NewtekOne Earnings Call Transcripts
Fiscal Year 2026
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A technology-driven financial holding company serving SMBs, with industry-leading returns, rapid deposit and loan growth, and a unique zero-fee banking model. AI and proprietary systems drive efficiency and customer acquisition, while diversified lending and strong regulatory compliance support sustained profitability.
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Q1 2026 delivered strong EPS growth, record loan and deposit expansion, and robust credit quality. Technology and real-time payments fueled efficiency, while guidance for 2026 and 2027 was reaffirmed. Capital ratios remain healthy and risk is well-managed.
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Management outlined a technology-driven, scalable business model focused on integrated financial solutions for independent businesses, with strong growth in book value, efficiency, and diversified revenue. 2026 guidance includes robust EPS and loan origination targets, while new AI-enabled products and securitizations drive profitability and risk management.
Fiscal Year 2025
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Reported record 2025 earnings with net income before taxes of $80M and revenue up 10.6% year-over-year. Tangible book value nearly doubled, deposit growth accelerated, and 2026 EPS guidance is set at $2.15–$2.55, reflecting strong loan origination and efficiency gains.
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Q3 2025 saw robust growth in revenue, EPS, and tangible book value, with strong deposit and loan growth outpacing peers. ALP securitization is set for a record Q4, while capital and efficiency ratios remain industry-leading. Guidance is cautious due to the government shutdown.
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A technology-driven financial services provider highlighted its scalable, branchless model, leveraging AI and digital platforms to deliver comprehensive solutions to independent business owners. Strong alliances, efficient operations, and innovative loan programs drive profitability and set it apart from traditional banks.
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Q2 2025 saw 15% revenue growth, strong deposit inflows, and improved margins, with EPS and guidance reaffirmed. ALP securitizations and digital banking integration drove profitability, while provisions and reserves remain robust. Tangible book value and capital position continue to strengthen.
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Q1 2025 EPS beat guidance, with strong loan growth, expanding margins, and improved efficiency. ALP and SBA portfolios show low charge-offs, while NSBF losses decline. Management expects continued earnings growth despite a tougher credit environment and ongoing industry changes.
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NewtekOne divested its technology solutions unit to IPM (formerly Paltalk), receiving cash, preferred equity, and a potential earn-out, while retaining a significant non-voting stake. The deal fulfills regulatory requirements, ensures operational continuity, and positions IPM for growth in managed IT and cybersecurity.
Fiscal Year 2024
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Delivered strong Q4 and full-year 2024 results with robust loan and deposit growth, improved margins, and record non-interest income. 2025 guidance was raised, with continued portfolio diversification and technology-driven efficiency expected to support earnings growth.
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Q3 2024 EPS beat consensus, with strong ROA, NIM, and efficiency ratios. Deposit and loan growth remained robust, payment processing and insurance segments expanded, and 2025 EPS guidance was raised. Management highlighted risk-adjusted returns, capital strength, and a new share buyback.
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A tech-driven, branchless model delivers high returns, rapid deposit and loan growth, and diversified income streams. With robust infrastructure and a focus on organic expansion, the business is positioned for significant future growth and industry leadership.
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Q2 2024 EPS of $0.43 beat consensus, with strong deposit and loan growth and reaffirmed full-year EPS guidance. Non-interest income, especially from the ALP and merchant services, is expected to offset trimmed loan production in H2. Capital and credit metrics remain robust.
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The company has completed its transformation into a tech-driven financial holding company, focusing on small business lending, digital banking, and integrated services. Strong credit performance, robust deposit growth strategies, and expanding alternative lending are driving improved earnings guidance and future growth, with ongoing investments in technology and compliance.