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Investing.com -- Navient Corporation (NASDAQ:NAVI) reported mixed first-quarter 2025 results, with earnings beating estimates but revenue falling short of expectations. The student loan servicer’s shares declined 2.9% following the announcement.
Navient posted adjusted earnings per share of $0.25, surpassing the analyst consensus of $0.22. However, revenue came in at $156 million, below the $179 million analysts had projected and down significantly from $273 million in the same quarter last year.
The company’s core earnings totaled $26 million for the quarter. Navient’s GAAP results showed a net loss of $2 million, or $0.02 per diluted share, which included a $4 million reduction to pre-tax income related to regulatory and restructuring expenses.
"We delivered strong performance during the first quarter," said David Yowan, president and CEO of Navient. "Our results demonstrate our capacity to double refi loan origination volume, generate strong revenue and cash flows from our legacy assets, and reduce operating expenses."
In its consumer lending segment, Navient originated $508 million of private education loans in Q1, including $470 million in refinance loans - more than double the $228 million originated in the same period last year.
The company’s federal education loans segment saw net income decline to $24 million from $40 million YoY, primarily due to lower interest income as the loan portfolio continued to pay down.
Navient completed the sale of its remaining government services business in February for $44 million, exiting the business processing segment entirely. The company repurchased $35 million of common shares during the quarter and paid $16 million in dividends.
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