NewtekOne (NEWT) Q3 2025 earnings summary

Executive summary

• Achieved strong Q3 2025 financial results with EPS up 49% year-over-year, revenue up 19%, and tangible book value per share rising to $11.22, up 25.6% year-over-year.

• Business and consumer deposits grew 17% and 12% sequentially, with total deposits reaching $1.18 billion, up 81% year-over-year.

• The company leverages a digital, branchless banking model and technology-enabled customer acquisition, serving over 110,000 jobs through SBA programs.

• Diversified product mix includes SBA 7(a), ALP, CRE, and C&I lending, with ALP originations and securitizations at record levels.

• Capital structure strengthened through $80M in Tier 1 and $30M in CET1 capital raises, Series B Preferred issuance, and refinancing of a $95M merchant facility.

Financial highlights

• Q3 2025 basic and diluted EPS were $0.68 and $0.67; nine-month EPS were $1.57 and $1.54, up 47% and 22% year-over-year.

• Net income for Q3 2025 was $17.4 million, up 51% year-over-year; YTD net income was $41.0 million.

• Tangible book value per share increased to $11.22, up 25.6% year-over-year and 6.4% sequentially.

• Efficiency ratio improved to 56.3% in Q3 2025 from 61.8% in Q3 2024.

• ALP loans held for sale grew 179% year-over-year; non-ALP loans held for sale up 150%.

Outlook and guidance

• Preparing for a record ALP securitization of $325M–$350M in Q4 2025, with continued growth targeted in ALP originations ($500M–$600M next year).

• Guidance for Q4 EPS ($0.65–$0.80) not reaffirmed due to government shutdown uncertainty, but not withdrawn.

• Management remains focused on liquidity, capital, and asset-liability management, with no material changes to risk factors or guidance.

• Payments, payroll, and insurance business lines are expected to continue contributing to earnings and deposit growth.

• Plans to further diversify the loan portfolio into CRE and C&I.