Nelnet, Inc. reported its financial results for the first quarter of 2026, revealing a net income of $71.1 million, a decrease from $82.6 million in the same period last year. The company's earnings per share were $1.97, down from $2.26 in the prior year. Total interest income for the quarter was $211.2 million, slightly up from $207.8 million in the first quarter of 2025, driven by an increase in loan interest income, which rose to $171.0 million from $166.4 million. However, net interest income after provisions for loan losses fell to $44.3 million from $65.9 million, primarily due to a significant increase in the provision for loan losses, which rose to $53.2 million from $15.3 million.
The company experienced notable changes in its operational metrics compared to the previous fiscal period. Total assets increased to $14.2 billion as of March 31, 2026, from $14.1 billion at the end of 2025. The increase in assets was attributed to a rise in investments and notes receivable, which grew to $2.5 billion from $2.3 billion. Nelnet's loan portfolio also saw a shift, with the balance of Pay Later receivables reaching $766.2 million, contributing to the higher provision for loan losses. The company’s total liabilities increased to $10.6 billion, up from $10.5 billion, largely due to an increase in bank deposits.
Strategically, Nelnet made a significant acquisition by purchasing a Canadian student loan servicing business, Nelnet Diversified Services Canada, Inc., for approximately $105.8 million. This acquisition is expected to enhance the company's loan servicing capabilities and expand its market presence in Canada. The operating results of NDS Canada will be included in Nelnet's Loan Servicing and Systems segment from the acquisition date.
Operationally, Nelnet reported a total of 15.5 million borrowers serviced across various loan programs, including the Department of Education and the newly acquired Canada Student Loan Program. The company’s loan servicing revenue increased to $127.8 million from $120.7 million, reflecting growth in both the education technology services and payments segments. The number of borrowers serviced by Nelnet's education technology services also increased, contributing to a revenue rise in that segment to $154.4 million from $147.3 million.
Looking ahead, Nelnet's management expressed optimism about future growth, particularly in the education technology and loan servicing sectors. The company plans to leverage its recent acquisition and expand its loan portfolio while managing risks associated with interest rates and credit quality. The outlook remains cautiously optimistic, with expectations for continued revenue growth driven by strategic investments and operational efficiencies.
About NELNET INC
Nelnet is a diversified holding company specializing in student loan servicing, education technology, and payments. It manages federal and private student loan portfolios, provides software solutions for schools, and offers payment processing services. The company also invests in energy, real estate, and emerging growth ventures, leveraging its expertise in financial services and technology to serve educational institutions, consumers, and government agencies across the U.S.
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