Newtek Business (NEWT) AI Stock Analysis

• Market Cap: $331.63M
• Dividend Yield: 6.55%
• Average Volume (3M): 231.22K
• Price to Earnings (P/E): 5.2
• Beta (1Y): 1.19
• 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: 274,377
• 30 Day Avg. Volume: 231,215
• 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: 6.21
• Enterprise Value/Revenue: 5.68
• Enterprise Value/Gross Profit: 9.00
• Enterprise Value/Ebitda: 25.73
• 1Y Price Target: $15.25
• Price Target Upside: 32.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 2.2
• Revenue Forecast (FY): $291.00M

• Rating: 72 Outperform
• Price Target: $12.50 ▲(8.89% Upside)

NewtekOne's stock is supported by strong valuation metrics and positive corporate events, which enhance its financial flexibility and strategic positioning. However, financial performance challenges, particularly in cash flow and leverage, temper the overall score. The technical analysis suggests bullish momentum, but caution is advised due to potential overbought conditions.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market penetration and product adoption, supporting long-term business expansion.

Strategic Securitization

The large securitization enhances liquidity and capital efficiency, supporting growth and financial stability.

Technology-Driven Banking

Emphasizing technology in banking operations can reduce costs and improve customer experience, driving long-term competitiveness.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting long-term financial health.

Negative Cash Flows

Negative cash flows suggest inefficiencies in cash generation, which may hinder operational stability and growth.

High Non-Performing Loans

High NPL levels can strain financial resources and increase risk, affecting long-term profitability and stability.

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: 11.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 11.48 is above the 20-day moving average (MA) of 11.39, above the 50-day MA of 10.67, and above the 200-day MA of 10.82, indicating a bullish trend. The MACD of 0.31 indicates Positive momentum. The RSI at 56.57 is Neutral, neither overbought nor oversold. The STOCH value of 11.60 is Positive, 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
LIEN	75 Outperform	$242.13M	7.34	17.13%	13.03%	315.14%	116.85%
NEWT	72 Outperform	$331.63M	5.17	17.74%	6.55%	6.38%	25.69%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SCM	64 Neutral	$363.87M	11.54	8.20%	12.83%	90.34%	-44.25%
MRCC	64 Neutral	$134.33M	-32.06	-2.25%	14.03%	-34.92%	-132.22%
PNNT	59 Neutral	$387.21M	11.83	6.83%	16.61%	-3.09%	200.66%
TPVG	59 Neutral	$255.33M	7.51	9.43%	17.28%	206.13%	298.86%

Newtek Business Corporate Events

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.

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.

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.

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.

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.