Nelnet Inc (NNI)

Price$127.85Cached quoteAs of 2026-09-04 16:23 UTC

AI: Fair-priced

Price checkThe shares look fairly priced because normalized earnings and book value leave little obvious margin of safety.

At roughly 15 times earnings from the last four quarters and about 16 times 2025 underlying earnings of $8.01 a share, valuation is not demanding but not deeply discounted. June shareholder equity was $3.77 billion, or roughly $105 per share using the late-July share count, so the market values Nelnet at about 1.2 times accounting equity. That fits a solid, but not exceptional, profit rate on shareholder capital. The current valuation therefore seems to require roughly $8–$9 of recurring annual earnings plus gradual equity growth.

Big pictureCash generation has been resilient, but reported earnings swing because investments and loan portfolios can create large one-off gains.

Cash from operations has stayed positive across the supplied six-year history, ranging from about $349 million to $683 million; 2025 produced $423 million while routine capital spending was only $26 million. Reported 2025 net income was $428 million, but management calculated $291 million, or $8.01 a share, after removing several unusual gains and losses. In the latest quarter, profit was $66.7 million versus $181.5 million a year earlier, yet that prior-year quarter included a $133 million after-tax ALLO gain; without it, prior-year profit was $48.5 million.

Business strengthNelnet has diversified beyond legacy student loans, while a substantial equity base offsets its lender-style debt load.

June assets were $14.28 billion, including $9.80 billion of loans and $2.67 billion of investments, against $3.77 billion of shareholder equity. The $7.04 billion of bonds and notes looks large, but Nelnet is a lender and much of that funding sits against financial assets; bank deposits are also normal lender funding. Concentration remains meaningful because the Education Department supplied 21% of 2025 revenue. Capital allocation has limited dilution: first-half 2026 share repurchases retired 316,600 shares for $40.6 million, while total shares fell about 1.6% from April 2025 to July 2026.

What could change the storyUpside needs new lending growth to outrun legacy runoff; downside rises if credit losses or government servicing economics worsen.

The bull case is visible in growth businesses: the consumer loan portfolio reached $1.21 billion from $411.5 million a year earlier, Asset Generation and Management interest income after funding costs rose to $63.2 million from $49.9 million, and Nelnet Bank earned $10.5 million after tax versus a small loss. The bear case is that legacy federally backed loans keep shrinking, Education Department servicing pays less per borrower, and consumer credit proves worse than expected. Around $8–$9 of recurring annual earnings supports today’s valuation; sustained sub-$7 earnings would weaken it, while $10-plus would create clear upside.

AI: News

Second-quarter earnings resetAugust results looked weak against a one-time gain, while underlying profit actually improved from the comparable quarter.

On August 6, 2026, Nelnet reported $66.7 million of quarterly net income versus $181.5 million a year earlier. The comparison was distorted because the prior year included a $133 million after-tax gain from a partial cash-out of its ALLO investment; excluding that gain, prior-year profit was $48.5 million. Lending and bank results improved, but servicing and payments margins weakened. The shares fell roughly 3% from the pre-report close through August 7, which is consistent with a cautious earnings reaction, although price timing alone cannot prove causation.

First-quarter selloffMay results coincided with a sharp selloff despite improving lending income and bank profit.

On May 7, 2026, first-quarter net income was $71.1 million, or $1.97 a share, down from $82.6 million, or $2.26, a year earlier. Asset Generation and Management interest income after funding costs increased to $67.5 million from $52.9 million, and Nelnet Bank profit rose to $7.1 million from $1.5 million, but total earnings still declined. The next trading session closed about 13% lower on unusually heavy volume. The timing strongly suggests the report influenced the move, but it does not establish causation by itself.

Canada servicing acquisitionThe February Canada acquisition broadened fee-based servicing beyond the U.S. Education Department.

Nelnet completed the Canadian student-loan servicing acquisition on February 2, 2026. Initial cash consideration was about $95 million and was later revised to $107.6 million after closing adjustments. The business manages 2.7 million borrowers and adds government and financial-institution servicing outside the United States. By the second quarter, Nelnet said the acquisition helped lift servicing revenue, although accounting charges tied to acquired intangible assets also pressured margins. No reliable isolated share-price reaction was found, so its importance is strategic and earnings-related rather than a clearly measurable one-day market move.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2014	2013	2012	2011	2010	2009
Revenue	$1.35B	$1.17B	$968.4M	$1.56B	$1.32B	$1.40B	$1.08B	$1.08B	$784.3M	$896.8M	$931.5M	$913.0M	$729.6M	$750.7M	$828.6M	$650.3M
Gross profit	—	—	—	$1.39B	$1.22B	$1.29B	$978.6M	$998.7M	$725.7M	$845.6M	$878.2M	$848.1M	$651.2M	—	—	—
Gross margin	—	—	—	89.20%	91.80%	92.50%	90.56%	92.89%	92.52%	94.29%	94.28%	92.89%	89.26%	—	—	—
Operating expenses	$927.1M	$882.9M	$892.4M	$834.4M	$726.3M	$781.1M	$762.8M	$689.4M	$484.5M	$433.3M	$452.5M	$429.0M	$433.6M	$407.7M	$503.5M	$405.6M
Net income	$428.5M	$184.0M	$89.8M	$406.9M	$393.3M	$352.4M	$141.8M	$227.9M	$173.2M	$256.8M	$307.6M	$302.7M	$178.0M	$204.3M	$189.0M	$139.1M
Net profit margin	31.71%	15.78%	9.28%	26.10%	29.69%	25.18%	13.12%	21.20%	22.08%	28.63%	33.02%	33.15%	24.40%	27.22%	22.81%	21.39%
Basic EPSper basic share	$11.79	$5.02	$2.40	$10.82	$10.20	$9.02	$3.54	$5.57	$4.14	$6.02	$6.62	$6.50	$3.76	$4.24	$3.82	$2.79
Diluted EPSper diluted share	$11.79	$5.02	$2.40	$10.82	$10.20	$9.02	$3.54	$5.57	$4.14	$6.02	$6.62	$6.50	$3.74	$4.23	$3.81	$2.78

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

7.36%of listed shares

DIMENSIONAL FUND ADVISORS LP1.85M shares · Jun 30, 2026

View holders

Top 20 reported holders of NNI
Holder	% owned
DIMENSIONAL FUND ADVISORS LP	7.36%1.85M shares
MAGNOLIA GROUP, LLC	5.05%1.27M shares
FARMERS & MERCHANTS INVESTMENTS INC	4.69%1.18M shares
BlackRock, Inc.	4.62%1.16M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	2.76%695.62K shares
VANGUARD CAPITAL MANAGEMENT LLC	2.32%584.97K shares
AMERICAN CENTURY COMPANIES INC	1.67%420.69K shares
GEODE CAPITAL MANAGEMENT, LLC	1.55%389.6K shares
STATE STREET CORP	1.45%365.44K shares
Bragg Financial Advisors, Inc	0.99%248.49K shares
QVT Financial LP	0.92%231.41K shares
Empyrean Capital Partners, LP	0.92%231K shares
GENERAL AMERICAN INVESTORS CO INC	0.92%231K shares
NORTHERN TRUST CORP	0.75%189.61K shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	0.67%167.79K shares
JPMORGAN CHASE & CO	0.61%152.76K shares
BAR HARBOR WEALTH MANAGEMENT	0.43%108.59K shares
MORGAN STANLEY	0.38%94.41K shares
Tewes Timothy	≈0.37%94.05K shares
VANGUARD FIDUCIARY TRUST CO	0.36%91.69K shares

Percentages use 25.16M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)6$6.43M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Dec 9, 2025Form 4 · 10b5-1	Van Deun Jona MDirector	SellClass A Common Stock	400	$128.95	$51.6K	704
Sep 5, 2025Form 4 · 10b5-1	HENNING THOMAS EDWARDDirector	SellClass A Common Stock · indirect	3.1K	$128.87	$399.8K	0
Sep 5, 2025Form 4 · 10b5-1	HENNING THOMAS EDWARDDirector	SellClass A Common Stock	5.1K	$128.87	$656.5K	11.1K
Aug 25, 2025Form 4	Butterfield Shelby JOther	SellClass A Common Stock · indirect	41.9K	$119.25	$5.00M	510
Nov 15, 2024Form 4 · 10b5-1	Van Deun Jona MDirector	SellClass A Common Stock	440	$110.32	$48.5K	633

Review ownership filings at SEC.gov ↗

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Nelnet Inc (NNI)

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