What changed in this filing

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Item 9A. Controls and Procedures

2026-02-26 compared with 2025-02-27 · 704 added, 699 removed, 2279 unchanged (38% of the section changed)

23 unchanged sentences

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2024 and 2023, the related consolidated statements of income, comprehensive income, shareholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2024, and the related notes (collectively, the consolidated financial statements), and our report dated February 27, 2025 expressed an unqualified opinion on those consolidated financial statements.

ended December 31, 2025, and the related notes (collectively, the consolidated financial statements), and our report dated February 26, 2026 expressed an unqualified opinion on those consolidated financial statements.

Basis for Opinion

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Bank National Association, as Administrative Agent, filed as Exhibit 10.3 to the registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 and incorporated herein by reference.

10.19 Third Amended and Restated Guaranty dated as of September 22, 2021, by each of the subsidiaries of Nelnet, Inc.

signatories thereto, in favor of U.S.

Bank National Association, as Administrative Agent, filed as Exhibit 10.2 to the registrant's Current Report on Form 8-K filed on September 22, 2021 and incorporated herein by reference.

10.20 Guaranty Supplement to the Third Amended and Restated Guaranty, dated as of July 27, 2022, in favor of U.S.

Bank National Association, as Administrative Agent, filed as Exhibit 10.1 to the registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 and incorporated herein by reference.

10.21 Guarantor Consent and Reaffirmation dated as of June 22, 2023, by each of the subsidiaries of Nelnet, Inc.

signatories thereto, in favor of U.S.

Bank National Association, as Administrative Agent, filed as Exhibit 10.4 to the registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 and incorporated herein by reference.

10.22 Guaranty Supplement to the Third Amended and Restated Guaranty, dated as of March 15, 2024, in favor of U.S.

Bank National Association, as Administrative Agent, filed as Exhibit 10.1 to the registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 and incorporated herein by reference.

10.19 Form of Trust/Custodial/Safekeeping Agreement by and between National Education Loan Network, Inc., as Principal, and Union Bank and Trust Company, as Trustee, filed as Exhibit 10.55 to the registrant's Annual Report on Form 10-K for the year ended December 31, 2017 and incorporated herein by reference.

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10.21 First Amended and Restated Loan Participation Agreement dated as of June 21, 2018 between Union Bank and Trust Company and Union Bank and Trust Company as trustee for National Education Loan Network, Inc.

, filed as Exhibit 10.25 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2024 and incorporated herein by reference.

10.22±± Amended and Restated Trust Agreement, dated effective as of January 11, 2019, by and among Nelnet Private Student Loan Financing Corporation, as Depositor, Union Bank and Trust Company, as Trustee, National Education Loan Network, Inc., as Administrator, and U.S.

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have participated, filed as Exhibit 10.84 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2021 and incorporated herein by reference.

10.29 Membership Unit Redemption Agreement dated as of April 18, 2025 by and among ALLO Holdings LLC, Nelnet Inc., SDC Allo Holdings, LLC, and Museum of American Speed, filed as Exhibit 10.1 to the registrant's Current Report on Form 8-K filed on April 21, 2025 and incorporated herein by reference.

19* Nelnet, Inc.

Securities Trading Policy dated February 1, 2024.

Securities Trading Policy dated January 29, 2026.

21.1* Subsidiaries of Nelnet, Inc.

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97* Nelnet, Inc.

Incentive Compensation Clawback Policy dated November 9, 2023, filed as Exhibit 97 to the registrant's Annual Report on Form 10-K for the year ended December 31, 2023 and incorporated herein by reference.

Incentive Compensation Clawback Policy, amended as of November 5, 2025.

101.INS* Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

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The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Assessment of the allowance for loan losses

As discussed in Note 3 to the consolidated financial statements, the Company's allowance for loan losses as of December 31, 2024, was $114.9 million, of which $49.1 million related to the Company's allowance for loan losses on federally insured loans and $11.1 million related to the Company's allowance for loan losses on Non-Nelnet Bank private education loans, collectively, the allowance for loan losses (the ALL).

Assessment for the allowance for loan losses on loans evaluated on a collective basis

As discussed in Notes 2 and 4 to the consolidated financial statements, the Company’s allowance for loan losses as of December 31, 2025, was $132,078 thousand, a substantial portion of which relates to federally insured and private education loans and certain consumer loans (the collective ALL).

The ALL is the measure of expected credit losses on a pooled basis for those loans that share similar risk characteristics based on a collective assessment using a combination of measurement models and management judgment.

The Company estimated the ALL using an undiscounted cash flow model.

The Company's methodology is based on relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts.

The Company estimated the collective ALL using an undiscounted cash flow model for its federally insured and private education loans and a remaining life methodology for its consumer loans.

For the undiscounted cash flow models, the expected credit losses are the product of multiplying the Company’s estimates of probability of default (PD), loss given default (LGD), and the exposure at default over the expected life of the loans.

The undiscounted cash flow model incorporates probability weighted economic forecast scenarios and macroeconomic assumptions over the reasonable and supportable forecast periods.

After the reasonable and supportable forecast periods, the Company reverts on a straight-line basis over the reversion period to its historical loss rates, evaluated

over the historical observation period, for the remaining life of the loans.

All such periods are established for each portfolio segment.

A portion of the ALL is comprised of qualitative adjustments to historical loss experience.

We identified the assessment of the allowance for loan losses as a critical audit matter.

For the remaining life method, the expected credit losses are the product of multiplying the Company’s estimated net loss rate by the exposure at default over the expected life of the loans.

The Company’s methodology is based on relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts.

The undiscounted cash flow model and remaining life methodology incorporate probability weighted economic forecast scenarios and macroeconomic assumptions over the reasonable and supportable forecast period.

After the reasonable and supportable forecast period, the Company

reverts on a straight-line basis over the reversion period to its historical loss rates, evaluated over the historical observation period, for the remaining life of the loans.

A portion of the collective ALL is comprised of qualitative adjustments to historical loss experience.

We identified the assessment of the collective ALL as a critical audit matter.

A high degree of audit effort, including specialized skills and knowledge, and subjective and complex auditor judgment was involved in the assessment due to significant measurement uncertainty.

Specifically, the assessment encompassed the evaluation of the ALL methodology, including the methods, models, and significant assumptions used to estimate the PD and LGD.

Such assumptions included the economic forecast scenario and macroeconomic assumptions, and the reasonable and supportable forecast periods.

The assessment also included an evaluation of the conceptual soundness and performance of the PD and LGD models.

Specifically, the assessment encompassed the evaluation of the collective ALL methodology, including the methods, models, and significant assumptions used to estimate the PD, LGD, and estimated net loss rate.

Such assumptions included the economic forecast scenario and macroeconomic assumptions, and the reasonable and supportable forecast period.

The assessment also included an evaluation of the conceptual soundness and performance of the PD and LGD models and the performance of the estimated net loss rate.

In addition, auditor judgment was required to evaluate the sufficiency of audit evidence obtained.

The following are the primary procedures we performed to address this critical audit matter.

We evaluated the design and tested the operating effectiveness of certain internal controls related to the Company's measurement of the ALL estimate, including controls over the:

• development of the ALL methodology

• continued use and appropriateness of changes made to PD and LGD models

• identification and determination of the significant assumptions used in the PD and LGD models

• performance monitoring of the PD and LGD models

• analysis of the ALL results, trends, and ratios.

We evaluated the Company's process to develop the ALL estimate by testing certain sources of data, factors, and assumptions that the Company used, and considered the relevance and reliability of such data, factors, and assumptions.

We evaluated the design and tested the operating effectiveness of certain internal controls related to the Company’s measurement of the collective ALL estimate, including controls over the:

• development of the collective ALL methodology

• continued use and appropriateness of changes made to PD and LGD models and the estimated net loss rate method

• identification and determination of the significant assumptions used in the PD and LGD models and the estimated net loss rate method

• conceptual soundness and performance monitoring of the PD and LGD models and performance monitoring of the estimated net loss rate method

• analysis of the collective ALL results, trends, and ratios.

We evaluated the Company’s process to develop the collective ALL estimate by testing certain sources of data, factors, and assumptions that the Company used, and considered the relevance and reliability of such data, factors, and assumptions.

In addition, we involved credit risk professionals with specialized skills and knowledge, who assisted in:

• evaluating the Company’s ALL methodology for compliance with U.S.

• evaluating the Company’s collective ALL methodology for compliance with U.S.

generally accepted accounting principles

• evaluating judgments made by the Company relative to the assessment and performance testing of the PD and LGD models by comparing them to relevant Company-specific metrics and trends and the applicable industry practices

• assessing the conceptual soundness and performance testing of the PD and LGD models by inspecting the model documentation to determine whether the models are suitable for their intended use

• evaluating the selection of the economic forecast scenarios and underlying assumptions by comparing it to the Company’s business environment and relevant industry practices

We also assessed the cumulative results of the procedures performed to assess the sufficiency of the audit evidence obtained related to the ALL estimate by evaluating the:

• evaluating judgments made by the Company relative to the development and performance testing of the PD and LGD models and the estimated net loss rate method by comparing them to relevant Company-specific metrics and trends and the applicable industry practices

• assessing the conceptual soundness of the PD and LGD models by inspecting the model documentation to determine whether the models are suitable for their intended use

• evaluating the selection of the economic forecast scenarios and macroeconomic assumptions and the reasonable and supportable forecast period by comparing it to the Company’s business environment and relevant industry practices

We also assessed the cumulative results of the procedures performed to assess the sufficiency of the audit evidence obtained related to the collective ALL estimate by evaluating the:

• cumulative results of the audit procedures

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Retained earnings 3,681,333 3,340,540

Accumulated other comprehensive earnings (loss), net 1,470 ( 20,119 )

Accumulated other comprehensive earnings, net 2,619 1,470

Total Nelnet, Inc.

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Less provision for loan losses 67,851 54,607 8,115

Net interest income after provision for loan losses 238,255 256,594 277,696

Less provision for beneficial interests 11,311 39,491 —

Net interest income after provision 275,347 198,764 256,594

Other income (expense):

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Other, net 97,587 59,959 ( 91,989 )

Loss on sale of loans, net ( 1,643 ) ( 17,662 ) ( 8,565 )

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

Derivative market value adjustments and derivative settlements, net ( 6,398 ) 16,258 ( 16,701 )

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Cost of services and expenses:

Costs incurred to provide loan servicing 1,889 — —

Loan servicing contract fulfillment and acquisition costs 7,555 1,889 —

Cost to provide education technology services and payments 176,907 172,763 171,183

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Reinsurance losses and underwriting expenses 93,551 55,246 16,781

Impairment expense 29,612 3,138 31,925

Other expenses 211,568 189,503 173,070

Total operating expenses 927,088 882,934 892,431

Impairment expense and provision for beneficial interests 42,629 31,925 15,523

Total expenses 1,174,750 1,112,190 1,018,331

Income before income taxes 526,332 228,584 68,715

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Weighted-average common shares outstanding - basic and diluted

36,341,197 36,642,533 37,416,621

See accompanying notes to consolidated financial statements.

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Net income $ 398,346 175,915 49,330

Other comprehensive income (loss):

Other comprehensive income:

Net changes related to foreign currency translation adjustments $ ( 187 ) 11 ( 10 )

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

Unrealized holding gains (losses) arising during period, net 33,479 18,379 ( 58,946 )

Unrealized holding gains arising during period, net 4,130 33,479 18,379

Reclassification of (gains) losses recognized in net income, net ( 2,109 ) ( 4,534 ) 3,504

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Income tax effect ( 524 ) 1,661 ( 7,134 ) 22,590 ( 5,301 ) 16,784

Net changes related to cash flow hedges:

Fair value adjustments during period, net ( 484 ) — —

Income tax effect 117 ( 367 ) — — — —

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

(Loss) gain on cash flow hedge ( 1,331 ) 622 3,452

Gain (loss) on cash flow hedge 55 ( 1,331 ) 622

Income tax effect ( 13 ) 42 319 ( 1,012 ) ( 149 ) 473

Other comprehensive income (loss) 21,589 17,247 ( 46,670 )

Other comprehensive income 1,149 21,589 17,247

Comprehensive income 399,495 197,504 66,577

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Years ended December 31, 2025, 2024, and 2023

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 earnings (loss) Noncontrolling interests Total equity

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

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Net income (loss) — — — — — — — 89,826 — ( 40,496 ) 49,330

Other comprehensive loss — — — — — — — — ( 46,670 ) — ( 46,670 )

Other comprehensive income — — — — — — — — 17,247 — 17,247

Issuance of noncontrolling interests — — — — — — — — — 101,237 101,237

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Conversion of common stock — 4,484 ( 4,484 ) — — — — — — — —

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

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

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

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

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

Acquisition of remaining 20 % of NextGen, net of tax

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

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Provision for loan losses 67,851 54,607 8,115

Provision for beneficial interests 11,311 39,491 —

Derivative market value adjustments 9,098 ( 10,124 ) 41,773

Proceeds from termination of derivative instruments — — 164,079

Proceeds from (payments to) clearinghouse - initial and variation margin, net 2,374 ( 213,923 ) 148,691

(Payments to) proceeds from clearinghouse - initial and variation margin, net ( 5,910 ) 2,374 ( 213,923 )

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

Loss on sale of loans, net 1,720 1,643 17,662

(Gain) loss on investments, net ( 24,558 ) ( 7,952 ) 122,492

Proceeds from sale of equity securities, net of purchases 137 75 42,841

Deferred income tax (benefit) expense ( 21,621 ) ( 52,331 ) 34,516

Deferred income tax benefit ( 4,307 ) ( 21,621 ) ( 52,331 )

Non-cash compensation expense 13,274 12,045 16,476

Impairment expense and provision for beneficial interests 42,629 29,539 15,523

Impairment expense 29,612 3,138 29,539

Other 7,997 163 326

Changes in operating assets and liabilities:

Decrease (increase) in loan and investment accrued interest receivable 220,938 47,217 ( 38,500 )

Decrease (increase) in accounts receivable 36,106 ( 1,356 ) ( 26,358 )

Decrease (increase) in other assets, net 64,842 3,891 ( 11,783 )

Decrease in the carrying amount of ROU asset, net 3,864 4,881 5,702

(Decrease) increase in accrued interest payable ( 14,536 ) ( 658 ) 31,483

Decrease in loan and investment accrued interest receivable 40,674 220,938 47,217

(Increase) decrease in accounts receivable ( 33,371 ) 36,106 ( 1,356 )

Decrease in other assets 57,703 64,816 3,640

Decrease in the carrying amount of ROU asset 3,747 3,864 4,881

Decrease in accrued interest payable ( 4,942 ) ( 14,536 ) ( 658 )

Increase in other liabilities 51,806 27,356 85,537

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Cash flows from investing activities, net of acquisitions:

Purchases and originations of loans, including purchase of student loan residual interests ( 973,942 ) ( 1,202,557 ) ( 1,460,328 )

Purchases and originations of loans, including cash paid for student loan trusts,

net of cash and restricted cash acquired ( 5,335,216 ) ( 869,744 ) ( 735,003 )

Purchases of loans from a related party ( 686,045 ) ( 104,198 ) ( 467,554 )

Net proceeds from loan repayments, claims, and capitalized interest 5,448,255 3,179,752 2,559,384

Proceeds from sale of loans 240,525 115,657 495,534

Proceeds from sale of loans to a related party 949,093 578,593 57,484

Purchases of available-for-sale securities ( 552,861 ) ( 603,552 ) ( 581,522 )

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Purchases of property and equipment ( 26,238 ) ( 20,903 ) ( 74,052 )

Business acquisitions, net of cash and restricted cash acquired — — ( 34,036 )

Net cash provided by investing activities $ 356,404 2,412,733 1,939,030

AND SUBSIDIARIES (Continued)

Consolidated Statements of Cash Flows

AND SUBSIDIARIES

Consolidated Statements of Cash Flows (Continued)

Years ended December 31, 2025, 2024, and 2023

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Increase in bank deposits, net 483,042 442,532 52,277

Increase (decrease) in due to customers 52,999 77,182 ( 17,670 )

(Decrease) increase in due to customers ( 20,686 ) 52,999 77,182

Dividends paid ( 42,993 ) ( 40,836 ) ( 39,419 )

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Effect of exchange rate changes on cash and restricted cash 275 ( 437 ) 16

Net (decrease) increase in cash, cash equivalents, and restricted cash ( 94,471 ) ( 332,125 ) 163,427

Net increase (decrease) in cash, cash equivalents, and restricted cash 42,526 ( 94,471 ) ( 332,125 )

Cash, cash equivalents, and restricted cash, beginning of period 931,020 1,025,491 1,357,616

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Issuance of noncontrolling interests $ 52,221 5,145 12,848

(a) For 2024, 2023, and 2022 the Company utilized $ 53.8 million, $ 104.6 million, and $ 11.2 million of federal and state tax credits, respectively, related primarily to renewable energy.

Supplemental disclosures of non-cash activities regarding the Company's business acquisitions are contained in note 7.

(a) The Company utilized $ 98.6 million, $ 53.8 million, and $ 104.6 million of federal and state tax credits related primarily to renewable energy during 2025, 2024, and 2023, respectively.

The following table presents a reconciliation of cash, cash equivalents, and restricted cash reported in the consolidated balance sheets to the total of the amounts reported in the consolidated statements of cash flows:

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Description of Business

and its subsidiaries (“Nelnet” or the “Company”) is a diversified hybrid holding company with primary businesses being consumer lending, loan servicing, payments, and technology – with many of these businesses serving customers in the education space.

The largest operating businesses engage in loan servicing and education technology services and payments.

A significant portion of the Company's revenue is net interest income earned on a portfolio of federally insured student loans.

The Company also makes and manages investments to further diversify both within and outside of its historical core education-related businesses including, but not limited to, investments in a fiber communications company (ALLO), early-stage and emerging growth companies (venture capital investments), real estate, reinsurance, and renewable energy (solar).

Substantially all revenue from external customers is earned, and all long-lived assets are located, in the United States.

and its subsidiaries (“Nelnet” or the “Company”) is an operating holding company with primary businesses in consumer lending, loan servicing, payments, and technology-enabled services, many of which are focused on serving customers in the education sector.

The Company conducts these activities both directly and through its wholly owned and majority-owned subsidiaries, and actively manages and operates its businesses on an integrated basis.

Nelnet’s largest operating and technology platforms support loan servicing and education-related technology and payment solutions.

A significant portion of the Company’s revenue is derived from net interest income earned on a portfolio of federally insured student loans, a substantial portion of which is serviced by the Company.

The Company has also broadened its operating business mix both within and beyond its historical education-focused activities.

These businesses include banking and other financial services conducted through the Company’s bank and other subsidiaries, asset management and related customer-facing servicing, real estate development and management, reinsurance operations, renewable energy development, and selected strategic interests in early-stage, emerging growth, and other operating enterprises.

The Company actively manages such businesses and holds interests in them for strategic and operational purposes.

The Company earns substantially all of its revenue from external customers in the United States, and substantially all of its long-lived assets are located in the United States.

The Company was formed as a Nebraska corporation in 1978 to service federal student loans for two local banks.

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To reduce its reliance on interest income from FFELP loans, the Company has expanded its services and products.

This expansion has been accomplished through internal growth and innovation as well as business and certain investment acquisitions.

The Company is also actively expanding its private education and consumer loan portfolios, or investment interests therein, and as part of this strategy launched Nelnet Bank in 2020.

This expansion has been accomplished through internal growth and innovation as well as acquisitions.

The Company is also actively expanding its private education and consumer loan portfolios, or residual interests therein, and as part of this strategy launched Nelnet Bank in 2020.

In addition, the Company has been servicing federally owned student loans for the Department since 2009.

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• Servicing private education and consumer loans

• Providing backup servicing for FFELP, private education, and consumer loans

• Providing backup servicing for private education and consumer loans

• Providing student loan servicing software and other information technology products and services

• Providing outsourced services including contact center, processing, and administrative services

LSS provides for the servicing of the Company's student loan portfolio and the portfolios of third parties.

The loan servicing activities include loan conversion activities, application processing, borrower updates, customer service, payment processing, due diligence procedures, funds management reconciliations, and claim processing.

These activities are performed internally for the Company's portfolio, in addition to generating external fee revenue when performed for third-party clients.

In addition, LSS

AND SUBSIDIARIES

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(Dollars in thousands, except share amounts, unless otherwise noted)

provides backup servicing to third parties, which allows a transfer of the customer’s servicing volume to the Company’s platform and becoming a full servicing customer if their existing servicer cannot perform their duties.

LSS provides for the servicing of the Company's student loan portfolio and the portfolios of third parties.

These activities are performed internally for the Company's portfolio, in addition to generating external fee revenue when performed for third-party clients.

In addition, LSS provides backup servicing to third parties, which allows a transfer of the customer’s servicing volume to the Company’s platform and becoming a full servicing customer if their existing servicer cannot perform their duties.

Nelnet Servicing, LLC (“Nelnet Servicing”), a subsidiary of the Company, is one of the current five private sector entities that have student loan servicing contracts with the Department to service loans that include Federal Direct Loan Program loans originated directly by the Department and FFEL Program loans purchased by the Department.

LSS also provides student loan servicing software, which is used internally and licensed to third-party student loan holders and servicers.

These software systems have been adapted so that they can be offered as hosted servicing software solutions usable by third parties to service various types of student loans, including Federal Direct Loan Program and FFEL Program loans.

This segment also provides business process outsourcing primarily specializing in contact center management.

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Education Technology Services and Payments

The Education Technology Services and Payments reportable operating segment (referred to as Nelnet Business Services (NBS)) provides education and payment technology and services for K-12 schools, higher education institutions, churches, and businesses in the United States and internationally.

The Education Technology Services and Payments reportable operating segment (referred to as Nelnet Business Services (NBS)) provides education and payment technology and services for K-12 schools, higher education institutions, and businesses in the United States and internationally.

NBS provides service and technology under four divisions as described below.

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FACTS offers a comprehensive suite of services and technology in the following categories:

(i) financial management, including tuition payment plans, incidental billing, payment forms, advanced accounting, financial needs assessments (grant and aid), and a donation platform;

(i) financial management, including tuition payment plans, incidental billing, payment forms, advanced accounting, financial aid management (grant and aid), and a donation platform;

(ii) education technology, including a school management platform and application and enrollment services;

3 unchanged sentences

and (ii) integrated commerce, including solutions for in-person, online, and mobile payment experiences on campus.

Nelnet Payment Services provides secure payment processing technology.

Nelnet Payment Services supports and provides payment processing services, including credit card and electronic transfers, to the other divisions of NBS and Nelnet in addition to other industries and software platforms across the United States.

Nelnet Payment Services provides secure payment processing technology and services, including credit card and electronic transfers, to the other divisions of NBS and Nelnet in addition to other industries and software platforms across the United States.

Nelnet International provides its services and technology internationally, primarily in Australia, New Zealand, and the Asia-Pacific region.

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The Company's Asset Generation and Management reportable operating segment includes the acquisition, management, and ownership of the Company's loan assets (excluding loan assets held by Nelnet Bank).

Substantially all loan assets included in this segment are student loans originated under the FFEL Program, including the Stafford Loan Program, the PLUS Loan program, and loans that reflect the consolidation into a single loan of certain previously separate borrower obligations (“consolidation” loans).

AGM also acquires private education, consumer, and other loans, or investment interests therein.

AGM generates a substantial portion of its earnings from the spread, referred to as loan spread, between the yield it receives on its loan portfolio and the associated costs to finance such portfolio.

The loan assets are primarily held in a series of lending subsidiaries and associated securitization trusts designed specifically for this purpose.

In addition to the loan spread earned on

The majority of loan assets included in this segment are student loans originated under the FFEL Program, including the Stafford Loan Program, the PLUS Loan program, and loans that reflect the consolidation into a single loan of certain previously separate borrower obligations (“consolidation” loans).

AGM also acquires private education, consumer, and other loans, or residual interests therein.

AGM generates a substantial portion of its earnings from the spread, referred to as loan spread, between the yield it receives on its

AND SUBSIDIARIES

1 unchanged sentence

(Dollars in thousands, except share amounts, unless otherwise noted)

its portfolio, all costs and activity associated with managing the portfolio, such as servicing of the assets, debt maintenance, and administration costs, are included in this segment.

loan portfolio and the associated costs to finance such portfolio.

The loan assets are primarily held in a series of lending subsidiaries and associated securitization trusts designed specifically for this purpose.

In addition to the loan spread earned on its portfolio, all costs and activity associated with managing the portfolio, such as servicing of the assets, debt maintenance, and administration costs, are included in this segment.

AGM also derives revenue by providing loan administration services to third-party loan portfolio owners.

In addition to ownership of loan assets, AGM has partial ownership in consumer, private education, and federally insured student loan third-party securitizations.

1 unchanged sentence

AGM’s partial ownership percentage in each loan securitization grants AGM the right to receive the corresponding percentage of cash flows generated by the securitization.

Income generated by these investment interests is considered investment interest income and is not a component of the Company’s loan interest income.

Income generated by these residual interests is included in “investment interest income” on the consolidated statements of income and is not a component of the Company’s loan interest income.

Nelnet Bank operates as an internet Utah-chartered industrial bank franchise with a home office in Salt Lake City, Utah.

1 unchanged sentence

NFS Other Operating Segments

NFS’s other operating segments that are not reportable include:

• The operating results of Whitetail Rock Capital Management, LLC (WRCM), the Company's U.S.

NFS’s other operating segments that are not reportable include the operating results of:

• Nelnet Insurance Services, which primarily includes multiple reinsurance treaties on property and casualty policies

• Whitetail Rock Capital Management, LLC (WRCM), the Company's U.S.

Securities and Exchange Commission (SEC)-registered investment advisor subsidiary

• The operating results of Nelnet Insurance Services, which primarily includes multiple reinsurance treaties on property and casualty policies

• The operating results of the Company’s investment activities in real estate

• The operating results of the Company’s investment in debt securities (primarily student loan and other asset-backed securities) and interest expense incurred on debt used to finance such investments

• The Company’s ownership and activities in real estate

• The Company’s ownership and management of its bond portfolio (primarily student loan and other asset-backed securities)

Corporate and Other Activities

1 unchanged sentence

Corporate includes the following items:

• Shared service activities related to internal audit, human resources, accounting, legal, enterprise risk management, information technology, occupancy, and marketing.

• Shared service activities related to human resources, accounting, legal, enterprise risk management, information technology, occupancy, and marketing.

These costs are allocated to each operating segment based on estimated use of such activities and services

• Corporate costs and overhead functions not allocated to operating segments, including executive management, investments in innovation, and other holding company organizational costs

• The operating results of solar tax equity investments made by the Company and administrative and management services provided by the Company on tax equity investments made by third parties

• Corporate costs and overhead functions not allocated to operating segments, including executive management, innovation initiatives, and other holding company organizational costs

• The operating results of the Company’s participation in renewable energy solar developments through tax equity structures and administrative and management services provided by the Company on solar tax equity investments made by third parties

• The operating results of Nelnet Renewable Energy, the Company’s solar engineering, procurement, and construction business.

• The operating results of certain of the Company’s investment activities, including its investment in ALLO Holdings LLC, a holding company for ALLO Communications LLC (collectively referred to as “ALLO”) and early-stage and emerging growth companies (venture capital investments)

The Company sold its ownership interest in Nelnet Renewable Energy during the fourth quarter of 2025.

• The operating results of certain of the Company’s investment activities, including its ownership in ALLO Holdings LLC, a holding company for ALLO Communications LLC (collectively referred to as “ALLO”) and early-stage and emerging growth companies (venture capital)

• Interest income earned on cash balances held at the corporate level and interest expense incurred on unsecured corporate related debt transactions

• Other product and service offerings that are not considered reportable operating segments

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

Summary of Significant Accounting Policies and Practices

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and its consolidated subsidiaries.

In addition, the accounts of all variable interest entities (VIEs) of which the Company has determined that it is the primary beneficiary are

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

included in the consolidated financial statements.

In addition, the accounts of all variable interest entities (VIEs) of which the Company has determined that it is the primary beneficiary are included in the consolidated financial statements.

Amounts for noncontrolling interests reflect the share of membership interest (equity) and net income attributable to the holders of noncontrolling membership interests of non-wholly owned consolidated subsidiaries.

All significant intercompany balances and transactions have been eliminated in consolidation.

Reclassifications

Certain amounts previously reported in the Company’s consolidated statements of income have been reclassified to conform to the current period presentation.

Specifically, impairment expenses and the provision for beneficial interests, which were previously presented on a combined basis, are now reported as separate line items and included as part of “total operating expenses” and “net interest income after provision,” respectively.

Variable Interest Entities

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The Company is not required to consolidate VIEs in which it has determined it is not the primary beneficiary.

VIEs not consolidated by the Company include its equity investment in ALLO, solar tax equity investments, beneficial interest in loan securitizations, and an equity investment in a certain co-investment fund.

As of December 31, 2024, the Company owned 45 % of the economic rights of ALLO and has a disproportionate 43 % of the voting rights related to all operating decisions for ALLO's business.

VIEs not consolidated by the Company include its partial ownership in ALLO, solar development projects, certain third-party loan securitizations, and certain other funds and partnerships.

As of December 31, 2025, the Company owned 27 % of the economic rights of ALLO and had a disproportionate 20 % of the voting rights related to all operating decisions for ALLO's business.

ALLO provides pure fiber optic service to homes and businesses for internet, television, and telephone services.

See note 6 for the Company’s carrying value of its voting interest and non-voting preferred membership investments, which is the Company’s maximum exposure to loss.

Prior to December 21, 2020, the Company consolidated the operating results of ALLO.

In 2020, the Company entered into various agreements with SDC, a third-party global digital infrastructure investor, and ALLO, for various transactions contemplated by the parties in connection with a recapitalization for ALLO.

The recapitalization transaction ultimately resulted in the deconsolidation of ALLO from the Company’s consolidated financial statements.

As part of the ALLO recapitalization transaction, the Company and SDC entered into an agreement in which the Company has a contingent obligation to pay SDC an amount up to $ 35.0 million in the event the Company disposes of its voting membership interests of ALLO that it holds, and realizes from such disposition certain targeted return levels.

The estimated fair value of the contingent payment was $ 8.3 million and $ 9.8 million as of December 31, 2024 and 2023, respectively, which is included in “other liabilities” on the consolidated balance sheets.

Solar Tax Equity Investments

The Company makes solar tax equity investments in entities that promote renewable energy sources.

The Company’s investments in these entities generate a return primarily through the realization of federal income tax credits, operating cash flows, and other tax benefits, such as tax deductions from operating losses of the investments, over specified time periods.

These investments are included in "other investments and notes receivable, net" on the consolidated balance sheets.

As of December 31, 2024, the Company has invested a total of $ 314.8 million and its third-party investors have invested $ 271.4

See note 7 for the Company’s carrying value of its voting and preferred membership interests in ALLO, which is the Company’s maximum exposure to loss.

Renewable Energy Solar Developments

The Company makes solar tax equity contributions in entities that promote renewable energy sources.

The Company’s contributions in these entities generate a return primarily through the realization of federal income tax credits, operating cash flows, and other tax benefits, such as tax deductions from operating losses of these partnerships, over specified time periods.

The ownership of these developments are included in "other investments and notes receivable, net" on the consolidated balance

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(Dollars in thousands, except share amounts, unless otherwise noted)

million in tax equity investments that remain outstanding in renewable energy solar partnerships that support the development and operations of solar projects throughout the country.

The carrying value of these investments is reduced by tax credits earned when the solar project is placed in service.

As of December 31, 2025, the Company has contributed a total of $ 355.6 million and its third-party partners have invested $ 416.0 million in tax equity that remain outstanding in renewable energy solar partnerships that support the development and operations of solar, fuel cell, and battery storage projects throughout the country.

The carrying value of these assets is reduced by tax credits earned when the solar project is placed in service.

The Company’s unfunded capital and other commitments related to these unconsolidated VIEs are accrued when the solar project is placed in service and are included in “other liabilities” on the consolidated balance sheets.

The Company’s maximum exposure to loss from these unconsolidated VIEs include the investment, unfunded capital commitments, and previously recorded tax credits which remain subject to recapture by taxing authorities based on compliance features required to be met at the project level.

The tax credit recapture period ratably decreases over five years from when the project is placed in service.

While the Company believes potential losses from these investments are remote, the maximum exposure was determined by assuming a scenario where the energy-producing projects completely fail and do not meet certain government compliance requirements resulting in recapture of the related tax credits.

The following table presents a summary of solar investment VIEs that the Company has not consolidated, excluding all third-party investor impacts:

The Company’s maximum exposure to loss from these unconsolidated VIEs include the equity contributed, unfunded capital commitments, and previously recorded tax credits which remain subject to recapture by taxing authorities based on compliance features required to be met at the project level.

The tax credit recapture period ratably decreases over 5 years from when the project is placed in service.

While the Company believes potential losses from these partnerships are remote, the maximum exposure was determined by assuming a scenario where the energy-producing projects completely fail and do not meet certain government compliance requirements resulting in recapture of the related tax credits.

The following table presents a summary of solar development project VIEs that the Company has not consolidated, excluding all third-party partner impacts:

As of December 31,

Investment carrying amount $ ( 87,853 ) ( 77,402 )

Solar development project carrying amount $ ( 109,592 ) ( 87,853 )

Tax credits subject to recapture 220,069 173,822

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Beneficial Interest in Loan Securitizations

The Company has partial ownership in consumer, private education, and federally insured student loan third-party securitizations that are classified as “beneficial interest in loan securitizations” and included in “other investments and notes receivable, net” on the Company’s consolidated balance sheets.

As described above, AGM has partial ownership in consumer, private education, and federally insured student loan third-party securitizations that are classified as “beneficial interest in loan securitizations” and included in “other investments and notes receivable, net” on the Company’s consolidated balance sheets.

These residual interests were acquired by AGM or have been received in consideration of AGM selling portfolios of loans to unrelated third parties who securitized such loans.

For certain transactions, the Company is the sponsor and as sponsor, is required to provide a certain level of risk retention.

To satisfy this requirement, the Company has purchased bonds issued in the securitizations, which are classified as available-for-sale investments.

See note 6 for the Company’s carrying value of its beneficial interest in loan securitization investments and the carrying value and fair value of bonds held as risk retention.

To satisfy this requirement, the Company has purchased bonds issued in the securitizations, which are classified as available-for-sale investments, with a carrying value and fair value of $ 7.2 million at December 31, 2025.

See note 7 for the Company’s carrying value of its beneficial interest in loan securitization investments.

The carrying value of its beneficial interest in loan securitization investments and bonds held as risk retention is the Company’s maximum exposure to loss.

Fund Investment

During 2024, the Company acquired an equity interest in a certain co-investment fund, which has a carrying value of $ 48.5 million at December 31, 2024.

Such investment is classified within “venture capital, funds, and other” in note 6, and is included in “other investments and notes receivable, net” on the Company’s consolidated balance sheets.

The Company’s maximum exposure to loss related to this investment is its current carrying value plus the Company’s unfunded commitment to the fund of $ 1.5 million.

Reclassification and Immaterial Error Corrections

Certain amounts previously reported have been reclassified to conform to the current period presentation.

These reclassifications include:

• Reclassifying “investments at fair value” and “other investments and notes receivable, net” that were previously included in “investments and notes receivable” and “restricted investments” on the Company’s consolidated balance sheet;

• Reclassifying “reinsurance premiums earned” and “reinsurance losses and underwriting expenses” as new line items on the Company’s consolidated statements of income, which were previously included in “other, net” in “other income (expense)” and “other expenses” in “operating expenses,” respectively;

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

• Reclassifying the line item “impairment expense and provision for beneficial interests” in “other income (expense)” and presenting such expense as part of “total expenses” on the Company’s consolidated statements of income.

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 December 31, 2024 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 $ 57.3 million and $ 11.5 million for the years ended December 31, 2023 and 2022, respectively.

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 $ 5.5 million and $ 7.6 million for the years ended December 31, 2023 and 2022, respectively, partially offset by an increase in "net loss attributable to noncontrolling interests" of $ 3.4 million and $ 7.0 million for the years ended December 31, 2023 and 2022, respectively.

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

was a reduction of $ 1.7 million and $ 0.4 million for the years ended December 31, 2023 and 2022, respectively.

Consolidated "total equity" on the consolidated balance sheet was reduced $ 21.8 million as of December 31, 2023, $ 16.7 million as of December 31, 2022, and $ 9.2 million as of December 31, 2021, with the 2021 impact reflecting the cumulative impact of this correction through such date.

Funds and Partnerships

The Company has an equity interest in certain funds and partnerships, with an aggregate carrying value of $ 131.9 million at December 31, 2025.

The ownership of these items are classified within “venture capital, funds, and other” in note 7, and are included in “other investments and notes receivable, net” on the Company’s consolidated balance sheets.

The Company’s maximum exposure to loss related to the ownership of these entities are its current carrying value plus the Company’s unfunded commitment to certain funds of $ 8.6 million.

Use of Estimates

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Loans Receivable

Loans consist of federally insured student, private education, consumer, and other loans.

Loans consist of federally insured student, private education, consumer, and other loans, including financing receivables.

If the Company has the ability and intent to hold loans for the foreseeable future, such loans are held for investment and carried at amortized cost.

Amortized cost includes the unamortized premium or discount and capitalized origination costs and fees, all of which are amortized to interest income.

Amortized cost includes the unamortized premium or discount and capitalized origination costs and fees, all of

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

which are amortized to interest income.

Loans which are held for investment also have an allowance for loan loss as needed.

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FFELP loans do not require repayment while the borrower is in-school, and during the grace period immediately upon leaving school.

Under the Higher Education Act, a borrower may also be granted a deferment or forbearance for a period of time based on need, during which time the borrower is

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

not considered to be in repayment.

Under the Higher Education Act, a borrower may also be granted a deferment or forbearance for a period of time based on need, during which time the borrower is not considered to be in repayment.

Interest continues to accrue on loans in the in-school, deferment, and forbearance program periods.

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Such student loans are subject to “cure” procedures and reinstatement of the guarantee under certain circumstances.

Loans also include private education, consumer, and other loans.

Loans also include private education, consumer, and other loans, including financing receivables.

Private education loans are loans to students or their families that are non-federal loans and loans not insured or guaranteed under the FFEL Program.

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Minimum payments on such loans are due every 60 days.

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

There are typically four installment payments made over approximately 60 days.

The Company purchases Pay Later receivables at a discount via a forward flow agreement from an unrelated third party and accretes the discount into interest income over the estimated life of the receivable.

For loan modifications, the Company evaluates whether a loan modification represents a new loan or a continuation of an existing loan.

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The amortized cost of the Company’s private education and consumer loans in which the borrower is experiencing financial difficulty and the financial effect of such loan modifications is not material.

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

Allowance for Loan Losses

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The Company evaluates such pooling decisions each quarter and makes adjustments as risk characteristics change.

Management has determined that the federally insured, private education, and consumer and other loan portfolios each meet the definition of a

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

portfolio segment, which is defined as the level at which an entity develops and documents a systematic method for determining its allowance for loan losses.

Management has determined that the federally insured, private education, and consumer and other financing receivables portfolios each meet the definition of a portfolio segment, which is defined as the level at which an entity develops and documents a systematic method for determining its allowance for loan losses.

Accordingly, the portfolio segment disclosures are presented on this basis in note 4 for each of these portfolios.

The Company does not disaggregate its portfolio segment loan portfolios into classes of financing receivables.

The Company utilizes an undiscounted cash flow methodology in determining its lifetime expected credit losses on its federally insured and private education loan portfolios and a remaining life methodology for its consumer and other loan portfolios.

For the undiscounted cash flow models, the expected credit losses are the product of multiplying the Company’s estimates of probability of default and loss given default and the exposure of default over the expected life of the loans.

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Federally insured student loans disbursed prior to October 1, 1993 are fully insured.

Private education and consumer loans are unsecured, with neither a government nor a private insurance guarantee.

Private education, consumer, and other loans, including financing receivables, are unsecured, with neither a government nor a private insurance guarantee.

Accordingly, the Company bears the full risk of loss on these loans if the borrower and co-borrower, if applicable, default.

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Collections, if any, are reflected as a recovery through the allowance for loan losses.

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

Purchased Loans Receivable with Credit Deterioration (PCD)

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Charge-offs of accrued interest receivable are recognized by reversing interest income.

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

Cash and Cash Equivalents

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The Company classifies its debt securities as either available-for-sale or held-to-maturity.

Securities classified as available-for-sale are carried at fair value, with the changes in fair value, net of taxes, carried as a separate component of shareholders’ equity.

Securities classified as available-for-sale are carried at fair value, with the changes in fair value, net of taxes, carried as a separate component of accumulated other comprehensive earnings in the consolidated statements of shareholders’ equity.

The amortized cost of debt securities in this classification is adjusted for amortization of premiums and accretion of discounts, which are amortized using the effective interest rate method.

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Equity investments with readily determinable fair values are measured at fair value, with changes in the fair value recognized through net income.

For equity investments without readily determinable fair values, the Company uses the measurement alternative of cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer.

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

transactions for the identical or a similar investment of the same issuer.

The Company uses qualitative factors to identify impairment on its measurement alternative investments.

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These factors may indicate that a decrease in value of the investment has occurred that is other-than-temporary and shall be recognized.

The Company accounts for its qualifying solar tax equity investments under the proportional amortization method (PAM).

The Company evaluates each solar tax equity investment to determine if it meets the qualifications to apply the PAM.

For qualifying investments, the Company uses the flow-through method of accounting to account for the related tax credit.

The flow-through method requires an investor to amortize the cost of its investment through income tax expense (or benefit) as an offset to the nonrefundable income tax credits and other income tax benefits, such as tax deductions from operating losses of the investment.

The Company accounts for its non-qualifying PAM solar investments, voting equity investment in ALLO, and certain real estate investments under the Hypothetical Liquidation at Book Value (HLBV) method of accounting.

The Company accounts for its qualifying equity contributions to solar development partnerships under the proportional amortization method (PAM).

The Company evaluates each solar tax equity contribution to determine if it meets the qualifications to apply the PAM.

For qualifying contributions, the Company uses the flow-through method of accounting to account for the related tax credit.

The flow-through method requires a partner to amortize its contributions through income tax expense (or benefit) as an offset to the nonrefundable income tax credits and other income tax benefits, such as tax deductions from operating losses of the partnership.

The Company accounts for its non-qualifying PAM solar development partnerships and certain other entities in which it has partial ownership (including, but not limited to, ALLO and real estate partnerships) under the Hypothetical Liquidation at Book Value (HLBV) method of accounting.

The HLBV method of accounting is used by the Company for equity method investments when the liquidation rights and priorities as defined by an equity investment agreement differ from what is reflected by the underlying percentage ownership or voting interests.

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The difference between the calculated liquidation distribution amounts at the beginning and the end of the reporting period, after adjusting for capital contributions and distributions, is the amount the Company recognizes for its share of the earnings or losses from the equity investment for the period.

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

Notes Receivable

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This cash must be used to make payments related to trust obligations.

Amounts on deposit in these accounts are primarily the result of timing differences between when principal and interest is collected on the student loans held as trust assets and when principal and interest is paid on the trust's asset-backed debt securities.

Amounts on deposit in these accounts are primarily the result of timing differences between when principal and interest is collected on the loans held as trust assets and when principal and interest is paid on the trust's asset-backed debt securities.

Restricted cash also includes collateral deposits with derivative counterparties and third-party clearinghouses.

In accordance with local insurance regulations, Nelnet Insurance Service’s consolidated captive insurance companies are required to hold collateral in third-party trusts related to its reinsurance treaties on property and casualty policies.

The cash and investments in such trusts are classified by the Company as restricted.

Restricted investments include student loan asset-backed securities classified as available-for-sale.

In addition, Nelnet Insurance Services retains cash it collects on behalf of its third parties to which it has retroceded a portion of its exposure.

Restricted investments include student loan and other asset-backed securities classified as available-for-sale.

In addition, Nelnet Insurance Services retains cash it collects on behalf of its third party to which it has retroceded a portion of its exposure.

Restricted Cash - Due to Customers

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Cash collected for customers and the related liability are included in the consolidated balance sheets.

A portion of cash collected for customers in the Company's Education Technology Services and Payments operating segment are held at Nelnet Bank, in which Nelnet Bank can use these cash deposits for general operating purposes and is no longer considered restricted.

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

considered restricted.

As of December 31, 2025 and 2024, $ 49.0 million and $ 22.5 million, respectively, of cash collected for customers is held at Nelnet Bank.

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However, components are aggregated as a single reporting unit if they have similar economic characteristics.

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

The Company tests goodwill for impairment in accordance with applicable accounting guidance.

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As such, except for the one reporting unit in 2023, no further impairment analysis was required.

For the one reporting unit identified in 2023 that the Company concluded it was more likely than not that the fair value was less than its carrying amount, the Company performed a quantitative impairment test and concluded there was an impairment.

For the one reporting unit in 2023 that the Company concluded it was more likely than not that the fair value was less than its carrying amount, the Company performed a quantitative impairment test and concluded there was an impairment.

See note 11 for additional information.

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The Company evaluates the estimated remaining useful lives of purchased intangible assets and whether events or changes in circumstances warrant a revision to the remaining periods of amortization.

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

Property and Equipment

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Renewal options that the Company is reasonably certain to exercise are included in the lease term.

Certain leases include escalating rental payments or rental payments adjusted

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

periodically for inflation.

Certain leases include escalating rental payments or rental payments adjusted periodically for inflation.

None of the lease agreements include any residual value guarantees, a transfer of title, or a purchase option that is reasonably certain to be exercised.

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The values presented may not represent future fair values and may not be realizable.

Additionally, there may be inherent weaknesses in any calculation technique, and changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the estimates of current or future values.

Additionally, there may be inherent weaknesses in any calculation

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

technique, and changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the estimates of current or future values.

The Company categorizes its fair value estimates based on a hierarchical framework associated with three levels of price transparency utilized in measuring assets and liabilities at fair value.

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In order to achieve that core principle, the Company applies the following five-step approach:

(1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied.

(1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied.

The Company’s contracts with customers often include promises to transfer multiple products and services to a customer.

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Capitalized costs of obtaining and/or fulfilling a contract are amortized over the estimated life of the customer.

Additional information related to revenue earned in its Asset Generation and Management, Nelnet Bank, and Nelnet Insurance Services operating segments is provided below.

See note 17 for additional information related to the Company's fee-based operating segments.

Additional information related to revenue earned in its Asset Generation and Management, Nelnet Bank, and Nelnet Insurance Services operating segments is provided below.

Loan interest income - The Company recognizes loan interest income as earned, net of amortization of loan premiums and deferred origination costs and the accretion of loan discounts and lender fees.

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Borrower repayment of FFELP loans normally begins within six months after completion of the borrower's course of study, leaving school, or ceasing to carry at least one-half the normal full-time academic load, as determined by the educational institution.

Borrower repayment of PLUS and consolidation loans normally begins within 60 days from the date of loan disbursement.

Borrower repayment of PLUS

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Notes to Consolidated Financial Statements

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and consolidation loans normally begins within 60 days from the date of loan disbursement.

Borrower repayment of private education loans typically begins six months following the borrower's graduation from a qualified institution, and the interest is either paid by the borrower or capitalized annually or at repayment.

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During the second quarter of 2024, the Company changed its estimate of the constant prepayment rate on its consolidation loans from 5 % to 6 %, which resulted in a $ 0.8 million increase to the Company’s net loan discount balance and a corresponding decrease to interest income.

During the fourth quarter of 2022, the Company changed its estimate of the constant prepayment rate on its Stafford loans from 5 % to 6 % and on its consolidation loans from 4 % to 5 %, which resulted in a $ 8.4 million decrease to the Company’s net loan discount balance and a corresponding increase to interest income.

The Company also pays the Department an annual 105 basis point rebate fee on Consolidation loans.

These rebate fees are netted against loan interest income.

Reinsurance premiums earned and related expenses - The Company earns reinsurance premiums on prospective property and casualty reinsurance contracts over the loss exposure or coverage period in proportion to the level of protection provided.

Reinsurance premiums are recognized as income, net of amounts ceded to reinsurers, over the terms of the related contracts and

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

polices, which is generally pro rata over a policy period of 12 months.

Reinsurance premiums earned and related expenses - The Company earns reinsurance premiums primarily on prospective property and casualty reinsurance contracts over the loss exposure or coverage period in proportion to the level of protection provided.

Reinsurance premiums are recognized as income, net of amounts ceded to reinsurers, over the terms of the related contracts and polices, which is generally pro rata over a policy period of 12 months.

Unearned premiums represent the portion of premiums written related to the unexpired terms of contracts and policies in force.

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Deposits are interest-bearing deposits and primarily consist of brokered certificates of deposit (CDs), retail and other savings deposits and CDs, and intercompany deposits.

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

Union Bank and Trust Company (“Union Bank”), a related party, is the program manager for the Educational 529 College Savings plans and trustee for the STFIT.

CDs are accounts that have a stipulated maturity and interest rate.

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Generally, early withdrawal of brokered CDs is prohibited (except in the case of death or legal incapacity).

Union Bank and Trust Company (“Union Bank”), a related party, is the program manager for the Educational 529 College Savings plans and trustee for the STFIT.

Nelnet Bank has intercompany deposits from Nelnet, Inc.

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

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Notes to Consolidated Financial Statements

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For bonds and notes payable, interest expense is based upon contractual interest rates, adjusted for the amortization of debt issuance costs and the accretion of discounts.

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As such, variation margin payments are considered in determining the fair value of the centrally cleared derivative portfolio (“settled-to-market”).

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Notes to Consolidated Financial Statements

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derivatives to a balance of zero on a daily basis, and records the underlying daily changes in the market value of such derivative contracts that result in such receipts or payments on its income statement as realized derivative market value adjustments in “derivative market value adjustments and derivative settlements, net” on the consolidated statements of income.

The Company records settled-to-market derivative contracts on its balance sheet with a fair value of zero due to the payment or receipt of variation margin between the Company and the CME settling the outstanding mark-to-market exposure on such derivatives to a balance of zero on a daily basis, and records the underlying daily changes in the market value of such derivative contracts that result in such receipts or payments on its income statement as realized derivative market value adjustments in “derivative market value adjustments and derivative settlements, net” on the consolidated statements of income.

The Company records derivative instruments that are not required to be cleared at a clearinghouse (non-centrally cleared derivatives) in the consolidated balance sheets on a gross basis as either an asset or liability measured at its fair value.

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In addition, the Company does not offset fair value amounts recognized for derivative instruments with respect to the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable).

The Company determines the fair value for its non-centrally cleared derivative instruments using either (i) pricing models that consider current market conditions and the contractual terms of the derivative instrument;

or (ii) counterparty valuations.

The factors that impact the fair value of the Company’s derivatives include interest rates, time value, forward interest rate curve, and volatility factors.

The Company determines the fair value for its non-centrally cleared derivative instruments using either pricing models that consider current market conditions and the contractual terms of the derivative instrument;

or counterparty valuations.

The factors that impact the fair value of the Company’s derivatives include interest rates, time value, the forward interest rate curve, and volatility assumptions.

Management has structured all of the Company's derivative transactions with the intent that each is economically effective;

however, the Company's derivative instruments do not qualify for hedge accounting in the consolidated financial statements.

however, the majority of the Company's derivative instruments do not qualify for hedge accounting in the consolidated financial statements.

As a result, the change in market value of derivative instruments is reported in current period earnings.

1 unchanged sentence

The changes in fair value of derivative instruments, as well as the settlement payments made on such derivatives, are included in “derivative market value adjustments and derivative settlements, net” on the consolidated statements of income.

Certain derivative instruments have been designated as cash flow hedges.

These hedges are used to manage exposure to variability in forecasted cash flows related to interest payments on variable-rate third-party deposits.

For qualifying cash flow hedges, changes in the fair value are recognized in other comprehensive income in the consolidated financial statements and reclassified into earnings in the same period during which the hedged forecasted transaction affects earnings, which are included in “interest expense on bonds and notes payable and bank deposits”.

The Company formally documents the hedging relationships, including the risk management objective and strategy for undertaking the hedge, the hedged item, the hedging instrument, and the nature of the risk being hedge.

This process includes linking all derivatives that are designated as cash flow hedges to specific forecasted transactions.

The Company formally assesses, both at inception and on an ongoing quarterly basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting cash flows of hedged items.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

The Company discontinues hedge accounting prospectively if it is determined that the derivative is no longer effective in offsetting changes in cash flows of the hedged item;

the derivative expires or is sold, terminated, or exercised;

it is unlikely that a forecasted transaction will occur;

or management determines that designation of the derivative as a hedging instrument is no longer appropriate.

Income taxes are accounted for under the asset and liability method.

5 unchanged sentences

Income tax expense includes deferred tax expense, which represents a portion of the net change in the deferred tax asset or liability balance during the year, plus any change made in the valuation allowance, and current tax expense, which represents the amount of tax currently payable to or receivable from a tax authority plus amounts for expected tax deficiencies.

During the ordinary course of business, there are many transactions and calculations for which the ultimate tax determination is uncertain.

As required by the ASC Topic 740, Income Taxes , the Company recognizes in the consolidated financial statements only those tax positions determined to be more likely than not of being sustained upon examination, based on the technical merits of the positions.

It further requires that a change in judgment related to the expected ultimate resolution of uncertain tax positions be recognized in earnings in the period of such change.

For unrecognized tax benefits that are expected to be settled using available tax credit carryforwards, the amounts are presented on the balance sheet as a reduction of deferred tax assets.

Compensation Expense for Stock Based Awards

10 unchanged sentences

In conjunction with these restructuring plans, involuntary benefit arrangements, and certain other costs that are incremental and incurred as a direct result of the restructuring plans, are recognized as restructuring charges.

See note 11 for additional information.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

Translation of Foreign Currencies

5 unchanged sentences

The cumulative translation adjustments associated with the net assets of foreign subsidiaries are recorded in accumulated other comprehensive earnings in the consolidated statements of shareholders’ equity.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

Partial Redemption of ALLO Investment

Nelnet had both voting and preferred membership interest ownership in 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 members entered into a Membership Unit Redemption Agreement pursuant to which ALLO agreed to redeem certain of its membership interests from certain members of ALLO, including Nelnet (the “Transaction”).

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

In addition, ALLO redeemed more than 50 % of Nelnet’s voting membership interest in ALLO.

Upon closing, Nelnet received cash proceeds of $ 410.9 million from ALLO related to these redemptions and recognized a pre-tax gain of $ 175.0 million, attributable to the redemption of the voting membership interest.

The gain 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 maintains a significant voting equity interest in ALLO.

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

The Company continues to account for its remaining 27 % voting membership interest in ALLO under the HLBV method of accounting, with the carrying value of such interest remaining at $ 0 .

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

Loans and Accrued Interest Receivable and Allowance for Loan Losses

7 unchanged sentences

Private education loans 139,209 221,744

Consumer and other loans (a) 345,560 85,935

Consumer loans and other financing receivables (a) 1,122,717 345,560

Non-Nelnet Bank loans 8,699,169 8,955,868

Federally insured loans:

Stafford and other 23,960 —

Consolidation 148,360 —

Total 172,320 —

Private education loans 518,634 482,445

Consumer and other loans (a) 162,152 72,352

Consumer and other loans 266,608 162,152

Nelnet Bank loans 957,562 644,597

5 unchanged sentences

Private education loans ( 6,894 ) ( 11,130 )

Consumer and other loans ( 38,468 ) ( 11,742 )

Consumer loans and other financing receivables ( 57,360 ) ( 38,468 )

Non-Nelnet Bank allowance for loan losses ( 106,334 ) ( 98,689 )

Federally insured loans ( 676 ) —

Private education loans ( 12,932 ) ( 10,086 )

2 unchanged sentences

$ 10,006,695 9,992,744

(a) During 2024, Nelnet Bank sold a $ 65.1 million consumer loan portfolio to the Company’s AGM (non-Nelnet Bank) operating segment.

(a) Included in "consumer loans and other financing receivables" in the above table are Pay Later receivables that the Company began to purchase in the third quarter of 2025.

As of December 31, 2025, the balance of Pay Later receivables was $ 744.2 million.

AND SUBSIDIARIES

6 unchanged sentences

Private education loans 4.95 % 5.02 %

Consumer and other loans (b) 11.13 % 13.66 %

Consumer loans and other financing receivables (b) 5.11 % 11.13 %

Federally insured loans (a) 0.39 % —

Private education loans 2.49 % 2.09 %

Consumer and other loans (b) 3.77 % 7.40 %

(a) As of December 31, 2024 and 2023, the allowance for loan losses as a percent of the risk sharing component of federally insured student loans not covered by the federal guaranty was 20.6 % and 21.8 %, respectively.

(b) Decrease as of December 31, 2024 compared with 2023 was due to the change in the mix of loans outstanding at the end of each period reported.

During 2024, 2023, and 2022, the Company sold $ 726.6 million, $ 728.1 million, and $ 167.0 million of loans, respectively, and recognized net losses of $ 1.6 million, $ 17.7 million, and $ 8.6 million, respectively.

Consumer and other loans 4.55 % 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 19.3 % and 20.6 % as of December 31, 2025 and December 31, 2024, respectively, and for Nelnet Bank was 17.3 % as of December 31, 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 2025, 2024, and 2023, the Company sold $ 203.7 million, $ 148.0 million, and $ 670.7 million of consumer loans, respectively, and recognized net losses from such transactions of $ 2.7 million, $ 1.6 million, and $ 17.7 million, respectively.

Consumer loans sold by the Company during these periods were to non-affiliated third parties who securitized such loans.

As partial consideration received for the majority of such loan portfolio sales, the Company received residual interest in the third parties’ loan securitizations that are included in "other investments and notes receivable, net" on the Company's consolidated balance sheets.

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

AND SUBSIDIARIES

3 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 Loan sales Balance at end of period

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

Year ended December 31, 2025

2 unchanged sentences

Private education loans 11,130 ( 2,761 ) ( 2,397 ) 922 — — 6,894

Consumer and other loans 11,742 29,000 ( 11,033 ) 1,349 — 7,410 38,468

Consumer loans and other financing receivables 38,468 45,030 ( 27,708 ) 1,570 — — 57,360

Federally insured loans — 482 ( 68 ) — — 262 676

Private education loans 10,086 8,696 ( 8,015 ) 1,105 1,060 — 12,932

5 unchanged sentences

Private education loans 15,750 ( 392 ) ( 5,045 ) 817 — — 11,130

Consumer and other loans 30,263 ( 7,528 ) ( 12,467 ) 1,474 — — 11,742

Federally insured loans 170 ( 14 ) ( 12 ) — — ( 144 ) —

Consumer loans and other financing receivables 11,742 29,000 ( 11,033 ) 1,349 — 7,410 38,468

Private education loans 3,347 7,830 ( 3,084 ) 762 1,231 — 10,086

5 unchanged sentences

Private education loans 15,411 2,865 ( 3,306 ) 780 — — 15,750

Consumer and other loans 6,481 26,915 ( 3,725 ) 592 — — 30,263

Consumer loans and other financing receivables 30,263 ( 7,528 ) ( 12,467 ) 1,474 — — 11,742

Federally insured loans 170 ( 14 ) ( 12 ) — — ( 144 ) —

Private education loans 2,390 2,171 ( 1,214 ) — — — 3,347

Consumer and other loans — 6,245 ( 1,775 ) 881 — — 5,351

$ 131,827 8,042 ( 38,367 ) 3,135 6 — 104,643

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.

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.

AND SUBSIDIARIES

1 unchanged sentence

(Dollars in thousands, except share amounts, unless otherwise noted)

(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 loan sales described under "Loan Sales" above.

Provision for current period Loan sale reduction to provision Provision

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 - loan sales Provision

(negative provision) for loan losses

1 unchanged sentence

Non-Nelnet Bank

Consumer and other loans $ 42,529 ( 13,529 ) 29,000

Consumer loans and other financing receivables $ 74,016 ( 28,986 ) 45,030

Year ended December 31, 2024

Non-Nelnet Bank

Consumer and other loans $ 49,807 ( 57,335 ) ( 7,528 )

Consumer loans and other financing receivables $ 42,529 ( 13,529 ) 29,000

Year ended December 31, 2023

Non-Nelnet Bank

Consumer and other loans $ 38,383 ( 11,468 ) 26,915

Consumer loans and other financing receivables $ 49,807 ( 57,335 ) ( 7,528 )

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

4 unchanged sentences

Private education loans 0.87 % 1.70 % 0.99 %

Consumer and other loans 7.58 % 5.67 % 2.05 %

Consumer loans and other financing receivables (a) 4.61 % 7.58 % 5.67 %

Federally insured loans 0.06 % — 0.02 %

Private education loans 1.35 % 0.60 % 0.34 %

Consumer and other loans 6.69 % 2.64 % —

During the year ended December 31, 2022, the Company recorded a provision for loan losses due to (i) management's estimate of declining economic conditions as of December 31, 2022 in comparison to management's estimate of economic conditions used to determine the allowance for loan losses as of December 31, 2021;

and (ii) the establishment of an initial allowance for loans originated and acquired during the period.

During the years ended December 31, 2023 and 2024, the Company recorded a provision for loan losses primarily due to the establishment of an initial allowance for consumer and other loans originated and acquired during the period.

During 2024, additional provision was also recorded on a pool of consumer loans at both Nelnet Bank and AGM (Non-Nelnet Bank) in which loss expectations increased during the period.

During 2022, 2023 and 2024, provision for loan losses was offset by the amortization of the federally insured loan portfolio;

and during 2022 and 2023 by an increase in expected prepayments as a result of continued initiatives offered and proposed by the Department for FFELP borrowers to consolidate their loans into Federal Direct Loan Program loans with the Department.

Consumer and other loans (b) 1.41 % 6.69 % 2.64 %

(a) In the third quarter of 2025, the Company began to purchase Pay Later receivables that have lower charge-off rates.

(b) Decrease in net charge-offs as a percentage of average loans in 2025 compared with 2024 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.

Unfunded Loan Commitments

3 unchanged sentences

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

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

Year ended December 31,

3 unchanged sentences

Provision for loan losses reported in consolidated statements of income $ 67,851 54,607 8,115

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

Key Credit Quality Indicators

3 unchanged sentences

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:

36 unchanged sentences

2025 2024 2023

Consumer and other loans - Non-Nelnet Bank:

Loans in deferment $ 150 0.0 % $ 146 0.2 % $ 109 0.0 %

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

Loans in forbearance (b) $ 1,698 0.2 % $ 150 0.0 % $ 146 0.2 %

Loans in repayment status:

4 unchanged sentences

Total loans in repayment 1,121,019 99.8 100.0 % 345,410 100.0 100.0 % 85,789 99.8 100.0 %

Total consumer and other loans 345,560 100.0 % 85,935 100.0 % 350,915 100.0 %

Total consumer loans and other financing receivables 1,122,717 100.0 % 345,560 100.0 % 85,935 100.0 %

Accrued interest receivable 1,497 1,868 861

1 unchanged sentence

Allowance for loan losses ( 57,360 ) ( 38,468 ) ( 11,742 )

Total consumer and other loans and accrued interest receivable, net of allowance for loan losses $ 298,247 $ 72,580 $ 323,722

Total consumer loans and other financing receivables and accrued interest receivable, net of allowance for loan losses $ 1,049,009 $ 298,247 $ 72,580

Federally insured loans - Nelnet Bank (e):

Loans in-school/grace/deferment (a) $ 6,162 3.6 %

Loans in forbearance (b) 8,787 5.1

Loans in repayment status:

Loans current 141,357 89.9 %

Loans delinquent 30-59 days (c) 5,686 3.6

Loans delinquent 60-89 days (c) 2,703 1.7

Loans delinquent 90-119 days (c) 980 0.6

Loans delinquent 120-270 days (c) 4,844 3.1

Loans delinquent 271 days or greater (c)(d) 1,801 1.1

Total loans in repayment 157,371 91.3 100.0 %

Total federally insured loans 172,320 100.0 %

Accrued interest receivable 10,939

Loan premium 910

Allowance for loan losses ( 676 )

Total federally insured loans and accrued interest receivable, net of allowance for loan losses $ 183,493

Private education loans - Nelnet Bank (e):

12 unchanged sentences

Total private education loans and accrued interest receivable, net of allowance for loan losses $ 506,615 $ 471,881 $ 364,804

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

As of December 31,

2025 2024 2023

Consumer and other loans - Nelnet Bank (e):

17 unchanged sentences

(e) 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.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

An additional key credit quality indicator for Nelnet Bank private education and consumer loans is FICO scores at the time of origination or purchase.

The following tables highlight the principal balance of Nelnet Bank's portfolios, by year of origination, stratified by FICO score at the time of origination.

The following tables highlight the gross principal balance of Nelnet Bank's portfolios, by year of origination, stratified by FICO score at the time of origination or purchase:

Nelnet Bank Private Education Loans

Loan balance as of December 31, 2025

2024 2023 2022 2021 2020 Prior years Total

2025 2024 2023 2022 2021 Prior years Total Percent of total

FICO at origination or purchase:

6 unchanged sentences

$ 66,515 35,880 38,633 145,733 82,537 149,336 518,634 100.0 %

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

Loan balance as of December 31, 2024

2023 2022 2021 2020 Total

2024 2023 2022 2021 2020 Prior years Total Percent of total

FICO at origination or purchase:

8 unchanged sentences

Loan balance as of December 31, 2025

2024 2023 2022 2021 2020 Prior years Total

2025 2024 2023 2022 2021 Prior years Total Percent of total

FICO at origination:

5 unchanged sentences

Loan balance as of December 31, 2024

2023 2022 2021 Total

2024 2023 2022 2021 2020 Prior years Total Percent of total

FICO at origination:

6 unchanged sentences

Management proactively assesses the risk and size of this loan category and, when necessary, takes actions to mitigate the credit risk.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

Nonaccrual Status

1 unchanged sentence

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 December 31, 2025, 2024, and 2023 was not material.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

Amortized Cost Basis by Origination Year

18 unchanged sentences

Gross charge-offs - year ended December 31, 2025 $ — — — — 126 2,271 2,397

Consumer and other loans - Non-Nelnet Bank:

Loans in deferment $ 51 99 — — — — 150

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

Loans in forbearance $ 201 513 984 — — — 1,698

Loans in repayment status:

4 unchanged sentences

Total loans in repayment 1,068,449 29,245 20,859 1,920 286 260 1,121,019

Total consumer and other loans $ 289,297 52,290 3,224 429 249 71 345,560

Total consumer loans and other financing receivables $ 1,068,650 29,758 21,843 1,920 286 260 1,122,717

Accrued interest receivable 1,497

1 unchanged sentence

Allowance for loan losses ( 57,360 )

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

Total consumer loans and other financing receivables and accrued interest receivable, net of allowance for loan losses $ 1,049,009

Gross charge-offs - year ended December 31, 2025 $ 9,364 11,244 6,753 321 17 9 27,708

3 unchanged sentences

2025 2024 2023 2022 2021 Prior years Total

Private education loans - Nelnet Bank (a):

Private education loans - Nelnet Bank:

Loans in-school/grace/deferment $ 25,934 16,783 7,755 4,366 253 1,576 56,667

12 unchanged sentences

Gross charge-offs - year ended December 31, 2025 $ 11 538 1,330 1,062 539 4,535 8,015

Consumer and other loans - Nelnet Bank (a):

Consumer and other loans - Nelnet Bank:

Loans in deferment $ 9,713 293 — — — — 10,006

11 unchanged sentences

Gross charge-offs - year ended December 31, 2025 $ 61 1,956 476 — 523 288 3,304

(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.

AND SUBSIDIARIES

15 unchanged sentences

10/25/67 - 8/27/68

FFELP loan warehouse facilities 853,165 4.41 % - 4.69 %

1/31/26 / 4/1/26

Consumer loan warehouse facilities 90,000 4.46 % / 4.57 %

FFELP loan warehouse facility 213,982 4.83 % / 4.84 %

Consumer loan warehouse and other facilities 767,951 5.01 % - 5.67 %

11/13/27 - 2/29/28

1 unchanged sentence

6/25/49 / 11/25/53

Fixed-rate bonds and notes issued in private education loan asset-backed securitizations 50,415 5.35 % / 7.15 %

12/28/43 / 11/25/53

Fixed-rate bonds and notes issued in private education loan asset-backed securitization 27,391 7.15 %

Unsecured line of credit — — 9/22/26

17 unchanged sentences

1/31/26 / 4/1/26

Consumer loan warehouse facility 23,691 5.70 % 11/14/25

Consumer loan warehouse facilities 90,000 4.46 % / 4.57 %

8/1/26 / 11/13/27

Variable-rate bonds and notes issued in private education loan asset-backed securitizations 54,973 5.90 % / 6.82 %

5 unchanged sentences

5/4/25 / 1/30/33

Repurchase agreement 208,164 6.35 % - 6.81 %

1/22/24 - 12/20/24

Other - due to related party (a) 5,778 5.00 % - 6.05 %

3/1/24 - 11/15/30

Discount on bonds and notes payable and debt issuance costs ( 48,654 )

Total $ 8,309,797

(a) Union Bank, a related party, provided funding to the Company for certain properties and solar fields.

During 2024, all such loans were paid in full.

AND SUBSIDIARIES

1 unchanged sentence

(Dollars in thousands, except share amounts, unless otherwise noted)

Warehouse Facilities

The Company funds a portion of its loan acquisitions using 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 December 31, 2024.

The following table summarizes the Company's warehouse and other facilities as of December 31, 2025:

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

FFELP (a) $ 800,000 213,982 586,018 1/30/2026 1/29/2027 note (b) $ 17,071

FFELP (c) 375,000 288,369 86,631 4/1/2025 4/1/2026 92 % 24,186

$ 975,000 853,165 121,835 $ 64,955

Consumer (d) $ 100,000 5,000 95,000 11/13/2026 11/13/2027 70 % $ 2,111

Consumer (e) 125,000 85,000 40,000 1/1/2026 8/1/2026 60 % - 80 %

Consumer loans and other financing receivables $ 925,000 767,951 157,049 11/13/2026 - 7/31/2027

11/13/2027 - 2/29/2028

(a) During 2024, this facility was amended resulting in a reduction of the maximum financing amount from $ 1.25 billion to $ 600 million and extending the expiration of liquidity provisions and final maturity date to January 31, 2025 and January 31, 2026, respectively.

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.

(a) On January 30, 2026, the Company extended the liquidity provisions and final maturity date on this facility to July 31, 2026 and July 30, 2027, respectively.

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

2 unchanged sentences

The loans would then be funded at this new advance rate until the final maturity date of the facility.

(c) During 2024, this facility was amended resulting in a reduction of the maximum financing amount from $ 432 million to $ 375 million, and extending the expiration of liquidity provisions and final maturity date to April 1, 2025 and April 1, 2026, respectively.

(d) During 2024, this facility was amended resulting in a reduction of the maximum financing amount from $ 200 million to $ 100 million and extending the expiration of liquidity provisions and final maturity date to November 13, 2026 and November 13, 2027, respectively.

(e) On July 1, 2024, the Company closed on this $ 125 million consumer loan facility.

Asset-backed Securitizations

3 unchanged sentences

The bonds and notes payable are primarily secured by the loans receivable, related accrued interest, and by the amounts on deposit in the accounts established under the respective financing agreements.

On November 16, 2023, the Company completed a $ 189.6 million (par value) private education loan asset-backed securitization.

The notes issued have a final maturity date of November 25, 2053.

The following table summarizes the asset-backed securitization transaction completed during the year ended December 31, 2025.

There were no asset-backed securitization transactions completed during the year ended December 31, 2024.

2025-1 Total (a)

Class A-1 Notes Class A-2 Notes

Date securities issued 11/13/25 11/13/25

Total original principal amount $ 168,200 525,000 693,200

Cost of funds SOFR Rate plus 0.75 %

SOFR Rate plus 0.95 %

Final maturity date 10/25/33 11/27/90

(a) Total original principal amount excludes the Class B subordinated tranche totaling $ 14.7 million that was retained by the Company at issuance.

Unsecured Line of Credit

16 unchanged sentences

A default on the Company's other debt facilities would result in an event of default on the Company's unsecured line of credit that would result in the outstanding balance on the line of credit, if any, becoming immediately due and payable.

Repurchase Agreement

The Company had a repurchase agreement with a non-affiliated third party, the proceeds of which were collateralized by certain private education loan asset-backed securities (bond investments).

The outstanding balance of this facility was paid in full during the fourth quarter of 2024.

Nelnet Bank has unsecured Federal Funds lines of credit with correspondent banks totaling $ 50.0 million at a stated interest rate at the time of borrowing.

18 unchanged sentences

Par value 763,340 7,671 5,941

Remaining unamortized cost of issuance ( 32 ) ( 14 ) ( 821 )

Gain, net of losses $ 54 815 1,231

Remaining unamortized costs ( 8,602 ) ( 32 ) ( 14 )

(Loss) gain, net $ ( 4,849 ) 54 815

The Company has repurchased certain of its own asset-backed securities (bonds and notes payable) in the secondary market or retained such instruments upon initial issuance.

For accounting purposes, these notes are eliminated in consolidation and are not included in the Company's consolidated financial statements.

However, these securities remain legally outstanding at the trust level and the Company could sell these notes to third parties, redeem the notes at par as cash is generated by the trust estate, or pledge the securities as collateral on repurchase agreements.

Upon a sale of these notes to third parties, the Company

AND SUBSIDIARIES

1 unchanged sentence

(Dollars in thousands, except share amounts, unless otherwise noted)

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

For accounting purposes, these notes are eliminated in consolidation and are not included in the Company's consolidated financial statements.

However, these securities remain legally outstanding at the trust level and the Company could sell these notes to third parties or redeem the notes at par as cash is generated by the trust estate.

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.

would obtain cash proceeds equal to the market value of the notes on the date of such sale.

As of December 31, 2025, the Company holds $ 292.2 million (par value) of its own FFELP asset-backed securities.

Upon sale, these notes would be shown as "bonds and notes payable" in the Company's consolidated balance sheet.

Debt Redemptions

9 unchanged sentences

Settled-to-market derivative instruments used as part of the Company's interest rate risk management strategy are discussed below.

The Company earns interest on the majority of its FFELP student loan assets based on a 30-day average SOFR index while a portion of its FFELP loan assets is funded with 90-day average SOFR and 3-month CME term SOFR.

Prior to the discontinuation of LIBOR on June 30, 2023, interest earned on the majority of the Company's FFELP student loan assets was indexed to the one-month LIBOR rate.

Meanwhile, the Company funded a portion of its FFELP loan assets with three-month LIBOR indexed floating rate securities.

The Company earns variable-rate interest on the majority of its FFELP student loan assets based on a 30-day average SOFR index while a portion of its FFELP loan assets is funded with 90-day average SOFR and 3-month CME term SOFR.

The differing interest rate characteristics of the Company's loan assets versus the liabilities funding these assets results in basis risk, which impacts the Company's excess spread earned on its loans.

The Company also faces repricing risk due to the timing of the interest rate resets on its liabilities, which may occur as infrequently as once a quarter, in contrast to the timing of the interest rate resets on its assets, which generally occur daily.

As of December 31, 2025, the Company’s AGM operating segment had $ 7.0 billion, $ 0.2 billion, and $ 0.2 billion of FFELP loans indexed to the 30-day average SOFR rate, three-month commercial paper rate, and the three-month treasury bill rate, respectively, the indices for which reset daily, and $ 1.4 billion of debt indexed to 90-day average SOFR and 3-month CME term SOFR, the indices for which reset quarterly, and $ 5.0 billion of debt indexed to 30-day average SOFR and 1-month CME term SOFR, the indices for which reset monthly.

The Company has used derivative instruments to hedge its basis risk and repricing risk.

The Company has entered into basis swaps in which the Company receives and pays the term adjusted SOFR plus the tenor spread adjustment to LIBOR.

Prior to the discontinuation of LIBOR on June 30, 2023, the Company received three-month LIBOR set discretely in advance and paid one-month LIBOR plus or minus a spread as defined in the agreements (the "1:3 Basis Swaps").

The Company has used derivative instruments to hedge its basis risk and repricing risk on a portion of its FFELP student loan assets.

The Company has entered into basis swaps in which 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").

The following table summarizes the Company’s Basis Swaps outstanding as of December 31, 2025 and 2024:

Maturity Notional amount

2026 $ 1,150,000

The weighted-average rate paid by the Company on the Basis Swaps as of December 31, 2025 and 2024 was the one-month SOFR index plus 10.4 basis points.

AND SUBSIDIARIES

1 unchanged sentence

(Dollars in thousands, except share amounts, unless otherwise noted)

The following table summarizes the Company’s 1:3 Basis Swaps outstanding:

As of December 31,

Maturity Notional amount Notional amount

2024 $ — 1,750,000

2026 1,150,000 1,150,000

2027 250,000 250,000

$ 1,400,000 3,150,000

The weighted average rate paid by the Company on the 1:3 Basis Swaps as of December 31, 2024 and 2023 was the term adjusted SOFR (plus the tenor spread adjustment relating to LIBOR) plus 10.4 basis points and 10.1 basis points, respectively.

Interest Rate Swaps – Floor Income Hedges

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In higher interest rate environments, where the interest rate rises above the borrower rate and fixed-rate loans effectively become variable-rate loans, the impact of the rate fluctuations is reduced.

As of December 31, 2024, 2023, and 2022, the Company had $ 0.4 billion, $ 0.3 billion, and $ 0.9 billion, respectively, of FFELP student loan assets that were earning fixed rate floor income.

As of December 31, 2025, 2024, and 2023, the Company had $ 411.0 million, $ 367.4 million, and $ 307.7 million, respectively, of FFELP student loan assets that were earning fixed-rate floor income.

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

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

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 (b) 50,000 3.17

2030 (c) 100,000 3.63

2029 (a) 50,000 3.17

2030 100,000 3.63

(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.

During the first quarter of 2023, the Company received cash proceeds of $ 183.2 million, which included $ 19.1 million related to 2023 settlements, to terminate $ 2.8 billion in notional amount of floor income interest rate swaps prior to their final maturity.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

$ 400,000 3.71 %

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

Nelnet Bank Derivatives

Interest Rate Swaps

Non-centrally cleared derivative instruments are used by Nelnet Bank to hedge the exposure to variability in cash flows of variable rate intercompany deposits primarily to minimize the exposure to volatility in cash flows from future changes in interest rates.

Nelnet Bank has structured these derivatives so that each is economically effective;

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.

Interest Rate Swaps - Intercompany Deposits

Nelnet Bank’s derivatives used to hedge intercompany deposits are structured so that each is economically effective;

however, because these derivatives are hedging intercompany deposits, the derivative instruments are not eligible for hedge accounting in the consolidated financial statements.

As a result, the change in market value of these derivative instruments is reported in current period earnings and presented in "derivative market value adjustments and derivative settlements, net" included in the consolidated statements of income.

The following table summarizes the outstanding derivative instruments used by Nelnet Bank to hedge exposure to variability in cash flows related to variable rate intercompany deposits.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

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

For these derivatives, the Company receives monthly or quarterly payments based on SOFR that resets daily.

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

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

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

2033 25,000 3.90 25,000 3.90

2035 (c) 30,000 3.79 — —

2033 (d) 25,000 3.90 25,000 3.90

$ 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.

Interest Rate Swaps - Third-Party Deposits

Nelnet Bank's derivatives used to hedge third-party deposits qualify as cash flow hedges.

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 year ended December 31, 2025.

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 December 31, 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 %

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

Consolidated Financial Statement Impact Related to Derivatives

Balance Sheets

Unlike the Company's Non-Nelnet Bank derivatives, Nelnet Bank's derivatives are not cleared post-execution at a regulated clearinghouse.

Nelnet Bank’s derivatives are not cleared post-execution at a regulated clearinghouse.

As such, the Company records these derivative instruments in the consolidated balance sheets on a gross basis as either an asset (included in "other assets") or liability (included in "other liabilities") measured at fair value.

3 unchanged sentences

Fair value of asset derivatives Fair value of liability derivatives

Interest rate swaps - Nelnet Bank $ 3,232 452 53 1,976

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

Interest rate swaps - intercompany deposits $ 614 3,232 1,243 53

Interest rate swaps - third-party deposits (cash flow hedges) — — 484 —

$ 614 3,232 1,727 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.

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:

Year ended December 31,

2 unchanged sentences

Interest rate swaps - floor income hedges 1,475 4,288 23,044

Interest rate swaps - Nelnet Bank 917 484 —

Interest rate swaps - intercompany deposits 606 917 484

Total settlements - income 2,700 6,134 25,072

2 unchanged sentences

Interest rate swaps - floor income hedges ( 5,620 ) 6,282 ( 39,683 )

Interest rate swaps - Nelnet Bank 4,702 ( 1,523 ) —

Total change in fair value - income (expense) 10,124 ( 41,773 ) 231,691

Derivative market value adjustments and derivative settlements, net - income (expense) $ 16,258 ( 16,701 ) 264,634

Interest rate swaps - intercompany deposits ( 3,809 ) 4,702 ( 1,523 )

Other derivative instruments 907 — —

Total change in fair value - (expense) income ( 9,098 ) 10,124 ( 41,773 )

Derivative market value adjustments and derivative settlements, net - (expense) income $ ( 6,398 ) 16,258 ( 16,701 )

Derivative Instruments - Market Risk

18 unchanged sentences

Total Non-Nelnet Bank 463,005 8,882 ( 13,888 ) 457,999 557,140 11,455 ( 19,092 ) 549,503

FFELP loan (c) 231,543 6,060 ( 270 ) 237,333 304,555 4,488 ( 2,286 ) 306,757

FFELP loan 258,208 6,513 ( 798 ) 263,923 231,543 6,060 ( 270 ) 237,333

Private education loan 13,623 — ( 37 ) 13,586 1,596 — — 1,596

2 unchanged sentences

Total available-for-sale asset-backed securities $ 1,304,364 16,828 ( 16,204 ) 1,304,988 1,087,223 19,290 ( 20,687 ) 1,085,826

Equity securities 74,494 50,907

Equity securities and funds measured at net asset value 109,648 74,494

Total investments at fair value 1,414,636 1,160,320

Other investments and notes receivable (not measured at fair value):

Held-to-maturity investments

Non-Nelnet Bank:

Debt securities — 4,700

FFELP loan asset-backed securities (c) 203,439 149,938

Private education loan asset-backed securities 7,335 8,100

Total Nelnet Bank 210,774 158,038

Total held-to-maturity investments 210,774 162,738

Held-to-maturity asset-backed securities

FFELP loan 211,299 203,439

Private education loan — 7,335

Total Nelnet Bank held-to-maturity asset-backed securities 211,299 210,774

Venture capital, funds, and other:

Measurement alternative (d) 200,782 194,084

Measurement alternative (c) 227,962 200,782

Equity method 248,253 170,258

Total venture capital and funds 476,215 371,040

Equity method 131,745 103,811

Investment in ALLO:

Voting interest/equity method (e) — 10,693

Preferred membership interest (f) 225,614 155,047

Total investment in ALLO 225,614 165,740

Beneficial interest in loan securitizations (g):

Consumer loans, net of allowance for credit losses of $ 38,590 as of December 31, 2024

Real estate equity method 233,167 131,745

Voting interest/equity method — —

Preferred membership interest 10,148 225,614

Total interest in ALLO 10,148 225,614

Beneficial interest in loan securitizations (e):

Consumer loans, net of allowance for credit losses of $ 45,242 and $ 38,590 as of December 31, 2025 and December 31, 2024, respectively

139,752 142,764

Private education loans, net of allowance for credit losses of $ 901 as of December 31, 2024

Private education loans, net of allowance for credit losses of $ 5,560 and $ 901 as of December 31, 2025 and December 31, 2024, respectively

40,510 52,824

1 unchanged sentence

Total beneficial interest in loan securitizations, net of allowance 194,830 213,809

Solar (h) ( 155,048 ) ( 146,040 )

Solar (f) ( 240,370 ) ( 155,048 )

Notes receivable 32,085 32,258

6 unchanged sentences

(a) Represent investments held in third-party trusts as collateral for the Company’s reinsurance business.

(b) In December 2020, Wells Fargo announced the sale of its approximately $ 10 billion portfolio of private education loans.

The Company entered into a joint venture with other investors to acquire the loans.

Under the terms of the joint venture agreements, the Company serves as the sponsor and administrator for the loan securitizations completed by the joint venture to permanently finance the loans acquired.

As sponsor of the loan securitizations, the Company is required to provide a certain level of risk retention, and has purchased bonds issued in such securitizations to satisfy this requirement.

The bonds purchased to satisfy the risk retention requirement are included in the above table and as of December 31, 2024, the par value and fair value of these securities was $ 237.3 million and $ 219.2 million, respectively.

(b) As sponsor of certain private education loan securitizations, the Company is required to provide a certain level of risk retention, and has purchased bonds issued in such securitizations to satisfy this requirement.

The bonds purchased to satisfy the risk retention requirement are included in the above table.

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.

(c) On May 22, 2024, securities at Nelnet Bank with a fair value of $ 70.6 million were transferred from available-for-sale to held-to-maturity.

The securities were reclassified at fair value at the time of the transfer, and such transfer represented a non-cash transaction.

Accumulated other comprehensive income as of May 22, 2024 included pre-tax unrealized gains of $ 3.4 million related to the transfer.

These unrealized gains are being amortized, consistent with the amortization of any premiums on such securities, over the remaining lives of the respective securities as an adjustment of yield.

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

(doing business as “Hudl”).

During the fourth quarter of 2024, the Company acquired additional ownership interests in Hudl for $ 3.3 million from existing Hudl investors.

The bonds purchased to satisfy the risk retention requirement are included in the above table and as of December 31, 2025, the par value and fair value of these securities was $ 197.2 million and $ 183.4 million, respectively.

(“CompanyCam”), a technology company that provides a photo-based, cloud managed application designed for contractors and field service professionals to document projects in real-time.

On August 11, 2025, CompanyCam 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 interests and received cash proceeds of $ 10.1 million and recognized a gain of $ 7.8 million.

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

As a result of CompanyCam’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 interest in CompanyCam to reflect the August 2025 transaction value.

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

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

The Company has an investment in Hudl, Inc.

During the first quarter of 2025, the Company acquired additional ownership interests in Hudl for $ 3.8 million from existing Hudl investors.

This transaction was not considered an observable market transaction (not orderly) because it was not subject to customary marketing activities.

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

As of December 31, 2024, the carrying amount of the Company's investment in Hudl is $ 168.7 million.

As of December 31, 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.

The Company's equity ownership interests in Hudl consist of preferred stock with certain liquidation preferences that are considered substantive.

Accordingly, for accounting purposes, the Company's equity ownership interests are not considered in-substance common stock and the Company is accounting for its equity investment in Hudl using the measurement alternative method.

(e) The Company recognized losses under the HLBV method of accounting on its ALLO voting membership interests investment of $ 10.7 million, $ 65.3 million, and $ 68.0 million during the years ended December 31, 2024, 2023, and 2022, respectively.

Losses from the Company's investment in ALLO are included in "other, net" in "other income (expense)" on the consolidated statements of income.

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

(f) As of December 31, 2024, the outstanding preferred membership interests of ALLO held by the Company was $ 225.6 million.

The Company earns a preferred return on these interests.

The accrued preferred return capitalizes to preferred membership interests annually on each December 31.

The Company historically earned a preferred annual return of 6.25 % that increased to 10.00 % on April 1, 2024 for $ 155.0 million of preferred membership interests of ALLO held by the Company.

On December 31, 2024, $ 14.1 million of accrued preferred return was capitalized to preferred membership interests.

The preferred annual return on the updated balance of $ 169.1 million preferred membership interests increased to 13.50 % on January 1, 2025.

During 2024, the Company purchased an additional $ 53.1 million of preferred membership interests of ALLO, which earn a preferred annual return of 20.00 %.

Including the accrued preferred return of $ 3.4 million that was capitalized on December 31, 2024, the updated balance of preferred membership interests that earns at 20.00 % was $ 56.5 million as of December 31, 2024.

The Company recognized income on its ALLO preferred membership interests of $ 17.5 million, $ 9.1 million, and $ 8.6 million during the years ended December 31, 2024, 2023, and 2022, respectively.

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

(g) 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.

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

See note 3 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 first quarter of 2024, reducing the carrying value of the voting membership interest 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.

Prior to redeeming all its outstanding preferred membership interest in June 2025, the Company recognized income on its ALLO preferred membership interest of $ 14.4 million, $ 17.5 million, and $ 9.1 million during the years ended December 31, 2025, 2024, and 2023, respectively.

During the fourth quarter of 2025, the Company contributed $ 10.0 million of non-voting preferred membership interest of ALLO, which earn a preferred annual return of 20.0 %.

Including the preferred return that was capitalized on December 31, 2025, the outstanding balance of preferred membership interest was $ 10.1 million as of December 31, 2025.

The income statement activity from the Company's interest 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 December 31, 2025, the Company's ownership correlates to approximately $ 1.15 billion, $ 400 million, and $ 280 million of consumer, private education, and federally insured student loans, respectively, included in these securitizations.

During 2024, an increase in cumulative loss expectations on certain securitizations and loan vintages caused a change in estimate of future cash flows related to certain of the Company's beneficial interest securitization investments.

As a result, the Company recorded a $ 39.5 million allowance for credit losses (and related provision expense) related to these investments.

The Company has recorded an allowance for credit losses (and related provision expense) related to certain loan securitizations due primarily to an increase in cumulative loss expectations of $ 11.3 million and $ 39.5 million during the years ended December 31, 2025 and 2024, respectively, which is included in “provision for beneficial interests” on the consolidated statements of income.

(f) The Company has equity interests in partnerships that make solar tax equity contributions in entities that promote renewable energy sources.

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

As of December 31, 2025, the Company has contributed a total of $ 355.6 million, and third-party partners have contributed $ 416.0 million, in tax equity to renewable energy solar partnerships that support the development and operations of solar, fuel cell, and battery storage projects across the United States.

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

As of December 31, 2025, the Company and its third-party partners have earned $ 419.7 million and $ 454.6 million, respectively, of tax credits on those projects that remain outstanding.

The Company’s negative carrying value related to solar tax partnerships on the consolidated balance sheet of $ 240.4 million as of December 31, 2025 represents the sum of total tax credits earned on solar projects placed in service through December 31, 2025 and the calculated HLBV cumulative net losses being larger than the total contributions made by the Company and its syndication

AND SUBSIDIARIES

1 unchanged sentence

(Dollars in thousands, except share amounts, unless otherwise noted)

(h) The Company invests in solar tax equity investments.

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

As of December 31, 2024, the Company has invested a total of $ 314.8 million and its third-party investors have invested $ 271.4 million in tax equity investments that remain outstanding in renewable energy solar partnerships that support the development and operations of solar projects throughout the country.

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 December 31, 2024, the Company has earned $ 585.9 million of tax credits on those projects that remain outstanding, which includes $ 260.9 million earned by syndication partners.

The solar investment negative carrying value on the consolidated balance sheet of $ 155.0 million as of December 31, 2024 represents the sum of total tax credits earned on solar projects placed in service through December 31, 2024 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 December 31, 2024, excluding the portion owned by syndication partners that is reflected as "noncontrolling interests" on the consolidated balance sheet, was $ 87.9 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 net losses, which include net losses 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 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 losses excluding net losses attributed to noncontrolling interest investors (such amount reflecting the before tax net income impact of such solar tax equity investments to the Company).

partners on such projects.

The negative carrying value as of December 31, 2025, excluding the portion owned by syndication partners that is reflected as "noncontrolling interests" on the consolidated balance sheet, was $ 109.6 million.

The Company accounts for its solar tax equity interests using the HLBV method of accounting.

For most of these partnerships, the HLBV method results in accelerated losses during the early years of the investment, followed by gains recognized at the conclusion of the contractual agreement (generally 5 years).

The following table presents (i) HLBV losses recognized by the Company and gains recognized upon the sale of partnership interests, including amounts attributable to third-party noncontrolling interest partners (syndication partners), which are included in “other, net” in "other income (expense)" on the consolidated statements of income, (ii) solar net losses and gains attributed to noncontrolling interest partners 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:

Year ended December 31,

2025 2024 2023

Net losses $ ( 6,477 ) ( 59,645 ) ( 16,708 )

net losses attributed to noncontrolling interest investors (syndication partners) 4,599 37,875 17,680

Net (losses) gains, excluding activity attributed to noncontrolling interest investors $ ( 1,878 ) ( 21,770 ) 972

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

Losses from HLBV accounting (gross) $ ( 49,762 ) ( 21,774 ) ( 58,195 )

Gains from sales (gross) 20,733 15,297 ( 1,450 )

Losses from solar investments, net ( 29,029 ) ( 6,477 ) ( 59,645 )

losses attributable to noncontrolling members, net ( 27,930 ) ( 4,599 ) ( 37,875 )

Net loss attributable to the Company $ ( 1,099 ) ( 1,878 ) ( 21,770 )

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

16 unchanged sentences

Total available-for-sale asset-backed securities at fair value $ 46,663 52,576 208,100 997,649 1,304,988

Held-to-maturity investments

FFELP loan asset-backed securities $ — 2,759 1,136 199,544 203,439

Private education loan asset-backed securities — — — 7,335 7,335

Total held-to-maturity investments at amortized cost $ — 2,759 1,136 206,879 210,774

Total held-to-maturity investments at fair value $ — 2,827 1,160 212,177 216,164

Held-to-maturity asset-backed securities

FFELP loan - amortized cost $ — 2,474 12,994 195,831 211,299

FFELP loan - fair value $ — 2,492 12,835 200,395 215,722

Beneficial interest in loan securitizations (a):

2 unchanged sentences

(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 December 31, 2024:

Carrying value Gross unrealized gains Gross unrealized losses Fair value

Asset-backed and other securities $ 210,774 5,432 ( 42 ) 216,164

Beneficial interest in loan securitizations 213,809 17,004 ( 1,303 ) 229,510

AND SUBSIDIARIES

1 unchanged sentence

(Dollars in thousands, except share amounts, unless otherwise noted)

The following table presents securities classified as available-for-sale that have gross unrealized losses on December 31, 2024 and the fair value of such securities as of December 31, 2024.

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

Carrying value Gross unrealized gains Gross unrealized losses Fair value

Asset-backed securities $ 211,299 5,156 ( 733 ) 215,722

Beneficial interest in loan securitizations 194,830 18,149 ( 1,581 ) 211,398

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

11 unchanged sentences

FFELP loan ( 502 ) 85,148 ( 296 ) 14,786 ( 798 ) 99,934

Private education loan ( 37 ) 13,228 — — ( 37 ) 13,228

Other debt securities ( 670 ) 169,591 ( 811 ) 4,822 ( 1,481 ) 174,413

7 unchanged sentences

Gross realized losses ( 1,449 ) ( 1,241 ) ( 8,021 )

Net gains (losses) $ 4,534 ( 3,504 ) 5,902

Business Combinations

NGWeb Solutions, LLC

On April 30, 2022, the Company acquired 30 % of the ownership interests of NGWeb Solutions, LLC ("NextGen") for total cash consideration of $ 9.2 million.

NextGen provides software solutions primarily to higher education institutions to enable administrators to efficiently manage online forms, scholarships, employment, online timesheets, and other specialized processes that require signed authorizations and interactions with student information.

Prior to the acquisition, the Company owned 50 % of the ownership interests of NextGen and accounted for this investment under the equity method.

As a result of the acquisition, the previously held 50 % ownership interests was remeasured to its fair value as of the April 30, 2022 date of acquisition of the additional 30 % of the ownership interests, resulting in a $ 15.2 million revaluation gain, which is included in "other, net" in "other income (expense)" on the consolidated statements of income.

For segment reporting, this gain is included in Corporate and Other Activities.

Subsequent to the acquisition, the Company has consolidated the operating results of NextGen and such results are included in the Education Technology Services and Payments reportable operating segment.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date.

Cash and cash equivalents $ 1,885

Accounts receivable 1,315

Property and equipment 800

Other assets 201

Intangible assets 15,250

Excess cost over fair value of net assets acquired (goodwill) 15,937

Other liabilities ( 4,550 )

Net assets acquired 30,838

Minority interest ( 6,291 )

Remeasurement of previously held investment ( 15,342 )

Total consideration paid by the Company $ 9,205

The $ 15.3 million of acquired intangible assets on the date of acquisition had a weighted-average useful life of approximately 14 years.

The intangible assets that made up this amount include customer relationships of $ 12.8 million ( 15 -year useful life), computer software of $ 1.7 million ( 5 -year useful life), and a trade name of $ 0.8 million ( 10 -year useful life).

The $ 15.9 million of goodwill was assigned to the NextGen reporting unit that is included in the Education Technology Services and Payments operating segment and is not expected to be deductible for tax purposes.

The amount allocated to goodwill was primarily attributed to the synergies and economies of scale expected from combining the operations of the Company and NextGen.

The pro forma impacts of the NextGen acquisition on the Company's historical results prior to the acquisition were not material.

On July 1, 2022, the Company acquired 80 % of the ownership interests of two subsidiaries of GRNE Solutions, LLC named GRNE-Nelnet, LLC (GRNE) and ENRG-Nelnet, LLC (ENRG) (collectively referred to as "GRNE Solar") for total cash consideration of $ 28.9 million.

GRNE designed and installed residential and commercial solar systems in the Midwest.

ENRG owned certain assets that generated and sold solar energy.

The acquisition diversifies the Company's position in the renewable energy space to include solar construction.

For segment reporting, the operating results of GRNE Solar (now referred to as Nelnet Renewable Energy) are included in Corporate and Other Activities.

As part of the acquisition, the Company agreed to pay $ 5.0 million in future capital contributions on behalf of the minority interest members.

Any amount of the $ 5.0 million not paid as capital contributions to GRNE Solar by June 30, 2025 was to be paid by the Company directly to the minority interest members.

On the acquisition date, the Company recorded a liability and increased goodwill by $ 5.0 million as a result of the future capital contribution commitment.

The future capital contribution commitment had been fully satisfied as of December 31, 2023.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date.

Cash and cash equivalents $ 1,742

Restricted cash 2,200

Accounts receivable 3,983

Property and equipment 8,720

Other assets 2,296

Intangible assets 11,683

Excess cost over fair value of net assets acquired (goodwill) 13,873

Bonds and notes payable ( 750 )

Other liabilities ( 7,624 )

Net assets acquired 36,123

Minority interest ( 7,225 )

Total consideration paid by the Company $ 28,898

Net gains $ 2,109 4,534 ( 3,504 )

AND SUBSIDIARIES

1 unchanged sentence

(Dollars in thousands, except share amounts, unless otherwise noted)

The $ 11.7 million of acquired intangible assets on the date of acquisition had a weighted-average useful life of approximately 8 years.

The intangible assets that made up this amount include a trade name of $ 8.1 million ( 10 -year useful life), customer relationships of $ 1.1 million ( 3 -year useful life), and other separately identified intangibles of $ 2.5 million ( 5 -year useful life).

The $ 18.9 million of goodwill was assigned to the GRNE operating segment that is included in Corporate and Other Activities for segment reporting and is expected to be deductible for tax purposes.

The amount allocated to goodwill was attributed to synergies from combining the operations of the Company and GRNE Solar and intangible assets that do not qualify for separate recognition.

The pro forma impacts of the GRNE Solar acquisition on the Company's historical results prior to the acquisition were not material.

In June 2024, the Company acquired the remaining 20 % of GRNE Solar for $ 0.3 million.

Summarized Financial Information of Equity Method Investments

The Company evaluates each of its equity method investments to determine if any are significant as defined in the regulations promulgated by the SEC.

The Company’s equity method investments include venture capital, solar development partnerships, ALLO, and real estate partnerships, certain of which are accounted for under the HLBV method of accounting.

As of and for the years ended December 31, 2025, 2024, and 2023, no individual equity method investment met the significance criteria.

As such, the Company is not required to present separate financial statements for any of its equity method investments.

The following tables present summarized financial information for the Company’s equity method investments, aggregated and reported on a one‑quarter lag, assuming 100% ownership.

For periods in which an equity method investment is recognized, the summarized financial information reflects activity from the date of recognition.

Conversely, for periods in which an equity method investment is derecognized, the summarized financial information reflects activity through the date of derecognition.

As of September 30,

Total assets $ 6,203,730 5,176,324

Total liabilities $ 4,634,669 3,181,369

Twelve months ended September 30,

2025 2024 2023

Revenues $ 924,665 591,951 476,708

Net income (loss) $ ( 68,800 ) ( 112,378 ) ( 102,285 )

Intangible Assets

6 unchanged sentences

87 $ 29,283 34,960

Trade names (net of accumulated amortization of $ 205 and $ 8,268 , respectively)

Computer software (net of accumulated amortization of $ 917 and $ 574 , respectively)

Trade name (net of accumulated amortization of $ 205 )

Computer software (net of accumulated amortization of $ 917 )

Total amortizable intangible assets, net 87 $ 29,283 36,328

3 unchanged sentences

2031 and thereafter 5,193

The change in the carrying amount of goodwill by reportable operating segment was as follows:

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

A summary of goodwill by reportable operating segment follows:

Nelnet Financial Services

Loan Servicing and Systems Education Technology Services and Payments Asset Generation and Management (a) Nelnet Bank NFS Other Operating Segments Corporate and Other Activities Total

Goodwill as of December 31, 2022 $ 23,639 92,507 41,883 — — 18,873 176,902

Impairment (see note 11) — — — — — ( 18,873 ) ( 18,873 )

Loan Servicing and Systems Education Technology Services and Payments Asset

Generation and

Management (a) Nelnet Bank NFS Other Operating Segments Corporate and Other Activities Total

Goodwill as of December 31, 2023, 2024, and 2025 $ 23,639 92,507 41,883 — — — 158,029

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As a result, as this revenue stream winds down, goodwill impairment will be triggered for the FFELP Portfolio reporting unit (included in the AGM operating segment) due to the passage of time and depletion of projected cash flows stemming from its FFELP student loan portfolio.

Management believes the elimination of FFELP loan originations will not have an adverse impact on the fair value of the Company's other reporting units.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

Property and Equipment

8 unchanged sentences

15,447 17,598

Solar facilities 5 - 35 years

10,398 12,850

Transportation equipment 5 - 10 years

1 unchanged sentence

Land — 2,992 3,214

Solar facilities 35 years

Construction in progress — 5,271 17,591

6 unchanged sentences

(Dollars in thousands, except share amounts, unless otherwise noted)

Impairment Expense, Provision for Beneficial Interests, and Restructure Charges

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 during 2024, 2023, and 2022.

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

Impairment Expense and Restructure Charges

Impairment Expense

The following table presents the impairment charges by asset and reportable operating segment:

Nelnet Financial Services

3 unchanged sentences

Year ended December 31, 2025

Investments - beneficial interest in loan securitizations (a) $ — — 39,491 — — — 39,491

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

Property and equipment - solar facilities (a) $ — — — — — 11,767 11,767

Investments - real estate and venture capital (b) — — — — 4,001 3,575 7,576

Investments - solar tax equity (b) — — — — — 5,761 5,761

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

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

Investments - venture capital and funds (d) — — — — — 537 537

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

$ — 1,145 — — 4,001 24,466 29,612

Year ended December 31, 2024

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

Leases, buildings, and associated improvements (c) 736 — — — — — 736

Investments - venture capital and funds (d) — — — — — 2,060 2,060

Goodwill (e) — — — — — 18,873 18,873

Property and equipment - internally developed software — 4,310 — — — — 4,310

Intangible assets (e) — — — — — 1,708 1,708

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

Investments - venture capital (b) — — — — — 537 537

$ 736 — — — — 2,402 3,138

1 unchanged sentence

Leases, buildings, and associated improvements (c) $ 296 — — — — 4,678 4,974

Investments - venture capital and funds (d) — — — — — 6,561 6,561

Property and equipment - internally developed software — 4,310 — — — — 4,310

Intangible asset — 2,239 — — — — 2,239

Investments - venture capital (b) — — — — — 2,060 2,060

Goodwill (d) — — — — — 18,873 18,873

Intangible assets (d) — — — — — 1,708 1,708

$ 296 4,310 — — — 27,319 31,925

(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.

See note 6 for additional information.

(b) 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 will discontinue 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.

As a result, the Company recorded non-cash impairment charges related to operating lease assets and associated leasehold improvements and to building and building improvements.

(a) In 2025, the Company recorded non-cash impairment charges related to certain solar energy facilities which are operated under long-term power purchase agreements.

During the period, the Company identified negative indicators, including reduced forecasted cash flows and operational underperformance which resulted in a determination that the carrying amount of the affected solar asset group was not recoverable.

In addition, the Company received notification of a customer contract cancellation related to its solar construction business resulting in a non-cash impairment charge on construction in progress of $ 1.9 million.

In 2024, the Company announced its decision to discontinue residential solar construction operations and focus exclusively on the commercial solar market.

In connection with this change, the Company recognized non-cash impairment charges on certain solar facilities and inventory related to residential operations.

(b) The Company recorded non-cash impairment charges related to certain real estate partnerships, venture capital interests, and its ownership in a solar development project after identifying indicators of an other-than-temporary decline in value.

These indicators included a series of sustained operating losses, deteriorating financial performance, and evidence that the Company may be unable to recover the carrying amount of the investments.

(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.

The Corporate and Other Activities amount for the year ended December 31, 2023 includes a $ 2.4 million lease termination fee paid to Union Bank, a related party.

(d) The Company recorded non-cash impairment charges related to several of its venture capital investments accounted for under the measurement alternative method.

AND SUBSIDIARIES

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(Dollars in thousands, except share amounts, unless otherwise noted)

(e) As part of the November 2023 annual goodwill impairment assessment completed in conjunction with the Company’s annual November budget process, the Company determined it was more likely than not that the estimated fair value of the GRNE operating segment was less than its carrying amount.

As part of the quantitative assessment, the Company used the discounted cash flow method under the income approach to estimate the fair value of the reporting unit, which concluded that the estimated fair value was less than its carrying amount.

As a result, the Company recorded a non-cash impairment charge in the fourth quarter of 2023.

(d) As part of the annual goodwill impairment assessment, the Company determined it was more likely than not that the estimated fair value of the Company’s solar construction operating segment (GRNE) was less than its carrying amount, requiring a quantitative assessment.

The Company used the discounted cash flow method under the income approach to estimate the fair value of the reporting unit, which concluded that the estimated fair value was less than its carrying amount.

As a result, the Company recorded a non-cash impairment charge.

No remaining goodwill is attributable to the GRNE operating segment.

The Company also recorded a non-cash impairment charge for GRNE operating segment’s remaining intangible assets.

Restructure Charges

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

The restructuring plan included a reduction in headcount of approximately 40 associates.

The Company incurred a restructure charge of $ 1.6 million related to these staff reductions and commissions paid for canceled contracts, which is included in "salaries and benefits" in the consolidated statements of income .

Loan Servicing and Systems (LSS)

In June 2024, the Company announced a reduction in headcount after the completion of the transfer of direct loan servicing volume to one platform and the required servicing platform enhancements for the Company's new student loan servicing contract with the Department of Education.

The Company also recorded a non-cash impairment charge for all the remaining intangible assets related to GRNE.

Restructure Charges - Loan Servicing and Systems (LSS)

Approximately 220 associates who work in LSS, including some in related shared services that support LSS, were notified their positions were being eliminated.

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The Company incurred a charge of $ 4.3 million related to the staff reductions, which is included in "salaries and benefits" in the consolidated statements of income.

The charge was primarily recognized in the first and second quarters of 2023.

As a result of the decommissioning of the Great Lakes’ platform in the fourth quarter of 2023, the Company incurred a charge of $ 3.5 million related to staff reductions, including some in related shared services that support LSS, which is included in "salaries and benefits" in the consolidated statements of income, that was recognized in the fourth quarter of 2023.

Bank Deposits

16 unchanged sentences

(Dollars in thousands, except share amounts, unless otherwise noted)

The following table presents certificates of deposit remaining maturities as of December 31, 2024:

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

One year or less $ 146,900

5 unchanged sentences

Total $ 331,300

Retail and other savings deposits include deposits from Educational 529 College Savings and Health 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 December 31, 2024 and 2023 were $ 44.3 million and $ 44.2 million, respectively, the majority of which are intercompany deposits from Nelnet, Inc.

Deposits that exceeded the FDIC insurance limits as of December 31, 2025 and 2024 were $ 41.4 million and $ 44.3 million, respectively, the majority of which were intercompany deposits from Nelnet, Inc.

and its subsidiaries.

8 unchanged sentences

The Company has a stock repurchase program that expires on May 8, 2028 in which it can repurchase up to five million shares of its Class A common stock on the open market, through private transactions, or otherwise.

As of December 31, 2024, 3.3 million shares may still be purchased under the Company's stock repurchase program.

Shares repurchased by the Company during 2024, 2023, and 2022 are shown in the table below.

As of December 31, 2025, 4.5 million shares remain authorized for repurchase under the Company's stock repurchase program.

Shares repurchased by the Company during 2025, 2024, and 2023 are shown below.

In accordance with the corporate laws of the state in which the Company is incorporated, all shares repurchased by the Company are legally retired upon acquisition by the Company.

4 unchanged sentences

Year ended December 31, 2023 336,943 28,028 83.18

(a) The average price of shares repurchased for the years ended December 31, 2024 and 2023 includes excise taxes.

(a) The average price of shares repurchased for each period presented includes excise taxes.

AND SUBSIDIARIES

11 unchanged sentences

Weighted-average common shares outstanding - basic and diluted

35,680,228 660,969 36,341,197 35,936,337 706,196 36,642,533 36,629,437 787,184 37,416,621

Earnings per share - basic and diluted $ 11.79 11.79 11.79 5.02 5.02 5.02 2.40 2.40 2.40

4 unchanged sentences

Significant judgment is required in evaluating the Company's tax positions and determining the provision for income taxes.

During the ordinary course of business, there are many transactions and calculations for which the ultimate tax determination is uncertain.

It further requires that a change in judgment related to the expected ultimate resolution of uncertain tax positions be recognized in earnings in the period of such change.

As of December 31, 2025, the total amount of gross unrecognized tax benefits (excluding the federal benefit received from state positions) was $ 17.9 million, which is included in “other liabilities” on the consolidated balance sheet.

Of this total, $ 14.1 million (net of the federal benefit on state issues) represents the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate in future periods.

The Company currently anticipates uncertain tax positions will decrease by $ 4.4 million prior to December 31, 2025 as a result of a lapse of applicable statutes of limitations, settlements, correspondence with examining authorities, and recognition or measurement considerations with federal and state jurisdictions;

however, actual developments in this area could differ from those expected.

Of the anticipated $ 4.4 million decrease, $ 3.5 million, if recognized, would favorably affect the Company's effective tax rate.

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits follows:

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

Year ended December 31,

2 unchanged sentences

Additions based on tax positions related to the current year 3,406 2,397

Settlements with taxing authorities — ( 247 )

Reductions for tax positions of prior years ( 571 ) ( 885 )

1 unchanged sentence

Gross balance - end of year $ 17,856 18,182

All the reductions shown in the table above that are due to prior year tax positions and the lapse of statutes of limitations impacted the effective tax rate.

All the reductions shown in the table above which are due to prior year tax positions and the lapse of statutes of limitations impacted the effective tax rate.

The Company's policy is to recognize interest and penalties accrued on uncertain tax positions as part of interest expense and other expense, respectively.

As of December 31, 2025 and 2024, $ 5.2 million and $ 5.6 million in accrued interest and penalties, respectively, were included in “other liabilities” on the consolidated balance sheets.

The Company recognized interest expense of $ 0.9 million and $ 0.8 million, and interest benefits of $ 1.1 million related to uncertain tax positions for the years ended December 31, 2024, 2023, and 2022, respectively.

The Company recognized interest benefits of $ 0.4 million, and interest expense of $ 0.9 million and $ 0.8 million, related to uncertain tax positions for the years ended

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

December 31, 2025, 2024, and 2023, respectively.

The impact to the consolidated statements of income related to penalties for uncertain tax positions was not significant for the years 2025, 2024, and 2023.

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Provision for income tax expense $ 127,986 52,669 19,385

The differences between the income tax provision computed at the statutory federal corporate tax rate and the financial statement provision for income taxes are shown below:

The table below presents the updated income tax disclosure requirements for 2025.

The reconciliation of the provision for income taxes, from the federal statutory rate to the actual effective tax rate, expressed in both amounts and percentages, for the year ended December 31, 2025 is shown below:

Amount Percentage

Federal income tax statutory rate $ 116,857 21.0 %

State tax, net of federal benefit (a) 16,124 2.9

Changes in valuation allowances 461 0.1

Nontaxable or nondeductible items 314 0.0

Tax credits ( 6,296 ) ( 1.1 )

Changes in unrecognized tax benefits ( 176 ) ( 0.0 )

Foreign tax effects ( 81 ) ( 0.0 )

Other 783 0.1

Total tax provision and effective tax rate $ 127,986 23.0 %

The components of income (loss) before taxes were attributable to the following regions:

Domestic $ 558,019

Foreign ( 1,559 )

Total income before income taxes $ 556,460

(a) State taxes in California, Nebraska, and New York made up the majority (greater than 50%) of the tax effect in this category.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

As previously presented for the years ended December 31, 2024 and 2023, the reconciliation of the provision for income taxes from the federal statutory rate to the actual effective tax rate is presented below by percentage only.

Year ended December 31,

2024 2023 2022

Tax expense at federal rate 21.0 % 21.0 %

5 unchanged sentences

Effective tax rate 22.3 % 17.8 %

The following table presents income taxes paid (net of refunds received) for the year ended December 31, 2025:

federal $ 44,000

state and local:

California 5,052

New York 4,987

Total $ 68,863

AND SUBSIDIARIES

1 unchanged sentence

(Dollars in thousands, except share amounts, unless otherwise noted)

The tax effect of temporary differences that give rise to deferred tax assets and liabilities include the following:

The tax effect of temporary differences that gives rise to deferred tax assets and liabilities include the following:

As of December 31,

1 unchanged sentence

Tax credit carryforwards $ 59,894 30,252

Student loans 20,354 16,489

Loan receivables 26,549 20,354

Deferred revenue 16,307 18,322

1 unchanged sentence

Stock compensation 6,531 6,541

Intangible assets 4,778 987

Net operating losses 4,484 4,556

Intangible assets 3,829 4,778

Lease liability 3,060 2,685

5 unchanged sentences

Debt and equity investments 10,759 12,015

Basis in certain derivative contracts 11,614 26,139

Depreciation 7,801 6,229

Prepaid expenses 7,593 5,615

Basis in certain derivative contracts 4,839 11,614

Lease right of use asset 2,270 2,573

1 unchanged sentence

Securitization 72 170

Other — 3,784

Total gross deferred tax liabilities 93,210 111,751

15 unchanged sentences

• Education Technology Services and Payments

• Asset Generation and Management, part of the NFS division as described below

• Nelnet Bank, part of the NFS division as described below

• Asset Generation and Management, part of the NFS division

• Nelnet Bank, part of the NFS division

The Company earns fee-based revenue through its Loan Servicing and Systems and Education Technology Services and Payments operating segments;

4 unchanged sentences

The Company’s executive officers (the "chief operating decision maker") evaluate the performance of the Company’s operating segments based on their financial results prepared in conformity with U.S.

In November 2023, the FASB issued accounting guidance which improves reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit (referred to as the “significant expense principle”).

The Company adopted the standard effective for the year ended December 31, 2024 annual financial statements.

The guidance is applied retrospectively for all prior periods presented in the financial statements.

There is limited impact to the Company’s financial statement disclosures due to the segment expense detail previously disclosed for each reportable segment.

The Nelnet Financial Services division includes the reportable segments of AGM and Nelnet Bank and the following other non-reportable operating segments.

The operating results of the below items are included as a reconciling item from the operating results of the Company’s reportable segments to the consolidated financial statements.

• The operating results of WRCM, the Company's SEC-registered investment advisor subsidiary

• The operating results of Nelnet Insurance Services, which primarily includes multiple reinsurance treaties on property and casualty policies

• The operating results of the Company’s investment activities in real estate

• The operating results of the Company’s investment debt securities (primarily student loan and other asset-backed securities) and interest expense incurred on debt used to finance such investments

• Nelnet Insurance Services, which primarily includes multiple reinsurance treaties on property and casualty policies

• WRCM, the Company's SEC-registered investment advisor subsidiary

• The Company’s ownership and activities in real estate

• The Company’s ownership and management of its bond portfolio (primarily student loan and other asset-backed securities)

The accounting policies of the Company’s operating segments are the same as those described in the summary of significant accounting policies.

2 unchanged sentences

Income taxes are allocated based on 24 % of income before taxes for each individual operating segment, except for Nelnet Bank, which reflects Nelnet Bank’s actual tax expense/benefit as allocated and reflected in its Call Report filed with the Federal Deposit Insurance Corporation.

The difference between the consolidated income tax expense and the sum of taxes calculated for each operating segment is included in income taxes in Corporate and Other Activities.

Other business activities and operating segments that are not reportable and not part of the NFS division, as described in note 1, are combined and included in Corporate and Other Activities.

The difference between the consolidated income tax expense and the sum of taxes calculated for each operating segment is included in income taxes in Corporate and Other Activities (“Corporate”).

Other business activities and operating segments that are not reportable and not part of the NFS division are combined and included in Corporate, as described in note 1.

Segment Results

5 unchanged sentences

Reportable Segments Reconciling Items

Loan Servicing and Systems Education Technology Services and Payments Asset

Loan Servicing and Systems (LSS) Education Technology Services and Payments (ETSP) Asset

Generation and

7 unchanged sentences

Less provision (negative provision) for loan losses — — 49,261 18,590 67,851 — — — 67,851

Net interest income after provision for loan losses 4,877 29,891 135,382 12,598 182,748 45,520 9,986 — 238,255

Less provision for beneficial interests — — 11,311 — 11,311 — — — 11,311

Net interest income after provision 2,441 26,476 150,413 40,828 220,158 44,418 10,771 — 275,347

Other income (expense):

LSS revenue 509,089 — — — 509,089 — — — 509,089

Intersegment revenue 24,493 220 — — 24,713 — — ( 24,713 ) —

ETSP revenue — 507,150 — — 507,150 — — — 507,150

Intersegment revenue 22,158 265 — — 22,423 — — ( 22,423 ) —

Reinsurance premiums earned — — — — — 107,502 — — 107,502

1 unchanged sentence

Other, net 459 — 27,235 3,324 31,018 8,928 57,244 397 97,587

Loss on sale of loans, net — — ( 1,643 ) — ( 1,643 ) — — — ( 1,643 )

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

Derivative settlements, net — — 2,094 606 2,700 — — — 2,700

8 unchanged sentences

Servicing fees 29,266 3,191 32,457 ( 32,457 ) —

Impairment expense — 1,145 — — 1,145 4,001 24,466 — 29,612

Other expenses (a) 46,273 37,962 6,483 7,487 98,205 5,104 61,975 46,284 211,568

1 unchanged sentence

Total operating expenses 430,203 244,027 47,066 26,336 747,632 106,378 95,502 ( 22,424 ) 927,088

Impairment expense and provision for beneficial interests 736 — 39,491 — 40,227 — 2,402 — 42,629

Total expenses 474,050 399,177 85,055 23,110 981,392 61,038 157,033 ( 24,713 ) 1,174,750

Income (loss) before income taxes 96,389 112,957 126,480 14,613 350,439 54,470 121,025 398 526,332

1 unchanged sentence

Net income (loss) 73,255 85,837 96,145 11,051 266,288 41,520 90,140 398 398,346

Net loss (income) attributable to noncontrolling interests — 158 — — 158 ( 463 ) 8,512 ( 77 ) 8,130

Net (income) loss attributable to noncontrolling interests — 45 ( 85 ) — ( 40 ) ( 511 ) 31,077 ( 398 ) 30,128

Net income (loss) attributable to Nelnet, Inc.

2 unchanged sentences

(a) Other expenses for each reportable segment includes:

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

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

AGM - trustee fees and professional fees.

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

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

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

AGM - trustee and professional fees.

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

AND SUBSIDIARIES

3 unchanged sentences

Reportable Segments Reconciling Items

Loan Servicing and Systems Education Technology Services and Payments Asset

Loan Servicing and Systems (LSS) Education Technology Services and Payments (ETSP) Asset

Generation and

7 unchanged sentences

Less provision (negative provision) for loan losses — — 27,691 26,916 54,607 — — — 54,607

Net interest income after provision for loan losses 4,845 26,962 154,434 14,680 200,921 45,110 10,563 — 256,594

Less provision for beneficial interests — — 39,491 — 39,491 — — — 39,491

Net interest income after provision 4,877 29,891 95,891 12,598 143,257 45,520 9,986 — 198,764

Other income (expense):

LSS revenue 482,408 — — — 482,408 — — — 482,408

Intersegment revenue 28,911 253 — — 29,164 — — ( 29,164 ) —

ETSP revenue — 486,962 — — 486,962 — — — 486,962

Intersegment revenue 24,493 220 — — 24,713 — — ( 24,713 ) —

Reinsurance premiums earned — — — — — 62,923 — — 62,923

1 unchanged sentence

Other, net 2,769 — 14,236 2,951 19,956 8,313 31,613 77 59,959

Loss on sale of loans, net — — ( 17,662 ) — ( 17,662 ) — — — ( 17,662 )

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

Derivative settlements, net — — 5,217 917 6,134 — — — 6,134

8 unchanged sentences

Servicing fees 31,591 1,373 32,964 ( 32,964 ) —

Impairment expense 736 — — — 736 — 2,402 — 3,138

Other expenses (a) 43,282 32,281 4,152 6,972 86,687 3,352 53,581 45,883 189,503

1 unchanged sentence

Total operating expenses 472,161 226,414 45,564 23,110 767,249 61,038 79,360 ( 24,713 ) 882,934

Impairment expense and provision for beneficial interests 296 4,310 — — 4,606 — 27,319 — 31,925

Total expenses 476,583 399,425 51,743 15,104 942,855 20,886 177,614 ( 29,164 ) 1,112,190

Income (loss) before income taxes 40,497 117,896 75,202 ( 1,942 ) 231,653 55,718 ( 58,865 ) 77 228,584

1 unchanged sentence

Net income (loss) 30,778 89,563 57,154 ( 1,363 ) 176,132 42,457 ( 42,751 ) 77 175,915

Net loss (income) attributable to noncontrolling interests — 109 — — 109 ( 568 ) 40,955 — 40,496

Net (income) loss attributable to noncontrolling interests — 158 — — 158 ( 463 ) 8,512 ( 77 ) 8,130

Net income (loss) attributable to Nelnet, Inc.

3 unchanged sentences

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

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

AGM - trustee fees and professional fees.

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

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

AGM - trustee and professional fees.

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

AND SUBSIDIARIES

3 unchanged sentences

Reportable Segments Reconciling Items

Loan Servicing and Systems Education Technology Services and Payments Asset

Loan Servicing and Systems (LSS) Education Technology Services and Payments (ETSP) Asset

Generation and

7 unchanged sentences

Less provision (negative provision) for loan losses — — ( 360 ) 8,475 8,115 — — — 8,115

Net interest income after provision for loan losses 2,678 9,377 231,524 13,078 256,657 18,403 2,635 — 277,696

Less provision for beneficial interests — — — — — — — — —

Net interest income after provision 4,845 26,962 154,434 14,680 200,921 45,110 10,563 — 256,594

Other income (expense):

LSS revenue 517,954 — — — 517,954 — — — 517,954

Intersegment revenue 33,170 81 — — 33,251 — — ( 33,251 ) —

ETSP revenue — 463,311 — — 463,311 — — — 463,311

Intersegment revenue 28,911 253 — — 29,164 — — ( 29,164 ) —

Reinsurance premiums earned — — — — — 20,067 — — 20,067

1 unchanged sentence

Other, net 2,587 — ( 6,393 ) 1,095 ( 2,711 ) 6,581 ( 95,859 ) — ( 91,989 )

Loss on sale of loans, net — — ( 8,565 ) — ( 8,565 ) — — — ( 8,565 )

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

Derivative settlements, net — — 24,588 484 25,072 — — — 25,072

8 unchanged sentences

Servicing fees 37,389 509 37,898 ( 37,898 ) —

Impairment expense 296 4,310 — — 4,606 — 27,319 — 31,925

Other expenses (a) 39,323 34,133 4,988 4,994 83,438 2,391 56,307 30,935 173,070

1 unchanged sentence

Total operating expenses 476,583 228,242 51,743 15,104 771,672 20,886 129,038 ( 29,164 ) 892,431

Impairment expense and provision for beneficial interests 5,511 2,239 — 214 7,964 — 7,559 — 15,523

Total expenses 509,394 343,896 54,038 11,346 918,674 2,166 130,741 ( 33,251 ) 1,018,331

Income (loss) before income taxes 77,714 91,101 80,636 ( 368 ) 249,083 50,872 ( 231,241 ) — 68,715

1 unchanged sentence

Net income (loss) 59,063 69,210 61,283 ( 215 ) 189,341 38,799 ( 178,812 ) — 49,330

Net loss (income) attributable to noncontrolling interests — ( 3 ) — — ( 3 ) ( 515 ) 18,672 — 18,154

Net (income) loss attributable to noncontrolling interests — 109 — — 109 ( 568 ) 40,955 — 40,496

Net income (loss) attributable to Nelnet, Inc.

2 unchanged sentences

(a) Other expenses for each reportable segment includes:

LSS - occupancy, communications, professional fees, collection costs, software, computer services and subscriptions, travel, and provision for losses.

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

AGM - trustee fees and professional fees.

Bank - marketing, consulting and professional fees, computer services and subscriptions, and insurance.

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

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

AGM - trustee and professional fees.

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

AND SUBSIDIARIES

10 unchanged sentences

Revenue is allocated to the distinct service period, typically a month, and recognized as control transfers as customers simultaneously receive and consume benefits.

The Company may incur contract fulfillment or acquisition costs and records such costs within “costs incurred to provide loan servicing” in the consolidated statements of income.

The Company may incur contract fulfillment or acquisition costs and records such costs within “loan servicing contract fulfillment and acquisition costs” in the consolidated statements of income.

• Software services revenue - Software services revenue consideration is determined from individual contracts with customers and includes license and maintenance fees associated with loan software products, generally in a remote hosted environment, and computer and software consulting.

8 unchanged sentences

2025 2024 2023

Government loan servicing $ 380,921 412,478 423,066

Government loan servicing (a) $ 363,970 380,921 412,478

Private education and consumer loan servicing 94,472 63,453 48,984

3 unchanged sentences

Loan servicing and systems revenue $ 509,089 482,408 517,954

Costs incurred to provide loan servicing is primarily the amortization of previously capitalized contract fulfillment costs.

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

In 2024, the Company recognized $ 10.9 million of non-recurring revenue to reflect a settlement related to certain provisions included in the legacy contract concerning inflation adjustments.

Loan servicing contract fulfillment and acquisition costs is primarily the amortization of previously capitalized contract fulfillment costs.

The costs were pre-contract costs incurred to enhance the resources of the Company to satisfy future performance obligations and are expected to be recovered.

The contract fulfillment costs were $ 21.1 million as of December 31, 2024 which is included in "other assets" on the consolidated balance sheets.

The contract fulfillment costs were $ 23.8 million and $ 21.1 million as of December 31, 2025 and 2024, respectively, which are included in "other assets" on the consolidated balance sheets.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

Education Technology Services and Payments Revenue

2 unchanged sentences

The management of payment processing is considered a distinct performance obligation when sold with the remote hosted environment.

Revenue for each performance obligation is allocated to the

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

distinct service period, the academic school term, and recognized ratably over the service period as customers simultaneously receive and consume benefits.

Revenue for each performance obligation is allocated to the distinct service period, the academic school term, and recognized ratably over the service period as customers simultaneously receive and consume benefits.

• Payment processing - Payment processing consideration is determined from individual contracts with customers and includes electronic transfer and credit card processing, reporting, virtual terminal solutions, and specialized integrations to business software for education and non-education markets.

23 unchanged sentences

Depending upon the transaction type, the fees are a percentage of the transaction’s dollar value, a fixed amount, or a combination of the two methods.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

Solar Construction Revenue

Solar construction revenue is derived principally from individual contracts with customers for engineering, procurement, and construction (EPC) of solar facilities for both commercial and residential customers.

Solar construction revenue is derived principally from individual contracts with customers for engineering, procurement, and construction (EPC) of solar facilities for commercial customers.

Solar construction is a single performance obligation which requires a significant level of integration.

3 unchanged sentences

The Company recognizes changes in estimated total costs on a cumulative catch-up basis in the period in which the changes are identified.

Such changes in estimates can result in the recognition of revenue in a current period for performance obligations which were satisfied or partially

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

satisfied in prior periods.

Such changes in estimates can result in the recognition of revenue in a current period for performance obligations which were satisfied or partially satisfied in prior periods.

Changes in estimates may also result in the reversal of previously recognized revenue if the current estimate adversely differs from the previous estimate.

Nelnet Renewable Energy will recognize a contract asset or liability depending on the progression of the project to date compared with the amount billed to date.

The Company will recognize a contract asset or liability depending on the progression of the project to date compared with the amount billed to date.

The following table presents disaggregated revenue by customer type:

The amounts listed for 2022 reflect activity subsequent to the GRNE Solar acquisition on July 1, 2022.

Year ended December 31, 2024 Year ended December 31, 2023 Period from July 1, 2022 - December 31, 2022

Commercial revenue $ 53,269 20,969 17,677

Residential revenue (a) 3,300 10,700 6,866

Year ended December 31,

2025 2024 2023

Commercial revenue (a) $ 14,341 53,269 20,969

Residential revenue (b) 30 3,300 10,700

Solar construction revenue $ 14,371 56,569 31,669

(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 continue to decline from historical amounts as existing customer contracts are completed.

(a) The Company sold its ownership interests in Nelnet Renewable Energy during the fourth quarter of 2025.

The Company has a handful of remaining construction contracts which it retained to complete.

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

Cost to provide solar construction services include direct costs associated with completing a solar facility, including labor, third-party contractor fees, permitting, engineering fees, and construction material.

4 unchanged sentences

2025 2024 2023

ALLO preferred return $ 17,486 9,120 8,584

Investment activity, net $ 61,072 12,438 ( 8,586 )

ALLO preferred return 14,548 17,486 9,120

Solar consulting fee income 13,127 6,134 —

Borrower late fee income 11,664 8,828 8,997

Investment advisory services (WRCM) 5,934 6,760 6,026

Administration/sponsor fee income 6,400 5,823 6,793

Management fee revenue 2,769 2,587 2,543

Loss from ALLO voting membership interest investment ( 10,693 ) ( 65,277 ) ( 67,966 )

Investment advisory services (WRCM) 6,366 5,934 6,760

Loss from ALLO voting membership interest — ( 10,693 ) ( 65,277 )

Loss from solar investments, net ( 29,029 ) ( 6,477 ) ( 59,645 )

(Loss) gain on debt repurchases ( 4,849 ) 54 815

Loss on sale of loans, net ( 1,720 ) ( 1,643 ) ( 17,662 )

Other 20,008 22,075 26,696

Other, net $ 97,587 59,959 ( 91,989 )

• Solar consulting fee income - Solar consulting fee income is earned by the renewable energy solar developments operating segment for due diligence services provided to developers of solar projects to support project qualification.

Revenue is allocated to the distinct service period, based on when the transaction is completed.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

• Borrower late fee income - Late fee income is earned primarily by the education lending subsidiaries in the AGM operating segment.

Revenue is allocated to the distinct service period, based on when each transaction is completed.

• Investment advisory services - Investment advisory services are provided by WRCM, the Company's SEC-registered investment advisor subsidiary, under various arrangements.

The Company earns monthly fees based on the monthly outstanding balance of investments and certain performance measures, which are recognized monthly as the uncertainty of the transaction price is resolved.

• Administration/sponsor fee income - Administration and sponsor fee income is earned by the AGM operating segment as administrator and sponsor for certain securitizations.

Revenue is allocated to the distinct service period, typically a month, and recognized as control transfers as customers simultaneously receive and consume benefits.

• Management fee revenue - Management fee revenue is earned by the LSS operating segment for providing administrative support.

Revenue is allocated to the distinct service period, based on when each transaction is completed.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share amounts, unless otherwise noted)

• Investment advisory services - Investment advisory services are provided by WRCM, the Company's SEC-registered investment advisor subsidiary, under various arrangements.

Deferred Revenue

4 unchanged sentences

Recognition of revenue ( 2,808 ) ( 147,405 ) ( 40,676 ) ( 190,889 )

Business acquisitions — 3,917 1,997 5,914

Balance as of December 31, 2023 3,456 51,724 17,373 72,553

5 unchanged sentences

Balance as of December 31, 2025 $ 26,467 55,058 10,991 92,516

Reinsurance premiums written and earned and loss reserves, commissions, and broker fees for the years ended December 31, 2024 and 2023 is summarized below.

Reinsurance activity for the year ended December 31, 2022 was not material.

Reinsurance premiums written and earned and loss reserves, commissions, and broker fees is summarized below.

Year ended December 31,

2025 2024 2023

Premiums written:

9 unchanged sentences

Ceded ( 68,051 ) ( 54,614 ) ( 17,975 )

Net loss reserve, commissions, and broker fees $ 55,246 16,781

The Company’s loss reserve balance, net of amounts ceded to reinsurers, was $ 33.1 million and $ 8.7 million as of December 31, 2024 and 2023, respective, which is included in "other liabilities" on the consolidated balance sheets.

Reinsurance losses and underwriting expenses $ 93,551 55,246 16,781

The Company’s loss reserve balance, net of amounts ceded to reinsurers, was $ 72.3 million and $ 33.1 million as of December 31, 2025 and 2024, respectively, which is included in "other liabilities" on the consolidated balance sheets.

AND SUBSIDIARIES

6 unchanged sentences

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

In April 2023, Nelnet Servicing received a contract award from the Department, pursuant to which it was selected to provide continued servicing capabilities for the Department's student aid recipients under a new Unified Servicing and Data Solution (USDS) contract which replaced the legacy Department student loan servicing contract.

In April 2023, Nelnet Servicing received a contract award from the Department, pursuant to which it was selected to provide continued servicing capabilities for the Department’s student aid recipients under a new Unified Servicing and Data Solution (USDS) contract which replaced its legacy Department student loan servicing contract.

The USDS contract became effective in April 2023 and has a five-year base period, with 2 two-year and 1 one-year possible extensions.

The Department's total loan servicing volume of existing borrowers was allocated by the Department to Nelnet Servicing and four other third-party servicers that were awarded a USDS contract.

The Department's total loan servicing volume of existing borrowers was allocated by the Department to the Company and four other third-party servicers that were awarded a USDS contract.

Servicing under the USDS contract went live on April 1, 2024 and the Company recognized revenue in accordance with this new contract beginning in the second quarter of 2024.

The Company earned revenue for servicing borrowers under the legacy servicing contract with the Department through March 31, 2024.

The Company earns less revenue from the Department on a per-borrower blended basis under the new USDS servicing contract as compared with the legacy servicing contract.

The following table presents supplemental balance sheet information related to leases:

77 unchanged sentences

Loan Purchases

The Company purchased $ 104.2 million (par value) and $ 467.6 million (par value) of federally insured loans in 2024 and 2023, respectively, from Union Bank.

The Company purchased $ 8.1 million (par value) of private education loans in 2022 from Union Bank.

The premium paid by the Company on the private loan acquisitions was $ 0.2 million in 2022.

The Company purchased $ 686.0 million (par value), $ 104.2 million (par value), and $ 467.6 million (par value) of federally insured loans in 2025, 2024, and 2023, respectively, from Union Bank.

The premiums paid by the Company for loan purchases in 2025, 2024, and 2023 were insignificant.

11 unchanged sentences

Accordingly, the participation interests sold are not included on the Company's consolidated balance sheets.

Loans sold under this participation agreement during 2025, 2024, and 2023 totaled $ 949.1 million, $ 578.6 million, and $ 57.5 million, respectively.

AND SUBSIDIARIES

30 unchanged sentences

STFIT Deposits at Nelnet Bank

The Union Bank Trust Department (STFIT) held a deposit balance at Nelnet Bank for $ 0.1 million and $ 52.1 million as of December 31, 2024 and December 31, 2023, respectively.

The Union Bank Trust Department (STFIT) held a deposit balance at Nelnet Bank for $ 37.4 million and $ 0.1 million as of December 31, 2025 and 2024, respectively.

Lease Arrangements

Prior to the lease agreement expiration in 2023, Union Bank leased approximately 4,100 square feet in the Company's corporate headquarters building.

Union Bank paid the Company approximately $ 55,000 and $ 82,000 for commercial rent and storage income during 2023 and 2022, respectively.

Union Bank paid the Company approximately $ 55,000 for commercial rent and storage income during 2023.

AND SUBSIDIARIES

12 unchanged sentences

Union Bank has established various trusts whereby Union Bank serves as trustee for the purpose of purchasing, holding, managing, and selling investments in student loan asset-backed securities.

WRCM, an SEC-registered investment advisor and a non-wholly owned subsidiary of the Company, has a management agreement with Union Bank under which WRCM performs various advisory and management services on behalf of Union Bank with respect to investments in securities by the trusts, including identifying securities for purchase or sale by the trusts.

WRCM has a management agreement with Union Bank under which WRCM performs various advisory and management services on behalf of Union Bank with respect to investments in securities by the trusts, including identifying securities for purchase or sale by the trusts.

The agreement provides that Union Bank will pay to WRCM annual fees of 10 basis points to 25 basis points on the outstanding balance of the investments in the trusts.

6 unchanged sentences

Per the terms of the agreements, Union Bank pays WRCM five basis points of the aggregate value of the assets of the trusts as of the last day of each calendar quarter.

As of December 31, 2024, WRCM was the investment advisor with respect to a total 450,097 shares and 4.2 million shares of the Company's Class A and Class B common stock, respectively, held directly by these trusts.

As of December 31, 2025, WRCM was the investment advisor with respect to a total of 401,695 shares and 4.1 million shares of the Company's Class A and Class B common stock, respectively, held directly by these trusts.

For the years ended December 31, 2025, 2024, and 2023, the Company earned approximately $ 286,000 , $ 257,000 , and $ 249,000 , respectively, of fees under these agreements.

WRCM has established private investment funds for the primary purpose of purchasing, selling, investing, and trading, directly or indirectly, in student loan asset-backed securities, and to engage in financial transactions related thereto.

WRCM has established private investment funds for the primary purpose of purchasing, selling, investing, and trading, directly or indirectly, in loan asset-backed securities, and to engage in financial transactions related thereto.

Dunlap, Jeffrey R.

4 unchanged sentences

As of December 31, 2025, the outstanding balance of investments in these funds was $ 83.6 million.

The Company paid Union Bank $ 0.3 million in each of 2024, 2023, and 2022 as custodian of the funds.

Transactions with Agile Sports Technologies, Inc.

(doing business as "Hudl")

The Company paid Union Bank $ 0.2 million in 2025, and $ 0.3 million in 2024 and 2023 as custodian of the funds.

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

1 unchanged sentence

Dunlap, along with his children, held a combined direct and indirect equity ownership interests in Hudl of approximately 22 % and 4 %, respectively.

In December 2024 and February 2023, the Company purchased stock from existing Hudl shareholders for total consideration of $ 3.3 million and $ 31.5 million, respectively.

In January 2025, December 2024, and February 2023, the Company purchased stock from existing Hudl shareholders for total consideration of $ 3.8 million, $ 3.3 million, and $ 31.5 million, respectively.

See note 7 for additional information on the 2025 transaction and the Company’s accounting for its investment in Hudl.

2 unchanged sentences

(Dollars in thousands, except share amounts, unless otherwise noted)

The Company makes investments to further diversify the Company both within and outside of its historical core education-related businesses, including investments in real estate.

Recent real estate investments have been focused on the development of commercial properties in the Midwest, and particularly in Lincoln, Nebraska, where the Company's headquarters are located.

The Company owns 25 % of TDP, which is the entity that developed and owns a building in Lincoln's Haymarket District that is the headquarters of Hudl, where Hudl is the primary tenant and Nelnet is a tenant.

During 2024, 2023, and 2022, the Company paid Hudl approximately $ 594,000 , $ 558,000 , and $ 158,000 respectively, to provide lunches for Nelnet’s associates in Hudl’s employee cafeteria and use of certain common area in the building.

Solar Tax Equity Investments

The Company has co-invested in Company-managed limited liability companies with related parties that invest in solar tax equity investment (as summarized below).

The Company makes contributions to further diversify the Company both within and outside of its historical core education-related businesses, including contributions in real estate partnerships.

Recent real estate contributions have been focused on the development of commercial properties in the Midwest, and particularly in Lincoln, Nebraska, where the Company's headquarters are located.

During 2025, 2024, and 2023, the Company paid Hudl approximately $ 298,000 , $ 594,000 , and $ 558,000 , respectively, to provide lunches for Nelnet’s associates in Hudl’s employee cafeteria and for use of certain common areas in the building.

Solar Tax Equity Partnerships

The Company has co-invested in Company-managed limited liability companies with related parties that have made contributions in solar tax equity partnerships (as summarized below).

As part of these transactions, the Company receives management and performance fees under a management agreement.

Entity/Relationship Investment amount Revenue recognized by the

Entity/Relationship Contribution amount Revenue recognized by the

Company from management and performance fees (a)

6 unchanged sentences

Muhleisen) — 787,606 2,212,394 106,850 94,019 42,769

South Central State Bank (directly and indirectly owned by F&M and Mr.

Dunlap) — 262,535 737,465 8,645 8,000 4,000

Infovisa, Inc.

6 unchanged sentences

Muhleisen) 516,213 1,261,305 737,465 34,298 15,682 7,846

(a) In addition to the co-investments identified above, the related parties in the above table have also invested directly in tax equity solar investments in which are managed by the Company, and the Company receives management and performance fees on such activity.

(a) In addition to the co-investments identified above, the related parties in the above table have also contributed directly in tax equity solar partnerships in which are managed by the Company, and the Company receives management and performance fees on such activity.

The fees recognized by the Company for these projects are included in the above table.

Stock Repurchase

On August 25, 2025, the Company repurchased, in a privately negotiated transaction under the Company’s existing stock repurchase program, a total of 41,929 shares of the Company’s Class A common stock from a certain significant shareholder.

The shares were repurchased at a discount to the closing market price of the Company’s Class A common stock as of August 21, 2025, and the transaction was separately approved by the Company’s Board of Directors and its Nominating and Corporate Governance Committee.

On November 13, 2023, the Company repurchased, in a privately negotiated transaction under the Company’s existing stock repurchase program, a total of 283,112 shares of the Company’s Class A common stock from certain family members of Mr.

The shares were repurchased at a discount to the closing market price of the Company’s Class A common stock as of November 10, 2023, and the transaction was separately approved by the Company’s Board of Directors and its Nominating and Corporate Governance Committee.

Transactions with Michael Dunlap

Through December 2025, the Company owned an 82.5 % interest in an aircraft due to the frequent business travel needs of its executives, as well as the limited availability of commercial air service in Lincoln, Nebraska, where the Company's headquarters are located.

An entity owned by Michael Dunlap (MSD) held the remaining 17.5 % ownership interest.

In December 2025, the Company and MSD disposed of the aircraft, generating total proceeds of $ 5.5 million, which were distributed in proportion to each party’s ownership interest.

Earlier in 2025, the Company and MSD entered into a similar arrangement for the acquisition of a new aircraft.

Under this agreement, the Company’s holds an 80.0 % ownership interest and MSD holds a 20.0 % ownership interest.

During 2025, the parties completed the purchase of the aircraft for a total cost of $ 11.7 million, with costs allocated based on respective ownership interests.

AND SUBSIDIARIES

20 unchanged sentences

(b) In accordance with the Fair Value Measurements Topic of the FASB Accounting Standards Codification, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.

The fair value of derivative financial instruments is determined using a market approach in which derivative pricing models use the stated terms of the contracts and observable yield curves and volatilities from active markets.

When determining the fair value of derivatives, Nelnet Bank takes into account counterparty credit risk for positions where it is exposed to the counterparty on a net basis by assessing exposure net of collateral held.

When determining the fair value of derivatives, the Company takes into account counterparty credit risk for positions where it is exposed to the counterparty on a net basis by assessing exposure net of collateral held.

The net exposures for each counterparty are adjusted based on market information available for the specific counterparty.

43 unchanged sentences

The remaining financial assets and liabilities were estimated using the following methods and assumptions:

Loans Receivable

Fair values for loans receivable were determined by modeling loan cash flows using stated terms of the assets and internally developed assumptions.

The significant assumptions used to project cash flows are prepayment speeds, default rates, cost of

AND SUBSIDIARIES

1 unchanged sentence

(Dollars in thousands, except share amounts, unless otherwise noted)

funds, required return on equity, and future interest rate and index relationships.

Loans Receivable

Fair values for loans receivable were determined by modeling loan cash flows using stated terms of the assets and internally developed assumptions.

The significant assumptions used to project cash flows are prepayment speeds, default rates, cost of funds, required return on equity, and future interest rate and index relationships.

A number of significant inputs into the models are internally derived and not observable to market participants.

24 unchanged sentences

The Company is subject to various claims, lawsuits, and proceedings that arise in the normal course of business.

These matters frequently involve disputes with other business entities and claims by student loan borrowers disputing the manner in which their student loans have been serviced or the accuracy of reports to credit bureaus, claims by student loan borrowers or other consumers alleging that state or Federal privacy, cybersecurity, and other consumer protection laws have been violated in the process of servicing loans or conducting other business activities.

In addition, from time to time, the Company receives information and document requests or demands from state or federal regulators concerning its business practices.

The Company cooperates with these inquiries and responds to the requests or demands.

While the Company cannot predict the ultimate outcome of any claim, regulatory examination, inquiry, or investigation, the Company believes its activities have materially complied with applicable law, including the Higher Education Act, the rules and regulations adopted by the Department thereunder, and the Department's guidance regarding those rules and regulations, and applicable consumer protection laws and

AND SUBSIDIARIES

1 unchanged sentence

(Dollars in thousands, except share amounts, unless otherwise noted)

consumers alleging that state or Federal privacy, cybersecurity, and other consumer protection laws have been violated in the process of servicing loans or conducting other business activities.

In addition, from time to time, the Company receives information and document requests or demands from state or federal regulators concerning its business practices.

The Company cooperates with these inquiries and responds to the requests or demands.

On the basis of present information, anticipated insurance coverage, and advice received from counsel, it is the opinion of the Company's management that the disposition or ultimate determination of claims, lawsuits, and proceedings such as those discussed above will not have a material adverse effect on the Company's business, financial position, or results of operations.

22 unchanged sentences

Retained earnings 3,681,333 3,340,540

Accumulated other comprehensive earnings (loss), net 1,470 ( 20,119 )

Accumulated other comprehensive earnings, net 2,619 1,470

Total Nelnet, Inc.

17 unchanged sentences

Derivative market value adjustments and derivative settlements, net ( 3,195 ) 10,639 ( 15,662 )

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

Total other income (expense), net 458,555 155,474 28,264

13 unchanged sentences

Net income $ 428,155 183,331 89,616

Other comprehensive income (loss):

Net changes related to equity in subsidiaries other comprehensive income (loss) $ 8,091 9,473 ( 11,188 )

Other comprehensive income:

Net changes related to equity in subsidiaries other comprehensive (loss) income $ ( 675 ) 8,091 9,473

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

Unrealized holding gains (losses) arising during period, net 19,242 6,412 ( 42,793 )

Reclassification of (gains) losses recognized in net income, net ( 1,481 ) 3,818 ( 3,894 )

Unrealized holding gains arising during period, net 1,973 19,242 6,412

Reclassification of losses (gains) recognized in net income, net 425 ( 1,481 ) 3,818

Income tax effect ( 574 ) 1,824 ( 4,263 ) 13,498 ( 2,456 ) 7,774

Other comprehensive income (loss) 21,589 17,247 ( 46,670 )

Other comprehensive income 1,149 21,589 17,247

Comprehensive income 429,304 204,920 106,863

13 unchanged sentences

Net income 428,155 183,331 89,616

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

Depreciation and amortization 635 621 620

1 unchanged sentence

Proceeds from termination of derivative instruments — — 164,079

Proceeds from (payments to) clearinghouse - initial and variation margin, net 2,374 ( 213,923 ) 148,691

(Payments to) proceeds from clearinghouse - initial and variation margin, net ( 5,910 ) 2,374 ( 213,923 )

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

Equity in earnings of subsidiaries ( 218,643 ) ( 110,381 ) ( 101,885 )

(Gain) loss on investments, net ( 53,862 ) ( 28,704 ) 64,634

Proceeds from sale of equity securities, net of purchases 7 75 42,841

Deferred income tax (benefit) expense ( 42,741 ) ( 71,424 ) 39,872

Deferred income tax expense (benefit) 553 ( 42,741 ) ( 71,424 )

Non-cash compensation expense 13,274 12,045 16,476

Impairment expense 3,575 537 2,060

Other 3,598 ( 227 ) ( 125 )

Changes in operating assets and liabilities:

Decrease (increase) in other assets 5,459 ( 18,181 ) 14,816

(Increase) decrease in other assets ( 29,144 ) 5,522 ( 18,031 )

(Decrease) increase in other liabilities ( 50,735 ) ( 4,611 ) 11,049

Total adjustments ( 506,414 ) ( 170,987 ) ( 106,220 )

Net cash provided by (used in) operating activities 12,344 ( 16,604 ) 368,701

Net cash (used in) provided by operating activities ( 78,259 ) 12,344 ( 16,604 )

Cash flows from investing activities:

1 unchanged sentence

Proceeds from sales of available-for-sale securities 116,388 278,372 569,670

Proceeds from beneficial interest in private loan securitization 7,001 6,783 345

Capital distributions from subsidiaries, net 28,539 355,790 7,340

Proceeds from beneficial interest in private loan securitizations 6,897 7,001 6,783

Capital (contributions to) distributions from subsidiaries, net ( 133,914 ) 28,539 355,790

Decrease (increase) in notes receivable from subsidiaries 47,884 37,739 ( 35,682 )

Proceeds from (payments on) subsidiary debt, net 211,961 122,999 ( 36,104 )

(Purchases of) payments on subsidiary debt, net ( 171,983 ) 211,961 122,999

Purchases of other investments and issuances of notes receivable ( 44,581 ) ( 128,583 ) ( 60,707 )

Proceeds from other investments and repayments of notes receivable 443,637 63,080 32,732

Net cash provided by (used in) investing activities 329,992 784,658 ( 474,739 )

Net cash provided by investing activities 179,313 329,992 784,658

Cash flows from financing activities:

6 unchanged sentences

Issuance of noncontrolling interest — — 2,580

Net cash (used in) provided by financing activities ( 330,244 ) ( 817,395 ) 93,522

Net increase (decrease) in cash, cash equivalents, and restricted cash 12,092 ( 49,341 ) ( 12,516 )

Net cash used in financing activities ( 110,515 ) ( 330,244 ) ( 817,395 )

Net (decrease) increase in cash, cash equivalents, and restricted cash ( 9,461 ) 12,092 ( 49,341 )

Cash, cash equivalents, and restricted cash, beginning of period 104,772 92,680 142,021

4 unchanged sentences

Non-cash investing and financing activities:

(Contributions to) distributions from subsidiary, net $ ( 27,292 ) 6,888 ( 6,068 )

(Contributions to) distributions from subsidiaries, net $ ( 315,607 ) ( 27,292 ) 6,888

Issuance of noncontrolling interest $ — — 220

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-K

Item 9A. Controls and Procedures