Navient Corporation Q1 FY2026 earnings call

• Total originations grew over 60% y/y, refinanced loan originations grew 65% y/y for 10th consecutive quarter. - Marketing and other operating costs improved as percentage of originations. - Credit quality strengthened with Q1 refi originations having average FICO of 775. - In-school lending had solid quarter, originated $40 million of new loans. - Operating expense levels reflect cost elimination actions, final expenses of wind-down activities incurred this quarter. - Sequential improvement in credit performance across all private portfolios. - Repurchased $23 million of shares during the quarter. - Completed first securitization of the year and first in-school securitization of the year with strong investor demand

Total originations grew over 60% year over year. Refinanced loan originations grew 65% year over year. In-school lending originated $40 million of new loans. Consumer lending segment: first quarter net income $35 million, outstanding balances increased ~$200 million quarter over quarter, credit trends favorable with private charge-off rates declining and delinquency rates improving. Federal education loan segment: first quarter net income $22 million, slightly down from year ago. Operating expense levels compared to year-ago period reflect cost elimination actions. First quarter core operating expenses were $89 million, 30% improvement vs 2025. Repurchased $23 million of shares during the quarter. Completed first securitization of the year ($683 million) and first in-school securitization of the year ($550 million) which was oversubscribed. Adjusted tangible equity ratio was 8.9%

• Q1 results in line with full-year outlook provided in January. - Total originations grew over 60% y/y, refinanced loan originations grew 65% y/y. - In-school lending confident in capturing beyond strategy opportunities in graduate lending. - $350 million expense outlook for the year. - Adjusted tangible equity ratio remained above long-term target

Q: Related to credit numbers in private portfolio, asked if at new base level for credit trends and if provision/allowance captures underperformance.

A: Saw significant improvement in delinquencies but still above historical levels, expect further improvement, reserve levels reflect that expectation.

Q: Related to loan originations mix, in-school peak season, funding for incremental grad loans.

A: Maintaining outlook for in-school originations, peak season in third quarter, in active discussions with financial aid offices on graduate lending gap.

Q: Follow-up on graduate market share, early learnings.

A: Examples of working with graduate schools not relying on grad plus, educating on product offering, early signs of interest.

Q: About OpEx cadence, front half loaded for grad plus.

A: First quarter had $5 million wind-down costs not expected going forward, third quarter likely highest OpEx quarter due to in-school origination activity.

Q: About origination cadence, Q2 vs Q1, back half bump.

A: Q2 and Q1 similar, in-school kicks up in Q2, meaningful difference in Q3.

Q: About personal loan trials, learnings.

A: Testing personal lending in fourth and first quarter, testing different product offerings, credit and fraud capabilities, pleased with learnings but results immaterial.

Q: About funding, unsecured maturity in June.

A: Have right liquidity to address unsecured maturity, feeling good about funding for peak season and lending through ABS securitizations.

Q: Follow-up on stock price and intrinsic value.

A: Agree stock price doesn't reflect intrinsic value, focused on strategy and plan, always looking to enhance firm value