8-K: NewtekOne Reports Strong 2025 EPS Growth, Raises 2026 Guidance

NewtekOne, Inc. announced robust financial results for 2025, with significant EPS growth and an optimistic outlook for 2026, driven by strong loan and deposit growth.

Summary

• Full-year 2025 basic and diluted earnings per share (EPS) were $2.21 and $2.18, respectively, compared to $1.97 and $1.96 in 2024.
• Fourth quarter 2025 basic and diluted EPS were $0.65 and $0.65, respectively, a decrease from $0.70 and $0.69 in 4Q24.
• Book value per common share reached $12.19 at the end of 2025, representing a 15.9% year-over-year and 4.0% quarter-over-quarter increase.
• Tangible book value per common share ended 2025 at $11.68, up 24.4% year-over-year and 4.1% quarter-over-quarter.
• Total revenue for 2025 was $284.8 million, an increase of 10.6% from $257.6 million in 2024.
• Net income before taxes for 2025 was approximately $80.0 million, up 16.4% from $68.7 million in 2024.
• Pre-provision net revenue (PPNR) for 2025 increased by 25.1% to approximately $118.7 million from $94.9 million in 2024.
• The efficiency ratio improved to 58.3% for 2025 from 63.2% for 2024.
• Return on average assets (ROAA) was 2.78% for 2025, and return on average tangible common equity (ROTCE) was 19.0% for 2025.
• Originated $363 million of Alternative Loan Program (ALP) loans in 2025, up from $270 million in 2024.
• Originated $768 million of SBA 7(a) loans in 2025, a decrease from $943 million in 2024.
• Commercial deposits at Newtek Bank increased by $164.0 million (70%) year-over-year, and core consumer deposits grew by $293.0 million (40%) year-over-year.
• Newtek Bank opened over 9,000 deposit accounts in 4Q25, a 50% increase over the previous quarterly record.
• Repurchased 126,595 common shares in 4Q25 at a weighted average cost of $10.43 per share.
• On January 21, 2026, the company closed a $295 million securitization backed by ALP loans, which was ten times oversubscribed by 32 institutions.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a strong positive report, highlighting significant year-over-year growth in key financial metrics, improved efficiency, and a positive outlook for 2026, despite a slight sequential dip in Q4 EPS.

Positives

• Strong full-year 2025 basic EPS of $2.21 and diluted EPS of $2.18, showing favorable growth compared to 2024.
• Significant year-over-year increases in book value per common share (15.9%) and tangible book value per common share (24.4%).
• Total revenue for 2025 increased by 10.6% to $284.8 million.
• Net income before taxes grew by 16.4% to $80.0 million in 2025.
• Pre-provision net revenue (PPNR) increased substantially by 25.1% to $118.7 million in 2025.
• Improved efficiency ratio to 58.3% for 2025 from 63.2% for 2024, indicating better operational leverage.
• Return on average assets (ROAA) of 2.78% for 2025, which management believes is among the top 2% of comparably-sized bank holding companies.
• Robust growth in loans (53%), deposits (46%), and assets (33%) for 2025.
• Commercial deposits at Newtek Bank increased by 70% year-over-year, and core consumer deposits grew by 40% year-over-year.
• Record deposit account openings in 4Q25, surpassing the previous quarterly record by roughly 50%.
• Successful closing of a $295 million ALP securitization, which was ten times oversubscribed with 32 institutions, including ten first-time buyers.
• All prior securitizations have maintained their initial investment-grade ratings or been upgraded and have never been on credit watch.
• Stabilizing credit quality metrics at Newtek Bank and the Company.
• Robust capital position achieved through successful common and preferred equity offerings in 2025.
• 25% of Newtek Bank business lending clients have purchased life insurance policies since February 2024.

Negatives

• Fourth quarter 2025 basic and diluted EPS of $0.65 and $0.65, respectively, were lower than 4Q24 EPS of $0.70 and $0.69.
• SBA 7(a) loan originations decreased to $768 million in 2025 from $943 million in 2024.
• Net loss on loan servicing assets increased to $(16,692) thousand in 2025 from $(12,665) thousand in 2024.
• Net gains on sales of loans decreased to $47,555 thousand in 2025 from $97,183 thousand in 2024.
• Electronic payment processing income decreased to $43,849 thousand in 2025 from $46,049 thousand in 2024.
• Other noninterest income decreased to $32,969 thousand in 2025 from $40,296 thousand in 2024.

Risks

• The filing refers to 'Risk Factors in our filings with the Securities and Exchange Commission' for detailed risks, which are available on NewtekOne's website and www.sec.gov. Specific risks are not detailed within this 8-K filing.

Future Outlook

The company established an EPS guidance range for 2026 of $2.15-$2.55, with a midpoint of $2.35 per share. Management believes the company has entered 2026 with tremendous momentum and Newtek Bank intends to continue diversifying its loan portfolio in 2026 and beyond.

Management Comments

• "We are pleased to report basic and diluted EPS of $2.21 and $2.18 for 2025, which compare favorably to basic and diluted EPS of $1.97 and $1.96 for 2024."
• "Our operating model, designed to produce healthy balance sheet growth and profitability and to capture operating leverage, is working as planned."
• "Growth in loans, deposits, and assets for 2025 approximated 53%, 46%, and 33%, respectively."
• "We generated a 2025 return on average assets of 2.78%, which we believe to be among the top 2% of comparably-sized bank holding companies, and a 2025 return on average common tangible equity of 19.0%."
• "Total revenue of $285 million in 2025 was up 10.6% over 2024, while operating expenses increased just 2.1%, leading to an improvement in the operating efficiency ratio from 63.2% for 2024 to 58.3% for 2025."
• "On top of those favorable fundamental trends, we ended the year with a robust capital position after successful common and preferred equity offerings in 2025 and with stabilizing credit quality metrics at Newtek Bank and the Company."
• "We have entered 2026 with tremendous momentum."
• "Investor receptivity for the $295 million of rated notes issued in the transaction was incredibly strong. The securitization was ten times oversubscribed and distributed across 32 buyers, including ten first-time buyers of our securitization notes."
• "The ALP loan program is a good example of NewtekOne making good on its mission to provide business and financial solutions to independent business owner clients and to help our clients be more successful."
• "In January, we celebrated our three-year anniversary of converting to a technology-enabled financial holding company, which improved our ability to deliver our value proposition to our independent business owner clients while allowing us to diversify our funding sources, reduce our funding costs, and generate value for our investors."
• "NewtekOne is more than just an SBA lender; Newtek Bank intends to continue diversifying its loan portfolio in 2026 and beyond."
• "We believe that NewtekOne looks different than the vast majority of our competitors."
• "We believe we have created meaningful franchise value in transforming a single-branch sixty year old bank in Flushing, New York, with an antiquated operating model into a branchless, bankerless digital bank."
• "We believe that NewtekOne has demonstrated, in a relatively short period of time, the ability to raise deposits and make loans digitally and to provide value-added payroll, insurance, and real-time payment solutions to its clients."

Industry Context

StockSavvy.ai notes that NewtekOne's transformation into a technology-enabled financial holding company and its focus on digital banking and diversified loan portfolios align with broader industry trends towards fintech integration and specialized lending for small and medium-sized businesses. The strong deposit growth and successful securitization demonstrate effective capital management in a competitive financial landscape.

Comparison to Industry Standards

• NewtekOne's 2025 return on average assets (ROAA) of 2.78% is believed by management to be among the top 2% of comparably-sized bank holding companies.
• The $295 million ALP securitization was ten times oversubscribed, indicating strong investor confidence compared to typical market demand for such instruments.
• All of NewtekOne's prior securitizations have maintained or been upgraded in their initial investment-grade ratings and have never been on credit watch, which is a strong indicator of credit quality and market acceptance compared to industry averages.

Stakeholder Impact

• Shareholders: Positive impact due to strong EPS growth, increased book value, share repurchases, and a positive 2026 EPS guidance. Dividends were also paid.
• Clients (Independent Business Owners): Positive impact from diversified loan offerings, technology-enabled solutions, and value-added services like payroll, insurance, and real-time payments.
• Investors in Securitized Notes: Strong demand and historical performance of securitizations indicate reliability and attractive investment opportunities.

Next Steps

• A conference call to discuss the fourth quarter and full year 2025 financial and operating results will be hosted on January 29, 2026, at 4:30 p.m. ET.
• Newtek Bank intends to continue diversifying its loan portfolio in 2026 and beyond.
• The company will file its Form 10-K for the year ended December 31, 2025.

Key Dates

Recommendation

The filing demonstrates robust financial performance for the full year 2025, with significant growth in EPS, revenue, and profitability metrics. The company's strategic transformation into a technology-enabled financial holding company is yielding tangible results, including strong deposit and loan growth, improved efficiency, and successful capital market activities like the oversubscribed securitization. The 2026 EPS guidance, with a midpoint higher than 2025 actuals, indicates continued positive momentum. Despite a slight Q4 EPS dip, the overall trajectory and strategic execution suggest strong future potential, making it an attractive investment.

Keywords

NewtekOne, NEWT, financial results, earnings, EPS, banking, lending, SBA loans, securitization, deposits, financial holding company, Q4 2025, full year 2025, guidance, financial services