Newsmax75%
Newsmax Earnings Call: Strong Growth, Analyst Sees $20 Share 48%
By Newsmax Wires78%
5/15/2026, 4:51:08 PM
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Newsmax's earnings call Thursday indicated the company is on a solid path of growth.
The company, listed on the NYSE as NMAX, reported double-digit growth in revenues, with significant growth in broadcast and affiliate fees.
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Top Market Analyst:
Tom Forte — Maxim Group
Key Points
Buy Rating: $6.92
Target Price: $20.00
1Q26 Review & Outlook: Beat and Maintain with Strong Growth in Affiliate Fees, Ratings, and Social Metrics – Reiterate Buy, $20
– Yesterday (5/14), post-Market close, Newsmax reported 1Q26 results that beat expectations across the board.
– We believe affiliate fees growth of 75.2% y/y was the highlight of the quarter with the mix increasing to 25.2%, from 16.4%.
We believe growth is driven by market share gains from legacy media players.
– We were also impressed by the company's strong ratings growth in 1Q26 and the month of April and its increasing social media audience, which we believe is one of many factors contributing to its ratings performance.
– Newsmax ended 1Q26 with $129.1M in cash and short-term investments, down slightly from $131.3M at year-end.
Once again, it had no debt.
Free cash was an outflow of ($2.9M), or ($0.02) per share in the quarter, versus an outflow of ($15.8M) or ($0.35) per share last year.
– Management maintained full-year revenue guidance, which we consider prudent given the challenging macroeconomic environment following the late-February start of the U.S.-Iran conflict.
We maintain our 1H26, 2026, and 2027 projections.
– We reiterate our Buy rating and $20 price target, based on our DCF analysis.
Shares currently trade at an EV/revenue multiple of 3.4x our 2027 estimate vs. the peer average of 3.3x.
Our price target of $20 represents 10.0x our 2027 forecast.
What They're Saying About Newsmax:
MarketBeat
– Newsmax posted first-quarter 2026 revenue of $51.7 million, up 14% year over year, while its net loss narrowed sharply to $2.2 million from $17.2 million a year ago.
Management said the improvement was driven by higher revenue, lower legal expenses, and better other income.
– Broadcast revenue rose 20.8% to $43.7 million, led by a 75.2% jump in affiliate fees and a surge in licensing revenue.
Digital revenue fell 12.7%, and advertising declined overall, reflecting tougher comparisons with the election-driven ad environment in 2024.
– The company reiterated full-year 2026 revenue guidance of $212 million to $216 million and said its strong cash position of $129 million gives it flexibility to keep investing in streaming, digital monetization, and international expansion.
Investing.com
The company's revenue reached $51.7 million, marking a 14% year-over-year increase, driven by strong broadcasting revenue growth.
Despite the improved financial performance, the company's earnings per share (EPS) matched expectations at -$0.02.
Following the earnings release, Newsmax's stock saw a slight increase, with a 1.62% rise in after-hours trading, closing at $6.84.
The media company currently carries a market capitalization of $879 million.
Key Takeaways
– Newsmax's revenue grew by 14% year over year, reaching $51.7 million.
– Broadcasting revenue surged 20.8%, offsetting a 12.7% decline in digital revenue.
– The company maintained its EPS forecast, with no surprise deviation.
Seeking Alpha
Newsmax reiterates $212M-$216M 2026 revenue outlook as affiliate and licensing expand.
Outlook
– Newsmax CEO Christopher Ruddy said, "We are reiterating our full 2026 revenue guidance of $212 million to $216 million," and added, "We continue to expect that growth to be structural, not cyclical — led by higher-margin affiliate fee expansion and licensing growth, along with ongoing investment in premium content and digital monetization."
– Burnham reiterated the same guidance and framed profitability direction: "We're encouraged by the strong performance to start off the year and remain confident in our previously disclosed full-year revenue guidance of $212 million to $216 million," and added, "From a profitability standpoint, we anticipate an improved operating profile" as the year progresses.
Financial Results
– Total revenue was $51.7 million vs. analysts' $48,919,000 revenue estimate (Q1 2026).
– Burnham said segment performance diverged: "Total broadcasting revenues grew by 20.8% year over year to $43.7 million" …
Forward-Looking Statements
This communication contains forward-looking statements.
From time to time, we or our representatives may make forward-looking statements orally or in writing.
We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us.
Forward-looking statements can be identified by those that are not historical in nature.
The forward-looking statements discussed in this communication and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties and assumptions about us.
Newsmax does not guarantee future results, performance or achievements.
Moreover, neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements.
Forward-looking statements should not be relied upon as predictions of future events.
We are under no duty to update any of these forward-looking statements after the date of this communication to conform our prior statements to actual results or revised expectations, and we do not intend to do so.
Factors that may cause actual results to differ materially from current expectations include various factors, including but not limited changes in domestic and global general economic and macro-economic conditions and the volatility of the price of Common Stock that may result from, among other things, comments by securities analysts or other third parties, including blogs, articles, message boards and social and other media, large shareholders exiting their position in our Common Stock, any negative public perception of us, sales of shares previously registered for resale, or other uncertainties and the factors set forth in the sections entitled "Risk Factors" in Newsmax's Annual Report on Form 10-K for the twelve months ended December 31, 2025 and other filings Newsmax makes with the Securities and Exchange Commission.
Nothing in this communication should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved.
Undue reliance should not be placed on forward-looking statements in this communication, which speak only as of the date they are made and are qualified in their entirety by reference to the cautionary statements herein.
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