Newtek Business (NEWT) AI Stock Analysis

• Market Cap: $316.65M
• Dividend Yield: 6.09%
• Average Volume (3M): 231.93K
• Price to Earnings (P/E): 6.0
• Beta (1Y): 1.13
• Revenue Growth: 18.36%
• EPS Growth: 17.28%
• Country: US
• Employees: 591
• Sector: Financial
• Sector Strength: 72
• Industry: Asset Management
• EPS (TTM): 0.52
• Shares Outstanding: 26,321,852
• 10 Day Avg. Volume: 191,428
• 30 Day Avg. Volume: 231,926
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 5.81
• Enterprise Value/Revenue: 6.45
• Enterprise Value/Gross Profit: 10.45
• Enterprise Value/Ebitda: 16.46
• 1Y Price Target: $12.75
• Price Target Upside: 2.16% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 69 Neutral
• Price Target: $13.00 ▲(4.17% Upside)

Newtek Business's overall stock score reflects a mix of significant financial challenges and positive growth prospects. The company's strong earnings call performance and attractive valuation are offset by concerns over financial sustainability and cash flow issues. Technical indicators and corporate events provide additional support, but financial performance remains a critical area for improvement.

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 positive, profitability and cash flow sustainability are major concerns, particularly with negative free cash flow.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	318.85M	253.14M	105.17M	147.76M	74.96M
Gross Profit	211.52M	208.83M	74.19M	147.76M	74.96M
EBITDA	70.48M	125.70M	23.24M	106.51M	51.95M
Net Income	50.85M	47.33M	32.31M	84.14M	33.62M
Balance Sheet
Total Assets	2.06B	1.44B	998.90M	1.06B	840.98M
Cash, Cash Equivalents and Short-Term Investments	353.15M	153.09M	72.86M	2.40M	2.07M
Total Debt	714.54M	644.12M	547.30M	481.11M	460.48M
Total Liabilities	1.76B	1.18B	623.54M	652.67M	501.63M
Stockholders Equity	296.28M	249.05M	375.36M	403.89M	339.35M
Cash Flow
Free Cash Flow	-153.45M	-89.06M	-62.43M	140.92M	17.75M
Operating Cash Flow	-153.01M	-88.60M	-62.42M	140.92M	17.76M
Investing Cash Flow	-209.05M	-172.24M	-11.00K	0.00	-10.00K
Financing Cash Flow	560.90M	344.97M	1.18M	-5.49M	465.00K

Newtek Business Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 12.48 is above the 20-day moving average (MA) of 11.74, above the 50-day MA of 11.43, and above the 200-day MA of 11.78, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 66.88 is Neutral, neither overbought nor oversold. The STOCH value of 72.31 is Neutral, 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
SWKH	77 Outperform	$170.55M	10.00	6.58%	―	6.60%	41.37%
LIEN	75 Outperform	$248.06M	10.53	12.44%	11.68%	―	―
NEWT	69 Neutral	$316.65M	6.01	18.20%	6.09%	18.36%	17.28%
Sector *	68 Neutral	$17.56B	11.61	10.34%	3.76%	9.69%	0.41%
SAR	68 Neutral	$359.54M	10.30	9.27%	12.20%	-1.64%	104.07%
WHF	67 Neutral	$197.80M	55.62	1.21%	20.93%	-49.76%	-84.43%
TPVG	59 Neutral	$256.46M	6.17	11.78%	18.66%	377.90%	―

Newtek Business Corporate Events

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.

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.

Newtek Business Shareholders Approve Key Decisions in Meeting

NewtekOne, Inc. held its Annual Meeting of Shareholders on June 13, 2025, where shareholders approved the election of three directors to serve until 2028 and ratified the selection of RSM US LLP as the independent auditors for the fiscal year ending December 31, 2025. Additionally, an advisory vote on executive compensation was conducted, with a majority of shareholders voting in favor.

Newtek Business Expands Equity Distribution Agreement

On June 6, 2025, NewtekOne, Inc. amended its Equity Distribution Agreement, increasing the number of shares from 3,000,000 to 5,000,000 and adding new placement agents. This strategic move aims to enhance the company’s market presence by allowing sales through various methods, including Nasdaq and private transactions.