$JSM

NAVIENT CORP

CIK:0001593538|SEC Filings

Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Interest income:
Cash and investments	$ 18	$ 22	$ 35	$ 43
Total interest income	682	778	1,376	1,580
Total interest expense	560	650	1,123	1,322
Net interest income (loss)	122	128	253	258
Less: provisions for loan losses	26	37	54	67
Net interest income (loss) after provisions for loan losses	96	91	199	191
Other income (loss):
Servicing revenue	10	14	21	27
Asset recovery and business processing revenue	0	0	0	23
Other income	17	19	22	33
Gains (losses) on derivative and hedging activities, net	1	(5)	6	(30)
Total other income (loss)	28	28	49	53
Expenses:
Salaries and benefits	27	35	59	84
Other operating expenses	55	65	112	143
Total operating expenses	82	100	171	227
Goodwill and acquired intangible asset impairment and amortization expense	0	1	4	2
Restructuring/other reorganization expenses	3	0	2	3
Total expenses	85	101	177	232
Income before income tax expense	39	18	71	12
Income tax expense	14	4	29	1
Net income	$ 25	$ 14	$ 42	$ 11
Basic earnings per common share	$ 0.27	$ 0.14	$ 0.44	$ 0.11
Average common shares outstanding	94	100	94	101
Diluted earnings per common share	$ 0.26	$ 0.13	$ 0.44	$ 0.11
Average common and common equivalent shares outstanding	95	101	95	102
Dividends per common share	$ 0.16	$ 0.16	$ 0.32	$ 0.32
FFELP Loans [Member]
Interest income:
Total interest income	$ 391	$ 483	$ 791	$ 975
Less: provisions for loan losses	8	8	17	16
Private Education Loans [Member]
Interest income:
Total interest income	273	273	550	562
Less: provisions for loan losses	$ 17	$ 29	$ 35	$ 51

Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions

6 Months Ended

Jun. 30, 2026

Jun. 30, 2025

Cash flows from operating activities

Net income

$ 42

$ 11

Adjustments to reconcile net income to net cash provided by operating activities:

Goodwill and acquired intangible asset impairment and amortization expense

Stock-based compensation expense

Mark-to-market (gains) losses on derivative and hedging activities, net

(28)

Provisions for loan losses

Decrease in accrued interest receivable

Increase (decrease) in accrued interest payable

(4)

Decrease (increase) in other assets

(3)

(Decrease) in other liabilities

(31)

(53)

Total adjustments

186

Net cash provided by operating activities

197

Cash flows from investing activities

Education loans originated and acquired

(1,719)

(1,103)

Proceeds from payments on education loans

3,006

2,460

Other investing activities, net

Disposal of subsidiaries, net of cash and restricted cash disposed of

Net cash provided by investing activities

1,330

1,406

Cash flows from financing activities

Borrowings collateralized by loans in trust - issued

1,949

1,081

Borrowings collateralized by loans in trust - repaid

(3,179)

(2,430)

Long-term unsecured notes issued

496

495

Long-term unsecured notes repaid

(506)

(554)

Other financing activities, net

Common stock repurchased

(26)

(59)

Common dividends paid

(30)

(32)

Net cash used in financing activities

(1,391)

(1,629)

Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents

(26)

Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period

2,104

2,103

Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period

2,139

2,077

Supplemental disclosure of cash flow information:

Interest paid

1,103

1,314

Income taxes paid

^[1]

Income taxes refunded

(6)

Reconciliation of the Consolidated Statements of Cash Flows to the Consolidated Balance Sheets:

Cash and cash equivalents

770

712

Restricted cash and restricted cash equivalents

1,369

1,365

Total cash, cash equivalents, restricted cash and restricted cash equivalents at end of period

2,139

2,077

Asset-backed Securities, Securitized Loans and Receivables [Member]

Cash flows from financing activities

Asset-backed commercial paper conduits, net

$ (127)

$ (160)

[1]

For the six months ended June 30, 2026 and 2025, the income taxes paid include $29 million and $0 million, respectively, for transferable tax credits purchased, net of discount. In the current period, the $29 million paid was for $31 million of transferable credits at a $2 million discount. The credit was used to reduce income tax liabilities from prior tax years in the current year provision.

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Assets
Loans held for sale	$ 528
Investments	116	$ 166
Cash and cash equivalents	770	637
Restricted cash and cash equivalents	1,369	1,467
Goodwill and acquired intangible assets, net	430	434
Other assets	2,363	2,385
Total assets	47,297	48,681
Liabilities
Short-term borrowings	4,214	5,073
Long-term borrowings	40,123	40,633
Other liabilities	562	576
Total liabilities	44,899	46,282
Commitments and contingencies
Equity
Common stock, par value $0.01 per share, 1.125 billion shares authorized: 468 million and 467 million shares issued, respectively	4	4
Additional paid-in capital	3,410	3,403
Accumulated other comprehensive income (net of tax expense of $4 and $1, respectively)	14	2
Retained earnings	4,562	4,552
Total stockholders' equity before treasury stock	7,990	7,961
Less: Common stock held in treasury at cost: 374 million and 371 million shares, respectively	(5,592)	(5,562)
Total equity	2,398	2,399
Total liabilities and equity	47,297	48,681
Series A Junior Participating Preferred Stock [Member]
Equity
Series A Junior Participating Preferred Stock, par value $0.20 per share; 2 million shares authorized at December 31, 2021; no shares issued or outstanding	0	0
FFELP Loans [Member]
Assets
Loans, net	26,575	28,141
Private Education Loans [Member]
Assets
Loans, net	15,146	15,451
Loans held for sale	$ 528	$ 0