Newsmax 2025 Q1 Earnings Strong Performance as Losses Narrow by 66%

Newsmax (NMAX) reported its fiscal 2025 Q1 earnings on May 15th, 2025. The company showcased strong financial performance with a notable narrowing of net losses. Analysts had mixed expectations, but Newsmax's results demonstrated significant progress in reducing losses and achieving growth in key revenue segments. The company maintained its optimistic outlook, anticipating further expansion and strategic advancements throughout the year, aligning with its commitment to independent journalism and market engagement.

Revenue

Newsmax's total revenue for the first quarter of 2025 rose by 11.6% to $45.30 million, compared to $40.60 million in the same quarter of the previous year. Advertising revenue reached $28.89 million, while subscription revenue contributed $6.98 million. Affiliate fees accounted for $7.43 million, product sales added $1.57 million, and other revenues were recorded at $437,563, culminating in the overall revenue growth.

Earnings/Net Income

Newsmax significantly reduced its net loss to $-17.23 million in the first quarter of 2025, a 66.0% improvement from the $-50.68 million loss reported in the same period of the previous year. Earnings per share improved to a loss of $0.49, compared to a $1.27 loss per share in 2024 Q1. This indicates a substantial improvement in earnings performance.

Post-Earnings Price Action Review

The strategy of purchasing Newsmax shares after a revenue decline on the earnings report release date and holding them for 30 days has historically yielded a 7.46% annualized return over the last five years. However, this performance lagged behind the market's annualized return of 8.00% during the same period. While the strategy delivered positive returns, it underperformed the broader market, suggesting it may not be the most effective approach for maximizing gains. Investors looking for stronger market returns may need to consider alternative strategies, given the disparity between Newsmax's returns and the market average.

CEO Commentary

Christopher Ruddy, CEO of Newsmax Inc., expressed enthusiasm over the company's first earnings results as a publicly traded entity, highlighting the significant growth that has positioned Newsmax as the fourth highest-rated cable news channel. He attributed the company's success to its diverse content offerings, strong audience engagement, and strategic partnerships with distributors and advertisers. Ruddy emphasized the importance of their commitment to independent journalism and noted the impressive financial performance driven by the brand's strength and viewer loyalty. The company is dedicated to expanding its reach and enhancing its content to serve its audience better.

Guidance

Newsmax anticipates continued growth in viewership and aims to secure transformative distribution agreements throughout 2025. The company expects to expand its content offerings significantly and bring onboard quality talent to enhance news delivery. Management is focused on leveraging its strong relationships with distributors and advertisers to further bolster its market position and engage a broader audience across various platforms.

Additional News

Recently, Newsmax signed a significant multi-year distribution agreement with Hulu + Live TV, marking a pivotal milestone for the media company. This deal ensures that Newsmax's cable channel will be available on all major U.S. pay-TV platforms, extending its reach to approximately 60 million U.S. households starting in July 2025. Moreover, the company achieved a major social media milestone by reaching 20 million combined followers across various platforms, demonstrating its growing digital presence and engagement. Additionally, Newsmax announced a substantial standby equity purchase agreement with Yorkville Advisors, allowing the company to raise up to $1.2 billion through the sale of shares over a two-year period, providing financial flexibility for future growth initiatives.