Newtek Business (NEWT) AI Stock Analysis

• Market Cap: $325.56M
• Dividend Yield: 6.77%
• Average Volume (3M): 205.62K
• Price to Earnings (P/E): 5.1
• Beta (1Y): 1.23
• Revenue Growth: 6.38%
• EPS Growth: 25.69%
• Country: US
• Employees: 591
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.66
• Shares Outstanding: 28,887,295
• 10 Day Avg. Volume: 186,796
• 30 Day Avg. Volume: 205,618
• PEG Ratio: 1.48
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.96
• P/FCF Ratio: -2.08
• Enterprise Value/Market Cap: 6.32
• Enterprise Value/Revenue: 5.68
• Enterprise Value/Gross Profit: 9.00
• Enterprise Value/Ebitda: 25.73
• 1Y Price Target: $14.50
• Price Target Upside: 28.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 2.22
• Revenue Forecast (FY): $295.61M

• Rating: 68 Neutral
• Price Target: $11.50 ▲(2.04% Upside)

Newtek Business Services Corp. demonstrates strong valuation and positive earnings call highlights, including robust financial growth and strategic initiatives. However, financial performance is hindered by high leverage and liquidity issues, and technical indicators suggest a bearish trend. The overall score reflects a balanced view of these factors.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

Deposit Growth

Significant deposit growth without traditional branches demonstrates innovative banking solutions and strengthens financial resilience.

Efficiency Improvement

Improved efficiency ratio reflects better cost management and operational efficiency, supporting sustainable profitability.

Negative Factors

Zero Revenue in 2024

Zero revenue in 2024 raises concerns about business continuity and the effectiveness of revenue-generating strategies.

High Non-Performing Loans

High non-performing loans indicate credit risk and potential financial strain, affecting long-term asset quality and profitability.

NSBF Losses

NSBF losses highlight operational challenges and financial setbacks, impacting overall profitability and strategic focus.

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 generates revenue through several key streams. Primarily, it earns money from business lending by providing loans and credit facilities to SMBs, often charging interest and fees associated with these financial products. Additionally, the company makes money through payment processing services by charging transaction fees for processing credit card and electronic payments. Managed technology services, which include IT support and infrastructure management, also contribute to revenue, as Newtek charges clients for these ongoing services. Furthermore, the company offers insurance services, earning commissions and premiums from policies sold to its clients. Strategic partnerships with financial institutions and technology providers enhance Newtek's capabilities and expand its client base, further supporting its revenue growth.

Newtek Business Financial Statement Overview

Summary

Newtek Business shows strong revenue growth and profitability margins, but faces challenges with high leverage and negative cash flows. The company needs to address its liquidity issues and manage debt levels to ensure long-term financial stability.

Income Statement

Newtek Business shows a solid revenue growth trajectory with a 4.73% increase in TTM, supported by a strong gross profit margin of 81.19%. However, the net profit margin of 17.50% indicates room for improvement in profitability. The EBIT and EBITDA margins are relatively stable, suggesting efficient operational management.

Balance Sheet

The company has a high debt-to-equity ratio of 4.99, which indicates significant leverage and potential risk. However, the return on equity of 18.28% demonstrates effective use of equity to generate profits. The equity ratio is moderate, reflecting a balanced asset structure.

Cash Flow

Newtek Business faces challenges with negative operating and free cash flows, indicating liquidity issues. Despite a positive free cash flow growth rate of 37.39%, the high operating cash flow to net income ratio suggests inefficiencies in cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	362.16M	318.85M	252.82M	131.50M	168.28M	92.84M
Gross Profit	228.82M	211.52M	173.38M	105.17M	147.76M	74.96M
EBITDA	80.00M	70.48M	48.26M	39.01M	85.77M	33.02M
Net Income	59.30M	50.85M	47.33M	32.31M	84.14M	33.62M
Balance Sheet
Total Assets	2.40B	2.06B	1.43B	998.90M	1.06B	840.98M
Cash, Cash Equivalents and Short-Term Investments	210.20M	353.15M	154.53M	53.69M	2.40M	2.07M
Total Debt	750.87M	714.54M	651.07M	547.30M	481.11M	460.48M
Total Liabilities	2.01B	1.76B	1.18B	623.54M	652.67M	501.63M
Stockholders Equity	386.71M	296.28M	249.05M	375.36M	403.89M	339.35M
Cash Flow
Free Cash Flow	-519.59M	-153.45M	-89.06M	-62.43M	140.92M	17.75M
Operating Cash Flow	-519.43M	-153.01M	-169.22M	-62.42M	140.92M	17.76M
Investing Cash Flow	-455.01M	-209.05M	-172.24M	-11.00K	0.00	-10.00K
Financing Cash Flow	826.03M	560.90M	344.97M	1.18M	-5.49M	465.00K

Newtek Business Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEWT, the sentiment is Positive. The current price of 11.27 is above the 20-day moving average (MA) of 10.36, above the 50-day MA of 10.64, and above the 200-day MA of 10.99, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 66.79 is Neutral, neither overbought nor oversold. The STOCH value of 94.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NEWT.

Newtek Business Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LIEN	75 Outperform	$243.72M	7.38	17.13%	12.73%	315.14%	116.85%
NEWT	68 Neutral	$325.56M	5.08	17.74%	6.77%	6.38%	25.69%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SCM	64 Neutral	$361.84M	11.31	8.20%	12.69%	90.34%	-44.25%
TPVG	59 Neutral	$272.70M	8.02	9.43%	16.74%	206.13%	298.86%
PNNT	54 Neutral	$376.76M	11.45	6.83%	16.44%	-3.09%	200.66%
MRCC	54 Neutral	$144.84M	―	-2.25%	14.96%	-34.92%	-132.22%

Newtek Business Corporate Events

NewtekOne, Inc. Reports Strong Q3 2025 Earnings Growth

NewtekOne, Inc. is a financial holding company that provides a variety of business and financial solutions to independent business owners across the United States, operating primarily in the banking and financial services sector.

Newtek Business Secures New Financing with Goldman Sachs

On September 26, 2025, Newtek Merchant Solutions, a subsidiary of NewtekOne, refinanced its debt by repaying the Webster Credit Agreement and entering into a new $90 million term loan and $5 million revolving credit facility with Goldman Sachs Alternatives. This strategic move aims to reduce NewtekOne’s unsecured debt, repurchase shares, and support general corporate purposes, enhancing its financial flexibility and solidifying its relationship with Goldman Sachs as a long-term financing partner.

The most recent analyst rating on (NEWT) stock is a Hold with a $12.50 price target. To see the full list of analyst forecasts on Newtek Business stock, see the NEWT Stock Forecast page.

Newtek Business Boosts Capital with Stock Exchange

On September 16, 2025, NewtekOne, Inc. entered into a Securities Purchase and Exchange Agreement with Patriot Financial Partners, exchanging 20,000 shares of Series A Convertible Preferred Stock and $10 million in cash for 2,307,692 shares of common stock. This transaction, completed as a private placement, is expected to enhance NewtekOne’s capital structure, increasing its common equity tier one capital by $30 million and tier one capital by $78.357 million on a pro forma basis. The exchange reflects Patriot’s confidence in NewtekOne’s business strategy and management, as well as its commitment to remain a long-term shareholder.

The most recent analyst rating on (NEWT) stock is a Hold with a $12.50 price target. To see the full list of analyst forecasts on Newtek Business stock, see the NEWT Stock Forecast page.

Newtek Business Closes $48M Depositary Shares Offering

On August 20, 2025, NewtekOne, Inc. closed an offering of 2,000,000 depositary shares, each representing a 1/40th interest in its Series B Preferred Stock, generating approximately $48.357 million in net proceeds. This move is expected to increase the company’s tier one capital ratio from 16.1% to 19.2% and enhance its financial position, allowing NewtekOne to deleverage its balance sheet and potentially improve its market standing.

The most recent analyst rating on (NEWT) stock is a Hold with a $12.00 price target. To see the full list of analyst forecasts on Newtek Business stock, see the NEWT Stock Forecast page.

Newtek Business Announces New Series B Preferred Stock

NewtekOne, Inc. has announced the establishment of a new series of preferred stock, designated as the 8.500% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B. This move is part of a previously disclosed underwritten public offering of 2,000,000 depositary shares, each representing a 1/40th interest in a share of the Company’s Series B Preferred Stock. The Series B Preferred Stock will rank senior to the Company’s common stock and on a parity with its Series A Convertible Preferred Stock, subject to certain restrictions on dividends and other financial activities.

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.

Newtek Business Underwriting Agreement for Share Issuance

On August 13, 2025, NewtekOne, Inc. entered into an underwriting agreement with Keefe, Bruyette & Woods, Inc. and Raymond James & Associates, Inc. for the issuance and sale of 2,000,000 depositary shares. These shares represent a 1/40th interest in the company’s Series B Preferred Stock, with a liquidation preference of $1,000 per share, potentially impacting the company’s capital structure and market positioning.

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

NewtekOne’s Earnings Call: Growth Amid Challenges

NewtekOne’s recent earnings call painted a picture of robust growth and strategic successes, tempered by ongoing challenges. The company demonstrated strong revenue and deposit growth, alongside a successful alternative loan program, which has bolstered efficiency and profitability metrics. However, issues persist with Newtek Small Business Finance losses and credit provisions, indicating areas that require attention.