Nelnet Q2 Net Income Plunges on Absence of Prior-Year Gain
NNI sits 16% above its 52-week low of $116.62.
Summary
Nelnet's Q2 net income fell sharply to $45.47 million from the prior year, driven by the absence of a one-time gain that boosted 2025 results. Net interest income rose to $96.01 million, supported by consumer loan portfolio growth and higher spreads, but the loan loss provision increased to $41.08 million, reflecting portfolio expansion rather than credit deterioration. Operating expenses were $259.81 million, and pretax profit came in at $65.41 million. The servicing segment saw revenue growth from the first full quarter of the NDS Canada acquisition, partially offset by lower U.S. Department of Education servicing volumes. This follows a Q1 where net income dropped 13.8% due to higher loan loss provisions, indicating ongoing pressure from growing 'Pay Later' receivables. The single analyst rating remains 'hold' with a price target of $135, slightly below the recent trading price.
At the time of this announcement, NNI was trading at $135.00 on NYSE in the Finance sector, with a market capitalization of approximately $4.8B. The 52-week trading range was $116.62 to $144.38. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.