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JSM

Navient Corporation SR NT 6% 121543

JSM

Navient Corporation SR NT 6% 121543 • NASDAQ
$19.78 ▲ 0.82% (+0.16)
Market Cap $5.42 B
52w High $20.50
52w Low $16.51
Dividend Yield 1.50%
P/E 16.44
Volume 8.06K
Outstanding Shares 274.10M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $781M ▲ $105M ▲ $-86M ▼ -11.012% ▼ $-0.87 ▼ $522M ▼
Q2-2025 $778M ▼ $100M ▼ $14M ▲ 1.799% ▲ $0.14 ▲ $643M ▲
Q1-2025 $802M ▼ $127M ▼ $-2M ▼ -0.249% ▼ $-0.02 ▲ $626M ▼
Q4-2024 $2.353B ▲ $571M ▲ $24M ▲ 1.02% ▲ $-0.98 ▼ $906M ▼
Q3-2024 $948M $184M $-2M -0.211% $-0.018 $1.924B

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $1.872B ▼ $49.306B ▼ $46.867B ▼ $2.439B ▼
Q2-2025 $2.077B ▲ $50.222B ▼ $47.658B ▼ $2.564B ▼
Q1-2025 $2.055B ▼ $50.95B ▼ $48.361B ▼ $2.589B ▼
Q4-2024 $2.103B ▼ $51.789B ▼ $49.148B ▼ $2.641B ▼
Q3-2024 $2.793B $53.44B $50.746B $2.694B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-86M ▼ $70M ▼ $559M ▼ $-834M ▲ $-205M ▼ $70M ▼
Q2-2025 $13M ▲ $126M ▲ $745M ▲ $-849M ▼ $22M ▲ $126M ▲
Q1-2025 $-2M ▼ $71M ▲ $661M ▼ $-780M ▲ $-48M ▲ $71M ▲
Q4-2024 $24M ▲ $8M ▲ $907M ▼ $-1.605B ▲ $-690M ▲ $8M ▲
Q3-2024 $-2M $-10M $1.961B $-3.164B $-1.213B $-10M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Consumer Lending
Consumer Lending
 $0 ▲$0 ▲$0 ▲$0 ▲
Federal Education Loans Segment
Federal Education Loans Segment
 $0 ▲$10.00M ▲$10.00M ▲$10.00M ▲
Other Operating Segment
Other Operating Segment
 $0 ▲$10.00M ▲$20.00M ▲$10.00M ▼
Business Processing
Business Processing
 $0 ▲$20.00M ▲$0 ▼$0 ▲
Government Services
Government Services
 $90.00M ▲$0 ▼$0 ▲$0 ▲
Healthcare Services
Healthcare Services
 $30.00M ▲$0 ▼$0 ▲$0 ▲

Five-Year Company Overview

Income Statement

Income Statement Navient’s income statement shows a business in transition, with results that move around quite a bit from year to year. Revenue has swung meaningfully, reflecting loan portfolio run‑off, the exit from federal servicing, and growth in newer areas like Earnest. Profitability has generally remained positive at the net income level, but margins have tightened and earnings are lower than earlier in the period. There was also a year with very weak operating profitability, which suggests earnings can be sensitive to credit costs, funding costs, or one‑time charges. Overall, the company is still profitable, but earnings quality and consistency are key points to watch as the new strategy takes hold.

Balance Sheet

Balance Sheet The balance sheet is very large relative to equity, which is typical for a lender but still means the business is highly leveraged. Total assets and total debt have both been coming down over the past few years, which points to a gradual shrinking and de‑risking of the loan book. Cash levels have moved around but recently improved, giving the company a bit more liquidity cushion than in some prior years. Equity has stayed fairly small but relatively stable, suggesting the company has not been adding much new capital but also hasn’t been rapidly eroding its capital base. The main takeaway is a highly geared but slowly slimming balance sheet that still depends heavily on efficient funding and tight risk control.

Cash Flow

Cash Flow Navient has generated positive operating cash flow in each of the past several years, which is encouraging for a financial business going through restructuring. Free cash flow closely tracks operating cash flow, as the company has minimal traditional capital spending; its “investment” is mainly in loans rather than physical assets. Cash generation has been solid but not spectacular, so there is limited room for major missteps without feeling pressure on funding or capital. The pattern supports the idea of a capital‑light, fee‑ and spread‑based model, but it also means performance is closely tied to credit quality and the cost of borrowing. Consistent, predictable cash flow from Earnest and any remaining servicing or BPO activities will be important to monitor.

Competitive Edge

Competitive Edge Navient’s competitive position is shifting from being a large federal student loan servicer to becoming a more focused fintech and specialty finance player. Its strengths lie in long experience with education lending, data‑driven underwriting, and the Earnest brand, which has carved out a strong role in private student loan refinancing. The company also benefits from long practice accessing capital markets and securitizing loans, which is a key advantage in a funding‑intensive business. On the other hand, competition in fintech lending and private student loans is intense, with banks, other fintechs, and traditional lenders all targeting similar customers. Exiting federal servicing and selling off government and healthcare BPO units narrows the business mix, which can sharpen focus but also reduces diversification and may increase reliance on a smaller set of products and customers.

Innovation and R&D

Innovation and R&D Innovation is centered on Earnest’s technology platform and on the use of data and analytics across the business. Earnest uses more detailed financial data and a digital‑first experience to try to differentiate its loans, with flexible repayment options and a streamlined online process. Navient has also applied analytics and integrated technology in its former government and healthcare processing businesses, though those are being sold or wound down, which shifts the innovation focus even more squarely onto Earnest. The “Phase 2” strategy aims to expand Earnest’s product range beyond student loans, deepen customer relationships, and make the model more fee‑driven and capital‑efficient. The big execution risk is whether these data‑driven models and new products perform well through full credit cycles and whether the company can scale without sacrificing credit quality or profitability.

Summary

Navient is in the middle of a major overhaul, moving away from legacy federal loan servicing toward a more focused fintech and private lending model built around Earnest. Financially, it remains profitable with positive cash generation, but earnings have become less robust and more volatile, and the balance sheet is still highly leveraged even as it gradually shrinks. The core opportunity lies in using technology and data to build a higher‑growth, more capital‑light business with deeper customer relationships and more predictable fee income. Key uncertainties include credit performance in a changing rate and economic environment, the cost and availability of funding, and how well the company executes on the “Phase 2” strategy while slimming down its legacy operations. Overall, this is a story of transition from a complex, regulator‑heavy servicing model to a more focused fintech and specialty finance platform, with meaningful upside and downside risks tied to execution and the broader credit cycle.