Nelnet Q4 net income declines

Nelnet

26/02/2026 21:33

Overview

Financial services provider's Q4 GAAP net income fell yr/yr

Net interest income grew due to increased loan spread and consumer financing

Company sold solar construction business due to low margins and legislative impacts

Outlook

Company sees opportunities in technology investments and product development in 2026

Nelnet anticipates growth in consumer lending, loan servicing, payments, and technology

Result Drivers

LOAN SPREAD AND RECEIVABLES - Nelnet Financial Services reported increased net interest income due to a wider loan spread and growth in consumer financing receivables

NEW SERVICING CONTRACT - Revenue from Loan Servicing and Systems declined due to a new servicing contract with lower per borrower revenue

Company press release: ID:nPn1VfLqza

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Net Income
$38.69 mln
Q4 Net Interest Income
$107.11 mln
Q4 Operating Expenses
$251.76 mln
Q4 Pretax Profit
$46.38 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 $140.00, about 7.1% above its February 25 closing price of $130.75

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

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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.)