Nelnet Reports Third Quarter 2026 Results

Higher earnings at AGM and Nelnet Bank contrasted with lower loan-servicing earnings and a larger loan-loss provision.

Rhea-AI Summary

Nelnet (NYSE: NNI) reported third-quarter 2026 GAAP net income of $76.2 million, down from the same period a year earlier. Earnings per share fell to $2.13 from $2.94, while net income declined from $106.7 million. Excluding derivative market value adjustments, non-GAAP earnings were $67.9 million, or $1.89 per share, versus $107.3 million, or $2.95.

AGM and Nelnet Bank increased quarterly net income, while Loan Servicing and Systems earnings fell to $12.5 million from $35.2 million. Education Technology Services and Payments earnings rose to $19.4 million from $19.0 million. AGM recorded a $34.5 million loan-loss provision, compared with a negative provision a year earlier. Nelnet repurchased $53.1 million of shares during the quarter and another $37.0 million through November 5. The company increased its quarterly dividend to $0.36 per share, payable December 15, 2026.

22 points · 0 major

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0 major · 16 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointAGM net income rose to $33.9 million in third-quarter 2026 from $27.8 million a year earlier.
• Moderate pointAGM net interest income increased to $65.2 million from $44.7 million year over year.
• Moderate pointConsumer loan portfolio grew to $1.30 billion at September 30, 2026, from $840.7 million a year earlier.
• Moderate pointConsumer loan acquisitions totaled $3.23 billion in third-quarter 2026, versus $1.52 billion a year earlier.
• Moderate pointNelnet Bank net income increased to $12.0 million from $4.6 million in third-quarter 2025.
• Moderate pointNelnet Bank net interest income rose to $20.4 million from $15.4 million year over year.
• Moderate pointEducation technology and payments revenue increased to $132.9 million from $129.3 million year over year.
• Moderate pointEducation technology revenue less direct costs rose to $83.4 million from $79.0 million year over year.
• Moderate pointThird-quarter share repurchases totaled 415,332 Class A shares for $53.1 million, averaging $127.81 per share. 1.2% of market cap
• Moderate pointSubsequent share repurchases totaled 295,990 Class A shares for $37.0 million through November 5, averaging $125.04.
• Moderate pointConsolidated net interest income rose to $101.395 million in third-quarter 2026 from $85.250 million a year earlier.
• Moderate pointReinsurance premiums earned increased to $44.485 million from $23.165 million in third-quarter 2025.
• Moderate pointCash, cash equivalents and investments rose to $3,184.078 million at September 30, 2026, from $2,643.954 million at year-end.
• Moderate pointBonds and notes payable fell to $6,768.987 million at September 30, 2026, from $7,780.927 million at year-end.

8 minor points

• Minor pointAGM loan-portfolio joint ventures generated $12.4 million of income in third-quarter 2026.
• Minor pointAGM derivative fair-value gains contributed $4.8 million of income in third-quarter 2026.
• Minor pointNelnet Bank derivative fair-value gains contributed $6.2 million of income in third-quarter 2026.
• Minor pointNDS Canada, acquired in first-quarter 2026, contributed $16.5 million of third-quarter revenue.
• Minor pointEducation technology and payments net income increased to $19.4 million from $19.0 million year over year.
• Minor point. Forward-looking: it has not happened yet and may not happen.Entab acquisition announced in October expands Nelnet's education technology business internationally.
• Minor point. Forward-looking: it has not happened yet and may not happen.Quarterly dividend increased to $0.36 per share, payable December 15, 2026.
• Minor pointNelnet shareholders' equity increased to $3,787.362 million at September 30, 2026, from $3,685.792 million at year-end.

Negative

• Moderate pointThird-quarter GAAP net income fell to $76.2 million from $106.7 million; EPS declined to $2.13 from $2.94.
• Moderate pointAGM loan-loss provision was $34.5 million, versus a $7.4 million negative provision in third-quarter 2025.
• Moderate pointAverage legacy FFELP loan balance declined to $6.46 billion from $8.25 billion year over year.
• Moderate pointLoan Servicing and Systems revenue declined to $139.8 million from $151.1 million year over year.
• Moderate pointLoan Servicing and Systems net income fell to $12.5 million from $35.2 million year over year.
• Moderate pointThird-quarter operating expenses increased to $263.740 million from $232.736 million a year earlier.
• Moderate pointReinsurance losses and underwriting expenses increased to $35.570 million from $19.962 million in third-quarter 2025.

9 minor points

• Minor pointThird-quarter non-GAAP net income excluding derivative adjustments fell to $67.9 million from $107.3 million year over year.
• Minor pointNon-GAAP EPS excluding derivative adjustments declined to $1.89 from $2.95 in third-quarter 2025.
• Minor pointNine-month GAAP net income attributable to Nelnet fell to $213.981 million from $370.703 million year over year.
• Minor pointNine-month EPS declined to $5.95 from $10.18 in the same period of 2025.
• Minor pointNelnet Bank loan-loss provision increased to $4.8 million from $3.8 million in third-quarter 2025.
• Minor pointNelnet Bank net interest margin decreased, partially offsetting growth in its loan and investment portfolios.
• Minor pointDepartment of Education contract-modification revenue fell to $5.3 million from $32.9 million in third-quarter 2025.
• Minor pointMarketable equity securities generated a $9.3 million unrealized loss in third-quarter 2026.
• Minor pointPrior-year venture capital gain of $30.2 million benefited the third-quarter 2025 comparison.

News Explained

During the third quarter, Nelnet acquired $3.23 billion of consumer loans, including $3.06 billion of short-duration Pay Later receivables; its consumer-loan portfolio was $1.30 billion on September 30, 2026, up from $840.7 million on September 30, 2025.

Key Figures

GAAP net income: $76.2 million vs. $106.7 million GAAP earnings per share: $2.13 vs. $2.94 Adjusted net income: $67.9 million vs. $107.3 million +3 more

GAAP net income

$76.2 million vs. $106.7 million

Third quarter 2026 vs. third quarter 2025

GAAP earnings per share

$2.13 vs. $2.94

Third quarter 2026 vs. third quarter 2025

Adjusted net income

$67.9 million vs. $107.3 million

Excluding derivative market value adjustments; third quarter 2026 vs. 2025

Adjusted earnings per share

$1.89 vs. $2.95

Excluding derivative market value adjustments; third quarter 2026 vs. 2025

Quarterly share repurchases

415,332 shares for $53.1 million

Third quarter 2026

Fourth-quarter dividend

$0.36 per share

Declared for Class A and Class B common stock

Previous Earnings Reports

1 past event · Latest: Nov 06

Same Type 1 event

1. Nov 06

   Earnings report

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   Reported Q3 GAAP and adjusted earnings, providing a same-quarter year-over-year comparison benchmark.

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Key Terms

gaap, non-gaap, cecl, hedge accounting

4 terms

gaap financial

"GAAP net income of $76.2 million"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

non-gaap financial

"Net income, excluding derivative market value adjustments"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

cecl financial

"under the current expected credit loss (CECL) methodology"

An accounting standard that requires banks and other lenders to estimate and record expected credit losses for loans and similar financial assets up front, based on historical experience, current conditions and reasonable forecasts. It matters to investors because it changes how much a firm must set aside as a loss reserve, which directly affects reported profits, capital levels and perceived financial strength—think of it as stocking a reserve for future bad loans before the rain starts.

hedge accounting financial

"derivative instruments that do not qualify for hedge accounting"

Hedge accounting is a way companies record the gains and losses from risk-management tools (like contracts that lock prices or rates) so those results line up with the items they protect. Think of it like matching the cost of an insurance policy to the value of the thing insured, which prevents artificial swings in reported profit. For investors, hedge accounting makes a company’s financial results clearer by showing the economic effect of risk management instead of noisy timing differences.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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LINCOLN, Neb., Nov. 5, 2026 /PRNewswire/ -- Nelnet (NYSE: NNI) today reported GAAP net income of $76.2 million, or $2.13 per share, for the third quarter of 2026, compared with GAAP net income of $106.7 million, or $2.94 per share, for the same period a year ago.

Net income, excluding derivative market value adjustments¹, was $67.9 million, or $1.89 per share, for the third quarter of 2026, compared with $107.3 million, or $2.95 per share, for the same period in 2025.

"We delivered strong operating performance this quarter, with continued progress diversifying our products and customer base," said Jeff Noordhoek, chief executive officer of Nelnet. "We increased our dividend and continued to repurchase shares, while remaining focused on investing in our businesses and creating long-term value. In October, we announced FACTS Compass, which will help scholarship granting organizations support students in public and private schools through the new Federal Scholarship Tax Credit. BenefitEd offers employers a payroll deduction option for the program. We also announced the acquisition of Entab, a school management technology provider in India, expanding our education technology business internationally."

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 September 30, 2026, AGM's loan portfolio totaled $7.63 billion, consisting primarily of federally insured loans originated under the Federal Family Education Loan Program ("FFEL Program" or FFELP). During the three months ended September 30, 2026, AGM acquired $3.23 billion of consumer loans, including $3.06 billion of short-duration Pay Later receivables that the company began to purchase in August 2025, compared with $1.52 billion of consumer loans acquired during the same period in 2025. The company's consumer loan portfolio increased to $1.30 billion as of September 30, 2026, from $840.7 million as of September 30, 2025.

The AGM operating segment reported loan and investment net interest income of $65.2 million for the three months ended September 30, 2026, compared with $44.7 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 continued runoff of the legacy FFELP portfolio. The average balance of AGM's FFELP loan portfolio declined to $6.46 billion for the three months ended September 30, 2026, from $8.25 billion for the same period in 2025. During the first nine months of 2026, AGM contributed certain student loan trusts to Nelnet Bank that included $780.7 million of FFEL Program loans.

AGM recorded a provision for loan losses of $34.5 million ($26.2 million after tax) for the three months ended September 30, 2026, compared with a negative provision of $7.4 million ($5.6 million after tax) for the same period in 2025. The provision in each period was significantly impacted by the initial allowance established on loans acquired during the period to reflect lifetime expected credit losses under the current expected credit loss (CECL) methodology. During the third quarter of 2025, the company also reduced its allowance (and recognized negative provision expense) of $28.9 million ($22.0 million after tax) related to consumer loan sales.

AGM holds interests in joint ventures engaged in the acquisition, ownership, and management of loan portfolios. During the three months ended September 30, 2026, AGM recognized income from these joint ventures of $12.4 million ($9.4 million after tax).

AGM recognized income of $4.8 million ($3.6 million after tax) during the third quarter of 2026 related to changes in the fair value of derivative instruments that do not qualify for hedge accounting.

AGM reported net income after tax of $33.9 million for the three months ended September 30, 2026, compared with $27.8 million for the same period in 2025.

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 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 used to fund the assets.

Nelnet Bank

As of September 30, 2026, Nelnet Bank had a loan portfolio of $1.70 billion and an investment portfolio of $1.64 billion, and total deposits, including intercompany deposits, of $2.81 billion. Loan and investment net interest income increased to $20.4 million during the third quarter of 2026, compared with $15.4 million for the same period a year ago, due to growth in the loan and investment portfolios, partially offset by a decrease in net interest margin.

Nelnet Bank recorded a provision for loan losses of $4.8 million ($3.6 million after tax) in the third quarter of 2026, compared with $3.8 million ($2.9 million after tax) for the same period in 2025.

Nelnet Bank recognized income of $6.2 million ($4.7 million after tax) during the third quarter of 2026 related to changes in the fair value of derivative instruments that do not qualify for hedge accounting.

Nelnet Bank recognized net income after tax of $12.0 million for the quarter ended September 30, 2026, compared with $4.6 million for the same period in 2025.

Loan Servicing and Systems

Revenue from the Loan Servicing and Systems segment was $139.8 million for the third quarter of 2026, compared with $151.1 million for the same period in 2025. The company recognized $5.3 million and $32.9 million of revenue in the third quarters of 2026 and 2025, respectively, related to Department of Education (Department) contract modifications for services previously performed. Excluding this revenue, segment revenue increased year over year, primarily due to the acquisition of NDS Canada in the first quarter of 2026, which contributed $16.5 million of revenue during the third quarter. As of September 30, 2026, the company was servicing $523.6 billion in Department, Canadian, FFELP, private education, and consumer loans for 15.4 million borrowers.

The Loan Servicing and Systems segment reported net income after tax of $12.5 million for the three months ended September 30, 2026, compared with $35.2 million for the same period in 2025.

Education Technology Services and Payments

For the third quarter of 2026, revenue from the Education Technology Services and Payments operating segment was $132.9 million, compared with $129.3 million for the same period in 2025. Revenue less direct costs to provide services during the third quarter of 2026 was $83.4 million, compared with $79.0 million for the same period in 2025.

Net income after tax for the Education Technology Services and Payments segment was $19.4 million for the three months ended September 30, 2026, compared with $19.0 million for the same period in 2025.

Corporate and Other Activities

During the three months ended September 30, 2026, the company recognized an unrealized loss of $9.3 million ($7.1 million after tax) from changes in the fair value of certain marketable equity securities.

The 2025 results included a gain of $30.2 million ($23.0 million after tax) related to a venture capital investment that completed an equity raise during the third quarter.

Share Repurchases

During the first nine months of 2026, the company has repurchased 731,932 Class A common shares for $93.7 million (average price of $128.04 per share), including a total of 415,332 Class A common shares for $53.1 million (average price of $127.81 per share) during the third quarter of 2026. Subsequent to September 30, 2026 (through November 5, 2026), the company repurchased an additional 295,990 Class A common shares for $37.0 million (average price of $125.04 per share).

Board of Directors Declares Fourth Quarter Dividend

The Nelnet Board of Directors declared a fourth-quarter cash dividend on the company's outstanding shares of Class A common stock and Class B common stock of $0.36 per share. The dividend will be paid on December 15, 2026, to shareholders of record at the close of business on December 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, 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.

 

Consolidated Statements of Income (Dollars in thousands, except share data) (unaudited)
	Three months ended						Nine months ended
	September 30, 2026		June 30, 2026		September 30, 2025		September 30, 2026		September 30, 2025
Interest income:
Loan interest	$     166,607		164,598		162,717		502,228		501,260
Investment interest	42,435		40,315		43,241		122,953		124,815
Total interest income	209,042		204,913		205,958		625,181		626,075
Interest expense on bonds and notes payable and bank deposits	107,647		108,902		120,708		326,132		378,677
Net interest income	101,395		96,011		85,250		299,049		247,398
Less provision (negative provision) for loan losses	39,363		41,077		(3,563)		133,684		29,704
Less provision for beneficial interests	906		2,441		2,145		7,477		8,632
Net interest income after provision	61,126		52,493		86,668		157,888		209,062
Other income (expense):
Loan servicing and systems revenue	139,802		132,244		151,052		399,888		392,517
Education technology services and payments revenue	132,881		118,884		129,321		406,200		394,836
Reinsurance premiums earned	44,485		40,625		23,165		107,645		73,964
Solar construction revenue	—		—		5,738		—		10,992
Other, net	6,710		18,399		33,258		35,548		80,839
Gain on partial redemption of ALLO investment	—		—		—		—		175,044
Derivative market value adjustments and derivative settlements, net	11,319		3,852		(27)		17,338		(8,728)
Total other income (expense), net	335,197		314,004		342,507		966,619		1,119,464
Cost of services and expenses:
Loan servicing contract fulfillment and acquisition costs	2,087		2,087		2,021		6,262		5,500
Cost to provide education technology services and payments	49,491		39,183		50,363		138,626		138,254
Cost to provide solar construction services	—		—		7,607		—		29,485
Total cost of services	51,578		41,270		59,991		144,888		173,239
Salaries and benefits	147,733		152,664		144,778		439,768		417,700
Depreciation and amortization	10,280		10,142		7,327		29,592		24,206
Reinsurance losses and underwriting expenses	35,570		32,809		19,962		91,984		67,836
Other expenses	70,157		64,199		60,669		196,195		165,592
Total operating expenses	263,740		259,814		232,736		757,539		675,334
Income before income taxes	81,005		65,413		136,448		222,080		479,953
Income tax expense	(24,818)		(19,942)		(35,773)		(64,821)		(120,294)
Net income	56,187		45,471		100,675		157,259		359,659
Net loss attributable to noncontrolling interests	20,006		21,191		6,009		56,722		11,044
Net income attributable to Nelnet, Inc.	$       76,193		66,662		106,684		213,981		370,703
Earnings per common share:
Net income attributable to Nelnet, Inc. shareholders - basic and diluted	$         2.13		1.85		2.94		5.95		10.18
Weighted-average common shares outstanding - basic and diluted	35,845,663		36,037,509		36,316,315		35,985,847		36,426,188

 

Condensed Consolidated Balance Sheets (Dollars in thousands) (unaudited)
	As of		As of		As of
	September 30, 2026		December 31, 2025		September 30, 2025
Assets:
Loans and accrued interest receivable, net	$           9,670,327		10,006,695		10,227,261
Cash, cash equivalents, and investments	3,184,078		2,643,954		2,455,950
Restricted cash	447,422		677,563		550,371
Goodwill and intangible assets, net	311,238		187,312		189,783
Other assets	524,045		548,259		453,317
Total assets	$         14,137,110		14,063,783		13,876,682
Liabilities:
Bonds and notes payable	$           6,768,987		7,780,927		7,822,531
Bank deposits	2,566,017		1,669,173		1,476,765
Other liabilities	1,188,848		1,036,454		990,691
Total liabilities	10,523,852		10,486,554		10,289,987
Equity:
Total Nelnet, Inc. shareholders' equity	3,787,362		3,685,792		3,653,290
Noncontrolling interests	(174,104)		(108,563)		(66,595)
Total equity	3,613,258		3,577,229		3,586,695
Total liabilities and equity	$         14,137,110		14,063,783		13,876,682

 

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 September 30,
	2026		2025
GAAP net income attributable to Nelnet, Inc.	$          76,193		106,684
Realized and unrealized derivative market value adjustments (a)	(10,950)		788
Tax effect (b)	2,628		(189)
Non-GAAP net income attributable to Nelnet, Inc., excluding derivative market value adjustments	$          67,871		107,283
Earnings per share:
GAAP net income attributable to Nelnet, Inc.	$            2.13		2.94
Realized and unrealized derivative market value adjustments (a)	(0.31)		0.02
Tax effect (b)	0.07		(0.01)
Non-GAAP net income attributable to Nelnet, Inc., excluding derivative market value adjustments	$            1.89		2.95

(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.

 

View original content:https://www.prnewswire.com/news-releases/nelnet-reports-third-quarter-2026-results-302931246.html

SOURCE Nelnet, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Nelnet's third-quarter 2026 earnings?

Nelnet reported GAAP net income of $76.2 million, or $2.13 per share, compared with $106.7 million, or $2.94 per share, a year earlier. Excluding derivative market value adjustments, non-GAAP net income was $67.9 million, or $1.89 per share, versus $107.3 million, or $2.95 per share.

When is Nelnet's $0.36 quarterly dividend payable?

Nelnet's $0.36-per-share dividend is payable December 15, 2026, to Class A and Class B shareholders of record at the close of business on December 1, 2026.

Why did Nelnet's AGM loan-loss provision increase in third-quarter 2026?

The initial allowance on newly acquired loans, reflecting expected losses over their lifetimes, substantially affected AGM's provision in both periods. The third-quarter 2025 comparison also included a $28.9 million allowance reduction related to consumer loan sales, which produced negative provision expense.