The team competed in the Third Division North for the second consecutive season, having finished as runners-up to Darlington in the previous campaign.

The team played well for the majority of the season, and achieved several good victories, including 7–0 wins against Tranmere Rovers and Wigan Borough.

The highest attendance of the season at the club's Seedhill stadium was 14,143 against Bradford Park Avenue on 10 April 1926.

[1] Nelson were drawn against fellow Third Division North outfit Wigan Borough, who they had faced in the Fifth Qualifying Round in the 1923–24 season.

The team went into the cup match on 2 December 1925 having won five of their previous six league fixtures, and were unbeaten since the 0–1 loss to Coventry City on 3 October 1925.