Business lender NewtekOne Q3 revenue rises on higher alternative loan program loans

NewtekOne

29/10/2025 20:13

Overview

NewtekOne Q3 revenue grows 19.3% yr/yr, reflecting strong financial performance

EPS for Q3 rises 51% yr/yr, indicating significant profitability improvement

Company raises $30 mln CET1 capital, enhancing financial stability

Outlook

Company plans fourth securitization of ALP loans in Q4 2025, expected to be largest yet

NewtekOne aims to grow lower cost business deposits to capture operating leverage

Company continues to expand digital banking services, opening over 21,000 accounts

Result Drivers

LOAN ORIGINATIONS - Increased originations in Alternative Loan Program and SBA 7(a) loans contributed to revenue growth

CAPITAL RAISE - Raised $30 mln of CET1 capital and $80 mln of Tier 1 capital, enhancing financial stability

REFINANCING - Refinanced Newtek Merchant Solutions borrowing facility with $95 mln financing solution from Goldman Sachs

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
$0.68
Q3 Net Interest Income
$14.54 mln
Q3 Pretax Profit
$25.06 mln
Q3 Provision for Loan Credit Losses
$7.71 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the corporate financial services peer group is "buy."

Wall Street's median 12-month price target for NewtekOne Inc is $14.00, about 22.6% above its October 28 closing price of $10.83

The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release: ID:nGNX2xBhS9

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)