Newsmax Inc. Class B (NMAX) AI Stock Analysis

• Market Cap: $1.29B
• Dividend Yield: N/A
• Average Volume (3M): 743.32K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.96
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 400
• Sector: Communication Services
• Sector Strength: 97
• Industry: Broadcasting
• EPS (TTM): -0.59
• Shares Outstanding: 89,810,500
• 10 Day Avg. Volume: 799,426
• 30 Day Avg. Volume: 743,320
• 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: 1.36
• Enterprise Value/Revenue: 9.62
• Enterprise Value/Gross Profit: 20.72
• Enterprise Value/Ebitda: -17.50
• 1Y Price Target: $21.50
• Price Target Upside: 114.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 38 Underperform
• Price Target: $9.50 ▼(-5.28% Downside)

Newsmax Inc. faces significant financial and technical challenges. The company's strong revenue growth is overshadowed by negative equity and cash flow issues, while technical indicators suggest bearish momentum. The absence of valuation metrics further complicates the investment outlook.

Positive Factors

Revenue Growth

The significant year-over-year revenue growth indicates strong market demand and effective monetization strategies, supporting long-term business expansion.

New Distribution Agreement

The new agreement expands Newsmax's reach, potentially increasing viewership and advertising revenue, enhancing its competitive position in the media industry.

Gross Profit Margin

A strong gross profit margin suggests efficient cost management and pricing power, which can support profitability as the company scales.

Negative Factors

Negative Equity

Negative equity indicates potential solvency issues, which can limit financial flexibility and increase risk, impacting long-term sustainability.

Profitability Challenges

Ongoing profitability issues highlight operational inefficiencies that could hinder long-term growth and require strategic adjustments to improve margins.

Cash Flow Issues

Negative cash flows suggest challenges in sustaining operations without external financing, potentially impacting future investment and growth opportunities.

Newsmax Inc. Class B Business Overview & Revenue Model

Company Description

Newsmax Inc., through its subsidiaries, operates as television broadcaster and multi-platform content publisher. It operates in two segments broadcasting and digital. The company produces and licenses news, business news, and lifestyle content comprising Newsmax and Newsmax2 that offers 24/7 television news and informational programming channel. It also provides online advertising, including online display, email advertising, other online placements, print advertisements, subscriptions, including our collection of specialized health and financial newsletters, Newsmax Magazine and four online membership programs, and (3) e-commerce, primarily through our subsidiaries that sell nutraceuticals and nonfiction books on political, financial and health-related topics. The company was founded in 1998 and is based in Boca Raton, Florida. Newsmax Inc. operates as a subsidiary of Christopher Ruddy Revocable Trust

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
TGNA	―	$3.17B	7.08	15.43%	2.54%	5.89%	14.89%
SSP	―	$214.65M	5.00	8.30%	―	5.25%	―
GTN	―	$511.59M	3.03	7.23%	7.10%	7.03%	1727.49%
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
FUBO	―	$1.25B	14.64	25.83%	―	6.65%	―
IHRT	―	$414.78M	-1.21	―	―	3.18%	62.89%
NMAX	―	$1.29B	―	―	―	―	―

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.

The most recent analyst rating on (NMAX) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Newsmax Inc. Class B stock, see the NMAX Stock Forecast page.

Newsmax Inc. Reports Increased Revenue Amid Rising Costs

Newsmax Inc., a multi-platform media company, operates in the broadcast and digital sectors, providing news and lifestyle content through various channels including cable television, OTT, and digital platforms. The latest earnings report for the quarter ending June 30, 2025, reveals significant financial developments for Newsmax Inc. The company experienced a notable increase in total revenues, reaching $46.4 million, up from $39.2 million in the same quarter of the previous year. This growth was driven by both service and product revenues, with service revenue alone contributing $44.9 million. However, the company reported a net loss of $75.2 million for the quarter, compared to a loss of $4.8 million in the same period last year. Key financial metrics indicate a substantial increase in investments, rising from $58.3 million at the end of 2024 to $164.1 million by mid-2025. This reflects Newsmax’s strategic focus on expanding its market presence. Despite the increase in revenue, the company faced significant challenges with its operating expenses, particularly in general and administrative costs, which surged to $94 million from $21.5 million in the prior year. This increase was largely attributed to higher personnel and advertising costs. Looking ahead, Newsmax Inc. remains committed to leveraging its multi-platform model to drive growth and improve financial performance, as indicated by the management’s strategic initiatives and investment plans.

Newsmax Inc. Delays Quarterly Report Filing

Newsmax Inc. Class B has announced a delay in filing its Form 10-Q (Quarter Report) for the financial period ending June 30, 2025. The primary reason for the delay is the need for additional time to complete procedures related to the company’s financial reporting process. The company anticipates filing the report no later than the fifth calendar day following the prescribed due date. Newsmax Inc. does not expect any significant changes in its financial results compared to the corresponding period last year. The company is committed to maintaining compliance, as indicated by the signature of Darryle Burnham, Chief Financial Officer, on the notification.

The most recent analyst rating on (NMAX) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Newsmax Inc. Class B stock, see the NMAX Stock Forecast page.