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Nelnet Inc (NNI)
NYSE:NNI
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Nelnet (NNI) AI Stock Analysis

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NNI

Nelnet

(NYSE:NNI)

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Outperform 71 (OpenAI - 5.2)
Rating:71Outperform
Price Target:
$149.00
▲(16.97% Upside)
Action:Upgraded
Date:08/07/26
The score is driven primarily by strong profitability and high-quality cash generation, tempered by the notable TTM revenue decline and questions around leverage consistency. Technicals are steady but not strongly bullish, while valuation looks reasonable and adds support. Corporate events are mildly positive due to governance stability but have limited impact on fundamentals.
Positive Factors
Profitability & Margins
Nelnet's strong TTM net (≈17.5%) and EBIT (≈28.1%) margins indicate durable earnings power across its businesses. High operating profitability provides a structural cushion against revenue variability, funds reinvestment and shareholder return, and underpins long-term cash generation.
Negative Factors
TTM Revenue Decline
A ~-19.1% TTM revenue drop after 2025 strength signals top-line instability. Persistent revenue weakness could erode scale in servicing, reduce fee and software income, and place sustained pressure on growth and reinvestment capacity if not reversed.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability & Margins
Nelnet's strong TTM net (≈17.5%) and EBIT (≈28.1%) margins indicate durable earnings power across its businesses. High operating profitability provides a structural cushion against revenue variability, funds reinvestment and shareholder return, and underpins long-term cash generation.
Read all positive factors

Nelnet (NNI) vs. SPDR S&P 500 ETF (SPY)

Nelnet Business Overview & Revenue Model

Company Description
Nelnet, Inc. operates globally, encompassing a variety of businesses including loan management, telecommunications, educational technology, related services, and payment processing solutions. Its Loan Servicing and Systems division offers comprehe...
How the Company Makes Money
Nelnet makes money through a mix of fee-based services and interest/asset-based income across its operating segments. (1) Loan servicing and education technology: Nelnet earns revenue by providing student loan servicing and related servicing/proce...

Nelnet Financial Statement Overview

Summary
Fundamentals skew positive: profitability and margins are strong (TTM net margin ~17.5%, EBIT margin ~28.1%) and free cash flow conversion is consistently high (TTM FCF ~0.92x net income with ~+14.9% growth). Key risks are the sharp TTM revenue decline (~-19.1%) after strong 2025 growth and uncertainty around leverage consistency given the abrupt shift to zero reported debt in TTM versus meaningful historical leverage.
Income Statement
71
Positive
Balance Sheet
58
Neutral
Cash Flow
78
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.86B2.26B1.85B1.81B1.82B1.42B
Gross Profit1.54B1.97B1.11B961.15M1.35B1.25B
EBITDA525.20M1.06B361.11M214.11M678.09M634.43M
Net Income302.24M428.47M184.04M89.83M406.90M393.29M
Balance Sheet
Total Assets14.28B14.06B13.78B16.71B19.37B21.68B
Cash, Cash Equivalents and Short-Term Investments1.56B973.55M1.18B1.11B1.51B1.06B
Total Debt7.04B7.79B8.31B11.83B14.64B17.65B
Total Liabilities10.64B10.49B10.48B13.51B16.17B18.73B
Stockholders Equity3.77B3.69B3.35B3.25B3.20B2.95B
Cash Flow
Free Cash Flow364.03M396.75M641.99M358.92M624.64M421.38M
Operating Cash Flow401.06M422.99M662.89M432.98M684.06M480.33M
Investing Cash Flow-282.58M509.43M2.41B1.94B2.27B1.19B
Financing Cash Flow59.84M-890.16M-3.17B-2.70B-2.79B-1.43B

Nelnet Technical Analysis

Technical Analysis Sentiment
Negative
Last Price127.38
Price Trends
50DMA
131.55
Negative
100DMA
131.99
Negative
200DMA
131.44
Negative
Market Momentum
MACD
-1.53
Positive
RSI
36.70
Neutral
STOCH
50.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NNI, the sentiment is Negative. The current price of 127.38 is below the 20-day moving average (MA) of 128.36, below the 50-day MA of 131.55, and below the 200-day MA of 131.44, indicating a bearish trend. The MACD of -1.53 indicates Positive momentum. The RSI at 36.70 is Neutral, neither overbought nor oversold. The STOCH value of 50.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NNI.

Nelnet Risk Analysis

Nelnet disclosed 26 risk factors in its most recent earnings report. Nelnet reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Nelnet Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$4.06B8.0317.04%0.86%0.85%117.85%
72
Outperform
$6.18B12.9232.35%2.58%32.02%
72
Outperform
$4.96B7.1730.31%2.14%4.76%78.90%
71
Outperform
$4.56B15.048.15%0.97%-6.77%-7.42%
68
Neutral
$5.79B15.8725.76%17.65%43.92%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
53
Neutral
$887.20M-19.41-2.04%7.78%-17.19%-244.62%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NNI
Nelnet
125.27
-2.07
-1.62%
BFH
Bread Financial Holdings
104.47
39.02
59.63%
CACC
Credit Acceptance
599.74
87.62
17.11%
SLM
SLM
25.97
-4.65
-15.19%
NAVI
Navient
9.51
-3.35
-26.03%
ENVA
Enova International
226.72
106.47
88.54%

Nelnet Corporate Events

Financial DisclosuresRegulatory Filings and Compliance
Nelnet Bank Files Quarterly Regulatory Call Report Update
Neutral
Jul 30, 2026
On July 29, 2026, Nelnet Bank filed its Consolidated Reports of Condition and Income for the quarter ended June 30, 2026 with the Federal Deposit Insurance Corporation, using the FFIEC 051 form applicable to banks with domestic offices and assets ...
Executive/Board ChangesShareholder Meetings
Nelnet Shareholders Reaffirm Board, Auditor, and Pay Policies
Positive
May 18, 2026
Nelnet, Inc. held its 2026 annual meeting of shareholders on May 14, 2026, where investors re-elected three Class III directors—Kathleen A. Farrell, David S. Graff, and Thomas E. Henning—to serve until the 2029 annual meeting, signalin...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 07, 2026