Newsmax Inc.
11/13/2025 | Press release | Distributed by Public on 11/13/2025 15:10
Quarterly Report for Quarter Ending September 30, 2025 (Form 10-Q)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following "Management's Discussion and Analysis of Financial Condition and Results of Operations" should be read in conjunction with the unaudited consolidated financial statements for the three and nine months ended September 30, 2025 and the audited consolidated financial statements for the year ended December 31, 2024, and other information included elsewhere in this Quarterly Report. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from such forward-looking statements. Factors that could cause or contribute to those differences include, but are not limited to, those identified below and those discussed in the sections entitled "Risk Factors" and "Cautionary Statement Regarding Forward-Looking Statements" included elsewhere in this Quarterly Report and our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 as may be amended, supplemented or superseded from time to time by other reports we file with the SEC. Additionally, our historical results are not necessarily indicative of the results that may be expected in any future period.
Overview of the Company's Business
Founded in 1998 as a digital media brand, Newsmax Inc. entered the cable news market in 2014. Since then, the network has had an astonishing rise, climbing into the top tier of cable channels, and has remained the fourth highest-rated cable news channel in the United States, just behind CNN. According to Nielsen, Newsmax Inc. was the only cable news channel to see ratings growth across all day parts in 2025, with prime-time up 42% in total viewers. Q1 2024 also saw an impressive 137% rise in prime-time ratings, compared to the same period last year.
We have developed a significant audience, reaching over 40 million Americans each month through our television broadcasts and multi-platform content, and we have demonstrated remarkable growth with revenues up 309% since 2019.
In June 2024, a Reuters global survey of media found Newsmax Inc. was one of the nation's "top news brands," identifying the network as one of only 12 major media outlets Americans are turning to regularly.
Newsmax Inc. is a holding company that owns 100% of the equity interests of its operating company Newsmax Media and the other Subsidiaries operate the businesses described in this Quarterly Report, and none of those businesses are operated by Newsmax Inc.
Newsmax Inc. is a television broadcaster and multi-platform content publisher that produces original news and editorial content for consumers through various media outlets, including through its TV news channels, digital and print publications, its popular website Newsmax.com and affiliated sites, its syndicated radio show and podcasts and other platforms in order to sell advertising to third-party marketers as well as offering paid subscriptions to more than a dozen digital and print products sold by Newsmax Media. Newsmax Media content is carried by all major linear cable and satellite pay TV platforms, or multichannel video programming distributors ("MVPDs") for the Newsmax channel, and most over the top ("OTT") streaming platforms for its free ad-supported streaming television service ("FAST") channel Newsmax2, making Newsmax Media content available to over 100 million homes in the U.S. In addition, international companies have licensed Newsmax Media's channels and brand for regional, national and local television and digital media purposes. Certain licensing agreements currently in place have allowed Newsmax Media's partners to provide cable television and digital news under the Newsmax Media brand to viewers in eastern Europe.
Newsmax Inc. operates several business lines through its subsidiaries and divisions, creating a synergistic effect on audience growth, revenues and customer acquisition. These business lines are grouped into 2 separate reportable segments which consist of Broadcasting and Digital:
•Broadcasting- The broadcast segment of our business produces and licenses news, business news and lifestyle content for distribution primarily through MVPDs including cable television systems, direct broadcast satellite operators and telecommunication companies, primarily in the United States, generating revenue through (1) placement of advertisements on our broadcast content, (2) subscriptions to our broadcast content, and (3) affiliate fees from the MVPDs. The components of Broadcasting are as follows:
•Newsmax Broadcasting LLC provides programming through three channels, Newsmax, Newsmax2, and World at War. Newsmax and World at War are linear cable channels available on pay TV services, and Newsmax2, is a free streaming channel. Both Newsmax and Newsmax2 offer 24/7 television news and informational programming channels which are distributed through both cable and digital streaming platforms. World at War offers 24/7 historical documentaries and movies that have a primary focus on the wars of the past 150 years and the people who fought them.
•Newsmax Radio LLC provides programming through a syndicated radio show as well as widely-available podcasts. These podcasts include "The Newsmax Daily with Tony Marino," a talk show with radio personality Gerry Callahan and "Greg Kelly Reports" with its TV host Greg Kelly.
•Digital- The digital segment generates revenues through (1) online advertising, including online display, email advertising, other online placements and print advertisements, (2) subscriptions, including our collection of specialized health and financial newsletters, Newsmax Magazine and four online membership programs, and (3) e-commerce, primarily through our subsidiaries that sell nutraceuticals and nonfiction books on political, financial and health-related topics. The components of Digital are as follows:
•Humanix Publishing LLC is a print and e-book publishing house that publishes books in the areas of politics, health, personal finance, history, religion and current affairs. Under Newsmax ownership, Humanix Publishing has published approximately 100 titles, including a New York Times bestseller. We use published books as free premiums when offering subscriptions to their publications, including Newsmax Magazine and their health and financial newsletters.
•Medix Health, LLC offers and sells 21 nutraceutical products. Medix Health's products are aimed at Newsmax Media's core demographic of consumers and cross-sold through Newsmax Media's health newsletters. These supplements have been certified as compliant with current Good Manufacturing Practices by The Natural Products Association and are typically formulated by medical doctors who also write and edit Newsmax Media's health newsletters. Newsmax Media retains all intellectual property rights to the supplement formulations created for Medix Health. The natural supplements seek to help customers alleviate pain, reduce blood glucose, prevent heart disease, improve energy and mental acuity, and, in general, improve overall wellness. All Medix Health supplements are manufactured at third-party manufacturing facilities that are FDA registered and meet current Good Manufacturing Practices standards. All Medix Health supplements are offered online and are usually purchased as part of a recurring subscription program.
•Newsmax Digital Advertising handles advertising and marketing offers and sales to third party companies and agencies associated with our digital segment. Newsmax Digital Advertising sells placements for display and native website ads, email sponsorships in Newsmax News Alerts, sponsorships for SMS/text and push notification, print ads for our magazine, inserts for our newsletters, and podcast offerings.
•Newsmax Publications publishes and manages Newsmax Media's paid subscription business. This subsidiary currently publishes Newsmax Magazine, five health newsletters including Health Radar, Dr. Crandall's Heart & Health; The Blaylock Wellness Report; financial newsletters including The Dividend Machine, High Income Factor and Financial Intelligence Report, and Newsmax Platinum, our online publication. This subsidiary has over 300,000 subscribers to its paid publications.
•ROI Media Strategies LLC provides media buying and strategy services to third party companies and agencies, helping small companies to market their offerings across all channels of marketing, including email, broadcast, podcasts, digital, and print.
•Crown Atlantic Insurance LLC is an insurance agency licensed in 50 states of the U.S. and the District of Columbia with an emphasis on life insurance and retirement solutions. Newsmax Media's subsidiaries use Crown Atlantic Insurance LLC for the purposes of marketing annuities, life insurance and other insurance offerings across their platforms.
Growth Strategies and Outlook
Maintain and enhance leading position in news and other content production.
Newsmax Media has been a leader in digital news and with the continued growth of its television service, plans to continue to invest in talent acquisition and programming that we expect to raise the profile and visibility of Newsmax Media to a broader audience. With expanded content offerings, Newsmax Media plans to expand its reach and value to audiences through traditional platform and direct-to-consumer services.
Increase revenue growth through the continued delivery of premium content.
Newsmax Media will continue to focus on creating high-quality content delivered through diversified publishing platforms that offers value to its audience, advertisers and distribution partners. As a live linear content service, Newsmax Media seeks to offer a unique perspective and voice that resonates with audiences across those platforms and further develop a dedicated and loyal audience.
Expand television and digital distribution offerings, increasing complementary sources of revenues.
•Newsmax Media's key goals are to maximize its subscriber penetration on traditional cable platforms, growing its subscription base for Newsmax+, increasing audiences for its news channels, develop its footprint in international markets - all while creating additional revenue opportunities through advertising sales. Newsmax Media will also further develop its delivery strategies on emerging content and social platforms to increase interaction with its audience.
•Newsmax, as a relatively new network, has potential for additional distribution growth, and growth of its advertising revenue as well as affiliate fees, which is a revenue stream that started in 2023, where previously we paid for distribution. Linear TV is primarily driven by live sports, news and events, and as media companies continue to focus on expanding their streaming service offerings, news consumption has risen in importance.
Trends and Other Factors Impacting Our Performance
Our broadcast segment derives the majority of its revenues from advertising. For the three months ended September 30, 2025, the Company generated revenues of approximately $45.3 million, of which 60.9% was generated from advertising in the broadcast and digital segments, 17.8% was generated from affiliate fee revenue, 15.2% was generated from subscriptions for publications including Newsmax+ and 6.1% was generated from other lines of business which are primarily e-commerce sales of nutraceuticals, books and licensing fees.
For the three months ended September 30, 2024, we generated revenues of $43.5 million, of which approximately 64.4% was generated from advertising in the broadcast and digital segments, approximately 15.1% was generated from affiliate fees, approximately 15.8% was generated from subscriptions for publications including Newsmax+, approximately 4.6% was generated from other lines of business which are primarily e-commerce sales of nutraceuticals, books and licensing fee.
Affiliate fees are a revenue stream that started in November 2023 that primarily include (i) monthly subscriber-based license and retransmission consent fees paid by programming distributors that carry the Newsmax channel. Our revenues are impacted by rate changes, changes in the number of subscribers to MVPD's and changes in the expenditures by advertisers.
The cable network programming and television industries continue to evolve rapidly, with changes in technology leading to alternative methods for the delivery and storage of digital content. These technological advancements have driven changes in consumer behavior as consumers now have more control over when, where and how they consume content. Consumer preferences have evolved toward lower cost alternatives, including direct-to-consumer offerings. These changes in technologies and consumer behavior have contributed to declines in the number of subscribers to MVPD services, and these declines are expected to continue and possibly accelerate in the future.
At the same time, technological changes have increased advertisers' options for reaching their target audiences. There has been a substantial increase in the availability of content with reduced advertising or without advertising at all. As consumers switch to digital consumption of video content, there is still to be developed a consistent, broadly accepted measure of multiplatform audiences across the industry. Furthermore, the pricing and volume of advertising may be affected by shifts in spending from more traditional media and toward digital and mobile offerings, which can deliver targeted advertising more promptly, or toward newer ways of purchasing advertising.
We operate in a highly competitive industry and its performance is dependent, to a large extent, on the impact of changes in consumer behavior as a result of new technologies, the sale of advertising, the maintenance, renewal and terms of its carriage, affiliation and content agreements and programming rights, the popularity of its content, general economic conditions (including financial market conditions), our ability to manage the businesses effectively, and its relative strength and leverage in the industry. For more information, see "Risk Factors."
Components of our Results of Operations
Revenue Recognition
In accordance with Accounting Standards Codification ("ASC") 606, "Revenue from Contracts with Customers," we recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration we expect to be entitled to in exchange for those goods and services.
Advertising Revenue
Advertising revenue is derived from the sale of advertising on our cable television, email database, in our magazine and related publications, or on our website. Revenue related to the sale of advertising in the broadcast segment is recognized at the time of broadcast. Revenue related to our digital segment is recognized when display or other digital advertisements record impressions on the various digital media. Revenue related to our magazine and related publications is recognized when the ad is displayed in the printed document. Each advertisement insertion order is determined to be a distinct performance obligation that is satisfied at the point in time when such advertisements are published/aired. We record revenue from contracts that are entered into between us and our customers, primarily advertising agencies and direct advertisers, at the amount charged for the services. Advertising contracts, which are generally short-term, are billed monthly for the services provided during the month, with payments due shortly thereafter. Cash payments received prior to services rendered result in deferred revenue, which is then recognized as revenue when the advertising time or space is actually provided.
We enter into agreements with over-the-top distribution platforms to distribute our news channel. Pursuant to our distribution agreements, advertising revenues are earned based on an allocation of the fee determined by the number of impressions received. These contracts represent a single performance obligation recognized over time under the series guidance. Revenue is recognized upon delivery of the content over the course of an over-the-top distribution agreement term based on time elapsed, as this best depicts the simultaneous consumption and delivery of the services. We bill OTT customers monthly over the life of the contract. We have an unconditional right to receive payment of the amount billed generally within 30 to 90 days from the invoice date. The invoiced amount to be received is recorded in accounts receivable on our condensed consolidated balance sheets.
Affiliate Fee Revenue
We generate affiliate fee revenue from agreements with MVPDs for cable network. Affiliate fee revenue is recognized as we continuously make the programming available to the customer over the term of the agreement. For contracts with affiliate fees based on the number of the affiliate's subscribers, revenues are recognized based on the contractual rate multiplied by the estimated number of subscribers each period. Affiliate contracts are generally multi-year contracts billed monthly with payments due shortly thereafter.
Subscription Revenue
We sell magazines to consumers through subscriptions. Each subscription is determined to be a distinct performance obligation that is satisfied over the term of the subscription, normally one (1) to five (5) years. Payments for subscriptions received in advance of the publication are recorded as deferred revenue and recognized as income over the term, as this best represents the transfer of control of the services to the consumer. We record taxes collected from customers and remitted to governmental authorities on a net basis.
In 2023, we launched Newsmax+ which is a subscription service that provides our broadcast content directly to consumers either on a monthly or annual basis. Monthly subscriptions are recognized as income in the month it was earned. Annual subscriptions are recorded as deferred revenue and recognized as income over the term of the contract each month.
Product Sales
Product sales are derived from the sales of books, audio and video, dietary supplements, television production and distribution, and other items advertised on our website. Supplement, books, media and other product sales are recognized at the point in time control transfers to the customer, which is when the product is shipped. Allowances are considered for estimated returns and refunds at the point in time when revenue is recognized. We record taxes collected from customers and remitted to governmental authorities on a net basis.
As a practical expedient, we recognize any incremental costs of obtaining contracts as expense as the amortization period is considered to be a year or less. As a practical expedient, we account for shipping and handling activities related to contracts with customers as costs to fulfill the promise to transfer the associated products.
Shipping and Handling Cost
Amounts billed to third-party customers for shipping and handling are included as a component of revenue. Shipping and handling costs incurred are included as a component of cost of products sold.
Accounts Receivable and Allowance for Credit Losses
We perform ongoing credit evaluations of its customers and maintains allowances for potential credit losses and doubtful accounts. Our allowance for credit losses consists of losses expected based on known credit issues with specific customers as well as a general expected credit loss allowance based on relevant information, including historical loss rates, current conditions, and reasonable economic forecasts that affect collectability.
Results of Operations
Three months ended September 30, 2025, versus September 30, 2024
The results of operations presented below should be reviewed in conjunction with the unaudited condensed consolidated financial statements and notes included elsewhere in this Quarterly Report. The following table sets forth our results of operations data for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024:
|
Three Months Ended September 30, |
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| 2025 | 2024 | $ Change | % Change | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Service Revenues | |||||||||||||||||||||||
| Advertising | $ | 27,587,036 | $ | 28,037,238 | $ | (450,202) | (1.6) | ||||||||||||||||
| Affiliate fee | 8,050,075 | 6,579,641 | 1,470,434 | 22.3 | |||||||||||||||||||
| Subscription | 6,878,260 | 6,888,708 | (10,448) | (0.2) | |||||||||||||||||||
| Other | 1,209,387 | 488,187 | 721,200 | 147.7 | |||||||||||||||||||
| Product Sales | 1,547,938 | 1,520,178 | 27,760 | 1.8 | |||||||||||||||||||
| Total revenues | $ | 45,272,696 | $ | 43,513,952 | $ | 1,758,743 | 4.0 | ||||||||||||||||
| Cost of revenues | 29,311,960 | 23,751,289 | 5,560,671 | 23.4 | |||||||||||||||||||
| Gross profit | $ | 15,960,736 | $ | 19,762,663 | $ | (3,801,928) | (19.2) | ||||||||||||||||
| General & administrative | 23,159,295 | 28,557,438 | (5,398,143) | (18.9) | |||||||||||||||||||
|
Other income (expense), net
|
3,138,889 | (975,674) | 4,114,563 | (421.7) | |||||||||||||||||||
| Loss before income tax expense | $ | (4,059,670) | $ | (9,770,449) | $ | 5,710,779 | 58.4 | ||||||||||||||||
| Income tax expense | 55,736 | (162) | 55,898 | (34504.9) | |||||||||||||||||||
| Net loss | $ | (4,115,406) | $ | (9,770,287) | $ | 5,654,881 | 57.9 | ||||||||||||||||
Revenues
Revenues increased by approximately $1.8 million, or 4.0%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. Advertising revenue decreased by approximately $(0.5) million due to reductions in digital advertising revenue (given that 2024 was an election year) offset by higher linear cable and satellite advertising revenue due to expanded reach from new affiliate agreements. Affiliate fee revenues increased by approximately $1.5 million due to new contractual relationships as well as rate increases which took effect in 2025. Subscription revenue remained flat due to an increase in subscribers of the Newsmax+ streaming service but was offset by reductions in publication subscriptions due to decreased new customer acquisition. Other revenue increased by approximately $0.7 million due to an amendment of one of our licensing agreements that increased the rate and duration of the partnership.
Cost of Revenues
Cost of revenues increased by approximately $5.6 million, or 23.4%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The increase was due to increased headcount, programming and production costs on our main Newsmax TV channel as well as continued investment into Newsmax 2 for OTT to build out the programming to better monetize Newsmax 2 on FAST channels. Other drivers related to the increase include stock-based compensation expense, additional costs for remote shoots to cover news events and increase in SMS messaging.
Gross Profit
Gross profit decreased by approximately $(3.8) million, or (19.2)%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. Gross profit as a percent of revenues decreased to 35.3% for the three months ended September 30, 2025 from 45.4% for the three months ended September 30, 2024. Gross profit decreased mainly due to an increase in cost of revenues.
General and Administrative Expense
General and administrative expense decreased by approximately $(5.4) million or (18.9)%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The decrease was primarily driven by the reduction of legal expenses related to Dominion now that the case is settled.
Other Income (Expense), Net
Other income (expense), net increased by approximately $4.1 million, or 421.7%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The increase was primarily driven by interest and dividend income as well as a reduction of one-time expenses related to becoming a publicly traded company.
Segment Analysis
The following tables set forth our Revenues and Segment EBITDA for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024:
| 2025 | 2024 | $ Change |
% Change |
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| Revenues | |||||||||||||||||||||||
| Broadcasting | $ | 36,609,048 | $ | 33,246,262 | $ | 3,362,786 | 10.1 | ||||||||||||||||
| Digital | 8,663,648 | 10,267,690 | (1,604,042) | (15.6) | |||||||||||||||||||
| Total revenues | $ | 45,272,696 | $ | 43,513,952 | $ | 1,758,743 | 4.0 | ||||||||||||||||
| 2025 | 2024 | $ Change |
% Change |
||||||||||||||||||||
| Segment Adjusted EBITDA | |||||||||||||||||||||||
| Broadcasting | $ | 1,101,484 | $ | 4,713,328 | $ | (3,611,844) | (76.6) | ||||||||||||||||
| Digital | (2,870,071) | (2,043,017) | (827,054) | (40.5) | |||||||||||||||||||
| Adjusted EBITDA1 | $ | (1,768,587) | $ | 2,670,311 | $ | (4,438,897) | (166.2) | ||||||||||||||||
Broadcasting
| 2025 | 2024 | $ Change |
% Change |
||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Advertising | $ | 23,594,497 | $ | 22,842,131 | $ | 752,366 | 3.3 | ||||||||||||||||
| Affiliate fee | 8,050,075 | 6,579,641 | 1,470,434 | 22.3 | |||||||||||||||||||
| Subscription | 3,755,101 | 3,336,434 | 418,667 | 12.5 | |||||||||||||||||||
| Other | 1,209,375 | 488,056 | 721,319 | 147.8 | |||||||||||||||||||
1For a discussion of Adjusted EBITDA, see "Non-GAAP Financial Measures" below.
| Total revenues | $ | 36,609,048 | $ | 33,246,262 | $ | 3,362,786 | 10.1 | ||||||||||||||||
| Cost of revenues | 22,193,587 | 18,430,087 | 3,763,500 | 20.4 | |||||||||||||||||||
| Gross profit | $ | 14,415,461 | $ | 14,816,175 | $ | (400,714) | (2.7) | ||||||||||||||||
| General & administrative | 13,313,977 | 10,102,847 | 3,211,130 | 31.8 | |||||||||||||||||||
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Segment Adjusted EBITDA
|
$ | 1,101,484 | $ | 4,713,328 | $ | (3,611,844) | (76.6) | ||||||||||||||||
Broadcast Revenues increased by $3.4 million for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, due to an increase in advertising revenue of approximately $0.8 million due to higher rates, affiliate fee revenue of approximately $1.5 million, which is attributed to new contractual relationships starting later in 2024 as well as rate increases for 2025, and subscription revenue of approximately $0.4 million from Newsmax+ due to an increase in subscribers.
Broadcast Segment Adjusted EBITDA decreased for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, primarily due to increases in cost of revenues and SG&A expense related to increased headcount, programming and production costs on our main Newsmax TV channel as well as continued investment into Newsmax 2 for OTT to build out the programming to better monetize Newsmax 2 on FAST channels. Additional cost increases consisted of marketing for TV, audit, and consulting fees
Digital
| 2025 | 2024 | $ Change |
% Change |
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| Revenues | |||||||||||||||||||||||
| Advertising | $ | 3,992,540 | $ | 5,195,107 | $ | (1,202,567) | (23.1) | ||||||||||||||||
| Subscription | 3,123,158 | 3,552,274 | (429,116) | (12.1) | |||||||||||||||||||
| Product sales | 1,547,937 | 1,520,178 | 27,759 | 1.8 | |||||||||||||||||||
| Other | 13 | 131 | (118) | (90.1) | |||||||||||||||||||
| Total revenues | $ | 8,663,648 | $ | 10,267,690 | $ | (1,604,042) | (15.6) | ||||||||||||||||
| Cost of revenues | 4,948,220 | 5,321,200 | (372,980) | (7.0) | |||||||||||||||||||
| Gross profit | $ | 3,715,428 | $ | 4,946,490 | (1,231,062) | (24.9) | |||||||||||||||||
| General & administrative | 6,585,499 | 6,989,507 | (404,008) | (5.8) | |||||||||||||||||||
| Segment Adjusted EBITDA2 | $ | (2,870,071) | $ | (2,043,017) | $ | (827,054) | (40.5) | ||||||||||||||||
Digital Revenues decreased by $1.6 million for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, due to decreases in advertising revenue due to 2024 being an election year which drives digital advertising revenue as well as subscription revenue as a result of decreased marketing for new customer acquisitions.
Digital Segment Adjusted EBITDA decreased for the three months ended September 30, 2025, as compared to three months ended September 30, 2024, due to a decrease in advertising and subscription revenues offset by decreases in cost of revenues and general and administrative due to decreased marketing spend.
Three months ended September 30, 2025 versus Three months ended September 30, 2024
The following table reconciles Net loss to Adjusted EBITDA for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024:
| 2025 | 2024 | ||||||||||
| Net loss | $ | (4,115,406) | $ | (9,770,287) | |||||||
| Add | |||||||||||
| Depreciation | 690,320 | 746,206 | |||||||||
| Interest, net | (2,198,156) | (141,627) | |||||||||
| Unrealized (gain) loss on marketable securities | (957,795) | (136,355) | |||||||||
2For a discussion of Adjusted EBITDA, see "Non-GAAP Financial Measures" below.
| Stock-based compensation | 3,547,340 | - | |||||||||
| Other corporate matters3 | 1,192,312 | 10,718,880 | |||||||||
| Other, net4 | 17,062 | 1,253,656 | |||||||||
| Income tax expense | 55,736 | (162) | |||||||||
|
Adjusted EBITDA5
|
$ | (1,768,587) | $ | 2,670,311 | |||||||
Nine months ended September 30, 2025, versus September 30, 2024
The results of operations presented below should be reviewed in conjunction with the unaudited condensed consolidated financial statements and notes included elsewhere in this Quarterly Report. The following table sets forth our results of operations data for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024:
|
Nine Months Ended September 30, |
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| 2025 | 2024 | $ Change | % Change | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Service Revenues | |||||||||||||||||||||||
| Advertising | $ | 86,340,121 | $ | 77,146,084 | $ | 9,194,037 | 11.9 | ||||||||||||||||
| Affiliate fee | 22,821,905 | 20,024,880 | 2,797,025 | 14.0 | |||||||||||||||||||
| Subscription | 20,840,459 | 19,861,093 | 979,366 | 4.9 | |||||||||||||||||||
| Other | 2,341,821 | 1,871,187 | 470,634 | 25.2 | |||||||||||||||||||
| Product Sales | $ | 4,669,842 | $ | 4,437,085 | $ | 232,757 | 5.2 | ||||||||||||||||
| Total revenues | $ | 137,014,148 | $ | 123,340,329 | $ | 13,673,818 | 11.1 | ||||||||||||||||
| Cost of revenues | 83,949,512 | 67,950,924 | 15,998,588 | 23.5 | |||||||||||||||||||
| Gross profit | $ | 53,064,636 | $ | 55,389,405 | $ | (2,324,770) | (4.2) | ||||||||||||||||
| General & administrative | 148,241,423 | 119,778,654 | 28,462,769 | 23.8 | |||||||||||||||||||
| Other (expense) income, net | (1,276,335) | (873,487) | (402,848) | 46.1 | |||||||||||||||||||
| Loss before income tax expense | $ | (96,453,122) | $ | (65,262,736) | $ | (31,190,386) | (47.8) | ||||||||||||||||
| Income tax expense | 70,429 | 20,798 | 49,631 | 238.6 | |||||||||||||||||||
| Net loss | $ | (96,523,551) | $ | (65,283,534) | $ | (31,240,017) | (47.9) | ||||||||||||||||
Revenues
Revenues increased by approximately $13.7 million, or 11.1%, for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. Advertising revenue increased by approximately $9.2 million due to higher linear cable and satellite advertising revenue due to higher Nielsen ratings and expanded reach from new affiliate agreements which translated to higher rates but was offset by reductions in digital advertising revenue due to 2024 being an election year. Affiliate fee revenues increased by approximately $2.8 million due to new contractual relationships as well as rate increases which took effect in 2025. Subscription revenue increased by approximately $1.0 million due to an increase in subscribers of the Newsmax+ streaming service but was offset by reductions in publication subscriptions due to decreased new customer acquisition.
Cost of Revenues
Cost of revenues increased by approximately $16.0 million, or 23.5%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The increase was due to increased headcount, programming and production costs on our main Newsmax TV channel as well as continued investment into Newsmax 2 for OTT to build
3Comprised of certain litigation expenses, and related fees, for specific legal proceedings that we have determined are infrequent and unusual in terms of their magnitude.
4Comprised of miscellaneous items such as derivative adjustments, income tax credits, and unrealized gains on securities
5 For a discussion of Adjusted EBITDA, see "Non-GAAP Financial Measures" below.
out the programming to better monetize Newsmax 2 on FAST channels. Other drivers related to the increase include stock-based compensation expense, additional costs for remote shoots to cover news events and increase in SMS messaging.
Gross Profit
Gross profit decreased by approximately $(2.3) million, or (4.2)%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. Gross profit as a percent of revenues decreased to 38.7% for the nine months ended September 30, 2025 from 44.9% for the nine months ended September 30, 2024. Gross profit decreased mainly due to an increase in cost of sales related to production head count and stock-based compensation (as described in the preceding paragraph).
General and Administrative Expense
General and administrative expense increased by approximately $28.5 million or 23.8%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The increase was driven by increases in legal settlement expense along with increased marketing costs, travel expense related to news coverage, stock-based compensation, and professional and legal services around becoming a public company.
Other (Expense) Income, Net
Other (expense) income net increased by approximately $0.4 million, or 46.1%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The increase was primarily driven by non-cash mark to market adjustments for the derivative and warrant liabilities offset by increases in interest and dividend income as well as an increases in unrealized gains on marketable securities.
Segment Analysis
The following tables set forth our Revenues and Segment EBITDA for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024:
| 2025 | 2024 | $ Change |
% Change |
||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Broadcasting | $ | 110,825,241 | $ | 92,956,512 | $ | 17,868,729 | 19.2 | ||||||||||||||||
| Digital | 26,188,906 | 30,383,817 | (4,194,911) | (13.8) | |||||||||||||||||||
| Total revenues | $ | 137,014,147 | $ | 123,340,329 | $ | 13,673,817 | 11.1 | ||||||||||||||||
| 2025 | 2024 | $ Change |
% Change |
||||||||||||||||||||
| Segment Adjusted EBITDA | |||||||||||||||||||||||
| Broadcasting | $ | 5,836,080 | $ | 12,318,101 | $ | (6,482,021) | (52.6) | ||||||||||||||||
| Digital | (11,011,936) | (4,542,818) | (6,469,118) | (142.4) | |||||||||||||||||||
| Adjusted EBITDA | $ | (5,175,856) | $ | 7,775,283 | $ | (12,951,138) | (166.6) | ||||||||||||||||
Broadcasting
| 2025 | 2024 | $ Change |
% Change |
||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Advertising | $ | 74,451,192 | $ | 62,377,432 | $ | 12,073,760 | 19.4 | ||||||||||||||||
| Affiliate fee | 22,821,905 | 20,024,880 | 2,797,025 | 14.0 | |||||||||||||||||||
| Subscription | 11,210,477 | 8,683,583 | 2,526,894 | 29.1 | |||||||||||||||||||
| Other | 2,341,667 | 1,870,617 | 471,050 | 25.2 | |||||||||||||||||||
| Total revenues | $ | 110,825,241 | $ | 92,956,512 | $ | 17,868,729 | 19.2 | ||||||||||||||||
| Cost of revenues | 63,714,344 | 51,582,524 | 12,131,820 | 23.5 | |||||||||||||||||||
| Gross profit | $ | 47,110,897 | $ | 41,373,988 | $ | 5,736,909 | 13.9 | ||||||||||||||||
| General & administrative | 41,274,818 | 29,055,887 | 12,218,931 | 42.1 | |||||||||||||||||||
|
Segment Adjusted EBITDA
|
$ | 5,836,079 | $ | 12,318,101 | $ | (6,482,022) | (52.6) | ||||||||||||||||
Broadcast Revenues increased by $17.9 million for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, due to an increase in advertising revenue of approximately $12.1 million due to higher ratings and pricing and expanded reach from new affiliate agreements, affiliate fee revenue of approximately 2.8 million, which is attributed to new contractual relationships starting later in 2024 as well as rate increases for 2025, subscription revenue of approximately $2.5 million from Newsmax+ due to an increase in subscribers.
Broadcast Segment Adjusted EBITDA decreased for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, primarily due to increases in cost of revenues and G&A expense related to increased headcount, programming and production costs on our main Newsmax TV channel as well as continued investment into Newsmax 2 for OTT to build out the programming to better monetize Newsmax 2 on FAST channels. Additional increases consisted of marketing for TV, audit, consulting and legal fees associated with becoming a public company and costs associated with coverage of significant news events including President Donald J. Trump's inauguration, coverage of the funeral for Pope Francis and the papal conclave for the election of Pope Leo XIV and the death of Charlie Kirk. These expense increases were offset by reductions in distribution and carriage costs, fulfillment costs and bank fees.
Digital
| 2025 | 2024 | $ Change |
% Change |
||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Advertising | $ | 11,888,927 | $ | 14,768,651 | $ | (2,879,724) | (19.5) | ||||||||||||||||
| Subscription | 9,629,983 | 11,177,511 | (1,547,528) | (13.8) | |||||||||||||||||||
| Product sales | 4,669,841 | 4,437,085 | 232,756 | 5.2 | |||||||||||||||||||
| Other | 155 | 570 | (415) | (72.8) | |||||||||||||||||||
| Total revenues | $ | 26,188,906 | $ | 30,383,817 | $ | (4,194,911) | (13.8) | ||||||||||||||||
| Cost of revenues | 15,310,901 | 16,368,398 | (1,057,497) | (6.5) | |||||||||||||||||||
| Gross profit | $ | 10,878,005 | $ | 14,015,419 | $ | (3,137,414) | (22.4) | ||||||||||||||||
| General & administrative | 21,889,942 | 18,558,237 | 3,331,705 | 18.0 | |||||||||||||||||||
|
Segment Adjusted EBITDA
|
$ | (11,011,937) | $ | (4,542,818) | $ | (6,469,119) | (142.4) | ||||||||||||||||
Digital Revenues decreased by $4.2 million for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, due to decreases in advertising revenue during 2025 due to 2024 being an election year which drives digital advertising revenue as well as subscription revenue as a result of decreased marketing for new customer acquisitions.
Digital Segment Adjusted EBITDA decreased for the nine months ended September 30, 2025, as compared to nine months ended September 30, 2024, due to increased headcount, consulting and legal fees associated with becoming a public company.
Ninemonths ended September 30, 2025 versus ninemonths ended September 30, 2024
The following table reconciles Net loss to Adjusted EBITDA for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024:
| 2025 | 2024 | ||||||||||
| Net loss | $ | (96,523,551) | $ | (65,283,534) | |||||||
| Add | |||||||||||
| Depreciation | 2,161,785 | 2,371,299 | |||||||||
| Interest, net | (5,040,986) | (146,926) | |||||||||
| Unrealized (gain) loss on marketable securities | (2,042,639) | (264,929) | |||||||||
| Stock-based compensation | 8,542,133 | - | |||||||||
| Other corporate matters6 | 79,297,013 | 69,793,233 | |||||||||
| Other, net7 | 8,359,960 | 1,285,342 | |||||||||
| Income tax expense | 70,429 | 20,798 | |||||||||
|
Adjusted EBITDA8
|
$ | (5,175,856) | $ | 7,775,283 | |||||||
Liquidity and Capital Resources
We had approximately $14.2 million of cash and cash equivalents and $116.2 million in investments as of September 30, 2025. Our primary sources of liquidity include cash on hand and available-for-sale investments.
On September 26, 2024, we entered into a settlement agreement with Smartmatic pursuant to which the parties agreed to resolve the lawsuits among them. We agreed to pay a settlement of approximately $40.0 million payable over time and granted a five year warrant to purchase 2,000 of Series B preferred stock at an exercise price of $5,000 per share. Following the conversion of the underlying Series B preferred stock into Class B common stock in connection with our March 28, 2025 initial public offering, Smartmatic has a five year warrant to purchase 1,333,333 shares of Class B common stock at an exercise price of $7.50 per share. Refer to Note 12. Legal for details of the settlement. As of the date hereof, we have made all payments required under the settlement agreement.
On August 15, 2025, Newsmax Media, Inc. and Newsmax Broadcasting, LLC entered into a settlement agreement with Dominion Voting Systems, Inc. and certain of its affiliates ("Dominion"), pursuant to which such parties agreed to resolve the lawsuit among them for a total amount of $67.0 million to be paid in the current and next two fiscal years. The payments will be made in three installments: (1) $27 million paid on August 15, 2025; (2) $20.0 million on or before January 15, 2026; and (3) $20.0 million on or before January 15, 2027.
The principal uses of cash that affect our liquidity position include the following: operational expenditures including production cost, marketing and promotional expenses, expenses related to broadcasting our programming, employee and facility costs, capital expenditures, income taxes, interest payments and legal fees and settlements.
We completed the Private Placement on February 27, 2025, having sold 45,000 shares of its Series B Preferred Stock, resulting in net proceeds of approximately $206.7 million.
We believe these sources of liquidity are sufficient to meet its business operating requirements and its capital expenditures for the next 12 months from the issuance date of these condensed consolidated financial statements.
Convertible Preferred Stock
Convertible Preferred Stock as of September 30, 2025 and December 31, 2024 (0 and 41,034 total shares authorized, respectively, and all classes are $0.001 par value per share) is as follows:
|
Issued and Outstanding as of |
||||||||||||||
| Class |
September 30, 2025 |
December 31, 2024 |
||||||||||||
| Series A | $ | - | 611 | |||||||||||
| Series A (with redemption rights) | $ | - | 35 | |||||||||||
| Series A-1 | $ | - | 1,222 | |||||||||||
| Series A-2 | $ | - | 2,647 | |||||||||||
| Series A-3 | $ | - | 1,060 | |||||||||||
| Series B | $ | - | 27,612 | |||||||||||
| $ | - | 33,187 | ||||||||||||
6Comprised of certain litigation expenses, and related fees, for specific legal proceedings that we have determined are infrequent and unusual in terms of their magnitude.
7Comprised of miscellaneous items such as derivative adjustments, income tax credits, and unrealized gains on securities
8 For a discussion of Adjusted EBITDA, see "Non-GAAP Financial Measures" below.
Cash and Cash Equivalents
As of September 30, 2025, cash and cash equivalents balance was approximately $14.2 million. Cash and cash equivalents consist of interest-bearing deposit accounts and money market accounts managed by third-party financial institutions, and highly liquid investments with maturities of three months or less. The existing cash and cash equivalents, along with projected cash flows, are sufficient to fund our liquidity needs for the next 12 months. At this time, we do not anticipate the need to raise additional capital.
The following table shows our cash flows from operating activities, investing activities and financing activities for the stated periods:
| September 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| Net cash provided by (used in): | |||||||||||
| Operating activities | $ | (107,082,017) | $ | (21,180,172) | |||||||
| Investing activities | (56,740,900) | (183,021) | |||||||||
| Financing activities | 153,951,608 | 50,332,341 | |||||||||
Operating Activities
Net cash used in operating activities for the nine months ended September 30, 2025 was $107.1 million and was primarily due to a net loss and the funding of the settlement escrow offset by stock-based compensation and a increase in the settlement liability.
Net cash used in operating activities for the nine months ended September 30, 2024 was $21.2 million and was primarily due to a net loss and offset by the change in fair value of warrant liability and increases in settlement liability.
Investing Activities
Net cash used in investing activities for the nine months ended September 30, 2025 was $56.7 million primarily due to the purchase and sale of investments.
Net cash used in investing activities for the nine months ended September 30, 2024 was $(0.18) million primarily due to an increase in the sale of investments offset by purchases of fixed assets.
Financing Activities
Net cash provided by financing activities for the nine months ended September 30, 2025 was $154.0 million primarily due to a proceeds received from issuances of convertible stock and common stock in the initial public offering.
Net cash provided by financing activities for the nine months ended September 30, 2024 was $50.33 million primarily due to a proceeds received from issuances of convertible stock.
Non-GAAP Financial Measures
Adjusted EBITDA is defined as revenues less cost of revenues and general and administrative expenses and does not include depreciation and amortization, interest expense, net, impairment charges, unrealized gains (losses) on marketable securities, stock-based compensation, other corporate matters (consisting primarily of certain litigation expenses, and related fees, for specific legal proceedings that we have determined are infrequent and unusual in terms of their magnitude), other, net, and income tax expense.
Management believes that information about Adjusted EBITDA assists all users of our financial statements by allowing them to evaluate changes in the operating results of our portfolio of businesses separate from non-operational factors that affect net income, thus providing insight into both operations and the other factors that affect reported results. Adjusted EBITDA provides management, investors and equity analysts a measure to analyze the operating performance of our business and its enterprise value against historical data and competitors' data, although historical results, including Adjusted EBITDA, may not be indicative of future results (as operating performance is highly contingent on many factors, including customer tastes and preferences).
Adjusted EBITDA is considered a non-GAAP financial measure and should be considered in addition to, not as a substitute for, net income, cash flow and other measures of financial performance reported in accordance with U.S. generally accepted accounting principles ("GAAP"). In addition, this measure does not reflect cash available to fund requirements and excludes items, such as depreciation and amortization and impairment charges, which are significant components in assessing our financial performance. Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.
Off-Balance Sheet Arrangements
As of September 30, 2025, we did not have any off-balance sheet arrangements.
Critical Accounting Estimates
There have been no material changes in our critical accounting policies and estimates from those disclosed in Part II; Item 7: "Management's Discussion and Analysis of Financial Condition and Results of Operations; Critical Accounting Policies" contained in our Annual Report on Form 10-K for the year ended December 31, 2024.
JOBS Act Accounting Election
Section 102(b)(1) of the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act") exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a registration statement declared effective under the Securities Act of 1933, as amended, or do not have a class of securities registered under the Securities Exchange Act of 1934, as amended, (the "Exchange Act")) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that an emerging growth company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such an election to opt out is irrevocable. We have elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies and we, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of our financial statements with another public company that is neither an emerging growth company nor an emerging growth company that has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.
Newsmax Inc. published this content on November 13, 2025, and is solely responsible for the information contained herein. Distributed via Edgar on November 13, 2025 at 21:10 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]