業績公告
即時報告
8-K
2026-08-06
Navient第二季盈利倍增 貸款放款量增逾六成
AI 繁中摘要
Navient（納斯達克：NAVI）於8月6日公佈2026年第二季度業績，並以8-K表格提交SEC。受惠於策略轉型見效，期內盈利按年顯著改善。
整體業績方面，第二季度GAAP淨利潤為2,500萬美元（攤薄後每股0.26美元），遠高於去年同期的1,400萬美元（每股0.13美元）；核心盈利（Core Earnings，非GAAP）淨利潤為2,700萬美元（每股0.29美元），去年同期為2,100萬美元（每股0.20美元）。上半年累計，GAAP淨利潤為4,200萬美元（每股0.44美元），去年同期僅1,100萬美元（每股0.11美元），按年大增282%。
集團行政總裁Edward Bramson表示，Navient正以強勁姿態向前邁進，策略轉型的成果在第二季度業績中充分體現，期內貸款放款量增長超過60%，營運支出按年減少18%。
分部業績方面，消費者貸款分部淨利潤為2,700萬美元，淨息差2.26%。期內私人教育貸款放款額達8.15億美元，按年大增63%，其中再融資貸款放款7.35億美元，在學貸款放款8,000萬美元。雖然信貸表現按季改善，但私人教育貸款的拖欠及違約水平仍偏高，貸款損失撥備為1,800萬美元，按年減少1,100萬美元。淨撇賬率1.84%，較去年同期的2.08%改善；逾期90日以上貸款比率亦由3.0%降至2.4%。
聯邦教育貸款分部淨利潤為2,600萬美元，淨息差0.68%。淨利息收入按年減少700萬美元，主要反映貸款組合償還令規模縮減。營運支出則因2024年將貸款服務外判而有所下降。
資本及資金方面，GAAP權益對資產比率為5.1%，調整後有形權益比率為9.0%。期內回購200萬美元普通股，派發1,500萬美元股息，並發行5億美元無擔保債務及13億美元資產支持證券。營運支出為8,200萬美元，按年減少18%。
對投資者而言，Navient第二季度盈利顯著改善，放款業務增長強勁（尤其再融資貸款），成本控制成效持續顯現，反映集團專注核心業務的策略正逐步取得成果。管理層對前景保持審慎樂觀，將續透過多元化資金來源支持業務增長，並維持股東回報。不過，私人教育貸款信貸質素及宏觀經濟變化仍值得關注。
展開英文正文
EX-99.1 2 navi-ex99_1.htm EX-99.1 EX-99.1 Exhibit 99.1 NEWS RELEASE For immediate release Navient posts second quarter 2026 financial results HERNDON, Va., August 6, 2026— Navient (Nasdaq: NAVI) today posted its 2026 second quarter financial results. Complete financial results are available on the company’s website at Navient.com/investors. The materials will also be available on a Form 8-K on the SEC’s website at www.sec.gov. Navient will hold a live audio webcast today, August 6, 2026, at 5 p.m. ET, hosted by Edward Bramson, CEO and chair of the board, and Steve Hauber, CFO. The webcast will be available on Navient.com/investors. Supplemental financial information and presentation slides used during the call will be available no later than the start time. A replay of the webcast will be available shortly after the event's conclusion. * * * About Navient Navient (Nasdaq: NAVI) creates long-term value for customers and investors with responsible lending, flexible refinancing, trusted servicing oversight, and decades of education finance and portfolio management expertise. Through our Earnest business, we help customers confidently achieve financial success through digital financial services. Our employees thrive in a culture of belonging, where they are supported and proud to deliver meaningful outcomes. Learn more on Navient.com. Contact: Media: Cate Fitzgerald, 703-831-6347, [email protected] Investors: Micah Andrews, 571-415-5413, [email protected] Roger Yankoupe, 571-592-8569, [email protected] # # # --- EX-99.2 3 navi-ex99_2.htm EX-99.2 EX-99.2 Exhibit 99.2 NAVIENT REPORTS SECOND-QUARTER 2026 FINANCIAL RESULTS HERNDON, Va., August 6, 2026 — Navient (Nasdaq: NAVI) today released its second-quarter 2026 financial results. OVERALL RESULTS •GAAP net income of $25 million ($0.26 diluted earnings per share). •Core Earnings(1) net income of $27 million ($0.29 diluted earnings per share). CEO COMMENTARY – "Navient is moving forward in a position of strength, with the benefits of our strategic transformation evident in our second-quarter results," said Edward Bramson, Navient’s CEO and chair of the board. "Originations grew more than 60% and operating expenses declined 18% from a year ago, reflecting the progress we made to strengthen the company and sharpen our focus." SECOND-QUARTER HIGHLIGHTS CONSUMER LENDINGSEGMENT •Net income of $27 million. •Net interest margin of 2.26%. •Originated $815 million of Private Education Loans, a 63% increase from a year ago. FEDERALEDUCATIONLOANS SEGMENT •Net income of $26 million. •Net interest margin of 0.68%. CAPITAL & FUNDING •GAAP equity-to-asset ratio of 5.1% and adjusted tangible equity ratio(1) of 9.0%. •Repurchased $2 million of common shares. •Paid $15 million in common stock dividends. •Issued $500 million of unsecured debt and $1.3 billion of asset-backed securities. OPERATING EXPENSES •Incurred operating expenses of $82 million. (1) Item is a non-GAAP financial measure. For a description and reconciliation, see “Non-GAAP Financial Measures” on pages 17 – 27. SEGMENT RESULTS — CORE EARNINGS CONSUMER LENDING In this segment, Navient owns and manages a portfolio of Private Education Loans. Through our Earnest brand, we also refinance and originate Private Education Loans. FINANCIAL RESULTS AND KEY PERFORMANCE METRICS (Dollars in millions) 2Q26 1Q26 2Q25 Net interest income $ 93 $ 100 $ 95 Provision for loan losses 18 18 29 Other revenue 2 3 3 Total revenue 77 85 69 Expenses 42 39 36 Pre-tax income 35 46 33 Net income $ 27 $ 35 $ 26 Segment net interest margin 2.26 % 2.48 % 2.32 % Private Education Loans (including Refinance Loans): Private Education Loan spread 2.38 % 2.60 % 2.42 % Provision for loan losses $ 17 $ 18 $ 29 Net charge-offs $ 71 $ 72 $ 80 Net charge-off rate (1) 1.84 % 1.91 % 2.08 % Greater than 30-days delinquency rate (1) 5.4 % 5.5 % 6.4 % Greater than 90-days delinquency rate (1) 2.4 % 2.5 % 3.0 % Forbearance rate (1) 1.8 % 1.5 % 1.6 % Average Private Education Loans $ 15,985 $ 15,958 $ 15,992 Ending Private Education Loans, net $ 15,674 $ 15,649 $ 15,530 Private Education Refinance Loans: Net charge-offs $ 18 $ 16 $ 18 Greater than 90-day delinquency rate .8 % .8 % .8 % Average Private Education Refinance Loans $ 9,271 $ 9,017 $ 8,531 Ending Private Education Refinance Loans, net $ 9,258 $ 9,029 $ 8,469 Private Education Refinance Loan originations $ 735 $ 778 $ 443 (1) Second-quarter 2026 excludes $528 million of loans, and the corresponding delinquencies, forbearances and charge-offs, that were classified as held for sale as of June 30, 2026. DISCUSSION OF RESULTS — 2Q26 vs. 2Q25 •Originated $815 million of Private Education Loans, a 63% increase compared to $500 million. oRefinance Loan originations were $735 million compared to $443 million. oIn-school loan originations were $80 million compared to $57 million. •Net income was $27 million compared to $26 million. •Net interest income decreased $2 million, primarily due to the changing product mix with Refinance Loans increasing as a percentage of the portfolio. The Refinance Loan portfolio earns a lower net interest margin compared to the non-refinance portfolio, due to lower expected credit losses, which reduces the overall net interest margin. •Provision for loan losses decreased $11 million. The provision for loan losses of $18 million in the current quarter included $14 million associated with loan originations and $23 million related to a general reserve build primarily as a result of portfolio performance trends. While credit performance improved on a sequential basis during the quarter, delinquency and default levels in the Private Education Loan portfolio remain elevated. This was partially offset by a $19 million decrease as a result of classifying $528 million of loans as held for sale as of June 30, 2026. When loans are classified as held for sale the corresponding allowance for loan losses is reversed and such loans are carried at the lower of fair value or cost basis. These loans are carried at their cost basis as of June 30, 2026. The provision for loan losses of $29 million in the year-ago quarter included $7 million associated with loan originations and $22 million related to a general reserve build primarily as a result of an increase in delinquency balances as well as a weakening in the forecasted macroeconomic metrics used to estimate expected losses. oNet charge-offs were $71 million, down $9 million compared to $80 million in the year-ago quarter. oPrivate Education Loan delinquencies greater than 90 days: $349 million, down $110 million from $459 million. oPrivate Education Loan forbearances: $271 million, up $21 million from $250 million. •Expenses increased $6 million primarily reflecting marketing and other expenses associated with the growth of our consumer lending businesses. 2 FEDERAL EDUCATION LOANS In this segment, Navient owns and manages a portfolio of FFELP federally guaranteed student loans. FINANCIAL RESULTS AND KEY PERFORMANCE METRICS (Dollars in millions) 2Q26 1Q26 2Q25 Net interest income $ 48 $ 46 $ 55 Provision for loan losses 8 9 8 Other revenue 8 8 10 Total revenue 48 45 57 Expenses 15 16 17 Pre-tax income 33 29 40 Net income $ 26 $ 22 $ 30 Segment net interest margin .68 % .65 % .70 % FFELP Loans: FFELP Loan spread .76 % .72 % .75 % Provision for loan losses $ 8 $ 9 $ 8 Net charge-offs $ 10 $ 17 $ 8 Net charge-off rate .18 % .29 % .14 % Greater than 30-days delinquency rate 14.7 % 15.2 % 19.0 % Greater than 90-days delinquency rate 8.0 % 8.5 % 10.1 % Forbearance rate 12.8 % 13.0 % 12.8 % Average FFELP Loans $ 27,045 $ 27,898 $ 30,327 Ending FFELP Loans, net $ 26,575 $ 27,237 $ 29,618 DISCUSSION OF RESULTS — 2Q26 vs. 2Q25 •Net income was $26 million compared to $30 million. •Net interest income decreased $7 million primarily due to the paydown of the loan portfolio. •Provision for loan losses remained unchanged at $8 million. The provision for loan losses of $8 million in the current period was primarily the result of increased charge-offs due to prior disaster forbearance volume, as well as the continued extension of the portfolio. The $8 million of provision for loan losses in the year-ago quarter was primarily the result of an increase in delinquency balances. oNet charge-offs were $10 million compared to $8 million. oDelinquencies greater than 90 days were $1.8 billion compared to $2.5 billion. oForbearances were $3.3 billion compared to $3.7 billion. •Expenses were $2 million lower primarily as a result of the outsourcing of the loan servicing of our portfolio to a third party in 2024. This created a variable cost structure resulting in a reduction in expenses as the portfolio paid down. 3 Definitions for capitalized terms in this release can be found in Navient’s Annual Report on Form 10-K for the year ended December 31, 2025 (filed with the SEC on February 26, 2026). Navient will hold a live audio webcast today, August 6, 2026, at 5 p.m. ET, hosted by Edward Bramson, CEO and chair of the board, and Steve Hauber, CFO. The webcast will be available on Navient.com/investors. Supplemental financial information and presentation slides used during the call will be available no later than the start time. A replay of the webcast will be available shortly after the event’s conclusion. This news release contains “forward-looking statements,” within the meaning of the federal securities law, about our business and prospectus and other information that is based on management’s current expectations as of the date of this release. Statements that are not historical facts, including statements about our beliefs, opinions, or expectations and statements that assume or are dependent upon future events, are forward-looking statements and often contain words such as “expect,” “assume,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” “will,” “would,” “may,” “could,” “should,” “goals,” or “target.” Such statements are based on management’s expectations as of the date of this release and involve many risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in our forward-looking statements. For Navient, these factors include, among other things: general economic conditions, including the potential impact of artificial intelligence, inflation and interest rates on Navient and its clients and customers and on the creditworthiness of third parties; increased defaults on education loans held by us; unanticipated repayment trends on education loans including prepayments or deferrals resulting from new interpretations or the timing of the execution and implementation of current laws, rules or regulations or future laws, executive orders or other policy initiatives that operate to encourage or require consolidation, abolish existing or create additional income-based repayment or debt forgiveness programs or establish other policies and programs which may increase or decrease the prepayment rates on education loans and accelerate or slow down the repayment of the bonds in our securitization trusts; a reduction in our credit ratings; changes to applicable laws, rules, regulations and government policies, as well as changing regulatory and governmental oversight; changes in the general interest rate environment, including the availability of any relevant money-market index rate or the relationship between the relevant money-market index rate and the rate at which our assets are priced; the interest rate characteristics of our assets do not always match those of our funding arrangements; adverse market conditions or an inability to effectively manage our liquidity risk or access liquidity could negatively impact us; the cost and availability of funding in the capital markets; our ability to earn Floor Income and our ability to enter into hedges relative to that Floor Income are dependent on the future interest rate environment and therefore are variable; our use of derivatives exposes us to credit and market risk; our ability to continually and effectively align our cost structure with our business operations; a failure or breach of our operating systems, infrastructure or information technology systems; failure by any third party providing us material services or products or a breach or violation of law by one of these third parties; acquisitions, new products, strategic initiatives and investments or divestitures that we pursue; shareholder activism; reputational risk and social factors; and the other factors that are described in the “Risk Factors” section of Navient’s Annual Report on Form 10-K for the year ended December 31, 2025, and in our other reports filed with the Securities and Exchange Commission. The preparation of our consolidated financial statements also requires management to make certain estimates and assumptions including estimates and assumptions about future events. These estimates or assumptions may prove to be incorrect and actual results could differ materially. All forward-looking statements contained in this release are qualified by these cautionary statements and are made only as of the date of this release. The company does not undertake any obligation to update or revise these forward-looking statements except as required by law. * * * About Navient Navient (Nasdaq: NAVI) creates long-term value for customers and investors with responsible lending, flexible refinancing, trusted servicing oversight, and decades of education finance and portfolio management expertise. Through our Earnest business, we help customers confidently achieve financial success through digital financial services. Our employees thrive in a culture of belonging, where they are supported and proud to deliver meaningful outcomes. Learn more on Navient.com. Contact: Media: Cate Fitzgerald, 703-831-6347, [email protected] Investors: Micah Andrews, 571-415-5413, [email protected] Roger Yankoupe, 571-592-8569, [email protected] # # # 4 SELECTED HISTORICAL FINANCIAL INFORMATION AND RATIOS QUARTERS ENDED SIX MONTHS ENDED (In millions, except per share data) June 30, 2026 March 31, 2026 June 30, 2025 June 30, 2026 June 30, 2025 GAAP Basis Net income $ 25 $ 17 $ 14 $ 42 $ 11 Diluted earnings per common share $ .26 $ .17 $ .13 $ .44 $ .11 Weighted average shares used to compute diluted earnings per share 95 96 101 95 102 Return on assets .22 % .15 % .11 % .18 % .05 % Core Earnings Basis(1) Net income(1) $ 27 $ 19 $ 21 $ 47 $ 47 Diluted earnings per common share(1) $ .29 $ .20 $ .20 $ .49 $ .46 Weighted average shares used to compute diluted earnings per share 95 96 101 95 102 Net interest margin, Consumer Lending segment 2.26 % 2.48 % 2.32 % 2.37 % 2.54 % Net interest margin, Federal Education Loans segment .68 % .65 % .70 % .67 % .66 % Return on assets .24 % .17 % .17 % .21 % .19 % . Education Loan Portfolios Ending Private Education Loans, net $ 15,674 $ 15,649 $ 15,530 15,674 15,530 Ending FFELP Loans, net 26,575 27,237 29,618 $ 26,575 $ 29,618 Ending total education loans, net $ 42,249 $ 42,886 $ 45,148 $ 42,249 $ 45,148 Average Private Education Loans $ 15,985 $ 15,958 $ 15,992 15,971 16,075 Average FFELP Loans 27,045 27,898 30,327 $ 27,469 $ 30,619 Average total education loans $ 43,030 $ 43,856 $ 46,319 $ 43,440 $ 46,694 (1) Item is a non-GAAP financial measure. For a description and reconciliation, see “Non-GAAP Financial Measures” on pages 17 – 27. 5 RESULTS OF OPERATIONS We present the results of operations below first in accordance with GAAP. Following our discussion of earnings results on a GAAP basis, we present our results on a segment basis. We have three reportable operating segments as of June 30, 2026: Consumer Lending, Federal Education Loans and Other. Prior to the divestiture of our healthcare business in third-quarter 2024 and our government services business in first-quarter 2025, we had a fourth reportable operating segment, Business Processing. Our segments operate in distinct business environments and we manage and evaluate the financial performance of our segments using non-GAAP financial measures we call Core Earnings (see “Non-GAAP Financial Measures — Core Earnings” for further discussion). GAAP INCOME STATEMENTS (UNAUDITED) June 30, 2026 vs. March 31, 2026 June 30, 2026 vs. June 30, 2025 QUARTERS ENDED Increase(Decrease) Increase(Decrease) (In millions, except per share data) June 30, 2026 March 31, 2026 June 30, 2025 $ % $ % Interest income Private Education Loans $ 273 $ 277 $ 273 $ (4 ) (1 )% $ — — % FFELP Loans 391 401 483 (10 ) (2 ) (92 ) (19 ) Cash and investments 18 17 22 1 6 (4 ) (18 ) Total interest income 682 695 778 (13 ) (2 ) (96 ) (12 ) Total interest expense 560 564 650 (4 ) (1 ) (90 ) (14 ) Net interest income 122 131 128 (9 ) (7 ) (6 ) (5 ) Less: provisions for loan losses 26 27 37 (1 ) (4 ) (11 ) (30 ) Net interest income after provisions for loan losses 96 104 91 (8 ) (8 ) 5 5 Other income (loss): Servicing revenue 10 11 14 (1 ) (9 ) (4 ) (29 ) Other income 17 5 19 12 240 (2 ) (11 ) Gains (losses) on derivative and hedging activities, net 1 5 (5 ) (4 ) (80 ) 6 120 Total other income 28 21 28 7 33 — — Expenses: Operating expenses 82 89 100 (7 ) (8 ) (18 ) (18 ) Goodwill and acquired intangible asset impairment and amortization expense — 4 1 (4 ) (100 ) (1 ) (100 ) Restructuring/other reorganization expenses 3 — — 3 100 3 100 Total expenses 85 93 101 (8 ) (9 ) (16 ) (16 ) Income before income tax expense 39 32 18 7 22 21 117 Income tax expense 14 15 4 (1 ) (7 ) 10 250 Net income $ 25 $ 17 $ 14 $ 8 47 % $ 11 79 % Basic earnings per common share $ .27 $ .18 $ .14 $ .09 50 % $ .13 93 % Diluted earnings per common share $ .26 $ .17 $ .13 $ .09 53 % $ .13 100 % Dividends per common share $ .16 $ .16 $ .16 $ — — % $ — — % 6 SIX MONTHS ENDEDJune 30, Increase(Decrease) (In millions, except per share data) 2026 2025 $ % Interest income Private Education Loans $ 550 $ 562 $ (12 ) (2 )% FFELP Loans 791 975 (184 ) (19 ) Cash and investments 35 43 (8 ) (19 ) Total interest income 1,376 1,580 (204 ) (13 ) Total interest expense 1,123 1,322 (199 ) (15 ) Net interest income 253 258 (5 ) (2 ) Less: provisions for loan losses 54 67 (13 ) (19 ) Net interest income after provisions for loan losses 199 191 8 4 Other income (loss): Servicing revenue 21 27 (6 ) (22 ) Asset recovery and business processing revenue — 23 (23 ) (100 ) Other income 22 33 (11 ) (33 ) Gains (losses) on derivative and hedging activities, net 6 (30 ) 36 120 Total other income 49 53 (4 ) (8 ) Expenses: Operating expenses 171 227 (56 ) (25 ) Goodwill and acquired intangible assets impairment and amortization expense 4 2 2 100 Restructuring/other reorganization expenses 2 3 (1 ) (33 ) Total expenses 177 232 (55 ) (24 ) Income before income tax expense 71 12 59 492 Income tax expense 29 1 28 2,800 Net income $ 42 $ 11 $ 31 282 % Basic earnings per common share $ .44 $ .11 $ .33 300 % Diluted earnings per common share $ .44 $ .11 $ .33 300 % Dividends per common share $ .32 $ .32 $ — — % 7 GAAP BALANCE SHEETS (UNAUDITED) (In millions, except per share data) June 30, 2026 March 31, 2026 June 30, 2025 Assets Private Education Loans held for investment, at amortized cost (net of allowance for loan losses of $263, $314 and $348, respectively) $ 15,146 $ 15,649 $ 15,530 Private Education Loans held for sale 528 — — FFELP Loans held for investment, at amortized cost (net of allowance for loan losses of $163, $165 and $182, respectively) 26,575 27,237 29,618 Investments 116 148 135 Cash and cash equivalents 770 621 712 Restricted cash and cash equivalents 1,369 1,510 1,365 Goodwill and acquired intangible assets, net 430 430 436 Other assets 2,363 2,409 2,426 Total assets $ 47,297 $ 48,004 $ 50,222 Liabilities Short-term borrowings $ 4,214 $ 5,870 $ 4,752 Long-term borrowings 40,123 39,240 42,345 Other liabilities 562 515 561 Total liabilities 44,899 45,625 47,658 Commitments and contingencies Equity Series A Junior Participating Preferred Stock, par value $0.20 per share; 2 million shares authorized at December 31, 2021; no shares issued or outstanding — — — Common stock, par value $0.01 per share; 1.125 billion shares authorized: 468 million, 468 million and 467 million shares, respectively, issued 4 4 4 Additional paid-in capital 3,410 3,407 3,394 Accumulated other comprehensive income, net of tax 14 5 — Retained earnings 4,562 4,552 4,674 Total stockholders’ equity before treasury stock 7,990 7,968 8,072 Less: Common stock held in treasury at cost: 374 million, 374 million and 367 million shares, respectively (5,592 ) (5,589 ) (5,508 ) Total equity 2,398 2,379 2,564 Total liabilities and equity $ 47,297 $ 48,004 $ 50,222 8 GAAP COMPARISON OF 2026 RESULTS WITH 2025 Three Months Ended June 30, 2026 Compared with Three Months Ended June 30, 2025 For the three months ended June 30, 2026, net income was $25 million, or $0.26 diluted earnings per common share, compared with net income of $14 million, or $0.13 diluted earnings per common share, for the year-ago period. The primary contributors to the change in net income are as follows: • Net interest income decreased by $6 million primarily due to the paydown of the FFELP portfolio and the Private Education Loan portfolio's changing product mix with Refinance Loans increasing as a percentage of the portfolio. The Refinance Loan portfolio earns a lower net interest margin compared to the non-refinance portfolio, due to lower expected credit losses, which reduces the overall net interest margin. • Provisions for loan losses decreased $11 million from $37 million to $26 million. ○ The provision for Private Loan losses decreased $11 million from $29 million to $18 million. ○ The provision for FFELP Loan losses remained unchanged at $8 million. The provision for Private Loan losses of $18 million in the current period included $14 million associated with loan originations and $23 million related to a general reserve build primarily as a result of portfolio performance trends. While credit performance improved on a sequential basis during the quarter, delinquency and default levels in the Private Education Loan portfolio remain elevated. This was partially offset by a $19 million decrease as a result of classifying $528 million of loans as held for sale as of June 30, 2026. When loans are classified as held for sale the corresponding allowance for loan losses is reversed through provision for loan losses and such loans are carried at the lower of fair value or cost basis. These loans are carried at their cost basis as of June 30, 2026. The provision of $29 million in the year-ago quarter included $7 million associated with loan originations and $22 million related to a general reserve build primarily as a result of an increase in delinquency balances as well as a weakening in the forecasted macroeconomic metrics used to estimate expected losses. The provision for FFELP Loan losses of $8 million in the current period was primarily the result of increased charge-offs due to prior disaster forbearance volume, as well as the continued extension of the portfolio. The provision of $8 million in the year-ago quarter was primarily the result of an increase in delinquency balances. • Other income decreased $2 million primarily related to a $13 million decrease in transition services revenue we had earned related to our various strategic initiatives. The transition services related to the outsourcing of loan servicing and the sale of our healthcare services business ended in May 2025. The transition services related to the sale of our government services business ended in October 2025. This $13 million decrease was partially offset by a $12 million gain on an investment in the current period. • Net gains on derivative and hedging activities increased $6 million due primarily to interest rate fluctuations. Valuations of derivative instruments fluctuate based upon many factors including changes in interest rates and other market factors. As a result, net gains and losses on derivative and hedging activities may vary significantly in future periods. • Operating expenses decreased $18 million, $13 million of which was due to a decline in expenses in connection with providing transition services related to our various strategic initiatives. As of October 2025 we had no further obligations to provide these transition services. There was a $5 million increase in marketing and other expenses associated with the growth of our consumer lending businesses. The remaining $10 million decrease primarily relates to cost saving initiatives implemented, which have reduced our operating costs mostly in connection with our shared service functions and corporate footprint. • Restructuring and other reorganization expenses increased $3 million primarily due to an increase in severance-related costs incurred in connection with the various strategic initiatives that have been and continue to be implemented to simplify the company, continue to reduce our expense base and enhance our flexibility. We repurchased 0.3 million and 1.9 million shares of our common stock during the second quarters of 2026 and 2025,respectively. As a result of repurchases, our average outstanding diluted shares decreased by 6 million common shares(or 6%) from the year-ago period. 9 Six Months Ended June 30, 2026 Compared with Six Months Ended June 30, 2025 For the six months ended June 30, 2026, net income was $42 million, or $0.44 diluted earnings per common share, compared with net income of $11 million, or $0.11 diluted earnings per common share, for the year-ago period. The primary contributors to the change in net income are as follows: • Net interest income decreased by $5 million primarily due to the paydown of the FFELP portfolio and the Private Education Loan portfolio's changing product mix with Refinance Loans increasing as a percentage of the portfolio. The Refinance Loan portfolio earns a lower net interest margin compared to the non-refinance portfolio, due to lower expected credit losses, which reduces the overall net interest margin. This was partially offset by a $14 million increase in mark-to-market gains on fair value hedges recorded in interest expense. • Provisions for loan losses decreased $13 million from $67 million to $54 million. ○ The provision for Private Loan losses decreased $14 million from $51 million to $37 million. ○ The provision for FFELP Loan losses increased $1 million from $16 million to $17 million. The provision for Private Loan losses of $37 million in the current period included $26 million associated with loan originations and $30 million related to a general reserve build primarily as a result of portfolio performance trends. While credit performance improved on a sequential basis during the period, delinquency and default levels in the Private Education Loan portfolio remain elevated. This was partially offset by a $19 million decrease as a result of classifying $528 million of loans as held for sale as of June 30, 2026. When loans are classified as held for sale the corresponding allowance for loan losses is reversed through provision for loan losses and such loans are carried at the lower of fair value or cost basis. These loans are carried at their cost basis as of June 30, 2026. The provision of $51 million in the year-ago quarter included $14 million associated with loan originations and $37 million related to a general reserve build primarily as a result of an increase in delinquency balances as well as a weakening in the forecasted macroeconomic metrics used to estimate expected losses. The provision for FFELP Loan losses of $17 million in the current period was primarily the result of increased charge-offs due to prior disaster forbearance volume, as well as the continued extension of the portfolio. The provision of $16 million in the year-ago quarter was primarily the result of an increase in delinquency balances. • Asset recovery and business processing revenue decreased $23 million as a result of the sale of our government services business in February 2025. With the sale of our government services business, Navient no longer provides business processing segment services. • Other income decreased $11 million primarily related to a $24 million decrease in transition services revenue we had earned related to our various strategic initiatives. The transition services related to the outsourcing of loan servicing and the sale of our healthcare services business ended in May 2025. The transition services related to the sale of our government services business ended in October 2025. This $24 million decrease was partially offset by a $12 million gain on an investment in the current period. • Net gains on derivative and hedging activities increased $36 million due primarily to interest rate fluctuations. Valuations of derivative instruments fluctuate based upon many factors including changes in interest rates and other market factors. As a result, net gains and losses on derivative and hedging activities may vary significantly in future periods. • Operating expenses decreased $56 million, $23 million of which was due to a decline in business processing expenses as a result of the sale of our government services business in February 2025 ($20 million of the reduction is in the Business Processing segment and $3 million of the reduction is in the Other segment). In addition, there was a $23 million decline in expenses in connection with providing transition services related to our various strategic initiatives. As of October 2025, we had no further obligations to provide these transition services. There was an $11 million increase in marketing and other expenses associated with the growth of our consumer lending businesses. The remaining $21 million decrease primarily relates to cost saving initiatives implemented, which have reduced our operating costs mostly in connection with our shared service functions and corporate footprint. • Restructuring and other reorganization expenses decreased $1 million primarily due to a decrease in severance-related costs incurred in connection with the various strategic initiatives that have been and continue to be implemented to simplify the company, continue to reduce our expense base and enhance our flexibility. • The effective income tax rates for the current year and year-ago periods were 41% and 9%, respectively. The movement in the effective income tax rate was primarily driven by state tax expense in connection with uncertain tax positions as well as changes in the valuation allowance attributed to disallowed interest expense carryovers. We repurchased 2.6 million and 4.5 million shares of our common stock during the six months ended June 30, 2026 and June 30, 2025, respectively. As a result of repurchases, our average outstanding diluted shares decreased by 7 million common shares(or 7%) from the year-ago period. 10 PRIVATE EDUCATION LOANS PORTFOLIO PERFORMANCE Private Education Loan Delinquencies and Forbearance June 30, March 31, June 30, 2026 2026 2025 (Dollars in millions) Balance % Balance % Balance % Loans in-school/grace/deferment(1) $ 357 $ 393 $ 361 Loans in forbearance(2) 271 235 250 Loans in repayment and percentage of each status: Loans current 13,985 94.6 % 14,489 94.5 % 14,296 93.6 % Loans delinquent 31-60 days(3) 279 1.9 294 1.9 335 2.2 Loans delinquent 61-90 days(3) 168 1.1 166 1.1 177 1.2 Loans delinquent greater than 90 days(3) 349 2.4 386 2.5 459 3.0 Total Private Education Loans in repayment 14,781 100 % 15,335 100 % 15,267 100 % Total Private Education Loans, gross (5) 15,409 15,963 15,878 Private Education Loan allowance for loan losses (263 ) (314 ) (348 ) Private Education Loans, net $ 15,146 $ 15,649 $ 15,530 Percentage of Private Education Loans in repayment 95.9 % 96.1 % 96.2 % Delinquencies as a percentage of Private Education Loans in repayment 5.4 % 5.5 % 6.4 % Loans in forbearance as a percentage of loans in repayment and forbearance 1.8 % 1.5 % 1.6 % Percentage of Private Education Loans with a cosigner(4) 29 % 31 % 32 % (1) Loans for customers who are attending school or are in other permitted educational activities and are not yet required to make payments on theirloans, e.g., loans for customers who have requested and qualify for other permitted program deferments such as various military eligible deferments. (2) Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased makingfull payments due to hardship or other factors such as disaster relief consistent with established loan program servicing policies and procedures. (3) The period of delinquency is based on the number of days scheduled payments are contractually past due. (4) Excluding Private Education Refinance Loans, the cosigner rate was 66%, 67% and 66% for second-quarter 2026, first-quarter 2026 and second-quarter 2025, respectively. (5) June 30, 2026 excludes $528 million of loans classified as held for sale as of June 30, 2026. 11 ALLOWANCE FOR LOAN LOSSES – EDUCATION LOANS QUARTER ENDED June 30, 2026 (Dollars in millions) Private Education Loans FFELP Loans Total Allowance at beginning of period $ 314 $ 165 $ 479 Total provision 17 8 25 Charge-offs: Gross charge-offs (82 ) (10 ) (92 ) Expected future recoveries on current period gross charge-offs 11 — 11 Net charge-offs(1) (71 ) (10 ) (81 ) Decrease in expected future recoveries on previously fully charged-off loans(2) 3 — 3 Allowance at end of period (GAAP) 263 163 426 Plus: expected future recoveries on previously fully charged-off loans(2) 163 — 163 Allowance at end of period excluding expected future recoveries on previously fully charged-off loans (Non-GAAP Financial Measure)(3) $ 426 $ 163 $ 589 Net charge-offs as a percentage of average loans in repayment (annualized) (4) 1.84 % .18 % Allowance coverage of charge-offs (annualized)(3) (4) 1.6 4.0 (Non-GAAP) Allowance as a percentage of the ending total loan balance(3) (4) 2.8 % .6 % (Non-GAAP) Allowance as a percentage of the ending loans in repayment(3) (4) 2.9 % .7 % (Non-GAAP) Ending total loans(4) $ 15,409 $ 26,738 Average loans in repayment(4) $ 14,803 $ 22,478 Ending loans in repayment(4) $ 14,781 $ 22,324 QUARTER ENDED March 31, 2026 (Dollars in millions) Private Education Loans FFELP Loans Total Allowance at beginning of period $ 364 $ 173 $ 537 Total provision 18 9 27 Charge-offs: Gross charge-offs (83 ) (17 ) (100 ) Expected future recoveries on current period gross charge-offs 11 — 11 Net charge-offs(1) (72 ) (17 ) (89 ) Decrease in expected future recoveries on previously fully charged-off loans(2) 4 — 4 Allowance at end of period (GAAP) 314 165 479 Plus: expected future recoveries on previously fully charged-off loans(2) 166 — 166 Allowance at end of period excluding expected future recoveries on previously fully charged-off loans (Non-GAAP Financial Measure)(3) $ 480 $ 165 $ 645 Net charge-offs as a percentage of average loans in repayment (annualized) 1.91 % .29 % Allowance coverage of charge-offs (annualized)(3) 1.7 2.4 (Non-GAAP) Allowance as a percentage of the ending total loan balance(3) 3.0 % .6 % (Non-GAAP) Allowance as a percentage of the ending loans in repayment(3) 3.1 % .7 % (Non-GAAP) Ending total loans $ 15,963 $ 27,402 Average loans in repayment $ 15,326 $ 23,226 Ending loans in repayment $ 15,335 $ 22,786 12 QUARTER ENDED June 30, 2025 (Dollars in millions) Private Education Loans FFELP Loans Total Allowance at beginning of period $ 397 $ 182 $ 579 Total provision 29 8 37 Charge-offs: Gross charge-offs (93 ) (8 ) (101 ) Expected future recoveries on current period gross charge-offs 13 — 13 Net charge-offs(1) (80 ) (8 ) (88 ) Decrease in expected future recoveries on previously fully charged-off loans(2) 2 — 2 Allowance at end of period (GAAP) 348 182