0002026478-26-000048
SEC filingRevenue grew 14% YoY to $51.7M, driven by affiliate fee and licensing; net loss narrowed to $2.2M.
Revenue for Q1 2026 increased 14.0% YoY to $51.7 million, driven primarily by growth in affiliate fee and licensing revenues, which rose 75.2% and 697%, respectively. Affiliate fees benefited from new contractual relationships and rate increases implemented in late 2025 and 2026. Licensing revenue surged $3.0 million due to an amendment of an international agreement in February 2026. These gains were partly offset by a 5.8% decline in advertising revenue to $27.2 million, reflecting lower digital ad revenue and reduced linear cable and satellite advertising compared to the prior-year period that benefited from election-related demand. Subscription revenue fell 7.9% to $6.4 million, impacted by lower new customer acquisition.
Gross profit increased modestly by 2.4% to $19.9 million, but gross margin contracted to 38.6% from 43.0% as cost of revenues grew faster (22.8% vs. 14.0% revenue growth). Higher production costs, programming investments, stock-based compensation, and ad platform costs drove the increase. General and administrative expenses decreased 21.4% to $24.4 million, primarily due to a reduction in legal expenses from settling legal matters in 2025. Other income (expense), net swung to positive $2.3 million from -$5.7 million, driven by interest and dividend income and lower one-time expenses related to becoming a public company. Consequently, net loss improved to $2.2 million from $17.2 million.
The Broadcasting segment, comprising linear TV and streaming, generated $43.7 million in revenue, up 20.8% YoY. Growth was led by affiliate fees (+$5.6M) and licensing (+$3.0M), partially offset by slight declines in advertising and subscription. Broadcasting Segment Adjusted EBITDA rose 24.3% to $4.0 million, despite higher production and programming costs. The Digital segment revenue declined 12.7% to $8.0 million, driven by lower advertising and subscription revenue. Digital Segment Adjusted EBITDA worsened to -$4.3 million from -$2.7 million, reflecting revenue shortfalls and increased personnel and marketing expenses.
Management highlighted continued investment in Newsmax 2 for OTT and international expansion, including the launch of Newsmax Ukraine in February 2026. The company maintains a strong liquidity position with $17.2 million cash and $111.9 million in investments, and expects to meet operating requirements for the next 12 months. No forward guidance was provided. Notable is the remaining $20 million Dominion settlement installment due January 2027, which is fully funded in escrow.
As of March 31, 2026, Newsmax held $17.2M in cash and cash equivalents, plus $111.9M in investments (primarily U.S. Treasury securities and equity securities). An additional $20.0M is held in escrow for the Dominion settlement, with $20.0M released during Q1 2026. Total current assets were $200.1M, while total assets stood at $226.3M. The company has no outstanding debt on its two lines of credit (total availability $9.0M). Shareholders' equity was $107.0M, up slightly from $106.0M at year-end 2025, driven by stock-based compensation partially offset by net loss and other comprehensive loss.
The Notes disclose two significant settlement agreements: (1) a $67.0M Dominion settlement with $20.0M remaining due by January 15, 2027, and (2) a $41.3M commercial counterparty settlement with $28.3M remaining. Combined future settlement payments total $48.3M, with $5.0M due in 2026, $24.8M in 2027, $4.2M in 2028, and $14.3M in 2029. Additionally, the company has $15.4M in firm talent agreement commitments through 2028, with $8.5M due in 2026. Operating lease obligations total $9.1M in future payments, with $3.2M due in 2026.
Newsmax has a $6.5M share repurchase liability on the balance sheet, but no new buyback activity was disclosed for Q1 2026. No dividends were paid or declared during the period. The company has no debt outstanding. Capital expenditures were $0.2M for the quarter. A $1.2B Standby Equity Purchase Agreement (SEPA) with Yorkville was entered into on April 4, 2025, but no shares were purchased under the agreement during Q1 2026. Stock-based compensation totaled $3.4M, with $6.5M in unrecognized compensation cost expected to be recognized over 0.5 years.
The company operates two reportable segments: Broadcasting and Digital. Broadcasting revenue was $43.7M (up 20.8% YoY), driven by strong affiliate fee growth ($13.0M vs $7.4M) and licensing revenue ($3.5M vs $0.4M). Broadcasting Segment Adjusted EBITDA was $4.0M (9.1% margin). Digital revenue declined 12.7% to $8.0M, with decreases in advertising ($3.5M vs $4.3M) and subscription ($3.0M vs $3.3M). Digital Segment Adjusted EBITDA was -$4.3M (-54.3% margin). No geographic segment data is disclosed.