Newsmax (NMAX 1.00%), a multi-platform news and media company recognized for its broadcasting and digital content, released its second quarter 2025 earnings on August 19, 2025. The company reported GAAP revenue of $46.4 million, above analysts' expectations of $44.9 million, showing continued growth across core segments. Despite the positive top-line result, a significant one-time legal settlement with Dominion Voting Systems drove a GAAP net loss of $75.2 million, well below expectations for a near-breakeven performance. The company’s performance highlighted strong revenue expansion, but also underscored the impact of substantial legal and operational costs this period.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $(0.59) | $(0.02) | $(0.15) | (293.3%) |
| Revenue (GAAP) | $46.4 million | $44.9 million | $39.2 million | 18.4% |
| Adjusted EBITDA | $(3.8 million) | $1.9 million | -300.0% | |
| Cash and Short-Term Investments | $197.9 million | N/A | ||
| Net Loss (GAAP) | $(75.2 million) | $(4.8 million) | (1,466.7%) |
Source: Analyst estimates for the quarter provided by FactSet.
Business Overview and Key Success Factors
Newsmax operates two main business segments: Broadcasting, which includes its flagship cable news channel and related programming, and Digital, covering online advertising, subscriptions, and e-commerce. Its strategy relies on growing both traditional cable reach and digital platforms to reach its target audience—adults aged 45 and older—through a mix of news, commentary, and special interest content.
This focus on hybrid distribution, audience engagement, and revenue diversification is essential to its long-term growth. With Broadcasting accounting for over three-quarters of total revenues in prior years, the company’s expansion into streaming, digital subscriptions, and international markets allows it to mitigate risks from declines in traditional television advertising and capitalize on shifting consumer habits. Key factors for Newsmax’s success include content effectiveness, continuous audience engagement, and compliance with evolving regulations, especially as privacy concerns impact digital operations.
Second Quarter in Review: Notable Developments and Segment Results
Newsmax beat revenue expectations in Q2 2025, with a 3.3% increase over analyst consensus. Broadcasting revenue grew to $38.0 million, up 28.5% from Q2 2024, benefiting from expanded distribution in U.S. and international markets. The company reached over 60 million U.S. homes and more than 100 countries, supported by new partnerships with digital television platforms like Fubo, Hulu+, and international networks in Israel, Armenia, and the Dominican Republic. The launch of Newsmax en Español, with live artificial intelligence dubbing, marks a push into new language audiences and positions the company as an innovator in content delivery.
Advertising revenue rose 26.2% year-over-year, as higher Nielsen ratings enabled the company to command higher advertising rates on both cable and satellite. Affiliate and subscription revenues also increased, up 7.3% and 5.2% year-over-year, respectively, reflecting new contracts, rate increases, and growth in Newsmax+ streaming subscribers. Product sales revenue increased 5.1% year-over-year to $1.6 million, driven by continued sales of offerings like “Pay Zero Taxes,” but offset by lower sales in supplements.
The period also saw significant progress in digital engagement. Over 26 million viewers tuned in, while Newsmax’s digital footprint expanded to 20 million social followers and more than 16 million downloads of its free app. The company’s board saw fresh appointments, potentially strengthening governance and regulatory expertise.
The headline event of the quarter was the settlement of a lawsuit with Dominion Voting Systems. This one-time legal expense, reported under “Other corporate matters,” totaled $68.4 million—far above the prior year’s comparable expense of $5.8 million. Management described this as a "strategic business decision," noting it would sharply reduce future legal expenses and eliminate litigation exposure tied to the 2020 election. This settlement elevated total general and administrative costs to $94.0 million, compared to $21.47 million in the same period last year. Expenses excluding the settlement were also up, driven by higher personnel, advertising, and professional fees—reflecting business growth and costs related to the company's initial public offering process.
Cash Position, Balance Sheet, and Industry Positioning
Newsmax ended the period with a strong liquidity position, reporting $197.9 million in cash and short-term investments at June 30, 2025. The company’s total liabilities stood at $152.9 million as of June 30, 2025, with most near-term obligations related to lease and settlement liabilities.
Industry competition remains intense, with major cable networks and digital news outlets battling for viewers and advertisers. Nevertheless, the company’s ability to secure expanded carriage and diversify revenue is notable. Inclusion in the Russell 2000 and 3000 indexes during the quarter elevates its visibility with institutional investors and can support liquidity and secondary market activity. Management acknowledged ongoing cost pressures, especially as the company expands content and digital operations.
Outlook and Guidance
For the full year 2025, company leadership maintained revenue guidance of $180–190 million, suggesting expectations of continued core business growth. The settlement with Dominion is expected to eliminate substantial legal costs moving forward, with management highlighting operational flexibility and balance sheet strength as key assets for pursuing long-term goals.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
