Newtek Business Services Corp
NASDAQ:NEWT
Newtek Business Services Corp
Newtek Business Services Corp. is a non-diversified closed-end management investment company. The company is headquartered in Boca Raton, Florida and currently employs 104 full-time employees. The firm's investment objective is to generate both current income and capital appreciation through loans originated by its business finance platform and its equity investments in certain portfolio companies that it controls. The company owns and controls certain portfolio companies under the Newtek brand that provides a range of business and financial solutions to small and medium-sized businesses (SMB). Its products and services include Business Lending, including the Small Business Administration (SBA), Electronic Payment Processing, Managed Technology Solutions, Data Backup, Technology Consulting, eCommerce, Accounts Receivable and Inventory Financing, personal and commercial Insurance Services, Web Services, Data Backup, Storage and Retrieval, and Payroll and Benefits Solutions to SMB accounts nationwide across all industries.
Newtek Business Services Corp. is a non-diversified closed-end management investment company. The company is headquartered in Boca Raton, Florida and currently employs 104 full-time employees. The firm's investment objective is to generate both current income and capital appreciation through loans originated by its business finance platform and its equity investments in certain portfolio companies that it controls. The company owns and controls certain portfolio companies under the Newtek brand that provides a range of business and financial solutions to small and medium-sized businesses (SMB). Its products and services include Business Lending, including the Small Business Administration (SBA), Electronic Payment Processing, Managed Technology Solutions, Data Backup, Technology Consulting, eCommerce, Accounts Receivable and Inventory Financing, personal and commercial Insurance Services, Web Services, Data Backup, Storage and Retrieval, and Payroll and Benefits Solutions to SMB accounts nationwide across all industries.
Record Earnings: Net income before taxes for 2025 reached approximately $80 million, up 16.4%.
Strong Revenue Growth: Total revenue grew to $284 million, up 10.6% over 2024.
EPS Improvement: Diluted EPS for 2025 was $2.18, up 11% year-over-year, with 2026 guidance midpoint at $2.35.
Deposit Growth: 9,000 new deposit accounts were opened in Q4, with business deposits up $34 million in the quarter and $164 million for the year.
Efficiency Gains: Efficiency ratio improved from 63.2% to 58.3% at holdco; bank efficiency ratio around 47%.
Credit Quality Stabilizing: Nonperforming loans declined for two straight quarters, finishing 2025 at 6.9%.
ALP Momentum: Alternative Loan Program loans gained traction, with the latest securitization 10x oversubscribed.
NSBF Losses Declining: Losses from the legacy NSBF business fell to around $20 million in 2025 and are expected to decline further in 2026.
