GET DAILY SIGNALSNewsmax (NMAX) Delivers +52.5% Revenue Growth and Surprise Profit in Q3 2026
Key Takeaways
- Third quarter 2026 total revenue reached $69.0 million, up 52.5% year over year, or a record $55.0 million excluding a one-time $14.0 million termination payment.
- Diluted earnings per share (EPS) came in at $0.12, well above the consensus estimate of a $0.01 loss per share.
- Net income was $15.2 million, swinging from a $4.1 million loss a year earlier and marking a second consecutive profitable quarter.
- Affiliate fees rose 77.4% and licensing revenue jumped 291%, shifting the mix toward higher-margin revenue streams.
- Adjusted EBITDA was $19.0 million, or $5.0 million excluding the one-time item, versus negative $0.9 million a year ago.
- Newsmax ended the period with $137.6 million in cash and short-term investments and no debt.
Why This Quarter Matters
Newsmax reported third quarter 2026 results after the close on November 12, 2026, extending a turnaround that began earlier in the year, when the company posted its first profit as a public entity. The quarter matters because it shows whether growth in affiliate fees and international licensing can offset softness in the advertising market, which remains pressured outside election cycles. Investors were watching whether Newsmax could sustain profitability while continuing to invest in programming, streaming, and distribution. With the 2026 midterm cycle underway and a larger presidential cycle ahead, this report offers an early read on audience engagement and the durability of the company's higher-margin revenue shift. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Breaking Down the Numbers
Newsmax reported total revenue of $69.0 million for the quarter ended September 30, 2026, a 52.5% increase from $45.3 million in the prior-year period. The figure included a one-time $14.0 million service revenue termination payment; excluding that item, revenue was a record $55.0 million, up 21.6% year over year.
Growth was driven by the Broadcasting segment, which climbed 65.9% to $60.7 million. Affiliate fee revenue rose 77.4% to $14.3 million, while licensing revenue surged 291% to $4.7 million. Broadcasting advertising rose 3.1% to $24.3 million, and the Digital segment declined 4.1% to $8.3 million.
Net income was $15.2 million, or $0.12 per diluted share, compared with a net loss of $4.1 million, or $0.03 per share, a year earlier. Results exceeded the consensus estimate for a loss of $0.01 per share. Adjusted EBITDA reached $19.0 million, up from negative $0.9 million, and stood at $5.0 million excluding the one-time item. The company reported operating cash flow of $10.4 million and ended the quarter with $137.6 million in cash and short-term investments and no debt.
How the Market Reacted
Shares of NMAX rose roughly 12.9% in after-hours trading following the release, reflecting a positive response to a result that combined record revenue, a surprise profit, and a second consecutive profitable quarter. The beat was powered by strength in affiliate fees and licensing rather than advertising, a dynamic investors have favored because those streams carry higher margins and greater visibility. Management framed the quarter as the strongest in the company's history as a public entity, citing engagement gains through the midterm campaign. Sentiment heading into the report had been cautious, with consensus still modeling a small per-share loss, so the swing to profitability was the key driver of the positive reaction.
What to Watch Going Forward
Looking ahead, investors will watch whether Newsmax can convert its growing affiliate and licensing revenue into sustained profitability without the help of one-time items. Management has signaled that the company is positioned across cable, free streaming, its Newsmax+ platform, social channels, and emerging AI initiatives ahead of what it expects to be the largest presidential cycle on record.
Key factors to monitor include the pace of affiliate fee growth as rate increases and new contracts take effect, continued expansion of international licensing agreements, and any recovery in the advertising market. The Digital segment, which remains a source of losses, will also be in focus as the company works to stabilize subscriptions and product sales.
On the balance sheet, Newsmax holds no debt and a substantial cash and short-term investment position, but it also carries settlement obligations, including a remaining payment to Dominion Voting Systems due in January 2027 that is secured in escrow. Investors will likely watch capital allocation, cost trends in programming and production, and whether margin expansion continues as the revenue mix shifts toward higher-margin streams.
Using AI Tools in My Research
When evaluating media and broadcasting names like NMAX, I often turn to Tickeron’s AI Screener to filter for technical patterns, fundamentals, and momentum shifts across the sector. It provides a structured way to identify candidates and monitor changes more efficiently than manual screening, which helps me stay on top of evolving trends without getting overwhelmed by data.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
NMAX in upward trend: price may jump up because it broke its lower Bollinger Band on November 05, 2026
NMAX may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 12 of 14 cases where NMAX's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 86%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where NMAX's RSI Indicator exited the oversold zone, 9 of 13 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 69%.
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 12 of 17 cases where NMAX's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 71%.
The Moving Average Convergence Divergence (MACD) for NMAX just turned positive on November 09, 2026. Looking at past instances where NMAX's MACD turned positive, the stock continued to rise in 8 of 11 cases over the following month. The odds of a continued upward trend are 73%.
Following a +1.88% 3-day Advance, the price is estimated to grow further. Considering data from situations where NMAX advanced for three days, in 68 of 84 cases, the price rose further within the following month. The odds of a continued upward trend are 81%.
Bearish Trend Analysis
NMAX moved below its 50-day moving average on October 13, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for NMAX crossed bearishly below the 50-day moving average on October 12, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 4 of 6 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 67%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NMAX declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 84%.
The Aroon Indicator for NMAX entered a downward trend on November 11, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 59 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 63 (best 1 - 100 worst), indicating fairly steady price growth. NMAX’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 78 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.376) is normal, around the industry mean (3.429). P/E Ratio (43.176) is within average values for comparable stocks, (112.313). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (1.298). Dividend Yield (0.000) settles around the average of (0.045) among similar stocks. P/S Ratio (6.645) is also within normal values, averaging (8.232).
The Tickeron SMR rating for this company is 92 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. NMAX’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 97, placing this stock worse than average.
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