Nelnet (NNI) shares surged 6.03% in after-hours trading following the release of its impressive second-quarter 2025 financial results. The company significantly outperformed market expectations, with adjusted earnings per share (EPS) of $5.05 beating the estimate of $1.85, and sales of $540.612 million surpassing the projected $376.440 million.

The stellar performance was largely driven by a substantial gain of $175 million from the partial redemption of Nelnet's investment in ALLO Holdings. This one-time gain contributed significantly to the company's bottom line, with Q2 GAAP net income jumping to $181.5 million. Additionally, Nelnet reported increased net interest income in its Asset Generation segment, despite a decline in loan balances, thanks to improved loan spreads.

Nelnet also saw growth in its Loan Servicing segment, with higher revenue attributed to increased private education loan servicing volumes. The company continues to focus on strategic initiatives, including loan servicing, consumer lending, payments, and investments in education technology services. With these strong results and ongoing strategic efforts, Nelnet appears well-positioned for continued growth in the coming quarters.