Operating margins have demonstrated significant instability, oscillating from a negative 8.8% in 2024Q3 to a peak of 46.8% in 2025Q1, suggesting limited flexibility in the firm's fixed cost base.
| 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 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 2.25B | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 1.09B | 1.65B | 1.44B | 1.46B | 1.19B | 2.06B | 1.71B | 1.32B | 1.12B | 940.55M | 800.75M | 795.04M | 650.23M | 691.04M | 608.76M | 1.96B | 3.08B | 1.94B | 1.12B | 1.02B | 3.34B | 3.26B | 3.67B | 2.99B | 2.12B | 1.78B | 1.3B | 1.11B | 1.11B | 1.25B | 1.01B |
| Gross Margin % | 48.67% | 53.11% | 48.22% | 51.56% | 50.29% | 85.51% | 72.89% | 55.38% | 59.27% | 65.57% | 69.87% | 78.43% | 78.19% | 81.35% | 80.33% | 34.69% | 45.48% | 31.8% | 14.42% | 11.17% | 38.18% | 49.95% | 70.39% | 71.89% | 61.61% | 44.8% | 31.14% | 34.06% | 36.16% | 32.77% | 27.82% |
| Gross Profit Growth % | - | 14.66% | -1.59% | 23.02% | -42.24% | 20.69% | 29.51% | 18.07% | 18.69% | 17.46% | 0.72% | 22.27% | -5.91% | 13.52% | -68.99% | -36.31% | 59.11% | 73.47% | 9.64% | -69.52% | 2.63% | -11.35% | 22.8% | 41.27% | 19.11% | 37.01% | 16.85% | -0.07% | -11.37% | 24.61% | 49.48% |
| Operating Expenses | 503.74M | 655.59M | 641.9M | 685.57M | 559.24M | 519.91M | 552.97M | 574.25M | 556.98M | 449.09M | 386.31M | 355.97M | 316.48M | 274.52M | 266.89M | 1.04B | 1.99B | 1.13B | 1.15B | 1.51B | 1.35B | 1.14B | 1.12B | 807.87M | 893.68M | 1.17B | 596.4M | 369.3M | 371.51M | 504.5M | 416.4M |
| OpEx % of Revenue | - | 21.08% | 21.49% | 24.14% | 23.63% | 21.58% | 23.61% | 24.13% | 29.57% | 31.31% | 33.71% | 35.12% | 38.06% | 32.32% | 35.22% | 18.34% | 29.4% | 18.54% | 14.87% | 16.56% | 15.38% | 17.47% | 21.39% | 19.42% | 26.01% | 29.49% | 14.31% | 11.33% | 12.09% | 13.19% | 11.51% |
| Selling, General & Admin | 276.87M | 380.11M | 400.99M | 372.32M | 291.29M | 281.69M | 304.45M | 311.08M | 285.13M | 242.27M | 203.21M | 173.32M | 135.86M | 106.8M | 109.58M | 493M | 561M | 540M | 570.43M | 728.1M | 703.21M | 625.02M | 497.17M | 435.93M | 376.38M | 362.9M | 280.89M | 138.6M | 189.9M | 224.6M | 206.3M |
| SG&A % of Revenue | - | 12.22% | 13.42% | 13.11% | 12.31% | 11.69% | 13% | 13.07% | 15.14% | 16.89% | 17.73% | 17.1% | 16.34% | 12.57% | 14.46% | 8.71% | 8.28% | 8.87% | 7.37% | 7.98% | 8.04% | 9.59% | 9.53% | 10.48% | 10.95% | 9.15% | 6.74% | 4.25% | 6.18% | 5.87% | 5.7% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 589.44M | 992.56M | 798.64M | 778.3M | 630.73M | 1.54B | 1.15B | 743.74M | 559.33M | 491.46M | 414.44M | 439.06M | 333.75M | 416.53M | 341.87M | 925M | 1.09B | 808M | -34.21M | -492.08M | 2B | 2.12B | 2.56B | 2.18B | 1.22B | 607.32M | 700.9M | 740.9M | 739.5M | 749.1M | 589.6M |
| Operating Margin % | 26.22% | 31.92% | 26.73% | 27.41% | 26.66% | 63.93% | 49.28% | 31.25% | 29.7% | 34.26% | 36.16% | 43.31% | 40.13% | 49.03% | 45.11% | 16.35% | 16.09% | 13.27% | -0.44% | -5.4% | 22.8% | 32.49% | 49.01% | 52.47% | 35.6% | 15.31% | 16.82% | 22.73% | 24.07% | 19.58% | 16.3% |
| Operating Income Growth % | - | 24.28% | 2.61% | 23.4% | -59.05% | 33.47% | 55.16% | 32.97% | 13.81% | 18.59% | -5.61% | 31.55% | -19.87% | 21.84% | -63.04% | -15.14% | 34.9% | 2461.68% | 93.05% | -124.66% | -5.77% | -17.19% | 17.13% | 78.43% | 101.44% | -13.35% | -5.4% | 0.19% | -1.28% | 27.05% | 16.15% |
| EBITDA | 599.19M | 995.32M | 816.29M | 796.11M | 648.06M | 1.56B | 1.17B | 758.41M | 573.16M | 502.64M | 424.03M | 447.98M | 343.14M | 424.9M | 361.83M | 946M | 1.13B | 847M | -34.21M | -492.08M | 2B | 2.12B | 2.56B | 2.18B | 1.22B | 607.32M | 700.9M | 740.9M | 739.5M | 749.1M | 589.6M |
| EBITDA Margin % | 26.66% | 32.01% | 27.33% | 28.04% | 27.39% | 64.6% | 49.92% | 31.87% | 30.43% | 35.04% | 37% | 44.19% | 41.26% | 50.02% | 47.75% | 16.72% | 16.66% | 13.91% | -0.44% | -5.4% | 22.8% | 32.49% | 49.01% | 52.47% | 35.6% | 15.31% | 16.82% | 22.73% | 24.07% | 19.58% | 16.3% |
| EBITDA Growth % | -27.89% | 21.93% | 2.54% | 22.85% | -58.36% | 33.12% | 54.15% | 32.32% | 14.03% | 18.54% | -5.35% | 30.55% | -19.24% | 17.43% | -61.75% | -16.21% | 33.29% | 2575.67% | 93.05% | -124.66% | -5.77% | -17.19% | 17.13% | 78.43% | 101.44% | -13.35% | -5.4% | 0.19% | -1.28% | 27.05% | 16.15% |
| D&A (Non-Cash Add-back) | 9.74M | 2.76M | 17.65M | 17.81M | 17.33M | 16.04M | 15.07M | 14.67M | 13.83M | 11.17M | 9.59M | 8.92M | 9.39M | 8.38M | 19.96M | 21M | 39M | 39M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EBIT | 589.44M | 992.56M | 798.64M | 778.3M | 630.73M | 1.54B | 1.15B | 743.74M | 559.33M | 491.46M | 414.44M | 439.06M | 333.75M | 416.53M | 341.87M | 925M | 1.09B | 808M | -34.21M | -492.08M | 2B | 2.12B | 2.56B | 2.18B | 1.22B | 607.32M | 700.9M | 740.9M | 739.5M | 749.1M | 589.6M |
| Net Interest Income | 1.13B | 1.5B | 1.48B | 1.56B | 1.49B | 1.39B | 1.48B | 1.62B | 1.41B | 1.13B | 891.34M | 702.5M | 578.48M | 462.12M | 408.37M | 3.53B | 3.48B | 1.72B | 1.36B | 1.59B | 1.45B | 1.45B | 1.3B | 1.33B | 1.01B | 873.42M | 641.79M | 693.8M | 651.3M | 781.2M | 894.3M |
| Interest Income | 1.97B | 2.63B | 2.62B | 2.59B | 2.03B | 1.78B | 2.02B | 2.33B | 1.94B | 1.44B | 1.08B | 831.12M | 674.29M | 551.2M | 491.28M | 5.93B | 5.75B | 4.76B | 7.27B | 8.67B | 6.58B | 4.51B | 2.73B | 2.35B | 2.21B | 3B | 3.48B | 2.81B | 2.58B | 3.31B | 3.48B |
| Interest Expense | 844.31M | 1.13B | 1.14B | 1.03B | 542.8M | 382.08M | 541.67M | 707.72M | 522.29M | 308.08M | 185.91M | 128.62M | 95.81M | 89.08M | 82.91M | 2.4B | 2.27B | 3.04B | 5.91B | 7.09B | 5.12B | 3.06B | 1.43B | 1.02B | 1.2B | 2.12B | 2.84B | 2.11B | 1.93B | 2.53B | 2.58B |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 893.84M | 992.56M | 798.64M | 778.3M | 630.73M | 1.54B | 1.15B | 743.74M | 559.33M | 491.46M | 414.44M | 439.06M | 333.75M | 416.53M | 341.87M | 925M | 1.09B | 808M | -34.21M | -492.08M | 2B | 2.12B | 2.56B | 2.18B | 1.22B | 607.32M | 700.9M | 740.9M | 739.5M | 749.1M | 589.6M |
| Pretax Margin % | 39.77% | 31.92% | 26.73% | 27.41% | 26.66% | 63.93% | 49.28% | 31.25% | 29.7% | 34.26% | 36.16% | 43.31% | 40.13% | 49.03% | 45.11% | 16.35% | 16.09% | 13.27% | -0.44% | -5.4% | 22.8% | 32.49% | 49.01% | 52.47% | 35.6% | 15.31% | 16.82% | 22.73% | 24.07% | 19.58% | 16.3% |
| Income Tax | 149.14M | 247.72M | 190.31M | 196.91M | 161.71M | 379.75M | 273.32M | 165.46M | 71.85M | 202.53M | 164.11M | 164.78M | 139.97M | 158.93M | 126.14M | 328M | 493M | 264M | -36.69M | 408.27M | 834.31M | 728.77M | 642.69M | 779.38M | 431.4M | 223.32M | 235.88M | 240.1M | 238M | 241.2M | 180.9M |
| Effective Tax Rate % | 16.68% | 24.96% | 23.83% | 25.3% | 25.64% | 24.65% | 23.68% | 22.25% | 12.85% | 41.21% | 39.6% | 37.53% | 41.94% | 38.16% | 36.9% | 35.46% | 45.23% | 32.67% | 107.25% | -82.97% | 41.81% | 34.42% | 25.13% | 35.7% | 35.26% | 36.77% | 33.65% | 32.41% | 32.18% | 32.2% | 30.68% |
| Net Income | 744.71M | 744.85M | 608.33M | 581.39M | 469.01M | 1.16B | 880.69M | 578.28M | 487.48M | 288.93M | 250.33M | 274.28M | 194.22M | 258.94M | 217.62M | 633M | 530M | 324M | -212.63M | -896.39M | 1.16B | 1.38B | 1.91B | 1.53B | 792M | 384M | 465.02M | 500.8M | 501.5M | 507.9M | 408.7M |
| Net Margin % | 33.13% | 23.95% | 20.36% | 20.48% | 19.82% | 48.17% | 37.61% | 24.3% | 25.88% | 20.14% | 21.84% | 27.06% | 23.36% | 30.48% | 28.72% | 11.19% | 7.82% | 5.32% | -2.75% | -9.83% | 13.22% | 21.21% | 36.67% | 36.86% | 23.05% | 9.68% | 11.16% | 15.36% | 16.32% | 13.28% | 11.3% |
| Net Income Growth % | 19.55% | 22.44% | 4.63% | 23.96% | -59.59% | 31.77% | 52.3% | 18.63% | 68.72% | 15.42% | -8.73% | 41.22% | -25% | 18.99% | -65.62% | 19.43% | 63.58% | 252.38% | 76.28% | -177.48% | -16.3% | -27.75% | 24.76% | 93.63% | 106.25% | -17.42% | -7.15% | -0.14% | -1.26% | 24.27% | -17.67% |
| Net Income (Continuing) | 744.71M | 744.85M | 608.33M | 581.39M | 469.01M | 1.16B | 880.69M | 578.28M | 487.48M | 288.93M | 250.33M | 274.28M | 193.78M | 257.59M | 215.73M | 597M | 597M | 544M | 2.48M | -900.36M | 1.16B | 1.39B | 1.91B | 1.4B | 792M | 384M | 465.02M | 500.8M | 501.5M | 507.9M | 408.7M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 106M | 1M | 35M | -67M | -220M | -215.11M | 6.28M | -4.01M | -6.41M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4.67M | 6M | 8M | 0 | 13K | 7.27M | 11.36M | 9.12M | 9.18M | 71.63M | 0 | 0 | 0 | 213.88M | 213.9M | 213.9M | 213.9M | 0 |
| EPS (Diluted) | 3.76 | 3.46 | 2.68 | 2.41 | 1.76 | 3.61 | 2.25 | 1.34 | 1.07 | 0.62 | 0.53 | 0.59 | 0.42 | 3.12 | 1.90 | 1.18 | 0.94 | 0.38 | -0.69 | -2.17 | 2.63 | 3.05 | 4.02 | 3.31 | 1.64 | 0.76 | 0.92 | 1.02 | 0.98 | 0.93 | 0.70 |
| EPS Growth % | 29.5% | 29.1% | 11.2% | 36.93% | -51.25% | 60.44% | 67.91% | 25.23% | 72.58% | 16.98% | -10.17% | 40.48% | -86.54% | 64.21% | 61.02% | 25.53% | 147.37% | 155.07% | 68.2% | -182.51% | -13.77% | -24.13% | 21.45% | 101.83% | 115.79% | -17.39% | -9.8% | 4.08% | 5.38% | 32.86% | 1.45% |
| EPS (Basic) | - | 3.52 | 2.73 | 2.44 | 1.78 | 3.67 | 2.27 | 1.35 | 1.08 | 0.63 | 0.54 | 0.60 | 0.43 | 3.18 | 1.93 | 1.19 | 0.94 | 0.38 | -0.69 | -2.17 | 2.73 | 3.25 | 4.39 | 3.39 | 1.69 | 0.78 | 0.95 | 1.04 | 1.00 | 0.93 | 0.70 |
| Diluted Shares Outstanding | 197.88M | 207.16M | 219.93M | 234.06M | 261.5M | 319.91M | 387.19M | 430.67M | 439.68M | 438.55M | 432.92M | 432.23M | 432.27M | 440M | 476M | 517M | 488M | 472M | 466.64M | 412.23M | 451.17M | 460.26M | 475.79M | 463.33M | 475.91M | 490.2M | 493.06M | 489.47M | 510.2M | 548.82M | 440.67M |
| Basic Shares Outstanding | 195.46M | 207.16M | 216.22M | 231.41M | 258.44M | 314.99M | 383.7M | 427.29M | 435.05M | 431.22M | 427.88M | 425.57M | 423.97M | 439.62M | 476M | 517M | 487M | 471M | 466.64M | 412.23M | 410.81M | 418.37M | 436.13M | 452.04M | 461.83M | 477.23M | 478.45M | 481.73M | 503.05M | 544.66M | 438.57M |
| Dividend Payout Ratio | - | 93.98% | 16.3% | 17.41% | 24.08% | 5.21% | 5.26% | 8.84% | - | - | - | - | - | 101.95% | 108.91% | 24.33% | 0.03% | 0.07% | - | - | 34.44% | 25.71% | 16.79% | 18.15% | 17.96% | 32.92% | 24.98% | 19.79% | 19% | 18.43% | 22.27% |
Regulatory and FAFSA disruption
As reported in recent financial statements, SLM's gross margin has exhibited significant quarterly variance, swinging from a low of 16.6% in 2024Q3 to a peak of 65.6% in 2024Q1, suggesting that the company's spread-based business model remains highly sensitive to external funding costs and credit provision adjustments.
The wide fluctuations in gross margin appear to reflect the impact of CECL accounting, where periodic adjustments to lifetime loss expectations create non-linear impacts on reported profitability. Investors should monitor whether these margin swings represent structural shifts in the cost of funds or merely accounting noise related to the timing of loan loss provisioning.
Based on the provided income statement data, SLM's operating margin has demonstrated a lack of consistent scaling, oscillating between a negative 8.8% in 2024Q3 and a robust 46.8% in 2025Q1, which indicates that the company's fixed cost base may be less flexible than previously assumed by market participants.
While SG&A expenses have remained relatively contained within a narrow range, the lack of operating leverage during revenue troughs suggests that the company's servicing and compliance infrastructure requires a baseline level of investment regardless of origination volume. This rigidity may limit the company's ability to protect margins during periods of cyclical demand contraction.
According to the company's quarterly filings, net income has shown extreme volatility, including a net loss of $45.2 million in 2024Q3, which highlights how the front-loading of credit loss provisions under CECL can obscure the underlying cash-generating capability of the core student loan portfolio.
The divergence between EPS performance and operational revenue suggests that investors should focus on pre-provision net revenue to gauge true earnings power. Furthermore, the inconsistent impact of stock-based compensation, which reached a negative $31.5 million in 2025Q4, warrants further investigation into the company's equity incentive accounting practices.
Data from the last ten quarters suggests that SLM's profitability is highly susceptible to sudden compression, as evidenced by the sharp margin decline in 2024Q3, which may indicate that the company's competitive moat is not sufficient to fully insulate it from broader macroeconomic and regulatory headwinds.
Short-sellers might focus on the company's reliance on securitization gains and the potential for future FAFSA-related disruptions to permanently impair origination volumes. The inconsistency in quarterly performance suggests that the market may be overestimating the predictability of SLM's earnings in a volatile interest rate environment.
Quick answers to the most common questions about buying SLM stock.
SLM Corporation (SLM) is profitable, generating $744.8M in net income for the fiscal year ending 2025 with a net profit margin of 24.0%.
SLM Corporation (SLM) reported an operating income of $992.6M, resulting in an operating profit margin of 31.9%. This margin reflects the operational efficiency of the business before interest and taxes.
SLM Corporation (SLM) generated $1.65B in gross profit for the year, representing a gross profit margin of 53.1%. This demonstrates the company's core pricing power and production efficiency.