Newtek Business (NEWT)
NASDAQ:NEWT
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Newtek Business
(NASDAQ:NEWT)
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Rating:61Neutral
Price Target:
$12.00
â–²(8.40% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Newtek Business (NEWT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$319.16M
Dividend Yield6.55%
Average Volume (3M)202.92K
Price to Earnings (P/E)4.7
Beta (1Y)1.36
Revenue Growth6.38%
EPS Growth25.69%
CountryUS
Employees591
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.61
Shares Outstanding28,831,491
10 Day Avg. Volume255,535
30 Day Avg. Volume202,922
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)0.72
Price to Sales (P/S)0.89
P/FCF Ratio5.11
Enterprise Value/Market Cap2.55
Enterprise Value/Revenue2.37
Enterprise Value/Gross Profit3.66
Enterprise Value/Ebitda8.46
Forecast
1Y Price Target
$17.67Price Target Upside59.59% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)2.32
Revenue Forecast (FY)$332.09M
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 compa...
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 loa...
Newtek Business Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operational and financial trajectory: revenue, pre-tax income, EPS, tangible book value, deposit growth and operating efficiency all improved materially, and the company completed an oversubscribed ALP securitization reflecting strong investor demand. Key nonbank lines (payments, insurance, payroll) are contributing and expected to grow. The primary negatives are legacy NSBF portfolio losses and stressed vintages (2021–2023) that continue to weigh on results, elevated NPLs/charge-offs (though trending down), and near-term SBA/regulatory headwinds. On balance, the company highlighted substantial progress and momentum while acknowledging remaining legacy credit and regulatory challenges.Positive Updates
Revenue and Pre-Tax Income Growth
Total revenue of $284 million in 2025, up 10.6% vs. 2024 ($257M). Net income before taxes of approximately $80 million for 2025, up 16.4% year-over-year.
Negative Updates
Ongoing Legacy NSBF Losses and Portfolio Stress
Legacy Newtek Small Business Finance (NSBF) remains a material headwind: an estimated ~$20 million loss in 2025 (down from $28.7M in 2024) but still meaningful to earnings. Remaining securitization notes tied to legacy portfolios total ~$127 million and continue to capture cash flows.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue and Pre-Tax Income Growth
Total revenue of $284 million in 2025, up 10.6% vs. 2024 ($257M). Net income before taxes of approximately $80 million for 2025, up 16.4% year-over-year.
Read all positive updates
Company Guidance
The company guided 2026 diluted EPS to a $2.15–$2.55 range (midpoint $2.35) versus $2.18 in 2025, backed by targeted originations of $1.0B in SBA 7(a), $500M in ALP/long‑amortizing C&I, $175M in SBA 504 and $150M of net growth in combined C&I/CRE, plus a Q1 NALP 2026‑1 securitization and an expected second securitization in Q4; ALP economics remain strong (Jan deal 10x oversubscribed, 38 subscribers/32 purchasers with 10 new buyers; ALP nonperforming loans $27.6M on a $694M current balance of ~$820–830M originations; ~$6M total charge‑offs; Wtd avg LTV 48%; DSCR 3.3; origination spread ~950 bps with net spread ≈565 bps and 5%/3% prepay protection). Supporting metrics include HoldCo assets $2.425B and bank assets ~$1.415B, tangible book value $12.19, HoldCo efficiency ratio improved to 58.3% (from 63.2%) with assets up 33%, bank efficiency ~47%, HoldCo ROAA ~2.78%, bank NIM ~5.3–5.4%, cost of deposits down ~16 bps sequentially, ACL coverage just over 5%, 9,000 new depository accounts (34,000 active), business deposits +$34M Q/$164M Y, consumer deposits $167M Q/$293M Y, NSBF loss expected ~ $20M in 2025 and to continue declining in 2026, and nonbank contributions like Payments adj. EBITDA forecasted at $17.9M and Insurance pretax ~$1.06M for 2026.Newtek Business Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
34
Negative
Cash Flow
22
Negative
| 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 | 822.76M | 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 | 55.87M | -153.45M | -169.68M | -62.43M | 140.92M |
| Operating Cash Flow | 55.98M | -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
Negative
11.07
Price Trends
12.62
Negative
11.75
Negative
11.34
Negative
Market Momentum
-0.38
Positive
34.70
Neutral
12.46
Positive
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 11.07 is below the 20-day moving average (MA) of 11.68, below the 50-day MA of 12.62, and below the 200-day MA of 11.34, indicating a bearish trend. The MACD of -0.38 indicates Positive momentum. The RSI at 34.70 is Neutral, neither overbought nor oversold. The STOCH value of 12.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NEWT.
Newtek Business Risk Analysis
Newtek Business disclosed 67 risk factors in its most recent earnings report. Newtek Business reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Our development and use of AI presents risks that could adversely impact our business, financial condition and results of operations. Q4, 2025
Newtek Business Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $219.53M | 7.08 | 0.04% | 13.03% | 315.14% | 116.85% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
61 Neutral | $319.16M | 4.72 | 17.30% | 6.55% | 6.38% | 25.69% | |
59 Neutral | $294.49M | 10.64 | 5.42% | 16.61% | -3.09% | 200.66% | |
59 Neutral | $100.53M | -13.03 | -2.90% | 14.03% | -34.92% | -132.22% | |
55 Neutral | $263.71M | 13.30 | 0.03% | 12.83% | 90.34% | -44.25% | |
52 Neutral | $187.07M | 8.14 | 14.02% | 17.28% | 206.13% | 298.86% |
* Financial Sector Average
NEWT
Newtek Business
10.46
-0.44
-4.05%
PNNT
Pennantpark Investment
4.36
-1.69
-27.95%
SCM
Stellus Capital
8.81
-3.82
-30.27%
TPVG
TriplePoint Venture Growth
4.50
-1.53
-25.31%
MRCC
Monroe Capital
4.50
-2.34
-34.17%
LIEN
Chicago Atlantic BDC
9.50
-1.24
-11.55%
Newtek Business Corporate Events
Business Operations and StrategyPrivate Placements and Financing
NewtekOne Establishes ATM Program for Notes and Preferreds
Positive
Mar 18, 2026
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-ra...
Private Placements and Financing
Newtek Business Completes $15 Million Private Note Offering
Positive
Feb 19, 2026
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 pro...
Business Operations and StrategyExecutive/Board Changes
NewtekOne Expands Board, Adds Veteran Banker Director
Positive
Jan 29, 2026
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 ...
Business Operations and StrategyPrivate Placements and Financing
Newtek Business Completes Modest Debt Exchange Offer
Neutral
Jan 26, 2026
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...
Business Operations and StrategyPrivate Placements and Financing
Newtek Business Extends Exchange Offer for 2026 Notes
Positive
Jan 12, 2026
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 a...
Business Operations and StrategyFinancial Disclosures
Newtek Business Hosts 2026 Investor Day, Issues EPS Guidance
Positive
Jan 8, 2026
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 compa...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.