Newtek Business Services ( (NEWT) ) has released its Q1 earnings. Here is a breakdown of the information Newtek Business Services presented to its investors.
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NewtekOne, Inc., a financial holding company, provides a comprehensive range of business and financial solutions to independent business owners across the United States, including banking, lending, and technology services.
In its latest earnings report for the first quarter of 2025, NewtekOne, Inc. announced a diluted earnings per share (EPS) of $0.35, surpassing its projected range of $0.28 to $0.32. The company highlighted its strong balance sheet growth and above-average profitability despite a challenging economic environment.
Key financial metrics for the quarter included a 13.2% year-over-year increase in book value per common share, reaching $10.73, and a 47% year-over-year rise in pre-provision net revenue (PPNR) to $25.2 million. The efficiency ratio improved to 62.1% from 70.6% in the previous year, and the company reported a return on average assets of 1.81% and a return on average equity of 12.7%. Additionally, NewtekOne’s SBA 7(a) loan originations were approximately $213.4 million, and the company executed a significant ALP loan securitization post-quarter.
Looking ahead, NewtekOne forecasts annual EPS growth of 17% for 2025, with expectations of significant loan and deposit growth. The company remains optimistic about its unique business model and its ability to deliver value to independent business owners nationwide, supported by a seasoned management team and diverse revenue streams.