NMAX earnings analysis
What we found in NMAX's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Newsmax delivered strong Q2 operating improvement, with revenue up 16.5% year over year to $54.1 million, gross margin rising to 43.1%, and EPS improving to $0.02 from $(0.59). Broadcasting drove the performance through 20.5% revenue growth and higher affiliate fee and licensing rates, while Digital revenue declined 1.3%. The company maintained its $212 million to $216 million full-year revenue outlook, but unresolved internal-control material weaknesses, a $20.0 million settlement installment and continued investment spending temper the positive earnings trend.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue accelerated to $54.1 million
- Revenue increased to $54,115,485 from $46,439,744 in Q2 2025, a 16.5% increase. Revenue also rose from $52 million in Q1 2026, extending the quarterly growth trend.
- Gross margin expanded materially
- Gross profit increased 32.3% to $23,333,704, while gross margin expanded to 43.1% from 38.0% a year earlier and 38.6% in Q1 2026. Management attributed the improvement primarily to higher affiliate fee and licensing rates.
- First profitable quarter as a public company
- The company reported net income of $2,867,291, or diluted EPS of $0.02, versus a net loss of $(75,175,622) and $(0.59) per share in Q2 2025. Derived operating margin was approximately 2.4%, versus negative 164.5% in the prior-year quarter and negative 8.7% in Q1 2026.
- Broadcasting drove growth and profitability
- Broadcasting revenue rose 20.5% to $45,814,855, led by affiliate fee revenue of $13,358,974, up 81.9%, and licensing revenue of $4,610,172, up 563.5%. Broadcasting Segment Adjusted EBITDA increased to $8,072,724 from $1,633,014.
- Cash burn improved year over year
- Operating cash flow used was $(2,766,713) for the first six months of 2026, improving from $(38,947,863) in the prior-year period. Cash and cash equivalents totaled $25.9 million, supplemented by $102.4 million of investments at June 30, 2026.
- Higher-margin revenue mix improved
- Affiliate fee revenue increased $6,015,567 and licensing revenue increased $3,915,301 year over year, more than offsetting declines of $1,071,843 in advertising and $690,788 in subscription revenue.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Material weaknesses remain unresolved
- Management reported that disclosure controls and procedures were not effective as of June 30, 2026 because of material weaknesses in internal control over financial reporting. The weaknesses cover revenue, period-end reporting, procure-to-pay, asset management, treasury and income tax processes, among others.
- Settlement obligation remains material
- A final $20.0 million Dominion settlement installment is due on or before January 15, 2027. Although the company maintains a fully funded escrow, the obligation remains a material liquidity commitment relative to $25.9 million of cash and cash equivalents.
- Advertising and subscriber headwinds
- Advertising revenue declined $1,071,843, or 3.6%, in Q2 2026, partly because Q2 2025 benefited from election-related demand. Subscription revenue also fell $690,788, or 9.9%, due to lower new-customer acquisition.
- Investment spending pressures margins
- The company continued investing in Newsmax 2 and increased production headcount, programming and production costs. Cost of revenues rose $1,983,798, or 6.9%, in Q2 despite the 16.5% revenue increase.
- Potential accelerated-filer transition
- Management expects it may transition from non-accelerated filer to accelerated filer for the December 31, 2026 Form 10-K based on its public float at June 30, 2026. The transition would require shorter filing deadlines and additional reporting, internal-control and compliance resources.
- Equity portfolio creates earnings volatility
- Marketable equity securities totaled $22.3 million at June 30, 2026; a hypothetical 10% move in quoted market prices would change fair value and pretax earnings by $2.2 million.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.02
- Gross margin
- 43.1%
- Operating margin
- 2.4%
- Segment
- Broadcasting revenue: $45,814,855, up 20.5% year over year; Segment Adjusted EBITDA: $8,072,724, up 394.3%.
- Segment
- Digital revenue: $8,300,630, down 1.3% year over year; Segment Adjusted EBITDA loss: $(2,357,528), improved 56.3%.
What they said about what is next.
Management maintained full-year 2026 revenue guidance of $212 million to $216 million, representing 13% year-over-year growth at the midpoint. No quantitative EPS guidance was provided.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 14, 2026
- Newsmax reported a significant improvement in Q4 2026 financial performance with revenues rising by 14% year-over-year to $51.7 million driven by increased affiliate and licensing fees, while operating losses narrowed…
- 10-K · March 26, 2026
- Newsmax reported record fiscal 2025 revenue of $189.3 million, up 10.7% year-over-year, driven by Broadcasting ($153.3M) and expanding distribution (over 58 million paid homes). Q4 showed improving operational results…
- 10-Q · May 15, 2025
- Revenue improved to $45.30M in Q1 2025 (from $40.60M a year earlier) and net loss narrowed to $(17.23)M (EPS $(0.49)) from $(50.68)M (EPS $(1.27)) in Q1 2024. Operating loss improved materially to $(11.57)M but the…
- 10-K · March 31, 2025
- Newsmax describes a two-segment strategy (Broadcasting and Digital) focused on expanding distribution across linear, OTT and FAST channels and monetizing a large audience via advertising and subscriptions. Revenue grew…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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