NewtekOne Inc (NASDAQ:NEWT) reported its financial results for the fourth quarter and full year of 2025, delivering annual earnings growth but a quarterly performance that fell short of analyst expectations. The market's immediate reaction was negative, with shares trading down over 2% in after-hours activity following the announcement.
Earnings and Revenue Versus Estimates
The company's results presented a mixed picture when held against Wall Street forecasts. For the critical fourth quarter, NewtekOne reported earnings per share (EPS) of $0.65. This figure came in below the analyst consensus estimate of $0.6953. Similarly, quarterly revenue of $73.33 million missed the market's expectation of $81.61 million.
The full-year 2025 results showed stronger performance on an annual basis. The company reported basic and diluted EPS of $2.21 and $2.18, respectively, which compares favorably to $1.97 and $1.96 for the full year 2024.
- Q4 2025 Reported EPS: $0.65
- Q4 2025 Analyst EPS Estimate: $0.6953
- Q4 2025 Reported Revenue: $73.33M
- Q4 2025 Analyst Revenue Estimate: $81.61M
Market Reaction and Price Context
The negative after-market move suggests investor disappointment with the quarterly top- and bottom-line misses. This reaction stands in contrast to the stock's positive performance over recent months. Prior to the earnings release, NEWT shares had gained over 26% in the past month and were roughly flat over the past week, indicating that the market may have been anticipating stronger results or that the post-earnings decline is a reversal of recent gains.
Key Highlights from the Earnings Report
Beyond the headline EPS and revenue figures, the press release outlined several areas of operational strength and strategic progress:
- Profitability and Efficiency: The company highlighted a significant improvement in its operating efficiency ratio, which dropped to 58.3% for 2025 from 63.2% in 2024. Key profitability metrics remained robust, with a return on average tangible common equity (ROTCE) of 19.0% for the full year.
- Balance Sheet Growth: NewtekOne reported substantial year-over-year growth in loans (53%), deposits (46%), and total assets (33%). Book value per common share increased 15.9% to $12.19.
- Strategic Momentum: Management emphasized a successful $295 million securitization of its Alternative Loan Program (ALP) loans in January 2026, which was significantly oversubscribed. The company also noted strong growth in digital deposit accounts at Newtek Bank.
- Forward Guidance: During its Investor Day on January 8th, the company established an EPS guidance range for 2026 of $2.15 to $2.55. The midpoint of this range, $2.35, sits below the current analyst consensus estimate of $2.52 for full-year 2026 earnings. For the upcoming first quarter of 2026, analysts are expecting EPS of $0.52 on sales of $78.37 million.
Outlook and Analyst Expectations
The company's provided 2026 EPS guidance introduces a note of caution. While demonstrating management's confidence in continued profitability, the guidance midpoint is lower than what the analyst community had been modeling. This discrepancy between internal projections and external expectations may be a key factor the market is digesting alongside the quarterly earnings miss.
For a detailed breakdown of historical earnings, future estimates, and analyst projections, you can review the complete data on the NewtekOne earnings and estimates page.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy, sell, or hold any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
