Overview

• U.S. financial solutions firm's Q4 revenue rose 10.6% yr/yr

• Adjusted EPS for Q4 fell compared to last year

• Company completed largest rated securitization backed by ALP loans

Outlook

• NewtekOne expects 2026 EPS between $2.15 and $2.55

• Company plans to diversify loan portfolio in 2026 and beyond

Result Drivers

• REVENUE GROWTH - Total revenue increased by 10.6% in 2025, driven by higher net interest and noninterest income

• EFFICIENCY IMPROVEMENT - Efficiency ratio improved to 58.3% in 2025 from 63.2% in 2024, indicating better cost management

• DEPOSIT GROWTH - Commercial deposits grew by 70% Y/Y, while core consumer deposits increased by 40% Y/Y

Key Details

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 is $14.00, about 2.4% above its January 28 closing price of $13.67

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release: ID:nGNX76601s

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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.)