Nelnet, Inc. (NNI): Business Model Canvas [Dec-2025 Updated]

You're probably looking at Nelnet, Inc. (NNI) and immediately thinking about student loan servicing, but honestly, after years analyzing these structures, their real story in late 2025 is about successful, complex diversification. They aren't just managing a $508.7 billion loan book; they are actively building revenue streams through their bank, which holds about $1.73 billion in deposits, and their Education Technology segment, which brought in $129.3 million in fees in Q3 2025 alone. To really grasp how this firm balances massive government contracts with a growing fiber investment and banking arm, you need to see the whole picture-check out the precise breakdown of their nine building blocks below.

Nelnet, Inc. (NNI) - Canvas Business Model: Key Partnerships

You're looking at the critical external relationships Nelnet, Inc. relies on to execute its diversified strategy. These aren't just vendors; they are foundational to their servicing volume and growth in EdTech.

U.S. Department of Education (Unified Servicing and Data Solution contract)

Nelnet Diversified Services secured a spot on the Unified Servicing and Data Solution (USDS) contract. This is a multiple-award Indefinite Delivery/Indefinite Quantity (IDIQ) vehicle valued at a potential $16 billion. The initial base period is 5 years, with options extending up to 10 years. Nelnet's specific task orders under this vehicle have seen activity through November 20, 2025. One reported contract award amount was $398.4 Million, with an outlayed amount of $673.7 Million as of that date. The total loan servicing volume under USDS is allocated among five servicers, covering more than 37 million borrowers with federally managed loans.

Financial institutions for private loan servicing (e.g., Discover, SoFi Lending Corp.)

The successful onboarding of major private loan portfolios drove significant revenue growth in early 2025. Private and consumer loan servicing revenue reached $22.7 million for the three months ended March 31, 2025, compared to $12.6 million for the same period in 2024. This growth followed the conversion of the Discover Financial Services portfolio, which involved approximately 500,000 borrowers and a portfolio size of about $10.4 billion in 2024. The partnership with SoFi Lending Corp. began managing over 250,000 existing education refinance and private student loans. Overall, as of March 31, 2025, Nelnet serviced $542.3 billion in various loans for 15.6 million borrowers.

Wilmington Trust, National Association (Indenture Trustee for securitizations)

Wilmington Trust, National Association acts as the Indenture Trustee for Nelnet's private education loan securitizations, a key part of funding and asset management. Here are the details for two recent trusts:

Trust Name	Date of Issue	Total Issue Amount	Class A-1A Fixed Rate Notes	Class A-1B Floating Rate Notes
Nelnet Student Loan Trust 2025-A	March 26, 2025	$1,030,000,000	$424,000,000	Not specified
Nelnet Student Loan Trust 2025-B	August 15, 2025	$1,545,215,000	$625,000,000	$625,000,000

The Class A-1A notes for the 2025-B trust carried a rate of 4.84%.

K-12 schools and higher education institutions (for EdTech/payments)

Nelnet Business Services (NBS) maintains deep ties across the education sector through its FACTS brand and payment solutions. The FACTS brand supports almost 11,000 private K-12 institutions. For higher education, Nelnet's tools support modernization for over 8 million U.S. students and families across post-secondary institutions.

ALLO Communications LLC (Nelnet retains a 27% ownership interest)

Nelnet finalized a transaction in June 2025 regarding its investment in ALLO Holdings LLC. The transaction resulted in cash proceeds to Nelnet of $411 million and the recognition of a pre-tax gain of $175 million. Following this redemption, Nelnet's voting equity stake in ALLO decreased from 45% to 27%. Nelnet accounts for this remaining interest under the Hypothetical Liquidation at Book Value (HLBV) method, with a carrying value of $0 as of the closing date.

You need to track the servicing volume growth against these key partners. Finance: draft 13-week cash view by Friday.

Nelnet, Inc. (NNI) - Canvas Business Model: Key Activities

You're looking at the core engine of Nelnet, Inc. (NNI) operations as of late 2025. These are the things the company absolutely has to do well to keep the lights on and grow. Honestly, the sheer scale of the servicing operation is the first thing that jumps out.

Loan Servicing Scale

The Loan Servicing and Systems segment is a massive undertaking. As of September 30, 2025, Nelnet, Inc. was actively servicing a portfolio totaling $508.7 billion in various loans-government-owned, FFELP (Federal Family Education Loan Program), private education, and consumer loans. That servicing activity supports a staggering 14.2 million borrowers. This activity is the backbone, generating fee-based revenue for the Nelnet Diversified Services (NDS) segment.

Here's a quick look at the servicing scope:

• Servicing Volume: $508.7 billion
• Borrowers Supported: 14.2 million
• Segment Net Income (Q3 2025): $35.2 million

Generating Net Interest Income

The Asset Generation and Management (AGM) portfolio is key for generating net interest income (NII), which is the spread between what Nelnet earns on its assets and what it pays on its liabilities. For the third quarter of 2025, the AGM operating segment reported loan and investment NII of $44.7 million. This performance was helped by an increase in loan spread, though it was partially offset by the expected runoff of the legacy FFELP loan portfolio. The average balance of loans outstanding for AGM decreased to $8.8 billion for Q3 2025 from $9.8 billion in Q3 2024.

Technology Platform Development and Maintenance

To manage that scale and drive efficiency, developing and maintaining proprietary platforms is a critical activity. Nelnet uses these systems to support its own operations and to offer services to partners. For instance, the Education Technology Services and Payments (NBS) segment continues to invest in new technologies, which impacted its operating margin in 2025 compared to 2024. The company highlights its Nelnet Velocity platform, which is described as a flexible, cloud-based, and truly API-first solution designed to speed up development and simplify system integration for loan servicing. Separately, a part of the business currently services loans for 2.4 million borrowers on proprietary technology platforms, specifically referencing Canadian student loan servicing.

Nelnet Bank Portfolio Management

Nelnet Bank is central to the strategy of diversifying assets outside of legacy student loan servicing. As of September 30, 2025, Nelnet Bank held total assets of $2.00 billion. This asset base is split between its loan and investment portfolios, which you can see broken down here:

Portfolio Component (As of 9/30/2025) Amount (USD) Total Assets $2.00 billion Loan Portfolio $974.9 million Investment Portfolio $1.01 billion Total Deposits $1.73 billion

The bank's activity also includes generating NII. For the third quarter of 2025, Nelnet Bank reported loan and investment net interest income of $15.4 million. You should note they recognized a provision for loan losses of $3.8 million during that same quarter.

Campus Commerce and Refund Processing

The Nelnet Business Services (NBS) segment performs high-volume payment processing for higher education. A key activity here is processing Title IV refunds for institutions. In 2025 alone, Nelnet Campus Commerce processed more than 230,000 ACH refunds totaling over $602 million, and an additional more than 60,000 paper check refunds worth nearly $90 million. This service helps bursar offices streamline operations. The Campus Commerce division serves nearly 1,000 higher education institutions and reaches 8 million students across the U.S.

The key metrics for this payment processing activity are:

• ACH Refunds Processed (2025): Over 230,000
• Total ACH Refund Value (2025): Over $602 million
• Paper Check Refund Value (2025): Nearly $90 million
• Institutions Served: Nearly 1,000

If you're tracking the NBS segment, revenue for Q3 2025 was $129.3 million, with revenue less direct costs at $79.0 million.

Finance: draft 13-week cash view by Friday.

Nelnet, Inc. (NNI) - Canvas Business Model: Key Resources

You're looking at the core assets Nelnet, Inc. (NNI) relies on to run its diversified financial services and technology operations as of late 2025. These aren't just line items; they are the engines driving their business.

Proprietary loan servicing and payment technology platforms

Nelnet, Inc. (NNI) deploys advanced technology, including the Nelnet Velocity™ platform, which is cloud- and microservices-based. This technology supports their servicing operations, which as of September 30, 2025, managed a total servicing volume of $508.7 billion in loans for 14.2 million borrowers. The platform features a foundational set of RESTful APIs for core functions.

The technology stack supports various functions:

• Accepting payments.
• Managing customer information.
• Configuring loan programs.
• Delivering lender services.
• Reconciling transactions.
• Supporting user experiences with artificial intelligence enhancements.

A large, stable portfolio of federally insured FFELP student loans

While new FFELP originations stopped in 2010, the existing portfolio remains a significant resource, though it is expected to decline over time. The Asset Generation and Management (AGM) segment shows the current scale of owned loans:

The average balance of loans outstanding in the AGM segment decreased to $8.8 billion for the third quarter of 2025, down from $9.8 billion for the same period in 2024. This portfolio is a key source of interest income, though subject to runoff.

Nelnet Bank's deposit base of approximately $1.73 billion for funding

Nelnet Bank serves as a crucial funding source through its deposit-taking capabilities. As of September 30, 2025, Nelnet Bank reported total deposits, including intercompany deposits, of $1.73 billion. This deposit base supports the bank's loan and investment portfolio, which totaled $974.9 million (loans) and $1.01 billion (investments) respectively, as of that date.

Highly-skilled customer service and compliance personnel

The scale of operations requires substantial human capital, particularly in regulated areas like servicing and banking. Nelnet, Inc. (NNI) had more than 6,700 associates as of October 2025.

The compliance structure is supported by the regulatory framework Nelnet Bank operates under, including FDIC oversight and adherence to laws such as the Bank Secrecy Act/Anti-Money Laundering (BSA/AML).

Significant capital and liquidity positions for strategic investments

Nelnet, Inc. (NNI) maintains a strong balance sheet to support growth and stability. The company generated $663 million in cash from operating activities in 2024 alone.

Here are key figures reflecting their financial strength:

Financial Metric	Amount/Value	Date/Period
GAAP Net Income	$106.7 million	Third Quarter 2025
Total Equity (End of Year)	$3.3 billion	End of 2024
Total Equity-to-Assets Ratio	23.9 percent	End of 2024
Total Servicing Volume	$508.7 billion	As of September 30, 2025
Nelnet Bank Total Assets	$2.00 billion	As of September 30, 2025

The company explicitly stated they enhanced their capital and liquidity positions to be ready for strategic investments.

Finance: draft 13-week cash view by Friday.

Nelnet, Inc. (NNI) - Canvas Business Model: Value Propositions

You're looking at the core value Nelnet, Inc. (NNI) delivers across its diverse operations as of late 2025. It's not just one thing; it's a collection of essential services built on massive scale.

Reliable, compliant servicing for massive government and private loan portfolios

Nelnet, Inc. (NNI) manages an enormous volume of debt obligations. This scale is a value proposition in itself, showing operational capacity and regulatory comfort.

• Servicing volume as of September 30, 2025: $508.7 billion in government-owned, FFELP, private education, and consumer loans.
• Total borrowers under management: 14.2 million as of September 30, 2025.
• Q3 2025 non-recurring revenue from government servicing contract modification: $32.9 million.

The Loan Servicing and Systems segment reported revenue of $151.1 million for the third quarter of 2025. That's a big number built on handling compliance for millions of borrowers.

Integrated payment and commerce solutions for educational institutions

For schools, Nelnet, Inc. (NNI) offers the tech backbone to handle student finances smoothly. This segment keeps the gears turning for educational operations.

Metric	Value (Q3 2025)
Education Technology Services and Payments Revenue	$129.3 million
Revenue Less Direct Costs (EdTech/Payments)	$79.0 million

Access to private education loans and consumer lending through Nelnet Bank

Nelnet Bank provides direct access to capital markets for consumers needing private education refinancing or general unsecured consumer loans. The bank's balance sheet supports this lending activity.

• Nelnet Bank total assets as of September 30, 2025: $2.00 billion.
• Nelnet Bank loan and investment portfolio (combined) as of September 30, 2025: approximately $1.99 billion.
• Loan and investment net interest income for Q3 2025: $15.4 million.

The bank's total deposits, including intercompany deposits, stood at $1.73 billion on September 30, 2025.

High-speed fiber internet services via the ALLO Communications investment

Through its equity stake in ALLO Communications LLC, Nelnet, Inc. (NNI) participates in the high-speed fiber infrastructure space. This diversifies the revenue base away from pure finance.

• Nelnet, Inc. (NNI) voting membership interest in ALLO: 45 percent.
• ALLO Communications serves over 1.4 Million in population across 53 cities in Nebraska, Colorado, Arizona, and Missouri.

Honestly, that fiber network reach is a solid, tangible asset.

Financial stability and a diversified revenue base for shareholders

The consolidated results show a company generating significant profit from its varied segments. Investors see stability here, reflected in the valuation metrics.

Financial Measure	Amount / Ratio (Q3 2025)
GAAP Net Income	$106.7 million
Consolidated Revenue	$427.7 million
Price-to-Earnings Multiple	11 times
Total Consolidated Assets	$13.87 billion

The P/E of 11x suggests the market values the profit engine at a modest multiple against its current earnings.

Finance: draft the Q4 2025 cash flow projection by next Tuesday.

Nelnet, Inc. (NNI) - Canvas Business Model: Customer Relationships

You're looking at how Nelnet, Inc. manages its vast network of customers, which spans from federal agencies to individual borrowers and institutional partners. It's a multi-faceted approach, balancing high-volume automation with dedicated service tiers.

Contractual, long-term relationships with government agencies (Department of Education)

The relationship with the Department of Education forms the bedrock of the servicing business. This is a long-term, contractual commitment, recently transitioned to the new framework. Nelnet began earning revenue under its Unified Servicing and Data Solution (USDS) contract with the Department of Education starting April 1, 2024. To give you a sense of the scale managed under this relationship, as of September 30, 2025, Nelnet, Inc. was servicing a total of $508.7 billion in loans, which includes government-owned, FFELP, private education, and consumer loans, for 14.2 million borrowers. For context on recent financial recognition from this relationship, the third quarter of 2025 included $32.9 million in non-recurring revenue stemming from a contract modification related to services previously performed under the government servicing agreement.

Dedicated account management for large institutional clients (universities, K-12)

For institutional clients, the relationship shifts to dedicated management and specialized technology services. Nelnet Campus Commerce, for instance, is a key touchpoint for educational institutions regarding payments and financial services. For example, as recently as November 13, 2025, news highlighted that Nelnet Campus Commerce processed over $602 million in Title IV Refunds, showing the transactional volume managed for these clients. On the K-12 front, Nelnet is the leading provider of tuition management and financial needs assessment services for the private and faith-based market in the United States. Internationally, the Nelnet International brand serves approximately 675 schools across 69 countries.

Here's a snapshot of the scale of the servicing relationships as of late 2025:

Metric	Value (As of September 30, 2025)	Source Segment
Total Servicing Volume	$508.7 billion	Loan Servicing and Systems
Total Borrowers Serviced	14.2 million	Loan Servicing and Systems
Nelnet Bank Total Deposits	$1.73 billion	Nelnet Bank
Nelnet International Schools Served	675	Education Technology Services and Payments

Self-service digital portals and customer support for loan borrowers

For the millions of individual borrowers, the relationship is heavily mediated through digital channels, designed for efficiency and self-service. Borrowers with federal loans serviced by Nelnet access their accounts primarily through Nelnet.studentaid.gov. The company is committed to helping borrowers find repayment options, and they offer tools like the Loan Simulator. The sheer volume of users necessitates robust digital infrastructure. If you're struggling with payments, the portal guides you to explore different repayment plans.

The digital focus is clear in the servicing segment's operations.

• Borrowers with federal loans have accounts beginning with 'E'.
• The company provides customer service for Federal Direct Loan Program and FFEL Program loans.
• Borrowers can upload documents without logging in via a dedicated form.
• The company is focused on providing excellent service to both institutions and consumers.

Transactional and automated for payment processing services

The payment processing side, often under the Nelnet Business Services (NBS) umbrella, is highly transactional. This involves services like tuition management and integrated commerce payment platforms for institutions. The automation here is key to handling the high frequency of smaller transactions efficiently. The company continues to achieve efficiencies through technology and automation in its servicing segment, which helps manage costs.

Direct, relationship-based banking for Nelnet Bank customers

Nelnet Bank represents a more traditional, relationship-based banking interaction, focused on generating net interest income from its loan and investment portfolio. As of September 30, 2025, Nelnet Bank's total deposits, including intercompany deposits, stood at $1.73 billion. The bank's loan and investment portfolio totaled $974.9 million and $1.01 billion, respectively, at that same date. The bank's net income after tax for the third quarter of 2025 was positive, showing the stability of this direct customer funding base.

The bank's financial footing in late 2025 looked like this:

• Loan and Investment Portfolio (as of Sep 30, 2025): $974.9 million (loans) and $1.01 billion (investments).
• Total Deposits (as of Sep 30, 2025): $1.73 billion.
• Q3 2025 Loan and Investment Net Interest Income: $15.4 million.

Finance: draft 13-week cash view by Friday.

Nelnet, Inc. (NNI) - Canvas Business Model: Channels

You're looking at how Nelnet, Inc. (NNI) gets its services and products in front of customers across its diverse business lines. It's not just one pipeline; it's a network of direct relationships, digital platforms, and specialized sales efforts.

The primary channel for the massive student loan servicing operation is direct contractual relationships. Nelnet Servicing, LLC is one of the five private sector entities currently holding student loan servicing contracts directly with the U.S. Department of Education (ED). This channel also includes servicing private education and consumer loans for third parties, including portfolio conversions from entities like Discover Financial Services and SoFi Lending Corp..

For borrowers, the access point is segmented based on the loan type:

• Nelnet.StudentAid.Gov: Directs borrowers with Federal Direct Loan Program and ED-owned FFEL Program loans (accounts beginning with E).
• SloanServicing.com: Serves commercially held FFEL Program loans (accounts beginning with D or J).

The scale of this servicing channel is substantial, as of September 30, 2025, Nelnet was servicing $508.7 billion across government-owned, FFELP, private education, and consumer loans for 14.2 million borrowers.

Nelnet Bank utilizes a standard banking channel approach, focusing on online presence supported by its balance sheet strength. As of the end of the third quarter of 2025, Nelnet Bank reported total assets of $2.00 billion. This asset base supports its lending and investment activities, which generated loan and investment net interest income of $15.4 million in Q3 2025.

The Education Technology Services and Payments segment, which includes FACTS and Campus Commerce, relies on direct engagement with educational institutions. This channel targets both K-12 and Higher Education. Nelnet Campus Commerce delivers payment opportunities for nearly 1,000 colleges and universities and serves over 8 million students. For K-12, Nelnet Business Services serves 12,000 schools worldwide. A concrete example of this channel's activity in 2025 is the processing of over 230,000 ACH refunds totaling more than $602 million.

Here is a snapshot of the scale across the primary service channels as of late 2025 data:

Channel Component	Metric	Latest Reported Value (2025)
Loan Servicing (Total Volume)	Servicing Volume	$508.7 billion (as of 9/30/2025)
Loan Servicing (Borrowers)	Borrowers Serviced	14.2 million (as of 9/30/2025)
Nelnet Bank	Total Assets	$2.00 billion (as of 9/30/2025)
Nelnet Campus Commerce	Higher Education Institutions Served	Nearly 1,000
Nelnet Campus Commerce	Title IV ACH Refunds Processed (2025 YTD)	Over 230,000
ALLO Communications	Cities Served	53

ALLO Communications, which provides fiber network infrastructure for communications services, operates through a geographically focused direct-to-consumer and business model. Nelnet, Inc. maintains a 27% ownership interest in ALLO. ALLO provides communications services across 53 cities in Nebraska, Colorado, Arizona, and Missouri, serving a population base of over 1.4 Million.

The digital channel for loan management is critical, directing borrowers to the correct servicing website based on their loan identifiers, ensuring they reach either Nelnet.StudentAid.Gov or SloanServicing.com. Finance: draft 13-week cash view by Friday.

Nelnet, Inc. (NNI) - Canvas Business Model: Customer Segments

You're looking at the core groups Nelnet, Inc. (NNI) serves as of late 2025. It's a complex mix, spanning from government contracts to individual student borrowers and institutional investors. Honestly, the sheer scale of the servicing portfolio shows you where the real operational focus is.

U.S. Department of Education and other government entities

The relationship with the U.S. Department of Education (ED) is foundational, primarily through fee-based servicing contracts. As of the third quarter of 2025, Nelnet, Inc. recognized non-recurring revenue of $32.9 million ($25.0 million after tax) related to a contract modification for services previously performed under its government servicing contract. This segment relies on Nelnet Diversified Services (NDS) to manage massive federal loan volumes.

The overall federally managed portfolio, which Nelnet services a portion of, stood at over $1.58 trillion across more than 40.3 million recipient accounts as of June 2025.

Private education and consumer loan originators (e.g., SoFi, Discover)

This group represents key partners whose loan assets Nelnet, Inc. services for a fee. The growth in this area is quite visible in the segment results. You saw an increase in private education loan servicing volume following the conversion of loan portfolios from Discover Financial Services and SoFi Lending Corp. during the fourth quarter of 2024 and the first quarter of 2025. These originators rely on Nelnet's scale for ongoing servicing operations.

Educational Institutions (K-12 schools and colleges/universities)

Nelnet Business Services (NBS) targets this segment with education technology and payment solutions. For instance, Nelnet Campus Commerce processed over $602 million in Title IV Refunds, which directly impacts how institutions manage federal student aid funds. This shows a direct financial interaction with thousands of schools.

Student loan borrowers (federal, FFELP, and private)

This is the largest group by sheer count, though the composition is shifting. As of September 30, 2025, Nelnet, Inc. was servicing a combined portfolio of $508.7 billion across government-owned, FFELP, private education, and consumer loans for 14.2 million borrowers. That's a lot of monthly payment processing.

The total servicing volume across all types has fluctuated:

• As of March 31, 2025: $542.3 billion for 15.6 million borrowers.
• As of June 30, 2025: $516.1 billion for 14.5 million borrowers.

For the federal side, borrowers in Income-Driven Repayment (IDR) plans totaled approximately 39% of the ED-serviced repayment universe as of June 2025.

Here's a snapshot of the servicing scale as of late 2025:

Portfolio Type/Metric	Value as of Q3 2025 (Sep 30)	Value as of Q2 2025 (Jun 30)
Total Serviced Portfolio Balance	$508.7 billion	$516.1 billion
Total Borrowers Serviced	14.2 million	14.5 million
Loan Servicing Net Income (After Tax, 3 Months)	$35.2 million	$15.2 million

Investors in asset-backed securities (ABS) and corporate equity

This segment funds Nelnet, Inc.'s Asset Generation and Management (AGM) activities. The company regularly securitizes private student loans to access capital markets. For example, the Nelnet Student Loan Trust 2025-B issued notes totaling $1,545,215,000 on August 15, 2025. Another recent deal, the 2025-A Trust, involved an issue amount of $1,030,000,000 in March 2025. Furthermore, the 2025-D Trust is preparing to issue $745.1 million. These notes are sold to institutional investors, including those buying fixed-rate and floating-rate tranches pegged to SOFR.

For corporate equity investors, as of January 31, 2025, there were 25,634,449 shares of Class A Common Stock and 10,658,604 shares of Class B Common Stock outstanding. The Board declared a fourth-quarter cash dividend of $0.33 per share, payable in December 2025.

You can see the capital markets activity in the ABS issuance:

• Nelnet Student Loan Trust 2025-B Issue Amount: $1,545,215,000.
• Nelnet Student Loan Trust 2025-A Issue Amount: $1.03 billion.
• Upcoming NSLT 2025-D Issue Size: $745.1 million.

Finance: draft 13-week cash view by Friday.

Nelnet, Inc. (NNI) - Canvas Business Model: Cost Structure

The Cost Structure for Nelnet, Inc. is heavily influenced by funding costs for its loan assets and the operational scale required for its servicing platforms.

Significant interest expense on debt used to fund the AGM loan portfolio is a primary cost driver, though the specific interest expense for Q3 2025 isn't isolated. The Asset Generation and Management (AGM) segment held an average loan balance of $8.8 billion for the third quarter of 2025, which necessitates substantial debt financing, leading to significant interest costs.

Servicing costs are substantial, driven by the sheer volume of accounts. As of September 30, 2025, Nelnet was servicing loans for 14.2 million borrowers.

The provision for loan losses is a variable, but material, cost component across the lending businesses:

• Nelnet Bank recognized a provision for loan losses of $3.8 million in Q3 2025.
• AGM recognized a negative provision for loan losses (a benefit) of $7.4 million in Q3 2025, related to a loan sale.

The Education Technology Services and Payments segment incurs costs related to growth investments, which compressed margins in 2025 compared to 2024. Here is a look at the Q3 2025 revenue and associated direct costs for that segment:

Metric	Amount (Q3 2025)
Revenue	$129.3 million
Revenue less direct costs to provide services	$79.0 million

The difference between the revenue and revenue less direct costs represents the gross cost of services before considering operating expenses like technology development and personnel costs associated with growth investments. For context, the segment's net income after tax for the quarter was $19.0 million.

Capital expenditures related to the fiber network expansion through ALLO are managed through investment activities. While specific 2025 capital expenditures for ALLO are not detailed, Nelnet received cash proceeds of $411 million in June 2025 from a redemption of its membership interests in ALLO, which reduced its ownership from 45% to 27%.

Personnel and technology costs are embedded within the operating expenses of the segments. The Loan Servicing and Systems segment noted that its 2025 net income benefited from efficiencies achieved with technology and automation, suggesting ongoing investment in these areas as a cost management strategy.

Finance: draft 13-week cash view by Friday.

Nelnet, Inc. (NNI) - Canvas Business Model: Revenue Streams

You're looking at how Nelnet, Inc. actually brings in the cash, which is key for understanding its stability. The revenue streams are quite diversified, leaning heavily on servicing fees and net interest income from its various loan books. Honestly, looking at the late 2025 numbers, you see a mix of steady operational income and some significant one-time boosts.

The core of the fee-based side comes from the Loan Servicing and Systems segment. For the third quarter of 2025, this stream brought in $151.1 million in revenue. This was up from $108.2 million in the same quarter last year, partly due to the private education loan portfolio conversions from Discover Financial Services and SoFi Lending Corp. that wrapped up in Q1 2025.

The interest income side is split between two main lending operations. The Asset Generation and Management (AGM) segment, which manages a portfolio of loans, generated net interest income of $52.9 million during the first quarter of 2025. This was a solid start to the year, even with the expected runoff of the Federal Family Education Loan Program (FFELP) portfolio.

Here's a quick look at how the key income drivers stacked up in the most recent reported quarters:

Revenue Stream	Period	Amount (Millions USD)
Fee-based revenue from Loan Servicing and Systems	Q3 2025	151.1
Fee revenue from Education Technology Services and Payments	Q3 2025	129.3
Net interest income from AGM loan portfolio	Q1 2025	52.9
Non-recurring revenue from government contract modification	Q3 2025	32.9
Net interest income from Nelnet Bank's portfolio	Q3 2025	15.4

The Education Technology Services and Payments segment, which serves K-12 and higher education, also delivered substantial fee revenue. For the third quarter of 2025, this segment pulled in $129.3 million. That's a nice step up from the $118.2 million seen in Q3 2024.

Nelnet Bank's contribution, focused on its loan and investment portfolio, added net interest income of $15.4 million in Q3 2025. This was an improvement over the $10.6 million reported in the third quarter of 2024, driven by a larger portfolio, though the net interest margin saw a slight dip.

It's important to note the impact of non-recurring items, as these can skew the picture of core operational strength. In Q3 2025, Nelnet recognized $32.9 million in non-recurring revenue related to a modification of its government servicing contract, which is a definite tailwind for that quarter's top line.

The revenue mix shows a few key areas of focus:

• Loan Servicing & Tech: High fee revenue from managing existing loans and providing payment/tech solutions.
• Interest Income: Earnings from the Asset Generation and Management and Nelnet Bank loan portfolios.
• Portfolio Growth: AGM acquired $832.6 million of loans, including $702.8 million of FFELP loans, in Q1 2025 to bolster its interest earnings power.
• One-Time Events: The government contract modification revenue of $32.9 million in Q3 2025.

Finance: draft Q3 2025 segment revenue breakdown by end of next week.