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    NMAX
    Earnings call· Jun 2026(Q2 FY26)

    Newsmax Q2 FY26 earnings call NMAX

    Aug 13, 2026 Source

    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

    6

    • 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

    3

    • 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

    3
    CategoryTargetConfidence
    Full-year revenue
    $212 million to $216 million
    high materiality
    High
    Full-year operating profile
    improve
    medium materiality
    Medium
    International licensing fees
    $25 million
    medium materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    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 million20.5%——
    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%——

    Operational metrics

    14
    Gross margin
    43.1%from 38% in the prior year quarter
    Q2 FY26

    Expanded due to shift toward affiliate fee and licensing revenues and higher rates.

    Total followers
    over 26 millionclimbed over 28% year-over-year
    Q2 FY26

    Growth is resilient.

    Total viewership
    26.9 millionup 4% year-over-year
    Q2 FY26

    Despite post-cycle normalization.

    Adults 35-64 viewership
    11.3 million
    Q2 FY26
    Cable news channel ranking
    #4
    Q2 FY26

    Ranked #2 in engagement among adults 35-64.

    Newsmax+ catalog titles
    300+
    Q2 FY26

    Includes family-friendly content, new original premium specials and documentaries.

    International licensing fees
    $3.6 million
    FY25
    International licensing fees
    $16 million344% increase from 2025
    FY26 expected
    Advertising revenues
    $28.8 million3.5% year-over-year decline
    Q2 FY26
    Digital advertising growth
    21.3%
    Q2 FY26

    Partially offset decline in overall advertising revenues.

    Affiliate revenues
    $13.4 millionincreased 81.9% year-over-year
    Q2 FY26
    Subscription revenues
    $6.3 milliondown 9.9% year-over-year
    Q2 FY26
    Product sales revenue
    $1.1 milliondecreased 31.7% year-over-year
    Q2 FY26
    Basic cable network growth
    280%
    since 2020

    Industry KPIs

    5
    MetricValueDetails
    Total revenue$54.1 millionUSD
    Net income EPS$2.9 millionUSD
    Adjusted EBITDA$5.7 millionUSD
    Cash marketable securities$128.3 millionUSD
    Ai product feature adoption—

    Product announcements

    2
    ProductTypeDetails
    Newsmax+ content catalogexpansion
    Newsmax Polandlaunch

    Deals & partnerships

    2
    MetaMultiyear 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 operatorsOperators 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 2025multiyear agreements

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

    Risks & headwinds

    4
    Advertising revenue declineQ2 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 declineQ2 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 declineQ2 FY26

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

    Mitigation: primarily driven by decreased book and supplement sales

    Post-cycle normalization in viewershipQ2 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

    5

    Affiliate rate gap closure

    Next 12-24 months
    Currentroughly 7x below peers on average
    TargetProgress 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?

    Q&A highlights

    7

    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 read7 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    07

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.