Newsmax, Inc. Q1 FY2026 earnings call

Audience Performance

• Maintained strong multi-platform reach, with 30.4 million total Q1 viewers and 13.3 million viewers in the key 35-64 adult demographic, retaining position as the fourth-highest rated cable news channel and top 15 cable network across key day parts
• Ranked number two in cable news for audience engagement among adults 35-64 by a wide margin
• Delivered a 29% sequential increase in total viewership compared to Q4 2025, with continued momentum in April 2026
• Social media followers reached 24.7 million at quarter end, surpassing 25 million followers in May 2026

Strategic & Operational Initiatives

• Expanding a differentiated multi-platform ecosystem integrating cable, free streaming, paid subscription streaming, digital, and social media to boost engagement and monetization
• Free streaming platform Newsmax2 delivered over 22% sequential growth in news hours and improved viewership across all key day parts
• Expanding paid subscription platform Newsmax Plus with premium family-friendly content; content available on its military history channels (World at War and War and Warriors) increased by more than 200%
• Achieved international expansion momentum: expanded a licensing agreement with Telecom Serbia, grew other international partnerships, and launched Newsmax Poland
• Maintained a disciplined, balanced approach to investment: allocating capital to programming, production, and OTT initiatives to support long-term growth, while retaining a strong balance sheet
• Ended Q1 with $129 million in cash and short-term investments, providing financial flexibility for continued growth investment
• Improved profitability year-over-year: reported a net loss of $2.2 million, an 87.3% improvement from the $17.2 million net loss in Q1 2025

1. Broadcasting segment: Total revenue of $43.7 million in Q1 2026, representing a 20.8% year-over-year increase. This segment contributed 84.5% of Newsmax's total Q1 2026 revenue. Growth was driven by expanding affiliate fee and licensing revenue.
2. Digital segment: Total revenue of $8 million in Q1 2026, representing a 12.7% year-over-year decrease. This segment contributed 15.5% of Newsmax's total Q1 2026 revenue. The decline was driven by drops in advertising, subscription revenue, and product sales.

By revenue component:

• Advertising: $27.2 million, down 5.8% YoY
• Affiliate: $13 million, up 75.2% YoY
• Subscription: $6.4 million, down 7.9% YoY
• Product sales: $1.5 million, down 3.5% YoY
• Licensing: $3.5 million, up from $437,000 YoY

Management reaffirmed its full-year 2026 revenue guidance range, maintaining the prior forecast of $212 million to $216 million. This guidance represents 13% year-over-year revenue growth at the midpoint of the range, an acceleration from the growth Newsmax achieved in 2025. Management expects this growth to be structural rather than cyclical, driven by higher-margin affiliate fee expansion and licensing growth, paired with ongoing investment in premium content and digital monetization. Management also expects an improved operating profile as the year progresses.

No specific material new operational or financial risks were explicitly discussed during the call. Management noted that forward-looking statements are inherently uncertain, and actual results may differ from expectations due to unstated factors referenced in the company's SEC filings. It was also noted that overall pay TV distribution is declining, and audience engagement and ratings can vary cyclically based on news flow and the election cycle.

Q: What portion of Newsmax's recent April ratings improvement comes from expanded distribution, content investments, and current news/geopolitical events, and how sustainable is this growth? / A: Management states it is not possible to disaggregate the exact contribution of each driver, as all three factors have contributed to growth. The ongoing Iran conflict has created a news-driven uptick, while expanded distribution, marketing efforts, strong social media growth, programming schedule changes, and upcoming 2026 midterm primaries and elections are also supporting engagement. Management notes that while ratings will have natural cyclicality, the long-term momentum in reach and engagement is sustainable, supported by ongoing political interest heading into the midterms and future presidential elections.

Q: Beyond higher affiliate rates, what ancillary benefits are you seeing from recent affiliate fee negotiations, such as improved channel placement or wider distribution? / A: Newsmax has successfully maintained placement on basic cable packages across all major agreements, resisting efforts to move news channels to higher paid tiers. The recent renewal with Optimum (Altice) will add approximately 250,000 new subscribers. On the streaming side, Newsmax has secured improved positioning on major OTT platforms including Pluto TV, and broader OTT distribution continues to support streaming viewership growth as traditional pay TV declines overall.

Q: With improved ratings trends, are national brand advertisers starting to allocate larger budgets to Newsmax? / A: Newsmax has already seen gradual growth in the number of brand advertisers buying inventory over the past year, and early trends are improving. Management notes there is typically a lag effect between ratings growth and increased brand ad spend, as marketing budget allocations change gradually over time. Newsmax holds a unique position in the large underserved center-right news market, which management expects will support long-term ad revenue growth as ratings momentum continues.

Q: What is driving Newsmax's strong social media growth across younger demographic platforms like Instagram and TikTok, and how sustainable is this growth? / A: Newsmax maintains a dedicated 15-person social media team that produces consistent, engaging content around the clock, and third-party industry analysis confirms Newsmax has among the highest engagement rates for any news organization in its category. Younger audiences increasingly consume news via social media platforms, and growing interest in U.S. politics (including high interest around the 2024-2026 election cycle) is driving growth among younger demographics, making this trend sustainable.