NewtekOne Inc. reported fourth‑quarter 2025 earnings of basic and diluted earnings per share of $0.65, falling short of the consensus estimate of $0.68. Total revenue for the quarter was $73.33 million, a decline from the $80.01 million analysts had expected. The miss reflects a combination of weaker demand in the legacy SBA portfolio and a slower ramp‑up of new loan originations during the holiday‑heavy period.
The quarter’s revenue shortfall was driven largely by a 12% decline in the legacy non‑bank SBA segment, which NewtekOne has been winding down to free capital for higher‑return core banking activities. At the same time, the Alternative Loan Program (ALP) originations grew modestly, but the overall mix shift toward lower‑margin products and the impact of a one‑time charge related to the ALP securitization contributed to the earnings miss.
Despite the quarterly miss, the company’s full‑year 2025 results were robust. Basic and diluted EPS for the year were $2.21 and $2.18, respectively, up 12% from the prior year. Total revenue reached $284 million, a 10.6% increase from $257 million in 2024. Loans grew 53%, deposits 46%, and total assets 33%, positioning NewtekOne among the top two percent of similarly sized holding companies in return on average assets (2.78%) and return on average common tangible equity (19.0%).
Segment performance highlights a strategic shift toward core banking. The company completed a $295 million ALP securitization, its largest to date, strengthening its funding base and supporting future loan growth. Losses in the NSBF lending subsidiary declined, signaling a move toward more profitable core operations. The balance‑sheet expansion, driven by loan and deposit growth, underpins the company’s long‑term growth strategy.
CEO Barry Sloane emphasized that NewtekOne is “not a community bank” but a technology‑enabled financial institution built to serve customers. He noted that the company’s operating model is delivering the expected mix of growth and profitability, and highlighted the successful ALP securitization as a key milestone. Management guided for a midpoint EPS of $2.35 for 2026, with expectations of $1 billion in SBA 7(a) loans and $500 million in ALP originations, signaling confidence in continued loan growth and margin stability.
Investors reacted with a muted response to the earnings miss, but the overall market view remains positive given the company’s strong full‑year performance, balance‑sheet expansion, and clear guidance for 2026. The miss is viewed as a short‑term anomaly amid a broader strategy of shifting toward higher‑return core banking activities.
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