NewtekOne, Inc. reported first‑quarter 2026 results that included a basic and diluted earnings per share of $0.43, a 19.4% and 22.9% year‑over‑year increase respectively, and total revenue of $70.96 million, a 7% rise from the $66.3 million reported in the same quarter of 2025. Deposits grew by $833 million to nearly $1.9 billion, a 92% year‑over‑year increase, underscoring the bank’s ability to fund growth at low cost.
The earnings beat was driven by disciplined cost management and operating leverage. Operating expenses rose 7.5% year‑over‑year, a modest increase relative to the 35% asset growth, reflecting efficient scaling. Management noted that “We are pleased to report basic and diluted EPS of $0.43 and $0.43 for 1Q26, which reflect increases of 19% and 23% over 1Q25 basic and diluted EPS of $0.36 and $0.35, respectively, and within our 1Q26 EPS guidance range of $0.37-$0.47. We remain comfortable with our 2026 EPS guidance range of $2.15-$2.55. In addition, we are establishing a target of 10% EPS growth for 2027, which implies an EPS range of $2.40-$2.80 for 2027.”
Revenue fell short of analyst estimates, missing the consensus range of $74.86 million to $79.98 million. The miss was largely attributed to volatility in non‑interest income, particularly mark‑to‑market adjustments on loan portfolios held at fair value. Despite the miss, the 7% year‑over‑year growth reflects continued demand for the company’s digital banking and alternative lending products.
The company reaffirmed its 2026 earnings guidance of $2.15 to $2.55 per share and reiterated its focus on expanding its Alternative Lending Program and deposit base. NewtekOne also highlighted its strategic shift from expensive warehouse facilities to low‑cost bank deposits, a move that improves funding efficiency and supports margin expansion. The firm completed a $295 million securitization of its Alternative Lending Program loans, further enhancing liquidity and capital flexibility.
Seasonally, the first quarter is typically the weakest period for earnings. Nevertheless, the company’s deposit growth, AI‑powered loan processing, and real‑time payments platform position it to capture additional market share among independent business owners. While revenue missed estimates and margin pressure from high cash balances at the Federal Reserve and net interest margin compression are noted headwinds, the strong deposit base and low‑cost funding strategy provide a solid tailwind for future profitability.
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