NewtekOne (NEWT) Stock Price Lags As Revenue Grows And EPS Slips

NewtekOne came into this earnings print with the stock already under pressure, down over the past month and quarter, and it slipped another 1.2% today to US$12.73. That cool reaction sits against a quarter where the headline story is earnings power holding up as the bank centric model scales. Basic earnings per share for Q2 landed at about US$0.48 on revenue a little above US$100m, and trailing twelve month earnings from continuing operations remained solid. For a stock that trades on a low single digit P/E, that gap between price and profit will be the debate from here.

Is NewtekOne trading at a genuine value level on a mid single digit P/E, or is the low share price a warning about earnings quality and interest costs? See how that trade off stacks up in our valuation analysis for NewtekOne

Q2 2026 Earnings Summary

• Revenue, Q2 2026 vs Q2 2025: US$106.4m vs US$92.8m (up about 14.7%)
• Net Income (Excl. Extra Items), Q2 2026 vs Q2 2025: US$13.5m vs US$13.3m (broadly flat, up about 1.8%)
• Basic EPS, Q2 2026 vs Q2 2025: US$0.48 vs US$0.53 (down about 10.1%)
• Trailing 12 Month Net Income (Excl. Extra Items), Q2 2026 vs Q2 2025: US$61.8m vs US$51.7m (up about 19.5%)

Prefer clear charts instead of another wall of numbers and footnotes? View NewtekOne's valuation, earnings and balance sheet story in one simple visual through our company report for NewtekOne.

NewtekOne bull case leans on recurring bank earnings

Bulls argue NewtekOne’s tech led, branchless bank model should convert small business lending into recurring, fee rich and net interest income heavy earnings. Q2 shows some of that playing out. Bank net interest income moved from US$16.2m to US$25m year on year, which supports the claim that routing more volume through Newtek Bank is building a repeatable income base. Deposit gathering via digital account opening lifted balances from US$142m at inception to US$2.2b, with an insured heavy mix and a loan to deposit ratio around 90%. That gives the platform a funding core to support the NewTracker centric ecosystem. Profit before provisions and taxes as a percentage of average assets dipped from 5.25% to 4.22% but still sits well above typical US bank levels. That suggests the efficiency thesis is working, even if the margin gap has narrowed.

Bear case focuses on earnings mix, credit and pressure

The bear view is that higher funding costs, credit risk and competitive pressure could squeeze NewtekOne’s lending economics and earnings quality. Q2 gives some fuel to that argument. Basic EPS fell from US$0.53 to US$0.48 even as revenue rose, which fits management’s own comment that holding more guaranteed SBA and C&I loans inside the bank will trim gain on sale income near term. PPNR as a share of assets slid from 5.25% to 4.22%. That points to some pressure on profitability as the balance sheet grows. On credit, management has built an allowance for credit losses where about 89% is tied to unguaranteed SBA 7(a) loans, with coverage of roughly 8.56% on that slice. That level of reserving shows clear awareness of small business risk and also signals that credit costs can materially affect future earnings if conditions stay challenging.

See how NewtekOne’s push toward bank centric, recurring earnings lines up against Wall Street expectations and whether the recent share price weakness has analysts trimming or lifting their targets. Compare that internal progress with the street’s view in the consensus price target analysis for NewtekOne.

Stay Ahead With Simply Wall St

If NewtekOne’s low P/E and shifting earnings mix have your attention, register for free with Simply Wall St and add it to your Watchlist to track the share price against fair value and watch how each new quarter affects the story. After you decide to build a position, use the Portfolio Command Center to focus on the metrics that matter most. For a broader view, tap into the Community to see how other investors are thinking about banks with evolving business models like NewtekOne. By spotting hidden catalysts and risks early, you give yourself more information to stay ahead of the market and react with confidence.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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