Navient (NAVI) shares plunged 5.18% in pre-market trading on Wednesday following the release of its disappointing third-quarter 2025 financial results. The student loan servicer reported a significant loss and missed Wall Street's expectations, causing investor concern.
The company posted a core loss of $0.84 per diluted share for Q3, a stark contrast to the earnings of $1.45 per share in the same quarter last year. This result fell far short of analysts' expectations, who had forecast earnings of $0.18 per share. Navient's revenue also disappointed, coming in at $161 million, down 59.3% from $396 million in the previous year and slightly below the analyst consensus of $164.6 million.
The weak performance was largely attributed to a substantial provision for loan losses totaling $168 million, with $151 million resulting from elevated charge-offs. Despite the challenging quarter, Navient announced a new $100 million share repurchase program, in addition to approximately $26 million of unused authorization as of September 30. This move, however, did little to offset investor concerns about the company's financial health and near-term prospects in the face of significant losses.
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