Nelnet(US:NNI)2025-11-06 21:21Financial Performance - For Q3 2025, total interest income was $205,958,000, a decrease of 14.3% from $240,483,000 in Q3 2024[6] - Net interest income after provision for loan losses increased to $88,813,000, up 64.1% from $54,044,000 in Q3 2024[6] - Net income attributable to Nelnet, Inc. was $106,684,000, compared to $2,388,000 in Q3 2024, marking a significant turnaround[6] - The Company reported a basic and diluted earnings per share of $2.94 for Q3 2025, compared to $0.07 in Q3 2024[6] - GAAP net income attributable to Nelnet, Inc. for Q3 2025 was $106.7 million, compared to $2.4 million in Q3 2024, representing a significant increase[11] - Non-GAAP net income attributable to Nelnet, Inc., excluding derivative market value adjustments, was $107.3 million for Q3 2025, up from $12.4 million in Q3 2024[11] - Nelnet Bank generated a net income of $6.1 million in Q3 2025, recovering from a loss of $4.8 million in Q3 2024[17] Revenue Growth - Loan servicing and systems revenue rose to $151,052,000, reflecting a 39.5% increase compared to $108,175,000 in Q3 2024[6] - The Company’s solar construction revenue was $5,738,000 for Q3 2025, a significant increase from $1,259,000 in Q2 2025[6] - The Company recognized $32.9 million of non-recurring revenue in Q3 2025 from a government servicing contract modification[21] - Venture capital investments generated a pre-tax gain of $22.4 million during Q3 2025 due to an equity raise by an unaffiliated technology company[23] Assets and Liabilities - Total assets as of September 30, 2025, were $13,876,682,000, a slight increase from $13,777,753,000 as of December 31, 2024[7] - Total liabilities decreased to $10,289,987,000 from $10,478,636,000 as of December 31, 2024, indicating improved financial stability[7] Strategic Investments - The Company is actively expanding its private education and consumer loan portfolios as part of its growth strategy[9] - The Company continues to pursue strategic investments in areas such as renewable energy and venture capital to diversify its business[9] - The Company announced the acquisition of Finastra's Canadian student loan servicing business for approximately $93 million, expected to close in Q1 2026[24] Operating Expenses - Total operating expenses for the three months ended September 30, 2025, were $225,736, compared to $219,291 for the three months ended June 30, 2025[27][28] - Total expenses for the three months ended September 30, 2025, were $294,872, an increase from $285,318 for the three months ended June 30, 2025[27][28] - Total operating expenses for the nine months ended September 30, 2024, were $873.64 million, compared to $744.67 million in the previous year, reflecting an increase of 17.3%[31] Loan Performance - Nelnet sold $203.3 million of consumer loans in Q3 2025, resulting in a negative provision expense of $28.9 million[22] - The allowance for loan losses as a percentage of the ending loan balance for private education loans was 4.81% as of September 30, 2025, down from 5.02% as of December 31, 2024[39] - The company reported a negative provision for loan losses of $3,563 for the three months ended September 30, 2025, compared to a positive provision of $17,930 for the three months ended June 30, 2025[27][28] Other Income and Expenses - The company reported a net loss from solar investments of $10.88 million for the three months ended September 30, 2025, compared to a loss of $1.50 million in the previous quarter and a loss of $11.24 million in the same quarter of 2024[35] - Total other income for the three months ended September 30, 2025, was $35.73 million, compared to $22.98 million for the previous quarter and $15.71 million for the same quarter in 2024, reflecting a significant increase[35] Borrower Statistics - The number of government borrowers serviced as of September 30, 2025, was 12,387,665, down from 12,694,386 as of June 30, 2025[33] - The number of remote hosted borrowers increased to 2,839,493 as of September 30, 2025, compared to 2,056,358 as of June 30, 2025[33]