1. Nelnet reports Q4 2024 GAAP net income of $63.2 million. 2. Record performance in Nelnet Business Services achieved in 2024. 3. Loan loss provisions increased significantly, indicating potential risk. 4. Net interest income rose due to loan portfolio adjustments. 5. Total GAAP net income for 2024 reached $184 million.
The strong financial results and transition into new servicing contracts reflect positive momentum. Historically, strong earnings often lead to price appreciation.
Strong earnings reports and strategic business decisions are significant for stock evaluations. Investors typically react to improved profit margins and growth prospects.
Immediate positive financial results are likely to influence stock price soon. Market reactions to quarterly earnings are usually swift; longer-term impacts depend on sustained performance.
LINCOLN, Neb., Feb. 27, 2025 /PRNewswire/ -- Nelnet (NYSE: NNI) today reported GAAP net income of $63.2 million, or $1.73 per share, for the fourth quarter of 2024, compared with a GAAP net loss of $7.9 million, or $0.21 per share, for the same period a year ago.
Net income, excluding derivative market value adjustments1, was $52.7 million, or $1.44 per share, for the fourth quarter of 2024, compared with a net loss of $0.7 million, or $0.02 per share, for the same period in 2023.
"We are pleased with the results in the fourth quarter of 2024 and optimistic about the opportunities ahead in 2025," said Jeff Noordhoek, chief executive officer of Nelnet. "This past year was a record-breaking one for Nelnet Business Services, one of our three core businesses..."
Nelnet has four reportable operating segments, earning interest income on loans in its Asset Generation and Management (AGM) and Nelnet Bank segments, both part of the company's Nelnet Financial Services (NFS) division, and fee-based revenue in its Loan Servicing and Systems (referred to as Nelnet Diversified Services (NDS)) and Education Technology Services and Payments (referred to as Nelnet Business Services (NBS)) segments. Other business activities and operating segments that are not reportable and not part of the NFS division are combined and included in Corporate Activities.
The AGM operating segment reported loan and investment net interest income of $48.3 million during the fourth quarter of 2024, compared with $35.6 million for the same period a year ago. The increase in 2024 was due an increase in loan spread2, offset by the anticipated runoff of the legacy Federal Family Education Loan Program loan portfolio...
As of December 31, 2024, Nelnet Bank had a $644.6 million and $757.0 million loan and investment portfolio, respectively, and total deposits, including intercompany deposits, of $1.25 billion. Nelnet Bank reported loan and investment net interest income of $12.9 million during the fourth quarter of 2024...
Revenue from the Loan Servicing and Systems segment was $138.0 million for the fourth quarter of 2024, compared with $128.8 million for the same period in 2023...
For the fourth quarter of 2024, revenue from the Education Technology Services and Payments operating segment was $108.3 million, an increase from $106.1 million for the same period in 2023...
Included in Corporate Activities are the operating results of the company's solar construction business. During the fourth quarter of 2024, the company reported a loss of $17.0 million ($13.0 million after tax) in its solar construction business...
GAAP net income for the year ended December 31, 2024 was $184.0 million, or $5.02 per share, compared with GAAP net income of $89.8 million, or $2.40 per share, for 2023. Net income in 2024, excluding derivative market value adjustments1, was $176.4 million, or $4.81 per share, compared with $121.6 million, or $3.25 per share, for 2023.
This press release contains forward-looking statements within the meaning of federal securities laws. The words "anticipate," "assume," "believe," "continue," "could," "ensure," "estimate," "expect," "forecast," "future," "intend," "may," "plan," "potential," "predict," "scheduled," "should," "will," "would," and similar expressions, as well as statements in future tense, are intended to identify forward-looking statements...
The company prepares its financial statements and presents its financial results in accordance with U.S. GAAP. However, it also provides additional non-GAAP financial information...