NewtekOne (NASDAQ:NEWT) Announces Quarterly Earnings Results, Misses Expectations By $0.03 EPS

NewtekOne (NASDAQ:NEWT) released its earnings results on Thursday. The business services provider reported $0.43 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.46 by ($0.03), FiscalAI reports. NewtekOne had a return on equity of 18.83% and a net margin of 15.51%.The company had revenue of $88.18 million for the quarter, compared to the consensus estimate 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 Performance

NASDAQ:NEWT traded up $0.31 on Thursday, hitting $12.97. The company’s stock had a trading volume of 204,072 shares, compared to its average volume of 183,573. The company has a current ratio of 0.71, a quick ratio of 0.71 and a debt-to-equity ratio of 6.41. The stock has a fifty day moving average of $12.08 and a two-hundred day moving average of $11.91. The firm has a market capitalization of $373.93 million, a P/E ratio of 5.92 and a beta of 1.22. NewtekOne has a one year low of $9.51 and a one year high of $14.91.

NewtekOne Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, April 1st. Shareholders of record on Tuesday, March 24th were paid a $0.19 dividend. The ex-dividend date was Tuesday, March 24th. This represents a $0.76 annualized dividend and a yield of 5.9%. NewtekOne’s dividend payout ratio is currently 34.70%.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on NEWT shares. Keefe, Bruyette & Woods upped their target price on NewtekOne from $13.00 to $14.00 and gave the stock a “market perform” rating in a report on Friday, January 30th. Piper Sandler upped their target price on NewtekOne from $13.00 to $14.00 and gave the stock a “neutral” rating in a report on Monday, February 9th. Wall Street Zen upgraded NewtekOne from a “sell” rating to a “hold” rating in a report on Saturday, March 14th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of NewtekOne in a report on Thursday, January 22nd. One investment analyst has rated the stock with a Strong Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $15.33.

Institutional Trading of NewtekOne

Several institutional investors and hedge funds have recently bought and sold shares of the business. Man Group plc raised its stake in NewtekOne by 6.4% in the fourth quarter. Man Group plc now owns 45,906 shares of the business services provider’s stock valued at $521,000 after buying an additional 2,761 shares during the period. Bridgeway Capital Management LLC acquired a new position in shares of NewtekOne in the fourth quarter valued at approximately $337,000. Almitas Capital LLC acquired a new position in shares of NewtekOne in the fourth quarter valued at approximately $608,000. Trexquant Investment LP grew its position in shares of NewtekOne by 11.5% in the fourth quarter. Trexquant Investment LP now owns 145,253 shares of the business services provider’s stock valued at $1,649,000 after purchasing an additional 14,977 shares during the last quarter. Finally, Jump Financial LLC grew its position in shares of NewtekOne by 21.8% in the fourth quarter. Jump Financial LLC now owns 88,084 shares of the business services provider’s stock valued at $1,000,000 after purchasing an additional 15,784 shares during the last quarter. Institutional investors own 38.35% of the company’s stock.

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.