Navient Corporation · NASDAQ:NAVI
Navient — Q4 2025 Earnings Presentation
28 slides from Navient's earnings presentation, Jan 28, 2026
Slide 1: 4Q 2025 Earnings Call Presentation
4Q 2025 Earnings Call Presentation Confidential and proprietary information © 2026 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 originations that generate targeted returns, • Manage credit and interest rate risk and and explore opportunities to deepen Maximize the cash help borrowers manage loans 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. Phase 1 Phase 2 COMPLETED IMPLEMENTING Focused on cost reductions and capital allocation Focusing on growth and cost of equity / valuation 1. Created
Slide 4: Phase 1 Expense Reduction Target - Achieved & Exceeded
Phase 1 Expense Reduction Target - Achieved & Exceeded We will overdeliver on our initial expense reduction target and eliminate more than $400 million in annual expense. This transformation reshaped how we operate, eliminated structural costs, and sharpened our focus on the activities that drive lo
Slide 5: 4Q 2025 and Full Year 2025 Results
4Q 2025 and Full Year 2025 Results “Our fourth quarter and full-year 4Q25 4Q25 FY25 FY25 GAAP Core Earnings1 GAAP Core Earnings1 performance demonstrates our ability to achieve high-quality loan growth and Revenue continue to reduce operating expenses. $137 million $144 million $610 million $672 mil
Slide 6: Earnest Growth in 2025
Earnest Growth in 2025 Loan Origination Growth 2024 2025 Change Performance Highlights Refi Originations ($m) $1,034 $2,076 2x • Strong Refi originations growth of 2x in 2025 Refi Rate Check Volume ($bn) 2 $6.5 $17.3 2.7x • Improved marketing efficiency In-School Originations ($m) 3 $366 $401 1.1x •
Slide 7: Maintaining Momentum through Year-End
Maintaining Momentum through Year-End Loan Origination Growth Q4 2024 Q4 2025 Change Refi Originations ($m) $322 $634 2.0x Refi Rate Check Volume ($bn) 2 $2.5 $4.6 1.8x Performance Highlights In-School Originations ($m) 3 $41 $46 1.1x • Continued 2x Refi originations Efficiency growth through end of
Slide 8: Consumer Lending – Core Earnings Results
Discussion of Results – 4Q25 vs. 4Q24 Consumer Lending – • Net income was $25 million compared to $37 million. Net interest income Core Earnings Results decreased $13 million, primarily due to the paydown and changing product mix of the portfolio. • Provision for loan losses increased 4Q25 4Q24 FY25
Slide 9: Federal Education Loans – Core Earnings Results
Federal Education Loans – Discussion of Results – 4Q25 vs. 4Q24 Core Earnings Results • Net income was $27 million compared to $10 million • Revenue - Net interest income increased by 4Q25 4Q24 FY25 FY24 $9 million primarily due to the impact of decreasing interest rates, which was Revenue (Before P
Slide 10: 4Q 2025 Allowance for Loan Losses
4Q 2025 Allowance for Loan Losses ($ in millions) $43 • Our total provision expense was $765 $44 million in 4Q25 $250 $1 • This consists of: $707 - $1 million for our FFELP portfolio $193 $(101) - $43 million of provision related to the Private Education portfolio, $9 million of which related to new
Slide 11: Business Processing – Core Earnings Results
Business Processing – Core Earnings Results 4Q25 4Q24 FY25 FY24 • Navient no longer provides business processing segment services Total Fee Revenue - $43 million $23 million $271 million following the divestiture of our healthcare business in 3Q24 and our Total Revenue government services business i
Slide 12: Total Expense – Core Earnings Results
Total Expense – Core Earnings Results1 • We have achieved and will ($ in millions) overdeliver on the $400 million $900 expense reduction we set out at the $825 end of 2023 $800 $719 • We are focused on becoming more $700 efficient across all segments • Operating expenses for the quarter $600 were $
Slide 13: 4Q 2025 Capital Allocation
4Q 2025 Capital Allocation 11% • Adjusted Tangible Equity 1 ratio of 9.1% 10% • We distributed $41 million in 4Q25 to shareholders through dividends and 9.3% 0.0% 0.0% 9.1% share repurchases, resulting in a total 9% 0.0% -0.1% -0.1% distribution of $175 million in 2025 • We expect to continue our 8%
Slide 14: 2026 Outlook
2026 Outlook Strong Origination Growth Strong Operating Leverage Core Earnings Total loan originations of Full Year 2026 total expenses of Full Year 2026 $4 billion, representing an $350 million Core Earnings per Share1 of increase of more than 60% $0.65 - $0.80 compared to FY2025 Net of incremental
Slide 15: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures The following information is current as of December 31, 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
Slide 16: Differences Between GAAP and Core Earnings
Differences Between GAAP and Core Earnings Quarters Ended Years Ended Core Earnings adjustments to GAAP: Dec. 31, Dec. 31, 2025 2024 (Dollars in Millions) 2025 2024 GAAP net income (loss) $(5) $24 $(80) $131 Net impact of derivative accounting 7 (60) 62 (33) Net impact of goodwill and acquired intan
Slide 17: 4Q 2025 GAAP to Core Earnings
4Q 2025 GAAP to Core Earnings ($ in millions) $4 • We evaluate our business segments on a basis that differs from GAAP $1 $3 • We refer to this different basis as $7 $2 Core Earnings 1 $2 ($1) • The two items we remove to result in $1 Core Earnings are: - mark-to-market gains/losses from $0 our use
Slide 18: Appendix
Appendix Confidential and proprietary information © 2026 Navient Solutions, LLC. All rights reserved. 18
Slide 19: FFELP Prepayments Influence Revenue and Cash Flow
FFELP Prepayments Influence Revenue • A period of lower-than-anticipated and Cash Flow FFELP Loan Prepayments extends There is a short-term lag between when loan prepayments occur and when the cash received is the expected life of the portfolio and applied to Asset Backed Securitization debt paydown
Slide 20: Loan Portfolio Cash Flows Greater than Debt Outstanding
Loan Portfolio Cash Flows Greater than Debt Outstanding • Projected loan portfolio cash flows as of December 31, 2025 - Principally securitization trust distributions • Net interest income • Total projected loan portfolio • Servicing fees undiscounted cash flows after • Return of initial equity repa
Slide 21: Federal Education Loans – Overview
Federal Education Loans – Overview ($ in millions) • FFELP portfolio of $28 billion $600 - no newly originated FFELP loans 5-Year Projected Annual FFELP Cash Flows 6 since 2010 - 97-100% of principal and interest guaranteed by U.S. government • Holding 50 basis points of equity capital against portf
Slide 22: Consumer Lending – Overview
Consumer Lending – Overview ($ in millions) • Private Education Loan portfolio of 5-Year Projected Annual Private Education Cash Flows 6 $15 billion $1,000 - Refinance education loan originations since 2017 - In-school loan originations starting in $800 2019 and the seasoned loan portfolio • Project
Slide 23: Total Education Loan Portfolio – Projected Cash Flows
Total Education Loan Portfolio – Projected Cash Flows • Total Education Loan portfolio of ($ in millions) $44 billion, undiscounted projected cash flows are: $1,500 5-Year Projected Annual Education Portfolio Cash Flows 6 - $5.8 billion through end of 2030 - $12.0 billion generated over 20 years $1,
Slide 24: 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 25: 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 26: 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 27: Footnotes
Footnotes Sales & Marketing, Other Operating Expenses as a % of Originations – these metrics measure the operating efficiency of Earnest’s loan originations and are used by management and our investors to monitor operating performance and the profitability of the business. The Earnest business resid
Slide 28: Confidential and proprietary information © 2026 Navient Solutions, LLC. All rights reserved.
Confidential and proprietary information © 2026 Navient Solutions, LLC. All rights reserved. 28