Newsmax Inc. (NMAX)

Price$10.55Cached quoteAs of 2026-09-04 16:23 UTC

AI: Overvalued

Price checkThe market price assumes a profit surge that one strong quarter cannot yet prove.

With roughly 129.2 million shares outstanding, the observed price implies about $1.47 billion of market value. That equals about 7.2 times the latest twelve months’ $203.3 million revenue. The company lost $6.4 million over those four quarters, so a normal earnings multiple is unavailable; annualizing its $2.9 million second-quarter profit instead gives roughly 128 times earnings. Even after about $117 million of net liquid assets, the operating business trades near 6.7 times revenue. That is demanding for newly achieved profitability.

Big pictureRevenue is growing, but durable profit and cash generation remain unproven.

Revenue in the latest four quarters reached $203.3 million, and second-quarter revenue grew 16.5% while net income turned positive at $2.9 million. Yet first-half net income was only $0.7 million. In 2025, operations consumed $104.5 million of cash; first-half 2026 use narrowed to $2.8 million. After $1.4 million of equipment spending, free cash flow—cash left after running and investing in the business—was still negative $4.1 million. Advertising fell 3.6% as election demand faded, although affiliate fees and licensing reduced that cycle risk.

Business strengthLiquid investments protect the downside, while past share issuance diluted existing owners.

June liquidity included $25.9 million cash and $102.4 million investments, against $11.6 million debt; a separate $20 million escrow fully covers the final Dominion installment. Current assets were 2.4 times current liabilities, providing breathing room. The cost was dilution: 2025 financing supplied $154.0 million, while first-half weighted shares rose about 48% year over year. First-half stock compensation was $6.7 million, nearly ten times net income. A $1.2 billion standby share-sale facility remained unused, but warrants, options, and future sales could enlarge the share count. No buybacks offset this.

What could change the storyRepeated profits could support the valuation, but weak execution would expose its optimism.

Management maintained 2026 revenue guidance of $212 million to $216 million and expects licensing revenue near $16 million, up 344%. The bull case strengthens if affiliate fees and low-capital licensing keep gross margin above the latest quarter’s 43.1% and produce several quarters of positive free cash flow. The bear case wins if advertising and subscriptions keep shrinking or licensing stalls. The valuation needs much more scale: even $40 million of sustainable annual profit would leave the shares near 37 times earnings, far above today’s annualized quarterly profit.

AI: News

First public-company profitQuarterly profit and faster revenue growth showed that higher-fee contracts can reshape the business.

On August 13, Newsmax reported second-quarter revenue of $54.1 million, up 16.5%, and net income of $2.9 million, its first quarterly profit as a public company. Affiliate-fee revenue rose 81.9% and licensing revenue rose more than fivefold, lifting adjusted earnings before interest, taxes, depreciation, and amortization to $5.7 million. Management kept 2026 revenue guidance at $212 million to $216 million. Shares closed about 14.5% higher the next session; the timing suggests a reaction, but does not prove causation.

Meta content partnershipMeta will use Newsmax content in artificial intelligence products, opening a potentially high-margin licensing channel.

On July 28, Newsmax announced a multi-year agreement allowing Meta to use current and archived reporting for artificial intelligence queries across its apps and devices. Financial terms were not disclosed, so the direct earnings value remains uncertain. Bloomberg Law reported the shares up 7% before the market opened. The strategic value is a new way to monetize existing content with little added production cost, but the lack of disclosed payments prevents judging whether this single contract materially changes profit.

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Revenue

2023

2024

2025

Net income

2023

2024

2025

Free cash flow

2023

2024

2025

Total cash / debt

CashTotal debt

2023

2024

2025

Financial statements

	2025	2024	2023
Revenue	$189.3M	$171.0M	$135.3M
Gross profit	$74.4M	$78.0M	$55.8M
Gross margin	39.32%	45.61%	41.26%
Operating expenses	$174.3M	$147.8M	$77.0M
Operating income	−$99.9M	−$69.8M	−$21.2M
Operating margin	−52.76%	−40.82%	−15.65%
EBITDA	−$93.5M	−$63.6M	−$38.0M
EBITDA margin	−49.42%	−37.21%	−28.12%
Net income	−$99.5M	−$72.2M	−$41.8M
Net profit margin	−52.57%	−42.20%	−30.88%
Basic EPSper basic share	-$0.96	-$1.95	-$1.06
Diluted EPSper diluted share	-$0.96	-$1.95	-$1.06

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈25.63%of listed shares

CONYERS INVESTMENTS LLC / Peterffy Thomas23.05M shares · Mar 28, 2025

View holders

Top 20 reported holders of NMAX
Holder	% owned
CONYERS INVESTMENTS LLC / Peterffy Thomas	≈25.63%23.05M shares
Greenwich Wealth Management LLC	25.35%22.8M shares
Naples Investment Holdco LLC / GTCS Directors Ltd / Heritage GP Ltd / Heritage Investments Limited Partnership / GTCS Nominees Ltd / Heritage Investment Holdings Ltd / bin Jassim Al-Thani Sheikh Sultan	≈21.95%19.74M shares
BlackRock, Inc.	3.14%2.82M shares
VANGUARD CAPITAL MANAGEMENT LLC	1.63%1.46M shares
AQR CAPITAL MANAGEMENT LLC	1.49%1.34M shares
STATE STREET CORP	0.86%775.36K shares
GEODE CAPITAL MANAGEMENT, LLC	0.71%640.1K shares
GOLDMAN SACHS GROUP INC	0.61%549.23K shares
VANGUARD PORTFOLIO MANAGEMENT LLC	0.54%487.69K shares
HRT FINANCIAL LP	0.44%394.75K shares
CITADEL ADVISORS LLC	0.41%365.83K shares
MILLENNIUM MANAGEMENT LLC	0.34%306.91K shares
NORTHERN TRUST CORP	0.32%286.32K shares
Point72 Asset Management, L.P.	0.23%205.41K shares
MORGAN STANLEY	0.20%182.22K shares
IEQ CAPITAL, LLC	0.20%179.28K shares
LPL Financial LLC	0.20%176.16K shares
Creative Planning	0.15%136.7K shares
XTX Topco Ltd	0.14%129.89K shares

Percentages use 89.92M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 3 ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)0$0.00 disclosed value

No insider transactions transactions were reported in the stored SEC coverage.

Review ownership filings at SEC.gov ↗

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