0002026478-26-000026
SEC filingRevenue grew 10.7% to $189.3M, but net loss widened to -$99.5M due to settlement costs and rising expenses.
Newsmax Inc. is a holding company that owns 100% of the equity interests of its operating company Newsmax Media, Inc. The company describes itself as a television broadcaster and multi-platform content publisher that produces original news and editorial content for consumers through various media outlets, including TV news channels, digital and print publications, its website Newsmax.com and affiliated sites, its syndicated radio show and podcasts, social media accounts, and other platforms. It sells advertising to third-party marketers and offers paid subscriptions to more than a dozen digital and print products.
The company operates two reportable segments: Broadcasting and Digital. In 2025, the Broadcasting segment generated $153.3 million in revenue (approximately 81% of total), while the Digital segment generated $35.9 million (approximately 19%). The Broadcasting segment produces and licenses news, business news, and lifestyle content for distribution through MVPDs including cable television systems, direct broadcast satellite operators, and telecommunication companies, primarily in the United States. It includes three linear channels—Newsmax, Newsmax2 (a FAST channel), and World at War (historical documentaries)—as well as Newsmax Radio with syndicated shows like The Rob Carson Show and podcasts. The Digital segment generates revenue through online advertising, subscriptions (including health and financial newsletters, Newsmax Magazine, and four online membership programs), and e-commerce, primarily through subsidiaries including Humanix Publishing (books), Medix Select (22 nutraceutical products), Crown Atlantic Insurance (life insurance and retirement solutions), and ROI Media Strategies (media buying services).
Key products and platforms include the Newsmax linear cable news channel, Newsmax2 FAST channel, World at War channel, Newsmax+ subscription streaming service, Newsmax.com and affiliated websites drawing over eight million unique monthly visitors, more than five million email opt-in subscribers, approximately seven million subscribers to push/SMS alerts, and 23 million social media followers across platforms including Facebook, X, YouTube, Truth Social, and others. The Newsmax app has been downloaded over 20 million times. The digital segment also offers 10 specialized health and financial newsletters, Newsmax Magazine, and nutraceutical products from Medix Select.
The company distributes content through linear cable and satellite MVPDs, OTT streaming platforms (Roku, Samsung, Vizio, Xumo, Pluto, etc.), and digital channels. Newsmax Broadcasting content is carried by all major linear MVPDs including DirecTV, Dish, Comcast/Xfinity, Charter/Spectrum, and Verizon, making content available to over 100 million homes in the U.S. International distribution is achieved through licensing agreements; the Newsmax brand is now available in more than 100 countries across five continents, with new agreements in 2025 with Free TV in France, HOT in Israel, PrimeTel in Cyprus, and a planned launch of Newsmax Ukraine in 2026. In the Caribbean and Latin America, Newsmax has a distribution agreement with Supercanal in the Dominican Republic including Spanish dubbing (Newsmax en Español). The company does not disclose any customer concentration.
Newsmax Broadcasting's primary competition comes from cable networks FOX News, CNN, HLN, MSNBC, and NewsNation. Online competitors include Foxnews.com, CNN.com, Politico.com, WashingtonExaminer.com, NBCNews.com, NYTimes.com, CNBC.com, Bloomberg.com, and The Wall Street Journal Online. The company competes for advertising based on audience size and demographics, ratings from third-party research, network quality, and brand appeal. According to Kagan data cited in the filing, Fox News, CNN, CNBC, Fox Business, and MSNOW have average monthly affiliate fees per subscriber of $2.67, $1.31, $0.66, $0.41, and $0.39 respectively, which the company notes as potential revenue growth opportunity given its audience numbers.
The company's stated goals and strategies include: (1) maintaining and enhancing its leading position in news and other content production through talent acquisition and programming that raises profile and visibility; (2) increasing revenue growth through continued delivery of premium content via diversified publishing platforms; and (3) expanding television and digital distribution offerings to maximize subscriber penetration on traditional cable, grow the Newsmax+ subscription base, increase audiences for news channels, develop international markets, and create additional advertising revenue opportunities.
As of December 31, 2025, the company employed approximately 500 full-time employees, with the vast majority based in the United States. The company also employs freelance and temporary contract workers for production and broadcast support. All employees are employed by Newsmax Media. The company reports key human capital initiatives including recruitment based on experience and ability without regard to race, gender, sexual orientation, age, or religion; competitive pay and benefits including medical, dental, vision, telemedicine, pharmacy benefits, flexible spending accounts, health savings accounts, 401(k) matching, paid holidays and time off; and remote work options. The company also emphasizes workplace civility, anti-harassment, and anti-discrimination policies.
For the year ended December 31, 2025, Newsmax reported total revenue of $189.3 million, a 10.7% increase from $171.0 million in the prior year. The growth was led by broadcast advertising (+$14.9 million) on higher Nielsen ratings and pricing, affiliate fees (+$4.0 million) from new contracts and rate renewals, and subscription growth (+$2.5 million) from Newsmax+. Cost of revenues rose 23.4% to $114.8 million, outpacing revenue, driven by a $13.5 million increase in payroll and production, $7.0 million in stock-based compensation, and $1.5 million in transmission costs. Consequently, gross profit fell 4.6% to $74.4 million, and gross margin contracted 630 basis points to 39.3%. General and administrative expenses surged 17.9% to $174.3 million, largely from legal settlements (including $78.6 million in other corporate matters), higher marketing, and public-company readiness costs. Net loss widened to -$99.5 million from -$72.2 million, a 37.9% increase.
Broadcasting remained the primary growth driver, with revenues up 17.3% to $153.3 million, fueled by advertising (+16.7%), affiliate fees (+14.9%), and subscriptions (+20.2%). However, its segment adjusted EBITDA declined 45.6% to $10.7 million as cost of revenues rose 21.8% and G&A increased 40.4% due to talent investments, programming expansion for Newsmax2, and legal/audit fees. The Digital segment saw a 10.9% revenue decline to $35.9 million, attributed to post-election advertising softness and lower subscription conversions. Digital adjusted EBITDA worsened to -$17.2 million from -$9.5 million, driven by higher headcount and audit costs. Product sales in Digital increased 20.7% to $7.3 million, partly offsetting the decline.
Management highlighted strategic priorities: expanding Newsmax+ subscriptions, deepening MVPD penetration, growing international licensing, and investing in programming for Newsmax2 FAST channels. The company expects these investments to drive advertising and affiliate revenue growth. Legal settlement obligations—$20 million due by January 15, 2026, and $20 million by January 15, 2027—remain a liquidity overhang, though cash and equivalents of $20.4 million and $110.9 million in investments, plus $66.4 million from the March 2025 IPO, are deemed sufficient for 12-month needs. Adjusted EBITDA turned negative at -$6.5 million vs. +$10.2 million in 2024, reflecting transition costs. No specific revenue or margin guidance was provided.
As of December 31, 2025, Newsmax held $20.4 million in cash and cash equivalents and $110.9 million in investments—comprising $20.2 million in equity securities, $90.3 million in debt securities, and $0.4 million in crypto assets. The company had zero outstanding debt on its lines of credit. Shareholders' equity swung to a positive $106.0 million from a deficit of $137.6 million a year earlier, driven by the $204.2 million recapitalization and conversion of preferred stock into common equity. A $40.0 million escrow account secures the Dominion settlement, with $20.0 million current and $20.0 million non-current. The carrying amount of the total settlement liability is $69.6 million, though the present value is $38.1 million for Dominion and $24.9 million for a separate commercial settlement.
Firm talent agreements total $16.2 million as of December 31, 2025: $9.8 million due within one year, $5.2 million in years 1–3, and $1.2 million beyond three years. Settlement agreements require aggregate payments of $69.6 million, with $26.6 million in 2026, $25.0 million in 2027, $4.3 million in 2028, and $13.7 million in 2029. Operating lease obligations are $10.2 million over terms up to 2030.
The company invested $2.7 million in property and equipment during 2025. There were no share buybacks, dividends, or debt activity during the period. A $1.2 billion Standby Equity Purchase Agreement with Yorkville was entered in April 2025, with no draws as of year-end. The company also established lines of credit totaling $9.0 million, with no borrowings outstanding.
Newsmax reports two operating segments: Broadcasting and Digital. Broadcasting generated $153.3 million in revenue (81% of total) with Segment Adjusted EBITDA of $10.7 million. Digital contributed $35.9 million in revenue but posted a negative Segment Adjusted EBITDA of ($17.2 million). Combined adjusted EBITDA for reportable segments was a loss of $6.5 million, down from positive $10.2 million in 2024. The decline reflects higher litigation costs ($78.6 million in 'other corporate matters') and stock-based compensation of $12.0 million. No geographic breakdown was provided.
Newsmax has a history of net losses and expects to continue incurring operating losses while executing its growth strategy. The company's ability to achieve profitability depends on sustaining substantially increased revenues amid industry headwinds. A material weakness in internal control over financial reporting was identified, including deficiencies in IT controls, journal entry review, and account reconciliations. Remediation is ongoing, but failure could impair accurate financial reporting and investor confidence.
The shift in consumer behavior toward digital streaming and ad-free platforms poses a significant threat to traditional linear TV viewership and advertising revenue. Newsmax's reliance on MVPD affiliates for distribution exposes it to declining subscriber bases and increased negotiating leverage by consolidating distributors. Competition for audiences and advertising is intense, with digital platforms (SVOD, AVOD, social media) capturing share. The nascent OTT advertising market may develop slower than expected.
Newsmax has incurred substantial defamation-related settlements: $67 million to Dominion Voting Systems (payable over three years) and $40 million to Smartmatic. Additional litigation is possible. The company faces complex privacy regulations (CCPA, GDPR, UK GDPR) and potential changes to U.S. communications laws, including network neutrality and political advertising restrictions, which could adversely affect operations.
The company is controlled by CEO Christopher Ruddy, who holds ~81.5% of voting power through dual-class stock. This concentrated control may deter takeovers, affect index eligibility (e.g., FTSE Russell, S&P), and lead to lower stock price. The company qualifies as a 'controlled company' under NYSE rules, exempting it from certain governance requirements. Future sales of shares could cause dilution.
The provided excerpt from Newsmax Inc.'s 10-K filing (Filing Date: 2026-03-26) does not include the Consolidated Statements of Cash Flows. The document contains the auditor's report, balance sheets, and income statement, but the cash flow statement (referenced as page F-7) is absent. As a result, no cash flow metrics such as operating cash flow, investing activities, financing activities, capex, or free cash flow can be extracted. Without this data, an assessment of cash flow quality, CFO vs net income trends, capex intensity, or capital returns is impossible. The user should refer to the full filing for the cash flow statement.