Newsmax Delivers Its Strongest Quarter Since Going Public

Newsmax, the media company, reported stronger-than-anticipated third-quarter 2026 results on Friday, driving its stock price higher. The company posted earnings of 12 cents per share, exceeding forecasts of a 1-cent loss. Revenue increased by 52.5% compared to the previous year, reaching $69.03 million, surpassing the estimated $49.83 million.

This growth included a one-time termination fee of $14 million. Excluding the fee, revenue climbed 21.6% to a record $55 million. CEO Christopher Ruddy declared this quarter as Newsmax's strongest since going public, highlighting record underlying revenue and two consecutive quarters of positive adjusted EBITDA. Ruddy also noted a rise in audience engagement during the midterm election campaign, which could bolster growth leading up to the 2028 presidential election.

Newsmax is broadening its reach through cable, streaming, social media, and artificial intelligence to tap into new revenue avenues. Broadcasting revenue grew by 65.9% to $60.7 million, with digital revenue falling 4.1% to $8.3 million. Higher affiliate fees, new contracts, rate hikes, and international licensing agreements contributed to the surge.

Adjusted EBITDA improved to $19 million, up from a $900,000 loss the previous year, excluding the $14 million one-time termination fee. Net income reached $15.2 million, reversing a year-earlier loss of $4.1 million. The company ended September with $137.6 million in cash and short-term investments, and reported no debt. Newsmax maintained its underlying revenue forecast for 2026, projecting between $212 million and $216 million, in line with analysts' expectation of $214.77 million.

The company anticipates $16 million in international licensing revenue for 2026, a 344% increase year over year. Newsmax highlighted its long-term partnership with Meta Platforms (NASDAQ:META) and sees further opportunities in AI content licensing. The company plans to cut expenses on legacy publications while investing in streaming, digital distribution, and international licensing. Newsmax's shares climbed 20.03% to $8.750 in premarket trading on Friday.