NewtekOne, Inc. (NEWT) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

NewtekOne, Inc. (NEWT) Financial Services Profile

NewtekOne, Inc. is a financial holding company providing diverse business and financial solutions, including banking, lending, payments, insurance, payroll, and technology services. The company targets small and medium-sized businesses, differentiating itself through a comprehensive suite of offerings and integrated platform.

What Is the Investment Thesis for NEWT?

NewtekOne, Inc. presents a compelling investment case based on its diversified financial service offerings and focus on the underserved small and medium-sized business (SMB) market. The company's integrated platform provides multiple revenue streams and cross-selling opportunities. With a P/E ratio of 7.3 and a dividend yield of 5.33% as of May 9, 2026, NewtekOne offers potential value. Growth catalysts include expansion of Newtek Bank's services and increased adoption of its payment and technology solutions. However, investors may want to evaluate the risks associated with regulatory changes and competition in the financial services sector.

Based on FMP financials and quantitative analysis

NEWT Key Highlights

Market capitalization of $361M indicates a mid-sized financial services company.

• P/E ratio of 7.3 suggests the company may be undervalued compared to its earnings.
• Profit margin of 19.4% reflects efficient operations and profitability.
• Gross margin of 70.5% indicates a strong ability to manage costs and generate revenue.
• Dividend yield of 5.33% offers an attractive income stream for investors.

Who Are NEWT's Competitors?

NEWT is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are NEWT's Key Strengths?

Diversified revenue streams from multiple business lines.

• Integrated platform offering a comprehensive suite of services.
• Strong focus on the underserved SMB market.
• Experienced management team with a proven track record.

What Are NEWT's Weaknesses?

Reliance on economic conditions affecting SMBs.

• Exposure to regulatory changes in the financial services industry.
• Competition from larger financial institutions and fintech companies.
• Potential credit risks associated with lending activities.

What Could Drive NEWT Stock Higher?

Expansion of Newtek Bank's product offerings and geographic reach.

• Increased adoption of Newtek Payments' digital payment solutions.
• Cross-selling initiatives driving revenue growth across different business lines.

What Are the Key Risks for NEWT?

Financial-distress signal — its Altman Z-Score of 0.55 sits in the distress zone (elevated bankruptcy risk).

• Economic downturns impacting SMBs' ability to repay loans.
• Regulatory changes increasing compliance costs and affecting business operations.
• Competition from larger financial institutions and fintech companies.
• Cybersecurity threats and data breaches compromising customer data.

What Are the Growth Opportunities for NEWT?

• Expansion of Newtek Bank: NewtekOne can leverage its Newtek Bank brand to expand its banking services, including deposit accounts, loans, and other financial products. The market for SMB banking services is substantial, with an estimated market size of $100 billion annually. By offering competitive rates and personalized service, NewtekOne can attract new customers and increase its market share. Timeline: Ongoing.
• Increased Adoption of Payment Solutions: Newtek Payments offers significant growth potential as businesses increasingly adopt digital payment methods. The global digital payments market is projected to reach $10 trillion by 2030. NewtekOne can capitalize on this trend by offering innovative payment solutions and integrating them with its other services. Timeline: Ongoing.
• Cross-Selling Opportunities: NewtekOne's integrated platform allows for cross-selling of its various services, such as lending, insurance, and payroll. By bundling these services, NewtekOne can increase customer retention and generate additional revenue. The potential for cross-selling is significant, with an estimated market size of $50 billion annually. Timeline: Ongoing.
• Strategic Partnerships: NewtekOne can form strategic partnerships with other companies to expand its reach and offer new services. For example, it could partner with technology companies to offer integrated software solutions or with insurance providers to offer specialized insurance products. Strategic partnerships can provide access to new markets and customers. Timeline: Ongoing.
• Technological Innovation: Investing in technological innovation can help NewtekOne improve its efficiency, enhance its customer experience, and develop new products and services. For example, it could develop a mobile app that allows customers to manage their accounts and access its services on the go. Technological innovation is essential for staying competitive in the financial services industry. Timeline: Ongoing.

What Are NEWT's Competitive Advantages?

• Diversified service offerings create a comprehensive solution for SMBs.
• Integrated platform enables cross-selling and customer retention.
• Established brand reputation in the SMB market.
• Proprietary technology platform enhances efficiency and customer experience.

What Does NEWT Do?

Founded in 1998 by Barry Sloane, NewtekOne, Inc. has evolved into a financial holding company focused on providing a comprehensive suite of business and financial solutions. Initially, the company focused on technology and e-commerce solutions for small businesses. Over time, NewtekOne strategically expanded its services to include lending, payment processing, insurance, and payroll services to address the multifaceted needs of its target market. The company operates through its various brands, including Newtek Bank, Newtek Lending, Newtek Payments, Newtek Insurance, Newtek Payroll, and Newtek Technology. Newtek Bank offers a range of banking products and services, while Newtek Lending provides financing solutions tailored to small and medium-sized businesses. Newtek Payments facilitates payment processing services, and Newtek Insurance offers various insurance products. Newtek Payroll provides payroll processing solutions, and Newtek Technology delivers technology-related services. Headquartered in Boca Raton, Florida, NewtekOne, Inc. serves businesses across the United States.

What Products and Services Does NEWT Offer?

• Provides banking services through Newtek Bank.
• Offers lending solutions tailored to small and medium-sized businesses.
• Facilitates payment processing services through Newtek Payments.
• Provides insurance products through Newtek Insurance.
• Offers payroll processing solutions through Newtek Payroll.
• Delivers technology-related services through Newtek Technology.

How Does NEWT Make Money?

• Generates revenue through interest income from loans.
• Earns fees from payment processing services.
• Receives commissions from insurance products.
• Charges fees for payroll processing services.

What Industry Does NEWT Operate In?

NewtekOne, Inc. operates within the financial services industry, specifically targeting the asset management and business solutions market for small and medium-sized businesses (SMBs). The industry is characterized by increasing demand for integrated financial solutions and technological advancements. Competition includes traditional banks, fintech companies, and other financial service providers. NewtekOne differentiates itself through its comprehensive suite of services and focus on the SMB market, positioning it to capitalize on the growing need for tailored financial solutions.

Who Are NEWT's Key Customers?

• Small and medium-sized businesses (SMBs).
• Entrepreneurs seeking financing solutions.
• Businesses requiring payment processing services.
• Companies needing insurance products.
• Businesses looking for payroll processing solutions.

Company Profile

NewtekOne, Inc. operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Boca Raton, US. The company is led by CEO Barry Scott Sloane. NEWT has traded publicly since 2000.

NewtekOne, Inc. Financial Trajectory

NewtekOne, Inc. (NEWT) reported $95.2M in revenue for Q2 2026, reflecting 29.9% growth compared to the prior quarter. The company recorded net income of $14.6M, with diluted EPS of $0.47. Quarter-over-quarter revenue has been mixed, typical for a small-cap company operating in Financial Services. Across the four most recent quarters, NEWT averaged $0.59 in diluted EPS.

How NewtekOne, Inc. Is Valued

NewtekOne, Inc. carries a market capitalization of $361M, placing it in the small-cap category. Relative to its peer group, NEWT's quantitative score of 33/100 is below the peer average of 72/100.

Return on equity for NewtekOne, Inc. stands at 17.2%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 2.2%, showing how much profit it generates from its asset base. NEWT trades at a trailing price-to-earnings ratio of 7.30, below the Financial Services sector average of ~18x. Its free cash flow yield is -99.5%, a gauge of the cash the business throws off relative to its market value. Its earnings yield is 13.7%, the inverse of the P/E and a quick read on earnings relative to price.

NewtekOne, Inc.'s Piotroski F-Score is 4/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.55 places it in the distress zone, a signal of elevated financial risk.

NewtekOne, Inc. has beaten Wall Street's EPS estimate in 5 of its last 8 reported quarters — more hits than misses. Reported results have landed about 3.7% above estimates on average.

Wall Street analysts project NewtekOne, Inc. revenue of about $321.3M for fiscal 2026, with EPS near $2.36.

Over the past six months, NewtekOne, Inc. insiders filed 15 SEC Form 4 transactions — 0 sales and 15 purchases. On net that is roughly 30K shares acquired (about $413K) — insiders putting money in tends to read as conviction.

NEWT Financials

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NEWT Analyst Consensus

NEWT MoonshotScore

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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