NewtekOne, Inc. (NASDAQ: NEWT) updated its earnings guidance for 2026 and 2027, lowering its expected earnings per share while shifting its revenue strategy toward net interest income.

The Boca Raton, Fla.-based financial holding company now expects 2026 EPS in a range of $1.70 to $1.80 and 2027 EPS in a range of $2.00 to $2.20, according to a press release. The revision reflects a decision to retain more guaranteed portions of Small Business Administration 7(a) loans on its balance sheet rather than selling them shortly after origination.

Previously, the company typically sold guaranteed portions of SBA 7(a) loans within 90 days of origination, recognizing gain-on-sale income. By holding more of these loans, NewtekOne expects net interest income to grow at a faster pace than noninterest income going forward.

The company projects net interest income will rise from 21% of total revenue in 2025 and 22% in the first half of 2026, to 30% or more in the second half of 2026 through 2027.

Barry Sloane, Chairman, CEO, and President, attributed part of the strategic shift to the 2023 acquisition of Newtek Bank, N.A., stating the bank's deposit-gathering capabilities have exceeded initial expectations, allowing the company to fund loans more cost effectively.

Sloane also noted the company plans to explore licensing its lending and deposit-gathering platforms, as well as other strategic options, as part of efforts to increase shareholder value.