Newsmax Inc. Reports 11.6% Revenue Growth to $45.3 Million in Q1 2025

Newsmax Inc. reported a significant increase in financial performance for the first quarter of 2025, with total revenues reaching $45.3 million, up 11.6% from $40.6 million in the same period last year. The growth was primarily driven by a $3.4 million increase in advertising revenue, which rose to $28.9 million, alongside a $0.6 million increase in subscription revenue, totaling $7 million. The company also saw a notable rise in affiliate fee revenue, which increased by $0.8 million to $7.4 million, reflecting new contractual relationships and rate increases. However, the company reported a net loss of $17.2 million, a substantial improvement from the $50.7 million loss recorded in the prior year.

In terms of operational changes, Newsmax completed a corporate reorganization in April 2024, transitioning to a new holding company structure. This was followed by a successful initial public offering (IPO) on March 28, 2025, which raised approximately $66.1 million. The IPO was part of a broader strategy that included a private placement of Series B Preferred Stock, which generated net proceeds of about $206.7 million. The company also executed a 6,765.396-for-1 stock split, effective March 31, 2025, which was reflected retroactively in all periods presented.

The company’s operational metrics indicate a growing audience, with over 40 million Americans reached monthly through its various media platforms. Newsmax's broadcasting segment generated $36.2 million in revenue, a 20.2% increase from the previous year, while the digital segment saw a decline in revenue to $9.1 million, down 13.1%. The broadcasting segment's adjusted EBITDA decreased to $2.2 million, primarily due to increased costs associated with programming and production, while the digital segment reported a larger loss of $3.3 million, attributed to higher operational costs and reduced advertising revenue.

Looking ahead, Newsmax aims to enhance its market position by investing in talent acquisition and expanding its content offerings. The company plans to increase its subscriber base for its Newsmax+ streaming service and further develop its international distribution channels. Despite the challenges posed by evolving consumer preferences and competition in the media landscape, Newsmax remains optimistic about its growth trajectory, supported by its strong financial position, which includes $126.7 million in cash and cash equivalents as of March 31, 2025. The company is committed to addressing its operational challenges and enhancing its internal controls to ensure sustained growth and compliance with regulatory requirements.