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Sep 30, 2021

Nelnet Q3 2021 Earnings Report

Reported GAAP net income of $53.1 million, or $1.38 per share.

Key Takeaways

Nelnet reported a GAAP net income of $53.1 million, or $1.38 per share, for the third quarter of 2021. The core businesses delivered solid operating results.

Nelnet's core businesses delivered solid operating results in Q3 2021.

The company continues to focus on providing superior customer experiences.

Nelnet is pursuing investment opportunities for diversification and growth.

The company is focused on recruiting and retaining talented team members.

Total Revenue
$287M
Previous year: $306M
-6.3%
EPS
$1.23
Previous year: $1.86
-33.9%
Total Loans Serviced
$514B
Previous year: $487B
+5.4%
Gross Profit
$144M
Previous year: $150M
-3.6%
Cash and Equivalents
$192M
Previous year: $96.3M
+99.3%
Free Cash Flow
$188M
Previous year: $245M
-23.1%
Total Assets
$22.4B
Previous year: $22.2B
+0.8%

Nelnet

Nelnet

Nelnet Revenue by Segment

Forward Guidance

The company anticipates recognizing income in the fourth quarter of 2021 of $10 million to $15 million (pre-tax) to adjust its carrying value to reflect the October 15, 2021 transaction value, subject to final valuations of the equity classes. The company will record a derecognition of all or a portion of its negative investment balance (and record positive income up to $36 million (pre-tax)).

Positive Outlook

  • Anticipates recognizing income in Q4 2021
  • Equity raise completed on October 15, 2021
  • The company will record a derecognition of all or a portion of its negative investment balance
  • The company will record positive income up to $36 million (pre-tax)
  • Joint venture completed a final securitization

Revenue & Expenses

Visualization of income flow from segment revenue to net income