NewtekOne (NASDAQ:NEWT) Releases Earnings Results

NewtekOne (NASDAQ:NEWT) released its quarterly earnings data on Wednesday. The business services provider reported $0.34 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.45 by ($0.11), Zacks reports. The firm had revenue of $71.78 million during the quarter, compared to analysts’ expectations of $77.10 million. 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 Down 4.9%

Shares of NASDAQ:NEWT traded down $0.57 on Thursday, hitting $10.89. 143,546 shares of the company traded hands, compared to its average volume of 238,079. The company has a market cap of $314.64 million, a PE ratio of 4.90 and a beta of 1.30. The company has a quick ratio of 0.65, a current ratio of 0.65 and a debt-to-equity ratio of 7.41. NewtekOne has a 52 week low of $9.59 and a 52 week high of $15.69. The stock has a 50 day simple moving average of $11.63 and a 200-day simple moving average of $12.88.

NewtekOne Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Thursday, September 24th were issued a dividend of $0.19 per share. The ex-dividend date was Thursday, September 24th. This represents a $0.76 annualized dividend and a dividend yield of 7.0%. NewtekOne’s dividend payout ratio (DPR) is presently 34.23%.

Wall Street Analyst Weigh In

Several analysts recently issued reports on the company. B. Riley Financial cut their target price on NewtekOne from $25.00 to $21.00 and set a “buy” rating on the stock in a research note on Monday, August 31st. Weiss Ratings cut 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 cut NewtekOne from a “hold” rating to a “sell” rating in a research note on Saturday, August 15th. Finally, Raymond James Financial raised shares of NewtekOne to a “hold” rating in a research report on Wednesday, July 1st. One investment analyst has rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, NewtekOne presently has an average rating of “Hold” and an average target price of $15.33.

Key Stories Impacting NewtekOne

Here are the key news stories impacting NewtekOne this week:

• Positive Sentiment: Management reiterated 2026 EPS guidance of $1.70 to $1.80, signaling confidence that upcoming quarters can offset the third-quarter shortfall. NewtekOne also said it is targeting a $350 million to $400 million securitization in January, which could support liquidity and capital deployment. NewtekOne targets securitization and reiterates 2026 EPS guidance
• Neutral Sentiment: The company’s earnings call and related transcripts provided additional management commentary on third-quarter performance, the January securitization, and the path toward achieving its annual guidance. NewtekOne Third Quarter 2026 Earnings Conference Call
• Negative Sentiment: NewtekOne reported third-quarter EPS of $0.34, below consensus estimates ranging from $0.40 to $0.45 and down from $0.67 a year earlier. Revenue of approximately $71.8 million also missed the $77.1 million estimate, increasing concerns about near-term earnings momentum. NewtekOne Reports 3Q26 EPS of $0.34
• Negative Sentiment: Piper Sandler lowered its price target from $13 to $12 and maintained a Neutral rating. While the revised target implies potential upside, the reduction indicates less optimism about NewtekOne’s valuation and operating outlook following the earnings miss. Piper Sandler NewtekOne price target update

NewtekOne Company Profile

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.