14. Segment Reporting

We monitor and assess our ongoing operations and results based on the following three reportable operating segments: Consumer Lending, Federal Education Loans, and Other. As of February 2025, we had divested our Business Processing segment.

These segments meet the quantitative thresholds for reportable operating segments. Accordingly, the results of operations of these reportable operating segments are presented separately. The underlying operating segments are used by the Company’s chief operating decision maker, our chief executive officer, to manage the business, review operating performance and allocate resources, and qualify to be aggregated as part of the primary reportable operating segments. As discussed further below, we measure the profitability of our operating segments based on Core Earnings net income. Accordingly, information regarding our reportable operating segments' net income is provided on a Core Earnings basis.

Consumer Lending Segment

Navient owns and manages Private Education Loans and is the master servicer for these portfolios. Through our Earnest brand, we originate in-school Private Education Loans, including undergraduate and graduate products, we refinance education loans for high-quality borrowers and we intend to expand into adjacent lending products over time. "Refinance" Private Education Loans are loans where a borrower has refinanced their education loans, and "In-school" Private Education Loans are loans originally made to borrowers while they are attending school. We generate revenue primarily through net interest income on our Private Education Loan portfolio.

The following table includes asset information for our Consumer Lending segment.


	December 31,
(Dollars in millions)	2025		2024
Private Education Loans, net	$	15,451	$	15,716
Cash and investments(1)		529		524
Other		565		569
Total assets	$	16,545	$	16,809

(1)

Includes restricted cash and investments.

Federal Education Loans Segment

Navient owns and manages FFELP Loans and is the master servicer on this portfolio. We generate revenue primarily through net interest income on our FFELP Loans.

The following table includes asset information for our Federal Education Loans segment.


	December 31,
(Dollars in millions)	2025		2024
FFELP Loans, net	$	28,141	$	30,852
Cash and investments(1)		1,034		955
Other		1,681		1,818
Total assets	$	30,856	$	33,625

(1)

Includes restricted cash and investments.

14. Segment Reporting (Continued)

Business Processing Segment

In September 2024, Navient completed the sale of Xtend, which comprised the Company's healthcare services business in its Business Processing segment. In February 2025, Navient completed the sale of its government services businesses, which constituted the remainder of the Business Processing segment. Prior to the sale of its healthcare and government services businesses, Navient provided business processing solutions such as omnichannel contact center services, workflow processing, and revenue cycle optimization.

At December 31, 2025 and 2024, the Business Processing segment had total assets of $0 and $103 million, respectively.

Other Segment

This segment consists of our corporate liquidity portfolio, gains and losses incurred on the repurchase of debt, unallocated shared services which include certain corporate and IT costs as well as regulatory expenses, and restructuring/other reorganization expenses. Additionally, the segment contains the revenue and expenses in connection with the transition services we performed related to the outsourcing of loan servicing and divestiture of our Business Processing segment.

Unallocated shared services expenses are comprised of costs primarily related to information technology costs related to infrastructure and operations, stock-based compensation expense, accounting, finance, legal, compliance and risk management, regulatory-related expenses, human resources, certain executive management and the Board of Directors. Regulatory-related expenses include actual settlement amounts as well as third-party professional fees we incur in connection with such regulatory matters and are presented net of any insurance reimbursements for covered costs related to such matters.

At December 31, 2025 and 2024, the Other segment had total assets of $1.3 billion and $1.3 billion, respectively.

14. Segment Reporting (Continued)

Measure of Profitability

We prepare financial statements and present financial results in accordance with GAAP. However, we also evaluate our business segments and present financial results on a basis that differs from GAAP. We refer to this different basis of presentation as Core Earnings. We provide this Core Earnings basis of presentation on a consolidated basis and for each business segment because this is what we review internally when making management decisions regarding our performance and how we allocate resources. We also refer to this information in our presentations with credit rating agencies, lenders and investors. Because our Core Earnings basis of presentation corresponds to our segment financial presentations, we are required by GAAP to provide Core Earnings disclosure in the notes to our consolidated financial statements for our business segments.

Core Earnings are not a substitute for reported results under GAAP. We use Core Earnings to manage our business segments because Core Earnings reflect adjustments to GAAP financial results for two items, discussed below, that can create significant volatility mostly due to timing factors generally beyond the control of management. Accordingly, we believe that Core Earnings provide management with a useful basis from which to better evaluate results from ongoing operations against the business plan or against results from prior periods. Consequently, we disclose this information because we believe it provides investors with additional information regarding the operational and performance indicators that are most closely assessed by management. When compared to GAAP results, the two items we remove to result in our Core Earnings presentations are:

Mark-to-market gains/losses resulting from our use of derivative instruments to hedge our economic risks that do not qualify for hedge accounting treatment or do qualify for hedge accounting treatment but result in ineffectiveness; and

The accounting for goodwill and acquired intangible assets.

While GAAP provides a uniform, comprehensive basis of accounting, for the reasons described above, our Core Earnings basis of presentation does not. Core Earnings are subject to certain general and specific limitations that investors should carefully consider. For example, there is no comprehensive, authoritative guidance for management reporting. Our Core Earnings are not defined terms within GAAP and may not be comparable to similarly titled measures reported by other companies. Accordingly, our Core Earnings presentation does not represent a comprehensive basis of accounting. Investors, therefore, may not be able to compare our performance with that of other financial services companies based upon Core Earnings. Core Earnings results are only meant to supplement GAAP results by providing additional information regarding the operational and performance indicators that are most closely used by management, our Board of Directors, credit rating agencies, lenders and investors to assess performance.

14. Segment Reporting (Continued)

Segment Results and Reconciliations to GAAP


	Year Ended December 31, 2025
				Adjustments												Reportable Segments
(Dollars in millions)	Total GAAP			Reclassi- fications			Additions/ (Subtractions)			Total Adjustments (1)			Total Core Earnings			Consumer Lending		Federal Education Loans			Business Processing		Other
Interest income:
Education loans	$	3,025														$	1,122	$	1,903		$	—	$	—
Cash and investments		83															20		39			—		24
Total interest income		3,108															1,142		1,942			—		24
Total interest expense		2,589															731		1,730			—		96
Net interest income (loss)		519		$	18		$	14		$	32		$	551			411		212			—		(72	)
Less: provisions for loan losses		280												280			249		31			—		—
Net interest income (loss) after provisions for loan losses		239															162		181			—		(72	)
Other income (loss):
Servicing revenue		51															11		40			—		—
Asset recovery and business processing revenue		23															—		—			23		—
Other revenue		17															1		(1	)		—		47
Total other income (loss)		91			(18	)		48			30			121			12		39			23		47
Expenses:
Direct operating expenses		237															147		70			20		—
Unallocated shared services expenses		184															—		—			—		184
Operating expenses(2)		421			—			—			—			421			147		70			20		184
Goodwill and acquired intangible asset impairment and amortization		3			—			(3	)		(3	)		—			—		—			—		—
Restructuring/other reorganization expenses		17			—			—			—			17			—		—			—		17
Total expenses		441			—			(3	)		(3	)		438			147		70			20		201
Income (loss) before income tax expense (benefit)		(111	)					65			65			(46	)		27		150			3		(226	)
Income tax expense (benefit)(3)		(31	)		—			20			20			(11	)		7		35			1		(54	)
Net income (loss)	$	(80	)	$	—		$	45		$	45		$	(35	)	$	20	$	115		$	2	$	(172	)

(1)

Core Earnings adjustments to GAAP:


	Year Ended December 31, 2025
(Dollars in millions)	Net Impact of Derivative Accounting		Net Impact of Acquired Intangibles			Total
Net interest income (loss) after provisions for loan losses	$	32	$	—		$	32
Total other income (loss)		30		—			30
Goodwill and acquired intangible asset impairment and amortization		—		(3	)		(3	)
Total Core Earnings adjustments to GAAP	$	62	$	3			65
Income tax expense (benefit)							20
Net income (loss)						$	45

(2)

Reportable segment significant operating expenses are comprised of:


	Year Ended December 31, 2025
(Dollars in millions)	Consumer Lending		Federal Education Loans		Business Processing		Other		Total
Servicing expenses	$	53	$	65	$	—	$	5	$	123
Information technology expenses		34		—		1		77		112
Corporate expenses		1		2		—		84		87
Other/remaining expenses		59		3		19		18		99
Operating expenses	$	147	$	70	$	20	$	184	$	421

(3)

Income taxes are based on a percentage of net income before tax for the individual reportable segment.

14. Segment Reporting (Continued)


	Year Ended December 31, 2024
			Adjustments											Reportable Segments
(Dollars in millions)	Total GAAP		Reclassi- fications			Additions/ (Subtractions)			Total Adjustments (1)			Total Core Earnings		Consumer Lending		Federal Education Loans		Business Processing		Other
Interest income:
Education loans	$	3,655												$	1,259	$	2,397	$	—	$	—
Cash and investments		154													25		88		—		41
Total interest income		3,809													1,284		2,485		—		41
Total interest expense		3,273													786		2,323		—		128
Net interest income (loss)		536	$	35		$	2		$	37		$	573		498		162		—		(87	)
Less: provisions for loan losses		113											113		112		1		—		—
Net interest income (loss) after provisions for loan losses		423													386		161		—		(87	)
Other income (loss):
Servicing revenue		54													10		44		—		—
Asset recovery and business processing revenue		271													—		—		271		—
Other revenue		100													1		5		—		24
Gain on sale of subsidiaries, net		191		—			—			—			—		—		—		191		—
Total other income (loss)		616		(35	)		(35	)		(70	)		546		11		49		462		24
Expenses:
Direct operating expenses		445													143		74		228		—
Unallocated shared services expenses		235													—		—		—		235
Operating expenses(2)		680		—			—			—			680		143		74		228		235
Goodwill and acquired intangible asset impairment and amortization		146		—			(146	)		(146	)		—		—		—		—		—
Restructuring/other reorganization expenses		39		—			—			—			39		—		—		—		39
Total expenses		865		—			(146	)		(146	)		719		143		74		228		274
Income (loss) before income tax expense (benefit)		174		—			113			113			287		254		136		234		(337	)
Income tax expense (benefit)(3)		43		—			23			23			66		58		31		54		(77	)
Net income (loss)	$	131	$	—		$	90		$	90		$	221	$	196	$	105	$	180	$	(260	)

(1)

Core Earnings adjustments to GAAP:


	Year Ended December 31, 2024
(Dollars in millions)	Net Impact of Derivative Accounting			Net Impact of Acquired Intangibles			Total
Net interest income (loss) after provisions for loan losses	$	37		$	—		$	37
Total other income (loss)		(70	)		—			(70	)
Goodwill and acquired intangible asset impairment and amortization		—			(146	)		(146	)
Total Core Earnings adjustments to GAAP	$	(33	)	$	146			113
Income tax expense (benefit)								23
Net income (loss)							$	90

(2)

Reportable segment significant operating expenses are comprised of:


	Year Ended December 31, 2024
(Dollars in millions)	Consumer Lending		Federal Education Loans		Business Processing		Other		Total
Servicing expenses	$	54	$	57	$	—	$	6	$	117
Information technology expenses		31		8		15		84		138
Corporate expenses		3		4		4		98		109
Other/remaining expenses		55		5		209		47		316
Operating expenses	$	143	$	74	$	228	$	235	$	680

(3)

Income taxes are based on a percentage of net income before tax for the individual reportable segment.

14. Segment Reporting (Continued)


	Year Ended December 31, 2023
				Adjustments											Reportable Segments
(Dollars in millions)	Total GAAP			Reclassi- fications			Additions/ (Subtractions)			Total Adjustments (1)			Total Core Earnings		Consumer Lending		Federal Education Loans		Business Processing		Other
Interest income:
Education loans	$	4,266													$	1,369	$	2,901	$	—	$	—
Cash and investments		153														27		76		—		50
Total interest income		4,419														1,396		2,977		—		50
Total interest expense		3,557														816		2,497		—		164
Net interest income (loss)		862		$	32		$	52		$	84		$	946		580		480		—		(114	)
Less: provisions for loan losses		123												123		67		56		—		—
Net interest income (loss) after provisions for loan losses		739														513		424		—		(114	)
Other income (loss):
Servicing revenue		64														12		52		—		—
Asset recovery and business processing revenue		321														—		—		321		—
Other revenue		32														2		14		—		5
Losses on debt repurchases		(8	)		—			—			—			—		—		—		—		(8	)
Total other income (loss)		409			(32	)		21			(11	)		398		14		66		321		(3	)
Expenses:
Direct operating expenses		508														151		72		285		—
Unallocated shared services expenses		292														—		—		—		292
Operating expenses(2)		800			—			—			—			800		151		72		285		292
Goodwill and acquired intangible asset impairment and amortization		10			—			(10	)		(10	)		—		—		—		—		—
Restructuring/other reorganization expenses		25			—			—			—			25		—		—		—		25
Total expenses		835			—			(10	)		(10	)		825		151		72		285		317
Income (loss) before income tax expense (benefit)		313			—			83			83			396		376		418		36		(434	)
Income tax expense (benefit)(3)		85			—			8			8			93		89		99		8		(103	)
Net income (loss)	$	228		$	—		$	75		$	75		$	303	$	287	$	319	$	28	$	(331	)

(1)

Core Earnings adjustments to GAAP:


	Year Ended December 31, 2023
(Dollars in millions)	Net Impact of Derivative Accounting			Net Impact of Acquired Intangibles			Total
Net interest income (loss) after provisions for loan losses	$	84		$	—		$	84
Total other income (loss)		(11	)		—			(11	)
Goodwill and acquired intangible asset impairment and amortization		—			(10	)		(10	)
Total Core Earnings adjustments to GAAP	$	73		$	10			83
Income tax expense (benefit)								8
Net income (loss)							$	75

(2)

Reportable segment significant operating expenses are comprised of:


	Year Ended December 31, 2023
(Dollars in millions)	Consumer Lending		Federal Education Loans		Business Processing		Other		Total
Servicing expenses	$	55	$	44	$	—	$	—	$	99
Information technology expenses		29		16		18		81		144
Corporate expenses		3		7		7		125		142
Other/remaining expenses		64		5		260		86		415
Operating expenses	$	151	$	72	$	285	$	292	$	800

(3)

Income taxes are based on a percentage of net income before tax for the individual reportable segment.

14. Segment Reporting (Continued)

Summary of Core Earnings Adjustments to GAAP


	Years Ended December 31,
(Dollars in millions)	2025			2024			2023
GAAP net income (loss)	$	(80	)	$	131		$	228
Core Earnings adjustments to GAAP:
Net impact of derivative accounting(1)		62			(33	)		73
Net impact of goodwill and acquired intangible assets(2)		3			146			10
Net income tax effect(3)		(20	)		(23	)		(8	)
Total Core Earnings adjustments to GAAP		45			90			75
Core Earnings net income (loss)	$	(35	)	$	221		$	303

(1)

Derivative accounting: Core Earnings exclude periodic gains and losses that are caused by the mark-to-market valuations on derivatives that do not qualify for hedge accounting treatment under GAAP as well as the periodic mark-to-market gains and losses that are a result of ineffectiveness recognized related to effective hedges under GAAP. Under GAAP, for our derivatives that are held to maturity, the mark-to-market gain or loss over the life of the contract will equal $0. In our Core Earnings presentation, we recognize the economic effect of these hedges, which generally results in any net settlement cash paid or received being recognized ratably as an interest expense or revenue over the hedged item’s life.

(2)

Goodwill and acquired intangible assets: Our Core Earnings exclude goodwill and intangible asset impairment and amortization of acquired intangible assets.

(3)

Net tax effect: Such tax effect is based upon our Core Earnings effective tax rate for the year.

Historical Timeline

Fiscal Year	Filed
2025	Feb 26, 2026	Showing above
2024	Feb 27, 2025

2023	Feb 26, 2024

2022	Feb 24, 2023

2021	Feb 25, 2022

2020	Feb 26, 2021

2019	Feb 27, 2020

2018	Feb 26, 2019

2017	Feb 26, 2018

2016	Feb 24, 2017

2015	Feb 25, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

NAVIENT CORP Segments Disclosure

Historical Timeline

About Segments Disclosures

Other Available Disclosures