EX-99.2 3 aex992-022626xsupplement.htm EX-99.2

For Release: February 26, 2026

Investor Contact: Phil Morgan, 402.458.3038

Nelnet, Inc. supplemental financial information for the fourth quarter 2025

(All dollars are in thousands, except per share amounts, unless otherwise noted)

The following information should be read in connection with Nelnet, Inc.'s (the “Company's”) press release for fourth quarter 2025 earnings, dated February 26, 2026, and the Company's Annual Report on Form 10-K for the year ended December 31, 2025.

Forward-looking and cautionary statements

This report contains forward-looking statements and information that are based on management's current expectations as of the date of this document. Statements that are not historical facts, including statements about the Company's plans and expectations for future financial condition, results of operations or economic performance, or that address management's plans and objectives for future operations, and statements that assume or are dependent upon future events, are forward-looking statements. The words “anticipate,” “assume,” “believe,” “continue,” “could,” “ensure,” “estimate,” “expect,” “forecast,” “future,” “intend,” “may,” “plan,” “potential,” “predict,” “scheduled,” “should,” “will,” “would,” and similar expressions, as well as statements in future tense, are intended to identify forward-looking statements.

The forward-looking statements are based on assumptions and analyses made by management in light of management's experience and its perception of historical trends, current conditions, expected future developments, and other factors that management believes are appropriate under the circumstances. These statements are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results and performance to be materially different from any future results or performance expressed or implied by such forward-looking statements. These factors include, among others, the risks and uncertainties set forth in the “Risk Factors” section of the Company's Annual Report on Form 10-K for the year ended December 31, 2025 (the "2025 Annual Report"), and include such risks and uncertainties as:

•risks related to the ability to successfully maintain and increase allocated volumes of student loans serviced by the Company under existing and future servicing contracts with the U.S. Department of Education (the “Department”), risks related to unfavorable contract modifications or interpretations, risks related to consistently meeting service requirements to avoid the assessment of performance penalties, and risks related to the Company's ability to comply with agreements with third-party customers for the servicing of Federal Direct Loan Program, Federal Family Education Loan Program (the “FFEL Program” or FFELP), private education, and consumer loans;

•loan portfolio risks such as credit risk, prepayment risk, interest rate basis and repricing risk, risks related to the use of derivatives to manage exposure to interest rate fluctuations, uncertainties regarding the expected benefits from purchased securitized and unsecuritized FFELP, private education, consumer, and other loans, or residual interests therein, and initiatives to purchase additional FFELP, private education, consumer, and other loans;

•financing and liquidity risks, including risks of changes in the interest rate environment;

•risks from changes in the terms of education loans and in the educational credit and services markets resulting from changes in applicable laws, regulations, and government programs and budgets;

•risks related to a breach of or failure in the Company's operational or information systems or infrastructure, or those of third-party vendors, including disclosure of confidential or personal information and/or damage to reputation resulting from cyber breaches;

•risks related to use of artificial intelligence;

•uncertainties inherent in forecasting future cash flows from student loan assets, including residual interests therein, and related asset-backed securitizations;

•risks related to the ability of Nelnet Bank to achieve its business objectives and effectively deploy loan and deposit strategies and achieve expected market penetration;

•risks related to the Company's solar tax equity partnerships, including risks of not being able to realize tax credits which remain subject to recapture by taxing authorities and risks from the impact of the enactment of the One Big Beautiful Bill that accelerates the expiration and phase out of solar energy credits;

•risks and uncertainties related to other initiatives (and anticipated income therefrom) including venture capital, real estate, reinsurance, acquisitions, and other activities, including activities that are intended to diversify the Company both within and outside of its historical core education-related businesses;

•risks and uncertainties associated with climate change; and

•risks and uncertainties associated with litigation matters, maintaining compliance with the extensive regulatory requirements applicable to the Company's businesses, and uncertainties inherent in the estimates and assumptions about future events that management is required to make in the preparation of the Company’s consolidated financial statements.

All forward-looking statements contained in this report are qualified by these cautionary statements and are made only as of the date of this document. Although the Company may from time to time voluntarily update or revise its prior forward-looking statements to reflect actual results or changes in the Company's expectations, the Company disclaims any commitment to do so except as required by law.

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Consolidated Statements of Income

(Dollars in thousands, except share data)

(unaudited)

			Three months ended																		Year ended
			December 31, 2025						September 30, 2025						December 31, 2024						December 31, 2025						December 31, 2024
Interest income:
Loan interest			$	184,825					162,717						178,434						686,085						787,498
Investment interest			40,559						43,241						42,815						165,374						185,901
Total interest income			225,384						205,958						221,249						851,459						973,399
Interest expense on bonds and notes payable and bank deposits			118,273						120,708						141,170						496,950						680,537
Net interest income			107,111						85,250						80,079						354,509						292,862
Less provision (negative provision) for loan losses			38,147						(3,563)						22,057						67,851						54,607
Less provision for beneficial interests			2,679						2,145						4,628						11,311						39,491
Net interest income after provision			66,285						86,668						53,394						275,347						198,764
Other income (expense):
Loan servicing and systems revenue			116,573						151,052						137,981						509,089						482,408
Education technology services and payments revenue			112,314						129,321						108,335						507,150						486,962
Reinsurance premiums earned			33,539						23,165						18,673						107,502						62,923
Solar construction revenue			3,379						5,738						13,828						14,371						56,569
Other, net			16,749						33,258						27,836						97,587						59,959
Gain on partial redemption of ALLO investment			—						—						—						175,044						—
Derivative settlements, net			451						761						1,087						2,700						6,134
Derivative market value adjustments, net			1,879						(788)						13,792						(9,098)						10,124
Total other income (expense), net			284,884						342,507						321,532						1,404,345						1,165,079
Cost of services and expenses:
Loan servicing contract fulfillment and acquisition costs			2,056						2,021						1,497						7,555						1,889
Cost to provide education technology services and payments			38,654						50,363						38,658						176,907						172,763
Cost to provide solar construction services			12,326						7,607						28,558						41,810						77,673
Total cost of services			53,036						59,991						68,713						226,272						252,325
Salaries and benefits			141,086						144,778						147,229						558,786						576,931
Depreciation and amortization			9,365						7,327						12,544						33,571						58,116
Reinsurance losses and underwriting expenses			25,715						19,962						16,180						93,551						55,246
Impairment expense			17,220						7,000						1,136						29,612						3,138
Other expenses			58,369						53,669						50,681						211,568						189,503
Total operating expenses			251,755						232,736						227,770						927,088						882,934
Income before income taxes			46,378						136,448						78,443						526,332						228,584
Income tax expense			(7,691)						(35,773)						(15,016)						(127,986)						(52,669)
Net income			38,687						100,675						63,427						398,346						175,915
Net loss (income) attributable to noncontrolling interests			19,084						6,009						(268)						30,128						8,130
Net income attributable to Nelnet, Inc.			$	57,771					106,684						63,159						428,474						184,045
Earnings per common share:
Net income attributable to Nelnet, Inc. shareholders - basic and diluted			$	1.60					2.94						1.73						11.79						5.02
Weighted-average common shares outstanding - basic and diluted			36,088,994						36,316,315						36,461,513						36,341,197						36,642,533

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Condensed Consolidated Balance Sheets

(Dollars in thousands)

(unaudited)

			As of						As of						As of
			December 31, 2025						September 30, 2025						December 31, 2024
Assets:
Loans and accrued interest receivable, net			$	10,006,695					10,227,261						9,992,744
Cash, cash equivalents, and investments			2,643,954						2,455,950						2,395,214
Restricted cash			677,563						550,371						736,502
Goodwill and intangible assets, net			187,312						189,783						194,357
Other assets			548,259						453,317						458,936
Total assets			$	14,063,783					13,876,682						13,777,753
Liabilities:
Bonds and notes payable			$	7,780,927					7,822,531						8,309,797
Bank deposits			1,669,173						1,476,765						1,186,131
Other liabilities			1,036,454						990,691						982,708
Total liabilities			10,486,554						10,289,987						10,478,636
Equity:
Total Nelnet, Inc. shareholders' equity			3,685,792						3,653,290						3,349,762
Noncontrolling interests			(108,563)						(66,595)						(50,645)
Total equity			3,577,229						3,586,695						3,299,117
Total liabilities and equity			$	14,063,783					13,876,682						13,777,753

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Overview

Nelnet is an operating holding company with primary businesses in consumer lending, loan servicing, payments, and technology-enabled services, many of which are focused on serving customers in the education sector. The Company conducts these activities both directly and through its wholly owned and majority-owned subsidiaries, and actively manages and operates its businesses on an integrated basis. Nelnet’s largest operating and technology platforms support loan servicing and education-related technology and payment solutions. A significant portion of the Company’s revenue is derived from net interest income earned on a portfolio of federally insured student loans, a substantial portion of which is serviced by the Company.

The Company has also broadened its operating business mix both within and beyond its historical education-focused activities. These businesses include banking and other financial services conducted through the Company’s bank and other subsidiaries, asset management and related customer-facing servicing, real estate development and management, reinsurance operations, renewable energy development, and selected strategic interests in early-stage, emerging growth, and other operating enterprises. The Company actively manages such businesses and holds interests in them for strategic and operational purposes.

The Company was formed as a Nebraska corporation in 1978 to service federal student loans for two local banks. The Company built on this initial foundation as a servicer to become a leading originator, holder, and servicer of federal student loans, principally consisting of loans originated under the FFEL Program.

The Health Care and Education Reconciliation Act of 2010 discontinued new loan originations under the FFEL Program, effective July 1, 2010, and requires all new federal student loan originations be made directly by the Department through the Federal Direct Loan Program. This law does not alter or affect the terms and conditions of existing FFELP loans. Subsequent to the Reconciliation Act of 2010, the Company no longer originates FFELP loans. However, a significant portion of the Company's income continues to be derived from its existing FFELP student loan portfolio. Interest income on the Company's existing FFELP loan portfolio will decline over time as the portfolio is paid down. To reduce its reliance on interest income from FFELP loans, the Company has expanded its services and products. This expansion has been accomplished through internal growth and innovation as well as acquisitions. The Company is also actively expanding its private education, consumer, and other loan portfolios, or residual interests therein, and as part of this strategy launched Nelnet Bank in 2020. In addition, the Company has been servicing federally owned student loans for the Department since 2009.

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GAAP Net Income and Non-GAAP Net Income, Excluding Adjustments

The Company prepares its financial statements and presents its financial results in accordance with GAAP. However, it also provides additional non-GAAP financial information related to specific items management believes to be important in the evaluation of its operating results and performance. A reconciliation of the Company's GAAP net income to Non-GAAP net income excluding derivative market value adjustments, and a discussion of why the Company believes providing this additional information is useful to investors, are provided below.

			Three months ended																		Year ended
			December 31, 2025						September 30, 2025						December 31, 2024						December 31, 2025						December 31, 2024
GAAP net income attributable to Nelnet, Inc.			$	57,771					106,684						63,159						428,474						184,045
Realized and unrealized derivative market value adjustments (a)			(1,879)						788						(13,792)						9,098						(10,124)
Tax effect (b)			451						(189)						3,310						(2,184)						2,430
Non-GAAP net income attributable to Nelnet, Inc., excluding derivative market value adjustments			$	56,343					107,283						52,677						435,388						176,351
Earnings per share:
GAAP net income attributable to Nelnet, Inc.			$	1.60					2.94						1.73						11.79						5.02
Realized and unrealized derivative market value adjustments (a)			(0.05)						0.02						(0.38)						0.25						(0.28)
Tax effect (b)			0.01						(0.01)						0.09						(0.06)						0.07
Non-GAAP net income attributable to Nelnet, Inc., excluding derivative market value adjustments			$	1.56					2.95						1.44						11.98						4.81

(a)"Derivative market value adjustments" includes both the realized portion of gains and losses (corresponding to variation margin received or paid on derivative instruments that are settled daily at a central clearinghouse) and the unrealized portion of gains and losses that are caused by changes in fair values of derivatives which do not qualify for "hedge treatment" under GAAP. "Derivative market value adjustments" does not include "derivative settlements" that represent the cash paid or received during the respective period to settle with derivative instrument counterparties the economic effect of the Company's derivative instruments based on their contractual terms.

The accounting for derivatives requires that changes in the fair value of derivative instruments be recognized currently in earnings, with no fair value adjustment of the hedged item, unless specific hedge accounting criteria are met. Management has structured all of the Company’s derivative transactions with the intent that each is economically effective; however, the majority of the Company’s derivative instruments do not qualify for hedge accounting in the consolidated financial statements. As a result, the change in fair value for the derivative instruments that do not qualify for hedge accounting is reported in current period earnings with no consideration for the corresponding change in fair value of the hedged item. Under GAAP, the cumulative net realized and unrealized gain or loss caused by changes in fair values of derivatives in which the Company plans to hold to maturity will generally equal zero over the life of the contract. However, the net realized and unrealized gain or loss during any given reporting period fluctuates significantly from period to period.

The Company believes these point-in-time estimates of asset and liability values related to its derivative instruments that are subject to interest rate fluctuations are subject to volatility mostly due to timing and market factors beyond the control of management, and affect the period-to-period comparability of the results of operations. Accordingly, the Company’s management utilizes operating results excluding these items for comparability purposes when making decisions regarding the Company’s performance and in presentations with credit rating agencies, lenders, and investors. Consequently, the Company reports this non-GAAP information because the Company believes that it provides additional information regarding operational and performance indicators that are closely assessed by management and represents what earnings would have been had these derivatives qualified for hedge accounting. There is no comprehensive, authoritative guidance for the presentation of such non-GAAP information, which is only meant to supplement GAAP results by providing additional information that management utilizes to assess performance.

(b)The tax effects are calculated by multiplying the realized and unrealized derivative market value adjustments by the applicable statutory income tax rate.

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Operating Segments

A description of the Company's reportable operating segments is included in note 1 of the notes to consolidated financial statements included in the Company's 2025 Annual Report. The Company's reportable operating segments include:

•Loan Servicing and Systems (LSS) - referred to as Nelnet Diversified Services (NDS)

•Education Technology Services and Payments (ETSP) - referred to as Nelnet Business Services (NBS)

•Asset Generation and Management (AGM), part of the Nelnet Financial Services (NFS) division

•Nelnet Bank, part of the NFS division

The Company earns fee-based revenue through its NDS and NBS reportable operating segments. The Company earns net interest income on its loan portfolio, consisting primarily of FFELP loans, through its AGM reportable operating segment. This segment is expected to generate significant amounts of cash as the FFELP portfolio amortizes. The Company actively works to maximize the amount and timing of cash flows generated from its FFELP portfolio and seeks to acquire additional loan assets to leverage its servicing scale and expertise to generate incremental earnings and cash flow. Nelnet Bank operates as an internet industrial bank franchise focused on the private education and unsecured consumer loan markets, with a home office in Salt Lake City, Utah.

The NFS division was formed to focus on the Company’s key objective to maximize the amount and timing of cash flows generated from its FFELP portfolio and reposition itself for the post-FFELP environment by expanding its private education, consumer, and other loan portfolios. In addition to AGM and Nelnet Bank being part of the NFS division, NFS’s other operating segments that are not reportable include the operating results of:

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

•Whitetail Rock Capital Management, LLC (WRCM), the Company's U.S. Securities and Exchange Commission (SEC)-registered investment advisor subsidiary

•The Company’s ownership and activities in real estate

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

Other business activities and operating segments that are not reportable and not part of the NFS division are combined and included in Corporate and Other Activities ("Corporate"). Corporate includes the following items:

•Shared service activities related to human resources, accounting, legal, enterprise risk management, information technology, occupancy, and marketing. These costs are allocated to each operating segment based on estimated use of such activities and services

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

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

•The operating results of Nelnet Renewable Energy, the Company’s solar engineering, procurement, and construction business. The Company sold its ownership interest in Nelnet Renewable Energy during the fourth quarter of 2025.

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

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

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

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The following table presents the operating results (net income (loss) before taxes) for each of the Company’s reportable and certain other operating segments reconciled to the consolidated financial statements:

			Three months ended																		Year ended
			December 31, 2025						September 30, 2025						December 31, 2024						December 31, 2025						December 31, 2024
NDS			$	11,649					46,270						26,810						96,389						40,497
NBS			16,993						24,957						17,851						112,957						117,896
Nelnet Financial Services division:
AGM			32,630						36,621						33,490						126,480						75,202
Nelnet Bank			7,040						6,088						5,387						14,613						(1,942)
Nelnet Insurance Services			7,941						4,061						3,408						15,209						11,332
WRCM			1,247						1,933						1,357						5,972						5,391
Real estate			(5,723)						1,513						(1,107)						(6,152)						(3,333)
Bond portfolio			10,410						12,936						7,736						39,441						42,328
Corporate:
Unallocated shared services and corporate costs			(10,073)						(9,909)						(16,805)						(41,893)						(46,194)
Renewable energy solar developments			(7,485)						(15,497)						6,585						(23,770)						(2,179)
Nelnet Renewable Energy - solar construction			(27,341)						(6,025)						(17,046)						(57,540)						(35,972)
ALLO			148						1,137						6,133						194,936						8,087
Venture capital			(206)						33,520						2,063						38,874						6,912
Other corporate activities			9,053						(1,268)						2,504						10,418						10,481
Eliminations/reclassifications			94						112						77						398						77
Net income before taxes			46,378						136,448						78,443						526,332						228,584
Income tax expense			(7,691)						(35,773)						(15,016)						(127,986)						(52,669)
Net loss (income) attributable to noncontrolling interests			19,084						6,009						(268)						30,128						8,130
Net income			$	57,771					106,684						63,159						428,474						184,045

Impact of Significant Transactions on 2025 Operating Highlights

Operating results for fiscal year 2025 were materially affected by certain transactions which are summarized below.

Partial Redemption of ALLO Membership Interests

ALLO, a fiber communication services provider, was a former majority-owned subsidiary, until a recapitalization of ALLO in 2020 resulted in a deconsolidation of ALLO from the Company’s consolidated financial statements. In June 2025, ALLO redeemed certain of its membership interests from members, including Nelnet. As part of the transaction, ALLO redeemed more than 50% of Nelnet’s voting membership interest in ALLO and all its outstanding preferred membership interest. At the closing of the transaction, Nelnet received cash proceeds of $410.9 million from ALLO related to these redemptions and recognized a pre-tax gain of $175.0 million, attributable to the redemption of the voting membership interest. This gain is included in “ALLO” in the above table. Following the transaction, Nelnet maintains a significant voting equity interest in ALLO. Nelnet’s ownership of voting membership interest in ALLO decreased from 45% to 27%.

Government Servicing Contract

Upon reaching a final agreement with the Department of Education, the Company's Loan Servicing and Systems operating segment (NDS) recognized $32.9 million of non-recurring revenue in the third quarter 2025 on a contract modification for services previously performed. This revenue is included in the operating results of “NDS” in the above table.

Venture Capital

The Company has an interest in CompanyCam, Inc. (“CompanyCam”), a technology company that provides a photo-based, cloud managed application designed for contractors and field service professionals to document projects in real-time. In August 2025, CompanyCam completed an additional equity raise and accepted tender offers to redeem existing equity holders with a portion of the proceeds. The Company redeemed a portion of its interest and received cash proceeds of $10.1 million and recognized a pre-tax gain of $7.8 million. The Company accounts for its interest in CompanyCam using the measurement alternative method, which

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requires it to adjust its carrying value for changes resulting from observable market transactions. As a result of CompanyCam’s equity raise, the Company recognized a pre-tax gain of $22.4 million during the third quarter of 2025 to adjust its carrying value of its remaining interest in CompanyCam to reflect the August 2025 transaction value. These gains are included in “Venture capital” in the above table. After the completion of this transaction, the carrying amount of the Company’s remaining interest in CompanyCam is $31.7 million.

Reversal of Provision for Loan Losses for Loans Sold

In July 2025, the Company sold $203.3 million of consumer loans to an unrelated third party who securitized such loans. As partial consideration received for the loans sold, the Company received a residual interest in the loan securitization that is included in “other investments and notes receivable, net” on the Company's consolidated balance sheet. Once a loan is classified as held for sale, any allowance for loan losses that existed immediately prior to the reclassification to held for sale is reversed. The Company reduced its allowance (and recognized negative provision expense) of $28.9 million (that increased income) related to this loan sale. The reversal of the allowance related to this loan sale is included in the operating results of “AGM” in the above table.

Nelnet Renewable Energy (NRE)

NRE was the Company’s solar construction subsidiary, providing full‑service engineering, procurement, and construction (EPC) services. The Company entered the EPC business through its acquisition of GRNE Solar in July 2022. Following the acquisition, NRE experienced low and, in certain cases, negative margins on projects. In addition, changes in legislation reducing clean energy tax incentives, tariff uncertainty, and rising construction costs adversely affected revenue and net income. As a result of these factors, the Company sold NRE in November 2025.

For the year ended December 31, 2025, NRE generated a net loss before taxes of $57.5 million, as reflected in the table above. Although the Company retained a limited number of construction contracts to complete following the sale, the Company does not expect the operating results from such contracts to be significant in future periods.

Recent Development

On February 2, 2026, the Company acquired a Canadian student loan servicing business for CAD $130.5 million (USD $95.7 million). The acquired business (“NDS Canada”) delivers technology-enabled student loan servicing for governments and financial institutions, managing 2.7 million borrowers on proprietary platforms. Beginning on the acquisition date, the operating results of NDS Canada will be included in the Loan Servicing and Systems reportable operating segment.

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Segment Reporting

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

						Three months ended December 31, 2025
						Reportable Segments																														Reconciling Items
						Loan Servicing and Systems (LSS)						Education Technology Services and Payments (ETSP)						Asset Generation and Management						Nelnet Bank						Total Reportable Segments						NFS Other Operating Segments						Corporate and Other Activities						Eliminations/ Reclassifications						Total
Interest income:
Loan interest						$	—					—						167,109						17,716						184,825						—						—						—						184,825
Investment interest						565						5,556						11,763						16,200						34,084						16,680						2,923						(13,128)						40,559
Total interest income						565						5,556						178,872						33,916						218,909						16,680						2,923						(13,128)						225,384
Interest expense						—						—						115,383						16,356						131,739						1,380						(1,718)						(13,128)						118,273
Net interest income						565						5,556						63,489						17,560						87,170						15,300						4,641						—						107,111
Less provision (negative provision) for loan losses						—						—						32,491						5,656						38,147						—						—						—						38,147
Less provision for beneficial interests						—						—						2,679						—						2,679						—						—						—						2,679
Net interest income after provision						565						5,556						28,319						11,904						46,344						15,300						4,641						—						66,285
Other income (expense):
LSS revenue						116,573						—						—						—						116,573						—						—						—						116,573
ETSP revenue						—						112,314						—						—						112,314						—						—						—						112,314
Intersegment revenue						5,559						66						—						—						5,625						—						—						(5,625)						—
Reinsurance premiums earned						—						—						—						—						—						33,539						—						—						33,539
Solar construction revenue						—						—						—						—						—						—						3,379						—						3,379
Other, net						128						—						17,100						1,482						18,710						(3,121)						1,067						93						16,749
Gain on partial redemption of ALLO investment						—						—						—						—						—						—						—						—						—
Derivative settlements, net						—						—						339						112						451						—						—						—						451
Derivative market value adjustments, net						—						—						225						747						972						—						907						—						1,879
Total other income (expense), net						122,260						112,380						17,664						2,341						254,645						30,418						5,353						(5,532)						284,884
Cost of services and expenses:
Total cost of services						2,056						38,654						—						—						40,710						—						12,326						—						53,036
Salaries and benefits						66,557						43,055						1,702						3,022						114,336						888						25,874						(12)						141,086
Depreciation and amortization						2,769						3,445						—						354						6,568						—						2,797						—						9,365
Reinsurance losses and underwriting expenses						—						—						—						—						—						25,715						—						—						25,715
Postage expense						9,483																								9,483																		(9,483)						—
Servicing fees																		8,566						862						9,428																		(9,428)						—
Impairment expense						—						—						—						—						—						3,920						13,300						—						17,220
Other expenses						13,480						9,474						1,888						2,244						27,086						1,024						16,793						13,467						58,369
Intersegment expenses, net						16,831						6,315						1,197						723						25,066						296						(25,192)						(170)						—
Total operating expenses						109,120						62,289						13,353						7,205						191,967						31,843						33,572						(5,626)						251,755
Income (loss) before income taxes						11,649						16,993						32,630						7,040						68,312						13,875						(35,904)						94						46,378
Income tax (expense) benefit						(2,796)						(4,078)						(7,827)						(1,746)						(16,447)						(3,305)						12,061						—						(7,691)
Net income (loss)						8,853						12,915						24,803						5,294						51,865						10,570						(23,843)						94						38,687
Net (income) loss attributable to noncontrolling interests						—						—						(18)						—						(18)						(104)						19,300						(94)						19,084
Net income (loss) attributable to Nelnet, Inc.						$	8,853					12,915						24,785						5,294						51,847						10,466						(4,543)						—						57,771

9

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						Three months ended September 30, 2025
						Reportable Segments																														Reconciling Items
						Loan Servicing and Systems (LSS)						Education Technology Services and Payments (ETSP)						Asset Generation and Management						Nelnet Bank						Total Reportable Segments						NFS Other Operating Segments						Corporate and Other Activities						Eliminations/ Reclassifications						Total
Interest income:
Loan interest						$	—					—						145,984						16,733						162,717						—						—						—						162,717
Investment interest						531						8,564						12,051						14,849						35,995						14,985						3,134						(10,872)						43,241
Total interest income						531						8,564						158,035						31,582						198,712						14,985						3,134						(10,872)						205,958
Interest expense						—						—						113,350						16,179						129,529						1,359						692						(10,872)						120,708
Net interest income						531						8,564						44,685						15,403						69,183						13,626						2,442						—						85,250
Less provision (negative provision) for loan losses						—						—						(7,374)						3,811						(3,563)						—						—						—						(3,563)
Less provision for beneficial interests						—						—						2,145						—						2,145						—						—						—						2,145
Net interest income after provision						531						8,564						49,914						11,592						70,601						13,626						2,442						—						86,668
Other income (expense):
LSS revenue						151,052						—						—						—						151,052						—						—						—						151,052
ETSP revenue						—						129,321						—						—						129,321						—						—						—						129,321
Intersegment revenue						5,313						70						—						—						5,383						—						—						(5,383)						—
Reinsurance premiums earned						—						—						—						—						—						23,165						—						—						23,165
Solar construction revenue						—						—						—						—						—						—						5,738						—						5,738
Other, net						105						—						(2,277)						1,308						(864)						5,674						28,336						112						33,258
Gain on partial redemption of ALLO investment						—						—						—						—						—						—						—						—						—
Derivative settlements, net						—						—						594						167						761						—						—						—						761
Derivative market value adjustments, net						—						—						(461)						(327)						(788)						—						—						—						(788)
Total other income (expense), net						156,470						129,391						(2,144)						1,148						284,865						28,839						34,074						(5,271)						342,507
Cost of services and expenses:
Total cost of services						2,021						50,363						—						—						52,384						—						7,607						—						59,991
Salaries and benefits						70,126						43,029						1,971						2,817						117,943						668						26,193						(26)						144,778
Depreciation and amortization						1,725						2,504						—						355						4,584						—						2,743						—						7,327
Reinsurance losses and underwriting expenses						—						—						—						—						—						19,962						—						—						19,962
Postage expense						8,735																								8,735																		(8,735)						—
Servicing fees																		6,687						838						7,525																		(7,525)						—
Impairment expense						—						1,145						—						—						1,145						—						5,855						—						7,000
Other expenses						10,862						9,537						1,243						1,916						23,558						1,103						17,901						11,107						53,669
Intersegment expenses, net						17,262						6,420						1,248						726						25,656						289						(25,741)						(204)						—
Total operating expenses						108,710						62,635						11,149						6,652						189,146						22,022						26,951						(5,383)						232,736
Income (loss) before income taxes						46,270						24,957						36,621						6,088						113,936						20,443						1,958						112						136,448
Income tax (expense) benefit						(11,105)						(5,990)						(8,783)						(1,483)						(27,361)						(4,866)						(3,547)						—						(35,773)
Net income (loss)						35,165						18,967						27,838						4,605						86,575						15,577						(1,589)						112						100,675
Net (income) loss attributable to noncontrolling interests						—						—						(27)						—						(27)						(169)						6,317						(112)						6,009
Net income (loss) attributable to Nelnet, Inc.						$	35,165					18,967						27,811						4,605						86,548						15,408						4,728						—						106,684

10

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						Three months ended December 31, 2024
						Reportable Segments																														Reconciling Items
						Loan Servicing and Systems (LSS)						Education Technology Services and Payments (ETSP)						Asset Generation and Management						Nelnet Bank						Total Reportable Segments						NFS Other Operating Segments						Corporate and Other Activities						Eliminations/ Reclassifications						Total
Interest income:
Loan interest						$	—					—						165,210						13,224						178,434						—						—						—						178,434
Investment interest						831						6,576						13,789						12,691						33,887						10,447						2,207						(3,726)						42,815
Total interest income						831						6,576						178,999						25,915						212,321						10,447						2,207						(3,726)						221,249
Interest expense						—						—						130,668						12,987						143,655						1,568						(327)						(3,726)						141,170
Net interest income						831						6,576						48,331						12,928						68,666						8,879						2,534						—						80,079
Less provision (negative provision) for loan losses						—						—						13,493						8,564						22,057						—						—						—						22,057
Less provision for beneficial interests						—						—						4,628						—						4,628						—						—						—						4,628
Net interest income after provision						831						6,576						30,210						4,364						41,981						8,879						2,534						—						53,394
Other income (expense):
LSS revenue						137,981						—						—						—						137,981						—						—						—						137,981
ETSP revenue						—						108,335						—						—						108,335						—						—						—						108,335
Intersegment revenue						6,073						55						—						—						6,128						—						—						(6,128)						—
Reinsurance premiums earned						—						—						—						—						—						18,673						—						—						18,673
Solar construction revenue						—						—						—						—						—						—						13,828						—						13,828
Other, net						684						—						4,682						960						6,326						1,549						19,884						77						27,836
Gain on partial redemption of ALLO investment						—						—						—						—						—						—						—						—						—
Derivative settlements, net						—						—						860						227						1,087						—						—						—						1,087
Derivative market value adjustments, net						—						—						8,297						5,495						13,792						—						—						—						13,792
Total other income (expense), net						144,738						108,390						13,839						6,682						273,649						20,222						33,712						(6,051)						321,532
Cost of services and expenses:
Total cost of services						1,497						38,658						—						—						40,155						—						28,558						—						68,713
Salaries and benefits						76,194						42,760						1,255						2,631						122,840						457						23,989						(57)						147,229
Depreciation and amortization						4,171						2,519						—						338						7,028						—						5,516						—						12,544
Reinsurance losses and underwriting expenses						—						—						—						—						—						16,180						—						—						16,180
Postage expense						8,470																								8,470																		(8,470)						—
Servicing fees																		7,087						662						7,749																		(7,749)						—
Impairment expense						736						—						—						—						736						—						400						—						1,136
Other expenses						12,163						8,509						936						1,396						23,004						882						16,220						10,575						50,681
Intersegment expenses, net						15,528						4,669						1,281						632						22,110						188						(21,871)						(427)						—
Total operating expenses						117,262						58,457						10,559						5,659						191,937						17,707						24,254						(6,128)						227,770
Income (loss) before income taxes						26,810						17,851						33,490						5,387						83,538						11,394						(16,566)						77						78,443
Income tax (expense) benefit						(6,434)						(4,298)						(8,038)						(1,222)						(19,992)						(2,711)						7,688						—						(15,016)
Net income (loss)						20,376						13,553						25,452						4,165						63,546						8,683						(8,878)						77						63,427
Net (income) loss attributable to noncontrolling interests						—						57						—						—						57						(97)						(151)						(77)						(268)
Net income (loss) attributable to Nelnet, Inc.						$	20,376					13,610						25,452						4,165						63,603						8,586						(9,029)						—						63,159

11

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						Year ended December 31, 2025
						Reportable Segments																														Reconciling Items
						Loan Servicing and Systems (LSS)						Education Technology Services and Payments (ETSP)						Asset Generation and Management						Nelnet Bank						Total Reportable Segments						NFS Other Operating Segments						Corporate and Other Activities						Eliminations/ Reclassifications						Total
Interest income:
Loan interest						$	—					—						624,861						61,224						686,085						—						—						—						686,085
Investment interest						2,441						26,476						49,226						57,478						135,621						49,356						11,029						(30,632)						165,374
Total interest income						2,441						26,476						674,087						118,702						821,706						49,356						11,029						(30,632)						851,459
Interest expense						—						—						463,102						59,284						522,386						4,938						258						(30,632)						496,950
Net interest income						2,441						26,476						210,985						59,418						299,320						44,418						10,771						—						354,509
Less provision (negative provision) for loan losses						—						—						49,261						18,590						67,851						—						—						—						67,851
Less provision for beneficial interests						—						—						11,311						—						11,311						—						—						—						11,311
Net interest income after provision						2,441						26,476						150,413						40,828						220,158						44,418						10,771						—						275,347
Other income (expense):
LSS revenue						509,089						—						—						—						509,089						—						—						—						509,089
ETSP revenue						—						507,150						—						—						507,150						—						—						—						507,150
Intersegment revenue						22,158						265						—						—						22,423						—						—						(22,423)						—
Reinsurance premiums earned						—						—						—						—						—						107,502						—						—						107,502
Solar construction revenue						—						—						—						—						—						—						14,371						—						14,371
Other, net						459						—						27,235						3,324						31,018						8,928						57,244						397						97,587
Gain on partial redemption of ALLO investment						—						—						—						—						—						—						175,044						—						175,044
Derivative settlements, net						—						—						2,094						606						2,700						—						—						—						2,700
Derivative market value adjustments, net						—						—						(6,196)						(3,809)						(10,005)						—						907						—						(9,098)
Total other income (expense), net						531,706						507,415						23,133						121						1,062,375						116,430						247,566						(22,026)						1,404,345
Cost of services and expenses:
Total cost of services						7,555						176,907						—						—						184,462						—						41,810						—						226,272
Salaries and benefits						271,806						169,424						6,363						11,446						459,039						2,573						97,346						(172)						558,786
Depreciation and amortization						8,969						10,884						—						1,400						21,253						—						12,318						—						33,571
Reinsurance losses and underwriting expenses						—						—						—						—						—						93,551						—						—						93,551
Postage expense						35,344																								35,344																		(35,344)						—
Servicing fees																		29,266						3,191						32,457																		(32,457)						—
Impairment expense						—						1,145						—						—						1,145						4,001						24,466						—						29,612
Other expenses						46,273						37,962						6,483						7,487						98,205						5,104						61,975						46,284						211,568
Intersegment expenses, net						67,811						24,612						4,954						2,812						100,189						1,149						(100,603)						(735)						—
Total operating expenses						430,203						244,027						47,066						26,336						747,632						106,378						95,502						(22,424)						927,088
Income (loss) before income taxes						96,389						112,957						126,480						14,613						350,439						54,470						121,025						398						526,332
Income tax (expense) benefit						(23,134)						(27,120)						(30,335)						(3,562)						(84,151)						(12,950)						(30,885)						—						(127,986)
Net income (loss)						73,255						85,837						96,145						11,051						266,288						41,520						90,140						398						398,346
Net (income) loss attributable to noncontrolling interests						—						45						(85)						—						(40)						(511)						31,077						(398)						30,128
Net income (loss) attributable to Nelnet, Inc.						$	73,255					85,882						96,060						11,051						266,248						41,009						121,217						—						428,474

12

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						Year ended December 31, 2024
						Reportable Segments																														Reconciling Items
						Loan Servicing and Systems (LSS)						Education Technology Services and Payments (ETSP)						Asset Generation and Management						Nelnet Bank						Total Reportable Segments						NFS Other Operating Segments						Corporate and Other Activities						Eliminations/ Reclassifications						Total
Interest income:
Loan interest						$	—					—						749,117						38,381						787,498						—						—						—						787,498
Investment interest						4,877						29,891						68,302						45,992						149,062						54,357						11,773						(29,291)						185,901
Total interest income						4,877						29,891						817,419						84,373						936,560						54,357						11,773						(29,291)						973,399
Interest expense						—						—						654,346						44,859						699,205						8,837						1,787						(29,291)						680,537
Net interest income						4,877						29,891						163,073						39,514						237,355						45,520						9,986						—						292,862
Less provision (negative provision) for loan losses						—						—						27,691						26,916						54,607						—						—						—						54,607
Less provision for beneficial interests						—						—						39,491						—						39,491						—						—						—						39,491
Net interest income after provision						4,877						29,891						95,891						12,598						143,257						45,520						9,986						—						198,764
Other income (expense):
LSS revenue						482,408						—						—						—						482,408						—						—						—						482,408
ETSP revenue						—						486,962						—						—						486,962						—						—						—						486,962
Intersegment revenue						24,493						220						—						—						24,713						—						—						(24,713)						—
Reinsurance premiums earned						—						—						—						—						—						62,923						—						—						62,923
Solar construction revenue						—						—						—						—						—						—						56,569						—						56,569
Other, net						2,769						—						14,236						2,951						19,956						8,313						31,613						77						59,959
Gain on partial redemption of ALLO investment						—						—						—						—						—						—						—						—						—
Derivative settlements, net						—						—						5,217						917						6,134						—						—						—						6,134
Derivative market value adjustments, net						—						—						5,422						4,702						10,124						—						—						—						10,124
Total other income (expense), net						509,670						487,182						24,875						8,570						1,030,297						71,236						88,182						(24,636)						1,165,079
Cost of services and expenses:
Total cost of services						1,889						172,763						—						—						174,652						—						77,673						—						252,325
Salaries and benefits						300,366						164,716						4,784						11,122						480,988						1,587						96,148						(1,792)						576,931
Depreciation and amortization						19,475						10,531						—						1,282						31,288						—						26,828						—						58,116
Reinsurance losses and underwriting expenses						—						—						—						—						—						55,246						—						—						55,246
Postage expense						36,820																								36,820																		(36,820)						—
Servicing fees																		31,591						1,373						32,964																		(32,964)						—
Impairment expense						736						—						—						—						736						—						2,402						—						3,138
Other expenses						43,282						32,281						4,152						6,972						86,687						3,352						53,581						45,883						189,503
Intersegment expenses, net						71,482						18,886						5,037						2,361						97,766						853						(99,599)						980						—
Total operating expenses						472,161						226,414						45,564						23,110						767,249						61,038						79,360						(24,713)						882,934
Income (loss) before income taxes						40,497						117,896						75,202						(1,942)						231,653						55,718						(58,865)						77						228,584
Income tax (expense) benefit						(9,719)						(28,333)						(18,048)						579						(55,521)						(13,261)						16,114						—						(52,669)
Net income (loss)						30,778						89,563						57,154						(1,363)						176,132						42,457						(42,751)						77						175,915
Net (income) loss attributable to noncontrolling interests						—						158						—						—						158						(463)						8,512						(77)						8,130
Net income (loss) attributable to Nelnet, Inc.						$	30,778					89,721						57,154						(1,363)						176,290						41,994						(34,239)						—						184,045

13

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Loan Servicing and Systems Revenue

The following table presents disaggregated revenue by service offering for the Loan Servicing and Systems operating segment:

			Three months ended																		Year ended
			December 31, 2025						September 30, 2025						December 31, 2024						December 31, 2025						December 31, 2024
Government loan servicing (a)			$	78,075					112,798						103,217						363,970						380,921
Private education and consumer loan servicing			24,751						24,293						24,819						94,472						63,453
FFELP loan servicing			1,969						2,035						2,642						8,878						12,212
Software services			11,389						10,584						6,415						38,416						21,032
Outsourced services			389						1,342						888						3,353						4,790
Loan servicing and systems revenue			$	116,573					151,052						137,981						509,089						482,408

(a)    Upon reaching a final agreement with the Department, the Company recognized $32.9 million of non-recurring revenue in the third quarter of 2025 on a contract modification for services previously performed. In the fourth quarter of 2024, the Company recognized $10.9 million of non-recurring revenue to reflect a settlement related to certain provisions included in the legacy contract concerning inflation adjustments.

Loan Servicing Volumes

			As of
			December 31, 2025						September 30, 2025						June 30, 2025						March 31, 2025						December 31, 2024						September 30, 2024						June 30, 2024						March 31, 2024						December 31, 2023
Servicing volume (dollars in millions):
Government			$	434,479					458,679						465,689						482,786						489,877						492,142						489,298						495,409						494,691
FFELP			11,594						11,982						12,386						12,826						13,260						13,745						14,576						15,783						17,462
Private and consumer			40,088						38,060						38,018						46,728						29,226						20,666						19,876						21,015						20,493
Total			$	486,161					508,721						516,093						542,340						532,363						526,553						523,750						532,207						532,646
Number of servicing borrowers:
Government			11,426,789						12,387,665						12,694,386						13,453,127						14,049,550						14,114,468						14,096,152						14,328,013						14,503,057
FFELP			463,109						482,696						502,205						524,421						549,861						574,979						610,745						656,814						725,866
Private and consumer			1,349,414						1,325,037						1,326,451						1,350,999						1,168,293						851,747						829,072						882,256						894,703
Total			13,239,312						14,195,398						14,523,042						15,328,547						15,767,704						15,541,194						15,535,969						15,867,083						16,123,626
Number of remote hosted borrowers:			2,886,458						2,839,493						2,056,358						1,427,800						842,200						662,075						133,681						65,295						70,580

Education Technology Services and Payments Revenue

The following table presents disaggregated revenue by servicing offering for the Education Technology Services and Payments operating segment:

			Three months ended																		Year ended
			December 31, 2025						September 30, 2025						December 31, 2024						December 31, 2025						December 31, 2024
Tuition payment plan services			$	32,189					32,971						31,149						141,246						135,851
Payment processing			44,782						59,484						41,117						193,317						179,043
Education technology services			34,982						36,323						35,759						171,481						169,065
Other			361						543						310						1,106						3,003
Education technology services and payments revenue			$	112,314					129,321						108,335						507,150						486,962

14

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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																		Year ended
			December 31, 2025						September 30, 2025						December 31, 2024						December 31, 2025						December 31, 2024
Investment activity, net			$	4,855					42,317						4,989						61,072						12,438
ALLO preferred return			148						—						6,133						14,548						17,486
Solar consulting fee income			10,250						1,775						1,940						13,127						6,134
Borrower late fee income			6,617						1,817						1,369						11,664						8,828
Administration/sponsor fee income			1,422						2,267						1,375						6,400						5,823
Investment advisory services (WRCM)			1,378						2,010						1,508						6,366						5,934
Loss from ALLO voting membership interest			—						—						—						—						(10,693)
(Loss) gain from solar investments, net (a)			(17,100)						(10,884)						4,559						(29,029)						(6,477)
Gain (loss) on debt repurchases			3,016						(8,304)						56						(4,849)						54
(Loss) gain on sale of loans, net			(158)						(2,472)						42						(1,720)						(1,643)
Other			6,321						4,732						5,865						20,008						22,075
Other, net			$	16,749					33,258						27,836						97,587						59,959

(a)    The Company accounts for its solar tax equity interests using the Hypothetical Liquidation at Book Value (HLBV) method of accounting. For the majority of these partnerships, the HLBV method results in accelerated losses during the early years of the investment, followed by gains recognized at the conclusion of the contractual agreement (generally 5 years). The following table presents (i) HLBV losses recognized by the Company and gains recognized upon the sale of partnership interests, including amounts attributable to third-party noncontrolling interest partners (syndication partners), which are included in “other, net” in "other income (expense)" on the consolidated statements of income, (ii) solar net losses and gains attributed to noncontrolling interest partners included in “net loss attributable to noncontrolling interests” on the consolidated statements of income, and (iii) the recognized pre-tax net gain (loss) attributable to the Company:

			Three months ended																		Year ended
			December 31, 2025						September 30, 2025						December 31, 2024						December 31, 2025						December 31, 2024
Losses from HLBV accounting (gross)			$	(29,799)					(10,884)						(6,530)						(49,762)						(21,774)
Gains from sales (gross)			12,699						—						11,089						20,733						15,297
(Losses) gains from solar investments, net			(17,100)						(10,884)						4,559						(29,029)						(6,477)
Less: (losses) gains attributable to noncontrolling members, net			(18,066)						(5,659)						970						(27,930)						(4,599)
Net gain (loss) attributable to the Company			$	966					(5,225)						3,589						(1,099)						(1,878)

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Impairment Expense

The following table presents the impairment charges by asset and reportable operating segment:

															Nelnet Financial Services
			Loan Servicing and Systems						Education Technology Services and Payments						Asset Generation and Management						Nelnet Bank						NFS Other Operating Segments						Corporate and Other Activities						Total
			Three months ended December 31, 2025
Property and equipment - solar facilities			$	—					—						—						—						—						9,865						9,865
Investments - real estate and venture capital			—						—						—						—						3,920						3,435						7,355
			$	—					—						—						—						3,920						13,300						17,220
			Three months ended September 30, 2025
Investments - solar tax equity			$	—					—						—						—						—						5,761						5,761
Leases, buildings, and associated improvements			—						—						—						—						—						94						94
Property and equipment - internally developed software									1,145																														1,145
			$	—					1,145						—						—						—						5,855						7,000
			Three months ended December 31, 2024
Leases, buildings, and associated improvements			736						—						—						—						—						—						736
Investments - venture capital			—						—						—						—						—						400						400
			$	736					—						—						—						—						400						1,136
			Year ended December 31, 2025
Property and equipment - solar facilities			$	—					—						—						—						—						11,767						11,767
Investments - real estate and venture capital			—						—						—						—						4,001						3,575						7,576
Investments - solar tax equity			—						—						—						—						—						5,761						5,761
Leases, buildings, and associated improvements			—						—						—						—						—						3,363						3,363
Property and equipment - internally developed software			—						1,145						—						—						—						—						1,145
			$	—					1,145						—						—						4,001						24,466						29,612
			Year ended December 31, 2024
Property and equipment - solar facilities			$	—					—						—						—						—						1,170						1,170
Leases, buildings, and associated improvements			736						—						—						—						—						—						736
Other assets - solar inventory			—						—						—						—						—						695						695
Investments - venture capital			—						—						—						—						—						537						537
			$	736					—						—						—						—						2,402						3,138

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Loans and Accrued Interest Receivable and Allowance for Loan Losses

Loans and accrued interest receivable and allowance for loan losses consisted of the following:

			As of						As of						As of
			December 31, 2025						September 30, 2025						December 31, 2024
Non-Nelnet Bank:
Federally insured loans:
Stafford and other			$	1,772,172					1,889,476						2,108,960
Consolidation			5,665,071						5,970,781						6,279,604
Total			7,437,243						7,860,257						8,388,564
Private education loans			139,209						147,737						221,744
Consumer loans and other financing receivables (a)			1,122,717						840,739						345,560
Non-Nelnet Bank loans			8,699,169						8,848,733						8,955,868
Nelnet Bank:
Federally insured loans:
Stafford and other			23,960						24,745						—
Consolidation			148,360						154,203						—
Total			172,320						178,948						—
Private education loans			518,634						529,396						482,445
Consumer and other loans			266,608						266,539						162,152
Nelnet Bank loans			957,562						974,883						644,597
Accrued interest receivable			528,936						558,912						549,283
Loan discount and deferred lender fees, net of unamortized loan premiums and deferred origination costs			(46,894)						(47,735)						(42,114)
Allowance for loan losses:
Non-Nelnet Bank:
Federally insured loans			(42,080)						(43,535)						(49,091)
Private education loans			(6,894)						(7,103)						(11,130)
Consumer loans and other financing receivables			(57,360)						(33,147)						(38,468)
Non-Nelnet Bank allowance for loan losses			(106,334)						(83,785)						(98,689)
Nelnet Bank:
Federally insured loans			(676)						(707)						—
Private education loans			(12,932)						(11,732)						(10,086)
Consumer and other loans			(12,136)						(11,308)						(6,115)
Nelnet Bank allowance for loan losses			(25,744)						(23,747)						(16,201)
			$	10,006,695					10,227,261						9,992,744

(a)Included in "consumer loans and other financing receivables" in the above table are Pay Later receivables that the Company began to purchase in the third quarter of 2025. As of September 30, 2025 and December 31, 2025, the balance of Pay Later receivables was $548.3 million and $744.2 million, respectively.

The Company has partial ownership in certain consumer, private education, and federally insured student loan securitizations that are accounted for as held-to-maturity beneficial interest investments and included in "other investments and notes receivable, net" in the Company's consolidated financial statements. As of the latest remittance reports filed by the various trusts prior to or as of December 31, 2025, the Company’s ownership correlates to approximately $1.83 billion of loans included in these securitizations. The loans held in these securitizations are not included in the above table. Investment interest income earned by the Company from the beneficial interest in loan securitizations is included in "investment interest" on the Company's consolidated statements of income and is not a component of the Company's loan interest income.

17

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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						As of
			December 31, 2025						September 30, 2025						December 31, 2024
Non-Nelnet Bank:
Federally insured loans (a)			0.57		%				0.55		%				0.59		%
Private education loans			4.95		%				4.81		%				5.02		%
Consumer loans and other financing receivables (b)			5.11		%				3.94		%				11.13		%
Nelnet Bank:
Federally insured loans (a)			0.39		%				0.40		%				—
Private education loans			2.49		%				2.22		%				2.09		%
Consumer and other loans			4.55		%				4.24		%				3.77		%

(a)The allowance for loan losses as a percent of the risk sharing component of federally insured student loans not covered by the federal guaranty for Non-Nelnet Bank was 19.3%, 19.4%, and 20.6% as of December 31, 2025, September 30, 2025 and December 31, 2024, respectively, and for Nelnet Bank was 17.3% and 17.4% as of December 31, 2025 and September 30, 2025, respectively.

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

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Loan Activity - Non-Nelnet Bank

The following table sets forth the activity of AGM's (Non-Nelnet Bank) loan portfolios:

			FFELP						Private						Consumer loans and other financing receivables						Total
			Three months ended December 31, 2025
Balance as of September 30, 2025			$	7,860,257					147,737						840,739						8,848,733
Loan acquisitions (a)			480,092						—						3,355,189						3,835,281
Repayments, claims, capitalized interest, participations, and other, net			(234,488)						(7,820)						(3,072,926)						(3,315,234)
Loans lost to external parties			(9,689)						(708)						—						(10,397)
Loans sold			(658,929)						—						(285)						(659,214)
Balance as of December 31, 2025			$	7,437,243					139,209						1,122,717						8,699,169
			Three months ended September 30, 2025
Balance as of June 30, 2025			$	8,367,085					156,614						411,470						8,935,169
Loan acquisitions (a)			70,301						—						1,516,370						1,586,671
Repayments, claims, capitalized interest, participations, and other, net			(214,179)						(8,084)						(883,850)						(1,106,113)
Loans lost to external parties			(55,470)						(793)						—						(56,263)
Loans sold			(229,983)						—						(203,251)						(433,234)
Loans contributed to Nelnet Bank			(77,497)						—						—						(77,497)
Balance as of September 30, 2025			$	7,860,257					147,737						840,739						8,848,733
			Three months ended December 31, 2024
Balance as of September 30, 2024			$	9,070,742					234,295						244,552						9,549,589
Loan acquisitions			2,000						—						194,333						196,333
Repayments, claims, capitalized interest, participations, and other, net			(248,071)						(11,005)						(80,677)						(339,753)
Loans lost to external parties			(57,208)						(1,546)						—						(58,754)
Loans sold			(378,899)						—						(12,648)						(391,547)
Balance as of December 31, 2024			$	8,388,564					221,744						345,560						8,955,868
			Year ended December 31, 2025
Balance as of December 31, 2024			$	8,388,564					221,744						345,560						8,955,868
Loan acquisitions (a)			1,253,819						—						5,143,849						6,397,668
Repayments, claims, capitalized interest, participations, and other, net			(916,038)						(37,359)						(4,163,008)						(5,116,405)
Loans lost to external parties			(190,694)						(3,003)						—						(193,697)
Loans sold			(1,020,911)						—						(203,684)						(1,224,595)
Loans contributed to Nelnet Bank			(77,497)						(42,173)						—						(119,670)
Balance as of December 31, 2025			$	7,437,243					139,209						1,122,717						8,699,169
			Year ended December 31, 2024
Balance as of December 31, 2023			$	11,686,207					277,320						85,935						12,049,462
Loan acquisitions			106,916						—						599,543						706,459
Repayments, claims, capitalized interest, participations, and other, net			(1,209,242)						(51,262)						(191,931)						(1,452,435)
Loans lost to external parties			(1,616,724)						(4,314)						—						(1,621,038)
Loans sold			(578,593)						—						(147,987)						(726,580)
Balance as of December 31, 2024			$	8,388,564					221,744						345,560						8,955,868

(a)The Company began to acquire Pay Later receivables during 2025. Consumer loan acquisitions excluding Pay Later receivables was $187.5 million and $169.9 million during the three months ended December 31, 2025 and September 30, 2025, respectively, and $629.7 million during the year ended December 31, 2025.

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Loan Spread Analysis - Non-Nelnet Bank

The following table analyzes the loan spread on AGM’s (Non-Nelnet Bank) portfolio of loans, which represents the spread between the yield earned on loan assets and the costs of the liabilities and derivative instruments used to fund the assets.

			Three months ended																		Year ended
			December 31, 2025						September 30, 2025						December 31, 2024						December 31, 2025						December 31, 2024
Variable loan yield, gross			6.69		%				6.89		%				7.85		%				7.20		%				8.03		%
Consolidation rebate fees			(0.78)						(0.83)						(0.80)						(0.80)						(0.80)
Discount accretion, net of premium and deferred origination costs amortization			1.40						0.50						(0.08)						0.40						0.02
Variable loan yield, net			7.31						6.56						6.97						6.80						7.25
Loan cost of funds - interest expense (a)			(5.22)						(5.34)						(5.86)						(5.39)						(6.34)
Loan cost of funds - basis swap derivative settlements (b)			0.01						0.01						0.01						0.01						0.01
Variable loan spread			2.10						1.23						1.12						1.42						0.92
Fixed-rate floor income, gross			0.06						0.05						0.03						0.04						0.01
Fixed-rate floor income - derivative settlements (b)			0.01						0.02						0.03						0.02						0.04
Fixed-rate floor income, net of settlements on derivatives			0.07						0.07						0.06						0.06						0.05
Core loan spread			2.17		%				1.30		%				1.18		%				1.48		%				0.97		%
Average balance of AGM's loans			$	9,005,162					8,774,923						9,403,661						9,134,995						10,310,430
Average balance of AGM's debt outstanding			7,923,923						7,775,269						8,654,618						8,145,206						9,871,828

(a)The Company recognized $0.7 million and $5.6 million in non-cash interest expense during the fourth quarter of 2024 and third quarter of 2024, respectively, as a result of writing off the remaining unamortized debt discount related to the redemption of certain asset-backed debt securities prior to their maturity. The impact of this non-cash expense was excluded in the table above.

(b)Derivative settlements represent the cash paid or received during the respective period to settle with derivative instrument counterparties the economic effect of the Company's derivative instruments based on their contractual terms. Derivative accounting requires that net settlements with respect to derivatives that do not qualify for "hedge treatment" under GAAP be recorded in a separate income statement line item below net interest income. The Company maintains an overall risk management strategy that incorporates the use of derivative instruments to reduce the economic effect of interest rate volatility. As such, management believes derivative settlements for each applicable period should be evaluated with the Company’s net interest income (loan spread) as presented in this table. The Company reports this non-GAAP information because the Company believes that it provides additional information regarding operational and performance indicators that are closely assessed by management. There is no comprehensive, authoritative guidance for the presentation of such non-GAAP information, which is only meant to supplement GAAP results by providing additional information that management utilizes to assess performance. 

A reconciliation of core loan spread, which includes the impact of derivative settlements on loan spread, to loan spread without derivative settlements follows:

			Three months ended																		Year ended
			December 31, 2025						September 30, 2025						December 31, 2024						December 31, 2025						December 31, 2024
Core loan spread			2.17		%				1.30		%				1.18		%				1.48		%				0.97		%
Derivative settlements (basis swaps)			(0.01)						(0.01)						(0.01)						(0.01)						(0.01)
Derivative settlements (fixed-rate floor income)			(0.01)						(0.02)						(0.03)						(0.02)						(0.04)
Loan spread			2.15		%				1.27		%				1.14		%				1.45		%				0.92		%

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Loan Activity - Nelnet Bank

The following table sets forth the activity of Nelnet Bank's loan portfolios:

			FFELP						Private						Consumer and other						Total
			Three months ended December 31, 2025
Balance as of September 30, 2025			$	178,948					529,396						266,539						974,883
Loan acquisitions and originations			—						12,357						12,820						25,177
Repayments			(6,628)						(23,119)						(12,751)						(42,498)
Balance as of December 31, 2025			$	172,320					518,634						266,608						957,562
			Three months ended September 30, 2025
Balance as of June 30, 2025			$	106,555					516,663						204,423						827,641
Loan acquisitions and originations			—						36,175						74,654						110,829
Repayments			(5,104)						(23,442)						(12,538)						(41,084)
Loans contributed from AGM			77,497						—						—						77,497
Balance as of September 30, 2025			$	178,948					529,396						266,539						974,883
			Three months ended December 31, 2024
Balance as of September 30, 2024			$	—					352,654						207,218						559,872
Loan acquisitions and originations			—						151,966						34,268						186,234
Repayments			—						(22,175)						(14,246)						(36,421)
Loans sold to AGM			—						—						(65,088)						(65,088)
Balance as of December 31, 2024			$	—					482,445						162,152						644,597
			Year ended December 31, 2025
Balance as of December 31, 2024			$	—					482,445						162,152						644,597
Loan acquisitions and originations			111,040						85,929						142,207						339,176
Repayments			(16,217)						(91,913)						(37,751)						(145,881)
Loans contributed from AGM			77,497						42,173						—						119,670
Balance as of December 31, 2025			$	172,320					518,634						266,608						957,562
			Year ended December 31, 2024
Balance as of December 31, 2023			$	—					360,520						72,352						432,872
Loan acquisitions and originations			—						180,919						210,527						391,446
Repayments			—						(58,994)						(55,639)						(114,633)
Loans sold to AGM			—						—						(65,088)						(65,088)
Balance as of December 31, 2024			$	—					482,445						162,152						644,597

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Average Balance Sheet - Nelnet Bank

The following table reflects the rates earned on interest-earning assets and paid on interest-bearing liabilities:

			Three months ended (a)																																				Year ended December 31, (a)
			December 31, 2025												September 30, 2025												December 31, 2024												2025												2024
			Balance						Rate						Balance						Rate						Balance						Rate						Balance						Rate						Balance						Rate
Average assets
Federally insured student loans			$	175,177					5.92		%				$	155,873					6.24		%				$	—					—		%				$	116,745					6.11		%				$	—					—		%
Private education loans			524,149						6.42						517,782						6.45						482,380						6.41						512,860						6.34						390,195						4.98
Consumer and other loans			267,451						9.83						227,211						10.25						194,105						11.17						210,106						10.27						160,648						11.79
Cash and investments			1,045,948						6.14						957,479						6.15						713,497						7.08						930,816						6.18						642,102						7.16
Total interest-earning assets			2,012,725						6.69		%				1,858,345						6.74		%				1,389,982						7.42		%				1,770,527						6.70		%				1,192,945						7.07		%
Non-interest-earning assets			26,783												19,203												19,592												18,569												16,653
Total assets			$	2,039,508											$	1,877,548											$	1,409,574											$	1,789,096											$	1,209,598
Average liabilities and equity
Brokered deposits			$	298,501					2.28		%				$	269,913					2.12		%				$	248,497					1.95		%				$	271,826					2.12		%				$	234,423					1.80		%
Intercompany deposits			185,990						3.90						168,768						4.02						107,866						3.92						146,886						3.90						145,868						4.64
Retail and other deposits			1,277,257						3.94						1,173,846						4.24						854,323						4.59						1,122,848						4.15						666,392						4.85
Federal funds purchased and other borrowed money			3						4.06						25,038						4.92						24,532						10.02						12,182						5.01						6,167						10.02
Total interest-bearing liabilities			1,761,751						3.66		%				1,637,565						3.88		%				1,235,218						4.11		%				1,553,742						3.78		%				1,052,850						4.17		%
Non-interest-bearing liabilities			14,225												12,999												8,347												11,486												7,928
Equity			263,532												226,984												166,009												223,868												148,820
Total liabilities and equity			$	2,039,508											$	1,877,548											$	1,409,574											$	1,789,096											$	1,209,598
Net interest margin									3.49		%										3.32		%										3.76		%										3.39		%										3.39		%

(a) Calculated using average daily balances.

22