NELNET INC 10-Q

ITEM 1. FINANCIAL STATEMENTS NELNET, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except share data) (unaudited) As of As of March 31, 2026 December 31, 2025 Assets: Loans and accrued interest receivable (net of allowance for loan losses of $ 155,191 and $ 132,078 , respectively) $ 10,009,471 10,006,695 Cash and cash equivalents: Cash and cash equivalents - not held at a related party 118,660 128,142 Cash and cash equivalents - held at a related party 121,347 167,841 Total cash and cash equivalents 240,007 295,983 Investments and notes receivable: Investments at fair value 1,523,237 1,414,636 Other investments and notes receivable, net 954,124 933,335 Total investments and notes receivable 2,477,361 2,347,971 Restricted cash 308,177 357,639 Restricted cash - due to customers 282,341 319,924 Accounts receivable (net of allowance for doubtful accounts of $ 3,069 and $ 2,758 , respectively) 196,910 193,453 Goodwill 203,930 158,029 Intangible assets, net 97,576 29,283 Property and equipment, net 84,606 75,532 Other assets 277,538 279,274 Total assets $ 14,177,917 14,063,783 Liabilities: Bonds and notes payable $ 7,699,400 7,780,927 Accrued interest payable 16,916 20,426 Bank deposits 1,744,527 1,669,173 Other liabilities 566,618 558,184 Due to customers 544,444 457,844 Total liabilities 10,571,905 10,486,554 Commitments and contingencies Equity: Nelnet, Inc. shareholders' equity: Preferred stock, $ 0.01 par value. Authorized 50,000,000 shares; no shares issued or outstanding — — Common stock: Class A, $ 0.01 par value. Authorized 600,000,000 shares; issued and outstanding 25,334,870 shares and 25,259,718 shares, respectively 253 253 Class B, convertible, $ 0.01 par value. Authorized 60,000,000 shares; issued and outstanding 10,616,675 shares 106 106 Additional paid-in capital 1,535 1,481 Retained earnings 3,732,931 3,681,333 Accumulated other comprehensive (loss) earnings, net ( 3,534 ) 2,619 Total Nelnet, Inc. shareholders' equity 3,731,291 3,685,792 Noncontrolling interests ( 125,279 ) ( 108,563 ) Total equity 3,606,012 3,577,229 Total liabilities and equity $ 14,177,917 14,063,783 Supplemental information - assets and liabilities of consolidated education and other lending variable-interest entities: Loans and accrued interest receivable $ 8,647,181 8,780,878 Restricted cash 296,095 326,281 Bonds and notes payable ( 7,975,501 ) ( 8,112,424 ) Accrued interest payable and other liabilities ( 127,257 ) ( 133,502 ) Net assets of consolidated education and other lending variable-interest entities $ 840,518 861,233 See accompanying notes to consolidated financial statements. 2 NELNET, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except share data) (unaudited) Three months ended March 31, 2026 2025 Interest income: Loan interest $ 171,024 166,439 Investment interest 40,202 41,389 Total interest income 211,226 207,828 Interest expense on bonds and notes payable and bank deposits 109,583 125,114 Net interest income 101,643 82,714 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): Loan servicing and systems revenue 127,842 120,741 Education technology services and payments revenue 154,436 147,330 Reinsurance premiums earned 22,536 24,687 Solar construction revenue — 3,995 Other, net 10,437 24,603 Derivative market value adjustments and derivative settlements, net 2,167 ( 5,578 ) Total other income (expense), net 317,418 315,778 Cost of services and expenses: Loan servicing contract fulfillment and acquisition costs 2,087 1,633 Cost to provide education technology services and payments 49,953 48,047 Cost to provide solar construction services — 7,828 Total cost of services 52,040 57,508 Salaries and benefits 139,371 138,223 Depreciation and amortization 9,170 9,255 Reinsurance losses and underwriting expenses 23,605 22,212 Other expenses 61,840 48,307 Total operating expenses 233,986 217,997 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 Net income attributable to Nelnet, Inc. $ 71,126 82,560 Earnings per common share: Net income attributable to Nelnet, Inc. shareholders - basic and diluted $ 1.97 2.26 Weighted-average common shares outstanding - basic and diluted 36,076,912 36,478,426 See accompanying notes to consolidated financial statements. 3 NELNET, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Dollars in thousands) (unaudited) Three months ended March 31, 2026 2025 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 losses arising during period, net ( 6,459 ) ( 2,767 ) Reclassification of gains recognized in net income, net ( 422 ) ( 483 ) Amortization of net unrealized loss on securities transferred from available-for-sale to held-to-maturity 5 47 Income tax effect 1,650 ( 5,226 ) 769 ( 2,434 ) Net changes related to cash flow hedges: Fair value adjustments during period, net 302 — Income tax effect ( 72 ) 230 — — Net changes related to equity method investee's other comprehensive income: Fair value adjustment during period 52 725 Income tax effect ( 12 ) 40 ( 174 ) 551 Other comprehensive loss ( 6,153 ) ( 1,899 ) Comprehensive income 49,447 79,231 Comprehensive loss attributable to noncontrolling interests 15,526 1,430 Comprehensive income attributable to Nelnet, Inc. $ 64,973 80,661 See accompanying notes to consolidated financial statements. 4 NELNET, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Dollars in thousands, except share data) (unaudited) Nelnet, Inc. Shareholders 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 Balance as of December 31, 2024 — 25,634,748 10,658,604 $ — 256 107 7,389 3,340,540 1,470 ( 50,645 ) 3,299,117 Net income (loss) — — — — — — — 82,560 — ( 1,430 ) 81,130 Other comprehensive loss — — — — — — — — ( 1,899 ) — ( 1,899 ) Issuance of noncontrolling interests — — — — — — — — — 2,297 2,297 Distribution to noncontrolling interests — — — — — — — — — ( 6,736 ) ( 6,736 ) Cash dividends on Class A and Class B common stock - $ 0.28 per share — — — — — — — ( 10,161 ) — — ( 10,161 ) Issuance of common stock, net of forfeitures — 101,324 — — 1 — 663 — — — 664 Compensation expense for stock-based awards — — — — — — 3,055 — — — 3,055 Repurchase of common stock — ( 38,491 ) — — — — ( 4,458 ) — — — ( 4,458 ) 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 loss — — — — — — — — ( 6,153 ) — ( 6,153 ) Issuance of noncontrolling interests — — — — — — — — — 1,838 1,838 Distribution to noncontrolling interests — — — — — — — — — ( 2,993 ) ( 2,993 ) Cash dividends on Class A and Class B common stock - $ 0.33 per share — — — — — — — ( 11,834 ) — — ( 11,834 ) Issuance of common stock, net of forfeitures — 201,471 — — 2 — 6,542 — — — 6,544 Compensation expense for stock-based awards — — — — — — 3,561 — — — 3,561 Repurchase of common stock — ( 126,319 ) — — ( 2 ) — ( 10,049 ) ( 6,229 ) — — ( 16,280 ) Redemption of 10 % minority interests of WRCM — — — — — — — ( 1,465 ) — ( 35 ) ( 1,500 ) 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. 5 NELNET, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in thousands) (unaudited) Three months ended March 31, 2026 2025 Net income attributable to Nelnet, Inc. $ 71,126 82,560 Net loss attributable to noncontrolling interests ( 15,526 ) ( 1,430 ) Net income 55,600 81,130 Adjustments to reconcile net income to net cash provided by operating activities, net of acquisitions: Depreciation and amortization, including debt discounts and loan premiums and deferred origination costs 21,163 23,123 Loan discount and deferred lender fees accretion ( 44,131 ) ( 19,407 ) Provision for loan losses 53,244 15,337 Provision for beneficial interests 4,130 1,510 Derivative market value adjustments ( 1,587 ) 6,324 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 Other ( 1,424 ) 216 Changes in operating assets and liabilities: (Increase) decrease in loan and investment accrued interest receivable ( 13,967 ) 13,488 Decrease in accounts receivable 15,334 30,087 Increase in other assets ( 52,299 ) ( 18,835 ) Decrease in the carrying amount of ROU asset 1,005 954 Decrease in accrued interest payable ( 3,510 ) ( 2,974 ) Increase (decrease) in other liabilities 32,939 ( 37,102 ) Decrease in the carrying amount of lease liability ( 1,169 ) ( 897 ) Total adjustments 17,515 10,039 Net cash provided by operating activities 73,115 91,169 Cash flows from investing activities, net of acquisitions: Purchases and originations of loans, including cash paid for student loan trusts, net of cash and restricted cash acquired ( 3,070,037 ) ( 173,931 ) Purchases of loans from a related party ( 299,380 ) ( 136,667 ) Proceeds from loan repayments, claims, and capitalized interest, net 3,253,780 423,817 Proceeds from sale of loans 213 72,502 Proceeds from sale of loans to a related party 107,969 59,939 Purchases of available-for-sale securities ( 143,321 ) ( 139,007 ) Proceeds from sales of available-for-sale securities 47,533 74,781 Proceeds from beneficial interest in loan securitizations 14,715 18,948 Purchases of other investments and issuance of notes receivable ( 99,521 ) ( 80,091 ) Proceeds from other investments and repayments of notes receivable 32,273 15,668 Redemption of held-to-maturity debt securities 1,406 3,776 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 6 NELNET, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) Three months ended March 31, 2026 2025 Cash flows from financing activities, net of acquisitions: Payments on bonds and notes payable $ ( 353,098 ) ( 347,217 ) Proceeds from issuance of bonds and notes payable 270,658 — Payments of debt issuance costs ( 2,056 ) ( 69 ) Increase in bank deposits, net 75,354 127,276 Decrease in due to customers ( 212,085 ) ( 99,176 ) Dividends paid ( 11,834 ) ( 10,161 ) Repurchases of common stock ( 16,280 ) ( 4,458 ) Proceeds from issuance of common stock 379 341 Redemption of noncontrolling interest ( 1,500 ) — Issuance of noncontrolling interests 7,658 8,869 Distribution to noncontrolling interests ( 1,371 ) ( 1,850 ) Net cash used in financing activities ( 244,175 ) ( 326,445 ) Effect of exchange rate changes on cash and restricted cash ( 3,048 ) 26 Net decrease in cash, cash equivalents, and restricted cash ( 143,021 ) ( 98,893 ) Cash, cash equivalents, and restricted cash, beginning of period 973,546 931,020 Cash, cash equivalents, and restricted cash, end of period $ 830,525 832,127 Supplemental disclosures of cash flow information: Cash disbursements made for interest $ 109,449 119,241 Cash disbursements made for income taxes, net of refunds and credits received (a) $ 1,269 1,311 Cash disbursements made for operating leases $ 1,373 1,179 Non-cash operating, investing and financing activity: ROU assets obtained in exchange for lease obligations $ 3,700 84 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 $ 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 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 Restricted cash 308,177 357,639 317,139 332,100 Restricted cash - due to customers 282,341 319,924 294,471 404,402 Cash, cash equivalents, and restricted cash $ 830,525 973,546 832,127 931,020 See accompanying notes to consolidated financial statements. 7 NELNET, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except per share amounts, unless otherwise noted) (unaudited) 1. Basis of Financial Reporting The accompanying unaudited consolidated financial statements of Nelnet, Inc. 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. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. 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"). 2. Loans and Accrued Interest Receivable and Allowance for Loan Losses Loans and accrued interest receivable consisted of the following: As of As of March 31, 2026 December 31, 2025 Non-Nelnet Bank: Federally insured loans (a): Stafford and other $ 1,819,085 1,772,172 Consolidation 5,246,278 5,665,071 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 Nelnet Bank: Federally insured loans (a): Stafford and other 23,366 23,960 Consolidation 435,205 148,360 Total 458,571 172,320 Private education loans 539,381 518,634 Consumer and other loans 263,498 266,608 Nelnet Bank loans 1,261,450 957,562 Accrued interest receivable 539,758 528,936 Loan discount and deferred lender fees, net of unamortized loan premiums and deferred origination costs ( 45,725 ) ( 46,894 ) Allowance for loan losses: Non-Nelnet Bank: Federally insured loans ( 40,043 ) ( 42,080 ) Private education loans ( 6,385 ) ( 6,894 ) Consumer loans and other financing receivables ( 79,593 ) ( 57,360 ) Non-Nelnet Bank allowance for loan losses ( 126,021 ) ( 106,334 ) Nelnet Bank: Federally insured loans ( 1,725 ) ( 676 ) Private education loans ( 13,182 ) ( 12,932 ) Consumer and other loans ( 14,263 ) ( 12,136 ) Nelnet Bank allowance for loan losses ( 29,170 ) ( 25,744 ) $ 10,009,471 10,006,695 8 (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: As of As of March 31, 2026 December 31, 2025 Non-Nelnet Bank: Federally insured loans (a) 0.57 % 0.57 % Private education loans 4.90 % 4.95 % Consumer loans and other financing receivables (b) 6.56 % 5.11 % Nelnet Bank: Federally insured loans (a) 0.38 % 0.39 % Private education loans 2.44 % 2.49 % 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 19.6 % 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 Charge-offs Recoveries Loan sales/contributions Balance at end of period Three months ended March 31, 2026 Non-Nelnet Bank: Federally insured loans $ 42,080 2,072 ( 2,968 ) — ( 1,141 ) 40,043 Private education loans 6,894 ( 306 ) ( 385 ) 182 — 6,385 Consumer loans and other financing receivables 57,360 46,700 ( 26,132 ) 1,665 — 79,593 Nelnet Bank: Federally insured loans 676 ( 31 ) ( 61 ) — 1,141 1,725 Private education loans 12,932 1,764 ( 1,792 ) 278 — 13,182 Consumer and other loans 12,136 3,373 ( 1,349 ) 103 — 14,263 $ 132,078 53,572 ( 32,687 ) 2,228 — 155,191 Three months ended March 31, 2025 Non-Nelnet Bank: Federally insured loans $ 49,091 2,634 ( 2,819 ) — — 48,906 Private education loans 11,130 — ( 933 ) 197 — 10,394 Consumer loans and other financing receivables 38,468 10,378 ( 5,178 ) 236 — 43,904 Nelnet Bank: Federally insured loans — 365 ( 3 ) — — 362 Private education loans 10,086 1,085 ( 1,394 ) 116 — 9,893 Consumer and other loans 6,115 1,003 ( 569 ) 68 — 6,617 $ 114,890 15,465 ( 10,896 ) 617 — 120,076 9 The following table summarizes annualized net charge-offs as a percentage of average loans for each of the Company's loan portfolios: Three months ended March 31, 2026 2025 Non-Nelnet Bank: Federally insured loans 0.17 % 0.13 % Private education loans 0.61 % 1.39 % Consumer loans and other financing receivables 8.94 % 5.44 % Nelnet Bank: Federally insured loans 0.09 % 0.05 % Private education loans 1.14 % 1.06 % 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 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 March 31, 2026 2025 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 10 Key Credit Quality Indicators Loan Status and Delinquencies Key credit quality indicators for the Company’s federally insured, private education, consumer, and other loan portfolios are loan status, including delinquencies. The impact of changes in loan status is incorporated into the allowance for loan losses calculation. Delinquencies have the potential to adversely impact the Company’s earnings through increased servicing and collection costs and account charge-offs. Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. The following table presents the Company’s loan status and delinquency amounts: As of March 31, 2026 As of December 31, 2025 As of March 31, 2025 Federally insured loans - Non-Nelnet Bank: Loans in-school/grace/deferment $ 338,990 4.8 % $ 336,749 4.5 % $ 401,868 4.6 % Loans in forbearance 497,236 7.0 493,277 6.6 546,170 6.3 Loans in repayment status: Loans current 5,427,325 87.1 % 5,701,660 86.3 % 6,536,815 84.7 % Loans delinquent 31-60 days 201,952 3.3 234,259 3.5 306,032 4.0 Loans delinquent 61-90 days 139,095 2.2 147,645 2.2 239,477 3.1 Loans delinquent 91-120 days 89,352 1.4 94,765 1.4 155,641 2.0 Loans delinquent 121-270 days 244,157 3.9 280,899 4.3 326,523 4.2 Loans delinquent 271 days or greater 127,256 2.1 147,989 2.3 157,758 2.0 Total loans in repayment 6,229,137 88.2 100.0 % 6,607,217 88.9 100.0 % 7,722,246 89.1 100.0 % Total federally insured loans 7,065,363 100.0 % 7,437,243 100.0 % 8,670,284 100.0 % Accrued interest receivable 501,152 506,943 551,512 Loan discount, net of unamortized premiums and deferred origination costs ( 25,898 ) ( 23,513 ) ( 28,020 ) Allowance for loan losses ( 40,043 ) ( 42,080 ) ( 48,906 ) Total federally insured loans and accrued interest receivable, net of allowance for loan losses $ 7,500,574 $ 7,878,593 $ 9,144,870 Private education loans - Non-Nelnet Bank: Loans in-school/grace/deferment $ 3,191 2.4 % $ 3,094 2.2 % $ 5,850 2.8 % Loans in forbearance 2,418 1.9 3,049 2.2 1,512 0.7 Loans in repayment status: Loans current 121,720 97.7 % 130,018 97.7 % 195,573 97.2 % Loans delinquent 31-60 days 1,324 1.0 1,253 0.9 2,136 1.1 Loans delinquent 61-90 days 498 0.4 515 0.4 1,794 0.9 Loans delinquent 91 days or greater 1,066 0.9 1,280 1.0 1,642 0.8 Total loans in repayment 124,608 95.7 100.0 % 133,066 95.6 100.0 % 201,145 96.5 100.0 % Total private education loans 130,217 100.0 % 139,209 100.0 % 208,507 100.0 % Accrued interest receivable 1,038 1,120 1,948 Loan discount, net of unamortized premiums ( 3,896 ) ( 4,317 ) ( 5,928 ) Allowance for loan losses ( 6,385 ) ( 6,894 ) ( 10,394 ) Total private education loans and accrued interest receivable, net of allowance for loan losses $ 120,974 $ 129,118 $ 194,133 Consumer loans and other financing receivables - Non-Nelnet Bank: Loans in forbearance $ 1,654 0.1 % $ 1,698 0.2 % $ 205 0.1 % Loans in repayment status: Loans current 1,175,343 97.0 % 1,085,883 96.9 % 369,364 97.0 % Loans delinquent 31-60 days 11,498 0.9 13,723 1.2 3,413 0.9 Loans delinquent 61-90 days 11,783 1.0 10,797 1.0 3,170 0.8 Loans delinquent 91 days or greater 13,321 1.1 10,616 0.9 5,063 1.3 Total loans in repayment 1,211,945 99.9 100.0 % 1,121,019 99.8 100.0 % 381,010 99.9 100.0 % Total consumer loans and other financing receivables 1,213,599 100.0 % 1,122,717 100.0 % 381,215 100.0 % Accrued interest receivable 1,854 1,497 2,071 Loan discount and deferred lender fees, net of unamortized premiums ( 19,669 ) ( 17,845 ) ( 9,437 ) Allowance for loan losses ( 79,593 ) ( 57,360 ) ( 43,904 ) 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 11 As of March 31, 2026 As of December 31, 2025 As of March 31, 2025 Federally insured loans - Nelnet Bank (a): Loans in-school/grace/deferment $ 16,937 3.7 % $ 6,162 3.6 % $ 3,000 2.7 % Loans in forbearance 20,739 4.5 8,787 5.1 5,433 4.9 Loans in repayment status: Loans current 377,734 89.7 % 141,357 89.9 % 92,027 90.4 % Loans delinquent 30-59 days 13,089 3.1 5,686 3.6 3,725 3.7 Loans delinquent 60-89 days 7,796 1.9 2,703 1.7 1,447 1.4 Loans delinquent 90-119 days 4,537 1.1 980 0.6 1,063 1.0 Loans delinquent 120-270 days 12,998 3.1 4,844 3.1 2,423 2.4 Loans delinquent 271 days or greater 4,741 1.1 1,801 1.1 1,069 1.1 Total loans in repayment 420,895 91.8 100.0 % 157,371 91.3 100.0 % 101,754 92.4 100.0 % Total federally insured loans 458,571 100.0 % 172,320 100.0 % 110,187 100.0 % Accrued interest receivable 25,824 10,939 5,065 Loan premium 4,677 910 1,307 Allowance for loan losses ( 1,725 ) ( 676 ) ( 362 ) Total federally insured loans and accrued interest receivable, net of allowance for loan losses $ 487,347 $ 183,493 $ 116,197 Private education loans - Nelnet Bank (a): Loans in-school/grace/deferment $ 72,044 13.4 % $ 56,667 10.9 % $ 45,026 9.2 % Loans in forbearance 825 0.2 1,684 0.3 1,370 0.3 Loans in repayment status: Loans current 457,713 98.1 % 451,221 98.0 % 436,547 98.5 % Loans delinquent 30-59 days 3,956 0.8 4,001 0.9 2,732 0.6 Loans delinquent 60-89 days 2,535 0.6 2,327 0.5 1,937 0.5 Loans delinquent 90 days or greater 2,308 0.5 2,734 0.6 1,839 0.4 Total loans in repayment 466,512 86.4 100.0 % 460,283 88.8 100.0 % 443,055 90.5 100.0 % Total private education loans 539,381 100.0 % 518,634 100.0 % 489,451 100.0 % Accrued interest receivable 7,790 6,599 4,636 Loan discount, net of unamortized premiums and deferred origination costs ( 4,183 ) ( 5,686 ) ( 3,973 ) Allowance for loan losses ( 13,182 ) ( 12,932 ) ( 9,893 ) Total private education loans and accrued interest receivable, net of allowance for loan losses $ 529,806 $ 506,615 $ 480,221 Consumer and other loans - Nelnet Bank (a): Loans in deferment $ 10,197 3.9 % $ 10,006 3.8 % $ 7,295 4.5 % Loans in repayment status: Loans current 251,425 99.3 % 254,448 99.2 % 153,416 99.2 % Loans delinquent 30-59 days 1,251 0.5 1,225 0.5 523 0.3 Loans delinquent 60-89 days 504 0.2 560 0.2 462 0.3 Loans delinquent 90 days or greater 121 — 369 0.1 299 0.2 Total loans in repayment 253,301 96.1 100.0 % 256,602 96.2 100.0 % 154,700 95.5 100.0 % Total consumer and other loans 263,498 100.0 % 266,608 100.0 % 161,995 100.0 % Accrued interest receivable 2,100 1,838 1,043 Loan premium, net of unaccreted discount 3,244 3,557 917 Allowance for loan losses ( 14,263 ) ( 12,136 ) ( 6,617 ) Total consumer and other loans and accrued interest receivable, net of allowance for loan losses $ 254,579 $ 259,867 $ 157,338 (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. 12 FICO Scores An additional key credit quality indicator for Nelnet Bank private education and consumer loans is FICO scores at the time of origination or purchase. The following tables highlight the gross principal balance of Nelnet Bank's portfolios, by year of origination, stratified by FICO score at the time of origination or purchase: Nelnet Bank Private Education Loans Loan balance as of March 31, 2026 Three months ended March 31, 2026 2025 2024 2023 2022 Prior years Total Percent of total FICO at origination or purchase: Less than 705 $ 1,267 7,145 2,689 2,680 3,818 20,757 38,356 7.1 % 705 - 734 1,443 12,227 4,648 7,117 16,417 19,946 61,798 11.5 735 - 764 2,100 16,936 5,318 6,957 25,489 30,957 87,757 16.3 765 - 794 3,004 23,267 6,357 4,772 39,552 44,256 121,208 22.5 Greater than 794 8,048 33,630 13,543 11,087 55,118 102,695 224,121 41.5 No FICO score available or required (a) — — 2,162 3,979 — — 6,141 1.1 $ 15,862 93,205 34,717 36,592 140,394 218,611 539,381 100.0 % Loan balance as of December 31, 2025 2025 2024 2023 2022 2021 Prior years Total Percent of total FICO at origination or purchase: Less than 705 $ 5,540 2,788 2,909 4,061 3,519 18,772 37,589 7.2 % 705 - 734 9,056 4,795 7,480 17,048 6,565 14,410 59,354 11.4 735 - 764 12,256 5,534 7,073 26,369 11,066 21,511 83,809 16.2 765 - 794 16,293 6,471 5,035 40,851 20,858 26,025 115,533 22.3 Greater than 794 23,370 14,017 11,819 57,404 40,529 68,618 215,757 41.6 No FICO score available or required (a) — 2,275 4,317 — — — 6,592 1.3 $ 66,515 35,880 38,633 145,733 82,537 149,336 518,634 100.0 % Nelnet Bank Consumer and Other Loans 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: Less than 720 $ 230 12,875 15,900 1,606 — 1,328 31,939 12.1 % 720 - 769 896 24,211 34,391 3,497 14 11,333 74,342 28.2 Greater than 769 3,656 52,019 44,781 5,493 88 7,721 113,758 43.2 No FICO score available or required (a) 902 31,984 9,833 429 258 53 43,459 16.5 $ 5,684 121,089 104,905 11,025 360 20,435 263,498 100.0 % Loan balance as of December 31, 2025 2025 2024 2023 2022 2021 Prior years Total Percent of total FICO at origination: Less than 720 $ 13,054 16,301 1,618 — 275 1,210 32,458 12.2 % 720 - 769 24,995 36,292 3,621 15 5,231 6,686 76,840 28.8 Greater than 769 54,681 47,537 5,819 90 5,084 3,161 116,372 43.6 No FICO score available or required (a) 30,719 9,473 431 259 53 3 40,938 15.4 $ 123,449 109,603 11,489 364 10,643 11,060 266,608 100.0 % (a) Loans with no FICO score available or required refers to loans issued to borrowers for which the Company cannot obtain a FICO score or are not required to under a special purpose credit program. Management proactively assesses the risk and size of this loan category and, when necessary, takes actions to mitigate the credit risk. 13 Nonaccrual Status The Company does not place federally insured loans on nonaccrual status due to the government guaranty. The amortized cost of private education, consumer, and other loans on nonaccrual status, as well as the allowance for loan losses related to such loans, as of March 31, 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 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 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: Loans in-school/grace/deferment $ — — — — 236 2,955 3,191 Loans in forbearance — — — — 50 2,368 2,418 Loans in repayment status: Loans current — — — 162 3,348 118,210 121,720 Loans delinquent 31-60 days — — — — 14 1,310 1,324 Loans delinquent 61-90 days — — — — — 498 498 Loans delinquent 91 days or greater — — — — 19 1,047 1,066 Total loans in repayment — — — 162 3,381 121,065 124,608 Total private education loans $ — — — 162 3,667 126,388 130,217 Accrued interest receivable 1,038 Loan discount, net of unamortized premiums ( 3,896 ) Allowance for loan losses ( 6,385 ) Total private education loans and accrued interest receivable, net of allowance for loan losses $ 120,974 Gross charge-offs - three months ended March 31, 2026 $ — — — — — 385 385 Consumer loans and other financing receivables - Non-Nelnet Bank: Loans in forbearance $ 56 154 482 962 — — 1,654 Loans in repayment status: Loans current 891,217 247,643 19,923 14,833 1,272 455 1,175,343 Loans delinquent 31-60 days 6,599 3,465 840 531 63 — 11,498 Loans delinquent 61-90 days 1,172 9,618 621 309 63 — 11,783 Loans delinquent 91 days or greater — 10,920 1,532 711 158 — 13,321 Total loans in repayment 898,988 271,646 22,916 16,384 1,556 455 1,211,945 Total consumer loans and other financing receivables $ 899,044 271,800 23,398 17,346 1,556 455 1,213,599 Accrued interest receivable 1,854 Loan discount and deferred lender fees, net of unamortized premiums ( 19,669 ) Allowance for loan losses ( 79,593 ) Total consumer loans and other financing receivables and accrued interest receivable, net of allowance for loan losses $ 1,116,191 Gross charge-offs - three months ended March 31, 2026 $ — 14,841 8,004 2,421 833 33 26,132 14 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 Loans in forbearance — 126 — 55 240 404 825 Loans in repayment status: Loans current 10,186 55,672 18,248 27,822 135,022 210,763 457,713 Loans delinquent 30-59 days 109 657 212 495 591 1,892 3,956 Loans delinquent 60-89 days — 148 200 340 348 1,499 2,535 Loans delinquent 90 days or greater — 176 166 207 97 1,662 2,308 Total loans in repayment 10,295 56,653 18,826 28,864 136,058 215,816 466,512 Total private education loans $ 15,862 93,205 34,717 36,592 140,394 218,611 539,381 Accrued interest receivable 7,790 Loan discount, net of unamortized premiums and deferred origination costs ( 4,183 ) Allowance for loan losses ( 13,182 ) Total private education loans and accrued interest receivable, net of allowance for loan losses $ 529,806 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 Loans in repayment status: Loans current 3,014 113,209 103,436 11,025 360 20,381 251,425 Loans delinquent 30-59 days — 151 1,059 — — 41 1,251 Loans delinquent 60-89 days — 140 364 — — — 504 Loans delinquent 90 days or greater — 62 46 — — 13 121 Total loans in repayment 3,014 113,562 104,905 11,025 360 20,435 253,301 Total consumer and other loans $ 5,684 121,089 104,905 11,025 360 20,435 263,498 Accrued interest receivable 2,100 Loan premium, net of unaccreted discount 3,244 Allowance for loan losses ( 14,263 ) Total consumer and other loans and accrued interest receivable, net of allowance for loan losses $ 254,579 Gross charge-offs - three months ended March 31, 2026 $ — 227 848 71 — 203 1,349 15 3. Bonds and Notes Payable The following tables summarize the Company’s outstanding debt obligations by type of instrument: As of March 31, 2026 Carrying amount Interest rate range Final maturity Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations: Bonds and notes based on indices $ 6,138,826 4.04 % - 5.79 % 10/25/33 - 11/27/90 Bonds and notes based on auction 12,315 0.01 % - 4.77 % 3/22/32 - 8/25/37 Total FFELP variable-rate bonds and notes 6,151,141 Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations 293,183 1.42 % - 3.45 % 10/25/67 - 8/27/68 FFELP loan warehouse facility 484,641 4.69 % / 4.71 % 7/30/27 Consumer loan warehouse and other facilities 753,040 4.93 % - 5.47 % 11/13/27 - 2/29/28 Variable-rate bonds and notes issued in private education loan asset-backed securitizations 31,457 5.15 % / 5.91 % 6/25/49 / 11/25/53 Fixed-rate bonds and notes issued in private education loan asset-backed securitization 23,888 7.15 % 11/25/53 Unsecured line of credit — — 3/31/31 Participation agreements 1,025 4.39 % - 5.82 % 5/4/26 / 7/28/32 7,738,375 Discount on bonds and notes payable and debt issuance costs ( 38,975 ) Total $ 7,699,400 As of December 31, 2025 Carrying amount Interest rate range Final maturity Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations: Bonds and notes based on indices $ 6,448,212 4.35 % - 5.85 % 3/22/32 - 11/27/90 Bonds and notes based on auction 24,150 0.01 % - 5.10 % 3/22/32 - 8/25/37 Total FFELP variable-rate bonds and notes 6,472,362 Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations 302,791 1.42 % - 3.45 % 10/25/67 - 8/27/68 FFELP loan warehouse facility 213,982 4.83 % / 4.84 % 1/29/27 Consumer loan warehouse and other facilities 767,951 5.01 % - 5.67 % 11/13/27 - 2/29/28 Variable-rate bonds and notes issued in private education loan asset-backed securitizations 35,770 5.15 % / 6.12 % 6/25/49 / 11/25/53 Fixed-rate bonds and notes issued in private education loan asset-backed securitization 27,391 7.15 % 11/25/53 Unsecured line of credit — — 9/22/26 Participation agreements 1,322 4.53 % - 5.82 % 5/4/26 / 7/28/32 7,821,569 Discount on bonds and notes payable and debt issuance costs ( 40,642 ) Total $ 7,780,927 16 Warehouse and Other Facilities The Company funds a portion of its loan acquisitions through the use of warehouse and other secured facilities. Loan warehousing allows the Company to buy and manage loans prior to transferring them into more permanent financing arrangements. The following table summarizes the Company's warehouse 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 Consumer loans and other financing receivables $ 925,000 753,040 171,960 11/13/2026 - 7/31/2027 11/13/2027 - 2/29/2028 50 % - 90 % $ 106,939 (a) On January 30, 2026, the Company extended the liquidity provisions and final maturity date on this facility to July 31, 2026 and July 30, 2027, respectively. (b) This facility has a static advance rate until the expiration date of the liquidity provisions. The maximum advance rates for this facility are 90 % to 96 %, and the minimum advance rates are 84 % to 90 %. In the event the liquidity provisions are not extended, the valuation agent has the right to perform a one-time mark to market on the underlying loans funded in this facility, subject to a floor. The loans would then be funded at this new advance rate until the final maturity date of the facility. Unsecured Line of Credit 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 Company has repurchased certain of its own asset-backed securities (bonds and notes payable) in the secondary market or retained such instruments upon initial issuance. For accounting purposes, these notes are eliminated in consolidation and are not included in the Company's consolidated financial statements. However, these securities remain legally outstanding at the trust level and the Company could sell these notes to third parties, redeem the notes at par as cash is generated by the trust estate, or pledge the securities as collateral on repurchase agreements. Upon a sale of these notes to third parties, the Company would obtain cash proceeds equal to the market value of the notes on the date of such sale. 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. 17 4. 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 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 2026 $ 1,150,000 2027 250,000 $ 1,400,000 Interest Rate Swaps – Floor Income Hedges 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. Maturity Notional amount Weighted-average fixed rate paid by the Company 2026 $ 200,000 3.92 % 2028 50,000 3.56 2029 50,000 3.17 2030 100,000 3.63 $ 400,000 3.71 % Nelnet Bank Derivatives 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 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 % 2029 25,000 3.37 2030 (a) 50,000 3.06 2032 (b) 25,000 4.03 2033 25,000 3.90 2035 (c) 30,000 3.79 $ 195,000 3.50 % (a) These $ 25 million notional amount derivatives have forward effective start dates in April 2026 and May 2026, respectively. (b) This $ 25 million notional amount derivative has a forward effective start date in February 2027. (c) This $ 30 million notional amount derivative has a forward effective start date in May 2028. 18 Interest Rate Swaps - 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. Maturity Notional amount Weighted-average fixed rate paid by the Company 2030 $ 25,000 3.57 % 2035 25,000 3.87 $ 50,000 3.72 % Consolidated Financial Statement Impact Related to Derivatives Balance Sheets 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 Nelnet Bank's derivatives as reflected in the consolidated balance sheets: Fair value of asset derivatives Fair value of liability derivatives 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 Interest rate swaps - third-party deposits (cash flow hedges) — — 182 484 $ 1,239 614 1,051 1,727 Statements of Income The following table summarizes the components of "derivative market value adjustments and derivative settlements, net" included in the consolidated statements of income related to derivative instruments that do not qualify for hedge accounting: Three months ended March 31, 2026 2025 Settlements: Basis swaps $ 153 153 Interest rate swaps - floor income hedges ( 49 ) 429 Interest rate swaps - Nelnet Bank intercompany deposits 39 164 Other derivative instruments 437 — Total settlements - income 580 746 Change in fair value: Basis swaps ( 148 ) ( 138 ) Interest rate swaps - floor income hedges 1,642 ( 3,657 ) 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 ) 19 5. Investments and Notes Receivable “Total investments and notes receivable” consisted of the following: 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 Investments at fair value: Available-for-sale asset-backed securities Non-Nelnet Bank: FFELP loan $ 37,620 2,940 ( 138 ) 40,422 36,824 2,950 ( 129 ) 39,645 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 Total Non-Nelnet Bank 469,728 8,408 ( 15,317 ) 462,819 463,005 8,882 ( 13,888 ) 457,999 Nelnet Bank: FFELP loan 251,671 6,225 ( 764 ) 257,132 258,208 6,513 ( 798 ) 263,923 Private education loan 12,815 — ( 36 ) 12,779 13,623 — ( 37 ) 13,586 Other debt securities 684,772 319 ( 5,092 ) 679,999 569,528 1,433 ( 1,481 ) 569,480 Total Nelnet Bank 949,258 6,544 ( 5,892 ) 949,910 841,359 7,946 ( 2,316 ) 846,989 Total available-for-sale asset-backed securities $ 1,418,986 14,952 ( 21,209 ) 1,412,729 1,304,364 16,828 ( 16,204 ) 1,304,988 Equity securities and funds measured at net asset value 110,508 109,648 Total investments at fair value 1,523,237 1,414,636 Other investments and notes receivable (not measured at fair value): Nelnet Bank: Held-to-maturity asset-backed securities - FFELP loan 210,145 211,299 Venture capital, funds, and other: Measurement alternative 229,112 227,962 Equity method 255,290 248,253 Total venture capital and funds 484,402 476,215 Real estate equity method 256,192 233,167 ALLO: Voting interest/equity method — — 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 Federally insured student loans 15,270 14,568 Total beneficial interest in loan securitizations, net of allowance 197,757 194,830 Solar (c) ( 268,466 ) ( 240,370 ) Notes receivable 32,090 32,085 Tax liens, affordable housing, and other 17,378 15,961 Total other investments and notes receivable (not measured at fair value) 954,124 933,335 Total investments and notes receivable $ 2,477,361 $ 2,347,971 (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. 20 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, 2026 2025 Losses from HLBV accounting (gross) $ ( 22,531 ) ( 2,616 ) Gains from sales (gross) — 3,072 (Losses) gains from solar investments, (gross) ( 22,531 ) 456 Less: losses attributable to noncontrolling members, net ( 13,445 ) ( 1,046 ) 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 Available-for-sale asset-backed securities Non-Nelnet Bank: FFELP loan $ — 205 2,538 34,877 37,620 FFELP loan and other debt securities - restricted — 8,014 50,150 134,332 192,496 Private education loan — — 390 187,117 187,507 Other debt securities 2,823 100 7,682 41,500 52,105 Total Non-Nelnet Bank 2,823 8,319 60,760 397,826 469,728 Fair value 2,790 8,394 60,507 391,128 462,819 Nelnet Bank: FFELP loan 44,096 12,316 20,015 175,244 251,671 Private education loan — — 12,667 148 12,815 Other debt securities — 33,389 113,569 537,814 684,772 Total Nelnet Bank 44,096 45,705 146,251 713,206 949,258 Fair value 43,806 45,777 145,743 714,584 949,910 Total available-for-sale asset-backed securities at amortized cost $ 46,919 54,024 207,011 1,111,032 1,418,986 Total available-for-sale asset-backed securities at fair value $ 46,596 54,171 206,250 1,105,712 1,412,729 Held-to-maturity asset-backed securities Nelnet Bank: FFELP loan - amortized cost $ — 2,412 12,807 194,926 210,145 FFELP loan - fair value $ — 2,420 12,625 199,270 214,315 Beneficial interest in loan securitizations (a): Amortized cost $ — — — — 197,757 Fair value $ — — — — 208,678 (a) The Company's beneficial interest in loan securitizations is not due at a single maturity date. 21 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 Asset-backed securities $ 210,145 4,937 ( 767 ) 214,315 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 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. All securities in the table below have been evaluated to determine if a credit loss exists. As part of that assessment, the Company concluded it currently has the intent and ability to retain these investments, and none of the unrealized losses were due to credit losses. As of March 31, 2026 Unrealized loss position less than 12 months Unrealized loss position 12 months or more Total Unrealized loss Fair value Unrealized loss Fair value Unrealized loss Fair value Available-for-sale asset-backed securities Non-Nelnet Bank: FFELP loan $ ( 9 ) 2,271 ( 129 ) 2,128 ( 138 ) 4,399 FFELP loan and other debt securities - restricted ( 648 ) 120,361 ( 190 ) 7,749 ( 838 ) 128,110 Private education loan ( 154 ) 33,708 ( 14,074 ) 139,571 ( 14,228 ) 173,279 Other debt securities ( 113 ) 14,651 — — ( 113 ) 14,651 Total Non-Nelnet Bank ( 924 ) 170,991 ( 14,393 ) 149,448 ( 15,317 ) 320,439 Nelnet Bank: FFELP loan ( 152 ) 42,124 ( 612 ) 53,856 ( 764 ) 95,980 Private education loan ( 26 ) 9,025 ( 10 ) 3,605 ( 36 ) 12,630 Other debt securities ( 3,828 ) 546,098 ( 1,264 ) 15,989 ( 5,092 ) 562,087 Total Nelnet Bank ( 4,006 ) 597,247 ( 1,886 ) 73,450 ( 5,892 ) 670,697 Total available-for-sale asset-backed securities $ ( 4,930 ) 768,238 ( 16,279 ) 222,898 ( 21,209 ) 991,136 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 March 31, 2026 2025 Gross proceeds from sales $ 47,533 74,781 Gross realized gains $ 430 933 Gross realized losses ( 8 ) ( 450 ) Net gains $ 422 483 22 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 March 31, 2026 2025 Unrealized (losses) gains recognized during the period, net $ ( 7,801 ) 1,383 Less: 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 6. 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. 23 7. Intangible Assets Intangible assets consisted of the following: Weighted-average remaining useful life as of March 31, 2026 (months) As of As of March 31, 2026 December 31, 2025 Amortizable intangible assets, net: Customer relationships (net of accumulated amortization of $ 61,218 and $ 58,561 , respectively) 81 $ 71,587 29,283 Computer software (net of accumulated amortization of $ 959 ) 57 25,989 — Total amortizable intangible assets, net 74 $ 97,576 29,283 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 March 31, 2026, the Company estimates it will record amortization expense as follows: 2026 (April 1 - December 31) $ 13,630 2027 18,105 2028 17,860 2029 15,044 2030 14,882 2031 and thereafter 18,055 $ 97,576 8. Goodwill The change in the carrying amount of goodwill by reportable operating segment was as follows: 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 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 9. Bank Deposits The following table summarizes Nelnet Bank’s deposits, excluding intercompany deposits: As of As of March 31, 2026 December 31, 2025 Retail and other savings $ 1,376,955 1,337,873 Brokered CDs, net of brokered deposit fees 350,218 311,015 Retail and other CDs, net of issuance fees 17,354 20,285 Total interest-bearing deposits $ 1,744,527 1,669,173 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. as required under a Capital and Liquidity Maintenance Agreement with the FDIC. All intercompany deposits held at Nelnet Bank are eliminated for consolidated financial reporting purposes. 24 The following table presents the remaining maturities of certificates of deposit as of March 31, 2026: One year or less $ 213,218 After one year to two years 9,945 After two years to three years 13,718 After three years to four years 61,959 After four years to five years 14,744 After five years 53,988 Total $ 367,572 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. 10. Earnings per Common Share The following table presents the components used to calculate basic and diluted earnings per share. The Company applies the two-class method in computing both basic and diluted earnings per share, which requires the calculation of separate earnings per share amounts for common stock and unvested share-based awards. Unvested share-based awards that contain nonforfeitable rights to dividends are considered securities which participate in undistributed earnings with common stock. Common shareholders Unvested restricted stock shareholders Total Common shareholders Unvested restricted stock shareholders Total Three months ended March 31, 2026 2025 Numerator: Net income attributable to Nelnet, Inc. $ 69,855 1,271 71,126 81,017 1,543 82,560 Denominator: Weighted-average common shares outstanding - basic and diluted 35,432,329 644,583 36,076,912 35,796,531 681,895 36,478,426 Earnings per share - basic and diluted $ 1.97 1.97 1.97 2.26 2.26 2.26 25 11. Segment Reporting See note 16 of the notes to consolidated financial statements included in the 2025 Annual Report for a description of the Company's operating segments . The following tables present the results of each of the Company's reportable operating segments reconciled to the consolidated financial statements: Three months ended March 31, 2026 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 $ — — 152,353 18,671 171,024 — — — 171,024 Investment interest 1,139 6,118 10,659 16,565 34,481 8,517 3,136 ( 5,932 ) 40,202 Total interest income 1,139 6,118 163,012 35,236 205,505 8,517 3,136 ( 5,932 ) 211,226 Interest expense 548 — 95,557 17,407 113,512 1,374 629 ( 5,932 ) 109,583 Net interest income 591 6,118 67,455 17,829 91,993 7,143 2,507 — 101,643 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): LSS revenue 127,842 — — — 127,842 — — — 127,842 ETSP revenue — 154,436 — — 154,436 — — — 154,436 Intersegment revenue 5,006 72 — — 5,078 — — ( 5,078 ) — Reinsurance premiums earned — — — — — 22,536 — — 22,536 Solar construction revenue — — — — — — — — — Other, net ( 211 ) — 26,246 1,558 27,593 ( 3,586 ) ( 13,578 ) 8 10,437 Derivative settlements, net — — 104 39 143 — 437 — 580 Derivative market value adjustments, net — — 1,494 1,000 2,494 — ( 907 ) — 1,587 Total other income (expense), net 132,637 154,508 27,844 2,597 317,586 18,950 ( 14,048 ) ( 5,070 ) 317,418 Cost of services and expenses: Total cost of services 2,087 49,953 — — 52,040 — — — 52,040 Salaries and benefits 67,621 42,696 1,628 2,915 114,860 1,512 23,015 ( 16 ) 139,371 Depreciation and amortization 4,002 2,369 — 352 6,723 — 2,447 — 9,170 Reinsurance losses and underwriting expenses — — — — — 23,605 — — 23,605 Postage expense 8,805 8,805 ( 8,805 ) — Servicing fees 8,152 1,227 9,379 ( 9,379 ) — Other expenses (a) 14,193 11,761 1,051 1,278 28,283 1,261 19,102 13,194 61,840 Intersegment expenses, net 16,719 6,034 1,352 657 24,762 457 ( 25,147 ) ( 72 ) — Total operating expenses 111,340 62,860 12,183 6,429 192,812 26,835 19,417 ( 5,078 ) 233,986 Income (loss) before income taxes 19,801 47,813 30,520 9,219 107,353 ( 742 ) ( 30,958 ) 8 75,661 Income tax (expense) benefit ( 4,752 ) ( 11,475 ) ( 7,321 ) ( 2,106 ) ( 25,654 ) 162 5,431 — ( 20,061 ) Net income (loss) 15,049 36,338 23,199 7,113 81,699 ( 580 ) ( 25,527 ) 8 55,600 Net (income) loss attributable to noncontrolling interests — — ( 18 ) — ( 18 ) 69 15,483 ( 8 ) 15,526 Net income (loss) attributable to Nelnet, Inc. $ 15,049 36,338 23,181 7,113 81,681 ( 511 ) ( 10,044 ) — 71,126 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 - 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. 26 Three months ended March 31, 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 $ — — 154,469 11,971 166,440 — — — 166,439 Investment interest 721 6,939 12,769 12,496 32,925 8,820 2,312 ( 2,669 ) 41,389 Total interest income 721 6,939 167,238 24,467 199,365 8,820 2,312 ( 2,669 ) 207,828 Interest expense — — 114,303 12,077 126,380 770 633 ( 2,669 ) 125,114 Net interest income 721 6,939 52,935 12,390 72,985 8,050 1,679 — 82,714 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): LSS revenue 120,741 — — — 120,741 — — — 120,741 ETSP revenue — 147,330 — — 147,330 — — — 147,330 Intersegment revenue 5,684 64 — — 5,748 — — ( 5,748 ) — Reinsurance premiums earned — — — — — 24,687 — — 24,687 Solar construction revenue — — — — — — 3,995 — 3,995 Other, net 112 — 4,904 142 5,158 1,110 18,238 97 24,603 Derivative settlements, net — — 582 164 746 — — — 746 Derivative market value adjustments, net — — ( 3,795 ) ( 2,529 ) ( 6,324 ) — — — ( 6,324 ) Total other income (expense), net 126,537 147,394 1,691 ( 2,223 ) 273,399 25,797 22,233 ( 5,651 ) 315,778 Cost of services and expenses: Total cost of services 1,633 48,047 — — 49,680 — 7,828 — 57,508 Salaries and benefits 69,574 41,741 1,221 2,816 115,352 478 22,496 ( 104 ) 138,223 Depreciation and amortization 2,654 2,430 — 339 5,423 — 3,833 — 9,255 Reinsurance losses and underwriting expenses — — — — — 22,212 — — 22,212 Postage expense 7,575 7,575 ( 7,575 ) — Servicing fees 6,911 667 7,578 ( 7,578 ) — Other expenses (a) 10,832 9,048 888 1,358 22,126 853 15,586 9,741 48,307 Intersegment expenses, net 16,478 5,605 1,250 710 24,043 244 ( 24,055 ) ( 232 ) — Total operating expenses 107,113 58,824 10,270 5,890 182,097 23,787 17,860 ( 5,748 ) 217,997 Income (loss) before income taxes 18,512 47,462 29,834 1,952 97,760 10,060 ( 1,776 ) 97 106,140 Income tax (expense) benefit ( 4,443 ) ( 11,402 ) ( 7,156 ) ( 434 ) ( 23,435 ) ( 2,385 ) 810 — ( 25,010 ) Net income (loss) 14,069 36,060 22,678 1,518 74,325 7,675 ( 966 ) 97 81,130 Net (income) loss attributable to noncontrolling interests — 45 ( 17 ) — 28 ( 124 ) 1,623 ( 97 ) 1,430 Net income (loss) attributable to Nelnet, Inc. $ 14,069 36,105 22,661 1,518 74,353 7,551 657 — 82,560 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: LSS - communications, professional fees, collection costs, software, and computer services and subscriptions. ETSP - advertising, professional fees, analysis fees, computer services and subscriptions, and travel. AGM - trustee fees and professional fees. Nelnet Bank - 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 27 12. Disaggregated Revenue The following tables present disaggregated revenue for the Company's fee-based operating segments: Loan Servicing and Systems Three months ended March 31, 2026 2025 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 FFELP loan servicing 2,254 2,633 Software services 11,763 6,992 Outsourced services 713 1,062 Loan servicing and systems revenue $ 127,842 120,741 (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 March 31, 2026 2025 Tuition payment plan services $ 41,855 40,072 Payment processing 55,887 51,536 Education technology services 56,114 55,695 Other 580 27 Education technology services and payments revenue $ 154,436 147,330 Other Income (Expense) The following table presents the components of "other, net" in "other income (expense)" on the consolidated statements of income: Three months ended March 31, 2026 2025 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 ALLO preferred return 978 8,416 Loss from solar investments, net ( 22,531 ) 456 Other 5,479 6,205 Other, net $ 10,437 24,603 28 13. Reinsurance The following table presents reinsurance premiums written and earned and loss reserves, commissions, and broker fees: Three months ended March 31, 2026 2025 Premiums written: Assumed $ 68,320 60,853 Ceded ( 16,983 ) ( 23,229 ) Net premiums written $ 51,337 37,624 Premiums earned: Assumed $ 40,326 47,723 Ceded ( 17,790 ) ( 23,036 ) Net premiums earned $ 22,536 24,687 Loss reserve, commissions, and broker fees: Assumed $ 39,975 42,641 Ceded ( 16,370 ) ( 20,429 ) Reinsurance losses and underwriting expenses $ 23,605 22,212 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. 14. Major Customer 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. 15. Fair Value The following tables present the Company’s financial assets and liabilities that are measured at fair value on a recurring basis: As of March 31, 2026 As of December 31, 2025 Level 1 Level 2 Total Level 1 Level 2 Total Assets: Investments: Asset-backed debt securities - available-for-sale $ 100 1,412,629 1,412,729 100 1,304,888 1,304,988 Equity securities 18,428 — 18,428 22,107 — 22,107 Equity securities measured at net asset value (a) 92,080 87,541 Total investments 18,528 1,412,629 1,523,237 22,207 1,304,888 1,414,636 Derivative instruments — 1,239 1,239 — 614 614 Total assets $ 18,528 1,413,868 1,524,476 22,207 1,305,502 1,415,250 Liabilities: Derivative instruments $ — 1,051 1,051 — 1,727 1,727 Total liabilities $ — 1,051 1,051 — 1,727 1,727 (a) In accordance with the Fair Value Measurements Topic of the FASB Accounting Standards Codification, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. 29 The following table summarizes the fair values of all of the Company’s financial instruments on the consolidated balance sheets. 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 March 31, 2026 Fair value Carrying value Level 1 Level 2 Level 3 Financial assets: Loans receivable $ 9,954,184 9,469,713 — — 9,954,184 Accrued loan interest receivable 539,758 539,758 — 539,758 — Cash and cash equivalents 240,007 240,007 240,007 — — Investments at fair value 1,523,237 1,523,237 18,528 1,412,629 — Investments - held-to-maturity asset-backed securities 214,315 210,145 — 214,315 — Notes receivable 32,090 32,090 — 32,090 — Beneficial interest in loan securitizations 208,678 197,757 — — 208,678 Restricted cash 308,177 308,177 308,177 — — Restricted cash – due to customers 282,341 282,341 282,341 — — Derivative instruments 1,239 1,239 — 1,239 — Financial liabilities: Bonds and notes payable 7,692,383 7,699,400 — 7,692,383 — Accrued interest payable 16,916 16,916 — 16,916 — Bank deposits 1,756,076 1,744,527 1,129,702 626,374 — Due to customers 544,444 544,444 544,444 — — Derivative instruments 1,051 1,051 — 1,051 — As of December 31, 2025 Fair value Carrying value Level 1 Level 2 Level 3 Financial assets: Loans receivable $ 9,978,262 9,477,759 — — 9,978,262 Accrued loan interest receivable 528,936 528,936 — 528,936 — Cash and cash equivalents 295,983 295,983 295,983 — — Investments at fair value 1,414,636 1,414,636 22,207 1,304,888 — Investments - held-to-maturity asset-backed securities 215,722 211,299 — 215,722 — Notes receivable 32,085 32,085 — 32,085 — Beneficial interest in loan securitizations 211,398 194,830 — — 211,398 Restricted cash 357,639 357,639 357,639 — — Restricted cash – due to customers 319,924 319,924 319,924 — — Derivative instruments 614 614 — 614 — Financial liabilities: Bonds and notes payable 7,784,936 7,780,927 — 7,784,936 — Accrued interest payable 20,426 20,426 — 20,426 — Bank deposits 1,658,675 1,669,173 1,040,077 618,598 — Due to customers 457,844 457,844 457,844 — — Derivative instruments 1,727 1,727 — 1,727 —