SLM (SLM) Q4 2025 earnings summary

Executive summary

• Achieved GAAP diluted EPS of $3.46 for 2025, up from $2.68 in 2024, and $1.12 in Q4 2025, with net income attributable to common stock of $729M for 2025 and $229M in Q4.

• Private education loan originations grew 6% year-over-year to $7.4B for 2025 and 4% in Q4, with robust performance in the private student lending sector and positive college enrollment trends.

• Launched inaugural private credit strategic partnership, enhancing capital efficiency and risk transfer, and announced a new $500M, 24-month share repurchase program for 2026.

• Positioned for significant growth in 2026 and beyond, driven by federal student lending reforms and PLUS cap changes.

Financial highlights

• Net interest margin for Q4 2025 was 5.21%, up 29 bps year-over-year; full-year NIM was 5.24%.

• Non-interest expenses for 2025 were $659M, a 2.6% increase year-over-year, below guidance midpoint.

• Efficiency ratio for 2025 was 33.2%, improved from 34.7% in 2024.

• Net charge-offs for 2025 were $346M (2.15% of average loans in repayment), down four basis points from 2024.

• Net income attributable to common stock was $729M for 2025, up from $590M in 2024.

Outlook and guidance

• 2026 private education loan origination growth expected at 12%-14%.

• Full-year 2026 non-interest expenses projected at $750M-$780M, with 40% as one-time investments.

• Net charge-offs for 2026 forecasted between $345M and $385M, consistent with stable credit outlook.

• 2026 diluted EPS guidance is $2.70-$2.80, with EPS growth expected to accelerate in 2027.