NewtekOne, Inc.NEWT

NewtekOne, Inc. Leases Disclosure

10-KFiled Mar 10, 20262 min read
NOTE 19—LEASES:

Under ASC 842, operating lease expense is generally recognized on a straight-line basis over the term of the lease. The Company has entered into operating lease agreements for office space with remaining contractual terms up to fourteen years, some of which include renewal options that extend the leases for up to 10 years. These renewal options are not considered in the remaining lease term unless it is reasonably certain the Company will exercise such options. The operating lease agreements do not contain any material residual value guarantees or material restrictive covenants.

As the rate implicit in the leases generally is not readily determinable for our operating leases, the discount rates used to determine the present value of our lease liability are based on our incremental borrowing rate at the lease commencement date and commensurate with the remaining lease term. Our incremental borrowing rate for a lease is the rate of interest we would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Leases with an initial term of 12 months or less are not recorded on the balance sheet and are excluded from our weighted-average remaining lease term.
The following table summarizes supplemental cash flow and other information related to our operating leases:
Year Ended December 31,
202520242023
Cash paid for amounts included in the measurement of lease liabilities (operating cash flows)$596$2,874$2,693
Weighted-average remaining lease term - operating leases10.19 years5.87 years2.88 years
Weighted-average discount rate - operating leases7.58%5.94%5.50%
Total lease costs1
$1,537$3,115$3,124
1 Included in Other general and administrative costs on the consolidated statements of income.
The following table represents the maturity of the Company’s operating lease liabilities as of December 31, 2025:
Maturity of Lease Liabilities
2026$660 
2027552 
2028476 
2029367 
2030225 
Thereafter2,012 
Total future minimum lease payments$4,292 
Less: Imputed interest(1,418)
Present value of future minimum lease payments$2,874 

Historical Timeline

Fiscal YearFiled
2025Mar 10, 2026Showing above
2024Mar 17, 2025
2023Apr 1, 2024

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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