SHARPE
Reported results
- Private Education Loan originations of $3.4 billion, up 15% year-over-year, with Graduate Loan originations growing 119% in the first academic year following PLUS reform
- GAAP diluted loss per common share of $0.19 for Q3 2026, compared to GAAP diluted earnings per common share of $0.63 in Q3 2025
- Net interest income of $339 million in Q3 2026, compared to $373 million in Q3 2025
- Total non-interest expenses of $221 million in Q3 2026, a 22% increase from $180 million in Q3 2025, largely due to peak season expenses following PLUS reform
- Net charge-offs of $90 million in Q3 2026, compared to $77.5 million in Q3 2025, primarily driven by misaligned third-party debt resolution practices
- Share repurchases of 5.1 million shares for $132.2 million in Q3 2026; 18.1 million shares for $415.6 million for the nine months ended September 30, 2026
Guidance
- Full year 2026 GAAP diluted earnings per common share: $1.95 to $2.05 (updated from prior guidance of $3.10 to $3.20)
- Full year 2026 Private Education Loan originations growth: 12% to 14% (unchanged from prior guidance)
- Full year 2026 net charge-offs: $400 to $420 million (updated from prior guidance of $365 to $385 million)
- Full year 2026 non-interest expenses: $750 to $780 million (unchanged from prior guidance)
Notes
The company revised full year 2026 guidance downward due to recent developments in the business and broader macroeconomic impacts. Net charge-offs exclude $19.1 million of previously charged-off loans purchased from an unconsolidated securitization. Average winning FICO at approval was 757 in Q3 2026, up from the year-ago quarter, with cosigner rates at 92%. Delinquencies as a percentage of loans in repayment were 4.2% as of September 30, 2026, compared to 4.0% in the year-ago quarter.
Price and volatility reaction
The stock moved -10.8% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -12.5 vol points across the event (constant-maturity series — not the front-week crush).
| Measure | Value | Basis |
|---|---|---|
| Close before release | 21.76 | 2026-10-22 |
| Close after release | 19.42 | 2026-10-23 |
| Realised move | -10.8% | close to close |
| 30d ATM IV change | -12.5 vol pts | constant-maturity series, not the front expiry |
Source
The figures above come from the earnings release the company filed with the SEC on 2026-10-22 (8-K, Item 2.02). Read the original filing on sec.gov.