Newsmax Q1 Earnings Call Highlights
Newsmax (NYSE:NMAX) reported higher first-quarter 2026 revenue and a sharply narrower net loss, as growth in affiliate fees and licensing helped offset weaker digital advertising, subscription and product sales revenue.
Chief Executive Officer Chris Ruddy said the company delivered “a strong start to 2026,” citing continued audience reach across cable, streaming and digital platforms. Newsmax reported total revenue of $51.7 million, up 14% from the prior-year quarter. Broadcast revenue rose more than 20% to $43.7 million.
Ruddy said the quarter showed the strength of the company’s audience base in a more normalized news environment following elevated post-election and inauguration-related news consumption in early 2025. He said Newsmax had 30.4 million total viewers in the quarter and 13.3 million adults ages 35 to 64, positioning the company as the fourth-highest-rated cable news channel and a top 15 cable network across key dayparts.
“What stands out to me most is the quality of the quarter,” Ruddy said. “We delivered broad first quarter audience reach.”
Affiliate Fees and Licensing Drive Broadcast Growth
Chief Financial Officer Darryle Burnham said total broadcasting revenue increased 20.8% year over year to $43.7 million, driven by affiliate fee revenue growth and licensing growth.
Affiliate revenue rose 75.2% to $13 million, supported by new contractual relationships and rate increases that took effect in late 2025. Licensing revenue increased to $3.5 million from $437,000 in the year-earlier quarter due to expanded licensing agreements.
Advertising revenue fell 5.8% to $27.2 million. Burnham said the decline was mainly due to lower digital advertising, reflecting a difficult comparison with the elevated demand environment tied to the 2024 election cycle. That weakness was partially offset by higher linear cable and satellite advertising revenue, which benefited from expanded reach from new affiliate agreements.
Digital revenue declined 12.7% to $8 million, reflecting lower advertising, subscription revenue and product sales. Subscription revenue fell 7.9% to $6.4 million, as growth in Newsmax+ subscribers was more than offset by lower publication subscription revenue. Product sales decreased 3.5% to $1.5 million, primarily due to lower book and supplement sales.
Net Loss Narrows, Adjusted EBITDA Dips
Newsmax reported a first-quarter net loss of $2.2 million, compared with a net loss of $17.2 million in the prior-year quarter, an improvement of 87.3%. Burnham attributed the narrower loss to higher total revenue, lower legal expenses and improved other income, partially offset by higher production headcount, programming and production costs, continued investment in Newsmax2 and higher stock-based compensation.
Adjusted EBITDA was negative $0.4 million, down $0.8 million from the same quarter last year. Burnham said the decline reflected higher production, programming and personnel costs tied to content and OTT initiatives, partially offset by growth in affiliate fees and licensing revenue in the broadcast segment.
The company ended the quarter with $129 million in cash and short-term investments. Ruddy said that balance gives Newsmax “financial flexibility to continue investing behind our growth and from a position of strength.”
Streaming, Social Media and International Expansion Remain Priorities
Management emphasized Newsmax’s multi-platform strategy, spanning cable, FAST streaming, subscription streaming, digital and social channels. Ruddy said the company is not dependent on any single channel and continues to integrate platforms to expand engagement and monetization.
Newsmax2, the company’s free streaming platform, posted sequential news hours growth of more than 22% and improved viewership across every key daypart, according to Ruddy. The company is also investing in its paid subscription platform, Newsmax+, including an expansion of military history channels World at War and War and Warriors, where available titles increased more than 200%.
Ruddy also pointed to international licensing as a growth opportunity. During the quarter, Newsmax expanded its licensing agreement with Telekom Srbija and saw Newsmax Polska go live. He said the company expects more international announcements in coming quarters.
On social media, Ruddy said Newsmax had 24.7 million followers at quarter-end and surpassed 25 million followers in May. During the Q session, he attributed social media growth to a dedicated team and said younger audiences are more likely to consume news on platforms such as TikTok.
Management Reiterates 2026 Revenue Guidance
Newsmax reiterated its full-year 2026 revenue guidance of $212 million to $216 million, which Ruddy said represents 13% growth at the midpoint. Management said it expects growth to be led by higher-margin affiliate fee expansion and licensing growth, along with continued investment in premium content and digital monetization.
Burnham said the company remains focused on disciplined execution as it invests in content, distribution and OTT initiatives to support long-term growth.
“With a strong balance sheet and a diversified multi-platform revenue model, we believe we are well-positioned to build on our progress and drive sustainable value for our shareholders,” Burnham said.
Analysts Ask About Ratings, Distribution and Advertising
In response to a question from Noble Capital analyst Michael Kupinski about the sustainability of ratings growth, Ruddy said it is difficult to attribute the improvement to a single factor. He cited geopolitical news, including the Iran conflict that began during the quarter, political primaries, marketing, social media efforts and programming changes.
Ruddy said Newsmax moved Carl Higbie to 6 p.m., which the company considers the start of its nighttime programming, and moved Greta Van Susteren to 4 p.m. He said the changes appear to be helping access and prime-time performance.
Burnham added that news remains a product consumed live and said engagement tends to rise around election cycles. He said the company expects increased interest in the third and fourth quarters as midterm-related news develops.
On affiliate negotiations, Ruddy said Newsmax is generally carried in basic distribution packages and has resisted efforts to move news channels into packages or tiers. He said the company renewed with Cablevision, now Optimum Altice, and expects about 250,000 added subscribers as a result.
Asked whether improved ratings are leading advertisers to shift larger national brand budgets to Newsmax, Ruddy said the company saw an increasing number of brands buying ads last year and believes brand advertising is improving. However, he cautioned that advertising revenue does not necessarily move immediately with ratings, noting that marketing spending can have lag effects.
About Newsmax (NYSE:NMAX)
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.
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