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Item 1. Financial Statements

2026-05-07 compared with 2025-11-06 · 257 added, 537 removed, 836 unchanged (49% of the section changed)

3 unchanged sentences

(Dollars in thousands, except share data)

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Loans and accrued interest receivable (net of allowance for loan losses of $ 155,191 and $ 132,078 , respectively)

36 unchanged sentences

issued and outstanding

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

10,616,675 shares

Additional paid-in capital 1,535 1,481

Retained earnings 3,732,931 3,681,333

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

Accumulated other comprehensive (loss) earnings, net ( 3,534 ) 2,619

Total Nelnet, Inc.

13 unchanged sentences

(Dollars in thousands, except share data)

Three months ended Nine months ended

September 30, September 30,

2025 2024 2025 2024

Three months ended

Interest income:

4 unchanged sentences

Net interest income 101,643 82,714

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

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

Less provision for loan losses 53,244 15,337

Less provision for beneficial interests 4,130 1,510

Net interest income after provision 44,269 65,867

Other income (expense):

4 unchanged sentences

Other, net 10,437 24,603

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

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

Derivative market value adjustments and derivative settlements, net 2,167 ( 5,578 )

10 unchanged sentences

Total operating expenses 233,986 217,997

Impairment expense and provision for beneficial interests 9,145 29,052 21,024 36,865

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

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

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

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

Income before income taxes 75,661 106,140

Income tax expense ( 20,061 ) ( 25,010 )

Net income 55,600 81,130

Net loss attributable to noncontrolling interests 15,526 1,430

10 unchanged sentences

(Dollars in thousands)

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

2025 2024 2025 2024

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

Other comprehensive income:

Three months ended March 31,

Net income $ 55,600 81,130

Other comprehensive loss:

Net changes related to foreign currency translation adjustments $ ( 1,197 ) ( 16 )

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

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

Unrealized holding losses arising during period, net ( 6,459 ) ( 2,767 )

Reclassification of gains recognized in net income, net ( 422 ) ( 483 )

5 unchanged sentences

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

(Loss) gain on cash flow hedge ( 156 ) 62 184 ( 570 )

Fair value adjustment during period 52 725

Income tax effect ( 12 ) 40 ( 174 ) 551

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

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

Other comprehensive loss ( 6,153 ) ( 1,899 )

Comprehensive income 49,447 79,231

Comprehensive loss attributable to noncontrolling interests 15,526 1,430

5 unchanged sentences

(Dollars in thousands, except share data)

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

Class A Class B

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

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

Other comprehensive income — — — — — — — — 829 — 829

Issuance of noncontrolling interests — — — — — — — — — 20,999 20,999

Distribution to noncontrolling interests — — — — — — — — — ( 23,145 ) ( 23,145 )

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

— — — — — — — ( 10,148 ) — — ( 10,148 )

Issuance of common stock, net of forfeitures — 46,865 — — — — 1,230 — — — 1,230

Compensation expense for stock based awards — — — — — — 2,868 — — — 2,868

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

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

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

Net income (loss) — — — — — — — 106,684 — ( 6,009 ) 100,675

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

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

Distribution to noncontrolling interests — — — — — — — — — ( 7,700 ) ( 7,700 )

Cash dividends on Class A and Class B common stock - $ 0.30 per share

— — — — — — — ( 10,834 ) — — ( 10,834 )

Issuance of common stock, net of forfeitures — 12,728 — — — — 557 — — — 557

Compensation expense for stock based awards — — — — — — 3,468 — — — 3,468

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

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

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

See accompanying notes to consolidated financial statements.

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(Dollars in thousands, except share data)

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

Class A Class B

1 unchanged sentence

Net income (loss) — — — — — — — 82,560 — ( 1,430 ) 81,130

Other comprehensive income — — — — — — — — 18,688 — 18,688

Other comprehensive loss — — — — — — — — ( 1,899 ) — ( 1,899 )

Issuance of noncontrolling interests — — — — — — — — — 2,297 2,297

5 unchanged sentences

Repurchase of common stock — ( 38,491 ) — — — — ( 4,458 ) — — — ( 4,458 )

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

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

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

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

Balance as of December 31, 2025 — 25,259,718 10,616,675 $ — 253 106 1,481 3,681,333 2,619 ( 108,563 ) 3,577,229

Net income (loss) — — — — — — — 71,126 — ( 15,526 ) 55,600

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

Other comprehensive loss — — — — — — — — ( 6,153 ) — ( 6,153 )

Issuance of noncontrolling interests — — — — — — — — — 1,838 1,838

5 unchanged sentences

Repurchase of common stock — ( 126,319 ) — — ( 2 ) — ( 10,049 ) ( 6,229 ) — — ( 16,280 )

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

Acquisition of remaining 20 % of NextGen, net of tax

Redemption of 10 % minority interests of WRCM

— — — — — — — ( 1,465 ) — ( 35 ) ( 1,500 )

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

Balance as of March 31, 2026 — 25,334,870 10,616,675 $ — 253 106 1,535 3,732,931 ( 3,534 ) ( 125,279 ) 3,606,012

See accompanying notes to consolidated financial statements.

2 unchanged sentences

(Dollars in thousands)

Nine months ended

September 30,

Three months ended

Net income attributable to Nelnet, Inc.

6 unchanged sentences

Provision for loan losses 53,244 15,337

Provision for beneficial interests 4,130 1,510

Derivative market value adjustments ( 1,587 ) 6,324

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

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

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

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

Loss from repurchases of debt, net 7,865 2

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

Loss (gain) on sale of loans, net 105 ( 909 )

Loss (gain) on investments, net 14,949 ( 8,307 )

Deferred income tax (benefit) expense ( 10,895 ) 4,316

Non-cash compensation expense 3,628 3,115

Impairment expense and provision for beneficial interests 21,024 36,865

Other ( 1,424 ) 216

Changes in operating assets and liabilities:

Decrease in loan and investment accrued interest receivable 14,894 168,795

(Increase) decrease in loan and investment accrued interest receivable ( 13,967 ) 13,488

Decrease in accounts receivable 15,334 30,087

Decrease in other assets 43,488 48,057

Increase in other assets ( 52,299 ) ( 18,835 )

Decrease in the carrying amount of ROU asset 1,005 954

2 unchanged sentences

Decrease in the carrying amount of lease liability ( 1,169 ) ( 897 )

Other 1,475 ( 481 )

Total adjustments 17,515 10,039

4 unchanged sentences

Purchases of loans from a related party ( 299,380 ) ( 136,667 )

Net proceeds from loan repayments, claims, and capitalized interest 2,081,162 2,745,084

Proceeds from loan repayments, claims, and capitalized interest, net 3,253,780 423,817

Proceeds from sale of loans 213 72,502

7 unchanged sentences

Purchases of property and equipment ( 11,550 ) ( 3,378 )

Business acquisitions, net of cash and restricted cash acquired 197,007 —

Net cash provided by investing activities $ 31,087 136,357

AND SUBSIDIARIES (Continued)

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

Nine months ended

September 30,

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

Three months ended

Cash flows from financing activities, net of acquisitions:

7 unchanged sentences

Proceeds from issuance of common stock 379 341

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

Redemption of noncontrolling interest ( 1,500 ) —

Issuance of noncontrolling interests 7,658 8,869

11 unchanged sentences

ROU assets obtained in exchange for lease obligations $ 3,700 84

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

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

Student loans and other assets acquired $ — 672,601

Borrowings and other liabilities assumed in acquisition of student loans $ — 695,243

Distribution to noncontrolling interests $ 1,622 4,886

Issuance of noncontrolling interests $ 5,820 6,572

(a) The Company utilized $ 43.8 million and $ 34.0 million of federal and state tax credits related primarily to renewable energy during the nine months ended September 30, 2025 and 2024, respectively.

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

(a) The Company utilized $ 19.6 million and $ 14.1 million of federal and state tax credits related primarily to renewable energy during the three months ended March 31, 2026 and 2025, respectively.

Supplemental disclosures of non-cash activities regarding the Company's business acquisition are contained in note 6.

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:

As of As of As of As of

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

March 31, 2026 December 31, 2025 March 31, 2025 December 31, 2024

Total cash and cash equivalents $ 240,007 295,983 220,517 194,518

9 unchanged sentences

The accompanying unaudited consolidated financial statements of Nelnet, Inc.

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

and subsidiaries (the “Company” or "Nelnet") as of March 31, 2026 and for the three months ended March 31, 2026 and 2025 have been prepared on the same basis as the audited consolidated financial statements for the year ended December 31, 2025 and, in the opinion of the Company’s management, the unaudited consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of results of operations for the interim periods presented.

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

1 unchanged sentence

Actual results could differ from those estimates.

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

Operating results for the three months ended March 31, 2026 are not necessarily indicative of the results for the year ending December 31, 2026.

The unaudited consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (the "2025 Annual Report").

Partial Redemption of ALLO Investment

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

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

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

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

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

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

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

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

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

Loans and Accrued Interest Receivable and Allowance for Loan Losses

Loans and accrued interest receivable consisted of the following:

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Non-Nelnet Bank:

Federally insured loans:

Federally insured loans (a):

Stafford and other $ 1,819,085 1,772,172

Consolidation 5,246,278 5,665,071

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

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

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

Total 7,065,363 7,437,243

Private education loans 130,217 139,209

Consumer loans and other financing receivables (b) 1,213,599 1,122,717

Non-Nelnet Bank loans 8,409,179 8,699,169

Federally insured loans:

Federally insured loans (a):

Stafford and other 23,366 23,960

Consolidation 435,205 148,360

Total (a) 178,948 —

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

Total 458,571 172,320

Private education loans 539,381 518,634

Consumer and other loans 263,498 266,608

13 unchanged sentences

$ 10,009,471 10,006,695

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

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

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

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

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

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

(a) During the first quarter of 2026, the Company's Asset Generation and Management operating segment (non-Nelnet Bank) contributed certain student loan securitization trusts to Nelnet Bank that included $ 296.0 million in federally insured loans.

(b) 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 March 31, 2026 and December 31, 2025, the balance of Pay Later receivables was $ 766.2 million and $ 744.2 million, respectively.

The following table summarizes the allowance for loan losses as a percentage of the ending loan balance for each of the Company's loan portfolios:

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Non-Nelnet Bank:

5 unchanged sentences

Consumer and other loans 5.41 % 4.55 %

(a) The allowance for loan losses as a percent of the risk sharing component of federally insured student loans not covered by the federal guaranty for Non-Nelnet Bank was 19.4 % and 20.6 % as of September 30, 2025 and December 31, 2024, respectively, and for Nelnet Bank was 17.4 % as of September 30, 2025.

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

Consumer Loan Sales

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

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

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

Student Loan Trust Acquisitions

In March 2025, the Company acquired the ownership interests in certain trusts giving the Company rights to the residual interest.

The trusts included $ 646.9 million (par value) of federally insured Stafford and consolidation loans funded to term with $ 721.3 million (par value) of bonds and notes payable, $ 32.2 million of cash and restricted cash, and $ 27.4 million of other net assets.

The Company has consolidated these trusts on its consolidated balance sheet as the Company is the primary beneficiary of the trusts.

Upon acquisition, the Company recorded the student loans and bonds and notes payable at fair value, resulting in the recognition of a student loan net discount of $ 6.6 million and a bonds and notes payable discount of $ 31.1 million.

These net discounts will be accreted using the effective interest method over the lives of the underlying assets and liabilities.

(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 19.6 % and 19.3 %, and for Nelnet Bank was 17.7 % and 17.3 %, as of March 31, 2026 and December 31, 2025, respectively.

(b) The increase in allowance for loan losses as a percentage of the ending loan balance for consumer loans and other financing receivables was driven by the significant growth in the volume of Pay Later receivables acquired since the third quarter of 2025.

As loan acquisitions increased, the Company recorded additional allowance at acquisition in accordance with its expected credit loss methodology.

The increase in the allowance primarily reflects the cumulative volume of new loans added to the portfolio rather than a deterioration in credit quality.

Activity in the Allowance for Loan Losses

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

Three months ended September 30, 2025

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

Three months ended March 31, 2026

Non-Nelnet Bank:

6 unchanged sentences

$ 132,078 53,572 ( 32,687 ) 2,228 — 155,191

Three months ended September 30, 2024

Non-Nelnet Bank:

Federally insured loans $ 54,180 1,247 ( 4,593 ) — — — 50,834

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

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

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

Consumer and other loans 11,825 5,326 ( 3,830 ) 193 — — 13,514

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

Nine months ended September 30, 2025

Three months ended March 31, 2025

Non-Nelnet Bank:

6 unchanged sentences

$ 114,890 15,465 ( 10,896 ) 617 — 120,076

Nine months ended September 30, 2024

Non-Nelnet Bank:

Federally insured loans $ 68,453 ( 2,593 ) ( 15,026 ) — — — 50,834

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

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

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

Consumer and other loans 5,351 16,563 ( 8,635 ) 235 — — 13,514

$ 104,643 32,338 ( 37,278 ) 2,439 — — 102,142

(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 consumer loan sales during the periods presented.

Provision for current period Reduction to provision Provision

(negative provision) for loan losses

Three months ended September 30, 2025

Non-Nelnet Bank

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

Three months ended September 30, 2024

Non-Nelnet Bank

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

Nine months ended September 30, 2025

Non-Nelnet Bank

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

Nine months ended September 30, 2024

Non-Nelnet Bank

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

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

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

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

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

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

2025 2024 2025 2024

Three months ended March 31,

Non-Nelnet Bank:

4 unchanged sentences

Private education loans 1.14 % 1.06 %

Consumer and other loans (a) 0.79 % 7.28 % 1.21 % 7.49 %

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

Consumer and other loans 1.90 % 1.25 %

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.

The increase in provision for loan losses and charge-offs for consumer loans and other financing receivables (non-Nelnet Bank loans) during the three month period ended March 31, 2026 compared with the same period in 2025 was driven by the significant increase in the volume of Pay Later receivables acquired since the third quarter of 2025.

The increase in provision expense and charge-offs reflects the volume of new loans added to the portfolio rather than a deterioration in credit quality.

Credit performance metrics, including delinquency rates and charge‑offs, remained generally consistent with management’s expectations.

Unfunded Loan Commitments

As of September 30, 2025 and December 31, 2024, Nelnet Bank had a liability of approximately $ 751,000 and $ 326,000 , respectively, related to $ 80.1 million and $ 40.7 million, respectively, of unfunded private education, consumer, and other loan commitments.

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

When the loan is funded, the Company transfers the liability to the allowance for loan losses.

The Company maintains an allowance for unfunded loan commitments that are not unconditionally cancelable, at a level the Company believes is appropriate as of the balance sheet date, to absorb expected credit losses on this exposure.

As of March 31, 2026 and December 31, 2025, Nelnet Bank had a liability of approximately $ 432,000 and $ 760,000 , respectively, related to $ 48.0 million and $ 76.5 million, respectively, of unfunded private education, consumer, and other loan commitments.

Other than the estimation of the probability of funding, this reserve is estimated in a manner similar to the methodology used for determining reserves for loans included on the consolidated balance sheet.

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

Net adjustments to this reserve are included in "provision for loan losses" on the consolidated income statement.

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

Three months ended Nine months ended

September 30, September 30,

2025 2024 2025 2024

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

Provision for unfunded loan commitments 335 252 424 213

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

Three months ended

Provision for loan losses from allowance activity table above $ 53,572 15,465

Provision expense (negative provision) for unfunded loan commitments, net ( 328 ) ( 128 )

Provision for loan losses reported in consolidated statements of income $ 53,244 15,337

Key Credit Quality Indicators

Loan Status and Delinquencies

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

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

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

2 unchanged sentences

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

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

As of March 31, 2026 As of December 31, 2025 As of March 31, 2025

Federally insured loans - Non-Nelnet Bank:

28 unchanged sentences

Total private education loans and accrued interest receivable, net of allowance for loan losses $ 120,974 $ 129,118 $ 194,133

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

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

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

Loans in forbearance $ 1,654 0.1 % $ 1,698 0.2 % $ 205 0.1 %

Loans in repayment status:

9 unchanged sentences

Total consumer loans and other financing receivables and accrued interest receivable, net of allowance for loan losses $ 1,116,191 $ 1,049,009 $ 329,945

As of March 31, 2026 As of December 31, 2025 As of March 31, 2025

Federally insured loans - Nelnet Bank (a):

28 unchanged sentences

Total private education loans and accrued interest receivable, net of allowance for loan losses $ 529,806 $ 506,615 $ 480,221

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

Consumer and other loans - Nelnet Bank (a):

15 unchanged sentences

Nelnet Bank Private Education Loans

Loan balance as of September 30, 2025

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

Loan balance as of March 31, 2026

Three months ended March 31, 2026 2025 2024 2023 2022 Prior years Total Percent of total

FICO at origination or purchase:

17 unchanged sentences

Nelnet Bank Consumer and Other Loans

Loan balance as of September 30, 2025

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

Loan balance as of March 31, 2026

Three months ended March 31, 2026 2025 2024 2023 2022 Prior years Total Percent of total

FICO at origination:

16 unchanged sentences

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

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

The amortized cost of private education, consumer, and other loans on nonaccrual status, as well as the allowance for loan losses related to such loans, as of March 31, 2026 and December 31, 2025, was not material.

Amortized Cost Basis by Origination Year

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

The following table presents the amortized cost of the Company's private education, consumer, and other loans by loan status and delinquency amount as of March 31, 2026 based on year of origination.

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

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

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

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

Three months ended March 31, 2026 2025 2024 2023 2022 Prior years Total

Private education loans - Non-Nelnet Bank:

12 unchanged sentences

Total private education loans and accrued interest receivable, net of allowance for loan losses $ 120,974

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

Gross charge-offs - three months ended March 31, 2026 $ — — — — — 385 385

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

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

Loans in forbearance $ 56 154 482 962 — — 1,654

Loans in repayment status:

9 unchanged sentences

Total consumer loans and other financing receivables and accrued interest receivable, net of allowance for loan losses $ 1,116,191

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

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

Private education loans - Nelnet Bank (a):

Gross charge-offs - three months ended March 31, 2026 $ — 14,841 8,004 2,421 833 33 26,132

Three months ended March 31, 2026 2025 2024 2023 2022 Prior years Total

Private education loans - Nelnet Bank:

Loans in-school/grace/deferment $ 5,567 36,426 15,891 7,673 4,096 2,391 72,044

11 unchanged sentences

Total private education loans and accrued interest receivable, net of allowance for loan losses $ 529,806

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

Consumer and other loans - Nelnet Bank (a):

Gross charge-offs - three months ended March 31, 2026 $ 8 84 115 318 215 1,052 1,792

Consumer and other loans - Nelnet Bank:

Loans in deferment $ 2,670 7,527 — — — — 10,197

10 unchanged sentences

Total consumer and other loans and accrued interest receivable, net of allowance for loan losses $ 254,579

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

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

Gross charge-offs - three months ended March 31, 2026 $ — 227 848 71 — 203 1,349

Bonds and Notes Payable

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

As of September 30, 2025

As of March 31, 2026

Interest rate

9 unchanged sentences

10/25/67 - 8/27/68

FFELP loan warehouse facilities 535,389 5.02 % - 5.19 %

1/29/27 / 5/1/27

FFELP loan warehouse facility 484,641 4.69 % / 4.71 %

Consumer loan warehouse and other facilities 753,040 4.93 % - 5.47 %

2 unchanged sentences

6/25/49 / 11/25/53

Fixed-rate bonds and notes issued in private education loan asset-backed securitizations 30,952 7.15 %

Fixed-rate bonds and notes issued in private education loan asset-backed securitization 23,888 7.15 %

Unsecured line of credit — — 3/31/31

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

6 unchanged sentences

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 and other facilities as of September 30, 2025:

The following table summarizes the Company's warehouse and other facilities as of March 31, 2026:

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) $ 800,000 484,641 315,359 7/31/2026 7/30/2027 note (b) $ 31,040

FFELP (c) 375,000 142,248 232,752 5/1/2026 5/1/2027 92 % 12,197

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

Consumer loans and other financing receivables $ 925,000 753,040 171,960 11/13/2026 - 7/31/2027

1 unchanged sentence

(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.

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

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

2 unchanged sentences

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

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

Unsecured Line of Credit

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

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

On March 31, 2026, the Company entered into a new $ 435.0 million unsecured line of credit.

In conjunction with entering into the new line of credit, the Company terminated its $ 495.0 million line of credit which had a scheduled maturity date of September 22, 2026.

There was no outstanding balance on the $ 495.0 million line of credit on the date of termination.

Borrowings by the Company under the new line of credit will bear interest at rates that will vary based on market conditions, the Company's credit rating, interest elections by the Company under the agreement, and other factors at the time of the borrowings.

The maturity date of the new line of credit is March 31, 2031.

The new line of credit contains affirmative and negative covenants, including, but not limited to, certain financial covenants related to maintenance of a minimum consolidated net worth, a limitation on recourse indebtedness to adjusted EBITDA, a limitation on permitted investments, and an asset quality test related to non-FFELP loans held by the Company and its consolidated subsidiaries.

Any violation of these covenants could lead to an event of default under the agreement.

The Company's obligations under the agreement are guaranteed by certain subsidiaries of the Company.

As of March 31, 2026, no amount was outstanding on the new line of credit and $ 435.0 million was available for future use.

Debt Repurchases

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

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

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

2025 2024 2025 2024

Purchase price $ ( 385,853 ) ( 357 ) ( 528,723 ) ( 4,556 )

Par value 377,571 365 520,891 4,555

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

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

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

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 or redeem the notes at par as cash is generated by the trust estate.

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

As of September 30, 2025, the Company holds $ 499.5 million (par value) of its own FFELP asset-backed securities.

As of March 31, 2026, the Company holds $ 238.1 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.

Derivative Financial Instruments

The Company uses derivative financial instruments to manage interest rate risk.

Derivative instruments used are described in note 6 of the notes to consolidated financial statements included in the 2025 Annual Report.

Non-Nelnet Bank Derivatives

The Company uses settled-to-market derivative financial instruments to manage interest rate risk.

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

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

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

The following table summarizes the Company’s Basis Swaps outstanding as of March 31, 2026 and December 31, 2025 used 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.

Maturity Notional amount

1 unchanged sentence

Interest Rate Swaps – Floor Income Hedges

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

The following table summarizes the outstanding derivative instruments used by the Company as of March 31, 2026 and December 31, 2025 to economically hedge loans earning fixed-rate floor income.

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

2 unchanged sentences

2028 50,000 3.56

2029 (a) 50,000 3.17

2030 (b) 100,000 3.63

2029 50,000 3.17

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

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

2030 100,000 3.63

$ 400,000 3.71 %

Nelnet Bank Derivatives

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

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

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

Nelnet Bank uses 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

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

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

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

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

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.

The following table summarizes the outstanding derivative instruments used by Nelnet Bank as of March 31, 2026 and December 31, 2025 to hedge intercompany deposits.

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

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

2028 $ 40,000 3.33 %

2 unchanged sentences

2032 (b) 25,000 4.03

2033 25,000 3.90

2035 (c) 30,000 3.79

2035 (d) 30,000 3.79 — —

$ 195,000 3.50 %

1 unchanged sentence

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

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

Interest Rate Swaps - Third-Party Deposits

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

The following table summarizes the outstanding derivative instruments used by Nelnet Bank as of March 31, 2026 and December 31, 2025 to hedge third-party deposits.

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

As of September 30, 2025

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

2 unchanged sentences

$ 50,000 3.72 %

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

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

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

Consolidated Financial Statement Impact Related to Derivatives

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.

The following table summarizes the fair value of the Company's Nelnet Bank derivatives as reflected in the consolidated balance sheets:

The following table summarizes the fair value of Nelnet Bank's derivatives as reflected in the consolidated balance sheets:

Fair value of asset derivatives Fair value of liability derivatives

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

As of March 31, 2026 As of December 31, 2025 As of March 31, 2026 As of December 31, 2025

Interest rate swaps - intercompany deposits $ 1,239 614 869 1,243

3 unchanged sentences

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

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

2025 2024 2025 2024

Three months ended March 31,

Basis swaps $ 153 153

Interest rate swaps - floor income hedges ( 49 ) 429

Interest rate swaps - intercompany deposits 167 281 494 690

Interest rate swaps - Nelnet Bank intercompany deposits 39 164

Other derivative instruments 437 —

Total settlements - income 580 746

2 unchanged sentences

Interest rate swaps - floor income hedges 1,642 ( 3,657 )

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

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

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

Interest rate swaps - Nelnet Bank intercompany deposits 1,000 ( 2,529 )

Other derivative instruments ( 907 ) —

Total change in fair value - income (expense) 1,587 ( 6,324 )

Derivative market value adjustments and derivative settlements, net - income (expense) $ 2,167 ( 5,578 )

Investments and Notes Receivable

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

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

As of March 31, 2026 As of December 31, 2025

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

3 unchanged sentences

FFELP loan $ 37,620 2,940 ( 138 ) 40,422 36,824 2,950 ( 129 ) 39,645

FFELP loan and other debt securities - restricted (a) 122,667 3,518 ( 200 ) 125,985 98,914 3,151 ( 78 ) 101,987

Private education loan (b) 206,153 76 ( 13,591 ) 192,638 237,288 — ( 18,118 ) 219,170

FFELP loan and other debt securities - restricted 192,496 3,030 ( 838 ) 194,688 172,739 3,384 ( 323 ) 175,800

Private education loan (a) 187,507 — ( 14,228 ) 173,279 197,568 20 ( 13,436 ) 184,152

Other debt securities 52,105 2,438 ( 113 ) 54,430 55,874 2,528 — 58,402

8 unchanged sentences

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

Held-to-maturity asset-backed securities

FFELP loan 201,041 203,439

Private education loan — 7,335

Total Nelnet Bank held-to-maturity asset-backed securities 201,041 210,774

Held-to-maturity asset-backed securities - FFELP loan 210,145 211,299

Venture capital, funds, and other:

Measurement alternative (c) 230,319 200,782

Measurement alternative 229,112 227,962

Equity method 255,290 248,253

1 unchanged sentence

Real estate equity method 256,192 233,167

Investment in ALLO (d):

Voting interest/equity method — —

Preferred membership interests and accrued and unpaid preferred return — 225,614

Total investment in ALLO — 225,614

Beneficial interest in loan securitizations (e):

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

140,742 142,764

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

Preferred membership interest and accrued and unpaid preferred return 24,626 10,148

Total interest in ALLO 24,626 10,148

Beneficial interest in loan securitizations (b):

Consumer and private education loans, net of allowance for credit losses of $ 54,932 and $ 50,802 as of March 31, 2026 and December 31, 2025, respectively

182,487 180,262

1 unchanged sentence

Total beneficial interest in loan securitizations, net of allowance 197,757 194,830

Solar (f) ( 210,336 ) ( 155,048 )

Solar (c) ( 268,466 ) ( 240,370 )

Notes receivable 32,090 32,085

2 unchanged sentences

Total investments and notes receivable $ 2,477,361 $ 2,347,971

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

(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.

On August 11, 2025, the Investee completed an additional equity raise and accepted tender offers to redeem existing equity holders with a portion of the proceeds.

The Company redeemed a portion of its investment and received cash proceeds of $ 10.1 million and recognized a gain of $ 7.8 million.

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

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

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

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

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

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

(doing business as “Hudl”).

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

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

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

See note 2 for additional information.

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

Using the HLBV method of accounting, the Company recognized $ 10.7 million of losses during the first quarter of 2024, reducing the carrying value of the voting membership interest investment to $ 0 .

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

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

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

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

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

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

See note 9 for additional information.

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

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

As of September 30, 2025, the Company has invested a total of $ 306.1 million and its third-party investors have invested $ 307.5 million in tax equity investments that remain outstanding in renewable energy solar partnerships that support the development and operations of solar projects.

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

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

The solar investment negative carrying value on the consolidated balance sheet of $ 210.3 million as of September 30, 2025 represents the sum of total tax credits earned on solar projects placed in service through September 30, 2025 and the calculated HLBV cumulative net losses being larger than the total investment contributions made by the Company and its syndication partners on such projects.

The solar investment negative carrying value as of September 30, 2025, excluding the portion owned by syndication partners that is reflected as "noncontrolling interests" on the consolidated balance sheet, was $ 109.8 million.

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

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

The following table presents (i) the Company's recognized HLBV losses and gains recognized from sales of certain investments, which include losses and gains attributable to third-party noncontrolling interest investors (syndication partners), included in “other, net” in "other income (expense)" on the consolidated statements of income, (ii) solar net losses and gains attributed to noncontrolling interest investors included in “net loss attributable to noncontrolling interests” on the consolidated statements of income, and (iii) the recognized pre-tax net loss attributable to the Company:

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

2025 2024 2025 2024

(a) 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 Company must retain these investment securities until the aggregate outstanding loan or bond balances in the securitization are met, at which time the Company can sell its investment securities (bonds) to a third party.

The bonds purchased to satisfy the risk retention requirement are included in the above table and as of March 31, 2026, the par value and fair value of these securities was $ 187.5 million and $ 172.9 million, respectively.

(b) The Company has partial ownership in certain securitizations.

As of the latest remittance reports filed by the various trusts prior to or as of March 31, 2026, the Company's ownership correlates to approximately $ 990 million, $ 370 million, and $ 280 million of consumer, private education, and federally insured student loans, respectively, included in these securitizations.

The Company has recorded an allowance for credit losses (and related provision expense) related to certain loan securitizations, due primarily to an increase in cumulative loss expectations, of $ 4.1 million and $ 1.5 million during the three months ended March 31, 2026 and 2025, respectively, which is included in “provision for beneficial interests” on the consolidated statements of income.

(c) As of March 31, 2026, the Company has contributed a total of $ 360.3 million and its third-party partners have contributed $ 418.7 million in tax equity to renewable energy solar partnerships.

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 March 31, 2026, the Company and its third-party partners have earned $ 420.1 million and $ 456.0 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 $ 268.5 million as of March 31, 2026 represents the sum of total tax credits earned on solar projects placed in service through March 31, 2026 and the calculated HLBV cumulative net losses being larger than the total contributions made by the Company and its syndication partners on such projects.

The negative carrying value as of March 31, 2026, excluding the portion owned by syndication partners that is reflected as "noncontrolling interests" on the consolidated balance sheet, was $ 123.4 million.

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 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) gain attributable to the Company:

Three months ended March 31,

Losses from HLBV accounting (gross) $ ( 22,531 ) ( 2,616 )

Gains from sales (gross) — 3,072

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

(Losses) gains from solar investments, (gross) ( 22,531 ) 456

losses attributable to noncontrolling members, net ( 13,445 ) ( 1,046 )

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

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

As of September 30, 2025

Net (loss) gain attributable to the Company $ ( 9,086 ) 1,502

The following table presents, by remaining contractual maturity, the amortized cost and fair value of debt securities as of March 31, 2026:

As of March 31, 2026

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

21 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 September 30, 2025:

The following table summarizes the unrealized positions for held-to-maturity asset-backed securities investments and the beneficial interest in loan securitizations as of March 31, 2026:

Carrying value Gross unrealized gains Gross unrealized losses Fair value

1 unchanged sentence

Beneficial interest in loan securitizations 197,757 12,796 ( 1,875 ) 208,678

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

The following table presents securities classified as available-for-sale that have gross unrealized losses as of March 31, 2026 and the fair value of such securities as of March 31, 2026.

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

1 unchanged sentence

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

As of September 30, 2025

As of March 31, 2026

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

13 unchanged sentences

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

Three months ended Nine months ended

September 30, September 30,

2025 2024 2025 2024

Three months ended

Gross proceeds from sales $ 47,533 74,781

2 unchanged sentences

Net gains $ 422 483

Equity securities and funds measured at net asset value

The following table summarizes the unrealized gains and losses related to equity securities and funds measured at net asset value held at March 31, 2026 and 2025.

Realized and unrealized gains/losses are included in "other, net" in "other income (expense)" on the consolidated statements of income.

Three months ended

Unrealized (losses) gains recognized during the period, net $ ( 7,801 ) 1,383

realized losses on securities sold during the period, net 1,457 —

Unrealized (losses) gains on securities still held as of the reporting date, net $ ( 9,258 ) 1,383

Business Combination

Nelnet Diversified Services Canada, Inc.

On February 2, 2026, the Company acquired 100 percent of the outstanding stock of a wholly owned subsidiary of DH Corporation for total consideration of CAD $ 144.2 million (USD $ 105.8 million).

The acquired entity was subsequently renamed Nelnet Diversified Services Canada, Inc.

("NDS Canada").

NDS Canada is a Canadian student loan servicing business that services the Canada Student Loan Program for federal and provincial student financial assistance programs, including loan origination, disbursement, servicing, customer support, delinquency management, and reporting.

The acquisition of NDS Canada has expanded the Company's portfolio of loans it services.

The operating results of NDS Canada are included in the Loan Servicing and Systems operating segment.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date.

The fair value of the assets and liabilities related to NDS Canada are subject to refinement as the Company completes its analysis relative to the fair values at the date of acquisition.

Restricted cash - due to customers $ 302,901

Accounts receivable 18,068

Property and equipment 2,933

Other assets 355

Intangible assets 69,072

Excess cost over fair value of net assets acquired (goodwill) 46,969

Other liabilities ( 31,635 )

Due to customers ( 302,901 )

Net assets acquired $ 105,762

The $ 69.1 million of acquired intangible assets on the date of acquisition had a weighted-average useful life of approximately 6 years.

The intangible assets that made up this amount include customer relationships of $ 42.8 million ( 7-year useful life) and software of $ 26.3 million ( 5-year useful life).

The $ 47.0 million of goodwill was assigned to the Loan Servicing and Systems operating segment and is not expected to be deductible for tax purposes.

The amount allocated to goodwill was primarily attributed to expected future economic benefits associated with the Company's servicing expertise and scale supporting NDS Canada's ongoing operations, along with the deferred tax liability related to the differences between the carrying amounts and tax bases of acquired identifiable intangible assets.

Nelnet Canada's assets acquired and liabilities assumed were recorded by the Company at their respective fair values at the date of acquisition, and Nelnet Canada's operating results from the date of acquisition forward are included in the Company's consolidating operating results.

The pro forma impacts of the Nelnet Canada acquisition on the Company's historical results prior to the acquisition were not material.

Intangible Assets

Intangible assets consisted of the following:

Weighted-average remaining useful life as of

September 30, 2025 (months)

September 30, 2025 December 31, 2024

March 31, 2026 (months)

March 31, 2026 December 31, 2025

Amortizable intangible assets, net:

1 unchanged sentence

81 $ 71,587 29,283

Trade name (net of accumulated amortization of $ 263 and $ 205 , respectively)

Computer software (net of accumulated amortization of $ 1,175 and $ 917 , respectively)

Computer software (net of accumulated amortization of $ 959 )

Total amortizable intangible assets, net 74 $ 97,576 29,283

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

The Company recorded amortization expense on its intangible assets of $ 3.7 million and $ 1.5 million for the three months ended March 31, 2026 and 2025, respectively.

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

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

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

As of March 31, 2026, the Company estimates it will record amortization expense as follows:

2026 (April 1 - December 31) $ 13,630

2031 and thereafter 18,055

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

Nelnet Financial Services

Loan Servicing and Systems Education Technology Services and Payments Asset

Generation and

Management Nelnet Bank NFS Other Operating Segments Corporate and Other Activities Total

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

Impairment Expense and Provision for Beneficial Interests

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

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

The change in the carrying amount of goodwill by reportable operating segment was as follows:

Nelnet Financial Services

2 unchanged sentences

Management Nelnet Bank NFS Other Operating Segments Corporate and Other Activities Total

Three months ended September 30, 2025

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

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

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

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

$ — 1,145 2,145 — — 5,855 9,145

Three months ended September 30, 2024

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

Investments - venture capital — — — — — 100 100

$ — — 28,952 — — 100 29,052

Nine months ended September 30, 2025

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

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

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

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

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

Investments - venture capital — — — — — 140 140

$ — 1,145 8,632 — 81 11,166 21,024

Nine months ended September 30, 2024

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

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

Investments - venture capital — — — — — 137 137

$ — — 34,863 — — 2,002 36,865

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

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

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

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

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

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

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

Goodwill as of December 31, 2025 $ 23,639 92,507 41,883 — — — 158,029

Goodwill acquired during the period 46,969 — — — — — 46,969

Effect of foreign currency fluctuations ( 1,068 ) — — — — — ( 1,068 )

Goodwill as of March 31, 2026 $ 69,540 92,507 41,883 — — — 203,930

Bank Deposits

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

September 30, 2025 December 31, 2024

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

March 31, 2026 December 31, 2025

Retail and other savings $ 1,376,955 1,337,873

2 unchanged sentences

Total interest-bearing deposits $ 1,744,527 1,669,173

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

As of March 31, 2026 and December 31, 2025, Nelnet Bank had intercompany deposits from Nelnet, Inc.

and its subsidiaries totaling $ 212.2 million and $ 93.8 million, respectively, including a $ 40.0 million pledged deposit from Nelnet, Inc.

1 unchanged sentence

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

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

The following table presents the remaining maturities of certificates of deposit as of March 31, 2026:

One year or less $ 213,218

5 unchanged sentences

Total $ 367,572

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.

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

Deposits that exceeded the FDIC insurance limits as of March 31, 2026 were $ 41.1 million, the majority of which were intercompany deposits from Nelnet, Inc.

and its subsidiaries.

Union Bank, a related party, is the program manager for certain of the Educational 529 College Savings plans and trustee for the STFIT.

Earnings per Common Share

3 unchanged sentences

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

Three months ended September 30,

Three months ended March 31,

Net income attributable to Nelnet, Inc.

1 unchanged sentence

Weighted-average common shares outstanding - basic and diluted

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

Nine months ended September 30,

Net income attributable to Nelnet, Inc.

35,432,329 644,583 36,076,912 35,796,531 681,895 36,478,426

Weighted-average common shares outstanding - basic and diluted 35,759,099 667,089 36,426,188 35,993,634 709,680 36,703,314

Earnings per share - basic and diluted $ 1.97 1.97 1.97 2.26 2.26 2.26

2 unchanged sentences

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

Three months ended September 30, 2025

Reportable Segments Reconciling Items

Loan Servicing and Systems (LSS) Education Technology Services and Payments (ETSP) Asset

Generation and

Management Nelnet Bank Total Reportable Segments NFS Other Operating Segments Corporate and Other Activities Eliminations/ Reclassifications Total

Interest income:

Loan interest $ — — 145,984 16,733 162,717 — — — 162,717

Investment interest 531 8,564 12,051 14,849 35,995 14,985 3,134 ( 10,872 ) 43,241

Total interest income 531 8,564 158,035 31,582 198,712 14,985 3,134 ( 10,872 ) 205,958

Interest expense — — 113,350 16,179 129,529 1,359 692 ( 10,872 ) 120,708

Net interest income 531 8,564 44,685 15,403 69,183 13,626 2,442 — 85,250

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

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

Other income (expense):

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

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

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

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

Solar construction revenue — — — — — — 5,738 — 5,738

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

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

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

Derivative settlements, net — — 594 167 761 — — — 761

Derivative market value adjustments, net — — ( 461 ) ( 327 ) ( 788 ) — — — ( 788 )

Total other income (expense), net 156,470 129,391 ( 2,144 ) 1,148 284,865 28,839 34,074 ( 5,271 ) 342,507

Cost of services and expenses:

Total cost of services 2,021 50,363 — — 52,384 — 7,607 — 59,991

Salaries and benefits 70,126 43,029 1,971 2,817 117,943 668 26,193 ( 26 ) 144,778

Depreciation and amortization 1,725 2,504 — 355 4,584 — 2,743 — 7,327

Reinsurance losses and underwriting expenses — — — — — 19,962 — — 19,962

Postage expense 8,735 8,735 ( 8,735 ) —

Servicing fees 6,687 838 7,525 ( 7,525 ) —

Other expenses (a) 10,862 9,537 1,243 1,916 23,558 1,103 17,901 11,107 53,669

Intersegment expenses, net 17,262 6,420 1,248 726 25,656 289 ( 25,741 ) ( 204 ) —

Total operating expenses 108,710 61,490 11,149 6,652 188,001 22,022 21,096 ( 5,383 ) 225,736

Impairment expense and provision for beneficial interests — 1,145 2,145 — 3,290 — 5,855 — 9,145

Total expenses 110,731 112,998 13,294 6,652 243,675 22,022 34,558 ( 5,383 ) 294,872

Income (loss) before income taxes 46,270 24,957 36,621 6,088 113,936 20,443 1,958 112 136,448

Income tax (expense) benefit ( 11,105 ) ( 5,990 ) ( 8,783 ) ( 1,483 ) ( 27,361 ) ( 4,866 ) ( 3,547 ) — ( 35,773 )

Net income (loss) 35,165 18,967 27,838 4,605 86,575 15,577 ( 1,589 ) 112 100,675

Net (income) loss attributable to noncontrolling interests — — ( 27 ) — ( 27 ) ( 169 ) 6,317 ( 112 ) 6,009

Net income (loss) attributable to Nelnet, Inc.

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

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

(a) Other expenses for each reportable segment includes:

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

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

AGM - trustee fees and professional fees.

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

Three months ended September 30, 2024

Three months ended March 31, 2026

Reportable Segments Reconciling Items

8 unchanged sentences

Net interest income 591 6,118 67,455 17,829 91,993 7,143 2,507 — 101,643

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

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

Less provision for loan losses — — 48,466 4,778 53,244 — — — 53,244

Less provision for beneficial interests — — 4,130 — 4,130 — — — 4,130

Net interest income after provision 591 6,118 14,859 13,051 34,619 7,143 2,507 — 44,269

Other income (expense):

5 unchanged sentences

Other, net ( 211 ) — 26,246 1,558 27,593 ( 3,586 ) ( 13,578 ) 8 10,437

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

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

Derivative settlements, net — — 104 39 143 — 437 — 580

11 unchanged sentences

Total operating expenses 111,340 62,860 12,183 6,429 192,812 26,835 19,417 ( 5,078 ) 233,986

Impairment expense and provision for beneficial interests — — 28,952 — 28,952 — 100 — 29,052

Total expenses 119,736 101,160 39,429 6,645 266,970 18,502 42,651 ( 5,488 ) 322,635

Income (loss) before income taxes 19,801 47,813 30,520 9,219 107,353 ( 742 ) ( 30,958 ) 8 75,661

4 unchanged sentences

$ 15,049 36,338 23,181 7,113 81,681 ( 511 ) ( 10,044 ) — 71,126

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

Total assets as of March 31, 2026 $ 479,061 452,962 9,490,162 2,515,559 12,937,744 1,129,447 771,091 ( 660,365 ) 14,177,917

(a) Other expenses for each reportable segment includes:

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

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

AGM - trustee fees and professional fees.

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

Nine months ended September 30, 2025

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

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

AGM - trustee fees, subscriptions and memberships, professional fees, and travel.

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

Three months ended March 31, 2025

Reportable Segments Reconciling Items

8 unchanged sentences

Net interest income 721 6,939 52,935 12,390 72,985 8,050 1,679 — 82,714

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

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

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

Less provision for beneficial interests — — 1,510 — 1,510 — — — 1,510

Net interest income after provision 721 6,939 38,413 10,065 56,138 8,050 1,679 — 65,867

Other income (expense):

5 unchanged sentences

Other, net 112 — 4,904 142 5,158 1,110 18,238 97 24,603

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

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

Derivative settlements, net — — 582 164 746 — — — 746

11 unchanged sentences

Total operating expenses 107,113 58,824 10,270 5,890 182,097 23,787 17,860 ( 5,748 ) 217,997

Impairment expense and provision for beneficial interests — 1,145 8,632 — 9,777 81 11,166 — 21,024

Total expenses 326,582 319,992 42,346 19,131 708,051 74,536 91,415 ( 16,798 ) 857,205

Income (loss) before income taxes 18,512 47,462 29,834 1,952 97,760 10,060 ( 1,776 ) 97 106,140

4 unchanged sentences

$ 14,069 36,105 22,661 1,518 74,353 7,551 657 — 82,560

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

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

(a) Other expenses for each reportable segment includes:

2 unchanged sentences

AGM - trustee fees and professional fees.

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

Nine months ended September 30, 2024

Reportable Segments Reconciling Items

Loan Servicing and Systems (LSS) Education Technology Services and Payments (ETSP) Asset

Generation and

Management Nelnet Bank Total Reportable Segments NFS Other Operating Segments Corporate and Other Activities Eliminations/ Reclassifications Total

Interest income:

Loan interest $ — — 583,907 25,157 609,064 — — — 609,064

Investment interest 4,046 23,315 54,513 33,301 115,175 43,910 9,566 ( 25,565 ) 143,086

Total interest income 4,046 23,315 638,420 58,458 724,239 43,910 9,566 ( 25,565 ) 752,150

Interest expense — — 523,678 31,872 555,550 7,268 2,114 ( 25,565 ) 539,367

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

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

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

Other income (expense):

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

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

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

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

Solar construction revenue — — — — — — 42,741 — 42,741

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

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

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

Derivative settlements, net — — 4,356 690 5,046 — — — 5,046

Derivative market value adjustments, net — — ( 2,875 ) ( 793 ) ( 3,668 ) — — — ( 3,668 )

Total other income (expense), net 364,932 378,793 11,035 1,888 756,648 51,013 54,471 ( 18,585 ) 843,546

Cost of services and expenses:

Total cost of services 392 134,106 — — 134,498 — 49,115 — 183,613

Salaries and benefits 224,172 121,956 3,529 8,491 358,148 1,129 72,159 ( 1,735 ) 429,701

Depreciation and amortization 15,304 8,012 — 944 24,260 — 21,312 — 45,572

Reinsurance losses and underwriting expenses — — — — — 39,066 — — 39,066

Postage expense 28,350 28,350 ( 28,350 ) —

Servicing fees 24,503 711 25,214 ( 25,214 ) —

Other expenses (a) 31,119 23,772 3,217 5,577 63,685 2,470 37,359 35,306 138,820

Intersegment expenses, net 55,955 14,216 3,756 1,729 75,656 665 ( 77,729 ) 1,408 —

Total operating expenses 354,900 167,956 35,005 17,452 575,313 43,330 53,101 ( 18,585 ) 653,159

Impairment expense and provision for beneficial interests — — 34,863 — 34,863 — 2,002 — 36,865

Total expenses 355,292 302,062 69,868 17,452 744,674 43,330 104,218 ( 18,585 ) 873,637

Income (loss) before income taxes 13,686 100,046 41,710 ( 7,330 ) 148,112 44,325 ( 42,295 ) — 150,141

Income tax (expense) benefit ( 3,284 ) ( 24,035 ) ( 10,010 ) 1,800 ( 35,529 ) ( 10,550 ) 8,426 — ( 37,653 )

Net income (loss) 10,402 76,011 31,700 ( 5,530 ) 112,583 33,775 ( 33,869 ) — 112,488

Net (income) loss attributable to noncontrolling interests — 101 — — 101 ( 366 ) 8,663 — 8,398

Net income (loss) attributable to Nelnet, Inc.

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

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

(a) Other expenses for each reportable segment includes:

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

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

AGM - trustee fees and professional fees.

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

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

Three months ended March 31, 2026

Three months ended March 31, 2025

Disaggregated Revenue

1 unchanged sentence

Loan Servicing and Systems

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

2025 2024 2025 2024

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

Three months ended March 31,

Department of Education loan servicing $ 76,119 87,358

Canada Student Loan Program loan servicing (a) 11,332 —

Private education and consumer loan servicing 25,661 22,696

3 unchanged sentences

Loan servicing and systems revenue $ 127,842 120,741

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

(a) On February 2, 2026, the Company acquired a Canadian student loan servicing business, NDS Canada.

The operating results of NDS Canada are included in the Company's consolidated operating results beginning on the acquisition date.

See note 6 for additional information.

Education Technology Services and Payments

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

2025 2024 2025 2024

Three months ended March 31,

Tuition payment plan services $ 41,855 40,072

1 unchanged sentence

Education technology services 56,114 55,695

Other 543 627 745 2,693

Education technology services and payments revenue $ 154,436 147,330

1 unchanged sentence

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

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

2025 2024 2025 2024

Three months ended March 31,

Investment activity, net $ 15,169 5,161

Borrower late fee income 8,457 1,587

Administration/sponsor fee income 1,549 1,305

Investment advisory services (WRCM) 1,336 1,473

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

ALLO preferred return 978 8,416

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

Loss from solar investments, net ( 22,531 ) 456

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

Other 5,479 6,205

1 unchanged sentence

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

Three months ended Nine months ended

September 30, September 30,

2025 2024 2025 2024

Three months ended March 31,

Premiums written:

10 unchanged sentences

Reinsurance losses and underwriting expenses $ 23,605 22,212

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

The Company’s loss reserve balance, net of amounts ceded to reinsurers, was $ 78.2 million and $ 72.3 million as of March 31, 2026 and December 31, 2025, respectively, which is included in "other liabilities" on the consolidated balance sheets.

Major Customer

Government Loan Servicing

The Company earns loan servicing revenue from a servicing contract with the Department.

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

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

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.

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 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 Company earns loan servicing revenue from a servicing contract with the U.S.

Department of Education (the "Department") that became effective in April 2023 and has a five-year base period, with 2 two-year and 1 one-year possible extensions.

Revenue earned by the Company related to this contract was $ 76.1 million and $ 87.4 million for the three months ended March 31, 2026 and 2025, respectively.

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

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

As of March 31, 2026 As of December 31, 2025

Level 1 Level 2 Total Level 1 Level 2 Total

10 unchanged sentences

The methodologies for estimating the fair value of financial assets and liabilities are described in note 24 of the notes to consolidated financial statements included in the 2025 Annual Report.

As of September 30, 2025

As of March 31, 2026

Fair value Carrying value Level 1 Level 2 Level 3

35 unchanged sentences

Derivative instruments 1,727 1,727 — 1,727 —

Subsequent Event

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

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

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

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

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

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

What changed 10-Q

Item 1. Financial Statements