Newsmax (NYSE:NMAX) Posts Earnings Results, Beats Estimates By $0.05 EPS

Newsmax (NYSE:NMAX) issued its quarterly earnings results on Thursday. The company reported $0.02 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.03) by $0.05, FiscalAI reports. Newsmax had a negative net margin of 3.15% and a negative return on equity of 8.41%. The business had revenue of $54.12 million for the quarter.

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 Up 15.3%

NYSE:NMAX traded up $1.45 during trading hours on Friday, hitting $10.94. 5,940,634 shares of the stock were exchanged, compared to its average volume of 742,853. The company has a market capitalization of $1.41 billion, a P/E ratio of -16.58 and a beta of 2.55. The company’s 50 day moving average is $8.27 and its two-hundred day moving average is $7.23. Newsmax has a twelve month low of $5.11 and a twelve month high of $15.94.

Institutional Investors Weigh In On Newsmax

Institutional investors and hedge funds have recently made changes to their positions in the company. Advisory Services Network LLC acquired a new position in shares of Newsmax during the third quarter valued at $26,000. Osterweis Capital Management Inc. acquired a new stake in Newsmax in the second quarter worth about $32,000. Smartleaf Asset Management LLC bought a new stake in Newsmax during the 4th quarter worth about $32,000. Russell Investments Group Ltd. raised its holdings in Newsmax by 559.0% during the 4th quarter. Russell Investments Group Ltd. now owns 6,096 shares of the company’s stock worth $47,000 after purchasing an additional 5,171 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new position in Newsmax during the 2nd quarter valued at about $63,000.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings restated a “sell (e+)” rating on shares of Newsmax in a research report on Wednesday, July 8th. One analyst has rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Newsmax currently has a consensus rating of “Hold” and a consensus price target of $23.00.

Key Stories Impacting Newsmax

Here are the key news stories impacting Newsmax this week:

• Positive Sentiment: Newsmax reported record second-quarter revenue of $54.1 million, up 16.5% year over year. Broadcast revenue increased 20.5% to $45.8 million, while audience reach rose 4% to 26.9 million viewers. The company also posted $2.9 million in net income and $5.7 million in adjusted EBITDA, marking its first profitable quarter as a public company. Newsmax Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Adjusted earnings of $0.02 per share exceeded the $0.03-per-share loss analysts had expected, providing a meaningful earnings surprise. Newsmax Quarterly Earnings Report
• Positive Sentiment: Recent FCC rule changes could facilitate consolidation in the media industry, potentially increasing Newsmax’s appeal as a strategic partnership or acquisition candidate. Momentum Builds After FCC Ruling
• Positive Sentiment: Management is targeting approximately $16 million in international licensing fees, which could add a higher-margin growth opportunity. Newsmax Reiterates 2026 Revenue Guidance
• Neutral Sentiment: Newsmax maintained full-year 2026 revenue guidance of $212 million to $216 million, broadly in line with the roughly $213 million analyst consensus. Newsmax Revenue Guidance
• Negative Sentiment: Despite improving growth and quarterly profitability, analysts caution that NMAX remains richly valued at about 5.3 times sales, with limited profitability and ongoing balance-sheet concerns. The stock’s elevated valuation leaves less room for disappointment.

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.