NEWT Earnings Meet Expectations But Revenue Growth Falters

NewtekOne (NEWT) delivered quarterly earnings of $0.65 per share, right in line with what analysts had projected. The figure represents a slight decline from the $0.69 earnings per share reported in the same quarter a year earlier. After stripping out one-time items, the company’s bottom-line performance held steady with analyst consensus, though the broader picture tells a more nuanced story about the small-to-medium-sized business services provider’s current trajectory.

What makes this quarter particularly interesting is how NEWT has performed relative to expectations. A quarter earlier, NEWT exceeded forecasts by posting $0.67 in earnings against a projected $0.63—a beat of 6.35%. This pattern of occasionally outperforming guidance underscores management’s tendency to guide conservatively. Over the past four quarters, NEWT has surpassed consensus EPS estimates three times, demonstrating solid execution from the company’s financial and business services operations.

Revenue Misses Mark a Concern for NEWT Investors

However, the earnings strength couldn’t mask a troubling development on the revenue front. NEWT reported $73.33 million in quarterly revenue for the period ending December 2025, falling short of the Zacks Consensus Estimate by 9.45%. This represents a decline from the $75.37 million generated in the prior-year quarter, signaling potential headwinds for the company’s growth trajectory.

The revenue shortfall is particularly noteworthy because it highlights a broader concern: NEWT has managed to beat revenue expectations just once over the last four quarters. This inconsistent performance against revenue targets suggests management may be facing challenges in driving top-line growth, even as it maintains disciplined cost management on the earnings side.

The immediate direction of NEWT stock will largely hinge on what management communicates during its upcoming earnings call. Market participants will be listening closely for guidance on the coming quarters and any color on underlying business trends. Since the company’s 2025 year-to-date gain of 20.4% far outpaced the S&P 500’s modest 1.9% advance, investors will be scrutinizing whether this outperformance is sustainable.

Zacks Rating Signals Caution: What’s Next for NEWT?

The critical question facing NEWT investors is whether the stock can maintain its market-beating trajectory. One proven indicator of near-term stock movements is the direction of analyst earnings estimate revisions. Research consistently shows that stocks benefiting from upward estimate revisions tend to outperform those facing downward revisions.

Before the latest earnings release, the trend for NEWT was decidedly unfavorable. Estimates had been revised downward, painting a cautious picture for the near term. This estimate revision environment currently translates to a Zacks Rank #4 (Sell) rating for NEWT shares, suggesting the stock is expected to underperform the broader market in the months ahead.

For the upcoming quarter, analysts currently project NEWT will earn $0.48 per share on revenues of $77.28 million. For the full fiscal year, the consensus call is $2.31 in earnings per share and $331.56 million in revenues. These projections represent the baseline against which management guidance and actual results will be measured.

How Industry Dynamics Shape NEWT’s Outlook

Beyond company-specific factors, the health of the broader Financial - Miscellaneous Services industry matters considerably for NEWT’s prospects. Currently, this sector ranks in the top 39% among more than 250 Zacks-tracked industries, suggesting relative strength in the competitive landscape. Historical analysis shows that the top-performing 50% of industries outpace the bottom 50% by a factor exceeding 2 to 1, underscoring the importance of industry selection.

Another player in the same sector, Coinbase Global, Inc. (COIN), is set to report results for the December 2025 quarter on February 12, 2026. Analysts expect COIN to post quarterly earnings of $1.15 per share, representing a dramatic 66.1% year-over-year decline. The consensus estimate for COIN has been trimmed 5.7% lower over the past month, and revenues are projected at $1.85 billion, down 18.8% from the prior-year quarter. The performance of COIN and the broader industry will provide important context for assessing NEWT’s competitive positioning.

Should You Consider NEWT for Your Portfolio?

The case for NEWT hinges on whether management can reignite revenue growth while maintaining earnings discipline. The company’s ability to beat EPS estimates has been encouraging, but persistent revenue misses suggest growth acceleration may be elusive in the near term. With a Sell rating from the Zacks system and negative estimate revision momentum, NEWT appears to be in a consolidation phase rather than a breakout opportunity.

For investors seeking exposure to growth stocks with stronger near-term catalysts, exploring Zacks’ latest research on high-conviction stock ideas may be worthwhile. The Zacks ranking system has demonstrated its value over decades, with an average annual return of +24.08% since 1988, significantly outpacing the S&P 500’s historical average. As you evaluate NEWT alongside other opportunities, letting earnings estimate trends guide your decision-making can improve your odds of capturing outperformance.