v3.26.1
Investments and Notes Receivable
 6 Months Ended
Jun. 30, 2026
Investments [Abstract]  
Investments and Notes Receivable Investments and Notes Receivable
“Total investments and notes receivable” consisted of the following:
As of June 30, 2026As of December 31, 2025
Amortized costGross unrealized gainsGross unrealized lossesFair valueAmortized costGross unrealized gainsGross unrealized lossesFair value
Investments at fair value:
Available-for-sale asset-backed securities
Non-Nelnet Bank:
FFELP loan$43,466 2,878 (146)46,198 36,824 2,950 (129)39,645 
FFELP loan and other debt securities - restricted (a)192,387 3,045 (662)194,770 172,739 3,384 (323)175,800 
Private education loan (b)177,299 90 (12,258)165,131 197,568 20 (13,436)184,152 
Other debt securities114,801 2,628 (70)117,359 55,874 2,528 — 58,402 
Total Non-Nelnet Bank527,953 8,641 (13,136)523,458 463,005 8,882 (13,888)457,999 
Nelnet Bank:
FFELP loan244,004 6,109 (778)249,335 258,208 6,513 (798)263,923 
Private education loan11,815 — (35)11,780 13,623 — (37)13,586 
Other debt securities797,091 721 (4,045)793,767 569,528 1,433 (1,481)569,480 
Total Nelnet Bank1,052,910 6,830 (4,858)1,054,882 841,359 7,946 (2,316)846,989 
Total available-for-sale asset-backed securities$1,580,863 15,471 (17,994)1,578,340 1,304,364 16,828 (16,204)1,304,988 
Equity securities and funds measured at net asset value123,052 109,648 
Total investments at fair value1,701,392 1,414,636 
Other investments and notes receivable (not measured at fair value):
Nelnet Bank: Held-to-maturity asset-backed securities - FFELP loan210,908 211,299 
Venture capital, funds, and other:
Measurement alternative236,062 227,962 
Equity method258,331 248,253 
Total venture capital and funds494,393 476,215 
Real estate equity method272,713 233,167 
ALLO:
Voting interest/equity method— — 
Preferred membership interest23,500 10,148 
Total interest in ALLO23,500 10,148 
Beneficial interest in loan securitizations (c):
Consumer and private education loans, net of allowance for credit losses of $55,123 and $50,802 as of June 30, 2026 and December 31, 2025, respectively
173,752 180,262 
Federally insured student loans15,100 14,568 
Total beneficial interest in loan securitizations, net of allowance188,852 194,830 
Solar (d)(286,992)(240,370)
Notes receivable41,772 32,085 
Tax liens, affordable housing, and other22,206 15,961 
Total other investments and notes receivable (not measured at fair value)967,352 933,335 
Total investments and notes receivable$2,668,744 $2,347,971 
(a)Represent investments held in third-party trusts as collateral for the Company’s reinsurance business.
(b)As sponsor of certain private education loan securitizations, the Company is required to provide a certain level of risk retention, and has purchased bonds issued in such securitizations to satisfy this requirement. The Company must retain these investment securities until the aggregate outstanding loan or bond balances in the securitization are met, at which time the Company can sell its investment securities (bonds) to a third party. The bonds purchased to satisfy the risk retention requirement are included in the above table and as of June 30, 2026, the amortized cost and fair value of these securities was $177.1 million and $164.9 million, respectively.
(c)The Company has partial ownership in certain securitizations. As of the latest remittance reports filed by the various trusts prior to or as of June 30, 2026, the Company's ownership correlates to approximately $950 million, $350 million, and $280 million of consumer, private education, and federally insured student loans, respectively, included in these securitizations.
The Company has recorded an allowance for credit losses (and related provision expense) related to certain loan securitizations, due primarily to an increase in cumulative loss expectations, of $2.4 million and $5.0 million during the three months ended June 30, 2026 and 2025, respectively, and $6.6 million and $6.5 million during the six months ended June 30, 2026 and 2025, respectively, which is included in “provision for beneficial interests” on the consolidated statements of income.
(d)As of June 30, 2026, the Company has contributed a total of $367.6 million and its third-party partners have contributed $469.7 million in tax equity to renewable energy solar partnerships that remain outstanding. The Company's carrying value in a solar project is reduced by tax credits earned when the solar project is placed in service. As of June 30, 2026, the Company and its third-party partners have earned $423.1 million and $464.2 million, respectively, of tax credits on those projects that remain outstanding. The Company’s negative carrying value related to solar tax partnerships on the consolidated balance sheet of $287.0 million as of June 30, 2026 represents the sum of total tax credits earned on solar projects placed in service and the calculated hypothetical liquidation at book value ("HLBV") cumulative net losses through June 30, 2026 being larger than the total contributions made by the Company and its syndication partners on such projects. The negative carrying value as of June 30, 2026, excluding the portion owned by syndication partners that is reflected as "noncontrolling interests" on the consolidated balance sheet, was $131.4 million.
The following table presents (i) HLBV losses recognized by the Company and gains recognized upon the sale of partnership interests, including amounts attributable to third-party noncontrolling interest partners (syndication partners), which are included in “other, net” in "other income (expense)" on the consolidated statements of income, (ii) solar net losses attributed to noncontrolling interest partners included in “net loss attributable to noncontrolling interests” on the consolidated statements of income, and (iii) the recognized pre-tax net (loss) gain attributable to the Company:
Three months ended June 30,Six months ended June 30,
2026202520262025
Losses from HLBV accounting (gross)$(29,351)(6,463)(51,882)(9,079)
Gains from sales (gross)6,854 4,961 6,854 8,033 
Losses from solar investments (gross)(22,497)(1,502)(45,028)(1,046)
Less: losses attributable to noncontrolling members(19,491)(3,159)(32,936)(4,204)
Net (loss) gain attributable to the Company$(3,006)1,657 (12,092)3,158 
The following table presents, by remaining contractual maturity, the amortized cost and fair value of debt securities:
As of June 30, 2026
1 year or lessAfter 1 year through 5 yearsAfter 5 years through 10 yearsAfter 10 yearsTotal
Available-for-sale asset-backed securities
Non-Nelnet Bank:
FFELP loan$— 206 2,543 40,717 43,466 
FFELP loan and other debt securities - restricted— 6,158 54,040 132,189 192,387 
Private education loan— — 215 177,084 177,299 
Other debt securities100 — 11,687 103,014 114,801 
Total Non-Nelnet Bank100 6,364 68,485 453,004 527,953 
Fair value100 6,446 68,319 448,593 523,458 
Nelnet Bank:
FFELP loan40,757 11,913 17,536 173,798 244,004 
Private education loan— — 11,720 95 11,815 
Other debt securities— 17,436 130,261 649,394 797,091 
Total Nelnet Bank40,757 29,349 159,517 823,287 1,052,910 
Fair value40,472 29,292 159,507 825,611 1,054,882 
Total available-for-sale asset-backed securities at amortized cost$40,857 35,713 228,002 1,276,291 1,580,863 
Total available-for-sale asset-backed securities at fair value$40,572 35,738 227,826 1,274,204 1,578,340 
Held-to-maturity asset-backed securities
Nelnet Bank:
FFELP loan - amortized cost$— 2,337 12,404 196,167 210,908 
FFELP loan - fair value$— 2,336 12,201 200,436 214,973 
Beneficial interest in loan securitizations (a):
Amortized cost$— — — — 188,852 
Fair value$— — — — 202,812 
(a) The Company's beneficial interest in loan securitizations is not due at a single maturity date.
The following table summarizes the unrealized positions for held-to-maturity asset-backed securities investments and the beneficial interest in loan securitizations as of June 30, 2026:
Carrying valueGross unrealized gainsGross unrealized lossesFair value
Asset-backed securities$210,908 4,869 (804)214,973 
Beneficial interest in loan securitizations188,852 14,885 (925)202,812 
The following table presents securities classified as available-for-sale that have gross unrealized losses as of June 30, 2026 and the fair value of such securities as of June 30, 2026. These securities are segregated between investments that had been in a continuous unrealized loss position for less than twelve months and twelve months or more, based on the point in time that the fair value declined below the amortized cost basis. All securities in the table below have been evaluated to determine if a credit loss exists. As part of that assessment, the Company concluded it currently has the intent and ability to retain these investments, and none of the unrealized losses were due to credit losses.
As of June 30, 2026
Unrealized loss position less than 12 monthsUnrealized loss position 12 months or moreTotal
Unrealized lossFair valueUnrealized lossFair valueUnrealized lossFair value
Available-for-sale asset-backed securities
Non-Nelnet Bank:
FFELP loan$(10)7,921 (136)2,408 (146)10,329 
FFELP loan and other debt securities - restricted(379)95,553 (283)16,719 (662)112,272 
Private education loan(7)208 (12,251)134,648 (12,258)134,856 
Other debt securities(70)17,401 — — (70)17,401 
Total Non-Nelnet Bank(466)121,083 (12,670)153,775 (13,136)274,858 
Nelnet Bank:
FFELP loan(154)38,238 (624)53,641 (778)91,879 
Private education loan(1)149 (34)11,536 (35)11,685 
Other debt securities(2,446)434,731 (1,599)41,695 (4,045)476,426 
Total Nelnet Bank(2,601)473,118 (2,257)106,872 (4,858)579,990 
Total available-for-sale asset-backed securities$(3,067)594,201 (14,927)260,647 (17,994)854,848 
The following table summarizes the gross proceeds received and gross realized gains and losses related to sales of available-for-sale asset-backed securities:
Three months endedSix months ended
June 30,June 30,
2026202520262025
Gross proceeds from sales$100,488 34,828 148,021 109,609 
Gross realized gains$535 622 966 1,555 
Gross realized losses(56)(27)(64)(478)
Net gains$479 595 902 1,077 
Equity securities and funds measured at net asset value
The following table summarizes the unrealized gains and losses related to equity securities and funds measured at net asset value held at June 30, 2026 and 2025. Realized and unrealized gains/losses are included in "other, net" in "other income (expense)" on the consolidated statements of income.
Three months endedSix months ended
June 30,June 30,
2026202520262025
Unrealized gains recognized during the period, net$10,489 2,752 2,688 4,134 
Less: realized losses on securities sold during the period, net421 — 1,879 — 
Unrealized gains on securities still held as of the reporting date, net$10,068 2,752 809 4,134