NewtekOne (NEWT) Q2 2026 earnings summary

Executive summary

• Reported Q2 2026 basic and diluted EPS of $0.48 and $0.47, within guidance, with strong book value and deposit growth, and operating leverage as assets grew nearly 50% while expenses rose just 3.6%.

• Book value per share ended Q2 2026 at $12.64, up 2.3% sequentially and 13.8% year-over-year; tangible book value per share at $12.13, up 2.4% sequentially and 15% year-over-year.

• Net income for Q2 2026 was $14.6 million, and for the first half of 2026 rose 21.4% year-over-year to $28.0 million, driven by deposit growth and a maturing bank-funded lending model.

• All loan origination now occurs at the bank, with deposits funding new loans, supporting strong balance sheet growth and a shift toward recurring net interest income.

• Focused on technology-driven banking for SMBs, leveraging digital account opening, AI, and real-time payments to efficiently acquire and serve clients nationwide.

Financial highlights

• Total revenue for Q2 2026 was $75.1 million, up 7% from Q2 2025; net interest income at the bank rose from $16.2M in Q2 2025 to $25M in Q2 2026.

• Net interest income for the first half of 2026 was $32.2 million, up from $27.9 million year-over-year.

• Deposits surpassed $2 billion, with core consumer deposits up 124% year-over-year and non-affiliate business deposits up 47% year-over-year.

• Tangible book value increased 75.3% over 12 quarters since becoming a tech-enabled financial holding company.

• Efficiency ratio improved to 58.4% in Q2 2026 from 60.3% in Q2 2025.

Outlook and guidance

• Guidance is under reevaluation due to evolving revenue mix and strategic shift to holding more loans on balance sheet, with an updated outlook expected in 45–60 days.

• Near-term EPS may be impacted by holding more SBA loans, reducing gain on sale income, but expected to provide more stable long-term net interest income.

• Management reaffirmed focus on technology-driven growth and continued expansion in digital banking and lending.

• No formal forward guidance was provided, but ongoing investments in technology and process to support regulatory compliance and operational efficiency were highlighted.

• Securitization of C&I loans to continue, with Q4 deal size expected between $300M–$400M.