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Mar 31, 2023
Nelnet Q1 2023 Earnings Report
Reported GAAP net income and announced a new federal student loan servicing contract.
Key Takeaways
Nelnet reported a GAAP net income of $26.5 million, or $0.71 per share, for the first quarter of 2023. The company was also awarded a new, long-term federal student loan servicing contract.
Net income, excluding derivative market value adjustments, was $54.9 million, or $1.47 per share, for Q1 2023.
Asset Generation and Management (AGM) segment reported net interest income of $45.5 million.
Loan Servicing and Systems segment revenue was $139.2 million.
Education Technology, Services, and Payment Processing segment revenue was $133.6 million.
Nelnet
Nelnet
Nelnet Revenue by Segment
Revenue by Segment
Asset Generation & Management Revenue
CapyFin.comLoan Servicing & Systems Revenue
CapyFin.comEducation Technology Services & Payments Revenue
CapyFin.com Forward Guidance
Nelnet believes it has the financial strength and liquidity to continue investing in its core businesses and asset strategy. A new, long-term federal student loan servicing contract was awarded after the quarter.
Positive Outlook
- Financial strength to invest in core businesses
- Ability to benefit from market turbulence
- Ability to navigate a variety of economic conditions
- New, long-term federal student loan servicing contract awarded
- Dedication to helping federal student loan borrowers
Challenges Ahead
- Risks related to maintaining and increasing student loans serviced under existing and future contracts.
- Risks related to compliance with agreements for servicing loans.
- Loan portfolio risks such as interest rate basis and repricing risk.
- Risks from changes in the terms of education loans and in the educational credit and services markets.
- Risks related to a breach of or failure in the company's operational or information systems.
Revenue & Expenses
Visualization of income flow from segment revenue to net income