Newtek Business (NEWT) AI Stock Analysis

• Market Cap: $290.32M
• Dividend Yield: 7.56%
• Average Volume (3M): 230.91K
• Price to Earnings (P/E): 4.5
• 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: 200,180
• 30 Day Avg. Volume: 230,913
• 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: 7.09
• Enterprise Value/Revenue: 6.04
• Enterprise Value/Gross Profit: 7.01
• Enterprise Value/Ebitda: 16.31
• 1Y Price Target: $14.38
• Price Target Upside: 43.08% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $12.50 ▲(24.38% Upside)

The overall stock score of 58 reflects significant financial challenges, including zero revenue in 2024 and negative cash flow, despite positive debt management. Technical indicators suggest a bearish trend, while the valuation appears attractive with a low P/E ratio and high dividend yield. The earnings call provided some optimism with strong growth metrics, but concerns about non-performing loans and NSBF losses remain.

Newtek Business Business Overview & Revenue Model

Company Description

Newtek Business Services Corp. (NEWT) is a provider of a range of business services and financial solutions to small and medium-sized enterprises (SMEs) in the United States. The company operates primarily in the financial services sector and offers a diverse portfolio of products including business loans, payment processing, cloud computing, and managed technology solutions. NEWT aims to empower small businesses by providing them with the necessary tools and resources to thrive in a competitive market.

How the Company Makes Money

Newtek generates revenue through multiple streams including interest income from business loans, fees from payment processing services, and recurring subscription fees for cloud and managed technology services. The company primarily makes money by underwriting and servicing small business loans, which are often backed by the Small Business Administration (SBA), allowing them to charge interest and fees. Additionally, Newtek earns revenue from their merchant services division through transaction fees and service charges associated with payment processing. Strategic partnerships with financial institutions and technology providers enhance their service offerings and contribute to revenue growth. Overall, Newtek's diverse revenue model allows it to capitalize on various aspects of the business services market.

Newtek Business Financial Statement Overview

Summary

Newtek Business faces significant financial challenges with zero revenue reported in 2024, despite a previous growth trajectory. While debt reduction is a positive sign, the company's profitability and cash flow sustainability are major concerns, particularly with negative free cash flow in recent years. Strengthening revenue generation and improving cash flow are crucial for future stability.

Income Statement

Newtek Business has experienced inconsistent revenue growth, with a significant drop in revenue to zero in 2024 from $253 million in 2023. Historical data shows fluctuating profit margins, with a net profit margin of 18.7% in 2023. The company has struggled to maintain EBIT and EBITDA margins due to operational challenges.

Balance Sheet

The company has improved its debt position, with total debt dropping to zero in 2024, indicating strong debt management. However, the equity ratio decreased from 25.6% in 2023 to 14.4% in 2024, which may pose risks if asset growth does not translate into profitability.

Cash Flow

Newtek Business has faced significant cash flow challenges, as indicated by negative free cash flow in recent years. The operating cash flow to net income ratio was negative in 2023, showing inefficiencies in converting income to cash. The lack of free cash flow in 2024 raises concerns about liquidity and operational funding.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	340.63M	333.53M	253.14M	131.50M	168.28M	74.96M
Gross Profit	293.67M	257.15M	208.83M	105.17M	147.76M	84.88M
EBITDA	126.21M	122.90M	125.70M	65.76M	106.51M	51.95M
Net Income	53.33M	50.85M	47.33M	32.31M	84.14M	33.62M
Balance Sheet
Total Assets	2.13B	2.06B	1.43B	998.90M	1.06B	840.98M
Cash, Cash Equivalents and Short-Term Investments	190.14M	353.15M	153.09M	72.86M	2.40M	2.07M
Total Debt	659.74M	812.78M	651.07M	547.30M	481.11M	460.48M
Total Liabilities	1.82B	1.76B	1.18B	623.54M	652.67M	501.63M
Stockholders Equity	312.18M	296.28M	249.05M	375.36M	403.89M	339.35M
Cash Flow
Free Cash Flow	-378.18M	-153.45M	-89.06M	-62.43M	140.92M	17.75M
Operating Cash Flow	-377.78M	-153.01M	-169.22M	-62.42M	140.92M	17.76M
Investing Cash Flow	-235.36M	-209.05M	-172.24M	-11.00K	-32.34M	-10.00K
Financing Cash Flow	621.56M	560.90M	344.97M	1.18M	-5.49M	465.00K

Newtek Business Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 10.05 is below the 20-day moving average (MA) of 10.48, below the 50-day MA of 11.00, and below the 200-day MA of 11.12, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 36.94 is Neutral, neither overbought nor oversold. The STOCH value of 22.16 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	75 Outperform	$232.54M	7.05	17.13%	13.35%	315.14%	116.85%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SCM	64 Neutral	$336.73M	8.22	8.20%	13.27%	90.34%	-44.25%
MRCC	61 Neutral	$139.96M	―	-2.25%	15.48%	-34.92%	-132.22%
TPVG	59 Neutral	$242.80M	7.14	9.43%	18.80%	206.13%	298.86%
NEWT	58 Neutral	$290.32M	4.53	17.74%	7.56%	6.38%	25.69%
PNNT	48 Neutral	$421.16M	29.96	2.89%	14.88%	-35.46%	-67.15%

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.