Education finance firm Nelnet's Q3 net income jumps on non-recurring gains

Reuters
2025/11/07
Education finance firm Nelnet's Q3 net income jumps on non-recurring gains

Overview

  • Nelnet Q3 GAAP net income rises significantly yr/yr, driven by non-recurring items

  • Company plans to acquire Finastra's Canadian student loan servicing business

  • Nelnet repurchased shares and increased dividend in Q3 2025

Outlook

  • Nelnet to acquire Finastra's Canadian student loan servicing business in Q1 2026

  • Company plans up to $35 mln contribution to foundation in Q4 2025

  • Nelnet focuses on long-term value creation and business growth

Result Drivers

  • NON-RECURRING REVENUE - Co recognized $32.9 mln non-recurring revenue from government servicing contract modification

  • VENTURE CAPITAL GAIN - Co reported $30.2 mln gain from partial redemption of venture capital investment

  • LOAN LOSS REVERSAL - Co recognized $28.9 mln negative provision from reversal of loan loss allowance on sold portfolio

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Net Income

$100.68 mln

Q3 Net Interest Income

$85.25 mln

Q3 Loan Loss Provision

$3.56 mln

Q3 Operating Expenses

$225.74 mln

Q3 Pretax Profit

$136.45 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 $130.00, about 0% below its November 5 closing price of $130.01

  • The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nPn5lSwC4a

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

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