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Financial Performance - Third-quarter 2025 net loss was $86 million ($0.87 diluted loss per share), compared to a net loss of $2 million ($0.02 diluted loss per share) in the same quarter last year, representing a significant increase in losses [47][53]. - Core Earnings net loss for the third quarter of 2025 was $83 million ($0.84 diluted loss per share), compared to a profit of $160 million ($1.45 diluted Core Earnings per share) in the prior year [48]. - Net income for the third quarter of 2025 was $35 million, compared to $27 million in the same quarter of 2024, reflecting a 30% increase [67]. - The net loss for Q3 2025 was $86 million, compared to a net loss of $2 million in Q3 2024 [175]. - For the nine months ended September 30, 2025, net income was a loss of $75 million, compared to a net income of $107 million for the same period in 2024 [175]. Loan Originations and Portfolio - Navient owns and manages a portfolio of $28.9 billion in federally guaranteed Federal Family Education Loan Program (FFELP) Loans [21]. - The company originated $1.8 billion in Private Education Loans in the first nine months of 2025, a 73% increase from $1.0 billion a year ago [22]. - Navient's total originations nearly doubled to $1.8 billion in the first nine months of 2025 compared to the previous year [36]. - The company originated $788 million in Private Education Loans, marking a 58% increase compared to the previous year [50]. - The total acquisitions (originations and purchases) for Private Education Loans in the three months ended September 30, 2025, were $687 million, compared to $407 million in the same period of 2024 [100]. Loan Loss Provisions - The provision for loan losses totaled $168 million, with $155 million attributed to Consumer Lending, reflecting elevated delinquency balances and macroeconomic forecasts [50][54]. - Provisions for loan losses increased by $168 million, from $68 million to $236 million, with the provision for Private Education Loan losses rising from $74 million to $207 million [61]. - The provision for loan losses in the third quarter of 2025 was $13 million, compared to $(5) million in the same quarter of 2024, indicating a significant increase due to elevated delinquency balances [67]. - Provisions for loan losses increased significantly to $236 million in 2025 from $68 million in 2024 [186]. Shareholder Returns - Total capital returned to shareholders in Q3 2025 was $42 million, down from $50 million in Q3 2024 [28]. - In Q3 2025, Navient repurchased 2.0 million shares, resulting in a 2% reduction in shares outstanding [28]. - The company repurchased $26 million of common shares and authorized a new $100 million share repurchase program [50]. - The company repurchased a total of 2.0 million shares at an average price of $13.19 during the third quarter of 2025 [160]. - The company has a remaining authorization of approximately $26 million under its share repurchase program as of September 30, 2025 [160]. Operating Expenses - Operating expenses were $105 million, a decrease of 43% from $184 million in the prior year [52]. - Operating expenses decreased by $200 million, primarily due to a decline in business processing expenses from the sale of the government services and healthcare services businesses [61]. - Total expenses for the quarter were $110 million, including direct operating expenses of $61 million and unallocated shared services expenses of $44 million [123]. - Total expenses for the nine months were $341 million, with direct operating expenses accounting for $189 million [127]. Interest Income and Margins - Total interest income decreased by 18% to $781 million in the third quarter of 2025, down from $948 million in the same quarter of 2024 [52]. - Net interest margin for the Federal Education Loans segment was 0.84%, while the Consumer Lending segment reported a net interest margin of 2.39% [50]. - Net interest income for the Consumer Lending segment decreased by 20% to $98 million in Q3 2025 [78]. - Total interest income for the three months ended September 30, 2025, was $781 million, with education loans contributing $760 million [123]. Delinquencies and Loan Performance - Delinquencies greater than 90 days increased to $2.5 billion from $1.9 billion year-over-year [67]. - Private Education Loan delinquencies greater than 90 days increased to $433 million, up $56 million from $377 million [80]. - The delinquency rate for FFELP Loans greater than 90 days increased to 10.5% as of September 30, 2025, compared to 8.7% as of December 31, 2024 [101]. - Loans delinquent greater than 90 days rose to $2,539 million (10.5%) as of September 30, 2025, compared to $1,860 million (7.3%) on September 30, 2024 [204]. Capital and Debt Management - As of September 30, 2025, the company has total unsecured debt of $5.3 billion, with three credit rating agencies rating it below investment grade [108]. - The company expects to fund $0.5 billion of senior unsecured notes maturing in the short term and $4.8 billion maturing in the long term through various sources, including cash on hand and predictable operating cash flows [109]. - The company reported unrestricted cash of $571 million as of September 30, 2025, down from $1.143 billion a year earlier [111]. - The company’s total secured borrowings amount to $41.079 billion as of September 30, 2025, compared to $43.306 billion at the end of 2024 [117]. Strategic Actions and Restructuring - Navient reduced its headcount by over 80% since the beginning of 2024 as part of its strategic actions to simplify the company [33]. - The company completed the divestiture of its Business Processing segment, selling its healthcare services business in September 2024 and government services business in February 2025 [23]. - The company recognized $46 million in restructuring and reorganization charges in 2024 and the first nine months of 2025 [33]. - Restructuring and other reorganization expenses decreased by $14 million, attributed to lower severance-related costs [96]. Market Opportunities - The passage of the "Big Beautiful Bill" on July 3, 2025, is expected to increase demand for private in-school graduate loans, presenting growth opportunities for Navient [40].

Core Insights - Navient Corporation (NAVI) reported third-quarter 2025 adjusted earnings per share (EPS) of 29 cents, exceeding the Zacks Consensus Estimate of 18 cents, and up from 28 cents in the prior-year quarter [1][8] - The results were driven by an increase in net interest income (NII) and a significant reduction in expenses, although a decline in other income and higher provisions for loan losses posed challenges [1][10] Financial Performance - NII increased by 4.2% year over year to $146 million, surpassing the Zacks Consensus Estimate by 2.8% [3] - Total other income fell sharply by 92.6% year over year to $23 million [3] - Provisions for loan losses rose to $168 million from $42 million in the prior-year quarter, reflecting elevated delinquency rates and macroeconomic factors [2][3][8] - Total expenses decreased by 67.8% year over year to $110 million [3][8] Segment Performance - Federal Education Loans segment generated a net income of $35 million, up 29.6% year over year, with net FFELP loans at $28.9 billion, down 8.1% sequentially [4] - Consumer Lending segment reported a net loss of $76 million compared to a net profit of $27 million in the year-ago quarter, with a delinquency rate greater than 30 days at 6.1%, up from 5.3% [4][5] Liquidity and Capital Management - As of September 30, 2025, the company had $571 million in total unrestricted cash and liquid investments [7] - NAVI plans to utilize various sources for liquidity, including cash, predictable operating cash flows, and potential debt issuance [6] Capital Distribution Activities - In Q3, the company paid $16 million in common stock dividends and repurchased shares for $26 million [9] - A new $100 million share-repurchase program was authorized, in addition to approximately $26 million remaining under the prior authorization [9] Strategic Outlook - The company is positioned as a significant holder of private education loans, with diversified business segments expected to support revenue growth [10] - Strategic actions to control expenses are anticipated to bolster financial performance in the near term, despite concerns over higher provisions for loan losses [10]

Core Insights - Navient (NAVI) reported quarterly earnings of $0.29 per share, exceeding the Zacks Consensus Estimate of $0.18 per share, and showing a slight increase from $0.28 per share a year ago, resulting in an earnings surprise of +61.11% [1] - The company generated revenues of $146 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.64% and up from $140 million year-over-year [2] Earnings Performance - Over the last four quarters, Navient has exceeded consensus EPS estimates three times, indicating a positive trend in earnings performance [2] - The company had a previous earnings expectation of $0.27 per share but reported only $0.21, resulting in a surprise of -22.22% [1][2] Future Outlook - The sustainability of Navient's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3] - Current consensus EPS estimate for the upcoming quarter is $0.35 on revenues of $140.07 million, and for the current fiscal year, it is $0.98 on revenues of $556.98 million [7] Industry Context - The Financial - Consumer Loans industry, to which Navient belongs, is currently ranked in the top 27% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Navient's stock performance [5][6]

Core Viewpoint - Navient has released its financial results for the third quarter of 2025, indicating ongoing efforts to manage the cost of higher education for students and families [1]. Financial Results - The complete financial results for the third quarter of 2025 are available on Navient's investor website [1]. - A live audio webcast discussing these results will be hosted by the CEO and CFO on October 29, 2025, at 8 a.m. ET [1]. Company Overview - Navient focuses on helping students and families manage higher education costs through responsible lending, flexible refinancing, and trusted servicing [3]. - The company emphasizes creating long-term value for customers and investors, supported by decades of portfolio management expertise [3].

Financial Performance - Navient reported a GAAP net loss of $86 million, translating to a diluted loss per share of $0.87 for Q3 2025[3]. - Core Earnings net loss was $83 million, with a diluted loss per share of $0.84[3]. - Net income for Q3 2025 was $(86) million, a decrease from $14 million in Q2 2025 and $(2) million in Q3 2024[19]. - Diluted earnings per share for Q3 2025 was $(0.87), compared to $0.13 in Q2 2025 and $(0.02) in Q3 2024[21]. - The company reported a significant increase in net income (loss) before income tax expense to $(117) million in Q3 2025, down from $18 million in Q2 2025 and $12 million in Q3 2024[21]. - Net loss for the nine months ended September 30, 2025, was $75 million, or $0.75 diluted loss per share, compared to net income of $107 million, or $0.95 diluted earnings per share for the same period last year[29]. Loan Loss Provisions - The company recorded a provision for loan losses of $168 million, with $155 million attributed to Consumer Lending due to elevated delinquency balances[3]. - Provisions for loan losses increased significantly to $168 million in Q3 2025, compared to $37 million in Q2 2025 and $42 million in Q3 2024[21]. - The allowance for loan losses increased to $186 million for FFELP Loans and $406 million for Private Education Loans as of September 30, 2025[23]. - The total provision for loan losses was $68 million, with a charge-off of $301 million during the period[39]. - The provision for FFELP Loan losses was $29 million in the current period, up from $(6) million in the year-ago period, reflecting elevated delinquency balances[29]. Interest Income and Expenses - Total interest income for Q3 2025 was $781 million, a slight increase from $778 million in Q2 2025 but a decrease of $167 million (18%) from $948 million in Q3 2024[21]. - Total interest income for the quarter ended September 30, 2025, was $781 million, with education loans contributing $760 million[54]. - The total interest expense for the quarter was $639 million, leading to a net interest income (loss) of $142 million before provisions[54]. - Net interest income after provisions for loan losses was $(26) million in Q3 2025, down from $91 million in Q2 2025 and $78 million in Q3 2024[21]. - Net interest income decreased by $1 million primarily due to the paydown of loan portfolios and decreasing interest rates, despite a $54 million decline in net premium amortization[31]. Share Repurchase and Equity - The company repurchased $26 million of common shares and authorized a new $100 million share repurchase program[4]. - The company repurchased 2.0 million shares of common stock for $26 million in Q3 2025, with $26 million of unused share repurchase authority remaining[43]. - The total stockholders' equity before treasury stock was $7.974 billion as of September 30, 2025, down from $8.071 billion a year prior[23]. Asset and Liability Management - Total assets decreased to $49.306 billion as of September 30, 2025, down from $53.440 billion a year earlier[23]. - Total liabilities were $46.867 billion as of September 30, 2025, compared to $50.746 billion a year prior[23]. - The company’s cash and cash equivalents decreased to $571 million as of September 30, 2025, down from $1.143 billion a year earlier[23]. - The company has $2.8 billion of unencumbered tangible assets, including $1.3 billion in unencumbered education loans[46]. Delinquency and Charge-Off Rates - The net charge-off rate for Private Education Loans increased to 2.48% in Q3 2025, up from 1.87% in Q3 2024[9][10]. - Private Education Loan delinquencies as a percentage of loans in repayment increased to 6.1% as of September 30, 2025, compared to 5.3% a year earlier[33]. - Net charge-offs for the quarter were $105 million, with $9 million for FFELP loans and $96 million for Private Education loans, resulting in a net charge-off percentage of 0.15% and 2.50% respectively[37]. Business Operations and Strategic Focus - The company plans to continue focusing on market expansion and new product development to drive future growth[66]. - The financial results indicate a need for strategic adjustments in response to the significant losses reported in the quarter[54]. - Core Earnings adjustments to GAAP resulted in an increase of $9 million for the quarter, primarily due to derivative accounting and goodwill adjustments[56].

HERNDON, Va., Oct. 27, 2025 (GLOBE NEWSWIRE) -- Navient (Nasdaq: NAVI) today announced its designation as a Champion of Board Diversity by The Forum of Executive Women, the Greater Philadelphia Region’s premier women’s professional organization. The Forum of Executive Women annually honors the top public companies in the region with 30% or more women on their respective boards. This is the eleventh time that Navient has been recognized as a Champion of Board Diversity. The Forum of Executive Women's annual ...

Core Insights - Navient Corporation (NAVI) is set to report its third-quarter 2025 results on October 29, with expectations of revenue growth but a decline in earnings year-over-year [1][9] Revenue Expectations - Quarterly revenues are projected to rise by 1.6% to $142.2 million, while earnings per share (EPS) are expected to drop by 35.7% to 18 cents [3][9] - The Consumer Lending segment is anticipated to show a decent rise in revenues due to solid consumer loan demand, while the Federal Education Loans segment may face pressure from lower prepayment levels and subdued originations [4] - The consensus estimate for net interest income (NII) is $142.2 million, reflecting an 8.6% sequential increase, with specific estimates of $50.3 million for Federal Education loans (up 2.7%) and $107.8 million for consumer lending (down 4.6%) [5] - Total non-interest income is estimated to decline by 27.5% sequentially to $23.9 million [6] Expense Management - Ongoing cost-control initiatives are expected to enhance operating efficiency and reduce expenses, aided by strategic actions such as divestitures and workforce reductions [7][9] Earnings Surprise History - NAVI has a notable earnings surprise history, having outperformed estimates in three of the last four quarters, with an average earnings surprise of 17.97% [2] Earnings ESP and Zacks Rank - The Earnings ESP for Navient is -3.44%, indicating a lower likelihood of an earnings beat, and the company currently holds a Zacks Rank of 3 (Hold) [8][10]

Core Viewpoint - Navient will host an audio webcast to discuss its third quarter 2025 financial results on October 29, 2025, at 8:00 a.m. Eastern Time [1] Company Information - Navient (Nasdaq: NAVI) assists students and families in managing the costs of higher education through responsible lending, flexible refinancing, and trusted servicing oversight [3] - The company aims to create long-term value for customers and investors, leveraging decades of portfolio management expertise [3] - Navient promotes a culture of belonging among its employees, emphasizing support and pride in delivering meaningful outcomes [3] Financial Reporting - The financial results and presentation slides will be available on the company's investor website by 7:00 a.m. on the same day as the webcast [1] - Results will also be filed with the SEC on a Form 8-K, accessible at SEC.gov [2]

Core Insights - Navient has been recognized for the fourth consecutive year as a Best Place to Work for Working Daughters, highlighting its commitment to supporting caregivers in the workplace [1] - The growing segment of caregivers, now one in three U.S. workers, emphasizes the importance of caregiver-friendly policies for employee wellbeing and retention [2] - Navient's total wellbeing programs aim to provide holistic support for employees, addressing both personal and professional growth, including dependent care assistance and mental health programs [3] Company Overview - Navient specializes in helping students and families manage the costs of higher education through responsible lending, flexible refinancing, and trusted servicing oversight [3] - The company focuses on creating long-term value for customers and investors while fostering a culture of belonging among its employees [3]