NewtekOne (NEWT) Meets Earnings Targets But Faces Revenue Headwinds

NewtekOne’s most recent quarterly results demonstrate a mixed performance that tells an important story for investors. The financial services provider reported earnings of $0.65 per share for the period ended in December 2025, perfectly aligned with Wall Street’s consensus expectations. However, beneath this headline number lies a more nuanced picture that warrants closer examination. While EPS performance matched predictions, the company’s revenue generation tells a different story, falling short of what analysts anticipated.

Financial Results: Where NEWT Hit and Missed

The company’s quarterly earnings of $0.65 per share represents a slight decline from the prior year’s $0.69, adjusting for non-recurring items. This alignment with consensus forecasts reflects stable earnings power despite year-over-year headwinds. More notable is NewtekOne’s revenue performance: the $73.33 million generated during the quarter missed Zacks consensus estimates by 9.45%, compared to revenues of $75.37 million in the year-ago period. This revenue contraction signals potential headwinds in the small-to-medium business lending and services market.

Looking at recent track records, NewtekOne has delivered a mixed batting average. Over the past four quarters, the company exceeded consensus earnings estimates three times, including a notable beat of 6.35% in the prior quarter when it delivered $0.67 in EPS against $0.63 expectations. However, on the revenue front, NewtekOne has topped consensus estimates only once over the same four-quarter span, suggesting more consistent challenges in the top-line growth department.

Stock Performance: Outpacing the Broader Market

Despite earnings challenges, NewtekOne shares have demonstrated notable strength relative to broader market movements. Year-to-date, NEWT has gained approximately 20.4%, significantly outpacing the S&P 500’s gain of just 1.9%. This performance divergence raises important questions about what’s driving investor enthusiasm and whether current valuations reflect sustainable business momentum or temporary market sentiment.

Earnings Estimates and Forward Guidance: The Critical Factor

The sustainability of NewtekOne’s recent price momentum depends significantly on management’s commentary during the earnings call and the company’s forward guidance. Empirical research demonstrates a strong correlation between near-term stock price movements and revisions to earnings expectations. Currently, the estimate revision trend for NEWT has turned unfavorable, translating into a Zacks Rank of #4 (Sell), which typically signals expected market underperformance in the near term.

For the coming quarter, consensus expectations center on EPS of $0.48 supported by revenues of $77.28 million. For the full fiscal year, analysts project EPS of $2.31 on revenues totaling $331.56 million. These forward estimates will likely require reassessment following this earnings report, particularly given the recent revenue miss.

Industry Dynamics: A Favorable Backdrop

Within the Zacks Financial – Miscellaneous Services industry classification, NewtekOne benefits from an industry ranked in the top 39% of over 250 Zacks sectors. Historical analysis shows that companies within top-50% ranked industries outperform bottom-50% counterparts by a factor exceeding 2-to-1. This industry positioning provides NewtekOne with a favorable structural backdrop, even as the company navigates specific operational challenges.

A comparable company in the same industry space, Coinbase Global (COIN), has yet to report December 2025 results, with an expected release on February 12. Market expectations position Coinbase to report quarterly earnings of $1.15 per share, representing a 66.1% year-over-year decline, with revenues expected at $1.85 billion, down 18.8% from the prior-year quarter. This peer comparison underscores industry-wide pressures while highlighting the relative resilience NewtekOne has demonstrated in the earnings realm.

Conclusion: Weighing NEWT Investment Potential

For investors considering NewtekOne, the investment thesis hinges on a delicate balance. While NEWT has outperformed the market substantially this year and demonstrated earnings consistency, the unfavorable earnings revision trend and revenue miss suggest caution is warranted. The Zacks Rank #4 positioning reflects analyst sentiment that the stock may underperform in the near term. Investors evaluating whether to initiate or adjust positions in NewtekOne should closely monitor upcoming earnings revisions and management commentary, as these factors will likely determine whether the stock can sustain its year-to-date outperformance.