NewtekOne (NASDAQ:NEWT) Posts Quarterly Earnings Results, Hits Expectations

NewtekOne (NASDAQ:NEWT) released its quarterly earnings data on Thursday. The business services provider reported $0.47 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.47, FiscalAI reports. NewtekOne had a net margin of 15.57% and a return on equity of 18.19%. The company had revenue of $90.05 million during the quarter, compared to analyst estimates of $75.00 million.

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

• Second-quarter EPS was $0.48 basic and $0.47 diluted, while tangible book value continued to grow; management highlighted 75.3% tangible book value per-share growth over the 12 quarters since the bank-holding-company conversion.
• Deposits reached approximately $2.2 billion, with core consumer deposits increasing by $297 million during the quarter and 81% of deposit accounts insured below the $250,000 threshold. Management cited low-cost digital account acquisition and sticky deposits as key advantages.
• Newtek plans to hold more SBA-guaranteed and C&I loans on the bank’s balance sheet, shifting revenue from gain-on-sale income toward net interest income. Executives acknowledged this could pressure headline EPS over the next several quarters, and guidance is being reevaluated over the next 45 to 60 days.
• Credit metrics were mixed: net charge-offs improved, but 30-day delinquencies and guaranteed-loan nonperforming assets increased. Management said reserves remain appropriate, with 89% of the allowance for credit losses allocated to unguaranteed SBA 7(a) loans, and expects full recovery on the $15 million Simad Holdings exposure despite its bankruptcy.
• Management emphasized its technology platform—including digital onboarding, automated loan processing, real-time payments and the Newtek Advantage portal—as a potential competitive and licensing opportunity. The company said it is pursuing white-label or infrastructure relationships with other financial institutions, although adoption may take time.

NewtekOne Stock Down 9.5%

Shares of NewtekOne stock opened at $13.53 on Friday. The company has a quick ratio of 0.64, a current ratio of 0.64 and a debt-to-equity ratio of 6.76. The company has a market cap of $390.88 million, a P/E ratio of 6.09 and a beta of 1.27. The firm’s 50 day moving average price is $14.34 and its 200-day moving average price is $13.28. NewtekOne has a 52-week low of $9.59 and a 52-week high of $15.69.

NewtekOne Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 1st. Stockholders of record on Wednesday, June 24th were given a $0.19 dividend. The ex-dividend date of this dividend was Wednesday, June 24th. This represents a $0.76 dividend on an annualized basis and a dividend yield of 5.6%. NewtekOne’s payout ratio is presently 33.48%.

Insider Buying and Selling

In other news, CEO Barry Sloane bought 5,000 shares of the stock in a transaction on Monday, June 15th. The stock was bought at an average cost of $14.20 per share, for a total transaction of $71,000.00. Following the completion of the purchase, the chief executive officer directly owned 1,181,914 shares in the company, valued at approximately $16,783,178.80. The trade was a 0.42% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders have purchased a total of 18,567 shares of company stock worth $261,156 over the last three months. Corporate insiders own 5.90% of the company’s stock.

Institutional Trading of NewtekOne

A number of institutional investors have recently made changes to their positions in the business. Royal Bank of Canada increased its position in NewtekOne by 33.4% during the 1st quarter. Royal Bank of Canada now owns 23,639 shares of the business services provider’s stock valued at $282,000 after buying an additional 5,916 shares in the last quarter. AQR Capital Management LLC grew its stake in shares of NewtekOne by 306.4% during the first quarter. AQR Capital Management LLC now owns 168,269 shares of the business services provider’s stock worth $2,012,000 after acquiring an additional 126,865 shares during the last quarter. Jane Street Group LLC increased its holdings in shares of NewtekOne by 24.7% during the first quarter. Jane Street Group LLC now owns 36,676 shares of the business services provider’s stock valued at $439,000 after acquiring an additional 7,274 shares in the last quarter. Rhumbline Advisers raised its position in shares of NewtekOne by 6.1% in the 2nd quarter. Rhumbline Advisers now owns 36,433 shares of the business services provider’s stock valued at $411,000 after purchasing an additional 2,108 shares during the last quarter. Finally, Quantbot Technologies LP purchased a new position in shares of NewtekOne in the 2nd quarter valued at approximately $107,000. Institutional investors and hedge funds own 38.35% of the company’s stock.

Analysts Set New Price Targets

NEWT has been the topic of several research reports. Piper Sandler lifted their price objective on shares of NewtekOne from $14.00 to $15.00 and gave the company a “neutral” rating in a report on Friday. Raymond James Financial raised NewtekOne to a “hold” rating in a research report on Wednesday, July 1st. Keefe, Bruyette & Woods lifted their price target on NewtekOne from $12.00 to $13.00 and gave the company a “market perform” rating in a report on Friday, May 1st. Finally, Weiss Ratings raised NewtekOne from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Monday, July 13th. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $15.33.

Key NewtekOne News

Here are the key news stories impacting NewtekOne this week:

• Positive Sentiment: Revenue significantly exceeded expectations. NewtekOne reported second-quarter revenue of $90.05 million, well above the $75 million analyst consensus. The company also posted $0.47 in diluted EPS, matching one consensus estimate and slightly exceeding Zacks’ $0.46 forecast. NewtekOne Tops Q2 Earnings and Revenue Estimates
• Positive Sentiment: Piper Sandler raised its price target. The firm increased its target for NEWT from $14 to $15, suggesting additional potential upside, although it maintained a neutral rating. Piper Sandler Price Target Update
• Neutral Sentiment: Management’s earnings call may provide further context. The Q2 2026 conference call transcript is available for investors seeking details on operating trends, credit quality, funding and guidance. NewtekOne Q2 2026 Earnings Call Transcript
• Neutral Sentiment: NewtekOne’s 8.625% fixed-rate senior notes due 2029 remain part of the company’s capital structure. The high coupon may appeal to income-focused investors, while the debt obligation remains a consideration for equity holders. NewtekOne 8.625% Senior Notes
• Negative Sentiment: EPS declined from the year-ago period. Quarterly EPS of $0.47 compared with $0.52 a year earlier, potentially tempering the impact of the revenue beat. The neutral analyst rating also limits the bullish signal from the higher price target. NewtekOne Q2 Earnings Snapshot

NewtekOne Company Profile

NewtekOne, Inc (NASDAQ: NEWT) is a publicly traded business development company that specializes in providing financial and business services to small and medium?sized enterprises across the United States. Operating under the trade name The Newtek Small Business Finance, the company offers a diversified array of lending solutions designed to meet the working capital, equipment acquisition and growth needs of its clients.

The company’s core lending offerings include Small Business Administration (SBA) 7(a) loans, equipment financing, lines of credit and commercial real estate financing.