Newtek Business (NEWT) AI Stock Analysis

• Market Cap: $323.78M
• Dividend Yield: 6.55%
• Average Volume (3M): 192.02K
• Price to Earnings (P/E): 4.7
• Beta (1Y): 1.32
• Revenue Growth: 6.38%
• EPS Growth: 25.69%
• Country: US
• Employees: 591
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.61
• Shares Outstanding: 28,831,491
• 10 Day Avg. Volume: 197,059
• 30 Day Avg. Volume: 192,017
• PEG Ratio: 0.22
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.89
• P/FCF Ratio: 2.57K
• Enterprise Value/Market Cap: 6.98
• Enterprise Value/Revenue: 6.56
• Enterprise Value/Gross Profit: 10.16
• Enterprise Value/Ebitda: 23.47
• 1Y Price Target: $17.67
• Price Target Upside: 53.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 2.33
• Revenue Forecast (FY): $332.09M

• Rating: 61 Neutral
• Price Target: $12.00 ▲(4.26% Upside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is held back primarily by balance-sheet leverage and weak/volatile operating cash flow, despite strong profitability. Cheap valuation (low P/E and high yield) and a generally constructive earnings outlook support the score, while bearish technicals and continued credit/legacy portfolio risks limit upside near term.

Positive Factors

Diversified fee and lending model

Newtek’s combined lending and business-services platform creates recurring fee streams and cross-sell synergies. Over the medium term this raises revenue per client, lowers customer acquisition costs, and cushions lending cyclicality by diversifying cash flows across payments, insurance, payroll and technology services.

Strong profitability and tangible book growth

Sustained gross and operating margins and a materially higher tangible book indicate durable earnings power and capital accumulation. This expanded tangible equity provides a structural buffer to absorb credit shocks and supports dividend capacity and future lending growth without immediate dilution.

Proven securitization investor demand

Successful, oversubscribed ALP securitizations demonstrate durable market access for match-funded long‑amortizing C&I exposure. Reliable securitization outlets preserve economics on originations, enable scalable asset growth, and reduce duration/funding mismatch when maintained over multiple issuance cycles.

Negative Factors

High leverage / debt-heavy capital structure

A materially more debt‑heavy capital structure reduces balance‑sheet flexibility and increases sensitivity to rising funding costs. Over the next several quarters this structural leverage elevates refinancing and covenant risk, constrains capital allocation and makes earnings more volatile versus peers with lighter balance sheets.

Weak and volatile operating cash flow

Multi-year weak/volatile operating cash flow limits the company’s ability to self-fund loan originations, pay dividends, or shore up reserves without external financing. This structural cash-generation weakness increases dependence on capital markets and securitizations and amplifies liquidity risk during stress periods.

Legacy NSBF losses and elevated credit stress

Legacy Newtek Small Business Finance vintages and stressed 2021–2023 loans continue to generate losses and require reserves. Even as trends improve, these legacy credit issues and related note structures will pressure earnings and capital until resolved, making credit risk a persistent multi‑quarter headwind.

Newtek Business Business Overview & Revenue Model

Company Description

NewtekOne, Inc. is a financial holding company, which engages in the provision of business and financial solutions. Its brands include Newtek Bank, Newtek Lending, Newtek Payments, Newtek Insurance, Newtek Payroll, and Newtek Technology. The company was founded by Barry Sloane in 1998 and is headquartered in Boca Raton, FL.

How the Company Makes Money

Newtek makes money primarily through (1) interest and fee income from its lending activities and (2) fees generated by its business services platforms. 1) Lending-related income (core BDC economics) - Interest income: Newtek earns interest on loans it originates or acquires to small and medium-sized businesses. This includes interest on held-for-investment loan balances (where applicable). - Origination and servicing fees: The company can earn fees for originating loans and for servicing/administrating loans over time. - Gains on sale / securitization: To the extent it originates loans that are sold into the secondary market or otherwise transferred, Newtek may realize gains (or losses) on sale. Specific program details and the proportion of earnings from this activity are not available in this response and are therefore null. 2) SBA-related lending economics - SBA loan-related fees and premiums: In SBA 7(a) lending, lenders may sell the government-guaranteed portion of a loan at a premium; that premium and certain SBA-related fees can be an important source of non-interest income for SBA-focused lenders. The extent to which this applies to Newtek in a given period, and the exact mix of SBA versus non-SBA earnings, is null. 3) Business services fee income (operating subsidiaries) - Payments/merchant processing: Newtek can earn processing fees and related revenue tied to payment volume handled for business clients. - Technology and cloud/IT services: Revenue can come from recurring subscriptions, usage-based fees, and project/implementation work for IT and hosting-related services. - Insurance: Revenue can include commissions and fees from selling or brokering insurance products. - Payroll/HR: Revenue can include per-employee or per-payroll processing fees and related service charges. 4) Cross-sell and client acquisition flywheel Newtek’s model has historically emphasized cross-selling: lending customers can be introduced to payments, payroll, insurance, and technology services, and vice versa. This can increase revenue per client and lower acquisition costs through shared distribution. 5) Partnerships and distribution Newtek has historically utilized third-party referral sources and channel relationships to source small business clients for both lending and services. The specific named partners and the quantitative contribution of any single partnership are null. Note: Any period-specific revenue breakdowns, margins, or the exact contribution of each line of business require current filings and are not provided here; where specifics were not reliably available, they are noted as null.

Newtek Business Financial Statement Overview

Summary

Strong profitability and earnings power (income statement score 71) are outweighed by a highly leveraged balance sheet (score 34) and weak/volatile cash generation with multi-year negative operating cash flow (cash flow score 22), which increases liquidity and funding-risk sensitivity.

Income Statement

Profitability is strong, with solid gross and operating margins and net margins holding in the high-teens in the most recent annual period. Revenue has grown meaningfully over the multi-year window, but momentum softened recently with a revenue decline in the latest year after modest growth the prior year. Overall, earnings power looks good, but top-line consistency is a watch item.

Balance Sheet

Leverage increased sharply in the latest year: total debt rose materially and the debt-to-equity level moved to a high range, which reduces balance-sheet flexibility. Returns on equity remain healthy, but the capital structure is now much more debt-heavy versus prior years, increasing sensitivity to funding costs and business volatility.

Cash Flow

Cash generation has been volatile and generally weak in recent years. Operating cash flow was deeply negative in 2022–2024 and then only slightly positive in the latest year, while free cash flow growth was sharply negative most recently. Despite reported free cash flow tracking net income closely, the low level and instability of operating cash flow versus earnings is a key risk.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	322.17M	318.85M	252.82M	131.50M	168.28M
Gross Profit	242.57M	211.52M	173.38M	105.17M	147.76M
EBITDA	137.46M	70.48M	48.26M	39.01M	85.77M
Net Income	60.51M	50.85M	47.33M	32.31M	84.14M
Balance Sheet
Total Assets	2.74B	2.06B	1.43B	998.90M	1.06B
Cash, Cash Equivalents and Short-Term Investments	310.29M	353.15M	154.53M	53.69M	2.40M
Total Debt	2.24B	714.54M	651.07M	547.30M	481.11M
Total Liabilities	2.35B	1.76B	1.18B	623.54M	652.67M
Stockholders Equity	397.57M	296.28M	249.05M	375.36M	403.89M
Cash Flow
Free Cash Flow	111.00K	-153.45M	-169.68M	-62.43M	140.92M
Operating Cash Flow	111.00K	-153.01M	-169.22M	-62.42M	140.92M
Investing Cash Flow	-90.50M	-209.05M	-172.24M	-11.00K	0.00
Financing Cash Flow	91.97M	560.90M	344.97M	1.18M	-5.49M

Newtek Business Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEWT, the sentiment is Negative. The current price of 11.51 is below the 20-day moving average (MA) of 12.21, below the 50-day MA of 13.01, and above the 200-day MA of 11.50, indicating a neutral trend. The MACD of -0.35 indicates Positive momentum. The RSI at 34.37 is Neutral, neither overbought nor oversold. The STOCH value of 24.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NEWT.

Newtek Business Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LIEN	73 Outperform	$221.59M	―	0.03%	13.03%	315.14%	116.85%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
NEWT	61 Neutral	$323.78M	4.72	17.30%	6.55%	6.38%	25.69%
PNNT	59 Neutral	$295.14M	10.64	5.42%	16.61%	-3.09%	200.66%
MRCC	59 Neutral	$99.45M	12.10	6.46%	14.03%	-34.92%	-132.22%
SCM	55 Neutral	$265.16M	13.30	0.03%	12.83%	90.34%	-44.25%
TPVG	52 Neutral	$198.81M	8.14	14.02%	17.28%	206.13%	298.86%

Newtek Business Corporate Events

NewtekOne Establishes ATM Program for Notes and Preferreds

On March 13, 2026, NewtekOne entered into a Securities Distribution Agreement with B. Riley Securities, Compass Point Research and Trading, and Roth Capital Partners, allowing the company to offer and sell up to $50 million of its various fixed-rate senior notes due 2029 and 2031 and depositary shares representing interests in preferred stock. Effective as of March 12, 2026, the agreement gives NewtekOne flexible, at-the-market access to debt and preferred equity capital through multiple U.S. trading channels under an existing shelf registration, potentially strengthening its funding options and liquidity profile without committing to a single, large, underwritten transaction.

The most recent analyst rating on (NEWT) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on Newtek Business stock, see the NEWT Stock Forecast page.

Newtek Business Completes $15 Million Private Note Offering

On February 17, 2026, NewtekOne, Inc. completed a $15.0 million private placement of an 8.375% note due March 1, 2033, issued to an institutional accredited investor under a registration exemption, generating approximately $14.9 million in net proceeds for general corporate purposes. The unsecured note, which ranks pari passu with NewtekOne’s other unsecured unsubordinated debt and is subordinated to secured and subsidiary obligations, pays semiannual interest starting August 1, 2026, and may be redeemed early by the company at a make-whole price before January 1, 2033, or at par plus accrued interest thereafter.

The most recent analyst rating on (NEWT) stock is a Hold with a $14.00 price target. To see the full list of analyst forecasts on Newtek Business stock, see the NEWT Stock Forecast page.

NewtekOne Expands Board, Adds Veteran Banker Director

On January 27, 2026, NewtekOne, Inc. expanded its Board of Directors from seven to eight members and elected veteran banker Thomas Cestare as a Class I director, with a term running until the 2027 annual shareholders’ meeting, and appointed him to the Audit Committee. Cestare, who currently sits on the board of Newtek Bank, N.A. and serves as partner and chief operating officer at Patriot Financial Partners, brings more than 35 years of banking and financial leadership experience, including senior finance roles at Beneficial Bancorp and Sovereign Bancorp as well as partnership experience at KPMG, and his appointment comes in the context of Patriot’s 2025 exchange of preferred stock and cash for NewtekOne common shares, a transaction that may be deemed a related-party deal, underscoring his close ties to a significant shareholder and the company’s emphasis on bolstering board-level financial and risk oversight.

The most recent analyst rating on (NEWT) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Newtek Business stock, see the NEWT Stock Forecast page.

Newtek Business Completes Modest Debt Exchange Offer

On January 23, 2026, NewtekOne, Inc. announced that its exchange offer to swap any and all of its 5.50% Notes due 2026 for newly issued 8.50% Fixed Rate Senior Notes due 2031 expired that day at 5:00 p.m. Eastern, with $7,877,200 of the 2026 notes—about 8.29% of the $95 million outstanding—validly tendered and not withdrawn. The company waived its minimum condition that at least 10% of the old notes be exchanged, accepted all notes tendered, and expects to settle the transaction on January 28, 2026, after which approximately $87,122,800 of the 2026 notes will remain outstanding and are expected to be repaid at their February 1, 2026 maturity, indicating a relatively limited uptake of the exchange offer and a modest extension of a portion of the company’s debt profile.

The most recent analyst rating on (NEWT) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Newtek Business stock, see the NEWT Stock Forecast page.

Newtek Business Extends Exchange Offer for 2026 Notes

On January 12, 2026, NewtekOne, Inc. announced that it had extended the expiration date of its previously launched exchange offer for its outstanding 5.50% Notes due 2026 to January 23, 2026, allowing holders more time to swap the 2026 notes for an equal principal amount of newly issued 8.50% Fixed Rate Senior Notes due 2031. The exchange offer, now set to expire at 5:00 p.m. Eastern time on January 23 unless further extended or terminated, is expected to settle on January 28, 2026, after the January 15, 2026 record date for the final interest payment on the old notes, meaning all holders of the old notes as of that record date will receive the final interest payment prior to their February 1, 2026 maturity, while the first interest payment on the new notes will be adjusted to reflect interest already paid, a structure that aims to smooth the refinancing of the 2026 maturity and potentially strengthen NewtekOne’s longer-term funding profile.

The most recent analyst rating on (NEWT) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on Newtek Business stock, see the NEWT Stock Forecast page.

Newtek Business Hosts 2026 Investor Day, Issues EPS Guidance

On January 8, 2026, NewtekOne, Inc. held its 2026 Analyst and Investor Day at its Boca Raton, Florida headquarters, marking three years since its acquisition of Newtek Bank, N.A. and its transition into a technology-enabled financial holding company with depository capabilities. The company posted its “Investor Day 2026” presentation online and webcast the event, which featured senior executives discussing technological advances in deposit gathering, lending, and payment capabilities, as well as the role of securitizations in its business model, and in conjunction with the event NewtekOne issued 2026 earnings-per-share guidance in the range of $2.15 to $2.55, providing investors with a financial benchmark for the coming year and underscoring its strategic positioning at the intersection of traditional banking and fintech-style services for small and independent businesses.

The most recent analyst rating on (NEWT) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on Newtek Business stock, see the NEWT Stock Forecast page.