NewtekOne (NASDAQ:NEWT – Get Free Report) announced its quarterly earnings results on Wednesday. The business services provider reported $0.34 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.45 by ($0.11), Zacks reports. NewtekOne had a return on equity of 15.72% and a net margin of 13.58%. The company had revenue of $71.78 million for the quarter, compared to the consensus estimate of $77.10 million.
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 0.8%
Shares of NASDAQ:NEWT traded down $0.09 during trading on Friday, reaching $10.93. 67,565 shares of the stock traded hands, compared to its average volume of 238,954. The stock has a 50-day moving average of $11.60 and a two-hundred day moving average of $12.87. NewtekOne has a 52-week low of $9.59 and a 52-week high of $15.69. The company has a debt-to-equity ratio of 7.41, a quick ratio of 0.65 and a current ratio of 0.65. The stock has a market cap of $315.62 million, a P/E ratio of 5.78 and a beta of 1.30.
NewtekOne Announces Dividend
The business also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Thursday, September 24th were paid a $0.19 dividend. This represents a $0.76 dividend on an annualized basis and a dividend yield of 7.0%. The ex-dividend date of this dividend was Thursday, September 24th. NewtekOne’s dividend payout ratio is currently 34.23%.
Analyst Upgrades and Downgrades
Several research firms have commented on NEWT. Zacks Research lowered shares of NewtekOne from a “hold” rating to a “strong sell” rating in a research note on Friday, August 7th. B. Riley Financial dropped their target price on shares of NewtekOne from $25.00 to $21.00 and set a “buy” rating on the stock in a research note on Monday, August 31st. Wall Street Zen lowered NewtekOne from a “hold” rating to a “sell” rating in a report on Saturday, August 15th. Piper Sandler cut their target price on NewtekOne from $13.00 to $12.00 and set a “neutral” rating for the company in a research note on Thursday. Finally, Weiss Ratings lowered shares of NewtekOne from a “hold (c+)” rating to a “hold (c)” rating in a research report on Monday. One equities research analyst has rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $15.33.
Read Our Latest Report on NewtekOne
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.
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