GET DAILY SIGNALSNewtekOne (NEWT) Q3 2026 Earnings: Strategic Shift Weighs on Results
Key Takeaways
- NewtekOne reported third quarter 2026 net income of $10.7 million, down from $17.9 million in the year-ago quarter.
- Basic and diluted earnings per share (EPS) were both $0.34, compared with $0.68 and $0.67, respectively, a year earlier.
- Total revenue came in near $71.8 million, below analyst consensus estimates of roughly $77.5 million.
- The company maintained its full-year 2026 EPS guidance of $1.70 to $1.80, reflecting a strategic shift toward holding more loans and earning interest income.
- Deposits more than doubled year over year to about $2.5 billion, while the provision for credit losses rose sharply.
- For more on NewtekOne, visit its Major News and Today's Price Move pages, review analyst Price Targets, and check the Forecast page.
- Explore Trending AI Robots to discover AI-driven trading strategies tracking stocks like NEWT.
Why These Results Matter
NewtekOne, Inc. (Nasdaq: NEWT) is a financial holding company that provides banking, lending, payments, payroll, and insurance services to small and medium-sized businesses. Its quarterly results are closely watched because the company has been repositioning its business model since acquiring Newtek Bank in early 2023. Management has deliberately shifted from selling the guaranteed portions of SBA 7(a) loans toward holding more of them on its balance sheet, which reduces near-term gain-on-sale income but builds recurring net interest income (NII), the earnings a bank generates from lending. This transition makes third quarter 2026 results a key checkpoint for investors evaluating the durability of NewtekOne's earnings as it matures as a bank holding company. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Breaking Down the Reported Numbers
For the quarter ended September 30, 2026, NewtekOne reported net income of $10.7 million, down from $17.9 million a year earlier. Net income available to common stockholders was $9.6 million, resulting in basic and diluted EPS of $0.34, compared with $0.68 and $0.67, respectively, in the third quarter of 2025. Total revenue of approximately $71.8 million came in below the consensus estimate near $77.5 million, while EPS also missed analyst expectations of roughly $0.45.
The decline largely reflected the company's strategic repositioning. Gain on sale of loans fell to about $32,000 from $9.6 million a year ago, as NewtekOne held more guaranteed portions of SBA 7(a) loans rather than selling them. In contrast, net interest income rose 30% year over year to $18.9 million. The provision for credit losses climbed to $15.4 million from $7.7 million, and the non-GAAP efficiency ratio rose to 58.7% from 56.3%. Management maintained full-year 2026 EPS guidance of $1.70 to $1.80. From what I see, the numbers align with the transition phase management has outlined.
Market Reaction and Investor Sentiment
Investor sentiment heading into the report had already been tempered by NewtekOne's August 2026 guidance revision, when management lowered its 2026 EPS outlook to $1.70–$1.80 from a prior range of $2.15–$2.55. The third quarter miss on both revenue and EPS, driven by reduced loan-sale gains and a higher credit loss provision, reinforced concerns about the near-term earnings impact of holding more loans. At the same time, the rapid growth in net interest income and the doubling of deposits were viewed as early validation of the company's shift toward recurring, deposit-funded income. The mixed picture likely kept the focus on management's execution and commentary around the sustainability of the strategy.
Forward Outlook and Key Factors to Monitor
Following the third quarter 2026 results, investors will be watching whether net interest income continues to expand as a share of total revenue. Management has said it expects NII to represent 30% or more of total revenue in the second half of 2026 through 2027, up from 22% in the first half of the year. Progress toward that target will be a central measure of whether the strategy is working. I’m watching this closely as a potential signal of longer-term stability.
Credit quality also remains a priority. The provision for credit losses increased meaningfully, and management has noted that the bank's loan portfolio is still seasoning. Any stabilization or deterioration in nonperforming loans and the allowance for credit losses will be closely scrutinized.
Finally, deposit growth is a key advantage to monitor. Total deposits surpassed $2.5 billion, more than double the prior-year level, and NewtekOne has indicated it is exploring strategic options, including licensing its lending and deposit-gathering platforms. How management balances growth, credit costs, and the timing of any strategic moves will shape the outlook for the coming quarters.
Integrating AI Tools Into My Research
In my analysis, I find Tickeron’s AI Screener helpful for quickly filtering stocks by fundamentals, patterns, and performance metrics. It lets me compare names like NewtekOne against peers without spending hours on manual checks, which keeps the focus on the bigger picture of strategy execution and earnings trends.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
NEWT's RSI Oscillator ascending out of oversold territory
The RSI Oscillator for NEWT moved out of oversold territory on October 15, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 36 similar instances when the indicator left oversold territory. In 27 of the 36 cases the stock moved higher. This puts the odds of a move higher at 75%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 20, 2026. You may want to consider a long position or call options on NEWT as a result. In 67 of 93 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 72%.
The Moving Average Convergence Divergence (MACD) for NEWT just turned positive on September 29, 2026. Looking at past instances where NEWT's MACD turned positive, the stock continued to rise in 26 of 41 cases over the following month. The odds of a continued upward trend are 63%.
Following a +3.97% 3-day Advance, the price is estimated to grow further. Considering data from situations where NEWT advanced for three days, in 219 of 323 cases, the price rose further within the following month. The odds of a continued upward trend are 68%.
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NEWT declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 78%.
NEWT broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for NEWT entered a downward trend on October 22, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 17 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.911) is normal, around the industry mean (1.269). P/E Ratio (5.166) is within average values for comparable stocks, (13.240). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (1.190). Dividend Yield (0.066) settles around the average of (0.035) among similar stocks. NEWT's P/S Ratio (1.216) is slightly lower than the industry average of (3.738).
The Tickeron SMR rating for this company is 36 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 47 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 59 (best 1 - 100 worst), indicating fairly steady price growth. NEWT’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. NEWT’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 57, placing this stock worse than average.
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General Information
a provider of financial services to small and medium sized businesses
Industry RegionalBanks
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