Newsmax, Inc.

What they do

Newsmax Inc. is a holding company that owns 100% of operating company Newsmax Media, Inc. It produces news and editorial content distributed through three broadcast channels (Newsmax, Newsmax2, World at War), a syndicated radio show and podcasts, the Newsmax.com website, and print and digital publications. The business is reported in two segments: Broadcasting (advertising, affiliate fees, subscription and licensing) and Digital (online and email advertising, newsletter and magazine subscriptions, and e-commerce nutraceuticals and books).

Revenue drivers

• Broadcasting — Largest segment at $45.8M of $54.1M total Q2 2026 revenue (20.5% year-over-year growth). Revenue comes from advertising on Newsmax and Newsmax2, affiliate fees from MVPDs, broadcast subscriptions, and licensing of the Newsmax brand and channels internationally.
• Affiliate fees — Q2 2026 affiliate fee revenue was $13.4M, up 81.9% from $7.3M, driven by new contractual relationships and rate increases effective in late 2025 and 2026; management describes affiliate fees and licensing as its highest-margin revenue streams.
• Licensing — Q2 2026 licensing revenue was $4.6M, up 563.5% from $0.7M, driven by a February 2026 amendment to one licensing agreement that increased both rate and duration. Management expects 2026 licensing revenue of approximately $16M, up 344% year-over-year.
• Digital segment — Q2 2026 Digital revenue was $8.3M, down 1.3% year-over-year, combining online/email advertising ($4.4M, up 21.3%), subscriptions to newsletters, Newsmax Magazine and membership programs ($2.8M, down 12.2%), and product sales from nutraceuticals and books ($1.1M, down 31.7%).

Recent performance

Newsmax reported record quarterly revenue of $54.1M for Q2 2026, up 16.5% from $46.4M a year earlier, and its first profitable quarter as a public company with net income of $2.9M versus a $75.2M loss in Q2 2025. Gross profit rose 32.3% to $23.3M and gross margin improved to 43.1% from 38.0%. Broadcasting revenue rose 20.5% to $45.8M on affiliate fee and licensing gains, while advertising fell 3.6% to $28.8M due to lower digital advertising, softer linear cable and satellite advertising, and election-related demand in the prior-year quarter. General and administrative expense fell 76.6% to $22.0M from $94.0M. Full-year 2025 revenue was $189.3M with a net loss of $99.5M and operating cash flow of negative $104.5M.

Strategy

Management says it remains in strategic investment mode, continuing to fund content, streaming and OTT programming, including building out Newsmax2 for FAST channel monetization. It is pursuing licensing of the Newsmax brand and content to AI companies and international media partners, citing a multi-year content partnership with Meta and the Q2 launch of a Newsmax Poland channel with partner Telekom Serbia. International licensing is described as a low-capital model in which partners launch local channels under the Newsmax brand; the company says the brand now reaches more than 100 countries. Management reiterates full-year revenue guidance and describes the balance sheet as strong with no debt.

Risks

• History of losses — The company had a net loss of $99.5M in 2025 and negative operating cash flow of $104.5M, and its 10-K states it may continue to incur operating losses and may need to raise additional capital.
• Advertising dependence and cyclicality — Advertising is the largest revenue line at $28.8M in Q2 2026, and it declined 3.6% year-over-year partly because the prior-year quarter benefited from election-related demand.
• Changing consumer behavior and distribution — The 10-K identifies rapid evolution in how consumers view content, new distribution platforms and new entrants as risks that could adversely affect the business and results of operations.
• Concentration in licensing growth — Q2 2026 licensing growth of 563.5% came largely from amending one licensing agreement, and management's full-year expectation of roughly $16M in licensing revenue depends on continued international and AI content deals.

Outlook

Management reiterated its full-year revenue guidance and said the majority of one-time public-company costs are largely behind it. It expects licensing revenue to grow about 344% year-over-year to approximately $16M in 2026. The company said it will keep investing in content, distribution and OTT initiatives and will maintain a disciplined approach to capital allocation, with no debt on the balance sheet as of June 30, 2026.