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

NewtekOne (NASDAQ:NEWT) posted its earnings results on Wednesday, October 28th. 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. The company had revenue of $71.79 million for the quarter, compared to the consensus estimate of $77.10 million. NewtekOne had a return on equity of 15.72% and a net margin of 13.58%.

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 Up 0.5%

Shares of NEWT stock traded up $0.05 during mid-day trading on Friday, hitting $10.72. 113,775 shares of the stock traded hands, compared to its average volume of 240,805. NewtekOne has a 52-week low of $9.59 and a 52-week high of $15.69. The stock has a market cap of $309.65 million, a P/E ratio of 5.67 and a beta of 1.30. 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’s fifty day moving average is $11.44 and its two-hundred day moving average is $12.78.

NewtekOne Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 24th were given a dividend of $0.19 per share. The ex-dividend date of this dividend was Thursday, September 24th. This represents a $0.76 dividend on an annualized basis and a yield of 7.1%. NewtekOne’s dividend payout ratio (DPR) is 40.21%.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on NEWT shares. Wall Street Zen downgraded shares of NewtekOne from a “hold” rating to a “sell” rating in a research report on Saturday, August 15th. Weiss Ratings lowered NewtekOne from a “hold (c+)” rating to a “hold (c)” rating in a research note on Monday, October 26th. B. Riley Financial dropped their price target on NewtekOne from $25.00 to $21.00 and set a “buy” rating on the stock in a research report on Monday, August 31st. Zacks Research downgraded NewtekOne from a “hold” rating to a “strong sell” rating in a research note on Friday, August 7th. Finally, Piper Sandler reduced their target price on shares of NewtekOne from $13.00 to $12.00 and set a “neutral” rating for the company in a research note on Thursday, October 29th. One equities research analyst has rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $15.33.

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.