Aug 13, 2026 earnings call — Record revenue and first profitable quarter
Newsmax reported record revenue of $54.1 million and net income of $2.9 million for the quarter.
Revenue $0.1B (est $0.0B) · EPS $0.02 (est $-0.03) · Next-quarter revenue outlook $0.2B–$0.2B
Key quotes
"We delivered net income for the quarter of $2.9 million and adjusted EBITDA of $5.7 million."
"Affiliate revenues increased 81.9% year-over-year to $13.4 million, driven by new contractual relationships as well as rate increases that took effect in late 2025 and 2026."
"Our journalism and reporting will help power AI answers across Meta's ecosystem, social, streaming, AI."
Analyst Q&A 3
renewals, licensing, AI partnership
Q (Michael Kupinski · NOBLE): He asked what percentage of affiliate contracts are up for renewal in the next 12 to 24 months and how quickly Newsmax can close the 7x affiliate-rate gap. He also asked how much of the $16 million licensing guide is contracted and whether the Meta AI deal could become a meaningful revenue stream.
A: They said they have not publicly disclosed what percentage of affiliate contracts are up for renewal and that closing the 7x rate gap depends on executing their programming, talent, and distribution strategy. They said the $16 million guide is based on agreements already in place and is not contingent on future deals, and that the $25 million annualized run rate noted for 2027 reflects expected growth. On AI, they said the Meta deal is multiyear, they are not revealing financial details, they are in discussions with other AI companies, and the AI licensing could potentially be meaningful but they gave no guidance.
"So consistent with what we've talked about before, we haven't really publicly disclosed what percentage of our affiliate fees are coming up for renewal." — Darryle Burnham (CFO)
margins, AI, and content costs
Q (Alicia Reese): She asked which specific operating improvements drove gross margin gains beyond higher affiliate fees and whether lower content costs came from AI or other sources. She also asked if social media users funnel into Newsmax+ or other platforms.
A: They said margin gains came from higher affiliate fees and licensing revenue and from operating efficiencies now that the first year as a public company has passed. They said AI speeds content creation and reduces some costs—helping digital, TV production, and graphics—but AI output still needs checking and Newsmax has not implemented AI features that drive users yet. They described social media as part of cross-promotion rather than a one-way funnel: some users stay on social, while others move to the website, app, Newsmax+, or TV, creating synergies and increased monetization.
"I mean the obvious ones are increases in the affiliate fee license and the licensing revenue because those are both high-margin contributors to the business overall." — Darryle Burnham (CFO)
midterms' impact on viewers and revenue
Q (Henry Dare · Maxim Group): He asked how the 2026 midterm elections might affect audience engagement across cable and digital and what that could mean for sales and profits in the back half of 2026.
A: They said elections generally boost engagement even if advertising fees do not rise much, because many midterms are local and drive viewing. They expect engagement to rise after the election because divided government tends to produce more news and because the presidential campaign will begin in earnest, and they view the next 2-year period as a strong window to build post-IPO.
"Well, elections are always good for engagement, even if we don't necessarily get a lot of advertising fees." — Christopher Ruddy (CEO)