Nelnet Q2 net income drops on absence of prior-year gain
NNI•Quarterly results
Nelnet Q2 net income fell sharply from the prior year due to a one-time gain in 2025.
| Metric | Actual |
|---|---|
| Q2 Net Income | $45.47 mln |
| Q2 Net Interest Income | $96.01 mln |
| Q2 Loan Loss Provision | $41.08 mln |
| Q2 Operating Expenses | $259.81 mln |
| Q2 Pretax Profit | $65.41 mln |
What drove the results
- Consumer loan growth - Net interest income rose due to higher loan spreads and growth in the consumer loan portfolio.
- Higher loan loss provision - Provision for loan losses increased, reflecting consumer loan acquisitions and portfolio growth, not credit deterioration.
- Canada servicing acquisition - Revenue in the servicing segment grew due to the first full quarter of the NDS Canada acquisition, partly offset by lower U.S. Department of Education servicing volumes.
Outlook and market context
The company did not provide specific guidance for the current quarter or full year.
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 $135.00, about 0.6% below its August 5 closing price of $135.84. The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 three months ago.
