Key Takeaways:
Newsmax reported record Q2 revenue of $54.1 million, up 16.5% year over year, and its first quarterly net income since going public.
"This was a milestone quarter for Newsmax," Christopher Ruddy, chief executive officer, said in a statement. "We delivered record revenues and our first quarterly net income since becoming a public company, led by strong growth in affiliate fees and licensing, our highest-margin revenue streams."
Net income reached $2.9 million, or $0.02 a share, versus a net loss of $75.2 million a year earlier, when results were dragged down by legal settlement expenses. Adjusted EBITDA came in at $5.7 million, an improvement of $9.5 million from a loss of $3.8 million in the prior-year quarter. Gross margin widened to 43.1% from 38%.
Broadcasting revenue rose 20.5% to $45.8 million, led by affiliate fees that jumped 81.9% to $13.4 million on new contractual relationships and rate increases that took effect in late 2025 and 2026. Licensing revenue climbed to $4.6 million from $0.7 million a year earlier. Digital revenue slipped 1.3% to $8.3 million, as growth in digital advertising was offset by lower subscription and product sales. Total advertising fell 3.5% to $28.8 million on a tough comparison with election-related demand.
The company ended the quarter with $128.3 million in cash and short-term investments and no debt. It reiterated full-year 2026 revenue guidance of $212 million to $216 million, implying 13% growth at the midpoint of the range.
Shares rose 7.11% to $9.49 in regular trading, then slipped 0.42% after hours to $9.45. The stock has gained 75.7% over the past six months but remains below its 52-week high of $15.94. Two analysts carry an average price target of $18.50, implying roughly 95% upside from the close.
Ruddy pointed to a multi-year AI content partnership with Meta that puts Newsmax content across Meta's apps and devices, the company's first major AI deal. International licensing revenue is expected to reach about $16 million in 2026, up 344% from $3.6 million in 2025, with an annualized run rate of $25 million in 2027. The Q2 launch of Newsmax Poland with Telekom Serbia extended the brand's reach to more than 100 countries.
Chief Financial Officer Darryle Burnham said the revenue mix is shifting toward higher-margin affiliate and licensing streams. "The improvement in our revenue mix, combined with the operating discipline we have established in our second year as a public company, allowed strong top-line growth to flow through to the bottom line," he said.
The profitable quarter signals that the one-time costs of becoming a public company are largely behind Newsmax, leaving a cleaner view of the underlying business. Investors will watch the Q3 earnings call for evidence that affiliate-fee renewals and international licensing can sustain margin expansion without relying on election-year advertising.
This article is for informational purposes only and does not constitute investment advice.
