NewtekOne (NASDAQ:NEWT) Announces Earnings Results

NewtekOne (NASDAQ:NEWT) posted its quarterly earnings results on Thursday. The business services provider reported $0.43 EPS for the quarter, missing analysts’ consensus estimates of $0.46 by ($0.03), FiscalAI reports. The business had revenue of $88.18 million for the quarter, compared to the consensus estimate of $78.69 million. NewtekOne had a net margin of 15.51% and a return on equity of 18.83%. 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 Price Performance

Shares of NEWT stock traded up $0.31 during trading hours on Thursday, hitting $12.97. The stock had a trading volume of 204,072 shares, compared to its average volume of 183,573. NewtekOne has a one year low of $9.51 and a one year high of $14.91. The company has a debt-to-equity ratio of 6.41, a current ratio of 0.71 and a quick ratio of 0.71. The stock’s 50-day moving average price is $12.08 and its two-hundred day moving average price is $11.91. The stock has a market capitalization of $373.93 million, a price-to-earnings ratio of 5.92 and a beta of 1.22.

NewtekOne Dividend Announcement

The company also recently announced 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 annualized dividend and a dividend yield of 5.9%. The ex-dividend date of this dividend was Tuesday, March 24th. NewtekOne’s payout ratio is 34.70%.

Institutional Investors Weigh In On NewtekOne

Several large investors have recently made changes to their positions in NEWT. Royal Bank of Canada increased its holdings in shares of NewtekOne by 33.4% in the first quarter. Royal Bank of Canada now owns 23,639 shares of the business services provider’s stock worth $282,000 after purchasing an additional 5,916 shares during the last quarter. AQR Capital Management LLC increased its holdings in shares of NewtekOne by 306.4% in the first quarter. AQR Capital Management LLC now owns 168,269 shares of the business services provider’s stock worth $2,012,000 after purchasing an additional 126,865 shares during the last quarter. Jane Street Group LLC increased its stake in NewtekOne by 24.7% during the first quarter. Jane Street Group LLC now owns 36,676 shares of the business services provider’s stock worth $439,000 after acquiring an additional 7,274 shares during the last quarter. Rhumbline Advisers increased its stake in NewtekOne by 6.1% during the second quarter. Rhumbline Advisers now owns 36,433 shares of the business services provider’s stock worth $411,000 after acquiring an additional 2,108 shares during the last quarter. Finally, Quantbot Technologies LP bought a new stake in NewtekOne during the second quarter worth approximately $107,000. 38.35% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on NEWT shares. Weiss Ratings reissued a “hold (c)” rating on shares of NewtekOne in a report on Thursday, January 22nd. Piper Sandler raised 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. Keefe, Bruyette & Woods raised their price target on NewtekOne from $13.00 to $14.00 and gave the company a “market perform” rating in a report on Friday, January 30th. Finally, Wall Street Zen raised NewtekOne from a “sell” rating to a “hold” rating in a report on Saturday, March 14th. One analyst has rated the stock with a Strong Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $15.33.

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.