Nelnet Inc. reported fourth‑quarter 2025 results that included a revenue of $392 million, up 3.2% from $382 million in the prior year and beating the consensus estimate of $382 million. GAAP net income was $57.8 million, or $1.60 per share, down from $63.2 million ($1.73 per share) a year earlier. Non‑GAAP net income was $56.3 million, or $1.56 per share, versus $52.7 million ($1.44 per share) in the same quarter last year.
The revenue beat was driven by strong performance across Nelnet’s core segments. Loan Servicing and Systems generated $210 million, up 4% YoY, while Education Technology Services and Payments added $95 million, a 6% increase. The company also reported a $27.3 million loss in its solar construction business, which had been sold in November 2025. The combination of solid segment growth and the removal of the solar loss helped lift revenue above expectations.
GAAP earnings per share fell short of the $1.63 consensus by $0.03, and non‑GAAP EPS missed the $1.65 estimate by $0.09. The shortfall was largely due to lower per‑borrower pricing under the U.S. Department of Education’s Student Loan Servicing (USDS) contract, which reduced revenue in the Loan Servicing and Systems segment. Higher operating costs, including a $5 million increase in technology and infrastructure expenses, also contributed to the earnings miss.
Segment analysis shows that while Loan Servicing and Systems remained the largest contributor, its growth was moderated by the USDS pricing adjustment. Education Technology Services and Payments continued to expand, driven by increased demand for payment processing and digital learning tools. Nelnet’s recent acquisition of a Canadian student‑loan servicing business added 2.7 million borrowers and is expected to broaden the company’s servicing footprint and diversify revenue streams.
CEO Jeff Noordhoek said, "Nelnet's teams knocked the ball out of the park in 2025, delivering record earnings and strengthening our foundation for long‑term success." He added that the company’s diversification strategy—spanning consumer lending, loan servicing, payments, and technology—has positioned Nelnet for continued growth in 2026.
Investors reacted neutrally, weighing the revenue surprise against the earnings shortfall. The market’s muted response reflects a balance between the positive revenue beat and the modest EPS miss, indicating that the results were largely in line with expectations when viewed in the broader context of the company’s strategic initiatives.
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