Newsmax (NYSE:NMAX) reported third-quarter revenue of $69 million, boosted by a $14 million one-time payment, as higher affiliate fees and licensing revenue helped the company post its second consecutive quarter of positive adjusted EBITDA excluding the payment.
Revenue rose 52.5% from a year earlier. Excluding the nonrecurring payment, revenue increased 21.6% to a record $55 million, Chief Financial Officer Darryle Burnham said on the company’s earnings call. Adjusted EBITDA was $19 million, or $5 million without the payment, compared with a loss of $0.9 million a year earlier.
The company reported net income of $15.2 million, or $0.12 per share, compared with a net loss of $4.1 million, or $0.03 per share, in the prior-year quarter. The improvement reflected higher revenue, growth in affiliate and licensing fees, and lower legal expenses, partly offset by investment in programming and production, Burnham said.
Affiliate and Licensing Growth
Affiliate revenue rose 77.4% to $14.3 million, driven by new contractual relationships and rate increases that took effect in late 2025 and 2026. CEO Chris Ruddy said renewals are being negotiated at higher rates in multiyear agreements, establishing a higher revenue base for future years. Newsmax also added six independent cable operator affiliates during the quarter.
Licensing revenue rose to $5.4 million. Ruddy said the company is on track to collect approximately $16 million in international licensing fees in 2026 under agreements already signed and estimates annualized licensing revenue of approximately $25 million next year.
Burnham said the digital segment recorded $0.6 million in revenue from media and artificial intelligence content agreements, creating a licensing line in that segment for the first time. Ruddy highlighted a multiyear AI content partnership with Meta signed in July.
Gross margin expanded to 55.3%, or 44% excluding the one-time payment, from 35.3% a year earlier. Burnham attributed the improvement to a shift toward higher-margin affiliate and licensing revenue.
One-Time Payment and Outlook
The $14 million payment resulted from an amendment to an advertising purchase agreement that modified the parties’ remaining rights and obligations, Burnham said. Newsmax recorded it as a service revenue termination fee in its broadcast segment rather than as advertising revenue.
Broadcasting revenue rose 65.9% to $60.7 million, including the payment. Excluding it, broadcasting revenue increased 27.6% to $46.7 million. Total advertising revenue rose 1.9% to $28.1 million, as higher cable and satellite advertising partly offset lower digital advertising.
Newsmax maintained its full-year underlying revenue guidance of $212 million to $216 million. Including the one-time payment, its forecast is $226 million to $230 million. The company ended the quarter with $26.7 million in cash and $110.8 million in short-term investments, and no debt, Burnham said.
Streaming and Digital Strategy
Digital segment revenue fell 4.1% to $8.3 million, as lower subscription revenue, product sales and digital advertising more than offset the new media and AI licensing revenue. Companywide subscription revenue declined 12% to $6.1 million, primarily because of lower new customer acquisition.
Ruddy said Newsmax+ average engagement time per account rose 19% year over year, and its catalog has grown to more than 700 licensed and original documentaries and specials. He said the company is investing in content and has hired outside firms to help grow subscribers. During the question-and-answer session, Ruddy said the additional content is intended to encourage subscribers to stay with the $50-a-year service.
Asked whether a sale of the digital segment could make sense given its revenue declines, Burnham said the business remains strategically important because it allows Newsmax to reach customers and cross-promote products beyond its broadcast network. Ruddy said declines in legacy newsletters are part of a broader plan to focus resources elsewhere.
Election Cycle and Radio Expansion
Ruddy said Newsmax typically benefits from greater engagement and revenue in the two years leading up to a presidential election. He noted that midterm advertising spending primarily goes to local outlets, while the company expects to benefit more from advertising during the 2028 presidential cycle.
Newsmax has also agreed to acquire two Miami radio stations, including Spanish-language station Radio Mambí. Ruddy said the stations could provide a base for radio, social media and podcast content aimed at Spanish-speaking audiences. He said the purchase was not necessarily part of a larger acquisition strategy, although the company remains open to ideas.
About Newsmax (NYSE:NMAX)
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.
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