NELNET INC
For the period ended Sep 30, 2025. Filed Nov 6, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 6, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
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Item 1. Financial Statements
CONSOLIDATED BALANCE SHEETS
| As of | As of | |
|---|---|---|
| September 30, 2025 | December 31, 2024 | |
| Assets: | ||
| Loans and accrued interest receivable (net of allowance for loan losses of $107,532 and $114,890, respectively) | $10,227,261 | 9,992,744 |
| Cash and cash equivalents: | ||
| Cash and cash equivalents - not held at a related party | 126,956 | 48,838 |
| Cash and cash equivalents - held at a related party | 89,469 | 145,680 |
| Total cash and cash equivalents | 216,425 | 194,518 |
| Investments and notes receivable: | ||
| Investments at fair value | 1,391,888 | 1,160,320 |
| Other investments and notes receivable, net | 847,637 | 1,040,376 |
| Total investments and notes receivable | 2,239,525 | 2,200,696 |
| Restricted cash | 394,074 | 332,100 |
| Restricted cash - due to customers | 156,297 | 404,402 |
| Accounts receivable (net of allowance for doubtful accounts of $2,831 and $2,877, respectively) | 147,822 | 159,934 |
| Goodwill | 158,029 | 158,029 |
| Intangible assets, net | 31,754 | 36,328 |
| Property and equipment, net | 93,174 | 95,185 |
| Other assets | 212,321 | 203,817 |
| Total assets | $13,876,682 | 13,777,753 |
| Liabilities: | ||
| Bonds and notes payable | $7,822,531 | 8,309,797 |
| Accrued interest payable | 19,039 | 21,046 |
| Bank deposits | 1,476,765 | 1,186,131 |
| Other liabilities | 528,917 | 483,193 |
| Due to customers | 442,735 | 478,469 |
| Total liabilities | 10,289,987 | 10,478,636 |
| Commitments and contingencies | ||
| Equity: | ||
| Nelnet, Inc. shareholders' equity: | ||
| Preferred stock, $0.01 par value. Authorized 50,000,000 shares; no shares issued or outstanding | — | — |
| Common stock: | ||
| Class A, $0.01 par value. Authorized 600,000,000 shares; issued and outstanding 25,375,537 shares and 25,634,748 shares, respectively | 254 | 256 |
| Class B, convertible, $0.01 par value. Authorized 60,000,000 shares; issued and outstanding 10,616,675 shares and 10,658,604 shares, respectively | 106 | 107 |
| Additional paid-in capital | 1,058 | 7,389 |
| Retained earnings | 3,648,375 | 3,340,540 |
| Accumulated other comprehensive earnings, net | 3,497 | 1,470 |
| Total Nelnet, Inc. shareholders' equity | 3,653,290 | 3,349,762 |
| Noncontrolling interests | (66,595) | (50,645) |
| Total equity | 3,586,695 | 3,299,117 |
| Total liabilities and equity | $13,876,682 | 13,777,753 |
| Supplemental information - assets and liabilities of consolidated education and other lending variable-interest entities: | ||
| Loans and accrued interest receivable | $8,981,044 | 9,122,609 |
| Restricted cash | 376,029 | 287,389 |
| Bonds and notes payable | (8,363,733) | (8,452,614) |
| Accrued interest payable and other liabilities | (172,765) | (88,200) |
| Net assets of consolidated education and other lending variable-interest entities | $820,575 | 869,184 |
CONSOLIDATED STATEMENTS OF INCOME
| Three months ended · Nine months ended | ||||
|---|---|---|---|---|
| September 30, | September 30, | |||
| 2025 | 2024 | 2025 | 2024 | |
| Interest income: | ||||
| Loan interest | $162,717 | 190,211 | 501,260 | 609,064 |
| Investment interest | 43,241 | 50,272 | 124,815 | 143,086 |
| Total interest income | 205,958 | 240,483 | 626,075 | 752,150 |
| Interest expense on bonds and notes payable and bank deposits | 120,708 | 168,328 | 378,677 | 539,367 |
| Net interest income | 85,250 | 72,155 | 247,398 | 212,783 |
| Less (negative provision) provision for loan losses | (3,563) | 18,111 | 29,704 | 32,551 |
| Net interest income after provision for loan losses | 88,813 | 54,044 | 217,694 | 180,232 |
| Other income (expense): | ||||
| Loan servicing and systems revenue | 151,052 | 108,175 | 392,517 | 344,428 |
| Education technology services and payments revenue | 129,321 | 118,179 | 394,836 | 378,627 |
| Reinsurance premiums earned | 23,165 | 16,619 | 73,964 | 44,250 |
| Solar construction revenue | 5,738 | 19,321 | 10,992 | 42,741 |
| Other, net | 35,730 | 15,706 | 82,401 | 33,807 |
| Loss on sale of loans, net | (2,472) | (107) | (1,562) | (1,685) |
| Gain on partial redemption of ALLO investment | — | — | 175,044 | — |
| Derivative market value adjustments and derivative settlements, net | (27) | (11,525) | (8,728) | 1,378 |
| Total other income (expense), net | 342,507 | 266,368 | 1,119,464 | 843,546 |
| Cost of services and expenses: | ||||
| Loan servicing contract fulfillment and acquisition costs | 2,021 | 196 | 5,500 | 392 |
| Cost to provide education technology services and payments | 50,363 | 45,273 | 138,254 | 134,106 |
| Cost to provide solar construction services | 7,607 | 26,815 | 29,485 | 49,115 |
| Total cost of services | 59,991 | 72,284 | 173,239 | 183,613 |
| Salaries and benefits | 144,778 | 146,192 | 417,700 | 429,701 |
| Depreciation and amortization | 7,327 | 13,661 | 24,206 | 45,572 |
| Reinsurance losses and underwriting expenses | 19,962 | 16,761 | 67,836 | 39,066 |
| Other expenses | 53,669 | 44,685 | 153,200 | 138,820 |
| Total operating expenses | 225,736 | 221,299 | 662,942 | 653,159 |
| Impairment expense and provision for beneficial interests | 9,145 | 29,052 | 21,024 | 36,865 |
| Total expenses | 294,872 | 322,635 | 857,205 | 873,637 |
| Income (loss) before income taxes | 136,448 | (2,223) | 479,953 | 150,141 |
| Income tax (expense) benefit | (35,773) | 282 | (120,294) | (37,653) |
| Net income (loss) | 100,675 | (1,941) | 359,659 | 112,488 |
| Net loss attributable to noncontrolling interests | 6,009 | 4,329 | 11,044 | 8,398 |
| Net income attributable to Nelnet, Inc. | $106,684 | 2,388 | 370,703 | 120,886 |
| Earnings per common share: | ||||
| Net income attributable to Nelnet, Inc. shareholders - basic and diluted | $2.94 | 0.07 | 10.18 | 3.29 |
| Weighted average common shares outstanding - basic and diluted | 36,316,315 | 36,430,485 | 36,426,188 | 36,703,314 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in thousands)
| Three months ended September 30, · Nine months ended September 30, | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 · 2024 · 2025 · 2024 | |||||||||||||
| Net income (loss) | $100,675 | (1,941) | 359,659 | 112,488 | |||||||||
| Other comprehensive income: | |||||||||||||
| Net changes related to foreign currency translation adjustments | $ | (13) | 23 | (160) | 6 | ||||||||
| Net changes related to available-for-sale debt securities: | |||||||||||||
| Unrealized holding gains arising during period, net | 8,637 | 2,656 | 5,212 | 28,291 | |||||||||
| Reclassification of gains recognized in net income, net | (854) | (1,721) | (1,931) | (3,326) | |||||||||
| Amortization of net unrealized loss on securities transferred from available-for-sale to held-to-maturity | 27 | 64 | 168 | 186 | |||||||||
| Income tax effect | (1,874) | 5,936 | (240) | 759 | (828) | 2,621 | (6,036) | 19,115 | |||||
| Net changes related to cash flow hedges: | |||||||||||||
| Fair value adjustments during period, net | (130) | — | (755) | — | |||||||||
| Income tax effect | 31 | (99) | — | — | 181 | (574) | — | — | |||||
| Net changes related to equity method investee's other comprehensive income: | |||||||||||||
| (Loss) gain on cash flow hedge | (156) | 62 | 184 | (570) | |||||||||
| Income tax effect | 37 | (119) | (15) | 47 | (44) | 140 | 137 | (433) | |||||
| Other comprehensive income | 5,705 | 829 | 2,027 | 18,688 | |||||||||
| Comprehensive income (loss) | 106,380 | (1,112) | 361,686 | 131,176 | |||||||||
| Comprehensive loss attributable to noncontrolling interests | 6,009 | 4,329 | 11,044 | 8,398 | |||||||||
| Comprehensive income attributable to Nelnet, Inc. | $112,389 | 3,217 | 372,730 | 139,574 | |||||||||
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
| Nelnet, Inc. Shareholders | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Preferred stock shares · Common stock shares · Preferred stock · Class A common stock · Class B common stock · Additional paid-in capital · Retained earnings · Accumulated other comprehensive (loss) earnings · Noncontrolling interests · Total equity | |||||||||||
| Class A · Class B | |||||||||||
| Balance as of June 30, 2024 | — | 25,585,840 | 10,663,088 | $— | 256 | 107 | 657 | 3,295,301 | (2,260) | (74,039) | 3,220,022 |
| Net income (loss) | — | — | — | — | — | — | — | 2,388 | — | (4,329) | (1,941) |
| Other comprehensive income | — | — | — | — | — | — | — | — | 829 | — | 829 |
| Issuance of noncontrolling interests | — | — | — | — | — | — | — | — | — | 20,999 | 20,999 |
| Distribution to noncontrolling interests | — | — | — | — | — | — | — | — | — | (23,145) | (23,145) |
| Cash dividends on Class A and Class B common stock - $0.28 per share | — | — | — | — | — | — | — | (10,148) | — | — | (10,148) |
| Issuance of common stock, net of forfeitures | — | 46,865 | — | — | — | — | 1,230 | — | — | — | 1,230 |
| Compensation expense for stock based awards | — | — | — | — | — | — | 2,868 | — | — | — | 2,868 |
| Repurchase of common stock | — | (5,259) | — | — | — | — | (576) | — | — | — | (576) |
| Balance as of September 30, 2024 | — | 25,627,446 | 10,663,088 | $— | 256 | 107 | 4,179 | 3,287,541 | (1,431) | (80,514) | 3,210,138 |
| Balance as of June 30, 2025 | — | 25,538,730 | 10,658,604 | $— | 255 | 107 | 637 | 3,576,192 | (2,208) | (92,290) | 3,482,693 |
| Net income (loss) | — | — | — | — | — | — | — | 106,684 | — | (6,009) | 100,675 |
| Other comprehensive income | — | — | — | — | — | — | — | — | 5,705 | — | 5,705 |
| Issuance of noncontrolling interests | — | — | — | — | — | — | — | — | — | 39,404 | 39,404 |
| Distribution to noncontrolling interests | — | — | — | — | — | — | — | — | — | (7,700) | (7,700) |
| Cash dividends on Class A and Class B common stock - $0.30 per share | — | — | — | — | — | — | — | (10,834) | — | — | (10,834) |
| Issuance of common stock, net of forfeitures | — | 12,728 | — | — | — | — | 557 | — | — | — | 557 |
| Compensation expense for stock based awards | — | — | — | — | — | — | 3,468 | — | — | — | 3,468 |
| Repurchase of common stock | — | (217,850) | — | — | (2) | — | (3,604) | (23,667) | — | — | (27,273) |
| Conversion of common stock | — | 41,929 | (41,929) | — | 1 | (1) | — | — | — | — | — |
| Balance as of September 30, 2025 | — | 25,375,537 | 10,616,675 | $— | 254 | 106 | 1,058 | 3,648,375 | 3,497 | (66,595) | 3,586,695 |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
| Nelnet, Inc. Shareholders | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Preferred stock shares · Common stock shares · Preferred stock · Class A common stock · Class B common stock · Additional paid-in capital · Retained earnings · Accumulated other comprehensive (loss) earnings · Noncontrolling interests · Total equity | |||||||||||
| Class A · Class B | |||||||||||
| Balance as of December 31, 2023 | — | 26,400,630 | 10,663,088 | $— | 264 | 107 | 3,096 | 3,270,403 | (20,119) | (53,644) | 3,200,107 |
| Net income (loss) | — | — | — | — | — | — | — | 120,886 | — | (8,398) | 112,488 |
| Other comprehensive income | — | — | — | — | — | — | — | — | 18,688 | — | 18,688 |
| Issuance of noncontrolling interests | — | — | — | — | — | — | — | — | — | 29,150 | 29,150 |
| Distribution to noncontrolling interests | — | — | — | — | — | — | — | — | — | (49,715) | (49,715) |
| Cash dividends on Class A and Class B common stock - $0.84 per share | — | — | — | — | — | — | — | (30,676) | — | — | (30,676) |
| Issuance of common stock, net of forfeitures | — | 116,779 | — | — | 1 | — | 4,526 | — | — | — | 4,527 |
| Compensation expense for stock based awards | — | — | — | — | — | — | 8,703 | — | — | — | 8,703 |
| Repurchase of common stock | — | (889,963) | — | — | (9) | — | (12,146) | (70,732) | — | — | (82,887) |
| Acquisition of remaining 20% of GRNE Solar, net of tax | — | — | — | — | — | — | — | (2,340) | — | 2,093 | (247) |
| Balance as of September 30, 2024 | — | 25,627,446 | 10,663,088 | $— | 256 | 107 | 4,179 | 3,287,541 | (1,431) | (80,514) | 3,210,138 |
| Balance as of December 31, 2024 | — | 25,634,748 | 10,658,604 | $— | 256 | 107 | 7,389 | 3,340,540 | 1,470 | (50,645) | 3,299,117 |
| Net income (loss) | — | — | — | — | — | — | — | 370,703 | — | (11,044) | 359,659 |
| Other comprehensive income | — | — | — | — | — | — | — | — | 2,027 | — | 2,027 |
| Issuance of noncontrolling interests | — | — | — | — | — | — | — | — | — | 45,583 | 45,583 |
| Distribution to noncontrolling interests | — | — | — | — | — | — | — | — | — | (45,106) | (45,106) |
| Cash dividends on Class A and Class B common stock - $0.86 per share | — | — | — | — | — | — | — | (31,157) | — | — | (31,157) |
| Issuance of common stock, net of forfeitures | — | 138,755 | — | — | 1 | — | 3,373 | — | — | — | 3,374 |
| Compensation expense for stock based awards | — | — | — | — | — | — | 9,819 | — | — | — | 9,819 |
| Repurchase of common stock | — | (439,895) | — | — | (4) | — | (19,523) | (33,564) | — | — | (53,091) |
| Conversion of common stock | — | 41,929 | (41,929) | — | 1 | (1) | — | — | — | — | — |
| Acquisition of remaining 20% of NextGen, net of tax | — | — | — | — | — | — | — | 1,853 | — | (5,383) | (3,530) |
| Balance as of September 30, 2025 | — | 25,375,537 | 10,616,675 | $— | 254 | 106 | 1,058 | 3,648,375 | 3,497 | (66,595) | 3,586,695 |
| NELNET, INC. AND SUBSIDIARIES | ||
|---|---|---|
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (Dollars in thousands) | ||
| (unaudited) | ||
| Nine months ended | ||
| September 30, | ||
| 2025 | 2024 | |
| Net income attributable to Nelnet, Inc. | $370,703 | 120,886 |
| Net loss attributable to noncontrolling interests | (11,044) | (8,398) |
| Net income | 359,659 | 112,488 |
| Adjustments to reconcile net income to net cash provided by operating activities, net of acquisitions: | ||
| Depreciation and amortization, including debt discounts and loan premiums and deferred origination costs | 68,261 | 106,022 |
| Loan discount and deferred lender fees accretion | (58,107) | (36,838) |
| Provision for loan losses | 29,704 | 32,551 |
| Derivative market value adjustments | 10,978 | 3,668 |
| Payments to clearinghouse - initial and variation margin, net | (5,015) | (4,404) |
| Gain on partial redemption of ALLO investment | (175,044) | — |
| Loss on sale of loans, net | 1,562 | 1,685 |
| (Gain) loss on investments, net | (47,076) | 6,595 |
| Loss from repurchases of debt, net | 7,865 | 2 |
| Deferred income tax benefit | (82,465) | (22,707) |
| Non-cash compensation expense | 10,064 | 8,954 |
| Impairment expense and provision for beneficial interests | 21,024 | 36,865 |
| Changes in operating assets and liabilities: | ||
| Decrease in loan and investment accrued interest receivable | 14,894 | 168,795 |
| Decrease in accounts receivable | 12,219 | 42,553 |
| Decrease in other assets | 43,488 | 48,057 |
| Decrease in the carrying amount of ROU asset | 2,865 | 2,857 |
| Decrease in accrued interest payable | (6,329) | (10,002) |
| Increase (decrease) in other liabilities | 79,713 | (11,435) |
| Decrease in the carrying amount of lease liability | (4,365) | (2,868) |
| Other | 1,475 | (481) |
| Total adjustments | (74,289) | 369,869 |
| Net cash provided by operating activities | 285,370 | 482,357 |
| Cash flows from investing activities, net of acquisitions: | ||
| Purchases and originations of loans, including cash paid for student loan trusts,net of cash and restricted cash acquired | (1,984,778) | (611,595) |
| Purchases of loans from a related party | (206,668) | (104,198) |
| Net proceeds from loan repayments, claims, and capitalized interest | 2,081,162 | 2,745,084 |
| Proceeds from sale of loans | 240,398 | 91,999 |
| Proceeds from sale of loans to a related party | 290,164 | 199,694 |
| Purchases of available-for-sale securities | (416,084) | (414,306) |
| Proceeds from sales of available-for-sale securities | 205,954 | 372,176 |
| Proceeds from beneficial interest in loan securitizations | 55,865 | 33,898 |
| Purchases of other investments and issuance of notes receivable | (249,990) | (287,590) |
| Proceeds from other investments and repayments of notes receivable | 511,219 | 79,095 |
| Redemption of held-to-maturity debt securities | 10,549 | 11,890 |
| Purchases of property and equipment | (18,744) | (38,280) |
| Net cash provided by investing activities | $519,047 | 2,077,867 |
| NELNET, INC. AND SUBSIDIARIES (Continued) | ||
|---|---|---|
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (Dollars in thousands) | ||
| (unaudited) | ||
| Nine months ended | ||
| September 30, | ||
| 2025 | 2024 | |
| Cash flows from financing activities, net of acquisitions: | ||
| Payments on bonds and notes payable | $(1,739,244) | (3,010,914) |
| Proceeds from issuance of bonds and notes payable | 557,371 | 85,037 |
| Payments of debt issuance costs | (4,803) | (2,191) |
| Increase in bank deposits, net | 290,634 | 327,159 |
| Decrease in due to customers | (35,862) | (21,185) |
| Dividends paid | (31,157) | (30,676) |
| Repurchases of common stock | (53,091) | (82,887) |
| Proceeds from issuance of common stock | 1,392 | 1,424 |
| Acquisition of noncontrolling interest | (3,944) | (325) |
| Issuance of noncontrolling interests | 54,984 | 51,245 |
| Distribution to noncontrolling interests | (5,211) | (3,587) |
| Net cash used in financing activities | (968,931) | (2,686,900) |
| Effect of exchange rate changes on cash and restricted cash | 290 | 203 |
| Net decrease in cash, cash equivalents, and restricted cash | (164,224) | (126,473) |
| Cash, cash equivalents, and restricted cash, beginning of period | 931,020 | 1,025,491 |
| Cash, cash equivalents, and restricted cash, end of period | $766,796 | 899,018 |
| Supplemental disclosures of cash flow information: | ||
|---|---|---|
| Cash disbursements made for interest | $360,648 | 511,247 |
| Cash disbursements made for income taxes, net of refunds and credits received (a) | $50,443 | 13,441 |
| Cash disbursements made for operating leases | $3,933 | 3,615 |
| Non-cash operating, investing, and financing activity: | ||
| ROU assets obtained in exchange for lease obligations | $6,550 | 1,048 |
| Receipt of beneficial interest in consumer loan securitizations as consideration from sale of loans | $28,137 | 13,799 |
| Receipt of asset-backed investment securities as consideration from sale of loans | $2,370 | — |
| Distribution to noncontrolling interests | $39,895 | 46,128 |
| Issuance of noncontrolling interests | $9,401 | 22,095 |
(a)The Company utilized $43.8 million and $34.0 million of federal and state tax credits related primarily to renewable energy during the nine months ended September 30, 2025 and 2024, respectively.
Supplemental disclosures of non-cash activities regarding the Company's acquisition of certain student loan trusts are contained in note 3.
The following table presents a reconciliation of cash, cash equivalents, and restricted cash reported in the consolidated balance sheets to the total of the amounts reported in the consolidated statements of cash flows:
| As of | As of | As of | As of | |
|---|---|---|---|---|
| September 30, 2025 | December 31, 2024 | September 30, 2024 | December 31, 2023 | |
| Total cash and cash equivalents | $216,425 | 194,518 | 219,684 | 168,112 |
| Restricted cash | 394,074 | 332,100 | 344,366 | 488,723 |
| Restricted cash - due to customers | 156,297 | 404,402 | 334,968 | 368,656 |
| Cash, cash equivalents, and restricted cash | $766,796 | 931,020 | 899,018 | 1,025,491 |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except per share amounts, unless otherwise noted)
- Basis of Financial Reporting
The accompanying unaudited consolidated financial statements of Nelnet, Inc. and subsidiaries (the “Company” or "Nelnet") as of September 30, 2025 and for the three and nine months ended September 30, 2025 and 2024 have been prepared on the same basis as the audited consolidated financial statements for the year ended December 31, 2024 and, in the opinion of the Company’s management, the unaudited consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of results of operations for the interim periods presented. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the three and nine months ended September 30, 2025 are not necessarily indicative of the results for the year ending December 31, 2025. The unaudited consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 (the "2024 Annual Report").
- Partial Redemption of ALLO Investment
Nelnet had both voting and preferred membership interest investments in ALLO Holdings, LLC (referred to collectively with its subsidiary ALLO Communications LLC as "ALLO"). In June 2025, ALLO executed a financing transaction that resulted in gross proceeds to ALLO of $500 million (the “Financing”). In conjunction with the Financing, Nelnet, ALLO, and certain other ALLO investors entered into a Membership Unit Redemption Agreement (the “Redemption Agreement”) pursuant to which ALLO agreed to redeem certain of its membership interests from certain investors in ALLO, including Nelnet (the “Transaction”).
As part of the Transaction, ALLO redeemed all of Nelnet's outstanding preferred membership interests on June 4, 2025, including the preferred return accrued on such membership interests through the Transaction's closing date. In addition, ALLO redeemed a portion of Nelnet’s voting membership interest in ALLO.
Upon closing, Nelnet received cash proceeds of $410.9 million from ALLO for these redemptions and recognized a pre-tax gain of $175.0 million, which is included in "gain on partial redemption of ALLO investment" on the Company's consolidated statements of income.
Following the closing of the Transaction, Nelnet no longer owns any preferred membership interests in ALLO, but maintains a significant voting equity investment in ALLO. Nelnet’s ownership of voting membership interest in ALLO decreased from 45% to 27%. Nelnet will continue to account for its remaining 27% voting membership interest in ALLO under the Hypothetical Liquidation at Book Value (HLBV) method of accounting, with the carrying value of such interest remaining at $0.
- Loans and Accrued Interest Receivable and Allowance for Loan Losses
Loans and accrued interest receivable consisted of the following:
| As of | As of | |
|---|---|---|
| September 30, 2025 | December 31, 2024 | |
| Non-Nelnet Bank: | ||
| Federally insured loans: | ||
| Stafford and other | $1,889,476 | 2,108,960 |
| Consolidation | 5,970,781 | 6,279,604 |
| Total (a) | 7,860,257 | 8,388,564 |
| Private education loans (b) | 147,737 | 221,744 |
| Consumer loans and other financing receivables (c) | 840,739 | 345,560 |
| Non-Nelnet Bank loans | 8,848,733 | 8,955,868 |
| Nelnet Bank: | ||
| Federally insured loans: | ||
| Stafford and other | 24,745 | — |
| Consolidation | 154,203 | — |
| Total (a) | 178,948 | — |
| Private education loans (b) | 529,396 | 482,445 |
| Consumer and other loans | 266,539 | 162,152 |
| Nelnet Bank loans | 974,883 | 644,597 |
| Accrued interest receivable | 558,912 | 549,283 |
| Loan discount and deferred lender fees, net of unamortized loan premiums and deferred origination costs | (47,735) | (42,114) |
| Allowance for loan losses: | ||
| Non-Nelnet Bank: | ||
| Federally insured loans | (43,535) | (49,091) |
| Private education loans | (7,103) | (11,130) |
| Consumer loans and other financing receivables | (33,147) | (38,468) |
| Non-Nelnet Bank allowance for loan losses | (83,785) | (98,689) |
| Nelnet Bank: | ||
| Federally insured loans | (707) | — |
| Private education loans | (11,732) | (10,086) |
| Consumer and other loans | (11,308) | (6,115) |
| Nelnet Bank allowance for loan losses | (23,747) | (16,201) |
| $10,227,261 | 9,992,744 | |
(a) During the third quarter of 2025, the Asset Generation and Management operating segment (Non-Nelnet Bank) contributed $77.5 million of federally insured loans to Nelnet Bank.
(b) During the second quarter of 2025, the Asset Generation and Management operating segment (Non-Nelnet Bank) contributed $42.2 million of private education loans to Nelnet Bank.
(c) In the third quarter of 2025, the Company began to purchase Pay Later receivables via a forward flow agreement from an unrelated third party. As of September 30, 2025, the balance of Pay Later receivables was $548.3 million and these loans are included in the "consumer loans and other financing receivables" in the above table. Pay Later receivables enable consumers to purchase goods or services at the time of the transaction and split their purchase into installment payments. The Company purchases Pay Later receivables at a discount, and accretes the discount into interest income over the estimated life of the receivable.
The following table summarizes the allowance for loan losses as a percentage of the ending loan balance for each of the Company's loan portfolios:
| As of | As of | |
|---|---|---|
| September 30, 2025 | December 31, 2024 | |
| Non-Nelnet Bank: | ||
| Federally insured loans (a) | 0.55% | 0.59% |
| Private education loans | 4.81% | 5.02% |
| Consumer loans and other financing receivables (b) | 3.94% | 11.13% |
| Nelnet Bank: | ||
| Federally insured loans (a) | 0.40% | — |
| Private education loans | 2.22% | 2.09% |
| Consumer and other loans | 4.24% | 3.77% |
(a) The allowance for loan losses as a percent of the risk sharing component of federally insured student loans not covered by the federal guaranty for Non-Nelnet Bank was 19.4% and 20.6% as of September 30, 2025 and December 31, 2024, respectively, and for Nelnet Bank was 17.4% as of September 30, 2025.
(b) In the third quarter of 2025, the Company began to purchase Pay Later receivables that have lower allowance rates.
Consumer Loan Sales
During the second quarter of 2024 and third quarter of 2025, the Company sold $133.8 million and $203.3 million, respectively, of consumer loans, and recognized losses from such transactions of $1.4 million and $2.5 million, respectively. For these transactions, the Company sold portfolios of loans to unrelated third parties who securitized such loans. As partial consideration received for the loans sold, the Company received a residual interest in the loan securitization that are included in "other investments and notes receivable, net" on the Company's consolidated balance sheets.
Student Loan Trust Acquisitions
In March 2025, the Company acquired the ownership interests in certain trusts giving the Company rights to the residual interest. The trusts included $646.9 million (par value) of federally insured Stafford and consolidation loans funded to term with $721.3 million (par value) of bonds and notes payable, $32.2 million of cash and restricted cash, and $27.4 million of other net assets. The Company has consolidated these trusts on its consolidated balance sheet as the Company is the primary beneficiary of the trusts. Upon acquisition, the Company recorded the student loans and bonds and notes payable at fair value, resulting in the recognition of a student loan net discount of $6.6 million and a bonds and notes payable discount of $31.1 million. These net discounts will be accreted using the effective interest method over the lives of the underlying assets and liabilities.
Activity in the Allowance for Loan Losses
The following table presents the activity in the allowance for loan losses by portfolio segment:
| Balance at beginning of period | Provision (negative provision) for loan losses (a) | Charge-offs | Recoveries | Initial allowance on loans purchased with credit deterioration | Loan sales | Balance at end of period | |
|---|---|---|---|---|---|---|---|
| Three months ended September 30, 2025 | |||||||
| Non-Nelnet Bank: | |||||||
| Federally insured loans | $47,627 | 843 | (4,673) | — | — | (262) | 43,535 |
| Private education loans | 7,406 | — | (459) | 156 | — | — | 7,103 |
| Consumer loans and other financing receivables | 48,028 | (8,217) | (7,176) | 512 | — | — | 33,147 |
| Nelnet Bank: | |||||||
| Federally insured loans | 355 | 113 | (23) | — | — | 262 | 707 |
| Private education loans | 12,360 | 1,177 | (2,169) | 364 | — | — | 11,732 |
| Consumer and other loans | 9,573 | 2,186 | (581) | 130 | — | — | 11,308 |
| $125,349 | (3,898) | (15,081) | 1,162 | — | — | 107,532 | |
| Three months ended September 30, 2024 | |||||||
| Non-Nelnet Bank: | |||||||
| Federally insured loans | $54,180 | 1,247 | (4,593) | — | — | — | 50,834 |
| Private education loans | 13,065 | (126) | (1,414) | 219 | — | — | 11,744 |
| Consumer loans and other financing receivables | 14,135 | 10,847 | (2,981) | 379 | — | — | 22,380 |
| Nelnet Bank: | |||||||
| Private education loans | 3,559 | 565 | (892) | 438 | — | — | 3,670 |
| Consumer and other loans | 11,825 | 5,326 | (3,830) | 193 | — | — | 13,514 |
| $96,764 | 17,859 | (13,710) | 1,229 | — | — | 102,142 | |
| Nine months ended September 30, 2025 | |||||||
| Non-Nelnet Bank: | |||||||
| Federally insured loans | $49,091 | 5,588 | (10,882) | — | — | (262) | 43,535 |
| Private education loans | 11,130 | (2,761) | (1,916) | 650 | — | — | 7,103 |
| Consumer loans and other financing receivables | 38,468 | 13,943 | (20,319) | 1,055 | — | — | 33,147 |
| Nelnet Bank: | |||||||
| Federally insured loans | — | 488 | (43) | — | — | 262 | 707 |
| Private education loans | 10,086 | 5,102 | (5,303) | 787 | 1,060 | — | 11,732 |
| Consumer and other loans | 6,115 | 6,920 | (2,029) | 302 | — | — | 11,308 |
| $114,890 | 29,280 | (40,492) | 2,794 | 1,060 | — | 107,532 | |
| Nine months ended September 30, 2024 | |||||||
| Non-Nelnet Bank: | |||||||
| Federally insured loans | $68,453 | (2,593) | (15,026) | — | — | — | 50,834 |
| Private education loans | 15,750 | (392) | (4,254) | 640 | — | — | 11,744 |
| Consumer loans and other financing receivables | 11,742 | 17,184 | (7,567) | 1,021 | — | — | 22,380 |
| Nelnet Bank: | |||||||
| Private education loans | 3,347 | 1,576 | (1,796) | 543 | — | — | 3,670 |
| Consumer and other loans | 5,351 | 16,563 | (8,635) | 235 | — | — | 13,514 |
| $104,643 | 32,338 | (37,278) | 2,439 | — | — | 102,142 | |
(a) Once a loan is classified as held for sale, any allowance for loan losses that existed immediately prior to the reclassification to held for sale is reversed through provision. The following table presents the reduction to provision for loan losses as a result of consumer loan sales during the periods presented.
| Provision for current period | Reduction to provision | Provision(negative provision) for loan losses | |
|---|---|---|---|
| Three months ended September 30, 2025 | |||
| Non-Nelnet Bank | |||
| Consumer loans and other financing receivables | $20,693 | (28,910) | (8,217) |
| Three months ended September 30, 2024 | |||
| Non-Nelnet Bank | |||
| Consumer loans and other financing receivables | $11,026 | (179) | 10,847 |
| Nine months ended September 30, 2025 | |||
| Non-Nelnet Bank | |||
| Consumer loans and other financing receivables | $42,853 | (28,910) | 13,943 |
| Nine months ended September 30, 2024 | |||
| Non-Nelnet Bank | |||
| Consumer loans and other financing receivables | $30,058 | (12,874) | 17,184 |
During the periods presented above, the primary item impacting provision for loan losses was the establishment of an initial allowance for loans originated and acquired during the periods. Provision for loan losses was also impacted by the reversal of provision for consumer loans sold. The Company recorded a negative provision for loan losses for its federally insured loan portfolio in 2024 due to an increase in prepayment assumptions.
The following table summarizes annualized net charge-offs as a percentage of average loans for each of the Company's loan portfolios:
| Three months ended September 30, | Nine months ended September 30, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Non-Nelnet Bank: | ||||
| Federally insured loans | 0.22% | 0.19% | 0.17% | 0.19% |
| Private education loans | 0.79% | 1.97% | 0.95% | 1.89% |
| Consumer loans and other financing receivables | 5.75% | 4.81% | 6.28% | 4.92% |
| Nelnet Bank: | ||||
| Federally insured loans | 0.06% | — | 0.06% | — |
| Private education loans | 1.38% | 0.51% | 1.19% | 0.46% |
| Consumer and other loans (a) | 0.79% | 7.28% | 1.21% | 7.49% |
(a) Decrease in annualized net charge-offs as a percentage of average loans was due to a change in mix of consumer loan portfolios that resulted in a portfolio of loans with an overall higher credit quality in 2025 compared with 2024 and Nelnet Bank exiting a consumer loan program in December 2024 that had previously incurred significant charge-offs.
Unfunded Loan Commitments
As of September 30, 2025 and December 31, 2024, Nelnet Bank had a liability of approximately $751,000 and $326,000, respectively, related to $80.1 million and $40.7 million, respectively, of unfunded private education, consumer, and other loan commitments. When a new loan commitment is made, the Company records an allowance that is included in "other liabilities" on the consolidated balance sheet by recording a provision for loan losses. When the loan is funded, the Company transfers the liability to the allowance for loan losses. Below is a reconciliation of the provision for loan losses reported in the consolidated statements of income.
| Three months ended · Nine months ended | ||||
|---|---|---|---|---|
| September 30, | September 30, | |||
| 2025 | 2024 | 2025 | 2024 | |
| (Negative provision) provision for loan losses from allowance activity table above | $(3,898) | 17,859 | 29,280 | 32,338 |
| Provision for unfunded loan commitments | 335 | 252 | 424 | 213 |
| (Negative provision) provision for loan losses reported in consolidated statements of income | $(3,563) | 18,111 | 29,704 | 32,551 |
Key Credit Quality Indicators
Loan Status and Delinquencies
Key credit quality indicators for the Company’s federally insured, private education, and consumer and other loan portfolios are loan status, including delinquencies. The impact of changes in loan status is incorporated into the allowance for loan losses calculation. Delinquencies have the potential to adversely impact the Company’s earnings through increased servicing and collection costs and account charge-offs. Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. The following table presents the Company’s loan status and delinquency amounts:
| As of September 30, 2025 · As of December 31, 2024 · As of September 30, 2024 | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Federally insured loans - Non-Nelnet Bank: | ||||||||||||||||
| Loans in-school/grace/deferment | $382,850 | 4.9% | $376,765 | 4.5% | $428,013 | 4.7% | ||||||||||
| Loans in forbearance | 514,385 | 6.5 | 586,412 | 7.0 | 647,797 | 7.2 | ||||||||||
| Loans in repayment status: | ||||||||||||||||
| Loans current | 5,994,951 | 86.1% | 6,374,897 | 85.9% | 6,702,079 | 83.8% | ||||||||||
| Loans delinquent 31-60 days | 254,998 | 3.7 | 243,348 | 3.3 | 348,833 | 4.4 | ||||||||||
| Loans delinquent 61-90 days | 166,763 | 2.4 | 166,474 | 2.2 | 190,379 | 2.4 | ||||||||||
| Loans delinquent 91-120 days | 100,575 | 1.4 | 113,838 | 1.5 | 148,417 | 1.9 | ||||||||||
| Loans delinquent 121-270 days | 317,151 | 4.6 | 380,823 | 5.1 | 419,730 | 5.2 | ||||||||||
| Loans delinquent 271 days or greater | 128,584 | 1.8 | 146,007 | 2.0 | 185,494 | 2.3 | ||||||||||
| Total loans in repayment | 6,963,022 | 88.6 | 100.0% | 7,425,387 | 88.5 | 100.0% | 7,994,932 | 88.1 | 100.0% | |||||||
| Total federally insured loans | 7,860,257 | 100.0% | 8,388,564 | 100.0% | 9,070,742 | 100.0% | ||||||||||
| Accrued interest receivable | 537,303 | 540,272 | 592,250 | |||||||||||||
| Loan discount, net of unamortized premiums and deferred origination costs | (24,895) | (21,513) | (22,807) | |||||||||||||
| Allowance for loan losses | (43,535) | (49,091) | (50,834) | |||||||||||||
| Total federally insured loans and accrued interest receivable, net of allowance for loan losses | $8,329,130 | $8,858,232 | $9,589,351 | |||||||||||||
| Private education loans - Non-Nelnet Bank: | ||||||||||||||||
| Loans in-school/grace/deferment | $4,232 | 2.9% | $5,997 | 2.7% | $7,504 | 3.2% | ||||||||||
| Loans in forbearance | 2,653 | 1.8 | 2,089 | 0.9 | 1,979 | 0.8 | ||||||||||
| Loans in repayment status: | ||||||||||||||||
| Loans current | 137,678 | 97.8% | 206,825 | 96.8% | 218,425 | 97.2% | ||||||||||
| Loans delinquent 31-60 days | 1,314 | 0.9 | 3,424 | 1.6 | 3,013 | 1.3 | ||||||||||
| Loans delinquent 61-90 days | 865 | 0.6 | 1,275 | 0.6 | 1,301 | 0.6 | ||||||||||
| Loans delinquent 91 days or greater | 995 | 0.7 | 2,134 | 1.0 | 2,073 | 0.9 | ||||||||||
| Total loans in repayment | 140,852 | 95.3 | 100.0% | 213,658 | 96.4 | 100.0% | 224,812 | 96.0 | 100.0% | |||||||
| Total private education loans | 147,737 | 100.0% | 221,744 | 100.0% | 234,295 | 100.0% | ||||||||||
| Accrued interest receivable | 1,291 | 2,019 | 2,248 | |||||||||||||
| Loan discount, net of unamortized premiums | (4,740) | (6,350) | (6,772) | |||||||||||||
| Allowance for loan losses | (7,103) | (11,130) | (11,744) | |||||||||||||
| Total private education loans and accrued interest receivable, net of allowance for loan losses | $137,185 | $206,283 | $218,027 | |||||||||||||
| As of September 30, 2025 · As of December 31, 2024 · As of September 30, 2024 | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Consumer loans and other financing receivables - Non-Nelnet Bank: | ||||||||||||||||
| Loans in deferment | $1,354 | 0.2% | $150 | 0.0% | $315 | 0.1% | ||||||||||
| Loans in repayment status: | ||||||||||||||||
| Loans current | 828,408 | 98.7% | 335,355 | 97.1% | 239,128 | 97.9% | ||||||||||
| Loans delinquent 31-60 days | 3,543 | 0.4 | 3,667 | 1.1 | 2,032 | 0.8 | ||||||||||
| Loans delinquent 61-90 days | 2,343 | 0.3 | 2,143 | 0.6 | 1,515 | 0.6 | ||||||||||
| Loans delinquent 91 days or greater | 5,091 | 0.6 | 4,245 | 1.2 | 1,562 | 0.7 | ||||||||||
| Total loans in repayment | 839,385 | 99.8 | 100.0% | 345,410 | 100.0 | 100.0% | 244,237 | 99.9 | 100.0% | |||||||
| Total consumer loans and other financing receivables | 840,739 | 100.0% | 345,560 | 100.0% | 244,552 | 100.0% | ||||||||||
| Accrued interest receivable | 1,102 | 1,868 | 1,115 | |||||||||||||
| Loan discount and deferred lender fees, net of unamortized premiums | (16,215) | (10,713) | (10,789) | |||||||||||||
| Allowance for loan losses | (33,147) | (38,468) | (22,380) | |||||||||||||
| Total consumer loans and other financing receivables and accrued interest receivable, net of allowance for loan losses | $792,479 | $298,247 | $212,498 | |||||||||||||
| Federally insured loans - Nelnet Bank (a): | ||||||||||||||||
| Loans in-school/grace/deferment | $6,705 | 3.7% | ||||||||||||||
| Loans in forbearance | 9,263 | 5.2 | ||||||||||||||
| Loans in repayment status: | ||||||||||||||||
| Loans current | 146,308 | 89.8% | ||||||||||||||
| Loans delinquent 30-59 days | 4,827 | 3.0 | ||||||||||||||
| Loans delinquent 60-89 days | 2,185 | 1.3 | ||||||||||||||
| Loans delinquent 90-119 days | 2,684 | 1.6 | ||||||||||||||
| Loans delinquent 120-270 days | 5,668 | 3.5 | ||||||||||||||
| Loans delinquent 271 days or greater | 1,308 | 0.8 | ||||||||||||||
| Total loans in repayment | 162,980 | 91.1 | 100.0% | |||||||||||||
| Total federally insured loans | 178,948 | 100.0% | ||||||||||||||
| Accrued interest receivable | 11,253 | |||||||||||||||
| Loan premium | 945 | |||||||||||||||
| Allowance for loan losses | (707) | |||||||||||||||
| Total federally insured loans and accrued interest receivable, net of allowance for loan losses | $190,439 | |||||||||||||||
| Private education loans - Nelnet Bank (a): | ||||||||||||||||
| Loans in-school/grace/deferment | $58,753 | 11.1% | $31,674 | 6.6% | $29,396 | 8.3% | ||||||||||
| Loans in forbearance | 1,476 | 0.3 | 3,061 | 0.6 | 2,364 | 0.7 | ||||||||||
| Loans in repayment status: | ||||||||||||||||
| Loans current | 460,142 | 98.1% | 439,569 | 98.2% | 318,090 | 99.2% | ||||||||||
| Loans delinquent 30-59 days | 3,526 | 0.7 | 4,327 | 1.0 | 1,075 | 0.3 | ||||||||||
| Loans delinquent 60-89 days | 2,403 | 0.5 | 1,497 | 0.3 | 723 | 0.2 | ||||||||||
| Loans delinquent 90 days or greater | 3,096 | 0.7 | 2,317 | 0.5 | 1,006 | 0.3 | ||||||||||
| Total loans in repayment | 469,167 | 88.6 | 100.0% | 447,710 | 92.8 | 100.0% | 320,894 | 91.0 | 100.0% | |||||||
| Total private education loans | 529,396 | 100.0% | 482,445 | 100.0% | 352,654 | 100.0% | ||||||||||
| Accrued interest receivable | 6,400 | 4,103 | 3,098 | |||||||||||||
| Loan discount, net of unamortized premiums and deferred origination costs | (6,652) | (4,581) | 5,786 | |||||||||||||
| Allowance for loan losses | (11,732) | (10,086) | (3,670) | |||||||||||||
| Total private education loans and accrued interest receivable, net of allowance for loan losses | $517,412 | $471,881 | $357,868 | |||||||||||||
| As of September 30, 2025 · As of December 31, 2024 · As of September 30, 2024 | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Consumer and other loans - Nelnet Bank (a): | ||||||||||||||||
| Loans in deferment | $9,954 | 3.7% | $5,186 | 3.2% | $3,073 | 1.5% | ||||||||||
| Loans in repayment status: | ||||||||||||||||
| Loans current | 254,720 | 99.2% | 155,772 | 99.2% | 198,613 | 97.3% | ||||||||||
| Loans delinquent 30-59 days | 694 | 0.3 | 803 | 0.5 | 2,251 | 1.1 | ||||||||||
| Loans delinquent 60-89 days | 719 | 0.3 | 243 | 0.2 | 1,497 | 0.7 | ||||||||||
| Loans delinquent 90 days or greater | 452 | 0.2 | 148 | 0.1 | 1,784 | 0.9 | ||||||||||
| Total loans in repayment | 256,585 | 96.3 | 100.0% | 156,966 | 96.8 | 100.0% | 204,145 | 98.5 | 100.0% | |||||||
| Total consumer and other loans | 266,539 | 100.0% | 162,152 | 100.0% | 207,218 | 100.0% | ||||||||||
| Accrued interest receivable | 1,563 | 1,021 | 1,386 | |||||||||||||
| Loan premium, net of unaccreted discount | 3,822 | 1,043 | 47 | |||||||||||||
| Allowance for loan losses | (11,308) | (6,115) | (13,514) | |||||||||||||
| Total consumer and other loans and accrued interest receivable, net of allowance for loan losses | $260,616 | $158,101 | $195,137 | |||||||||||||
(a) For the periods presented for Nelnet Bank, the delinquency bucket periods conform with the delinquency bucket periods reflected in Nelnet Bank's Call Reports filed with the Federal Deposit Insurance Corporation.
FICO Scores
An additional key credit quality indicator for Nelnet Bank private education and consumer loans is FICO scores at the time of origination or purchase. The following tables highlight the gross principal balance of Nelnet Bank's portfolios, by year of origination, stratified by FICO score at the time of origination or purchase:
Nelnet Bank Private Education Loans
| Nine months ended September 30, 2025 · 2024 · 2023 · 2022 · 2021 · Prior years · Total · Percent of total | ||||||||
|---|---|---|---|---|---|---|---|---|
| FICO at origination or purchase: | ||||||||
| Less than 705 | $4,699 | 2,948 | 3,148 | 4,257 | 3,685 | 20,367 | 39,104 | 7.4% |
| 705 - 734 | 7,622 | 4,871 | 7,964 | 17,748 | 6,828 | 15,288 | 60,321 | 11.4 |
| 735 - 764 | 10,018 | 5,652 | 7,482 | 27,110 | 11,442 | 22,907 | 84,611 | 16.0 |
| 765 - 794 | 13,521 | 6,519 | 5,144 | 42,073 | 21,500 | 27,743 | 116,500 | 22.0 |
| Greater than 794 | 19,279 | 14,419 | 12,753 | 59,625 | 42,567 | 73,155 | 221,798 | 41.9 |
| No FICO score available or required (a) | — | 2,296 | 4,766 | — | — | — | 7,062 | 1.3 |
| $55,139 | 36,705 | 41,257 | 150,813 | 86,022 | 159,460 | 529,396 | 100.0% | |
| 2024 · 2023 · 2022 · 2021 · 2020 · Prior years · Total · Percent of total | ||||||||
|---|---|---|---|---|---|---|---|---|
| FICO at origination or purchase: | ||||||||
| Less than 705 | $2,566 | 3,578 | 4,759 | 4,182 | 331 | 15,485 | 30,901 | 6.4% |
| 705 - 734 | 3,736 | 8,874 | 19,666 | 7,531 | 426 | 12,349 | 52,582 | 10.9 |
| 735 - 764 | 4,398 | 8,629 | 29,918 | 12,775 | 1,286 | 17,920 | 74,926 | 15.5 |
| 765 - 794 | 4,600 | 6,115 | 46,340 | 24,073 | 1,105 | 23,867 | 106,100 | 22.0 |
| Greater than 794 | 9,971 | 15,471 | 67,454 | 49,408 | 4,406 | 63,258 | 209,968 | 43.5 |
| No FICO score available or required (a) | 2,476 | 5,492 | — | — | — | — | 7,968 | 1.7 |
| $27,747 | 48,159 | 168,137 | 97,969 | 7,554 | 132,879 | 482,445 | 100.0% | |
Nelnet Bank Consumer and Other Loans
| Nine months ended September 30, 2025 · 2024 · 2023 · 2022 · 2021 · Prior years · Total · Percent of total | ||||||||
|---|---|---|---|---|---|---|---|---|
| FICO at origination: | ||||||||
| Less than 720 | $14,112 | 17,370 | 1,624 | — | 287 | 1,342 | 34,735 | 13.0% |
| 720 - 769 | 25,308 | 38,313 | 3,870 | 16 | 5,582 | 7,329 | 80,418 | 30.2 |
| Greater than 769 | 51,911 | 50,469 | 6,045 | 97 | 5,331 | 3,339 | 117,192 | 44.0 |
| No FICO score available or required (a) | 27,655 | 5,793 | 432 | 260 | 54 | — | 34,194 | 12.8 |
| $118,986 | 111,945 | 11,971 | 373 | 11,254 | 12,010 | 266,539 | 100.0% | |
| 2024 · 2023 · 2022 · 2021 · 2020 · Prior years · Total · Percent of total | ||||||||
|---|---|---|---|---|---|---|---|---|
| FICO at origination: | ||||||||
| Less than 720 | $19,264 | 1,762 | — | 376 | 675 | 1,170 | 23,247 | 14.3% |
| 720 - 769 | 41,217 | 4,502 | 19 | 6,152 | 5,448 | 3,105 | 60,443 | 37.3 |
| Greater than 769 | 57,323 | 6,577 | 103 | 5,834 | 2,755 | 1,165 | 73,757 | 45.5 |
| No FICO score available or required (a) | 3,936 | 437 | 277 | 55 | — | — | 4,705 | 2.9 |
| $121,740 | 13,278 | 399 | 12,417 | 8,878 | 5,440 | 162,152 | 100.0% | |
(a) Loans with no FICO score available or required refers to loans issued to borrowers for which the Company cannot obtain a FICO score or are not required to under a special purpose credit program. Management proactively assesses the risk and size of this loan category and, when necessary, takes actions to mitigate the credit risk.
Nonaccrual Status
The Company does not place federally insured loans on nonaccrual status due to the government guaranty. The amortized cost of private education, consumer, and other loans on nonaccrual status, as well as the allowance for loan losses related to such loans, as of September 30, 2025 and December 31, 2024, was not material.
Amortized Cost Basis by Origination Year
The following table presents the amortized cost of the Company's private education, consumer, and other loans by loan status and delinquency amount as of September 30, 2025 based on year of origination. Effective July 1, 2010, no new loan originations can be made under the Federal Family Education Loan Program (the "FFEL Program" or FFELP) and all new federal loan originations must be made under the Federal Direct Loan Program. As such, all of the Company’s federally insured loans were originated prior to July 1, 2010.
| Nine months ended September 30, 2025 | 2024 | 2023 | 2022 | 2021 | Prior years | Total | |
|---|---|---|---|---|---|---|---|
| Private education loans - Non-Nelnet Bank: | |||||||
| Loans in-school/grace/deferment | $— | — | — | 336 | 2,066 | 1,830 | 4,232 |
| Loans in forbearance | — | — | — | 36 | 246 | 2,371 | 2,653 |
| Loans in repayment status: | |||||||
| Loans current | — | — | 175 | 3,676 | 5,002 | 128,825 | 137,678 |
| Loans delinquent 31-60 days | — | — | — | 21 | 39 | 1,254 | 1,314 |
| Loans delinquent 61-90 days | — | — | — | — | 21 | 844 | 865 |
| Loans delinquent 91 days or greater | — | — | — | — | 72 | 923 | 995 |
| Total loans in repayment | — | — | 175 | 3,697 | 5,134 | 131,846 | 140,852 |
| Total private education loans | $— | — | 175 | 4,069 | 7,446 | 136,047 | 147,737 |
| Accrued interest receivable | 1,291 | ||||||
| Loan discount, net of unamortized premiums | (4,740) | ||||||
| Allowance for loan losses | (7,103) | ||||||
| Total private education loans and accrued interest receivable, net of allowance for loan losses | $137,185 | ||||||
| Gross charge-offs - nine months ended September 30, 2025 | $— | — | — | — | 52 | 1,864 | 1,916 |
| Consumer loans and other financing receivables - Non-Nelnet Bank: | |||||||
| Loans in deferment | $— | 452 | 902 | — | — | — | 1,354 |
| Loans in repayment status: | |||||||
| Loans current | 766,123 | 35,952 | 24,275 | 1,549 | 238 | 271 | 828,408 |
| Loans delinquent 31-60 days | 1,449 | 1,374 | 550 | 170 | — | — | 3,543 |
| Loans delinquent 61-90 days | 589 | 1,015 | 697 | 42 | — | — | 2,343 |
| Loans delinquent 91 days or greater | 371 | 3,379 | 680 | 588 | 73 | — | 5,091 |
| Total loans in repayment | 768,532 | 41,720 | 26,202 | 2,349 | 311 | 271 | 839,385 |
| Total consumer loans and other financing receivables | $768,532 | 42,172 | 27,104 | 2,349 | 311 | 271 | 840,739 |
| Accrued interest receivable | 1,102 | ||||||
| Loan discount and deferred lender fees, net of unamortized premiums | (16,215) | ||||||
| Allowance for loan losses | (33,147) | ||||||
| Total consumer loans and other financing receivables and accrued interest receivable, net of allowance for loan losses | $792,479 | ||||||
| Gross charge-offs - nine months ended September 30, 2025 | $5,565 | 8,322 | 6,134 | 280 | 9 | 9 | 20,319 |
| Nine months ended September 30, 2025 | 2024 | 2023 | 2022 | 2021 | Prior years | Total | |
|---|---|---|---|---|---|---|---|
| Private education loans - Nelnet Bank (a): | |||||||
| Loans in-school/grace/deferment | $21,876 | 20,602 | 9,206 | 5,577 | 285 | 1,207 | 58,753 |
| Loans in forbearance | — | — | 146 | 483 | 152 | 695 | 1,476 |
| Loans in repayment status: | |||||||
| Loans current | 33,129 | 15,707 | 30,680 | 143,901 | 84,322 | 152,403 | 460,142 |
| Loans delinquent 30-59 days | 98 | 67 | 299 | 460 | 501 | 2,101 | 3,526 |
| Loans delinquent 60-89 days | 3 | 196 | 300 | 201 | 617 | 1,086 | 2,403 |
| Loans delinquent 90 days or greater | 33 | 133 | 626 | 191 | 145 | 1,968 | 3,096 |
| Total loans in repayment | 33,263 | 16,103 | 31,905 | 144,753 | 85,585 | 157,558 | 469,167 |
| Total private education loans | $55,139 | 36,705 | 41,257 | 150,813 | 86,022 | 159,460 | 529,396 |
| Accrued interest receivable | 6,400 | ||||||
| Loan discount, net of unamortized premiums and deferred origination costs | (6,652) | ||||||
| Allowance for loan losses | (11,732) | ||||||
| Total private education loans and accrued interest receivable, net of allowance for loan losses | $517,412 | ||||||
| Gross charge-offs - nine months ended September 30, 2025 | $— | 376 | 782 | 628 | 372 | 3,145 | 5,303 |
| Consumer and other loans - Nelnet Bank (a): | |||||||
| Loans in deferment | $7,936 | 2,018 | — | — | — | — | 9,954 |
| Loans in repayment status: | |||||||
| Loans current | 111,040 | 108,582 | 11,778 | 373 | 11,085 | 11,862 | 254,720 |
| Loans delinquent 30-59 days | 10 | 499 | 114 | — | 61 | 10 | 694 |
| Loans delinquent 60-89 days | — | 472 | 79 | — | 108 | 60 | 719 |
| Loans delinquent 90 days or greater | — | 374 | — | — | — | 78 | 452 |
| Total loans in repayment | 111,050 | 109,927 | 11,971 | 373 | 11,254 | 12,010 | 256,585 |
| Total consumer and other loans | $118,986 | 111,945 | 11,971 | 373 | 11,254 | 12,010 | 266,539 |
| Accrued interest receivable | 1,563 | ||||||
| Loan premium, net of unaccreted discount | 3,822 | ||||||
| Allowance for loan losses | (11,308) | ||||||
| Total consumer and other loans and accrued interest receivable, net of allowance for loan losses | $260,616 | ||||||
| Gross charge-offs - nine months ended September 30, 2025 | $61 | 1,205 | 283 | — | 306 | 174 | 2,029 |
(a) For the periods presented for Nelnet Bank, the delinquency bucket periods conform with the delinquency bucket periods reflected in Nelnet Bank's Call Reports filed with the Federal Deposit Insurance Corporation.
- Bonds and Notes Payable
The following tables summarize the Company’s outstanding debt obligations by type of instrument:
| As of September 30, 2025 | |||
|---|---|---|---|
| Carryingamount | Interest raterange | Final maturity | |
| Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations: | |||
| Bonds and notes based on indices | $6,258,938 | 4.68% - 6.27% | 8/26/30 - 9/25/69 |
| Bonds and notes based on auction | 60,585 | 0.01% - 5.50% | 3/22/32 - 3/1/42 |
| Total FFELP variable-rate bonds and notes | 6,319,523 | ||
| Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations | 312,850 | 1.42% - 3.45% | 10/25/67 - 8/27/68 |
| FFELP loan warehouse facilities | 535,389 | 5.02% - 5.19% | 1/29/27 / 5/1/27 |
| Consumer loan warehouse and other facilities | 625,570 | 5.43% - 6.12% | 11/13/27 - 2/29/28 |
| Variable-rate bonds and notes issued in private education loan asset-backed securitizations | 39,924 | 5.65% / 6.61% | 6/25/49 / 11/25/53 |
| Fixed-rate bonds and notes issued in private education loan asset-backed securitizations | 30,952 | 7.15% | 11/25/53 |
| Unsecured line of credit | — | — | 9/22/26 |
| Participation agreements | 1,648 | 5.05% - 5.82% | 5/4/26 / 7/28/32 |
| Discount on bonds and notes payable and debt issuance costs | (43,325) | ||
| Total | $7,822,531 | ||
| As of December 31, 2024 | |||
|---|---|---|---|
| Carryingamount | Interest raterange | Final maturity | |
| Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations: | |||
| Bonds and notes based on indices | $6,923,824 | 4.89% - 6.45% | 8/26/30 - 9/25/69 |
| Bonds and notes based on auction | 36,395 | 5.71% - 5.72% | 3/22/32 - 8/25/37 |
| Total FFELP variable-rate bonds and notes | 6,960,219 | ||
| Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations | 346,359 | 1.42% - 3.45% | 10/25/67 - 8/27/68 |
| FFELP loan warehouse facilities | 853,165 | 4.41% - 4.69% | 1/31/26 / 4/1/26 |
| Consumer loan warehouse facilities | 90,000 | 4.46% / 4.57% | 8/1/26 / 11/13/27 |
| Variable-rate bonds and notes issued in private education loan asset-backed securitizations | 54,973 | 5.90% / 6.82% | 6/25/49 / 11/25/53 |
| Fixed-rate bonds and notes issued in private education loan asset-backed securitizations | 50,415 | 5.35% / 7.15% | 12/28/43 / 11/25/53 |
| Unsecured line of credit | — | — | 9/22/26 |
| Participation agreements | 3,320 | 5.27% - 5.82% | 5/4/25 / 1/30/33 |
| Discount on bonds and notes payable and debt issuance costs | (48,654) | ||
| Total | $8,309,797 | ||
Warehouse and Other Facilities
The Company funds a portion of its loan acquisitions through the use of warehouse and other secured facilities. Loan warehousing allows the Company to buy and manage loans prior to transferring them into more permanent financing arrangements. The following table summarizes the Company's warehouse and other facilities as of September 30, 2025:
| Type of loans | Maximum financing amount | Amount outstanding | Amount available | Expiration of liquidity provisions | Final maturity date | Advance rate | Advanced as equity support |
|---|---|---|---|---|---|---|---|
| FFELP (a) | $800,000 | 393,141 | 406,859 | 1/30/2026 | 1/29/2027 | note (b) | $29,556 |
| FFELP (c) | 375,000 | 142,248 | 232,752 | 5/1/2026 | 5/1/2027 | 92% | 12,197 |
| $1,175,000 | 535,389 | 639,611 | $41,753 | ||||
| Consumer loans and other financing receivables | $925,000 | 625,570 | 299,430 | 11/13/2026 - 7/31/2027 | 11/13/2027 - 2/29/2028 | 50% - 90% | $120,711 |
(a) On January 31, 2025, the Company extended the liquidity provisions and final maturity date on this facility to July 31, 2025 and July 31, 2026, respectively. On July 17, 2025, the Company increased the maximum financing amount from $600 million to $800 million and extended the liquidity provisions and final maturity date to January 30, 2026 and January 29, 2027, respectively.
(b) This facility has a static advance rate until the expiration date of the liquidity provisions. The maximum advance rates for this facility are 90% to 96%, and the minimum advance rates are 84% to 90%. In the event the liquidity provisions are not extended, the valuation agent has the right to perform a one-time mark to market on the underlying loans funded in this facility, subject to a floor. The loans would then be funded at this new advance rate until the final maturity date of the facility.
(c) On March 31, 2025, the Company extended the liquidity provisions and final maturity date on this facility to May 1, 2025 and May 1, 2026, respectively, and on April 10, 2025, extended the liquidity provisions and final maturity to May 1, 2026 and May 1, 2027, respectively.
Unsecured Line of Credit
The Company has a $495.0 million unsecured line of credit that has a maturity date of September 22, 2026. As of September 30, 2025, no amount was outstanding on the line of credit and $495.0 million was available for future use.
Debt Repurchases
The following table summarizes the Company's repurchases of its own debt. Gains/losses recorded by the Company from the repurchase of debt are included in "other, net" in "other income (expense)" on the Company's consolidated statements of income.
| Three months ended September 30, | Nine months ended September 30, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Purchase price | $(385,853) | (357) | (528,723) | (4,556) |
| Par value | 377,571 | 365 | 520,891 | 4,555 |
| Remaining unamortized cost of issuance | (22) | (1) | (33) | (1) |
| (Loss) gain, net | $(8,304) | 7 | (7,865) | (2) |
The Company has repurchased certain of its own asset-backed securities (bonds and notes payable) in the secondary market. For accounting purposes, these notes are eliminated in consolidation and are not included in the Company's consolidated financial statements. However, these securities remain legally outstanding at the trust level and the Company could sell these notes to third parties or redeem the notes at par as cash is generated by the trust estate. Upon a sale of these notes to third parties, the Company would obtain cash proceeds equal to the market value of the notes on the date of such sale. As of September 30, 2025, the Company holds $499.5 million (par value) of its own FFELP asset-backed securities.
- Derivative Financial Instruments
Non-Nelnet Bank Derivatives
The Company uses settled-to-market derivative financial instruments to manage interest rate risk. Derivative instruments used as part of the Company's interest rate risk management strategy are further described in note 5 of the notes to consolidated financial statements included in the 2024 Annual Report.
Basis Swaps
The following table summarizes the Company’s outstanding basis swaps as of September 30, 2025 and December 31, 2024 used to hedge its basis risk and repricing risk on a portion of its FFELP student loan assets. For these derivative instruments, the Company receives payments indexed to three-month SOFR and makes payments based on the one-month SOFR index (plus or minus a spread) as defined in the agreements (the "Basis Swaps").
| Maturity | Notional amount |
|---|---|
| 2026 | $1,150,000 |
| 2027 | 250,000 |
| $1,400,000 |
Interest Rate Swaps – Floor Income Hedges
The following table summarizes the outstanding derivative instruments used by the Company as of September 30, 2025 and December 31, 2024 to economically hedge loans earning fixed-rate floor income. For these derivative instruments, the Company receives payments based on SOFR, the majority of which reset quarterly.
| Maturity | Notional amount | Weighted average fixed rate paid by the Company |
|---|---|---|
| 2026 | $200,000 | 3.92% |
| 2028 | 50,000 | 3.56 |
| 2029 (a) | 50,000 | 3.17 |
| 2030 (b) | 100,000 | 3.63 |
| $400,000 | 3.71% |
(a) This $50 million notional amount derivative has a forward effective start date in January 2026.
(b) A $50 million notional amount derivative has a forward effective start date in November 2025.
Nelnet Bank Derivatives
Nelnet Bank uses non-centrally cleared derivative instruments to hedge exposure to variability in cash flows from variable-rate intercompany and third-party deposits to minimize volatility from future changes in interest rates. Nelnet Bank has designated all of its derivative instruments as cash flow hedges; however, the derivatives that hedge intercompany deposits are not eligible for hedge accounting in the consolidated financial statements.
Interest Rate Swaps - Intercompany Deposits
The following table summarizes the outstanding derivative instruments used by Nelnet Bank to hedge intercompany deposits. For these derivative instruments, the Company receives monthly or quarterly payments based on SOFR that reset daily.
| As of September 30, 2025 · As of December 31, 2024 | ||||
|---|---|---|---|---|
| Maturity | Notional amount | Weighted average fixed rate paid by the Company | Notional amount | Weighted average fixed rate paid by the Company |
| 2028 | $40,000 | 3.33% | $40,000 | 3.33% |
| 2029 | 25,000 | 3.37 | 25,000 | 3.37 |
| 2030 (a) | 50,000 | 3.06 | 50,000 | 3.06 |
| 2032 (b) | 25,000 | 4.03 | 25,000 | 4.03 |
| 2033 (c) | 25,000 | 3.90 | 25,000 | 3.90 |
| 2035 (d) | 30,000 | 3.79 | — | — |
| $195,000 | 3.50% | $165,000 | 3.44% | |
(a) These $25 million notional amount derivatives have forward effective start dates in April 2026 and May 2026, respectively.
(b) This $25 million notional amount derivative has a forward effective start date in February 2027.
(c) This $25 million notional amount derivative has a forward effective start date in November 2025.
(d) This $30 million notional amount derivative has a forward effective start date in May 2028.
Interest Rate Swaps - Third-Party Deposits
The following table summarizes the outstanding derivative instruments used by Nelnet Bank to hedge third-party deposits. For these derivative instruments, the Company receives monthly payments based on SOFR that reset monthly.
| Maturity | Notional amount | Weighted average fixed rate paid by the Company |
|---|---|---|
| 2030 | $25,000 | 3.57% |
| 2035 | 25,000 | 3.87 |
| $50,000 | 3.72% |
Nelnet Bank's derivatives used to hedge third-party deposits qualify for hedge accounting. As such, the changes in the fair value of these derivatives are recognized in other comprehensive income, net of tax, in the consolidated financial statements. Derivative settlements for cash flow hedges are included in "interest expense" on the consolidated statements of income, which were not material for the three and nine months ended September 30, 2025.
Consolidated Financial Statement Impact Related to Derivatives
Balance Sheets
Unlike the Company's Non-Nelnet Bank derivatives, Nelnet Bank's derivatives are not cleared post-execution at a regulated clearinghouse. As such, the Company records these derivative instruments in the consolidated balance sheets on a gross basis as either an asset (included in "other assets") or liability (included in "other liabilities") measured at fair value. The following table summarizes the fair value of the Company's Nelnet Bank derivatives as reflected in the consolidated balance sheets:
| Fair value of asset derivatives | Fair value of liability derivatives | |||
|---|---|---|---|---|
| As of September 30, 2025 | As of December 31, 2024 | As of September 30, 2025 | As of December 31, 2024 | |
| Interest rate swaps - intercompany deposits | $359 | 3,232 | 1,736 | 53 |
| Interest rate swaps - third-party deposits (cash flow hedges) | — | — | 755 | — |
| $359 | 3,232 | 2,491 | 53 | |
Statements of Income
The following table summarizes the components of "derivative market value adjustments and derivative settlements, net" included in the consolidated statements of income related to derivative instruments that do not qualify for hedge accounting:
| Three months ended September 30, | Nine months ended September 30, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Settlements: | ||||
| Basis swaps | $156 | 159 | 463 | 773 |
| Interest rate swaps - floor income hedges | 438 | 1,200 | 1,293 | 3,583 |
| Interest rate swaps - intercompany deposits | 167 | 281 | 494 | 690 |
| Total settlements - income | 761 | 1,640 | 2,250 | 5,046 |
| Change in fair value: | ||||
| Basis swaps | (147) | (125) | (429) | (710) |
| Interest rate swaps - floor income hedges | (314) | (9,393) | (5,993) | (2,165) |
| Interest rate swaps - intercompany deposits | (327) | (3,647) | (4,556) | (793) |
| Total change in fair value - expense | (788) | (13,165) | (10,978) | (3,668) |
| Derivative market value adjustments and derivative settlements, net - (expense) income | $(27) | (11,525) | (8,728) | 1,378 |
- Investments and Notes Receivable
“Total investments and notes receivable” consisted of the following:
| As of September 30, 2025 | As of December 31, 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | |
| Investments at fair value: | ||||||||
| Available-for-sale asset-backed securities | ||||||||
| Non-Nelnet Bank: | ||||||||
| FFELP loan | $92,175 | 3,716 | (664) | 95,227 | 188,386 | 5,804 | (896) | 193,294 |
| FFELP loan and other debt securities - restricted (a) | 122,667 | 3,518 | (200) | 125,985 | 98,914 | 3,151 | (78) | 101,987 |
| Private education loan (b) | 206,153 | 76 | (13,591) | 192,638 | 237,288 | — | (18,118) | 219,170 |
| Other debt securities | 77,564 | 2,387 | (8) | 79,943 | 32,552 | 2,500 | — | 35,052 |
| Total Non-Nelnet Bank | 498,559 | 9,697 | (14,463) | 493,793 | 557,140 | 11,455 | (19,092) | 549,503 |
| Nelnet Bank: | ||||||||
| FFELP loan | 221,313 | 5,931 | (595) | 226,649 | 231,543 | 6,060 | (270) | 237,333 |
| Private education loan | 14,293 | — | (2) | 14,291 | 1,596 | — | — | 1,596 |
| Other debt securities | 546,020 | 2,594 | (1,280) | 547,334 | 296,944 | 1,775 | (1,325) | 297,394 |
| Total Nelnet Bank | 781,626 | 8,525 | (1,877) | 788,274 | 530,083 | 7,835 | (1,595) | 536,323 |
| Total available-for-sale asset-backed securities | $1,280,185 | 18,222 | (16,340) | 1,282,067 | 1,087,223 | 19,290 | (20,687) | 1,085,826 |
| Equity securities and funds measured at net asset value | 109,821 | 74,494 | ||||||
| Total investments at fair value | 1,391,888 | 1,160,320 | ||||||
| Other investments and notes receivable (not measured at fair value): | ||||||||
| Nelnet Bank: Held-to-maturity asset-backed securities | ||||||||
| FFELP loan | 201,041 | 203,439 | ||||||
| Private education loan | — | 7,335 | ||||||
| Total Nelnet Bank held-to-maturity asset-backed securities | 201,041 | 210,774 | ||||||
| Venture capital, funds, and other: | ||||||||
| Measurement alternative (c) | 230,319 | 200,782 | ||||||
| Equity method | 175,373 | 170,258 | ||||||
| Total venture capital and funds | 405,692 | 371,040 | ||||||
| Real estate equity method | 201,873 | 131,745 | ||||||
| Investment in ALLO (d): | ||||||||
| Voting interest/equity method | — | — | ||||||
| Preferred membership interests and accrued and unpaid preferred return | — | 225,614 | ||||||
| Total investment in ALLO | — | 225,614 | ||||||
| Beneficial interest in loan securitizations (e): | ||||||||
| Consumer loans, net of allowance for credit losses of $43,153 and $38,590 as of September 30, 2025 and December 31, 2024, respectively | 140,742 | 142,764 | ||||||
| Private education loans, net of allowance for credit losses of $4,970 and $901 as of September 30, 2025 and December 31, 2024, respectively | 42,770 | 52,824 | ||||||
| Federally insured student loans | 18,288 | 18,221 | ||||||
| Total beneficial interest in loan securitizations, net of allowance | 201,800 | 213,809 | ||||||
| Solar (f) | (210,336) | (155,048) | ||||||
| Notes receivable | 33,376 | 32,258 | ||||||
| Tax liens, affordable housing, and other | 14,191 | 10,184 | ||||||
| Total other investments and notes receivable (not measured at fair value) | 847,637 | 1,040,376 | ||||||
| Total investments and notes receivable | $2,239,525 | $2,200,696 | ||||||
(a) Represent investments held in third-party trusts as collateral for the Company’s reinsurance business.
(b) As sponsor of certain private education loan securitizations, the Company is required to provide a certain level of risk retention, and has purchased bonds issued in such securitizations to satisfy this requirement. The bonds purchased to satisfy the risk retention requirement are included in the above table. The Company must retain these investment securities until the latest of (i) the date the aggregate outstanding principal balance of the loans in the securitization is 33% or less of the initial loan balance, and (ii) the date the aggregate outstanding principal balance of the bonds is 33% or less of the aggregate initial outstanding principal balance of the bonds, at which time the Company can sell its investment securities (bonds) to a third party.
(c) The Company has an 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 $10.1 million and recognized a gain of $7.8 million. This gain is included in "other, net" in "other income (expense)" on the consolidated statements of income. 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 recognized a gain of $22.4 million 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. This gain is included in "other, net" in "other income (expense)" on the consolidated statements of income. After the completion of this transaction, the Company's carrying amount of its remaining investment in the Investee is $31.7 million.
The Company has an investment in Agile Sports Technologies, Inc. (doing business as “Hudl”). During the first quarter of 2025, the Company acquired additional ownership interests in Hudl for $3.8 million from existing Hudl investors. This transaction was not considered an observable market transaction (not orderly) because it was not subject to customary marketing activities. Accordingly, the Company did not adjust its carrying value of its Hudl investment to the transaction value. As of September 30, 2025, the carrying amount of the Company's investment in Hudl was $172.5 million. David S. Graff, who has served on the Company's Board of Directors since May 2014, is CEO, co-founder, and a director of Hudl.
(d) On June 4, 2025, the Company redeemed a portion of its voting membership interests in ALLO and all its outstanding preferred membership interests, including the preferred return accrued on such membership interests through June 3, 2025. See note 2 for additional information. The Company's voting membership interest in ALLO is accounted for using the HLBV method of accounting. Using the HLBV method of accounting, the Company recognized $10.7 million of losses during the first quarter of 2024, reducing the carrying value of the voting membership interest investment to $0. Absent additional equity contributions with respect to ALLO's voting membership interest, the Company will not recognize additional losses for its voting membership interest in ALLO. Prior to redeeming all its outstanding preferred membership interests in June 2025, the Company recognized $4.8 million on its ALLO preferred membership interests during the three months ended September 30, 2024 and $14.4 million and $11.4 million during the nine months ended September 30, 2025 and 2024, respectively. The income statement activity from the Company's investment in ALLO is included in "other, net" in "other income (expense)" on the consolidated statements of income.
(e) The Company has partial ownership in certain consumer, private education, and federally insured student loan securitizations, which are accounted for as held-to-maturity beneficial interest investments. As of the latest remittance reports filed by the various trusts prior to or as of September 30, 2025, the Company's ownership correlates to approximately $1.07 billion, $400 million, and $280 million of consumer, private education, and federally insured student loans, respectively, included in these securitizations. The Company has recorded an allowance for credit losses (and related provision expense) on these investments. See note 9 for additional information.
(f) The Company invests in solar tax equity investments through investment partnerships. Due to the management and control of each of these investment partnerships, such partnerships that invest in tax equity investments are consolidated on the Company’s consolidated financial statements, with the third-party co-investor’s portion being presented as noncontrolling interests. As of September 30, 2025, the Company has invested a total of $306.1 million and its third-party investors have invested $307.5 million in tax equity investments that remain outstanding in renewable energy solar partnerships that support the development and operations of solar projects. The carrying value of the Company’s investment in a solar project is reduced by tax credits earned when the solar project is placed in service. As of September 30, 2025, the Company and its third-party co-investors have earned $337.2 million and $295.7 million, respectively, of tax credits on those projects that remain outstanding. The solar investment negative carrying value on the consolidated balance sheet of $210.3 million as of September 30, 2025 represents the sum of total tax credits earned on solar projects placed in service through September 30, 2025 and the calculated HLBV cumulative net losses being larger than the total investment contributions made by the Company and its syndication partners on such projects. The solar investment negative carrying value as of September 30, 2025, excluding the portion owned by syndication partners that is reflected as "noncontrolling interests" on the consolidated balance sheet, was $109.8 million.
The Company accounts for its solar investments using the HLBV method of accounting. For the majority of the Company’s solar investments, the HLBV method of accounting results in accelerated losses in the initial years of investment and gains recognized at the end of the contractual agreement (typically five years). The following table presents (i) the Company's recognized HLBV losses and gains recognized from sales of certain investments, which include losses and gains attributable to third-party noncontrolling interest investors (syndication partners), included in “other, net” in "other income (expense)" on the consolidated statements of income, (ii) solar net losses and gains attributed to noncontrolling interest investors included in “net loss attributable to noncontrolling interests” on the consolidated statements of income, and (iii) the recognized pre-tax net loss attributable to the Company:
| Three months ended September 30, | Nine months ended September 30, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Losses from HLBV accounting (gross) | $(10,884) | (11,238) | (19,963) | (15,276) |
| Gains from sales (gross) | — | — | 8,033 | 4,208 |
| Losses from solar investments, net | (10,884) | (11,238) | (11,930) | (11,068) |
| Less: losses attributable to noncontrolling members, net | (5,659) | (3,936) | (9,863) | (5,568) |
| Net loss attributable to the Company | $(5,225) | (7,302) | (2,067) | (5,500) |
The following table presents, by remaining contractual maturity, the amortized cost and fair value of debt securities as of September 30, 2025:
| As of September 30, 2025 | |||||
|---|---|---|---|---|---|
| 1 year or less | After 1 year through 5 years | After 5 years through 10 years | After 10 years | Total | |
| Available-for-sale asset-backed securities | |||||
| Non-Nelnet Bank: | |||||
| FFELP loan | $— | 205 | 2,525 | 89,445 | 92,175 |
| FFELP loan and other debt securities - restricted | — | 5,500 | 17,599 | 99,568 | 122,667 |
| Private education loan | — | — | — | 206,153 | 206,153 |
| Other debt securities | — | 7,790 | 34,128 | 35,646 | 77,564 |
| Total Non-Nelnet Bank | — | 13,495 | 54,252 | 430,812 | 498,559 |
| Fair value | — | 13,609 | 54,416 | 425,768 | 493,793 |
| Nelnet Bank: | |||||
| FFELP loan | 49,259 | 13,009 | 21,618 | 137,427 | 221,313 |
| Private education loan | — | — | 13,562 | 731 | 14,293 |
| Other debt securities | — | 33,243 | 73,023 | 439,754 | 546,020 |
| Total Nelnet Bank | 49,259 | 46,252 | 108,203 | 577,912 | 781,626 |
| Fair value | 49,005 | 46,359 | 108,682 | 584,228 | 788,274 |
| Total available-for-sale asset-backed securities at amortized cost | $49,259 | 59,747 | 162,455 | 1,008,724 | 1,280,185 |
| Total available-for-sale asset-backed securities at fair value | $49,005 | 59,968 | 163,098 | 1,009,996 | 1,282,067 |
| Held-to-maturity asset-backed securities | |||||
| Nelnet Bank: | |||||
| FFELP loan - amortized cost | $— | 2,546 | 13,132 | 185,363 | 201,041 |
| FFELP loan - fair value | $— | 2,582 | 13,024 | 190,386 | 205,992 |
| Beneficial interest in loan securitizations (a): | |||||
| Amortized cost | $— | — | — | — | 201,800 |
| Fair value | $— | — | — | — | 213,278 |
(a) The Company's beneficial interest in loan securitizations is not due at a single maturity date.
The following table summarizes the unrealized positions for held-to-maturity asset-backed securities investments and the beneficial interest in loan securitizations as of September 30, 2025:
| Carrying value | Gross unrealized gains | Gross unrealized losses | Fair value | |
|---|---|---|---|---|
| Asset-backed securities | $201,041 | 5,527 | (576) | 205,992 |
| Beneficial interest in loan securitizations | 201,800 | 13,170 | (1,692) | 213,278 |
The following table presents securities classified as available-for-sale that have gross unrealized losses as of September 30, 2025 and the fair value of such securities as of September 30, 2025. These securities are segregated between investments that had been in a continuous unrealized loss position for less than twelve months and twelve months or more, based on the point in time that the fair value declined below the amortized cost basis. All securities in the table below have been evaluated to determine if a credit loss exists. As part of that assessment, the Company concluded it currently has the intent and ability to retain these investments, andnone of the unrealized losses were due to credit losses.
| As of September 30, 2025 | ||||||
|---|---|---|---|---|---|---|
| Unrealized loss position less than 12 months | Unrealized loss position 12 months or more | Total | ||||
| Unrealized loss | Fair value | Unrealized loss | Fair value | Unrealized loss | Fair value | |
| Available-for-sale asset-backed securities | ||||||
| Non-Nelnet Bank: | ||||||
| FFELP loan | $(179) | 8,352 | (485) | 22,383 | (664) | 30,735 |
| FFELP loan and other debt securities - restricted | (110) | 13,072 | (90) | 4,991 | (200) | 18,063 |
| Private education loan | — | — | (13,591) | 152,779 | (13,591) | 152,779 |
| Other debt securities | (8) | 8,038 | — | — | (8) | 8,038 |
| Total Non-Nelnet Bank | (297) | 29,462 | (14,166) | 180,153 | (14,463) | 209,615 |
| Nelnet Bank: | ||||||
| FFELP loan | (442) | 60,836 | (153) | 11,698 | (595) | 72,534 |
| Private education loan | (2) | 13,560 | — | — | (2) | 13,560 |
| Other debt securities | (412) | 41,640 | (868) | 6,320 | (1,280) | 47,960 |
| Total Nelnet Bank | (856) | 116,036 | (1,021) | 18,018 | (1,877) | 134,054 |
| Total available-for-sale asset-backed securities | $(1,153) | 145,498 | (15,187) | 198,171 | (16,340) | 343,669 |
The following table summarizes the gross proceeds received and gross realized gains and losses related to sales of available-for-sale asset-backed securities:
| Three months ended · Nine months ended | ||||
|---|---|---|---|---|
| September 30, | September 30, | |||
| 2025 | 2024 | 2025 | 2024 | |
| Gross proceeds from sales | $96,345 | 105,628 | 205,954 | 372,176 |
| Gross realized gains | $1,145 | 1,791 | 2,701 | 4,362 |
| Gross realized losses | (291) | (70) | (770) | (1,036) |
| Net gains | $854 | 1,721 | 1,931 | 3,326 |
- Intangible Assets
Intangible assets consisted of the following:
| Weighted average remaining useful life as ofSeptember 30, 2025 (months) | |||
|---|---|---|---|
| As of · As of | |||
| September 30, 2025 · December 31, 2024 | |||
| Amortizable intangible assets, net: | |||
| Customer relationships (net of accumulated amortization of $57,142 and $54,644, respectively) | 89 | $30,702 | 34,960 |
| Trade name (net of accumulated amortization of $263 and $205, respectively) | 79 | 507 | 565 |
| Computer software (net of accumulated amortization of $1,175 and $917, respectively) | 19 | 545 | 803 |
| Total amortizable intangible assets, net | 88 | $31,754 | 36,328 |
The Company recorded amortization expense on its intangible assets of $1.5 million and $2.1 million for the three months ended September 30, 2025 and 2024, respectively, and $4.6 million and $6.4 million during the nine months ended September 30, 2025 and 2024, respectively. The Company will continue to amortize intangible assets over their remaining useful lives. As of September 30, 2025, the Company estimates it will record amortization expense as follows:
| 2025 (October 1 - December 31) | $1,525 |
| 2026 | 6,012 |
| 2027 | 5,714 |
| 2028 | 5,354 |
| 2029 | 4,008 |
| 2030 and thereafter | 9,141 |
| $31,754 |
- Goodwill
The following table presents the carrying amount of goodwill as of September 30, 2025 and December 31, 2024 by reportable operating segment:
| Nelnet Financial Services | |||||||
|---|---|---|---|---|---|---|---|
| Loan Servicing and Systems | Education Technology Services and Payments | AssetGeneration andManagement | Nelnet Bank | NFS Other Operating Segments | Corporate and Other Activities | Total | |
| Total goodwill | $23,639 | 92,507 | 41,883 | — | — | — | 158,029 |
- Impairment Expense and Provision for Beneficial Interests
The following table presents the impairment charges and provision for beneficial interests, by asset and reportable operating segment, recognized by the Company. These expense items are included in “impairment expense and provision for beneficial interests” in the consolidated statements of income.
| Nelnet Financial Services | |||||||
|---|---|---|---|---|---|---|---|
| Loan Servicing and Systems | Education Technology Services and Payments | AssetGeneration andManagement | Nelnet Bank | NFS Other Operating Segments | Corporate and Other Activities | Total | |
| Three months ended September 30, 2025 | |||||||
| Investments - solar tax equity (a) | $— | — | — | — | — | 5,761 | 5,761 |
| Investments - beneficial interest in loan securitizations (b) | — | — | 2,145 | — | — | — | 2,145 |
| Property and equipment - internally developed software | — | 1,145 | — | — | — | — | 1,145 |
| Leases, buildings, and associated improvements (c) | — | — | — | — | — | 94 | 94 |
| $— | 1,145 | 2,145 | — | — | 5,855 | 9,145 | |
| Three months ended September 30, 2024 | |||||||
| Investments - beneficial interest in loan securitizations (b) | $— | — | 28,952 | — | — | — | 28,952 |
| Investments - venture capital | — | — | — | — | — | 100 | 100 |
| $— | — | 28,952 | — | — | 100 | 29,052 | |
| Nine months ended September 30, 2025 | |||||||
| Investments - solar tax equity (a) | $— | — | — | — | — | 5,761 | 5,761 |
| Investments - beneficial interest in loan securitizations (b) | — | — | 8,632 | — | — | — | 8,632 |
| Property and equipment - internally developed software | — | 1,145 | — | — | — | — | 1,145 |
| Leases, buildings, and associated improvements (c) | — | — | — | — | 81 | 3,363 | 3,444 |
| Property and equipment - solar facilities (d) | — | — | — | — | — | 1,902 | 1,902 |
| Investments - venture capital | — | — | — | — | — | 140 | 140 |
| $— | 1,145 | 8,632 | — | 81 | 11,166 | 21,024 | |
| Nine months ended September 30, 2024 | |||||||
| Investments - beneficial interest in loan securitizations (b) | — | — | 34,863 | — | — | — | 34,863 |
| Property and equipment / other assets - solar facilities and inventory (e) | — | — | — | — | — | 1,865 | 1,865 |
| Investments - venture capital | — | — | — | — | — | 137 | 137 |
| $— | — | 34,863 | — | — | 2,002 | 36,865 | |
(a) The Company recorded a non-cash impairment related to its ownership in a solar development project.
(b) The Company recorded a non-cash allowance for credit losses (and related provision expense) related to the Company's beneficial interest in certain loan securitizations due primarily to an increase in cumulative loss expectations.
(c) The Company recorded non-cash impairment charges related to operating lease assets and associated leasehold improvements as a result of the Company consolidating office space.
(d) In the second quarter of 2025, the Company received notification of a customer contract cancellation. As a result, the Company recorded an impairment charge related to construction in progress for a solar facility.
(e) In April 2024, the Company announced a change in its solar engineering, procurement, and construction (EPC) operations to focus exclusively on the commercial solar market and discontinued its residential solar operations. As a result, the Company recognized non-cash impairment charges on certain solar facilities and inventory related to the residential solar operations.
- Bank Deposits
The following table summarizes Nelnet Bank’s interest-bearing deposits, excluding intercompany deposits:
| As of | As of | |
|---|---|---|
| September 30, 2025 | December 31, 2024 | |
| Retail and other savings | $1,180,088 | 916,475 |
| Brokered CDs, net of brokered deposit fees | 275,844 | 247,872 |
| Retail and other CDs, net of issuance fees | 20,833 | 21,784 |
| Total interest-bearing deposits | $1,476,765 | 1,186,131 |
As of September 30, 2025 and December 31, 2024, Nelnet Bank had intercompany deposits from Nelnet, Inc. and its subsidiaries totaling $256.3 million and $68.5 million, respectively, including a $40.0 million pledged deposit from Nelnet, Inc. as required under a Capital and Liquidity Maintenance Agreement with the FDIC. All intercompany deposits held at Nelnet Bank are eliminated for consolidated financial reporting purposes.
The following table presents the remaining maturities of certificates of deposit as of September 30, 2025:
| One year or less | $149,058 |
|---|---|
| After one year to two years | 74,996 |
| After two years to three years | 349 |
| After three years to four years | 51,215 |
| After four years to five years | — |
| After five years | 21,059 |
| Total | $296,677 |
Retail and other savings deposits included deposits from Educational 529 College Savings and Health Savings plans, retirement savings plans, Short Term Federal Investment Trust (STFIT), and FDIC sweep deposits. These deposits are large interest-bearing omnibus accounts structured to allow FDIC insurance to flow through to underlying individual depositors. Deposits that exceeded the FDIC insurance limits as of September 30, 2025 were $44.0 million, the majority of which were intercompany deposits from Nelnet, Inc. and its subsidiaries. Union Bank, a related party, is the program manager for certain of the Educational 529 College Savings plans and trustee for the STFIT.
- Earnings per Common Share
The following table presents the components used to calculate basic and diluted earnings per share. The Company applies the two-class method in computing both basic and diluted earnings per share, which requires the calculation of separate earnings per share amounts for common stock and unvested share-based awards. Unvested share-based awards that contain nonforfeitable rights to dividends are considered securities which participate in undistributed earnings with common stock.
| Common shareholders | Unvested restricted stock shareholders | Total | Common shareholders | Unvested restricted stock shareholders | Total | |
|---|---|---|---|---|---|---|
| Three months ended September 30, | ||||||
| 2025 · 2024 | ||||||
| Numerator: | ||||||
| Net income attributable to Nelnet, Inc. | $104,750 | 1,934 | 106,684 | 2,343 | 45 | 2,388 |
| Denominator: | ||||||
| Weighted-average common shares outstanding - basic and diluted | 35,657,976 | 658,339 | 36,316,315 | 35,743,895 | 686,590 | 36,430,485 |
| Earnings per share - basic and diluted | $2.94 | 2.94 | 2.94 | 0.07 | 0.07 | 0.07 |
| Nine months ended September 30, | ||||||
| 2025 · 2024 | ||||||
| Numerator: | ||||||
| Net income attributable to Nelnet, Inc. | $363,914 | 6,789 | 370,703 | 118,549 | 2,337 | 120,886 |
| Denominator: | ||||||
| Weighted-average common shares outstanding - basic and diluted | 35,759,099 | 667,089 | 36,426,188 | 35,993,634 | 709,680 | 36,703,314 |
| Earnings per share - basic and diluted | $10.18 | 10.18 | 10.18 | 3.29 | 3.29 | 3.29 |
- Segment Reporting
See note 16 of the notes to consolidated financial statements included in the 2024 Annual Report for a description of the Company's operating segments. The following tables present the results of each of the Company's reportable operating segments reconciled to the consolidated financial statements:
| Three months ended September 30, 2025 | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Reportable Segments · Reconciling Items | ||||||||||||||||
| Loan Servicing and Systems (LSS) · Education Technology Services and Payments (ETSP) · AssetGeneration andManagement · Nelnet Bank · Total Reportable Segments · NFS Other Operating Segments · Corporate and Other Activities · Eliminations/ Reclassifications · Total | ||||||||||||||||
| Interest income: | ||||||||||||||||
| Loan interest | $— | — | 145,984 | 16,733 | 162,717 | — | — | — | 162,717 | |||||||
| Investment interest | 531 | 8,564 | 12,051 | 14,849 | 35,995 | 14,985 | 3,134 | (10,872) | 43,241 | |||||||
| Total interest income | 531 | 8,564 | 158,035 | 31,582 | 198,712 | 14,985 | 3,134 | (10,872) | 205,958 | |||||||
| Interest expense | — | — | 113,350 | 16,179 | 129,529 | 1,359 | 692 | (10,872) | 120,708 | |||||||
| Net interest income | 531 | 8,564 | 44,685 | 15,403 | 69,183 | 13,626 | 2,442 | — | 85,250 | |||||||
| Less (negative provision) provision for loan losses | — | — | (7,374) | 3,811 | (3,563) | — | — | — | (3,563) | |||||||
| Net interest income after provision for loan losses | 531 | 8,564 | 52,059 | 11,592 | 72,746 | 13,626 | 2,442 | — | 88,813 | |||||||
| Other income (expense): | ||||||||||||||||
| LSS revenue | 151,052 | — | — | — | 151,052 | — | — | — | 151,052 | |||||||
| ETSP revenue | — | 129,321 | — | — | 129,321 | — | — | — | 129,321 | |||||||
| Intersegment revenue | 5,313 | 70 | — | — | 5,383 | — | — | (5,383) | — | |||||||
| Reinsurance premiums earned | — | — | — | — | — | 23,165 | — | — | 23,165 | |||||||
| Solar construction revenue | — | — | — | — | — | — | 5,738 | — | 5,738 | |||||||
| Other, net | 105 | — | 195 | 1,308 | 1,608 | 5,674 | 28,336 | 112 | 35,730 | |||||||
| Loss on sale of loans, net | — | — | (2,472) | — | (2,472) | — | — | — | (2,472) | |||||||
| Gain on partial redemption of ALLO investment | — | — | — | — | — | — | — | — | — | |||||||
| Derivative settlements, net | — | — | 594 | 167 | 761 | — | — | — | 761 | |||||||
| Derivative market value adjustments, net | — | — | (461) | (327) | (788) | — | — | — | (788) | |||||||
| Total other income (expense), net | 156,470 | 129,391 | (2,144) | 1,148 | 284,865 | 28,839 | 34,074 | (5,271) | 342,507 | |||||||
| Cost of services and expenses: | ||||||||||||||||
| Total cost of services | 2,021 | 50,363 | — | — | 52,384 | — | 7,607 | — | 59,991 | |||||||
| Salaries and benefits | 70,126 | 43,029 | 1,971 | 2,817 | 117,943 | 668 | 26,193 | (26) | 144,778 | |||||||
| Depreciation and amortization | 1,725 | 2,504 | — | 355 | 4,584 | — | 2,743 | — | 7,327 | |||||||
| Reinsurance losses and underwriting expenses | — | — | — | — | — | 19,962 | — | — | 19,962 | |||||||
| Postage expense | 8,735 | 8,735 | (8,735) | — | ||||||||||||
| Servicing fees | 6,687 | 838 | 7,525 | (7,525) | — | |||||||||||
| Other expenses (a) | 10,862 | 9,537 | 1,243 | 1,916 | 23,558 | 1,103 | 17,901 | 11,107 | 53,669 | |||||||
| Intersegment expenses, net | 17,262 | 6,420 | 1,248 | 726 | 25,656 | 289 | (25,741) | (204) | — | |||||||
| Total operating expenses | 108,710 | 61,490 | 11,149 | 6,652 | 188,001 | 22,022 | 21,096 | (5,383) | 225,736 | |||||||
| Impairment expense and provision for beneficial interests | — | 1,145 | 2,145 | — | 3,290 | — | 5,855 | — | 9,145 | |||||||
| Total expenses | 110,731 | 112,998 | 13,294 | 6,652 | 243,675 | 22,022 | 34,558 | (5,383) | 294,872 | |||||||
| Income (loss) before income taxes | 46,270 | 24,957 | 36,621 | 6,088 | 113,936 | 20,443 | 1,958 | 112 | 136,448 | |||||||
| Income tax (expense) benefit | (11,105) | (5,990) | (8,783) | (1,483) | (27,361) | (4,866) | (3,547) | — | (35,773) | |||||||
| Net income (loss) | 35,165 | 18,967 | 27,838 | 4,605 | 86,575 | 15,577 | (1,589) | 112 | 100,675 | |||||||
| Net (income) loss attributable to noncontrolling interests | — | — | (27) | — | (27) | (169) | 6,317 | (112) | 6,009 | |||||||
| Net income (loss) attributable to Nelnet, Inc. | $35,165 | 18,967 | 27,811 | 4,605 | 86,548 | 15,408 | 4,728 | — | 106,684 | |||||||
| Total assets as of September 30, 2025 | $200,205 | 525,704 | 10,042,521 | 2,003,322 | 12,771,752 | 1,330,228 | 671,263 | (896,561) | 13,876,682 | |||||||
Nelnet Bank - marketing, consulting and professional fees, collection costs, software, FDIC insurance, and management fee expense.
| Three months ended September 30, 2024 | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Reportable Segments · Reconciling Items | ||||||||||||||||
| Loan Servicing and Systems (LSS) · Education Technology Services and Payments (ETSP) · AssetGeneration andManagement · Nelnet Bank · Total Reportable Segments · NFS Other Operating Segments · Corporate and Other Activities · Eliminations/ Reclassifications · Total | ||||||||||||||||
| Interest income: | ||||||||||||||||
| Loan interest | $— | — | 180,571 | 9,639 | 190,210 | — | — | — | 190,211 | |||||||
| Investment interest | 894 | 9,734 | 18,970 | 12,522 | 42,120 | 12,415 | 3,105 | (7,368) | 50,272 | |||||||
| Total interest income | 894 | 9,734 | 199,541 | 22,161 | 232,330 | 12,415 | 3,105 | (7,368) | 240,483 | |||||||
| Interest expense | — | — | 161,142 | 11,606 | 172,748 | 2,245 | 704 | (7,368) | 168,328 | |||||||
| Net interest income | 894 | 9,734 | 38,399 | 10,555 | 59,582 | 10,170 | 2,401 | — | 72,155 | |||||||
| Less (negative provision) provision for loan losses | — | — | 11,968 | 6,143 | 18,111 | — | — | — | 18,111 | |||||||
| Net interest income after provision for loan losses | 894 | 9,734 | 26,431 | 4,412 | 41,471 | 10,170 | 2,401 | — | 54,044 | |||||||
| Other income (expense): | ||||||||||||||||
| LSS revenue | 108,175 | — | — | — | 108,175 | — | — | — | 108,175 | |||||||
| ETSP revenue | — | 118,179 | — | — | 118,179 | — | — | — | 118,179 | |||||||
| Intersegment revenue | 5,428 | 60 | — | — | 5,488 | — | — | (5,488) | — | |||||||
| Reinsurance premiums earned | — | — | — | — | — | 16,619 | — | — | 16,619 | |||||||
| Solar construction revenue | — | — | — | — | — | — | 19,321 | — | 19,321 | |||||||
| Other, net | 690 | — | 4,918 | 841 | 6,449 | 5,751 | 3,506 | — | 15,706 | |||||||
| Loss on sale of loans, net | — | — | (107) | — | (107) | — | — | — | (107) | |||||||
| Gain on partial redemption of ALLO investment | — | — | — | — | — | — | — | — | — | |||||||
| Derivative settlements, net | — | — | 1,359 | 281 | 1,640 | — | — | — | 1,640 | |||||||
| Derivative market value adjustments, net | — | — | (9,518) | (3,647) | (13,165) | — | — | — | (13,165) | |||||||
| Total other income (expense), net | 114,293 | 118,239 | (3,348) | (2,525) | 226,659 | 22,370 | 22,827 | (5,488) | 266,368 | |||||||
| Cost of services and expenses: | ||||||||||||||||
| Total cost of services | 196 | 45,273 | — | — | 45,469 | — | 26,815 | — | 72,284 | |||||||
| Salaries and benefits | 76,820 | 41,053 | 1,220 | 2,973 | 122,066 | 398 | 23,852 | (124) | 146,192 | |||||||
| Depreciation and amortization | 4,854 | 2,616 | — | 343 | 7,813 | — | 5,848 | — | 13,661 | |||||||
| Reinsurance losses and underwriting expenses | — | — | — | — | — | 16,761 | — | — | 16,761 | |||||||
| Postage expense | 8,467 | 8,467 | (8,467) | — | ||||||||||||
| Servicing fees | 7,011 | 285 | 7,296 | (7,296) | — | |||||||||||
| Other expenses (a) | 11,000 | 7,614 | 970 | 2,463 | 22,047 | 1,143 | 11,116 | 10,379 | 44,685 | |||||||
| Intersegment expenses, net | 18,399 | 4,604 | 1,276 | 581 | 24,860 | 200 | (25,080) | 20 | — | |||||||
| Total operating expenses | 119,540 | 55,887 | 10,477 | 6,645 | 192,549 | 18,502 | 15,736 | (5,488) | 221,299 | |||||||
| Impairment expense and provision for beneficial interests | — | — | 28,952 | — | 28,952 | — | 100 | — | 29,052 | |||||||
| Total expenses | 119,736 | 101,160 | 39,429 | 6,645 | 266,970 | 18,502 | 42,651 | (5,488) | 322,635 | |||||||
| Income (loss) before income taxes | (4,549) | 26,813 | (16,346) | (4,758) | 1,160 | 14,038 | (17,423) | — | (2,223) | |||||||
| Income tax (expense) benefit | 1,092 | (6,450) | 3,923 | 1,143 | (292) | (3,341) | 3,915 | — | 282 | |||||||
| Net income (loss) | (3,457) | 20,363 | (12,423) | (3,615) | 868 | 10,697 | (13,508) | — | (1,941) | |||||||
| Net (income) loss attributable to noncontrolling interests | — | 54 | — | — | 54 | (117) | 4,392 | — | 4,329 | |||||||
| Net income (loss) attributable to Nelnet, Inc. | $(3,457) | 20,417 | (12,423) | (3,615) | 922 | 10,580 | (9,116) | — | 2,388 | |||||||
| Total assets as of September 30, 2024 | $202,366 | 556,897 | 10,707,442 | 1,328,808 | 12,795,513 | 1,020,732 | 763,310 | (495,427) | 14,084,128 | |||||||
Nelnet Bank - marketing, consulting and professional fees, software, FDIC insurance, and management fee expense.
| Nine months ended September 30, 2025 | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Reportable Segments · Reconciling Items | ||||||||||||||||
| Loan Servicing and Systems (LSS) · Education Technology Services and Payments (ETSP) · AssetGeneration andManagement · Nelnet Bank · Total Reportable Segments · NFS Other Operating Segments · Corporate and Other Activities · Eliminations/ Reclassifications · Total | ||||||||||||||||
| Interest income: | ||||||||||||||||
| Loan interest | $— | — | 457,752 | 43,508 | 501,260 | — | — | — | 501,260 | |||||||
| Investment interest | 1,875 | 20,921 | 37,462 | 41,278 | 101,536 | 32,676 | 8,107 | (17,504) | 124,815 | |||||||
| Total interest income | 1,875 | 20,921 | 495,214 | 84,786 | 602,796 | 32,676 | 8,107 | (17,504) | 626,075 | |||||||
| Interest expense | — | — | 347,719 | 42,928 | 390,647 | 3,558 | 1,976 | (17,504) | 378,677 | |||||||
| Net interest income | 1,875 | 20,921 | 147,495 | 41,858 | 212,149 | 29,118 | 6,131 | — | 247,398 | |||||||
| Less (negative provision) provision for loan losses | — | — | 16,770 | 12,934 | 29,704 | — | — | — | 29,704 | |||||||
| Net interest income after provision for loan losses | 1,875 | 20,921 | 130,725 | 28,924 | 182,445 | 29,118 | 6,131 | — | 217,694 | |||||||
| Other income (expense): | ||||||||||||||||
| LSS revenue | 392,517 | — | — | — | 392,517 | — | — | — | 392,517 | |||||||
| ETSP revenue | — | 394,836 | — | — | 394,836 | — | — | — | 394,836 | |||||||
| Intersegment revenue | 16,600 | 198 | — | — | 16,798 | — | — | (16,798) | — | |||||||
| Reinsurance premiums earned | — | — | — | — | — | 73,964 | — | — | 73,964 | |||||||
| Solar construction revenue | — | — | — | — | — | — | 10,992 | — | 10,992 | |||||||
| Other, net | 331 | — | 11,697 | 1,842 | 13,870 | 12,050 | 56,176 | 304 | 82,401 | |||||||
| Loss on sale of loans, net | — | — | (1,562) | — | (1,562) | — | — | — | (1,562) | |||||||
| Gain on partial redemption of ALLO investment | — | — | — | — | — | — | 175,044 | — | 175,044 | |||||||
| Derivative settlements, net | — | — | 1,756 | 494 | 2,250 | — | — | — | 2,250 | |||||||
| Derivative market value adjustments, net | — | — | (6,422) | (4,556) | (10,978) | — | — | — | (10,978) | |||||||
| Total other income (expense), net | 409,448 | 395,034 | 5,469 | (2,220) | 807,731 | 86,014 | 242,212 | (16,494) | 1,119,464 | |||||||
| Cost of services and expenses: | ||||||||||||||||
| Total cost of services | 5,500 | 138,254 | — | — | 143,754 | — | 29,485 | — | 173,239 | |||||||
| Salaries and benefits | 205,249 | 126,368 | 4,661 | 8,424 | 344,702 | 1,685 | 71,472 | (160) | 417,700 | |||||||
| Depreciation and amortization | 6,199 | 7,439 | — | 1,046 | 14,684 | — | 9,522 | — | 24,206 | |||||||
| Reinsurance losses and underwriting expenses | — | — | — | — | — | 67,836 | — | — | 67,836 | |||||||
| Postage expense | 25,861 | 25,861 | (25,861) | — | ||||||||||||
| Servicing fees | 20,700 | 2,329 | 23,029 | (23,029) | — | |||||||||||
| Other expenses (a) | 32,793 | 28,489 | 4,595 | 5,243 | 71,120 | 4,080 | 45,183 | 32,817 | 153,200 | |||||||
| Intersegment expenses, net | 50,980 | 18,297 | 3,758 | 2,089 | 75,124 | 854 | (75,413) | (565) | — | |||||||
| Total operating expenses | 321,082 | 180,593 | 33,714 | 19,131 | 554,520 | 74,455 | 50,764 | (16,798) | 662,942 | |||||||
| Impairment expense and provision for beneficial interests | — | 1,145 | 8,632 | — | 9,777 | 81 | 11,166 | — | 21,024 | |||||||
| Total expenses | 326,582 | 319,992 | 42,346 | 19,131 | 708,051 | 74,536 | 91,415 | (16,798) | 857,205 | |||||||
| Income (loss) before income taxes | 84,741 | 95,963 | 93,848 | 7,573 | 282,125 | 40,596 | 156,928 | 304 | 479,953 | |||||||
| Income tax (expense) benefit | (20,338) | (23,042) | (22,508) | (1,816) | (67,704) | (9,645) | (42,945) | — | (120,294) | |||||||
| Net income (loss) | 64,403 | 72,921 | 71,340 | 5,757 | 214,421 | 30,951 | 113,983 | 304 | 359,659 | |||||||
| Net (income) loss attributable to noncontrolling interests | — | 45 | (67) | — | (22) | (407) | 11,777 | (304) | 11,044 | |||||||
| Net income (loss) attributable to Nelnet, Inc. | $64,403 | 72,966 | 71,273 | 5,757 | 214,399 | 30,544 | 125,760 | — | 370,703 | |||||||
| Total assets as of September 30, 2025 | $200,205 | 525,704 | 10,042,521 | 2,003,322 | 12,771,752 | 1,330,228 | 671,263 | (896,561) | 13,876,682 | |||||||
LSS - communications, professional fees, collection costs, software, and computer services and subscriptions.
Nelnet Bank - marketing, consulting and professional fees, collection costs, software, FDIC insurance, and management fee expense.
| Nine months ended September 30, 2024 | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Reportable Segments · Reconciling Items | ||||||||||||||||
| Loan Servicing and Systems (LSS) · Education Technology Services and Payments (ETSP) · AssetGeneration andManagement · Nelnet Bank · Total Reportable Segments · NFS Other Operating Segments · Corporate and Other Activities · Eliminations/ Reclassifications · Total | ||||||||||||||||
| Interest income: | ||||||||||||||||
| Loan interest | $— | — | 583,907 | 25,157 | 609,064 | — | — | — | 609,064 | |||||||
| Investment interest | 4,046 | 23,315 | 54,513 | 33,301 | 115,175 | 43,910 | 9,566 | (25,565) | 143,086 | |||||||
| Total interest income | 4,046 | 23,315 | 638,420 | 58,458 | 724,239 | 43,910 | 9,566 | (25,565) | 752,150 | |||||||
| Interest expense | — | — | 523,678 | 31,872 | 555,550 | 7,268 | 2,114 | (25,565) | 539,367 | |||||||
| Net interest income | 4,046 | 23,315 | 114,742 | 26,586 | 168,689 | 36,642 | 7,452 | — | 212,783 | |||||||
| Less (negative provision) provision for loan losses | — | — | 14,199 | 18,352 | 32,551 | — | — | — | 32,551 | |||||||
| Net interest income after provision for loan losses | 4,046 | 23,315 | 100,543 | 8,234 | 136,138 | 36,642 | 7,452 | — | 180,232 | |||||||
| Other income (expense): | ||||||||||||||||
| LSS revenue | 344,428 | — | — | — | 344,428 | — | — | — | 344,428 | |||||||
| ETSP revenue | — | 378,627 | — | — | 378,627 | — | — | — | 378,627 | |||||||
| Intersegment revenue | 18,419 | 166 | — | — | 18,585 | — | — | (18,585) | — | |||||||
| Reinsurance premiums earned | — | — | — | — | — | 44,250 | — | — | 44,250 | |||||||
| Solar construction revenue | — | — | — | — | — | — | 42,741 | — | 42,741 | |||||||
| Other, net | 2,085 | — | 11,239 | 1,991 | 15,315 | 6,763 | 11,730 | — | 33,807 | |||||||
| Loss on sale of loans, net | — | — | (1,685) | — | (1,685) | — | — | — | (1,685) | |||||||
| Gain on partial redemption of ALLO investment | — | — | — | — | — | — | — | — | — | |||||||
| Derivative settlements, net | — | — | 4,356 | 690 | 5,046 | — | — | — | 5,046 | |||||||
| Derivative market value adjustments, net | — | — | (2,875) | (793) | (3,668) | — | — | — | (3,668) | |||||||
| Total other income (expense), net | 364,932 | 378,793 | 11,035 | 1,888 | 756,648 | 51,013 | 54,471 | (18,585) | 843,546 | |||||||
| Cost of services and expenses: | ||||||||||||||||
| Total cost of services | 392 | 134,106 | — | — | 134,498 | — | 49,115 | — | 183,613 | |||||||
| Salaries and benefits | 224,172 | 121,956 | 3,529 | 8,491 | 358,148 | 1,129 | 72,159 | (1,735) | 429,701 | |||||||
| Depreciation and amortization | 15,304 | 8,012 | — | 944 | 24,260 | — | 21,312 | — | 45,572 | |||||||
| Reinsurance losses and underwriting expenses | — | — | — | — | — | 39,066 | — | — | 39,066 | |||||||
| Postage expense | 28,350 | 28,350 | (28,350) | — | ||||||||||||
| Servicing fees | 24,503 | 711 | 25,214 | (25,214) | — | |||||||||||
| Other expenses (a) | 31,119 | 23,772 | 3,217 | 5,577 | 63,685 | 2,470 | 37,359 | 35,306 | 138,820 | |||||||
| Intersegment expenses, net | 55,955 | 14,216 | 3,756 | 1,729 | 75,656 | 665 | (77,729) | 1,408 | — | |||||||
| Total operating expenses | 354,900 | 167,956 | 35,005 | 17,452 | 575,313 | 43,330 | 53,101 | (18,585) | 653,159 | |||||||
| Impairment expense and provision for beneficial interests | — | — | 34,863 | — | 34,863 | — | 2,002 | — | 36,865 | |||||||
| Total expenses | 355,292 | 302,062 | 69,868 | 17,452 | 744,674 | 43,330 | 104,218 | (18,585) | 873,637 | |||||||
| Income (loss) before income taxes | 13,686 | 100,046 | 41,710 | (7,330) | 148,112 | 44,325 | (42,295) | — | 150,141 | |||||||
| Income tax (expense) benefit | (3,284) | (24,035) | (10,010) | 1,800 | (35,529) | (10,550) | 8,426 | — | (37,653) | |||||||
| Net income (loss) | 10,402 | 76,011 | 31,700 | (5,530) | 112,583 | 33,775 | (33,869) | — | 112,488 | |||||||
| Net (income) loss attributable to noncontrolling interests | — | 101 | — | — | 101 | (366) | 8,663 | — | 8,398 | |||||||
| Net income (loss) attributable to Nelnet, Inc. | $10,402 | 76,112 | 31,700 | (5,530) | 112,684 | 33,409 | (25,206) | — | 120,886 | |||||||
| Total assets as of September 30, 2024 | $202,366 | 556,897 | 10,707,442 | 1,328,808 | 12,795,513 | 1,020,732 | 763,310 | (495,427) | 14,084,128 | |||||||
ETSP - advertising, professional fees, analysis fees, computer services and subscriptions, travel, and provision for losses.
Nelnet Bank - marketing, consulting and professional fees, software, FDIC insurance, and management fee expense.
- Disaggregated Revenue
The following tables present disaggregated revenue for the Company's fee-based operating segments:
Loan Servicing and Systems
| Three months ended September 30, | Nine months ended September 30, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Government loan servicing (a) | $112,798 | 85,215 | 285,896 | 277,705 |
| Private education and consumer loan servicing | 24,293 | 13,057 | 69,721 | 38,634 |
| FFELP loan servicing | 2,035 | 2,945 | 6,909 | 9,570 |
| Software services | 10,584 | 5,197 | 27,027 | 14,617 |
| Outsourced services | 1,342 | 1,761 | 2,964 | 3,902 |
| Loan servicing and systems revenue | $151,052 | 108,175 | 392,517 | 344,428 |
(a) Upon reaching a final agreement with the Department of Education (the "Department"), the Company recognized $32.9 million of non-recurring revenue during the third quarter of 2025 on a contract modification for services previously performed.
Education Technology Services and Payments
| Three months ended September 30, | Nine months ended September 30, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Tuition payment plan services | $32,971 | 31,659 | 109,057 | 104,702 |
| Payment processing | 59,484 | 55,813 | 148,535 | 137,926 |
| Education technology services | 36,323 | 30,080 | 136,499 | 133,306 |
| Other | 543 | 627 | 745 | 2,693 |
| Education technology services and payments revenue | $129,321 | 118,179 | 394,836 | 378,627 |
Other Income (Expense)
The following table presents the components of "other, net" in "other income (expense)" on the consolidated statements of income:
| Three months ended September 30, | Nine months ended September 30, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Investment activity, net | $42,317 | 8,529 | 56,216 | 7,447 |
| Administration/sponsor fee income | 2,267 | 1,420 | 4,978 | 4,448 |
| Investment advisory services (WRCM) | 2,010 | 1,394 | 4,987 | 4,427 |
| Borrower late fee income | 1,817 | 1,741 | 5,046 | 7,460 |
| ALLO preferred return | — | 4,783 | 14,400 | 11,353 |
| Loss from ALLO voting membership interest investment | — | — | — | (10,693) |
| Loss from solar investments, net | (10,884) | (11,238) | (11,930) | (11,068) |
| (Loss) gain on debt repurchases | (8,304) | 7 | (7,865) | (2) |
| Other | 6,507 | 9,070 | 16,569 | 20,435 |
| Other, net | $35,730 | 15,706 | 82,401 | 33,807 |
- Reinsurance
The following table presents reinsurance premiums written and earned and loss reserves, commissions, and broker fees:
| Three months ended · Nine months ended | ||||
|---|---|---|---|---|
| September 30, | September 30, | |||
| 2025 | 2024 | 2025 | 2024 | |
| Premiums written: | ||||
| Assumed | $51,244 | 43,395 | 147,178 | 115,546 |
| Ceded | (19,709) | (21,558) | (53,678) | (57,552) |
| Net premiums written | $31,535 | 21,837 | 93,500 | 57,994 |
| Premiums earned: | ||||
| Assumed | $42,178 | 33,585 | 133,981 | 88,978 |
| Ceded | (19,013) | (16,966) | (60,017) | (44,728) |
| Net premiums earned | $23,165 | 16,619 | 73,964 | 44,250 |
| Loss reserve, commissions, and broker fees: | ||||
| Assumed | $37,490 | 33,195 | 125,231 | 77,712 |
| Ceded | (17,528) | (16,434) | (57,395) | (38,646) |
| Reinsurance losses and underwriting expenses | $19,962 | 16,761 | 67,836 | 39,066 |
The Company’s loss reserve balance, net of amounts ceded to reinsurers, was $63.5 million and $33.1 million as of September 30, 2025 and December 31, 2024, respectively, which is included in "other liabilities" on the consolidated balance sheets.
- Major Customer
Government Loan Servicing
The Company earns loan servicing revenue from a servicing contract with the Department. Revenue earned by the Company related to this contract was $112.8 million and $85.2 million for the three months ended September 30, 2025 and 2024, respectively, and $285.9 million and $277.7 million for the nine months ended September 30, 2025 and 2024, respectively.
The Company's legacy student loan servicing contract with the Department was scheduled to expire on December 14, 2023. In April 2023, Nelnet Servicing received a contract award from the Department, pursuant to which it was selected to provide continued servicing capabilities for the Department's student aid recipients under a new Unified Servicing and Data Solution (USDS) contract which replaced the legacy Department student loan servicing contract.
The USDS contract became effective in April 2023 and has afive-year base period, with 2 two-year and 1 one-year possible extensions. The Department's total loan servicing volume of existing borrowers was allocated by the Department to the Company and four other third-party servicers that were awarded a USDS contract. Servicing under the USDS contract went live on April 1, 2024 and the Company recognized revenue in accordance with this new contract beginning in the second quarter of 2024. The Company earned revenue for servicing borrowers under the legacy servicing contract with the Department through March 31, 2024. The Company earns less revenue from the Department on a per-borrower blended basis under the new USDS servicing contract as compared with the legacy servicing contract.
- Fair Value
The following tables present the Company’s financial assets and liabilities that are measured at fair value on a recurring basis:
| As of September 30, 2025 · As of December 31, 2024 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Level 1 · Level 2 · Total · Level 1 · Level 2 · Total | ||||||||
| Assets: | ||||||||
| Investments: | ||||||||
| Asset-backed debt securities - available-for-sale | $100 | 1,281,967 | 1,282,067 | 100 | 1,085,726 | 1,085,826 | ||
| Equity securities | 23,731 | — | 23,731 | 455 | — | 455 | ||
| Equity securities measured at net asset value (a) | 86,090 | 74,039 | ||||||
| Total investments | 23,831 | 1,281,967 | 1,391,888 | 555 | 1,085,726 | 1,160,320 | ||
| Derivative instruments | — | 359 | 359 | — | 3,232 | 3,232 | ||
| Total assets | $23,831 | 1,282,326 | 1,392,247 | 555 | 1,088,958 | 1,163,552 | ||
| Liabilities: | ||||||||
| Derivative instruments | $— | 2,491 | 2,491 | — | 53 | 53 | ||
| Total liabilities | $— | 2,491 | 2,491 | — | 53 | 53 | ||
(a) In accordance with the Fair Value Measurements Topic of the FASB Accounting Standards Codification, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.
The following table summarizes the fair values of all of the Company’s financial instruments on the consolidated balance sheets. The methodologies for estimating the fair value of financial assets and liabilities are described in note 24 of the notes to consolidated financial statements included in the 2024 Annual Report.
| As of September 30, 2025 | |||||
|---|---|---|---|---|---|
| Fair value | Carrying value | Level 1 | Level 2 | Level 3 | |
| Financial assets: | |||||
| Loans receivable | $10,120,177 | 9,668,349 | — | — | 10,120,177 |
| Accrued loan interest receivable | 558,912 | 558,912 | — | 558,912 | — |
| Cash and cash equivalents | 216,425 | 216,425 | 216,425 | — | — |
| Investments at fair value | 1,391,888 | 1,391,888 | 23,831 | 1,281,967 | — |
| Investments - held-to-maturity asset-backed securities | 205,992 | 201,041 | — | 205,992 | — |
| Notes receivable | 33,376 | 33,376 | — | 33,376 | — |
| Beneficial interest in loan securitizations | 213,278 | 201,800 | — | — | 213,278 |
| Restricted cash | 394,074 | 394,074 | 394,074 | — | — |
| Restricted cash – due to customers | 156,297 | 156,297 | 156,297 | — | — |
| Derivative instruments | 359 | 359 | — | 359 | — |
| Financial liabilities: | |||||
| Bonds and notes payable | 7,846,287 | 7,822,531 | — | 7,846,287 | — |
| Accrued interest payable | 19,039 | 19,039 | — | 19,039 | — |
| Bank deposits | 1,469,701 | 1,476,765 | 1,007,606 | 462,095 | — |
| Due to customers | 442,735 | 442,735 | 442,735 | — | — |
| Derivative instruments | 2,491 | 2,491 | — | 2,491 | — |
| As of December 31, 2024 | |||||
|---|---|---|---|---|---|
| Fair value | Carrying value | Level 1 | Level 2 | Level 3 | |
| Financial assets: | |||||
| Loans receivable | $10,008,165 | 9,443,461 | — | — | 10,008,165 |
| Accrued loan interest receivable | 549,283 | 549,283 | — | 549,283 | — |
| Cash and cash equivalents | 194,518 | 194,518 | 194,518 | — | — |
| Investments at fair value | 1,160,320 | 1,160,320 | 555 | 1,085,726 | — |
| Investments - held-to-maturity asset-backed securities | 216,164 | 210,774 | — | 216,164 | — |
| Notes receivable | 32,258 | 32,258 | — | 32,258 | — |
| Beneficial interest in loan securitizations | 229,510 | 213,809 | — | — | 229,510 |
| Restricted cash | 332,100 | 332,100 | 332,100 | — | — |
| Restricted cash – due to customers | 404,402 | 404,402 | 404,402 | — | — |
| Derivative instruments | 3,232 | 3,232 | — | 3,232 | — |
| Financial liabilities: | |||||
| Bonds and notes payable | 8,343,565 | 8,309,797 | — | 8,343,565 | — |
| Accrued interest payable | 21,046 | 21,046 | — | 21,046 | — |
| Bank deposits | 1,172,707 | 1,186,131 | 744,721 | 427,986 | — |
| Due to customers | 478,469 | 478,469 | 478,469 | — | — |
| Derivative instruments | 53 | 53 | — | 53 | — |
- Subsequent Event
On October 23, 2025, the Company announced that it entered into a definitive and binding purchase agreement with DH Corporation, a wholly owned subsidiary of Finastra Holdings Limited (“Finastra”), pursuant to which Nelnet Canada, Inc., a wholly owned subsidiary of the Company, will acquire Finastra’s Canadian student loan servicing business for a purchase price of approximately $93 million in cash. The transaction is expected to close in the first calendar quarter of 2026, subject to customary closing conditions.
Finastra’s Canadian student loan servicing business is the leading provider of student loan servicing solutions to governments and financial institutions in Canada providing technology enabled managed services across the loan lifecycle. The business currently services loans for 2.4 million borrowers on proprietary technology platforms. The operating results of this acquisition will be included in the Loan Servicing and Systems reportable operating segment following the closing of the transaction.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.