Free cash flow has become increasingly erratic, shifting from a $310 million inflow in 2023Q4 to a $47 million outflow in 2026Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Cash from Operations | 323M | 441M | 459M | 676M | 305M | 702M | 987M | 1.02B | 1.14B | 1.16B | 1.35B | 1.91B | 1.66B | 2B | 2.64B |
| Operating CF Margin % | - | 14.19% | 12.05% | 58.48% | 18.4% | 30.9% | 29.93% | 21.81% | 23.23% | 26.42% | 32.49% | 44.47% | 35.18% | 58.58% | 108.66% |
| Operating CF Growth % | 2653.96% | -3.92% | -32.1% | 121.64% | -56.55% | -28.88% | -3.14% | -10.61% | -1.55% | -14.03% | -29.48% | 14.78% | -16.8% | -24.13% | - |
| Net Income | -60M | -80M | 131M | 228M | 105M | -11M | 412M | 597M | 395M | 292M | 681M | 984M | 1.14B | 1.42B | 939M |
| Depreciation & Amortization | 6M | 3M | 146M | 10M | 14M | 19M | 21M | 25M | 31M | 23M | 29M | 12M | 9M | 13M | 18M |
| Stock-Based Compensation | 16M | 21M | 23M | 24M | 19M | 22M | 18M | 25M | 25M | 35M | 26M | 29M | 39M | 0 | 47M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 128M | -69M | 0 | -103M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 346M | 497M | -84M | 307M | 65M | 254M | 389M | 339M | 462M | 357M | 15M | -263M | -177M | 110M | 1.68B |
| Working Capital Changes | 16M | 0 | 243M | 107M | -26M | 487M | 147M | 136M | 227M | 451M | 596M | 1.15B | 656M | 459M | 361M |
| Change in Receivables | 72M | 0 | 348M | -50M | -147M | 47M | 22M | 78M | -125M | -29M | -26M | 175M | -75M | -68M | 361M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 2.74B | 2.71B | 8.47B | 7.36B | 10.59B | 6.67B | 6.45B | 7.49B | 10.36B | 7.12B | 11.28B | 10.69B | -1.65B | 9.21B | 11.85B |
| Capital Expenditures | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| CapEx % of Revenue | 0% | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Acquisitions | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 226M | -2.98B | -3.25B | -3.24B | -3.29B | 0 | 0 |
| Other Investing | 2.74B | 2.71B | 8.47B | 7.36B | 10.59B | 6.61B | 6.45B | 7.48B | 10.36B | 7.3B | 11.28B | 11.03B | -1.65B | 9.21B | 11.85B |
| Cash from Financing | -2.99B | -3.15B | -9.62B | -10.05B | -9.66B | -7.33B | -7.68B | -9.98B | -10.88B | -8.34B | -13.1B | -12.45B | -3.76B | -9.92B | -13.38B |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | -24M | 0 | -179M | -310M | -400M | -600M | -400M | -440M | -220M | -440M | -755M | -945M | -600M | -600M | 0 |
| Dividends Paid | -62M | -63M | -70M | -78M | -91M | -107M | -123M | -147M | -166M | -176M | -201M | -240M | -255M | -284M | -257M |
| Share Repurchases | -99M | -111M | -179M | -310M | -400M | -600M | -400M | -440M | -220M | -440M | -755M | -945M | -600M | -600M | -900M |
| Other Financing | -2.21B | -3.09B | -195M | -93M | 1.18B | -1.97B | -2.11B | -1.1B | -3B | -2.4B | -4.24B | 729M | 4.2B | -6.05B | -13.12B |
| Net Change in Cash | 76M | 1M | -690M | -2.01B | 1.23B | 41M | -244M | -1.48B | 616M | -66M | 3.12B | 151M | -3.75B | 1.29B | 1.11B |
| Free Cash Flow | 323M | 441M | 459M | 676M | 305M | 702M | 987M | 1.02B | 1.14B | 1.16B | 1.35B | 1.91B | 1.66B | 2B | 2.64B |
| FCF Margin % | 10.77% | 14.19% | 12.05% | 58.48% | 18.4% | 30.9% | 29.93% | 21.81% | 23.23% | 26.42% | 32.49% | 44.47% | 35.18% | 58.58% | 108.66% |
| FCF Growth % | -7.18% | -3.92% | -32.1% | 121.64% | -56.55% | -28.88% | -3.14% | -10.61% | -1.55% | -14.03% | -29.48% | 14.78% | -16.8% | -24.13% | - |
| FCF per Share | 3.40 | 4.50 | 4.21 | 5.50 | 2.12 | 4.08 | 5.06 | 4.37 | 4.32 | 4.12 | 4.18 | 5.00 | 3.91 | 4.45 | 5.46 |
| FCF Conversion (FCF/Net Income) | -5.38x | -5.51x | 3.50x | 2.96x | 0.47x | 0.98x | 2.40x | 1.71x | 2.89x | 3.97x | 1.98x | 1.94x | 1.47x | 1.55x | 2.86x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Terminal asset portfolio decay
According to the provided quarterly data, Navient's operating cash flow frequently diverges from net income, as evidenced by the 2025Q4 period where the company reported a $5 million net loss despite generating $174 million in operating cash flow, highlighting significant non-cash accounting distortions within the business.
The persistent gap between net income and operating cash flow suggests that GAAP earnings are heavily impacted by non-cash charges or provisioning that do not reflect the underlying cash-generating capacity of the legacy loan portfolio. Investors should monitor this divergence as it indicates that reported profitability metrics may be poor proxies for the actual liquidity available to service debt or fund shareholder returns.
Based on reported financial statements, Navient's free cash flow trajectory has become increasingly erratic, swinging from a $310 million inflow in 2023Q4 to a $47 million outflow in 2026Q1, which underscores the instability inherent in a business model reliant on a rapidly amortizing legacy asset base.
The sharp decline in free cash flow margins suggests that the company is struggling to maintain consistent cash generation as the FFELP portfolio shrinks. This volatility may indicate that the firm's ability to sustain its current capital allocation strategy is becoming increasingly sensitive to the timing of loan repayments and the success of its BPO segment.
As reported in recent filings, working capital fluctuations have become a primary driver of cash flow volatility, with a massive $339 million outflow in 2024Q3 followed by significant swings in subsequent quarters, suggesting that the company's cash position is highly susceptible to timing differences in loan servicing and collections.
These erratic working capital movements imply that the company's cash flow is not merely a function of core earnings but is also heavily influenced by the operational complexities of managing a large, legacy loan portfolio. Analysts should investigate whether these swings represent temporary timing issues or a more permanent degradation in the efficiency of the company's collection processes.
Data indicates that Navient continues to prioritize shareholder returns, with $23 million in buybacks and $15 million in dividends during 2026Q1, despite the company experiencing a $47 million free cash flow deficit, which raises concerns regarding the long-term sustainability of this capital return strategy.
The decision to continue returning capital while free cash flow is negative suggests a reliance on existing cash reserves or debt capacity rather than organic cash generation. This approach warrants further investigation, as it may indicate that management is prioritizing short-term shareholder appeasement over the preservation of liquidity during a critical phase of portfolio contraction.
Quick answers to the most common questions about buying JSM stock.
Navient Corporation SR NT 6% 121543 (JSM) generated $441.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Navient Corporation SR NT 6% 121543 (JSM) generated $441.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Navient Corporation SR NT 6% 121543 (JSM) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Navient Corporation SR NT 6% 121543 (JSM) returned $63.0M to shareholders via cash dividends and spent $111.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.