Navient Corporation · NASDAQ:NAVI
Navient — Q2 2025 Earnings Presentation
24 slides from Navient's earnings presentation, Jul 30, 2025
Slide 1: 2Q 2025 Earnings Call Presentation
2Q 2025 Earnings Call Presentation Confidential and proprietary information © 2025 Navient Solutions, LLC. All rights reserved. 1
Slide 2: Delivering Value to Shareholders
Delivering Value to Shareholders • Invest in capabilities to grow high-quality loan • Manage credit and interest rate risk and originations that generate targeted returns, help borrowers manage loans and explore opportunities to deepen Maximize the cash Enhance the value relationships through produc
Slide 3: Strategic Actions Update
Strategic Actions Update In January 2024 Navient announced strategic actions to simplify the company, reduce its expense base and enhance flexibility. Below is a 2Q25 update. Phase 1 Focusing on cost reductions and capital allocation 1. Created a variable expense model for loan servicing • Outsource
Slide 4: Phase 1 Cost Reductions
Phase 1 Cost Reductions Navient focused on reducing the expense base supporting its loan portfolios and non-growth businesses. Phase 1 decisions set Navient on a path where this expense base can be reduced by approximately $400 million*. The expenses related to Earnest, our consumer lending business
Slide 5: 2Q 2025 Results
2Q 2025 Results “Our second quarter results show strong momentum in loan origination growth, with over $1 billion in originations so far this year – nearly GAAP Core Earnings 1 double the first half of last year. The ambitious expense reduction target we set 18 months ago is within our reach, Revenu
Slide 6: Federal Education Loans – 2Q 2025 Core Earnings Results
Federal Education Loans – 2Q 2025 Core Earnings Results • Net income was $30 million compared to $28 million 2Q25 2Q24 • Net interest income increased $22 million primarily due to a decrease in premium amortization as a result of the Revenue (Before Provision) $65 million $50 million significant dec
Slide 7: Consumer Lending – 2Q 2025 Core Earnings Results
Consumer Lending – • Originated $500 million of Private Education Loans compared to 2Q 2025 Core Earnings Results $278 million the year-ago quarter - Refinance Loan originations were $443 million compared to $222 million - In-school Loan originations were 2Q25 2Q24 $57 million compared to $56 millio
Slide 8: 2Q 2025 Allowance for Loan Losses
2Q 2025 Allowance for Loan Losses ($ in millions) $29 $753 $8 $700 $702 $649 $(88) • Our total provision expense was $37 million in 2Q25 • This consists of: - $8 million for our FFELP portfolio - $29 million of provision related to the Private Education portfolio, related to origination of new loans
Slide 9: Business Processing – 2Q 2025 Core Earnings Results
Business Processing – 2Q 2025 Core Earnings Results • Navient no longer provides business processing segment services following the divestiture of our 2Q25 2Q24 healthcare business in 3Q24 and our government services business in Total Fee Revenue - $81 million 1Q25 • Navient is providing certain tra
Slide 10: Total Expense – 2Q 2025 Core Earnings Results
Total Expense – 2Q 2025 Core Earnings Results ($ in millions) • We are focused on becoming more $200 efficient across all segments $182 $180 • Total expenses for the quarter were Restructuring, $16 $100 million compared to $160 Regulatory, $12 $182 million a year ago $140 • Operating expenses includ
Slide 11: 2Q 2025 Capital Allocation
2Q 2025 Capital Allocation 11% 9.9% 0.1% 10% 0.0% 9.8% 0.0% -0.1% -0.1% • Adjusted Tangible Equity 1 ratio of 9% 9.8% • We distributed $40 million in 2Q25 to 8% shareholders through dividends and share repurchases • We issued $500 million of unsecured 7% debt and $536 million of ABS • We ended the q
Slide 12: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures The following information is current as of June 30, 2025 (unless otherwise noted) and should be read in connection with Navient Corporation’s “Navient” Annual Report on 2024 Form 10-K for the year ended December 31, 2024 (the “2024 Form 10-K
Slide 13: Differences Between GAAP and Core Earnings
Differences Between GAAP and Core Earnings Quarters Ended Core Earnings adjustments to GAAP: Jun. 30, Jun. 30, (Dollars in Millions) 2025 2024 GAAP net income (loss) $14 $36 Net impact of derivative accounting 8 (8) Net impact of goodwill and acquired intangible assets 1 3 Net income tax effect (2)
Slide 14: 2Q 2025 GAAP to Core Earnings
2Q 2025 GAAP to Core Earnings ($ in millions) $25 • We evaluate our business segments $1 on a basis that differs from GAAP $8 $21 • We refer to this different basis as ($2) Core Earnings 1 $20 • The two items we remove to result in Core Earnings are: - mark-to-market gains/losses from $15 $14 our us
Slide 15: Appendix
Appendix Confidential and proprietary information © 2025 Navient Solutions, LLC. All rights reserved. 15
Slide 16: FFELP Prepayments Influence Revenue and Cash Flow
FFELP Prepayments Influence Revenue • A period of lower-than-anticipated and Cash Flow FFELP Loan Prepayments extends There is a short-term lag between when loan prepayments occur and when the cash received is the expected life of the portfolio and applied to Asset Backed Securitization debt paydown
Slide 17: Loan Portfolio Cash Flows Greater than Debt Outstanding
Loan Portfolio Cash Flows Greater than Debt Outstanding • Projected loan portfolio cash flows as of June 30, 2025 - Principally securitization trust distributions • Net interest income • Total projected loan portfolio • Servicing fees undiscounted cash flows after • Return of initial equity repaymen
Slide 18: Federal Education Loans – Overview
Federal Education Loans – Overview • FFELP portfolio of $30 billion ($ in millions) - no newly originated FFELP loans $600 5-Year Projected Annual FFELP Cash Flows 2 since 2010 - 97-100% of principal and interest guaranteed by U.S. government • Holding 50 basis points of equity capital $400 against
Slide 19: Consumer Lending – Overview
Consumer Lending – Overview • Private Education Loan portfolio of $16 billion - Refinance education loan ($ in millions) originations since 2017 $1,000 5-Year Projected Annual Private Education Cash Flows 2 - In-school loan originations starting in 2019 and the seasoned loan portfolio • Holding equi
Slide 20: Total Education Loan Portfolio – Projected Cash Flows
Total Education Loan Portfolio – Projected Cash Flows • Total Education Loan portfolio of $45 billion, undiscounted projected ($ in millions) cash flows are: $1,500 5-Year Projected Annual Education Portfolio Cash Flows 1 - $5.6 billion through end of 2029 - $11.8 billion generated over 20 years $1,
Slide 21: Responsibility to Our Customers and Communities
Responsibility to Our Customers Empowering talent, encouraging and Communities development and fostering belonging We are committed to creating a workplace where employees are supported and proud Supporting education and economic opportunity to deliver meaningful outcomes Our education finance solut
Slide 22: For More Information
For More Information www.navient.com/investors www.navient.com/abs • Environmental Social Governance (ESG) information - Navient Corporate Social Responsibility report • Student loan asset-backed security (ABS) trust data - Static pool information – detailed portfolio stratifications by trust as of
Slide 23: Footnotes
Footnotes 1. Item is a Non-GAAP Financial Measure. In addition to financial results reported on a GAAP basis, Navient also provides certain performance measures which are non-GAAP financial measures. Definitions for the non-GAAP financial measures and reconciliations are provided below and in the bo
Slide 24: Confidential and proprietary information © 2025 Navient Solutions, LLC. All rights reserved.
Confidential and proprietary information © 2025 Navient Solutions, LLC. All rights reserved. 24