| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 14 | — | 17.3x | Bottom tier | |
Growth | 82 | 11.1% | 7.1% | Top tier | |
Quality | 30 | -12.2% | 4.5% | Bottom tier | |
Safety | 44 | — | 2.6x | Around median | |
Capital Return | 28 | 0.00% | 0.06% | Bottom tier | |
Momentum | 58 | 1.4% | -1.6% | Around median | |
Sentiment | 18 | 1 | 3 | Bottom tier |
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Newsmax operates a multiplatform media ecosystem that includes its linear television news network, the paid streaming service Newsmax+, the free Newsmax2 channel, digital and social media platforms, apps, podcasts, and radio. The company generates revenue from advertising, distribution fees paid by cable operators, subscriptions, international content and brand licensing, and product sales. The same content creates multiple monetization opportunities, as higher viewership simultaneously supports advertising demand, bargaining power over distribution fees, and the appeal of Newsmax+.
In Q2 FY2026, Newsmax reported record revenue of $54.1 million, up 16.5% year over year, and net income of $2.9 million, or $0.02 per share, marking its first quarterly profit since becoming a public company. Gross profit reached $23.3 million, and gross margin rose to 43.1% from 38% in the comparable period, while adjusted EBITDA reached $5.7 million versus negative $3.8 million a year earlier. Management attributed the improvement to growth in higher-margin revenue, improved operating efficiency, and the absence of legal settlement expenses recorded in the prior period.
Broadcasting was the primary growth driver in Q2 FY2026, with revenue rising 20.5% to $45.8 million, representing about 84.7% of total revenue, while digital revenue declined 1.3% to $8.3 million. By component, advertising revenue was $28.8 million, distribution fees were $13.4 million, subscriptions were $6.3 million, licensing was $4.6 million, and product sales were $1.1 million. Meanwhile, the twelve-month period labeled 2026 TTM in EDGAR data recorded revenue of $203.3 million and gross profit of $80.6 million, but still posted a net loss of $6.4 million.
Automated analysis for informational purposes only — not investment advice.
The market capitalization of approximately $1 billion equals about 4.9 times 2026 TTM revenue of $203.3 million, while no reliable positive earnings multiple is available because of the $6.4 million net loss during the same period. The 52-week range extends from $5.11 to $13.60, a difference of approximately 2.7 times between the endpoints, while an August 14, 2026 news report noted caution regarding the high valuation relative to sales. Justifying this valuation depends on sustaining the shift to profitability and growth in distribution fees and licensing, and the provided data contain no price targets or consensus recommendations that could serve as an additional valuation anchor.
Figures in the text are as of 2026-09-12; the live price is shown at the top of the page.
In Q2 FY2026, revenue rose 16.5% to $54.1 million, and the company recorded net income of $2.9 million and earnings per share of $0.02. Distribution fees jumped 81.9% to $13.4 million, and licensing revenue increased to $4.6 million from $0.7 million, shifting the mix toward higher-margin sources. Improved operating efficiency and the absence of legal settlement expenses recorded in the comparable period also helped raise adjusted EBITDA to $5.7 million from negative $3.8 million.
Advertising revenue reached $28.8 million, remaining the largest individual component despite declining 3.5% year over year. Distribution fees were $13.4 million, subscriptions were $6.3 million, licensing was $4.6 million, and product sales were $1.1 million. By segment, broadcasting generated $45.8 million of the $54.1 million total, compared with $8.3 million from the digital segment.
Management expects approximately $16 million in international licensing fees in FY2026, compared with $3.6 million in FY2025, representing expected growth of 344%. The August 13, 2026 call confirmed that the 2026 estimate is based on existing agreements and that the contracts are multiyear, while also indicating an annual run rate of $25 million for FY2027. The launch of Newsmax Poland in Q2 FY2026 further strengthened the company's presence, which spans more than 100 countries.
Newsmax described the agreement with Meta as a multiyear content partnership under which its journalism and reporting contribute to AI-generated answers across the Meta ecosystem. During the August 13, 2026 call, the company did not disclose the financial value of the agreement or provide separate revenue guidance for it. Management said it was holding discussions with other AI companies, but the provided data included no additional announced contracts or financial estimates for them.
Management maintained its FY2026 revenue guidance range of $212 million to $216 million, equivalent to growth of approximately 13% at the midpoint. The company expects expansion in distribution fees and licensing to drive growth and operating performance to improve compared with FY2025. According to the August 13, 2026 call, the approximately $16 million international licensing estimate for FY2026 is based on signed agreements.
Despite the Q2 FY2026 profit, the 2026 TTM period recorded a net loss of $6.4 million, making the sustainability of profitability a key issue. Advertising declined 3.5% to $28.8 million, subscriptions fell 9.9% to $6.3 million, and digital revenue declined 1.3% to $8.3 million during the quarter. The approximate sales multiple of 4.9 times also increases valuation sensitivity if the company fails to achieve its FY2026 revenue range of $212 million to $216 million or sustain its margin improvement.