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 Performance - Navient reported a GAAP net income of $14 million and core earnings net income of $21 million for 2Q 2025[12] - The company's core EPS is projected to be $0.95 - $1.05, including net expenses of $0.24 per share related to transition agreements[13] - Navient distributed $40 million to shareholders through dividends and share repurchases in 2Q 2025[31] Strategic Actions and Cost Reductions - Navient is on track to achieve 80% of its expense reduction target before 2026, aiming for approximately $400 million in expense reductions[9, 8] - Total expenses for 2Q 2025 were $100 million, compared to $182 million in 2Q 2024, reflecting cost reduction efforts[26, 24] - The company has reduced employee headcount by more than 80% from YE2023 through 2Q25 as part of its strategic actions[4] Segment Results - Federal Education Loans generated a net income of $30 million in 2Q 2025, compared to $28 million in 2Q 2024[14] - Consumer Lending reported a net income of $26 million in 2Q 2025, compared to $60 million in 2Q 2024, with $500 million in Private Education Loan originations[15, 16] - The Business Processing segment is no longer providing services following divestitures, with transition services expected to be mostly complete by the end of 2025[21] Loan Portfolio and Cash Flows - Total projected loan portfolio undiscounted cash flows after repayment of secured financings are $11.8 billion over the next 20 years[49] - The FFELP portfolio has projected cash flows of $2.1 billion through the end of 2029 and $5.4 billion over the next 20 years, assuming a 7% CPR for Stafford Loans and 5% for Consolidation Loans[52] - The Private Education Loan portfolio has projected cash flows of $3.5 billion through the end of 2029 and $6.4 billion over 20 years, assuming a 10% CPR[55]

2024 Financial Results and Loan Origination - Private Education Loan originations reached $363 million in 4Q24, a 63% increase year-over-year[3] - Refinance Loan originations in 4Q24 were $322 million, compared to $191 million in 4Q23[4] - In-school Loan originations in 4Q24 were $41 million, up from $32 million in 4Q23[4] - For the full year 2024, Private Education Loan originations totaled $14 billion[4] - Full year 2024 Refinance Loan originations were $1034 billion, a 60% increase from $647 million in 2023[3,4] - Full year 2024 In-school Loan originations were $366 million, compared to $324 million in 2023[4] Strategic Actions and Efficiency - The company achieved its 2024 objectives related to outsourcing servicing, divesting business processing businesses, and streamlining its structure[3] - Employee headcount was reduced by approximately 50% from YE2023 to YE2024[6] ABS Issuance and Portfolio Characteristics - Private Education Loan ABS issuances are typically $500 million or greater[7] - The company refinanced more than $23 billion in student loans since 2014[14]