SLM Posts Q2 Earnings Miss

SLM (NASDAQ:SLM), the major provider of private education loans known as Sallie Mae, released its results on July 24, 2025. The most notable news was a significant shortfall in both GAAP earnings and revenue compared to analyst expectations. Actual earnings per share were $0.32, well below the $0.49 GAAP estimate, while revenue (GAAP) reached $376.8 million, trailing the $399.5 million GAAP forecast. GAAP net income and profitability declined steeply. The quarter marked a setback from strong prior performance, with higher credit loss provisions and signs of weakening credit trends balancing out steady loan demand. Overall, the period showed that the core lending business is expanding, but rising credit costs and reliance on one-off loan sales remain issues. Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report. SLM is a leading private education lender, filling the gap for students and families when federal aid and family contributions fall short. It primarily offers private education loans targeted at students in four-year degree programs. The company is not a federal student loan provider but instead competes with banks and other specialist finance firms for private lending business.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool