Navient (NAVI) investor relations material

Strategic transformation and phase two focus

• Successfully completed phase one, generating $2 billion in discretionary cash for growth or distributions.

• Phase two focuses on growing earnings, repositioning Earnest as a competitive fintech, and clarifying the distinction between legacy finance and fintech operations.

• Earnest is migrating to standalone operations, integrating capital markets expertise, and building high-value customer relationships.

• Enhanced disclosures and new performance metrics, such as return on equity, are being adopted to better reflect Earnest's value and enable peer comparisons.

Operational and technological advancements

• Developed and launched a new modular lending platform, improving agility, automation, and conversion rates.

• Increased loan automation and machine learning capabilities to support credit decisioning and pricing.

• Integrated capital markets expertise into Earnest, optimizing securitization structures for higher return on equity.

• Shifted from horizontal to vertical securitization, enhancing scalability and ease of loan sales.

• Enhanced marketing, product development, and technology platforms completed to support accelerated growth.

Financial performance and growth metrics

• 2025 illustrative financials: $219 million total revenue, $75 million operating profit, $724 million equity, with a pre-tax ROE baseline of about 12%.

• Originations have increased 2.5x since 2023, with lead generation quadrupling and sales/marketing expenses remaining flat.

• Operating efficiency has improved, with conversion rates up nearly 50% and FICO scores rising, supporting higher AAA securitization rates.

• Earnest's cost structure is now competitive with larger fintech peers, despite operating at a smaller scale.