NewtekOne Inc (NASDAQ:NEWT) Posts Strong Q3 2025 Earnings Beat Despite Revenue Miss

Last update: Oct 29, 2025

NewtekOne Inc (NASDAQ:NEWT) has released its financial results for the third quarter of 2025, delivering a performance marked by significant earnings growth that surpassed analyst expectations, even as its top-line revenue fell short of forecasts. The company's latest report highlights its continued profitability and strategic expansion within the digital banking and business lending sectors.

Earnings and Revenue Versus Estimates

The company's bottom-line performance for the quarter was notably strong, exceeding the consensus among analysts. However, the top-line revenue did not meet the anticipated mark, presenting a mixed financial picture.

Earnings Per Share (EPS): NewtekOne reported diluted EPS of $0.67 for the third quarter. This figure came in above the analyst estimate of $0.6625, representing a substantial 49% increase compared to the diluted EPS of $0.45 reported in the same quarter last year.
Revenue: Total revenue for the quarter was reported at $74.9 million. This fell short of the analyst estimate of $81.3 million for Q3 2025. Despite missing the estimate, the company's revenue still demonstrated robust year-over-year growth, increasing by 19.3% from $62.8 million in the prior-year period.

Market Reaction and Price Action

The market's initial reaction to the earnings report appears cautiously optimistic. Following the release, the stock has shown positive momentum in after-market trading. This suggests that investors are potentially focusing more on the earnings beat and the strong year-over-year growth metrics rather than the revenue miss. The positive after-hours movement indicates that the market may be rewarding the company's profitability and strategic execution as outlined by management.

Key Financial and Operational Highlights

Beyond the headline EPS and revenue figures, the earnings release detailed several areas of strength that underscore the company's growth trajectory and operational efficiency.

Profitability Metrics: The company posted a net income before taxes of $25.1 million for the quarter, a 47% increase year-over-year. Key return metrics remained elevated, with a return on average assets (ROAA) of 3.06% and a return on average tangible common equity (ROTCE) of 23.7%.
Balance Sheet Growth: Both loans and deposits saw significant expansion, increasing by approximately 58% and 81%, respectively, compared to September 30, 2024. Book value per common share also grew, ending the quarter at $11.72, up 16.4% from the previous year.
Operational Efficiency: The efficiency ratio improved to 56.3% from 61.8% a year ago, indicating the company is generating revenue at a lower operational cost.
Strategic Capital Activities: During the quarter, NewtekOne successfully raised $80 million in Tier 1 capital and secured a new $95 million financing solution for its Newtek Merchant Solutions payments business through Goldman Sachs.

Looking Ahead

In his commentary, CEO Barry Sloane expressed confidence in the company's business model and its positioning as a technology-enabled financial institution. While the press release did not provide a specific quantitative financial outlook for the coming periods, the company did announce it is preparing its fourth securitization of Alternative Lending Program (ALP) loans for the fourth quarter of 2025, which it expects to be its largest to date.

Analysts currently have estimates for the full year 2025 and the next quarter in place. Their projections provide a benchmark against which the company's future performance will be measured as it continues to execute its growth strategy.

For a detailed breakdown of historical earnings, future estimates, and analyst projections, you can review the data available on the NewtekOne earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer or solicitation to buy or sell any securities. The content presented is based on publicly available information and should not be relied upon as the sole basis for an investment decision.