NMAX — Newsmax, Inc.

Summary of Newsmax Q4 2025 Earnings Call

1. Key Financial Results and Metrics:

• Full Year 2025 Revenue: $189.3 million, up 10.7% year-over-year.
• Broadcast Revenue: Grew 17.3% to $153.3 million, driven by advertising, affiliate fees, subscriptions, and licensing.
• Affiliate Fees: Increased 14.9% to $30.6 million.
• Digital Revenue: Decreased 10.9% to $35.9 million, impacted by a challenging prior year comparison.
• Net Loss: $99.5 million, a 37.8% increase in losses from $72.2 million in 2024, largely due to $78.6 million in legal settlements and increased operational costs.
• Adjusted EBITDA: Loss of $6.5 million, down from a positive $10.2 million in the previous year.
• Cash Position: Ended the year with $131.3 million in cash and short-term investments, debt-free.

2. Strategic Updates and Business Highlights:

• Audience Growth: Reached over 58 million total viewers in 2025; ranked as the fourth highest-rated cable news network.
• Distribution Expansion: Increased international presence to over 100 countries; launched agreements in France, Israel, and Cyprus.
• Multi-Platform Strategy: Continued integration of cable, streaming, and digital platforms, enhancing audience engagement and monetization.
• Newsmax+ Growth: Ended the year with over 260,000 paid subscribers, though subscription growth is viewed as a current challenge.
• Investment in Content: Focused on enhancing programming quality and expanding talent, particularly for streaming services.

3. Forward Guidance and Outlook:

• 2026 Revenue Guidance: Projected between $212 million and $216 million, representing a 13% growth year-over-year.
• Growth Drivers: Expected to be primarily from affiliate fee expansions and not reliant on political advertising.
• Profitability Expectations: Anticipated improvement in operating profile due to reduced legal and public company transition expenses.

4. Bad News, Challenges, or Points of Concern:

• Net Loss Increase: Significant losses attributed to legal settlements and increased operational costs.
• Digital Revenue Decline: Notable decrease in digital revenues, particularly in advertising and subscriptions, due to a lack of election-related boosts.
• Subscription Growth Concerns: Current trajectory of Newsmax+ subscription growth is viewed as a short-term headwind, requiring strategic improvements to enhance engagement and retention.

5. Notable Q&A Insights:

• Market Share Confidence: CEO Chris Ruddy expressed confidence in capturing market share, citing a divided media landscape where Newsmax can thrive alongside Fox News.
• Impact of Elections: CFO Darryle Burnham noted that while political advertising may not significantly contribute to revenue, election cycles drive overall engagement, benefiting viewership.
• Affiliate Fee Dynamics: Discussion on the importance of affiliate fees as a primary revenue driver, with many contracts up for renewal, providing opportunities for increased rates.
• Litigation with Fox: Ruddy addressed ongoing litigation, emphasizing its importance for future negotiations and potential damages.
• International Monetization Strategy: Plans to expand international licensing, with a focus on both direct channel distribution and local language adaptations, indicating potential for future revenue growth.

This summary encapsulates the key points from Newsmax's Q4 2025 earnings call, highlighting financial performance, strategic initiatives, outlook, and challenges faced by the company.