Nelnet, Inc. Class A (NNI)

In the past six months, Nelnet reported strong Q3 2025 results, exceeding revenue expectations, and its GAAP profit of $2.94 per share was 93.4% above analyst consensus estimates. Nelnet announced a 10% increase in its dividend around December 2025. In Q2 2025, Nelnet completed the sale of its preferred membership interests and a partial sale of its equity investment in ALLO Communications, generating approximately $410 million in cash proceeds and realizing a $175 million gain. News emerged about the Trump administration's efforts to end the Biden administration's SAVE plan for student loans. Nelnet's stock price increased by 25.80% from January 2, 2025, to December 31, 2025.

Nelnet's Education Technology Services and Payments segment is subject to seasonal fluctuations, with demand for student loan-related products and services generally influenced by the academic calendar. Peak periods often align with the start of academic terms for loan applications and disbursements. Other services, such as refinancing, may be more influenced by broader economic conditions and interest rate environments.

Nelnet, Inc. (NNI) is a diversified financial services and technology company focused on the education sector, operating within the Finance sector, specifically in the Banking and Financial Services and Financial - Consumer Loans industries. The company generates revenue through fee-based services and net interest income from education loans and banking operations. Nelnet's major products and services include loan servicing and systems, education technology services and payments, asset generation and management, Nelnet Bank, Nelnet Communications Services, Nelnet Energy Services, and Nelnet Enrollment Services.

Nelnet's headquarters are located in Lincoln, Nebraska, U.S., with offices in various U.S. states, including Nebraska, Idaho, New York, Texas, Colorado, Wisconsin, Kansas, Utah, South Dakota, and Illinois. Nelnet Business Services extends its operations internationally, including Australia, and Nelnet Campus Commerce serves institutions worldwide. The company also has over 50 subsidiaries that administer and collect student loans across the United States and Canada.

In the past year, Nelnet has received recognition on Forbes' lists for 2025, including #22 America's Best Employers By State (Banking and Financial Services) and #385 America's Dream Employers (Banking and Financial Services). However, reports surfaced about confusion regarding the company's handling of student loan consolidations, causing delays and concern. An ongoing class action lawsuit alleges that Nelnet systematically failed to process applications for income-driven repayment (IDR) plans and make necessary adjustments.

Nelnet has a highly concentrated ownership structure, with company insiders and the founding family retaining significant voting power through a dual-class stock system. Approximately 52.21% of the company's stock is held by insiders, while institutional investors own around 38.30% and public companies and individual investors hold about 9.48%. Major individual owners include Angie Muhleisen, Michael S. Dunlap, Dan D. Muhleisen, Adam K. Peterson, and Stephen F. Butterfield. Key institutional owners include Dimensional Fund Advisors Lp, Magnolia Group, Llc, Vanguard Group Inc, Farmers & Merchants Investments Inc, and BlackRock, Inc.