NewtekOne Stock Gains After Record $295 Million Loan Securitization
The financial services company's largest-ever securitization provides significant liquidity to expand its small business lending operations.
Shares of NewtekOne, Inc. (NASDAQ: NEWT) rose in trading Wednesday after the company announced the successful closing of its largest-ever loan securitization, a deal that injects nearly $300 million of capital onto its balance sheet.
The Boca Raton-based financial services company, which specializes in lending to small and medium-sized businesses, sold $295 million in rated notes backed by a pool of its small business loans. The stock climbed toward its 52-week high on the news, trading at $13.61, as investors responded positively to the major liquidity event.
According to the company's official announcement, the transaction was its 17th and most substantial securitization to date. The process involves pooling loans and selling them as securities to institutional investors, allowing Newtek to receive cash upfront, which can then be redeployed into new loans to fuel growth. For a company with a market capitalization of approximately $423 million, the size of the deal represents a significant strategic accomplishment and a powerful endorsement from the credit markets.
This capital infusion is central to NewtekOne's business model as a technology-enabled financial holding company. Unlike a traditional bank, Newtek operates as a business development company (BDC) that provides a wide array of services including lending, payment processing, and payroll solutions to a client base of small and mid-sized enterprises across the United States. The fresh capital from the securitization will directly fund the expansion of its core lending activities.
Investor sentiment leading up to the announcement has been increasingly positive. The company recently issued strong earnings per share (EPS) guidance for 2026, projecting between $2.15 and $2.55, with the midpoint of that range exceeding prior analyst expectations. Wall Street's consensus 12-month price target for NEWT sits at $16.60, suggesting further potential upside from its current levels.
NewtekOne has been actively transforming its financial structure, and this securitization is a key part of that strategy. By tapping the securitization market, the company diversifies its funding sources and secures long-term capital to originate more loans through its various platforms, including its government-guaranteed SBA 7(a) loan programs.
Market participants will now look ahead to the company's next major catalyst when it reports its fourth-quarter and full-year 2025 financial results. The earnings call, scheduled for January 29, 2026, will give management an opportunity to provide more color on how the proceeds from this record transaction will be deployed and to update investors on its growth outlook for the year ahead. The successful execution of the deal provides a strong tailwind for the company as it looks to expand its market share in the competitive small business lending space.