Core Insights - Navient Corporation (NAVI) reported fourth-quarter 2025 adjusted earnings per share (EPS) of 39 cents, exceeding the Zacks Consensus Estimate of 31 cents, compared to 25 cents in the prior-year quarter [1][9] Financial Performance - The results were supported by lower expenses and a slight decline in provisions for loan losses, but faced challenges from a decrease in net interest income (NII) and other income, leading to a nearly 10.8% drop in shares during early trading [2][9] - The adjusted loss per share for 2025 was 35 cents, wider than the Zacks Consensus Estimate of a loss of 6 cents per share, contrasting with the adjusted EPS of $2 reported in the previous year [4] - The company reported a GAAP net loss of $80 million for 2025, compared to a net income of $131 million in the prior year [4] Income and Expenses - NII declined 3.7% year over year to $129 million in the fourth quarter, missing the Zacks Consensus Estimate by 3.3% [5] - Total other income decreased 48.3% year over year to $15 million [5] - Total expenses decreased 34.2% year over year to $100 million [6] Segment Performance - Federal Education Loans segment generated a net income of $27 million, significantly up from $10 million in the year-ago quarter [7] - Consumer Lending segment reported a net income of $25 million, down 32.4% from the year-ago quarter [7] - The private education loan delinquency rate greater than 30 days was 6.3%, slightly up from 6.1% in the prior-year quarter [8] Liquidity and Capital Distribution - As of Dec. 31, 2025, the company had $637 million in total unrestricted cash and liquid investments [11] - In the fourth quarter, NAVI paid $15 million in common stock dividends and repurchased shares of common stock for $26 million [12] Strategic Outlook - The company is expected to utilize various sources to meet liquidity needs, including cash and investment portfolio, predictable operating cash flows, and potential issuance of asset-backed securities [10] - Strategic actions to control expenses are anticipated to support financials in the upcoming period, despite concerns over weaker NII [13]