SLM (SLM) Q4 2025 earnings summary

Executive summary

• Achieved GAAP diluted EPS of $3.46 for 2025, up from $2.68 in 2024, and $1.12 in Q4 2025, with net income attributable to common stock of $729M for 2025 and $229M in Q4.

• Private education loan originations grew 6% year-over-year to $7.4B for 2025 and 4% in Q4 2025, with robust sector performance and increased college enrollment.

• Repurchased 12.8M shares for $373M in 2025, including 3.8M shares for $106M in Q4; board approved a new $500M share repurchase program effective January 2026.

• Launched inaugural private credit strategic partnership, enhancing capital efficiency and risk transfer.

• Positioned for significant growth from federal student lending reforms, especially PLUS loan caps.

Financial highlights

• Net interest margin was 5.24% for full-year 2025 and 5.21% for Q4 2025; net interest income for 2025 was $1.50B.

• Non-interest expenses totaled $659M for 2025, up from $642M in 2024, below guidance midpoint.

• Efficiency ratio improved to 33.2% for 2025 from 34.7% in 2024.

• Net charge-offs for private education loans were $346M in 2025 (2.15% of average loans in repayment), with Q4 net charge-offs at $98M.

• $5.0B in private education loans sold at attractive premiums in 2025.

Outlook and guidance

• 2026 private education loan origination growth expected at 12%-14%.

• Full-year 2026 non-interest expenses projected at $750M-$780M, with 40% of the increase from one-time investments.

• Net charge-offs for 2026 forecasted between $345M and $385M, consistent with stable credit outlook.

• Full-year 2026 diluted EPS expected between $2.70 and $2.80, with EPS acceleration anticipated in 2027.

• Efficiency ratio targeted to return to low 30s by 2030.