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Nelnet is like Sallie Mae, but for both originating and extensively servicing student loans.

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• Student Loan Servicing: Nelnet services federal and private student loans, managing borrower accounts, payments, and various loan programs.
• Education Technology Solutions: Provides integrated payment processing, campus commerce platforms, and K-12 and higher education administrative software solutions.
• Nelnet Bank: Offers private education loans, certificates of deposit (CDs), and high-yield savings accounts.
• Communications: Operates FirsTier Fiber, a fiber optic network providing high-speed internet and related telecommunications services to businesses and homes.

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Nelnet (NNI) serves a diverse customer base. While its Allo Communications segment directly serves individuals and local businesses, the majority of Nelnet's revenue streams are derived from services provided to other organizations, placing its primary customer base in the business-to-business/institution category.

Nelnet's major customers and client types include:

• U.S. Department of Education: This government agency has historically been Nelnet's largest client through contracts for federal student loan servicing. As a government entity, it does not have a stock symbol.
• Colleges and Universities: Through its Nelnet Campus Commerce segment, Nelnet provides payment processing, billing, and tuition management solutions to over 1,300 higher education and K-12 institutions. These are educational institutions, not public companies, and therefore do not have stock symbols.
• Private Student Loan Lenders: Nelnet also services private student loan portfolios on behalf of various banks and financial institutions. Specific major lenders are typically not publicly disclosed due to proprietary agreements. Many of these lenders are private, while some may be subsidiaries of public companies.

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Jeffrey R. Noordhoek, Chief Executive Officer
Jeffrey R. Noordhoek leads Nelnet as Chief Executive Officer, a role he assumed in January 2014. He is responsible for the company's corporate strategy, financial performance, and growth, and also directly oversees the Nelnet Diversified Solutions (NDS) loan servicing division. Prior to his current role, he served as President of Nelnet, Senior Vice President of National Education Loan Network, Inc. (a Nelnet subsidiary), and Vice President of Nelnet's predecessor, Union Financial Services, Inc. Before joining Nelnet, Mr. Noordhoek spent seven years in various capacities at State Street Capital Corporation. He earned a bachelor's degree in business administration from the University of Nebraska and a Master of Business Administration from Boston University.

James D. Kruger, Chief Financial Officer
James D. Kruger has served as Nelnet's Chief Financial Officer since January 2014. In this capacity, he is responsible for corporate accounting and tax, financial reporting, investor relations, internal audit, and the company's solar construction business. Mr. Kruger joined Nelnet in 1998 as Controller, overseeing accounting activities, financial statement preparation, and SEC compliance until 2013. Earlier in his career, he worked as a Senior Manager at KPMG Peat Marwick from 1986 to 1994, before moving to NEBHELP, which was later acquired by Nelnet. Mr. Kruger is a Certified Public Accountant (CPA) in Nebraska and holds a Bachelor of Science in Business Administration from the University of Nebraska-Lincoln.

Michael S. Dunlap, Executive Chairman of The Board
Michael S. Dunlap co-founded the company that would become Nelnet with Stephen Butterfield in 1996 and currently serves as Executive Chairman of The Board. He previously held roles as Chairman and CEO (including a period as co-CEO) from the company's inception until 2013. Mr. Dunlap brings over 35 years of experience in education finance and two decades at Union Bank & Trust. He holds an undergraduate degree and a Juris Doctor from the University of Nebraska – Lincoln.

Terry J. Heimes, Chief Operating Officer
Terry J. Heimes is the Chief Operating Officer of Nelnet, a position he has held since January 2014. His previous roles at Nelnet include Chief Financial Officer and Executive Director of Corporate Finance and Legal Services from 2001 to 2013. He also served as Vice President of Finance for National Education Loan Network, Inc., a subsidiary of Nelnet. Before joining Nelnet, Mr. Heimes worked in the audit department at KPMG LLP. He graduated from the University of Nebraska—Kearney.

Timothy A. Tewes, President
Timothy A. Tewes serves as President of Nelnet and is also the CEO of Nelnet Business Services (NBS) and Vice Chair of the Board of Directors of Nelnet Bank. He was instrumental in the formation, staffing, and operational launch of Nelnet Bank. Mr. Tewes brings 16 years of experience from Wells Fargo Bank Nebraska, where he was responsible for overseeing 33 branches and assets exceeding $3 billion.

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The key risks to Nelnet's business (NNI) include regulatory and legislative changes in the student loan market, interest rate fluctuations, and risks associated with its loan portfolios, particularly the ongoing reduction of its Federal Family Education Loan Program (FFELP) assets.

1. Regulatory and Legislative Changes in the Student Loan Market: Nelnet's business is highly susceptible to changes in federal and state laws and regulations governing student loans. These changes can significantly impact the terms of student loans, the educational credit marketplace, and the company's servicing contracts with the U.S. Department of Education. For example, new laws related to student loan forgiveness or alterations to existing programs like FFELP can reduce loan volumes, change yields, and affect servicing revenue and operating margins. The transition to new servicing contracts, such as the Unified Servicing and Data Solution (USDS) contract, has already resulted in lower per-borrower blended revenue compared to previous agreements.
2. Interest Rate Risk: As a financial services company deriving a substantial portion of its earnings from loan spreads, Nelnet is significantly exposed to interest rate fluctuations. Changes in the general interest rate environment can directly affect its interest income, net income, and the cost and availability of financing required to originate, purchase, or carry education loans. This includes basis risk, where the interest rate characteristics of its loan assets may not match those of its funding sources, and repricing risk.
3. Loan Portfolio Risks (FFELP Run-off, Credit, and Prepayment Risk): Nelnet faces risks associated with its diverse loan portfolios. A significant risk is the ongoing, expected run-off of its legacy FFELP loan portfolio, as the company can no longer originate new FFELP loans. This continuous reduction in the portfolio balance directly leads to a decrease in net interest income within its Asset Generation and Management (AGM) segment. Additionally, while federally insured student loans carry minimal credit risk, Nelnet's private education loans and beneficial interests in loan securitizations expose it to credit risk from borrower defaults. The company also faces prepayment risk, where borrowers repay their loans faster than anticipated, which can reduce expected cash flows and earnings.

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Increased federal government intervention, policy changes, and potential consolidation or insourcing of student loan servicing operations by the U.S. Department of Education pose a clear emerging threat to Nelnet's core student loan servicing business. The ongoing discussions and actions regarding student loan forgiveness, expanded income-driven repayment plans (e.g., SAVE plan), and the restructuring of federal loan servicing contracts introduce significant uncertainty regarding Nelnet's future revenue and role in this segment. The potential for non-renewal of existing federal servicing contracts or a significant reduction in their scope, driven by federal policy shifts, represents a material and evolving risk.

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Nelnet (NNI) operates in several key markets, with the following addressable market sizes for its main products and services:

• Student Loan Servicing: The global student loan servicing market was valued at approximately $2.2 billion in 2023 and is projected to grow to $4 billion by 2032. Another estimate places the global market at $6,417.4 million by 2033. Nelnet is a significant player in the U.S. student loan servicing market, having serviced $508.7 billion in government-owned, FFELP, private education, and consumer loans for 14.2 million borrowers as of September 30, 2025.
• Education Technology and Payment Processing (including Online Tuition Payment Software and Digital Student Payments):
  • The global online tuition payment software market was valued at $0.77 billion in 2024 and is expected to reach $1.65 billion by 2033. North America holds the largest share of this market.
  • The global digital student payments market is projected to grow from $1.4 billion in 2024 to $3.2 billion by 2033. North America is the dominating region for digital student payments.
• Fiber Internet (through its stake in Allo Fiber): The U.S. fiber optics market was valued at $3.1 billion in 2024 and is anticipated to reach $7.8 billion by 2033.
• Asset Generation and Management: null
• Renewable Energy (Solar Projects): null
• Business Process Outsourcing (BPO): null

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Expected Drivers of Future Revenue Growth for Nelnet (NNI)

Over the next 2-3 years, Nelnet (NNI) is expected to drive revenue growth through several key initiatives across its diversified business segments:

1. Expansion in Private Education Loan Servicing: Nelnet anticipates continued growth in its private education loan servicing portfolio. This growth is evidenced by increased private loan servicing income and the successful conversion of loan portfolios from other financial institutions, such as Discover Financial Services and SoFi Lending Corp., in late 2024 and early 2025.
2. Growth of Nelnet Bank's Loan and Investment Portfolio: Nelnet Bank is projected to contribute to revenue growth through the expansion of its loan and investment portfolio. The bank has consistently demonstrated an increase in net interest income, driven by the strategic growth of its portfolio and an improved net interest margin.
3. Sustained Performance in Education Technology Services and Payments: The Education Technology Services and Payments segment is a consistent revenue driver for Nelnet. This division has reported steady revenue increases in recent quarters, with 2024 noted as a "record-breaking" year, indicating continued strong performance and growth in this area.
4. Strategic Acquisitions and Market Expansion: Nelnet is actively pursuing strategic acquisitions to expand its market presence and service offerings. A notable example is the planned acquisition of Finastra's Canadian student loan servicing business, which is expected to enhance Nelnet's services in North America and reinforce its commitment to student loan borrowers and government partners.
5. Investments in Technology and Artificial Intelligence (AI): While indirectly, Nelnet's ongoing strategic investments in new technologies and artificial intelligence are crucial for future revenue growth. These investments aim to improve operational efficiency, enhance customer experience, and potentially lead to higher margins, thereby supporting the sustainable growth and competitiveness of its various business segments.

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Share Repurchases

• Nelnet announced an equity buyback program on May 8, 2025, to repurchase up to 5,000,000 shares, representing 13.75% of its issued share capital as of April 30, 2025.

Share Issuance

• As of July 31, 2025, Nelnet had 25,515,182 shares of Class A Common Stock and 10,658,604 shares of Class B Common Stock outstanding.
• Nelnet's shares outstanding were 36.17 million as of July 31, 2025.

Inbound Investments

• No explicit information available regarding large inbound investments made in Nelnet by third-parties within the last 3-5 years. The company's strategy involves a long-term repositioning towards a more diversified model including educational software and payment processing.

Outbound Investments

• Nelnet has made investments in educational software, payment processing, and holds a significant ownership stake in the private start-up Hudl.
• The company recognized a gain of $30.2 million ($23.0 million after tax) related to a partial redemption and increase in the remaining carrying value on a venture capital investment in the third quarter of 2025.
• Nelnet made solar tax equity investments in renewable energy solar partnerships, funding a total of $300.6 million for itself and $285.8 million on behalf of syndication partners as of June 30, 2025, for a funded total of $586.4 million.

Capital Expenditures

• Nelnet's capital expenditures were $17 million in the last 12 months as of late 2025.
• Capital expenditures were $156 million in 2022, $125 million in 2023, and $92 million in 2024.
• The company's capital expenditures were -$1.37 million in the last 12 months, resulting in a free cash flow of $464.54 million.