Overview

* NewtekOne ( NEWT ) Q3 revenue grows 19.3% yr/yr, reflecting strong financial performance

* EPS for Q3 rises 51% yr/yr, indicating significant profitability improvement

* Company raises $30 mln CET1 capital, enhancing financial stability

Outlook

* Company plans fourth securitization of ALP loans in Q4 2025, expected to be largest yet

* NewtekOne ( NEWT ) aims to grow lower cost business deposits to capture operating leverage

* Company continues to expand digital banking services, opening over 21,000 accounts

Result Drivers

* LOAN ORIGINATIONS - Increased originations in Alternative Loan Program and SBA 7(a) loans contributed to revenue growth

* CAPITAL RAISE - Raised $30 mln of CET1 capital and $80 mln of Tier 1 capital, enhancing financial stability

* REFINANCING - Refinanced Newtek Merchant Solutions borrowing facility with $95 mln financing solution from Goldman Sachs

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 EPS $0.68

Q3 Net $14.54

Interest mln

Income

Q3 $25.06

Pretax mln

Profit

Q3 $7.71

Provisio mln

n for

Loan

Credit

Losses

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the corporate financial services peer group is "buy."

* Wall Street's median 12-month price target for NewtekOne Inc ( NEWT ) is $14.00, about 22.6% above its October 28 closing price of $10.83

* The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)