Navient Corporation · NASDAQ:NAVI
Navient — Q3 2025 Earnings Presentation
26 slides from Navient's earnings presentation, Oct 29, 2025
Slide 1: 3Q 2025 Earnings Call Presentation
3Q 2025 Earnings Call Presentation Confidential and proprietary information © 2025 Navient Solutions, LLC. All rights reserved. 1
Slide 2: Notable Items in 3Q 2025
Notable Items in 3Q 2025 • We regularly review assumptions that we use in our reported results for our - Doubled Refinance loan origination volume for third consecutive quarter existing loan portfolios and update as needed throughout the year. - On path to exceed original operating expense reduction
Slide 3: 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 4: 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 3Q25 update. Phase 1 Focusing on cost reductions and capital allocation 1. Created a variable expense model for loan servicing • Outsource
Slide 5: 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 more than $400 million*. The expenses related to Earnest, our consumer lending business, ar
Slide 6: 3Q 2025 Results
3Q 2025 Results “Our third quarter results emphatically demonstrate our ability to drive high- quality loan growth. We are winning new customers - primarily graduate students - GAAP Core Earnings 1 by offering flexible products and a customer experience that meets their needs and exceeds their expec
Slide 7: Federal Education Loans – 3Q 2025 Core Earnings Results
Federal Education Loans – 3Q 2025 Core Earnings Results • Net income was $35 million compared to $27 million 3Q25 3Q24 • Net interest income increased $25 million primarily due to a decrease Revenue (Before Provision) $75 million $51 million in premium amortization due to both a decline in actual pr
Slide 8: Consumer Lending – 3Q 2025 Core Earnings Results
Consumer Lending – • Originated $788 million of Private Education Loans compared to 3Q 2025 Core Earnings Results $500 million the year-ago quarter, an increase of 58% - Refinance Loan originations were $528 million compared to $262 million 3Q25 3Q24 - In-school Loan originations were $260 million c
Slide 9: 3Q 2025 Allowance for Loan Losses
3Q 2025 Allowance for Loan Losses ($ in millions) $155 $765 $702 $963 $900 $13 $(105) • Our total provision expense was $168 million in 3Q25 • This consists of: - $13 million for our FFELP portfolio - $155 million of provision related to the Private Education portfolio, related to elevated delinquen
Slide 10: Business Processing – 3Q 2025 Core Earnings Results
Business Processing – 3Q 2025 Core Earnings Results 3Q25 3Q24 • Navient no longer provides business processing segment services following the divestiture of our Total Fee Revenue - $70 million healthcare business in 3Q24 and our government services business in Total Revenue (includes gain 1Q25 - $28
Slide 11: Total Expense – 3Q 2025 Core Earnings Results
Total Expense – 3Q 2025 Core Earnings Results 1 ($ in millions) • We are focused on becoming more $220 efficient across all segments $202 $200 • Total expenses for the quarter were Restructuring, $18 $109 million compared to $180 $202 million a year ago $160 Business Processing, $57 • Operating expe
Slide 12: 3Q 2025 Capital Allocation
3Q 2025 Capital Allocation 11% • Adjusted Tangible Equity 1 ratio of 9.3% 10% 9.8% • We distributed $42 million in 3Q25 to 0.1% 9.3% -0.4% 0.0% shareholders through dividends and -0.1% 9% -0.1% share repurchases • Announced new authority of additional 8% $100 million in share repurchase capacity 7%
Slide 13: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures The following information is current as of September 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
Slide 14: Differences Between GAAP and Core Earnings
Differences Between GAAP and Core Earnings Quarters Ended Core Earnings adjustments to GAAP: Sep. 30, Sep. 30, (Dollars in Millions) 2025 2024 GAAP net income (loss) $(86) $(2) Net impact of derivative accounting 8 56 Net impact of goodwill and acquired intangible assets 1 140 Net income tax effect
Slide 15: 3Q 2025 GAAP to Core Earnings
3Q 2025 GAAP to Core Earnings ($ in millions) $0 • We evaluate our business segments on a basis that differs from GAAP -$10 • We refer to this different basis as -$20 Core Earnings 1 • The two items we remove to result in -$30 Core Earnings are: -$40 - mark-to-market gains/losses from our use of der
Slide 16: Appendix
Appendix Confidential and proprietary information © 2025 Navient Solutions, LLC. All rights reserved. 16
Slide 17: 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 18: Loan Portfolio Cash Flows Greater than Debt Outstanding
Loan Portfolio Cash Flows Greater than Debt Outstanding • Projected loan portfolio cash flows as of September 30, 2025 - Principally securitization trust distributions • Net interest income • Total projected loan portfolio • Servicing fees undiscounted cash flows after • Return of initial equity rep
Slide 19: Federal Education Loans – Overview
Federal Education Loans – Overview • FFELP portfolio of $29 billion - no newly originated FFELP loans since 2010 ($ in millions) $600 - 97-100% of principal and interest 5-Year Projected Annual FFELP Cash Flows 2 guaranteed by U.S. government • Holding 50 basis points of equity capital against portf
Slide 20: Consumer Lending – Overview
Consumer Lending – Overview • Private Education Loan portfolio of $15 billion - Refinance education loan ($ 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 21: Total Education Loan Portfolio – Projected Cash Flows
Total Education Loan Portfolio – • Total Education Loan portfolio of $44 billion, undiscounted projected Projected Cash Flows cash flows are: ($ in millions) - $5.1 billion through end of 2029 $1,500 5-Year Projected Annual Education Portfolio Cash Flows 2 - $12.2 billion generated over 20 years • W
Slide 22: 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 23: 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 24: 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 25: Footnotes
Footnotes 1. Earnings before Interest, Taxes, Depreciation and Amortization Expense (“EBITDA”) – This metric measured the operating performance of the Business Processing segment and was used by management and our equity investors to monitor operating performance and determine the value of those bus
Slide 26: Confidential and proprietary information
Confidential and proprietary information © 2025 Navient Solutions, LLC. All rights reserved. 26