10-K: Newsmax Reports 10.7% Revenue Growth, Widens Net Loss in 2025

Newsmax Inc. reported a 10.7% increase in total revenue to $189.3 million for 2025, driven by broadcasting growth, but saw its net loss widen to $99.5 million amidst significant legal settlements and increased operating costs.

Summary

• Total revenue increased by 10.7% to $189.3 million for the year ended December 31, 2025, up from $171.0 million in 2024.
• Net loss widened significantly to $99.5 million in 2025, compared to a net loss of $72.2 million in 2024.
• The Broadcasting segment revenue grew by 17.3% to $153.3 million, driven by higher advertising, affiliate fees, and Newsmax+ subscriptions.
• The Digital segment revenue decreased by 10.9% to $35.9 million, primarily due to reductions in advertising and subscription revenue in the year after a U.S. presidential election.
• Adjusted EBITDA saw a substantial decrease, moving from a positive $10.2 million in 2024 to a negative $6.5 million in 2025.
• The company completed a private placement in February 2025, raising approximately $206.6 million, and an initial public offering in March 2025, raising approximately $67.5 million.
• Significant legal settlements impacted financials, including a $67.0 million settlement with Dominion Voting Systems, Inc. (with $40.0 million remaining as of December 31, 2025) and a $40.0 million settlement with Smartmatic (fully satisfied by December 31, 2025).
• Material weaknesses in internal control over financial reporting were identified, and remediation efforts are ongoing.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a challenging period for Newsmax Inc., marked by significant widening of net losses and a negative shift in Adjusted EBITDA, despite revenue growth. The ongoing material weaknesses in internal controls and substantial legal settlement payments overshadow positive distribution and audience growth.

Positives

• Total revenues increased by 10.7% to $189.3 million in 2025.
• Broadcasting segment revenue grew by 17.3% to $153.3 million, driven by higher Nielsen ratings and new affiliate agreements.
• Affiliate fee revenues increased by 14.9% to $30.6 million due to new contractual relationships and rate increases.
• Newsmax+ subscription revenue increased by 20.2%, contributing to overall subscription growth.
• International licensing deals drove a 53.9% increase in other revenue to $3.6 million.
• Product sales increased by 20.7% to $7.3 million, primarily from book sales.
• Successfully completed a private placement raising $206.6 million and an IPO raising $67.5 million in early 2025.
• Expanded international presence with new multi-year distribution agreements in France, Israel, and Cyprus, and a brand license agreement for Newsmax Ukraine (expected 2026).
• Newsmax is now available in over 100 countries across five continents.
• Newsmax Broadcasting reaches over 58 million viewers across cable and streaming platforms, with 21 million viewers on the cable news network in 2025.
• Added three additional major cable distributors in 2025, bringing distribution to over 58 million paid homes.
• Newsmax was voted the "most trusted" cable news outlet in the nation by attendees at the 2025 Conservative Political Action Conference for the second year in a row.
• Cash and cash equivalents, along with projected cash flows, are believed to be sufficient for the next 12 months, with no anticipated need to raise additional capital.

Negatives

• Net loss widened by 37.9% to $99.5 million in 2025 from $72.2 million in 2024.
• Adjusted EBITDA decreased significantly by 163.4%, from a positive $10.2 million in 2024 to a negative $6.5 million in 2025.
• Gross profit decreased by 4.6% to $74.4 million, with gross profit margin declining from 45.6% in 2024 to 39.3% in 2025.
• Cost of revenues increased by 23.4% to $114.8 million, outpacing revenue growth.
• General and administrative expenses increased by 17.9% to $174.3 million, largely due to legal settlement expenses and public company costs.
• Digital segment revenue decreased by 10.9%, with digital advertising down 19.0% and digital subscription revenue down 13.0%, attributed to the year after a U.S. presidential election.
• Digital segment Adjusted EBITDA decreased by 81.9% to a loss of $17.2 million.
• Operating activities used $104.5 million in cash in 2025, a significant increase from $48.7 million in 2024, primarily due to settlement payments.
• Identified material weaknesses in internal control over financial reporting, indicating a risk to accurate and timely financial reporting.

Risks

• Incurred losses in prior periods and may not be profitable in the future, requiring additional capital.
• Changes in consumer behavior and evolving technologies/distribution platforms may adversely affect business, financial condition, and results of operations.
• Declines in advertising expenditures, influenced by economic conditions, election cycles, and new technologies (e.g., ad-blocking), could significantly reduce revenues.
• Dependence on a limited number of distributors means failure to renew affiliation and carriage agreements on favorable terms could materially harm the business.
• Changes to existing content and services could fail to attract traffic, viewers, and advertisers or generate revenue.
• Damage to brand or reputation, including adverse publicity regarding nutraceuticals, could materially affect financial performance.
• Strategic investments in new businesses, products, services, and technologies may not realize financial and strategic goals.
• Future growth depends on the acceptance and growth of over-the-top (OTT) advertising and platforms.
• Increased rate of decline in traditional multichannel video programming distributors (MVPD) subscribers or shift to services not including Newsmax TV could negatively impact affiliation revenues.
• Degradation, failure, or misuse of network and information systems (cybersecurity risks) could lead to service disruption, data disclosure, increased costs, liabilities, or revenue loss.
• Subject to complex and evolving privacy and personal data protection laws, which are inconsistent and potentially costly.
• Changes in U.S. communications laws or other regulations, including content restrictions, may adversely affect the business.
• Inability to protect and defend intellectual property, or claims of intellectual property infringement, could harm the business.
• Risks of liability claims for content of material (defamation, infringement).
• Investing in securities is highly speculative and could result in the loss of the entire investment.
• Future sales and issuances of securities could result in dilution of percentage ownership.
• No intention to pay cash dividends in the foreseeable future.
• May issue preferred stock with liquidation preference over common stock.
• Dual-class structure may affect the price of securities and eligibility for certain indices.
• Controlled company status (CEO Ruddy holds 81.5% voting power) allows reliance on NYSE corporate governance exemptions.
• NYSE may delist Class B Common Stock, limiting liquidity and trading.
• Market price of Class B Common Stock may be volatile and fluctuate substantially.
• Increased costs as a public reporting company, requiring substantial board time for compliance.
• Identified material weaknesses in internal control over financial reporting, which if not remediated, could impair accurate financial reporting.
• Potential liability in connection with content acquired, produced, licensed, and/or distributed.
• Dependence on effective operation within and compatibility with operating systems, networks, devices, web browsers, and standards not controlled by the company.
• New technologies blocking online advertisements could harm operating results.
• Financial crisis or deterioration in general economic conditions could adversely affect results.
• Loss of key personnel, including talent, could disrupt management or operations.
• Potential losses due to asset impairment charges for up-front programming costs.
• Adverse publicity or negative public perception regarding nutraceuticals industry could affect Medix Select.
• Nutraceuticals industry is highly competitive.
• Interruption to Medix Select's distribution channels or warehousing facilities.
• Discretionary nature of nutraceutical product purchases makes them susceptible to economic downturns.
• Inherent risks relating to product liability and personal injury claims for nutraceuticals.
• Newsmax Inc.'s principal asset is Newsmax Media, and its revenue may not be sufficient to pay expenses or dividends.
• Investments in financial instruments are subject to credit, liquidity, market, and interest rate risk.

Future Outlook

Newsmax Inc. plans to continue investing in talent acquisition and programming to enhance its leading position in news and content production, aiming to expand its reach and value across traditional and direct-to-consumer platforms. The company expects to increase revenue growth through premium content delivery and further develop its television and digital distribution offerings, including maximizing subscriber penetration on cable, growing Newsmax+ subscriptions, increasing audiences for its news channels, and expanding its international footprint. Management believes current liquidity sources are sufficient for the next 12 months and does not anticipate needing to raise additional capital.

Management Comments

• We believe these sources of liquidity are sufficient to meet our business operating requirements and its capital expenditures for the next 12 months.
• At this time, we do not anticipate the need to raise additional capital.
• Management believes these settlements will, subject to the payment of all consideration in a timely manner, eliminate future legal expenses the Company would have expected to bear related to these suits, which could have included costly appellate legal actions and other matters.

Industry Context

StockSavvy.ai notes that Newsmax Inc.'s growth in its Broadcasting segment, particularly in affiliate fees and Newsmax+ subscriptions, runs counter to the broader industry trend of declining traditional MVPD subscribers. While many media companies are seeing shrinking paid distribution footprints for linear TV, Newsmax is actively expanding its reach and adding distributors. However, the decline in its Digital segment's advertising and subscription revenue, attributed to the post-election year, highlights the cyclical nature of political news consumption and the intense competition in the digital media landscape. The company's diversified revenue model, including nutraceuticals and books, attempts to mitigate reliance on traditional media revenue streams, a strategy increasingly adopted by content providers seeking stability amidst evolving consumer habits.

Comparison to Industry Standards

• Newsmax's average monthly affiliate fees per subscriber are not explicitly stated, but the filing notes that competitors like Fox News ($2.67), CNN ($1.31), CNBC ($0.66), Fox Business ($0.41), and MS NOW ($0.39) have significantly higher rates, suggesting substantial potential for Newsmax's revenue growth in this area given its comparable audience numbers.
• Newsmax's cable news network reached over 21 million viewers in 2025, with Nielsen reporting approximately five million viewers watched Newsmax but never tuned into Fox News, and over two million viewers watched Newsmax but never tuned into Fox, CNN or MSNBC, indicating a distinct and loyal audience base compared to established competitors.
• The company's growth in paid distribution, adding three major cable distributors in 2025 to reach over 58 million paid homes, contrasts with other major cable competitors like CNN and Fox News, which are experiencing shrinking paid distribution footprints.

Corporate Governance

Legal Proceedings

• Settlement agreement with Smartmatic on September 26, 2024, for approximately $40.0 million (fully satisfied by December 31, 2025), plus a five-year warrant to purchase 1,333,333 shares of Class B common stock at $7.50 per share.
• Settlement agreement with Dominion Voting Systems, Inc. on August 15, 2025, for a total of $67.0 million, with $27.0 million paid in August 2025, $20.0 million due by January 15, 2026, and $20.0 million due by January 15, 2027.
• Settlement agreement with a commercial counterparty in 2023 for $41.3 million, with approximately $29.6 million remaining to be paid over time until 2029.

Stakeholder Impact

• Shareholders: Experience significant dilution from past and potential future equity issuances. Face risks from volatile stock price, dual-class structure, controlled company status, and potential NYSE delisting. Investment is highly speculative with no anticipated cash dividends.
• Employees: Benefit from competitive pay, benefits, and the 2025 Omnibus Equity Incentive Plan. Subject to strict insider trading policy.
• Customers/Viewers: Benefit from expanded content offerings, increased distribution across linear and streaming platforms, and international availability. Newsmax+ offers direct subscription access.
• Advertisers: Benefit from Newsmax's growing audience and target demographic (45+ with high disposable income), but face risks from declining digital advertising in non-election years and evolving ad-blocking technologies.
• Creditors: Impacted by the company's significant legal settlement liabilities and ongoing operating losses, though management believes liquidity is sufficient for the next 12 months.

Next Steps

• Continue to invest in talent acquisition and programming to raise brand profile and visibility.
• Expand content offerings to reach new audiences through traditional and direct-to-consumer services.
• Focus on creating high-quality content delivered through diversified publishing platforms.
• Maximize subscriber penetration on traditional cable platforms.
• Grow the subscription base for Newsmax+.
• Increase audiences for Newsmax, Newsmax2, and World at War channels.
• Develop the international footprint in new markets.
• Create additional revenue opportunities through advertising sales.
• Further develop delivery strategies on emerging content and social platforms to increase audience interaction.
• Remediate identified material weaknesses in internal control over financial reporting.
• Make the second $20.0 million installment payment to Dominion by January 15, 2026.
• Make the third $20.0 million installment payment to Dominion by January 15, 2027.
• Continue making payments for the commercial counterparty settlement until 2029.
• Launch Newsmax Ukraine, a localized channel, expected in 2026.

Key Dates

Recommendation

The company's substantial widening of net losses and a significant negative shift in Adjusted EBITDA for 2025, despite revenue growth, indicate underlying operational challenges and increased costs. The identified material weaknesses in internal controls raise concerns about financial reporting reliability. Furthermore, the ongoing large legal settlement payments, coupled with a highly competitive industry and risks associated with evolving consumer behavior and advertising markets, present considerable headwinds. While the company has achieved distribution and audience growth, the financial performance suggests a deteriorating fundamental picture, making it a 'sell' for seasoned investors until there is clear evidence of sustained profitability and resolution of internal control issues.

Keywords

Newsmax, NMAX, SEC Filing, 10-K, Financial Results, Broadcasting, Digital Media, Cable News, OTT Streaming, FAST Channel, Advertising Revenue, Affiliate Fees, Subscriptions, Net Loss, Adjusted EBITDA, Legal Settlements, Corporate Governance, Risk Factors, Internal Controls, Public Company, Media Industry, Nutraceuticals, Stock Split, IPO, Private Placement