Nelnet Reports Second Quarter 2025 Results
Nelnet (NYSE: NNI) reported strong Q2 2025 results with GAAP net income of $181.5 million ($4.97 per share), compared to $45.1 million ($1.23 per share) in Q2 2024. The significant increase was primarily driven by a $175.0 million gain from the partial redemption of Nelnet's investment in ALLO, reducing its ownership from 45% to 27%.
Key segment performance includes: Loan Servicing revenue increased to $120.7 million (up from $109.1M), servicing $516.1B in loans for 14.5M borrowers. The Asset Generation and Management segment reported loan interest income of $49.9 million, up from $35.8M. Education Technology Services revenue grew to $118.2 million. Nelnet Bank's loan portfolio reached $827.6 million with total deposits of $1.53B.
The company declared a Q3 dividend of $0.30 per share and repurchased 183,554 Class A shares for $21.4M during Q2.
Nelnet (NYSE: NNI) ha riportato risultati solidi nel secondo trimestre 2025 con un utile netto GAAP di 181,5 milioni di dollari (4,97 dollari per azione), rispetto a 45,1 milioni di dollari (1,23 dollari per azione) nel secondo trimestre 2024. L鈥檃umento significativo 猫 stato principalmente guidato da un guadagno di 175,0 milioni di dollari derivante dal rimborso parziale dell'investimento di Nelnet in ALLO, che ha ridotto la sua partecipazione dal 45% al 27%.
Le performance chiave per segmento includono: i ricavi dal servizio prestiti sono aumentati a 120,7 milioni di dollari (rispetto a 109,1 milioni), con un portafoglio di prestiti di 516,1 miliardi di dollari per 14,5 milioni di mutuatari. Il segmento Generazione e Gestione Attivi ha riportato un reddito da interessi sui prestiti di 49,9 milioni di dollari, in aumento rispetto a 35,8 milioni. I ricavi dai Servizi di Tecnologia Educativa sono cresciuti fino a 118,2 milioni di dollari. Il portafoglio prestiti di Nelnet Bank ha raggiunto 827,6 milioni di dollari con depositi totali pari a 1,53 miliardi di dollari.
La societ脿 ha dichiarato un dividendo per il terzo trimestre di 0,30 dollari per azione e ha riacquistato 183.554 azioni di Classe A per 21,4 milioni di dollari durante il secondo trimestre.
Nelnet (NYSE: NNI) report贸 s贸lidos resultados en el segundo trimestre de 2025 con una ganancia neta GAAP de 181,5 millones de d贸lares (4,97 d贸lares por acci贸n), en comparaci贸n con 45,1 millones (1,23 d贸lares por acci贸n) en el segundo trimestre de 2024. El aumento significativo se debi贸 principalmente a una ganancia de 175,0 millones de d贸lares por el reembolso parcial de la inversi贸n de Nelnet en ALLO, reduciendo su participaci贸n del 45% al 27%.
El desempe帽o clave por segmento incluye: los ingresos por servicios de pr茅stamos aumentaron a 120,7 millones de d贸lares (desde 109,1 millones), gestionando pr茅stamos por 516,1 mil millones de d贸lares para 14,5 millones de prestatarios. El segmento de Generaci贸n y Gesti贸n de Activos report贸 ingresos por intereses de pr茅stamos de 49,9 millones de d贸lares, frente a 35,8 millones. Los ingresos por Servicios de Tecnolog铆a Educativa crecieron a 118,2 millones de d贸lares. La cartera de pr茅stamos de Nelnet Bank alcanz贸 827,6 millones de d贸lares con dep贸sitos totales de 1,53 mil millones de d贸lares.
La compa帽铆a declar贸 un dividendo para el tercer trimestre de 0,30 d贸lares por acci贸n y recompr贸 183,554 acciones Clase A por 21,4 millones de d贸lares durante el segundo trimestre.
Nelnet (NYSE: NNI)鞚� 2025雲� 2攵勱赴鞐� GAAP 靾滌澊鞚� 1鞏� 8,150毵� 雼煬(欤茧嫻 4.97雼煬)毳� 旮半頃橂┌ 臧曤牓頃� 鞁れ爜鞚� 氚滍憸頄堨姷雼堧嫟. 鞚措姅 2024雲� 2攵勱赴鞚� 4,510毵� 雼煬(欤茧嫻 1.23雼煬) 雽�牍� 韥� 韽溂搿� 歃濌皜頃� 靾橃箻鞛呺媹雼�. 鞚� 臧欖潃 歃濌皜電� Nelnet鞚� ALLO鞐� 雽�頃� 韴瀽 歆�攵勳潉 45%鞐愳劀 27%搿� 於曥唽頃橂┐靹� 氚滌儩頃� 1鞏� 7,500毵� 雼煬鞚� 攵�攵� 靸來櫂 鞚挫澋鞚� 欤茧悳 鞗愳澑鞛呺媹雼�.
欤检殧 攵�氍鸽硠 鞁れ爜鞚� 雼れ潓瓿� 臧欖姷雼堧嫟: 雽�於� 靹滊箘鞀� 靾橃澋鞚� 1鞏� 2,070毵� 雼煬搿� 鞝勲厔 霃欔赴 1鞏� 910毵� 雼煬鞐愳劀 歃濌皜頄堨溂氅�, 1,450毵� 氇呾潣 彀瀰鞛愲ゼ 雽�靸侅溂搿� 5,161鞏� 雼煬 攴滊鞚� 雽�於滌潉 甏�毽晿瓿� 鞛堨姷雼堧嫟. 鞛愳偘 靸濎劚 氚� 甏�毽� 攵�氍胳潃 雽�於� 鞚挫瀽 靾橃澋鞚� 4,990毵� 雼煬搿� 3,580毵� 雼煬鞐愳劀 靸侅姽頄堨姷雼堧嫟. 甑愳湣 旮办垹 靹滊箘鞀� 靾橃澋鞚� 1鞏� 1,820毵� 雼煬搿� 歃濌皜頄堨姷雼堧嫟. Nelnet 鞚�頄夓潣 雽�於� 韽姼韽措Μ鞓る姅 8鞏� 2,760毵� 雼煬鞐� 雼晿氅� 齑� 鞓堦笀鞚� 15鞏� 3觳滊 雼煬鞛呺媹雼�.
須岇偓電� 3攵勱赴 氚半嫻旮堨溂搿� 欤茧嫻 0.30雼煬毳� 靹犾柛頄堨溂氅�, 2攵勱赴 霃欖晥 183,554欤检潣 韥措灅鞀� A 欤检嫕鞚� 2,140毵� 雼煬鞐� 鞛Г鞛呿枅鞀惦媹雼�.
Nelnet (NYSE : NNI) a publi茅 de solides r茅sultats pour le deuxi猫me trimestre 2025 avec un b茅n茅fice net GAAP de 181,5 millions de dollars (4,97 dollars par action), compar茅 脿 45,1 millions (1,23 dollar par action) au deuxi猫me trimestre 2024. Cette forte augmentation est principalement due 脿 un gain de 175,0 millions de dollars provenant du remboursement partiel de l'investissement de Nelnet dans ALLO, r茅duisant sa participation de 45 % 脿 27 %.
Les performances cl茅s par segment incluent : le chiffre d'affaires des services de pr锚ts a augment茅 脿 120,7 millions de dollars (contre 109,1 millions), avec un portefeuille de pr锚ts de 516,1 milliards de dollars pour 14,5 millions d'emprunteurs. Le segment G茅n茅ration et Gestion d'Actifs a enregistr茅 un revenu d'int茅r锚ts sur pr锚ts de 49,9 millions de dollars, en hausse par rapport 脿 35,8 millions. Les revenus des Services de Technologie 脡ducative ont progress茅 脿 118,2 millions de dollars. Le portefeuille de pr锚ts de Nelnet Bank a atteint 827,6 millions de dollars avec des d茅p么ts totaux de 1,53 milliard de dollars.
La soci茅t茅 a d茅clar茅 un dividende pour le troisi猫me trimestre de 0,30 dollar par action et a rachet茅 183 554 actions de classe A pour 21,4 millions de dollars au cours du deuxi猫me trimestre.
Nelnet (NYSE: NNI) meldete starke Ergebnisse f眉r das zweite Quartal 2025 mit einem GAAP-Nettogewinn von 181,5 Millionen US-Dollar (4,97 US-Dollar pro Aktie), verglichen mit 45,1 Millionen US-Dollar (1,23 US-Dollar pro Aktie) im zweiten Quartal 2024. Der deutliche Anstieg wurde haupts盲chlich durch einen Gewinn von 175,0 Millionen US-Dollar aus der teilweisen R眉ckzahlung von Nelnets Investition in ALLO getrieben, wodurch der Anteil von 45 % auf 27 % reduziert wurde.
Wichtige Segmentergebnisse umfassen: Die Einnahmen aus dem Darlehensservice stiegen auf 120,7 Millionen US-Dollar (von 109,1 Millionen), mit einem verwalteten Darlehensvolumen von 516,1 Milliarden US-Dollar f眉r 14,5 Millionen Kreditnehmer. Das Segment Asset Generation and Management meldete Darlehenszinsertr盲ge von 49,9 Millionen US-Dollar, gegen眉ber 35,8 Millionen. Die Einnahmen aus Education Technology Services wuchsen auf 118,2 Millionen US-Dollar. Das Darlehensportfolio der Nelnet Bank erreichte 827,6 Millionen US-Dollar mit Gesamteinlagen von 1,53 Milliarden US-Dollar.
Das Unternehmen erkl盲rte eine Dividende f眉r das dritte Quartal von 0,30 US-Dollar pro Aktie und kaufte im zweiten Quartal 183.554 Aktien der Klasse A im Wert von 21,4 Millionen US-Dollar zur眉ck.
- Significant gain of $175.0 million from ALLO investment partial redemption
- Loan Servicing revenue increased 10.6% YoY to $120.7 million
- AGM loan interest income grew 39.4% YoY to $49.9 million
- Nelnet Bank's loan portfolio expanded to $827.6 million with $1.53B in deposits
- Active share repurchase program with $21.4M in Q2 buybacks
- $13.4 million net loss in solar EPC business with negative margins on legacy projects
- $11.1 million provision for loan losses in Q2 2025, compared to -$4.2M in Q2 2024
- $3.3 million impairment charge related to office space consolidation
- FFELP loan portfolio continues expected runoff, decreasing from $10.5B to $9.2B YoY
- Decreased operating margin in Education Technology Services segment due to investment costs
Insights
Nelnet reported strong Q2 with EPS of $4.97, boosted by a one-time $175M gain from ALLO redemption, while core segments showed operational strength.
Nelnet delivered exceptional Q2 2025 results with GAAP earnings of
Looking at the core business segments, the results show mixed but generally positive performance:
- The Asset Generation and Management (AGM) segment improved with loan and investment net interest income of
$49.9 million , up from$35.8 million year-over-year, despite the expected runoff of their FFELP loan portfolio from$10.5 billion to$9.2 billion . This improvement came from better loan spreads, though it was partially offset by an$11.1 million provision for loan losses. - The Loan Servicing and Systems segment showed particularly strong performance with revenue increasing to
$120.7 million from$109.1 million , driven by private education loan servicing volume expansion following the Discover and SoFi portfolio conversions. Net income surged to$15.2 million from just$1.7 million a year ago, reflecting both higher revenue and improved operational efficiency through technology and automation. - Nelnet Bank showed progress toward profitability with a reduced net loss of
$0.4 million compared to$2.8 million in Q2 2024, with loan and investment net interest income increasing to$14.1 million from$8.5 million . - The Education Technology Services and Payments segment saw slight revenue growth to
$118.2 million but experienced margin pressure and lower net income of$17.9 million versus$19.5 million last year as the company continues investing in growth initiatives.
Concerning aspects include a
Overall, while the headline earnings number is significantly influenced by the one-time ALLO transaction, the core business segments demonstrate operational strength, especially in loan servicing where efficiency improvements drove substantial profit growth.
Net income, excluding derivative market value adjustments1, was
Included in the operating results for the second quarter of 2025 is a gain of
"We delivered a strong quarter, driven by continued performance across our core businesses," said Jeff Noordhoek, chief executive officer of Nelnet. "As we look ahead, we remain focused on delivering superior customer experiences and investing in our key areas: loan servicing, consumer lending, payments, and technology, with a particular emphasis on education. The recent transaction involving our investment in ALLO enabled the company to recognize a significant gain and we continue to hold a
Nelnet has four reportable operating segments, earning interest income on loans in its Asset Generation and Management (AGM) and Nelnet Bank segments, both part of the company's Nelnet Financial Services (NFS) division, and fee-based revenue in its Loan Servicing and Systems (referred to as Nelnet Diversified Services (NDS)) and Education Technology Services and Payments (referred to as Nelnet Business Services (NBS)) segments. Other business activities and operating segments that are not reportable and not part of the NFS division are combined and included in Corporate Activities.
Asset Generation and Management
The AGM operating segment reported loan and investment net interest income of
AGM recognized a provision for loan losses in the second quarter of 2025 of
During the second quarter of 2025, the company recorded an additional allowance for credit losses and provision expense of
AGM recognized net income after tax of
Nelnet Bank
As of June 30, 2025, Nelnet Bank had a
Nelnet Bank recognized a provision for loan losses in the second quarter of 2025 of
Nelnet Bank recognized a net loss after tax for the quarter ended June 30, 2025 of
___________________________________ | |
1 | Net income, excluding derivative market value adjustments, is a non-GAAP measure. See "Non-GAAP Performance Measures" at the end of this press release and the "Non-GAAP Disclosures" section below for explanatory information and听reconciliations of GAAP to non-GAAP financial information. |
2 | Loan spread represents the spread between the yield earned on loan assets and the costs of the liabilities and derivative instruments used to fund the assets. |
Loan Servicing and Systems
Revenue from the Loan Servicing and Systems segment was
The Loan Servicing and Systems segment reported net income after tax of
Education Technology Services and Payments
For the second quarter of 2025, revenue from the Education Technology Services and Payments operating segment was
Net income after tax for the Education Technology Services and Payments segment was
Corporate Activities
On June 4, 2025, Nelnet received cash proceeds of
For the second quarter of 2025, the company reported a net loss of
The company also recognized an impairment charge of
Share Repurchases
During the first six months of 2025, the company has repurchased 222,045 Class A common shares for
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
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," "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 investment 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 investment 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 expected benefits to the company from its continuing investment in Hudl; risks related to the company's solar tax equity investments and solar construction business, 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 to pursue additional strategic investments (and anticipated income therefrom) including venture capital and real estate investments, reinsurance, acquisitions, and other activities (including risks associated with errors that occasionally occur in converting loan servicing portfolios to a new servicing platform), 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 and maintaining compliance with the extensive regulatory requirements applicable to the company's businesses, including changes to the regulatory environment from the change in presidential administration, 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
听
Consolidated Statements of Income | |||||||||
Three months ended | Six months ended | ||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | |||||
Interest income: | |||||||||
Loan interest | $听听听听听听 172,104 | 166,439 | 202,129 | 338,543 | 418,853 | ||||
Investment interest | 40,185 | 41,389 | 40,737 | 81,574 | 92,814 | ||||
Total interest income | 212,289 | 207,828 | 242,866 | 420,117 | 511,667 | ||||
Interest expense on bonds and notes payable and bank | 132,854 | 125,114 | 176,459 | 257,968 | 371,039 | ||||
Net interest income | 79,435 | 82,714 | 66,407 | 162,149 | 140,628 | ||||
Less provision for loan losses | 17,930 | 15,337 | 3,611 | 33,267 | 14,440 | ||||
Net interest income after provision for loan losses | 61,505 | 67,377 | 62,796 | 128,882 | 126,188 | ||||
Other income (expense): | |||||||||
Loan servicing and systems revenue | 120,724 | 120,741 | 109,052 | 241,465 | 236,252 | ||||
Education technology services and payments revenue | 118,184 | 147,330 | 116,909 | 265,515 | 260,449 | ||||
Reinsurance premiums earned | 26,112 | 24,687 | 14,851 | 50,799 | 27,631 | ||||
Solar construction revenue | 1,259 | 3,995 | 9,694 | 5,254 | 23,420 | ||||
Other, net | 22,976 | 23,694 | 14,020 | 46,670 | 18,103 | ||||
Gain (loss) on sale of loans, net | 鈥� | 909 | (1,438) | 909 | (1,579) | ||||
Gain on partial redemption of ALLO investment | 175,044 | 鈥� | 鈥� | 175,044 | 鈥� | ||||
Derivative market value adjustments and derivative | (3,122) | (5,578) | 3,182 | (8,701) | 12,903 | ||||
Total other income (expense), net | 461,177 | 315,778 | 266,270 | 776,955 | 577,179 | ||||
Cost of services and expenses: | |||||||||
Loan servicing contract fulfillment and acquisition costs | 1,845 | 1,633 | 196 | 3,478 | 196 | ||||
Cost to provide education technology services and | 39,844 | 48,047 | 40,222 | 87,891 | 88,832 | ||||
Cost to provide solar construction services | 14,050 | 7,828 | 8,072 | 21,878 | 22,300 | ||||
Total cost of services | 55,739 | 57,508 | 48,490 | 113,247 | 111,328 | ||||
Salaries and benefits | 134,699 | 138,223 | 139,634 | 272,922 | 283,509 | ||||
Depreciation and amortization | 7,624 | 9,255 | 15,142 | 16,879 | 31,911 | ||||
Reinsurance losses and underwriting expenses | 25,662 | 22,212 | 10,988 | 47,874 | 22,305 | ||||
Other expenses | 51,306 | 48,226 | 48,608 | 99,532 | 94,136 | ||||
Total operating expenses | 219,291 | 217,916 | 214,372 | 437,207 | 431,861 | ||||
Impairment expense and provision for beneficial interests | 10,288 | 1,591 | 7,776 | 11,879 | 7,813 | ||||
Total expenses | 285,318 | 277,015 | 270,638 | 562,333 | 551,002 | ||||
Income before income taxes | 237,364 | 106,140 | 58,428 | 343,504 | 152,365 | ||||
Income tax expense | (59,510) | (25,010) | (14,753) | (84,521) | (37,936) | ||||
Net income | 177,854 | 81,130 | 43,675 | 258,983 | 114,429 | ||||
Net loss attributable to noncontrolling interests | 3,605 | 1,430 | 1,416 | 5,035 | 4,069 | ||||
Net income attributable to Nelnet, Inc. | $听听听听听听 181,459 | 82,560 | 45,091 | 264,018 | 118,498 | ||||
Earnings per common share: | |||||||||
Net income attributable to Nelnet, Inc. shareholders - | $听听听听听听听听听听听 4.97 | 2.26 | 1.23 | 7.24 | 3.22 | ||||
Weighted average common shares outstanding - basic | 36,485,605 | 36,478,426 | 36,525,482 | 36,482,035 | 36,841,227 | ||||
听
Condensed Consolidated Balance Sheets | |||||
As of | As of | As of | |||
June 30, 2025 | December 31, 2024 | June 30, 2024 | |||
Assets: | |||||
Loans and accrued interest receivable, net | $听听听听听听听听听听听听听听 10,155,483 | 9,992,744 | 10,939,519 | ||
Cash, cash equivalents, and investments | 2,330,692 | 2,395,214 | 2,092,269 | ||
Restricted cash | 576,023 | 736,502 | 797,925 | ||
Goodwill and intangible assets, net | 191,307 | 194,357 | 198,550 | ||
Other assets | 457,583 | 458,936 | 472,930 | ||
Total assets | $听听听听听听听听听听听听听听 13,711,088 | 13,777,753 | 14,501,193 | ||
Liabilities: | |||||
Bonds and notes payable | $听听听听听听听听听听听听听听听听 7,903,561 | 8,309,797 | 9,567,708 | ||
Bank deposits | 1,382,042 | 1,186,131 | 890,472 | ||
Other liabilities | 942,792 | 982,708 | 822,991 | ||
Total liabilities | 10,228,395 | 10,478,636 | 11,281,171 | ||
Equity: | |||||
Total Nelnet, Inc. shareholders' equity | 3,574,983 | 3,349,762 | 3,294,061 | ||
Noncontrolling interests | (92,290) | (50,645) | (74,039) | ||
Total equity | 3,482,693 | 3,299,117 | 3,220,022 | ||
Total liabilities and equity | $听听听听听听听听听听听听听听 13,711,088 | 13,777,753 | 14,501,193 | ||
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
Three months ended June 30, | |||
2025 | 2024 | ||
GAAP net income attributable to Nelnet, Inc. | $听听听听听听听听听听听听听 181,459 | 45,091 | |
AG真人官方ized and unrealized derivative market value adjustments (a) | 3,866 | (1,533) | |
Tax effect (b) | (928) | 368 | |
Non-GAAP net income attributable to Nelnet, Inc., excluding derivative market | $听听听听听听听听听听听听听 184,397 | 43,926 | |
Earnings per share: | |||
GAAP net income attributable to Nelnet, Inc. | $听听听听听听听听听听听听听听听听听听听 4.97 | 1.23 | |
AG真人官方ized and unrealized derivative market value adjustments (a) | 0.11 | (0.04) | |
Tax effect (b) | (0.03) | 0.01 | |
Non-GAAP net income attributable to Nelnet, Inc., excluding derivative market | $听听听听听听听听听听听听听听听听听听听 5.05 | 1.20 | |
(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 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 | |
(b) | The tax effects are calculated by multiplying the realized and unrealized derivative market value adjustments by the applicable statutory income tax rate. |
听
View original content:
SOURCE Nelnet, Inc.
FAQ
What was Nelnet's (NNI) earnings per share for Q2 2025?
How much did Nelnet receive from the ALLO transaction in Q2 2025?
What is the size of Nelnet's loan servicing portfolio as of Q2 2025?
How much is Nelnet's quarterly dividend for Q3 2025?
What was Nelnet Bank's performance in Q2 2025?
