nni-20260226

Nelnet Reports Fourth Quarter 2025 Results

LINCOLN, Neb., February 26, 2026 - Nelnet (NYSE: NNI) today reported GAAP net income of $57.8 million, or $1.60 per share, for the fourth quarter of 2025, compared with GAAP net income of $63.2 million, or $1.73 per share, for the same period a year ago.

Net income, excluding derivative market value adjustments1, was $56.3 million, or $1.56 per share, for the fourth quarter of 2025, compared with $52.7 million, or $1.44 per share, for the same period in 2024.

“Nelnet’s teams knocked the ball out of the park in 2025, delivering record earnings and strengthening our foundation for long-term success,” said Jeff Noordhoek, chief executive officer of Nelnet. “Over time, we’ve meaningfully diversified our revenue, with each of our core businesses - consumer lending, loan servicing, payments, and technology - reporting solid performance and building real momentum. With our continued investments in technology and in both new and existing products and services, we see opportunities ahead in 2026.”

Nelnet operates through three divisions: Nelnet Financial Services (NFS), Loan Servicing and Systems [referred to as Nelnet Diversified Services (NDS)], and Education Technology Services and Payments [referred to as Nelnet Business Services (NBS)]. NFS includes the company’s Asset Generation and Management (AGM) and Nelnet Bank reportable operating segments, which earn interest income on loans and investments. NDS and NBS generate primarily fee‑based revenue through loan servicing, education technology, and payment services. Business activities not included in these divisions are combined and reported within Corporate Activities.

Nelnet Financial Services

AGM

The AGM operating segment reported loan and investment net interest income of $63.5 million during the fourth quarter of 2025, compared with $48.3 million for the same period a year ago. The increase in 2025 was due to an increase in loan spread2 and growth in the company's consumer financing receivables. In the third quarter of 2025, the company began to purchase Pay Later receivables. As of December 31, 2025, the balance of Pay Later receivables was $744.2 million. The increase in net interest income was offset by the anticipated runoff of the legacy Federal Family Education Loan Program (the "FFEL Program" or FFELP) loan portfolio. The average balance of FFELP loans outstanding decreased from $8.9 billion for the fourth quarter of 2024 to $7.9 billion for the same period in 2025.

AGM recognized a provision for loan losses in the fourth quarter of 2025 of $32.5 million ($24.7 million after tax), compared with $13.5 million ($10.3 million after tax) in the fourth quarter of 2024. Provision for loan losses was primarily impacted by establishing an initial allowance for consumer loans acquired during the fourth quarter of 2025.

AGM recognized net income after tax of $24.8 million during the fourth quarter of 2025, compared with $25.5 million for the same period in 2024.

Nelnet Bank

As of December 31, 2025, Nelnet Bank had a $957.6 million and $1.08 billion loan and investment portfolio, respectively, and total deposits, including intercompany deposits, of $1.76 billion. Nelnet Bank reported loan and investment net interest income of $17.6 million during the fourth quarter of 2025, compared with $12.9 million for the same period a year ago. The increase in 2025 was due to an increase in the loan and investment portfolio, partially offset by a decrease in net interest margin.

Nelnet Bank recognized provision for loan losses in the fourth quarter of 2025 of $5.7 million ($4.3 million after tax), compared with $8.6 million ($6.5 million after tax) in the fourth quarter of 2024. Provision for loan losses at Nelnet Bank is due primarily from the establishment of an initial allowance for loans originated and acquired during the period. In 2024, Nelnet Bank recognized income of $5.5 million ($4.2 million after tax) related to changes in the fair value of derivative instruments that do not qualify for hedge accounting.

Nelnet Bank recognized net income after tax for the quarter ended December 31, 2025 of $5.3 million, compared with $4.2 million for the same period in 2024.

1 Net income, excluding derivative market value adjustments, is a non-GAAP measure. See "Non-GAAP Performance Measures" at the end of this press release and the "Non-GAAP Disclosures" section below for explanatory information and reconciliations of GAAP to non-GAAP financial information.

2 Loan spread represents the spread between the yield earned on loan assets and the costs of the liabilities and derivative instruments used to fund the assets.

Loan Servicing and Systems

Revenue from the Loan Servicing and Systems segment was $116.6 million for the fourth quarter of 2025, compared with $138.0 million for the same period in 2024. On April 1, 2024, the company began to earn revenue under its new Unified Servicing and Data Solution (USDS) contract which replaced its legacy student loan servicing contract with the Department of Education (Department). Revenue earned under the USDS contract on a per borrower blended basis is lower than the legacy contract. During the fourth quarter of 2024, the company recognized $10.9 million in non-recurring revenue under its Department servicing contract related to certain inflation provisions from the prior legacy contract and $4.0 million of non-recurring revenue from the conversion of a private education student loan portfolio.

As of December 31, 2025, the company was servicing $486.2 billion in government-owned, FFEL Program, private education, and consumer loans for 13.2 million borrowers, compared with $532.4 billion in servicing volume for 15.8 million borrowers as of December 31, 2024.

The Loan Servicing and Systems segment reported net income after tax of $8.9 million for the quarter ended December 31, 2025, compared with $20.4 million for the same period in 2024.

Education Technology Services and Payments

For the fourth quarter of 2025, revenue from the Education Technology Services and Payments operating segment was $112.3 million, an increase from $108.3 million for the same period in 2024. Revenue less direct costs to provide services for the fourth quarter of 2025 was $73.7 million, compared with $69.7 million for the same period in 2024. Operating expenses increased in 2025 compared with 2024, reflecting continued investment to expand the customer base and advance new product and technology development.

Net income after tax for the Education Technology Services and Payments segment was $12.9 million for the quarter ended December 31, 2025, compared with $13.6 million for the same period in 2024.

Corporate Activities

Included in Corporate Activities are the operating results of the company's solar construction business. During the fourth quarter of 2025, the company reported a loss of $27.3 million ($20.7 million after tax or $0.57 per share) in its solar construction business. Since the acquisition of this business, the company has experienced low and, in certain cases, negative margins on projects. In addition, changes in legislation reducing clean energy tax incentives, tariff uncertainty, and rising construction costs adversely affected revenue and net income. As a result of these factors, the company sold the solar construction business in November 2025. Although the company retained a limited number of construction contracts to complete following the sale, the company does not expect the operating results from such contracts to be significant in future periods.

Share Repurchases

During the fourth quarter of 2025, the company repurchased 126,680 Class A common shares for $16.1 million (average price of $127.27 per share).

Year-End Results

GAAP net income for the year ended December 31, 2025 was $428.5 million, or $11.79 per share, compared with GAAP net income of $184.0 million, or $5.02 per share, for 2024. Net income in 2025, excluding derivative market value adjustments1, was $435.4 million, or $11.98 per share, compared with $176.4 million, or $4.81 per share, for 2024.

Forward-Looking and Cautionary Statements

This press release contains forward-looking statements within the meaning of federal securities laws. The words “anticipate,” “assume," "believe,” “continue,” “could,” "ensure," “estimate,” “expect,” “forecast,” “future,” “intend,” “may,” “plan,” “potential,” “predict,” "scheduled," "see," “should,” “will,” “would,” and similar expressions, as well as statements in future tense, are intended to identify forward-looking statements. These statements are based on management's current expectations as of the date of this release and are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results and performance to be materially different from any future results or performance expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to: risks related to the ability to successfully maintain and increase allocated volumes of student loans serviced by the company under existing and future servicing contracts with the Department, risks related to unfavorable contract modifications or interpretations, risks related to consistently meeting service requirements to avoid the assessment of performance penalties, and risks related to the company's

ability to comply with agreements with third-party customers for the servicing of Federal Direct Loan Program, FFEL Program, private education, and consumer loans; loan portfolio risks such as credit risk, prepayment risk, interest rate basis and repricing risk, risks related to the use of derivatives to manage exposure to interest rate fluctuations, uncertainties regarding the expected benefits from purchased securitized and unsecuritized FFELP, private education, consumer, and other loans, or residual interests therein, and initiatives to purchase additional FFELP, private education, consumer, and other loans; financing and liquidity risks, including risks of changes in the interest rate environment; risks from changes in the terms of education loans and in the educational credit and services markets resulting from changes in applicable laws, regulations, and government programs and budgets; risks related to a breach of or failure in the company's operational or information systems or infrastructure, or those of third-party vendors, including disclosure of confidential or personal information and/or damage to reputation resulting from cyber breaches; risks related to use of artificial intelligence; uncertainties inherent in forecasting future cash flows from student loan assets, including residual interests therein, and related asset-backed securitizations; risks related to the ability of Nelnet Bank to achieve its business objectives and effectively deploy loan and deposit strategies and achieve expected market penetration; risks related to the company's solar tax equity partnerships, including risks of not being able to realize tax credits which remain subject to recapture by taxing authorities and risks from the impact of the enactment of the One Big Beautiful Bill that accelerates the expiration and phase out of solar energy credits; risks and uncertainties related to other initiatives (and anticipated income therefrom) including venture capital, real estate, reinsurance, acquisitions, and other activities, including activities that are intended to diversify the company both within and outside of its historical core education-related businesses; risks and uncertainties associated with climate change; risks from changes in economic conditions and consumer behavior; risks related to the company's ability to adapt to technological change; risks related to the exclusive forum provisions in the company's articles of incorporation; risks related to the company's executive chairman's ability to control matters related to the company through voting rights; risks related to related party transactions; risks related to natural disasters, terrorist activities, or international hostilities; and risks and uncertainties associated with litigation matters, maintaining compliance with the extensive regulatory requirements applicable to the company's businesses, and uncertainties inherent in the estimates and assumptions about future events that management is required to make in the preparation of the company's consolidated financial statements.

For more information, see the "Risk Factors" sections and other cautionary discussions of risks and uncertainties included in documents filed or furnished by the company with the Securities and Exchange Commission. All forward-looking statements in this release are as of the date of this release. Although the company may voluntarily update or revise its forward-looking statements from time to time to reflect actual results or changes in the company's expectations, the company disclaims any commitment to do so except as required by law.

Non-GAAP Performance Measures

The company prepares its financial statements and presents its financial results in accordance with U.S. GAAP. However, it also provides additional non-GAAP financial information related to specific items management believes to be important in the evaluation of its operating results and performance. Reconciliations of GAAP to non-GAAP financial information, and a discussion of why the company believes providing this additional information is useful to investors, is provided in the "Non-GAAP Disclosures" section below.

Consolidated Statements of Income

(Dollars in thousands, except share data)

(unaudited)


	Three months ended				Year ended
	December 31, 2025		September 30, 2025	December 31, 2024	December 31, 2025	December 31, 2024
Interest income:
Loan interest	$	184,825	162,717	178,434	686,085	787,498
Investment interest	40,559		43,241	42,815	165,374	185,901
Total interest income	225,384		205,958	221,249	851,459	973,399
Interest expense on bonds and notes payable and bank deposits	118,273		120,708	141,170	496,950	680,537
Net interest income	107,111		85,250	80,079	354,509	292,862
Less provision (negative provision) for loan losses	38,147		(3,563)	22,057	67,851	54,607
Less provision for beneficial interests	2,679		2,145	4,628	11,311	39,491
Net interest income after provision	66,285		86,668	53,394	275,347	198,764
Other income (expense):
Loan servicing and systems revenue	116,573		151,052	137,981	509,089	482,408
Education technology services and payments revenue	112,314		129,321	108,335	507,150	486,962
Reinsurance premiums earned	33,539		23,165	18,673	107,502	62,923
Solar construction revenue	3,379		5,738	13,828	14,371	56,569
Other, net	16,749		33,258	27,836	97,587	59,959

Gain on partial redemption of ALLO investment	—		—	—	175,044	—
Derivative market value adjustments and derivative settlements, net	2,330		(27)	14,879	(6,398)	16,258
Total other income (expense), net	284,884		342,507	321,532	1,404,345	1,165,079
Cost of services and expenses:
Loan servicing contract fulfillment and acquisition costs	2,056		2,021	1,497	7,555	1,889
Cost to provide education technology services and payments	38,654		50,363	38,658	176,907	172,763
Cost to provide solar construction services	12,326		7,607	28,558	41,810	77,673
Total cost of services	53,036		59,991	68,713	226,272	252,325
Salaries and benefits	141,086		144,778	147,229	558,786	576,931
Depreciation and amortization	9,365		7,327	12,544	33,571	58,116
Reinsurance losses and underwriting expenses	25,715		19,962	16,180	93,551	55,246
Impairment expense	17,220		7,000	1,136	29,612	3,138
Other expenses	58,369		53,669	50,681	211,568	189,503
Total operating expenses	251,755		232,736	227,770	927,088	882,934

Income before income taxes	46,378		136,448	78,443	526,332	228,584
Income tax expense	(7,691)		(35,773)	(15,016)	(127,986)	(52,669)
Net income	38,687		100,675	63,427	398,346	175,915
Net loss (income) attributable to noncontrolling interests	19,084		6,009	(268)	30,128	8,130
Net income attributable to Nelnet, Inc.	$	57,771	106,684	63,159	428,474	184,045
Earnings per common share:
Net income attributable to Nelnet, Inc. shareholders - basic and diluted	$	1.60	2.94	1.73	11.79	5.02
Weighted-average common shares outstanding - basic and diluted	36,088,994		36,316,315	36,461,513	36,341,197	36,642,533

Condensed Consolidated Balance Sheets

(Dollars in thousands)

(unaudited)


	As of		As of	As of
	December 31, 2025		September 30, 2025	December 31, 2024
Assets:
Loans and accrued interest receivable, net	$	10,006,695	10,227,261	9,992,744
Cash, cash equivalents, and investments	2,643,954		2,455,950	2,395,214
Restricted cash	677,563		550,371	736,502
Goodwill and intangible assets, net	187,312		189,783	194,357
Other assets	548,259		453,317	458,936
Total assets	$	14,063,783	13,876,682	13,777,753
Liabilities:
Bonds and notes payable	$	7,780,927	7,822,531	8,309,797
Bank deposits	1,669,173		1,476,765	1,186,131
Other liabilities	1,036,454		990,691	982,708
Total liabilities	10,486,554		10,289,987	10,478,636
Equity:
Total Nelnet, Inc. shareholders' equity	3,685,792		3,653,290	3,349,762
Noncontrolling interests	(108,563)		(66,595)	(50,645)
Total equity	3,577,229		3,586,695	3,299,117
Total liabilities and equity	$	14,063,783	13,876,682	13,777,753

Contacts:

Media, Ben Kiser, 402.458.3024, or Investors, Phil Morgan, 402.458.3038, both of Nelnet, Inc.

Non-GAAP Disclosures

(Dollars in thousands, except share data)

(unaudited)

Non-GAAP financial measures disclosed by management are meant to provide additional information and insight relative to business trends to investors and, in certain cases, to present financial information as measured by rating agencies and other users of financial information. These measures are not in accordance with, or a substitute for, GAAP and may be different from, or inconsistent with, non-GAAP financial measures used by other companies. The company reports this non-GAAP information because the company believes that it provides additional information regarding operational and performance indicators that are closely assessed by management. There is no comprehensive, authoritative guidance for the presentation of such non-GAAP information, which is only meant to supplement GAAP results by providing additional information that management utilizes to assess performance.

Net income, excluding derivative market value adjustments


	Three months ended December 31,			Year ended December 31,
	2025		2024	2025	2024
GAAP net income attributable to Nelnet, Inc.	$	57,771	63,159	428,474	184,045
Realized and unrealized derivative market value adjustments (a)	(1,879)		(13,792)	9,098	(10,124)
Tax effect (b)	451		3,310	(2,184)	2,430
Non-GAAP net income attributable to Nelnet, Inc., excluding derivative market value adjustments	$	56,343	52,677	435,388	176,351
Earnings per share:
GAAP net income attributable to Nelnet, Inc.	$	1.60	1.73	11.79	5.02
Realized and unrealized derivative market value adjustments (a)	(0.05)		(0.38)	0.25	(0.28)
Tax effect (b)	0.01		0.09	(0.06)	0.07
Non-GAAP net income attributable to Nelnet, Inc., excluding derivative market value adjustments	$	1.56	1.44	11.98	4.81

(a)"Derivative market value adjustments" includes both the realized portion of gains and losses (corresponding to variation margin received or paid on derivative instruments that are settled daily at a central clearinghouse) and the unrealized portion of gains and losses that are caused by changes in fair values of derivatives which do not qualify for "hedge treatment" under GAAP. "Derivative market value adjustments" does not include "derivative settlements" that represent the cash paid or received during the respective period to settle with derivative instrument counterparties the economic effect of the company's derivative instruments based on their contractual terms.

The accounting for derivatives requires that changes in the fair value of derivative instruments be recognized currently in earnings, with no fair value adjustment of the hedged item, unless specific hedge accounting criteria are met. Management has structured all of the company’s derivative transactions with the intent that each is economically effective; however, the majority of the company’s derivative instruments do not qualify for hedge accounting in the consolidated financial statements. As a result, the change in fair value for the derivative instruments that do not qualify for hedge accounting is reported in current period earnings with no consideration for the corresponding change in fair value of the hedged item. Under GAAP, the cumulative net realized and unrealized gain or loss caused by changes in fair values of derivatives in which the company plans to hold to maturity will generally equal zero over the life of the contract. However, the net realized and unrealized gain or loss during any given reporting period fluctuates significantly from period to period.

The company believes these point-in-time estimates of asset and liability values related to its derivative instruments that are subject to interest rate fluctuations are subject to volatility mostly due to timing and market factors beyond the control of management, and affect the period-to-period comparability of the results of operations. Accordingly, the company’s management utilizes operating results excluding these items for comparability purposes when making decisions regarding the company’s performance and in presentations with credit rating agencies, lenders, and investors. Consequently, the company reports this non-GAAP information because the company believes that it provides additional information regarding operational and performance indicators that are closely assessed by management and represents what earnings would have been had these derivatives qualified for hedge accounting. There is no comprehensive, authoritative guidance for the presentation of such non-GAAP information, which is only meant to supplement GAAP results by providing additional information that management utilizes to assess performance.

(b)The tax effects are calculated by multiplying the realized and unrealized derivative market value adjustments by the applicable statutory income tax rate.

For Release: February 26, 2026

Investor Contact: Phil Morgan, 402.458.3038

Nelnet, Inc. supplemental financial information for the fourth quarter 2025

(All dollars are in thousands, except per share amounts, unless otherwise noted)

The following information should be read in connection with Nelnet, Inc.'s (the “Company's”) press release for fourth quarter 2025 earnings, dated February 26, 2026, and the Company's Annual Report on Form 10-K for the year ended December 31, 2025.

Forward-looking and cautionary statements

This report contains forward-looking statements and information that are based on management's current expectations as of the date of this document. Statements that are not historical facts, including statements about the Company's plans and expectations for future financial condition, results of operations or economic performance, or that address management's plans and objectives for future operations, and statements that assume or are dependent upon future events, are forward-looking statements. The words “anticipate,” “assume,” “believe,” “continue,” “could,” “ensure,” “estimate,” “expect,” “forecast,” “future,” “intend,” “may,” “plan,” “potential,” “predict,” “scheduled,” “should,” “will,” “would,” and similar expressions, as well as statements in future tense, are intended to identify forward-looking statements.

The forward-looking statements are based on assumptions and analyses made by management in light of management's experience and its perception of historical trends, current conditions, expected future developments, and other factors that management believes are appropriate under the circumstances. These statements are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results and performance to be materially different from any future results or performance expressed or implied by such forward-looking statements. These factors include, among others, the risks and uncertainties set forth in the “Risk Factors” section of the Company's Annual Report on Form 10-K for the year ended December 31, 2025 (the "2025 Annual Report"), and include such risks and uncertainties as:

•risks related to the ability to successfully maintain and increase allocated volumes of student loans serviced by the Company under existing and future servicing contracts with the U.S. Department of Education (the “Department”), risks related to unfavorable contract modifications or interpretations, risks related to consistently meeting service requirements to avoid the assessment of performance penalties, and risks related to the Company's ability to comply with agreements with third-party customers for the servicing of Federal Direct Loan Program, Federal Family Education Loan Program (the “FFEL Program” or FFELP), private education, and consumer loans;

•loan portfolio risks such as credit risk, prepayment risk, interest rate basis and repricing risk, risks related to the use of derivatives to manage exposure to interest rate fluctuations, uncertainties regarding the expected benefits from purchased securitized and unsecuritized FFELP, private education, consumer, and other loans, or residual interests therein, and initiatives to purchase additional FFELP, private education, consumer, and other loans;

•financing and liquidity risks, including risks of changes in the interest rate environment;

•risks from changes in the terms of education loans and in the educational credit and services markets resulting from changes in applicable laws, regulations, and government programs and budgets;

•risks related to a breach of or failure in the Company's operational or information systems or infrastructure, or those of third-party vendors, including disclosure of confidential or personal information and/or damage to reputation resulting from cyber breaches;

•risks related to use of artificial intelligence;

•uncertainties inherent in forecasting future cash flows from student loan assets, including residual interests therein, and related asset-backed securitizations;

•risks related to the ability of Nelnet Bank to achieve its business objectives and effectively deploy loan and deposit strategies and achieve expected market penetration;

•risks related to the Company's solar tax equity partnerships, including risks of not being able to realize tax credits which remain subject to recapture by taxing authorities and risks from the impact of the enactment of the One Big Beautiful Bill that accelerates the expiration and phase out of solar energy credits;

•risks and uncertainties related to other initiatives (and anticipated income therefrom) including venture capital, real estate, reinsurance, acquisitions, and other activities, including activities that are intended to diversify the Company both within and outside of its historical core education-related businesses;

•risks and uncertainties associated with climate change; and

•risks and uncertainties associated with litigation matters, maintaining compliance with the extensive regulatory requirements applicable to the Company's businesses, and uncertainties inherent in the estimates and assumptions about future events that management is required to make in the preparation of the Company’s consolidated financial statements.

All forward-looking statements contained in this report are qualified by these cautionary statements and are made only as of the date of this document. Although the Company may from time to time voluntarily update or revise its prior forward-looking statements to reflect actual results or changes in the Company's expectations, the Company disclaims any commitment to do so except as required by law.

Consolidated Statements of Income

(Dollars in thousands, except share data)

(unaudited)


	Three months ended				Year ended
	December 31, 2025		September 30, 2025	December 31, 2024	December 31, 2025	December 31, 2024
Interest income:
Loan interest	$	184,825	162,717	178,434	686,085	787,498
Investment interest	40,559		43,241	42,815	165,374	185,901
Total interest income	225,384		205,958	221,249	851,459	973,399
Interest expense on bonds and notes payable and bank deposits	118,273		120,708	141,170	496,950	680,537
Net interest income	107,111		85,250	80,079	354,509	292,862
Less provision (negative provision) for loan losses	38,147		(3,563)	22,057	67,851	54,607
Less provision for beneficial interests	2,679		2,145	4,628	11,311	39,491
Net interest income after provision	66,285		86,668	53,394	275,347	198,764
Other income (expense):
Loan servicing and systems revenue	116,573		151,052	137,981	509,089	482,408
Education technology services and payments revenue	112,314		129,321	108,335	507,150	486,962
Reinsurance premiums earned	33,539		23,165	18,673	107,502	62,923
Solar construction revenue	3,379		5,738	13,828	14,371	56,569
Other, net	16,749		33,258	27,836	97,587	59,959

Gain on partial redemption of ALLO investment	—		—	—	175,044	—
Derivative settlements, net	451		761	1,087	2,700	6,134
Derivative market value adjustments, net	1,879		(788)	13,792	(9,098)	10,124
Total other income (expense), net	284,884		342,507	321,532	1,404,345	1,165,079
Cost of services and expenses:
Loan servicing contract fulfillment and acquisition costs	2,056		2,021	1,497	7,555	1,889
Cost to provide education technology services and payments	38,654		50,363	38,658	176,907	172,763
Cost to provide solar construction services	12,326		7,607	28,558	41,810	77,673
Total cost of services	53,036		59,991	68,713	226,272	252,325
Salaries and benefits	141,086		144,778	147,229	558,786	576,931
Depreciation and amortization	9,365		7,327	12,544	33,571	58,116
Reinsurance losses and underwriting expenses	25,715		19,962	16,180	93,551	55,246
Impairment expense	17,220		7,000	1,136	29,612	3,138
Other expenses	58,369		53,669	50,681	211,568	189,503
Total operating expenses	251,755		232,736	227,770	927,088	882,934

Income before income taxes	46,378		136,448	78,443	526,332	228,584
Income tax expense	(7,691)		(35,773)	(15,016)	(127,986)	(52,669)
Net income	38,687		100,675	63,427	398,346	175,915
Net loss (income) attributable to noncontrolling interests	19,084		6,009	(268)	30,128	8,130
Net income attributable to Nelnet, Inc.	$	57,771	106,684	63,159	428,474	184,045
Earnings per common share:
Net income attributable to Nelnet, Inc. shareholders - basic and diluted	$	1.60	2.94	1.73	11.79	5.02
Weighted-average common shares outstanding - basic and diluted	36,088,994		36,316,315	36,461,513	36,341,197	36,642,533

Condensed Consolidated Balance Sheets

(Dollars in thousands)

(unaudited)


	As of		As of	As of
	December 31, 2025		September 30, 2025	December 31, 2024
Assets:
Loans and accrued interest receivable, net	$	10,006,695	10,227,261	9,992,744
Cash, cash equivalents, and investments	2,643,954		2,455,950	2,395,214
Restricted cash	677,563		550,371	736,502
Goodwill and intangible assets, net	187,312		189,783	194,357
Other assets	548,259		453,317	458,936
Total assets	$	14,063,783	13,876,682	13,777,753
Liabilities:
Bonds and notes payable	$	7,780,927	7,822,531	8,309,797
Bank deposits	1,669,173		1,476,765	1,186,131
Other liabilities	1,036,454		990,691	982,708
Total liabilities	10,486,554		10,289,987	10,478,636
Equity:
Total Nelnet, Inc. shareholders' equity	3,685,792		3,653,290	3,349,762
Noncontrolling interests	(108,563)		(66,595)	(50,645)
Total equity	3,577,229		3,586,695	3,299,117
Total liabilities and equity	$	14,063,783	13,876,682	13,777,753

Overview

Nelnet is an operating holding company with primary businesses in consumer lending, loan servicing, payments, and technology-enabled services, many of which are focused on serving customers in the education sector. The Company conducts these activities both directly and through its wholly owned and majority-owned subsidiaries, and actively manages and operates its businesses on an integrated basis. Nelnet’s largest operating and technology platforms support loan servicing and education-related technology and payment solutions. A significant portion of the Company’s revenue is derived from net interest income earned on a portfolio of federally insured student loans, a substantial portion of which is serviced by the Company.

The Company has also broadened its operating business mix both within and beyond its historical education-focused activities. These businesses include banking and other financial services conducted through the Company’s bank and other subsidiaries, asset management and related customer-facing servicing, real estate development and management, reinsurance operations, renewable energy development, and selected strategic interests in early-stage, emerging growth, and other operating enterprises. The Company actively manages such businesses and holds interests in them for strategic and operational purposes.

The Company was formed as a Nebraska corporation in 1978 to service federal student loans for two local banks. The Company built on this initial foundation as a servicer to become a leading originator, holder, and servicer of federal student loans, principally consisting of loans originated under the FFEL Program.

The Health Care and Education Reconciliation Act of 2010 discontinued new loan originations under the FFEL Program, effective July 1, 2010, and requires all new federal student loan originations be made directly by the Department through the Federal Direct Loan Program. This law does not alter or affect the terms and conditions of existing FFELP loans. Subsequent to the Reconciliation Act of 2010, the Company no longer originates FFELP loans. However, a significant portion of the Company's income continues to be derived from its existing FFELP student loan portfolio. Interest income on the Company's existing FFELP loan portfolio will decline over time as the portfolio is paid down. To reduce its reliance on interest income from FFELP loans, the Company has expanded its services and products. This expansion has been accomplished through internal growth and innovation as well as acquisitions. The Company is also actively expanding its private education, consumer, and other loan portfolios, or residual interests therein, and as part of this strategy launched Nelnet Bank in 2020. In addition, the Company has been servicing federally owned student loans for the Department since 2009.

GAAP Net Income and Non-GAAP Net Income, Excluding Adjustments

The Company prepares its financial statements and presents its financial results in accordance with GAAP. However, it also provides additional non-GAAP financial information related to specific items management believes to be important in the evaluation of its operating results and performance. A reconciliation of the Company's GAAP net income to Non-GAAP net income excluding derivative market value adjustments, and a discussion of why the Company believes providing this additional information is useful to investors, are provided below.


	Three months ended				Year ended
	December 31, 2025		September 30, 2025	December 31, 2024	December 31, 2025	December 31, 2024
GAAP net income attributable to Nelnet, Inc.	$	57,771	106,684	63,159	428,474	184,045
Realized and unrealized derivative market value adjustments (a)	(1,879)		788	(13,792)	9,098	(10,124)
Tax effect (b)	451		(189)	3,310	(2,184)	2,430
Non-GAAP net income attributable to Nelnet, Inc., excluding derivative market value adjustments	$	56,343	107,283	52,677	435,388	176,351
Earnings per share:
GAAP net income attributable to Nelnet, Inc.	$	1.60	2.94	1.73	11.79	5.02
Realized and unrealized derivative market value adjustments (a)	(0.05)		0.02	(0.38)	0.25	(0.28)
Tax effect (b)	0.01		(0.01)	0.09	(0.06)	0.07
Non-GAAP net income attributable to Nelnet, Inc., excluding derivative market value adjustments	$	1.56	2.95	1.44	11.98	4.81

(a)"Derivative market value adjustments" includes both the realized portion of gains and losses (corresponding to variation margin received or paid on derivative instruments that are settled daily at a central clearinghouse) and the unrealized portion of gains and losses that are caused by changes in fair values of derivatives which do not qualify for "hedge treatment" under GAAP. "Derivative market value adjustments" does not include "derivative settlements" that represent the cash paid or received during the respective period to settle with derivative instrument counterparties the economic effect of the Company's derivative instruments based on their contractual terms.

The accounting for derivatives requires that changes in the fair value of derivative instruments be recognized currently in earnings, with no fair value adjustment of the hedged item, unless specific hedge accounting criteria are met. Management has structured all of the Company’s derivative transactions with the intent that each is economically effective; however, the majority of the Company’s derivative instruments do not qualify for hedge accounting in the consolidated financial statements. As a result, the change in fair value for the derivative instruments that do not qualify for hedge accounting is reported in current period earnings with no consideration for the corresponding change in fair value of the hedged item. Under GAAP, the cumulative net realized and unrealized gain or loss caused by changes in fair values of derivatives in which the Company plans to hold to maturity will generally equal zero over the life of the contract. However, the net realized and unrealized gain or loss during any given reporting period fluctuates significantly from period to period.

The Company believes these point-in-time estimates of asset and liability values related to its derivative instruments that are subject to interest rate fluctuations are subject to volatility mostly due to timing and market factors beyond the control of management, and affect the period-to-period comparability of the results of operations. Accordingly, the Company’s management utilizes operating results excluding these items for comparability purposes when making decisions regarding the Company’s performance and in presentations with credit rating agencies, lenders, and investors. Consequently, the Company reports this non-GAAP information because the Company believes that it provides additional information regarding operational and performance indicators that are closely assessed by management and represents what earnings would have been had these derivatives qualified for hedge accounting. There is no comprehensive, authoritative guidance for the presentation of such non-GAAP information, which is only meant to supplement GAAP results by providing additional information that management utilizes to assess performance.

(b)The tax effects are calculated by multiplying the realized and unrealized derivative market value adjustments by the applicable statutory income tax rate.

Operating Segments

A description of the Company's reportable operating segments is included in note 1 of the notes to consolidated financial statements included in the Company's 2025 Annual Report. The Company's reportable operating segments include:

•Loan Servicing and Systems (LSS) - referred to as Nelnet Diversified Services (NDS)

•Education Technology Services and Payments (ETSP) - referred to as Nelnet Business Services (NBS)

•Asset Generation and Management (AGM), part of the Nelnet Financial Services (NFS) division

•Nelnet Bank, part of the NFS division

The Company earns fee-based revenue through its NDS and NBS reportable operating segments. The Company earns net interest income on its loan portfolio, consisting primarily of FFELP loans, through its AGM reportable operating segment. This segment is expected to generate significant amounts of cash as the FFELP portfolio amortizes. The Company actively works to maximize the amount and timing of cash flows generated from its FFELP portfolio and seeks to acquire additional loan assets to leverage its servicing scale and expertise to generate incremental earnings and cash flow. Nelnet Bank operates as an internet industrial bank franchise focused on the private education and unsecured consumer loan markets, with a home office in Salt Lake City, Utah.

The NFS division was formed to focus on the Company’s key objective to maximize the amount and timing of cash flows generated from its FFELP portfolio and reposition itself for the post-FFELP environment by expanding its private education, consumer, and other loan portfolios. In addition to AGM and Nelnet Bank being part of the NFS division, NFS’s other operating segments that are not reportable include the operating results of:

•Nelnet Insurance Services, which primarily includes multiple reinsurance treaties on property and casualty policies

•Whitetail Rock Capital Management, LLC (WRCM), the Company's U.S. Securities and Exchange Commission (SEC)-registered investment advisor subsidiary

•The Company’s ownership and activities in real estate

•The Company’s ownership and management of its bond portfolio (primarily student loan and other asset-backed securities)

Other business activities and operating segments that are not reportable and not part of the NFS division are combined and included in Corporate and Other Activities ("Corporate"). Corporate includes the following items:

•Shared service activities related to human resources, accounting, legal, enterprise risk management, information technology, occupancy, and marketing. These costs are allocated to each operating segment based on estimated use of such activities and services

•Corporate costs and overhead functions not allocated to operating segments, including executive management, innovation initiatives, and other holding company organizational costs

•The operating results of the Company’s participation in renewable energy solar developments through tax equity structures and administrative and management services provided by the Company on solar tax equity investments made by third parties

•The operating results of Nelnet Renewable Energy, the Company’s solar engineering, procurement, and construction business. The Company sold its ownership interest in Nelnet Renewable Energy during the fourth quarter of 2025.

•The operating results of certain of the Company’s investment activities, including its ownership in ALLO Holdings LLC, a holding company for ALLO Communications LLC (collectively referred to as “ALLO”) and early-stage and emerging growth companies (venture capital)

•Interest income earned on cash balances held at the corporate level and interest expense incurred on unsecured corporate related debt transactions

•Other product and service offerings that are not considered reportable operating segments

The following table presents the operating results (net income (loss) before taxes) for each of the Company’s reportable and certain other operating segments reconciled to the consolidated financial statements:


	Three months ended				Year ended
	December 31, 2025		September 30, 2025	December 31, 2024	December 31, 2025	December 31, 2024
NDS	$	11,649	46,270	26,810	96,389	40,497
NBS	16,993		24,957	17,851	112,957	117,896
Nelnet Financial Services division:
AGM	32,630		36,621	33,490	126,480	75,202
Nelnet Bank	7,040		6,088	5,387	14,613	(1,942)
Nelnet Insurance Services	7,941		4,061	3,408	15,209	11,332
WRCM	1,247		1,933	1,357	5,972	5,391
Real estate	(5,723)		1,513	(1,107)	(6,152)	(3,333)
Bond portfolio	10,410		12,936	7,736	39,441	42,328
Corporate:
Unallocated shared services and corporate costs	(10,073)		(9,909)	(16,805)	(41,893)	(46,194)
Renewable energy solar developments	(7,485)		(15,497)	6,585	(23,770)	(2,179)
Nelnet Renewable Energy - solar construction	(27,341)		(6,025)	(17,046)	(57,540)	(35,972)
ALLO	148		1,137	6,133	194,936	8,087
Venture capital	(206)		33,520	2,063	38,874	6,912
Other corporate activities	9,053		(1,268)	2,504	10,418	10,481
Eliminations/reclassifications	94		112	77	398	77
Net income before taxes	46,378		136,448	78,443	526,332	228,584
Income tax expense	(7,691)		(35,773)	(15,016)	(127,986)	(52,669)
Net loss (income) attributable to noncontrolling interests	19,084		6,009	(268)	30,128	8,130
Net income	$	57,771	106,684	63,159	428,474	184,045

Impact of Significant Transactions on 2025 Operating Highlights

Operating results for fiscal year 2025 were materially affected by certain transactions which are summarized below.

Partial Redemption of ALLO Membership Interests

ALLO, a fiber communication services provider, was a former majority-owned subsidiary, until a recapitalization of ALLO in 2020 resulted in a deconsolidation of ALLO from the Company’s consolidated financial statements. In June 2025, ALLO redeemed certain of its membership interests from members, including Nelnet. As part of the transaction, ALLO redeemed more than 50% of Nelnet’s voting membership interest in ALLO and all its outstanding preferred membership interest. At the closing of the transaction, Nelnet received cash proceeds of $410.9 million from ALLO related to these redemptions and recognized a pre-tax gain of $175.0 million, attributable to the redemption of the voting membership interest. This gain is included in “ALLO” in the above table. Following the transaction, Nelnet maintains a significant voting equity interest in ALLO. Nelnet’s ownership of voting membership interest in ALLO decreased from 45% to 27%.

Government Servicing Contract

Upon reaching a final agreement with the Department of Education, the Company's Loan Servicing and Systems operating segment (NDS) recognized $32.9 million of non-recurring revenue in the third quarter 2025 on a contract modification for services previously performed. This revenue is included in the operating results of “NDS” in the above table.

Venture Capital

The Company has an interest in CompanyCam, Inc. (“CompanyCam”), a technology company that provides a photo-based, cloud managed application designed for contractors and field service professionals to document projects in real-time. In August 2025, CompanyCam completed an additional equity raise and accepted tender offers to redeem existing equity holders with a portion of the proceeds. The Company redeemed a portion of its interest and received cash proceeds of $10.1 million and recognized a pre-tax gain of $7.8 million. The Company accounts for its interest in CompanyCam using the measurement alternative method, which

requires it to adjust its carrying value for changes resulting from observable market transactions. As a result of CompanyCam’s equity raise, the Company recognized a pre-tax gain of $22.4 million during the third quarter of 2025 to adjust its carrying value of its remaining interest in CompanyCam to reflect the August 2025 transaction value. These gains are included in “Venture capital” in the above table. After the completion of this transaction, the carrying amount of the Company’s remaining interest in CompanyCam is $31.7 million.

Reversal of Provision for Loan Losses for Loans Sold

In July 2025, the Company sold $203.3 million of consumer loans to an unrelated third party who securitized such loans. As partial consideration received for the loans sold, the Company received a residual interest in the loan securitization that is included in “other investments and notes receivable, net” on the Company's consolidated balance sheet. Once a loan is classified as held for sale, any allowance for loan losses that existed immediately prior to the reclassification to held for sale is reversed. The Company reduced its allowance (and recognized negative provision expense) of $28.9 million (that increased income) related to this loan sale. The reversal of the allowance related to this loan sale is included in the operating results of “AGM” in the above table.

Nelnet Renewable Energy (NRE)

NRE was the Company’s solar construction subsidiary, providing full‑service engineering, procurement, and construction (EPC) services. The Company entered the EPC business through its acquisition of GRNE Solar in July 2022. Following the acquisition, NRE experienced low and, in certain cases, negative margins on projects. In addition, changes in legislation reducing clean energy tax incentives, tariff uncertainty, and rising construction costs adversely affected revenue and net income. As a result of these factors, the Company sold NRE in November 2025.

For the year ended December 31, 2025, NRE generated a net loss before taxes of $57.5 million, as reflected in the table above. Although the Company retained a limited number of construction contracts to complete following the sale, the Company does not expect the operating results from such contracts to be significant in future periods.

Recent Development

On February 2, 2026, the Company acquired a Canadian student loan servicing business for CAD $130.5 million (USD $95.7 million). The acquired business (“NDS Canada”) delivers technology-enabled student loan servicing for governments and financial institutions, managing 2.7 million borrowers on proprietary platforms. Beginning on the acquisition date, the operating results of NDS Canada will be included in the Loan Servicing and Systems reportable operating segment.

Segment Reporting

The following tables present the results of each of the Company's reportable operating segments reconciled to the consolidated financial statements:


	Three months ended December 31, 2025
	Reportable Segments						Reconciling Items
	Loan Servicing and Systems (LSS)		Education Technology Services and Payments (ETSP)	Asset Generation and Management	Nelnet Bank	Total Reportable Segments	NFS Other Operating Segments	Corporate and Other Activities	Eliminations/ Reclassifications	Total
Interest income:
Loan interest	$	—	—	167,109	17,716	184,825	—	—	—	184,825



Investment interest	565		5,556	11,763	16,200	34,084	16,680	2,923	(13,128)	40,559
Total interest income	565		5,556	178,872	33,916	218,909	16,680	2,923	(13,128)	225,384



Interest expense	—		—	115,383	16,356	131,739	1,380	(1,718)	(13,128)	118,273
Net interest income	565		5,556	63,489	17,560	87,170	15,300	4,641	—	107,111
Less provision (negative provision) for loan losses	—		—	32,491	5,656	38,147	—	—	—	38,147
Less provision for beneficial interests	—		—	2,679	—	2,679	—	—	—	2,679
Net interest income after provision	565		5,556	28,319	11,904	46,344	15,300	4,641	—	66,285
Other income (expense):
LSS revenue	116,573		—	—	—	116,573	—	—	—	116,573
ETSP revenue	—		112,314	—	—	112,314	—	—	—	112,314
Intersegment revenue	5,559		66	—	—	5,625	—	—	(5,625)	—
Reinsurance premiums earned	—		—	—	—	—	33,539	—	—	33,539
Solar construction revenue	—		—	—	—	—	—	3,379	—	3,379
Other, net	128		—	17,100	1,482	18,710	(3,121)	1,067	93	16,749

Gain on partial redemption of ALLO investment	—		—	—	—	—	—	—	—	—
Derivative settlements, net	—		—	339	112	451	—	—	—	451
Derivative market value adjustments, net	—		—	225	747	972	—	907	—	1,879
Total other income (expense), net	122,260		112,380	17,664	2,341	254,645	30,418	5,353	(5,532)	284,884
Cost of services and expenses:



Total cost of services	2,056		38,654	—	—	40,710	—	12,326	—	53,036
Salaries and benefits	66,557		43,055	1,702	3,022	114,336	888	25,874	(12)	141,086
Depreciation and amortization	2,769		3,445	—	354	6,568	—	2,797	—	9,365
Reinsurance losses and underwriting expenses	—		—	—	—	—	25,715	—	—	25,715
Postage expense	9,483					9,483			(9,483)	—
Servicing fees				8,566	862	9,428			(9,428)	—
Impairment expense	—		—	—	—	—	3,920	13,300	—	17,220
Other expenses	13,480		9,474	1,888	2,244	27,086	1,024	16,793	13,467	58,369
Intersegment expenses, net	16,831		6,315	1,197	723	25,066	296	(25,192)	(170)	—
Total operating expenses	109,120		62,289	13,353	7,205	191,967	31,843	33,572	(5,626)	251,755

Income (loss) before income taxes	11,649		16,993	32,630	7,040	68,312	13,875	(35,904)	94	46,378
Income tax (expense) benefit	(2,796)		(4,078)	(7,827)	(1,746)	(16,447)	(3,305)	12,061	—	(7,691)
Net income (loss)	8,853		12,915	24,803	5,294	51,865	10,570	(23,843)	94	38,687
Net (income) loss attributable to noncontrolling interests	—		—	(18)	—	(18)	(104)	19,300	(94)	19,084
Net income (loss) attributable to Nelnet, Inc.	$	8,853	12,915	24,785	5,294	51,847	10,466	(4,543)	—	57,771


	Three months ended September 30, 2025
	Reportable Segments						Reconciling Items
	Loan Servicing and Systems (LSS)		Education Technology Services and Payments (ETSP)	Asset Generation and Management	Nelnet Bank	Total Reportable Segments	NFS Other Operating Segments	Corporate and Other Activities	Eliminations/ Reclassifications	Total
Interest income:
Loan interest	$	—	—	145,984	16,733	162,717	—	—	—	162,717



Investment interest	531		8,564	12,051	14,849	35,995	14,985	3,134	(10,872)	43,241
Total interest income	531		8,564	158,035	31,582	198,712	14,985	3,134	(10,872)	205,958



Interest expense	—		—	113,350	16,179	129,529	1,359	692	(10,872)	120,708
Net interest income	531		8,564	44,685	15,403	69,183	13,626	2,442	—	85,250
Less provision (negative provision) for loan losses	—		—	(7,374)	3,811	(3,563)	—	—	—	(3,563)
Less provision for beneficial interests	—		—	2,145	—	2,145	—	—	—	2,145
Net interest income after provision	531		8,564	49,914	11,592	70,601	13,626	2,442	—	86,668
Other income (expense):
LSS revenue	151,052		—	—	—	151,052	—	—	—	151,052
ETSP revenue	—		129,321	—	—	129,321	—	—	—	129,321
Intersegment revenue	5,313		70	—	—	5,383	—	—	(5,383)	—
Reinsurance premiums earned	—		—	—	—	—	23,165	—	—	23,165
Solar construction revenue	—		—	—	—	—	—	5,738	—	5,738
Other, net	105		—	(2,277)	1,308	(864)	5,674	28,336	112	33,258

Gain on partial redemption of ALLO investment	—		—	—	—	—	—	—	—	—
Derivative settlements, net	—		—	594	167	761	—	—	—	761
Derivative market value adjustments, net	—		—	(461)	(327)	(788)	—	—	—	(788)
Total other income (expense), net	156,470		129,391	(2,144)	1,148	284,865	28,839	34,074	(5,271)	342,507
Cost of services and expenses:



Total cost of services	2,021		50,363	—	—	52,384	—	7,607	—	59,991
Salaries and benefits	70,126		43,029	1,971	2,817	117,943	668	26,193	(26)	144,778
Depreciation and amortization	1,725		2,504	—	355	4,584	—	2,743	—	7,327
Reinsurance losses and underwriting expenses	—		—	—	—	—	19,962	—	—	19,962
Postage expense	8,735					8,735			(8,735)	—
Servicing fees				6,687	838	7,525			(7,525)	—
Impairment expense	—		1,145	—	—	1,145	—	5,855	—	7,000
Other expenses	10,862		9,537	1,243	1,916	23,558	1,103	17,901	11,107	53,669
Intersegment expenses, net	17,262		6,420	1,248	726	25,656	289	(25,741)	(204)	—
Total operating expenses	108,710		62,635	11,149	6,652	189,146	22,022	26,951	(5,383)	232,736

Income (loss) before income taxes	46,270		24,957	36,621	6,088	113,936	20,443	1,958	112	136,448
Income tax (expense) benefit	(11,105)		(5,990)	(8,783)	(1,483)	(27,361)	(4,866)	(3,547)	—	(35,773)
Net income (loss)	35,165		18,967	27,838	4,605	86,575	15,577	(1,589)	112	100,675
Net (income) loss attributable to noncontrolling interests	—		—	(27)	—	(27)	(169)	6,317	(112)	6,009
Net income (loss) attributable to Nelnet, Inc.	$	35,165	18,967	27,811	4,605	86,548	15,408	4,728	—	106,684


	Three months ended December 31, 2024
	Reportable Segments						Reconciling Items
	Loan Servicing and Systems (LSS)		Education Technology Services and Payments (ETSP)	Asset Generation and Management	Nelnet Bank	Total Reportable Segments	NFS Other Operating Segments	Corporate and Other Activities	Eliminations/ Reclassifications	Total
Interest income:
Loan interest	$	—	—	165,210	13,224	178,434	—	—	—	178,434



Investment interest	831		6,576	13,789	12,691	33,887	10,447	2,207	(3,726)	42,815
Total interest income	831		6,576	178,999	25,915	212,321	10,447	2,207	(3,726)	221,249



Interest expense	—		—	130,668	12,987	143,655	1,568	(327)	(3,726)	141,170
Net interest income	831		6,576	48,331	12,928	68,666	8,879	2,534	—	80,079
Less provision (negative provision) for loan losses	—		—	13,493	8,564	22,057	—	—	—	22,057
Less provision for beneficial interests	—		—	4,628	—	4,628	—	—	—	4,628
Net interest income after provision	831		6,576	30,210	4,364	41,981	8,879	2,534	—	53,394
Other income (expense):
LSS revenue	137,981		—	—	—	137,981	—	—	—	137,981
ETSP revenue	—		108,335	—	—	108,335	—	—	—	108,335
Intersegment revenue	6,073		55	—	—	6,128	—	—	(6,128)	—
Reinsurance premiums earned	—		—	—	—	—	18,673	—	—	18,673
Solar construction revenue	—		—	—	—	—	—	13,828	—	13,828
Other, net	684		—	4,682	960	6,326	1,549	19,884	77	27,836

Gain on partial redemption of ALLO investment	—		—	—	—	—	—	—	—	—
Derivative settlements, net	—		—	860	227	1,087	—	—	—	1,087
Derivative market value adjustments, net	—		—	8,297	5,495	13,792	—	—	—	13,792
Total other income (expense), net	144,738		108,390	13,839	6,682	273,649	20,222	33,712	(6,051)	321,532
Cost of services and expenses:



Total cost of services	1,497		38,658	—	—	40,155	—	28,558	—	68,713
Salaries and benefits	76,194		42,760	1,255	2,631	122,840	457	23,989	(57)	147,229
Depreciation and amortization	4,171		2,519	—	338	7,028	—	5,516	—	12,544
Reinsurance losses and underwriting expenses	—		—	—	—	—	16,180	—	—	16,180
Postage expense	8,470					8,470			(8,470)	—
Servicing fees				7,087	662	7,749			(7,749)	—
Impairment expense	736		—	—	—	736	—	400	—	1,136
Other expenses	12,163		8,509	936	1,396	23,004	882	16,220	10,575	50,681
Intersegment expenses, net	15,528		4,669	1,281	632	22,110	188	(21,871)	(427)	—
Total operating expenses	117,262		58,457	10,559	5,659	191,937	17,707	24,254	(6,128)	227,770

Income (loss) before income taxes	26,810		17,851	33,490	5,387	83,538	11,394	(16,566)	77	78,443
Income tax (expense) benefit	(6,434)		(4,298)	(8,038)	(1,222)	(19,992)	(2,711)	7,688	—	(15,016)
Net income (loss)	20,376		13,553	25,452	4,165	63,546	8,683	(8,878)	77	63,427
Net (income) loss attributable to noncontrolling interests	—		57	—	—	57	(97)	(151)	(77)	(268)
Net income (loss) attributable to Nelnet, Inc.	$	20,376	13,610	25,452	4,165	63,603	8,586	(9,029)	—	63,159


	Year ended December 31, 2025
	Reportable Segments						Reconciling Items
	Loan Servicing and Systems (LSS)		Education Technology Services and Payments (ETSP)	Asset Generation and Management	Nelnet Bank	Total Reportable Segments	NFS Other Operating Segments	Corporate and Other Activities	Eliminations/ Reclassifications	Total
Interest income:
Loan interest	$	—	—	624,861	61,224	686,085	—	—	—	686,085



Investment interest	2,441		26,476	49,226	57,478	135,621	49,356	11,029	(30,632)	165,374
Total interest income	2,441		26,476	674,087	118,702	821,706	49,356	11,029	(30,632)	851,459



Interest expense	—		—	463,102	59,284	522,386	4,938	258	(30,632)	496,950
Net interest income	2,441		26,476	210,985	59,418	299,320	44,418	10,771	—	354,509
Less provision (negative provision) for loan losses	—		—	49,261	18,590	67,851	—	—	—	67,851
Less provision for beneficial interests	—		—	11,311	—	11,311	—	—	—	11,311
Net interest income after provision	2,441		26,476	150,413	40,828	220,158	44,418	10,771	—	275,347
Other income (expense):
LSS revenue	509,089		—	—	—	509,089	—	—	—	509,089
ETSP revenue	—		507,150	—	—	507,150	—	—	—	507,150
Intersegment revenue	22,158		265	—	—	22,423	—	—	(22,423)	—
Reinsurance premiums earned	—		—	—	—	—	107,502	—	—	107,502
Solar construction revenue	—		—	—	—	—	—	14,371	—	14,371
Other, net	459		—	27,235	3,324	31,018	8,928	57,244	397	97,587

Gain on partial redemption of ALLO investment	—		—	—	—	—	—	175,044	—	175,044
Derivative settlements, net	—		—	2,094	606	2,700	—	—	—	2,700
Derivative market value adjustments, net	—		—	(6,196)	(3,809)	(10,005)	—	907	—	(9,098)
Total other income (expense), net	531,706		507,415	23,133	121	1,062,375	116,430	247,566	(22,026)	1,404,345
Cost of services and expenses:



Total cost of services	7,555		176,907	—	—	184,462	—	41,810	—	226,272
Salaries and benefits	271,806		169,424	6,363	11,446	459,039	2,573	97,346	(172)	558,786
Depreciation and amortization	8,969		10,884	—	1,400	21,253	—	12,318	—	33,571
Reinsurance losses and underwriting expenses	—		—	—	—	—	93,551	—	—	93,551
Postage expense	35,344					35,344			(35,344)	—
Servicing fees				29,266	3,191	32,457			(32,457)	—
Impairment expense	—		1,145	—	—	1,145	4,001	24,466	—	29,612
Other expenses	46,273		37,962	6,483	7,487	98,205	5,104	61,975	46,284	211,568
Intersegment expenses, net	67,811		24,612	4,954	2,812	100,189	1,149	(100,603)	(735)	—
Total operating expenses	430,203		244,027	47,066	26,336	747,632	106,378	95,502	(22,424)	927,088

Income (loss) before income taxes	96,389		112,957	126,480	14,613	350,439	54,470	121,025	398	526,332
Income tax (expense) benefit	(23,134)		(27,120)	(30,335)	(3,562)	(84,151)	(12,950)	(30,885)	—	(127,986)
Net income (loss)	73,255		85,837	96,145	11,051	266,288	41,520	90,140	398	398,346
Net (income) loss attributable to noncontrolling interests	—		45	(85)	—	(40)	(511)	31,077	(398)	30,128
Net income (loss) attributable to Nelnet, Inc.	$	73,255	85,882	96,060	11,051	266,248	41,009	121,217	—	428,474


	Year ended December 31, 2024
	Reportable Segments						Reconciling Items
	Loan Servicing and Systems (LSS)		Education Technology Services and Payments (ETSP)	Asset Generation and Management	Nelnet Bank	Total Reportable Segments	NFS Other Operating Segments	Corporate and Other Activities	Eliminations/ Reclassifications	Total
Interest income:
Loan interest	$	—	—	749,117	38,381	787,498	—	—	—	787,498



Investment interest	4,877		29,891	68,302	45,992	149,062	54,357	11,773	(29,291)	185,901
Total interest income	4,877		29,891	817,419	84,373	936,560	54,357	11,773	(29,291)	973,399



Interest expense	—		—	654,346	44,859	699,205	8,837	1,787	(29,291)	680,537
Net interest income	4,877		29,891	163,073	39,514	237,355	45,520	9,986	—	292,862
Less provision (negative provision) for loan losses	—		—	27,691	26,916	54,607	—	—	—	54,607
Less provision for beneficial interests	—		—	39,491	—	39,491	—	—	—	39,491
Net interest income after provision	4,877		29,891	95,891	12,598	143,257	45,520	9,986	—	198,764
Other income (expense):
LSS revenue	482,408		—	—	—	482,408	—	—	—	482,408
ETSP revenue	—		486,962	—	—	486,962	—	—	—	486,962
Intersegment revenue	24,493		220	—	—	24,713	—	—	(24,713)	—
Reinsurance premiums earned	—		—	—	—	—	62,923	—	—	62,923
Solar construction revenue	—		—	—	—	—	—	56,569	—	56,569
Other, net	2,769		—	14,236	2,951	19,956	8,313	31,613	77	59,959

Gain on partial redemption of ALLO investment	—		—	—	—	—	—	—	—	—
Derivative settlements, net	—		—	5,217	917	6,134	—	—	—	6,134
Derivative market value adjustments, net	—		—	5,422	4,702	10,124	—	—	—	10,124
Total other income (expense), net	509,670		487,182	24,875	8,570	1,030,297	71,236	88,182	(24,636)	1,165,079
Cost of services and expenses:



Total cost of services	1,889		172,763	—	—	174,652	—	77,673	—	252,325
Salaries and benefits	300,366		164,716	4,784	11,122	480,988	1,587	96,148	(1,792)	576,931
Depreciation and amortization	19,475		10,531	—	1,282	31,288	—	26,828	—	58,116
Reinsurance losses and underwriting expenses	—		—	—	—	—	55,246	—	—	55,246
Postage expense	36,820					36,820			(36,820)	—
Servicing fees				31,591	1,373	32,964			(32,964)	—
Impairment expense	736		—	—	—	736	—	2,402	—	3,138
Other expenses	43,282		32,281	4,152	6,972	86,687	3,352	53,581	45,883	189,503
Intersegment expenses, net	71,482		18,886	5,037	2,361	97,766	853	(99,599)	980	—
Total operating expenses	472,161		226,414	45,564	23,110	767,249	61,038	79,360	(24,713)	882,934

Income (loss) before income taxes	40,497		117,896	75,202	(1,942)	231,653	55,718	(58,865)	77	228,584
Income tax (expense) benefit	(9,719)		(28,333)	(18,048)	579	(55,521)	(13,261)	16,114	—	(52,669)
Net income (loss)	30,778		89,563	57,154	(1,363)	176,132	42,457	(42,751)	77	175,915
Net (income) loss attributable to noncontrolling interests	—		158	—	—	158	(463)	8,512	(77)	8,130
Net income (loss) attributable to Nelnet, Inc.	$	30,778	89,721	57,154	(1,363)	176,290	41,994	(34,239)	—	184,045

Loan Servicing and Systems Revenue

The following table presents disaggregated revenue by service offering for the Loan Servicing and Systems operating segment:


	Three months ended				Year ended
	December 31, 2025		September 30, 2025	December 31, 2024	December 31, 2025	December 31, 2024
Government loan servicing (a)	$	78,075	112,798	103,217	363,970	380,921
Private education and consumer loan servicing	24,751		24,293	24,819	94,472	63,453
FFELP loan servicing	1,969		2,035	2,642	8,878	12,212
Software services	11,389		10,584	6,415	38,416	21,032
Outsourced services	389		1,342	888	3,353	4,790
Loan servicing and systems revenue	$	116,573	151,052	137,981	509,089	482,408

(a) Upon reaching a final agreement with the Department, the Company recognized $32.9 million of non-recurring revenue in the third quarter of 2025 on a contract modification for services previously performed. In the fourth quarter of 2024, the Company recognized $10.9 million of non-recurring revenue to reflect a settlement related to certain provisions included in the legacy contract concerning inflation adjustments.

Loan Servicing Volumes


	As of
	December 31, 2025		September 30, 2025	June 30, 2025	March 31, 2025	December 31, 2024	September 30, 2024	June 30, 2024	March 31, 2024	December 31, 2023
Servicing volume (dollars in millions):
Government	$	434,479	458,679	465,689	482,786	489,877	492,142	489,298	495,409	494,691
FFELP	11,594		11,982	12,386	12,826	13,260	13,745	14,576	15,783	17,462
Private and consumer	40,088		38,060	38,018	46,728	29,226	20,666	19,876	21,015	20,493
Total	$	486,161	508,721	516,093	542,340	532,363	526,553	523,750	532,207	532,646

Number of servicing borrowers:
Government	11,426,789		12,387,665	12,694,386	13,453,127	14,049,550	14,114,468	14,096,152	14,328,013	14,503,057
FFELP	463,109		482,696	502,205	524,421	549,861	574,979	610,745	656,814	725,866
Private and consumer	1,349,414		1,325,037	1,326,451	1,350,999	1,168,293	851,747	829,072	882,256	894,703
Total	13,239,312		14,195,398	14,523,042	15,328,547	15,767,704	15,541,194	15,535,969	15,867,083	16,123,626

Number of remote hosted borrowers:	2,886,458		2,839,493	2,056,358	1,427,800	842,200	662,075	133,681	65,295	70,580

Education Technology Services and Payments Revenue

The following table presents disaggregated revenue by servicing offering for the Education Technology Services and Payments operating segment:


	Three months ended				Year ended
	December 31, 2025		September 30, 2025	December 31, 2024	December 31, 2025	December 31, 2024
Tuition payment plan services	$	32,189	32,971	31,149	141,246	135,851
Payment processing	44,782		59,484	41,117	193,317	179,043
Education technology services	34,982		36,323	35,759	171,481	169,065
Other	361		543	310	1,106	3,003
Education technology services and payments revenue	$	112,314	129,321	108,335	507,150	486,962

Other Income (Expense)

The following table presents the components of "other, net" in "other income (expense)" on the consolidated statements of income:


	Three months ended				Year ended
	December 31, 2025		September 30, 2025	December 31, 2024	December 31, 2025	December 31, 2024
Investment activity, net	$	4,855	42,317	4,989	61,072	12,438
ALLO preferred return	148		—	6,133	14,548	17,486
Solar consulting fee income	10,250		1,775	1,940	13,127	6,134
Borrower late fee income	6,617		1,817	1,369	11,664	8,828
Administration/sponsor fee income	1,422		2,267	1,375	6,400	5,823
Investment advisory services (WRCM)	1,378		2,010	1,508	6,366	5,934
Loss from ALLO voting membership interest	—		—	—	—	(10,693)
(Loss) gain from solar investments, net (a)	(17,100)		(10,884)	4,559	(29,029)	(6,477)
Gain (loss) on debt repurchases	3,016		(8,304)	56	(4,849)	54
(Loss) gain on sale of loans, net	(158)		(2,472)	42	(1,720)	(1,643)
Other	6,321		4,732	5,865	20,008	22,075
Other, net	$	16,749	33,258	27,836	97,587	59,959

(a) The Company accounts for its solar tax equity interests using the Hypothetical Liquidation at Book Value (HLBV) method of accounting. For the majority of these partnerships, the HLBV method results in accelerated losses during the early years of the investment, followed by gains recognized at the conclusion of the contractual agreement (generally 5 years). The following table presents (i) HLBV losses recognized by the Company and gains recognized upon the sale of partnership interests, including amounts attributable to third-party noncontrolling interest partners (syndication partners), which are included in “other, net” in "other income (expense)" on the consolidated statements of income, (ii) solar net losses and gains attributed to noncontrolling interest partners included in “net loss attributable to noncontrolling interests” on the consolidated statements of income, and (iii) the recognized pre-tax net gain (loss) attributable to the Company:


	Three months ended				Year ended
	December 31, 2025		September 30, 2025	December 31, 2024	December 31, 2025	December 31, 2024
Losses from HLBV accounting (gross)	$	(29,799)	(10,884)	(6,530)	(49,762)	(21,774)
Gains from sales (gross)	12,699		—	11,089	20,733	15,297
(Losses) gains from solar investments, net	(17,100)		(10,884)	4,559	(29,029)	(6,477)


Less: (losses) gains attributable to noncontrolling members, net	(18,066)		(5,659)	970	(27,930)	(4,599)
Net gain (loss) attributable to the Company	$	966	(5,225)	3,589	(1,099)	(1,878)

Impairment Expense

The following table presents the impairment charges by asset and reportable operating segment:


				Nelnet Financial Services
	Loan Servicing and Systems		Education Technology Services and Payments	Asset Generation and Management	Nelnet Bank	NFS Other Operating Segments	Corporate and Other Activities	Total
	Three months ended December 31, 2025
Property and equipment - solar facilities	$	—	—	—	—	—	9,865	9,865

Investments - real estate and venture capital	—		—	—	—	3,920	3,435	7,355







	$	—	—	—	—	3,920	13,300	17,220

	Three months ended September 30, 2025
Investments - solar tax equity	$	—	—	—	—	—	5,761	5,761
Leases, buildings, and associated improvements	—		—	—	—	—	94	94
Property and equipment - internally developed software			1,145					1,145

	$	—	1,145	—	—	—	5,855	7,000

	Three months ended December 31, 2024




Leases, buildings, and associated improvements	736		—	—	—	—	—	736


Investments - venture capital	—		—	—	—	—	400	400


	$	736	—	—	—	—	400	1,136
	Year ended December 31, 2025
Property and equipment - solar facilities	$	—	—	—	—	—	11,767	11,767

Investments - real estate and venture capital	—		—	—	—	4,001	3,575	7,576
Investments - solar tax equity	—		—	—	—	—	5,761	5,761
Leases, buildings, and associated improvements	—		—	—	—	—	3,363	3,363
Property and equipment - internally developed software	—		1,145	—	—	—	—	1,145




	$	—	1,145	—	—	4,001	24,466	29,612

	Year ended December 31, 2024
Property and equipment - solar facilities	$	—	—	—	—	—	1,170	1,170



Leases, buildings, and associated improvements	736		—	—	—	—	—	736

Other assets - solar inventory	—		—	—	—	—	695	695
Investments - venture capital	—		—	—	—	—	537	537


	$	736	—	—	—	—	2,402	3,138

Loans and Accrued Interest Receivable and Allowance for Loan Losses

Loans and accrued interest receivable and allowance for loan losses consisted of the following:


	As of		As of	As of
	December 31, 2025		September 30, 2025	December 31, 2024
Non-Nelnet Bank:
Federally insured loans:
Stafford and other	$	1,772,172	1,889,476	2,108,960
Consolidation	5,665,071		5,970,781	6,279,604
Total	7,437,243		7,860,257	8,388,564
Private education loans	139,209		147,737	221,744
Consumer loans and other financing receivables (a)	1,122,717		840,739	345,560
Non-Nelnet Bank loans	8,699,169		8,848,733	8,955,868
Nelnet Bank:
Federally insured loans:
Stafford and other	23,960		24,745	—
Consolidation	148,360		154,203	—
Total	172,320		178,948	—
Private education loans	518,634		529,396	482,445
Consumer and other loans	266,608		266,539	162,152
Nelnet Bank loans	957,562		974,883	644,597
Accrued interest receivable	528,936		558,912	549,283
Loan discount and deferred lender fees, net of unamortized loan premiums and deferred origination costs	(46,894)		(47,735)	(42,114)
Allowance for loan losses:
Non-Nelnet Bank:
Federally insured loans	(42,080)		(43,535)	(49,091)
Private education loans	(6,894)		(7,103)	(11,130)
Consumer loans and other financing receivables	(57,360)		(33,147)	(38,468)
Non-Nelnet Bank allowance for loan losses	(106,334)		(83,785)	(98,689)
Nelnet Bank:
Federally insured loans	(676)		(707)	—
Private education loans	(12,932)		(11,732)	(10,086)
Consumer and other loans	(12,136)		(11,308)	(6,115)
Nelnet Bank allowance for loan losses	(25,744)		(23,747)	(16,201)
	$	10,006,695	10,227,261	9,992,744

(a)Included in "consumer loans and other financing receivables" in the above table are Pay Later receivables that the Company began to purchase in the third quarter of 2025. As of September 30, 2025 and December 31, 2025, the balance of Pay Later receivables was $548.3 million and $744.2 million, respectively.

The Company has partial ownership in certain consumer, private education, and federally insured student loan securitizations that are accounted for as held-to-maturity beneficial interest investments and included in "other investments and notes receivable, net" in the Company's consolidated financial statements. As of the latest remittance reports filed by the various trusts prior to or as of December 31, 2025, the Company’s ownership correlates to approximately $1.83 billion of loans included in these securitizations. The loans held in these securitizations are not included in the above table. Investment interest income earned by the Company from the beneficial interest in loan securitizations is included in "investment interest" on the Company's consolidated statements of income and is not a component of the Company's loan interest income.

The following table summarizes the allowance for loan losses as a percentage of the ending loan balance for each of the Company's loan portfolios:


	As of		As of		As of
	December 31, 2025		September 30, 2025		December 31, 2024
Non-Nelnet Bank:
Federally insured loans (a)	0.57	%	0.55	%	0.59	%
Private education loans	4.95	%	4.81	%	5.02	%
Consumer loans and other financing receivables (b)	5.11	%	3.94	%	11.13	%
Nelnet Bank:
Federally insured loans (a)	0.39	%	0.40	%	—
Private education loans	2.49	%	2.22	%	2.09	%
Consumer and other loans	4.55	%	4.24	%	3.77	%

(a)The allowance for loan losses as a percent of the risk sharing component of federally insured student loans not covered by the federal guaranty for Non-Nelnet Bank was 19.3%, 19.4%, and 20.6% as of December 31, 2025, September 30, 2025 and December 31, 2024, respectively, and for Nelnet Bank was 17.3% and 17.4% as of December 31, 2025 and September 30, 2025, respectively.

(b)In the third quarter of 2025, the Company began to purchase Pay Later receivables that have lower allowance rates.

Loan Activity - Non-Nelnet Bank

The following table sets forth the activity of AGM's (Non-Nelnet Bank) loan portfolios:


	FFELP		Private	Consumer loans and other financing receivables	Total
	Three months ended December 31, 2025
Balance as of September 30, 2025	$	7,860,257	147,737	840,739	8,848,733
Loan acquisitions (a)	480,092		—	3,355,189	3,835,281
Repayments, claims, capitalized interest, participations, and other, net	(234,488)		(7,820)	(3,072,926)	(3,315,234)
Loans lost to external parties	(9,689)		(708)	—	(10,397)
Loans sold	(658,929)		—	(285)	(659,214)

Balance as of December 31, 2025	$	7,437,243	139,209	1,122,717	8,699,169

	Three months ended September 30, 2025
Balance as of June 30, 2025	$	8,367,085	156,614	411,470	8,935,169
Loan acquisitions (a)	70,301		—	1,516,370	1,586,671
Repayments, claims, capitalized interest, participations, and other, net	(214,179)		(8,084)	(883,850)	(1,106,113)
Loans lost to external parties	(55,470)		(793)	—	(56,263)
Loans sold	(229,983)		—	(203,251)	(433,234)
Loans contributed to Nelnet Bank	(77,497)		—	—	(77,497)
Balance as of September 30, 2025	$	7,860,257	147,737	840,739	8,848,733
	Three months ended December 31, 2024
Balance as of September 30, 2024	$	9,070,742	234,295	244,552	9,549,589
Loan acquisitions	2,000		—	194,333	196,333
Repayments, claims, capitalized interest, participations, and other, net	(248,071)		(11,005)	(80,677)	(339,753)
Loans lost to external parties	(57,208)		(1,546)	—	(58,754)
Loans sold	(378,899)		—	(12,648)	(391,547)
Balance as of December 31, 2024	$	8,388,564	221,744	345,560	8,955,868

	Year ended December 31, 2025
Balance as of December 31, 2024	$	8,388,564	221,744	345,560	8,955,868
Loan acquisitions (a)	1,253,819		—	5,143,849	6,397,668
Repayments, claims, capitalized interest, participations, and other, net	(916,038)		(37,359)	(4,163,008)	(5,116,405)
Loans lost to external parties	(190,694)		(3,003)	—	(193,697)
Loans sold	(1,020,911)		—	(203,684)	(1,224,595)
Loans contributed to Nelnet Bank	(77,497)		(42,173)	—	(119,670)
Balance as of December 31, 2025	$	7,437,243	139,209	1,122,717	8,699,169

	Year ended December 31, 2024
Balance as of December 31, 2023	$	11,686,207	277,320	85,935	12,049,462
Loan acquisitions	106,916		—	599,543	706,459
Repayments, claims, capitalized interest, participations, and other, net	(1,209,242)		(51,262)	(191,931)	(1,452,435)
Loans lost to external parties	(1,616,724)		(4,314)	—	(1,621,038)
Loans sold	(578,593)		—	(147,987)	(726,580)
Balance as of December 31, 2024	$	8,388,564	221,744	345,560	8,955,868

(a)The Company began to acquire Pay Later receivables during 2025. Consumer loan acquisitions excluding Pay Later receivables was $187.5 million and $169.9 million during the three months ended December 31, 2025 and September 30, 2025, respectively, and $629.7 million during the year ended December 31, 2025.

Loan Spread Analysis - Non-Nelnet Bank

The following table analyzes the loan spread on AGM’s (Non-Nelnet Bank) portfolio of loans, which represents the spread between the yield earned on loan assets and the costs of the liabilities and derivative instruments used to fund the assets.


	Three months ended							Year ended
	December 31, 2025			September 30, 2025		December 31, 2024		December 31, 2025		December 31, 2024
Variable loan yield, gross	6.69		%	6.89	%	7.85	%	7.20	%	8.03	%
Consolidation rebate fees	(0.78)			(0.83)		(0.80)		(0.80)		(0.80)
Discount accretion, net of premium and deferred origination costs amortization	1.40			0.50		(0.08)		0.40		0.02
Variable loan yield, net	7.31			6.56		6.97		6.80		7.25
Loan cost of funds - interest expense (a)	(5.22)			(5.34)		(5.86)		(5.39)		(6.34)
Loan cost of funds - basis swap derivative settlements (b)	0.01			0.01		0.01		0.01		0.01
Variable loan spread	2.10			1.23		1.12		1.42		0.92
Fixed-rate floor income, gross	0.06			0.05		0.03		0.04		0.01
Fixed-rate floor income - derivative settlements (b)	0.01			0.02		0.03		0.02		0.04
Fixed-rate floor income, net of settlements on derivatives	0.07			0.07		0.06		0.06		0.05
Core loan spread	2.17		%	1.30	%	1.18	%	1.48	%	0.97	%

Average balance of AGM's loans	$	9,005,162		8,774,923		9,403,661		9,134,995		10,310,430
Average balance of AGM's debt outstanding	7,923,923			7,775,269		8,654,618		8,145,206		9,871,828

(a)The Company recognized $0.7 million and $5.6 million in non-cash interest expense during the fourth quarter of 2024 and third quarter of 2024, respectively, as a result of writing off the remaining unamortized debt discount related to the redemption of certain asset-backed debt securities prior to their maturity. The impact of this non-cash expense was excluded in the table above.

(b)Derivative settlements represent the cash paid or received during the respective period to settle with derivative instrument counterparties the economic effect of the Company's derivative instruments based on their contractual terms. Derivative accounting requires that net settlements with respect to derivatives that do not qualify for "hedge treatment" under GAAP be recorded in a separate income statement line item below net interest income. The Company maintains an overall risk management strategy that incorporates the use of derivative instruments to reduce the economic effect of interest rate volatility. As such, management believes derivative settlements for each applicable period should be evaluated with the Company’s net interest income (loan spread) as presented in this table. The Company reports this non-GAAP information because the Company believes that it provides additional information regarding operational and performance indicators that are closely assessed by management. There is no comprehensive, authoritative guidance for the presentation of such non-GAAP information, which is only meant to supplement GAAP results by providing additional information that management utilizes to assess performance.

A reconciliation of core loan spread, which includes the impact of derivative settlements on loan spread, to loan spread without derivative settlements follows:


	Three months ended						Year ended
	December 31, 2025		September 30, 2025		December 31, 2024		December 31, 2025		December 31, 2024
Core loan spread	2.17	%	1.30	%	1.18	%	1.48	%	0.97	%
Derivative settlements (basis swaps)	(0.01)		(0.01)		(0.01)		(0.01)		(0.01)
Derivative settlements (fixed-rate floor income)	(0.01)		(0.02)		(0.03)		(0.02)		(0.04)
Loan spread	2.15	%	1.27	%	1.14	%	1.45	%	0.92	%

Loan Activity - Nelnet Bank

The following table sets forth the activity of Nelnet Bank's loan portfolios:


	FFELP		Private	Consumer and other	Total
	Three months ended December 31, 2025
Balance as of September 30, 2025	$	178,948	529,396	266,539	974,883
Loan acquisitions and originations	—		12,357	12,820	25,177
Repayments	(6,628)		(23,119)	(12,751)	(42,498)

Balance as of December 31, 2025	$	172,320	518,634	266,608	957,562

	Three months ended September 30, 2025
Balance as of June 30, 2025	$	106,555	516,663	204,423	827,641
Loan acquisitions and originations	—		36,175	74,654	110,829
Repayments	(5,104)		(23,442)	(12,538)	(41,084)

Loans contributed from AGM	77,497		—	—	77,497
Balance as of September 30, 2025	$	178,948	529,396	266,539	974,883
	Three months ended December 31, 2024
Balance as of September 30, 2024	$	—	352,654	207,218	559,872
Loan acquisitions and originations	—		151,966	34,268	186,234
Repayments	—		(22,175)	(14,246)	(36,421)
Loans sold to AGM	—		—	(65,088)	(65,088)
Balance as of December 31, 2024	$	—	482,445	162,152	644,597
	Year ended December 31, 2025
Balance as of December 31, 2024	$	—	482,445	162,152	644,597
Loan acquisitions and originations	111,040		85,929	142,207	339,176
Repayments	(16,217)		(91,913)	(37,751)	(145,881)

Loans contributed from AGM	77,497		42,173	—	119,670
Balance as of December 31, 2025	$	172,320	518,634	266,608	957,562
	Year ended December 31, 2024
Balance as of December 31, 2023	$	—	360,520	72,352	432,872
Loan acquisitions and originations	—		180,919	210,527	391,446
Repayments	—		(58,994)	(55,639)	(114,633)
Loans sold to AGM	—		—	(65,088)	(65,088)
Balance as of December 31, 2024	$	—	482,445	162,152	644,597

Average Balance Sheet - Nelnet Bank

The following table reflects the rates earned on interest-earning assets and paid on interest-bearing liabilities:


	Three months ended (a)												Year ended December 31, (a)
	December 31, 2025				September 30, 2025				December 31, 2024				2025				2024
	Balance		Rate		Balance		Rate		Balance		Rate		Balance		Rate		Balance		Rate
Average assets
Federally insured student loans	$	175,177	5.92	%	$	155,873	6.24	%	$	—	—	%	$	116,745	6.11	%	$	—	—	%
Private education loans	524,149		6.42		517,782		6.45		482,380		6.41		512,860		6.34		390,195		4.98
Consumer and other loans	267,451		9.83		227,211		10.25		194,105		11.17		210,106		10.27		160,648		11.79
Cash and investments	1,045,948		6.14		957,479		6.15		713,497		7.08		930,816		6.18		642,102		7.16
Total interest-earning assets	2,012,725		6.69	%	1,858,345		6.74	%	1,389,982		7.42	%	1,770,527		6.70	%	1,192,945		7.07	%
Non-interest-earning assets	26,783				19,203				19,592				18,569				16,653
Total assets	$	2,039,508			$	1,877,548			$	1,409,574			$	1,789,096			$	1,209,598
Average liabilities and equity
Brokered deposits	$	298,501	2.28	%	$	269,913	2.12	%	$	248,497	1.95	%	$	271,826	2.12	%	$	234,423	1.80	%
Intercompany deposits	185,990		3.90		168,768		4.02		107,866		3.92		146,886		3.90		145,868		4.64
Retail and other deposits	1,277,257		3.94		1,173,846		4.24		854,323		4.59		1,122,848		4.15		666,392		4.85
Federal funds purchased and other borrowed money	3		4.06		25,038		4.92		24,532		10.02		12,182		5.01		6,167		10.02
Total interest-bearing liabilities	1,761,751		3.66	%	1,637,565		3.88	%	1,235,218		4.11	%	1,553,742		3.78	%	1,052,850		4.17	%
Non-interest-bearing liabilities	14,225				12,999				8,347				11,486				7,928
Equity	263,532				226,984				166,009				223,868				148,820
Total liabilities and equity	$	2,039,508			$	1,877,548			$	1,409,574			$	1,789,096			$	1,209,598
Net interest margin			3.49	%			3.32	%			3.76	%			3.39	%			3.39	%

(a) Calculated using average daily balances.

2025 Letter to Shareholders | Page 1 Dear Shareholder: It is Nelnet’s goal to make our stakeholders’ dreams come true over a long-time horizon. This requires us to be insatiable life-long learners and business builders, to possess disciplined adherence to our core values, and to be meticulous in the execution of our plans. Aristotle said, “We are what we repeatedly do. Excellence, then, is not an act, but a habit.” Across the three major divisions of Nelnet—Nelnet Financial Services (NFS), Nelnet Diversified Services (NDS), and Nelnet Business Services (NBS)—our teams have developed excellence as a habit. The Nelnet teams knocked the ball out of the park in 2025 with record earnings of $428.5 million, or $11.79 per share. We have dramatically shifted the earnings of the company to be generated from diversified sources. The core earnings of each of our three major divisions were all incredibly solid, and we also had four large one-time items that had an outsized effect on our earnings. Three were positive and one was negative: • ALLO partial redemption: Nelnet recorded a $175.0 million gain in the second quarter of 2025 from the partial redemption of our interest in ALLO, contributing $133.0 million after tax, or $3.66 per share. • NDS non‑recurring revenue: The company recognized $32.9 million in non‑recurring revenue on a contract modification for services previously performed, resulting in $25.0 million after tax, or $0.69 per share. • CompanyCam gain: The company realized a $30.2 million gain from a partial redemption and carrying value adjustment related to our venture investment in CompanyCam, generating $23.0 million after tax, or $0.63 per share. • Solar construction loss: Nelnet Renewable Energy (NRE) reported a loss in 2025 of $57.5 million from its solar construction business, equating to $43.7 million after tax, or $1.20 per share. Excluding the above items, our earnings were stellar at $291.2 million, or $8.01 per share. These results underscore our ability to generate value—and our responsibility to make clear-eyed decisions when a business no longer aligns with that objective. When it becomes evident that you are riding a dead horse, it is time to dismount. We jumped out of the saddle and exited the solar construction business at the end of 2025, with plenty of tuition paid. Wearing chaps in this case didn’t help; we are still sore. However, in regard to our “non-construction” solar activities, we are confident we have created significant value in our solar tax-equity, syndication, and consulting business, and we believe there is material future value to be recognized over the next several years. This business is more closely aligned with our core strengths, as it is fundamentally built on financing transactions within a complex regulatory environment. We believe our expertise in navigating these frameworks positions us to create lasting value. February 26, 2026

2025 Letter to Shareholders | Page 2 Last year, we shared a lot about the unrealized value of various interests we have carried on the balance sheet. We recognized some of that value in 2025 with the ALLO and CompanyCam transactions. We believe we still have a significant amount of unrealized value in these businesses as well as in real estate, solar tax equity, and other major ventures. There have been so many noteworthy achievements at Nelnet in 2025; allow me to call out some of them: Nelnet Financial Services (NFS) • NFS earnings have increased by $67 million in pre-tax income year over year. This is the first time since 2018 that our loan balance went up, as our legacy Federal Family Education Loan Program (FFELP) portfolio runoff slowed and we added more consumer loans to our balance sheet. • We executed a multi-year agreement with Klarna and purchased over $4 billion of receivables. • We deployed $130 million in real estate investments, which we are confident will generate returns on equity (ROE) in the mid-teens. Nelnet’s Corporate Performance (Annual Percentage Change) Nelnet Per Share Book Value With Dividends Included Nelnet Per Share Market Value With Dividends Included S&P 500 With Dividends Included Net Income Reinvested1 (in millions) 2004 49.2% 20.2% 10.9% $149 2005 41.5% 51.1% 4.9% $181 2006 6.3% (32.7%) 15.8% $6 2007 (1.6%) (52.5%) 5.5% ($63) 2008 6.6% 13.3% (37.0%) $24 2009 21.0% 20.7% 26.5% $135 2010 23.7% 41.6% 15.1% $115 2011 22.6% 4.9% 2.1% $160 2012 16.7% 27.5% 16.0% $89 2013 26.1% 42.8% 32.4% $271 2014 21.1% 10.9% 13.7% $273 2015 16.0% (26.6%) 1.4% $153 2016 15.4% 52.7% 12.0% $166 2017 8.8% 9.1% 21.8% $80 2018 9.9% (3.2%) (4.4%) $156 2019 6.2% 12.7% 31.5% $72 2020 15.6% 23.7% 18.4% $247 2021 14.5% 38.4% 28.7% $295 2022 12.0% (6.1%) (18.1%) $273 2023 3.4% (1.6%) 26.3% $22 2024 6.4% 22.3% 25.0% $60 2025 12.6% 25.6% 17.9% $316 CAGR/Total 15.6% 9.7% 10.7% $3,180 1We believe well-managed companies do not distribute to the shareholders all their earnings. Instead, they retain a part of their earnings and reinvest the capital to grow the business. Since going public in late 2003, the company has recognized $4.7 billion in cumulative net income and, of that amount, has reinvested $3.2 billion – or 68 percent of our earnings over time – back into the business.

2025 Letter to Shareholders | Page 3 Nelnet Diversified Services (NDS) • We successfully converted over 250,000 loans owned by SoFi, capping a two-year effort to migrate their student loan portfolio to our system. • We signed a five-year contract extension with one of our major loan servicing bank customers. • We entered an agreement to take over the servicing operations for 2.7 million Canadian student loan borrowers, which closed on February 2, 2026. Nelnet Business Services (NBS) • FACTS was awarded contracts with the archdioceses of New York and Washington, D.C, meaning we now work with every archdiocese in the United States. • HigherSchool adapted to a dynamic funding environment by partnering with the New York City Department of Education to deliver exceptional education services to K–12 schools, while also capitalizing on unforeseen, one-time summer supplemental service opportunities. • Nelnet Campus Commerce successfully secured its largest renewal in company history, demonstrating the strength of our platform and the trust our clients place in our ability to serve their evolving needs. Corporate • We achieved an all-time low in associate turnover. • Our productivity gains hit an all-time high due to our investments in artificial intelligence (AI). All divisions are progressing with AI adoption and utilization. We are seeing incredible results. As innovation continues to accelerate societally, we are confident our ability to move quickly and adapt positions us to thrive amid uncertainty. Something that is becoming obvious in the world we live in today is that there is no such thing as “normal.” Innovation continues to intensify at a faster rate at every turn. We assume seismic shocks will continue to occur in geopolitical events, technological advancements, and in political systems and norms. In our opinion, that means more disruption and more volatility in business and markets in the years to come. We are not fearful of uncertainty; in fact, uncertainty in the market is our greatest advantage as we tend to move quickly. Mike Dunlap, executive chairman, and I are both from multigenerational families of hunters and we have learned that in a very short period of time, and factoring in rapidly changing, real-time information, you have to be prepared to take the arrow out of the quiver, put it in the bow, and be ready to draw, aim, and shoot. Or not. We can’t predict the future, but we believe we have strategically positioned ourselves to thrive in whatever environment the future holds. A company needs to hunt or be hunted, and we are constantly on the prowl for new customers, new products, new ventures, new businesses, and new ways of having fun along the way. Speed is more important than ever. We believe we have positioned the company to be able to move quickly and decisively when we recognize a strategic opportunity. We have cultivated a culture that is adaptable by design. In fact, our messaging internally to our associates this year is simply “Go.” Don’t succumb to paralysis by analysis; when you have enough information…“Go.” When you see an opportunity to automate tasks, increase revenue, or enter a new market…“Go.” Predict, pivot, prevail. Don’t hesitate, “Go.”

2025 Letter to Shareholders | Page 4 // Nelnet Financial Services Pre-tax income for the division was $196 million in 2025, which is up $67 million from the prior year. Prepayment speeds declined and have stabilized on our FFELP portfolio since the fall of 2024. However, this does not change the reality that the FFELP portfolio continues to decline in both size and strategic importance across Nelnet. Accordingly, and as we have since 2010, we continue to seek opportunities to replace our FFELP portfolio and income with financial assets where we believe we can achieve strong risk-adjusted returns. Additionally, in a perfect world, we would leverage our servicing and banking capabilities alongside asset acquisitions. In 2025, we were able to continue purchasing assets and expanding servicing relationships with a few of our longer-term partners, in addition to establishing some new relationships. One opportunity highlighted in the news was our acquisition of Klarna “Pay in 4” loans. We believe this will be a strong long-term relationship that provides a diversified asset for Nelnet, particularly given the uniquely short-term nature of the Pay in 4 product. Nelnet Bank made considerable strides in 2025, which is a testament to the foundational work that has been put in place in our Utah-based operation over the last several years and to our ability to grow the bank’s asset base with high‑quality investments. We are incredibly excited to bring on additional talent at the bank‑officer level, including the hiring of Rohit Dewan as Nelnet Bank’s chief executive officer (CEO). Rohit brings a diversified background with significant experience in consumer lending, investing, and the development of new origination programs. Nelnet Bank continues to make progress in improving our private student loan and home‑improvement loan origination programs, both in quality and quantity. 2026 will be a pivotal year in student lending with the wind-down of the federal Grad PLUS Program, and we are evaluating where we are best positioned to offer new programs that serve borrowers, schools, and the bank most effectively. 2025 also saw the largest year in deploying capital in our real estate portfolio and continued positive performance of our reinsurance and Whitetail Rock investment advisory businesses. Our real estate team partners with third parties who have either asset-specific or geographic expertise that allows them to run day-to-day operations. Our portfolio is concentrated in multifamily and industrial assets and is targeting mid- to high-teen returns on an annual basis, with an expected hold period of three to seven years. However, we have no requirement to sell if we expect a longer-term hold would drive a better outcome. Below is a summary of NFS’s pre-tax income for ’24 and ’25. 2024 2025 Portfolio (referred to as Asset Generation and Management) $75.2 $126.5 Nelnet Bank ($1.9) $14.6 Nelnet Insurance Services $11.3 $15.2 Real Estate ($3.3) ($6.2) Whitetail Rock Capital Management $5.4 $6.0 Bond Portfolio / Notes Receivable $42.3 $39.4 Total NFS $129.0 $195.5

2025 Letter to Shareholders | Page 5 // Nelnet Diversified Services The loan servicing and business process outsourcing division of Nelnet had a spectacular year, growing year-over-year pre-tax income by $56 million to $96 million in 2025, including $32.9 million (mentioned above) in non‑recurring revenue for work previously completed. In 2024, the NDS team consolidated all our direct loan servicing onto a single technology platform and made some dramatic investments in process automation with the use of artificial intelligence. These investments in technology were expensed in 2024 as they occurred, which caused a temporary drop in net income that year, while allowing us to reposition the technology and processing teams to projects that propel our future growth. As we expected, we saw a dramatic improvement in customer service and reduction in expenses throughout 2025 as these efficiencies were realized. At the same time, NDS grew our consumer loan business to $94 million in revenue, up 49% from the prior year. In 2025, we successfully converted a major new private loan client, SoFi, onto our technology platform, which we’re proud of and eager to expand on the relationship in the years ahead. To cap off the year, we announced the acquisition of the Canadian student loan servicer, increasing our servicing operation by 2.7 million borrower customers internationally. We now have even better customer service, are more diversified, earn more revenue, and operate at a lower expense structure. In the government student loan servicing world, our job is primarily three-fold. Every time a change in administration occurs, we need to implement the initiatives of the new administration, administer the loan repayment programs established by Congress, all while helping millions of borrowers navigate the highly complex loan programs with care and excellent customer service. Our role is and remains non-partisan. We are the subject matter experts and maintain the best service and technology in the industry. This year, we successfully implemented the return-to-repayment mandates by the current administration as well as worked on the new loan repayment programs and future loan options authorized under the One Big Beautiful Bill—all while serving borrowers, federal and state government agencies, and regulators. It is no easy task, but we feel very positive about our role in these critical loan programs for the students and families in the United States and now in Canada. // Nelnet Business Services After a record 2024, NBS showed our ongoing commitment to excellence in how we operate, innovate, and serve our clients. Our 2025 financial performance reflected this commitment as the division achieved strong sales results across NBS’s core business units. Customer retention rates remained exceptional as well, surpassing 97% in both our K–12 (FACTS) and higher education (Nelnet Campus Commerce) businesses and reinforcing the trust and loyalty of the institutions and families we support.

2025 Letter to Shareholders | Page 6 In 2025, NBS launched our first AI-powered virtual agent in our consumer call center—a milestone that enhances service efficiency and improves the customer experience. We expanded our capabilities by integrating AI search tools into NBS’s content management platforms and equipping all NBS development teams with an enterprise AI coding strategy. The establishment of the NBS AI Center of Excellence is expected to further position us to lead our AI efforts proactively and responsibly amid the changing digital landscape. NBS continued to innovate within the segment’s core businesses through meaningful product advancements. The initial phase of development was completed for NBS’s new payments platform, paving the way for client migration from our legacy QuikPay system. FACTS launched a new analytics dashboard to empower clients with actionable data to support decision-making and serve families more effectively. We also strengthened NBS’s financial aid assessment solutions by integrating Internal Revenue Service data to improve accuracy and streamline the process for schools and families. Our Nelnet Business Services teams delivered exceptional outcomes in sales and client partnerships including strong momentum in New York. The segment’s Brooklyn-based education services team helped secure a significant increase in incremental summer school contracts, far surpassing previous years. The Archdiocese of New York was also implemented, the largest FACTS client to date, and NBS renewed and expanded our relationship with the largest higher education client within Nelnet Campus Commerce. In the new markets development area, our newly built childcare management product was released into beta testing. Finally, 2025 was a year of strengthening NBS’s foundations as we invested in updating payment processes to reduce costs, improve efficiencies, and support new and emerging payment methods—all while implementing a new CRM (customer relationship management) platform to enhance organizational alignment and operational excellence. // ALLO Earlier in the year, we decided to take some more chips off the table with ALLO, decreasing our ownership interest from 45% to 27%, which we carry on our books at zero due to the accounting for this partnership under the equity method. We believe in ALLO’s underlying mission and the products and services they deliver, but ALLO doesn’t necessarily fit well within Nelnet’s core competencies and general operations. In past letters, we have shared various interests or partnerships we believed had unrealized or hidden value beyond what the market was representing in our market capitalization, and this was one of those cases.

2025 Letter to Shareholders | Page 7 // Hudl We continue to hold a meaningful interest in Hudl, a global leader in sports technology. Their unified, cloud-native SaaS platform is purpose-built to serve as the digital backbone of the modern sports organization, equipping customers with tools and insights to elevate performance, drive recruitment, prevent injury, deepen fan engagement, and streamline operations. Hudl serves as the primary digital workspace for more than 325,000 teams around the world, providing a broad suite of mission-critical solutions that address the needs of all sports, all levels of competition, and all key users within a sports organization. Hudl’s platform is vertically integrated from the point of capture and powered by AI to provide a seamless flow of connected video and data from the game directly into their products, giving their users fast and actionable insights. It’s hard to believe, but Hudl will celebrate 20 years this May. Hudl would be quick to point out that the first few years were full of ups and downs, mistakes made, and lessons learned. They paid real tuition, but as Mike (Hudl board member) would say, the key was that they tried to avoid paying the same tuition twice. They looked at every setback as a bump in the road and made sure they maximized the learning opportunities from each one so they’d be better prepared the next time. In talking with the Hudl team, there is no specific moment in time where they would say they achieved excellence, or even where they knew that they’d “made it” as a startup. Instead, they’d point to the consistent pattern of knowing what they don’t know, listening to their customers, not being afraid to tackle hard problems, and recognizing how advancements in technology allows Hudl to create more value for their customers and enter new markets they’re well-suited to win. As we step back and reflect on Nelnet’s strengths and core competencies, it’s important that we continue to lead with open-mindedness, recognizing that insight comes from many perspectives and, as individuals, our own thoughts can be inherently limited—perhaps even bordering on the perimeter of ignorance. With that in mind, throughout the years, we have shaped the business around five key lessons inspired by business magnate Warren Buffett: 1. A long-term view is critical 2. Intrinsic value is created by free cash flow 3. Mergers and acquisitions: Prefer great businesses at a fair price over fair businesses at a great price 4. Enduring moat: Sustainable barriers to entry 5. Circle of competence: Focus on our strengths We know that our strengths lie at the intersection of payments, consumer lending, loan servicing, and technology—paired with deep expertise in customer service and finance—with a primary focus on the education market. We’re fortunate to have exceptional people, strong processes, deep competitive advantages across our core businesses, significant capital to deploy, and the patience and foresight to invest for the long term.

2025 Letter to Shareholders | Page 8 // A Message from Executive Chairman Mike Dunlap After more than 25 years of dedicated service, Tim Tewes—president of Nelnet and CEO of Nelnet Business Services—will retire in June. Tim has done a remarkable job growing NBS from $20 million in revenue, when we acquired the company in 2005, to over $500 million in revenue today. Tim has been instrumental in shaping Nelnet into the strong, diversified company it is today. He began as executive vice president of FACTS Management in 2000 and joined Nelnet when FACTS was acquired in 2005. In 2007, Tim became president and CEO of NBS and later assumed the role of president of Nelnet in 2014. Throughout his career, Tim exemplified Nelnet’s core values, with a steadfast commitment to delivering exceptional customer experiences. His leadership drove strategic acquisitions, expanded product offerings, and positioned Nelnet for long-term growth. Under Tim’s guidance, we strengthened our ability to serve schools and families nationwide, leading to FACTS and Nelnet Campus Commerce becoming market leaders in customer service and technology solutions. Tim also played a pivotal role in launching Nelnet Bank—a milestone that will shape our consumer lending business for years to come. Tim’s thoughtful leadership, integrity, and customer-first approach have left an enduring impact on Nelnet. While he looks forward to working in his family businesses and spending more time with family after retirement, we’re fortunate he will continue serving on the Nelnet Bank Board of Directors. Please join us in congratulating Tim on his remarkable career and wishing him happiness and fulfillment in his next chapter. Tim’s career and impact are a powerful reflection of the core values that continue to define Nelnet as a company. In short, our values are centered around the following: • Customer • Associate • Diversification • Open communication (being respectfully blunt) • Giving back (to the communities in which we work and live) I am going to focus on Diversification and clarify a misconception that often arises about Nelnet’s vision. There are four key attributes to a great business: 1. Will people pay you for your product or service; do they see value? 2. Profit margin; can you make money selling your product or service? 3. What does it cost you to acquire a new customer, and do you still have a profit margin after this cost? 4. Low customer turnover; does the customer keep coming back creating recurring revenue?

2025 Letter to Shareholders | Page 9 I am frequently asked about the company’s vision or perceived lack thereof. Our vision is relatively straightforward: we continue to work on building a “great” business and improving on what we have built so far by focusing on our customers within our core competencies (finance, payments, servicing, software, education), empowering our associates to deliver exceptional value, and deploying capital to add new products, new customers, and new services. I would also describe our vision as opportunistic. As the fog lifts in front of the car’s headlights, be prepared to seize the opportunity. Every year, we get asked, “Where are you going to invest the excess cash flow?” Our best response is to say, “Look at what we have done in the past; the future will most likely look somewhat similar.” We like businesses with recurring revenue that include software/hardware as a service. We think this helps create a defendable moat. Capital Deployment by Year (in millions) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 12-Year Total FFELP loan/residual acquisitions, net of financing $127 $140 - - $105 $71 $141 $39 $49 - - - $672 Private and consumer loan/residual acquisitions, net of financing $17 $173 $61 $75 $188 $61 $71 $143 $269 $501 $444 $441 $2,444 Nelnet Bank - - - - - - $100 - $30 $5 $37 $106 $278 Business acquisitions $47 - - - $153 - $30 - $34 - - - $264 ALLO acquisition and capital expenditures - $47 $39 $115 $87 $45 $48 - $48 $8 $53 $10 $500 Other capital expenditures (non-ALLO) $26 $17 $29 $41 $38 $48 $65 $59 $59 $74 $21 $26 $503 Hudl $1 $41 - $10 - - $26 $5 - $32 $3 $4 $122 Other investments (including ABS, net/real estate/solar) $45 $53 $22 $19 $67 $103 $396 $726 $667 ($171) $424 $593 $2,944 Debt repurchases $47 $42 $77 $181 $13 - $26 $407 $67 $5 $8 $760 $1,633 Stock repurchases $16 $96 $69 $69 $45 $40 $73 $58 $98 $28 $83 $69 $744 Dividends $19 $19 $21 $24 $27 $29 $32 $34 $37 $39 $41 $43 $365 $345 $628 $318 $534 $723 $397 $1,008 $1,471 $1,358 $521 $1,114 $2,052 $10,469

2025 Letter to Shareholders | Page 10 FFELP SERVICING 22%NBS 5% FFELP ASSETS 25% FFELP FLOOR/DERIVATIVES 48% NBS 27% NDS 24% FFELP SERVICING <1% FFELP ASSETS 17% (FLOOR/DERIVATIVES < 1%) 2009 2025 NFS 49% FFELP SERVICING 22%NBS 5% FFELP ASSETS 25% FFELP FLOOR/DERIVATIVES 48% NBS 27% NDS 24% FFELP SERVICING <1% FFELP ASSETS 17% (FLOOR/DERIVATIVES < 1%) 2009 2025 NFS 49% 2025 was truly an exceptional year on Nelnet’s continued journey to diversify and grow our business. During the financial crisis in 2009, 95% of Nelnet’s pre-tax income came from the Federal Family Education Loan Program, 73% from owning loans and 22% from servicing, compared with 17% of pre-tax income from FFELP today. By 2009, it was clear that the private–public partnership on student loans (FFELP) was nearing its end. Legislation passed in 2007 (the College Cost Reduction and Access Act) significantly eroded FFELP profitability. The financial crisis subsequently paved the way for the government to take full control of the student loan program—promising to generate billions in savings. Challenging and conflicting political environments, poor accountability, and flawed policies led the government’s direct student loan program to suffer losses in the hundreds of billions of dollars. This has been further compounded by moral hazard created through repeated repayment delays and promises of loan forgiveness. History shows that when market forces are removed and the government assumes control of an industry—such as student loans—or materially interferes and dominates sectors like health care, the result is often significant inflation and a host of unintended consequences. Who is John Galt? How remarkable has our transformation been since 2009? By 2025—excluding the one-time items previously mentioned—our payment plan business accounts for 27% of pre-tax income, servicing contributes 24% (two-thirds from direct lending), and Nelnet Financial Services represents 49%, down from 73% in 2009, now supported by a much broader mix of assets. From 2009 to 2022, we benefited significantly from a favorable interest rate environment, generating over $1.9 billion in fixed-rate floor income. Unlike some competitors who sold the floors on their loans for pennies on the dollar, we retained ours and strategically implemented hedges to lock in spreads protecting our fixed-rate floor and managing basis repricing differences—adding another approximately $300 million in income. In this higher interest rate environment, where one-time gains and floor income are de minimis, our net income reflects a strong upward trend. In fact, earnings per share (excluding non-recurring items) have grown from $3.25 in 2023 to $4.81 in 2024 and $8.01 in 2025. As I’ve said before, our goal is for each Nelnet shareholder to record a gain or loss in market value proportional to the gain or loss in per-share fundamental (intrinsic) value recorded by the company. To achieve this goal, we strive to maintain a one-to-one relationship between the company’s fundamental value and market value. As that implies, we would rather see Nelnet’s stock price at a fair level than at an artificial level. Our fair value approach may not be preferred by all investors, but we believe it aligns with Nelnet’s long-term approach to both our business model and market value. However, from time to time, Mrs./Mr. Market can be irrational and will materially overvalue or undervalue the investments they currently love or hate. Short term, Mrs./Mr. Market is a voting machine; long-term the market is a weighing machine. See the following graphs for details on our diversification and earnings over time. Pre-Tax Income Excluding Corporate and ALLO 2009 2025

2025 Letter to Shareholders | Page 11 I want to express my sincere gratitude to all our associates for their unwavering dedication to our customers and commitment to excellence. These outstanding results are the product of hard work, perseverance, and true teamwork. And thank you to our shareholders for your continued support. // Closing At the time of writing this letter, and almost certainly as you read this, our country seems to be more polarized than ever. With each new year, the same appears to be true. That said, if one were to never watch the news, or read a newspaper, or look at social media and instead focus on controllable things, life would probably seem pretty good for most people. This suggests fear is being used as a selling tactic. At Nelnet, we’re entering 2026 with confidence and optimism. We’ve positioned our core businesses for long-term success and continue investing in technology, new and existing products, services, markets, and—importantly—our people and communities. That optimism extends across the U.S. and Canada, and right here in Nebraska, home to our headquarters, the Huskers, and a little March Madness energy to carry us forward. We appreciate the continued confidence our shareholders place in Nelnet and remain committed to delivering long-term value. Dream, Learn, Grow. Jeffrey Noordhoek, Chief Executive Officer

2025 Letter to Shareholders | Page 12 // Nelnet Board of Directors // Nelnet Bank Board of Directors Matthew Dunlap Michael Dunlap Preeta Bansal Kathleen Farrell David Graff Thomas Henning Kimberly Rath Adam Peterson Jona Van Deun Carine Strom Clark Michael Dunlap Tim Tewes Connie Edmond Richard Morrin Anthony Goins Jaime Pack

2025 Letter to Shareholders | Page 13 Forward-Looking and Cautionary Statements This letter to shareholders contains forward-looking statements within the meaning of federal securities laws. The words “anticipate,” “assume,” “believe,” "confident," "continue," “could,” “ensure,” “estimate,” “expect,” “forecast,” “future,” “intend,” “may,” “plan,” “potential,” “predict,” “scheduled,” “should,” “will,” “would,” and similar expressions, as well as statements in future tense, are intended to identify forward-looking statements. These statements are based on management's current expectations as of the date of this letter and are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results and performance to be materially different from any future results or performance expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to: risks related to the ability to successfully maintain and increase allocated volumes of student loans serviced by the company under existing and future servicing contracts with the Department of Education, risks related to unfavorable contract modifications or interpretations, risks related to consistently meeting service requirements to avoid the assessment of penalties, and risks related to the company's ability to comply with agreements with third-party customers for the servicing of Federal Direct Loan Program, FFEL Program, private education, and consumer loans; loan portfolio risks, such as credit risk, prepayment risk, interest rate basis and repricing risk, risks related to the use of derivatives to manage exposure to interest rate fluctuations, uncertainties regarding the expected benefits from purchased securitized and unsecuritized FFEL Program, private education, consumer, and other loans, or residual interests therein, and initiatives to purchase additional FFEL Program, private education, consumer, and other loans; financing and liquidity risks, including risks of changes in the interest rate environment; risks from changes in the terms of education loans and in the educational credit and services markets resulting from changes in applicable laws, regulations, and government programs and budgets; risks related to a breach of or failure in the company's operational or information systems or infrastructure, or those of third-party vendors, including disclosure of confidential or personal information and/or damage to reputation resulting from cyber- breaches; uncertainties inherent in forecasting future cash flows from student loan assets, including residual interests therein, and related asset-backed securitizations; risks related to use of artificial intelligence; risks related to the ability of Nelnet Bank to achieve its business objectives and effectively deploy loan and deposit strategies and achieve expected market penetration; risks related to the expected benefits to the company from its continuing ownership in ALLO and Hudl, and risks related to solar tax equity partnerships, including risks of not being able to realize tax credits which remain subject to recapture by taxing authorities and risks from the One Big Beautiful Bill that accelerates the expiration and phase out of solar energy credits; risks and uncertainties related to other initiatives (and anticipated income therefrom), including venture capital, real estate, reinsurance, acquisitions, and other activities, including activities that are intended to diversify the company both within and outside of its historical core education-related businesses; risks and uncertainties associated with climate change; risks from changes in economic conditions and consumer behavior; risks related to the company's ability to adapt to technological change; risks related to the exclusive forum provisions in the company's articles of incorporation; risks related to the company's executive chairman's ability to control matters related to the company through voting rights; risks related to related party transactions; risks related to natural disasters, terrorist activities, or international hostilities; and risks and uncertainties associated with litigation matters and maintaining compliance with the extensive regulatory requirements applicable to the company's businesses, and uncertainties inherent in the estimates and assumptions about future events that management is required to make in the preparation of the company's consolidated financial statements. For more information, see the "Risk Factors" sections and other cautionary discussions of risks and uncertainties included in documents filed or furnished by the company with the SEC, including the most recent Form 10-K filed by the company with the SEC. All forward-looking statements in this letter are as of the date of this letter. Although the company may voluntarily update or revise its forward-looking statements from time to time to reflect actual results or changes in the company's expectations, the company disclaims any commitment to do so except as required by law.


121 South 13th Street, Suite 100
Lincoln,	Nebraska	68508
(Address of principal executive offices)		(Zip Code)


Title of each class	Trading Symbol	Name of each exchange on which registered
Class A Common Stock, Par Value $0.01 per Share	NNI	New York Stock Exchange


Exhibit No.						Description

99.1						Press Release dated February 26, 2026 - "Nelnet Reports Fourth Quarter 2025 Results"

99.2						Supplemental Financial Information for the Quarter Ended December 31, 2025

99.3						2025 Letter to Shareholders from the Chief Executive Officer

104						Cover Page Interactive Data File (formatted as Inline XBRL and included as Exhibit 101).