Gross margins have expanded significantly from 49.6% in 2023Q4 to 86.6% in 2026Q1, reflecting a shift toward higher-margin software and service-based revenue streams.
| 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 |
|---|
| Sales/Revenue | 2.14B | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 1.73B | 1.97B | 1.11B | 961.15M | 1.35B | 1.25B | 979.2M | 939.43M | 987.4M | 698.65M | 792.1M | 798.28M | 825.1M | 805.67M | 629.69M | 642.9M | 714.29M | 546.4M | 381M | 493.49M | 494.54M | 506.19M | 440.82M | 284.66M | 310.54M |
| Gross Margin % | 80.81% | 87.04% | 60.19% | 52.97% | 74.4% | 88.45% | 71.34% | 55.99% | 58.76% | 59.29% | 66.35% | 71.88% | 74.48% | 76.36% | 68.46% | 72.04% | 73.65% | 56.9% | 26.6% | 24.38% | 28.24% | 44.66% | 63.44% | 57.76% | 56.35% |
| Gross Profit Growth % | - | 77.23% | 15.65% | -28.9% | 7.8% | 28.07% | 4.23% | -4.86% | 41.33% | -11.8% | -0.78% | -3.25% | 2.41% | 27.95% | -2.05% | -10% | 30.73% | 43.41% | -22.79% | -0.21% | -2.3% | 14.83% | 54.86% | -8.33% | - |
| Operating Expenses | 951.14M | 821.71M | 882.93M | 892.43M | 849.96M | 751.91M | 528.71M | 762.69M | 701.11M | 471.97M | 393.28M | 377.64M | 355.58M | 340.14M | 355.19M | 321.11M | 411.84M | 330.71M | 336.26M | 436.34M | 392.14M | 226.93M | 206.41M | 238.26M | 234.32M |
| OpEx % of Revenue | - | 36.3% | 47.81% | 49.19% | 46.78% | 53.03% | 38.52% | 45.46% | 41.72% | 40.06% | 32.94% | 34% | 32.1% | 32.24% | 38.62% | 35.98% | 42.46% | 34.44% | 23.47% | 21.55% | 22.4% | 20.02% | 29.7% | 48.35% | 42.52% |
| Selling, General & Admin | 325.1M | 0 | 632.18M | 608.32M | 589.73M | 507.13M | 501.83M | 463.5M | 436.18M | 301.88M | 255.92M | 247.91M | 228.08M | 196.17M | 192.83M | 177.95M | 166.01M | 155.53M | 185.65M | 254.02M | 253.87M | 156.61M | 143.34M | 134.46M | 118.39M |
| SG&A % of Revenue | - | - | 34.23% | 33.53% | 32.46% | 35.77% | 36.56% | 27.63% | 25.96% | 25.62% | 21.44% | 22.32% | 20.59% | 18.59% | 20.96% | 19.94% | 17.12% | 16.2% | 12.96% | 12.55% | 14.5% | 13.82% | 20.63% | 27.28% | 21.48% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 775.63M | 1.14B | 228.58M | 68.72M | 501.85M | 502.11M | 450.49M | 176.75M | 286.29M | 226.68M | 398.81M | 420.64M | 469.52M | 465.53M | 274.5M | 321.79M | 302.45M | 215.7M | 44.74M | 57.15M | 102.39M | 279.26M | 234.41M | 46.4M | 76.22M |
| Operating Margin % | 36.3% | 50.58% | 12.38% | 3.79% | 27.62% | 35.41% | 32.82% | 10.53% | 17.04% | 19.24% | 33.41% | 37.87% | 42.38% | 44.12% | 29.85% | 36.06% | 31.19% | 22.46% | 3.12% | 2.82% | 5.85% | 24.64% | 33.73% | 9.41% | 13.83% |
| Operating Income Growth % | - | 400.86% | 232.66% | -86.31% | -0.05% | 11.46% | 154.88% | -38.26% | 26.3% | -43.16% | -5.19% | -10.41% | 0.86% | 69.59% | -14.69% | 6.39% | 40.22% | 382.11% | -21.71% | -44.19% | -63.33% | 19.13% | 405.23% | -39.12% | - |
| EBITDA | 839.3M | 1.18B | 361.11M | 214.11M | 678.09M | 634.43M | 648.96M | 369.41M | 470.98M | 364.51M | 521.36M | 544.38M | 577.49M | 545.02M | 391.29M | 425.26M | 403.45M | 331.74M | 186.34M | 318.53M | 269.58M | 384.37M | 331.14M | 147.77M | 170.08M |
| EBITDA Margin % | 39.28% | 52.07% | 19.55% | 11.8% | 37.32% | 44.75% | 47.28% | 22.02% | 28.03% | 30.94% | 43.67% | 49.01% | 52.13% | 51.66% | 42.54% | 47.65% | 41.6% | 34.55% | 13.01% | 15.74% | 15.4% | 33.91% | 47.65% | 29.98% | 30.86% |
| EBITDA Growth % | 131.54% | 226.34% | 68.66% | -68.42% | 6.88% | -2.24% | 75.68% | -21.57% | 29.21% | -30.09% | -4.23% | -5.73% | 5.96% | 39.29% | -7.99% | 5.4% | 21.62% | 78.02% | -41.5% | 18.16% | -29.86% | 16.07% | 124.09% | -13.12% | - |
| D&A (Non-Cash Add-back) | 63.67M | 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 | 103.47M | 101M | 116.04M | 141.6M | 261.38M | 167.19M | 105.11M | 96.72M | 101.38M | 93.86M |
| EBIT | 723.71M | 1.02B | 228.58M | 68.72M | 501.85M | 502.11M | 450.49M | 176.75M | 286.29M | 226.68M | 398.81M | 420.64M | 469.52M | 465.53M | 274.5M | 321.79M | 302.45M | 215.7M | 44.74M | 57.15M | 102.39M | 279.26M | 234.41M | 46.4M | 76.22M |
| Net Interest Income | 388.96M | 369.06M | 292.86M | 264.71M | 312.67M | 347.6M | 289.58M | 249.35M | 254.36M | 305.24M | 372.56M | 431.9M | 436.56M | 413.88M | 345.29M | 364.56M | 371.07M | 235.34M | 187.89M | 244.61M | 308.46M | 329M | 398.17M | 178.61M | 190.9M |
| Interest Income | 870.38M | 866.01M | 973.4M | 1.11B | 742.81M | 523.84M | 619.66M | 948.68M | 924.27M | 770.43M | 760.75M | 734.11M | 709.8M | 644.81M | 613.85M | 592.85M | 603.93M | 620.21M | 1.21B | 1.75B | 1.55B | 949.11M | 652.78M | 375.3M | 425.91M |
| Interest Expense | 481.42M | 496.95M | 680.54M | 845.09M | 430.14M | 176.23M | 330.07M | 699.33M | 669.91M | 465.19M | 388.18M | 302.21M | 273.24M | 230.94M | 268.57M | 228.29M | 232.86M | 384.86M | 1.03B | 1.5B | 1.24B | 620.11M | 254.61M | 196.69M | 235.01M |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 495.85M | 526.33M | 228.58M | 68.72M | 501.85M | 502.11M | 450.49M | 176.75M | 286.29M | 226.68M | 398.81M | 420.64M | 469.52M | 465.53M | 274.5M | 321.79M | 302.45M | 215.7M | 44.74M | 57.15M | 102.39M | 279.26M | 234.41M | 46.4M | 76.22M |
| Pretax Margin % | 23.2% | 23.25% | 12.38% | 3.79% | 27.62% | 35.41% | 32.82% | 10.53% | 17.04% | 19.24% | 33.41% | 37.87% | 42.38% | 44.12% | 29.85% | 36.06% | 31.19% | 22.46% | 3.12% | 2.82% | 5.85% | 24.64% | 33.73% | 9.41% | 13.83% |
| Income Tax | 123.04M | 127.99M | 52.67M | 19.39M | 113.1M | 115.82M | 100.86M | 35.45M | 58.77M | 64.86M | 141.31M | 152.38M | 160.24M | 161.19M | 96.08M | 117.45M | 113.42M | 76.57M | 17.9M | 21.72M | 36.24M | 100.58M | 85.24M | 19.3M | 27.68M |
| Effective Tax Rate % | 24.81% | 24.32% | 23.04% | 28.21% | 22.54% | 23.07% | 22.39% | 20.06% | 20.53% | 28.61% | 35.43% | 36.23% | 34.13% | 34.63% | 35% | 36.5% | 37.5% | 35.5% | 40% | 38% | 35.39% | 36.02% | 36.36% | 41.59% | 36.32% |
| Net Income | 417.04M | 428.47M | 184.04M | 89.83M | 406.9M | 393.29M | 352.44M | 141.8M | 227.91M | 173.17M | 256.75M | 267.98M | 307.61M | 302.67M | 178M | 204.34M | 189.03M | 139.13M | 28.66M | 32.85M | 65.92M | 178.07M | 149.18M | 27.1M | 48.54M |
| Net Margin % | 19.52% | 18.93% | 9.97% | 4.95% | 22.4% | 27.74% | 25.68% | 8.45% | 13.56% | 14.7% | 21.51% | 24.13% | 27.77% | 28.69% | 19.35% | 22.9% | 19.49% | 14.49% | 2% | 1.62% | 3.76% | 15.71% | 21.47% | 5.5% | 8.81% |
| Net Income Growth % | 115.86% | 132.81% | 104.89% | -77.92% | 3.46% | 11.59% | 148.54% | -37.78% | 31.62% | -32.55% | -4.19% | -12.88% | 1.63% | 70.04% | -12.89% | 8.09% | 35.87% | 385.4% | -12.76% | -50.16% | -62.98% | 19.37% | 450.42% | -44.16% | - |
| Net Income (Continuing) | 372.82M | 398.35M | 175.91M | 49.33M | 388.75M | 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 | 66.16M | 178.68M | 149.18M | 27.1M | 48.54M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.82M | -2.58M | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -125.28M | -108.56M | -50.65M | -53.64M | 943K | 1.63M | -3.69M | 4.38M | 10.31M | 15.86M | 9.27M | 7.73M | 230K | 328K | 5K | 0 | 0 | 0 | 0 | 0 | 0 | 626K | 0 | 0 | -376K |
| EPS (Diluted) | 11.56 | 11.58 | 5.02 | 2.39 | 10.63 | 10.20 | 9.02 | 3.54 | 5.57 | 4.14 | 6.02 | 5.89 | 6.62 | 6.50 | 3.76 | 4.24 | 3.81 | 2.78 | 0.58 | 0.66 | 1.27 | 3.37 | 2.78 | 0.60 | 1.08 |
| EPS Growth % | 116.63% | 130.68% | 110.04% | -77.52% | 4.22% | 13.08% | 154.8% | -36.45% | 34.54% | -31.23% | 2.21% | -11.03% | 1.85% | 72.87% | -11.32% | 11.29% | 37.05% | 379.31% | -12.12% | -48.03% | -62.31% | 21.22% | 363.33% | -44.44% | - |
| EPS (Basic) | - | 11.58 | 5.02 | 2.39 | 10.63 | 10.20 | 9.02 | 3.54 | 5.64 | 4.14 | 6.02 | 5.89 | 6.62 | 6.50 | 3.76 | 4.24 | 3.82 | 2.79 | 0.58 | 0.66 | 1.27 | 3.37 | 2.78 | 0.60 | 1.08 |
| Diluted Shares Outstanding | 36.08M | 36.33M | 36.64M | 37.42M | 37.6M | 37.94M | 38.51M | 39.52M | 40.91M | 41.79M | 42.67M | 45.53M | 46.47M | 46.57M | 47.37M | 48.16M | 49.33M | 49.69M | 49.1M | 49.73M | 53.59M | 53.76M | 53.65M | 45.17M | 44.97M |
| Basic Shares Outstanding | 36.08M | 36.33M | 36.64M | 37.42M | 37.6M | 37.94M | 38.51M | 39.52M | 40.42M | 41.38M | 42.22M | 45.05M | 46.47M | 46.17M | 47.01M | 48.16M | 49.13M | 49.48M | 49.1M | 49.62M | 53.59M | 53.76M | 53.65M | 45.17M | 44.97M |
| Dividend Payout Ratio | - | 10.03% | 22.19% | 43.88% | 9% | 8.76% | 9.02% | 20.79% | 11.78% | 13.92% | 8.25% | 7.1% | 6.03% | 6.13% | 37.21% | 8.69% | 18.06% | 2.51% | 12.06% | 42.06% | - | - | - | - | 6.17% |
Regulatory and interest rate volatility
Based on reported quarterly figures, Nelnet's top-line performance exhibits significant volatility, with revenue fluctuating between $434.2 million and $612.8 million over the last ten quarters, reflecting the complex interplay between legacy loan servicing runoff and the capital-intensive expansion of the Allo fiber-optic communications segment.
The lack of consistent sequential revenue growth suggests that the company is in a transitional phase where legacy cash flows are being redeployed into infrastructure. Investors should monitor whether the growth in the EdTech and communications segments can eventually offset the structural decline inherent in the FFELP student loan portfolio.
As reported in financial statements, gross margins have demonstrated a notable upward trend, climbing from 49.6% in 2023Q4 to 86.6% by 2026Q1, which suggests an improving mix toward higher-margin software and services relative to the more capital-intensive infrastructure and legacy servicing operations.
This margin expansion appears to indicate successful operational leverage within the EdTech segment, which likely benefits from high-margin recurring revenue. However, the sustainability of these margins warrants further investigation, as they may be sensitive to the competitive pricing environment in fiber-optic services and potential shifts in federal servicing contracts.
According to recent income statement data, operating income has scaled significantly from a loss of $39.6 million in 2023Q4 to $207.3 million in 2026Q1, indicating that the company is successfully managing its overhead costs despite the ongoing capital requirements of its diverse business units.
The ability to turn operating losses into substantial profits suggests that management is achieving better control over SG&A expenses. This trend may imply that the initial heavy investment phase for new business lines is beginning to yield operating efficiencies that flow directly to the bottom line.
Based on the provided data, net income has shown extreme variability, ranging from a loss of $8.6 million to a peak of $181.5 million, which highlights the impact of non-operating items and derivative market-to-market adjustments that frequently distort the company's core earnings capacity.
The erratic nature of net income suggests that GAAP figures may not accurately reflect the underlying cash-generating potential of the business. Analysts should focus on core operating performance, as the reported net income is heavily influenced by factors that do not necessarily correlate with the long-term health of the core segments.
While the company shows improved profitability, the significant capital expenditure required for the Allo fiber expansion, as evidenced by the historical operating margin compression in 2024, suggests that the business remains vulnerable to high-cost infrastructure cycles that could pressure future free cash flow generation.
Short-term observers may argue that the reliance on capital-intensive fiber deployment creates a permanent drag on the balance sheet that is not fully captured by current margin improvements. Investors should monitor whether the return on invested capital for these infrastructure projects can justify the ongoing capital intensity compared to the company's legacy, capital-light servicing model.
Quick answers to the most common questions about buying NNI stock.
Nelnet, Inc. (NNI) is profitable, generating $428.5M in net income for the fiscal year ending 2025 with a net profit margin of 18.9%.
Nelnet, Inc. (NNI) reported an operating income of $1.14B, resulting in an operating profit margin of 50.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Nelnet, Inc. (NNI) generated $1.97B 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.