NewtekOne (NEWT) Q4 2025 earnings summary

Executive summary

• Achieved record 2025 earnings with basic and diluted EPS of $2.21 and $2.18, up 12% and 11% year-over-year; 4Q25 EPS was $0.65.

• Net income before taxes for 2025 was $80 million, up 16.4% year-over-year; net income was $58.2 million, up 18%.

• Book value per share and tangible book value per share ended 2025 at $12.19 and $11.68, up 16% and 24% year-over-year.

• Opened over 9,000 new depository accounts in Q4, reaching 34,000 active accounts, with business and consumer deposits up 70% and 40% year-over-year.

• Closed a $295 million securitization backed by $342 million of ALP loans in January 2026, the largest to date and ten times oversubscribed.

Financial highlights

• Total revenue for 2025 was $284.8 million, up 10.6% from 2024.

• Pre-provision net revenue (PPNR) for 2025 was $118.7 million, a 25% increase year-over-year.

• Efficiency ratio improved to 58.3% in 2025 from 63.2% in 2024; 4Q25 ratio was 55.2%.

• Return on average assets (ROAA) was 2.78%; return on average equity (ROAE) was 16.6%; ROTCE was 19.0%.

• Tangible book value per share increased 4% sequentially and 24% year-over-year, up 69% since conversion to a financial holding company.

Outlook and guidance

• 2026 EPS guidance range is $2.15–$2.55, with a midpoint of $2.35.

• Projected $1 billion in SBA 7(a) originations, $500 million in ALP/C&I loans, $175 million in SBA 504, and $150 million net growth in C&I and CRE portfolios.

• Book value per share expected to reach $13.49–$13.89 and tangible book value per share $12.98–$13.38 in 2026.

• Management expects continued diversification of the loan portfolio and further digital banking expansion.

• Expect further decline in NSBF losses and continued efficiency improvements.