What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-08-06 compared with 2025-05-08 · 416 added, 173 removed, 938 unchanged (39% of the section changed)

3 unchanged sentences

(Dollars in thousands, except share data)

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Loans and accrued interest receivable (net of allowance for loan losses of $ 125,349 and $ 114,890 , respectively)

55 unchanged sentences

(Dollars in thousands, except share data)

Three months ended

Three months ended Six months ended

June 30, June 30,

2025 2024 2025 2024

Interest income:

13 unchanged sentences

Gain (loss) on sale of loans, net — ( 1,438 ) 909 ( 1,579 )

Gain on partial redemption of ALLO investment 175,044 — 175,044 —

Derivative market value adjustments and derivative settlements, net ( 3,122 ) 3,182 ( 8,701 ) 12,903

27 unchanged sentences

(Dollars in thousands)

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Net income $ 177,854 43,675 258,983 114,429

6 unchanged sentences

Income tax effect 278 ( 880 ) ( 1,890 ) 5,982 1,047 ( 3,314 ) ( 5,797 ) 18,355

Net changes related to cash flow hedges:

Fair value adjustments during period, net ( 625 ) — ( 625 ) —

Income tax effect 150 ( 475 ) — — 150 ( 475 ) — —

Net changes related to equity method investee's other comprehensive income:

Gain (loss) on cash flow hedge 725 ( 967 )

(Loss) gain on cash flow hedge ( 385 ) 335 340 ( 632 )

Income tax effect 92 ( 293 ) ( 80 ) 255 ( 82 ) 258 152 ( 480 )

8 unchanged sentences

(Dollars in thousands, except share data)

Preferred stock shares Common stock shares Preferred stock Class A common stock Class B common stock Additional paid-in capital Retained earnings Accumulated other comprehensive (loss) earnings Noncontrolling interests Total equity

Class A Class B

Balance as of December 31, 2023 — 26,400,630 10,663,088 $ — 264 107 3,096 3,270,403 ( 20,119 ) ( 53,644 ) 3,200,107

Balance as of March 31, 2024 — 26,055,314 10,663,088 $ — 261 107 1,101 3,304,197 ( 8,476 ) ( 61,470 ) 3,235,720

Net income (loss) — — — — — — — 45,091 — ( 1,416 ) 43,675

7 unchanged sentences

Repurchase of common stock — ( 487,980 ) — — ( 5 ) — ( 5,348 ) ( 41,489 ) — — ( 46,842 )

Acquisition of remaining 20 % of GRNE Solar, net of tax

— — — — — — — ( 2,340 ) — 2,093 ( 247 )

Balance as of June 30, 2024 — 25,585,840 10,663,088 $ — 256 107 657 3,295,301 ( 2,260 ) ( 74,039 ) 3,220,022

Balance as of March 31, 2025 — 25,697,581 10,658,604 $ — 257 107 6,649 3,412,939 ( 429 ) ( 56,514 ) 3,363,009

Net income (loss) — — — — — — — 181,459 — ( 3,605 ) 177,854

Other comprehensive loss — — — — — — — — ( 1,779 ) — ( 1,779 )

Issuance of noncontrolling interests — — — — — — — — — 3,882 3,882

Distribution to noncontrolling interests — — — — — — — — — ( 30,670 ) ( 30,670 )

Cash dividends on Class A and Class B common stock - $ 0.28 per share

— — — — — — — ( 10,162 ) — — ( 10,162 )

Issuance of common stock, net of forfeitures — 24,703 — — — — 2,153 — — — 2,153

Compensation expense for stock based awards — — — — — — 3,296 — — — 3,296

Repurchase of common stock — ( 183,554 ) — — ( 2 ) — ( 11,461 ) ( 9,897 ) — — ( 21,360 )

Acquisition of remaining 20 % of NextGen, net of tax

— — — — — — — 1,853 — ( 5,383 ) ( 3,530 )

Balance as of June 30, 2025 — 25,538,730 10,658,604 $ — 255 107 637 3,576,192 ( 2,208 ) ( 92,290 ) 3,482,693

See accompanying notes to consolidated financial statements.

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(Dollars in thousands, except share data)

Class A Class B

Balance as of December 31, 2023 — 26,400,630 10,663,088 $ — 264 107 3,096 3,270,403 ( 20,119 ) ( 53,644 ) 3,200,107

Net income (loss) — — — — — — — 118,498 — ( 4,069 ) 114,429

Other comprehensive income — — — — — — — — 17,859 — 17,859

Issuance of noncontrolling interests — — — — — — — — — 8,151 8,151

Distribution to noncontrolling interests — — — — — — — — — ( 26,570 ) ( 26,570 )

Cash dividends on Class A and Class B common stock - $ 0.56 per share

— — — — — — — ( 20,528 ) — — ( 20,528 )

Issuance of common stock, net of forfeitures — 69,914 — — 1 — 3,297 — — — 3,298

Compensation expense for stock based awards — — — — — — 5,834 — — — 5,834

Repurchase of common stock — ( 884,704 ) — — ( 9 ) — ( 11,570 ) ( 70,732 ) — — ( 82,311 )

Acquisition of remaining 20 % of GRNE Solar, net of tax

— — — — — — — ( 2,340 ) — 2,093 ( 247 )

Balance as of June 30, 2024 — 25,585,840 10,663,088 $ — 256 107 657 3,295,301 ( 2,260 ) ( 74,039 ) 3,220,022

Balance as of December 31, 2024 — 25,634,748 10,658,604 $ — 256 107 7,389 3,340,540 1,470 ( 50,645 ) 3,299,117

Net income (loss) — — — — — — — 264,018 — ( 5,035 ) 258,983

Other comprehensive loss — — — — — — — — ( 3,678 ) — ( 3,678 )

6 unchanged sentences

Repurchase of common stock — ( 222,045 ) — — ( 2 ) — ( 15,919 ) ( 9,897 ) — — ( 25,818 )

Balance as of March 31, 2025 — 25,697,581 10,658,604 $ — 257 107 6,649 3,412,939 ( 429 ) ( 56,514 ) 3,363,009

Acquisition of remaining 20 % of NextGen, net of tax

— — — — — — — 1,853 — ( 5,383 ) ( 3,530 )

Balance as of June 30, 2025 — 25,538,730 10,658,604 $ — 255 107 637 3,576,192 ( 2,208 ) ( 92,290 ) 3,482,693

See accompanying notes to consolidated financial statements.

2 unchanged sentences

(Dollars in thousands)

Three months ended

Six months ended

Net income attributable to Nelnet, Inc.

8 unchanged sentences

(Payments to) proceeds from clearinghouse - initial and variation margin, net ( 4,030 ) 5,716

Gain on partial redemption of ALLO investment ( 175,044 ) —

(Gain) loss on sale of loans, net ( 909 ) 1,579

(Gain) loss on investments, net ( 19,650 ) 6,985

Deferred income tax expense (benefit) 4,316 ( 2,173 )

Deferred income tax benefit ( 88,924 ) ( 4,814 )

Non-cash compensation expense 6,513 6,004

3 unchanged sentences

Decrease in accounts receivable 32,523 36,329

(Increase) decrease in other assets, net ( 18,886 ) 10,443

Decrease in the carrying amount of ROU asset, net 954 953

Decrease in other assets 23,510 39,667

Decrease in the carrying amount of ROU asset 1,958 1,911

Decrease in accrued interest payable ( 6,072 ) ( 8,250 )

Decrease in other liabilities ( 37,102 ) ( 50,218 )

Increase (decrease) in other liabilities 65,986 ( 62,638 )

Decrease in the carrying amount of lease liability ( 3,384 ) ( 1,982 )

20 unchanged sentences

(Dollars in thousands)

Three months ended

Six months ended

Cash flows from financing activities, net of acquisitions:

7 unchanged sentences

Proceeds from issuance of common stock 920 967

Acquisition of noncontrolling interest ( 3,944 ) ( 325 )

Issuance of noncontrolling interests 15,580 27,396

11 unchanged sentences

ROU assets obtained in exchange for lease obligations $ 6,495 49

Receipt of beneficial interest in consumer loan securitizations as consideration from sale of loans $ — 13,693

Distribution to noncontrolling interests $ 34,055 24,235

Issuance of noncontrolling interests $ 9,401 19,245

(a) The Company utilized $ 14.1 million and $ 8.6 million of federal and state tax credits related primarily to renewable energy during the three months ended March 31, 2025 and 2024, respectively.

(a) The Company utilized $ 36.6 million and $ 20.3 million of federal and state tax credits related primarily to renewable energy during the six months ended June 30, 2025 and 2024, respectively.

Supplemental disclosures of non-cash activities regarding the Company's acquisition of certain student loan trusts are contained in note 3.

1 unchanged sentence

As of As of As of As of

March 31, 2025 December 31, 2024 March 31, 2024 December 31, 2023

June 30, 2025 December 31, 2024 June 30, 2024 December 31, 2023

Total cash and cash equivalents $ 225,753 194,518 145,478 168,112

9 unchanged sentences

The accompanying unaudited consolidated financial statements of Nelnet, Inc.

and subsidiaries (the “Company” or "Nelnet") as of March 31, 2025 and for the three months ended March 31, 2025 and 2024 have been prepared on the same basis as the audited consolidated financial statements for the year ended December 31, 2024 and, in the opinion of the Company’s management, the unaudited consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of results of operations for the interim periods presented.

and subsidiaries (the “Company” or "Nelnet") as of June 30, 2025 and for the three and six months ended June 30, 2025 and 2024 have been prepared on the same basis as the audited consolidated financial statements for the year ended December 31, 2024 and, in the opinion of the Company’s management, the unaudited consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of results of operations for the interim periods presented.

The preparation of financial statements in conformity with U.S.

1 unchanged sentence

Actual results could differ from those estimates.

Operating results for the three months ended March 31, 2025 are not necessarily indicative of the results for the year ending December 31, 2025.

Operating results for the three and six months ended June 30, 2025 are not necessarily indicative of the results for the year ending December 31, 2025.

The unaudited consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 (the "2024 Annual Report").

Reclassification and Immaterial Error Corrections

During the second quarter of 2024, the Company identified certain immaterial errors in the previously issued consolidated financial statements that have been corrected to conform to the March 31, 2025 presentation.

The Company determined the reversal of provision for loan losses resulting from the sale of loans should be presented as a reduction to the provision for loan losses rather than the historical presentation as a gain/(loss) on sale of loans included in "other income (expense)" on the consolidated statements of income.

Prior period amounts have been corrected to conform to the current period presentation resulting in a reclassification of $ 0.1 million for the three months ended March 31, 2024.

This correction had no impact on previously reported consolidated assets, liabilities, equity, net income, and cash flows from operating activities.

Solar Tax Equity Investments

The Company relies on audited financial statements provided by third parties to record its share of earnings or losses on its solar tax equity investments.

The Company determined that the Hypothetical Liquidation at Book Value (HLBV) method of accounting was not consistently adopted by all third parties in such audited financial statements for those solar tax equity investments made under a lease pass-through structure.

The adoption of the HLBV method of accounting accelerates accounting losses in the initial years of the investment but has no impact on the overall economics of the transaction.

During the second quarter of 2024, the Company fully adopted HLBV accounting for these investments and prior period amounts have been corrected, resulting in an increase in solar investment losses included in "other, net" in "other income (expense)" on the consolidated statements of income of $ 0.2 million for the three months ended March 31, 2024, offset by an increase in "net loss attributable to noncontrolling interests" of $ 0.4 million.

The after-tax net income impact to Nelnet, Inc.

was an increase of $ 0.2 million for the three months ended March 31, 2024.

Consolidated "total equity" on the consolidated balance sheet was reduced $ 21.8 million as of December 31, 2023, which reflects the cumulative impact of this correction through such date.

Partial Redemption of ALLO Investment

Nelnet had both voting and preferred membership interest investments in ALLO Holdings, LLC (referred to collectively with its subsidiary ALLO Communications LLC as "ALLO").

In June 2025, ALLO executed a financing transaction that resulted in gross proceeds to ALLO of $ 500 million (the “Financing”).

In conjunction with the Financing, Nelnet, ALLO, and certain other ALLO investors entered into a Membership Unit Redemption Agreement (the “Redemption Agreement”) pursuant to which ALLO agreed to redeem certain of its membership interests from certain investors in ALLO, including Nelnet (the “Transaction”).

As part of the Transaction, ALLO redeemed all of Nelnet's outstanding preferred membership interests on June 4, 2025, including the preferred return accrued on such membership interests through the Transaction's closing date.

In addition, ALLO redeemed a portion of Nelnet’s voting membership interest in ALLO.

Upon closing, Nelnet received cash proceeds of $ 410.9 million from ALLO for these redemptions and recognized a pre-tax gain of $ 175.0 million, which is included in "gain on partial redemption of ALLO investment" on the Company's consolidated statements of income.

Following the closing of the Transaction, Nelnet no longer owns any preferred membership interests in ALLO, but maintains a significant voting equity investment in ALLO.

Nelnet’s ownership of voting membership interest in ALLO decreased from 45 % to 27 %.

Nelnet will continue to account for its remaining 27 % voting membership interest in ALLO under the Hypothetical Liquidation at Book Value (HLBV) method of accounting, with the carrying value of such interest remaining at $ 0 .

As part of the ALLO recapitalization transaction completed in December 2020, Nelnet and SDC (a third-party global digital infrastructure investor and member of ALLO) entered into an agreement in which Nelnet has a contingent obligation to pay SDC in the event Nelnet disposes of its voting membership interests in ALLO that it holds, and realizes from such disposition certain targeted return levels.

Upon closing of the Transaction described above, Nelnet recalculated its contingent obligation to reflect the reduction in Nelnet's voting membership interests that are subject to the contingency.

This resulted in a reduction in the estimated fair value of the contingent payment liability of $ 4.9 million during the second quarter of 2025, which is included in (and decreased) "other expenses" on the Company's consolidated statements of income.

Based on Nelnet's remaining voting membership interests in ALLO, the maximum contingent obligation that Nelnet may owe SDC upon future disposals of Nelnet's voting membership interests in ALLO is $ 9 million (down from $ 35 million).

The estimated fair value of the contingent payment as of June 30, 2025 is $ 3.4 million, which is included in "other liabilities" on the consolidated balance sheet.

Loans and Accrued Interest Receivable and Allowance for Loan Losses

Loans and accrued interest receivable consisted of the following:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Non-Nelnet Bank:

3 unchanged sentences

Total 8,367,085 8,388,564

Private education loans 208,507 221,744

Private education loans (a) 156,614 221,744

Consumer and other loans 411,470 345,560

4 unchanged sentences

Total 106,555 —

Private education loans 489,451 482,445

Private education loans (a) 516,663 482,445

Consumer and other loans 204,423 162,152

13 unchanged sentences

$ 10,155,483 9,992,744

(a) During the second quarter of 2025, the Asset Generation and Management operating segment (Non-Nelnet Bank) contributed $ 42.2 million of private education loans to Nelnet Bank.

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:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Non-Nelnet Bank:

5 unchanged sentences

Consumer and other loans 4.68 % 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 20.2 % and 20.6 % as of March 31, 2025 and December 31, 2024, respectively, and for Nelnet Bank was 16.3 % as of March 31, 2025.

(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 20.4 % and 20.6 % as of June 30, 2025 and December 31, 2024, respectively, and for Nelnet Bank was 16.5 % as of June 30, 2025.

Student Loan Trust Acquisitions

6 unchanged sentences

The following table presents the activity in the allowance for loan losses by portfolio segment:

Balance at beginning of period Provision (negative provision) for loan losses Charge-offs Recoveries Balance at end of period

Three months ended March 31, 2025

Balance at beginning of period Provision (negative provision) for loan losses (a) Charge-offs Recoveries Initial allowance on loans purchased with credit deterioration Balance at end of period

Three months ended June 30, 2025

Non-Nelnet Bank:

6 unchanged sentences

$ 120,076 17,712 ( 14,514 ) 1,015 1,060 125,349

Three months ended March 31, 2024

Three months ended June 30, 2024

Non-Nelnet Bank:

5 unchanged sentences

$ 106,008 3,549 ( 13,331 ) 538 — 96,764

Six months ended June 30, 2025

Non-Nelnet Bank:

Federally insured loans $ 49,091 4,746 ( 6,210 ) — — 47,627

Private education loans 11,130 ( 2,760 ) ( 1,457 ) 493 — 7,406

Consumer and other loans 38,468 22,158 ( 13,143 ) 545 — 48,028

Federally insured loans — 374 ( 19 ) — — 355

Private education loans 10,086 3,925 ( 3,134 ) 423 1,060 12,360

Consumer and other loans 6,115 4,734 ( 1,447 ) 171 — 9,573

$ 114,890 33,177 ( 25,410 ) 1,632 1,060 125,349

Six months ended June 30, 2024

Non-Nelnet Bank:

Federally insured loans $ 68,453 ( 3,840 ) ( 10,433 ) — — 54,180

Private education loans 15,750 ( 265 ) ( 2,840 ) 420 — 13,065

Consumer and other loans 11,742 6,335 ( 4,586 ) 644 — 14,135

Private education loans 3,347 1,012 ( 906 ) 106 — 3,559

Consumer and other loans 5,351 11,236 ( 4,804 ) 42 — 11,825

$ 104,643 14,478 ( 23,569 ) 1,212 — 96,764

(a) 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 through provision.

The following table presents the reduction to provision for loan losses as a result of the contribution of Non-Nelnet Bank private education loans to Nelnet Bank during the second quarter of 2025 and the consumer and other loan sales during 2024:

Provision for current period Reduction to provision Provision

(negative provision) for loan losses

Three months ended June 30, 2025

Non-Nelnet Bank

Private education loans $ ( 994 ) ( 1,766 ) ( 2,760 )

Three months ended June 30, 2024

Non-Nelnet Bank

Consumer and other loans $ 10,340 ( 12,595 ) ( 2,255 )

Six months ended June 30, 2025

Non-Nelnet Bank

Private education loans $ ( 994 ) ( 1,766 ) ( 2,760 )

Six months ended June 30, 2024

Non-Nelnet Bank

Consumer and other loans $ 19,030 ( 12,695 ) 6,335

The following table summarizes annualized net charge-offs as a percentage of average loans for each of the Company's loan portfolios:

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Non-Nelnet Bank:

5 unchanged sentences

Consumer and other loans (a) 1.71 % 7.44 % 1.49 % 7.66 %

(a) Decrease in annualized net charge-offs as a percentage of average loans was due to a change in mix of consumer loan portfolios that resulted in a portfolio of loans with an overall higher credit quality in 2025 as compared with 2024 and Nelnet Bank exiting a consumer loan program in December 2024 that had previously incurred significant charge-offs.

The Company recorded a provision for loan losses for the three months ended March 31, 2025 due primarily to the establishment of an initial allowance for loans originated and acquired during the period.

The Company recorded a negative provision for loan losses for the three months ended March 31, 2024 for its Non-Nelnet Bank federally insured and private education loan portfolios primarily due to the amortization of these portfolios.

The primary item impacting provision for loan losses for Non-Nelnet Bank consumer loans and Nelnet Bank's loan portfolios for the three months ended March 31, 2024 was the establishment of an initial allowance for loans originated and acquired during the period.

(a) Decrease in annualized net charge-offs as a percentage of average loans was due to a change in mix of consumer loan portfolios that resulted in a portfolio of loans with an overall higher credit quality in 2025 compared with 2024 and Nelnet Bank exiting a consumer loan program in December 2024 that had previously incurred significant charge-offs.

During the periods presented above, the primary item impacting provision for loan losses was the establishment of an initial allowance for loans originated and acquired during the periods.

Provision for loan losses was also impacted by the reversal of provision for consumer and other loans sold in 2024.

The Company recorded a negative provision for loan losses for its federally insured loan portfolio in 2024 due to an increase in prepayment assumptions.

Unfunded Loan Commitments

As of March 31, 2025 and December 31, 2024, Nelnet Bank had a liability of approximately $ 198,000 and $ 326,000 , respectively, related to $ 28.8 million and $ 40.7 million, respectively, of unfunded private education, consumer, and other loan commitments.

As of June 30, 2025 and December 31, 2024, Nelnet Bank had a liability of approximately $ 416,000 and $ 326,000 , respectively, related to $ 62.2 million and $ 40.7 million, respectively, of unfunded private education, consumer, and other loan commitments.

When a new loan commitment is made, the Company records an allowance that is included in "other liabilities" on the consolidated balance sheet by recording a provision for loan losses.

1 unchanged sentence

Below is a reconciliation of the provision for loan losses reported in the consolidated statements of income.

Three months ended

Three months ended Six months ended

June 30, June 30,

2025 2024 2025 2024

Provision for loan losses from allowance activity table above $ 17,712 3,549 33,177 14,478

Negative provision for unfunded loan commitments ( 128 ) ( 101 )

Provision (negative provision) for unfunded loan commitments 218 62 90 ( 38 )

Provision for loan losses reported in consolidated statements of income $ 17,930 3,611 33,267 14,440

6 unchanged sentences

The following table presents the Company’s loan status and delinquency amounts:

As of March 31, 2025 As of December 31, 2024 As of March 31, 2024

As of June 30, 2025 As of December 31, 2024 As of June 30, 2024

Federally insured loans - Non-Nelnet Bank:

41 unchanged sentences

Total consumer and other loans and accrued interest receivable, net of allowance for loan losses $ 359,406 $ 298,247 $ 156,870

As of March 31, 2025 As of December 31, 2024 As of March 31, 2024

As of June 30, 2025 As of December 31, 2024 As of June 30, 2024

Federally insured loans - Nelnet Bank (a):

45 unchanged sentences

Nelnet Bank Private Education Loans

Loan balance as of March 31, 2025

Three months ended March 31, 2025 2024 2023 2022 2021 Prior years Total

Loan balance as of June 30, 2025

Six months ended June 30, 2025 2024 2023 2022 2021 Prior years Total Percent of total

FICO at origination or purchase:

7 unchanged sentences

Loan balance as of December 31, 2024

2024 2023 2022 2021 2020 Prior years Total

2024 2023 2022 2021 2020 Prior years Total Percent of total

FICO at origination or purchase:

7 unchanged sentences

Nelnet Bank Consumer and Other Loans

Loan balance as of March 31, 2025

Three months ended March 31, 2025 2024 2023 2022 2021 Prior years Total

Loan balance as of June 30, 2025

Six months ended June 30, 2025 2024 2023 2022 2021 Prior years Total Percent of total

FICO at origination:

5 unchanged sentences

Loan balance as of December 31, 2024

2024 2023 2022 2021 2020 Prior years Total

2024 2023 2022 2021 2020 Prior years Total Percent of total

FICO at origination:

8 unchanged sentences

The Company does not place federally insured loans on nonaccrual status due to the government guaranty.

The amortized cost of private education, consumer, and other loans on nonaccrual status, as well as the allowance for loan losses related to such loans, as of March 31, 2025 and December 31, 2024, was not material.

The amortized cost of private education, consumer, and other loans on nonaccrual status, as well as the allowance for loan losses related to such loans, as of June 30, 2025 and December 31, 2024, was not material.

Amortized Cost Basis by Origination Year

The following table presents the amortized cost of the Company's private education, consumer, and other loans by loan status and delinquency amount as of March 31, 2025 based on year of origination.

The following table presents the amortized cost of the Company's private education, consumer, and other loans by loan status and delinquency amount as of June 30, 2025 based on year of origination.

Effective July 1, 2010, no new loan originations can be made under the Federal Family Education Loan Program (the "FFEL Program" or FFELP) and all new federal loan originations must be made under the Federal Direct Loan Program.

As such, all of the Company’s federally insured loans were originated prior to July 1, 2010.

Three months ended March 31, 2025 2024 2023 2022 2021 Prior years Total

Six months ended June 30, 2025 2024 2023 2022 2021 Prior years Total

Private education loans - Non-Nelnet Bank:

12 unchanged sentences

Total private education loans and accrued interest receivable, net of allowance for loan losses $ 145,345

Gross charge-offs - three months ended March 31, 2025 $ — — — — — 933 933

Gross charge-offs - six months ended June 30, 2025 $ — — — — 52 1,405 1,457

Consumer and other loans - Non-Nelnet Bank:

11 unchanged sentences

Total consumer and other loans and accrued interest receivable, net of allowance for loan losses $ 359,406

Gross charge-offs - three months ended March 31, 2025 $ — 2,076 2,847 127 9 119 5,178

Three months ended March 31, 2025 2024 2023 2022 2021 Prior years Total

Gross charge-offs - six months ended June 30, 2025 $ 3,774 4,426 4,745 184 9 5 13,143

Six months ended June 30, 2025 2024 2023 2022 2021 Prior years Total

Private education loans - Nelnet Bank (a):

12 unchanged sentences

Total private education loans and accrued interest receivable, net of allowance for loan losses $ 501,254

Gross charge-offs - three months ended March 31, 2025 $ — 139 119 105 84 947 1,394

Gross charge-offs - six months ended June 30, 2025 $ — 191 498 335 259 1,851 3,134

Consumer and other loans - Nelnet Bank (a):

11 unchanged sentences

Total consumer and other loans and accrued interest receivable, net of allowance for loan losses $ 198,640

Gross charge-offs - three months ended March 31, 2025 $ — 192 242 — 77 58 569

Gross charge-offs - six months ended June 30, 2025 $ — 784 283 — 214 166 1,447

(a) For the periods presented for Nelnet Bank, the delinquency bucket periods conform with the delinquency bucket periods reflected in Nelnet Bank's Call Reports filed with the Federal Deposit Insurance Corporation.

1 unchanged sentence

The following tables summarize the Company’s outstanding debt obligations by type of instrument:

As of March 31, 2025

As of June 30, 2025

Interest rate

47 unchanged sentences

Warehouse Facilities

The Company funds a portion of its loan acquisitions using warehouse facilities.

The Company funds a portion of its loan acquisitions through the use of warehouse facilities.

Loan warehousing allows the Company to buy and manage loans prior to transferring them into more permanent financing arrangements.

The following table summarizes the Company's warehouse facilities as of March 31, 2025.

The following table summarizes the Company's warehouse facilities as of June 30, 2025:

Type of loans Maximum financing amount Amount outstanding Amount available Expiration of liquidity provisions Final maturity date Advance rate Advanced as equity support

3 unchanged sentences

Consumer $ 100,000 3,001 96,999 11/13/2026 11/13/2027 70 % $ 1,394

Consumer 125,000 65,000 60,000 1/1/2026 8/1/2026 60 % - 80 %

Consumer (d) 125,000 65,000 60,000 7/31/2027 2/29/2028 60 % - 80 %

Consumer (e) 2,000 25 1,975 7/15/2027 1/15/2028 50 % - 90 %

$ 227,000 68,026 158,974 $ 22,470

(a) On January 31, 2025, the Company extended the liquidity provisions and final maturity date on this facility to July 31, 2025 and July 31, 2026, respectively.

On July 17, 2025, the Company increased the maximum financing amount from $ 600 million to $ 800 million and extended the liquidity provisions and final maturity date to January 30, 2026 and January 29, 2027, respectively.

(b) This facility has a static advance rate until the expiration date of the liquidity provisions.

3 unchanged sentences

(c) On March 31, 2025, the Company extended the liquidity provisions and final maturity date on this facility to May 1, 2025 and May 1, 2026, respectively, and on April 10, 2025, extended the liquidity provisions and final maturity to May 1, 2026 and May 1, 2027, respectively.

(d) On June 16, 2025, the Company extended the liquidity provisions and final maturity date on this facility to July 31, 2027 and February 29, 2028, respectively.

(e) The Company closed on this facility on May 15, 2025.

Unsecured Line of Credit

The Company has a $ 495.0 million unsecured line of credit that has a maturity date of September 22, 2026.

As of March 31, 2025, no amount was outstanding on the line of credit and $ 495.0 million was available for future use.

As of June 30, 2025, no amount was outstanding on the line of credit and $ 495.0 million was available for future use.

Debt Repurchases

The following table summarizes the Company's repurchases of its own debt.

Gains/losses recorded by the Company from the repurchase of debt are included in "other, net" in "other income (expense)" on the Company's consolidated statements of income.

Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Purchase price $ ( 141,998 ) ( 4,199 ) ( 142,869 ) ( 4,199 )

Par value 142,396 4,190 143,320 4,190

Remaining unamortized cost of issuance ( 10 ) — ( 12 ) —

Gain (loss), net $ 388 ( 9 ) 439 ( 9 )

The Company has repurchased certain of its own asset-backed securities (bonds and notes payable) in the secondary market.

2 unchanged sentences

Upon a sale of these notes to third parties, the Company would obtain cash proceeds equal to the market value of the notes on the date of such sale.

As of March 31, 2025, the Company holds $ 97.4 million (par value) of its own FFELP asset-backed securities.

As of June 30, 2025, the Company holds $ 238.8 million (par value) of its own FFELP asset-backed securities.

Derivative Financial Instruments

2 unchanged sentences

Derivative instruments used as part of the Company's interest rate risk management strategy are further described in note 5 of the notes to consolidated financial statements included in the 2024 Annual Report.

The following table summarizes the Company’s outstanding basis swaps as of March 31, 2025 and December 31, 2024 used to hedge its basis risk and repricing risk on a portion of its FFELP student loan assets.

The following table summarizes the Company’s outstanding basis swaps as of June 30, 2025 and December 31, 2024 used to hedge its basis risk and repricing risk on a portion of its FFELP student loan assets.

For these derivative instruments, the Company receives payments indexed to three-month SOFR and makes payments based on the one-month SOFR index (plus or minus a spread) as defined in the agreements (the "Basis Swaps").

2 unchanged sentences

Interest Rate Swaps – Floor Income Hedges

The following table summarizes the outstanding derivative instruments used by the Company as of March 31, 2025 and December 31, 2024 to economically hedge loans earning fixed rate floor income.

Maturity Notional amount Weighted average fixed rate paid by the Company (a)

The following table summarizes the outstanding derivative instruments used by the Company as of June 30, 2025 and December 31, 2024 to economically hedge loans earning fixed rate floor income.

For these derivative instruments, the Company receives payments based on SOFR, the majority of which reset quarterly.

Maturity Notional amount Weighted average fixed rate paid by the Company

2026 $ 200,000 3.92 %

2028 50,000 3.56

2029 (a) 50,000 3.17

2030 (b) 100,000 3.63

2030 (c) 100,000 3.63

$ 400,000 3.71 %

(a) For all interest rate derivatives, the Company receives payments based on SOFR, the majority of which reset quarterly.

(b) This $ 50 million notional amount derivative has a forward effective start date in January 2026.

(a) This $ 50 million notional amount derivative has a forward effective start date in January 2026.

(b) A $ 50 million notional amount derivative maturing in 2030 has a forward effective start date in November 2025.

Nelnet Bank Derivatives

Interest Rate Swaps

The following table summarizes the outstanding non-centrally cleared derivative instruments used by Nelnet Bank as of March 31, 2025 and December 31, 2024, to hedge exposure to variability in cash flows related to variable rate intercompany deposits.

Maturity Notional amount Weighted average fixed rate paid by the Company (a)

Nelnet Bank uses non-centrally cleared derivative instruments to hedge exposure to variability in cash flows from variable rate intercompany and third-party deposits to minimize volatility from future changes in interest rates.

Nelnet Bank has designated all of its derivative instruments as cash flow hedges;

however, the derivatives that hedge intercompany deposits are not eligible for hedge accounting in the consolidated financial statements.

Interest Rate Swaps - Intercompany Deposits

The following table summarizes the outstanding derivative instruments used by Nelnet Bank to hedge intercompany deposits.

For these derivative instruments, the Company receives monthly or quarterly payments based on SOFR that reset daily.

As of June 30, 2025 As of December 31, 2024

Maturity Notional amount Weighted average fixed rate paid by the Company Notional amount Weighted average fixed rate paid by the Company

2028 $ 40,000 3.33 % $ 40,000 3.33 %

2029 25,000 3.37 25,000 3.37

2030 (a) 50,000 3.06 50,000 3.06

2032 (b) 25,000 4.03 25,000 4.03

2 unchanged sentences

$ 195,000 3.50 % $ 165,000 3.44 %

(a) For all interest rate derivatives, the Company receives monthly or quarterly payments based on SOFR that resets daily.

(b) These $ 25 million notional amount derivatives have forward effective start dates in April 2026 and May 2026, respectively.

(d) This $ 25 million notional amount derivative has a forward effective start date in November 2025.

(a) These $ 25 million notional amount derivatives have forward effective start dates in April 2026 and May 2026, respectively.

(b) This $ 25 million notional amount derivative has a forward effective start date in February 2027.

(d) This $ 30 million notional amount derivative has a forward effective start date in May 2028.

Interest Rate Swaps - Third-Party Deposits

The following table summarizes the outstanding derivative instruments used by Nelnet Bank to hedge third-party deposits.

For these derivative instruments, the Company receives monthly payments based on SOFR that reset monthly.

As of June 30, 2025

Maturity Notional amount Weighted average fixed rate paid by the Company

2030 $ 25,000 3.57 %

2035 25,000 3.87

$ 50,000 3.72 %

Changes in the fair value of derivatives that hedge third-party deposits and qualify as cash flow hedges in the consolidated financial statements are recognized in other comprehensive income, net of tax.

Derivative settlements for cash flow hedges are included in "interest expense" on the consolidated statements of income, which were not material for the three and six months ended June 30, 2025.

Consolidated Financial Statement Impact Related to Derivatives

4 unchanged sentences

Fair value of asset derivatives Fair value of liability derivatives

As of March 31, 2025 As of December 31, 2024 As of March 31, 2025 As of December 31, 2024

Interest rate swaps - Nelnet Bank $ 1,473 3,232 822 53

As of June 30, 2025 As of December 31, 2024 As of June 30, 2025 As of December 31, 2024

Interest rate swaps - intercompany deposits $ 402 3,232 1,452 53

Interest rate swaps - third-party deposits (cash flow hedges) — — 625 —

$ 402 3,232 2,077 53

Statements of Income

The following table summarizes the components of "derivative market value adjustments and derivative settlements, net" included in the consolidated statements of income.

Three months ended March 31,

The following table summarizes the components of "derivative market value adjustments and derivative settlements, net" included in the consolidated statements of income related to derivative instruments that do not qualify for hedge accounting:

Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Basis swaps $ 154 249 307 614

Interest rate swaps - floor income hedges 427 1,193 855 2,383

Interest rate swaps - Nelnet Bank 164 202

Interest rate swaps - intercompany deposits 163 207 327 409

Total settlements - income 744 1,649 1,489 3,406

2 unchanged sentences

Interest rate swaps - floor income hedges ( 2,022 ) 1,168 ( 5,680 ) 7,228

Interest rate swaps - Nelnet Bank ( 2,529 ) 2,258

Interest rate swaps - intercompany deposits ( 1,701 ) 597 ( 4,229 ) 2,855

Total change in fair value - (expense) income ( 3,866 ) 1,533 ( 10,190 ) 9,497

2 unchanged sentences

“Total investments and notes receivable” consisted of the following:

As of March 31, 2025 As of December 31, 2024

As of June 30, 2025 As of December 31, 2024

Amortized cost Gross unrealized gains Gross unrealized losses Fair value Amortized cost Gross unrealized gains Gross unrealized losses Fair value

12 unchanged sentences

Total available-for-sale asset-backed securities $ 1,208,881 16,795 ( 22,696 ) 1,202,980 1,087,223 19,290 ( 20,687 ) 1,085,826

Equity securities 80,841 74,494

Equity securities and funds measured at net asset value 83,749 74,494

Total investments at fair value 1,286,729 1,160,320

14 unchanged sentences

Beneficial interest in loan securitizations (e):

Consumer loans, net of allowance for credit losses of $ 39,826 and $ 38,590 as of March 31, 2025 and December 31, 2024, respectively

Consumer loans, net of allowance for credit losses of $ 41,008 and $ 38,590 as of June 30, 2025 and December 31, 2024, respectively

127,729 142,764

Private education loans, net of allowance for credit losses of $ 1,175 and $ 901 as of March 31, 2025 and December 31, 2024, respectively

Private education loans, net of allowance for credit losses of $ 4,970 and $ 901 as of June 30, 2025 and December 31, 2024, respectively

44,502 52,824

15 unchanged sentences

Accordingly, the Company did not adjust its carrying value of its Hudl investment to the transaction value.

As of March 31, 2025, the carrying amount of the Company's investment in Hudl is $ 172.5 million.

As of June 30, 2025, the carrying amount of the Company's investment in Hudl was $ 172.5 million.

Graff, who has served on the Company's Board of Directors since May 2014, is CEO, co-founder, and a director of Hudl.

(d) The Company has both a voting and preferred membership interest investment in ALLO Holdings, LLC (referred to collectively with its subsidiary ALLO Communications LLC as "ALLO").

The Company's voting membership interest in ALLO is accounted for under the HLBV method of accounting.

Under the HLBV method of accounting, the Company recognized $ 10.7 million of losses during the three months ended March 31, 2024, reducing the carrying value of the voting membership interest investment to $ 0 .

(d) On June 4, 2025, the Company redeemed a portion of its voting membership interests in ALLO and all its outstanding preferred membership interests, including the preferred return accrued on such membership interests through June 3, 2025.

See note 2 for additional information.

The Company's voting membership interest in ALLO is accounted for using the HLBV method of accounting.

Using the HLBV method of accounting, the Company recognized $ 10.7 million of losses during the three months ended March 31, 2024, reducing the carrying value of the voting membership interest investment to $ 0 .

Absent additional equity contributions with respect to ALLO's voting membership interest, the Company will not recognize additional losses for its voting membership interest in ALLO.

As of March 31, 2025, the outstanding preferred membership interests and accrued and unpaid preferred return of ALLO held by the Company was $ 225.6 million and $ 8.4 million, respectively.

The Company earns a preferred return of 13.50 % and 20.00 % on $ 169.1 million and $ 56.5 million, respectively, of the Company's preferred membership interests of ALLO.

The Company recognized income on its ALLO preferred membership interests of $ 8.4 million and $ 2.4 million during the three months ended March 31, 2025 and 2024, respectively.

The Company recognized income on its ALLO preferred membership interests of $ 6.0 million and $ 4.2 million during the three months ended June 30, 2025 and 2024, respectively, and $ 14.4 million and $ 6.6 million during the six months ended June 30, 2025 and 2024, respectively.

The income statement activity from the Company's investment in ALLO is included in "other, net" in "other income (expense)" on the consolidated statements of income.

In April 2025, the Company executed a transaction that is expected to close in late May 2025.

Upon closing, the Company expects all of its outstanding preferred membership interests, including the preferred return accrued on such membership interests, to be redeemed by ALLO.

In addition, a portion of its voting membership interest will also be redeemed.

The Company expects to receive aggregate cash proceeds of approximately $ 410 million from ALLO and recognize a pre-tax gain of approximately $ 175 million as a result of this transaction.

See note 16 for additional information.

(e) The Company has partial ownership in certain consumer, private education, and federally insured student loan securitizations, which are accounted for as held-to-maturity beneficial interest investments.

As of the latest remittance reports filed by the various trusts prior to or as of March 31, 2025, the Company's ownership correlates to approximately $ 1.10 billion, $ 440 million, and $ 280 million of consumer, private education, and federally insured student loans, respectively, included in these securitizations.

The Company recorded an additional $ 1.5 million allowance for credit losses (and related provision expense) during the three months ended March 31, 2025 on these investments.

This expense is included in "impairment expense and provision for beneficial interests" on the consolidated statement of income.

As of the latest remittance reports filed by the various trusts prior to or as of June 30, 2025, the Company's ownership correlates to approximately $ 1.00 billion, $ 420 million, and $ 280 million of consumer, private education, and federally insured student loans, respectively, included in these securitizations.

The Company recorded a $ 1.5 million and $ 5.0 million allowance for credit losses (and related provision expense) during the first and second quarters of 2025, respectively, on these investments.

This expense is included in "impairment expense and provision for beneficial interests" on the consolidated statements of income.

(f) The Company invests in solar tax equity investments through investment partnerships.

Due to the management and control of each of these investment partnerships, such partnerships that invest in tax equity investments are consolidated on the Company’s consolidated financial statements, with the third-party co-investor’s portion being presented as noncontrolling interests.

As of March 31, 2025, the Company has invested a total of $ 309.9 million and its third-party investors have invested $ 280.4 million in tax equity investments that remain outstanding in renewable energy solar partnerships that support the development and operations of solar projects.

As of June 30, 2025, the Company has invested a total of $ 300.6 million and its third-party investors have invested $ 285.8 million in tax equity investments that remain outstanding in renewable energy solar partnerships that support the development and operations of solar projects.

The carrying value of the Company’s investment in a solar project is reduced by tax credits earned when the solar project is placed in service.

As of March 31, 2025, the Company and its third-party co-investors have earned $ 331.0 million and $ 265.1 million, respectively, of tax credits on those projects that remain outstanding.

The solar investment negative carrying value on the consolidated balance sheet of $ 167.0 million as of March 31, 2025 represents the sum of total tax credits earned on solar projects placed in service through March 31, 2025 and the calculated HLBV cumulative net losses being larger than the total investment contributions made by the Company and its syndication partners on such projects.

The solar investment negative carrying value as of March 31, 2025, excluding the portion owned by syndication partners that is reflected as "noncontrolling interests" on the consolidated balance sheet, was $ 94.0 million.

As of June 30, 2025, the Company and its third-party co-investors have earned $ 334.2 million and $ 290.7 million, respectively, of tax credits on those projects that remain outstanding.

The solar investment negative carrying value on the consolidated balance sheet of $ 200.8 million as of June 30, 2025 represents the sum of total tax credits earned on solar projects placed in service through June 30, 2025 and the calculated HLBV cumulative net losses being larger than the total investment contributions made by the Company and its syndication partners on such projects.

The solar investment negative carrying value as of June 30, 2025, excluding the portion owned by syndication partners that is reflected as "noncontrolling interests" on the consolidated balance sheet, was $ 97.7 million.

The Company accounts for its solar investments using the HLBV method of accounting.

1 unchanged sentence

The following table presents (i) the Company's recognized HLBV losses and gains recognized from sales of certain investments at the end of the contractual agreement (typically five years ), which include losses and gains attributable to third-party noncontrolling interest investors (syndication partners), included in “other, net” in "other income (expense)" on the consolidated statements of income, (ii) solar net losses and gains attributed to noncontrolling interest investors included in “net loss attributable to noncontrolling interests” on the consolidated statements of income, and (iii) the Company's recognized net gain excluding amounts attributed to noncontrolling interest investors (such amount reflecting the before tax net income impact of such solar tax equity investments to the Company):

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Losses from HLBV accounting (gross) $ ( 6,463 ) ( 6,818 ) ( 9,079 ) ( 4,038 )

Gains from sales (gross) 4,961 4,208 8,033 4,208

Gains from solar investments, net 456 2,780

losses attributable to noncontrolling members, net ( 1,046 ) ( 1,641 )

Net gain, excluding amounts attributed to noncontrolling interest investors $ 1,502 4,421

The following table presents, by remaining contractual maturity, the amortized cost and fair value of debt securities as of March 31, 2025:

As of March 31, 2025

(Losses) gains from solar investments, net ( 1,502 ) ( 2,610 ) ( 1,046 ) 170

(losses) gains attributable to noncontrolling members, net ( 3,159 ) 8 ( 4,204 ) ( 1,633 )

Net gain (loss), excluding amounts attributed to noncontrolling interest investors $ 1,657 ( 2,618 ) 3,158 1,803

The following table presents, by remaining contractual maturity, the amortized cost and fair value of debt securities as of June 30, 2025:

As of June 30, 2025

1 year or less After 1 year through 5 years After 5 years through 10 years After 10 years Total

23 unchanged sentences

(a) The Company's beneficial interest in loan securitizations are not due at a single maturity date.

The following table summarizes the unrealized positions for held-to-maturity asset-backed securities investments and the beneficial interest in loan securitizations as of March 31, 2025:

The following table summarizes the unrealized positions for held-to-maturity asset-backed securities investments and the beneficial interest in loan securitizations as of June 30, 2025:

Carrying value Gross unrealized gains Gross unrealized losses Fair value

1 unchanged sentence

Beneficial interest in loan securitizations 190,853 11,643 ( 1,471 ) 201,025

The following table presents securities classified as available-for-sale that have gross unrealized losses as of March 31, 2025 and the fair value of such securities as of March 31, 2025.

The following table presents securities classified as available-for-sale that have gross unrealized losses as of June 30, 2025 and the fair value of such securities as of June 30, 2025.

These securities are segregated between investments that had been in a continuous unrealized loss position for less than twelve months and twelve months or more, based on the point in time that the fair value declined below the amortized cost basis.

1 unchanged sentence

As part of that assessment, the Company concluded it currently has the intent and ability to retain these investments, and none of the unrealized losses were due to credit losses.

As of March 31, 2025

As of June 30, 2025

Unrealized loss position less than 12 months Unrealized loss position 12 months or more Total

13 unchanged sentences

The following table summarizes the gross proceeds received and gross realized gains and losses related to sales of available-for-sale asset-backed securities:

Three months ended

Three months ended Six months ended

June 30, June 30,

2025 2024 2025 2024

Gross proceeds from sales $ 34,828 113,173 109,609 266,547

5 unchanged sentences

Weighted average remaining useful life as of

March 31, 2025 (months)

March 31, 2025 December 31, 2024

June 30, 2025 (months)

June 30, 2025 December 31, 2024

Amortizable intangible assets, net:

1 unchanged sentence

92 $ 32,121 34,960

Trade names (net of accumulated amortization of $ 225 and $ 205 , respectively)

Trade name (net of accumulated amortization of $ 244 and $ 205 , respectively)

Computer software (net of accumulated amortization of $ 1,089 and $ 917 , respectively)

Total amortizable intangible assets, net 90 $ 33,278 36,328

The Company recorded amortization expense on its intangible assets of $ 1.5 million and $ 2.1 million for the three months ended March 31, 2025 and 2024, respectively.

The Company recorded amortization expense on its intangible assets of $ 1.5 million and $ 2.1 million for the three months ended June 30, 2025 and 2024, respectively, and $ 3.1 million and $ 4.3 million during the six months ended June 30, 2025 and 2024, respectively.

The Company will continue to amortize intangible assets over their remaining useful lives.

As of March 31, 2025, the Company estimates it will record amortization expense as follows:

2025 (April 1 - December 31) $ 4,574

As of June 30, 2025, the Company estimates it will record amortization expense as follows:

2025 (July 1 - December 31) $ 3,049

2030 and thereafter 9,141

The following table presents the carrying amount of goodwill as of March 31, 2025 and December 31, 2024 by reportable operating segment:

The following table presents the carrying amount of goodwill as of June 30, 2025 and December 31, 2024 by reportable operating segment:

Nelnet Financial Services

3 unchanged sentences

Total goodwill $ 23,639 92,507 41,883 — — — 158,029

Impairment Expense and Provision for Beneficial Interests

The following table presents the impairment charges and provision for beneficial interests by asset and reportable operating segment recognized by the Company.

These expense items are included in “impairment expense and provision for beneficial interests” in the consolidated statements of income.

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 June 30, 2025

Investments - beneficial interest in loan securitizations (a) $ — — 4,977 — — — 4,977

Leases, buildings, and associated improvements (b) — — — — — 3,269 3,269

Property and equipment - solar facilities (c) — — — — — 1,902 1,902

Investments - venture capital — — — — — 140 140

$ — — 4,977 — — 5,311 10,288

Three months ended June 30, 2024

Investments - beneficial interest in loan securitizations (a) $ — — 5,911 — — — 5,911

Property and equipment - solar facilities (c) — — — — — 1,170 1,170

Other assets - solar inventory (c) — — — — — 695 695

$ — — 5,911 — — 1,865 7,776

Six months ended June 30, 2025

Investments - beneficial interest in loan securitizations (a) $ — — 6,487 — — — 6,487

Leases, buildings, and associated improvements (b) — — — — 81 3,269 3,350

Property and equipment - solar facilities (c) — — — — — 1,902 1,902

Investments - venture capital — — — — — 140 140

$ — — 6,487 — 81 5,311 11,879

Six months ended June 30, 2024

Investments - beneficial interest in loan securitizations (a) $ — — 5,911 — — — 5,911

Property and equipment - solar facilities (c) — — — — — 1,170 1,170

Other assets - solar inventory (c) — — — — — 695 695

Investments - venture capital — — — — — 37 37

$ — — 5,911 — — 1,902 7,813

(a) The Company recorded a non-cash allowance for credit losses (and related provision expense) related to the Company's beneficial interest in certain loan securitizations due primarily to an increase in cumulative loss expectations.

See note 6 for additional information.

(b) The Company recorded non-cash impairment charges related to operating lease assets and associated leasehold improvements as a result of the Company consolidating office space.

As a result, the Company recorded an impairment charge related to construction in progress for a solar facility.

In April 2024, the Company announced a change in its solar engineering, procurement, and construction (EPC) operations to focus exclusively on the commercial solar market and discontinued its residential solar operations.

As a result, the Company recognized non-cash impairment charges on certain solar facilities and inventory related to the residential solar operations.

Bank Deposits

The following table summarizes Nelnet Bank’s interest-bearing deposits, excluding intercompany deposits:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Retail and other savings $ 1,092,175 916,475

2 unchanged sentences

Total interest-bearing deposits $ 1,382,042 1,186,131

As of March 31, 2025 and December 31, 2024, Nelnet Bank had intercompany deposits from Nelnet, Inc.

As of June 30, 2025 and December 31, 2024, Nelnet Bank had intercompany deposits from Nelnet, Inc.

and its subsidiaries totaling $ 149.9 million and $ 68.5 million, respectively, including a $ 40.0 million pledged deposit from Nelnet, Inc.

1 unchanged sentence

All intercompany deposits held at Nelnet Bank are eliminated for consolidated financial reporting purposes.

The following table presents certificates of deposit remaining maturities as of March 31, 2025:

The following table presents certificates of deposit remaining maturities as of June 30, 2025:

One year or less $ 149,010

5 unchanged sentences

Total $ 289,867

Retail and other savings deposits include deposits from Educational 529 College Savings and Health Savings plans, retirement savings plans, Short Term Federal Investment Trust (STFIT), and FDIC sweep deposits.

Retail and other savings deposits included deposits from Educational 529 College Savings and Health Savings plans, retirement savings plans, Short Term Federal Investment Trust (STFIT), and FDIC sweep deposits.

These deposits are large interest-bearing omnibus accounts structured to allow FDIC insurance to flow through to underlying individual depositors.

The deposits exceeding the FDIC insurance limits as of March 31, 2025 were $ 44.7 million, the majority of which are intercompany deposits from Nelnet, Inc.

Deposits that exceeded the FDIC insurance limits as of June 30, 2025 were $ 44.3 million, the majority of which were intercompany deposits from Nelnet, Inc.

and its subsidiaries.

4 unchanged sentences

Unvested share-based awards that contain nonforfeitable rights to dividends are considered securities which participate in undistributed earnings with common stock.

Three months ended March 31,

Common shareholders Unvested restricted stock shareholders Total Common shareholders Unvested restricted stock shareholders Total

Three months ended June 30,

Net income attributable to Nelnet, Inc.

2 unchanged sentences

Earnings per share - basic and diluted $ 4.97 4.97 4.97 1.23 1.23 1.23

Six months ended June 30,

Net income attributable to Nelnet, Inc.

$ 259,158 4,860 264,018 116,178 2,320 118,498

Weighted-average common shares outstanding - basic and diluted 35,810,499 671,536 36,482,035 36,119,876 721,351 36,841,227

Earnings per share - basic and diluted $ 7.24 7.24 7.24 3.22 3.22 3.22

Segment Reporting

1 unchanged sentence

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

Three months ended March 31, 2025

Three months ended June 30, 2025

Reportable Segments Reconciling Items

8 unchanged sentences

Net interest income 624 5,417 49,875 14,066 69,982 7,442 2,010 — 79,435

Less provision for loan losses — — 13,012 2,325 15,337 — — — 15,337

Less provision (negative provision) for loan losses — — 11,133 6,797 17,930 — — — 17,930

Net interest income after provision for loan losses 624 5,417 38,742 7,269 52,052 7,442 2,010 — 61,505

7 unchanged sentences

Gain (loss) on sale of loans, net — — — — — — — — —

Gain on partial redemption of ALLO investment — — — — — — 175,044 — 175,044

Derivative settlements, net — — 581 163 744 — — — 744

16 unchanged sentences

Net income (loss) 15,169 17,892 20,824 ( 364 ) 53,521 7,696 116,539 96 177,854

Net loss (income) attributable to noncontrolling interests — 45 ( 17 ) — 28 ( 124 ) 1,623 ( 97 ) 1,430

Net (income) loss attributable to noncontrolling interests — — ( 23 ) — ( 23 ) ( 114 ) 3,838 ( 96 ) 3,605

Net income (loss) attributable to Nelnet, Inc.

$ 15,169 17,892 20,801 ( 364 ) 53,498 7,582 120,377 — 181,459

Total assets as of March 31, 2025 $ 184,142 469,706 10,362,549 1,689,633 12,706,030 874,667 873,211 ( 261,950 ) 14,191,958

Total assets as of June 30, 2025 $ 168,435 533,317 10,036,454 1,767,193 12,505,399 1,077,523 541,471 ( 413,305 ) 13,711,088

(a) Other expenses for each reportable segment includes:

2 unchanged sentences

AGM - trustee fees and professional fees.

Nelnet Bank - marketing, consulting and professional fees, software, insurance, and management fee expense.

Three months ended March 31, 2024

Nelnet Bank - marketing, consulting and professional fees, collection costs, software, FDIC insurance, and management fee expense.

Three months ended June 30, 2024

Reportable Segments Reconciling Items

8 unchanged sentences

Net interest income 1,258 5,715 35,784 8,464 51,221 13,274 1,913 — 66,407

Less provision for loan losses — — 6,455 4,373 10,828 — — — 10,828

Less provision (negative provision) for loan losses — — ( 4,225 ) 7,836 3,611 — — — 3,611

Net interest income after provision for loan losses 1,258 5,715 40,009 628 47,610 13,274 1,913 — 62,796

7 unchanged sentences

Gain (loss) on sale of loans, net — — ( 1,438 ) — ( 1,438 ) — — — ( 1,438 )

Gain on partial redemption of ALLO investment — — — — — — — — —

Derivative settlements, net — — 1,442 207 1,649 — — — 1,649

16 unchanged sentences

Net income (loss) 1,705 19,449 18,475 ( 2,802 ) 36,827 12,590 ( 5,743 ) — 43,675

Net loss (income) attributable to noncontrolling interests — 17 — — 17 ( 120 ) 2,755 — 2,652

Net (income) loss attributable to noncontrolling interests — 29 — — 29 ( 129 ) 1,516 — 1,416

Net income (loss) attributable to Nelnet, Inc.

$ 1,705 19,478 18,475 ( 2,802 ) 36,856 12,461 ( 4,227 ) — 45,091

Total assets as of March 31, 2024 $ 212,381 389,990 12,315,238 1,125,122 14,042,731 1,111,587 803,709 ( 583,815 ) 15,374,212

Total assets as of June 30, 2024 $ 264,381 478,077 11,315,210 1,185,302 13,242,970 1,038,068 778,549 ( 558,394 ) 14,501,193

(a) Other expenses for each reportable segment includes:

LSS - occupancy, communications, professional fees, software, and computer services and subscriptions.

LSS - communications, professional fees, software, and computer services and subscriptions.

ETSP - advertising, professional fees, analysis fees, computer services and subscriptions, travel, and provision for losses.

AGM - trustee fees and professional fees.

Nelnet Bank - consulting and professional fees, software, and insurance.

Nelnet Bank - marketing, consulting and professional fees, software, FDIC insurance, and management fee expense.

Six months ended June 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 $ — — 311,768 26,775 338,543 — — — 338,543

Investment interest 1,345 12,356 25,411 26,430 65,542 17,690 4,973 ( 6,632 ) 81,574

Total interest income 1,345 12,356 337,179 53,205 404,085 17,690 4,973 ( 6,632 ) 420,117

Interest expense — — 234,369 26,749 261,118 2,198 1,284 ( 6,632 ) 257,968

Net interest income 1,345 12,356 102,810 26,456 142,967 15,492 3,689 — 162,149

Less provision (negative provision) for loan losses — — 24,144 9,123 33,267 — — — 33,267

Net interest income after provision for loan losses 1,345 12,356 78,666 17,333 109,700 15,492 3,689 — 128,882

Other income (expense):

LSS revenue 241,465 — — — 241,465 — — — 241,465

Intersegment revenue 11,287 129 — — 11,416 — — ( 11,416 ) —

ETSP revenue — 265,515 — — 265,515 — — — 265,515

Reinsurance premiums earned — — — — — 50,799 — — 50,799

Solar construction revenue — — — — — — 5,254 — 5,254

Other, net 225 — 11,502 534 12,261 6,376 27,840 193 46,670

Gain (loss) on sale of loans, net — — 909 — 909 — — — 909

Gain on partial redemption of ALLO investment — — — — — — 175,044 — 175,044

Derivative settlements, net — — 1,162 327 1,489 — — — 1,489

Derivative market value adjustments, net — — ( 5,961 ) ( 4,229 ) ( 10,190 ) — — — ( 10,190 )

Total other income (expense), net 252,977 265,644 7,612 ( 3,368 ) 522,865 57,175 208,138 ( 11,223 ) 776,955

Cost of services and expenses:

Total cost of services 3,478 87,891 — — 91,369 — 21,878 — 113,247

Salaries and benefits 135,123 83,339 2,690 5,607 226,759 1,017 45,279 ( 134 ) 272,922

Depreciation and amortization 4,474 4,936 — 691 10,101 — 6,778 — 16,879

Reinsurance losses and underwriting expenses — — — — — 47,874 — — 47,874

Postage expense 17,127 17,127 ( 17,127 ) —

Servicing fees 14,013 1,491 15,504 ( 15,504 ) —

Other expenses (a) 21,931 18,952 3,352 3,327 47,562 2,978 27,281 21,711 99,532

Intersegment expenses, net 33,718 11,877 2,510 1,362 49,467 565 ( 49,670 ) ( 362 ) —

Total operating expenses 212,373 119,104 22,565 12,478 366,520 52,434 29,668 ( 11,416 ) 437,207

Impairment expense and provision for beneficial interests — — 6,487 — 6,487 81 5,311 — 11,879

Total expenses 215,851 206,995 29,052 12,478 464,376 52,515 56,857 ( 11,416 ) 562,333

Income (loss) before income taxes 38,471 71,005 57,226 1,487 168,189 20,152 154,970 193 343,504

Income tax (expense) benefit ( 9,233 ) ( 17,052 ) ( 13,725 ) ( 333 ) ( 40,343 ) ( 4,779 ) ( 39,398 ) — ( 84,521 )

Net income (loss) 29,238 53,953 43,501 1,154 127,846 15,373 115,572 193 258,983

Net (income) loss attributable to noncontrolling interests — 45 ( 40 ) — 5 ( 238 ) 5,461 ( 193 ) 5,035

Net income (loss) attributable to Nelnet, Inc.

$ 29,238 53,998 43,461 1,154 127,851 15,135 121,033 — 264,018

Total assets as of June 30, 2025 $ 168,435 533,317 10,036,454 1,767,193 12,505,399 1,077,523 541,471 ( 413,305 ) 13,711,088

(a) Other expenses for each reportable segment includes:

LSS - communications, professional fees, collection costs, software, and computer services and subscriptions.

ETSP - advertising, professional fees, analysis fees, computer services and subscriptions, and travel.

AGM - trustee fees and professional fees.

Nelnet Bank - marketing, consulting and professional fees, collection costs, software, FDIC insurance, and management fee expense.

Six months ended June 30, 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 $ — — 403,335 15,518 418,853 — — — 418,853

Investment interest 3,152 13,580 35,544 20,779 73,055 31,495 6,461 ( 18,197 ) 92,814

Total interest income 3,152 13,580 438,879 36,297 491,908 31,495 6,461 ( 18,197 ) 511,667

Interest expense — — 362,537 20,266 382,803 5,024 1,409 ( 18,197 ) 371,039

Net interest income 3,152 13,580 76,342 16,031 109,105 26,471 5,052 — 140,628

Less provision (negative provision) for loan losses — — 2,230 12,210 14,440 — — — 14,440

Net interest income after provision for loan losses 3,152 13,580 74,112 3,821 94,665 26,471 5,052 — 126,188

Other income (expense):

LSS revenue 236,252 — — — 236,252 — — — 236,252

Intersegment revenue 12,991 106 — — 13,097 — — ( 13,097 ) —

ETSP revenue — 260,449 — — 260,449 — — — 260,449

Reinsurance premiums earned — — — — — 27,631 — — 27,631

Solar construction revenue — — — — — — 23,420 — 23,420

Other, net 1,395 — 6,321 1,150 8,866 1,013 8,224 — 18,103

Gain (loss) on sale of loans, net — — ( 1,579 ) — ( 1,579 ) — — — ( 1,579 )

Gain on partial redemption of ALLO investment — — — — — — — — —

Derivative settlements, net — — 2,997 409 3,406 — — — 3,406

Derivative market value adjustments, net — — 6,642 2,855 9,497 — — — 9,497

Total other income (expense), net 250,638 260,555 14,381 4,414 529,988 28,644 31,644 ( 13,097 ) 577,179

Cost of services and expenses:

Total cost of services 196 88,832 — — 89,028 — 22,300 — 111,328

Salaries and benefits 147,353 80,903 2,308 5,518 236,082 732 48,307 ( 1,611 ) 283,509

Depreciation and amortization 10,450 5,395 — 601 16,446 — 15,464 — 31,911

Reinsurance losses and underwriting expenses — — — — — 22,305 — — 22,305

Postage expense 19,883 19,883 ( 19,883 ) —

Servicing fees 17,492 426 17,918 ( 17,918 ) —

Other expenses (a) 20,119 16,158 2,246 3,113 41,636 1,327 26,243 24,928 94,136

Intersegment expenses, net 37,555 9,612 2,481 1,148 50,796 465 ( 52,648 ) 1,387 —

Total operating expenses 235,360 112,068 24,527 10,806 382,761 24,829 37,366 ( 13,097 ) 431,861

Impairment expense and provision for beneficial interests — — 5,911 — 5,911 — 1,902 — 7,813

Total expenses 235,556 200,900 30,438 10,806 477,700 24,829 61,568 ( 13,097 ) 551,002

Income (loss) before income taxes 18,234 73,235 58,055 ( 2,571 ) 146,953 30,286 ( 24,872 ) — 152,365

Income tax (expense) benefit ( 4,376 ) ( 17,585 ) ( 13,933 ) 657 ( 35,237 ) ( 7,209 ) 4,511 — ( 37,936 )

Net income (loss) 13,858 55,650 44,122 ( 1,914 ) 111,716 23,077 ( 20,361 ) — 114,429

Net (income) loss attributable to noncontrolling interests — 46 — — 46 ( 249 ) 4,272 — 4,069

Net income (loss) attributable to Nelnet, Inc.

$ 13,858 55,696 44,122 ( 1,914 ) 111,762 22,828 ( 16,089 ) — 118,498

Total assets as of June 30, 2024 $ 264,381 478,077 11,315,210 1,185,302 13,242,970 1,038,068 778,549 ( 558,394 ) 14,501,193

(a) Other expenses for each reportable segment includes:

LSS - communications, professional fees, software, and computer services and subscriptions.

ETSP - advertising, professional fees, analysis fees, computer services and subscriptions, travel, and provision for losses.

AGM - trustee fees and professional fees.

Nelnet Bank - marketing, consulting and professional fees, software, computer services and subscriptions, FDIC insurance, and management fee expense.

Disaggregated Revenue

1 unchanged sentence

Loan Servicing and Systems

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Government loan servicing $ 85,737 87,014 173,100 192,490

5 unchanged sentences

Education Technology Services and Payments

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Tuition payment plan services $ 36,013 34,164 76,085 73,043

1 unchanged sentence

Education technology services 44,481 47,205 100,177 103,227

Other 175 1,214 202 2,066

Education technology services and payments revenue $ 118,184 116,909 265,515 260,449

Solar Construction

Three months ended March 31,

Commercial revenue $ 3,989 11,920

Residential revenue (a) 6 1,806

Solar construction revenue $ 3,995 13,726

(a) In April 2024, the Company announced a change in its solar engineering, procurement, and construction operations to focus exclusively on the commercial solar market and will discontinue its residential solar operations.

As a result, residential revenue will decline from historical amounts as existing customer contracts are completed.

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 March 31,

ALLO preferred return $ 8,416 2,409

Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Investment activity, net $ 8,852 217 14,012 ( 1,082 )

ALLO preferred return 5,985 4,160 14,400 6,569

Borrower late fee income 1,642 2,584 3,231 5,718

1 unchanged sentence

Administration/sponsor fee income 1,293 1,482 2,598 3,028

Gain from solar investments, net 456 2,780

Loss from ALLO voting membership interest investment — — — ( 10,693 )

(Loss) gain from solar investments, net ( 1,502 ) ( 2,610 ) ( 1,046 ) 170

Other 5,202 6,663 10,498 11,360

1 unchanged sentence

The following table presents reinsurance premiums written and earned and loss reserves, commissions, and broker fees:

Three months ended March 31,

Three months ended Six months ended

June 30, June 30,

2025 2024 2025 2024

Premiums written:

10 unchanged sentences

Reinsurance losses and underwriting expenses $ 25,662 10,988 47,874 22,305

The Company’s loss reserve balance, net of amounts ceded to reinsurers, was $ 46.0 million and $ 33.1 million as of March 31, 2025 and December 31, 2024, respectively, which is included in "other liabilities" on the consolidated balance sheets.

The Company’s loss reserve balance, net of amounts ceded to reinsurers, was $ 57.1 million and $ 33.1 million as of June 30, 2025 and December 31, 2024, respectively, which is included in "other liabilities" on the consolidated balance sheets.

Major Customer

1 unchanged sentence

The Company earns loan servicing revenue from a servicing contract with the Department of Education (the "Department").

Revenue earned by the Company related to this contract was $ 87.4 million and $ 105.5 million for the three months ended March 31, 2025 and 2024, respectively.

Revenue earned by the Company related to this contract was $ 85.7 million and $ 87.0 million for the three months ended June 30, 2025 and 2024, respectively, and $ 173.1 million and $ 192.5 million for the six months ended June 30, 2025 and 2024, respectively.

The Company's legacy student loan servicing contract with the Department was scheduled to expire on December 14, 2023.

6 unchanged sentences

The following tables present the Company’s financial assets and liabilities that are measured at fair value on a recurring basis:

As of March 31, 2025 As of December 31, 2024

As of June 30, 2025 As of December 31, 2024

Level 1 Level 2 Total Level 1 Level 2 Total

10 unchanged sentences

The methodologies for estimating the fair value of financial assets and liabilities are described in note 24 of the notes to consolidated financial statements included in the 2024 Annual Report.

As of March 31, 2025

As of June 30, 2025

Fair value Carrying value Level 1 Level 2 Level 3

35 unchanged sentences

Derivative instruments 53 53 — 53 —

Subsequent Event - Partial Redemption of ALLO Investment

Nelnet has both a voting and preferred membership interest investment in ALLO.

On April 18, 2025, ALLO executed a financing transaction that will result in gross proceeds to ALLO of $ 500 million (the “Financing”).

In conjunction with the Financing, on April 18, 2025, Nelnet, ALLO, and certain other ALLO investors entered into a Membership Unit Redemption Agreement (the “Redemption Agreement”) pursuant to which ALLO will redeem certain of its membership interests from certain investors in ALLO, including Nelnet (the “Transaction”).

As part of the Transaction, ALLO will redeem all of Nelnet's outstanding preferred membership interests, including the preferred return accrued on such membership interests as of the closing date.

In addition, ALLO will redeem a portion of Nelnet’s voting membership interest of ALLO.

The Transaction is expected to close in late May 2025, subject to customary closing conditions.

Upon closing, Nelnet expects to receive aggregate cash proceeds of approximately $ 410 million from ALLO for these redemptions and recognize a pre-tax gain of approximately $ 175 million.

Immediately following the closing of the Transaction, Nelnet will not own any preferred membership interests of ALLO, but will maintain a significant voting equity investment in ALLO.

Nelnet’s ownership of ALLO will decrease from 45 % to approximately 26 %.

Nelnet will continue to account for its remaining voting membership interest of ALLO under the HLBV method of accounting, with the carrying value of such interest remaining at $ 0 as of the closing date of the Transaction.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements