Navient (NAVI) investor relations material

Executive summary

• Core earnings per share reached $0.29, with significant items contributing a net $0.04 per share benefit; excluding these, core EPS was $0.25, up from $0.20 year-over-year.

• GAAP net income rose to $25 million ($0.26 diluted EPS) and Core Earnings net income to $27 million, both up significantly year-over-year.

• Originations in both refinance and in-school products grew over 60% year-over-year to $815 million, with refinance originations up 63% and in-school up 40%.

• Operating expenses declined 18% year-over-year, reflecting improved efficiency and cost control.

• Strategic transformation included reclassifying $528 million of legacy private loans as held for sale and adopting fair value accounting for new in-school loans.

Financial highlights

• Realized a $12 million gain on investment, offset by $3 million loss from calling a trust and $4 million in regulatory/restructuring expenses.

• Net income for the consumer lending segment was $27 million, up from $26 million a year ago; federal education loan segment net income was $26 million, down from $30 million.

• Revenue before provision was $150 million (GAAP) and $147 million (Core), both down from prior year.

• Total expenses for Q2 were $82 million, down from $100 million in Q2 2025.

• Provision for loan losses declined to $26 million from $37 million.

Outlook and guidance

• Year-to-date originations exceed $1.5 billion, on pace with 2026 volume outlook.

• Full-year operating expense outlook remains at $350 million or lower.

• Graduate market expected to triple in 2026, with continued acceleration in origination growth rates.

• Elected fair value option for in-school originations beginning 3Q26 to enhance transparency and risk management.

• Expect continued strong demand for refinance and in-school products, with additional growth anticipated from new personal loan products in 2027 and beyond.