Want to see NEWT full AI Analyst Report?
Top Page
Newtek Business
(NASDAQ:NEWT)
Select Model
Select Model
Rating:63Neutral
Price Target:
$12.00
â–¼(-2.68% Downside)
Action:Reiterated
Date:10/22/26
NEWT scores as moderately attractive primarily due to strong current profitability and very compelling valuation (low P/E and high yield), offset by elevated balance-sheet and cash-flow risk (higher leverage and deeply negative TTM cash generation). Technicals are neutral-to-weak, and the earnings call supports a longer-term earnings-quality improvement story but with near-term EPS uncertainty and some credit watchpoints.
Positive Factors
Recurring Net Interest Income Growth
The sharp increase in bank net interest income supports a more recurring earnings base as lending and C&I activity move into the bank. Over time, this mix shift can reduce reliance on loan-sale income and make profitability more closely tied to customer relationships, deposits, and loan balances.
Negative Factors
Sharp Leverage Increase
The sharp rise in debt relative to equity increases sensitivity to earnings volatility, asset-quality deterioration, and tighter credit conditions. Higher leverage also reduces financial flexibility, making it more important for Newtek to maintain stable funding, manage portfolio risk, and preserve sufficient capital as the balance sheet expands.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Net Interest Income Growth
The sharp increase in bank net interest income supports a more recurring earnings base as lending and C&I activity move into the bank. Over time, this mix shift can reduce reliance on loan-sale income and make profitability more closely tied to customer relationships, deposits, and loan balances.
Read all positive factors
Newtek Business Key Performance Indicators (KPIs)
Newtek Business (NEWT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$323.22M
Dividend Yield6.8%
Average Volume (3M)233.60K
Price to Earnings (P/E)4.7
Beta (1Y)1.33
Revenue Growth8.04%
EPS Growth10.59%
CountryUS
Employees572
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.37
Shares Outstanding28,884,731
10 Day Avg. Volume216,667
30 Day Avg. Volume233,605
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 Cap8.62
Enterprise Value/Revenue8.22
Enterprise Value/Gross Profit10.71
Enterprise Value/Ebitda17.16
Forecast
1Y Price Target
$17.00Price Target Upside37.88% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)1.89
Revenue Forecast (FY)$304.27M
Newtek Business Business Overview & Revenue Model
Company Description
NewtekOne, Inc. operates as a financial holding firm, specializing in delivering a comprehensive suite of business and financial solutions. Its diverse portfolio encompasses several key brands, including Newtek Bank, Newtek Lending, Newtek Payment...
How the Company Makes Money
Newtek’s earnings are primarily generated through a combination of (1) banking and lending activities and (2) fee-based business services sold to business customers.
1) Banking and lending (interest income and loan-related fees)
- Net interest in...
Newtek Business Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational progress: rapid deposit and asset growth, a sizable increase in bank net interest income (~+54% YoY), substantial tangible book value appreciation (~+75% over 12 quarters), improving securitization over‑collateralization, and conservative CECL reserving focused on unguaranteed SBA loans. Offsetting items include short‑term earnings/guidance uncertainty from the deliberate strategy to hold more guaranteed SBA portions (reducing gain‑on‑sale income), a YoY decline in PPNR as a percent of assets (5.25% -> 4.22%), some early portfolio delinquencies and an isolated bankruptcy exposure (Simad). Management expects many of the changes (shift to more NII, securitizations, normalization of other income) to be beneficial over time, and liquidity/capital metrics remain solid.Positive Updates
Strong Bank Net Interest Income Growth
Net interest income at the bank increased from $16.2M in Q2 2025 to $25.0M in Q2 2026 (+$8.8M, ~+54%), reflecting the strategic shift to generate more recurring NII as lending and C&I LA activity are moved into the bank.
Negative Updates
Near‑Term Guidance Uncertainty and EPS Impact
Management is re‑evaluating guidance after electing to hold more guaranteed portions of SBA loans on the balance sheet. Holding more loans is expected to reduce near‑term gain‑on‑sale revenue and may depress headline EPS in upcoming quarters relative to prior guidance (previous hinted Q4 EPS range ~$0.79–$0.89).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Bank Net Interest Income Growth
Net interest income at the bank increased from $16.2M in Q2 2025 to $25.0M in Q2 2026 (+$8.8M, ~+54%), reflecting the strategic shift to generate more recurring NII as lending and C&I LA activity are moved into the bank.
Read all positive updates
Company Guidance
The company said it is shifting mix toward holding more guaranteed SBA loans and booking more C&I long‑am loans in the bank — a move they expect will reduce near‑term gain‑on‑sale revenue and could pressure headline EPS over the next couple of quarters (historical Q2 EPS was $0.48 basic/$0.47 diluted and prior Q4 guidance had been ~$0.79–$0.89) while producing a more stable, higher net interest income profile (bank NII grew from $16.2M in Q2 2025 to $25.0M in Q2 2026); management will revisit formal guidance in roughly a 45–60 day window, plans another securitization of roughly $300M–$400M, and expects the longer‑term benefit from higher recurring NII as it moves activity into the bank (PPNR fell year‑over‑year from 5.25% to 4.22% of average assets but remains well above the industry <2%). Key balance‑sheet and credit metrics cited in support of the strategy included asset growth of 50% with expenses up only 3.6%, tangible book value growth of 75.3% over 12 quarters, deposits up from $142M to $2.2B in 14 quarters (non‑affiliate deposits +$15M this quarter, core consumer deposits +$297M this quarter; ~40,000 accounts, ~81% insured, L/D ≈90%), securitization over‑collateralization increases (2026‑1 OC +$11M from a $47M start; 2025‑1 OC up to $45M from $31.6M; 2024 OC +~$14M), and reserve coverage metrics (ACL to unguaranteed loans 5.31%, excluding government guarantees 4.14%, and ACL coverage on unguaranteed 7(a) loans ~8.56%).Newtek Business Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
52
Neutral
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 338.70M | 322.17M | 318.85M | 252.82M | 131.50M | 168.28M |
| Gross Profit | 259.94M | 242.57M | 211.52M | 173.38M | 105.17M | 147.76M |
| EBITDA | 162.30M | 137.46M | 70.48M | 48.26M | 39.01M | 85.77M |
| Net Income | 65.45M | 60.51M | 50.85M | 47.33M | 32.31M | 84.14M |
Balance Sheet | ||||||
| Total Assets | 3.18B | 2.74B | 2.06B | 1.43B | 998.90M | 1.06B |
| Cash, Cash Equivalents and Short-Term Investments | 395.01M | 283.81M | 353.15M | 154.53M | 53.69M | 2.40M |
| Total Debt | 556.84M | 822.76M | 714.54M | 651.07M | 547.30M | 481.11M |
| Total Liabilities | 2.77B | 2.35B | 1.76B | 1.18B | 623.54M | 652.67M |
| Stockholders Equity | 413.37M | 397.57M | 296.28M | 249.05M | 375.36M | 403.89M |
Cash Flow | ||||||
| Free Cash Flow | -564.78M | 55.87M | -153.45M | -169.68M | -62.43M | 140.92M |
| Operating Cash Flow | -564.70M | 55.98M | -153.01M | -169.22M | -62.42M | 140.92M |
| Investing Cash Flow | -874.68M | -880.51M | -209.05M | -172.24M | -11.00K | 0.00 |
| Financing Cash Flow | 1.27B | 753.45M | 560.90M | 344.97M | 1.18M | -5.49M |
Newtek Business Technical Analysis
Neutral
12.33
Price Trends
11.63
Negative
12.80
Negative
12.55
Negative
Market Momentum
-0.14
Negative
57.71
Neutral
87.24
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEWT, the sentiment is Neutral. The current price of 12.33 is above the 20-day moving average (MA) of 11.09, above the 50-day MA of 11.63, and below the 200-day MA of 12.55, indicating a neutral trend. The MACD of -0.14 indicates Negative momentum. The RSI at 57.71 is Neutral, neither overbought nor oversold. The STOCH value of 87.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 0 New Risks
Newtek Business Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $207.67M | 6.55 | 0.04% | 14.95% | 47.16% | 34.42% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $323.22M | 4.72 | 16.34% | 6.80% | 8.04% | 10.59% | |
60 Neutral | $184.13M | 17.86 | <0.01% | 34.04% | 138.32% | -27.91% | |
60 Neutral | $194.52M | 6.57 | 8.05% | 19.70% | 0.37% | -28.29% | |
59 Neutral | $172.20M | 4.27 | 10.97% | 23.64% | 12.61% | -3.62% |
* Financial Sector Average
NEWT
Newtek Business
11.62
1.54
15.32%
PNNT
Pennantpark Investment
2.89
-2.29
-44.24%
SCM
Stellus Capital
6.79
-3.90
-36.49%
TPVG
TriplePoint Venture Growth
4.30
-0.47
-9.80%
LIEN
Chicago Atlantic BDC
9.09
0.11
1.22%
Newtek Business Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Newtek Business Extends Debt Maturities Through Note Exchange
Positive
Oct 21, 2026
On October 19, 2026, NewtekOne, Inc. agreed with holders of $24.0 million of its 8.125% Senior Notes due 2027 to exchange those securities for an equal principal amount of newly issued 8.125% Fixed Rate Senior Notes maturing February 1, 2029. The ...
Executive/Board ChangesRegulatory Filings and Compliance
Newtek Business Updates CFO Employment and Severance Terms
Positive
Aug 14, 2026
On August 16, 2026, NewtekOne, Inc. amended the employment agreement of its Chief Financial Officer, Frank DeMaria, originally dated April 1, 2026. Under the amendment, DeMaria is entitled to a severance payment equal to one times his annual base ...
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.