Core Viewpoint - The market anticipates a year-over-year decline in Navient's earnings despite an increase in revenues when it reports its results for the quarter ended June 2025 [1] Company Summary - Navient is expected to report quarterly earnings of $0.29 per share, reflecting a year-over-year decrease of 39.6% [3] - Revenue projections stand at $142.8 million, which is a 5% increase from the same quarter last year [3] - The consensus EPS estimate has been revised down by 3.94% over the last 30 days, indicating a bearish sentiment among analysts [4] Earnings Surprise Prediction - The Most Accurate Estimate for Navient is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -17.22% [12] - The stock currently holds a Zacks Rank of 3, making it challenging to predict a beat on the consensus EPS estimate [12] - Historically, Navient has beaten consensus EPS estimates in the last four quarters, with a notable surprise of +47.37% in the last reported quarter [13][14] Industry Context - In comparison, Capital One is expected to post earnings of $3.83 per share for the same quarter, indicating a year-over-year increase of 22% [18] - Capital One's revenue is projected to be $12.22 billion, up 28.6% from the previous year, with a slight upward revision of 0.6% in the consensus EPS estimate over the last 30 days [19] - Capital One also has an Earnings ESP of -1.47% and a Zacks Rank of 3, complicating predictions for beating the consensus EPS estimate [20]

Core Viewpoint - Navient will host an audio webcast to discuss its second quarter 2025 financial results on July 30, 2025, at 8:00 a.m. Eastern Time, with results released earlier that day at 7:00 a.m. [1] Group 1 - The financial results will be available on the company's investor website and filed with the SEC on a Form 8-K [1][2] - Analysts and investors can pre-register for questions, while others can join in listen-only mode without pre-registration [2] - A replay of the webcast will be accessible approximately two hours after the event concludes [3] Group 2 - Navient focuses on helping students and families manage the cost of higher education through responsible lending and trusted servicing [4] - The company aims to create long-term value for customers and investors with its portfolio management expertise [4]

Core Insights - The "Big and Beautiful" Act signed by Trump is expected to create growth opportunities for private student loan institutions, potentially generating around $2.5 billion in benefits [1] Summary by Categories Market Impact - The act limits or eliminates federal government sources for certain graduate loans, shifting up to $14 billion of the student loan market to the private sector [1] - In contrast to the $1.2 billion in private loans issued to graduate students in 2024, this represents a significant growth opportunity for private lenders [1] Company Opportunities - Companies like SoFi, Sallie Mae, and Navient are anticipated to experience substantial increases in interest and fee income due to this market shift [1]

HERNDON, Va., June 05, 2025 (GLOBE NEWSWIRE) -- Navient (Nasdaq: NAVI) today held its 2025 Annual Meeting of Shareholders. Shareholders voted in accordance with the recommendations of the company’s board of directors to approve three proposals, including the election of seven nominees to the board. Linda Mills did not stand for reelection at the 2025 annual meeting. Ms. Mills joined the Navient board of directors in 2014 and served as chair since 2019. “Linda’s leadership and service on the board since Navi ...

we discuss ideas like this as they happen in more detail. All active investors are welcome to join on a free trial and ask any question in our chat room full of sophisticated traders and investors.This article was first published for our subscribers, and some of the numbers may be outdated./ Today's article is a comparison between the exchange-traded and over-the-counter bonds from Navient Corporation (NASDAQ: NAVI ) and the opportunities they offer us. As theDenislav leads the investing group Trade With Be ...

[Business](index=5&type=section&id=Business) Navient focuses on managing education loan portfolios, simplifying operations through divestitures, and growing its private education loan originations [Overview and Fundamentals of Our Business](index=5&type=section&id=Overview%20and%20Fundamentals%20of%20Our%20Business) Navient provides technology-enabled education finance solutions, primarily managing its Federal Family Education Loan Program (FFELP) and Private Education Loan portfolios, with a strategy focused on maximizing cash flows, maintaining a strong balance sheet, and returning capital to shareholders - Navient's business is centered on managing two key loan portfolios: **$30.2 billion** in FFELP Loans and **$15.7 billion** in Private Education Loans[20](index=20&type=chunk)[21](index=21&type=chunk) - In the first quarter of 2025, the company originated approximately **$508 million** of Private Education Loans through its Earnest brand[21](index=21&type=chunk) - The company maintains a **$1 billion** share repurchase program, approved in December 2021, with **$76 million** remaining available for repurchases as of March 31, 2025[24](index=24&type=chunk) Capital Return and Key Ratios (Q1 2025 vs. Q1 2024) | (Dollars and shares in millions) | Q1-25 | Q1-24 | | :--- | :--- | :--- | | Shares repurchased | 2.6 | 2.6 | | Reduction in shares outstanding | 2% | 1% | | Total repurchases in dollars | $35 | $43 | | Dividends paid | $16 | $18 | | Total Capital Returned | $51 | $61 | | GAAP equity-to-asset ratio | 5.1% | 4.7% | | Adjusted Tangible Equity Ratio | 9.9% | 8.4% | [Recent Business Developments](index=7&type=section&id=Recent%20Business%20Developments) Navient has made significant progress on strategic actions to simplify the company and reduce costs, including outsourcing loan servicing and divesting its Business Processing segment, resulting in an 80% headcount reduction and a near doubling of Private Education Loan originations - Completed the divestiture of the Business Processing segment, with the healthcare services business sold in September 2024 and the government services business sold in February 2025[31](index=31&type=chunk) - Reduced headcount by **80%** since the beginning of 2024 as part of strategic restructuring[31](index=31&type=chunk) - Recognized **$42 million** in restructuring and reorganization charges in 2024 and Q1 2025, primarily for severance[31](index=31&type=chunk) - Private Education Loan originations nearly doubled to **$508 million** in Q1 2025 compared to **$259 million** in Q1 2024, reflecting a strategic focus on this growth area[34](index=34&type=chunk) [How We Organize Our Business](index=7&type=section&id=How%20We%20Organize%20Our%20Business) Following recent divestitures, Navient operates through two primary segments: Federal Education Loans and Consumer Lending, with a third "Other" segment for corporate liquidity and unallocated expenses - The company now operates two primary segments: Federal Education Loans and Consumer Lending[32](index=32&type=chunk) - The Federal Education Loans segment owns and manages FFELP Loans, generating revenue from net interest income[35](index=35&type=chunk) - The Consumer Lending segment owns, manages, refinances, and originates Private Education Loans through its Earnest brand[36](index=36&type=chunk) - The Business Processing segment was fully divested with the sale of its government services businesses in February 2025[38](index=38&type=chunk) - The Other segment consists of the corporate liquidity portfolio, unallocated shared services expenses, restructuring costs, and revenue/expenses from transition services[40](index=40&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=9&type=section&id=Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides an in-depth analysis of Navient's financial performance and condition, highlighting key trends, segment results, and liquidity management [Selected Historical Financial Information and Ratios](index=9&type=section&id=Selected%20Historical%20Financial%20Information%20and%20Ratios) This section presents a high-level comparison of key financial data for the first quarters of 2025 and 2024, highlighting a shift from GAAP net income in 2024 to a net loss in 2025, a decrease in Core Earnings, and a reduction in the overall education loan portfolio size Q1 Financial Comparison (GAAP Basis) | (In millions, except per share data) | 2025 | 2024 | | :--- | :--- | :--- | | Net income (loss) | $(2) | $73 | | Diluted earnings (loss) per common share | $(.02) | $.64 | Q1 Financial Comparison (Core Earnings Basis) | (In millions, except per share data) | 2025 | 2024 | | :--- | :--- | :--- | | Net income | $26 | $54 | | Diluted earnings per common share | $.25 | $.47 | Education Loan Portfolio Balances (Net) | (In millions) | Ending March 31, 2025 | Ending March 31, 2024 | | :--- | :--- | :--- | | Ending FFELP Loans, net | $30,244 | $35,879 | | Ending Private Education Loans, net | $15,690 | $16,608 | | Ending total education loans, net | $45,934 | $52,487 | [The Quarter in Review](index=10&type=section&id=The%20Quarter%20in%20Review) In Q1 2025, Navient reported a GAAP net loss of $2 million, a stark contrast to the $73 million net income in Q1 2024, with Core Earnings also declining, while key activities included completing the sale of the Business Processing segment, repurchasing shares, paying dividends, and originating Private Education Loans - Reported a Q1 2025 GAAP net loss of **$2 million** (**$0.02 per share**) compared to a **$73 million** net income (**$0.64 per share**) in Q1 2024[44](index=44&type=chunk) - Core Earnings net income for Q1 2025 was **$26 million** (**$0.25 per share**), down from **$54 million** (**$0.47 per share**) in the prior-year quarter[45](index=45&type=chunk) - Completed the sale of the remaining Business Processing segment businesses for net consideration of **$44 million** in February 2025[46](index=46&type=chunk) - Returned capital to shareholders by repurchasing **$35 million** of common shares and paying **$16 million** in dividends[48](index=48&type=chunk) [Results of Operations](index=11&type=section&id=Results%20of%20Operations) The company's shift from a $73 million net income in Q1 2024 to a $2 million net loss in Q1 2025 was driven by several factors, including a $22 million fall in net interest income, an $18 million increase in provisions for loan losses, a $57 million decrease in gains on derivatives, and a $54 million drop in revenue from the divested Business Processing segment, partially offset by a $56 million reduction in operating expenses GAAP Income Statement Highlights (Q1 2025 vs. Q1 2024) | (In millions) | 2025 | 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net interest income | $130 | $152 | $(22) | (14)% | | Provisions for loan losses | $30 | $12 | $18 | 150% | | Total other income | $26 | $135 | $(109) | (81)% | | Total expenses | $131 | $187 | $(56) | (30)% | | Net income (loss) | $(2) | $73 | $(75) | (103)% | - Net interest income decreased by **$22 million**, primarily from the paydown of loan portfolios and interest rate impacts[54](index=54&type=chunk) - Provisions for loan losses increased by **$18 million**, reflecting higher provisions for both FFELP and Private Education Loans due to rising delinquencies[54](index=54&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk) - Asset recovery and business processing revenue fell by **$54 million** due to the sale of the healthcare and government services businesses[54](index=54&type=chunk) - Net gains on derivative and hedging activities decreased by **$57 million**, primarily due to interest rate fluctuations[54](index=54&type=chunk) [Segment Results](index=13&type=section&id=Segment%20Results) This section provides a detailed breakdown of Core Earnings performance across Navient's operating segments, where both Federal Education Loans and Consumer Lending segments saw year-over-year declines in net income due to lower net interest income and higher provisions, while the Business Processing segment's results reflect its divestiture and the Other segment's loss narrowed due to lower expenses [Federal Education Loans Segment](index=13&type=section&id=Federal%20Education%20Loans%20Segment) The Federal Education Loans segment's net income decreased to $24 million in Q1 2025 from $40 million in Q1 2024, primarily caused by a $4 million drop in net interest income and a $7 million increase in the provision for loan losses, which rose to $8 million due to higher delinquency balances, with delinquencies greater than 90 days increasing to $2.5 billion from $1.9 billion year-over-year Federal Education Loans Segment Core Earnings (Q1 2025 vs. Q1 2024) | (Dollars in millions) | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Net interest income | $49 | $53 | (8)% | | Provision for loan losses | $8 | $1 | 700% | | Net income | $24 | $40 | (40)% | - Provision for loan losses increased by **$7 million** to **$8 million**, driven by a rise in delinquency balances[58](index=58&type=chunk) Federal Education Loans Key Performance Metrics | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Segment net interest margin | 0.61% | 0.55% | | Greater than 90-days delinquency rate | 10.2% | 6.6% | | Forbearance rate | 14.4% | 16.0% | | Ending FFELP Loans, net | $30,244M | $35,879M | [Consumer Lending Segment](index=16&type=section&id=Consumer%20Lending%20Segment) The Consumer Lending segment's net income fell to $46 million in Q1 2025 from $73 million in Q1 2024, driven by a $21 million decrease in net interest income from portfolio paydowns and an $11 million increase in the provision for loan losses, despite significant growth in loan originations which rose to $508 million from $259 million year-over-year Consumer Lending Segment Core Earnings (Q1 2025 vs. Q1 2024) | (Dollars in millions) | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Net interest income | $113 | $134 | (16)% | | Provision for loan losses | $22 | $11 | 100% | | Net income | $46 | $73 | (37)% | - Originated **$508 million** of Private Education Loans, a significant increase from **$259 million** in Q1 2024, including **$470 million** in Refinance Loans and **$38 million** in In-school loans[72](index=72&type=chunk) - Provision for loan losses increased by **$11 million** to **$22 million**, with **$7 million** for new originations and **$15 million** for a general reserve build due to higher delinquencies[72](index=72&type=chunk)[77](index=77&type=chunk) Consumer Lending Key Performance Metrics | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Segment net interest margin | 2.76% | 2.99% | | Greater than 90-days delinquency rate | 2.6% | 2.1% | | Ending Private Education Loans, net | $15,690M | $16,608M | [Business Processing Segment](index=18&type=section&id=Business%20Processing%20Segment) Navient no longer provides business processing services following the sale of its government services business in February 2025, with the segment generating $2 million in net income on $23 million in revenue for the partial first quarter of 2025, reflecting a steep decline from the prior year due to the divestiture - With the sale of its government services business in February 2025, Navient has fully exited the Business Processing segment[83](index=83&type=chunk) Business Processing Segment Core Earnings (Q1 2025 vs. Q1 2024) | (Dollars in millions) | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Business processing revenue | $23 | $77 | (70)% | | Net income | $2 | $6 | (67)% | | EBITDA | $3 | $9 | (67)% | [Other Segment](index=19&type=section&id=Other%20Segment) The Other segment reported a net loss of $46 million, an improvement from a $65 million loss in Q1 2024, primarily due to a $12 million decrease in unallocated shared services operating expenses and increased other revenue from transition services related to recent divestitures Other Segment Core Earnings (Q1 2025 vs. Q1 2024) | (Dollars in millions) | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Net interest loss | $(18) | $(24) | (25)% | | Other revenue | $15 | $5 | 200% | | Total expenses | $56 | $66 | (15)% | | Net loss | $(46) | $(65) | (29)% | - Unallocated shared services operating expenses decreased by **$12 million**, primarily due to a **$12 million** drop in regulatory-related expenses compared to the prior-year quarter[88](index=88&type=chunk) - Restructuring expenses increased by **$2 million** due to higher severance costs related to strategic initiatives[90](index=90&type=chunk) [Financial Condition](index=20&type=section&id=Financial%20Condition) As of March 31, 2025, Navient's total net education loan portfolio was $45.9 billion, down from $52.5 billion a year earlier, reflecting the continued paydown of the FFELP portfolio, with increased delinquency rates for both FFELP and Private Education loans and a total allowance for loan losses of $579 million Ending Education Loan Balances, net | (Dollars in millions) | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Total FFELP Loans | $30,244 | $35,879 | | Total Private Education Loans | $15,690 | $16,608 | | **Total Portfolio** | **$45,934** | **$52,487** | FFELP Loan Portfolio Performance | Metric (% of loans in repayment) | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Delinquent greater than 90 days | 10.2% | 6.6% | | In forbearance | 14.4% | 16.0% | Private Education Loan Portfolio Performance | Metric (% of loans in repayment) | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Delinquent greater than 90 days | 2.6% | 2.1% | | In forbearance | 1.8% | 1.8% | Allowance for Loan Losses Roll-Forward (Q1 2025) | (Dollars in millions) | FFELP Loans | Private Education Loans | Total | | :--- | :--- | :--- | :--- | | Allowance at beginning of period | $180 | $441 | $621 | | Total provision | $8 | $22 | $30 | | Net charge-offs | $(6) | $(72) | $(78) | | **Allowance at end of period** | **$182** | **$397** | **$579** | [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) Navient maintains liquidity to service its debt and fund operations, with primary sources including cash, operating cash flows, and loan repayments, holding $1.2 billion in primary liquidity and access to an additional $1.8 billion from credit facilities, while managing $5.3 billion in unsecured debt and aiming to improve credit ratings Sources of Primary Liquidity (Ending Balances) | (Dollars in millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Unrestricted cash | $642 | $722 | | Unencumbered FFELP Loans | $61 | $232 | | Unencumbered Private Education Refinance Loans | $488 | $242 | | **Total** | **$1,191** | **$1,196** | Sources of Additional Liquidity (Ending Balances) | (Dollars in millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | FFELP Loan ABCP facilities | $223 | $424 | | Private Education Loan ABCP facilities | $1,626 | $1,490 | | **Total** | **$1,849** | **$1,914** | - The company has **$5.3 billion** in senior unsecured debt outstanding as of March 31, 2025, with **$0.5 billion** maturing within the next 12 months[101](index=101&type=chunk)[102](index=102&type=chunk) - The Adjusted Tangible Equity Ratio was **9.9%** as of March 31, 2025, compared to **8.4%** a year prior[132](index=132&type=chunk) [Critical Accounting Policies and Estimates](index=27&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section directs readers to the company's 2024 Form 10-K for a comprehensive discussion of its critical accounting policies, including the allowance for loan losses, goodwill impairment assessment, and premium and discount amortization, with no changes or new policies noted for the current period - The report references the 2024 Form 10-K for a full discussion of critical accounting policies[112](index=112&type=chunk) - Key critical accounting policies include allowance for loan losses, goodwill impairment assessment, and premium and discount amortization[112](index=112&type=chunk) [Non-GAAP Financial Measures](index=27&type=section&id=Non-GAAP%20Financial%20Measures) Navient utilizes several non-GAAP financial measures to evaluate its business, including Core Earnings, Tangible Equity, EBITDA, and a modified Allowance for Loan Losses, believing these measures provide a clearer view of operational performance by adjusting for items like derivative mark-to-market volatility and goodwill accounting, with detailed definitions and reconciliations provided - Navient uses Core Earnings as its primary measure for managing business segments, adjusting GAAP results by removing mark-to-market gains/losses on certain derivatives and the accounting for goodwill and acquired intangible assets[114](index=114&type=chunk)[115](index=115&type=chunk) Reconciliation of GAAP Net Income to Core Earnings Net Income (Q1 2025) | (Dollars in millions) | Amount | | :--- | :--- | | GAAP net income (loss) | $(2) | | Net impact of derivative accounting | $39 | | Net impact of goodwill and acquired intangible assets | $1 | | Net income tax effect | $(12) | | **Core Earnings net income** | **$26** | - The Adjusted Tangible Equity Ratio, which excludes FFELP loans and related equity, is used for capital allocation decisions and stood at **9.9%** at the end of Q1 2025[132](index=132&type=chunk) - A non-GAAP allowance for loan losses metric is presented, which excludes expected future recoveries on previously charged-off loans to better reflect expected credit losses on the current on-balance sheet portfolio[135](index=135&type=chunk) [Legal Proceedings](index=35&type=section&id=Legal%20Proceedings) The company is involved in various claims, lawsuits, and regulatory inquiries arising from its normal business operations, with detailed information referenced in Note 10 of the financial statements, and management currently believes these matters will not have a material adverse effect on the company's financial condition, although the outcomes are inherently unpredictable - The company is subject to various legal and regulatory actions in the normal course of business, including class action lawsuits related to loan servicing and collection activities[244](index=244&type=chunk)[253](index=253&type=chunk) - For a detailed discussion of legal matters, the report incorporates by reference "Note 10 – Commitments, Contingencies and Guarantees"[137](index=137&type=chunk) - Management does not believe that pending legal and regulatory matters will have a material adverse effect, but notes the difficulty in predicting outcomes and potential losses[244](index=244&type=chunk)[251](index=251&type=chunk) [Risk Factors](index=35&type=section&id=Risk%20Factors) This section states that there have been no material changes to the risk factors that were previously disclosed in the company's 2024 Form 10-K - There have been no material changes to the risk factors previously disclosed in the company's 2024 Form 10-K[138](index=138&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=36&type=section&id=Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Navient's primary market risk is interest rate sensitivity, with a hypothetical 100 basis point increase in interest rates projected to increase annual pre-tax income by $62 million, while a 100 basis point decrease would lower it by $56 million, largely driven by mark-to-market adjustments on derivatives, and the company also hedges foreign currency risk Impact on Annual Earnings from a +/- 100 Basis Point Interest Rate Change (as of March 31, 2025) | (Dollars in millions) | Increase 100 Basis Points | Decrease 100 Basis Points | | :--- | :--- | :--- | | Change in pre-tax net income (before MTM) | $(9) | $19 | | Mark-to-market gains (losses) on derivatives | $71 | $(75) | | **Increase (decrease) in income before taxes** | **$62** | **$(56)** | - The mark-to-market gains and losses are primarily related to derivatives that economically hedge the origination of fixed-rate Private Education Loans but do not qualify for hedge accounting[143](index=143&type=chunk) - The company is exposed to basis risk, as the indices on its floating-rate assets (e.g., 30-day average SOFR) may not move in tandem with the indices on its floating-rate liabilities (e.g., overnight SOFR)[145](index=145&type=chunk)[147](index=147&type=chunk) - Foreign currency exchange risk from foreign-denominated debt is hedged with cross-currency interest rate swaps, resulting in an immaterial impact on earnings from exchange rate changes[144](index=144&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the first quarter of 2025, Navient repurchased 2.6 million shares of its common stock for a total of $35 million under the $1 billion share repurchase program authorized in December 2021, which had $76 million remaining at the end of the quarter Issuer Purchases of Equity Securities (Q1 2025) | (In millions, except per share data) | Total Number of Shares Purchased | Average Price Paid per Share | Total Value ($) | | :--- | :--- | :--- | :--- | | January 2025 | 0.8 | $13.75 | $11.0 | | February 2025 | 1.2 | $13.80 | $16.6 | | March 2025 | 0.6 | $13.48 | $8.1 | | **Total Q1 2025** | **2.6** | **$13.71** | **$35.0** | - As of March 31, 2025, approximately **$76 million** remained available for repurchase under the company's publicly announced plan[149](index=149&type=chunk) [Controls and Procedures](index=40&type=section&id=Controls%20and%20Procedures) Based on an evaluation as of March 31, 2025, Navient's management concluded that the company's disclosure controls and procedures were effective, with no material changes to internal control over financial reporting occurring during the quarter - Management concluded that disclosure controls and procedures were effective as of March 31, 2025[151](index=151&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the first quarter of 2025[152](index=152&type=chunk) [Financial Statements](index=42&type=section&id=Financial%20Statements) This section presents Navient's consolidated financial statements, including balance sheets, income statements, comprehensive income, changes in stockholders' equity, cash flows, and detailed notes, providing a comprehensive view of the company's financial position and performance [Consolidated Balance Sheets](index=42&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, Navient reported total assets of $51.0 billion, a decrease from $51.8 billion at year-end 2024, with total liabilities of $48.4 billion and total stockholders' equity of $2.6 billion, primarily consisting of $30.2 billion in net FFELP Loans and $15.7 billion in net Private Education Loans Consolidated Balance Sheet Summary | (In millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$50,950** | **$51,789** | | FFELP Loans, net | $30,244 | $30,852 | | Private Education Loans, net | $15,690 | $15,716 | | **Total Liabilities** | **$48,361** | **$49,148** | | Total Borrowings | $47,727 | $48,318 | | **Total Equity** | **$2,589** | **$2,641** | [Consolidated Statements of Income](index=43&type=section&id=Consolidated%20Statements%20of%20Income) For the first quarter of 2025, Navient reported a net loss of $2 million, or ($0.02) per diluted share, a significant downturn from the same period in 2024 which saw a net income of $73 million, or $0.64 per diluted share, driven by lower net interest income, reduced other income following divestitures, and losses on derivatives Consolidated Income Statement Summary | (In millions, except per share data) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net interest income | $130 | $152 | | Provisions for loan losses | $30 | $12 | | Total other income | $26 | $135 | | Total expenses | $131 | $187 | | **Net income (loss)** | **$(2)** | **$73** | | **Diluted earnings (loss) per share** | **$(.02)** | **$0.64** | [Consolidated Statements of Comprehensive Income](index=44&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) For the first quarter of 2025, Navient reported a total comprehensive loss of $3 million, comprising the $2 million net loss and an additional $1 million loss from net changes in cash flow hedges, net of tax, compared to a total comprehensive income of $69 million in the first quarter of 2024 Consolidated Comprehensive Income Summary | (In millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income (loss) | $(2) | $73 | | Net changes in cash flow hedges, net of tax | $(1) | $(4) | | **Total comprehensive income (loss)** | **$(3)** | **$69** | [Consolidated Statements of Changes in Stockholders' Equity](index=45&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) Stockholders' equity decreased from $2.641 billion at the end of 2024 to $2.589 billion at the end of Q1 2025, primarily due to capital returns, including $35 million in common stock repurchases and $16 million in cash dividends, partially offset by stock-based compensation expense - Total equity decreased by **$52 million** during Q1 2025, from **$2,641 million** to **$2,589 million**[167](index=167&type=chunk) - Key drivers of the equity decrease were common stock repurchases (**$35 million**) and cash dividends paid (**$16 million**)[167](index=167&type=chunk) [Consolidated Statements of Cash Flows](index=46&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2025, Navient generated $71 million in cash from operating activities and $661 million from investing activities, largely due to loan repayments, while using $780 million in financing activities primarily for debt repayment and capital returns, resulting in a net decrease in total cash and cash equivalents of $48 million for the quarter Consolidated Cash Flow Summary | (In millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $71 | $182 | | Net cash provided by investing activities | $661 | $2,330 | | Net cash used in financing activities | $(780) | $(2,357) | | **Net (decrease) in cash and equivalents** | **$(48)** | **$155** | [Notes to Consolidated Financial Statements](index=47&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures underpinning the consolidated financial statements, covering topics such as the basis of presentation, allowance for loan losses, borrowings, fair value measurements, segment reporting, and legal contingencies, with a significant event being the completion of the Business Processing segment divestiture in February 2025 - Note 2 (Allowance for Loan Losses) provides detailed credit quality indicators, showing a year-over-year increase in 90+ day delinquency rates for both FFELP (**6.6% to 10.2%**) and Private Education Loans (**2.1% to 2.6%**)[183](index=183&type=chunk)[192](index=192&type=chunk) - Note 3 (Borrowings) details the company's **$47.7 billion** in total borrowings as of March 31, 2025, the majority of which are secured borrowings related to securitizations and ABCP facilities[208](index=208&type=chunk) - Note 4 (Divestitures) confirms the sale of the government services businesses in February 2025 for net consideration of **$44 million**, completing the exit from the Business Processing segment[214](index=214&type=chunk) - Note 11 (Segment Reporting) provides a full reconciliation of GAAP net income to Core Earnings net income, showing the impact of derivative accounting and goodwill adjustments[276](index=276&type=chunk)[278](index=278&type=chunk)[280](index=280&type=chunk)

Core Insights - Navient Corporation (NAVI) reported first-quarter 2025 adjusted earnings per share (EPS) of 28 cents, exceeding the Zacks Consensus Estimate of 19 cents, but down from 63 cents in the prior-year quarter [1] - The results were primarily driven by lower expenses, although there was an increase in provision for loan losses and a decrease in net interest income (NII) [1][8] - The company's GAAP net loss was $2 million compared to a net income of $73 million in the prior-year quarter [1] Financial Performance - NII decreased by 11.7% year over year to $144 million, surpassing the Zacks Consensus Estimate by 7.4% [2] - Total other income fell 80.1% year over year to $26 million [2] - Provision for loan losses rose to $30 million from $12 million in the prior-year quarter [2] - Total expenses decreased by 29.9% year over year to $131 million [2] Segment Performance - Federal Education Loans segment generated a net income of $24 million, down 40% year over year, with net FFELP loans at $30.2 billion, a 1.9% sequential decline [3] - Consumer Lending segment reported a net income of $46 million, a decrease of 36.9% from the year-ago quarter, with a private education loan delinquency rate greater than 30 days at 6.4%, up from 5% in the prior-year quarter [3] - Business Processing segment net income was $2 million compared to $6 million in the year-ago quarter [4] Liquidity and Capital Management - As of March 31, 2025, the company had $642 million in total unrestricted cash and liquid investments [6] - To meet liquidity needs, NAVI plans to utilize various sources, including cash, predictable operating cash flows, and may draw down on secured loan facilities or issue additional debt [5] Capital Distribution Activities - In the first quarter, the company paid out $16 million in common stock dividends and repurchased shares for $35 million, with $76 million remaining in share-repurchase authority as of March 31, 2025 [7] Strategic Outlook - The company is recognized as a significant holder of private education loans, with diversified business segments expected to support revenue growth [8] - Strategic actions to control expenses are anticipated to bolster financial performance in the upcoming periods, despite concerns over lower NII [8]

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]

HERNDON, Va., April 30, 2025 (GLOBE NEWSWIRE) -- Navient (Nasdaq: NAVI) today posted its 2025 first quarter financial results. Complete financial results are available on the company’s website at Navient.com/investors. The materials will also be available on a Form 8-K on the SEC’s website at www.sec.gov. Navient will hold a live audio webcast today, April 30, 2025, at 8 a.m. ET, hosted by David Yowan, president and CEO, and Joe Fisher, CFO. Analysts and investors who wish to ask questions are requested to ...