Nelnet Q1 net income falls as loan loss provision rises

Nelnet

07/05/2026 21:36

Overview

U.S. education finance firm's Q1 net income and EPS declined yr/yr

Company completed Canadian loan servicing acquisition, boosting segment revenue

Higher loan loss provision driven by portfolio growth, not credit deterioration

Outlook

Company did not provide specific financial guidance or outlook for the current or future periods

Result Drivers

HIGHER NET INTEREST INCOME - Increase in loan spread and growth in consumer financing receivables boosted net interest income in AGM segment

HIGHER LOAN LOSS PROVISION - Increase in provision for loan losses driven by portfolio growth and initial allowance for acquired loans, not credit deterioration

CANADIAN ACQUISITION - Acquisition of NDS Canada contributed to revenue growth in Loan Servicing and Systems segment

Company press release: ID:nPn9SdgFJa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Net Income
$55.6 mln
Q1 Net Interest Income
$101.64 mln
Q1 Loan Loss Provision
$53.24 mln
Q1 Operating Expenses
$233.99 mln
Q1 Pretax Profit
$75.66 mln


Analyst Coverage

The one available analyst rating on the shares is "hold"

The average consensus recommendation for the consumer lending peer group is "buy"

Wall Street's median 12-month price target for Nelnet Inc is $135.00, about 3.9% below its May 6 closing price of $140.43

The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)