (2,184)2,430 
Non-GAAP net income attributable to Nelnet, Inc., excluding derivative market value adjustments$56,343 107,283 52,677 435,388 176,351 
Earnings per share:
GAAP net income attributable to Nelnet, Inc.$1.60 2.94 1.73 11.79 5.02 
Realized and unrealized derivative market value adjustments (a)(0.05)0.02 (0.38)0.25 (0.28)
Tax effect (b)0.01 (0.01)0.09 (0.06)0.07 
Non-GAAP net income attributable to Nelnet, Inc., excluding derivative market value adjustments$1.56 2.95 1.44 11.98 4.81 

(a)"Derivative market value adjustments" includes both the realized portion of gains and losses (corresponding to variation margin received or paid on derivative instruments that are settled daily at a central clearinghouse) and the unrealized portion of gains and losses that are caused by changes in fair values of derivatives which do not qualify for "hedge treatment" under GAAP. "Derivative market value adjustments" does not include "derivative settlements" that represent the cash paid or received during the respective period to settle with derivative instrument counterparties the economic effect of the Company's derivative instruments based on their contractual terms.

The accounting for derivatives requires that changes in the fair value of derivative instruments be recognized currently in earnings, with no fair value adjustment of the hedged item, unless specific hedge accounting criteria are met. Management has structured all of the Company’s derivative transactions with the intent that each is economically effective; however, the majority of the Company’s derivative instruments do not qualify for hedge accounting in the consolidated financial statements. As a result, the change in fair value for the derivative instruments that do not qualify for hedge accounting is reported in current period earnings with no consideration for the corresponding change in fair value of the hedged item. Under GAAP, the cumulative net realized and unrealized gain or loss caused by changes in fair values of derivatives in which the Company plans to hold to maturity will generally equal zero over the life of the contract. However, the net realized and unrealized gain or loss during any given reporting period fluctuates significantly from period to period.

The Company believes these point-in-time estimates of asset and liability values related to its derivative instruments that are subject to interest rate fluctuations are subject to volatility mostly due to timing and market factors beyond the control of management, and affect the period-to-period comparability of the results of operations. Accordingly, the Company’s management utilizes operating results excluding these items for comparability purposes when making decisions regarding the Company’s performance and in presentations with credit rating agencies, lenders, and investors. Consequently, 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 and represents what earnings would have been had these derivatives qualified for hedge accounting. 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.
(b)The tax effects are calculated by multiplying the realized and unrealized derivative market value adjustments by the applicable statutory income tax rate.

5

Operating Segments
A description of the Company's reportable operating segments is included in note 1 of the notes to consolidated financial statements included in the Company's 2025 Annual Report. The Company's reportable operating segments include:
•Loan Servicing and Systems (LSS) - referred to as Nelnet Diversified Services (NDS)
•Education Technology Services and Payments (ETSP) - referred to as Nelnet Business Services (NBS)
•Asset Generation and Management (AGM), part of the Nelnet Financial Services (NFS) division
•Nelnet Bank, part of the NFS division
The Company earns fee-based revenue through its NDS and NBS reportable operating segments. The Company earns net interest income on its loan portfolio, consisting primarily of FFELP loans, through its AGM reportable operating segment. This segment is expected to generate significant amounts of cash as the FFELP portfolio amortizes. The Company actively works to maximize the amount and timing of cash flows generated from its FFELP portfolio and seeks to acquire additional loan assets to leverage its servicing scale and expertise to generate incremental earnings and cash flow. Nelnet Bank operates as an internet industrial bank franchise focused on the private education and unsecured consumer loan markets, with a home office in Salt Lake City, Utah.
The NFS division was formed to focus on the Company’s key objective to maximize the amount and timing of cash flows generated from its FFELP portfolio and reposition itself for the post-FFELP environment by expanding its private education, consumer, and other loan portfolios. In addition to AGM and Nelnet Bank being part of the NFS division, NFS’s other operating segments that are not reportable include the operating results of:
•Nelnet Insurance Services, which primarily includes multiple reinsurance treaties on property and casualty policies
•Whitetail Rock Capital Management, LLC (WRCM), the Company's U.S. Securities and Exchange Commission (SEC)-registered investment advisor subsidiary
•The Company’s ownership and activities in real estate
•The Company’s ownership and management of its bond portfolio (primarily student loan and other asset-backed securities)
Other business activities and operating segments that are not reportable and not part of the NFS division are combined and included in Corporate and Other Activities ("Corporate"). Corporate includes the following items:
•Shared service activities related to human resources, accounting, legal, enterprise risk management, information technology, occupancy, and marketing. These costs are allocated to each operating segment based on estimated use of such activities and services
•Corporate costs and overhead functions not allocated to operating segments, including executive management, innovation initiatives, and other holding company organizational costs
•The operating results of the Company’s participation in renewable energy solar developments through tax equity structures and administrative and management services provided by the Company on solar tax equity investments made by third parties
•The operating results of Nelnet Renewable Energy, the Company’s solar engineering, procurement, and construction business. The Company sold its ownership interest in Nelnet Renewable Energy during the fourth quarter of 2025.
•The operating results of certain of the Company’s investment activities, including its ownership in ALLO Holdings LLC, a holding company for ALLO Communications LLC (collectively referred to as “ALLO”) and early-stage and emerging growth companies (venture capital)
•Interest income earned on cash balances held at the corporate level and interest expense incurred on unsecured corporate related debt transactions
•Other product and service offerings that are not considered reportable operating segments

6

The following table presents the operating results (net income (loss) before taxes) for each of the Company’s reportable and certain other operating segments reconciled to the consolidated financial statements:
Three months endedYear ended
December 31, 2025September 30, 2025December 31, 2024December 31, 2025December 31, 2024
NDS$11,649 46,270 26,810 96,389 40,497 
NBS16,993 24,957 17,851 112,957 117,896 
Nelnet Financial Services division:
AGM32,630 36,621 33,490 126,480 75,202 
Nelnet Bank7,040 6,088 5,387 14,613 (1,942)
Nelnet Insurance Services7,941 4,061 3,408 15,209 11,332 
WRCM1,247 1,933 1,357 5,972 5,391 
Real estate(5,723)1,513 (1,107)(6,152)(3,333)
Bond portfolio10,410 12,936 7,736 39,441 42,328 
Corporate:
Unallocated shared services and corporate costs(10,073)(9,909)(16,805)(41,893)(46,194)
Renewable energy solar developments(7,485)(15,497)6,585 (23,770)(2,179)
Nelnet Renewable Energy - solar construction(27,341)(6,025)(17,046)(57,540)(35,972)
ALLO148 1,137 6,133 194,936 8,087 
Venture capital(206)33,520 2,063 38,874 6,912 
Other corporate activities9,053 (1,268)2,504 10,418 10,481 
Eliminations/reclassifications94 112 77 398 77 
Net income before taxes46,378 136,448 78,443 526,332 228,584 
Income tax expense(7,691)(35,773)(15,016)(127,986)(52,669)
Net loss (income) attributable to noncontrolling interests19,084 6,009 (268)30,128 8,130 
Net income$57,771 106,684 63,159 428,474 184,045 
Impact of Significant Transactions on 2025 Operating Highlights
Operating results for fiscal year 2025 were materially affected by certain transactions which are summarized below.
Partial Redemption of ALLO Membership Interests
ALLO, a fiber communication services provider, was a former majority-owned subsidiary, until a recapitalization of ALLO in 2020 resulted in a deconsolidation of ALLO from the Company’s consolidated financial statements. In June 2025, ALLO redeemed certain of its membership interests from members, including Nelnet. As part of the transaction, ALLO redeemed more than 50% of Nelnet’s voting membership interest in ALLO and all its outstanding preferred membership interest. At the closing of the transaction, Nelnet received cash proceeds of $410.9 million from ALLO related to these redemptions and recognized a pre-tax gain of $175.0 million, attributable to the redemption of the voting membership interest. This gain is included in “ALLO” in the above table. Following the transaction, Nelnet maintains a significant voting equity interest in ALLO. Nelnet’s ownership of voting membership interest in ALLO decreased from 45% to 27%.
Government Servicing Contract
Upon reaching a final agreement with the Department of Education, the Company's Loan Servicing and Systems operating segment (NDS) recognized $32.9 million of non-recurring revenue in the third quarter 2025 on a contract modification for services previously performed. This revenue is included in the operating results of “NDS” in the above table.
Venture Capital
The Company has an interest in CompanyCam, Inc. (“CompanyCam”), a technology company that provides a photo-based, cloud managed application designed for contractors and field service professionals to document projects in real-time. In August 2025, CompanyCam completed an additional equity raise and accepted tender offers to redeem existing equity holders with a portion of the proceeds. The Company redeemed a portion of its interest and received cash proceeds of $10.1 million and recognized a pre-tax gain of $7.8 million. The Company accounts for its interest in CompanyCam using the measurement alternative method, which
7

requires it to adjust its carrying value for changes resulting from observable market transactions. As a result of CompanyCam’s equity raise, the Company recognized a pre-tax gain of $22.4 million during the third quarter of 2025 to adjust its carrying value of its remaining interest in CompanyCam to reflect the August 2025 transaction value. These gains are included in “Venture capital” in the above table. After the completion of this transaction, the carrying amount of the Company’s remaining interest in CompanyCam is $31.7 million.
Reversal of Provision for Loan Losses for Loans Sold
In July 2025, the Company sold $203.3 million of consumer loans to an unrelated third party who securitized such loans. As partial consideration received for the loans sold, the Company received a residual interest in the loan securitization that is included in “other investments and notes receivable, net” on the Company's consolidated balance sheet. Once a loan is classified as held for sale, any allowance for loan losses that existed immediately prior to the reclassification to held for sale is reversed. The Company reduced its allowance (and recognized negative provision expense) of $28.9 million (that increased income) related to this loan sale. The reversal of the allowance related to this loan sale is included in the operating results of “AGM” in the above table.
Nelnet Renewable Energy (NRE)
NRE was the Company’s solar construction subsidiary, providing full‑service engineering, procurement, and construction (EPC) services. The Company entered the EPC business through its acquisition of GRNE Solar in July 2022. Following the acquisition, NRE 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 NRE in November 2025.
For the year ended December 31, 2025, NRE generated a net loss before taxes of $57.5 million, as reflected in the table above. 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.
Recent Development
On February 2, 2026, the Company acquired a Canadian student loan servicing business for CAD $130.5 million (USD $95.7 million). The acquired business (“NDS Canada”) 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 will be included in the Loan Servicing and Systems reportable operating segment.
8

Segment Reporting
The following tables present the results of each of the Company's reportable operating segments reconciled to the consolidated financial statements:
Three months ended December 31, 2025
Reportable SegmentsReconciling Items
Loan Servicing and Systems (LSS)Education Technology Services and Payments (ETSP)Asset
Generation and
Management		Nelnet BankTotal Reportable SegmentsNFS Other Operating SegmentsCorporate and Other ActivitiesEliminations/ ReclassificationsTotal
Interest income:
Loan interest$— — 167,109 17,716 184,825 — — — 184,825 
Investment interest565 5,556 11,763 16,200 34,084 16,680 2,923 (13,128)40,559 
Total interest income565 5,556 178,872 33,916 218,909 16,680 2,923 (13,128)225,384 
Interest expense— — 115,383 16,356 131,739 1,380 (1,718)(13,128)118,273 
Net interest income565 5,556 63,489 17,560 87,170 15,300 4,641 — 107,111 
Less provision (negative provision) for loan losses— — 32,491 5,656 38,147 — — — 38,147 
Less provision for beneficial interests— — 2,679 — 2,679 — — — 2,679 
Net interest income after provision565 5,556 28,319 11,904 46,344 15,300 4,641 — 66,285 
Other income (expense):
LSS revenue116,573 — — — 116,573 — — — 116,573 
ETSP revenue— 112,314 — — 112,314 — — — 112,314 
Intersegment revenue5,559 66 — — 5,625 — — (5,625)— 
Reinsurance premiums earned— — — — — 33,539 — — 33,539 
Solar construction revenue— — — — — — 3,379 — 3,379 
Other, net128 — 17,100 1,482 18,710 (3,121)1,067 93 16,749 
Gain on partial redemption of ALLO investment— — — — — — — — — 
Derivative settlements, net— — 339 112 451 — — — 451 
Derivative market value adjustments, net— — 225 747 972 — 907 — 1,879 
Total other income (expense), net122,260 112,380 17,664 2,341 254,645 30,418 5,353 (5,532)284,884 
Cost of services and expenses:
Total cost of services2,056 38,654 — — 40,710 — 12,326 — 53,036 
Salaries and benefits66,557 43,055 1,702 3,022 114,336 888 25,874 (12)141,086 
Depreciation and amortization2,769 3,445 — 354 6,568 — 2,797 — 9,365 
Reinsurance losses and underwriting expenses— — — — — 25,715 — — 25,715 
Postage expense9,483 9,483 (9,483)— 
Servicing fees8,566 862 9,428 (9,428)— 
Impairment expense— — — — — 3,920 13,300 — 17,220 
Other expenses13,480 9,474 1,888 2,244 27,086 1,024 16,793 13,467 58,369 
Intersegment expenses, net16,831 6,315 1,197 723 25,066 296 (25,192)(170)— 
Total operating expenses109,120 62,289 13,353 7,205 191,967 31,843 33,572 (5,626)251,755 
Income (loss) before income taxes11,649 16,993 32,630 7,040 68,312 13,875 (35,904)94 46,378 
Income tax (expense) benefit(2,796)(4,078)(7,827)(1,746)(16,447)(3,305)12,061 — (7,691)
Net income (loss)8,853 12,915 24,803 5,294 51,865 10,570 (23,843)94 38,687 
Net (income) loss attributable to noncontrolling interests— — (18)— (18)(104)19,300 (94)19,084 
Net income (loss) attributable to Nelnet, Inc.$8,853 12,915 24,785 5,294 51,847 10,466 (4,543)— 57,771 

9

Three months ended September 30, 2025
Reportable SegmentsReconciling Items
Loan Servicing and Systems (LSS)Education Technology Services and Payments (ETSP)Asset
Generation and
Management		Nelnet BankTotal Reportable SegmentsNFS Other Operating SegmentsCorporate and Other ActivitiesEliminations/ ReclassificationsTotal
Interest income:
Loan interest$— — 145,984 16,733 162,717 — — — 162,717 
Investment interest531 8,564 12,051 14,849 35,995 14,985 3,134 (10,872)43,241 
Total interest income531 8,564 158,035 31,582 198,712 14,985 3,134 (10,872)205,958 
Interest expense— — 113,350 16,179 129,529 1,359 692 (10,872)120,708 
Net interest income531 8,564 44,685 15,403 69,183 13,626 2,442 — 85,250 
Less provision (negative provision) for loan losses— — (7,374)3,811 (3,563)— — — (3,563)
Less provision for beneficial interests— — 2,145 — 2,145 — — — 2,145 
Net interest income after provision531 8,564 49,914 11,592 70,601 13,626 2,442 — 86,668 
Other income (expense):
LSS revenue151,052 — — — 151,052 — — — 151,052 
ETSP revenue— 129,321 — — 129,321 — — — 129,321 
Intersegment revenue5,313 70 — — 5,383 — — (5,383)— 
Reinsurance premiums earned— — — — — 23,165 — — 23,165 
Solar construction revenue— — — — — — 5,738 — 5,738 
Other, net105 — (2,277)1,308 (864)5,674 28,336 112 33,258 
Gain on partial redemption of ALLO investment— — — — — — — — — 
Derivative settlements, net— — 594 167 761 — — — 761 
Derivative market value adjustments, net— — (461)(327)(788)— — — (788)
Total other income (expense), net156,470 129,391 (2,144)1,148 284,865 28,839 34,074 (5,271)342,507 
Cost of services and expenses:
Total cost of services2,021 50,363 — — 52,384 — 7,607 — 59,991 
Salaries and benefits70,126 43,029 1,971 2,817 117,943 668 26,193 (26)144,778 
Depreciation and amortization1,725 2,504 — 355 4,584 — 2,743 — 7,327 
Reinsurance losses and underwriting expenses— — — — — 19,962 — — 19,962 
Postage expense8,735 8,735 (8,735)— 
Servicing fees6,687 838 7,525 (7,525)— 
Impairment expense— 1,145 — — 1,145 — 5,855 — 7,000 
Other expenses10,862 9,537 1,243 1,916 23,558 1,103 17,901 11,107 53,669 
Intersegment expenses, net17,262 6,420 1,248 726 25,656 289 (25,741)(204)— 
Total operating expenses108,710 62,635 11,149 6,652 189,146 22,022 26,951 (5,383)232,736 
Income (loss) before income taxes46,270 24,957 36,621 6,088 113,936 20,443 1,958 112 136,448 
Income tax (expense) benefit(11,105)(5,990)(8,783)(1,483)(27,361)(4,866)(3,547)— (35,773)
Net income (loss)35,165 18,967 27,838 4,605 86,575 15,577 (1,589)112 100,675 
Net (income) loss attributable to noncontrolling interests— — (27)— (27)(169)6,317 (112)6,009 
Net income (loss) attributable to Nelnet, Inc.$35,165 18,967 27,811 4,605 86,548 15,408 4,728 — 106,684 





10

Three months ended December 31, 2024
Reportable SegmentsReconciling Items
Loan Servicing and Systems (LSS)Education Technology Services and Payments (ETSP)Asset
Generation and
Management		Nelnet BankTotal Reportable SegmentsNFS Other Operating SegmentsCorporate and Other ActivitiesEliminations/ ReclassificationsTotal
Interest income:
Loan interest$— — 165,210 13,224 178,434 — — — 178,434 
Investment interest831 6,576 13,789 12,691 33,887 10,447 2,207 (3,726)42,815 
Total interest income831 6,576 178,999 25,915 212,321 10,447 2,207 (3,726)221,249 
Interest expense— — 130,668 12,987 143,655 1,568 (327)(3,726)141,170 
Net interest income831 6,576 48,331 12,928 68,666 8,879 2,534 — 80,079 
Less provision (negative provision) for loan losses— — 13,493 8,564 22,057 — — — 22,057 
Less provision for beneficial interests— — 4,628 — 4,628 — — — 4,628 
Net interest income after provision831 6,576 30,210 4,364 41,981 8,879 2,534 — 53,394 
Other income (expense):
LSS revenue137,981 — — — 137,981 — — — 137,981 
ETSP revenue— 108,335 — — 108,335 — — — 108,335 
Intersegment revenue6,073 55 — — 6,128 — — (6,128)— 
Reinsurance premiums earned— — — — — 18,673 — — 18,673 
Solar construction revenue— — — — — — 13,828 — 13,828 
Other, net684 — 4,682 960 6,326 1,549 19,884 77 27,836 
Gain on partial redemption of ALLO investment— — — — — — — — — 
Derivative settlements, net— — 860 227 1,087 — — — 1,087 
Derivative market value adjustments, net— — 8,297 5,495 13,792 — — — 13,792 
Total other income (expense), net144,738 108,390 13,839 6,682 273,649 20,222 33,712 (6,051)321,532 
Cost of services and expenses:
Total cost of services1,497 38,658 — — 40,155 — 28,558 — 68,713 
Salaries and benefits76,194 42,760 1,255 2,631 122,840 457 23,989 (57)147,229 
Depreciation and amortization4,171 2,519 — 338 7,028 — 5,516 — 12,544 
Reinsurance losses and underwriting expenses— — — — — 16,180 — — 16,180 
Postage expense8,470 8,470 (8,470)— 
Servicing fees7,087 662 7,749 (7,749)— 
Impairment expense736 — — — 736 — 400 — 1,136 
Other expenses12,163 8,509 936 1,396 23,004 882 16,220 10,575 50,681 
Intersegment expenses, net15,528 4,669 1,281 632 22,110 188 (21,871)(427)— 
Total operating expenses117,262 58,457 10,559 5,659 191,937 17,707 24,254 (6,128)227,770 
Income (loss) before income taxes26,810 17,851 33,490 5,387 83,538 11,394 (16,566)77 78,443 
Income tax (expense) benefit(6,434)(4,298)(8,038)(1,222)(19,992)(2,711)7,688 — (15,016)
Net income (loss)20,376 13,553 25,452 4,165 63,546 8,683 (8,878)77 63,427 
Net (income) loss attributable to noncontrolling interests— 57 — — 57 (97)(151)(77)(268)
Net income (loss) attributable to Nelnet, Inc.$20,376 13,610 25,452 4,165 63,603 8,586 (9,029)— 63,159 

11

Year ended December 31, 2025
Reportable SegmentsReconciling Items
Loan Servicing and Systems (LSS)Education Technology Services and Payments (ETSP)Asset
Generation and
Management		Nelnet BankTotal Reportable SegmentsNFS Other Operating SegmentsCorporate and Other ActivitiesEliminations/ ReclassificationsTotal
Interest income:
Loan interest$— — 624,861 61,224 686,085 — — — 686,085 
Investment interest2,441 26,476 49,226 57,478 135,621 49,356 11,029 (30,632)165,374 
Total interest income2,441 26,476 674,087 118,702 821,706 49,356 11,029 (30,632)851,459 
Interest expense— — 463,102 59,284 522,386 4,938 258 (30,632)496,950 
Net interest income2,441 26,476 210,985 59,418 299,320 44,418 10,771 — 354,509 
Less provision (negative provision) for loan losses— — 49,261 18,590 67,851 — — — 67,851 
Less provision for beneficial interests— — 11,311 — 11,311 — — — 11,311 
Net interest income after provision2,441 26,476 150,413 40,828 220,158 44,418 10,771 — 275,347 
Other income (expense):
LSS revenue509,089 — — — 509,089 — — — 509,089 
ETSP revenue— 507,150 — — 507,150 — — — 507,150 
Intersegment revenue22,158 265 — — 22,423 — — (22,423)— 
Reinsurance premiums earned— — — — — 107,502 — — 107,502 
Solar construction revenue— — — — — — 14,371 — 14,371 
Other, net459 — 27,235 3,324 31,018 8,928 57,244 397 97,587 
Gain on partial redemption of ALLO investment— — — — — — 175,044 — 175,044 
Derivative settlements, net— — 2,094 606 2,700 — — — 2,700 
Derivative market value adjustments, net— — (6,196)(3,809)(10,005)— 907 — (9,098)
Total other income (expense), net531,706 507,415 23,133 121 1,062,375 116,430 247,566 (22,026)1,404,345 
Cost of services and expenses:
Total cost of services7,555 176,907 — — 184,462 — 41,810 — 226,272 
Salaries and benefits271,806 169,424 6,363 11,446 459,039 2,573 97,346 (172)558,786 
Depreciation and amortization8,969 10,884 — 1,400 21,253 — 12,318 — 33,571 
Reinsurance losses and underwriting expenses— — — — — 93,551 — — 93,551 
Postage expense35,344 35,344 (35,344)— 
Servicing fees29,266 3,191 32,457 (32,457)— 
Impairment expense— 1,145 — — 1,145 4,001 24,466 — 29,612 
Other expenses46,273 37,962 6,483 7,487 98,205 5,104 61,975 46,284 211,568 
Intersegment expenses, net67,811 24,612 4,954 2,812 100,189 1,149 (100,603)(735)— 
Total operating expenses430,203 244,027 47,066 26,336 747,632 106,378 95,502 (22,424)927,088 
Income (loss) before income taxes96,389 112,957 126,480 14,613 350,439 54,470 121,025 398 526,332 
Income tax (expense) benefit(23,134)(27,120)(30,335)(3,562)(84,151)(12,950)(30,885)— (127,986)
Net income (loss)73,255 85,837 96,145 11,051 266,288 41,520 90,140 398 398,346 
Net (income) loss attributable to noncontrolling interests— 45 (85)— (40)(511)31,077 (398)30,128 
Net income (loss) attributable to Nelnet, Inc.$73,255 85,882 96,060 11,051 266,248 41,009 121,217 — 428,474 

12

Year ended December 31, 2024
Reportable SegmentsReconciling Items
Loan Servicing and Systems (LSS)Education Technology Services and Payments (ETSP)Asset
Generation and
Management		Nelnet BankTotal Reportable SegmentsNFS Other Operating SegmentsCorporate and Other ActivitiesEliminations/ ReclassificationsTotal
Interest income:
Loan interest$— — 749,117 38,381 787,498 — — — 787,498 
Investment interest4,877 29,891 68,302 45,992 149,062 54,357 11,773 (29,291)185,901 
Total interest income4,877 29,891 817,419 84,373 936,560 54,357 11,773 (29,291)973,399 
Interest expense— — 654,346 44,859 699,205 8,837 1,787 (29,291)680,537 
Net interest income4,877 29,891 163,073 39,514 237,355 45,520 9,986 — 292,862 
Less provision (negative provision) for loan losses— — 27,691 26,916 54,607 — — — 54,607 
Less provision for beneficial interests— — 39,491 — 39,491 — — — 39,491 
Net interest income after provision4,877 29,891 95,891 12,598 143,257 45,520 9,986 — 198,764 
Other income (expense):
LSS revenue482,408 — — — 482,408 — — — 482,408 
ETSP revenue— 486,962 — — 486,962 — — — 486,962 
Intersegment revenue24,493 220 — — 24,713 — — (24,713)— 
Reinsurance premiums earned— — — — — 62,923 — — 62,923 
Solar construction revenue— — — — — — 56,569 — 56,569 
Other, net2,769 — 14,236 2,951 19,956 8,313 31,613 77 59,959 
Gain on partial redemption of ALLO investment— — — — — — — — — 
Derivative settlements, net— — 5,217 917 6,134 — — — 6,134 
Derivative market value adjustments, net— — 5,422 4,702 10,124 — — — 10,124 
Total other income (expense), net509,670 487,182 24,875 8,570 1,030,297 71,236 88,182 (24,636)1,165,079 
Cost of services and expenses:
Total cost of services1,889 172,763 — — 174,652 — 77,673 — 252,325 
Salaries and benefits300,366 164,716 4,784 11,122 480,988 1,587 96,148 (1,792)576,931 
Depreciation and amortization19,475 10,531 — 1,282 31,288 — 26,828 — 58,116 
Reinsurance losses and underwriting expenses— — — — — 55,246 — — 55,246 
Postage expense36,820 36,820 (36,820)— 
Servicing fees31,591 1,373 32,964 (32,964)— 
Impairment expense736 — — — 736 — 2,402 — 3,138 
Other expenses43,282 32,281 4,152 6,972 86,687 3,352 53,581 45,883 189,503 
Intersegment expenses, net71,482 18,886 5,037 2,361 97,766 853 (99,599)980 — 
Total operating expenses472,161 226,414 45,564 23,110 767,249 61,038 79,360 (24,713)882,934 
Income (loss) before income taxes40,497 117,896 75,202 (1,942)231,653 55,718 (58,865)77 228,584 
Income tax (expense) benefit(9,719)(28,333)(18,048)579 (55,521)(13,261)16,114 — (52,669)
Net income (loss)30,778 89,563 57,154 (1,363)176,132 42,457 (42,751)77 175,915 
Net (income) loss attributable to noncontrolling interests— 158 — — 158 (463)8,512 (77)8,130 
Net income (loss) attributable to Nelnet, Inc.$30,778 89,721 57,154 (1,363)176,290 41,994 (34,239)— 184,045 


13

Loan Servicing and Systems Revenue
The following table presents disaggregated revenue by service offering for the Loan Servicing and Systems operating segment:
Three months endedYear ended
December 31, 2025September 30, 2025December 31, 2024December 31, 2025December 31, 2024
Government loan servicing (a)$78,075 112,798 103,217 363,970 380,921 
Private education and consumer loan servicing24,751 24,293 24,819 94,472 63,453 
FFELP loan servicing1,969 2,035 2,642 8,878 12,212 
Software services11,389 10,584 6,415 38,416 21,032 
Outsourced services389 1,342 888 3,353 4,790 
Loan servicing and systems revenue$116,573 151,052 137,981 509,089 482,408 
(a)    Upon reaching a final agreement with the Department, the Company recognized $32.9 million of non-recurring revenue in the third quarter of 2025 on a contract modification for services previously performed. In the fourth quarter of 2024, the Company recognized $10.9 million of non-recurring revenue to reflect a settlement related to certain provisions included in the legacy contract concerning inflation adjustments.
Loan Servicing Volumes
As of
December 31,
2025		September 30,
2025		June 30,
2025		March 31,
2025		December 31,
2024		September 30,
2024		June 30,
2024		March 31,
2024		December 31,
2023
Servicing volume
(dollars in millions):
Government$434,479 458,679 465,689 482,786 489,877 492,142 489,298 495,409 494,691 
FFELP11,594 11,982 12,386 12,826 13,260 13,745 14,576 15,783 17,462 
Private and consumer40,088 38,060 38,018 46,728 29,226 20,666 19,876 21,015 20,493 
Total$486,161 508,721 516,093 542,340 532,363 526,553 523,750 532,207 532,646 
Number of servicing borrowers:
Government11,426,789 12,387,665 12,694,386 13,453,127 14,049,550 14,114,468 14,096,152 14,328,013 14,503,057 
FFELP463,109 482,696 502,205 524,421 549,861 574,979 610,745 656,814 725,866 
Private and consumer1,349,414 1,325,037 1,326,451 1,350,999 1,168,293 851,747 829,072 882,256 894,703 
Total13,239,312 14,195,398 14,523,042 15,328,547 15,767,704 15,541,194 15,535,969 15,867,083 16,123,626 
Number of remote hosted borrowers:2,886,458 2,839,493 2,056,358 1,427,800 842,200 662,075 133,681 65,295 70,580 
Education Technology Services and Payments Revenue
The following table presents disaggregated revenue by servicing offering for the Education Technology Services and Payments operating segment:
Three months endedYear ended
December 31, 2025September 30, 2025December 31, 2024December 31, 2025December 31, 2024
Tuition payment plan services$32,189 32,971 31,149 141,246 135,851 
Payment processing44,782 59,484 41,117 193,317 179,043 
Education technology services34,982 36,323 35,759 171,481 169,065 
Other361 543 310 1,106 3,003 
Education technology services and payments revenue$112,314 129,321 108,335 507,150 486,962 






14


Other Income (Expense)
The following table presents the components of "other, net" in "other income (expense)" on the consolidated statements of income:
 Three months endedYear ended
 December 31, 2025September 30, 2025December 31, 2024December 31, 2025December 31, 2024
Investment activity, net$4,855 42,317 4,989 61,072 12,438 
ALLO preferred return148 — 6,133 14,548 17,486 
Solar consulting fee income10,250 1,775 1,940 13,127 6,134 
Borrower late fee income6,617 1,817 1,369 11,664 8,828 
Administration/sponsor fee income1,422 2,267 1,375 6,400 5,823 
Investment advisory services (WRCM)1,378 2,010 1,508 6,366 5,934 
Loss from ALLO voting membership interest— — — — (10,693)
(Loss) gain from solar investments, net (a)(17,100)(10,884)4,559 (29,029)(6,477)
Gain (loss) on debt repurchases3,016 (8,304)56 (4,849)54 
(Loss) gain on sale of loans, net(158)(2,472)42 (1,720)(1,643)
Other6,321 4,732 5,865 20,008 22,075 
Other, net$16,749 33,258 27,836 97,587 59,959 
(a)    The Company accounts for its solar tax equity interests using the Hypothetical Liquidation at Book Value (HLBV) method of accounting. For the majority of these partnerships, the HLBV method results in accelerated losses during the early years of the investment, followed by gains recognized at the conclusion of the contractual agreement (generally 5 years). The following table presents (i) HLBV losses recognized by the Company and gains recognized upon the sale of partnership interests, including amounts attributable to third-party noncontrolling interest partners (syndication partners), which are included in “other, net” in "other income (expense)" on the consolidated statements of income, (ii) solar net losses and gains attributed to noncontrolling interest partners included in “net loss attributable to noncontrolling interests” on the consolidated statements of income, and (iii) the recognized pre-tax net gain (loss) attributable to the Company:
Three months endedYear ended
December 31, 2025September 30, 2025December 31, 2024December 31, 2025December 31, 2024
Losses from HLBV accounting (gross)$(29,799)(10,884)(6,530)(49,762)(21,774)
Gains from sales (gross)12,699 — 11,089 20,733 15,297 
(Losses) gains from solar investments, net(17,100)(10,884)4,559 (29,029)(6,477)
Less: (losses) gains attributable to noncontrolling members, net(18,066)(5,659)970 (27,930)(4,599)
Net gain (loss) attributable to the Company$966 (5,225)3,589 (1,099)(1,878)

15

Impairment Expense
The following table presents the impairment charges by asset and reportable operating segment:
Nelnet Financial Services
Loan Servicing and SystemsEducation Technology Services and PaymentsAsset
Generation and
Management		Nelnet BankNFS Other Operating SegmentsCorporate and Other ActivitiesTotal
Three months ended December 31, 2025
Property and equipment - solar facilities$— — — — — 9,865 9,865 
Investments - real estate and venture capital— — — — 3,920 3,435 7,355 
$— — — — 3,920 13,300 17,220 
Three months ended September 30, 2025
Investments - solar tax equity$— — — — — 5,761 5,761 
Leases, buildings, and associated improvements— — — — — 94 94 
Property and equipment - internally developed software1,145 1,145 
$— 1,145 — — — 5,855 7,000 
Three months ended December 31, 2024
Leases, buildings, and associated improvements736 — — — — — 736 
Investments - venture capital— — — — — 400 400 
$736 — — — — 400 1,136 
Year ended December 31, 2025
Property and equipment - solar facilities$— — — — — 11,767 11,767 
Investments - real estate and venture capital— — — — 4,001 3,575 7,576 
Investments - solar tax equity— — — — — 5,761 5,761 
Leases, buildings, and associated improvements— — — — — 3,363 3,363 
Property and equipment - internally developed software— 1,145 — — — — 1,145 
$— 1,145 — — 4,001 24,466 29,612 
Year ended December 31, 2024
Property and equipment - solar facilities$— — — — — 1,170 1,170 
Leases, buildings, and associated improvements736 — — — — — 736 
Other assets - solar inventory— — — — — 695 695 
Investments - venture capital— — — — — 537 537 
$736 — — — — 2,402 3,138 


16

Loans and Accrued Interest Receivable and Allowance for Loan Losses
Loans and accrued interest receivable and allowance for loan losses consisted of the following:
As ofAs ofAs of
 December 31, 2025September 30, 2025December 31, 2024
Non-Nelnet Bank:
Federally insured loans:
Stafford and other$1,772,172 1,889,476 2,108,960 
Consolidation5,665,071 5,970,781 6,279,604 
Total7,437,243 7,860,257 8,388,564 
Private education loans139,209 147,737 221,744 
Consumer loans and other financing receivables (a)1,122,717 840,739 345,560 
Non-Nelnet Bank loans8,699,169 8,848,733 8,955,868 
Nelnet Bank:
Federally insured loans:
Stafford and other23,960 24,745 — 
Consolidation148,360 154,203 — 
Total172,320 178,948 — 
Private education loans518,634 529,396 482,445 
Consumer and other loans266,608 266,539 162,152 
Nelnet Bank loans957,562 974,883 644,597 
Accrued interest receivable528,936 558,912 549,283 
Loan discount and deferred lender fees, net of unamortized loan premiums and deferred origination costs(46,894)(47,735)(42,114)
Allowance for loan losses:
Non-Nelnet Bank:
Federally insured loans(42,080)(43,535)(49,091)
Private education loans(6,894)(7,103)(11,130)
Consumer loans and other financing receivables(57,360)(33,147)(38,468)
Non-Nelnet Bank allowance for loan losses(106,334)(83,785)(98,689)
Nelnet Bank:
Federally insured loans(676)(707)— 
Private education loans(12,932)(11,732)(10,086)
Consumer and other loans(12,136)(11,308)(6,115)
Nelnet Bank allowance for loan losses(25,744)(23,747)(16,201)
 $10,006,695 10,227,261 9,992,744 
(a)Included in "consumer loans and other financing receivables" in the above table are Pay Later receivables that the Company began to purchase in the third quarter of 2025. As of September 30, 2025 and December 31, 2025, the balance of Pay Later receivables was $548.3 million and $744.2 million, respectively.
The Company has partial ownership in certain consumer, private education, and federally insured student loan securitizations that are accounted for as held-to-maturity beneficial interest investments and included in "other investments and notes receivable, net" in the Company's consolidated financial statements. As of the latest remittance reports filed by the various trusts prior to or as of December 31, 2025, the Company’s ownership correlates to approximately $1.83 billion of loans included in these securitizations. The loans held in these securitizations are not included in the above table. Investment interest income earned by the Company from the beneficial interest in loan securitizations is included in "investment interest" on the Company's consolidated statements of income and is not a component of the Company's loan interest income.
17

The following table summarizes the allowance for loan losses as a percentage of the ending loan balance for each of the Company's loan portfolios:
As ofAs ofAs of
December 31, 2025September 30, 2025December 31, 2024
Non-Nelnet Bank:
Federally insured loans (a)0.57 %0.55 %0.59 %
Private education loans4.95 %4.81 %5.02 %
Consumer loans and other financing receivables (b)5.11 %3.94 %11.13 %
Nelnet Bank:
Federally insured loans (a)0.39 %0.40 %— 
Private education loans2.49 %2.22 %2.09 %
Consumer and other loans4.55 %4.24 %3.77 %
(a)The allowance for loan losses as a percent of the risk sharing component of federally insured student loans not covered by the federal guaranty for Non-Nelnet Bank was 19.3%, 19.4%, and 20.6% as of December 31, 2025, September 30, 2025 and December 31, 2024, respectively, and for Nelnet Bank was 17.3% and 17.4% as of December 31, 2025 and September 30, 2025, respectively.
(b)In the third quarter of 2025, the Company began to purchase Pay Later receivables that have lower allowance rates.

18

Loan Activity - Non-Nelnet Bank
The following table sets forth the activity of AGM's (Non-Nelnet Bank) loan portfolios:
FFELPPrivateConsumer loans and other financing receivablesTotal
Three months ended December 31, 2025
Balance as of September 30, 2025$7,860,257 147,737 840,739 8,848,733 
Loan acquisitions (a)480,092 — 3,355,189 3,835,281 
Repayments, claims, capitalized interest, participations, and other, net(234,488)(7,820)(3,072,926)(3,315,234)
Loans lost to external parties(9,689)(708)— (10,397)
Loans sold(658,929)— (285)(659,214)
Balance as of December 31, 2025$7,437,243 139,209 1,122,717 8,699,169 
Three months ended September 30, 2025
Balance as of June 30, 2025$8,367,085 156,614 411,470 8,935,169 
Loan acquisitions (a)70,301 — 1,516,370 1,586,671 
Repayments, claims, capitalized interest, participations, and other, net(214,179)(8,084)(883,850)(1,106,113)
Loans lost to external parties(55,470)(793)— (56,263)
Loans sold(229,983)— (203,251)(433,234)
Loans contributed to Nelnet Bank(77,497)— — (77,497)
Balance as of September 30, 2025$7,860,257 147,737 840,739 8,848,733 
Three months ended December 31, 2024
Balance as of September 30, 2024$9,070,742 234,295 244,552 9,549,589 
Loan acquisitions2,000 — 194,333 196,333 
Repayments, claims, capitalized interest, participations, and other, net(248,071)(11,005)(80,677)(339,753)
Loans lost to external parties(57,208)(1,546)— (58,754)
Loans sold(378,899)— (12,648)(391,547)
Balance as of December 31, 2024$8,388,564 221,744 345,560 8,955,868 
Year ended December 31, 2025
Balance as of December 31, 2024$8,388,564 221,744 345,560 8,955,868 
Loan acquisitions (a)1,253,819 — 5,143,849 6,397,668 
Repayments, claims, capitalized interest, participations, and other, net(916,038)(37,359)(4,163,008)(5,116,405)
Loans lost to external parties(190,694)(3,003)— (193,697)
Loans sold(1,020,911)— (203,684)(1,224,595)
Loans contributed to Nelnet Bank(77,497)(42,173)— (119,670)
Balance as of December 31, 2025$7,437,243 139,209 1,122,717 8,699,169 
Year ended December 31, 2024
Balance as of December 31, 2023$11,686,207 277,320 85,935 12,049,462 
Loan acquisitions106,916 — 599,543 706,459 
Repayments, claims, capitalized interest, participations, and other, net(1,209,242)(51,262)(191,931)(1,452,435)
Loans lost to external parties(1,616,724)(4,314)— (1,621,038)
Loans sold(578,593)— (147,987)(726,580)
Balance as of December 31, 2024$8,388,564 221,744 345,560 8,955,868 
(a)The Company began to acquire Pay Later receivables during 2025. Consumer loan acquisitions excluding Pay Later receivables was $187.5 million and $169.9 million during the three months ended December 31, 2025 and September 30, 2025, respectively, and $629.7 million during the year ended December 31, 2025.
19

Loan Spread Analysis - Non-Nelnet Bank
The following table analyzes the loan spread on AGM’s (Non-Nelnet Bank) portfolio of loans, which represents the spread between the yield earned on loan assets and the costs of the liabilities and derivative instruments used to fund the assets.
Three months endedYear ended
 December 31, 2025September 30, 2025December 31, 2024December 31, 2025December 31, 2024
Variable loan yield, gross6.69 %6.89 %7.85 %7.20 %8.03 %
Consolidation rebate fees(0.78)(0.83)(0.80)(0.80)(0.80)
Discount accretion, net of premium and deferred origination costs amortization1.40 0.50 (0.08)0.40 0.02 
Variable loan yield, net7.31 6.56 6.97 6.80 7.25 
Loan cost of funds - interest expense (a)(5.22)(5.34)(5.86)(5.39)(6.34)
Loan cost of funds - basis swap derivative settlements (b)0.010.01 0.010.010.01
Variable loan spread2.10 1.23 1.12 1.42 0.92 
Fixed-rate floor income, gross0.06 0.05 0.03 0.04 0.01 
Fixed-rate floor income - derivative settlements (b)0.01 0.02 0.03 0.02 0.04 
Fixed-rate floor income, net of settlements on derivatives0.07 0.07 0.06 0.06 0.05 
Core loan spread2.17 %1.30 %1.18 %1.48 %0.97 %
Average balance of AGM's loans$9,005,162 8,774,923 9,403,661 9,134,995 10,310,430 
Average balance of AGM's debt outstanding7,923,923 7,775,269 8,654,618 8,145,206 9,871,828 
(a)The Company recognized $0.7 million and $5.6 million in non-cash interest expense during the fourth quarter of 2024 and third quarter of 2024, respectively, as a result of writing off the remaining unamortized debt discount related to the redemption of certain asset-backed debt securities prior to their maturity. The impact of this non-cash expense was excluded in the table above.
(b)Derivative settlements represent the cash paid or received during the respective period to settle with derivative instrument counterparties the economic effect of the Company's derivative instruments based on their contractual terms. Derivative accounting requires that net settlements with respect to derivatives that do not qualify for "hedge treatment" under GAAP be recorded in a separate income statement line item below net interest income. The Company maintains an overall risk management strategy that incorporates the use of derivative instruments to reduce the economic effect of interest rate volatility. As such, management believes derivative settlements for each applicable period should be evaluated with the Company’s net interest income (loan spread) as presented in this table. 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. 

A reconciliation of core loan spread, which includes the impact of derivative settlements on loan spread, to loan spread without derivative settlements follows:
Three months endedYear ended
December 31, 2025September 30, 2025December 31, 2024December 31, 2025December 31, 2024
Core loan spread2.17 %1.30 %1.18 %1.48 %0.97 %
Derivative settlements (basis swaps)(0.01)(0.01)(0.01)(0.01)(0.01)
Derivative settlements (fixed-rate floor income)(0.01)(0.02)(0.03)(0.02)(0.04)
Loan spread2.15 %1.27 %1.14 %1.45 %0.92 %


20

Loan Activity - Nelnet Bank
The following table sets forth the activity of Nelnet Bank's loan portfolios:
FFELPPrivateConsumer and otherTotal
Three months ended December 31, 2025
Balance as of September 30, 2025$178,948 529,396 266,539 974,883 
Loan acquisitions and originations— 12,357 12,820 25,177 
Repayments(6,628)(23,119)(12,751)(42,498)
Balance as of December 31, 2025$172,320 518,634 266,608 957,562 
Three months ended September 30, 2025
Balance as of June 30, 2025$106,555 516,663 204,423 827,641 
Loan acquisitions and originations— 36,175 74,654 110,829 
Repayments(5,104)(23,442)(12,538)(41,084)
Loans contributed from AGM77,497 — — 77,497 
Balance as of September 30, 2025$178,948 529,396 266,539 974,883 
Three months ended December 31, 2024
Balance as of September 30, 2024$— 352,654 207,218 559,872 
Loan acquisitions and originations— 151,966 34,268 186,234 
Repayments— (22,175)(14,246)(36,421)
Loans sold to AGM— — (65,088)(65,088)
Balance as of December 31, 2024$— 482,445 162,152 644,597 
Year ended December 31, 2025
Balance as of December 31, 2024$— 482,445 162,152 644,597 
Loan acquisitions and originations111,040 85,929 142,207 339,176 
Repayments(16,217)(91,913)(37,751)(145,881)
Loans contributed from AGM77,497 42,173 — 119,670 
Balance as of December 31, 2025$172,320 518,634 266,608 957,562 
Year ended December 31, 2024
Balance as of December 31, 2023$— 360,520 72,352 432,872 
Loan acquisitions and originations— 180,919 210,527 391,446 
Repayments— (58,994)(55,639)(114,633)
Loans sold to AGM— — (65,088)(65,088)
Balance as of December 31, 2024$— 482,445 162,152 644,597 

21

Average Balance Sheet - Nelnet Bank
The following table reflects the rates earned on interest-earning assets and paid on interest-bearing liabilities:
Three months ended (a)
Year ended December 31, (a)
December 31, 2025September 30, 2025December 31, 202420252024
BalanceRateBalanceRateBalanceRateBalanceRateBalanceRate
Average assets
Federally insured student loans$175,177 5.92 %$155,873 6.24 %$— — %$116,745 6.11 %$— — %
Private education loans524,149 6.42 517,782 6.45 482,380 6.41 512,860 6.34 390,195 4.98 
Consumer and other loans267,451 9.83 227,211 10.25 194,105 11.17 210,106 10.27 160,648 11.79 
Cash and investments1,045,948 6.14 957,479 6.15 713,497 7.08 930,816 6.18 642,102 7.16 
Total interest-earning assets2,012,725 6.69 %1,858,345 6.74 %1,389,982 7.42 %1,770,527 6.70 %1,192,945 7.07 %
Non-interest-earning assets26,783 19,203 19,592 18,569 16,653 
Total assets$2,039,508 $1,877,548 $1,409,574 $1,789,096 $1,209,598 
Average liabilities and equity
Brokered deposits$298,501 2.28 %$269,913 2.12 %$248,497 1.95 %$271,826 2.12 %$234,423 1.80 %
Intercompany deposits 185,990 3.90 168,768 4.02 107,866 3.92 146,886 3.90 145,868 4.64 
Retail and other deposits1,277,257 3.94 1,173,846 4.24 854,323 4.59 1,122,848 4.15 666,392 4.85 
Federal funds purchased and other borrowed money3 4.06 25,038 4.92 24,532 10.02 12,182 5.01 6,167 10.02 
Total interest-bearing liabilities1,761,751 3.66 %1,637,565 3.88 %1,235,218 4.11 %1,553,742 3.78 %1,052,850 4.17 %
Non-interest-bearing liabilities14,225 12,999 8,347 11,486 7,928 
Equity263,532 226,984 166,009 223,868 148,820 
Total liabilities and equity$2,039,508 $1,877,548 $1,409,574 $1,789,096 $1,209,598 
Net interest margin3.49 %3.32 %3.76 %3.39 %3.39 %
(a) Calculated using average daily balances.
22