Core Insights - Navient Corporation (NAVI) reported second-quarter 2025 adjusted earnings per share (EPS) of 21 cents, missing the Zacks Consensus Estimate of 29 cents and down from 48 cents in the prior-year quarter [1][8] - The results were impacted by a decrease in net interest income (NII) and other income, alongside higher provisions for loan losses, although lower expenses provided some support [2][10] Financial Performance - Navient's GAAP net income was $14 million, compared to $36 million in the prior-year quarter [2] - NII declined 3.7% year over year to $131 million, missing the Zacks Consensus Estimate by 9.2% [3] - Total other income decreased 76.1% year over year to $28 million [3] - Provision for loan losses increased to $37 million from $14 million in the prior-year quarter [3] - Total expenses decreased 45.4% year over year to $101 million [3][8] Segment Performance - Federal Education Loans segment generated a net income of $30 million, up 7.1% year over year, with net FFELP loans at $29.6 billion, down 2.1% sequentially [4] - Consumer Lending segment reported a net income of $26 million, down 56.7% from the year-ago quarter, with a private education loan delinquency rate greater than 30 days at 6.4%, compared to 5.2% in the prior-year quarter [4] - As of June 30, 2025, private education loans were $15.5 billion, a decrease of 1% from the prior quarter [5] Liquidity and Capital Management - As of June 30, 2025, the company had $712 million in total unrestricted cash and liquid investments [7] - To meet liquidity needs, NAVI plans to utilize various sources, including cash, investment portfolio, and operating cash flows, and may draw down on secured loan facilities or issue additional debt [6] Capital Distribution Activities - In the second quarter, the company paid $16 million in common stock dividends and repurchased shares for $35 million, with $52 million remaining in share-repurchase authority as of June 30, 2025 [9]