NewtekOne Q2 revenue, EPS rise

Overview

• NewtekOne Q2 revenue rises 15% yr/yr, driven by higher net interest income

• EPS for Q2 increases 23% yr/yr, reflecting strong operational performance

Outlook

• NewtekOne maintains 2025 EPS guidance of $2.10-$2.50

• NewtekOne sees growth beyond 2025 due to tax incentives

Result Drivers

• ALP SECURITIZATION - Successful securitization of $216 mln ALP loans contributed to revenue growth

• DIGITAL STRATEGY - Digital banking operations led to improved efficiency ratio and deposit growth

• BUSINESS DEPOSITS - $50 mln increase in business deposits supported net interest margin expansion

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "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 $13.00, about 9.9% above its July 25 closing price of $11.71

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

Press Release: ID:nGNXCbhJC