Newsmax, Inc. Q4 FY2025 earnings call

• Fiscal year 2025 was a defining year as a public company, with strong growth and performing at the high end of guidance. • Expanded distribution, finished as the fourth highest rated cable news network and number six among all cable channels in total day ratings. • Exited the year debt-free. • Full-year revenue increased 10.7% to $189.3 million, broadcast revenue grew 17.3%. • Expanded cable and TV distribution footprint, with Newsmax available in over 100 countries by end of 2025. • Scaled audience and engagement across platforms: Newsmax cable channel reached over 58 million total viewers in 2025, Newsmax 2 streaming channel expanded into 18 additional markets, Newsmax Plus had over 260,000 paid subscribers, and social media following surpassed 24 million. • Positioned for long-term success as a public company, completed IPO successfully and resolved key legal settlement.

For fiscal year 2025, total revenue was $189.3 million, up 10.7% year-over-year. Total broadcasting revenues grew 17.3% to $153.3 million, driven by advertising, affiliate fees, subscriptions, and licensing. Affiliate fees were up 14.9%. Digital revenues decreased 10.9% to $35.9 million, with decreases in advertising and subscription revenue partially offset by product sales. In the fourth quarter of 2025, total revenues were $52.2 million, up 9.6% year-over-year. Broadcasting revenues grew 12.6% to $42.5 million, and digital revenues declined 2% to $9.7 million. Advertising revenues increased 5.9%, affiliate revenues rose 17.9%, subscription revenues were down 7%, product sale revenues increased 64.2%, and other revenues were up due to expanded international licensing deals.

• Expect full-year 2026 revenue to be between $212 to $216 million, representing 13% growth at the midpoint, driven by structural momentum including affiliate fee expansion, rate increases, new distribution channels, and investment in premium content and digital monetization. • Anticipate improved operating profile due to reduced legal and public company transition expenses.

• Political cycles could impact advertising demand. • Delays in monetization due to launch timing and subscriber availability and adoption for affiliate fees. • Litigation with Fox could have uncertainties, though seeking significant damages if vindicated.

Q: When you look at the current media environment, what gives you confidence you can continue to take market share and grow ratings?

A: In the media landscape, on the right side of the political divide in cable TV, there are only two competitors, Fox News and Newsmax, and there's huge market share to gain.

Q: At a high level, how should we think about your operating performance in a year where there's midterm elections?

A: Anytime there's elections, there's a lot of engagement. We benefit from the huge amount of engagement across the country covering all elections in 50 states.

Q: In terms of your revenue guide for 2026, how much of the revenue growth is being driven by affiliate fee versus advertising revenues and color on the biggest delta affecting the revenue growth guide?

A: Affiliate fee momentum is a big driver for 2026, with renewals and investment over the last several years. Continued growth in advertising is also important, and there are opportunities with licensing.

Q: Talk about the trajectory of programming and programming costs over the next 12 to 18 months.

A: We're growing our own talent organically, promoting some of our own talent. We view continued investment in programming and content as important, with investment in N1, N2, and Newsmax Plus having multiple benefits.

Q: Thoughts on the litigation with Fox and ancillary benefits?

A: Fox had anti-competitive practices like drag down rights blocking Newsmax. We're seeking significant damages and think it's important for future protection.

Q: What's the monetization strategy internationally and when international becomes a meaningful revenue contributor?

A: Two-pronged approach: licensing the American channel and having branded licenses in local languages. Excited about growth in international licensing and expecting more developments in 2026.