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 June 30, 2026 December 31, 2025 Assets: Loans and accrued interest receivable (net of allowance for loan losses of $ 165,065 and $ 132,078 , respectively) $ 9,802,215 10,006,695 Cash and cash equivalents: Cash and cash equivalents - not held at a related party 46,783 128,142 Cash and cash equivalents - held at a related party 125,647 167,841 Total cash and cash equivalents 172,430 295,983 Investments and notes receivable: Investments at fair value 1,701,392 1,414,636 Other investments and notes receivable, net 967,352 933,335 Total investments and notes receivable 2,668,744 2,347,971 Restricted cash 285,845 357,639 Restricted cash - due to customers 508,039 319,924 Accounts receivable (net of allowance for doubtful accounts of $ 4,098 and $ 2,758 , respectively) 169,922 193,453 Goodwill 206,835 158,029 Intangible assets, net 96,003 29,283 Property and equipment, net 80,732 75,532 Other assets 284,299 279,274 Total assets $ 14,275,064 14,063,783 Liabilities: Bonds and notes payable $ 7,043,156 7,780,927 Accrued interest payable 16,265 20,426 Bank deposits 2,219,249 1,669,173 Other liabilities 521,048 558,184 Due to customers 839,910 457,844 Total liabilities 10,639,628 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 25,163,944 shares and 25,259,718 shares, respectively 252 253 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 1,777 1,481 Retained earnings 3,770,251 3,681,333 Accumulated other comprehensive (loss) earnings, net ( 1,847 ) 2,619 Total Nelnet, Inc. shareholders' equity 3,770,539 3,685,792 Noncontrolling interests ( 135,103 ) ( 108,563 ) Total equity 3,635,436 3,577,229 Total liabilities and equity $ 14,275,064 14,063,783 Supplemental information - assets and liabilities of consolidated education and other lending variable-interest entities: Loans and accrued interest receivable $ 7,742,049 8,780,878 Restricted cash 271,573 326,281 Bonds and notes payable ( 7,189,895 ) ( 8,112,424 ) Accrued interest payable and other liabilities ( 121,220 ) ( 133,502 ) Net assets of consolidated education and other lending variable-interest entities $ 702,507 861,233 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 Six months ended June 30, June 30, 2026 2025 2026 2025 Interest income: Loan interest $ 164,598 172,104 335,622 338,543 Investment interest 40,315 40,185 80,517 81,574 Total interest income 204,913 212,289 416,139 420,117 Interest expense on bonds and notes payable and bank deposits 108,902 132,854 218,485 257,968 Net interest income 96,011 79,435 197,654 162,149 Less provision for loan losses 41,077 17,930 94,321 33,267 Less provision for beneficial interests 2,441 4,977 6,571 6,487 Net interest income after provision 52,493 56,528 96,762 122,395 Other income (expense): Loan servicing and systems revenue 132,244 120,724 260,086 241,465 Education technology services and payments revenue 118,884 118,184 273,319 265,515 Reinsurance premiums earned 40,625 26,112 63,161 50,799 Solar construction revenue — 1,259 — 5,254 Other, net 18,399 22,976 28,836 47,579 Gain on partial redemption of ALLO investment — 175,044 — 175,044 Derivative market value adjustments and derivative settlements, net 3,852 ( 3,122 ) 6,019 ( 8,701 ) Total other income (expense), net 314,004 461,177 631,421 776,955 Cost of services and expenses: Loan servicing contract fulfillment and acquisition costs 2,087 1,845 4,174 3,478 Cost to provide education technology services and payments 39,183 39,844 89,136 87,891 Cost to provide solar construction services — 14,050 — 21,878 Total cost of services 41,270 55,739 93,310 113,247 Salaries and benefits 152,664 134,699 292,035 272,922 Depreciation and amortization 10,142 7,624 19,312 16,879 Reinsurance losses and underwriting expenses 32,809 25,662 56,414 47,874 Other expenses 64,199 56,617 126,038 104,924 Total operating expenses 259,814 224,602 493,799 442,599 Income before income taxes 65,413 237,364 141,074 343,504 Income tax expense ( 19,942 ) ( 59,510 ) ( 40,003 ) ( 84,521 ) Net income 45,471 177,854 101,071 258,983 Net loss attributable to noncontrolling interests 21,191 3,605 36,717 5,035 Net income attributable to Nelnet, Inc. $ 66,662 181,459 137,788 264,018 Earnings per common share: Net income attributable to Nelnet, Inc. shareholders - basic and diluted $ 1.85 4.97 3.82 7.24 Weighted-average common shares outstanding - basic and diluted 36,037,509 36,485,605 36,057,102 36,482,035 See accompanying notes to consolidated financial statements. 3 NELNET, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Dollars in thousands) (unaudited) Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 Net income $ 45,471 177,854 101,071 258,983 Other comprehensive income (loss): Net changes related to foreign currency translation adjustments $ ( 1,575 ) ( 131 ) ( 2,772 ) ( 147 ) Net changes related to available-for-sale debt securities: Unrealized holding gains (losses) arising during period, net 4,213 ( 657 ) ( 2,245 ) ( 3,425 ) Reclassification of gains recognized in net income, net ( 479 ) ( 595 ) ( 902 ) ( 1,077 ) Amortization of net unrealized loss on securities transferred from available-for-sale to held-to-maturity 8 94 13 141 Income tax effect ( 898 ) 2,844 278 ( 880 ) 752 ( 2,382 ) 1,047 ( 3,314 ) Net changes related to cash flow hedges: Fair value adjustments during period, net 565 ( 625 ) 867 ( 625 ) Income tax effect ( 136 ) 429 150 ( 475 ) ( 208 ) 659 150 ( 475 ) Net changes related to equity method investee's other comprehensive income: Cash flow hedge fair value adjustment during period ( 15 ) ( 385 ) 37 340 Income tax effect 4 ( 11 ) 92 ( 293 ) ( 8 ) 29 ( 82 ) 258 Other comprehensive income (loss) 1,687 ( 1,779 ) ( 4,466 ) ( 3,678 ) Comprehensive income 47,158 176,075 96,605 255,305 Comprehensive loss attributable to noncontrolling interests 21,191 3,605 36,717 5,035 Comprehensive income attributable to Nelnet, Inc. $ 68,349 179,680 133,322 260,340 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 (loss) earnings Noncontrolling interests Total equity Class A Class B Balance as of March 31, 2025 — 25,697,581 10,658,604 $ — 257 107 6,649 3,412,939 ( 429 ) ( 56,514 ) 3,363,009 Net income (loss) — — — — — — — 181,459 — ( 3,605 ) 177,854 Other comprehensive loss — — — — — — — — ( 1,779 ) — ( 1,779 ) Issuance of noncontrolling interests — — — — — — — — — 3,882 3,882 Distribution to noncontrolling interests — — — — — — — — — ( 30,670 ) ( 30,670 ) Cash dividends on Class A and Class B common stock - $ 0.28 per share — — — — — — — ( 10,162 ) — — ( 10,162 ) Issuance of common stock, net of forfeitures — 24,703 — — — — 2,153 — — — 2,153 Compensation expense for stock-based awards — — — — — — 3,296 — — — 3,296 Repurchase of common stock — ( 183,554 ) — — ( 2 ) — ( 11,461 ) ( 9,897 ) — — ( 21,360 ) Acquisition of remaining 20 % of NextGen, net of tax — — — — — — — 1,853 — ( 5,383 ) ( 3,530 ) Balance as of June 30, 2025 — 25,538,730 10,658,604 $ — 255 107 637 3,576,192 ( 2,208 ) ( 92,290 ) 3,482,693 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 Net income (loss) — — — — — — — 66,662 — ( 21,191 ) 45,471 Other comprehensive income — — — — — — — — 1,687 — 1,687 Issuance of noncontrolling interests — — — — — — — — — 22,557 22,557 Distribution to noncontrolling interests — — — — — — — — — ( 11,190 ) ( 11,190 ) Cash dividends on Class A and Class B common stock - $ 0.33 per share — — — — — — — ( 11,820 ) — — ( 11,820 ) Issuance of common stock, net of forfeitures — 19,355 — — — — 1,935 — — — 1,935 Compensation expense for stock-based awards — — — — — — 5,137 — — — 5,137 Repurchase of common stock — ( 190,281 ) — — ( 1 ) — ( 6,830 ) ( 17,522 ) — — ( 24,353 ) Balance as of June 30, 2026 — 25,163,944 10,616,675 $ — 252 106 1,777 3,770,251 ( 1,847 ) ( 135,103 ) 3,635,436 See accompanying notes to consolidated financial statements. 5 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 (loss) earnings 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) — — — — — — — 264,018 — ( 5,035 ) 258,983 Other comprehensive loss — — — — — — — — ( 3,678 ) — ( 3,678 ) Issuance of noncontrolling interests — — — — — — — — — 6,179 6,179 Distribution to noncontrolling interests — — — — — — — — — ( 37,406 ) ( 37,406 ) Cash dividends on Class A and Class B common stock - $ 0.56 per share — — — — — — — ( 20,322 ) — — ( 20,322 ) Issuance of common stock, net of forfeitures — 126,027 — — 1 — 2,816 — — — 2,817 Compensation expense for stock-based awards — — — — — — 6,351 — — — 6,351 Repurchase of common stock — ( 222,045 ) — — ( 2 ) — ( 15,919 ) ( 9,897 ) — — ( 25,818 ) Acquisition of remaining 20 % of NextGen, net of tax — — — — — — — 1,853 — ( 5,383 ) ( 3,530 ) Balance as of June 30, 2025 — 25,538,730 10,658,604 $ — 255 107 637 3,576,192 ( 2,208 ) ( 92,290 ) 3,482,693 Balance as of 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) — — — — — — — 137,788 — ( 36,717 ) 101,071 Other comprehensive loss — — — — — — — — ( 4,466 ) — ( 4,466 ) Issuance of noncontrolling interests — — — — — — — — — 24,395 24,395 Distribution to noncontrolling interests — — — — — — — — — ( 14,183 ) ( 14,183 ) Cash dividends on Class A and Class B common stock - $ 0.66 per share — — — — — — — ( 23,655 ) — — ( 23,655 ) Issuance of common stock, net of forfeitures — 220,826 — — 2 — 8,477 — — — 8,479 Compensation expense for stock-based awards — — — — — — 8,699 — — — 8,699 Repurchase of common stock — ( 316,600 ) — — ( 3 ) — ( 16,880 ) ( 23,750 ) — — ( 40,633 ) Redemption of 10 % minority interests of WRCM — — — — — — — ( 1,465 ) — ( 35 ) ( 1,500 ) Balance as of June 30, 2026 — 25,163,944 10,616,675 $ — 252 106 1,777 3,770,251 ( 1,847 ) ( 135,103 ) 3,635,436 See accompanying notes to consolidated financial statements. 6 NELNET, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in thousands) (unaudited) Six months ended June 30, 2026 2025 Net income attributable to Nelnet, Inc. $ 137,788 264,018 Net loss attributable to noncontrolling interests ( 36,717 ) ( 5,035 ) Net income 101,071 258,983 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 42,933 52,406 Loan discount and deferred lender fees accretion ( 86,264 ) ( 42,502 ) Provision for loan losses 94,321 33,267 Provision for beneficial interests 6,571 6,487 Derivative market value adjustments ( 5,273 ) 10,190 Gain on partial redemption of ALLO investment — ( 175,044 ) Loss (gain) on sale of loans, net 132 ( 909 ) Loss (gain) on investments, net 25,060 ( 19,650 ) Deferred income tax benefit ( 12,192 ) ( 88,924 ) Non-cash compensation expense 8,868 6,513 Impairment expense — 5,392 Other ( 1,692 ) ( 3,019 ) Changes in operating assets and liabilities: (Increase) decrease in loan and investment accrued interest receivable ( 23,468 ) 15,218 Decrease in accounts receivable 41,565 32,523 (Increase) decrease in other assets ( 50,126 ) 23,510 Decrease in the carrying amount of ROU asset 2,152 1,958 Decrease in accrued interest payable ( 4,161 ) ( 6,072 ) Increase in other liabilities 13,951 65,986 Decrease in the carrying amount of lease liability ( 2,439 ) ( 3,384 ) Total adjustments 49,938 ( 86,054 ) Net cash provided by operating activities 151,009 172,929 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 ( 6,140,240 ) ( 368,499 ) Purchases of loans from a related party ( 415,039 ) ( 136,667 ) Proceeds from loan repayments, claims, and capitalized interest, net 6,596,556 881,096 Proceeds from sale of loans 262 72,626 Proceeds from sale of loans to a related party 157,861 60,181 Purchases of available-for-sale securities ( 408,618 ) ( 240,476 ) Proceeds from sales of available-for-sale securities 148,021 109,609 Proceeds from beneficial interest in loan securitizations 42,193 38,235 Purchases of other investments and issuance of notes receivable ( 271,653 ) ( 161,828 ) Proceeds from other investments and repayments of notes receivable 83,476 454,829 Purchases of held-to-maturity debt securities ( 2,279 ) — Redemption of held-to-maturity debt securities 3,190 7,796 Purchases of property and equipment ( 17,875 ) ( 7,074 ) Business acquisitions, net of cash and restricted cash acquired 189,286 — Net cash (used in) provided by investing activities $ ( 34,859 ) 709,828 7 NELNET, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) Six months ended June 30, 2026 2025 Cash flows from financing activities, net of acquisitions: Payments on bonds and notes payable $ ( 995,241 ) ( 1,117,852 ) Proceeds from issuance of bonds and notes payable 255,059 25 Payments of debt issuance costs ( 2,181 ) ( 3,999 ) Increase in bank deposits, net 550,076 195,911 Increase (decrease) in due to customers 94,491 ( 49,489 ) Dividends paid ( 23,655 ) ( 20,322 ) Repurchases of common stock ( 40,633 ) ( 25,818 ) Proceeds from issuance of common stock 952 920 Redemption of noncontrolling interest ( 1,500 ) ( 3,944 ) Issuance of noncontrolling interests 56,249 15,580 Distribution to noncontrolling interests ( 3,276 ) ( 3,351 ) Net cash used in financing activities ( 109,659 ) ( 1,012,339 ) Effect of exchange rate changes on cash and restricted cash ( 13,723 ) 338 Net decrease in cash, cash equivalents, and restricted cash ( 7,232 ) ( 129,244 ) Cash, cash equivalents, and restricted cash, beginning of period 973,546 931,020 Cash, cash equivalents, and restricted cash, end of period $ 966,314 801,776 Supplemental disclosures of cash flow information: Cash disbursements made for interest $ 215,947 244,109 Cash disbursements made for income taxes, net of refunds and credits received (a) $ 3,900 26,886 Cash disbursements made for operating leases $ 2,901 2,604 Non-cash operating, investing and financing activity: ROU assets obtained in exchange for lease obligations $ 5,525 6,495 Student loans and other assets acquired $ — 672,601 Borrowings and other liabilities assumed in acquisition of student loans $ — 705,439 Distribution to noncontrolling interests $ 10,907 34,055 Issuance of noncontrolling interests $ 31,854 9,401 (a) The Company utilized $ 33.1 million and $ 36.6 million of federal and state tax credits related primarily to renewable energy during the six months ended June 30, 2026 and 2025, respectively. Supplemental disclosures of non-cash activities regarding the Company's business acquisitions 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 June 30, 2026 December 31, 2025 June 30, 2025 December 31, 2024 Total cash and cash equivalents $ 172,430 295,983 225,753 194,518 Restricted cash 285,845 357,639 317,958 332,100 Restricted cash - due to customers 508,039 319,924 258,065 404,402 Cash, cash equivalents, and restricted cash $ 966,314 973,546 801,776 931,020 See accompanying notes to consolidated financial statements. 8 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 June 30, 2026 and for the three and six months ended June 30, 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 and six months ended June 30, 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 June 30, 2026 December 31, 2025 Non-Nelnet Bank: Federally insured loans (a): Stafford and other $ 1,744,658 1,772,172 Consolidation 4,748,739 5,665,071 Total 6,493,397 7,437,243 Private education loans 122,818 139,209 Consumer loans and other financing receivables (b) 1,213,556 1,122,717 Non-Nelnet Bank loans 7,829,771 8,699,169 Nelnet Bank: Federally insured loans (a): Stafford and other 53,525 23,960 Consolidation 799,816 148,360 Total 853,341 172,320 Private education loans 521,159 518,634 Consumer and other loans 264,597 266,608 Nelnet Bank loans 1,639,097 957,562 Accrued interest receivable 542,799 528,936 Loan discount and deferred lender fees, net of unamortized loan premiums and deferred origination costs ( 44,387 ) ( 46,894 ) Allowance for loan losses: Non-Nelnet Bank: Federally insured loans ( 38,173 ) ( 42,080 ) Private education loans ( 6,239 ) ( 6,894 ) Consumer loans and other financing receivables ( 92,215 ) ( 57,360 ) Non-Nelnet Bank allowance for loan losses ( 136,627 ) ( 106,334 ) Nelnet Bank: Federally insured loans ( 3,016 ) ( 676 ) Private education loans ( 12,609 ) ( 12,932 ) Consumer and other loans ( 12,813 ) ( 12,136 ) Nelnet Bank allowance for loan losses ( 28,438 ) ( 25,744 ) $ 9,802,215 10,006,695 9 (a) During 2026, the Company's Asset Generation and Management operating segment (non-Nelnet Bank) contributed certain student loan securitization trusts to Nelnet Bank that included $ 716.3 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 June 30, 2026 and December 31, 2025, the balance of Pay Later receivables was $ 699.8 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 June 30, 2026 December 31, 2025 Non-Nelnet Bank: Federally insured loans (a) 0.59 % 0.57 % Private education loans 5.08 % 4.95 % Consumer loans and other financing receivables (b) 7.60 % 5.11 % Nelnet Bank: Federally insured loans (a) 0.35 % 0.39 % Private education loans 2.42 % 2.49 % Consumer and other loans 4.84 % 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 20.1 % and 19.3 %, and for Nelnet Bank was 17.1 % and 17.3 %, as of June 30, 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 (1) a shift in loan mix, reflecting growth in certain consumer loans (non-Pay Later receivables) that carry a higher expected loss rate than the overall portfolio; and (2) the seasoning of Pay Later receivables, which the Company began acquiring in the third quarter of 2025. This increase was not due to a deterioration in credit quality, and delinquency and net charge-off rates remained consistent with management's expectations during the period. 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 Initial allowance on loans purchased with credit deterioration Loan sales/contributions Balance at end of period Three months ended June 30, 2026 Non-Nelnet Bank: Federally insured loans $ 40,043 2,387 ( 2,687 ) — — ( 1,570 ) 38,173 Private education loans 6,385 — ( 392 ) 246 — — 6,239 Consumer loans and other financing receivables 79,593 38,939 ( 29,396 ) 3,079 — — 92,215 Nelnet Bank: Federally insured loans 1,725 ( 158 ) ( 121 ) — — 1,570 3,016 Private education loans 13,182 572 ( 1,498 ) 353 — — 12,609 Consumer and other loans 14,263 ( 717 ) ( 829 ) 96 — — 12,813 $ 155,191 41,023 ( 34,923 ) 3,774 — — 165,065 Three months ended June 30, 2025 Non-Nelnet Bank: Federally insured loans $ 48,906 2,112 ( 3,391 ) — — — 47,627 Private education loans 10,394 ( 2,760 ) ( 523 ) 295 — — 7,406 Consumer loans and other financing receivables 43,904 11,781 ( 7,967 ) 310 — — 48,028 Nelnet Bank: Federally insured loans 362 9 ( 16 ) — — — 355 Private education loans 9,893 2,839 ( 1,739 ) 307 1,060 — 12,360 Consumer and other loans 6,617 3,731 ( 878 ) 103 — — 9,573 $ 120,076 17,712 ( 14,514 ) 1,015 1,060 — 125,349 10 Balance at beginning of period Provision (negative provision) for loan losses Charge-offs Recoveries Initial allowance on loans purchased with credit deterioration Loan sales/contributions Balance at end of period Six months ended June 30, 2026 Non-Nelnet Bank: Federally insured loans $ 42,080 4,459 ( 5,655 ) — — ( 2,711 ) 38,173 Private education loans 6,894 ( 306 ) ( 777 ) 428 — — 6,239 Consumer loans and other financing receivables 57,360 85,639 ( 55,529 ) 4,745 — — 92,215 Nelnet Bank: Federally insured loans 676 ( 191 ) ( 180 ) — — 2,711 3,016 Private education loans 12,932 2,337 ( 3,291 ) 631 — — 12,609 Consumer and other loans 12,136 2,657 ( 2,178 ) 198 — — 12,813 $ 132,078 94,595 ( 67,610 ) 6,002 — — 165,065 Six months ended June 30, 2025 Non-Nelnet Bank: Federally insured loans $ 49,091 4,746 ( 6,210 ) — — — 47,627 Private education loans 11,130 ( 2,760 ) ( 1,457 ) 493 — — 7,406 Consumer loans and other financing receivables 38,468 22,158 ( 13,143 ) 545 — — 48,028 Nelnet Bank: Federally insured loans — 374 ( 19 ) — — — 355 Private education loans 10,086 3,925 ( 3,134 ) 423 1,060 — 12,360 Consumer and other loans 6,115 4,734 ( 1,447 ) 171 — — 9,573 $ 114,890 33,177 ( 25,410 ) 1,632 1,060 — 125,349 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 Non-Nelnet Bank consumer loans and other financing receivables during the three and six month periods ended June 30, 2026 compared with the same periods in 2025 was due to an increase in consumer loans and Pay Later receivables acquired during 2026 as compared with 2025. The Company began to purchase Pay Later receivables in 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 consistent with management’s expectations. The following table summarizes annualized net charge-offs as a percentage of average loans for each of the Company's loan portfolios: Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 Non-Nelnet Bank: Federally insured loans 0.16 % 0.16 % 0.16 % 0.14 % Private education loans 0.46 % 0.55 % 0.54 % 1.02 % Consumer loans and other financing receivables 8.78 % 7.62 % 8.86 % 6.58 % Nelnet Bank: Federally insured loans 0.07 % 0.06 % 0.07 % 0.06 % Private education loans 0.87 % 1.10 % 1.00 % 1.08 % Consumer and other loans 1.10 % 1.71 % 1.50 % 1.49 % Annualized net charge-offs as a percentage of average loans for the Company's Non-Nelnet Bank consumer and other financing receivables portfolio increased during the three and six months ended June 30, 2026 compared with the same periods in 2025. This increase was primarily attributable to the cumulative growth in the volume of Pay Later receivables acquired since the 11 third quarter of 2025 and the seasoning of the portfolio, and was not indicative of a deterioration in credit quality. Delinquency and net charge-off rates remained consistent with management's expectations during the period. 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 June 30, 2026 and December 31, 2025, Nelnet Bank had a liability of approximately $ 0.5 million and $ 0.8 million, respectively, related to $ 79.5 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 Six months ended June 30, June 30, 2026 2025 2026 2025 Provision for loan losses from allowance activity table above $ 41,023 17,712 94,595 33,177 Provision expense (negative provision) for unfunded loan commitments, net 54 218 ( 274 ) 90 Provision for loan losses reported in consolidated statements of income $ 41,077 17,930 94,321 33,267 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 June 30, 2026 As of December 31, 2025 As of June 30, 2025 Federally insured loans - Non-Nelnet Bank: Loans in-school/grace/deferment $ 304,960 4.7 % $ 336,749 4.5 % $ 393,460 4.7 % Loans in forbearance 504,082 7.8 493,277 6.6 555,469 6.6 Loans in repayment status: Loans current 5,013,702 88.2 % 5,701,660 86.3 % 6,378,571 86.0 % Loans delinquent 31-60 days 184,769 3.2 234,259 3.5 261,809 3.5 Loans delinquent 61-90 days 126,576 2.2 147,645 2.2 175,562 2.4 Loans delinquent 91-120 days 71,368 1.3 94,765 1.4 111,678 1.5 Loans delinquent 121-270 days 190,828 3.4 280,899 4.3 360,754 4.9 Loans delinquent 271 days or greater 97,112 1.7 147,989 2.3 129,782 1.7 Total loans in repayment 5,684,355 87.5 100.0 % 6,607,217 88.9 100.0 % 7,418,156 88.7 100.0 % Total federally insured loans 6,493,397 100.0 % 7,437,243 100.0 % 8,367,085 100.0 % Accrued interest receivable 482,085 506,943 545,288 Loan discount, net of unamortized premiums and deferred origination costs ( 26,000 ) ( 23,513 ) ( 26,523 ) Allowance for loan losses ( 38,173 ) ( 42,080 ) ( 47,627 ) Total federally insured loans and accrued interest receivable, net of allowance for loan losses $ 6,911,309 $ 7,878,593 $ 8,838,223 12 As of June 30, 2026 As of December 31, 2025 As of June 30, 2025 Private education loans - Non-Nelnet Bank: Loans in-school/grace/deferment $ 2,852 2.3 % $ 3,094 2.2 % $ 4,433 2.8 % Loans in forbearance 2,679 2.2 3,049 2.2 1,530 1.0 Loans in repayment status: Loans current 114,669 97.8 % 130,018 97.7 % 147,690 98.0 % Loans delinquent 31-60 days 858 0.7 1,253 0.9 1,246 0.8 Loans delinquent 61-90 days 854 0.7 515 0.4 564 0.4 Loans delinquent 91 days or greater 906 0.8 1,280 1.0 1,151 0.8 Total loans in repayment 117,287 95.5 100.0 % 133,066 95.6 100.0 % 150,651 96.2 100.0 % Total private education loans 122,818 100.0 % 139,209 100.0 % 156,614 100.0 % Accrued interest receivable 1,062 1,120 1,299 Loan discount, net of unamortized premiums ( 3,474 ) ( 4,317 ) ( 5,162 ) Allowance for loan losses ( 6,239 ) ( 6,894 ) ( 7,406 ) Total private education loans and accrued interest receivable, net of allowance for loan losses $ 114,167 $ 129,118 $ 145,345 Consumer loans and other financing receivables - Non-Nelnet Bank: Loans in forbearance $ 1,489 0.1 % $ 1,698 0.2 % $ 1,355 0.3 % Loans in repayment status: Loans current 1,173,003 96.8 % 1,085,883 96.9 % 399,263 97.3 % Loans delinquent 31-60 days 15,436 1.3 13,723 1.2 3,731 0.9 Loans delinquent 61-90 days 11,384 0.9 10,797 1.0 3,096 0.8 Loans delinquent 91 days or greater 12,244 1.0 10,616 0.9 4,025 1.0 Total loans in repayment 1,212,067 99.9 100.0 % 1,121,019 99.8 100.0 % 410,115 99.7 100.0 % Total consumer loans and other financing receivables 1,213,556 100.0 % 1,122,717 100.0 % 411,470 100.0 % Accrued interest receivable 2,238 1,497 2,260 Loan discount and deferred lender fees, net of unamortized premiums ( 20,524 ) ( 17,845 ) ( 6,296 ) Allowance for loan losses ( 92,215 ) ( 57,360 ) ( 48,028 ) Total consumer loans and other financing receivables and accrued interest receivable, net of allowance for loan losses $ 1,103,055 $ 1,049,009 $ 359,406 Federally insured loans - Nelnet Bank (a): Loans in-school/grace/deferment $ 29,991 3.5 % $ 6,162 3.6 % $ 2,665 2.5 % Loans in forbearance 43,723 5.1 8,787 5.1 5,550 5.2 Loans in repayment status: Loans current 713,274 91.5 % 141,357 89.9 % 88,408 89.9 % Loans delinquent 30-59 days 19,771 2.5 5,686 3.6 2,806 2.9 Loans delinquent 60-89 days 13,982 1.8 2,703 1.7 2,001 2.0 Loans delinquent 90-119 days 6,700 0.9 980 0.6 1,683 1.7 Loans delinquent 120-270 days 18,696 2.4 4,844 3.1 2,495 2.5 Loans delinquent 271 days or greater 7,204 0.9 1,801 1.1 947 1.0 Total loans in repayment 779,627 91.4 100.0 % 157,371 91.3 100.0 % 98,340 92.3 100.0 % Total federally insured loans 853,341 100.0 % 172,320 100.0 % 106,555 100.0 % Accrued interest receivable 46,323 10,939 5,194 Loan premium and deferred origination costs, net of unaccreted discount 6,174 910 1,221 Allowance for loan losses ( 3,016 ) ( 676 ) ( 355 ) Total federally insured loans and accrued interest receivable, net of allowance for loan losses $ 902,822 $ 183,493 $ 112,615 13 As of June 30, 2026 As of December 31, 2025 As of June 30, 2025 Private education loans - Nelnet Bank (a): Loans in-school/grace/deferment $ 69,136 13.3 % $ 56,667 10.9 % $ 45,107 8.7 % Loans in forbearance 1,342 0.3 1,684 0.3 1,926 0.4 Loans in repayment status: Loans current 443,365 98.3 % 451,221 98.0 % 460,426 98.0 % Loans delinquent 30-59 days 2,639 0.6 4,001 0.9 3,102 0.7 Loans delinquent 60-89 days 2,091 0.5 2,327 0.5 2,710 0.6 Loans delinquent 90 days or greater 2,586 0.6 2,734 0.6 3,392 0.7 Total loans in repayment 450,681 86.4 100.0 % 460,283 88.8 100.0 % 469,630 90.9 100.0 % Total private education loans 521,159 100.0 % 518,634 100.0 % 516,663 100.0 % Accrued interest receivable 8,726 6,599 5,540 Loan discount, net of unamortized premiums and deferred origination costs ( 3,567 ) ( 5,686 ) ( 8,589 ) Allowance for loan losses ( 12,609 ) ( 12,932 ) ( 12,360 ) Total private education loans and accrued interest receivable, net of allowance for loan losses $ 513,709 $ 506,615 $ 501,254 Consumer and other loans - Nelnet Bank (a): Loans in deferment $ 9,911 3.7 % $ 10,006 3.8 % $ 8,538 4.2 % Loans in repayment status: Loans current 252,216 99.0 % 254,448 99.2 % 194,507 99.3 % Loans delinquent 30-59 days 985 0.4 1,225 0.5 1,001 0.5 Loans delinquent 60-89 days 935 0.4 560 0.2 193 0.1 Loans delinquent 90 days or greater 550 0.2 369 0.1 184 0.1 Total loans in repayment 254,686 96.3 100.0 % 256,602 96.2 100.0 % 195,885 95.8 100.0 % Total consumer and other loans 264,597 100.0 % 266,608 100.0 % 204,423 100.0 % Accrued interest receivable 2,365 1,838 1,346 Loan premium, net of unaccreted discount 3,004 3,557 2,444 Allowance for loan losses ( 12,813 ) ( 12,136 ) ( 9,573 ) Total consumer and other loans and accrued interest receivable, net of allowance for loan losses $ 257,153 $ 259,867 $ 198,640 (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. 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 June 30, 2026 Six months ended June 30, 2026 2025 2024 2023 2022 Prior years Total Percent of total FICO at origination or purchase: Less than 705 $ 1,959 6,907 2,641 2,550 3,621 19,626 37,304 7.2 % 705 - 734 2,379 12,104 4,444 6,651 15,689 19,047 60,314 11.6 735 - 764 2,948 16,514 5,118 6,536 24,589 29,207 84,912 16.3 765 - 794 4,502 22,812 6,183 4,600 38,357 41,690 118,144 22.7 Greater than 794 9,618 32,452 12,988 10,312 52,963 96,730 215,063 41.2 No FICO score available or required (a) — — 1,858 3,564 — — 5,422 1.0 $ 21,406 90,789 33,232 34,213 135,219 206,300 521,159 100.0 % 14 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 June 30, 2026 Six months ended June 30, 2026 2025 2024 2023 2022 Prior years Total Percent of total FICO at origination: Less than 720 $ 413 12,537 15,245 1,600 — 1,220 31,015 11.7 % 720 - 769 2,099 22,707 32,934 3,485 13 10,749 71,987 27.2 Greater than 769 8,285 47,706 43,070 5,371 56 7,421 111,909 42.3 No FICO score available or required (a) 3,108 34,946 10,879 428 272 53 49,686 18.8 $ 13,905 117,896 102,128 10,884 341 19,443 264,597 100.0 % 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. 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 June 30, 2026 and December 31, 2025, was not material. 15 Amortized Cost Basis by Origination Year The following table presents the amortized cost of the Company's private education, consumer, and other loans by loan status and delinquency amount as of June 30, 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. Six months ended June 30, 2026 2025 2024 2023 2022 Prior years Total Private education loans - Non-Nelnet Bank: Loans in-school/grace/deferment $ — — — — 226 2,626 2,852 Loans in forbearance — — — — 68 2,611 2,679 Loans in repayment status: Loans current — — — 157 3,203 111,309 114,669 Loans delinquent 31-60 days — — — — 17 841 858 Loans delinquent 61-90 days — — — — — 854 854 Loans delinquent 91 days or greater — — — — 7 899 906 Total loans in repayment — — — 157 3,227 113,903 117,287 Total private education loans $ — — — 157 3,521 119,140 122,818 Accrued interest receivable 1,062 Loan discount, net of unamortized premiums ( 3,474 ) Allowance for loan losses ( 6,239 ) Total private education loans and accrued interest receivable, net of allowance for loan losses $ 114,167 Gross charge-offs - six months ended June 30, 2026 $ — — — — 20 757 777 Consumer loans and other financing receivables - Non-Nelnet Bank: Loans in forbearance $ 62 171 441 815 — — 1,489 Loans in repayment status: Loans current 970,862 173,954 15,398 11,232 1,181 376 1,173,003 Loans delinquent 31-60 days 12,195 1,915 730 525 57 14 15,436 Loans delinquent 61-90 days 8,994 1,442 622 312 12 2 11,384 Loans delinquent 91 days or greater 7,409 2,936 995 808 72 24 12,244 Total loans in repayment 999,460 180,247 17,745 12,877 1,322 416 1,212,067 Total consumer loans and other financing receivables $ 999,522 180,418 18,186 13,692 1,322 416 1,213,556 Accrued interest receivable 2,238 Loan discount and deferred lender fees, net of unamortized premiums ( 20,524 ) Allowance for loan losses ( 92,215 ) Total consumer loans and other financing receivables and accrued interest receivable, net of allowance for loan losses $ 1,103,055 Gross charge-offs - six months ended June 30, 2026 $ 5,794 36,101 9,724 2,949 927 34 55,529 Private education loans - Nelnet Bank: Loans in-school/grace/deferment $ 8,027 34,463 13,978 6,579 3,701 2,388 69,136 Loans in forbearance — 33 — 84 517 708 1,342 Loans in repayment status: Loans current 13,280 55,638 18,831 26,815 130,182 198,619 443,365 Loans delinquent 30-59 days 67 222 173 105 467 1,605 2,639 Loans delinquent 60-89 days 15 208 106 422 221 1,119 2,091 Loans delinquent 90 days or greater 17 225 144 208 131 1,861 2,586 Total loans in repayment 13,379 56,293 19,254 27,550 131,001 203,204 450,681 Total private education loans $ 21,406 90,789 33,232 34,213 135,219 206,300 521,159 Accrued interest receivable 8,726 Loan discount, net of unamortized premiums and deferred origination costs ( 3,567 ) Allowance for loan losses ( 12,609 ) Total private education loans and accrued interest receivable, net of allowance for loan losses $ 513,709 Gross charge-offs - six months ended June 30, 2026 $ 20 240 325 559 494 1,653 3,291 16 Six months ended June 30, 2026 2025 2024 2023 2022 Prior years Total Consumer and other loans - Nelnet Bank: Loans in deferment $ 5,687 4,107 117 — — — 9,911 Loans in repayment status: Loans current 8,218 112,636 101,003 10,659 341 19,359 252,216 Loans delinquent 30-59 days — 274 600 107 — 4 985 Loans delinquent 60-89 days — 696 162 — — 77 935 Loans delinquent 90 days or greater — 183 246 118 — 3 550 Total loans in repayment 8,218 113,789 102,011 10,884 341 19,443 254,686 Total consumer and other loans $ 13,905 117,896 102,128 10,884 341 19,443 264,597 Accrued interest receivable 2,365 Loan premium, net of unaccreted discount 3,004 Allowance for loan losses ( 12,813 ) Total consumer and other loans and accrued interest receivable, net of allowance for loan losses $ 257,153 Gross charge-offs - six months ended June 30, 2026 $ — 518 1,360 71 — 229 2,178 17 3. Bonds and Notes Payable The following tables summarize the Company’s outstanding debt obligations by type of instrument: As of June 30, 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 $ 5,520,346 3.99 % - 5.76 % 10/25/33 - 11/27/90 Bonds and notes based on auction 10,915 4.74 % 8/25/37 Total FFELP variable-rate bonds and notes 5,531,261 Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations 277,696 1.42 % - 3.45 % 10/25/67 - 8/27/68 FFELP loan warehouse facility 469,041 4.72 % / 4.73 % 7/30/27 Consumer loan warehouse and other facilities 752,435 4.92 % - 5.42 % 11/13/27 - 2/29/28 Variable-rate bonds and notes issued in private education loan asset-backed securitizations 27,414 5.15 % / 5.88 % 6/25/49 / 11/25/53 Fixed-rate bonds and notes issued in private education loan asset-backed securitization 20,534 7.15 % 11/25/53 Unsecured line of credit — — 3/31/31 Participation agreements 796 4.37 % - 5.82 % 5/4/27 / 7/28/32 7,079,177 Discount on bonds and notes payable and debt issuance costs ( 36,021 ) Total $ 7,043,156 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 18 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 June 30, 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) $ 500,000 469,041 30,959 7/31/2026 7/30/2027 note (b) $ 30,143 Consumer loans and other financing receivables $ 925,000 752,435 172,565 11/13/2026 - 7/31/2027 11/13/2027 - 2/29/2028 50 % - 90 % $ 107,953 (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 May 5, 2026, the Company decreased the maximum financing amount from $ 800 million to $ 500 million. On July 31, 2026, the Company extended the liquidity provisions and final maturity date to September 30, 2026 and September 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 June 30, 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 June 30, 2026, the Company holds $ 111.5 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. 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 June 30, 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 19 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 to economically hedge federally insured loans held by the Asset Generation and Management operating segment (Non-Nelnet Bank) that are earning fixed-rate floor income. For these derivative instruments, the Company receives payments based on SOFR, the majority of which reset quarterly. As of June 30, 2026 As of December 31, 2025 Maturity Notional amount Weighted-average fixed rate paid by the Company Notional amount Weighted-average fixed rate paid by the Company 2026 $ — — % $ 200,000 3.92 % 2028 50,000 3.56 50,000 3.56 2029 50,000 3.17 50,000 3.17 2030 100,000 3.63 100,000 3.63 $ 200,000 3.50 % $ 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 June 30, 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 50,000 3.06 2032 (a) 25,000 4.03 2033 25,000 3.90 2035 (b) 30,000 3.79 $ 195,000 3.50 % (a) This $ 25 million notional amount derivative has a forward effective start date in February 2027. (b) This $ 30 million notional amount derivative has a forward effective start date in May 2028. 20 Interest Rate Swaps - Third-Party Deposits The following table summarizes the outstanding derivative instruments used by Nelnet Bank as of June 30, 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 Certain 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 these derivatives as reflected in the consolidated balance sheets: Fair value of asset derivatives Fair value of liability derivatives As of June 30, 2026 As of December 31, 2025 As of June 30, 2026 As of December 31, 2025 Nelnet Bank interest rate swaps - intercompany deposits $ 2,379 614 295 1,243 Nelnet Bank interest rate swaps - third-party deposits (cash flow hedges) 383 — — 484 Other derivative instruments 14 — — — $ 2,776 614 295 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 June 30, Six months ended June 30, 2026 2025 2026 2025 Settlements: Basis swaps $ 154 154 307 307 Interest rate swaps - floor income hedges ( 65 ) 427 ( 114 ) 855 Interest rate swaps - Nelnet Bank intercompany deposits 77 163 116 327 Other derivative instruments — — 437 — Total settlements - income 166 744 746 1,489 Change in fair value: Basis swaps ( 150 ) ( 143 ) ( 298 ) ( 281 ) Interest rate swaps - floor income hedges 2,108 ( 2,022 ) 3,750 ( 5,680 ) Interest rate swaps - Nelnet Bank intercompany deposits 1,714 ( 1,701 ) 2,714 ( 4,229 ) Other derivative instruments 14 — ( 893 ) — Total change in fair value - income (expense) 3,686 ( 3,866 ) 5,273 ( 10,190 ) Derivative market value adjustments and derivative settlements, net - income (expense) $ 3,852 ( 3,122 ) 6,019 ( 8,701 ) 21 5. Investments and Notes Receivable “Total investments and notes receivable” consisted of the following: As of June 30, 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 $ 43,466 2,878 ( 146 ) 46,198 36,824 2,950 ( 129 ) 39,645 FFELP loan and other debt securities - restricted (a) 192,387 3,045 ( 662 ) 194,770 172,739 3,384 ( 323 ) 175,800 Private education loan (b) 177,299 90 ( 12,258 ) 165,131 197,568 20 ( 13,436 ) 184,152 Other debt securities 114,801 2,628 ( 70 ) 117,359 55,874 2,528 — 58,402 Total Non-Nelnet Bank 527,953 8,641 ( 13,136 ) 523,458 463,005 8,882 ( 13,888 ) 457,999 Nelnet Bank: FFELP loan 244,004 6,109 ( 778 ) 249,335 258,208 6,513 ( 798 ) 263,923 Private education loan 11,815 — ( 35 ) 11,780 13,623 — ( 37 ) 13,586 Other debt securities 797,091 721 ( 4,045 ) 793,767 569,528 1,433 ( 1,481 ) 569,480 Total Nelnet Bank 1,052,910 6,830 ( 4,858 ) 1,054,882 841,359 7,946 ( 2,316 ) 846,989 Total available-for-sale asset-backed securities $ 1,580,863 15,471 ( 17,994 ) 1,578,340 1,304,364 16,828 ( 16,204 ) 1,304,988 Equity securities and funds measured at net asset value 123,052 109,648 Total investments at fair value 1,701,392 1,414,636 Other investments and notes receivable (not measured at fair value): Nelnet Bank: Held-to-maturity asset-backed securities - FFELP loan 210,908 211,299 Venture capital, funds, and other: Measurement alternative 236,062 227,962 Equity method 258,331 248,253 Total venture capital and funds 494,393 476,215 Real estate equity method 272,713 233,167 ALLO: Voting interest/equity method — — Preferred membership interest 23,500 10,148 Total interest in ALLO 23,500 10,148 Beneficial interest in loan securitizations (c): Consumer and private education loans, net of allowance for credit losses of $ 55,123 and $ 50,802 as of June 30, 2026 and December 31, 2025, respectively 173,752 180,262 Federally insured student loans 15,100 14,568 Total beneficial interest in loan securitizations, net of allowance 188,852 194,830 Solar (d) ( 286,992 ) ( 240,370 ) Notes receivable 41,772 32,085 Tax liens, affordable housing, and other 22,206 15,961 Total other investments and notes receivable (not measured at fair value) 967,352 933,335 Total investments and notes receivable $ 2,668,744 $ 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 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 June 30, 2026, the amortized cost and fair value of these securities was $ 177.1 million and $ 164.9 million, respectively. 22 (c) The Company has partial ownership in certain securitizations. As of the latest remittance reports filed by the various trusts prior to or as of June 30, 2026, the Company's ownership correlates to approximately $ 950 million, $ 350 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 $ 2.4 million and $ 5.0 million during the three months ended June 30, 2026 and 2025, respectively, and $ 6.6 million and $ 6.5 million during the six months ended June 30, 2026 and 2025, respectively, which is included in “provision for beneficial interests” on the consolidated statements of income. (d) As of June 30, 2026, the Company has contributed a total of $ 367.6 million and its third-party partners have contributed $ 469.7 million in tax equity to renewable energy solar partnerships that remain outstanding. 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 June 30, 2026, the Company and its third-party partners have earned $ 423.1 million and $ 464.2 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 $ 287.0 million as of June 30, 2026 represents the sum of total tax credits earned on solar projects placed in service and the calculated hypothetical liquidation at book value ("HLBV") cumulative net losses through June 30, 2026 being larger than the total contributions made by the Company and its syndication partners on such projects. The negative carrying value as of June 30, 2026, excluding the portion owned by syndication partners that is reflected as "noncontrolling interests" on the consolidated balance sheet, was $ 131.4 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 June 30, Six months ended June 30, 2026 2025 2026 2025 Losses from HLBV accounting (gross) $ ( 29,351 ) ( 6,463 ) ( 51,882 ) ( 9,079 ) Gains from sales (gross) 6,854 4,961 6,854 8,033 Losses from solar investments (gross) ( 22,497 ) ( 1,502 ) ( 45,028 ) ( 1,046 ) Less: losses attributable to noncontrolling members ( 19,491 ) ( 3,159 ) ( 32,936 ) ( 4,204 ) Net (loss) gain attributable to the Company $ ( 3,006 ) 1,657 ( 12,092 ) 3,158 The following table presents, by remaining contractual maturity, the amortized cost and fair value of debt securities: As of June 30, 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 $ — 206 2,543 40,717 43,466 FFELP loan and other debt securities - restricted — 6,158 54,040 132,189 192,387 Private education loan — — 215 177,084 177,299 Other debt securities 100 — 11,687 103,014 114,801 Total Non-Nelnet Bank 100 6,364 68,485 453,004 527,953 Fair value 100 6,446 68,319 448,593 523,458 Nelnet Bank: FFELP loan 40,757 11,913 17,536 173,798 244,004 Private education loan — — 11,720 95 11,815 Other debt securities — 17,436 130,261 649,394 797,091 Total Nelnet Bank 40,757 29,349 159,517 823,287 1,052,910 Fair value 40,472 29,292 159,507 825,611 1,054,882 Total available-for-sale asset-backed securities at amortized cost $ 40,857 35,713 228,002 1,276,291 1,580,863 Total available-for-sale asset-backed securities at fair value $ 40,572 35,738 227,826 1,274,204 1,578,340 Held-to-maturity asset-backed securities Nelnet Bank: FFELP loan - amortized cost $ — 2,337 12,404 196,167 210,908 FFELP loan - fair value $ — 2,336 12,201 200,436 214,973 Beneficial interest in loan securitizations (a): Amortized cost $ — — — — 188,852 Fair value $ — — — — 202,812 (a) The Company's beneficial interest in loan securitizations is not due at a single maturity date. 23 The following table summarizes the unrealized positions for held-to-maturity asset-backed securities investments and the beneficial interest in loan securitizations as of June 30, 2026: Carrying value Gross unrealized gains Gross unrealized losses Fair value Asset-backed securities $ 210,908 4,869 ( 804 ) 214,973 Beneficial interest in loan securitizations 188,852 14,885 ( 925 ) 202,812 The following table presents securities classified as available-for-sale that have gross unrealized losses as of June 30, 2026 and the fair value of such securities as of June 30, 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 June 30, 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 $ ( 10 ) 7,921 ( 136 ) 2,408 ( 146 ) 10,329 FFELP loan and other debt securities - restricted ( 379 ) 95,553 ( 283 ) 16,719 ( 662 ) 112,272 Private education loan ( 7 ) 208 ( 12,251 ) 134,648 ( 12,258 ) 134,856 Other debt securities ( 70 ) 17,401 — — ( 70 ) 17,401 Total Non-Nelnet Bank ( 466 ) 121,083 ( 12,670 ) 153,775 ( 13,136 ) 274,858 Nelnet Bank: FFELP loan ( 154 ) 38,238 ( 624 ) 53,641 ( 778 ) 91,879 Private education loan ( 1 ) 149 ( 34 ) 11,536 ( 35 ) 11,685 Other debt securities ( 2,446 ) 434,731 ( 1,599 ) 41,695 ( 4,045 ) 476,426 Total Nelnet Bank ( 2,601 ) 473,118 ( 2,257 ) 106,872 ( 4,858 ) 579,990 Total available-for-sale asset-backed securities $ ( 3,067 ) 594,201 ( 14,927 ) 260,647 ( 17,994 ) 854,848 The following table summarizes the gross proceeds received and gross realized gains and losses related to sales of available-for-sale asset-backed securities: Three months ended Six months ended June 30, June 30, 2026 2025 2026 2025 Gross proceeds from sales $ 100,488 34,828 148,021 109,609 Gross realized gains $ 535 622 966 1,555 Gross realized losses ( 56 ) ( 27 ) ( 64 ) ( 478 ) Net gains $ 479 595 902 1,077 24 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 June 30, 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 Six months ended June 30, June 30, 2026 2025 2026 2025 Unrealized gains recognized during the period, net $ 10,489 2,752 2,688 4,134 Less: realized losses on securities sold during the period, net 421 — 1,879 — Unrealized gains on securities still held as of the reporting date, net $ 10,068 2,752 809 4,134 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. The acquired entity was subsequently renamed Nelnet Diversified Services Canada, Inc. ("NDS Canada"). During the three months ended June 30, 2026, the Company finalized the post-closing working capital adjustment. As a result, consideration transferred increased by CAD $ 2.6 million (USD $ 1.8 million) from the preliminary amount previously reported. Accordingly, the purchase price was revised from CAD $ 144.2 million (USD $ 105.8 million) to CAD $ 146.8 million (USD $ 107.6 million). The increase was recorded as a measurement period adjustment and resulted in a corresponding increase to goodwill. NDS Canada is a Canadian student loan servicing business that services Canadian student loans for governments and a financial institution, providing assistance programs that include 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. During the three months ended June 30, 2026, the Company recognized certain adjustments to the provisional amounts recorded on the acquisition date that were needed to reflect new information obtained about facts and circumstances that existed as of the acquisition date. The impact of these adjustments had no impact on operating results. Restricted cash - due to customers $ 302,901 Accounts receivable 17,590 Other assets 336 Intangible assets 69,805 Excess cost over fair value of net assets acquired (goodwill) 47,814 Other liabilities ( 27,898 ) Due to customers ( 302,901 ) Net assets acquired $ 107,647 The $ 69.8 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 $ 43.5 million ( 7-year useful life) and software of $ 26.3 million ( 5-year useful life). The $ 47.8 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. NDS Canada's assets acquired and liabilities assumed were recorded by the Company at their respective fair values at the date of acquisition, and NDS Canada's operating results from the date of acquisition forward are included in the Company's consolidated operating results. The pro forma impacts of the NDS Canada acquisition on the Company's historical results prior to the acquisition were not material. 25 7. Intangible Assets Intangible assets consisted of the following: Weighted-average remaining useful life as of June 30, 2026 (months) As of As of June 30, 2026 December 31, 2025 Amortizable intangible assets, net: Customer relationships (net of accumulated amortization of $ 64,445 and $ 58,561 , respectively) 78 $ 70,815 29,283 Computer software (net of accumulated amortization of $ 2,344 ) 54 25,188 — Total amortizable intangible assets, net 72 $ 96,003 29,283 The Company recorded amortization expense on its intangible assets of $ 4.7 million and $ 1.5 million for the three months ended June 30, 2026 and 2025, respectively, and $ 8.4 million and $ 3.1 million during the six months ended June 30, 2026 and 2025, respectively. The Company will continue to amortize intangible assets over their remaining useful lives. As of June 30, 2026, the Company estimates it will record amortization expense as follows: 2026 (July 1 - December 31) $ 9,363 2027 18,657 2028 18,412 2029 15,596 2030 15,377 2031 and thereafter 18,598 $ 96,003 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 (NDS Canada) 46,969 — — — — — 46,969 Foreign currency translation ( 1,068 ) — — — — — ( 1,068 ) Goodwill as of March 31, 2026 69,540 92,507 41,883 — — — 203,930 Goodwill acquired during the period (a) — 3,017 — — — — 3,017 NDS Canada purchase price allocation adjustment 845 — — — — — 845 Foreign currency translation ( 845 ) ( 112 ) — — — — ( 957 ) Goodwill as of June 30, 2026 $ 69,540 95,412 41,883 — — — 206,835 (a) On April 30, 2026, the Company acquired 100 percent of the outstanding stock of Australia‑based Invision Digital Pty Ltd, which was subsequently renamed Invision Marketing Services PTY Ltd and is the owner of the Passtab brand. Passtab is a leading school visitor, contractor, and compliance management platform, expanding Nelnet's global education technology offerings. 26 9. Bank Deposits The following table summarizes Nelnet Bank’s deposits, excluding intercompany deposits: As of As of June 30, 2026 December 31, 2025 Retail and other savings $ 1,435,278 1,337,873 Brokered CDs, net of brokered deposit fees 759,032 311,015 Retail and other CDs, net of issuance fees 24,939 20,285 Total interest-bearing deposits $ 2,219,249 1,669,173 As of June 30, 2026 and December 31, 2025, Nelnet Bank had intercompany deposits from Nelnet, Inc. and its subsidiaries totaling $ 285.8 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. The following table presents the remaining maturities of certificates of deposit as of June 30, 2026: One year or less $ 618,698 After one year to two years 8,842 After two years to three years 61,935 After three years to four years 20,588 After four years to five years 19,850 After five years 54,058 Total $ 783,971 Deposits that exceeded the FDIC insurance limits as of June 30, 2026 were $ 40.9 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 June 30, 2026 2025 Numerator: Net income attributable to Nelnet, Inc. $ 65,433 1,229 66,662 178,170 3,289 181,459 Denominator: Weighted-average common shares outstanding - basic and diluted 35,373,041 664,468 36,037,509 35,824,313 661,292 36,485,605 Earnings per share - basic and diluted $ 1.85 1.85 1.85 4.97 4.97 4.97 Six months ended June 30, 2026 2025 Numerator: Net income attributable to Nelnet, Inc. $ 135,287 2,501 137,788 259,158 4,860 264,018 Denominator: Weighted-average common shares outstanding - basic and diluted 35,402,521 654,581 36,057,102 35,810,499 671,536 36,482,035 Earnings per share - basic and diluted $ 3.82 3.82 3.82 7.24 7.24 7.24 27 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 June 30, 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 $ — — 140,264 24,334 164,598 — — — 164,598 Investment interest 868 4,732 10,327 18,614 34,541 7,809 2,165 ( 4,200 ) 40,315 Total interest income 868 4,732 150,591 42,948 199,139 7,809 2,165 ( 4,200 ) 204,913 Interest expense 286 — 87,425 23,657 111,368 1,170 564 ( 4,200 ) 108,902 Net interest income 582 4,732 63,166 19,291 87,771 6,639 1,601 — 96,011 Less provision (negative provision) for loan losses — — 41,326 ( 249 ) 41,077 — — — 41,077 Less provision for beneficial interests — — 2,441 — 2,441 — — — 2,441 Net interest income after provision 582 4,732 19,399 19,540 44,253 6,639 1,601 — 52,493 Other income (expense): LSS revenue 132,244 — — — 132,244 — — — 132,244 ETSP revenue — 118,884 — — 118,884 — — — 118,884 Intersegment revenue 4,798 74 — — 4,872 — — ( 4,872 ) — Reinsurance premiums earned — — — — — 40,625 — — 40,625 Solar construction revenue — — — — — — — — — Other, net ( 57 ) 1,902 19,765 564 22,174 11,122 ( 14,913 ) 16 18,399 Gain on partial redemption of ALLO investment — — — — — — — — — Derivative settlements, net — — 89 77 166 — — — 166 Derivative market value adjustments, net — — 1,972 1,714 3,686 — — — 3,686 Total other income (expense), net 136,985 120,860 21,826 2,355 282,026 51,747 ( 14,913 ) ( 4,856 ) 314,004 Cost of services and expenses: Total cost of services 2,087 39,183 — — 41,270 — — — 41,270 Salaries and benefits 74,924 45,596 1,883 3,589 125,992 1,568 25,110 ( 6 ) 152,664 Depreciation and amortization 5,071 2,442 — 306 7,819 — 2,323 — 10,142 Reinsurance losses and underwriting expenses — — — — — 32,809 — — 32,809 Postage expense 8,237 8,237 ( 8,237 ) — Servicing fees 7,752 1,635 9,387 ( 9,387 ) — Other expenses (a) 15,193 12,714 1,000 1,842 30,749 1,662 18,954 12,833 64,199 Intersegment expenses, net 17,233 6,293 1,396 695 25,617 486 ( 26,028 ) ( 75 ) — Total operating expenses 120,658 67,045 12,031 8,067 207,801 36,525 20,359 ( 4,872 ) 259,814 Income (loss) before income taxes 14,822 19,364 29,194 13,828 77,208 21,861 ( 33,671 ) 16 65,413 Income tax (expense) benefit ( 3,557 ) ( 4,648 ) ( 7,005 ) ( 3,310 ) ( 18,520 ) ( 5,247 ) 3,825 — ( 19,942 ) Net income (loss) 11,265 14,716 22,189 10,518 58,688 16,614 ( 29,846 ) 16 45,471 Net (income) loss attributable to noncontrolling interests — — ( 9 ) — ( 9 ) 3 21,213 ( 16 ) 21,191 Net income (loss) attributable to Nelnet, Inc. $ 11,265 14,716 22,180 10,518 58,679 16,617 ( 8,633 ) — 66,662 Total assets as of June 30, 2026 $ 704,764 519,834 8,877,882 2,997,294 13,099,774 1,093,814 681,431 ( 599,955 ) 14,275,064 (a) Other expenses for each reportable segment consist primarily of the following: LSS - occupancy, professional fees, software, and computer services and subscriptions. ETSP - advertising, professional fees, computer services and subscriptions, travel, and customer bad debt expense. AGM - trustee fees, professional fees, and travel. Nelnet Bank - marketing, consulting and professional fees, collection costs, software, FDIC insurance, travel, and management fee expense. 28 Three months ended June 30, 2025 Reportable Segments Reconciling Items Loan Servicing and Systems (LSS) Education Technology Services and Payments (ETSP) Asset Generation and Management Nelnet Bank Total Reportable Segments NFS Other Operating Segments Corporate and Other Activities Eliminations/ Reclassifications Total Interest income: Loan interest $ — — 157,300 14,804 172,104 — — — 172,104 Investment interest 624 5,417 12,641 13,934 32,616 8,870 2,661 ( 3,963 ) 40,185 Total interest income 624 5,417 169,941 28,738 204,720 8,870 2,661 ( 3,963 ) 212,289 Interest expense — — 120,066 14,672 134,738 1,428 651 ( 3,963 ) 132,854 Net interest income 624 5,417 49,875 14,066 69,982 7,442 2,010 — 79,435 Less provision (negative provision) for loan losses — — 11,133 6,797 17,930 — — — 17,930 Less provision for beneficial interests — — 4,977 — 4,977 — — — 4,977 Net interest income after provision 624 5,417 33,765 7,269 47,075 7,442 2,010 — 56,528 Other income (expense): LSS revenue 120,724 — — — 120,724 — — — 120,724 ETSP revenue — 118,184 — — 118,184 — — — 118,184 Intersegment revenue 5,603 65 — — 5,668 — — ( 5,668 ) — Reinsurance premiums earned — — — — — 26,112 — — 26,112 Solar construction revenue — — — — — — 1,259 — 1,259 Other, net 113 — 7,507 392 8,012 5,265 9,603 96 22,976 Gain on partial redemption of ALLO investment — — — — — — 175,044 — 175,044 Derivative settlements, net — — 581 163 744 — — — 744 Derivative market value adjustments, net — — ( 2,165 ) ( 1,701 ) ( 3,866 ) — — — ( 3,866 ) Total other income (expense), net 126,440 118,249 5,923 ( 1,146 ) 249,466 31,377 185,906 ( 5,572 ) 461,177 Cost of services and expenses: Total cost of services 1,845 39,844 — — 41,689 — 14,050 — 55,739 Salaries and benefits 65,549 41,598 1,469 2,791 111,407 539 22,784 ( 30 ) 134,699 Depreciation and amortization 1,821 2,505 — 352 4,678 — 2,946 — 7,624 Reinsurance losses and underwriting expenses — — — — — 25,662 — — 25,662 Postage expense 9,551 9,551 ( 9,551 ) — Servicing fees 7,102 824 7,926 ( 7,926 ) — Other expenses (a) 11,099 9,904 2,464 1,969 25,436 2,206 17,006 11,969 56,617 Intersegment expenses, net 17,240 6,273 1,260 652 25,425 321 ( 25,616 ) ( 130 ) — Total operating expenses 105,260 60,280 12,295 6,588 184,423 28,728 17,120 ( 5,668 ) 224,602 Income (loss) before income taxes 19,959 23,542 27,393 ( 465 ) 70,429 10,091 156,746 96 237,364 Income tax (expense) benefit ( 4,790 ) ( 5,650 ) ( 6,569 ) 101 ( 16,908 ) ( 2,395 ) ( 40,207 ) — ( 59,510 ) Net income (loss) 15,169 17,892 20,824 ( 364 ) 53,521 7,696 116,539 96 177,854 Net (income) loss attributable to noncontrolling interests — — ( 23 ) — ( 23 ) ( 114 ) 3,838 ( 96 ) 3,605 Net income (loss) attributable to Nelnet, Inc. $ 15,169 17,892 20,801 ( 364 ) 53,498 7,582 120,377 — 181,459 Total assets as of June 30, 2025 $ 168,435 533,317 10,036,454 1,767,193 12,505,399 1,077,523 541,471 ( 413,305 ) 13,711,088 (a) Other expenses for each reportable segment consist primarily of the following: LSS - communications, professional fees, collection costs, software, and computer services and subscriptions. ETSP - advertising, professional fees, analysis fees, computer services and subscriptions, and travel. AGM - trustee fees and professional fees. Nelnet Bank - marketing, consulting and professional fees, collection costs, software, FDIC insurance, and management fee expense. 29 Six months ended June 30, 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 $ — — 292,616 43,006 335,622 — — — 335,622 Investment interest 2,008 10,851 20,987 35,178 69,024 16,326 5,300 ( 10,133 ) 80,517 Total interest income 2,008 10,851 313,603 78,184 404,646 16,326 5,300 ( 10,133 ) 416,139 Interest expense 834 — 182,981 41,064 224,879 2,544 1,195 ( 10,133 ) 218,485 Net interest income 1,174 10,851 130,622 37,120 179,767 13,782 4,105 — 197,654 Less provision (negative provision) for loan losses — — 89,792 4,529 94,321 — — — 94,321 Less provision for beneficial interests — — 6,571 — 6,571 — — — 6,571 Net interest income after provision 1,174 10,851 34,259 32,591 78,875 13,782 4,105 — 96,762 Other income (expense): LSS revenue 260,086 — — — 260,086 — — — 260,086 ETSP revenue — 273,319 — — 273,319 — — — 273,319 Intersegment revenue 9,804 145 — — 9,949 — — ( 9,949 ) — Reinsurance premiums earned — — — — — 63,161 — — 63,161 Solar construction revenue — — — — — — — — — Other, net ( 267 ) 1,902 46,012 2,122 49,769 7,536 ( 28,493 ) 24 28,836 Gain on partial redemption of ALLO investment — — — — — — — — — Derivative settlements, net — — 193 116 309 — 437 — 746 Derivative market value adjustments, net — — 3,466 2,714 6,180 — ( 907 ) — 5,273 Total other income (expense), net 269,623 275,366 49,671 4,952 599,612 70,697 ( 28,963 ) ( 9,925 ) 631,421 Cost of services and expenses: Total cost of services 4,174 89,136 — — 93,310 — — — 93,310 Salaries and benefits 142,545 88,292 3,511 6,504 240,852 3,081 48,125 ( 23 ) 292,035 Depreciation and amortization 9,073 4,811 — 658 14,542 — 4,770 — 19,312 Reinsurance losses and underwriting expenses — — — — — 56,414 — — 56,414 Postage expense 17,043 17,043 ( 17,043 ) — Servicing fees 15,904 2,862 18,766 ( 18,766 ) — Other expenses (a) 29,386 24,474 2,051 3,120 59,031 2,923 38,056 26,028 126,038 Intersegment expenses, net 33,952 12,326 2,748 1,352 50,378 943 ( 51,176 ) ( 145 ) — Total operating expenses 231,999 129,903 24,214 14,496 400,612 63,361 39,775 ( 9,949 ) 493,799 Income (loss) before income taxes 34,624 67,178 59,716 23,047 184,565 21,118 ( 64,633 ) 24 141,074 Income tax (expense) benefit ( 8,309 ) ( 16,123 ) ( 14,325 ) ( 5,416 ) ( 44,173 ) ( 5,086 ) 9,256 — ( 40,003 ) Net income (loss) 26,315 51,055 45,391 17,631 140,392 16,032 ( 55,377 ) 24 101,071 Net (income) loss attributable to noncontrolling interests — — ( 27 ) — ( 27 ) 72 36,696 ( 24 ) 36,717 Net income (loss) attributable to Nelnet, Inc. $ 26,315 51,055 45,364 17,631 140,365 16,104 ( 18,681 ) — 137,788 Total assets as of June 30, 2026 $ 704,764 519,834 8,877,882 2,997,294 13,099,774 1,093,814 681,431 ( 599,955 ) 14,275,064 (a) Other expenses for each reportable segment consist primarily of the following: LSS - occupancy, professional fees, software, and computer services and subscriptions. ETSP - advertising, professional fees, computer services and subscriptions, travel, and customer bad debt expense. AGM - trustee fees, professional fees, and travel. Nelnet Bank - marketing, consulting and professional fees, collection costs, software, FDIC insurance, and management fee expense. 30 Six months ended June 30, 2025 Reportable Segments Reconciling Items Loan Servicing and Systems (LSS) Education Technology Services and Payments (ETSP) Asset Generation and Management Nelnet Bank Total Reportable Segments NFS Other Operating Segments Corporate and Other Activities Eliminations/ Reclassifications Total Interest income: Loan interest $ — — 311,768 26,775 338,543 — — — 338,543 Investment interest 1,345 12,356 25,411 26,430 65,542 17,690 4,973 ( 6,632 ) 81,574 Total interest income 1,345 12,356 337,179 53,205 404,085 17,690 4,973 ( 6,632 ) 420,117 Interest expense — — 234,369 26,749 261,118 2,198 1,284 ( 6,632 ) 257,968 Net interest income 1,345 12,356 102,810 26,456 142,967 15,492 3,689 — 162,149 Less provision (negative provision) for loan losses — — 24,144 9,123 33,267 — — — 33,267 Less provision for beneficial interests — — 6,487 — 6,487 — — — 6,487 Net interest income after provision 1,345 12,356 72,179 17,333 103,213 15,492 3,689 — 122,395 Other income (expense): LSS revenue 241,465 — — — 241,465 — — — 241,465 ETSP revenue — 265,515 — — 265,515 — — — 265,515 Intersegment revenue 11,287 129 — — 11,416 — — ( 11,416 ) — Reinsurance premiums earned — — — — — 50,799 — — 50,799 Solar construction revenue — — — — — — 5,254 — 5,254 Other, net 225 — 12,411 534 13,170 6,376 27,840 193 47,579 Gain on partial redemption of ALLO investment — — — — — — 175,044 — 175,044 Derivative settlements, net — — 1,162 327 1,489 — — — 1,489 Derivative market value adjustments, net — — ( 5,961 ) ( 4,229 ) ( 10,190 ) — — — ( 10,190 ) Total other income (expense), net 252,977 265,644 7,612 ( 3,368 ) 522,865 57,175 208,138 ( 11,223 ) 776,955 Cost of services and expenses: Total cost of services 3,478 87,891 — — 91,369 — 21,878 — 113,247 Salaries and benefits 135,123 83,339 2,690 5,607 226,759 1,017 45,279 ( 134 ) 272,922 Depreciation and amortization 4,474 4,936 — 691 10,101 — 6,778 — 16,879 Reinsurance losses and underwriting expenses — — — — — 47,874 — — 47,874 Postage expense 17,127 17,127 ( 17,127 ) — Servicing fees 14,013 1,491 15,504 ( 15,504 ) — Other expenses (a) 21,931 18,952 3,352 3,327 47,562 3,059 32,592 21,711 104,924 Intersegment expenses, net 33,718 11,877 2,510 1,362 49,467 565 ( 49,670 ) ( 362 ) — Total operating expenses 212,373 119,104 22,565 12,478 366,520 52,515 34,979 ( 11,416 ) 442,599 Income (loss) before income taxes 38,471 71,005 57,226 1,487 168,189 20,152 154,970 193 343,504 Income tax (expense) benefit ( 9,233 ) ( 17,052 ) ( 13,725 ) ( 333 ) ( 40,343 ) ( 4,779 ) ( 39,398 ) — ( 84,521 ) Net income (loss) 29,238 53,953 43,501 1,154 127,846 15,373 115,572 193 258,983 Net (income) loss attributable to noncontrolling interests — 45 ( 40 ) — 5 ( 238 ) 5,461 ( 193 ) 5,035 Net income (loss) attributable to Nelnet, Inc. $ 29,238 53,998 43,461 1,154 127,851 15,135 121,033 — 264,018 Total assets as of June 30, 2025 $ 168,435 533,317 10,036,454 1,767,193 12,505,399 1,077,523 541,471 ( 413,305 ) 13,711,088 (a) Other expenses for each reportable segment consist primarily of the following: LSS - communications, professional fees, collection costs, software, and computer services and subscriptions. ETSP - advertising, professional fees, analysis fees, computer services and subscriptions, and travel. AGM - trustee fees and professional fees. Nelnet Bank - marketing, consulting and professional fees, collection costs, software, FDIC insurance, and management fee expense. 31 12. Disaggregated Revenue The following tables present disaggregated revenue for the Company's fee-based operating segments: Loan Servicing and Systems Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 Department of Education loan servicing $ 74,639 85,737 150,759 173,100 Canada student loans (a) 17,685 — 29,016 — Private education and consumer loan servicing 26,114 22,733 51,775 45,426 FFELP loan servicing 1,968 2,241 4,222 4,873 Software services 11,384 9,452 23,147 16,444 Outsourced services 454 561 1,167 1,622 Loan servicing and systems revenue $ 132,244 120,724 260,086 241,465 (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 of February 2, 2026. See note 6 for additional information. Education Technology Services and Payments Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 Tuition payment plan services $ 37,005 36,013 78,859 76,085 Payment processing 39,409 37,515 95,297 89,051 Education technology services 42,312 44,481 98,426 100,177 Other 158 175 737 202 Education technology services and payments revenue $ 118,884 118,184 273,319 265,515 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 June 30, Six months ended June 30, 2026 2025 2026 2025 Investment activity, net $ 19,643 14,837 35,794 28,412 Borrower late fee income 7,791 1,642 16,249 3,231 Administration/sponsor fee income 1,606 1,293 3,155 2,598 Investment advisory services (WRCM) 1,380 1,504 2,715 2,977 Loss from solar investments, net ( 22,497 ) ( 1,502 ) ( 45,028 ) ( 1,046 ) Other 10,476 5,202 15,951 11,407 Other, net $ 18,399 22,976 28,836 47,579 32 13. Reinsurance The following table presents reinsurance premiums written and earned and loss reserves, commissions, and broker fees: Three months ended Six months ended June 30, June 30, 2026 2025 2026 2025 Premiums written: Assumed $ 59,131 55,798 103,902 110,404 Ceded ( 17,159 ) ( 16,916 ) ( 32,009 ) ( 36,965 ) Net premiums written $ 41,972 38,882 71,893 73,439 Premiums earned: Assumed $ 55,467 44,079 95,792 91,803 Ceded ( 14,842 ) ( 17,967 ) ( 32,631 ) ( 41,004 ) Net premiums earned $ 40,625 26,112 63,161 50,799 Loss reserve, commissions, and broker fees: Assumed $ 46,312 45,100 86,287 87,741 Ceded ( 13,503 ) ( 19,438 ) ( 29,873 ) ( 39,867 ) Reinsurance losses and underwriting expenses $ 32,809 25,662 56,414 47,874 The Company’s loss reserve balance, net of amounts ceded to reinsurers, was $ 92.1 million and $ 72.3 million as of June 30, 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 $ 74.6 million and $ 85.7 million for the three months ended June 30, 2026 and 2025, respectively, and $ 150.8 million and $ 173.1 million for the six months ended June 30, 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 June 30, 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 1,578,240 1,578,340 100 1,304,888 1,304,988 Equity securities 24,659 — 24,659 22,107 — 22,107 Equity securities measured at net asset value (a) 98,393 87,541 Total investments 24,759 1,578,240 1,701,392 22,207 1,304,888 1,414,636 Derivative instruments — 2,776 2,776 — 614 614 Total assets $ 24,759 1,581,016 1,704,168 22,207 1,305,502 1,415,250 Liabilities: Derivative instruments $ — 295 295 — 1,727 1,727 Total liabilities $ — 295 295 — 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. 33 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 June 30, 2026 Fair value Carrying value Level 1 Level 2 Level 3 Financial assets: Loans receivable $ 9,718,535 9,259,416 — — 9,718,535 Accrued loan interest receivable 542,799 542,799 — 542,799 — Cash and cash equivalents 172,430 172,430 172,430 — — Investments at fair value 1,701,392 1,701,392 24,759 1,578,240 — Investments - held-to-maturity asset-backed securities 214,973 210,908 — 214,973 — Notes receivable 41,772 41,772 — 41,772 — Beneficial interest in loan securitizations 202,812 188,852 — — 202,812 Restricted cash 285,845 285,845 285,845 — — Restricted cash – due to customers 508,039 508,039 508,039 — — Derivative instruments 2,776 2,776 — 2,776 — Financial liabilities: Bonds and notes payable 7,065,938 7,043,156 — 7,065,938 — Accrued interest payable 16,265 16,265 — 16,265 — Bank deposits 2,206,275 2,219,249 1,187,152 1,019,123 — Due to customers 839,910 839,910 839,910 — — Derivative instruments 295 295 — 295 — 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 —