Nelnet (NYSE: NNI) realizes cash and $30M gains on tech stake

Rhea-AI Filing Summary

Nelnet, Inc. reported a non-operating gain tied to an equity investment in an unaffiliated technology company. The investee completed an equity raise on August 11, 2025 and used part of the proceeds to redeem existing investors. Nelnet redeemed part of its stake, received $10 million in cash, and expects to recognize a pre-tax gain of approximately $8 million from this redemption.

Because the investment is accounted for under the measurement alternative method, Nelnet also expects to record an additional pre-tax gain of about $22 million in the third quarter of 2025 to revalue its remaining stake based on the August 2025 transaction. After these adjustments, the carrying amount of Nelnet’s remaining investment in the technology company is approximately $32 million.

Insights

Equity investments & accounting expert

Nelnet locks in cash and a sizable fair value gain from a private tech investment.

Nelnet is crystallizing value from a private technology investment through both a partial redemption and an upward revaluation. It received $10 million of cash proceeds and expects a pre-tax gain of about $8 million on the redeemed portion, indicating that the exit price was above its carrying value. This adds cash to the balance sheet without increasing debt.

Separately, because the investee’s new equity financing is an observable market transaction, Nelnet must remeasure its remaining stake under the measurement alternative method. It expects to recognize an additional pre-tax gain of roughly $22 million in Q3 2025, bringing the post-transaction carrying amount of the remaining investment to about $32 million. These gains are non-operating and tied to one investment, so their relevance compared with core earnings will depend on how large they are relative to Nelnet’s overall profit base.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

August 11, 2025

NELNET, INC.

(Exact name of registrant as specified in its charter)

Nebraska

001-31924

84-0748903

(State or other jurisdiction of incorporation)

(Commission File Number)

(I.R.S. Employer Identification No.)

121 South 13th Street, Suite 100
Lincoln,			Nebraska						68508
(Address of principal executive offices)									(Zip Code)

Registrant's telephone number, including area code (402) 458-2370

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act

(17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act

(17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol			Name of each exchange on which registered
Class A Common Stock, Par Value $0.01 per Share			NNI			New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company    ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.                                    ☐

Item 8.01 Other Events.

Nelnet, Inc. (the “Company”) has an equity investment in an unaffiliated third-party technology company (the “Investee”). On August 11, 2025, the Investee 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 investment and received cash proceeds of $10 million and expects to recognize a gain of approximately $8 million (pre-tax). The Company accounts for its investment in the Investee using the measurement alternative method, which requires it to adjust its carrying value of the investment for changes resulting from observable market transactions. As a result of the Investee’s equity raise, the Company also expects to recognize a gain of approximately $22 million (pre-tax) during the third quarter of 2025 to adjust its carrying value of its remaining investment in the Investee to reflect the August 2025 transaction value. After the completion of this transaction, the Company's carrying amount of its remaining investment in the Investee is approximately $32 million.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

NELNET, INC.

Date: August 18, 2025                By:    /s/ JAMES D. KRUGER

Name:    James D. Kruger

Title:    Chief Financial Officer

FAQ

What transaction did Nelnet, Inc. (NNI) disclose in this 8-K?

Nelnet, Inc. disclosed that an unaffiliated technology company in which it holds an equity investment completed an equity raise and redeemed some existing investors on August 11, 2025, and that Nelnet participated in this redemption and revalued its remaining stake.

How much cash did Nelnet (NNI) receive from redeeming part of its investment?

Nelnet received $10 million of cash proceeds from redeeming a portion of its equity investment in the unaffiliated technology company.

What gains does Nelnet (NNI) expect to recognize from this investment event?

Nelnet expects to recognize a pre-tax gain of approximately $8 million on the redeemed portion and an additional pre-tax gain of about $22 million in the third quarter of 2025 from remeasuring its remaining investment to the August 2025 transaction value.

What will be the carrying amount of Nelnet’s remaining investment after the transaction?

After the August 2025 transaction and remeasurement, Nelnet expects the carrying amount of its remaining investment in the technology company to be approximately $32 million.

How does Nelnet (NNI) account for its investment in the unaffiliated technology company?

Nelnet accounts for this investment using the measurement alternative method, which requires adjusting the carrying value for changes resulting from observable market transactions such as the investee’s equity raise.

In which period will Nelnet (NNI) recognize the remeasurement gain on its remaining investment?

Nelnet expects to recognize the approximately $22 million pre-tax remeasurement gain during the third quarter of 2025.