Free cash flow remains persistently negative, bottoming at -$199.9M in 2025Q2, while the company continues to pay dividends, including $6.5M in 2026Q1, despite a structural inability to convert net income into operating cash flow.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 |
|---|
| Cash from Operations | -434.65M | 55.98M | -153.01M | -169.22M | -62.42M | 140.92M | 17.76M | -88.96M | -73.67M | -72.94M | -14.1M | -37.95M | -14.37M | 4.97M | -4.35M | 11.4M | -2.21M | 3.13M | -9.54M | -2.01M | 1.88M | -5.84M | -5.58M | -11.98M | -9.91M | -5.84M | -6.5M | -2.4M |
| Operating CF Margin % | - | 17.38% | -47.99% | -66.93% | -47.47% | 83.75% | 19.13% | -100.19% | -148.78% | -187.43% | -45.53% | -145.57% | -11.04% | 3.64% | -3.32% | 9.81% | -1.98% | 3.25% | -10.84% | -2.55% | 2.13% | -6.09% | -7.95% | -19.8% | - | - | -74.64% | -20.22% |
| Operating CF Growth % | -1127.06% | 136.58% | 9.58% | -171.11% | -144.29% | 693.35% | 119.97% | -20.76% | -1% | -417.31% | 62.85% | -164.1% | -388.9% | 214.24% | -138.18% | 616.53% | -170.59% | 132.79% | -375.34% | -206.7% | 132.21% | -4.66% | 53.41% | -20.88% | -69.74% | 10.22% | -170.65% | - |
| Net Income | 64.55M | 60.51M | 50.85M | 47.33M | 32.31M | 84.14M | 33.62M | 41.13M | 35.68M | 38.98M | 27.3M | 35.74M | 3.97M | 7.53M | 5.56M | 3.22M | 1.29M | -1.41M | -11.02M | -11.22M | -2.12M | 7.73M | 10.62M | 9.38M | 7.3M | 929.56K | -3.79M | 5.43M |
| Depreciation & Amortization | -1.87M | 668K | 1.78M | 2.88M | 239K | 304K | 402K | 501K | 484K | 402K | 296K | 326K | 3.18M | 3.28M | 3.04M | 3.96M | 4.68M | 5.85M | 7.58M | 7.36M | 6.37M | 4.51M | 2.46M | 484.48K | 147.68K | 74.05K | 6.15K | 2.27K |
| Stock-Based Compensation | -3.67M | 0 | 4.06M | 2.83M | 0 | 0 | 0 | 0 | 0 | 963K | 0 | 0 | 865K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -34K | 0 | 10.4M | -4.8M | 6.46M | 1.33M | -999K | 3.16M | 1.08M | 2.18M | 5.13M | 825K | 16K | -1.4M | -2.77M | -4.26M | -3.01M | -1.71M | -2.98M | -6.55M | -613K | 6.79M | 6.47M | 7.09M | 2.66M | 534.62K | 1.14M | 0 |
| Other Non-Cash Items | -438.35M | -64.14M | -218.81M | -129.34M | -48.99M | -84.08M | -9.09M | -113.32M | -75.14M | -103.43M | -73.38M | -32.6M | -29.57M | 4.73M | 3.36M | 9.03M | 1.85M | 1.38M | 4.66M | 5.76M | -4.76M | -18.54M | -24.1M | -31.41M | -19.9M | -7.56M | -737.56K | -6.1M |
| Working Capital Changes | -55.28M | 58.94M | -1.3M | -88.12M | -52.44M | 139.23M | -6.17M | -20.43M | -35.76M | -12.03M | 26.55M | -42.24M | 7.17M | -9.16M | -13.54M | -540K | -7.03M | -977K | -7.78M | 2.64M | 3M | -6.33M | -1.02M | 2.48M | -117.87K | 181.86K | -3.12M | -1.73M |
| Change in Receivables | -45.42M | 52.03M | 9.69M | -61.74M | 44.54M | 8.19M | -1.56M | 0 | 0 | 0 | 29.67M | 0 | 568K | 1.81M | -2.77M | 6.63M | -4.98M | 0 | 0 | 3.61M | 3.62M | -1.6M | -1.69M | 627.39K | 258.25K | 1.19M | -4.21M | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4.25M | 388.36K | 1.37M | -7.34M | 0 |
| Change in Payables | 3.95M | -2.84M | 6.16M | -22.55M | 9.02M | 1.19M | 0 | 0 | 0 | 0 | 0 | 1.73M | 0 | 3.72M | 0 | 2.54M | 0 | -1.15M | -514K | -1.41M | -656K | -1.48M | -1.76M | 1.85M | -376.12K | -1.01M | 1.09M | 0 |
| Cash from Investing | -592.65M | -880.51M | -209.05M | -172.24M | -11K | 0 | -10K | -126K | -627K | -446K | -375K | 302K | -30.04M | -36.12M | -22.5M | -17.81M | -6.34M | 3.4M | -1.53M | 1.82M | 18.41M | -18.72M | -4.76M | 2.7M | 9.27M | -1.98M | -9.65M | -7.88M |
| Capital Expenditures | -148K | -106K | -439K | -458K | -11K | 0 | -10K | -126K | -627K | -446K | -375K | -105K | -1.39M | -2.03M | -3.06M | -1.5M | -2.08M | -1.76M | -3.5M | -6.39M | -2.77M | -3.83M | -1.59M | -323.9K | -279.44K | -107.36K | -28.9K | 0 |
| CapEx % of Revenue | 0.04% | 0.03% | 0.14% | 0.18% | 0.01% | - | 0.01% | 0.14% | 1.27% | 1.15% | 1.21% | 0.4% | 1.07% | 1.49% | 2.33% | 1.29% | 1.86% | 1.83% | 3.97% | 8.12% | 3.14% | 4% | 2.27% | 0.54% | - | - | 0.33% | - |
| Acquisitions | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Investments | 63.63M | 2.22B | 1.42B | 937.44M | 283.6M | 758.78M | 671.19M | 659.04M | 541.1M | 456.69M | 345.22M | 267.77M | 235.69M | 98.02M | 68.2M | 61.76M | 93.75M | 127.35M | 174.16M | 122.34M | 152.66M | 33.18M | 9.63M | 55.67M | 10.11M | 0 | 0 | 0 |
| Other Investing | -380.37M | -246.11M | -63.37M | -182.92M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 407K | -28.65M | 1.53M | 1.17M | 1.04M | 533K | 1.18M | 4.24M | 758K | 2.8M | 1.51M | -24.46M | 15.54M | 8.87M | 11.13M | 0 | 0 |
| Cash from Financing | 1.14B | 753.45M | 560.9M | 344.97M | 1.18M | -5.49M | 465K | 90.94M | 85.11M | 71.02M | 10.19M | 24.14M | 53.08M | 29.43M | 29.88M | 7.22M | 6.34M | -10.8M | 2.55M | -1.13M | -17.54M | 18.96M | 17.93M | 1.55M | 10.64M | 4.29M | 25.39M | 34.16M |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | 3.86M | 52.05M | 13.42M | 19.49M | 2.02M | 50.01M | 25.57M | 33.74M | -109K | 56.66M | -866K | 35.29M | 0 | 0 | -967K | -16K | 0 | 0 | -458K | -249K | -54K | -995K | 22.84M | 4.46M | 2.09M | 726.39K | 3.56M | 0 |
| Dividends Paid | -29.29M | -28.04M | -441K | -14.15M | -64.54M | -70.14M | -42.58M | -40.77M | -32.43M | -28.2M | -27.3M | -24.31M | 0 | 0 | 0 | 0 | 0 | -726K | 0 | -274K | 0 | 0 | 0 | 0 | 0 | -607.54K | -903.48K | -245.07K |
| Share Repurchases | -1.49M | -1.49M | -402K | 0 | 0 | 0 | 0 | -93K | 0 | 0 | -866K | 0 | 29.73M | 0 | -967K | -16K | 0 | 0 | -458K | -249K | -54K | -1.5M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 537.89M | 177.25M | 482.63M | -4.84M | -3.38M | -6.87M | -904K | -3.99M | 1.25M | -2.33M | -2.71M | 1.08M | 28.07M | -9.43M | 7.44M | -4.07M | -4.52M | -373K | -193K | 1.96M | -348K | -318K | 645K | -2.09M | 50.5K | -519.3K | 1.52M | 2.98M |
| Net Change in Cash | 108.88M | -71.08M | 197.37M | 58.4M | -61.25M | 135.44M | 18.22M | 1.86M | 10.81M | -2.36M | -4.28M | -13.51M | 13.4M | -1.72M | 3.03M | 819K | -2.2M | -4.27M | -8.52M | -1.31M | 2.75M | -5.6M | 7.59M | -7.73M | 10M | -3.53M | 9.24M | 23.89M |
| Free Cash Flow | -434.81M | 55.87M | -153.45M | -169.68M | -62.43M | 140.92M | 17.75M | -89.08M | -74.29M | -73.38M | -14.47M | -38.06M | -15.76M | 2.94M | -7.41M | 9.91M | -4.28M | 1.36M | -13.04M | -8.4M | -890K | -9.67M | -7.17M | -12.3M | -10.19M | -5.94M | -6.53M | -2.4M |
| FCF Margin % | -131.01% | 17.34% | -48.13% | -67.11% | -47.48% | 83.75% | 19.12% | -100.33% | -150.04% | -188.57% | -46.74% | -145.98% | -12.11% | 2.15% | -5.65% | 8.52% | -3.83% | 1.42% | -14.82% | -10.66% | -1.01% | -10.09% | -10.22% | -20.33% | - | - | -74.97% | -20.22% |
| FCF Growth % | -112.11% | 136.41% | 9.56% | -171.79% | -144.3% | 693.8% | 119.93% | -19.91% | -1.24% | -406.99% | 61.97% | -141.49% | -635.66% | 139.71% | -174.79% | 331.31% | -414% | 110.46% | -55.18% | -843.93% | 90.8% | -34.87% | 41.69% | -20.75% | -71.38% | 8.97% | -171.85% | - |
| FCF per Share | -13.95 | 2.18 | -6.09 | -6.97 | -2.58 | 6.18 | 0.84 | -4.61 | -3.97 | -4.24 | -1.00 | -3.53 | -1.46 | 0.39 | -1.01 | 1.37 | -0.60 | 0.19 | -1.82 | -1.17 | -0.13 | -1.41 | -1.18 | -2.35 | -2.10 | -1.36 | -1.69 | -0.66 |
| FCF Conversion (FCF/Net Income) | -6.74x | 0.93x | -3.01x | -3.58x | -1.93x | 1.67x | 0.53x | -2.16x | -2.06x | -1.87x | -0.52x | -1.06x | -3.62x | 0.66x | -0.77x | 3.42x | -1.53x | -7.29x | 0.91x | 0.18x | -0.89x | -0.76x | -0.53x | -1.25x | -1.21x | -6.28x | 1.90x | -0.44x |
| Interest Paid | 72.69M | 97.48M | 79.19M | 66.47M | 0 | 20.13M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3.99M | 2.84M | 1.35M | 1.29M | 1.29M | 1.63M | 2.44M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 12.5M | 12.5M | 7.43M | 6.88M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5.78M | 5.4M | 1.28M | 388K | 752K | 289K | 907K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
SBA secondary market volatility
According to reported financial data, NewtekOne consistently exhibits a negative OCF/NI ratio, with the 2025Q2 figure reaching -14.58, highlighting a structural inability to convert reported net income into operating cash flow that warrants significant caution from institutional investors regarding the quality of earnings.
The persistent gap between net income and operating cash flow suggests that the company's accounting recognition of gain-on-sale premiums does not align with actual cash inflows. This divergence implies that the company may be relying heavily on external financing or balance sheet shifts to sustain operations, rather than organic cash generation.
As reported in financial statements, NewtekOne's free cash flow has remained consistently negative over the last ten quarters, bottoming out at -$199.9M in 2025Q2, which indicates that the company is currently in a cash-burning phase that contradicts its reported profitability metrics.
The inability to generate positive free cash flow suggests that the company's business model is highly capital-intensive during its transition to a bank holding company. Investors should monitor whether this cash burn is a temporary byproduct of the BHC conversion or a permanent feature of the lending platform's economics.
Based on the company's reported figures, working capital changes have been highly erratic, swinging from a $40.0M inflow in 2025Q1 to a $74.2M outflow in 2026Q1, suggesting that the timing of loan originations and sales creates significant, unpredictable pressure on the company's liquidity position.
These fluctuations in working capital appear to be driven by the lumpy nature of SBA loan sales and the associated timing of cash receipts. The volatility indicates that the company's liquidity is highly sensitive to secondary market conditions, which may force management to maintain higher-than-optimal cash buffers.
As indicated by recent SEC filings, NewtekOne has continued to pay dividends despite persistent negative free cash flow, with $6.5M distributed in 2026Q1, a practice that raises questions about the sustainability of capital returns in the absence of organic cash generation.
The decision to prioritize dividend payments while operating cash flow remains negative suggests a management focus on shareholder optics that may conflict with long-term balance sheet preservation. This strategy warrants further investigation into the source of funds used to support these distributions during periods of significant cash outflow.
Quick answers to the most common questions about buying NEWTH stock.
NewtekOne, Inc. (NEWTH) generated $56.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
NewtekOne, Inc. (NEWTH) generated $55.9M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
NewtekOne, Inc. (NEWTH) spent $0.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, NewtekOne, Inc. (NEWTH) returned $28.0M to shareholders via cash dividends and spent $1.5M on share repurchases. This shows the company's commitment to returning capital to its equity investors.