The sharp drop in EPS and revenue miss, driven by a doubling of credit loss provisions and near-zero loan sale gains, signal deteriorating earnings quality despite balance sheet growth. Watch for details on the provision trend and any update on strategic alternatives, which could include a sale or restructuring.
Price Chart
Executive Summary
NewtekOne reported Q3 2026 GAAP diluted EPS of $0.34, down 49% from $0.67 a year ago, missing the $0.39 consensus. Revenue (net interest income plus noninterest income) was $71.8M, below the $75.8M consensus. The company maintained its full-year 2026 EPS guidance of $1.70-$1.80. Net interest income grew 30% YoY to $19M, but a sharp increase in the provision for credit losses to $15.4M and lower gains on loan sales weighed on earnings. The CEO stated the company is exploring strategic alternatives to unlock value.
Key Financial Metrics
Key Facts
- Q3 2026 GAAP diluted EPS of $0.34 vs $0.67 in Q3 2025, a 49% decline
- EPS missed consensus estimate of $0.39
- Total revenue (net interest income + noninterest income) of $71.8M vs consensus of $75.8M
- Net interest income rose 30% YoY to $18.9M
- Provision for credit losses nearly doubled YoY to $15.4M from $7.7M
- Net gains on sales of loans collapsed to $32K from $9.6M a year ago
- Net income available to common shareholders fell to $9.6M from $17.4M
- Full-year 2026 EPS guidance maintained at $1.70-$1.80
- CEO said company is exploring strategic alternatives to better recognize value
- Book value per common share rose 9.2% YoY to $12.80
Financial Impact
EPS declined 49% YoY, revenue missed consensus by ~5%, net income fell 40%
Risk Factors
- Credit quality deterioration as provision for losses doubled YoY
- Transition away from gain-on-sale income to net interest income may pressure near-term earnings
- Maintained guidance implies a very strong Q4 to hit the $1.70-$1.80 range, creating execution risk
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-067881 |
| Document: earningsreleaseq32026wit.htm | 0001628280-26-067881 |
| Document: 0001628280-26-067881-index-headers.html | 0001628280-26-067881 |
| Document: 0001628280-26-067881-index.html | 0001628280-26-067881 |
| Document: 0001628280-26-067881.txt | 0001628280-26-067881 |
| 8-K Data (Synthetic) | 0001628280-26-067881 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 28, 2026 1d ago | 8-K | No price | awaiting T+5 | awaiting T+5 | No price |
Oct 28, 2026 1d ago | Press Release | $11.09 | awaiting T+5 | awaiting T+5 | $11.01 (+0.76%) |
Oct 21, 2026 8d ago | 8-K | $11.62 $11.01 | ▼ −5.25% | ▼ −5.96% | $11.01 (−5.25%) |
Oct 15, 2026 14d ago | Press Release | $10.94 | awaiting T+5 | awaiting T+5 | $11.01 (+0.64%) |
Sep 14, 2026 6w ago | 8-K | $12.26 $11.64 | ▼ −5.06% | ▼ −6.72% | $11.01 (−10.20%) |
Aug 28, 2026 8w ago | Press Release | $11.91 $12.44 | ▲ +4.45% | ▲ +4.34% | $11.01 (−7.56%) |
Jul 22, 2026 14w ago | EFFECT | $14.73 $14.74 | ▲ +0.07% | ▲ +2.47% | $11.01 (−25.25%) |
Jun 25, 2026 18w ago | S-3 | $14.69 $14.57 | ▼ −0.82% | ▼ −2.98% | $11.01 (−25.05%) |
Jun 16, 2026 19w ago | Insider Cluster | $13.92 $14.14 | ▲ +1.58% | ▲ +3.81% | $11.01 (−20.91%) |
Jun 15, 2026 19w ago | Insider Cluster | $13.72 $13.74 | ▲ +0.15% | ▲ +1.53% | $11.01 (−19.75%) |
US Market Status
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