NewtekOne Q4 Earnings Miss Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: seekingalpha
- Earnings Shortfall: NewtekOne reported a Q4 GAAP EPS of $0.65, missing expectations by $0.04, indicating pressure on profitability that could undermine investor confidence.
- Revenue Decline: The company’s revenue of $73.33 million represents a 2.7% year-over-year decrease, falling short of market expectations by $6.68 million, highlighting a trend of slowing business growth.
- Market Reaction: Given the disappointing earnings report, NewtekOne's stock price may face downward pressure, prompting investors to closely monitor subsequent strategic adjustments and market responses.
- Future Outlook: Despite the current underperformance, NewtekOne must formulate effective growth strategies to address market challenges and restore investor confidence.
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Analyst Views on NEWT
Wall Street analysts forecast NEWT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NEWT is 14.50 USD with a low forecast of 12.50 USD and a high forecast of 18.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
1 Buy
3 Hold
0 Sell
Hold
Current: 14.310
Low
12.50
Averages
14.50
High
18.00
Current: 14.310
Low
12.50
Averages
14.50
High
18.00
About NEWT
NewtekOne, Inc. is a financial holding company, which along with its bank and non-bank consolidated subsidiaries, provides a range of business and financial solutions under the Newtek brand to independent business owners. It segments include Banking, Alternative Lending, NSBF and Corporate and Other. The Company and its subsidiaries’ business and financial solutions include banking (Newtek Bank, N.A.), business lending, business administration (SBA) lending solutions, electronic payment processing, accounts receivable financing & inventory financing, insurance solutions and payroll and benefits solutions. In addition, it offers its clients technology solutions, including cloud computing, data backup, storage and retrieval, IT consulting, and Web services provided by Intelligent Protection Management Corp. (IPM.com). Its trademarks include Newtek, NewtekOne, Newtek Bank, National Association, Your Business Solutions Company, One Solution for All Your Business Needs and Newtek Advantage.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
NewtekOne to Announce Q4 Earnings on January 29
- Earnings Announcement: NewtekOne (NEWT) is set to release its Q4 earnings on January 29 after market close, with consensus EPS estimated at $0.66 and revenue expected to reach $80.01 million, reflecting a 6.2% year-over-year growth.
- Earnings Estimate Changes: Over the past three months, EPS estimates have seen one upward revision and three downward adjustments, while revenue estimates experienced one upward and one downward revision, indicating mixed market sentiment regarding the company's performance.
- Investor Attention: The upcoming earnings report is expected to draw significant investor interest, particularly given the current economic climate, where analysts have divergent views on the company's growth potential, which may influence stock price volatility.
- Market Reaction Expectations: As the earnings date approaches, the market's reaction to NewtekOne will depend on the actual results versus expectations, prompting investors to closely monitor the forthcoming financial data and its implications for the company's future strategy.
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NewtekOne, Inc. Reports Strong Q4 2025 Earnings and Growth
- Significant Earnings Growth: NewtekOne reported a net income of approximately $80 million for 2025, reflecting a 16.4% increase, with total revenue reaching $284 million, up 10.6% from 2024, showcasing strong performance in the financial services sector.
- Deposit Account Innovation: The company opened 9,000 new deposit accounts in Q4, bringing active accounts to 34,000, indicating successful implementation of digital account opening and lending systems, enhancing customer retention and market competitiveness.
- Management Changes: NewtekOne appointed several new executives, including Greg Devaney as Chief Credit Officer and Chris Lucas as Chief Compliance Officer, aimed at improving corporate governance and strategic execution to support future business expansion.
- 2026 Outlook: The company projects a midpoint EPS of $2.35 for 2026, reflecting optimistic expectations for future loan originations and market demand, while emphasizing ongoing support for independent business owners and prudent risk management.
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