NAVIENT (JSM) Company Report

Analyst Coverage

Research analysts who have asked questions during NAVIENT earnings calls.

Caroline Latta

Bank of America

2 questions for JSM

Also covers: ADP, SLM

Jeffrey Adelson

Morgan Stanley

2 questions for JSM

Also covers: ALLY, AXP, BFH +7 more

Mark DeVries

Deutsche Bank

2 questions for JSM

Also covers: ALLY, AXP, BUR +9 more

Rick Shane

JPMorgan Chase & Co.

2 questions for JSM

Also covers: ABR, ACT, AGNC +9 more

Sanjay Sakhrani

Keefe, Bruyette & Woods (KBW)

2 questions for JSM

Also covers: ALLY, AVDX, AXP +18 more

Terry Ma

Barclays

2 questions for JSM

Also covers: AER, AL, AXP +16 more

William Ryan

Seaport Research Partners

2 questions for JSM

Also covers: AGM, ENVA, LC +1 more

Latest news

Recent press releases and 8-K filings for JSM.

JSM Reports Q4 and Full-Year 2025 Results, Provides 2026 Outlook

JSM

Earnings

Guidance Update

Management Change

JSM reported Q4 2025 core earnings per share of $0.02 and a full-year 2025 core loss per share of $0.35, while exceeding its $400 million operating expense reduction objective for 2025.
Earnest achieved significant growth in 2025, with $2.1 billion in refi originations and $401 million in in-school originations.
For 2026, JSM targets total loan originations of $4 billion, representing 60% growth, with an expected core EPS range of $0.65-$0.80 and expenses of $350 million.
The company recorded an additional provision on its private legacy portfolio in Q4 2025, with the reserve coverage ending the year in the mid-3% range.

Jan 28, 2026, 1:00 PM

Transcript

Navient Reports Q4 and Full-Year 2025 Results, Provides 2026 Outlook, and Announces CFO Change

JSM

Earnings

Guidance Update

Management Change

Navient reported a core earnings per share of $0.02 for Q4 2025 and a core loss per share of $0.35 for the full year 2025.
The company provided a 2026 outlook, targeting total loan originations of $4 billion, representing approximately 60% growth over 2025, with refi and in-school lending growth expected to exceed 50% each.
Navient expects full-year 2026 core EPS in the range of $0.65-$0.80, which includes a $0.35-$0.40 per share impact due to upfront CECL charges and operating expenses related to an expected $1.5 billion year-over-year increase in loan originations.
The company exceeded its $400 million expense reduction objective for legacy activities in 2025 and expects 2026 expenses to be $350 million, which is $88 million lower than 2025.
Steve Hauber was appointed Chief Financial Officer earlier in January 2026, succeeding Joe Fisher.

Jan 28, 2026, 1:00 PM

Transcript

Navient Reports Q4 and Full Year 2025 Results, Provides 2026 Outlook

JSM

Earnings

Guidance Update

Share Buyback

Navient reported Q4 2025 Core Earnings diluted EPS of $0.02 and FY 2025 Core Earnings diluted EPS of $(0.35) on $672 million in full-year revenue.
The company completed Phase 1 of its strategic actions, achieving over $400 million in expense reductions and an 85% headcount reduction compared to YE2023 by outsourcing loan servicing and divesting business processing divisions.
Earnest demonstrated significant growth in 2025, with Refi Originations doubling to $2,076 million and In-School Originations increasing 1.1x to $401 million, alongside improved marketing and operating expense efficiency.
JSM distributed $175 million to shareholders in 2025 through dividends and share repurchases, including $41 million in Q4 2025.
For 2026, the company projects $4 billion in total loan originations (over 60% increase), $350 million in total expenses, and Core Earnings per Share between $0.65 and $0.80.

Jan 28, 2026, 1:00 PM

Presentation

Navient Reports Q4 2025 Results and Provides 2026 Outlook

JSM

Earnings

Guidance Update

Management Change

Navient reported Q4 2025 consumer lending net income of $25 million, compared to $37 million in Q4 2024, and recorded a $43 million provision in the quarter, with $9 million related to new originations. The provision had a significant impact on reported earnings per share, largely due to the private legacy portfolio.
For the full year 2025, Earnest achieved $2.1 billion in refi originations and $401 million in in-school originations, representing more than double the prior year's volume and the highest-ever level, respectively.
The company provided a 2026 outlook targeting $4 billion in total loan originations, which would represent approximately 60% growth over 2025, with refi and in-school lending growth each expected to exceed 50%.
Navient expects 2026 expenses of $350 million, an $88 million reduction from 2025, and projects a core EPS range of $0.65-$0.80 for the full year. This EPS range includes a $0.35-$0.40 per share impact from upfront CECL charges and operating expenses related to the expected $1.5 billion year-over-year increase in loan originations.
Steve Hauber was appointed Chief Financial Officer earlier in January 2026, and the company is migrating towards a holding company management structure with lower central costs.

Jan 28, 2026, 1:00 PM

Transcript

Navient Outlines Strategic Update and Earnest Growth Plan

JSM

New Projects/Investments

Guidance Update

Revenue Acceleration/Inflection

Navient has completed Phase 1 of its strategy, which maximized cash flows from legacy portfolios and generated an additional $2 billion in discretionary cash.
The company is now focused on Phase 2 to grow earnings by segmenting its business into Navient (legacy loans, in-school business) and Earnest (student loan refinancing, personal loans, and other future products).
Earnest is projected to achieve an operating profit of approximately $70 million for the year, with a pre-tax Return on Equity (ROE) estimated at 12%. A strategic shift to vertical securitization is expected to potentially increase Earnest's ROE by two or three times.
Operational improvements at Earnest include a new lending platform that boosted loan automation from 57% to almost 80% and increased conversion rates by nearly 50%. Sales and marketing expense to originations has decreased to 2.3%.
Navient aims for approximately $4 billion in originations this year and is expanding into the personal loans market, currently in a pilot phase, leveraging its existing customer base.

Nov 19, 2025, 4:00 PM

Transcript

Navient Outlines Phase 2 Strategy for Earnest Growth and Efficiency

JSM

New Projects/Investments

Guidance Update

Revenue Acceleration/Inflection

Navient's Phase 2 Strategy focuses on growing its Earnest division, with a restructuring program anticipated to add ~$2 billion to existing net cash flow for growth investments or distributions.
Earnest projects significant growth, with Annual Originations increasing 2.5x from $971 million in 2023 to $2,400 million in 2025E, while improving efficiency by reducing Sales & Marketing Expenses as a % of originations from 5.6% to 2.3%.
Earnest plans to expand its product offerings, with a Personal Loans pilot stage and agency rating planned for 2026, followed by a full launch for high-value customers in 2027.
From 2026, the origination of In-School private loans will be performed by a non-Earnest Navient entity, allowing Earnest to concentrate on Student Loan Refinancing and personal loans.

Nov 19, 2025, 4:00 PM

Presentation

Navient Outlines Phase Two Growth Strategy and Earnest's Strategic Focus

JSM

New Projects/Investments

Revenue Acceleration/Inflection

Guidance Update

Navient has completed Phase One, which maximized cash flows from legacy portfolios, adding an additional $2 billion in discretionary cash.
The company is executing Phase Two to grow earnings, strategically separating Navient (legacy loans, in-school business) from Earnest (fintech-like student loan refinancing and personal loans).
Earnest has achieved significant operational efficiencies, increasing originations 2.5 times and quadrupling quarterly lead check volume since 2023, while reducing sales and marketing expense to originations to 2.3% this year.
Earnest is adopting vertical securitization for new loans to maximize return on equity, with an expected 2-3 times boost, and plans a full launch of personal loans for high-value customers in 2027.
The $12 billion annual in-school and graduate lending opportunity is being transferred from Earnest to Navient.

Nov 19, 2025, 4:00 PM

Transcript

Navient Updates Strategy for Earnest Growth

JSM

New Projects/Investments

Revenue Acceleration/Inflection

Navient has completed Phase One of its strategy, which focused on maximizing cash flows from legacy portfolios, and is now in Phase Two, aimed at growing earnings through Earnest. Earnest is being repositioned as a fintech-like entity, distinct from Navient's legacy student loan business.
For 2025, Earnest's financial snapshot projects $200 million of revenue, with approximately 25% derived from servicing income, and an estimated pre-tax Return on Equity (ROE) of about 12%.
The company is transitioning its securitization strategy to vertical securitization to maximize ROE, which could potentially increase the current ROE by two or three times, and aims to get loans off-balance sheet through loan sales.
Since 2023, Earnest has increased originations by two and a half times and quadrupled its statistical quarterly rate check volume, while reducing sales and marketing expense to originations to 2.3%.
Earnest plans to expand into personal lending, leveraging its existing customer base, with a full launch anticipated in 2027, targeting a $36 billion market segment for high-FICO customers.

Nov 19, 2025, 4:00 PM

Transcript

JSM Reports Q3 2025 Adjusted EPS of $0.29, Raises Loan Origination Guidance, and Exceeds Expense Reduction Target

JSM

Earnings

Guidance Update

Share Buyback

JSM reported a core loss per share of $0.84 and adjusted earnings per share of $0.29 for Q3 2025, providing a Q4 outlook of $0.30 to $0.35 per share.
The company recorded a $168 million provision, with $151 million allocated to previously originated loans due to credit trends and lower prepayment activity, which also contributed to an approximate $195 million increase in projected life-of-loan cash flows.
Total loan originations in the Consumer Lending segment increased 58% year-over-year to $788 million, primarily driven by over 100% growth in refi originations. Full-year total loan originations guidance was raised to around $2.4 billion, exceeding initial guidance by over 30%.
JSM surpassed its initial $400 million run-rate expense reduction target from January 2024, with total core expenses declining $93 million to $109 million year-over-year.
The company returned $42 million to shareholders through dividends and the repurchase of 2 million shares at an average price of $13.19.

Oct 29, 2025, 12:00 PM

Transcript

Navient Reports Q3 2025 Results, Exceeds Expense Reduction Target, and Authorizes New Share Repurchase

JSM

Earnings

Share Buyback

Guidance Update

JSM reported a Core Earnings per Share of $(0.84) and an Adjusted Core Earnings per Share of $0.29 for Q3 2025, reflecting significant items such as a $(1.17) impact from provision on previous originations.
The company is on track to exceed its original operating expense reduction target of $400 million and has reduced employee headcount by over 80% from year-end 2023 through Q3 2025 as part of its Phase 1 strategic actions, which included divesting business processing divisions.
JSM announced a new share repurchase authority of $100 million and distributed $42 million to shareholders in Q3 2025 through dividends and share repurchases.
The total education loan portfolio stands at $44 billion, with projected undiscounted cash flows of $5.1 billion through the end of 2029 and $12.2 billion over 20 years.