Financial Data and Key Metrics Changes - In Q4 2025, core earnings per share were reported at $0.02, while the full-year core loss per share was $0.35 [13] - Total expenses for 2025 were $438 million, a decrease of nearly 50% compared to 2023, with Q4 total core operating expenses at $88 million, a 40% improvement year-over-year [24][26] - The adjusted tangible equity ratio stood at 9.1% [25] Business Line Data and Key Metrics Changes - Earnest achieved its highest-ever refi loan origination volume of $634 million in Q4 2025, bringing full-year refi originations to $2.1 billion, more than doubling from the previous year [8][15] - In-school lending originated $401 million in new loans in 2025, marking a significant increase [9] - Consumer lending segment net income for Q4 was $25 million, down from $37 million in Q4 2024, primarily due to lower outstanding balances [18] Market Data and Key Metrics Changes - The delinquency rate for private loans increased from 2.48% in Q3 to 2.24% in Q4, while 31+ day delinquency rates rose from 6.1% to 6.3% [19] - The total delinquency rate for federal education loans improved slightly from Q3, declining from 18.1% to 17.5% [21] Company Strategy and Development Direction - The company is targeting total loan originations of $4 billion in 2026, representing a growth of approximately 60% over 2025 [9][26] - A shift towards a holding company management structure is underway, with a focus on reducing central costs and improving operational efficiency [11][12] - The company continues to invest in capabilities at Earnest and aims to leverage existing capital for growth [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's prospects for 2026, citing strong momentum in loan origination and improved capital efficiency [12][17] - The macroeconomic environment remains a concern, with management noting a deterioration in the economic outlook impacting delinquency rates [32][69] Other Important Information - The company completed its fourth securitization of the year in Q4 2025, totaling nearly $2.2 billion in term ABS financing [25] - Share repurchases totaled 2.1 million shares at an average price of $12.67, with a total of $41 million returned to shareholders through repurchases and dividends [25][26] Q&A Session Summary Question: What prompted the increase in reserves for the private legacy portfolio? - Management indicated that a comprehensive review of assumptions regarding life of loan cash flows led to adjustments, with a significant portion of the provision related to the macroeconomic scenario and delinquency trends [30][32] Question: What is the outlook for the personal loan product? - The personal loan product is still in a pilot phase, with initial results being encouraging, but it is not expected to impact financials significantly in 2026 [41] Question: What are the macro assumptions underpinning the guidance? - The guidance reflects consensus macroeconomic assumptions for unemployment and interest rates, which will be provided offline [62] Question: What is driving the deterioration in the private legacy portfolio? - Management noted that various factors, including macroeconomic conditions and borrower challenges, have contributed to the higher delinquency rates in the legacy portfolio [68][69]

4Q 2025 Earnings Call Presentation Confidential and proprietary information © 2026 Navient Solutions, LLC. All rights reserved. 1 Delivering Value to Shareholders Enhance the value of our growth businesses Maximize the cash flows from our loan portfolios Continuously simplify the business and increase efficiency Maintain a strong balance sheet and distribute excess capital • Invest in capabilities to grow high-quality loan originations that generate targeted returns, and explore opportunities to deepen rela ...

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Financial Data and Key Metrics Changes - The company reported core earnings per share of $0.29 for the quarter, adjusting for significant items, while the core loss per share was $0.84 [12][4] - The expected life of loan cash flows increased by approximately $195 million due to lower prepayment speeds and updated assumptions [9][10] - The company announced a new share repurchase authorization of $100 million to enhance shareholder value [4] Business Line Data and Key Metrics Changes - Total loan originations in the Consumer Lending segment grew to $788 million, a 58% increase year-over-year, driven by over 100% growth in refinance originations [15] - The Federal Education Loan segment's net interest margin for Q3 was 84 basis points, up 14 basis points from the previous quarter [13] - In-school lending reached a record high of $260 million, marking the highest quarterly volume in the company's history [5] Market Data and Key Metrics Changes - The company experienced strong investor demand for asset-backed securities (ABS), completing its fourth term ABS financing of the year [11][20] - The total reserve build in the quarter was driven by changes in borrower behavior, elevated delinquency rates, and macroeconomic outlook changes [17][18] Company Strategy and Development Direction - The company is focused on aggressively reducing expenses, exceeding its initial goal of $400 million in run-rate expense reductions ahead of schedule [6][8] - The company aims to capitalize on growth opportunities in the refinance market, particularly as federal loan policies become less attractive to borrowers [88][90] - The company plans to provide an update on its growth strategy for the Earnest business on November 19th [11] Management's Comments on Operating Environment and Future Outlook - Management noted that delinquency rates are improving but remain elevated, reflecting ongoing credit trends and lower prepayment activity [12][25] - The outlook for Q4 is a range of $0.30 to $0.35 per share, with expectations of continued strong origination growth [13][21] - Management emphasized the importance of macroeconomic conditions and public policy changes in shaping future performance [71][72] Other Important Information - The company has completed its final obligations under the Transition Services Agreement, allowing for further expense reductions [7][18] - The allowance for loan loss, excluding expected future recoveries, stands at $765 million for the entire education loan portfolio [17] Q&A Session Summary Question: Can you discuss the provision and delinquencies noted on the call? - Management explained that the provision expense reflects incremental defaults due to changes in borrower repayment behavior and macroeconomic conditions, particularly affecting legacy portfolios [24][25] Question: Where within consumer lending are you seeing credit weakness? - The majority of credit weakness is concentrated in legacy portfolios, with some changes in newer products but not as significant [36][38] Question: What is the breakdown of the $151 million provision? - Management indicated that the macroeconomic condition piece is relatively small, with the majority driven by trends in the private legacy portfolio [84][86] Question: How do you view the competition going forward? - The company believes it is well-positioned to take advantage of opportunities in the market, particularly in graduate loan originations and refinancing [96][98] Question: What is the potential opportunity in the Grad PLUS market? - Management estimates the Grad PLUS market to be around $14 billion, with expectations of significant expansion opportunities [103]

Financial Performance - Core Earnings per Share was $(0.84), but adjusted for significant items, it was $0.29[4] - The company reported a GAAP net loss of $(86) million and a Core Earnings net loss of $(83) million[15, 42] - Total expenses for the quarter were $109 million, compared to $202 million a year ago, reflecting increased efficiency[28, 30] Strategic Actions and Cost Reductions - The company is on track to exceed its original operating expense reduction target of $400 million[6, 11] - Phase 1 strategic actions focused on cost reductions are expected to result in expense reductions exceeding $400 million[11] - Total Shared and Corporate Expense is adjusted to $204 million after accounting for various expense reductions[12] Loan Portfolio and Originations - Consumer Lending originated $788 million of Private Education Loans, a 58% increase compared to the year-ago quarter[19] - Refinance loan originations were $528 million, compared to $262 million in the same quarter of the previous year[19] - The Federal Education Loan portfolio is projected to generate $1.9 billion through the end of 2029[57] Allowance for Loan Losses - The total provision expense was $168 million in 3Q25[24] - This includes $13 million for the FFELP portfolio and $155 million for the Private Education portfolio[24]

Financial Data and Key Metrics Changes - Total assets reached $10.4 billion as of Q3 2025, with total investment securities increasing by $336.8 million to $2.3 billion [14][15] - Net interest income was $94.2 million, up $3.7 million, driven by higher average rates on loans and securities [17] - Non-performing assets increased to $140 million, or 1.3% of total assets, compared to $98 million, or 0.9% in the prior quarter [21] Business Line Data and Key Metrics Changes - Loans declined by 3.4% quarter over quarter, with a total gross loan amount of $6.9 billion, primarily due to increased prepayments and the sale of a large substandard loan [9][15] - Core deposits increased by $59.4 million, while total deposits remained stable at $8.3 billion [15] - Non-interest income was $17.3 million, while non-interest expense was $77.84 million, leading to an efficiency ratio of 69.84% [17][19] Market Data and Key Metrics Changes - International banking strengthened its presence across LATAM, with approximately 50% of new accounts opened in Q3 originating from countries like Argentina and Guatemala [8] - The company expects loan production and purchases of syndications to be partially offset by reductions in criticized assets and payoffs, with net loan growth projected between $125 million to $175 million for Q4 [25] Company Strategy and Development Direction - The primary focus for the quarter was on asset quality over loan growth, with plans to address the increase in non-performing asset levels [6][10] - The company launched an expense reduction initiative aiming for savings of $2 million to $3 million per quarter starting in 2026 [28] - Leadership changes in commercial banking were announced to strengthen market presence and business development efforts [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the franchise and the opportunities ahead, emphasizing a proactive approach to credit risk management [34] - The company anticipates a decrease in expenses in Q4, projecting non-interest expenses to be in the range of $74 million to $75 million [26] - Management highlighted the importance of timely identification and resolution of credit issues, indicating a more aggressive stance on downgrades [88] Other Important Information - The Board declared a quarterly cash dividend of $0.09 per share, reinforcing confidence in the company's long-term outlook [13] - The company intends to resume share buybacks post-earnings when the blackout period ends [13] Q&A Session Summary Question: What is the outlook on credit and when can the company expect to return to a sustainable ROA? - Management indicated that Q3 was the peak for portfolio evaluations and expects a better path for resolution in Q4, with a focus on early identification of credit issues [39][41] Question: What will drive the expected decrease in net interest margin for Q4? - The decrease is attributed to the impact of recent rate cuts and the timing of asset repricing, with expectations for a normalized net interest margin [45][46] Question: Is the company considering strategic alternatives given the current M&A market? - Management stated the focus remains on executing current strategies and achieving desired returns, with evaluations of opportunities as they arise [50] Question: What is the expected loan growth and syndication activity moving forward? - Management expects organic loan growth to be between $125 million to $175 million in Q4, with a focus on participating in syndications [25][56] Question: What is the outlook for realized loss content over the next couple of quarters? - Management anticipates charge-off activity to stabilize, with specific reserves already established for potential losses [63][64]

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Core Insights - Zynex, Inc. reported a net revenue of $26.6 million for Q1 2025, a decrease from $46.5 million in Q1 2024, primarily due to a temporary suspension of payments from its largest insurance customer, Tricare [4][6] - The company experienced a net loss of $10.4 million, or $0.33 per share, compared to a net income of $10,000 in the same quarter last year [6][18] - Zynex plans to submit its FDA application for the NiCO laser pulse oximeter soon, which is expected to drive new customer acquisition and diversify its product offerings [3] Management Commentary - The company noted a 3% year-over-year decrease in total orders, attributed to a 39% reduction in sales force headcount, but expressed optimism about the productivity of the remaining sales representatives [2] - Zynex is appealing the payment suspension from Tricare and expects a response by June 2025 [2] Financial Performance - Gross profit for Q1 2025 was $18.2 million, representing 69% of revenue, down from 80% in Q1 2024, impacted by the Tricare payment suspension [4] - Sales and marketing expenses decreased by 28% to $16.9 million, while general and administrative expenses rose to $14.4 million from $13.3 million year-over-year [5] Cash Flow and Guidance - Cash flows from operations for Q1 2025 were negative at $10.5 million, with cash and cash equivalents at $23.9 million as of March 31, 2025 [7] - The company anticipates Q2 2025 net revenue of at least $27 million and expects to improve loss per share to ($0.20) or better [8] Balance Sheet Highlights - As of March 31, 2025, Zynex had total assets of $105.8 million, down from $122.1 million at the end of 2024 [15][17] - Current liabilities were $16.3 million, with total liabilities amounting to $85 million [16][17]