Inquired how much of the $16 million 2026 guidance is contracted, and the outlook for 2027 growth beyond the $25 million annualized run rate.

Darryle Burnham confirmed the $16 million guidance is fully contracted and not contingent on future agreements. He mentioned the $25 million annualized run rate for 2027 and expressed excitement about additional opportunities in international licensing, noting multiyear agreements. “Well, the guidance that we've given on licensing so far this year was based on factual evidence of agreements that we had in place. So the $16 million that we gave for this year is not contingent on any future agreements.”

Asked about the economics of the Meta AI partnership and if Newsmax is discussing with other AI platforms, and if AI licensing could become a meaningful stand-alone revenue stream.

Chris Ruddy stated financial details are not revealed but it's a multiyear agreement consistent with market. He confirmed discussions with other AI companies and hopes for more developments, seeing it as a potentially significant supplemental revenue stream. Darryle Burnham added that AI is an important channel for news discovery and Newsmax is excited to participate. “Well, we're hoping that the licensing, we are hoping, I can't promise that, but it could potentially be a significant licensing stream for us.”

Asked for details on margin improvements beyond affiliate fees, specifically operating efficiencies over the last quarter/year.

Darryle Burnham attributed improvements to high-margin affiliate and licensing revenue, operating efficiencies post-IPO, and reduced first-year public company expenses. He also mentioned utilizing new tools and advances in AI to contain costs and become more efficient. “But overall, we've just seen the ability to focus more on the business, and we're focused on some of those high-margin components of the business. And we're constantly looking at ways that we can utilize new tools to become more efficient within the business as well.”

NMAX

Newsmax (NMAX) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Communication Services· Aug 13, 2026

Source: earnings call transcript

Executive summary

Newsmax Q2 FY26 — Record Revenue and First Public Company Profitability

Newsmax reported a strong second quarter, achieving record revenue and its first profitable quarter as a public company, driven by significant growth in broadcast revenue and international licensing. The company is strategically investing in content and technology, including a major AI partnership with Meta, to sustain long-term growth and expand its multi-platform reach, despite some headwinds in advertising and subscription revenues.

Highlights

Record revenue of $54.1 million, up 16.5% year-over-year.
First profitable quarter as a public company with net income of $2.9 million.
Adjusted EBITDA improved by $9.5 million to $5.7 million.
Broadcast revenue rose 20.5% to $45.8 million, driven by higher-margin affiliate fees and licensing.
Total viewership reached 26.9 million, up 4% year-over-year, representing the highest Q2 reach in 4 years.
International licensing fees expected to reach $16 million in 2026, a 344% increase from $3.6 million in 2025.

Concerns

Advertising revenues decreased 3.5% year-over-year to $28.8 million due to lower customer order volume and challenging election comparison.
Subscription revenues were down 9.9% year-over-year to $6.3 million due to lower new customer acquisition.
Product sales revenue decreased 31.7% year-over-year to $1.1 million.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year revenue	$212 million to $216 million high materiality	FY26 · 2026	High
Full-year operating profile	improve medium materiality	FY26 · 2026	Medium
International licensing fees	$25 million medium materiality	FY27 · 2027	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Broadcasting Driven by higher-margin affiliate fee revenue attributed to new contractual relationships and rate increases that took effect in late 2025 and 2026 as well as expanded international licensing agreements. Affiliate fees: higher ratesInternational licensing: expanded agreements	$45.8 million	20.5%	—	—
Digital Growth in digital advertising, driven by new contractual relationships, was offset by lower subscription revenue and product sales. Digital advertising: growthSubscription revenue: lowerProduct sales: lower	$8.3 million	-1.3%	—	—

Product announcements

Product	Type	Timeline	Details
Newsmax+ content catalog	expansion	now tops
Newsmax Poland	launch	During the past quarter

Deals & partnerships

Meta Multiyear AI content partnership where Newsmax's journalism and reporting will power AI answers across Meta's ecosystem. multiyear agreement

Newsmax content will help power AI answers across Meta's social, streaming, and AI platforms. Financial details were not revealed but stated to be consistent with market.

International operators Operators run channels locally and license the Newsmax brand, with Newsmax providing content and editorial framework. Expected $16 million in 2026, up from $3.6 million in 2025 multiyear agreements

Newsmax Poland launched, expanding distribution to over 100 countries. Agreements are multiyear, with renewals expected.

Risks & headwinds

Advertising revenue decline Q2 FY26

decreased to $28.8 million, a 3.5% year-over-year decline

Mitigation:partially offset by digital advertising growth of 21.3%

Subscription revenue decline Q2 FY26

$6.3 million were down 9.9% year-over-year

Mitigation:partially offset by gains from expanded affiliate agreements that make Newsmax available on more linear cable providers

Product sales decline Q2 FY26

decreased 31.7% year-over-year to $1.1 million

Mitigation:primarily driven by decreased book and supplement sales

Post-cycle normalization in viewership Q2 FY26

Despite the post-cycle normalization, total viewership rose again.

Mitigation:total viewership rose again, highest second quarter reach in the past 4 years, audience is highly loyal

What to watch in Q3 FY26

Affiliate rate gap closure

Next 12-24 months

Current roughly 7x below peers on average

Target Progress towards closing the rate gap

Why it matters

Significant driver for margin expansion and long-term profitability.

I know in your presentation, you highlight that Newsmax affiliate rates are roughly 7x below peers on average, and that's in spite of the fact that your distribution ratings are increasingly comparable. And I know that you've been reluctant to talk about this in the past, but I just thought I'd ask anyway, what percentage of your subscriber base is scheduled for renewal over the next 12 to 24 months? And then I guess the real question would be, how quickly do you think you can close that rate gap without sacrificing your distribution?

Find out whether NMAX delivers this. Inve re-checks your case every morning.

Q&A highlights

Asked about the percentage of subscriber base scheduled for renewal in the next 12-24 months and how quickly the 7x rate gap with peers can be closed without sacrificing distribution.

Darryle Burnham stated they don't publicly disclose renewal percentages but highlighted past success in securing affiliate fees and renewals. Chris Ruddy emphasized that ratings and brand value are the best leverage, noting 81.9% YoY growth in affiliate fees and that agreements are rolling.

“I would just add that the best leverage is always ratings and that our growing brand value.”

asked by Michael Kupinski · answered by Christopher Ruddy

2 min read 7 chapters

Detailed narrative

Strong Financial Performance and Margin Expansion

Newsmax achieved record revenue of $54.1 million, a 16.5% YoY increase, and its first profitable quarter as a public company with $2.9 million in net income and $5.7 million in adjusted EBITDA. Gross margin expanded to 43.1% from 38% in the prior year, primarily driven by higher-margin affiliate fees and licensing revenues, as well as operating efficiencies post-IPO and reduced legal expenses.

Multi-Platform Audience Growth

The company reported 26.9 million total viewers, up 4% YoY, marking its highest Q2 reach in four years, including 11.3 million adults 35-64. Newsmax maintained its position as the fourth highest-rated cable news channel and ranked #2 in engagement for adults 35-64. Social media followers grew over 28% YoY to more than 26 million, indicating resilient growth across digital platforms.

Strategic Investment in Streaming and Content

Streaming remains a key investment area, with the Newsmax+ catalog now exceeding 300 titles, including new original specials and documentaries. The company is focused on improving engagement, strengthening retention, and translating the expanded lineup into subscriber growth for Newsmax+. These content investments also drive ratings for the linear channel and strengthen affiliate fee negotiations.

International Expansion and Licensing Growth

Newsmax's international business is building rapidly, with expected licensing fees of $16 million in 2026, a 344% increase from $3.6 million in 2025. The company officially launched Newsmax Poland, expanding its distribution footprint to over 100 countries through capital-efficient partnerships where local operators license the Newsmax brand and content. Multiyear agreements are in place, with a projected annualized run rate of $25 million for 2027.

AI Content Partnership with Meta

Newsmax announced a multiyear AI content partnership with Meta, where its journalism and reporting will power AI answers across Meta's ecosystem. Management views this as the beginning of its AI efforts, with discussions ongoing with other AI companies, anticipating it to become a significant supplemental revenue stream and also incorporating AI into its own infrastructure for efficiency.

Affiliate Fee Strategy and Market Position

Affiliate revenues increased 81.9% YoY to $13.4 million, driven by new contractual relationships and rate increases. Management highlighted that Newsmax's affiliate rates are still significantly below peers, seeing substantial opportunity for growth through future renewals, leveraging strong ratings and brand value to close the rate gap without sacrificing distribution.

Impact of Midterm Elections and Presidential Campaign

Management anticipates that midterm elections will boost audience engagement, particularly with the potential for divided government leading to more news and conflicting stories. The upcoming presidential campaign, starting in earnest next year, is also expected to drive significant engagement and potential revenue opportunities over the next two years, creating a favorable window for continued growth.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.