NEWT Q4 2025 Results Show Revenue Shortfall While Earnings Align With Analyst Consensus

NewtekOne’s Q4 2025 financial disclosure reveals a complex earnings picture, with the fintech company delivering mixed results against Wall Street expectations. Understanding the detailed metrics behind headline numbers provides investors with crucial insight into the company’s operational efficiency and business performance.

Revenue Contraction Misses Analyst Targets

NewtekOne generated $73.33 million in quarterly revenue for the period ended December 2025, marking a 2.7% contraction year-on-year. This result fell notably short of the Zacks consensus estimate of $80.99 million, representing a 9.45% variance from expectations. The earnings per share came in at $0.65, matching the consensus EPS projection precisely despite the revenue underperformance. This divergence between revenue miss and earnings match warrants closer examination of the company’s cost structure and operational efficiency.

Efficiency Metrics Deteriorate Amid Income Pressures

The Efficiency Ratio deteriorated to 55.2%, exceeding the two-analyst average estimate of 52.7%, signaling increased operational costs relative to revenue generation. Total noninterest income fell to $55.85 million compared to the three-analyst consensus of $62.12 million. Net interest income declined to $17.48 million against the $18.87 million average projection, indicating pressure across both primary revenue streams that NEWT relies upon.

Business Line Performance Breakdown

Within the noninterest income category, performance showed particular weakness in key revenue drivers:

• Servicing income underperformed at $5.2 million versus $5.5 million estimated
• Electronic payment processing generated $10.45 million against $12.27 million consensus, representing a notable $1.82 million variance
• Gains on loan sales reached $9.51 million, significantly trailing the $16.55 million two-analyst average
• Other noninterest income came in at $8.81 million below the $10.73 million estimate
• Net loss on loan servicing assets was $4.19 million, performing better than the $4.75 million projected
• Dividend income contributed $0.5 million slightly above the $0.44 million average estimate

The electronic payment processing and loan sale segments emerged as primary pressure points, combining for approximately $4 million in aggregate shortfalls versus expectations.

Market Reaction and Forward Outlook

NEWT shares demonstrated resilience, returning +20.4% over the trailing month despite Q4 results falling short of consensus, contrasting with the S&P 500’s +0.8% advance. However, the company carries a Zacks Rank #4 (Sell) designation, suggesting analysts expect near-term underperformance relative to the broader market. Investors should monitor whether management can stabilize revenue trends and restore the operational efficiency metrics that currently exceed analyst comfort levels.