Free cash flow remains sensitive to infrastructure investment cycles, with capital expenditure intensity peaking at 5.0% of revenue in 2023Q4, complicating the predictability of cash conversion.
| 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 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 |
|---|
| Cash from Operations | 404.93M | 422.99M | 662.89M | 432.03M | 684.06M | 480.33M | 349.1M | 298.92M | 270.89M | 227.51M | 325.26M | 391.37M | 357.45M | 387.18M | 299.32M | 310.86M | 194.87M | 324.71M | 321.1M | 273.06M | 215.24M | 159.11M | 241.08M | 153M | 134.21M |
| Operating CF Margin % | - | 18.69% | 35.9% | 23.81% | 37.65% | 33.88% | 25.43% | 17.82% | 16.12% | 19.31% | 27.25% | 35.24% | 32.27% | 36.7% | 32.54% | 34.83% | 20.09% | 33.81% | 22.42% | 13.49% | 12.29% | 14.04% | 34.69% | 31.05% | 24.35% |
| Operating CF Growth % | -100.24% | -36.19% | 53.44% | -36.84% | 42.42% | 37.59% | 16.79% | 10.34% | 19.07% | -30.05% | -16.89% | 9.49% | -7.68% | 29.35% | -3.71% | 59.52% | -39.99% | 1.12% | 17.59% | 26.86% | 35.28% | -34% | 57.57% | 14% | - |
| Net Income | 417.04M | 420.68M | 175.91M | 54.44M | 396.24M | 386.28M | 349.63M | 141.29M | 227.52M | 161.82M | 257.5M | 268.26M | 309.28M | 304.34M | 178.43M | 204.34M | 189.03M | 139.13M | 26.84M | 35.43M | 68.16M | 181.12M | 149.18M | 27.1M | 48.54M |
| Depreciation & Amortization | 54.5M | 33.57M | 132.53M | 145.39M | 176.25M | 132.32M | 198.47M | 192.66M | 184.68M | 137.82M | 122.55M | 123.74M | 107.97M | 79.48M | 116.78M | 72.56M | 91.24M | 116.04M | 141.6M | 261.38M | 169.07M | 109.08M | 96.72M | 101.38M | 93.86M |
| Stock-Based Compensation | 0 | 0 | 12.04M | 17.9M | 14.18M | 10.67M | 16.74M | 6.78M | 6.54M | 4.42M | 4.35M | 5.35M | 4.7M | 3.33M | 3.02M | 2.03M | 2.28M | 2.64M | 7.32M | 6.69M | 2.5M | 1.81M | 0 | 0 | 0 |
| Deferred Taxes | -86.78M | 0 | -21.62M | -51.96M | 34.64M | 55.62M | 7.97M | -7.26M | 10.98M | -1.54M | 27M | 7.05M | 19.66M | 2.54M | -23.83M | -7.73M | 4.27M | -19.06M | -9.47M | -24.98M | -6.38M | 46.51M | 11.78M | -3.2M | -8.47M |
| Other Non-Cash Items | -527K | -141.52M | 29.26M | 132.1M | 67.34M | -71.02M | -282.2M | -7.06M | 32.52M | 8.68M | -100.53M | -7.03M | -80.91M | -17.99M | 12.26M | 34.63M | -62.56M | -6.87M | 90.2M | 88.52M | 70.11M | -89.46M | 11.22M | 17.58M | 5.79M |
| Working Capital Changes | 102.44M | 110.25M | 334.76M | 134.16M | -4.59M | -33.56M | 58.49M | -27.49M | -191.36M | -83.69M | 14.39M | -6M | -3.25M | 15.47M | 12.65M | 5.03M | -29.4M | 92.83M | 64.6M | -93.98M | -88.2M | -89.95M | -24.78M | 10.13M | -5.51M |
| Change in Receivables | -36.31M | 7.3M | 36.11M | 0 | -26.36M | -86.98M | 40.88M | -110.53M | -245.81M | -51.25M | 15K | -2.76M | 11.89M | 15.91M | 899K | 18.18M | 590K | 142.61M | 128.44M | -96.58M | -125.59M | -3.4M | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 562.76M | 300.37M | 349.53M | -8.74M | -20.53M | 4.78M | 18.37M | -5.07M | 13.93M | -368.57M | 1.61M | 343.98M | 470.9M | 0 | 0 | 0 | 0 |
| Change in Payables | -1.97M | 0 | -14.54M | 0 | 31.48M | -24.14M | -18.58M | 53.68M | 71.03M | 4.36M | 14.17M | 5.12M | 3.01M | -433K | -4.86M | -538K | -678K | -61.74M | -47.87M | 9.23M | 25.93M | 0 | 0 | 0 | 0 |
| Cash from Investing | 356.83M | 509.43M | 2.41B | 1.94B | 2.27B | 1.19B | 621.22M | 1.52B | -732.35M | 3.27B | 3.26B | 1.42B | -109.51M | 496.58M | -792.65M | 1.44B | -161.3M | 1.81B | 1.06B | -2.47B | -3.92B | -6.52B | -3.08B | -2.07B | -1.64B |
| Capital Expenditures | -22.86M | -26.24M | -20.9M | -74.05M | -59.42M | -58.95M | -113.31M | -92.5M | -125.02M | -156M | -67.6M | -16.76M | -26.49M | -17.01M | -9.94M | -14.17M | -12.77M | -1.2M | -5.14M | -20.06M | -51.95M | -19.2M | -16.46M | -16.36M | -13.41M |
| CapEx % of Revenue | 1.07% | 1.16% | 1.13% | 4.08% | 3.27% | 4.16% | 8.26% | 5.51% | 7.44% | 13.24% | 5.66% | 1.51% | 2.39% | 1.61% | 1.08% | 1.59% | 1.32% | 0.13% | 0.36% | 0.99% | 2.97% | 1.69% | 2.37% | 3.32% | 2.43% |
| Acquisitions | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Investments | 11.92B | 11.79B | 11.93B | 14.8B | 17.24B | 19.88B | 21.13B | 21.6B | 243.31M | 255.58M | 295.22M | 379.19M | 290.42M | 373.12M | 156.16M | 665.1M | 43.24M | -325.88M | 0 | 85.23M | 129.13M | 160.48M | 0 | 0 | 0 |
| Other Investing | 420.83M | 694.16M | 2.95B | 1.94B | 3.08B | 1.89B | 1.22B | 1.65B | -575.76M | 3.41B | -147.49M | 1.55B | -39.06M | 147.74M | -201.14M | 87.91M | -43.27M | 1.74B | -70.03M | -2.52B | -3.8B | -6.39B | -2.95B | -2.04B | -1.88B |
| Cash from Financing | -760.57M | -890.16M | -3.17B | -2.7B | -2.79B | -1.43B | -1.23B | -1.79B | 711.78M | -3.5B | -3.58B | -1.88B | -180.73M | -886.52M | 516.8M | -1.99B | -87.95M | -1.99B | -1.3B | 2.2B | 3.7B | 6.42B | 2.68B | 2.07B | 1.51B |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | -79.25M | -67.46M | -81.34M | -26.25M | -96.05M | -56.65M | -71.7M | -40.41M | -45.33M | -68.22M | -68.2M | -96.17M | -15.71M | -13.14M | -22.33M | -26.62M | -39.28M | 19K | -826K | -75.18M | -60.74M | 961K | 312K | 163.86M | 0 |
| Dividends Paid | -44.67M | -42.99M | -40.84M | -39.42M | -36.61M | -34.46M | -31.78M | -29.48M | -26.84M | -24.1M | -21.19M | -19.02M | -18.54M | -18.57M | -66.24M | -17.76M | -34.13M | -3.49M | -3.46M | -13.82M | 0 | 0 | 0 | 0 | -2.99M |
| Share Repurchases | -81.17M | -69.35M | -83.29M | -28.03M | -97.69M | -58.11M | -73.36M | -40.41M | -45.33M | -68.9M | -69.09M | -96.17M | -15.71M | -13.14M | -22.81M | -27.13M | -39.8M | -430K | -1.54M | -76.65M | -62.39M | 0 | 0 | 0 | 0 |
| Other Financing | 58.6M | -32.21M | 566.53M | 207.45M | 377.77M | 396.97M | 113.75M | -8.06M | -25.5M | 10.48M | -5.18M | 4.26M | -16.05M | -785K | -17.48M | 30K | 279K | 101K | -9.03M | -30.6M | -19.91M | -22M | -15.38M | -11.74M | -11.43M |
| Net Change in Cash | -1.6M | 42.53M | -94.47M | -332.13M | 163.43M | 235.79M | -264.21M | 30.21M | 250.32M | -2.9M | 6.13M | -66.95M | 67.21M | -2.76M | 23.46M | -241.23M | -54.38M | 148.33M | 78.1M | 5.66M | 2.44M | 63.66M | -158.43M | 158.27M | 3.71M |
| Free Cash Flow | 370.52M | 396.75M | 641.99M | 358.92M | 624.64M | 421.38M | 235.79M | 206.42M | 145.87M | 71.5M | 257.65M | 374.6M | 330.96M | 370.17M | 289.37M | 296.69M | 182.1M | 323.5M | 315.96M | 253M | 163.3M | 139.91M | 224.63M | 136.64M | 120.8M |
| FCF Margin % | 17.34% | 17.53% | 34.76% | 19.78% | 34.38% | 29.72% | 17.18% | 12.3% | 8.68% | 6.07% | 21.58% | 33.73% | 29.87% | 35.08% | 31.46% | 33.25% | 18.78% | 33.69% | 22.06% | 12.5% | 9.33% | 12.35% | 32.32% | 27.73% | 21.92% |
| FCF Growth % | -31.52% | -38.2% | 78.86% | -42.54% | 48.24% | 78.71% | 14.23% | 41.51% | 104% | -72.25% | -31.22% | 13.19% | -10.59% | 27.92% | -2.47% | 62.93% | -43.71% | 2.39% | 24.89% | 54.93% | 16.71% | -37.71% | 64.39% | 13.11% | - |
| FCF per Share | 10.27 | 10.92 | 17.52 | 9.59 | 16.61 | 11.11 | 6.12 | 5.22 | 3.57 | 1.71 | 6.04 | 8.23 | 7.12 | 7.95 | 6.11 | 6.16 | 3.69 | 6.51 | 6.44 | 5.09 | 3.05 | 2.60 | 4.19 | 3.02 | 2.69 |
| FCF Conversion (FCF/Net Income) | 0.89x | 0.99x | 3.60x | 4.81x | 1.68x | 1.22x | 0.99x | 2.11x | 1.19x | 1.31x | 1.27x | 1.46x | 1.16x | 1.28x | 1.68x | 1.52x | 1.03x | 2.33x | 11.20x | 8.31x | 3.27x | 0.89x | 1.62x | 5.65x | 2.77x |
| Interest Paid | 353.02M | 472.26M | 651.47M | 781.31M | 350.66M | 152.17M | 301.57M | 657.44M | 591.39M | 390.28M | 301.12M | 228.25M | 210.7M | 191M | 234.61M | 206.12M | 224.84M | 434.83M | 1.06B | 1.37B | 1.16B | 558.89M | 216.28M | 0 | 0 |
| Taxes Paid | 67.55M | 68.86M | 15.24M | 47.59M | 57.7M | 18.66M | 29.68M | 17.67M | 473K | 96.27M | 115.42M | 147.24M | 155.83M | 154.84M | 114.76M | 133.18M | 106M | 101.49M | 24.06M | 37M | 51.83M | 57.47M | 60.12M | 0 | 0 |
Regulatory and infrastructure execution
As reported in financial statements, Nelnet's operating cash flow frequently decouples from net income, with the OCF/NI ratio exhibiting extreme swings, such as the 57.39x multiple observed in 2024Q3, which underscores the significant impact of non-cash adjustments and working capital fluctuations on the company's reported earnings quality.
The persistent gap between net income and operating cash flow suggests that GAAP earnings are a poor proxy for the company's actual cash-generating capacity. Investors should monitor these discrepancies closely, as they likely reflect the complex accounting treatment of interest rate hedges and the inherent volatility of the legacy student loan portfolio.
Based on recent quarterly data, free cash flow margins have fluctuated significantly, ranging from 11.7% to 45.6%, indicating that Nelnet's cash generation is highly sensitive to the timing of capital-intensive infrastructure investments and the ongoing runoff of its legacy student loan servicing assets.
The inconsistency in FCF generation suggests that the company is currently in a transition phase where cash flows are being aggressively recycled into new ventures. This trajectory warrants further investigation into whether the underlying business units can achieve sustainable, self-funding cash flow profiles as the fiber-optic expansion matures.
According to historical cash flow filings, Nelnet's capital expenditure intensity has remained a material drag on free cash flow, with CapEx/Revenue ratios peaking at 5.0% in 2023Q4, reflecting the heavy financial burden of deploying fiber-optic networks in the competitive Communications segment.
The shift toward capital-intensive infrastructure represents a fundamental change from the company's historically capital-light servicing model. Analysts should interpret this trend as a long-term bet on asset ownership, which may continue to suppress near-term free cash flow despite the potential for future recurring revenue growth.
As evidenced by the quarterly cash flow data, working capital changes have been highly erratic, swinging from a $145.1 million inflow in 2025Q2 to a $33.7 million outflow in 2025Q4, which complicates the assessment of the company's underlying operational efficiency and cash conversion cycle.
These large, irregular swings in working capital suggest that the company's cash flow is subject to significant timing differences in loan servicing and payment processing. Investors should be cautious in extrapolating short-term cash flow improvements, as they may be driven by temporary balance sheet movements rather than sustainable operational gains.
Based on reported figures, Nelnet consistently utilizes cash for dividends and share repurchases, while simultaneously managing significant capital outflows for acquisitions, such as the $689.9 million net acquisition spend in 2023Q4, highlighting a strategy of recycling legacy loan cash into high-growth, long-term infrastructure and technology assets.
The company's capital allocation appears to be a deliberate attempt to pivot away from a declining core business. While this strategy may create long-term value, the reliance on legacy cash flows to fund these investments suggests that the company's financial flexibility is tethered to the performance of its runoff portfolio.
Quick answers to the most common questions about buying NNI stock.
Nelnet, Inc. (NNI) generated $423.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Nelnet, Inc. (NNI) generated $396.7M 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.
Nelnet, Inc. (NNI) spent $26.2M 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, Nelnet, Inc. (NNI) returned $43.0M to shareholders via cash dividends and spent $69.3M on share repurchases. This shows the company's commitment to returning capital to its equity investors.