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Dec 31, 2022

Nelnet Q4 2022 Earnings Report

Reported GAAP net income of $30.8 million for the fourth quarter of 2022.

Key Takeaways

Nelnet reported GAAP net income of $30.8 million, or $0.83 per share, for Q4 2022, compared to $132.7 million, or $3.46 per share, for the same period a year ago. Net income, excluding derivative market value adjustments, was $36.4 million, or $0.98 per share, compared to $95.9 million, or $2.50 per share, for the same period in 2021.

Core businesses, including servicing, payments and education technology, and financial services performed well in 2022.

Expect quarterly earnings to be choppy as FFEL Program loans run off and other investments increase.

A tremendous foundation was laid for long-term value creation in 2022.

As of December 31, 2022, the company was servicing $587.5 billion in government-owned, FFEL Program, private education, and consumer loans for 17.6 million borrowers.

Total Revenue
$337M
Previous year: $394M
-14.6%
EPS
$0.98
Previous year: $2.5
-60.8%
Total Loans Serviced
$588B
Previous year: $529B
+11.1%
Gross Profit
$292M
Previous year: $324M
-10.0%
Cash and Equivalents
$2.23B
Previous year: $1.71B
+30.1%
Free Cash Flow
$12.2M
Previous year: $139M
-91.2%
Total Assets
$19.4B
Previous year: $21.7B
-10.6%

Nelnet

Nelnet

Nelnet Revenue by Segment

Forward Guidance

This press release contains forward-looking statements within the meaning of federal securities laws. These statements are based on management's current expectations as of the date of this release and 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.

Revenue & Expenses

Visualization of income flow from segment revenue to net income