NewtekOne (NASDAQ:NEWT) Issues Earnings Results

Key Points

• NewtekOne reported Q1 EPS of $0.43, missing estimates of $0.46, while revenue of $88.18M beat estimates of $78.69M; management updated FY2027 guidance to 2.400–2.800 EPS.
• Operational momentum: accounts more than doubled year‑over‑year to ~37,000 with total deposits around $1.9 billion, the company launched real‑time payments (FedNow/RTP), and originations accelerated to 961 loans (~+40% YoY) totaling $391M with automated processes supporting 7‑day funding.
• Near‑term pressure from a high cash balance at the Fed (~$380–390M) and deposit‑driven NIM compression may weigh on net interest income, though management is pursuing securitizations (targeting ~$400–500M) and migrating larger C&I loans into the bank to lower funding costs; the company also declared a quarterly dividend of $0.19 (annualized yield ~5.9%).

NewtekOne (NASDAQ:NEWT - Get Free Report) posted its earnings results on Thursday. The business services provider reported $0.43 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.46 by ($0.03), FiscalAI reports. NewtekOne had a net margin of 15.51% and a return on equity of 18.83%. The business had revenue of $88.18 million during the quarter, compared to analyst estimates of $78.69 million. NewtekOne updated its FY 2027 guidance to 2.400-2.800 EPS.

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

• Newtek reported sustained deposit momentum with accounts more than doubling year‑over‑year to ~37,000 and total deposits of about $1.9 billion, while launching real‑time payments via FedNow and RTP to improve client stickiness.
• Origination activity accelerated—961 loan units in Q1 (up ~40% YoY) and $391M of loans—with March/April momentum and automated/AI‑enabled processes that support 7‑day funding for smaller loans.
• Management is migrating larger C&I long‑am loans into the bank and pursuing securitizations (targeting a ~$400–500M pool) to lower funding costs and improve capital efficiency versus holding‑company warehouse financing.
• Credit metrics have stabilized: delinquencies and NPLs (excluding government‑guaranteed loans) declined for multiple quarters, and provisions continue to cover net charge‑offs under CECL.
• Near‑term margin pressure from a high cash balance at the Fed (~$380–390M) and NIM compression related to rapid deposit growth and timing of securitizations may weigh on short‑term net interest income.

NewtekOne Stock Up 2.4%

Shares of NewtekOne stock traded up $0.31 during trading on Thursday, reaching $12.97. The stock had a trading volume of 204,072 shares, compared to its average volume of 183,573. The company has a market capitalization of $373.93 million, a price-to-earnings ratio of 5.92 and a beta of 1.22. The stock has a fifty day moving average price of $12.08 and a two-hundred day moving average price of $11.91. NewtekOne has a 52 week low of $9.51 and a 52 week high of $14.91. The company has a current ratio of 0.71, a quick ratio of 0.71 and a debt-to-equity ratio of 6.41.

NewtekOne Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, April 1st. Stockholders of record on Tuesday, March 24th were issued a $0.19 dividend. This represents a $0.76 dividend on an annualized basis and a dividend yield of 5.9%. The ex-dividend date was Tuesday, March 24th. NewtekOne's payout ratio is 34.70%.

Wall Street Analysts Forecast Growth

NEWT has been the subject of a number of research analyst reports. Wall Street Zen raised NewtekOne from a "sell" rating to a "hold" rating in a research note on Saturday, March 14th. Keefe, Bruyette & Woods boosted their target price on NewtekOne from $13.00 to $14.00 and gave the company a "market perform" rating in a research note on Friday, January 30th. Weiss Ratings reissued a "hold (c)" rating on shares of NewtekOne in a research note on Thursday, January 22nd. Finally, Piper Sandler boosted their price target on NewtekOne from $13.00 to $14.00 and gave the company a "neutral" rating in a report on Monday, February 9th. One equities research analyst has rated the stock with a Strong Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, NewtekOne has an average rating of "Moderate Buy" and an average target price of $15.33.

Institutional Trading of NewtekOne

Institutional investors have recently modified their holdings of the company. Advisory Services Network LLC bought a new stake in shares of NewtekOne in the third quarter valued at about $46,000. Quantbot Technologies LP bought a new stake in NewtekOne during the second quarter worth about $107,000. Cerity Partners LLC raised its holdings in NewtekOne by 18.0% during the fourth quarter. Cerity Partners LLC now owns 13,714 shares of the business services provider's stock worth $156,000 after acquiring an additional 2,095 shares in the last quarter. Mercer Global Advisors Inc. ADV bought a new stake in NewtekOne during the third quarter worth about $191,000. Finally, Kestra Advisory Services LLC raised its holdings in NewtekOne by 13.7% during the fourth quarter. Kestra Advisory Services LLC now owns 17,742 shares of the business services provider's stock worth $201,000 after acquiring an additional 2,136 shares in the last quarter. 38.35% of the stock is currently owned by institutional investors.

About NewtekOne

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.

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