Nelnet (NNI) Q1 2026 earnings summary

Executive summary

• Net income attributable to shareholders was $71.1 million ($1.97 per share) for Q1 2026, down from $82.6 million ($2.26 per share) in Q1 2025.

• Net income excluding derivative market value adjustments was $69.9 million ($1.94 per share), compared to $87.4 million ($2.39 per share) in Q1 2025.

• The company completed the acquisition of a Canadian student loan servicing business (NDS Canada) for $105.8 million in February 2026, expanding its loan servicing portfolio.

• Significant growth in Pay Later receivables drove higher loan interest income and provision for loan losses.

• Solar tax equity partnerships generated $22.5 million in losses, with $13.4 million attributable to noncontrolling interests.

Financial highlights

• Total assets as of March 31, 2026 were $14.18 billion, up from $14.06 billion at year-end 2025, with total equity of $3.61 billion.

• Net interest income was $101.6 million, down from $82.7 million year-over-year, with a provision for loan losses of $53.2 million, up from $15.3 million.

• Net interest income after provision was $44.3 million, compared to $65.9 million in Q1 2025.

• Cash flow from operations was $73.1 million, down from $91.2 million in Q1 2025.

• Dividend of $0.33 per share paid in Q1 2026; 126,319 shares repurchased at an average price of $128.88.

Outlook and guidance

• Effective tax rate expected to range between 22.0% and 24.5% for the remainder of 2026.

• Management expects continued deposit growth to fund loan growth at Nelnet Bank.

• The company plans to use liquidity for loan acquisitions, strategic investments, and capital management initiatives.

• Management emphasizes a focus on speed, innovation, and customer-centric growth for 2026.

• Integration of the Canadian acquisition is proceeding well, supporting long-term diversification.