Newsmax — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for the quarter ended September 30, 2026, reached $69.0 million, a 52.5% year-over-year increase from $45.3 million in the prior year period.
• Revenue included a $14.0 million non-recurring service revenue termination fee; excluding this item, revenue was $55.0 million, representing a 21.6% year-over-year increase.
• Broadcasting revenue grew 65.9% year-over-year to $60.7 million, driven by a 77.4% increase in affiliate fees to $14.3 million and a 291.0% increase in licensing revenue to $4.7 million.
• Digital revenue decreased 4.1% year-over-year to $8.3 million, with declines in subscription ($3.4 million vs $3.8 million) and product sales ($1.2 million vs $1.5 million).
• Net income was $15.2 million ($0.12 per share), compared to a net loss of $4.1 million ($0.03 per share) in the prior year.
• Adjusted EBITDA was $19.0 million, an improvement of $20.0 million from a loss of $0.9 million in the prior year; excluding the one-time termination fee, Adjusted EBITDA was $5.0 million.
• The company ended the quarter with $137.6 million in cash and short-term investments, including $26.7 million in cash and cash equivalents and $110.8 million in short-term investments.
• Total liabilities decreased to $104.5 million from $133.8 million at the end of 2025, with no debt reported.
• Deferred revenue decreased to $12.8 million total ($10.1 million current, $2.6 million long-term) from $15.7 million total ($12.6 million current, $3.1 million long-term) at the end of 2025.

Guidance and Future Outlook:

• The company maintained its full-year 2026 revenue guidance of $212 million to $216 million, excluding the one-time $14.0 million item, representing 13% year-over-year growth at the midpoint.
• Including the one-time revenue item, full-year 2026 revenue guidance is $226 million to $230 million.
• Management expects the upcoming presidential cycle to be the largest on record, anticipating continued engagement growth.
• The company plans to continue investing in programming, talent, content, distribution, and OTT initiatives.

Business Segments and Product Lines:

• Broadcasting segment performance was driven by new contractual relationships and rate increases effective in late 2025 and 2026.
• International licensing revenues are on track to increase 344% year-over-year to approximately $16 million for 2026.
• Newsmax+ library grew to more than 700 licensed and original documentaries and specials.
• New carriage agreements were secured with independent cable operators and the launch on AFN Now (American Forces Network).
• Newsmax Ukraine launched on November 1, 2026, and Newsmax en Español expanded its streaming distribution in the United States.
• Social media followers grew 13% year-over-year to 26.8 million as of September 30, 2026.
• Third quarter audience reach totaled 22.5 million viewers, including 9.1 million Adults 35-64, ranking as the fourth highest-rated cable news channel and #2 in audience engagement for that demographic.

Market and Competitive Landscape:

• Newsmax positions itself as the only true alternative for the center-right audience, which management describes as under-served.
• The company is available in more than 100 countries worldwide.
• Reuters Institute identifies Newsmax as one of the top U.S. news brands.

Risks and Challenges:

• Forward-looking statements are subject to risks including changes in domestic and global economic conditions, stock price volatility, negative public perception, and large shareholder exits.
• Actual results may differ materially from expectations due to uncertainties and assumptions regarding future events.

Management Commentary and Tone:

• CEO Christopher Ruddy described the third quarter as the strongest in the company's history as a public company, noting the fastest revenue growth since listing (excluding one-time items) and a second consecutive profitable quarter.
• CFO Darryle Burnham highlighted operating leverage, with affiliate and licensing growth shifting the revenue mix toward higher-margin streams.
• Management emphasized a disciplined approach to capital allocation, a strong balance sheet with no debt, and a focus on sustainable long-term shareholder value.

Other Key Points:

• The company reported a $14.0 million non-recurring service revenue termination payment from an advertising purchase agreement.
• General and administrative expenses decreased slightly to $23.9 million from $23.2 million in the prior year, primarily driven by lower legal expenses ("Other corporate matters") compared to $1.2 million in the prior year.
• The "Other corporate matters" line item, comprising litigation expenses, was $0 in Q3 2026 compared to $1.2 million in Q3 2025.
• The company has no debt on its balance sheet.
• Stock-based compensation for the quarter was $3.2 million.
• Depreciation and amortization for the quarter totaled $1.5 million ($0.5 million depreciation, $1.0 million amortization).