Nelnet Q2 net income drops on absence of prior-year gain

Nelnet

06/08/2026 21:34

Overview
U.S. education finance firm's Q2 net income fell sharply from prior year due to one-time gain in 2025
Net interest income rose yr/yr, driven by consumer loan portfolio growth
Provision for loan losses increased, reflecting portfolio growth, not credit deterioration

Outlook
Company did not provide specific guidance for the current quarter or full year

Result Drivers
CONSUMER LOAN GROWTH - Net interest income rose due to higher loan spreads and growth in consumer loan portfolio
HIGHER LOAN LOSS PROVISION - Provision for loan losses increased, reflecting consumer loan acquisitions and portfolio growth, not credit deterioration
CANADA SERVICING ACQUISITION - Revenue in servicing segment grew due to first full quarter of NDS Canada acquisition, partly offset by lower U.S. Department of Education servicing volumes

Company press release: ID:nPn8WRZB7a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Net Income
 
$45.47 mln
 
Q2 Net Interest Income
 
$96.01 mln
 
Q2 Loan Loss Provision
 
$41.08 mln
 
Q2 Operating Expenses
 
$259.81 mln
 
Q2 Pretax Profit
 
$65.41 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 0.6% below its August 5 closing price of $135.84
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 three months ago

Reuters Recommended Reads
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Aug 5 - Oportun Q2 adjusted EPS beats estimates on lower interest expense
Aug 4 - Consumer Portfolio Services Q2 net income rises 30% on record loan originations

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(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.)