Newsmax Inc. 2025 Annual Report (10-K) Summary
Business Context and Reporting Period
Company: Newsmax Inc. (Ticker: NMAX)
Reporting Period: Fiscal Year Ended December 31, 2025
Business Overview: Newsmax is a multi-platform media company operating through two segments: Broadcasting (linear cable, satellite, and FAST/OTT streaming) and Digital (online advertising, subscriptions, and e-commerce). The company went public via an IPO on March 28, 2025, listing on the NYSE. It operates a dual-class share structure where the CEO holds Class A shares with 10 votes per share, controlling approximately 81.5% of voting power.
Key Financial Metrics (Year Ended Dec 31, 2025)
| Metric | 2025 | 2024 |
|---|---|---|
| Total Revenue | $189.3 million | $171.0 million |
| Gross Profit | $74.4 million | $78.0 million |
| Gross Margin | 39.3% | 45.6% |
| Net Loss | $(99.5) million | $(72.2) million |
| Adjusted EBITDA | $(6.5) million | $10.2 million |
| Cash & Cash Equivalents | $20.4 million | $24.1 million |
| Investments | $110.9 million | $58.3 million |
| Settlement Liabilities | $69.6 million (Total) | $54.6 million (Total) |
Note: The Net Loss includes $78.6 million in "Other corporate matters," primarily related to legal settlements.
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased 10.7% to $189.3 million. Broadcasting revenue grew 17.3% to $153.3 million, driven by higher advertising rates and affiliate fees. Digital revenue declined 10.9% to $35.9 million, attributed to post-election advertising normalization.
- Profitability Decline: Gross profit decreased 4.6% due to increased production costs and headcount. Net loss widened by 37.9% to $99.5 million, largely driven by a $67.0 million settlement with Dominion Voting Systems and increased public company operating expenses.
- Capital Structure: The company completed a $206.7 million private placement of Series B Preferred Stock and a $67.5 million IPO in March 2025. All preferred stock converted to common stock upon the IPO.
- Segment Performance: Broadcasting Adjusted EBITDA fell 45.6% to $10.7 million due to strategic investments in content and public company costs. Digital Adjusted EBITDA turned negative at $(17.2) million.
Guidance, Risks, and Contingencies
- Legal Contingencies:
- Dominion Voting Systems: Settled for $67.0 million. $27.0 million paid in August 2025; $20.0 million due Jan 2026; $20.0 million due Jan 2027. $40.0 million is held in escrow.
- Smartmatic: Settled for $40.0 million; fully satisfied as of Dec 31, 2025.
- Commercial Counterparty: $29.6 million remaining to be paid through 2029.
- Internal Controls: Management identified material weaknesses in internal control over financial reporting, including lack of adequate policies, insufficient segregation of duties, and ineffective IT general controls. Remediation is ongoing.
- Liquidity: The company holds $20.4 million in cash and $110.9 million in investments. Management believes this is sufficient for the next 12 months despite significant settlement obligations.
- Key Risks: Dependence on a limited number of distributors (MVPDs), seasonality of political advertising, cybersecurity threats, and the speculative nature of the nutraceutical business (Medix Select).
Investor Verification Checklist
- Settlement Obligations: Verify the cash flow impact of the remaining $40.0 million Dominion settlement payments due in 2026 and 2027.
- Internal Controls: Monitor the progress of remediation efforts for the disclosed material weaknesses in financial reporting and IT controls.
- Digital Segment Trends: Assess whether the 10.9% decline in Digital revenue is a temporary post-election effect or a structural shift in the business model.
- Capital Allocation: Review the use of proceeds from the $274 million raised in 2025 (Private Placement + IPO) against the burn rate and settlement payments.
- Concentration Risk: Evaluate the stability of carriage agreements with major MVPDs, given the company's reliance on a limited number of distributors.