NewtekOne (NASDAQ:NEWT) Posts Earnings Results, Misses Estimates By $0.11 EPS

NewtekOne (NASDAQ:NEWT) announced its quarterly earnings results on Wednesday. The business services provider reported $0.34 earnings per share for the quarter, missing analysts’ consensus estimates of $0.45 by ($0.11), Zacks reports. NewtekOne had a net margin of 15.57% and a return on equity of 17.97%.

Here are the key takeaways from NewtekOne’s conference call:

• Third-quarter EPS was $0.34, and management reiterated full-year 2026 EPS guidance of $1.70–$1.80. Tangible book value reached $12.30 per share, up 10% year over year.
• Deposits grew to $2.6 billion, more than doubling since the bank conversion in early 2023, while year-to-date loan originations rose 12% to $1.2 billion. Newtek also ranked first in SBA loan units and second by dollar volume for the SBA’s fiscal 2026.
• Net interest income rose 26% sequentially and 30% year over year to a record $18.9 million, supported by growth in C&I long-amortization loans, retained SBA-guaranteed loans, and lower borrowing costs.
• Management acknowledged continued pressure on small businesses from elevated interest rates, inflation, and labor costs, leading to tighter underwriting and more muted loan-origination expectations. C&I loan nonperformers increased to $82 million from $46 million, while unguaranteed SBA loans account for most of the bank’s $57 million credit-loss allowance.
• Newtek expects a roughly $350 million–$400 million securitization in January 2027, which should remove loans from the balance sheet and support capital ratios. Management also said it is exploring strategic alternatives and potential partnerships to better realize the value of its technology platform.

NewtekOne Stock Performance

NEWT traded down $0.06 during trading hours on Wednesday, hitting $11.46. 269,716 shares of the stock were exchanged, compared to its average volume of 238,589. NewtekOne has a 12 month low of $9.59 and a 12 month high of $15.69. The stock has a 50-day simple moving average of $11.66 and a 200-day simple moving average of $12.88. The company has a debt-to-equity ratio of 7.41, a current ratio of 0.65 and a quick ratio of 0.65. The stock has a market cap of $331.02 million, a price-to-earnings ratio of 5.16 and a beta of 1.30.

NewtekOne Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, September 24th were paid a dividend of $0.19 per share. The ex-dividend date was Thursday, September 24th. This represents a $0.76 annualized dividend and a yield of 6.6%. NewtekOne’s dividend payout ratio (DPR) is 34.23%.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on NEWT shares. Raymond James Financial raised NewtekOne to a “hold” rating in a research note on Wednesday, July 1st. Weiss Ratings downgraded NewtekOne from a “hold (c+)” rating to a “hold (c)” rating in a report on Monday. Zacks Research cut NewtekOne from a “hold” rating to a “strong sell” rating in a report on Friday, August 7th. Wall Street Zen downgraded shares of NewtekOne from a “hold” rating to a “sell” rating in a report on Saturday, August 15th. Finally, Piper Sandler increased their target price on NewtekOne from $14.00 to $15.00 and gave the stock a “neutral” rating in a research report on Friday, August 7th. One equities research analyst has rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $16.33.

About NewtekOne

NewtekOne, Inc is a financial holding company that provides banking and business services to small and medium-sized businesses throughout the United States. The company operates primarily through Newtek Bank, National Association, a national bank that offers commercial lending, Small Business Administration (SBA) loans, business deposit accounts and treasury management services.

NewtekOne’s offerings are designed to address a range of business needs, including working capital, commercial real estate and equipment financing, payment processing, payroll, insurance and technology-related services.