NMAX earnings call summary

Prepared Highlights

• Total revenue of $51.7M, up 14% YoY (CEO, CFO, prepared).
• Broadcast revenue of $43.7M, up 20.8% YoY, driven by affiliate fee and licensing growth (CFO, prepared).
• Digital revenue of $8.0M, down 12.7% YoY, due to declines in advertising, subscription, and product sales (CFO, prepared).
• Advertising revenue of $27.2M, down 5.8% YoY; lower digital advertising partially offset by higher linear cable/satellite ad revenue (CFO, prepared).
• Affiliate revenue of $13.0M, up 75.2% YoY, driven by new contracts and rate increases from late 2025 (CFO, prepared).
• Subscription revenue of $6.4M, down 7.9% YoY; growth in Newsmax+ subscribers offset by lower publication subscription revenue (CFO, prepared).
• Licensing revenue of $3.5M, up from $437K in prior year, due to expanded licensing agreements (CFO, prepared).
• Net loss of $2.2M, an 87.3% improvement from net loss of $17.2M in Q1 2025 (CFO, prepared).
• Adjusted EBITDA of negative $0.4M, a decrease of $0.8M from prior year quarter (CFO, prepared).
• Cash and short-term investments of $129M at quarter end (CEO, prepared).
• Audience reach: 30.4M total viewers, 13.3M adults 35–64; ranked #4 cable news channel, #2 in cable news for adults 35–64 engagement (CEO, prepared).
• Social media followers: 24.7M at quarter end, surpassing 25M in May (CEO, prepared).
• Newsmax2 streaming: sequential news hours growth >22%, improved viewership across all key dayparts (CEO, prepared).
• International: expanded licensing with Telecom Serbia; Newsmax Poland went live (CEO, prepared).
• Official guidance: Full-year 2026 revenue of $212M–$216M, representing 13% growth at midpoint (CEO, CFO, prepared).

Mgmt Quotes

• "Newsmax delivered a strong start to 2026." (CEO)
• "What stands out to me most is the quality of the quarter." (CEO)
• "We are not dependent on any single channel." (CEO)
• "We believe there remains significant white space for independent, reliable values-driven journalism." (CEO)
• "We are particularly encouraged by the quality of this growth, supported by increased reach, deeper engagement across cable, streaming and digital." (CFO)

Prepared Metrics

Q&A Batch (1-2 of 2)

Q1 — Michael Kupinski

• Topic: Ratings growth drivers and sustainability
• Key points:
  • Ratings improvement attributed to multiple factors: Iran conflict starting Feb 28 in Q1, marketing promotion, social media (25 million aggregate followers), lineup changes (Carl Higbie to 6 p.m., Greta to 4 p.m.), and upcoming primaries (Texas end of May, California governor race) and Senate elections.
  • Pay TV distribution: renewed with Optimum Altice, adding ~0.25 million subscribers; overall pay TV declining, streaming increasing; Paramount/Pluto TV moved Newsmax up in news guide.
  • Brand advertising improving but not linearly tied to ratings; historical lag effects between ratings growth and revenue.
• Mgmt stance: Neutral — sustainability depends on cyclical news cycles (war lulls, elections), but momentum in reach and engagement is encouraging; no guarantee of immediate ad revenue.

Q2 — Thomas Forte

• Topic: Ratings and social media growth drivers and sustainability
• Key points:
  • Ratings drivers: Iran war in Q1, political primaries (congressional, Senate, gubernatorial), marketing/social media efforts, scheduling changes (Carl Higbie to nighttime).
  • Social media growth: ~15-person team; Amplify studies show highest or among highest engagement for news in category; younger demo on TikTok and Instagram attracted by political interest (e.g., Donald Trump).
• Mgmt stance: Bullish — social media team effective, content quality drives engagement; younger audience interest in politics seen as sustainable.