Executive Summary

NMAX’s first public-quarter delivered double-digit top-line growth: revenue rose 11.6% YoY to $45.3M on stronger linear ratings, higher ad pricing, and affiliate fee uplift; gross profit rose 6.8% with gross margin at 47.8% (down ~220 bps YoY) as costs stepped up with public company readiness and programming investments .
Profitability remained negative: net loss improved to $(17.2)M from $(50.7)M YoY on lapping large prior-year legal costs, but Adjusted EBITDA swung to $(1.2)M from $3.2M on higher cost of revenues and G&A tied to expansion, IPO-related costs, and inauguration coverage .
Demand signals healthy: ad revenue +13.5% YoY, affiliate +12.5%, and subscription +10.2% driven by ratings strength (Q1 viewers 33.6M, +50% YoY) and Newsmax+ growth; Broadcast segment revenue +20.2% YoY, while Digital declined as election-cycle strength faded .
Balance sheet strengthened post-IPO/private raise (cash and cash equivalents $126.7M) providing flexibility for distribution expansion and content investments; internal control material weaknesses and ongoing Dominion litigation remained key watch items in Q1 .
Consensus estimates: S&P Global did not show Q1 2025 EPS/Revenue consensus for NMAX (recent IPO); thus, no beat/miss vs Street can be assessed this quarter. S&P Global consensus was unavailable.

What Went Well and What Went Wrong

What Went Well
- Ratings/viewership momentum: “record 33.6 million viewers… up 50% YoY,” with Newsmax the fourth highest-rated cable news channel and second in engagement among ages 35–64; CEO highlighted strengthened distribution across cable and streaming, including Hulu + Live TV and international agreements .
- Broad-based revenue growth: Advertising +13.5% YoY to $28.9M on higher ratings/pricing; Affiliate +12.5% to $7.4M on new contracts/rate increases; Subscription +10.2% to $7.0M on Newsmax+ growth .
- Liquidity: cash and cash equivalents of $126.7M (+427% vs 12/31/24), bolstered by pre-IPO and IPO raises; CFO emphasized capital access supporting momentum and long-term shareholder value .
What Went Wrong
- Profitability pressure: Adjusted EBITDA $(1.2)M vs $3.2M YoY on higher cost of revenues, G&A tied to expansion and public company costs, and inauguration coverage; gross margin fell to 47.8% from 50.0% .
- Digital softness: Digital revenue fell 13.1% YoY (ads and subscriptions down following election-year comps), with Digital segment Adjusted EBITDA declining to $(3.3)M from $(0.6)M .
- Controls and legal overhang: management disclosed material weaknesses in internal control over financial reporting as of Q1; Dominion defamation suit remained ongoing with outcomes/financial impact uncertain at that time .

Financial Results

Metric	Q1 2024	Q1 2025	Street Consensus (Q1 2025)
Revenue ($)	$40,599,645	$45,301,707	N/A – S&P Global consensus unavailable
Gross Profit ($)	$20,295,628	$21,667,079	N/A
Gross Profit Margin (%)	50.0%	47.8%	N/A
Net Loss ($)	$(50,683,687)	$(17,232,525)	N/A
Net Loss per Share ($)	$(1.27)	$(0.49)	N/A
Adjusted EBITDA ($)	$3,197,825	$(1,168,302)	N/A

Segment breakdown (Q1 2025):

Revenue by segment and component

Segment	Revenue ($)	YoY	Notes
Broadcasting	$36,187,178	+20.2%	Ad +$4.3M YoY; affiliate +$0.8M; subscription +$1.3M; other −$0.3M
Digital	$9,114,529	−13.1%	Digital ads and subs lower post-election; product sales +$0.13M

Segment Adjusted EBITDA (Q1 2025)

Segment Adjusted EBITDA ($)
Broadcasting $2,151,242
Digital $(3,319,544)
Total Reportable Adjusted EBITDA $(1,168,302)

KPIs and balance sheet:

Viewership: 33.6M quarterly viewers, +50% YoY; 4th highest-rated cable news channel; 5th highest-rated network total day; 2nd in engagement ages 35–64 .
Cash and Cash Equivalents: $126.7M at 3/31/25 .

Note on sequential comps: As a new public company (listed Mar 31, 2025), detailed public Q4 2024 quarterly results were not furnished; sequential (QoQ) comparisons to Q4 2024 are not available in company filings .

Guidance Changes

Q1 2025: No formal financial guidance provided in the earnings materials .
Subsequent update (context): In Q2 and Q3 2025, the company reiterated FY25 revenue guidance of $180–$190M .

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2025	N/A (Q1 2025)	None issued in Q1	—

Note: FY25 revenue guidance of $180–$190M was reiterated in Q2/Q3 post-Q1 period for investor context .

Earnings Call Themes & Trends

No public Q1 2025 earnings call transcript was located; themes below draw from the 8-K/10-Q and compare narrative evolution.

Topic	Previous Mentions (Q-2, Q-1)	Current Period (Q1 2025)	Trend
Distribution/affiliate fees	No public call transcripts available; company was private pre-IPO	Affiliate fees +12.5% YoY on new contracts and 2025 rate increases	Positive: contract/rate momentum
Advertising environment	N/A	Linear ad +21.3% YoY in Broadcast; digital ads down vs election year	Mixed: linear strong, digital normalizing
Subscriptions (Newsmax+)	N/A	Subscriptions +10.2% YoY; Broadcast subs +52% YoY on Newsmax+ growth	Positive: DTC traction
Costs/margins	N/A	Gross margin 47.8% (down from 50.0%); higher cost of revenues and public company costs	Pressure near term
Legal/regulatory	N/A	Smartmatic settlement drove high prior-year costs; Dominion case ongoing	Risk overhang persists
Controls & governance	N/A	Material weaknesses in ICFR disclosed; remediation plan underway	Remediation in progress

Management Commentary

CEO (Christopher Ruddy): “We are thrilled to share our first earnings results as a publicly traded company… Newsmax has grown into the fourth highest-rated cable news channel… Our growth is due in part to our continued mission of providing… balanced coverage, diverse viewpoints and open debates.”
CEO: “Our strong relationships with distributors and advertisers, such as our… agreement with Hulu + Live TV… Supercanal… Cellcom Israel and Telecom Armenia… ensure that our content reaches broader audiences across platforms.”
CFO (Darryle Burnham): “With enhanced access to capital from our pre-IPO and IPO raises, we are well-positioned to sustain our momentum… we remain focused on delivering long-term value to our shareholders.”

Q&A Highlights

No Q1 2025 earnings call transcript was available in the company’s document set; no Q&A themes to report for the quarter.

Estimates Context

S&P Global consensus estimates were not available for NMAX’s Q1 2025 EPS or revenue (recent IPO), so a beat/miss versus Street could not be assessed. S&P Global consensus was unavailable.

Key Takeaways for Investors

Ratings-led revenue growth with multi-pronged drivers (ads, affiliate, subscriptions) supported an 11.6% YoY top-line increase; Broadcast segment strength offset election-cycle normalization in Digital .
Margins compressed as costs rose for programming, headcount, and public company readiness; near-term profitability remains a function of cost discipline versus growth investments .
Strong liquidity from pre-IPO and IPO (cash and cash equivalents $126.7M) gives ample runway for distribution expansion, content, and talent initiatives .
Legal and governance watch items: Dominion remains unresolved (as of Q1) and material weaknesses in ICFR require sustained remediation; both are potential valuation overhangs until addressed .
Strategic upside: affiliate fee repricing as contracts renew, incremental distribution (Hulu + Live TV, international), and scaling Newsmax+ represent medium-term monetization catalysts .
KPI momentum is a differentiator (33.6M viewers, +50% YoY; engagement strength), supporting ad pricing and affiliate negotiations; monitor if audience gains persist post-election cycles .
For trading: absence of consensus makes headline beat/miss less catalytic; narrative catalysts skew toward distribution deals, guidance initiation/updates, litigation milestones, and evidence of margin inflection.

Appendix: Additional Context on Subsequent Quarters (for trajectory)

Q2 2025: Revenue $46.4M (+18.4% YoY); net loss $(75.2)M primarily due to Dominion settlement recognition; Adjusted EBITDA $(3.8)M; FY25 revenue guidance reiterated at $180–$190M .
Q3 2025: Revenue $45.3M (+4.0% YoY); net loss $(4.1)M; Adjusted EBITDA $(1.8)M; FY25 revenue guidance reiterated .

Sources:

Q1 2025 8-K press release and financials .
Q1 2025 Form 10-Q narrative and financials .
Q2 2025 8-K press release/financials .
Q3 2025 8-K press release/financials .

Newsmax Inc. (NMAX)·Q1 2025 Earnings Summary