For the transition period from to UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-36228 Navient Corporation (Exact name of registrant as specified in its charter) Delaware 46-4054283 (State or other jurisdicti ...

Navient Corporation (NAVI) has reported first-quarter 2025 adjusted earnings per share (EPS) of 28 cents, surpassing the Zacks Consensus Estimate of 19 cents. It reported earnings of 63 cents in the prior-year quarter.Results were driven by lower expenses. However, a rise in provision for loan losses and a decrease in net interest income (NII) were headwinds.Navient’s GAAP net loss was $2 million against a net income of $73 million in the prior-year quarter.Navient’s NII & Expenses DeclineNII fell 11.7% yea ...

For the quarter ended March 2025, Navient (NAVI) reported revenue of $144 million, down 11.7% over the same period last year. EPS came in at $0.28, compared to $0.63 in the year-ago quarter.The reported revenue represents a surprise of +7.38% over the Zacks Consensus Estimate of $134.11 million. With the consensus EPS estimate being $0.19, the EPS surprise was +47.37%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expec ...

Company Performance - Navient (NAVI) reported quarterly earnings of $0.28 per share, exceeding the Zacks Consensus Estimate of $0.19 per share, but down from $0.63 per share a year ago, representing an earnings surprise of 47.37% [1] - The company posted revenues of $144 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 7.38%, although this is a decrease from year-ago revenues of $163 million [2] - Over the last four quarters, Navient has surpassed consensus EPS estimates four times, but has only topped consensus revenue estimates once [2] Stock Outlook - The immediate price movement of Navient's stock will largely depend on management's commentary during the earnings call [3] - Navient shares have declined approximately 4.4% since the beginning of the year, compared to a decline of 5.5% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.28 on revenues of $136.06 million, and for the current fiscal year, it is $1.02 on revenues of $553.05 million [7] Industry Context - The Financial - Consumer Loans industry, to which Navient belongs, is currently ranked in the top 22% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - GAAP net loss of $2 million, with core earnings of $26 million, resulting in a diluted loss per share of $0.02 and earnings per share of $0.25 respectively[2] - Net income for Q1 2025 was $(2) million, a decrease of 108% compared to $24 million in Q4 2024 and a decrease of 103% from $73 million in Q1 2024[22] - Diluted earnings per share for Q1 2025 was $(0.02), down from $0.22 in Q4 2024 and $0.64 in Q1 2024, representing a 109% decrease year-over-year[22] - Total revenue for the Federal Education Loans segment was $51 million, down from $69 million in the same quarter last year, while total revenue for the Consumer Lending segment was $94 million, down from $127 million[5][8] - Total other income for Q1 2025 was $26 million, with servicing revenue contributing $13 million[52] Loan Performance - Federal Education Loans segment reported net income of $24 million and a net interest margin of 0.61%, with FFELP Loan prepayments decreasing to $256 million from $1.6 billion year-over-year[3] - Consumer Lending segment generated net income of $46 million, with a net interest margin of 2.76% and originated $508 million in Private Education Loans, including $470 million in refinance loans[8][9] - The ending total education loans, net, was $45,934 million as of March 31, 2025, a decrease from $46,568 million at the end of Q4 2024 and $52,487 million at the end of Q1 2024[22] - The allowance for loan losses at the end of the period for FFELP loans was $182 million and for Private Education loans was $397 million, totaling $579 million[34] - The ending total loans for the quarter were $30.426 billion for FFELP loans and $16.087 billion for Private Education loans, totaling $46.513 billion[34] Expenses and Charges - Operating expenses were $127 million, with $10 million related to transition services for strategic initiatives expected to be completed by the end of 2025[3] - Operating expenses decreased to $127 million in Q1 2025 from $146 million in Q4 2024, a reduction of 13%[24] - Net charge-offs in the Consumer Lending segment were $71 million, down from $99 million year-over-year, with a net charge-off rate of 1.87%[9] - The company reported a loss on derivative and hedging activities of $(25) million in Q1 2025, compared to a gain of $59 million in Q4 2024, indicating a significant volatility in this area[24] - The total provision for loan losses in the quarter ended March 31, 2025, was $30 million, compared to $45 million in the previous quarter[34] Shareholder Actions - The company repurchased $35 million of common shares, with $76 million remaining in common share repurchase authority[3] - The company repurchased 2.6 million shares of common stock for $35 million in the first quarter of 2025, with $76 million of unused share repurchase authority remaining[41] - The company repurchased 2.6 million shares of common stock in both the first quarters of 2025 and 2024, resulting in a 12 million share decrease in average outstanding diluted shares[30] Regulatory and Market Risks - The company continues to face risks related to regulatory changes and market conditions that could impact its financial performance and operational strategies[18] - The effective income tax rate increased to 54% from 17% in the prior year, driven by state tax expenses and changes in valuation allowances[29] Cash and Assets - The company reported unrestricted cash of $642 million as of March 31, 2025, down from $722 million at the end of December 2024[42] - The average unrestricted cash balance for the quarter was $572 million, compared to $737 million in the previous quarter[42] - As of March 31, 2025, the company reported total unencumbered tangible assets of $2.8 billion, including $1.3 billion in unencumbered education loans[44] - The company had $4.8 billion of encumbered net assets as of March 31, 2025, with $0.7 billion in outstanding repurchase facility borrowings[44] Equity and Tangible Assets - The company reported a GAAP equity-to-asset ratio of 5.1% and an adjusted tangible equity ratio of 9.9%[3] - Total tangible equity stood at $2.2 billion as of March 31, 2025, unchanged from the previous quarter[46] - The company reported a tangible equity of $2,152 million as of March 31, 2025, down from $2,204 million on December 31, 2024[78]

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Navient (NAVI) . This company, which is in the Zacks Financial - Consumer Loans industry, shows potential for another earnings beat.This student loan servicing company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 23 ...

HERNDON, Va., April 09, 2025 (GLOBE NEWSWIRE) -- Navient (Nasdaq: NAVI) will host an audio webcast to review its first quarter 2025 financial results on Wednesday, April 30, 2025, at 8:00 a.m. Eastern Time. The results are scheduled to be released the same day by 7:00 a.m. on Navient.com/investors. In addition to being available on the company’s investor website, the results will be filed with the SEC on a Form 8-K available at SEC.gov. The webcast and presentation slides also will be available on Navient.c ...

It has been about a month since the last earnings report for Navient (NAVI) . Shares have added about 1.6% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Navient due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Navient Q4 Earnings Beat Estimates on Lower Expenses, ...

Financial Performance - GAAP net income for 2024 was $131 million, down from $228 million in 2023, with diluted earnings per share of $1.18[70]. - Return on common stockholders' equity decreased to 5% in 2024 from 8% in 2023[67]. - Net income decreased to $105 million in 2024 from $319 million in 2023, representing a 67% decline[87]. - Core Earnings net income for 2024 was $221 million ($2.00 diluted Core Earnings per share), down from $303 million ($2.45 diluted Core Earnings per share) in 2023, reflecting a decrease of 27%[71]. - The company reported a pre-tax income of $234 million for 2024, a significant increase from $36 million in 2023[205]. - Total revenue for the Business Processing segment reached $462 million in 2024, compared to $321 million in 2023[205]. - Total expenses for the year were $865 million, with direct operating expenses at $445 million and unallocated shared services expenses at $235 million[187]. - Total interest income reached $3,809 million, with education loans contributing $3,655 million and cash and investments adding $154 million[187]. Loan Portfolio - Navient manages a portfolio of $30.9 billion in federally guaranteed Federal Family Education Loan Program (FFELP) Loans and $15.7 billion in Private Education Loans[27][28]. - As of December 31, 2024, Navient's portfolio of FFELP Loans was $31 billion, with a net interest margin of 0.45%[43]. - Navient's Private Education Loans portfolio totaled $15.7 billion as of December 31, 2024, with a net interest margin of 2.87%[48]. - Total education loan portfolio as of December 31, 2024, is $46,568 million, a decrease from $54,827 million in 2023, representing a decline of approximately 15%[125]. - The ending total loans for Private Education Loans in 2024 were $16,157 million, with average loans in repayment at $16,078 million[129]. - The total balance of loans in forbearance decreased to $4,365 million in 2024 from $6,147 million in 2023, indicating improved repayment conditions[127]. - The percentage of loans delinquent greater than 90 days increased to 8.7% in 2024 from 7.5% in 2023, indicating a rise in long-term delinquencies[127]. Shareholder Returns - The company repurchased 11.5 million shares in 2024, reducing shares outstanding by 9%[34]. - Total capital returned to shareholders in 2024 was $249 million, including $179 million in share repurchases and $70 million in dividends[34]. - The company repurchased $179 million of common shares, with $111 million of repurchase authority remaining[75]. Asset Management - Total assets as of December 31, 2024, were $51.8 billion, a decrease from $61.4 billion in 2023[67]. - The total unencumbered tangible assets amounted to $2.9 billion, including $1.3 billion in unencumbered education loans[141]. - The company reported a liquidity position with unrestricted cash of $722 million and total primary liquidity sources of $1,196 million as of December 31, 2024[140]. Risk Management - Navient emphasizes the importance of risk management for continued success[210]. - The company assigns risk oversight and management responsibilities at various organizational levels[210]. - Comprehensive risk management practices are maintained to identify, measure, monitor, evaluate, control, and report significant risks[210]. - Continuous evaluation of risk management practices is conducted to ensure effectiveness and identify areas for improvement[210]. - Coordination of risk management activities is a routine process within the organization[210]. - The company focuses on understanding the inherent risks in its business operations[210]. - Effective management of risks is critical for achieving strategic objectives[210]. - Risk assessment is an ongoing responsibility across various levels of the organization[210]. - The company aims to enhance its risk management framework regularly[210]. - Significant risks are reported systematically to ensure transparency and accountability[210]. Loan Loss Provisions - The provision for Private Education Loan losses increased to $112 million in 2024, up from $67 million in the prior year[79]. - Provision for loan losses decreased to $1 million in 2024 from $56 million in 2023, a reduction of 98%[87]. - The allowance for loan losses increased to $621 million in 2024 from $832 million in 2023, indicating a reduction in the reserve for potential loan defaults[125]. - The Private Education Loan provision for loan losses was $112 million in 2024, including $39 million related to lowering expected recovery rates on defaulted loans[156]. Business Operations - Navient completed the sale of its healthcare services business for $369 million, resulting in a $219 million gain on sale[40]. - A strategic outsourcing agreement was established with MOHELA for student loan servicing, transitioning nearly 900 employees[40]. - Restructuring and reorganization charges in 2024 amounted to $39 million, primarily related to severance from job abolishments[40]. - The company aims to complete its strategic actions to simplify the company by the end of 2025[39]. Market Conditions - The introduction of various federal loan forgiveness plans has triggered increased consolidation activity among FFELP borrowers, impacting the company's results[180]. - The company expects future origination volume for Private Education Refinance Loans to increase in 2025, supported by strong liquidity and high credit quality[171].

Core Insights - Navient Corporation (NAVI) has completed the divestiture of its Government Services business (NGS) to Gallant Capital Partners, allowing the company to exit the business processing solution space entirely [1][4]. Group 1: Divestiture Details - NGS includes several segments such as Navient Business Processing Group, Duncan Solutions, Gila, Pioneer Credit Recovery, and Navient BPO, providing tech-enabled processing and payment solutions for government entities [2]. - Approximately 1,200 employees will transfer to Gallant Capital Partners as part of this deal [3]. Group 2: Strategic Rationale - The divestiture enables Navient to concentrate on its core operations in education finance and business processing solutions, which is expected to enhance operational efficiency and financial performance [4]. Group 3: Operational Efficiency Initiatives - Navient has been implementing various cost control initiatives, resulting in a compound annual growth rate of expense decline of 3.2% over the last five years, ending in 2024 [5]. - The company entered a servicing outsourcing agreement with MOHELA in April 2024, transferring nearly 900 employees to facilitate lasting expense reductions [6]. - A flatter organizational structure was implemented in Q2 2024, aiming for an 80-90% decline in employee count to reduce expenses and spur bottom-line growth [7]. Group 4: Market Performance - Over the past six months, Navient shares have declined by 11%, contrasting with a 30.3% rise in the industry [8].