4. Newsmax Inc. (NYSE:NMAX)
Newsmax, Inc. (NYSE: NMAX) takes the No. 4 position after doing something particularly noteworthy: it turned an expected loss into a profit.
Based on the analyst estimate used for this ranking, Wall Street had been looking for a loss of $0.03 per share. Instead, Newsmax, Inc. (NYSE: NMAX) reported earnings of $0.02 per share, producing a positive EPS surprise of $0.05. In absolute terms, five cents may look smaller than some of the beats elsewhere in the ranking. Psychologically and financially, however, crossing from an expected loss into actual profitability is a more meaningful dividing line.
The quarter was historic for Newsmax, Inc. (NYSE: NMAX) in another respect. The company reported net income of $2.9 million, marking its first profitable quarter since becoming publicly traded. That compared with a massive $75.2 million net loss during the year-earlier period. Revenue reached a record $54.1 million, increasing 16.5% year over year, while adjusted EBITDA improved to $5.7 million from a negative $3.8 million.
The composition of that growth is worth examining. Broadcasting revenue rose 20.5% to $45.8 million. Affiliate-fee revenue surged 81.9% to $13.4 million, while licensing revenue jumped to $4.6 million from just $700,000 a year earlier. Those gains helped offset a 7% decline in broadcasting advertising revenue and weaker subscription revenue in parts of the business.
That matters because investors tend to prefer recurring or high-margin revenue streams. Affiliate fees are paid through distribution arrangements, while licensing can allow a media company to monetize content without carrying the same cost structure as traditional television production. Newsmax, Inc. (NYSE: NMAX) specifically identified affiliate fees and licensing as important contributors to its improving profitability.
Newsmax, Inc. (NYSE: NMAX) also highlighted its expansion into artificial intelligence-related content licensing. During the quarter, the company entered a multi-year content partnership with Meta and continued building international licensing relationships. Management said international licensing revenue was expected to rise sharply during 2026, while its broader media footprint included television, digital properties, social platforms and overseas licensing.
The company ended the quarter with $128.3 million in cash and short-term investments and reiterated full-year revenue guidance of $212 million to $216 million. Management nevertheless indicated that it remained in investment mode, meaning one profitable quarter should not automatically be interpreted as a straight-line path to sustained profitability.
Still, for investors looking at media stocks, NYSE stocks, earnings turnaround stocks and companies beating analyst estimates, Newsmax, Inc. (NYSE: NMAX) delivered a straightforward milestone: analysts were preparing for red ink, and the company instead reported black.
