Q2 2026 NewtekOne Inc Earnings Call Transcript

Aug 6, 2026 / 08:30 PM GMT

Release Date Price: €13 (-2.26%)

Transcript 10-Q8-K

Key Points

Positve

NewtekOne Inc (NEWT) reported strong quarterly earnings within the range of $0.48 to $0.47 per share, with tangible book value growing 75.3% over the past 12 quarters since its conversion to a financial holding company.
The company achieved significant operating leverage, with asset growth of 50% while expenses only increased 3.6%, and maintained a strong return on average assets (ROA) of 2% at the holding company level.
Deposit gathering has been highly successful, with non-affiliate deposits growing from $142 million to $2.2 billion over 14 quarters, and core consumer deposits increasing by $297 million in the quarter, with 81% of accounts insured under the $250,000 limit.
Net interest income at the bank grew substantially to $25 million in Q2 2026 from $16.2 million in Q2 2025, driven by holding more SBA 7A loans and the C&I lending business, which is expected to provide a more stable and recurring income stream.
The company's securitization business is performing well, with over-collateralization growing by $11-14 million across its active deals, and the company has a strong track record of 17 securitizations with no credit watch or downgrades.
NewtekOne Inc (NEWT) is exploring strategic opportunities to license its technology platform (NewTracker, Newtek Advantage) to other financial institutions, which could open new revenue streams and validate its innovative business model.

Negative

The company has withdrawn its previous EPS guidance of $7.9-$8.9 for Q4 2026, citing a strategic shift to hold more loans on its balance sheet, which will reduce gain-on-sale income in the near term and create uncertainty for investors.
Net interest margin (NIM) contracted in the quarter due to the shift of operations to the bank and the impact of securitizations at the holding company, which may pressure profitability metrics in the short term.
Non-performing loans (NPLs) increased, particularly in the guaranteed SBA loan portfolio, as the company has chosen to be more aggressive in buying back problem loans from the secondary market, which could increase credit risk and require higher reserves.
The company's allowance for credit losses (ACL) coverage ratio on unguaranteed SBA 7A loans is elevated at 8.56%, reflecting higher loss characteristics, and 30-day past due loans are increasing as the portfolio matures, indicating potential credit quality challenges.
The $15 million loan to Saatt Holdings (summer camps operator) is in bankruptcy, and while management expects full recovery, the situation introduces uncertainty and highlights the risks inherent in the SMB lending space.
The company's stock trades at a low multiple of 5.5-6 times earnings compared to the banking industry's 9-11 times, and management acknowledged that the shift to more net interest income may not immediately improve the valuation, leaving shareholders with limited near-term upside.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

NEWT.OQ - NewtekOne, Inc.
Q2 2026 NewtekOne Inc Earnings Call
Aug 06, 2026 / 08:30PM GMT

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Presentation
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Unidentified_1 [1]
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Good day and thank you for standing by.

Welcome to the new tech 12 quarter 2026 earnings conference call.

At this time, all participants are in a listen-only mode.

After the speaker's presentation, there will be a question-and-answer session session.

To ask a question during the session, you will need to press 11 on your telephone.

You'll then hear an automated message advising your hand is raised.

To withdraw your question, please press 11 again.

Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your first speaker today, Barry Sloan, President and CEO of New Tech One.

Please go ahead.

Thank

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