Newsmax's Q2 report delivered better-than-expected sales and earnings.
Increasing sales contributions from licensing and affiliate fees could improve the business's margin profile.
Newsmax (NYSE: NMAX) stock is seeing big gains in Friday's trading. The company's share price had risen 19% as of 11:45 a.m. ET amid a 0.3% decline for the S&P 500 and a 0.5% dip for the Nasdaq Composite.
Newsmax is rallying today following the release of its second-quarter report, which the company published after the market closed yesterday. With today's big pop, the stock is now up roughly 46% in 2026.
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Newsmax unexpectedly posted a profit in the second quarter, recording per-share earnings of $0.03 that came in significantly better than the average Wall Street analyst estimate's call for a loss of $0.03 per share. Meanwhile, revenue grew 16.5% year over year to come in at roughly $54.1 million and beat the average analyst target by approximately $5.5 million. Broadcast revenues increased 20.5% year over year to $45.8 million, and the company's total audience reach increased 4% to hit $26.9 million viewers.
Along with its Q2 report, the company reiterated its guidance for full-year sales between $212 million and $216 million. While the company had already established this sales target, there was some fresh good news for investors.
Management expects that affiliate fees and licensing will play increasing roles in the company's revenue generation. Along those lines, Newsmax expects to record about $16 million in international licensing fees this year -- and the multi-year nature of these deals suggests that it will set a performance floor. Licensing and affiliate revenues are relatively high-margin, and growth in these categories could significantly improve the company's earnings.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.