Newtek Business (NEWT)
NASDAQ:NEWT
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Newtek Business
(NASDAQ:NEWT)
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Rating:63Neutral
Price Target:
$13.50
â–²(3.05% Upside)
Action:Reiterated
Date:05/09/26
NEWT’s score is most constrained by financial risk from very negative TTM cash flow and a sharp rise in leverage, despite strong reported profitability. Offsetting this, technicals remain in an uptrend and valuation is compelling (low P/E and high dividend yield), while the latest earnings call was broadly positive with reaffirmed guidance but noted near-term NIM and credit headwinds.
Positive Factors
Strong reported profitability and margins
Sustained high net and operating margins indicate the business earns robust spreads and runs efficient operations relative to peers. Over 2–6 months this supports reinvestment capacity, dividend coverage and resilience to cyclical credit stress, underpinning longer-term return generation.
Negative Factors
Very high leverage relative to equity
A ~6x debt-to-equity ratio materially increases balance-sheet risk and reduces flexibility to absorb shocks. Over the medium term higher leverage elevates refinancing needs, raises covenant and liquidity sensitivity, and magnifies earnings volatility when credit or funding costs rise.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong reported profitability and margins
Sustained high net and operating margins indicate the business earns robust spreads and runs efficient operations relative to peers. Over 2–6 months this supports reinvestment capacity, dividend coverage and resilience to cyclical credit stress, underpinning longer-term return generation.
Read all positive factors
Newtek Business (NEWT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$365.93M
Dividend Yield6.55%
Average Volume (3M)231.73K
Price to Earnings (P/E)6.4
Beta (1Y)1.46
Revenue Growth20.30%
EPS Growth19.12%
CountryUS
Employees591
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.42
Shares Outstanding28,858,921
10 Day Avg. Volume227,480
30 Day Avg. Volume231,730
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 Cap6.49
Enterprise Value/Revenue7.16
Enterprise Value/Gross Profit10.15
Enterprise Value/Ebitda18.19
Forecast
1Y Price Target
$13.50Price Target Upside3.05% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)2.3
Revenue Forecast (FY)$328.26M
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:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive outlook driven by strong loan originations, rapid deposit growth, technological advantages (real-time payments and AI-enabled underwriting), improving credit metrics, robust capital ratios, and high tangible book value growth. Near-term headwinds include NIM compression from large deposit inflows and cash balances, timing-related yield pressure from securitizations, and rising net charge-offs as the portfolio seasons. Management expects many of the timing and liquidity pressures to normalize and reiterated confidence in 2026 guidance and longer-term growth, resulting in an overall favorable tone.Positive Updates
Earnings Beat and Massive YoY EPS Growth
Reported EPS of $0.43, beating Street consensus by ~$0.01 and within guidance range ($0.37–$0.47). EPS reflected a 1,923% increase versus Q1 2025. Management reaffirmed 2026 guidance (midpoint $2.35) and set 2027 midpoint at $2.60.
Negative Updates
Quarterly NIM Compression and Large Idle Cash Balances
Net interest margin compressed quarter-over-quarter due to a shift in earning-asset mix following exceptional deposit growth and sizable cash balances parked at the Fed (management cited approximately $383M), which drags interest income near-term.
Read all updates
Q1-2026 Updates
Positive
Negative
Earnings Beat and Massive YoY EPS Growth
Reported EPS of $0.43, beating Street consensus by ~$0.01 and within guidance range ($0.37–$0.47). EPS reflected a 1,923% increase versus Q1 2025. Management reaffirmed 2026 guidance (midpoint $2.35) and set 2027 midpoint at $2.60.
Read all positive updates
Company Guidance
Management reaffirmed 2026 EPS guidance (midpoint $2.35) and provided an early 2027 midpoint of $2.60 after reporting Q1 EPS of $0.43 (beat ≈$0.01; within Q1 guidance $0.37–$0.47; +1,923% YoY), and reiterated origination guidance for 2026; tangible book was $11.84 and book value $12.35 at quarter end (targeting roughly $13.50 tangible book by year‑end), consolidated assets ≈$2.9B with the bank holding just over $2.1B in loans and >$2.0B in deposits (37k deposit accounts, deposits up from $142M to ~$1.9B since acquisition); origination momentum included March loan originations of $391M (March vs prior year) and C&I LA originations of $85.7M (vs $68.5M year ago), held‑for‑investment loans +≈10% in Q1, blended loan yields ~7.25%, ROA ~1.96% and ROTCE approaching 15%, bank efficiency ~40%, operating expenses +7.5% YoY on ~35% asset growth, capital ratios healthy (leverage ~13.1% holdco, CET1 >15.5%, Tier 1 >18%, total ≈19.5%), Q1 net gain on SBA sales ≈$26.7M, and management expects a potential C&I LA securitization later in the year with a target collateral pool of $400–$500M.Newtek Business Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
40
Negative
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 331.88M | 322.17M | 318.85M | 252.82M | 131.50M | 168.28M |
| Gross Profit | 233.96M | 242.57M | 211.52M | 173.38M | 105.17M | 147.76M |
| EBITDA | 130.57M | 137.46M | 70.48M | 48.26M | 39.01M | 85.77M |
| Net Income | 64.55M | 60.51M | 50.85M | 47.33M | 32.31M | 84.14M |
Balance Sheet | ||||||
| Total Assets | 2.89B | 2.74B | 2.06B | 1.43B | 998.90M | 1.06B |
| Cash, Cash Equivalents and Short-Term Investments | 403.02M | 283.81M | 353.15M | 154.53M | 53.69M | 2.40M |
| Total Debt | 2.41B | 822.76M | 714.54M | 651.07M | 547.30M | 481.11M |
| Total Liabilities | 2.48B | 2.35B | 1.76B | 1.18B | 623.54M | 652.67M |
| Stockholders Equity | 404.69M | 397.57M | 296.28M | 249.05M | 375.36M | 403.89M |
Cash Flow | ||||||
| Free Cash Flow | -434.81M | 55.87M | -153.45M | -169.68M | -62.43M | 140.92M |
| Operating Cash Flow | -434.65M | 55.98M | -153.01M | -169.22M | -62.42M | 140.92M |
| Investing Cash Flow | -592.65M | -880.51M | -209.05M | -172.24M | -11.00K | 0.00 |
| Financing Cash Flow | 1.14B | 753.45M | 560.90M | 344.97M | 1.18M | -5.49M |
Newtek Business Technical Analysis
Positive
13.10
Price Trends
12.06
Positive
12.05
Positive
11.46
Positive
Market Momentum
0.27
Negative
69.98
Neutral
91.60
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 13.1 is above the 20-day moving average (MA) of 11.63, above the 50-day MA of 12.06, and above the 200-day MA of 11.46, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 69.98 is Neutral, neither overbought nor oversold. The STOCH value of 91.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $221.36M | 6.24 | 0.04% | 13.03% | 92.11% | 73.34% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $365.93M | 6.37 | 17.20% | 6.55% | 20.30% | 19.12% | |
53 Neutral | $262.55M | 40.25 | 7.23% | 12.83% | 6.21% | -42.00% | |
50 Neutral | $267.06M | -30.83 | 0.01% | 16.61% | 122.81% | 43.00% | |
49 Neutral | $237.50M | 8.18 | -3.39% | 17.28% | 18.91% | 14.29% |
* Financial Sector Average
NEWT
Newtek Business
12.68
2.13
20.16%
PNNT
Pennantpark Investment
4.09
-1.75
-29.99%
SCM
Stellus Capital
9.07
-2.94
-24.46%
TPVG
TriplePoint Venture Growth
5.85
-0.08
-1.38%
LIEN
Chicago Atlantic BDC
9.70
0.74
8.22%
Newtek Business Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Newtek Business Secures New $20 Million Term Loan
Positive
Apr 29, 2026
On April 28, 2026, NewtekOne subsidiary Newtek Business Services Holdco 6, Inc. and its wholly owned unit NBL SPV, LLC entered into a term loan agreement with D2 Asset Based Credit Partners for a $20 million facility, which can be upsized by an ad...
Business Operations and StrategyExecutive/Board Changes
Newtek Business Extends Executive Employment Agreements for Stability
Positive
Apr 3, 2026
On April 1, 2026, NewtekOne, Inc. renewed for an additional year the employment agreements of Chief Executive Officer and President Barry Sloane, Chief Legal Officer and Corporate Secretary Michael A. Schwartz, and Chief Financial Officer and Exec...
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...
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.