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…
Earnings analysis · 10-Q
NMAX earnings analysis
Filed August 13, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.02
What stood out
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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.
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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.
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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.
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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.
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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.
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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.
What to watch
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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.
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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.
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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.
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.