NEWTOHIGH SIGNALFINANCIAL10-K

NEWTO's operating cash flow plummeted 279% to -$579.2M while rapidly expanding deposits and assets, signaling potential liquidity stress amid aggressive growth.

The massive deterioration in operating cash flow to nearly -$580M represents a critical shift that could indicate the bank is struggling to generate cash from operations despite growing its deposit base and loan portfolio. This cash flow crisis combined with rapid balance sheet expansion suggests the company may be taking on significant operational risk to fuel growth.

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

NEWTO experienced dramatic balance sheet growth with deposits surging 46% to $1.4B and total assets expanding 33% to $2.7B, indicating aggressive expansion in the banking business. However, this growth came at a severe cost as operating cash flow collapsed 279% to -$579.2M, while interest expenses jumped 36% and total debt increased 16% to $820M. Despite positive net income growth of 19% to $60.5M, the massive cash flow deterioration suggests underlying operational challenges that could threaten the sustainability of this growth trajectory and the company's liquidity position.

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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