Newtek Business Services ( (NEWT) ) has released its Q2 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, offers a wide 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 second quarter of 2025, NewtekOne reported a significant increase in earnings per share, with basic and diluted EPS at $0.53 and $0.52, respectively, marking a year-over-year increase of over 20%. The company also saw a rise in total revenue, reaching $70.2 million, a 15% increase from the previous year, and a notable improvement in net income before taxes, which grew by 27% year-over-year.
Key financial metrics highlighted in the report include a 12.9% increase in book value per common share and a 21.5% rise in tangible book value per common share. The company also reported a 35.5% year-over-year increase in pre-provision net revenue and an improvement in the efficiency ratio, which dropped to 60.3% from 66.3% the previous year. Additionally, NewtekOne’s return on average assets was 2.50%, and return on average tangible common equity was 19.4%, indicating strong profitability.
The company also made strategic moves in its lending operations, with SBA 7(a) loan originations amounting to $205.6 million and the successful securitization of $184 million backed by ALP loans. NewtekOne’s digital banking strategy continues to yield results, with a 19% increase in commercial deposits and a reduction in the cost of deposits, contributing to an expanded net interest margin.
Looking ahead, NewtekOne’s management remains optimistic about future growth, maintaining its EPS guidance range for 2025 and highlighting the potential for further expansion in its business model. The company plans to leverage technology and artificial intelligence to enhance its services and operational efficiency, positioning itself as a forward-thinking provider of business and financial solutions.