What changed in this filing

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Item 1. Financial Statements

2025-11-06 compared with 2025-08-06 · 251 added, 232 removed, 1122 unchanged (30% of the section changed)

3 unchanged sentences

(Dollars in thousands, except share data)

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Loans and accrued interest receivable (net of allowance for loan losses of $ 107,532 and $ 114,890 , respectively)

36 unchanged sentences

issued and outstanding

10,658,604 shares

10,616,675 shares and 10,658,604 shares, respectively

Additional paid-in capital 1,058 7,389

Retained earnings 3,648,375 3,340,540

Accumulated other comprehensive (loss) earnings, net ( 2,208 ) 1,470

Accumulated other comprehensive earnings, net 3,497 1,470

Total Nelnet, Inc.

13 unchanged sentences

(Dollars in thousands, except share data)

Three months ended Six months ended

June 30, June 30,

Three months ended Nine months ended

September 30, September 30,

2025 2024 2025 2024

5 unchanged sentences

Net interest income 85,250 72,155 247,398 212,783

Less provision for loan losses 17,930 3,611 33,267 14,440

Less (negative provision) provision for loan losses ( 3,563 ) 18,111 29,704 32,551

Net interest income after provision for loan losses 88,813 54,044 217,694 180,232

5 unchanged sentences

Other, net 35,730 15,706 82,401 33,807

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

Loss on sale of loans, net ( 2,472 ) ( 107 ) ( 1,562 ) ( 1,685 )

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

13 unchanged sentences

Total expenses 294,872 322,635 857,205 873,637

Income before income taxes 237,364 58,428 343,504 152,365

Income tax expense 59,510 14,753 84,521 37,936

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

Income (loss) before income taxes 136,448 ( 2,223 ) 479,953 150,141

Income tax (expense) benefit ( 35,773 ) 282 ( 120,294 ) ( 37,653 )

Net income (loss) 100,675 ( 1,941 ) 359,659 112,488

Net loss attributable to noncontrolling interests 6,009 4,329 11,044 8,398

10 unchanged sentences

(Dollars in thousands)

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

Three months ended September 30, Nine months ended September 30,

2025 2024 2025 2024

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

Other comprehensive (loss) income:

Net income (loss) $ 100,675 ( 1,941 ) 359,659 112,488

Other comprehensive income:

Net changes related to foreign currency translation adjustments $ ( 13 ) 23 ( 160 ) 6

Net changes related to available-for-sale debt securities:

Unrealized holding (losses) gains arising during period, net ( 657 ) 8,874 ( 3,425 ) 25,635

Unrealized holding gains arising during period, net 8,637 2,656 5,212 28,291

Reclassification of gains recognized in net income, net ( 854 ) ( 1,721 ) ( 1,931 ) ( 3,326 )

7 unchanged sentences

Income tax effect 37 ( 119 ) ( 15 ) 47 ( 44 ) 140 137 ( 433 )

Other comprehensive (loss) income ( 1,779 ) 6,216 ( 3,678 ) 17,859

Comprehensive income 176,075 49,891 255,305 132,288

Other comprehensive income 5,705 829 2,027 18,688

Comprehensive income (loss) 106,380 ( 1,112 ) 361,686 131,176

Comprehensive loss attributable to noncontrolling interests 6,009 4,329 11,044 8,398

5 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 Noncontrolling interests Total equity

Class A Class B

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

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

Net income (loss) — — — — — — — 2,388 — ( 4,329 ) ( 1,941 )

7 unchanged sentences

Repurchase of common stock — ( 5,259 ) — — — — ( 576 ) — — — ( 576 )

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

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

Balance as of September 30, 2024 — 25,627,446 10,663,088 $ — 256 107 4,179 3,287,541 ( 1,431 ) ( 80,514 ) 3,210,138

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

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) — — — — — — — 106,684 — ( 6,009 ) 100,675

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

Other comprehensive income — — — — — — — — 5,705 — 5,705

Issuance of noncontrolling interests — — — — — — — — — 39,404 39,404

5 unchanged sentences

Repurchase of common stock — ( 217,850 ) — — ( 2 ) — ( 3,604 ) ( 23,667 ) — — ( 27,273 )

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

Conversion of common stock — 41,929 ( 41,929 ) — 1 ( 1 ) — — — — —

Balance as of September 30, 2025 — 25,375,537 10,616,675 $ — 254 106 1,058 3,648,375 3,497 ( 66,595 ) 3,586,695

See accompanying notes to consolidated financial statements.

2 unchanged sentences

(Dollars in thousands, except share data)

Class A Class B

11 unchanged sentences

— — — — — — — ( 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 September 30, 2024 — 25,627,446 10,663,088 $ — 256 107 4,179 3,287,541 ( 1,431 ) ( 80,514 ) 3,210,138

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) — — — — — — — 370,703 — ( 11,044 ) 359,659

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

Other comprehensive income — — — — — — — — 2,027 — 2,027

Issuance of noncontrolling interests — — — — — — — — — 45,583 45,583

5 unchanged sentences

Repurchase of common stock — ( 439,895 ) — — ( 4 ) — ( 19,523 ) ( 33,564 ) — — ( 53,091 )

Conversion of common stock — 41,929 ( 41,929 ) — 1 ( 1 ) — — — — —

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

Balance as of September 30, 2025 — 25,375,537 10,616,675 $ — 254 106 1,058 3,648,375 3,497 ( 66,595 ) 3,586,695

See accompanying notes to consolidated financial statements.

2 unchanged sentences

(Dollars in thousands)

Six months ended

Nine months ended

September 30,

Net income attributable to Nelnet, Inc.

7 unchanged sentences

Derivative market value adjustments 10,978 3,668

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

Payments to clearinghouse - initial and variation margin, net ( 5,015 ) ( 4,404 )

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

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

Loss on sale of loans, net 1,562 1,685

(Gain) loss on investments, net ( 47,076 ) 6,595

Loss from repurchases of debt, net 7,865 2

Deferred income tax benefit ( 82,465 ) ( 22,707 )

30 unchanged sentences

(Dollars in thousands)

Six months ended

Nine months ended

September 30,

Cash flows from financing activities, net of acquisitions:

22 unchanged sentences

Receipt of beneficial interest in consumer loan securitizations as consideration from sale of loans $ 28,137 13,799

Receipt of asset-backed investment securities as consideration from sale of loans $ 2,370 —

Distribution to noncontrolling interests $ 39,895 46,128

Issuance of noncontrolling interests $ 9,401 22,095

(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.

(a) The Company utilized $ 43.8 million and $ 34.0 million of federal and state tax credits related primarily to renewable energy during the nine months ended September 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

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

September 30, 2025 December 31, 2024 September 30, 2024 December 31, 2023

Total cash and cash equivalents $ 216,425 194,518 219,684 168,112

9 unchanged sentences

The accompanying unaudited consolidated financial statements of Nelnet, Inc.

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.

and subsidiaries (the “Company” or "Nelnet") as of September 30, 2025 and for the three and nine months ended September 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 and six months ended June 30, 2025 are not necessarily indicative of the results for the year ending December 31, 2025.

Operating results for the three and nine months ended September 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").

9 unchanged sentences

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:

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Non-Nelnet Bank:

2 unchanged sentences

Consolidation 5,970,781 6,279,604

Total 8,367,085 8,388,564

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

Consumer and other loans 411,470 345,560

Total (a) 7,860,257 8,388,564

Private education loans (b) 147,737 221,744

Consumer loans and other financing receivables (c) 840,739 345,560

Non-Nelnet Bank loans 8,848,733 8,955,868

2 unchanged sentences

Consolidation 154,203 —

Total 106,555 —

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

Total (a) 178,948 —

Private education loans (b) 529,396 482,445

Consumer and other loans 266,539 162,152

6 unchanged sentences

Private education loans ( 7,103 ) ( 11,130 )

Consumer and other loans ( 48,028 ) ( 38,468 )

Consumer loans and other financing receivables ( 33,147 ) ( 38,468 )

Non-Nelnet Bank allowance for loan losses ( 83,785 ) ( 98,689 )

4 unchanged sentences

$ 10,227,261 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.

(a) During the third quarter of 2025, the Asset Generation and Management operating segment (Non-Nelnet Bank) contributed $ 77.5 million of federally insured loans to Nelnet Bank.

(b) 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.

(c) In the third quarter of 2025, the Company began to purchase Pay Later receivables via a forward flow agreement from an unrelated third party.

As of September 30, 2025, the balance of Pay Later receivables was $ 548.3 million and these loans are included in the "consumer loans and other financing receivables" in the above table.

Pay Later receivables enable consumers to purchase goods or services at the time of the transaction and split their purchase into installment payments.

The Company purchases Pay Later receivables at a discount, and accretes the discount into interest income over the estimated life of the receivable.

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:

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Non-Nelnet Bank:

1 unchanged sentence

Private education loans 4.81 % 5.02 %

Consumer and other loans 11.67 % 11.13 %

Consumer loans and other financing receivables (b) 3.94 % 11.13 %

Federally insured loans (a) 0.40 % —

1 unchanged sentence

Consumer and other loans 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 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.

(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 19.4 % and 20.6 % as of September 30, 2025 and December 31, 2024, respectively, and for Nelnet Bank was 17.4 % as of September 30, 2025.

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

Consumer Loan Sales

During the second quarter of 2024 and third quarter of 2025, the Company sold $ 133.8 million and $ 203.3 million, respectively, of consumer loans, and recognized losses from such transactions of $ 1.4 million and $ 2.5 million, respectively.

For these transactions, the Company sold portfolios of loans to unrelated third parties who securitized such loans.

As partial consideration received for the loans sold, the Company received a residual interest in the loan securitization that are included in "other investments and notes receivable, net" on the Company's consolidated balance sheets.

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 (a) Charge-offs Recoveries Initial allowance on loans purchased with credit deterioration Balance at end of period

Three months ended June 30, 2025

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

Three months ended September 30, 2025

Non-Nelnet Bank:

1 unchanged sentence

Private education loans 7,406 — ( 459 ) 156 — — 7,103

Consumer and other loans 43,904 11,781 ( 7,967 ) 310 — 48,028

Consumer loans and other financing receivables 48,028 ( 8,217 ) ( 7,176 ) 512 — — 33,147

Federally insured loans 355 113 ( 23 ) — — 262 707

2 unchanged sentences

$ 125,349 ( 3,898 ) ( 15,081 ) 1,162 — — 107,532

Three months ended June 30, 2024

Three months ended September 30, 2024

Non-Nelnet Bank:

1 unchanged sentence

Private education loans 13,065 ( 126 ) ( 1,414 ) 219 — — 11,744

Consumer and other loans 18,761 ( 2,255 ) ( 2,634 ) 263 — 14,135

Consumer loans and other financing receivables 14,135 10,847 ( 2,981 ) 379 — — 22,380

Private education loans 3,559 565 ( 892 ) 438 — — 3,670

1 unchanged sentence

$ 96,764 17,859 ( 13,710 ) 1,229 — — 102,142

Six months ended June 30, 2025

Nine months ended September 30, 2025

Non-Nelnet Bank:

1 unchanged sentence

Private education loans 11,130 ( 2,761 ) ( 1,916 ) 650 — — 7,103

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

Consumer loans and other financing receivables 38,468 13,943 ( 20,319 ) 1,055 — — 33,147

Federally insured loans — 488 ( 43 ) — — 262 707

2 unchanged sentences

$ 114,890 29,280 ( 40,492 ) 2,794 1,060 — 107,532

Six months ended June 30, 2024

Nine months ended September 30, 2024

Non-Nelnet Bank:

1 unchanged sentence

Private education loans 15,750 ( 392 ) ( 4,254 ) 640 — — 11,744

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

Consumer loans and other financing receivables 11,742 17,184 ( 7,567 ) 1,021 — — 22,380

Private education loans 3,347 1,576 ( 1,796 ) 543 — — 3,670

2 unchanged sentences

(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:

The following table presents the reduction to provision for loan losses as a result of consumer loan sales during the periods presented.

Provision for current period Reduction to provision Provision

(negative provision) for loan losses

Three months ended June 30, 2025

Three months ended September 30, 2025

Non-Nelnet Bank

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

Three months ended June 30, 2024

Consumer loans and other financing receivables $ 20,693 ( 28,910 ) ( 8,217 )

Three months ended September 30, 2024

Non-Nelnet Bank

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

Six months ended June 30, 2025

Consumer loans and other financing receivables $ 11,026 ( 179 ) 10,847

Nine months ended September 30, 2025

Non-Nelnet Bank

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

Six months ended June 30, 2024

Consumer loans and other financing receivables $ 42,853 ( 28,910 ) 13,943

Nine months ended September 30, 2024

Non-Nelnet Bank

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

Consumer loans and other financing receivables $ 30,058 ( 12,874 ) 17,184

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 loans sold.

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

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 June 30, Six months ended June 30,

Three months ended September 30, Nine months ended September 30,

2025 2024 2025 2024

2 unchanged sentences

Private education loans 0.79 % 1.97 % 0.95 % 1.89 %

Consumer and other loans 7.62 % 4.62 % 6.58 % 4.98 %

Consumer loans and other financing receivables 5.75 % 4.81 % 6.28 % 4.92 %

Federally insured loans 0.06 % — 0.06 % —

2 unchanged sentences

(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 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.

As of September 30, 2025 and December 31, 2024, Nelnet Bank had a liability of approximately $ 751,000 and $ 326,000 , respectively, related to $ 80.1 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 Six months ended

June 30, June 30,

Three months ended Nine months ended

September 30, September 30,

2025 2024 2025 2024

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

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

(Negative provision) provision for loan losses from allowance activity table above $ ( 3,898 ) 17,859 29,280 32,338

Provision for unfunded loan commitments 335 252 424 213

(Negative provision) provision for loan losses reported in consolidated statements of income $ ( 3,563 ) 18,111 29,704 32,551

Key Credit Quality Indicators

Loan Status and Delinquencies

Key credit quality indicators for the Company’s federally insured, private education, consumer, and other loan portfolios are loan status, including delinquencies.

Key credit quality indicators for the Company’s federally insured, private education, and consumer and other loan portfolios are loan status, including delinquencies.

The impact of changes in loan status is incorporated into the allowance for loan losses calculation.

Delinquencies have the potential to adversely impact the Company’s earnings through increased servicing and collection costs and account charge-offs.

Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period (but for purposes of the following tables, do not include those loans while they are in forbearance).

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

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

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

Federally insured loans - Non-Nelnet Bank:

28 unchanged sentences

Total private education loans and accrued interest receivable, net of allowance for loan losses $ 137,185 $ 206,283 $ 218,027

Consumer and other loans - Non-Nelnet Bank:

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

Consumer loans and other financing receivables - Non-Nelnet Bank:

Loans in deferment $ 1,354 0.2 % $ 150 0.0 % $ 315 0.1 %

5 unchanged sentences

Total loans in repayment 839,385 99.8 100.0 % 345,410 100.0 100.0 % 244,237 99.9 100.0 %

Total consumer and other loans 411,470 100.0 % 345,560 100.0 % 179,447 100.0 %

Total consumer loans and other financing receivables 840,739 100.0 % 345,560 100.0 % 244,552 100.0 %

Accrued interest receivable 1,102 1,868 1,115

1 unchanged sentence

Allowance for loan losses ( 33,147 ) ( 38,468 ) ( 22,380 )

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

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

Total consumer loans and other financing receivables and accrued interest receivable, net of allowance for loan losses $ 792,479 $ 298,247 $ 212,498

Federally insured loans - Nelnet Bank (a):

28 unchanged sentences

Total private education loans and accrued interest receivable, net of allowance for loan losses $ 517,412 $ 471,881 $ 357,868

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

Consumer and other loans - Nelnet Bank (a):

15 unchanged sentences

Nelnet Bank Private Education Loans

Loan balance as of June 30, 2025

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

Loan balance as of September 30, 2025

Nine months ended September 30, 2025 2024 2023 2022 2021 Prior years Total Percent of total

FICO at origination or purchase:

17 unchanged sentences

Nelnet Bank Consumer and Other Loans

Loan balance as of June 30, 2025

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

Loan balance as of September 30, 2025

Nine months ended September 30, 2025 2024 2023 2022 2021 Prior years Total Percent of total

FICO at origination:

16 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 June 30, 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 September 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 June 30, 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 September 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.

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

Nine months ended September 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 $ 137,185

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

Consumer and other loans - Non-Nelnet Bank:

Gross charge-offs - nine months ended September 30, 2025 $ — — — — 52 1,864 1,916

Consumer loans and other financing receivables - Non-Nelnet Bank:

Loans in deferment $ — 452 902 — — — 1,354

5 unchanged sentences

Total loans in repayment 768,532 41,720 26,202 2,349 311 271 839,385

Total consumer and other loans $ 191,870 181,791 34,603 2,596 326 284 411,470

Total consumer loans and other financing receivables $ 768,532 42,172 27,104 2,349 311 271 840,739

Accrued interest receivable 1,102

1 unchanged sentence

Allowance for loan losses ( 33,147 )

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

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

Total consumer loans and other financing receivables and accrued interest receivable, net of allowance for loan losses $ 792,479

Gross charge-offs - nine months ended September 30, 2025 $ 5,565 8,322 6,134 280 9 9 20,319

Nine months ended September 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 $ 517,412

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

Gross charge-offs - nine months ended September 30, 2025 $ — 376 782 628 372 3,145 5,303

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 $ 260,616

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

Gross charge-offs - nine months ended September 30, 2025 $ 61 1,205 283 — 306 174 2,029

(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 June 30, 2025

As of September 30, 2025

Interest rate

11 unchanged sentences

1/29/27 / 5/1/27

Consumer loan warehouse facilities 68,026 5.69 % - 6.43 %

Consumer loan warehouse and other facilities 625,570 5.43 % - 6.12 %

11/13/27 - 2/29/28

32 unchanged sentences

Total $ 8,309,797

Warehouse Facilities

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

Warehouse and Other Facilities

The Company funds a portion of its loan acquisitions through the use of warehouse and other secured 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 June 30, 2025:

The following table summarizes the Company's warehouse and other facilities as of September 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

2 unchanged sentences

$ 1,175,000 535,389 639,611 $ 41,753

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

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 %

Consumer loans and other financing receivables $ 925,000 625,570 299,430 11/13/2026 - 7/31/2027

11/13/2027 - 2/29/2028

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

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

Debt Repurchases

1 unchanged sentence

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,

Three months ended September 30, Nine months ended September 30,

2025 2024 2025 2024

2 unchanged sentences

Remaining unamortized cost of issuance ( 22 ) ( 1 ) ( 33 ) ( 1 )

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

(Loss) gain, net $ ( 8,304 ) 7 ( 7,865 ) ( 2 )

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

As of September 30, 2025, the Company holds $ 499.5 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 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.

The following table summarizes the Company’s outstanding basis swaps as of September 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 June 30, 2025 and December 31, 2024 to economically hedge loans earning fixed rate floor income.

The following table summarizes the outstanding derivative instruments used by the Company as of September 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.

6 unchanged sentences

(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.

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

Nelnet Bank Derivatives

5 unchanged sentences

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

As of September 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

13 unchanged sentences

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

As of June 30, 2025

As of September 30, 2025

Maturity Notional amount Weighted average fixed rate paid by the Company

2 unchanged sentences

$ 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.

Nelnet Bank's derivatives used to hedge third-party deposits qualify for hedge accounting.

As such, the changes in the fair value of these derivatives are recognized in other comprehensive income, net of tax, in the consolidated financial statements.

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 nine months ended September 30, 2025.

Consolidated Financial Statement Impact Related to Derivatives

4 unchanged sentences

Fair value of asset derivatives Fair value of liability derivatives

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

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

Interest rate swaps - intercompany deposits $ 359 3,232 1,736 53

3 unchanged sentences

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,

Three months ended September 30, Nine months ended September 30,

2025 2024 2025 2024

7 unchanged sentences

Interest rate swaps - intercompany deposits ( 327 ) ( 3,647 ) ( 4,556 ) ( 793 )

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

Total change in fair value - expense ( 788 ) ( 13,165 ) ( 10,978 ) ( 3,668 )

Derivative market value adjustments and derivative settlements, net - (expense) income $ ( 27 ) ( 11,525 ) ( 8,728 ) 1,378

1 unchanged sentence

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

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

As of September 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

29 unchanged sentences

Beneficial interest in loan securitizations (e):

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

Consumer loans, net of allowance for credit losses of $ 43,153 and $ 38,590 as of September 30, 2025 and December 31, 2024, respectively

140,742 142,764

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

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

42,770 52,824

10 unchanged sentences

The Company must retain these investment securities until the latest of (i) the date the aggregate outstanding principal balance of the loans in the securitization is 33 % or less of the initial loan balance, and (ii) the date the aggregate outstanding principal balance of the bonds is 33 % or less of the aggregate initial outstanding principal balance of the bonds, at which time the Company can sell its investment securities (bonds) to a third party.

On August 11, 2025, the Investee 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 investment and received cash proceeds of $ 10.1 million and recognized a gain of $ 7.8 million.

This gain is included in "other, net" in "other income (expense)" on the consolidated statements of income.

The Company accounts for its investment in the Investee using the measurement alternative method, which requires it to adjust its carrying value of the investment for changes resulting from observable market transactions.

As a result of the Investee’s equity raise, the Company recognized a gain of $ 22.4 million during the third quarter of 2025 to adjust its carrying value of its remaining investment in the Investee to reflect the August 2025 transaction value.

This gain is included in "other, net" in "other income (expense)" on the consolidated statements of income.

After the completion of this transaction, the Company's carrying amount of its remaining investment in the Investee is $ 31.7 million.

The Company has an investment in Agile Sports Technologies, Inc.

(doing business as “Hudl”).

2 unchanged sentences

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

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

As of September 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.

2 unchanged sentences

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 .

Using the HLBV method of accounting, the Company recognized $ 10.7 million of losses during the first quarter of 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.

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.

Prior to redeeming all its outstanding preferred membership interests in June 2025, the Company recognized $ 4.8 million on its ALLO preferred membership interests during the three months ended September 30, 2024 and $ 14.4 million and $ 11.4 million during the nine months ended September 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.

(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 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.

As of the latest remittance reports filed by the various trusts prior to or as of September 30, 2025, the Company's ownership correlates to approximately $ 1.07 billion, $ 400 million, and $ 280 million of consumer, private education, and federally insured student loans, respectively, included in these securitizations.

The Company has recorded an allowance for credit losses (and related provision expense) on these investments.

See note 9 for additional information.

(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 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.

As of September 30, 2025, the Company has invested a total of $ 306.1 million and its third-party investors have invested $ 307.5 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 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.

As of September 30, 2025, the Company and its third-party co-investors have earned $ 337.2 million and $ 295.7 million, respectively, of tax credits on those projects that remain outstanding.

The solar investment negative carrying value on the consolidated balance sheet of $ 210.3 million as of September 30, 2025 represents the sum of total tax credits earned on solar projects placed in service through September 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 September 30, 2025, excluding the portion owned by syndication partners that is reflected as "noncontrolling interests" on the consolidated balance sheet, was $ 109.8 million.

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

For the majority of the Company’s solar investments, the HLBV method of accounting results in accelerated losses in the initial years of investment.

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 June 30, Six months ended June 30,

For the majority of the Company’s solar investments, the HLBV method of accounting results in accelerated losses in the initial years of investment and gains recognized at the end of the contractual agreement (typically five years ).

The following table presents (i) the Company's recognized HLBV losses and gains recognized from sales of certain investments, 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 recognized pre-tax net loss attributable to the Company:

Three months ended September 30, Nine months ended September 30,

2025 2024 2025 2024

1 unchanged sentence

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

(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

Losses from solar investments, net ( 10,884 ) ( 11,238 ) ( 11,930 ) ( 11,068 )

losses attributable to noncontrolling members, net ( 5,659 ) ( 3,936 ) ( 9,863 ) ( 5,568 )

Net loss attributable to the Company $ ( 5,225 ) ( 7,302 ) ( 2,067 ) ( 5,500 )

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

As of September 30, 2025

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

15 unchanged sentences

Held-to-maturity asset-backed securities

FFELP loan $ — 2,632 11,730 187,444 201,806

Private education loan — — — 1,785 1,785

Total held-to-maturity asset-backed securities at amortized cost $ — 2,632 11,730 189,229 203,591

Total held-to-maturity asset-backed securities at fair value $ — 2,686 11,576 194,202 208,464

FFELP loan - amortized cost $ — 2,546 13,132 185,363 201,041

FFELP loan - fair value $ — 2,582 13,024 190,386 205,992

Beneficial interest in loan securitizations (a):

1 unchanged sentence

Fair value $ — — — — 213,278

(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 June 30, 2025:

(a) The Company's beneficial interest in loan securitizations is 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 September 30, 2025:

Carrying value Gross unrealized gains Gross unrealized losses Fair value

1 unchanged sentence

Beneficial interest in loan securitizations 201,800 13,170 ( 1,692 ) 213,278

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.

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

As of September 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 Six months ended

June 30, June 30,

Three months ended Nine months ended

September 30, September 30,

2025 2024 2025 2024

6 unchanged sentences

Weighted average remaining useful life as of

June 30, 2025 (months)

June 30, 2025 December 31, 2024

September 30, 2025 (months)

September 30, 2025 December 31, 2024

Amortizable intangible assets, net:

4 unchanged sentences

Total amortizable intangible assets, net 88 $ 31,754 36,328

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 recorded amortization expense on its intangible assets of $ 1.5 million and $ 2.1 million for the three months ended September 30, 2025 and 2024, respectively, and $ 4.6 million and $ 6.4 million during the nine months ended September 30, 2025 and 2024, respectively.

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

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

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

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

2025 (October 1 - December 31) $ 1,525

2030 and thereafter 9,141

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

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

Nelnet Financial Services

10 unchanged sentences

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

Three months ended September 30, 2025

Investments - solar tax equity (a) $ — — — — — 5,761 5,761

Investments - beneficial interest in loan securitizations (b) — — 2,145 — — — 2,145

Property and equipment - internally developed software — 1,145 — — — — 1,145

Leases, buildings, and associated improvements (c) — — — — — 94 94

$ — 1,145 2,145 — — 5,855 9,145

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

Three months ended September 30, 2024

Investments - beneficial interest in loan securitizations (b) $ — — 28,952 — — — 28,952

Investments - venture capital — — — — — 100 100

$ — — 28,952 — — 100 29,052

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

Nine months ended September 30, 2025

Investments - solar tax equity (a) $ — — — — — 5,761 5,761

Investments - beneficial interest in loan securitizations (b) — — 8,632 — — — 8,632

Property and equipment - internally developed software — 1,145 — — — — 1,145

Leases, buildings, and associated improvements (c) — — — — 81 3,363 3,444

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

Investments - venture capital — — — — — 140 140

$ — 1,145 8,632 — 81 11,166 21,024

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

Nine months ended September 30, 2024

Investments - beneficial interest in loan securitizations (b) — — 34,863 — — — 34,863

Property and equipment / other assets - solar facilities and inventory (e) — — — — — 1,865 1,865

Investments - venture capital — — — — — 137 137

$ — — 34,863 — — 2,002 36,865

(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.

(a) The Company recorded a non-cash impairment related to its ownership in a solar development project.

(b) 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.

(c) 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.

(d) In the second quarter of 2025, the Company received notification of a customer contract cancellation.

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.

(e) 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.

1 unchanged sentence

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

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Retail and other savings $ 1,180,088 916,475

2 unchanged sentences

Total interest-bearing deposits $ 1,476,765 1,186,131

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

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

and its subsidiaries totaling $ 256.3 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 June 30, 2025:

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

One year or less $ 149,058

7 unchanged sentences

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

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.

Deposits that exceeded the FDIC insurance limits as of September 30, 2025 were $ 44.0 million, the majority of which were intercompany deposits from Nelnet, Inc.

and its subsidiaries.

5 unchanged sentences

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

Three months ended June 30,

Three months ended September 30,

Net income attributable to Nelnet, Inc.

2 unchanged sentences

Earnings per share - basic and diluted $ 2.94 2.94 2.94 0.07 0.07 0.07

Six months ended June 30,

Nine months ended September 30,

Net income attributable to Nelnet, Inc.

5 unchanged sentences

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

Three months ended June 30, 2025

Three months ended September 30, 2025

Reportable Segments Reconciling Items

8 unchanged sentences

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 — — 11,133 6,797 17,930 — — — 17,930

Less (negative provision) provision for loan losses — — ( 7,374 ) 3,811 ( 3,563 ) — — — ( 3,563 )

Net interest income after provision for loan losses 531 8,564 52,059 11,592 72,746 13,626 2,442 — 88,813

1 unchanged sentence

LSS revenue 151,052 — — — 151,052 — — — 151,052

Intersegment revenue 5,603 65 — — 5,668 — — ( 5,668 ) —

ETSP revenue — 129,321 — — 129,321 — — — 129,321

Intersegment revenue 5,313 70 — — 5,383 — — ( 5,383 ) —

Reinsurance premiums earned — — — — — 23,165 — — 23,165

1 unchanged sentence

Other, net 105 — 195 1,308 1,608 5,674 28,336 112 35,730

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

Loss on sale of loans, net — — ( 2,472 ) — ( 2,472 ) — — — ( 2,472 )

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

20 unchanged sentences

$ 35,165 18,967 27,811 4,605 86,548 15,408 4,728 — 106,684

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

Total assets as of September 30, 2025 $ 200,205 525,704 10,042,521 2,003,322 12,771,752 1,330,228 671,263 ( 896,561 ) 13,876,682

(a) Other expenses for each reportable segment includes:

LSS - communications, professional fees, collection costs, 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, and travel.

1 unchanged sentence

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

Three months ended June 30, 2024

Three months ended September 30, 2024

Reportable Segments Reconciling Items

8 unchanged sentences

Net interest income 894 9,734 38,399 10,555 59,582 10,170 2,401 — 72,155

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

Less (negative provision) provision for loan losses — — 11,968 6,143 18,111 — — — 18,111

Net interest income after provision for loan losses 894 9,734 26,431 4,412 41,471 10,170 2,401 — 54,044

1 unchanged sentence

LSS revenue 108,175 — — — 108,175 — — — 108,175

Intersegment revenue 6,106 56 — — 6,162 — — ( 6,162 ) —

ETSP revenue — 118,179 — — 118,179 — — — 118,179

Intersegment revenue 5,428 60 — — 5,488 — — ( 5,488 ) —

Reinsurance premiums earned — — — — — 16,619 — — 16,619

1 unchanged sentence

Other, net 690 — 4,918 841 6,449 5,751 3,506 — 15,706

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

Loss on sale of loans, net — — ( 107 ) — ( 107 ) — — — ( 107 )

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

20 unchanged sentences

$ ( 3,457 ) 20,417 ( 12,423 ) ( 3,615 ) 922 10,580 ( 9,116 ) — 2,388

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

Total assets as of September 30, 2024 $ 202,366 556,897 10,707,442 1,328,808 12,795,513 1,020,732 763,310 ( 495,427 ) 14,084,128

(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.

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, software, FDIC insurance, and management fee expense.

Six months ended June 30, 2025

Nine months ended September 30, 2025

Reportable Segments Reconciling Items

8 unchanged sentences

Net interest income 1,875 20,921 147,495 41,858 212,149 29,118 6,131 — 247,398

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

Less (negative provision) provision for loan losses — — 16,770 12,934 29,704 — — — 29,704

Net interest income after provision for loan losses 1,875 20,921 130,725 28,924 182,445 29,118 6,131 — 217,694

1 unchanged sentence

LSS revenue 392,517 — — — 392,517 — — — 392,517

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

ETSP revenue — 394,836 — — 394,836 — — — 394,836

Intersegment revenue 16,600 198 — — 16,798 — — ( 16,798 ) —

Reinsurance premiums earned — — — — — 73,964 — — 73,964

1 unchanged sentence

Other, net 331 — 11,697 1,842 13,870 12,050 56,176 304 82,401

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

Loss on sale of loans, net — — ( 1,562 ) — ( 1,562 ) — — — ( 1,562 )

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

20 unchanged sentences

$ 64,403 72,966 71,273 5,757 214,399 30,544 125,760 — 370,703

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

Total assets as of September 30, 2025 $ 200,205 525,704 10,042,521 2,003,322 12,771,752 1,330,228 671,263 ( 896,561 ) 13,876,682

(a) Other expenses for each reportable segment includes:

3 unchanged sentences

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

Six months ended June 30, 2024

Nine months ended September 30, 2024

Reportable Segments Reconciling Items

8 unchanged sentences

Net interest income 4,046 23,315 114,742 26,586 168,689 36,642 7,452 — 212,783

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

Less (negative provision) provision for loan losses — — 14,199 18,352 32,551 — — — 32,551

Net interest income after provision for loan losses 4,046 23,315 100,543 8,234 136,138 36,642 7,452 — 180,232

1 unchanged sentence

LSS revenue 344,428 — — — 344,428 — — — 344,428

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

ETSP revenue — 378,627 — — 378,627 — — — 378,627

Intersegment revenue 18,419 166 — — 18,585 — — ( 18,585 ) —

Reinsurance premiums earned — — — — — 44,250 — — 44,250

1 unchanged sentence

Other, net 2,085 — 11,239 1,991 15,315 6,763 11,730 — 33,807

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

Loss on sale of loans, net — — ( 1,685 ) — ( 1,685 ) — — — ( 1,685 )

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

20 unchanged sentences

$ 10,402 76,112 31,700 ( 5,530 ) 112,684 33,409 ( 25,206 ) — 120,886

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

Total assets as of September 30, 2024 $ 202,366 556,897 10,707,442 1,328,808 12,795,513 1,020,732 763,310 ( 495,427 ) 14,084,128

(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, computer services and subscriptions, FDIC insurance, and management fee expense.

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

Disaggregated Revenue

1 unchanged sentence

Loan Servicing and Systems

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

Three months ended September 30, Nine months ended September 30,

2025 2024 2025 2024

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

Government loan servicing (a) $ 112,798 85,215 285,896 277,705

Private education and consumer loan servicing 24,293 13,057 69,721 38,634

3 unchanged sentences

Loan servicing and systems revenue $ 151,052 108,175 392,517 344,428

(a) Upon reaching a final agreement with the Department of Education (the "Department"), the Company recognized $ 32.9 million of non-recurring revenue during the third quarter of 2025 on a contract modification for services previously performed.

Education Technology Services and Payments

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

Three months ended September 30, Nine months ended September 30,

2025 2024 2025 2024

6 unchanged sentences

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

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

Three months ended September 30, Nine months ended September 30,

2025 2024 2025 2024

Investment activity, net $ 42,317 8,529 56,216 7,447

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

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

Investment advisory services (WRCM) 1,504 1,524 2,977 3,033

Administration/sponsor fee income 2,267 1,420 4,978 4,448

Investment advisory services (WRCM) 2,010 1,394 4,987 4,427

Borrower late fee income 1,817 1,741 5,046 7,460

ALLO preferred return — 4,783 14,400 11,353

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

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

Loss from solar investments, net ( 10,884 ) ( 11,238 ) ( 11,930 ) ( 11,068 )

(Loss) gain on debt repurchases ( 8,304 ) 7 ( 7,865 ) ( 2 )

Other 6,507 9,070 16,569 20,435

1 unchanged sentence

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

Three months ended Six months ended

June 30, June 30,

Three months ended Nine months ended

September 30, September 30,

2025 2024 2025 2024

11 unchanged sentences

Reinsurance losses and underwriting expenses $ 19,962 16,761 67,836 39,066

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.

The Company’s loss reserve balance, net of amounts ceded to reinsurers, was $ 63.5 million and $ 33.1 million as of September 30, 2025 and December 31, 2024, respectively, which is included in "other liabilities" on the consolidated balance sheets.

Major Customer

Government Loan Servicing

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 $ 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 earns loan servicing revenue from a servicing contract with the Department.

Revenue earned by the Company related to this contract was $ 112.8 million and $ 85.2 million for the three months ended September 30, 2025 and 2024, respectively, and $ 285.9 million and $ 277.7 million for the nine months ended September 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 June 30, 2025 As of December 31, 2024

As of September 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 June 30, 2025

As of September 30, 2025

Fair value Carrying value Level 1 Level 2 Level 3

35 unchanged sentences

Derivative instruments 53 53 — 53 —

Subsequent Event

On October 23, 2025, the Company announced that it entered into a definitive and binding purchase agreement with DH Corporation, a wholly owned subsidiary of Finastra Holdings Limited (“Finastra”), pursuant to which Nelnet Canada, Inc., a wholly owned subsidiary of the Company, will acquire Finastra’s Canadian student loan servicing business for a purchase price of approximately $ 93 million in cash.

The transaction is expected to close in the first calendar quarter of 2026, subject to customary closing conditions.

Finastra’s Canadian student loan servicing business is the leading provider of student loan servicing solutions to governments and financial institutions in Canada providing technology enabled managed services across the loan lifecycle.

The business currently services loans for 2.4 million borrowers on proprietary technology platforms.

The operating results of this acquisition will be included in the Loan Servicing and Systems reportable operating segment following the closing 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