Newsmax (NYSE:NMAX) Announces Quarterly Earnings Results, Beats Expectations By $0.05 EPS

Newsmax (NYSE:NMAX) released its quarterly earnings data on Thursday. The company reported $0.02 earnings per share for the quarter, beating analysts’ consensus estimates of ($0.03) by $0.05, FiscalAI reports. The business had revenue of $54.12 million during the quarter. Newsmax had a negative net margin of 43.17% and a negative return on equity of 81.14%.

Here are the key takeaways from Newsmax’s conference call:

• Record second-quarter revenue rose 16.5% year over year to $54.1 million, while Newsmax reported its first quarterly profit as a public company, with $2.9 million in net income and $5.7 million in adjusted EBITDA.
• Revenue mix continued shifting toward higher-margin affiliate fees and licensing, helping gross margin expand to 43.1% from 38.0% a year earlier. The company ended the quarter with $128.3 million in cash and short-term investments and no debt.
• Management cited ongoing growth in audience reach, social followers, international licensing, and AI partnerships, including a multi-year content agreement with Meta. International licensing revenue is expected to reach approximately $16 million in 2026, up sharply from $3.6 million in 2025.
• Some consumer-driven revenue streams weakened: advertising revenue declined 3.5%, subscription revenue fell 9.9% due to lower new-customer acquisition, and product sales dropped 31.7%. Total digital revenue also declined 1.3% year over year.
• Newsmax reiterated full-year 2026 revenue guidance of $212 million to $216 million, representing approximately 13% growth at the midpoint, while emphasizing continued investment in programming, technology, streaming, and distribution.

Newsmax Stock Performance

Shares of NYSE:NMAX traded up $1.85 during midday trading on Friday, reaching $11.34. 4,558,283 shares of the company’s stock traded hands, compared to its average volume of 1,329,126. The company has a market cap of $1.46 billion, a price-to-earnings ratio of -17.14 and a beta of 2.55. Newsmax has a one year low of $5.11 and a one year high of $15.94. The stock has a 50 day moving average of $8.23 and a 200 day moving average of $7.20.

Hedge Funds Weigh In On Newsmax

Hedge funds have recently bought and sold shares of the business. Advisory Services Network LLC purchased a new stake in shares of Newsmax during the 3rd quarter valued at about $26,000. Osterweis Capital Management Inc. purchased a new position in shares of Newsmax during the second quarter valued at approximately $32,000. Smartleaf Asset Management LLC bought a new position in Newsmax during the fourth quarter valued at approximately $32,000. Russell Investments Group Ltd. lifted its position in Newsmax by 559.0% during the fourth quarter. Russell Investments Group Ltd. now owns 6,096 shares of the company’s stock valued at $47,000 after purchasing an additional 5,171 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. purchased a new stake in Newsmax in the second quarter worth approximately $63,000.

Newsmax News Roundup

Here are the key news stories impacting Newsmax this week:

• Positive Sentiment: Profitability and revenue growth exceeded expectations. Newsmax reported second-quarter revenue of $54.1 million, up 16.5% year over year, while broadcast revenue rose 20.5% to $45.8 million. Net income was $2.9 million, or $0.02 per share, compared with analysts’ expected loss of $0.03 per share. Adjusted EBITDA reached $5.7 million, marking the company’s first profitable quarter as a public company. Newsmax Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Audience momentum supports the growth outlook. Quarterly reach increased 4% year over year to 26.9 million viewers, the company’s highest second-quarter reach in four years. Newsmax also highlighted its position as the fourth-highest-rated cable news channel and strong engagement among adults ages 35–64. Newsmax Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Management maintained its 2026 revenue outlook. Newsmax reiterated full-year revenue guidance of $212 million to $216 million, broadly consistent with the $213.2 million analyst consensus, and is targeting approximately $16 million in international licensing fees. Newsmax Reiterates 2026 Revenue Guidance
• Positive Sentiment: FCC rule changes could create strategic opportunities. Changes that may enable greater media-industry consolidation could make Newsmax’s national brand more attractive for partnerships, licensing deals or a potential acquisition. Momentum Builds After FCC Ruling
• Neutral Sentiment: Analysts continue updating their forecasts following the second-quarter earnings release, which may contribute to increased trading activity. Research Analysts Issue Forecasts for Newsmax Q2 Earnings
• Negative Sentiment: Valuation and profitability risks remain. Despite improved quarterly results, Newsmax trades at an elevated price-to-sales multiple of about 5.3, while its broader profitability history remains limited and analysts still expect a full-year loss. These risks led some coverage to retain a cautious or “Hold” stance. Newsmax Remains Stuck at Hold

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings reiterated a “sell (e+)” rating on shares of Newsmax in a report on Wednesday, July 8th. One investment analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, Newsmax presently has a consensus rating of “Hold” and an average target price of $23.00.

Newsmax Company Profile

Newsmax (NYSE:NMAX) is a diversified media company that produces and distributes conservative-oriented news, opinion and informational content. The company operates across multiple platforms, including a cable news channel, a digital streaming service, a website, a print magazine and various mobile applications. Newsmax focuses on delivering political coverage, financial analysis and cultural commentary to its audience.

Originally launched as a news website in 1998, Newsmax expanded into print with the debut of Newsmax magazine in 2003 and later launched its flagship cable network, Newsmax TV, in 2014.