Newtek Business (NEWT) AI Stock Analysis

• Market Cap: $422.91M
• Dividend Yield: 6.55%
• Average Volume (3M): 277.29K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 1.21
• 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: 356,353
• 30 Day Avg. Volume: 277,286
• 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: 4.87
• Enterprise Value/Revenue: 5.68
• Enterprise Value/Gross Profit: 9.00
• Enterprise Value/Ebitda: 25.73
• 1Y Price Target: $17.00
• Price Target Upside: 16.12% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 2.29
• Revenue Forecast (FY): $327.70M

• Rating: 71 Outperform
• Price Target: $14.00 ▼(-4.37% Downside)

The score is driven primarily by mixed fundamentals: strong margins and growth are offset by high leverage and weak/negative operating and free cash flow. Valuation is a major positive with a very low P/E and high dividend yield, while technicals are supportive but somewhat stretched given the elevated RSI. Earnings call commentary was constructive on guidance and execution, tempered by credit quality and NSBF loss risks.

Positive Factors

Diversified SMB-focused business model

Newtek's multi-product platform (lending, payments, managed tech, insurance) targets SMBs, enabling cross-sell and customer stickiness. That durable business model spreads revenue risk across services, supports recurring income, and helps sustain growth and client retention over quarters.

High gross margin with steady revenue growth

An exceptionally high gross margin indicates scalable, low-cost delivery of core services and pricing power. Coupled with positive revenue growth, this supports long-term profit resilience, funds reinvestment, and provides a cushion against credit losses or cyclical revenue dips over the medium term.

Digital deposit gathering and securitization capability

Ability to grow deposits digitally reduces funding costs and reliance on wholesale markets; paired with repeated ALP securitizations (largest to date) this creates durable, diversified funding sources. That structural funding advantage supports loan growth and balance sheet scalability.

Negative Factors

High financial leverage

A debt-to-equity near 5x materially amplifies earnings volatility and refinancing risk. Elevated leverage constrains strategic flexibility, increases interest expense sensitivity, and makes the firm more vulnerable to credit or funding shocks over a 2–6 month horizon as maturities and market conditions evolve.

Negative operating and free cash flows

Persistent negative operating and free cash flow indicate weak cash conversion despite accounting profits. This forces reliance on external funding, securitizations, or equity issuance to support operations and dividends, limiting the company's ability to deleverage or invest organically over the medium term.

Elevated credit losses and NSBF wind-down

High NPL ratios and sizable NSBF losses are structural credit headwinds that pressure net income and capital through higher provisions. The NSBF wind-down and elevated delinquencies increase earnings volatility and may necessitate higher reserves or capital actions, weighing on medium-term profitability.

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: 14.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 14.64 is above the 20-day moving average (MA) of 12.43, above the 50-day MA of 11.31, and above the 200-day MA of 10.91, indicating a bullish trend. The MACD of 0.85 indicates Negative momentum. The RSI at 87.18 is Negative, neither overbought nor oversold. The STOCH value of 94.92 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
NEWT	71 Outperform	$422.91M	6.59	17.74%	6.55%	6.38%	25.69%
TPVG	69 Neutral	$265.83M	7.81	9.43%	17.28%	206.13%	298.86%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LIEN	64 Neutral	$237.79M	7.20	17.13%	13.03%	315.14%	116.85%
SCM	60 Neutral	$383.26M	12.16	8.20%	12.83%	90.34%	-44.25%
PNNT	57 Neutral	$394.39M	12.05	6.83%	16.61%	-3.09%	200.66%
MRCC	55 Neutral	$145.38M	-34.69	-2.25%	14.03%	-34.92%	-132.22%

Newtek Business Corporate Events

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.

NewtekOne Announces Largest Securitization to Date

On December 1, 2025, NewtekOne, Inc. announced plans for a significant securitization and sale of rated notes backed by alternative loan program loans, marking its largest securitization to date. The company also reported repurchasing over 100,000 shares of its common stock and expressed confidence in meeting its earnings per share guidance for 2025. The announcement highlighted NewtekOne’s transition to a technology-oriented bank and its unique position in the market as a digital bank without traditional branches, aiming to provide comprehensive business and financial solutions.

The most recent analyst rating on (NEWT) stock is a Hold with a $11.50 price target. To see the full list of analyst forecasts on Newtek Business stock, see the NEWT Stock Forecast page.

NewtekOne Announces Exchange Offer for Senior Notes

On December 1, 2025, NewtekOne announced an offer to exchange its outstanding 5.50% Notes due 2026 for newly issued 8.50% Fixed Rate Senior Notes due 2031. This exchange offer aims to provide existing note holders an opportunity to continue holding NewtekOne senior notes beyond the approaching maturity of the old notes. The new notes will mature on February 1, 2031, and the exchange offer will expire on January 9, 2026, unless extended or terminated earlier. The initiative reflects NewtekOne’s strategy to manage its debt obligations and maintain investor engagement.

The most recent analyst rating on (NEWT) stock is a Hold with a $11.50 price target. To see the full list of analyst forecasts on Newtek Business stock, see the NEWT Stock Forecast page.

NewtekOne Extends Share Repurchase Program by One Year

On November 7, 2025, NewtekOne’s Board of Directors approved a twelve-month extension of their share repurchase program, initially approved on November 1, 2024. This program allows the company to buy back up to 1,000,000 shares of its common stock, with the timing and amount of repurchases determined by market conditions and other factors, although the company is not obligated to repurchase any shares.

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.