Nelnet posts $76.2 million in third-quarter net income as loan-loss provisions weigh
Key Facts
Nelnet said on November 5 that U.S. GAAP net income was $76.2 million, or $2.13 per share, in the third quarter of 2026, compared with $106.7 million, or $2.94 per share, in the same period last year. Net income excluding mark-to-market adjustments on derivatives also fell to $67.9 million, or $1.89 per share. This non-GAAP measure was $107.3 million, or $2.95 per share, a year earlier. The results put credit provisions among the main factors accompanying the earnings decline, alongside growth in the bank segment’s interest income.
The AGM segment recorded a provision for loan losses of $34.5 million in the third quarter of 2026. In the corresponding period of 2025, the segment reversed a provision of $7.4 million, a substantial difference in the impact of this item between the two periods. The company said each period’s provision was affected significantly by the initial provision for acquired loans. The provision recorded in the current quarter had an after-tax impact of $26.2 million, according to the company’s statement. The item features in the results alongside the comparison of adjusted net income, which fell from $107.3 million to $67.9 million.
By contrast, Nelnet Bank’s net interest income from loans and investments rose to $20.4 million in the third quarter from $15.4 million a year earlier. The company attributed the increase to growth in its loan and investment portfolios. It said a lower net interest margin offset part of that growth. The rise in interest income came alongside a decline in overall net income for the quarter, with the company’s comparison showing GAAP net income falling from $106.7 million to $76.2 million. Net income excluding the impact of changes in the value of derivatives also fell from $107.3 million to $67.9 million.
Nelnet’s third-quarter revenue was $544.2 million, while adjusted revenue was $436.6 million, according to figures reported by the Associated Press on November 5. The company also services loans; as of September 30, it serviced $523.6 billion in loans for 15.4 million borrowers. The serviced loans include U.S. Department of Education loans, Canadian loans, Federal Family Education Loan Program loans, private education loans and consumer loans. These figures provide context on the scale of its loan-servicing business alongside its banking operations. The quarterly results focus on net income, changes in provisions and interest income for the period ended in September.
The company repurchased 415,332 Class A shares for $53.1 million during the third quarter of 2026. After the quarter ended, it bought an additional 295,990 shares for $37.0 million through November 5. The transactions show that share repurchases continued during and after the quarter, alongside the results announcement. The company also declared a fourth-quarter cash dividend of $0.36 per share. The dividend is scheduled to be paid on December 15, 2026, to shareholders of record at the close of business on December 1, 2026.
In trading, NNI closed at $127.58 on November 4, 2026, then at $127.01 on November 5, according to EL7 data. Both closes came ahead of the company’s third-quarter results announcement on November 5. The available price record did not include a documented trading range for the stock during the November 4 session. The company set December 1 as the record date for shareholders eligible for the announced cash dividend. The dividend will be paid on December 15, after the results announcement and the company’s reported repurchases through November 5.