Nelnet (NNI) investor relations material

Executive summary

• Net income attributable to shareholders was $66.7 million for Q2 2026 and $137.8 million for the first half, down from $181.5 million and $264.0 million in the prior-year periods, with Q2 2025 including a $175 million gain from ALLO investment redemption.

• Revenue streams include loan servicing, education technology, asset generation, banking, reinsurance, and solar investments.

• The company completed the acquisition of NDS Canada, expanding its loan servicing footprint and contributing to servicing revenue growth.

• Results reflect growth in consumer lending, servicing, payments, and technology, with continued investment in AI and product development.

Financial highlights

• Total assets as of June 30, 2026 were $14.28 billion, up from $14.06 billion at year-end 2025; total equity was $3.64 billion.

• Net interest income for Q2 2026 was $96.0 million, up from $79.4 million in Q2 2025; total interest income was $204.9 million.

• Provision for loan losses increased to $41.1 million in Q2 2026 from $11.1 million in Q2 2025, reflecting growth in consumer and Pay Later receivables.

• Earnings per share were $1.85 for Q2 2026 and $3.82 for the first half, compared to $4.97 and $7.24 in the prior-year periods.

• Share repurchases in the first half of 2026 totaled 316,600 shares for $40.6 million.

Outlook and guidance

• Management expects continued deposit growth to fund loan growth at Nelnet Bank and remains focused on investing in core businesses and technology.

• Effective tax rate is expected to range between 22.5% and 24.5% for the remainder of 2026.

• The company plans to pursue additional loan acquisitions, strategic investments, and maintain regular dividend payments.

• Forward-looking statements highlight ongoing diversification and technology investments, with caution regarding risks and uncertainties.