Navient (NAVI) investor relations material

Executive summary

• Loan originations exceeded $1 billion year-to-date, nearly doubling year-over-year, driven by graduate student demand and federal reforms.

• Significant expense reductions achieved, with over 80% of targeted headcount reduction completed and operating expenses down $66 million year-over-year.

• Divested healthcare and government services businesses, exiting the Business Processing segment and focusing on core lending.

• Distributed $40 million to shareholders via dividends and share repurchases in Q2 2025.

• Net income for Q2 2025 was $14 million ($0.13 per share), down from $36 million year-over-year, with Core Earnings at $21 million ($0.20 per share).

Financial highlights

• Q2 2025 net income was $14 million, with Core Earnings net income at $21 million; diluted EPS was $0.13 (GAAP) and $0.20 (Core).

• Provision for loan losses increased to $37 million, reflecting higher delinquencies and macroeconomic headwinds.

• Net interest margin: Federal Education Loans at 0.70%, Consumer Lending at 2.32%.

• Operating expenses dropped to $100 million, down from $182 million a year ago.

• Returned $40 million to shareholders via buybacks and dividends in the first half.

Outlook and guidance

• Raised full-year loan origination guidance to $2.2 billion, driven by strong refi growth and graduate demand.

• Core EPS guidance for 2025 is $0.95–$1.05, incorporating higher originations and upfront costs.

• Additional cost-saving initiatives and transition services wind-down expected by year-end 2025.

• Full-year NIM expected at 55–65 bps for Federal Education Loans and 255–265 bps for consumer lending.

• Anticipates continued low FFELP prepayments and persistent provision expense due to macro and delinquency trends.