Newsmax Inc. Class B (NMAX) AI Stock Analysis

• Market Cap: $2.02B
• Dividend Yield: N/A
• Average Volume (3M): 835.86K
• Price to Earnings (P/E): ―
• Beta (1Y): -2.64
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 400
• Sector: Communication Services
• Sector Strength: 90
• Industry: Broadcasting
• EPS (TTM): N/A
• Shares Outstanding: 89,810,500
• 10 Day Avg. Volume: 1,303,445
• 30 Day Avg. Volume: 835,862
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 9.62
• Enterprise Value/Gross Profit: 20.72
• Enterprise Value/Ebitda: -17.50
• 1Y Price Target: $19.17
• Price Target Upside: 24.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 48 Neutral
• Price Target: $14.50 ▼(-5.54% Downside)

Newsmax Inc. faces significant financial challenges, particularly with negative equity and cash flow issues, which weigh heavily on the overall score. While technical indicators show some positive trends, the lack of valuation data and the potential for a pullback limit the score. The strategic board appointments are a positive development, offering potential for future growth.

Positive Factors

Affiliate Fee Revenue

The company's affiliate fee revenue increased 7.3% y/y, to $7.3M and accounted for 15.8% of its total sales.

Cash Reserves

Newsmax ended with $197.9M in cash and ST investments and, once again, no debt.

Revenue Performance

Revenue exceeded expectations driven by advertising sales.

Settlement

The company announced a favorable settlement ($67M) with Dominion; especially, relative to damages sought ($1.6B).

Negative Factors

EBITDA Forecast

The 2025 adjusted EBITDA forecast is a loss due to increased investment spending and public company costs following the IPO.

Financial Performance

EBITDA loss was wider than estimate on investment spending to fund growth.

Newsmax Inc. Class B Business Overview & Revenue Model

Company Description

Newsmax Inc. is a media company that primarily operates in the news and information sector, providing a range of content through television, digital platforms, and print. Known for its conservative viewpoint, Newsmax delivers news programming, opinion shows, and live events, targeting a diverse audience interested in alternative perspectives to mainstream media. The company's flagship product is its 24-hour news channel, complemented by a robust online presence featuring articles, videos, and podcasts.

How the Company Makes Money

Newsmax generates revenue through multiple streams, primarily relying on advertising sales from its television network and digital platforms. The company sells advertising space to various brands and businesses looking to reach its audience. Additionally, Newsmax benefits from subscription revenue through its digital services, offering premium content to subscribers. Partnerships with cable and satellite providers further enhance its distribution and revenue potential. Other revenue sources may include sponsored content and merchandise sales, contributing to the overall earnings of the company.

Newsmax Inc. Class B Financial Statement Overview

Summary

Newsmax Inc. shows strong revenue growth but faces significant challenges in profitability and financial stability. The negative equity and cash flow issues highlight potential risks, while the revenue growth offers a glimmer of hope for future improvement if operational efficiencies can be achieved.

Income Statement

Newsmax Inc. shows strong revenue growth of 37.73% year-over-year, indicating a positive trajectory in sales. However, the company struggles with profitability, as evidenced by negative net profit, EBIT, and EBITDA margins. The gross profit margin is relatively healthy at 49.15%, but the significant losses in operating income suggest operational inefficiencies.

Balance Sheet

The balance sheet reveals a concerning financial structure with negative stockholders' equity, leading to a negative debt-to-equity ratio. This indicates potential solvency issues. Despite a high return on equity, this is due to the negative equity base, which is not sustainable long-term. The equity ratio is not calculable due to negative equity.

Cash Flow

Cash flow analysis shows a significant increase in free cash flow growth, but the company still operates with negative operating and free cash flows. The free cash flow to net income ratio is above 1, suggesting that cash flow issues are less severe than net income figures might imply, but overall cash generation remains a challenge.

Breakdown	TTM	Dec 2024	Dec 2023
Income Statement
Total Revenue	182.93M	171.02M	135.28M
Gross Profit	84.94M	84.05M	55.82M
EBITDA	-100.57M	-65.91M	-38.05M
Net Income	-109.07M	-72.17M	-41.78M
Balance Sheet
Total Assets	259.80M	146.07M	71.61M
Cash, Cash Equivalents and Short-Term Investments	197.89M	82.36M	7.26M
Total Debt	6.27M	8.27M	12.41M
Total Liabilities	152.94M	155.14M	95.19M
Stockholders Equity	106.85M	-9.07M	-23.58M
Cash Flow
Free Cash Flow	-81.68M	-49.68M	-4.75M
Operating Cash Flow	-80.21M	-48.69M	-3.83M
Investing Cash Flow	-162.95M	-58.43M	5.40M
Financing Cash Flow	270.35M	125.13M	427.44K

Newsmax Inc. Class B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MCS	63 Neutral	$472.66M	34.91	3.30%	1.86%	13.28%	―
SBGI	63 Neutral	$984.81M	17.70	14.27%	6.87%	8.11%	―
DALN	62 Neutral	$80.29M	2.66	-24.74%	3.60%	-8.00%	-46.22%
Sector *	60 Neutral	$43.56B	4.52	-12.81%	4.07%	1.87%	-43.08%
AREN	57 Neutral	$292.86M	2.36	82.40%	―	-22.89%	―
NMAX	48 Neutral	$2.02B	―		―	―	―
BBGI	45 Neutral	$8.64M	3.37	-5.76%	―	-5.52%	87.59%

Newsmax Inc. Class B Corporate Events

Newsmax Inc. Appoints David Gandler to Board

On August 21, 2025, Newsmax Inc. appointed David Gandler, CEO of FuboTV, to its Board of Directors. Gandler’s experience in the streaming and media industries is expected to enhance Newsmax’s strategic direction, especially as it expands its global reach through its streaming service, Newsmax+. His appointment is seen as a move to leverage his entrepreneurial success to attract new audiences and accelerate growth in the evolving media landscape.

Newsmax Inc. Appoints Paula Dobriansky to Board

On June 11, 2025, Newsmax Inc. appointed Ambassador Paula J. Dobriansky to its Board of Directors and Audit Committee, joining former U.S. Secretary of Labor Alex Acosta. Dobriansky, a distinguished diplomat with extensive experience in international affairs, will contribute to Newsmax’s growth strategy. The company also issued a revenue guidance for fiscal 2025, projecting total revenue between $180 million and $190 million.

Newsmax Inc. Renews Distribution Deal with Verizon Fios

On May 29, 2025, Newsmax Inc. announced a multi-year renewal agreement with Verizon Fios for the continued distribution of its cable channel, Newsmax. This agreement allows Newsmax to maintain its presence on the Verizon pay TV platform, which reaches approximately three million subscribers, reinforcing its market position in the Northeast and Mid-Atlantic regions.