NEWTGHIGH SIGNALFINANCIAL10-K

Operating cash flow collapsed by 279% to negative $579.2M while the company significantly expanded its balance sheet and increased dividend payments.

The dramatic deterioration in operating cash flow from -$153M to -$579M represents a critical liquidity concern, especially troubling given the company simultaneously increased dividend payments by 38.5%. This cash flow crisis occurring alongside rapid balance sheet expansion suggests potential strain on the company's ability to fund operations and service its growing debt load.

Comparing 2026-03-10 vs 2025-03-17View on EDGAR →
FINANCIAL ANALYSIS

NEWTG experienced massive balance sheet growth with total assets expanding 33% to $2.7B and deposits surging 46% to $1.4B, indicating aggressive expansion in their banking operations. However, this growth came at a severe cost as operating cash flow deteriorated catastrophically by 279% to negative $579M, while interest expenses jumped 36% and total debt increased 16% to $820M. Despite generating 19% higher net income of $60.5M, the company's ability to convert earnings into cash flow appears fundamentally broken, creating a dangerous disconnect between reported profitability and actual cash generation that threatens long-term viability.

FINANCIAL STATEMENT CHANGES
Operating Cash Flow
Cash Flow
-278.6%
-$153.0M→-$579.2M

Operating cash flow fell 278.6% — earnings quality concerns; investigate working capital changes and non-cash items.

Capital Expenditure
Cash Flow
-75.9%
$439K→$106K

Capex reduced 75.9% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Total Deposits
Balance Sheet
+45.8%
$973.1M→$1.4B

Deposits grew 45.8% — expanding customer base or increased trust in the institution.

Dividends Paid
Cash Flow
+38.5%
$20.3M→$28.0M

Dividend payments increased 38.5% — management confidence in sustained cash generation.

Interest Expense
P&L
+36.4%
$49.7M→$67.7M

Interest expense surged 36.4% — significant debt increase or rising rates materially impacting earnings.

Stockholders Equity
Balance Sheet
+34.2%
$296.3M→$397.6M

Equity base grew 34.2% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Total Assets
Balance Sheet
+33.2%
$2.1B→$2.7B

Asset base grew 33.2% — expansion through organic growth, acquisitions, or capital deployment.

Total Liabilities
Balance Sheet
+33.1%
$1.8B→$2.3B

Liabilities grew 33.1% — significant increase in debt or obligations, assess impact on financial flexibility.

Net Income
P&L
+19%
$50.9M→$60.5M

Net income grew 19% — bottom-line growth signals improving overall business health.

Total Debt
Balance Sheet
+15.8%
$708.0M→$819.9M

Debt rose 15.8% — additional borrowing for investment or operations; monitor coverage ratios.

LANGUAGE CHANGES
NEW — 2026-03-10
PRIOR — 2025-03-17
ADDED
As of March 9, 2026, there were 28,831,491 shares outstanding of the registrant s Common Stock, par value $0.02 per share.
Management s Discussion and Analysis of Financial Condition and Results of Operations 72 7 A .
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 104 9A.
GAAP or GAAP Generally accepted accounting principles in the United States VIE Variable Interest Entity Webster Webster Bank, N.A.
Consolidated Subsidiaries, Joint Ventures and Other Investments NSBF Newtek Small Business Finance, LLC NCL Newtek Commercial Lending, Inc., a former wholly-owned subsidiary of NewtekOne Inc., merged into NALH on May 13, 2025 Newtek Bank Newtek Bank, National Association NALH or Newtek ALP Holdings Newtek Business Services Holdco 6, Inc.
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REMOVED
As of March 14, 2025, there were 26,290,668 shares outstanding of the registrant s Common Stock, par value $0.02 per share.
Management s Discussion and Analysis of Financial Condition and Results of Operations 70 7A.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 98 9A.
Exhibits and Financial Statement Schedules 102 Exhibits Index 103 Signatures 105 Financial Statements F- 1 Defined Terms We have used we, us, our, our company, and the Company to refer to NewtekOne, Inc.
GAAP or GAAP Generally accepted accounting principles in the United States Webster Webster Bank, N.A.
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