Company: NEWTP
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001628280-25-050582
Chunk: 347

Company: NewtekOne, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 347
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1    Availability as of September 30, 2025 and December 31, 2024 is based on collateral pledged as of that date.

The Company has restricted cash of $24.7 million as of September 30, 2025. NSBF holds $7.6 million of the Company’s restricted cash, which includes reserves in the event payments are insufficient to cover interest and/or principal with respect to securitizations and loan principal and interest collected which are due to loan participants. In addition, the Company has funded a $10.0 million account at Newtek Bank to fund certain of NSBF’s potential obligations to the SBA pursuant to the Wind-down Agreement. of which the Company is a guarantor. The majority of the Company’s remaining restricted cash is held by the parent company.

The Company generated and used cash as follows:

Nine Months Ended September 30,20252024Net cash used in operating activities$(427,836)$(61,419)Net cash used in investing activities(193,876)(122,833)Net cash provided by financing activities457,269 192,132 Net (decrease) increase in cash and restricted cash(164,443)7,880 Cash and restricted cash—beginning of period (NOTE 2)381,374 184,006 Deconsolidation of cash and restricted cash from controlled investments related to business dispositions— (1,464)Cash and restricted cash—end of period (NOTE 2)$216,931 $190,422 

During the nine months ended September 30, 2025, operating activities used cash of $427.8 million, consisting primarily of $778.0 million of funding loans held for sale. This use of cash was partially offset by (i) $310.2 million of proceeds from the sale of loans; and (ii) $52.0 million from the payment of settlement receivables.

Cash used by investing activities was $193.9 million primarily comprised (i) $242.8 million in the net increase in loans held for investment, at cost; (ii) $15.8 million in contributions to joint ventures and other non-control investments; and (iii) $11.6 million in purchases of available-for-sale securities. These uses were partially offset by (i) a $53.9 million principal received on loans held for investment, at fair value; and (ii) $18.0 million in maturities of