NewtekOne (NASDAQ:NEWT) used its Investor Day event in Boca Raton to walk investors through its business model, technology platform, and a 2026 forecast, with management emphasizing the company’s shift into a technology-enabled financial holding company with an OCC-chartered bank at its core.
Investor Relations head Bryce Rowe opened the event by outlining the agenda, which included a financial presentation and 2026 outlook, a review of the “Newtek Advantage” platform, discussion of Newtek’s technology and AI usage, and a deep dive into the company’s Alternative Loan Program (ALP) securitizations. Presenters included Chairman, CEO and President Barry Sloane, CFO Frank DeMaria, Chief Strategy Officer Andrew Kaplan, and Newtek Bank President Peter Downs.
Management describes Newtek’s mission and multi-vertical model
He said Newtek supports approximately 80,000 U.S. businesses with one or more services and stressed the importance of cost-effective customer acquisition through proprietary and patented technology, including a system called NewTracker and a patent-pending “Newtek Advantage.” Sloane also argued the company is “so much more than an SBA lender,” positioning Newtek as an integrated platform built around the daily movement of money for small and medium-sized businesses.
Financial trends and a 2026 forecast
DeMaria said Newtek’s transition to a financial holding company has produced “consistently improving fundamental financial trends,” including revenue and asset growth and capital levels above regulatory thresholds. He highlighted tangible book value per common share growth and dividend payments, stating book value per share was up 45% and tangible book value per share was up 62% in less than three years. He said Newtek has paid $2.05 per common share in dividends over that period, excluding a $0.19 payment made “last week.”
DeMaria also pointed to revenue mix as a differentiator, stating non-interest income comprises roughly 80% of revenue, unlike many banks that rely primarily on net interest income. He noted the company’s efficiency ratio has improved from above 80% shortly after the bank acquisition to below 60%, and described the trend as operating leverage as the model scales.
For 2026, management provided the following forecast ranges and volume targets:
- EPS: $2.15 to $2.55
- SBA 7(a) originations: $1.0 billion
- ALP/C&I loans held for sale (planned to be sold): $500 million
- SBA 504 originations: $175 million
- Net growth in held C&I and CRE investment portfolio: $150 million
DeMaria said the company “tried to layer in a degree of conservatism” to the estimates and suggested that continued execution could lead to an expansion in valuation multiples.
“Newtek Advantage” and technology-enabled delivery
Kaplan described the Newtek Advantage as a “client-first” platform that brings siloed financial services—banking, lending, payments, payroll, and insurance—into a single user experience designed for independent business owners. He said the concept was announced in 2012 and has been built through ongoing iterations, emphasizing a “single pane of glass” view of financial activity and tools such as document storage and analytics.
Kaplan and management cited operating and growth metrics they attributed to the platform and bank integration, including a seven-fold bank growth over three years to $1.5 billion in assets, 30,000 bank accounts opened digitally, and a client acquisition engine producing “600 unique opportunities” per day. Kaplan also said Newtek has assembled a marketing database of 2.5 million names.
Downs focused on NewTracker’s evolution from fax-based referrals to a proprietary system that functions as a CRM, loan operating system, document preparation platform, and servicing tool. He said the platform is designed to scale with workflow automation and audit trails for a regulated banking environment. As an example of scaling, Downs said Newtek’s closing department has maintained 31 employees since 2022 while closing three times the number of units as in 2022.
On AI, Downs said the company uses it to streamline workflows—such as transcribing pre-qualification calls into draft credit templates and automating ingestion of financial data—while emphasizing AI is not making credit decisions.
ALP securitizations and fair value discussion
Sloane said the Alternative Loan Program—also described as C&I loans held for sale—has been “underappreciated” by the market. He described the loans as longer-amortizing financings with personal guarantees, liens on business and personal assets, strong debt service coverage ratios, and lower loan-to-value levels. He said the average operating history in the 2025-1 ALP securitization was 16 years and that average LTV is about 50%.
According to Sloane, since 2018 the company has originated about $850 million across 180 ALP loans, with $23 million of defaults and $6 million of charge-offs. He said Newtek estimates a 3% cumulative charge-off over the life of the loans. Sloane also said the April ALP securitization generated 570 basis points of spread income, or 670 basis points including servicing.
Management repeatedly addressed fair value accounting, noting that the company marks the residual/equity certificates quarterly and uses discounted cash flow analysis, with oversight from auditors and third parties. Sloane argued fair value is becoming more common among other lenders and compared the approach conceptually to CECL, describing it as “upside down.” In a Q&A exchange, he said the company values the ownership certificates at a 14% net yield, noting the figure could move with market clearing yields.
In the Q&A portion, management also discussed SBA market dynamics. Sloane said 7(a) volumes were impacted by the government shutdown and SBA rule changes, citing issues including updated SBA processes for checks and restrictions such as citizenship requirements for even small ownership stakes and limitations on refinancing merchant cash advances. He also said Newtek tightened credit score guidelines “somewhat.”
Management said it intends to continue dividend payments and opportunistic repurchases, noting buybacks below tangible book can be attractive, while also emphasizing that the company’s priority remains execution, risk management, and scaling the platform.
About NewtekOne (NASDAQ:NEWT)
NewtekOne, Inc (NASDAQ: NEWT) is a publicly traded business development company that specializes in providing financial and business services to small and medium‐sized enterprises across the United States. Operating under the trade name The Newtek Small Business Finance, the company offers a diversified array of lending solutions designed to meet the working capital, equipment acquisition and growth needs of its clients.
The company’s core lending offerings include Small Business Administration (SBA) 7(a) loans, equipment financing, lines of credit and commercial real estate financing.
