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Nelnet Reports Third Quarter 2026 Results

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LINCOLN, Neb., Nov. 5, 2026 /PRNewswire/ — Nelnet (NYSE: NNI) today reported GAAP net income of $76.2 million, or $2.13 per share, for the third quarter of 2026, compared with GAAP net income of $106.7 million, or $2.94 per share, for the same period a year ago.

Net income, excluding derivative market value adjustments1, was $67.9 million, or $1.89 per share, for the third quarter of 2026, compared with $107.3 million, or $2.95 per share, for the same period in 2025.

“We delivered strong operating performance this quarter, with continued progress diversifying our products and customer base,” said Jeff Noordhoek, chief executive officer of Nelnet. “We increased our dividend and continued to repurchase shares, while remaining focused on investing in our businesses and creating long-term value. In October, we announced FACTS Compass, which will help scholarship granting organizations support students in public and private schools through the new Federal Scholarship Tax Credit. BenefitEd offers employers a payroll deduction option for the program. We also announced the acquisition of Entab, a school management technology provider in India, expanding our education technology business internationally.”

Nelnet operates through three divisions: Nelnet Financial Services (NFS), Loan Servicing and Systems [referred to as Nelnet Diversified Services (NDS)], and Education Technology Services and Payments [referred to as Nelnet Business Services (NBS)]. NFS includes the company’s Asset Generation and Management (AGM) and Nelnet Bank reportable operating segments, which earn interest income on loans and investments. NDS and NBS generate primarily fee-based revenue through loan servicing, education technology, and payment services. Business activities not included in these divisions are combined and reported within Corporate Activities.

Nelnet Financial Services

AGM

As of September 30, 2026, AGM’s loan portfolio totaled $7.63 billion, consisting primarily of federally insured loans originated under the Federal Family Education Loan Program (“FFEL Program” or FFELP). During the three months ended September 30, 2026, AGM acquired $3.23 billion of consumer loans, including $3.06 billion of short-duration Pay Later receivables that the company began to purchase in August 2025, compared with $1.52 billion of consumer loans acquired during the same period in 2025. The company’s consumer loan portfolio increased to $1.30 billion as of September 30, 2026, from $840.7 million as of September 30, 2025.

The AGM operating segment reported loan and investment net interest income of $65.2 million for the three months ended September 30, 2026, compared with $44.7 million for the same period in 2025. The increase was primarily driven by higher loan spreads2 and growth in the company’s consumer loan portfolio, partially offset by continued runoff of the legacy FFELP portfolio. The average balance of AGM’s FFELP loan portfolio declined to $6.46 billion for the three months ended September 30, 2026, from $8.25 billion for the same period in 2025. During the first nine months of 2026, AGM contributed certain student loan trusts to Nelnet Bank that included $780.7 million of FFEL Program loans.

AGM recorded a provision for loan losses of $34.5 million ($26.2 million after tax) for the three months ended September 30, 2026, compared with a negative provision of $7.4 million ($5.6 million after tax) for the same period in 2025. The provision in each period was significantly impacted by the initial allowance established on loans acquired during the period to reflect lifetime expected credit losses under the current expected credit loss (CECL) methodology. During the third quarter of 2025, the company also reduced its allowance (and recognized negative provision expense) of $28.9 million ($22.0 million after tax) related to consumer loan sales.

AGM holds interests in joint ventures engaged in the acquisition, ownership, and management of loan portfolios. During the three months ended September 30, 2026, AGM recognized income from these joint ventures of $12.4 million ($9.4 million after tax).

AGM recognized income of $4.8 million ($3.6 million after tax) during the third quarter of 2026 related to changes in the fair value of derivative instruments that do not qualify for hedge accounting.

AGM reported net income after tax of $33.9 million for the three months ended September 30, 2026, compared with $27.8 million for the same period in 2025.

1

 Net income, excluding derivative market value adjustments, is a non-GAAP measure. See “Non-GAAP Performance Measures” at the end of this press release and the “Non-GAAP Disclosures” section below for explanatory information and reconciliations of GAAP to non-GAAP financial information.

2

 Loan spread represents the spread between the yield earned on loan assets and the costs of the liabilities used to fund the assets.

Nelnet Bank

As of September 30, 2026, Nelnet Bank had a loan portfolio of $1.70 billion and an investment portfolio of $1.64 billion, and total deposits, including intercompany deposits, of $2.81 billion. Loan and investment net interest income increased to $20.4 million during the third quarter of 2026, compared with $15.4 million for the same period a year ago, due to growth in the loan and investment portfolios, partially offset by a decrease in net interest margin.

Nelnet Bank recorded a provision for loan losses of $4.8 million ($3.6 million after tax) in the third quarter of 2026, compared with $3.8 million ($2.9 million after tax) for the same period in 2025.

Nelnet Bank recognized income of $6.2 million ($4.7 million after tax) during the third quarter of 2026 related to changes in the fair value of derivative instruments that do not qualify for hedge accounting.

Nelnet Bank recognized net income after tax of $12.0 million for the quarter ended September 30, 2026, compared with $4.6 million for the same period in 2025.

Loan Servicing and Systems

Revenue from the Loan Servicing and Systems segment was $139.8 million for the third quarter of 2026, compared with $151.1 million for the same period in 2025. The company recognized $5.3 million and $32.9 million of revenue in the third quarters of 2026 and 2025, respectively, related to Department of Education (Department) contract modifications for services previously performed. Excluding this revenue, segment revenue increased year over year, primarily due to the acquisition of NDS Canada in the first quarter of 2026, which contributed $16.5 million of revenue during the third quarter. As of September 30, 2026, the company was servicing $523.6 billion in Department, Canadian, FFELP, private education, and consumer loans for 15.4 million borrowers.

The Loan Servicing and Systems segment reported net income after tax of $12.5 million for the three months ended September 30, 2026, compared with $35.2 million for the same period in 2025.

Education Technology Services and Payments

For the third quarter of 2026, revenue from the Education Technology Services and Payments operating segment was $132.9 million, compared with $129.3 million for the same period in 2025. Revenue less direct costs to provide services during the third quarter of 2026 was $83.4 million, compared with $79.0 million for the same period in 2025.

Net income after tax for the Education Technology Services and Payments segment was $19.4 million for the three months ended September 30, 2026, compared with $19.0 million for the same period in 2025.

Corporate and Other Activities

During the three months ended September 30, 2026, the company recognized an unrealized loss of $9.3 million ($7.1 million after tax) from changes in the fair value of certain marketable equity securities.

The 2025 results included a gain of $30.2 million ($23.0 million after tax) related to a venture capital investment that completed an equity raise during the third quarter.

Share Repurchases

During the first nine months of 2026, the company has repurchased 731,932 Class A common shares for $93.7 million (average price of $128.04 per share), including a total of 415,332 Class A common shares for $53.1 million (average price of $127.81 per share) during the third quarter of 2026. Subsequent to September 30, 2026 (through November 5, 2026), the company repurchased an additional 295,990 Class A common shares for $37.0 million (average price of $125.04 per share).

Board of Directors Declares Fourth Quarter Dividend

The Nelnet Board of Directors declared a fourth-quarter cash dividend on the company’s outstanding shares of Class A common stock and Class B common stock of $0.36 per share. The dividend will be paid on December 15, 2026, to shareholders of record at the close of business on December 1, 2026.

Forward-Looking and Cautionary Statements

This press release contains forward-looking statements within the meaning of federal securities laws. The words “anticipate,” “assume,” “believe,” “continue,” “could,” “ensure,” “estimate,” “expect,” “focus,” “forecast,” “future,” “intend,” “may,” “objective,” “plan,” “potential,” “predict,” “pursue,” “scheduled,” “should,” “strategy,” “will,” “would,” and similar expressions, as well as statements in future tense, are intended to identify forward-looking statements. These statements are based on management’s current expectations as of the date of this release and are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results and performance to be materially different from any future results or performance expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to: risks related to the ability to successfully maintain and increase allocated volumes of student loans serviced by the company under existing and future servicing contracts, risks related to unfavorable contract modifications or interpretations, risks related to consistently meeting service requirements to avoid the assessment of performance penalties, and risks related to the company’s ability to comply with agreements with third-party customers for the servicing of Federal Direct Loan Program, Canadian, FFEL Program, private education, and consumer loans; loan portfolio risks such as credit risk, prepayment risk, interest rate basis and repricing risk, risks related to the use of derivatives to manage exposure to interest rate fluctuations, uncertainties regarding the expected benefits from purchased securitized and unsecuritized FFELP, private education, consumer, and other loans, or residual interests therein, and initiatives to purchase additional FFELP, private education, consumer, and other loans; financing and liquidity risks, including risks of changes in the interest rate environment; risks from changes in the terms of education loans and in the educational credit and services markets resulting from changes in applicable laws, regulations, and government programs and budgets; risks related to a breach of or failure in the company’s operational or information systems or infrastructure, or those of third-party vendors, including disclosure of confidential or personal information and/or damage to reputation resulting from cyber breaches; risks related to use of artificial intelligence; uncertainties inherent in forecasting future cash flows from student loan assets, including residual interests therein, and related asset-backed securitizations; risks related to the ability of Nelnet Bank to achieve its business objectives and effectively deploy loan and deposit strategies and achieve expected market penetration; risks related to the company’s solar tax equity partnerships, including risks of not being able to realize tax credits which remain subject to recapture by taxing authorities and risks from the impact of the enactment of the One Big Beautiful Bill that accelerates the expiration and phase out of solar energy credits; risks and uncertainties related to other initiatives (and anticipated income therefrom) including venture capital, real estate, reinsurance, acquisitions, and other activities, including activities that are intended to diversify the company both within and outside of its historical core education-related businesses; risks and uncertainties associated with climate change; risks from changes in economic conditions and consumer behavior; risks related to the company’s ability to adapt to technological change; risks related to the exclusive forum provisions in the company’s articles of incorporation; risks related to the company’s executive chairman’s ability to control matters related to the company through voting rights; risks related to related party transactions; risks related to natural disasters, terrorist activities, or international hostilities; and risks and uncertainties associated with litigation matters, maintaining compliance with the extensive regulatory requirements applicable to the company’s businesses, and uncertainties inherent in the estimates and assumptions about future events that management is required to make in the preparation of the company’s consolidated financial statements.

For more information, see the “Risk Factors” sections and other cautionary discussions of risks and uncertainties included in documents filed or furnished by the company with the Securities and Exchange Commission. All forward-looking statements in this release are as of the date of this release. Although the company may voluntarily update or revise its forward-looking statements from time to time to reflect actual results or changes in the company’s expectations, the company disclaims any commitment to do so except as required by law.

Non-GAAP Performance Measures

The company prepares its financial statements and presents its financial results in accordance with U.S. GAAP. However, it also provides additional non-GAAP financial information related to specific items management believes to be important in the evaluation of its operating results and performance. Reconciliations of GAAP to non-GAAP financial information, and a discussion of why the company believes providing this additional information is useful to investors, are provided in the “Non-GAAP Disclosures” section below.

 

Consolidated Statements of Income

(Dollars in thousands, except share data)

(unaudited)

Three months ended

Nine months ended

September 30,
2026

June 30,
2026

September 30,
2025

September 30,
2026

September 30,
2025

Interest income:

Loan interest

$     166,607

164,598

162,717

502,228

501,260

Investment interest

42,435

40,315

43,241

122,953

124,815

Total interest income

209,042

204,913

205,958

625,181

626,075

Interest expense on bonds and notes payable and bank deposits

107,647

108,902

120,708

326,132

378,677

Net interest income

101,395

96,011

85,250

299,049

247,398

Less provision (negative provision) for loan losses

39,363

41,077

(3,563)

133,684

29,704

Less provision for beneficial interests

906

2,441

2,145

7,477

8,632

Net interest income after provision

61,126

52,493

86,668

157,888

209,062

Other income (expense):

Loan servicing and systems revenue

139,802

132,244

151,052

399,888

392,517

Education technology services and payments revenue

132,881

118,884

129,321

406,200

394,836

Reinsurance premiums earned

44,485

40,625

23,165

107,645

73,964

Solar construction revenue

—

—

5,738

—

10,992

Other, net

6,710

18,399

33,258

35,548

80,839

Gain on partial redemption of ALLO investment

—

—

—

—

175,044

Derivative market value adjustments and derivative settlements, net

11,319

3,852

(27)

17,338

(8,728)

Total other income (expense), net

335,197

314,004

342,507

966,619

1,119,464

Cost of services and expenses:

Loan servicing contract fulfillment and acquisition costs

2,087

2,087

2,021

6,262

5,500

Cost to provide education technology services and payments

49,491

39,183

50,363

138,626

138,254

Cost to provide solar construction services

—

—

7,607

—

29,485

Total cost of services

51,578

41,270

59,991

144,888

173,239

Salaries and benefits

147,733

152,664

144,778

439,768

417,700

Depreciation and amortization

10,280

10,142

7,327

29,592

24,206

Reinsurance losses and underwriting expenses

35,570

32,809

19,962

91,984

67,836

Other expenses

70,157

64,199

60,669

196,195

165,592

Total operating expenses

263,740

259,814

232,736

757,539

675,334

Income before income taxes

81,005

65,413

136,448

222,080

479,953

Income tax expense

(24,818)

(19,942)

(35,773)

(64,821)

(120,294)

Net income

56,187

45,471

100,675

157,259

359,659

Net loss attributable to noncontrolling interests

20,006

21,191

6,009

56,722

11,044

Net income attributable to Nelnet, Inc.

$       76,193

66,662

106,684

213,981

370,703

Earnings per common share:

Net income attributable to Nelnet, Inc. shareholders – basic and diluted

$         2.13

1.85

2.94

5.95

10.18

Weighted-average common shares outstanding – basic and diluted

35,845,663

36,037,509

36,316,315

35,985,847

36,426,188

 

Condensed Consolidated Balance Sheets

(Dollars in thousands)

(unaudited)

As of

As of

As of

September 30, 2026

December 31, 2025

September 30, 2025

Assets:

Loans and accrued interest receivable, net

$           9,670,327

10,006,695

10,227,261

Cash, cash equivalents, and investments

3,184,078

2,643,954

2,455,950

Restricted cash

447,422

677,563

550,371

Goodwill and intangible assets, net

311,238

187,312

189,783

Other assets

524,045

548,259

453,317

Total assets

$         14,137,110

14,063,783

13,876,682

Liabilities:

Bonds and notes payable

$           6,768,987

7,780,927

7,822,531

Bank deposits

2,566,017

1,669,173

1,476,765

Other liabilities

1,188,848

1,036,454

990,691

Total liabilities

10,523,852

10,486,554

10,289,987

Equity:

Total Nelnet, Inc. shareholders’ equity

3,787,362

3,685,792

3,653,290

Noncontrolling interests

(174,104)

(108,563)

(66,595)

Total equity

3,613,258

3,577,229

3,586,695

Total liabilities and equity

$         14,137,110

14,063,783

13,876,682

 

Non-GAAP Disclosures
(Dollars in thousands, except share data)
(unaudited)

Non-GAAP financial measures disclosed by management are meant to provide additional information and insight relative to business trends to investors and, in certain cases, to present financial information as measured by rating agencies and other users of financial information. These measures are not in accordance with, or a substitute for, GAAP and may be different from, or inconsistent with, non-GAAP financial measures used by other companies. The company reports this non-GAAP information because the company believes that it provides additional information regarding operational and performance indicators that are closely assessed by management. There is no comprehensive, authoritative guidance for the presentation of such non-GAAP information, which is only meant to supplement GAAP results by providing additional information that management utilizes to assess performance.

Net income, excluding derivative market value adjustments

Three months ended September 30,

2026

2025

GAAP net income attributable to Nelnet, Inc.

$          76,193

106,684

Realized and unrealized derivative market value adjustments (a)

(10,950)

788

Tax effect (b)

2,628

(189)

Non-GAAP net income attributable to Nelnet, Inc., excluding derivative market value adjustments

$          67,871

107,283

Earnings per share:

GAAP net income attributable to Nelnet, Inc.

$            2.13

2.94

Realized and unrealized derivative market value adjustments (a)

(0.31)

0.02

Tax effect (b)

0.07

(0.01)

Non-GAAP net income attributable to Nelnet, Inc., excluding derivative market value adjustments

$            1.89

2.95

(a)

“Derivative market value adjustments” includes both the realized portion of gains and losses (corresponding to variation margin received or paid on derivative instruments that are settled daily at a central clearinghouse) and the unrealized portion of gains and losses that are caused by changes in fair values of derivatives which do not qualify for “hedge treatment” under GAAP. “Derivative market value adjustments” does not include “derivative settlements” that represent the cash paid or received during the respective period to settle with derivative instrument counterparties the economic effect of the company’s derivative instruments based on their contractual terms.

The accounting for derivatives requires that changes in the fair value of derivative instruments be recognized currently in earnings, with no fair value adjustment of the hedged item, unless specific hedge accounting criteria are met. Management has structured all of the company’s derivative transactions with the intent that each is economically effective; however, the majority of the company’s derivative instruments do not qualify for hedge accounting in the consolidated financial statements. As a result, the change in fair value for the derivative instruments that do not qualify for hedge accounting is reported in current period earnings with no consideration for the corresponding change in fair value of the hedged item. Under GAAP, the cumulative net realized and unrealized gain or loss caused by changes in fair values of derivatives in which the company plans to hold to maturity will generally equal zero over the life of the contract. However, the net realized and unrealized gain or loss during any given reporting period fluctuates significantly from period to period.

The company believes these point-in-time estimates of asset and liability values related to its derivative instruments that are subject to interest rate fluctuations are subject to volatility mostly due to timing and market factors beyond the control of management, and affect the period-to-period comparability of the results of operations. Accordingly, the company’s management utilizes operating results excluding these items for comparability purposes when making decisions regarding the company’s performance and in presentations with credit rating agencies, lenders, and investors. Consequently, the company reports this non-GAAP information because the company believes that it provides additional information regarding operational and performance indicators that are closely assessed by management and represents what earnings would have been had these derivatives qualified for hedge accounting. There is no comprehensive, authoritative guidance for the presentation of such non-GAAP information, which is only meant to supplement GAAP results by providing additional information that management utilizes to assess performance.

(b)

The tax effects are calculated by multiplying the realized and unrealized derivative market value adjustments by the applicable statutory income tax rate.

 

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SOURCE Nelnet, Inc.

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Fortegra Advances AI-Powered Application Development with insureMO’s Atomic APIs and Agentic Engineering

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Reusable insurance capabilities help Fortegra build tailored applications for MGA partners with greater flexibility and control

SINGAPORE and NEW YORK, Nov. 11, 2026 /PRNewswire/ — insureMO, a global insurance middle office platform provider, announces that Fortegra, a global specialty insurer headquartered in Florida, is leveraging insureMO’s Atomic APIs and Agentic Engineering to develop insurance applications. By combining internal engineering expertise with reusable insurance capabilities, Fortegra can respond faster to the needs of its managing general agent (MGA) partners.

The approach connects Fortegra’s investment in AI-enabled engineering teams with insureMO’s headless insurance technology platform. This allows Fortegra to build differentiated submissions, underwriting and customer experiences on a shared foundation of insurance services.

Working across diverse programs and distribution partners, Fortegra needs technology that accommodates different products, workflows and partner capabilities. Its modernization strategy progressively moves programs from legacy platforms to a composable architecture, using insureMO for underlying insurance transactions while retaining control over application development.

“Building engineering teams that work natively with AI agents is a core capability we have chosen to develop at Fortegra,” said Joe Lettween, Chief Innovation, Data Science, and Technology Officer at Fortegra. “With insureMO providing the underlying insurance capabilities, we can focus on the submissions, underwriting and customer experiences that matter to our MGA partners, while retaining control over how we build and manage them.”

Fortegra has built submissions and underwriting workflows for MGA partners that need additional technology capabilities. AI-assisted engineering supports application development, while workflow steps such as document processing can also incorporate AI.

Turning AI capabilities into enterprise value

AI development in insurance requires domain knowledge, connected context, transparent execution and reusable business capabilities. Without these foundations, teams face fragmented information and the need to rebuild insurance logic for each use case.

Organized around API, Data and AI, insureMO provides more than 2,500 Atomic APIs across the insurance lifecycle. These expose discrete insurance functions that developers and AI coding tools can combine into applications and workflows. Standard interfaces, clear data structures and defined functions help AI coding agents understand and use these capabilities. Agentic Engineering brings them together with insurance context, development tools, orchestration and human oversight to support repeatable, governed delivery.

“Enterprise value from AI depends on the infrastructure available to the teams building with it,” said Rajat Sharma, Chief Revenue Officer at insureMO. “AI-ready Atomic APIs give developers and coding agents clearly defined insurance functions they can understand and use. Fortegra’s approach demonstrates how this foundation supports tailored application development with enterprise governance and integration.”

Connecting development, governance and data

Fortegra’s approach also emphasizes controlled change and downstream data integration. Using insureMO supports a development pipeline its technology teams can observe and manage, with greater control over platform changes.

The platform operates alongside Fortegra’s other systems and connects with its data engineering and warehouse environment, supporting transaction data flows into reporting, financial and operational processes.

Together, reusable insurance APIs, internal engineering expertise and governed delivery provide a foundation for extending AI-assisted application development across Fortegra’s partner ecosystem.

About Fortegra

Fortegra is a global specialty insurer headquartered in Jacksonville, Florida, with more than 45 years of experience delivering insurance and risk management solutions. Working with MGAs, brokers and distribution partners, Fortegra combines underwriting expertise, technology and data-driven insights to serve niche markets. Its offerings include specialty property and casualty insurance, warranty and service contracts, and credit protection solutions. For more information, visit www.fortegra.com.

About insureMO

insureMO is the global insurance Middle Office platform based in Singapore. The platform is organized across three pillars: API, Data, and AI, with 2,500+ atomic APIs spanning the full insurance lifecycle from quotation to claims. The architecture is open by design: the same APIs that connect 8,700+ distribution channels and technology partners are equally discoverable by AI agents and coding assistants. This is what makes insureMO both ecosystem-friendly and AI-friendly; any AI tool that is capable to call an API can build on insureMO. Over 500 insurers, distributors, and ecosystem partners across 50+ countries run on insureMO, processing more than US$25 billion in Gross Written Premium across 17,500+ configured products spanning Life and Health, Personal Lines, Commercial and Specialty, and Reinsurance. Visit www.insuremo.com.

Contact:
Fiona Zhang
marketing@insuremo.com 

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SOURCE insureMO

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SAP and VFC Open Intelligent Fashion Store

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Industry AI connects the shopper journey with end-to-end retail operations, enhancing the consumer experience

WALLDORF, Germany, Nov. 11, 2026 /PRNewswire/ — SAP SE (NYSE: SAP) and VF Corporation (NYSE: VFC) today opened S.Fashion, a retail innovation space at the SAP headquarters in Walldorf designed to explore how AI-enabled, end-to-end processes can enhance the consumer experience while making store operations more effective.

This store puts the SAP vision for the Autonomous Enterprise into a working fashion retail environment, with selected products from the world-renowned VF Corporation brand portfolio, including The North Face, Vans and Timberland.  In this environment, Industry AI draws on business data and retail process expertise to support decisions and actions across inventory, order management, pricing, fulfillment and replenishment. The store combines these capabilities with SAP applications, automation and connected hardware.

The announcement was made at the opening of S.Fashion in Walldorf, attended by Christian Klein, CEO of SAP, and Sujay Kumar, Vice President, Global ERP Technology at VF Corporation.

“The Autonomous Enterprise becomes real when AI can understand business context and act across connected processes,” said Christian Klein, CEO of SAP. “Together with VF Corporation, we are bringing this vision to life in one of retail’s most dynamic environments. S.Fashion shows how applications, data and Industry AI can work together across the entire operation, turning insights into action while keeping people in control. When technology absorbs complexity, store teams have more time to engage with consumers and create the experiences that build lasting relationships.”

Industry AI Across Retail Operations
Fashion retail requires precise coordination across brand, style, size, color, availability, price and fulfillment. In S.Fashion, item-level RFID data, robotics and SAP applications support a connected flow across inventory, orders, pricing, promotions and replenishment. AI agents are designed to help interpret events and coordinate next steps across processes, while people retain oversight of operating rules and exceptions. By simplifying and connecting these processes, the store will explore how technology can reduce operational complexity for teams and give them greater capacity to focus on consumers.

A customer can discover products, explore personalization and virtual try-on options, and create an order. The process can then initiate item retrieval, customization, packing, payment and collection. The transaction updates inventory and can trigger a next step, such as replenishment, without relying on manual handoffs between separate systems.

The experience links the physical store with a digital journey in a mobile app. Joule, part of SAP Business AI Platform, guides consumers from store entry and product discovery to in-store navigation and checkout. At the personalization station, consumers can turn a sketch and prompt into AI-generated artwork ready for embroidery. Once ordered, the personalized garment is embroidered, packed and placed in a personal locker for pickup. A holographic virtual try-on lets consumers check fit, color and overall look without changing clothes. In the fitting room, item recognition and a smart mirror recommend sizes, matching products and styling ideas. Consumers can also request another size without leaving the room. If consumers opt in, their preferences and past interactions shape curated looks and increasingly relevant recommendations.

For SAP and VFC, the store serves as a live test environment for how AI, intelligent automation and physical retail work together. During selected hours, the store operates autonomously, with no staff on site. 

“S.Fashion gives us a unique opportunity to turn retail innovation into real-world learning,” said Sujay Kumar, Vice President, Global ERP Technology at VF Corporation. “By testing new experiences in a live environment, we can better understand what resonates with consumers and what helps our teams deliver an even better experience every day. For us, technology is most valuable when it enables our people to spend more time engaging with consumers and creating meaningful in-store experiences. The insights we gain will help us learn faster, focus on what works, and scale the solutions that can make the biggest difference across our brands.”

An Intelligent Store Built Around Experience
S.Fashion is designed to explore how intelligent technology can support different retail experiences while using the same connected data and business processes across the store. The focus is on understanding how technology can complement the role of store teams, make operations more effective and create more engaging and interactive experiences for consumers.

During selected hours, the store operates autonomously, with no staff on site, enabling SAP and VFC to explore different retail models using the same underlying technology and processes. S.Fashion will be open to SAP employees and their friends and families, and it will also host arranged visits for customers and partners. This gives VFC and SAP a working retail environment in which to test operating processes under live conditions and demonstrate how they work together.

A Living Proof Point for the Autonomous Enterprise
The Walldorf opening puts the SAP strategy for the Autonomous Enterprise into practice in a live retail environment. This will help SAP and VFC assess how processes can recognize change, coordinate action across functions and support new commercial models.

Visit the SAP News Center. Get SAP news via LinkedIn and Bluesky.

About SAP
As a global leader in enterprise applications and business AI, SAP (NYSE:SAP) stands at the nexus of business and technology. For over 50 years, organizations have trusted SAP to bring out their best by uniting business-critical operations spanning finance, procurement, HR, supply chain, and customer experience. For more information, visit https://www.sap.com/.

About VF Corporation
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InComm Payments and SKUx Deepen Partnership to Bring Verified Commerce to Item-Level Offers

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The completed integration combines InComm Payments’ retail distribution and payments capabilities with SKUx’s Verified Commerce™ platform, giving brands and partners a way to fund offers for specific products and verify redemption at checkout.

ATLANTA and ST. PETERSBURG, Fla., Nov. 11, 2026 /PRNewswire/ — InComm Payments and SKUx (“SKUx”) today announced an expansion of their strategic partnership to bring verified, item-level offers to brands, retailers and distribution partners. The collaboration pairs InComm Payments’ retail network and payments infrastructure with SKUx’s Verified Commerce platform, enabling partners to deliver digital offers that apply to eligible products and confirm which items were purchased when those offers are redeemed.

The expanded partnership builds on the companies’ shared work in purpose-driven payments, where funds can be directed to eligible purchases. That same capability now anchors a broader commercial opportunity. A brand can fund an offer for a specific product, a retail or media partner can deliver it to shoppers, with verification that the eligible item was purchased at a participating retailer. Shoppers get an offer they can use at checkout, while brands and partners gain a direct link between the offer and the product sale.

“Now more than ever, it is critical to give brands and our partners more precision in how they deliver value at retail, ” said Mary Llewellyn, SVP of Retailer Marketing and Promotional Payments at InComm Payments. “By combining our retail distribution and payments capabilities with SKUx’s unique platform technology, we can help partners bring product-specific offers to shoppers and see where those offers turn into purchases.”

SKUx is building Verified Commerce as a category that connects offer delivery, payment and purchase verification in a single transaction. For consumer packaged goods brands, that means being able to fund trial launches for a new product, promote a specific size or variety, and see which eligible items shoppers bought. For retailers, retail media networks and other distribution partners, it creates a way to offer brand-funded campaigns with redemption reporting tied to the product sold.

“The item is where the brand’s investment and the shopper’s decision meet,” said Bobby Tinsley, CEO and Co-founder of SKUx. “That’s the idea behind Verified Commerce. A brand should be able to put an offer behind a specific product, make it easy for a shopper to use, and verify that the product was purchased. Our expanded partnership with InComm Payments helps us bring that model to more brands, retailers and partners.”

Today, SKUx will deliver a keynote alongside Gary Hawkins, Founder & CEO of Retail Mindsteps, at the Path to Purchase Institute’s In-Store Ignite conference in Chicago. The session is titled, “The Promotional Abyss: Solving for Value Delivery Across a Fragmented Retail Media Ecosystem.”

About InComm Payments
InComm Payments is an innovative global payments technology provider. Leveraging dynamic technology and proven expertise, InComm Payments delivers enhanced end-to-end payment platforms and emerging financial technology solutions through a single integration, helping businesses grow across a wide range of industries including retail, healthcare, tolling & transit, incentives, mobile payments, digital currencies and financial services. By enabling omnichannel connections and alternative payment options to an ever-expanding consumer base in an increasingly digital ecosystem, InComm Payments creates seamless and valuable commerce experiences across the globe. With three decades of experience, over 525,000 points of retail and online distribution, 412 global patents and a presence in more than 40 countries, InComm Payments leads the payments industry from its headquarters in Atlanta, Ga. Learn more at www.InCommPayments.com. 

About SKUx
SKUx provides a purpose-driven network that combines easy mobile wallet delivery with granular transaction controls. Their platform allows brands to bypass legacy coupon systems and replace them with secure, digital payments that can be restricted by merchant category, location and all the way down to the SKU-level. This item-level precision helps eliminate fraud and waste while providing brands with 360-degree visibility into how funds are used in real-time. For more information, visit skux.io.

Media Contacts
Anthony Popiel
Communications Manager
InComm Payments
apopiel@incomm.com

Brandon Davis
Communications Manager
InComm Payments
bdavis@incomm.com

Reva Henderson
SKUx Media Contact
Will Marlow Agency
+1 727-580-1910
reva@willmarlow.com

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