Newtek Business Services Reports Robust Growth and Record Securitization

Newtek Business Services has concluded its 2025 fiscal year with a strong performance, marked by double-digit growth in key financial metrics and the successful completion of a landmark securitization deal that attracted significant investor demand.

The company's latest results underscore a year of solid financial expansion. Revenue climbed to $284 million, representing an increase of 10.6% compared to the prior year. Pre-tax earnings saw an even stronger rise, advancing by 16.4% to approximately $80 million. For the full year, diluted earnings per share (EPS) came in at $2.18. An improvement in credit quality was also noted, with the non-performing loan (NPL) ratio declining to 6.9%.

Record-Breaking Deal and Operational Momentum

A pivotal achievement for the financial services firm occurred in mid-January with the closing of its largest securitization to date under the Alternative Loan Program (ALP). The $295 million offering of asset-backed notes generated substantial market interest, becoming ten times oversubscribed. The transaction drew participation from 32 institutional buyers, ten of which were new investors for Newtek.

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This financial milestone coincided with continued operational progress. The reduction in the NPL ratio to 6.9% at year-end marked the second consecutive quarter of improvement. The company's deposit business also maintained its positive trajectory, adding 9,000 new accounts in the fourth quarter alone. Over the full year, business deposits grew by $164 million, while consumer deposits surged by $293 million.

Confident Guidance for the Year Ahead

Looking forward to the 2026 fiscal period, management has issued an optimistic outlook. The company is targeting a diluted EPS range of $2.15 to $2.55. With a projected midpoint of $2.35, this guidance suggests Newtek is positioned to surpass its previous year's earnings.

This confidence is rooted in ambitious lending targets. The company aims to originate $1 billion in SBA 7(a) loans and a further $500 million under its ALP segment in 2026. Additionally, Newtek anticipates net portfolio growth across its commercial and industrial lending as well as commercial real estate portfolios, signaling expectations for sustained business momentum.