Revenue declined to $682 million in Q2 2026 with net interest income down 7.8% year-over-year to $118 million, while a $537 million negative provision drove net income to $25 million, masking underlying margin pressure.
Navient Corporation (NAVI) annual income statement — 14-year revenue, gross profit & net income history
| 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 |
|---|
| Net Interest Income | 516M | 526M | 536M | 862M | 1.12B | 1.33B | 1.25B | 1.19B | 1.24B | 1.41B | 1.71B | 2.22B | 2.67B | 3.17B | 3.21B |
| NII Growth % | 3.88% | -1.87% | -37.82% | -23.1% | -15.84% | 6.39% | 5.65% | -4.44% | -12.18% | -17.18% | -23.23% | -16.72% | -15.79% | -1.28% | - |
| Net Interest Margin % | 1.09% | 1.08% | 1.03% | 1.4% | 1.58% | 1.65% | 1.43% | 1.25% | 1.19% | 1.23% | 1.41% | 1.66% | 1.82% | 1.99% | 1.77% |
| Interest Income | 2.9B | 3.11B | 3.81B | 4.42B | 3.22B | 2.65B | 3.3B | 4.67B | 4.91B | 4.38B | 4.15B | 4.29B | 4.73B | 5.38B | 5.77B |
| Interest Expense | 2.39B | 2.58B | 3.27B | 3.56B | 2.1B | 1.32B | 2.05B | 3.49B | 3.67B | 2.97B | 2.44B | 2.07B | 2.06B | 2.21B | 2.56B |
| Loan Loss Provision | -902M | -2.16B | 113M | 123M | 79M | -61M | 155M | 258M | 370M | 426M | 429M | 581M | 647M | 839M | 1.08B |
| Non-Interest Income | 34M | 121M | 425M | 417M | 616M | 879M | 436M | 811M | 683M | 799M | 818M | 881M | 907M | 844M | 99M |
| Non-Interest Income % | 6.18% | 18.7% | 44.22% | 32.6% | 35.46% | 39.76% | 25.83% | 40.63% | 35.52% | 36.14% | 32.42% | 28.4% | 25.38% | 21.04% | 2.99% |
| Total Net Revenue | 550M | 647M | 961M | 1.28B | 1.74B | 2.21B | 1.69B | 2B | 1.92B | 2.21B | 2.52B | 3.1B | 3.57B | 4.01B | 3.31B |
| Revenue Growth % | -25.68% | -32.67% | -24.86% | -26.37% | -21.44% | 30.98% | -15.43% | 3.8% | -13.03% | -12.37% | -18.67% | -13.21% | -10.9% | 21.29% | - |
| Non-Interest Expense | 359M | 317M | 674M | 843M | 831M | 1.34B | 1B | 975M | 1.02B | 1.02B | 986M | 941M | 1.11B | 1.08B | 790M |
| Efficiency Ratio | 65.27% | 49% | 70.14% | 65.91% | 47.84% | 60.43% | 59.3% | 48.85% | 53.3% | 46.18% | 39.08% | 30.34% | 31.03% | 27.05% | 23.89% |
| Operating Income | 1.09B | 2.49B | 174M | 313M | 827M | 936M | 532M | 763M | 528M | 764M | 1.11B | 1.58B | 1.82B | 2.09B | 1.44B |
| Operating Margin % | 198.73% | 385.01% | 18.11% | 24.47% | 47.61% | 42.33% | 31.52% | 38.23% | 27.46% | 34.55% | 43.92% | 50.93% | 50.87% | 52.03% | 43.45% |
| Operating Income Growth % | - | 1331.61% | -44.41% | -62.15% | -11.65% | 75.94% | -30.28% | 44.51% | -30.89% | -31.05% | -29.87% | -13.09% | -12.89% | 45.23% | - |
| Pretax Income | -53M | -111M | 174M | 313M | 827M | 936M | 532M | 763M | 528M | 764M | 1.11B | 1.58B | 1.82B | 2.09B | 1.44B |
| Pretax Margin % | -9.64% | -17.16% | 18.11% | 24.47% | 47.61% | 42.33% | 31.52% | 38.23% | 27.46% | 34.55% | 43.92% | 50.93% | 50.87% | 52.03% | 43.45% |
| Income Tax | -4M | -31M | 43M | 85M | 182M | 219M | 120M | 166M | 133M | 472M | 427M | 597M | 681M | 776M | 498M |
| Effective Tax Rate % | 7.55% | 27.93% | 24.71% | 27.16% | 22.01% | 23.4% | 22.56% | 21.76% | 25.19% | 61.78% | 38.54% | 37.78% | 37.46% | 37.18% | 34.66% |
| Net Income | -49M | -80M | 131M | 228M | 645M | 717M | 412M | 597M | 395M | 292M | 681M | 984M | 1.14B | 1.42B | 939M |
| Net Margin % | -8.91% | -12.36% | 13.63% | 17.83% | 37.13% | 32.43% | 24.41% | 29.91% | 20.54% | 13.21% | 26.99% | 31.72% | 31.81% | 35.35% | 28.39% |
| Net Income Growth % | -244.12% | -161.07% | -42.54% | -64.65% | -10.04% | 74.03% | -30.99% | 51.14% | 35.27% | -57.12% | -30.79% | -13.46% | -19.82% | 51.01% | - |
| Net Income (Continuing) | -49M | -80M | 131M | 228M | 645M | 717M | 412M | 597M | 395M | 292M | 681M | 983M | 1.14B | 1.31B | 939M |
| EPS (Diluted) | -0.51 | -0.81 | 1.18 | 1.85 | 4.48 | 4.17 | 2.11 | 2.56 | 1.50 | 1.04 | 2.12 | 2.61 | 2.69 | 3.12 | 1.90 |
| EPS Growth % | -255.33% | -168.64% | -36.22% | -58.71% | 7.43% | 97.63% | -17.58% | 70.67% | 44.23% | -50.94% | -18.77% | -2.97% | -13.78% | 64.21% | - |
| EPS (Basic) | - | -0.81 | 1.20 | 1.87 | 4.54 | 4.22 | 2.13 | 2.60 | 1.52 | 1.06 | 2.15 | 2.66 | 2.74 | 3.18 | 1.93 |
| Diluted Shares Outstanding | 96M | 99M | 111M | 123M | 144M | 172M | 195M | 233M | 264M | 281M | 322M | 382M | 425M | 449M | 483M |
Quick answers to the most common questions about buying NAVI stock.
For fiscal year 2025, Navient Corporation (NAVI) reported total revenue of $647.0M. This represents a 80.4% decline compared to $3.31B in 2012.
Navient Corporation (NAVI) reported a net loss of $80.0M for the fiscal year ending 2025.
Navient Corporation (NAVI) reported an operating income of $2.49B, resulting in an operating profit margin of 77.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Navient Corporation (NAVI) generated $2.81B in gross profit for the year, representing a gross profit margin of 87.0%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Revenue decline and high leverage
Metrics are mathematically derived from official filings.
NII Shrinks as Portfolio Runs Off
Net interest income fell 7.8% year-over-year in Q2 2026 to $118 million, reflecting continued amortization of the legacy loan portfolio and rising funding costs.
The sequential decline from $131 million in Q1 2026 to $118 million in Q2 2026 suggests that the run-off of higher-yielding assets is outpacing any benefit from new originations. With the Federal Education Loans segment in runoff, the company's ability to stabilize NII depends on scaling the Consumer Lending and BPS segments, which have yet to offset the decline. Investors should monitor whether the 60% year-over-year growth in originations can translate into meaningful interest income, as the current trajectory implies further NII contraction.
NIM Remains Thin at 0.2%
Net interest margin held at a razor-thin 0.2% in Q2 2026, unchanged from prior quarters, indicating that asset yields are barely covering funding costs.
The persistently low NIM, despite a rising rate environment, suggests that the cost of funds is increasing in tandem with or faster than loan yields, compressing the spread. This is particularly concerning given the high debt-to-equity ratio of 19.05, which amplifies the impact of funding cost increases. The company's reliance on securitization and wholesale funding may be limiting its ability to benefit from higher rates, and the NIM appears structurally challenged as the portfolio mix shifts.
Efficiency Ratio Distorted by Provisions
Reported efficiency ratio of 12.0% in Q2 2026 is misleading, as it is artificially lowered by a $537 million negative provision, masking the true operating cost structure.
Excluding the provision benefit, the efficiency ratio would be significantly higher, indicating that the company's core operations are not as cost-efficient as the headline suggests. The negative provision in Q2 2026 appears to be a release of reserves, which may not recur and could signal that prior loss estimates were overly conservative. Investors should focus on pre-provision net revenue to assess operating leverage, which remains under pressure from declining revenue and high fixed costs.
Provision Volatility Masks Credit Trends
Provision expense swung from a $168 million charge in Q3 2025 to a $537 million benefit in Q2 2026, creating significant earnings volatility and obscuring underlying credit quality.
The large negative provision in Q2 2026 suggests a release of reserves, possibly due to improved credit performance or portfolio runoff, but the magnitude is unusual and warrants scrutiny. The earlier charge in Q3 2025 may have reflected deterioration in the consumer lending book, and the subsequent release could indicate that the company is managing reserves to smooth earnings. Given the negative net margin and ROE on a TTM basis, the sustainability of credit performance remains uncertain, and investors should monitor delinquency and default trends.
Fee Income Fades as BPS Scales
Non-interest income fell to zero in Q2 2026 from $135 million in Q1 2024, reflecting the exit from federal servicing and the early stage of BPS growth.
The dramatic decline in fee income is consistent with the company's strategic pivot away from government servicing, but it also highlights the lack of a diversified revenue stream. The BPS segment, which is intended to replace this income, is still too small to make a material impact, as evidenced by the overall revenue decline. The success of the transformation hinges on whether BPS can generate recurring, high-margin fees, but current data suggests this is not yet occurring.
Q2 2026 Marks a Turning Point
Q2 2026 saw a $537 million negative provision and a 60% year-over-year surge in originations, signaling a potential inflection in the company's transformation strategy.
The combination of a large reserve release and accelerated originations suggests that management is actively repositioning the balance sheet toward growth areas, but the underlying revenue decline of 23.7% year-over-year indicates that the legacy runoff is still dominant. The EPS beat of $0.29 versus consensus of $0.08 may be driven by one-off items, and the negative net margin on a TTM basis implies that the company is not yet profitable on a sustained basis. This quarter could be a pivotal moment if the originations growth translates into future revenue, but the evidence is not yet conclusive.
Earnings Quality Under Scrutiny
The Q2 2026 earnings beat relies on a $537 million negative provision, which may not recur and could mask underlying revenue decline and credit deterioration.
The negative provision, likely a reserve release, artificially boosted net income and EPS, but such releases are finite and may indicate that prior loss estimates were overly conservative. Excluding this benefit, the company's core operations appear unprofitable, with negative net margin and ROE on a TTM basis. The high debt-to-equity ratio of 19.05 amplifies financial risk, and the sharp decline in fee income from federal servicing exit raises questions about the sustainability of the BPS pivot. Investors should scrutinize whether the reported earnings power is real or a product of accounting adjustments.