Newsmax Inc. Class B ((NMAX)) has held its Q2 earnings call. Read on for the main highlights of the call.

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Newsmax Inc. Class B delivered an upbeat earnings call, highlighting record revenue, a swing to profitability, and expanding margins on a debt‑free balance sheet. Management acknowledged pockets of weakness in digital, subscriptions, and advertising, but argued that broadcast, affiliate, and licensing growth, plus audience gains, put the company on a stronger long‑term trajectory.

Record Revenue and Year‑Over‑Year Growth

Newsmax posted Q2 2026 revenue of $54.1 million, a company record and a 16.5% increase from the same quarter last year. Executives reaffirmed full‑year revenue guidance of $212 million to $216 million, implying roughly 13% growth at the midpoint and signaling confidence in the current momentum.

Profitability Achieved as a Public Company

The company reported net income of $2.9 million, or $0.02 per share, compared with a steep $75.2 million loss a year ago. Adjusted EBITDA came in at $5.7 million versus negative $3.8 million last year, a $9.5 million improvement that underscores a more disciplined operating profile.

Broadcast and Affiliate Fee Momentum

Broadcast revenue climbed to $45.8 million, up 20.5% year over year, reinforcing the strength of Newsmax’s core TV business. Affiliate revenue surged 81.9% to $13.4 million, driven by new distribution agreements and rate increases, positioning fees as a key engine of future margin expansion.

Licensing and International Expansion

Licensing revenue jumped to $4.6 million from just $0.7 million a year ago, reflecting rapid progress in monetizing content. Management expects about $16 million in international licensing revenue for 2026 versus $3.6 million in 2025 and is targeting a $25 million annualized run‑rate in 2027, aided by launches such as Newsmax Poland.

Audience and Social Growth

Total viewership reached 26.9 million, up 4% year over year and marking the strongest Q2 reach in four years, including 11.3 million adults aged 35 to 64. Social media followership rose more than 28% to over 26 million, extending the brand’s reach and supporting future monetization across platforms.

Stronger Gross Margin and Balance Sheet

Gross margin expanded to 43.1%, up from 38.0% in the prior‑year quarter, signaling improved economics across the portfolio. The company closed the quarter with $25.9 million in cash and $102.4 million in short‑term investments, totaling $128.3 million, and remains fully debt‑free.

Strategic Content & Technology Initiatives

Newsmax+ now offers more than 300 titles, while the free streaming channel Newsmax2 is gaining distribution, broadening digital touchpoints. Management highlighted a multiyear AI content partnership with Meta and ongoing talks with other AI players, viewing AI as an incremental source of licensing and efficiency.

Digital and Subscription Pressure

Not all trends were positive, as total digital revenue slipped 1.3% year over year to $8.3 million in the quarter. Subscription revenue fell 9.9% to $6.3 million, which executives attributed mainly to weaker new customer acquisition, underscoring the need to refresh growth strategies in paid digital offerings.

Advertising and Product Sales Weakness

Advertising revenue declined 3.5% year over year to $28.8 million, pressured by lower customer order volume and tough comparisons to prior election‑cycle spending. Product sales dropped 31.7% to $1.1 million, reflecting softer demand for books and supplements and highlighting the volatility of this smaller revenue stream.

Uncertainty Around Affiliate Rate Gap and Renewals

Management noted that current affiliate fees remain materially below peer levels, estimating them at roughly seven times lower on average. They did not specify what portion of the subscriber base is up for renewal, leaving some uncertainty over how quickly the company can close the rate gap and lock in higher fees.

AI and Licensing Revenue Visibility

While the Meta AI partnership and strong licensing growth point to new upside, Newsmax withheld detailed financial terms for AI deals. Executives emphasized that the $16 million licensing outlook for 2026 is based only on existing agreements, leaving the potential multi‑year contribution from AI and future licensing still largely unquantified.

Forward‑Looking Guidance and Outlook

For 2026, Newsmax reiterated revenue guidance of $212 million to $216 million and expects its operating profile to improve versus 2025, driven by higher‑margin affiliate and licensing expansion. Management plans continued investment in programming, streaming, technology, and AI, banking on Q2 traction in revenue, profitability, audience reach, and a robust cash position to support growth.

Newsmax’s latest earnings call painted a picture of a media company transitioning from turnaround to growth, powered by broadcast, affiliate, and licensing gains on a clean balance sheet. Investors will watch how the company tackles digital and advertising softness, narrows its affiliate fee gap, and capitalizes on AI‑driven opportunities to sustain its newly achieved profitability.