Newsmax Stock Reverses 17% After Mixed Earnings Report

Stock Reverses 17% After Gapping Up to $6.90

Shares of Newsmax Inc. (NYSE: NMAX) saw a dramatic intraday reversal on Friday, March 29. The stock opened at $6.90, a 15.4% gap up from its previous close of $5.98, signaling initial bullish sentiment. However, the gains were quickly erased as the stock sold off, dropping 17.3% from its opening price to last trade at $5.7050 on a volume of 862,233 shares. This price action, creating a failed breakout, suggests significant investor indecision and aligns with a "sell (d-)" rating reaffirmed by Weiss Ratings.

Record $189.3M Revenue Undercut by $99.5M Net Loss

The market volatility comes just days after Newsmax released its fiscal year 2025 financial results on March 26. The report highlighted record full-year revenues of $189.3 million, an increase of 10.7% year-over-year. This growth was driven by a strong 17.3% rise in broadcasting revenues to $153.3 million. However, the positive top-line performance was heavily counteracted by a reported net loss of $(99.5) million for the year. The company attributed a significant portion of the loss, approximately $79 million, to legal settlement expenses. Adjusted EBITDA for the year was $(6.5) million, reflecting ongoing strategic investments.

Digital Revenue Falls 10.9% as Company Appoints New Expert

A critical point of concern within the earnings report was the performance of the company's digital segment, which saw revenues decline 10.9% to $35.9 million for 2025. This weakness stands in stark contrast to the robust growth in its core broadcasting business. In a strategic move to address this, Newsmax announced on March 23 the appointment of David Evans to its Board of Directors. Evans brings 25 years of public company leadership, including extensive experience scaling digital media businesses as the former COO and New Media President at Salem Media Group. His appointment signals a clear focus on reversing the digital decline and executing on the company's 2026 growth projection of $212 million to $216 million in revenue.