Navient (NAVI) investor relations material

Executive summary

• Q1 2026 GAAP net income was $17 million ($0.17 diluted EPS), reversing a prior-year loss, with Core Earnings net income at $19 million ($0.20 diluted EPS); strong loan growth and expense discipline were achieved.

• Private Education Loan originations rose 61% year-over-year to $818 million, with refinance originations up 65% to $778 million.

• Completed multi-year strategic transformation, including divestitures, outsourcing, and headcount reduction, enhancing focus and efficiency.

• Leadership transition announced, with Edward Bramson to become CEO and David Yowan remaining on the board, ensuring strategic continuity.

Financial highlights

• Core Earnings per share were $0.20 for Q1 2026; diluted EPS was $0.17 (GAAP).

• Q1 net income was $17 million (GAAP) and $19 million (Core Earnings); net interest income increased by $1 million year-over-year.

• Total originations grew over 60% year-over-year; in-school loan originations reached $40 million.

• Operating expenses fell by $38 million year-over-year, driven by divestitures and cost-saving initiatives.

• Returned $38 million to shareholders via share repurchases and dividends.

Outlook and guidance

• Results keep the company on track with its 2026 outlook, with a foundation for future growth following strategic initiatives.

• Positioned to capture growing graduate demand, with the graduate market expected to triple in 2026.

• Operating expenses targeted at $350 million for the year; expect further improvement in credit performance.

• Q2 originations expected to be similar to Q1, with a significant increase in Q3 during peak in-school season.

• Management continues to focus on optimizing capital allocation, maintaining strong liquidity, and investing in private education lending.