Nelnet Reports Third Quarter 2024 Results

Lincoln, Nebraska-based Nelnet, a leading provider of education services and student loan servicing, has announced its financial results for the third quarter of 2024. According to the company’s press release, Nelnet reported GAAP net income of $2.4 million, or $0.07 per share, for the quarter ended September 30, 2024. This represents a significant decrease from the same period last year, when the company reported GAAP net income of $44.4 million, or $1.18 per share.

However, it’s important to note that the third quarter of 2024 was impacted by several non-recurring items, which affected the company’s financial performance. Excluding these items, Nelnet’s net income for the quarter would have been $31.7 million, or $0.83 per share, compared to $44.4 million, or $1.18 per share, in the prior year period.

Nelnet’s revenue for the third quarter of 2024 was $168.5 million, a decrease of 21% from $213.9 million in the same period last year. The company attributed the decline in revenue to lower volumes in its student loan servicing and education services businesses.

Despite the decrease in revenue and net income, Nelnet’s management remains optimistic about the company’s future prospects. In a statement, Jeff Noordhoek, Nelnet’s CEO, said, “While our third quarter results were impacted by the ongoing challenges in the student loan industry, we remain committed to our long-term strategy and are confident in our ability to continue delivering value to our customers and shareholders.”

Nelnet also announced that its Board of Directors has authorized a new share repurchase program, under which the company may purchase up to $50 million of its common stock over the next 12 months. This move reflects the company’s commitment to returning value to its shareholders and confidence in its financial position.

In conclusion, while Nelnet’s third quarter 2024 results were impacted by non-recurring items and lower revenue, the company’s management remains optimistic about its future prospects. The new share repurchase program also demonstrates the company’s commitment to returning value to its shareholders. As the student loan industry continues to evolve, Nelnet is well-positioned to adapt and continue delivering value to its customers and shareholders.