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Nelnet (NYSE: NNI) Q1 profit dips as loan and fee units grow

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8-K

Rhea-AI Filing Summary

Nelnet, Inc. reported first quarter 2026 GAAP net income of $71.1 million, or $1.97 per share, compared with $82.6 million, or $2.26 per share, a year earlier. Net income excluding derivative market value adjustments was $69.9 million, or $1.94 per share, versus $87.4 million, or $2.39 per share, in 2025.

The Asset Generation and Management segment generated $67.5 million of loan and investment net interest income and closed the quarter with $766.2 million of Pay Later receivables after acquiring $3.34 billion of loans. Nelnet Bank earned $7.1 million of net income after tax on growing loan and deposit balances.

Loan Servicing and Systems revenue rose to $127.8 million, aided by the NDS Canada acquisition, while Education Technology Services and Payments revenue reached $154.4 million with net income of $36.3 million. The board declared a $0.33 per share second-quarter cash dividend, payable June 15, 2026 to shareholders of record on June 1, 2026.

Positive

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Insights

Nelnet shows solid segment growth despite lower year-ago earnings.

Nelnet posted Q1 2026 GAAP net income of $71.1M versus $82.6M a year earlier, with EPS at $1.97. On a non-GAAP basis excluding derivative market value adjustments, net income was $69.9M compared with $87.4M in Q1 2025, reflecting higher loss provisioning tied to portfolio growth.

The Asset Generation and Management segment benefited from higher loan spread and consumer receivable growth, generating loan and investment net interest income of $67.5M. Nelnet expanded into Pay Later financing, ending March 31, 2026 with $766.2M of Pay Later receivables and acquiring $3.34B of loans during the quarter, largely Pay Later.

Fee-based businesses were steady: Loan Servicing and Systems revenue increased to $127.8M, helped by the NDS Canada acquisition, while Education Technology Services and Payments revenue rose to $154.4M with net income of $36.3M. A quarterly dividend of $0.33 per share underscores ongoing capital returns. Future performance will depend on credit outcomes in the expanded loan book and execution across servicing and education technology platforms in subsequent quarters.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
GAAP net income Q1 2026 $71.1M Net income attributable to Nelnet, Inc. for quarter ended March 31, 2026
GAAP EPS Q1 2026 $1.97/share Net income per common share basic and diluted, Q1 2026
Non-GAAP net income Q1 2026 $69.9M Net income excluding derivative market value adjustments, three months ended March 31, 2026
AGM net interest income $67.5M Loan and investment net interest income, AGM segment, Q1 2026
Pay Later receivables balance $766.2M Balance of Pay Later receivables as of March 31, 2026
Loans acquired Q1 2026 $3.34B Loans acquired by AGM during three months ended March 31, 2026
Loan Servicing revenue $127.8M Loan Servicing and Systems segment revenue, first quarter 2026
Quarterly dividend $0.33/share Second-quarter 2026 cash dividend on Class A and B common stock
Pay Later receivables financial
"In the third quarter of 2025, the company began to purchase Pay Later receivables."
FFEL Program financial
"anticipated runoff of the legacy Federal Family Education Loan Program (the "FFEL Program" or FFELP) loan portfolio."
A FFEL Program is a federal arrangement where private lenders made student loans that were guaranteed by the government, so if a borrower stopped paying, the government would cover much of the loss. Think of it like an insured loan sold by a bank: the bank originates the loan but a backstop reduces its risk. Investors watch FFEL activity and policy around it because shifts in guarantees, repayment rates or enforcement change banks’ loan losses, the value of loan-backed securities, and overall credit risk in education lending.
derivative market value adjustments financial
"Net income, excluding derivative market value adjustments1, was $69.9 million"
solar tax equity partnerships financial
"the company's equity interests held in partnerships that invest in solar tax equity projects."
Non-GAAP financial measures financial
"Non-GAAP financial measures disclosed by management are meant to provide additional information"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
GAAP net income $71.1M vs $82.6M in Q1 2025
GAAP EPS $1.97 vs $2.26 in Q1 2025
Non-GAAP net income (ex-derivatives) $69.9M vs $87.4M in Q1 2025
Loan Servicing and Systems revenue $127.8M vs $120.7M in Q1 2025
Education Tech & Payments revenue $154.4M vs $147.3M in Q1 2025
Understanding 8-K Material Events →
0001258602false00012586022026-05-072026-05-07

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)
May 7, 2026
Nelnet_Logo_color.jpg
NELNET, INC.
(Exact name of registrant as specified in its charter)
Nebraska001-3192484-0748903
(State or other jurisdiction
of incorporation)		(Commission
File Number)		(IRS Employer Identification No.)
121 South 13th Street, Suite 100
Lincoln,Nebraska68508
(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 classTrading SymbolName of each exchange on which registered
Class A Common Stock, Par Value $0.01 per ShareNNINew 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 2.02 Results of Operations and Financial Condition.
On May 7, 2026, Nelnet, Inc. (the “Company”) issued a press release with respect to its financial results for the quarter ended March 31, 2026. A copy of the press release is furnished as Exhibit 99.1 to this report.
The above information and Exhibit 99.1 shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), nor shall such information and Exhibit be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Certain statements contained in the exhibit furnished with this report may be considered forward looking in nature and are subject to various risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, the Company's actual results may vary materially from those anticipated, estimated, or expected. Among the key risks and uncertainties that may have a direct bearing on the Company's future operating results, performance, or financial condition expressed or implied by the forward-looking statements are the matters discussed in the Risk Factors section of the Company's Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on February 26, 2026. Although the Company may from time to time voluntarily update its prior forward-looking statements, it disclaims any commitment to do so except as required by securities laws.

Item 9.01 Financial Statements and Exhibits.
(d)    Exhibits. The following exhibits are furnished as part of this report:
Exhibit
No.
Description
99.1
Press Release dated May 7, 2026 - "Nelnet Reports First Quarter 2026 Results"
104Cover Page Interactive Data File (formatted as Inline XBRL and included as Exhibit 101).





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.
Dated: May 7, 2026
NELNET, INC.
By:    /s/ JAMES D. KRUGER
Name:    James D. Kruger
Title:    Chief Financial Officer




Nelnet Reports First Quarter 2026 Results
LINCOLN, Neb., May 7, 2026 - Nelnet (NYSE: NNI) today reported GAAP net income of $71.1 million, or $1.97 per share, for the first quarter of 2026, compared with GAAP net income of $82.6 million, or $2.26 per share, for the same period a year ago.
Net income, excluding derivative market value adjustments1, was $69.9 million, or $1.94 per share, for the first quarter of 2026, compared with $87.4 million, or $2.39 per share, for the same period in 2025.
“We’re off to a strong start in 2026, with every business segment performing at a high level,” said Jeff Noordhoek, chief executive officer of Nelnet. “We completed our Canadian acquisition in February, and integration is proceeding well, expanding our loan servicing reach and supporting our long-term diversification strategy focused on core strengths. This year, our focus is simple: Go. Technology is accelerating, innovation cycles are compressing, and the pace of change continues to increase. Our job is to move with speed - to be decisive and to keep pushing forward for our customers.”
Nelnet operates through three divisions: Nelnet Financial Services (NFS), Loan Servicing and Systems [referred to as Nelnet Diversified Services (NDS)], and Education Technology Services and Payments [referred to as Nelnet Business Services (NBS)]. NFS includes the company's Asset Generation and Management (AGM) and Nelnet Bank reportable operating segments, which earn interest income on loans and investments. NDS and NBS generate primarily fee-based revenue through loan servicing, education technology, and payment services. Business activities not included in these divisions are combined and reported within Corporate Activities.
Nelnet Financial Services
AGM
The AGM operating segment reported loan and investment net interest income of $67.5 million during the first quarter of 2026, compared with $52.9 million for the same period a year ago. The increase in 2026 was due to an increase in loan spread2 and growth in the company's consumer financing receivables. In the third quarter of 2025, the company began to purchase Pay Later receivables. As of March 31, 2026, the balance of Pay Later receivables was $766.2 million. The increase in net interest income was partially offset by the anticipated runoff of the legacy Federal Family Education Loan Program (the "FFEL Program" or FFELP) loan portfolio. The average balance of FFELP loans outstanding decreased from $8.6 billion for the first quarter of 2025 to $7.2 billion for the same period in 2026.
AGM recorded a provision for loan losses of $48.5 million ($36.9 million after tax) in the first quarter of 2026, compared with $13.0 million ($9.9 million after tax) for the same period in 2025. The increase was primarily driven by the establishment of an initial allowance for loans acquired during the quarter. During the first quarter of 2026, AGM acquired $3.34 billion of loans, of which $2.85 billion were Pay Later receivables. The higher provision reflects portfolio growth rather than changes in underlying credit performance. Credit quality metrics, including delinquency rates and charge-offs, remained generally consistent with management's expectations.
AGM holds interests in certain joint ventures engaged in the acquisition and management of loan portfolios. During the three months ended March 31, 2026, AGM recognized $15.4 million ($11.7 million after tax) of income from these joint ventures.
AGM recognized net income after tax of $23.2 million for the three months ended March 31, 2026, compared with $22.7 million for the same period in 2025.
Nelnet Bank
As of March 31, 2026, Nelnet Bank had a $1.26 billion and $1.18 billion loan and investment portfolio, respectively, and total deposits, including intercompany deposits, of $1.96 billion. Nelnet Bank reported loan and investment net interest income of $17.8 million during the first quarter of 2026, compared with $12.4 million for the same period a year ago. The increase in 2026 was due to an increase in the loan and investment portfolio, partially offset by a decrease in net interest margin.
Nelnet Bank recognized net income after tax for the quarter ended March 31, 2026 of $7.1 million, compared with $1.5 million for the same period in 2025.
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.


Loan Servicing and Systems
Revenue from the Loan Servicing and Systems segment was $127.8 million for the first quarter of 2026, compared with $120.7 million for the same period in 2025. The increase was primarily due to the company's acquisition of NDS Canada during the first quarter of 2026. As of March 31, 2026, the company was servicing $525.7 billion in Department of Education, Canada Student Loan Program, FFELP, private education, and consumer loans for 15.5 million borrowers.
As previously disclosed, on February 2, 2026, the company acquired a Canadian student loan servicing business ("NDS Canada") that delivers technology-enabled student loan servicing for governments and financial institutions, managing 2.7 million borrowers on proprietary platforms. Beginning on the acquisition date, the operating results of NDS Canada are included in the Loan Servicing and Systems operating segment.
The Loan Servicing and Systems segment reported net income after tax of $15.0 million for the three months ended March 31, 2026, compared with $14.1 million for the same period in 2025.
Education Technology Services and Payments
For the first quarter of 2026, revenue from the Education Technology Services and Payments operating segment was $154.4 million, an increase from $147.3 million for the same period in 2025. Revenue less direct costs to provide services for the first quarter of 2026 was $104.5 million, compared with $99.3 million for the same period in 2025.
Net income after tax for the Education Technology Services and Payments segment was $36.3 million for the three months ended March 31, 2026, compared with $36.1 million for the same period in 2025.
This segment is subject to seasonal fluctuations. Based on the timing of when revenue is recognized and when expenses are incurred, revenue and operating margin are higher in the first quarter compared with the remainder of the year.
Corporate and Other Activities
During the three months ended March 31, 2026, the company recognized $10.8 million ($8.2 million after tax or $0.23 per share) of losses related to marketable equity securities with readily determinable fair values. These losses resulted from changes in market values during the period.
Included in Corporate Activities are the company's equity interests held in partnerships that invest in solar tax equity projects. The company recognized $22.5 million ($6.9 million after tax and noncontrolling interests or $0.19 per share) of losses related to its solar tax equity partnerships during the three months ended March 31, 2026. Despite short-term losses, our tax equity investments are structured to deliver long-term value and cash flow.
Board of Directors Declares Second Quarter Dividend
The Nelnet Board of Directors declared a second-quarter cash dividend on the company's outstanding shares of Class A common stock and Class B common stock of $0.33 per share. The dividend will be paid on June 15, 2026, to shareholders of record at the close of business on June 1, 2026.
Forward-Looking and Cautionary Statements
This press release contains forward-looking statements within the meaning of federal securities laws. The words “anticipate,” “assume," "believe,” “continue,” “could,” "ensure," “estimate,” “expect,” "focus," “forecast,” “future,” “intend,” “may,” "objective," “plan,” “potential,” “predict,” "pursue," "scheduled,” “should,” "strategy," “will,” “would,” and similar expressions, as well as statements in future tense, are intended to identify forward-looking statements. These statements are based on management's current expectations as of the date of this release and are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results and performance to be materially different from any future results or performance expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to: risks related to the ability to successfully maintain and increase allocated volumes of student loans serviced by the company under existing and future servicing contracts with the Department of Education, risks related to unfavorable contract modifications or interpretations, risks related to consistently meeting service requirements to avoid the assessment of performance penalties, and risks related to the company's ability to comply with agreements with third-party customers for the servicing of Federal Direct Loan Program, Canada Student Loan Program, FFEL Program, private education, and consumer loans; loan portfolio risks such as credit risk, prepayment risk, interest rate basis and repricing risk, risks related to the use of derivatives to manage exposure to interest rate fluctuations, uncertainties regarding the expected benefits from purchased securitized and unsecuritized FFELP, private education, consumer, and other loans, or residual interests therein, and initiatives to purchase additional FFELP, private education, consumer, and other loans; financing and liquidity risks, including


risks of changes in the interest rate environment; risks from changes in the terms of education loans and in the educational credit and services markets resulting from changes in applicable laws, regulations, and government programs and budgets; risks related to a breach of or failure in the company's operational or information systems or infrastructure, or those of third-party vendors, including disclosure of confidential or personal information and/or damage to reputation resulting from cyber breaches; risks related to use of artificial intelligence; uncertainties inherent in forecasting future cash flows from student loan assets, including residual interests therein, and related asset-backed securitizations; risks related to the ability of Nelnet Bank to achieve its business objectives and effectively deploy loan and deposit strategies and achieve expected market penetration; risks related to the company's solar tax equity partnerships, including risks of not being able to realize tax credits which remain subject to recapture by taxing authorities and risks from the impact of the enactment of the One Big Beautiful Bill that accelerates the expiration and phase out of solar energy credits; risks and uncertainties related to other initiatives (and anticipated income therefrom) including venture capital, real estate, reinsurance, acquisitions, and other activities, including activities that are intended to diversify the company both within and outside of its historical core education-related businesses; risks and uncertainties associated with climate change; risks from changes in economic conditions and consumer behavior; risks related to the company's ability to adapt to technological change; risks related to the exclusive forum provisions in the company's articles of incorporation; risks related to the company's executive chairman's ability to control matters related to the company through voting rights; risks related to related party transactions; risks related to natural disasters, terrorist activities, or international hostilities; and risks and uncertainties associated with litigation matters, maintaining compliance with the extensive regulatory requirements applicable to the company's businesses, and uncertainties inherent in the estimates and assumptions about future events that management is required to make in the preparation of the company's consolidated financial statements.
For more information, see the "Risk Factors" sections and other cautionary discussions of risks and uncertainties included in documents filed or furnished by the company with the Securities and Exchange Commission. All forward-looking statements in this release are as of the date of this release. Although the company may voluntarily update or revise its forward-looking statements from time to time to reflect actual results or changes in the company's expectations, the company disclaims any commitment to do so except as required by law.
Non-GAAP Performance Measures
The company prepares its financial statements and presents its financial results in accordance with U.S. GAAP. However, it also provides additional non-GAAP financial information related to specific items management believes to be important in the evaluation of its operating results and performance. Reconciliations of GAAP to non-GAAP financial information, and a discussion of why the company believes providing this additional information is useful to investors, is provided in the "Non-GAAP Disclosures" section below.



Consolidated Statements of Income
(Dollars in thousands, except share data)
(unaudited)
Three months ended
March 31, 2026December 31, 2025March 31, 2025
Interest income:
Loan interest$171,024 184,825 166,439 
Investment interest40,202 40,559 41,389 
Total interest income211,226 225,384 207,828 
Interest expense on bonds and notes payable and bank deposits109,583 118,273 125,114 
Net interest income101,643 107,111 82,714 
Less provision for loan losses53,244 38,147 15,337 
Less provision for beneficial interests4,130 2,679 1,510 
Net interest income after provision44,269 66,285 65,867 
Other income (expense):
Loan servicing and systems revenue127,842 116,573 120,741 
Education technology services and payments revenue154,436 112,314 147,330 
Reinsurance premiums earned22,536 33,539 24,687 
Solar construction revenue— 3,379 3,995 
Other, net10,437 16,749 24,603 
Derivative market value adjustments and derivative settlements, net2,167 2,330 (5,578)
Total other income (expense), net317,418 284,884 315,778 
Cost of services and expenses:
Loan servicing contract fulfillment and acquisition costs2,087 2,056 1,633 
Cost to provide education technology services and payments49,953 38,654 48,047 
Cost to provide solar construction services— 12,326 7,828 
Total cost of services52,040 53,036 57,508 
Salaries and benefits139,371 141,086 138,223 
Depreciation and amortization9,170 9,365 9,255 
Reinsurance losses and underwriting expenses23,605 25,715 22,212 
Other expenses61,840 75,589 48,307 
Total operating expenses233,986 251,755 217,997 
Income before income taxes75,661 46,378 106,140 
Income tax expense(20,061)(7,691)(25,010)
Net income55,600 38,687 81,130 
Net loss attributable to noncontrolling interests15,526 19,084 1,430 
Net income attributable to Nelnet, Inc.$71,126 57,771 82,560 
Earnings per common share:
Net income attributable to Nelnet, Inc. shareholders - basic and diluted$1.97 1.60 2.26 
Weighted-average common shares outstanding - basic and diluted
36,076,912 36,088,994 36,478,426 



Condensed Consolidated Balance Sheets
(Dollars in thousands)
(unaudited)
As ofAs ofAs of
March 31, 2026December 31, 2025March 31, 2025
Assets:
Loans and accrued interest receivable, net$10,009,471 10,006,695 10,422,704 
Cash, cash equivalents, and investments2,717,368 2,643,954 2,523,067 
Restricted cash590,518 677,563 611,610 
Goodwill and intangible assets, net301,506 187,312 192,832 
Other assets559,054 548,259 441,745 
Total assets$14,177,917 14,063,783 14,191,958 
Liabilities:
Bonds and notes payable$7,699,400 7,780,927 8,656,157 
Bank deposits1,744,527 1,669,173 1,313,407 
Other liabilities1,127,978 1,036,454 859,385 
Total liabilities10,571,905 10,486,554 10,828,949 
Equity:
Total Nelnet, Inc. shareholders' equity3,731,291 3,685,792 3,419,523 
Noncontrolling interests(125,279)(108,563)(56,514)
Total equity3,606,012 3,577,229 3,363,009 
Total liabilities and equity$14,177,917 14,063,783 14,191,958 

Contacts:
Media, Ben Kiser, 402.458.3024, or Investors, Phil Morgan, 402.458.3038, both of Nelnet, Inc.



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 March 31,
20262025
GAAP net income attributable to Nelnet, Inc.$71,126 82,560 
Realized and unrealized derivative market value adjustments (a)(1,587)6,324 
Tax effect (b)381 (1,519)
Non-GAAP net income attributable to Nelnet, Inc., excluding derivative market value adjustments$69,920 87,365 
Earnings per share:
GAAP net income attributable to Nelnet, Inc.$1.97 2.26 
Realized and unrealized derivative market value adjustments (a)(0.04)0.17 
Tax effect (b)0.01 (0.04)
Non-GAAP net income attributable to Nelnet, Inc., excluding derivative market value adjustments$1.94 2.39 

(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.


Source: View Original Filing on SEC EDGAR

FAQ

How did Nelnet (NNI) perform financially in Q1 2026?

Nelnet reported GAAP net income of $71.1 million, or $1.97 per share, for Q1 2026. This compares with $82.6 million, or $2.26 per share, in the same quarter of 2025, reflecting higher provisions and portfolio changes.

What is Nelnet’s non-GAAP net income for Q1 2026 and why is it used?

Non-GAAP net income excluding derivative market value adjustments was $69.9 million, or $1.94 per share, in Q1 2026. Nelnet uses this measure to remove volatility from derivatives that do not qualify for hedge accounting, aiming to highlight underlying operating performance trends.

How are Nelnet’s Pay Later receivables and loan acquisitions shaping growth?

Nelnet’s AGM segment held $766.2 million of Pay Later receivables as of March 31, 2026. During Q1 2026, it acquired $3.34 billion of loans, including $2.85 billion of Pay Later receivables, supporting higher net interest income alongside increased loan loss provisioning.

How did Nelnet’s Loan Servicing and Systems segment perform in Q1 2026?

Loan Servicing and Systems revenue was $127.8 million in Q1 2026, up from $120.7 million a year earlier. Results benefited from the acquisition of NDS Canada, and the company serviced $525.7 billion of loans for 15.5 million borrowers as of March 31, 2026.

What were the results for Nelnet’s Education Technology Services and Payments segment?

This segment generated Q1 2026 revenue of $154.4 million, compared with $147.3 million in 2025. Revenue less direct service costs was $104.5 million, and net income after tax was $36.3 million, with performance benefiting from typical first-quarter seasonality.

What dividend did Nelnet declare for the second quarter of 2026?

Nelnet’s board declared a $0.33 per share cash dividend on Class A and Class B common stock for the second quarter of 2026. The dividend is payable on June 15, 2026, to shareholders of record as of the close of business on June 1, 2026.

What are key risks highlighted in Nelnet’s Q1 2026 disclosure?

Nelnet cites risks including loan servicing contract performance, loan portfolio credit and interest rate risks, financing and liquidity exposure, regulatory changes, cybersecurity, solar tax equity uncertainties, and broader economic and technological change, as detailed in its risk factor discussions.

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