Newsmax, Inc.

Second-quarter 2026 revenue was $54.1 million, up 16.5% year over year. Gross margin was 43.1%, compared with 38% in the prior-year quarter. Net income was $2.9 million, or $0.02 per share, versus a net loss of $75.2 million a year ago; adjusted EBITDA was $5.7 million versus negative $3.8 million last year. Broadcast revenue increased 20.5% to $45.8 million, digital revenue was $8.3 million, advertising revenue was $28.8 million, affiliate revenue was $13.4 million, subscription revenue was $6.3 million, product sales were $1.1 million, and licensing revenue was $4.6 million. The company ended the quarter with $25.9 million in cash and cash equivalents, $102.4 million in short-term investments, $128.3 million total cash and investments, and no debt. Management reiterated full-year 2026 revenue guidance of $212 million to $216 million, implying 13% growth at the midpoint, and said full-year operating performance should improve versus 2025.

Chris Ruddy framed the quarter as validation of Newsmax’s multi-platform strategy, saying the company did what it said it would do and more. He emphasized that profitability was helped by the end of one-time public-company and legal costs, but stressed that the business remains in strategic investment mode. He highlighted audience growth, social media expansion, international licensing, and the Meta AI partnership as signs that Newsmax can keep extending its reach across cable, streaming, digital, and global markets.

Darryle Burnham said the quarter benefited from a richer revenue mix, with affiliate fees and licensing lifting gross margin to 43.1% from 38%. He pointed to improved operating efficiency, lower general and administrative expenses, and the absence of prior-year legal settlement costs as key drivers of the swing to $2.9 million in net income and $5.7 million in adjusted EBITDA. He also noted the company’s capital allocation priorities remain focused on programming, talent, technology, distribution, digital initiatives, and other strategic opportunities, supported by $128.3 million in cash and investments and no debt.

Analysts focused on how much room there is to close the affiliate-fee gap versus peers, and management said renewals and stronger ratings are the main levers, but they would not disclose the percentage of fees up for renewal. On licensing, management said the $16 million 2026 target is based on agreements already in place, called it stable, and said the $25 million annualized run rate for next year provides a reference point without offering further 2027 guidance. Questions on the Meta deal and AI monetization drew a response that the agreement is multiyear, economics were not disclosed, and Newsmax is in talks with other AI companies while viewing AI as a potentially meaningful supplemental revenue stream.