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

Key Points

• NewtekOne reported third-quarter EPS of $0.34, missing the $0.45 consensus estimate by $0.11, while reaffirming full-year 2026 EPS guidance of $1.70–$1.80.
• The company’s fundamentals showed mixed trends: deposits surpassed $2.6 billion, loan originations increased 12%, and net interest income reached a record $18.9 million, but C&I nonperformers rose to $82 million amid pressure on small businesses.
• NewtekOne declared a quarterly dividend of $0.19, representing a 6.6% annualized yield; shares fell 0.5%, and analysts maintained a consensus “Hold” rating with a $16.33 target price.

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 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 0.5%

Shares of NewtekOne stock traded down $0.06 during trading on Wednesday, hitting $11.46. The company's stock had a trading volume of 269,716 shares, compared to its average volume of 238,589. 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 company has a fifty day simple moving average of $11.66 and a two-hundred day simple moving average of $12.88. The company has a market capitalization of $331.02 million, a PE ratio of 5.16 and a beta of 1.30. NewtekOne has a 52 week low of $9.59 and a 52 week high of $15.69.

NewtekOne Announces Dividend

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

Wall Street Analysts Forecast Growth

Several brokerages have commented on NEWT. Wall Street Zen lowered shares of NewtekOne from a "hold" rating to a "sell" rating in a report on Saturday, August 15th. B. Riley Financial reduced their target price on NewtekOne from $25.00 to $21.00 and set a "buy" rating on the stock in a report on Monday, August 31st. 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. Weiss Ratings cut NewtekOne from a "hold (c+)" rating to a "hold (c)" rating in a research note on Monday. Finally, Raymond James Financial upgraded NewtekOne to a "hold" rating in a research note on Wednesday, July 1st. One analyst has rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, NewtekOne has a consensus rating of "Hold" and a consensus target price 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.