Nelnet (NNI) Q3 2026 earnings summary

Executive summary

• Q3 2026 net income attributable to shareholders was $76.2M, or $2.13/share, vs. $106.7M, or $2.94/share; nine-month net income was $214.0M vs. $370.7M.

• Adjusted Q3 net income excluding derivative market value adjustments was $67.9M, or $1.89/share, vs. $107.3M, or $2.95/share; nine-month adjusted net income was $201.7M vs. $379.0M.

• Management cited strong operating performance and product and customer diversification, alongside continued investment, share repurchases, and a higher dividend.

Financial highlights

• Q3 net interest income rose to $101.4M from $85.3M; provision for loan losses was $39.4M vs. a negative provision of $3.6M.

• Income before taxes declined to $81.0M from $136.4M; consolidated net income was $56.2M vs. $100.7M, while attributable net income was $76.2M vs. $106.7M.

• Q3 total other income, net, was $335.2M vs. $342.5M; nine-month total was $966.6M vs. $1.12B, including a $175.0M ALLO redemption gain in 2025.

• Q3 operating expenses increased to $263.7M from $232.7M; nine-month operating cash flow was $341.2M vs. $285.4M.

Outlook and guidance

• Management expects a 22.5%–24.5% effective tax rate for the remainder of 2026.

• AGM forecasts ~$0.84B in future undiscounted cash flows from securitized assets, including ~$0.61B of overcollateralization and ~$0.23B of future earnings before tax.

• A 2x or 4x increase in assumed loan prepayment rates would reduce forecast cash flows to $0.78B or $0.69B; an added 12 bps SOFR index spread would reduce the forecast by $5M–$15M.

• Deposit growth is expected to remain Nelnet Bank's primary funding source for future loan growth; parent capital support may continue for growth and regulatory capital needs.