NNI · Nelnet, Inc.

Nelnet kicked off 2026 strongly across its three divisions, with CEO Jeff Noordhoek highlighting high performance in every segment and smooth integration of the February 2026 NDS Canada acquisition, which expanded loan servicing to $525.7 billion for 15.5 million borrowers. In Nelnet Financial Services' AGM segment, net interest income rose 27% to $67.5 million, driven by wider loan spreads and growth in consumer financing, including $766.2 million in Pay Later receivables purchased since Q3 2025, though offset by FFELP portfolio runoff from $8.6 billion to $7.2 billion average balance. A $48.5 million provision for loan losses reflected initial allowances on $3.34 billion in Q1 acquisitions rather than credit deterioration, as delinquency and charge-off metrics met expectations. AGM joint ventures contributed $15.4 million income, yielding $23.2 million net income after tax, up slightly from prior year. Nelnet Bank grew its loan/investment portfolio to $1.26/$1.18 billion with $1.96 billion deposits, boosting net interest income to $17.8 million and net income to $7.1 million. Loan Servicing and Systems revenue increased to $127.8 million from the Canada deal, with net income at $15.0 million. Education Technology Services and Payments revenue hit $154.4 million, with $36.3 million net income amid seasonal strength. Corporate activities posted losses from equity securities ($10.8 million pre-tax) and solar partnerships ($22.5 million pre-tax), but management views these as long-term value plays. Overall GAAP net income of $71.1 million trailed prior year due to higher provisions and other expenses, yet non-GAAP adjusted for derivatives showed operational resilience. The board's $0.33 quarterly dividend signals confidence in cash generation.