Segment Reporting

12 Months Ended

Dec. 31, 2025

The Company's reportable operating segments include:

• Loan Servicing and Systems

• Education Technology Services and Payments

• Asset Generation and Management, part of the NFS division

• Nelnet Bank, part of the NFS division

The Company earns fee-based revenue through its Loan Servicing and Systems and Education Technology Services and Payments operating segments; and earns net interest income on its loan portfolio in its Asset Generation and Management and Nelnet Bank operating segments.

The Company’s operating segments are defined by the products and services they offer and the types of customers they serve, and they reflect the manner in which financial information is currently evaluated by management. See note 1 for a description of each operating segment, including the primary products and services offered.

The management reporting process measures the performance of the Company’s operating segments based on the management structure of the Company, as well as the methodology used by management to evaluate performance and allocate resources. The Company’s executive officers (the "chief operating decision maker") evaluate the performance of the Company’s operating segments based on their financial results prepared in conformity with U.S. GAAP.

The Nelnet Financial Services division includes the reportable segments of AGM and Nelnet Bank and the following other non-reportable operating segments. The operating results of the below items are included as a reconciling item from the operating results of the Company’s reportable segments to the consolidated financial statements.

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

•WRCM, the Company's 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)

The accounting policies of the Company’s operating segments are the same as those described in the summary of significant accounting policies. Intersegment revenues are charged by a segment that provides a product or service to another segment. Intersegment revenues and expenses are included within each segment consistent with the income statement presentation provided to management. Income taxes are allocated based on 24% of income before taxes for each individual operating segment, except for Nelnet Bank, which reflects Nelnet Bank’s actual tax expense/benefit as allocated and reflected in its Call Report filed with the Federal Deposit Insurance Corporation. The difference between the consolidated income tax expense and the sum of taxes calculated for each operating segment is included in income taxes in Corporate and Other Activities (“Corporate”).

Other business activities and operating segments that are not reportable and not part of the NFS division are combined and included in Corporate, as described in note 1.

Segment Results

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


	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 (a)	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

Total assets as of December 31, 2025	$	153,851	541,309	9,860,026	2,069,700	12,624,886	1,144,970	809,762	(515,835)	14,063,783

(a) Other expenses for each reportable segment includes:

LSS - communications, professional fees, software, and computer services and subscriptions.

ETSP - advertising, professional fees, analysis fees, computer services and subscriptions, and travel.

AGM - trustee and professional fees.

Nelnet Bank - marketing, professional fees, collection costs, software, computer services and subscriptions, FDIC insurance, and management fee expense.


	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 (a)	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

Total assets as of December 31, 2024	$	193,390	600,790	10,037,688	1,449,034	12,280,902	903,837	842,692	(249,678)	13,777,753

(a) Other expenses for each reportable segment includes:

LSS - occupancy, communications, professional fees, collection costs, analysis fees, software, computer services and subscriptions, and travel.

ETSP - advertising, professional fees, analysis fees, computer services and subscriptions, travel, and provision for losses.

AGM - trustee and professional fees.

Nelnet Bank - marketing, consulting and professional fees, software, and FDIC insurance.


	Year ended December 31, 2023
	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	$	—	—	910,139	21,806	931,945	—	—	—	931,945



Investment interest	4,845		26,962	67,019	36,053	134,879	74,857	12,141	(44,021)	177,855
Total interest income	4,845		26,962	977,158	57,859	1,066,824	74,857	12,141	(44,021)	1,109,800



Interest expense	—		—	823,084	34,704	857,788	29,747	1,578	(44,021)	845,091
Net interest income	4,845		26,962	154,074	23,155	209,036	45,110	10,563	—	264,709
Less provision (negative provision) for loan losses	—		—	(360)	8,475	8,115	—	—	—	8,115
Less provision for beneficial interests	—		—	—	—	—	—	—	—	—
Net interest income after provision	4,845		26,962	154,434	14,680	200,921	45,110	10,563	—	256,594
Other income (expense):
LSS revenue	517,954		—	—	—	517,954	—	—	—	517,954
ETSP revenue	—		463,311	—	—	463,311	—	—	—	463,311
Intersegment revenue	28,911		253	—	—	29,164	—	—	(29,164)	—
Reinsurance premiums earned	—		—	—	—	—	20,067	—	—	20,067
Solar construction revenue	—		—	—	—	—	—	31,669	—	31,669
Other, net	2,587		—	(6,393)	1,095	(2,711)	6,581	(95,859)	—	(91,989)

Gain on partial redemption of ALLO investment	—		—	—	—	—	—	—	—	—
Derivative settlements, net	—		—	24,588	484	25,072	—	—	—	25,072
Derivative market value adjustments, net	—		—	(40,250)	(1,523)	(41,773)	—	—	—	(41,773)
Total other income (expense), net	549,452		463,564	(22,055)	56	991,017	26,648	(64,190)	(29,164)	924,311
Cost of services and expenses:



Total cost of services	—		171,183	—	—	171,183	—	48,576	—	219,759
Salaries and benefits	317,885		155,296	4,191	9,074	486,446	1,130	105,531	(1,571)	591,537
Depreciation and amortization	19,257		11,319	—	574	31,150	—	47,969	—	79,118
Reinsurance losses and underwriting expenses	—		—	—	—	—	16,781	—	—	16,781
Postage expense	21,194					21,194			(21,194)	—
Servicing fees				37,389	509	37,898			(37,898)	—
Impairment expense	296		4,310	—	—	4,606	—	27,319	—	31,925
Other expenses (a)	39,323		34,133	4,988	4,994	83,438	2,391	56,307	30,935	173,070
Intersegment expenses, net	78,628		23,184	5,175	(47)	106,940	584	(108,088)	564	—
Total operating expenses	476,583		228,242	51,743	15,104	771,672	20,886	129,038	(29,164)	892,431

Income (loss) before income taxes	77,714		91,101	80,636	(368)	249,083	50,872	(231,241)	—	68,715
Income tax (expense) benefit	(18,651)		(21,891)	(19,353)	153	(59,742)	(12,073)	52,429	—	(19,385)
Net income (loss)	59,063		69,210	61,283	(215)	189,341	38,799	(178,812)	—	49,330
Net (income) loss attributable to noncontrolling interests	—		109	—	—	109	(568)	40,955	—	40,496
Net income (loss) attributable to Nelnet, Inc.	$	59,063	69,319	61,283	(215)	189,450	38,231	(137,857)	—	89,826

Total assets as of December 31, 2023	$	294,376	490,296	13,488,420	991,252	15,264,344	1,115,292	873,843	(541,095)	16,712,384

(a) Other expenses for each reportable segment includes:

LSS - occupancy, communications, professional fees, collection costs, analysis fees, software, computer services and subscriptions, and travel.

ETSP - advertising, professional fees, analysis fees, software, computer services and subscriptions, travel, and provision for losses.

AGM - trustee and professional fees.

Nelnet Bank - marketing, consulting and professional fees, software, and FDIC insurance.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

NELNET INC 10-K