Newsmax (NYSE:NMAX) Issues Quarterly Earnings Results, Beats Expectations By $0.14 EPS

Newsmax (NYSE:NMAX) posted its earnings results on Thursday. The company reported $0.12 EPS for the quarter, topping analysts’ consensus estimates of ($0.02) by $0.14, FiscalAI reports. The business had revenue of $55.00 million during the quarter. Newsmax had a negative net margin of 3.15% and a negative return on equity of 8.28%.

Here are the key takeaways from Newsmax’s conference call:

• Newsmax reported record third-quarter revenue of $69 million, up 52.5%, including a non-recurring $14 million termination fee. Excluding that item, revenue was a record $55 million, up 21.6%, and adjusted EBITDA was $5 million, marking a second consecutive positive quarter.
• Affiliate revenue rose 77.4% to $14.3 million, while licensing revenue increased 343%. Management expects about $16 million in international licensing fees this year and estimates annualized licensing revenue of approximately $25 million next year.
• The company maintained its underlying 2026 revenue outlook of $212 million–$216 million, representing 13% growth at the midpoint; including the one-time fee, guidance is $226 million–$230 million. Newsmax ended the quarter with $137.6 million in cash and short-term investments and no debt.
• Digital revenue declined 4.1% to $8.3 million, and subscription revenue fell 12% amid lower new-customer acquisition; product sales and digital advertising also weakened. Management said Newsmax+ engagement is improving but acknowledged subscription revenue remains an area under development.
• Management sees affiliate fees and licensing as structural growth drivers, while also pointing to potential audience and engagement gains heading into the 2028 election cycle. Its outlook for election-related benefits is forward-looking, and executives noted that midterm political advertising typically provides limited direct benefit to a national cable network.

Newsmax Stock Down 5.7%

NMAX traded down $0.45 during trading on Thursday, hitting $7.29. The company’s stock had a trading volume of 1,042,409 shares, compared to its average volume of 710,595. Newsmax has a one year low of $5.11 and a one year high of $12.11. The business’s 50 day simple moving average is $9.47 and its 200-day simple moving average is $8.02.

Insider Buying and Selling at Newsmax

In other news, major shareholder Conyers Investments Llc sold 282,063 shares of the business’s stock in a transaction on Monday, September 14th. The shares were sold at an average price of $11.55, for a total transaction of $3,257,827.65. Following the completion of the sale, the insider owned 22,051,478 shares of the company’s stock, valued at $254,694,570.90. The trade was a 1.26% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. In the last 90 days, insiders have sold 494,886 shares of company stock worth $5,611,995. Company insiders own 61.03% of the company’s stock.

Institutional Investors Weigh In On Newsmax

Hedge funds and other institutional investors have recently modified their holdings of the stock. Ieq Capital LLC grew its holdings in Newsmax by 3.1% during the third quarter. Ieq Capital LLC now owns 184,906 shares of the company’s stock valued at $1,999,000 after purchasing an additional 5,630 shares during the period. Bank of New York Mellon Corp lifted its holdings in Newsmax by 5.0% during the first quarter. Bank of New York Mellon Corp now owns 110,775 shares of the company’s stock valued at $578,000 after purchasing an additional 5,283 shares in the last quarter. Kestra Advisory Services LLC lifted its holdings in Newsmax by 6.9% during the first quarter. Kestra Advisory Services LLC now owns 41,747 shares of the company’s stock valued at $218,000 after purchasing an additional 2,697 shares in the last quarter. Cetera Investment Advisers boosted its position in shares of Newsmax by 5.1% in the first quarter. Cetera Investment Advisers now owns 35,302 shares of the company’s stock worth $184,000 after purchasing an additional 1,725 shares during the period. Finally, Entropy Technologies LP boosted its position in shares of Newsmax by 54.7% in the first quarter. Entropy Technologies LP now owns 35,280 shares of the company’s stock worth $184,000 after purchasing an additional 12,480 shares during the period.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the company. Weiss Ratings restated a “sell (e+)” rating on shares of Newsmax in a research note on Friday, October 2nd. Freedom Broker upgraded Newsmax to a “hold” rating in a research report on Wednesday, October 14th. Finally, Wall Street Zen downgraded Newsmax from a “buy” rating to a “hold” rating in a report on Saturday, October 17th. One research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Reduce”.

About Newsmax

Newsmax is a multimedia news company that produces and distributes news, opinion and lifestyle content. Its offerings include the Newsmax television network, digital news and video platforms, and print publications such as Newsmax magazine. Founded in 1998 by Christopher Ruddy, the company is based in Boca Raton, Florida. Ruddy serves as Newsmax’s chief executive officer. Newsmax reaches audiences in the United States and abroad through television distribution and its digital platforms, which provide news coverage, commentary and other programming.