Overview

* NewtekOne ( NEWT ) Q2 revenue rises 15% yr/yr, driven by higher net interest income

* EPS for Q2 increases 23% yr/yr, reflecting strong operational performance

Outlook

* NewtekOne ( NEWT ) maintains 2025 EPS guidance of $2.10-$2.50

* NewtekOne ( NEWT ) sees growth beyond 2025 due to tax incentives

Result Drivers

* ALP SECURITIZATION - Successful securitization of $216 mln ALP loans contributed to revenue growth

* DIGITAL STRATEGY - Digital banking operations led to improved efficiency ratio and deposit growth

* BUSINESS DEPOSITS - $50 mln increase in business deposits supported net interest margin expansion

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 EPS $0.53

Q2 Net $12.98

Interest mln

Income

Q2 Basic $0.53

EPS

Q2 $18.77

Pretax mln

Profit

Q2 $9.12

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 1 "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 $13.00, about 9.9% above its July 25 closing price of $11.71

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

Press Release:

(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.)