NMAX

Image source: The Motley Fool. Thursday, Aug. 13, 2026 at 4:30 p.m. ET Investor Relations - Chris Odeh Chief Executive Officer - Chris Ruddy Chief Financial Officer - Darryle Burnham Operator: Good day, ladies and gentlemen, and welcome to the Newsmax Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note, this conference call is being recorded. I will now turn the conference over to your host, Mr. Chris Odeh with Investor Relations. Sir, the floor is yours. Chris Odeh: Good afternoon, and welcome to Newsmax's Second Quarter 2026 Earnings Conference Call. I'm joined today by Chris Ruddy, Chief Executive Officer; and Darryle Burnham, Chief Financial Officer. On this call, Chris and Darryle will provide prepared remarks on the most recent quarter. We will then take questions from the investment community. A recording of this conference call will be available on our Investor Relations website shortly after the call has ended. Please note that this call may include forward-looking statements regarding Newsmax's financial performance and operating results. These statements are based on management's current expectations. Actual results could differ from what is stated due to certain factors identified on today's call and in the company's SEC filings. Additionally, this call will include certain non-GAAP financial measures. Reconciliations of these measures are included in the earnings release and our SEC filings, which are available in the Investor Relations section of our website. I will now turn the call over to Chris Ruddy, Chief Executive Officer of Newsmax. Chris? Christopher Ruddy: Thank you, Chris, and welcome, everyone, to our second quarter 2026 earnings call. The story of the second quarter is simple. We did what we said we would do and more. Revenue came in at a record $54.1 million, up 16.5% year-over-year. And for the first time as a public company, Newsmax was profitable. We delivered net income for the quarter of $2.9 million and adjusted EBITDA of $5.7 million. Let me put the profitability in perspective. The onetime costs of becoming a public company and legal costs are now largely behind us. These numbers carry less noise and give a cleaner view of the business. We are encouraged by what we see, and we'll look to invest behind this growth. We remain in strategic investment mode. That will not change. We are also seeing growth in key areas of our business. Broadcast revenue rose 20.5% to $45.8 million, led by our higher-margin affiliate fees and licensing. Overall, the value creation opportunities of our multi-platform model are showing positive results. Our audience tells the same story. Despite the post-cycle normalization, total viewership rose again. We reached 26.9 million total viewers, up 4% year-over-year. This represents our highest second quarter reach in the past 4 years. Our total viewers also include 11.3 million adults 35-64. We remain the fourth highest-rated cable news channel and ranked #2 in the category for engagement among adults 35-64. Even when the news cycle slows, our viewers stay with us, and we continue to grow. Our audience is highly loyal. That is one of the great strengths of the Newsmax brand. The way people find news is not standing still and neither are we. We maintain a strong presence on social media. Our growth there is resilient. Total followers climbed over 28% year-over-year to over 26 million. This shift in news consumption has also increasingly been moving to AI and we continue to be at the forefront in meeting viewers where their preferences evolve. We are excited about our multiyear AI content partnership with Meta. Our journalism and reporting will help power AI answers across Meta's ecosystem, social, streaming, AI. We see this as the beginning of our AI efforts and it's nice to start with a bang by partnering with one of the largest online companies in the nation. None of this works without a solid foundation. Newsmax is the fastest-growing basic cable network since Nielsen began measuring us in 2020, up more than 280% across key dayparts. That broadcast strength is what allows us to invest in the rest of the platform. Even as consumption shifts across platforms, there is still a strong place for linear news. We are well positioned to maintain that presence. Streaming continues to be a strategic focus for us. It's a key investment area and the next frontier of our business evolution. On our year-end call, we said Newsmax+ needed stronger content and more on-demand programming and that we would put resources behind it. We have the Newsmax+ catalog now tops 300 titles, including broadening our content library of family-friendly content, including more new original premium specials and documentaries. Newsmax2, our free streaming channel, keeps gaining ground on the major platforms with news hours continuing to grow. Subscription revenue is still an area we are building. You will be hearing a lot more about those efforts in the months ahead. We will keep taking deliberate steps to improve engagement, strengthen retention and translate the expanded lineup into subscriber growth. Our international business is building rapidly. In 2025, we reported $3.6 million in international licensing fees. This year, we expect fees of about $16 million, a 344% increase. During the past quarter, we officially launched Newsmax Poland, solidifying our already vast distribution footprint in more than 100 countries. These are true partnerships. The operators know their markets, run the channels locally and license the Newsmax brand. We provide our high-quality content and the editorial framework. It is a capital-efficient way to add value for all parties, especially the viewers. Most importantly, we are bringing independent center-right journalism to these underserved audiences around the world. We believe Newsmax can become a truly global news brand and we are building toward exactly that. Looking ahead, we are reiterating our full year 2026 revenue guidance of $212 million to $216 million, representing 13% growth at the midpoint. We continue to expect this growth to be structural, not cyclical, led by affiliate fee expansion and licensing. We also expect the full year operating profile to improve compared to 2025. Let me close with the big picture. Nearly half the country feels underserved by legacy media with trust at an all-time low. The center right audience is underserved both domestically and internationally. That creates a significant and durable opportunity. This audience is not shrinking and few media companies can reach it with the scale, credibility and multi-platform presence of Newsmax. We deliver independent values-driven journalism across cable, streaming and digital. Our social audience is large and highly engaged. Our reach continues to expand. We are also positioning Newsmax at the forefront of emerging technology as AI becomes a more important channel for news discovery and consumption. I'd like to say that Newsmax is leading a news revolution and I don't say it lightly. We continue to grow, reach millions of Americans digitally on social and on TV, both linear and streaming as well as through our plus service, podcasting and radio and now in a very robust way across the globe. This quarter showed that the foundation of our revolution is stronger than ever, record revenue, a growing international footprint, our first profitable quarter as a public company, a strong cash position and debt-free balance sheet, financial flexibility to support investments in content and growth. We are operating from a position of strength and we are excited about the journey ahead. To our readers, our viewers, our advertisers and you, our shareholders, thank you. With that, I will turn it over to our Chief Financial Officer, Darryle Burnham, to walk through the financials. Darryle? Darryle Burnham: Thank you, Chris, and thank you, everyone, for joining us today. As Chris highlighted, we delivered record revenues and our first quarterly net income since becoming a public company. The way we got there is just as important as the result. Our revenue mix continued to shift toward affiliate fee and licensing revenues and higher rates across both expanded gross margin to 43.1% from 38% in the prior year quarter. We are also operating with better visibility, absence of the prior year legal settlement expense, allowing strong top line growth to flow through to the bottom line. Importantly, profitability does not change our investment plans. Our capital allocation priorities remain focused on supporting long-term growth, which includes investment in programming, talent, technology, distribution, digital initiatives and other strategic opportunities. With improved visibility into our cost base, our focus is on sustaining this operating leverage as we continue to grow. Turning to our second quarter results. In the second quarter, we delivered $54.1 million in total revenues, representing a 16.5% increase year-over-year. Breaking this down by revenue stream for the quarter, first, starting with our reportable segments. Total broadcasting revenues grew by 20.5% year-over-year to $45.8 million in the second quarter of 2026. Our growth in broadcasting was driven by higher affiliate fee revenue attributed to new contractual relationships and rate increases that took effect in late 2025 and 2026 as well as expanded international licensing agreements. Total digital revenues declined 1.3% year-over-year to $8.3 million in the second quarter of 2026. Growth in digital advertising, driven by new contractual relationships was offset by lower subscription revenue and product sales. Now turning to our revenue by component. Advertising revenues decreased to $28.8 million, a 3.5% year-over-year decline, mainly due to lower customer order volume and a challenging comparison from election-related demand last year. This was partially offset by digital advertising growth of 21.3%. Affiliate revenues increased 81.9% year-over-year to $13.4 million, driven by new contractual relationships as well as rate increases that took effect in late 2025 and 2026. Subscription revenues of $6.3 million were down 9.9% year-over-year due to lower new customer acquisition, partially offset by gains from expanded affiliate agreements that make Newsmax available on more linear cable providers. Product sales revenue decreased 31.7% year-over-year to $1.1 million, primarily driven by decreased book and supplement sales. Licensing revenues were $4.6 million, up from $0.7 million in the prior year quarter, driven by expanded international licensing agreements. We reported quarterly net income of $2.9 million or $0.02 per share compared to a net loss of $75.2 million in the prior year quarter. The improvement was primarily driven by higher total revenue, improved operating efficiency and the absence of legal settlement expenses recorded in the prior year period. Our quarterly adjusted EBITDA was $5.7 million, an improvement of $9.5 million from negative $3.8 million reported in the same quarter last year, primarily due to growth in high-margin affiliate fee and licensing revenue and lower general and administrative expenses, partially offset by continued investment in programming, production and OTT initiatives. We ended the quarter with $25.9 million in cash and cash equivalents and $102.4 million in short-term investments, bringing our total cash and investment position to $128.3 million with no debt on the balance sheet. We are encouraged by our performance through the first half of the year and remain confident in our previously disclosed full year revenue guidance of $212 million to $216 million, representing 13% year-over-year growth at the midpoint of the range, an acceleration on the growth we realized in 2025. Our higher-margin affiliate fees and licensing streams are the biggest levers to our margin improvement in the near term. At the same time, we continue to scale the business. We expect opportunities to improve margins through revenue growth from content investment, technology and monetization across multiple platforms. In closing, we remain focused on disciplined execution as we continue to invest in content, distribution and OTT initiatives that support long-term growth. With a strong balance sheet and a diversified multi-platform revenue model, we believe we are well positioned to build on this quarter's progress and deliver sustainable value for our shareholders. Thank you for your time today, and we look forward to updating you on our continued progress during the next quarter earnings call. Now we would like to open the line for analyst questions. Operator? Operator: [Operator Instructions] Our first question today is coming from Michael Kupinski with NOBLE Capital Markets. Michael Kupinski: Congratulations on a solid quarter. A couple of quick questions here. I know in your presentation, you highlight that Newsmax affiliate rates are roughly 7x below peers on average, and that's in spite of the fact that your distribution ratings are increasingly comparable. And I know that you've been reluctant to talk about this in the past, but I just thought I'd ask anyway, what percentage of your subscriber base is scheduled for renewal over the next 12 to 24 months? And then I guess the real question would be, how quickly do you think you can close that rate gap without sacrificing your distribution? Christopher Ruddy: Darryle, do you want to chat about the first part? Darryle Burnham: Yes, absolutely. Michael, thank you for the question. It's good talking to you again. So consistent with what we've talked about before, we haven't really publicly disclosed what percentage of our affiliate fees are coming up for renewal. But I think what is beneficial is to look at some of the history on this, right? So we've talked about the fact that there's always a large opportunity for growth in affiliate fees and that comes with the fact of the renewal for the contracts because we're a relatively new entrant into the affiliate fee world. When you look at some of the changes that we've seen in 2026 compared to 2025, I think you can see that already -- that strategy already really kind of coming through to fruition. So the goal really is to continue to execute on future renewals similar to what we have in the past. Whether or not we'll be able to close the 7x gap is going to be contingent on our continued execution of our strategic vision by increasing in programming and talent and distribution across all of the areas that we can so that we're in the best position to be able to negotiate any of those renewals. Christopher Ruddy: I would just add that the best leverage is always ratings and that our growing brand value. And I think that has been -- that has carried us forth through a lot of years. I mean people have said when we first started in the mid-2015 period, you're never going to get on any cable systems. We got on all the system. You're never going to get a cable fee. We got cable fees from everyone. You'll never get renewals. We've gotten renewals from every major player. And we just keep growing. And affiliate fees were up 81% year-over-year. So I think that is the start of a lot of these are rolling agreements. And so we're going to continue to see strength there. Michael Kupinski: Got you. I know that licensing revenue is obviously incredibly growing fast there as well. I was just wondering how much of that $16 million in terms of your guide is already contracted versus dependent on additional agreements? And then looking to 2027, how should we think about licensing as a recurring base that what should it grow from $16 million as we look into 2027? Christopher Ruddy: Darryle? Darryle Burnham: Well, the guidance that we've given on licensing so far this year was based on factual evidence of agreements that we had in place. So the $16 million that we gave for this year is not contingent on any future agreements. The $25 million that we talk about as an annualized run rate for next year gives you some indication of the overall growth. And we're very excited with the growth in the interest really in conservative news internationally and globally. So it's become an area of focus within the company now. We want to continue to focus on that because we do believe that there is an interest in conservative news across the country or across the world. And as a result of that, that's something where we've got a number of different projects that we're continuing to look at. So right now, the $16 million is, I think, a very stable number. You can see that based on the results of the first 2 quarters. And right now, we're not giving any guidance past the $25 million that we've already put out in the press release for 2027, but we are excited that there are additional opportunities in international licensing in the future. Christopher Ruddy: And all our agreements are multiyear agreements. We're not doing this just as a one-off for 1 year or 2 years. So I think you can see something over the horizon on these deals, and then we hope we get renewals in years out. We have gotten renewals on our main deal that started in Serbia some years ago. So we're hoping that, that continues. We don't have any reason to believe it won't for the moment. But we do think this is a huge area of opportunity for the company that was somewhat surprising for us, right? It was not something we talked about much in the IPO process, and it's just another add-on and the market for the global news is huge. Michael Kupinski: That's pretty exciting. And if I can squeeze one more in. Your Meta agreement is your first major AI content partnership. And I was just wondering if you can maybe discuss the economics of that relationship without obviously getting into contractual specifics, but if you can just give us some more color there? And are you currently in discussions with other major AI platforms as well? Christopher Ruddy: I would say that we're not revealing the financial details of that agreement. It's a multiyear agreement, and we think it's consistent with market, and it's very powerful. Think about this, our first AI agreement, major AI agreement is with Facebook Meta, which is a huge Internet company. So I think it shows the value again of Newsmax as a brand and that Meta, which is investing, I think, over $100 billion in AI sees Newsmax as an important partner and that they were interested in doing a partnership with us. So I think it's a very good milestone for the company and we say in our release and what we talked about is that this is the beginning. We are in discussions with a number of AI companies, and we hope to have more developments on that in the future. So we do think it's an area of incremental and strong supplemental revenue, but also the company hopes to develop its own approaches to AI that we think will be beneficial to the shareholders in the company, not just as a licensing, but also incorporating AI into our infrastructure. Michael Kupinski: Chris, if I could just follow up quickly on that. Can this partnership, would it -- I'm just trying to understand the AI licensing. Could it become a meaningful stand-alone revenue stream going forward? I'm just kind of curious on how that relationship would work. Christopher Ruddy: Well, I'm not an accountant. I don't know what stand-alone revenue stream means. It's already a stand-alone revenue. Michael Kupinski: Much like your licensing... Christopher Ruddy: Correct. Well, we're hoping that the licensing, we are hoping, I can't promise that, but it could potentially be a significant licensing stream for us. I mean AI is taking is a revolutionary thing, and it's happening in very big ways. We have a lot of content. AI companies need content. Darryle Burnham: And I think that's kind of the key on this one, Michael, if I can add a little bit, right? I mean AI is becoming an important channel for news discovery. And I think, as Chris said, it shows the strength of the Newsmax brand with the fact that Meta wanted to partner with us to help kind of train the AI model. So we're all aware of the fact that there's a lot of capital that's being invested into AI. There's no real way that we can predict what that might be. But I think we're very excited that we're able to participate in that. And hopefully, we can continue to participate in that in a meaningful way. So as that grows, could it be some stand-alone revenue stream in the future? We certainly hope so, but we're not giving any guidance specific to that. Operator: Our next question is coming from Alicia Reese. Alicia Reese: I wanted to dig into a couple of different things. One, the gross margin or the margin improvements that you cited that were related to improved operating efficiencies outside of just higher affiliate fees. Can you dig in a little bit on that and detail some of the improvements that you've made perhaps over the last quarter over the last year? Darryle Burnham: Sure. Well, I think it's a couple of areas, right? I mean the obvious ones are increases in the affiliate fee license and the licensing revenue because those are both high-margin contributors to the business overall. And the other part would be just operating efficiencies that we've seen now that we're kind of through that first year as a public company. We don't have some of those same first year public company expenses. A lot of the legal expenses we've gotten through that wouldn't affect the margins as much. But overall, we've just seen the ability to focus more on the business, and we're focused on some of those high-margin components of the business. And we're constantly looking at ways that we can utilize new tools to become more efficient within the business as well. I mean there's been a total transformation in broadcasting over the last 10 years. And the things that the equipment and the content generation that used to be significantly more expensive, advances in AI, all of these things are tools that we're looking at as ways to become as efficient as we can on containing the cost within the business overall. Alicia Reese: And I think that might answer at least some of my follow-up question with that because you had mentioned that you expect to get more margin expansion, of course, from affiliate fees in the future, but more so from tech and content investments. So I wanted to focus on that content investment category. Is that due to the lower cost of content due to the AI implementation? Or are there other avenues by which you can come to those lower content fees? Or is it just driving higher users that would create the better margins on content? Darryle Burnham: I think, go ahead, Chris. Christopher Ruddy: Yes. I think that the obvious one is the ability -- AI helps you create and put together content. It's not perfect. It's not something you can go to print with just because it's -- but it helps speed up what our editors noticed on the digital side, on the TV production side. It speeds up the process of putting content together. It gives you a lot of background information. It all has to be double checked, but it's putting it together in a very coherent, logical, typically good manner, but needs to be checked and verified. And so we're finding that it is speeding up the process and reducing some costs and you hope more on the digital side. TV production is seeing similar things. And graphics, too. It's very good at producing graphics and charts, which are usually time-consuming and costly on the television side. So in social media, we use a lot of graphics. So I think that's where the reduction of cost comes in. We're not implementing so far like an AI feature on Newsmax. So we're not really getting any users from that yet. But we are hoping that other companies we can partner with for our content, they can have access to that way like we're doing on the Meta deal. Darryle Burnham: And I might add -- the other area, just to add one more point to that, that I think is important to understand is that when you're looking at our investment in content and programming and technology and some of the things that we referenced in the press release, some of those investments are across multiple product streams, right? So when we're investing, for example, in programming and content and efficiencies within our Newsmax1 channel, we get the benefit, and that's all to drive ratings and ratings will increase advertiser demand, right? So that gets the benefit of driving increased margin just through economies of scale because we're driving increased demand for advertising because news is still a primary source that advertisers covet because people are still watching news live. The other benefit to that is that it continues to add to the value proposition for our Newsmax+ streaming service and that continues to potentially give us the ability to attract additional subscribers to the Newsmax+ service. And it puts us in a better position, as Chris mentioned earlier, with the ratings when we're negotiating for additional affiliate fees. So we get an economy of scale with this as well where the investment starts to have a higher ROI just as we grow. Alicia Reese: Excellent. That makes a lot of sense. And I have one more, if I may. I was just wondering, and I hope this isn't too naive of a question, but I'm wondering about the funnel as you acquire new users. I assume a lot of it is through the social media, but I wonder to what extent people stay there and you're fine with that because it's useful as its own means of delivering news to users on those platforms. But to what extent is that a funnel to perhaps Newsmax2 and Newsmax+ now or any potential for that in the future? Christopher Ruddy: Well, I'm not so sure that we have a funnel out of social media. I would like to say that we're for all people on all platforms, and we've discovered in the old days where you were siloed, you were newspaper, radio business, those days are over. And even digital means a lot, right? Podcasting is included, that includes video on digital side. So there's a lot going on. Social media is falls under the umbrella of digital. And there are some people that just want to consume news on social and not come to our platform. And so that we try to service those people, we try to give them information. We really do like it when they see us in social and they're more likely to come to the website. They're more likely to download our app, which then leads them to the Newsmax+ service to check their cable guide and watch us on cable. So we're constantly -- what I like to use the word instead of funnel is cross-promoting. So TV will promote digital, digital promotes TV and TV being both linear and streaming. And then we have the app. And the app notifications promote the TV channel and the digital stuff. So if you looked at like a line chart, there'll be lines going all over the place, but it seems to work and the overall impact is pretty significant because you have synergies and the synergistic effect of all of those promotions and mentions. I think it's a key reason. If you look, Newsmax consider our revenue base, consider what we come from and that we're Reuters in one of the recent studies had one of the top 12 U.S. news brands. We're frequently listed as one of the top major Marquette Law School just did a survey of viewership and news coverage, and they listed us as one of the top news media outlets in the country. I think we're going our revenue monetization is going to grow pretty significantly because of the brand and the reach that we have. And people obviously -- hopefully, we hope shareholders and investors see that, but we certainly see it. Operator: Our next question is coming from Tom Forte with Maxim Group. Henry Dare: This is Henry Dare. I'm calling in for Tom. Just one quick question. Chris, you've talked about this in the past, but we would appreciate your current thoughts on what the midterms could mean for your audience engagement, both for your cable news network and digital efforts as well as your sales and profits for the back half of 2026? Christopher Ruddy: Well, elections are always good for engagement, even if we don't necessarily get a lot of advertising fees. A lot of the midterm elections are very local oriented and people don't see them as national elections, they're state races, congressional races and what have you there. And so those advertising campaigns don't -- typically, we get some increase, but we do see a lot more engagement because a lot of those races around the country. We certainly think right after that election turns over, I think you'll see even more engagement. You'll see it for 2 reasons. One is I think there's a great likelihood of the Democrats getting control of the House of Representatives. And then there's a potential likelihood of them controlling the Senate, divided government tends to mean more news, more conflicting stories and more engagement, I think, by both sides. The second is the presidential campaign really begins in earnest. Some would argue it's already begun. But the first Iowa debate typically is in the summer of the following year. So next year would be the summer -- so Iowa is going to be in play and discussed going -- there'll be probably at least a half dozen candidates from what we're hearing running for President. So that will be good for engagement, we believe, for some revenues. So it's very exciting. I think we have a 2-year great window to continue building out post-IPO now and continuing our reach on all of the different platforms that we are engaging people. Operator: Ladies and gentlemen, as we have no further questions on the lines at this time, this will conclude our question-and-answer session and today's call. You may disconnect your lines at this time, and we thank you so much for your participation. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved first profitable quarter as a public company, attributed to the roll-off of one-time public listing and legal settlement costs. Revenue growth was primarily structural rather than cyclical, led by a 20.5% increase in broadcast revenue from higher-margin affiliate fees and licensing. Expanded international footprint through capital-efficient licensing partnerships, notably launching Newsmax Poland to reach underserved center-right audiences globally. Maintained audience engagement despite post-cycle normalization, reaching 26.9 million total viewers and ranking as the fourth highest-rated cable news channel. Leveraged a multi-platform model to cross-promote content across linear cable, streaming (Newsmax+ and Newsmax2), and social media to drive brand loyalty. Positioned the company at the forefront of AI news discovery through a multiyear content partnership with Meta to power AI-generated answers. Reiterated full-year 2026 revenue guidance of $212 million to $216 million, assuming continued expansion of affiliate rates and international licensing. Expects international licensing fees to reach approximately $16 million in 2026, a 344% increase, with an annualized run rate target of $25 million for 2027. Anticipates further margin expansion through the integration of AI tools to reduce content production costs and speed up digital and TV graphics workflows. Plans to invest behind current growth, focusing on strengthening the Newsmax+ content library with original specials and family-friendly programming. Views the upcoming midterm elections and the early start of the next presidential cycle as key drivers for sustained audience engagement through 2027. Maintains a debt-free balance sheet with $128.3 million in total cash and short-term investments, providing flexibility for strategic M&A or content investments. Reported a significant shift in gross margin to 43.1% from 38% year-over-year, driven by the transition toward higher-margin recurring revenue streams. Noted a 3.5% decline in advertising revenue due to lower customer order volume and challenging comparisons against prior-year election demand. Digital revenue saw a slight 1.3% decline as growth in digital advertising was offset by lower subscription revenue and product sales. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management declined to specify the percentage of subscribers up for renewal but noted that recent 81.9% growth in affiliate revenue validates their renewal strategy. Success in closing the rate gap is contingent on using ratings growth as leverage during negotiations with major cable operators. While financial details remain confidential, management described the multiyear agreement as consistent with market rates and a milestone for brand validation. The company is in active discussions with other major AI platforms to establish additional incremental licensing revenue streams. Margin improvements are expected to stem from economies of scale as content investments serve multiple platforms simultaneously (Linear, OTT, and Digital). AI is being utilized internally to speed up editorial processes and reduce the cost of labor-intensive tasks like graphics production.

This article first appeared on GuruFocus. Release Date: August 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Newsmax Inc (NYSE:NMAX) achieved its first profitable quarter as a public company, with net income of $2.9 million and adjusted EBITDA of $5.7 million. Total revenue reached a record $54.1 million, up 16.5% year-over-year, driven by a 20.5% increase in broadcast revenue. Affiliate fee revenue surged 81.9% year-over-year to $13.4 million, reflecting new contracts and rate increases, with significant room to close the gap with peers. International licensing is expanding rapidly, with 2026 fees expected to reach $16 million (a 344% increase) and a new launch in Poland, supported by multi-year agreements. The company secured a multi-year AI content partnership with Meta, positioning Newsmax at the forefront of AI-driven news distribution and opening a new potential revenue stream. Gross margin expanded to 43.1% from 38% in the prior year, driven by higher-margin affiliate and licensing revenue and improved operating efficiencies. The balance sheet remains strong with $128.3 million in cash and investments and no debt, providing financial flexibility for growth investments. Total viewership reached 26.9 million, up 4% year-over-year, marking the highest second-quarter reach in four years, with strong engagement among adults 35-64. Social media followers grew over 28% year-over-year to over 26 million, enhancing brand reach and cross-promotion opportunities. The company reiterated full-year 2026 revenue guidance of $212-$216 million, representing 13% growth at the midpoint, with expectations for improved operating profile. Advertising revenue declined 3.5% year-over-year to $28.8 million, due to lower customer order volume and challenging comparisons from election-related demand. Digital revenue decreased 1.3% year-over-year to $8.3 million, as growth in digital advertising was offset by lower subscription revenue and product sales. Subscription revenue fell 9.9% year-over-year to $6.3 million, driven by lower new customer acquisition. Product sales revenue dropped 31.7% year-over-year to $1.1 million, primarily due to decreased book and supplement sales. The company remains in strategic investment mode, which could pressure near-term margins despite profitability, as it continues to invest in programming, technology, and OTT initiatives. The AI partnership with Meta is in early stages, and its contribution to revenue is not yet quantified, with no guidance provided for future AI-related income. Affiliate fee rates remain approximately 7 times below peers, and the pace of closing this gap is uncertain and dependent on continued execution. The company faces a challenging advertising environment, with a decline in ad revenue despite overall growth, indicating potential volatility in this segment. International licensing, while growing, is still a relatively small portion of total revenue, and future growth beyond 2027 is not guaranteed. The company's profitability was aided by the absence of prior-year legal settlement expenses, which may not recur, potentially affecting year-over-year comparisons. Warning! GuruFocus has detected 5 Warning Signs with NKTR. Is NMAX fairly valued? Test your thesis with our free DCF calculator. Q: What percentage of your subscriber base is scheduled for renewal over the next 12 to 24 months, and how quickly can you close the affiliate rate gap with peers without sacrificing distribution? A: CFO Daryl Burnham stated the company does not publicly disclose the percentage of affiliate fees up for renewal but highlighted that the strategy is already showing results, with affiliate revenues up 81.9% year-over-year in Q2 2026. CEO Chris Ruddy added that the best leverage is ratings and growing brand value, noting the company has successfully secured renewals from every major player. Closing the seven-times rate gap depends on continued execution of the strategic vision in programming, talent, and distribution. Q: How much of the $16 million international licensing guidance is already contracted, and how should we think about licensing growth into 2027? A: CFO Daryl Burnham confirmed the $16 million guidance for 2026 is based on factual agreements already in place and is not contingent on future deals. The company has previously indicated a $25 million annualized run rate for 2027, reflecting strong global interest in conservative news. CEO Chris Ruddy added that all agreements are multi-year, with renewals already secured on the main deal in Serbia, and sees international licensing as a huge area of opportunity. Q: Can you discuss the economics of the Meta AI content partnership and are you in discussions with other major AI platforms? A: CEO Chris Ruddy declined to reveal financial details but described it as a multi-year agreement consistent with market rates and "very powerful." He emphasized that Meta, which is investing over $100 billion in AI, sees Newsmax as an important partner. The company is in discussions with a number of AI companies and views this as the beginning of its AI efforts, potentially becoming a significant licensing stream. CFO Daryl Burnham added that AI is becoming an important channel for news discovery, and the partnership validates the strength of the Newsmax brand. Q: Can you dig into the margin improvements related to improved operating efficiencies outside of higher affiliate fees? A: CFO Daryl Burnham attributed the gross margin expansion to 43.1% from 38% to high-margin affiliate fee and licensing revenue growth, as well as operating efficiencies gained after the first year as a public company. He noted the absence of first-year public company expenses and legal costs, and highlighted the use of new tools, including AI, to become more efficient in content generation and production. CEO Chris Ruddy added that AI speeds up the process of putting content together, reduces costs in digital, TV production, and graphics, though all content still requires human verification. Q: Is the content investment margin expansion due to lower content costs from AI implementation, or other avenues? A: CFO Daryl Burnham explained that investments in programming and content drive ratings, which increase advertiser demand and create economies of scale. These investments also enhance the value proposition for Newsmax Plus streaming and strengthen the company's negotiating position for affiliate fees. CEO Chris Ruddy clarified that the company is not yet implementing an AI feature on Newsmax itself, but is partnering with companies like Meta to provide content for AI models. Q: To what extent is social media a funnel to Newsmax 2 and Newsmax Plus, and how do you view the user acquisition funnel? A: CEO Chris Ruddy rejected the "funnel" concept, preferring "cross-promoting" across all platforms. He explained that TV promotes digital and vice versa, with the app and notifications driving traffic across all channels. This synergistic approach has made Newsmax one of the top 12 U.S. news brands according to Reuters, and the company expects revenue monetization to grow significantly due to its brand and reach. Q: What could the midterms mean for audience engagement, sales, and profits for the back half of 2026? A: CEO Chris Ruddy noted that elections are always good for engagement, though midterm advertising is often local-oriented. He expects increased engagement after the midterms due to the likelihood of a divided government, which tends to generate more news and conflicting stories. Additionally, the presidential campaign will begin in earnest, with at least a half dozen candidates expected, creating a "two-year great window" for continued growth and reach across all platforms. Q: Can the AI licensing become a meaningful standalone revenue stream going forward? A: CEO Chris Ruddy confirmed it is already a standalone revenue stream and expressed hope it could become a significant licensing stream, noting that AI companies need content and Newsmax has a lot of it. CFO Daryl Burnham added that while no specific guidance is provided, the company is excited to participate in the AI growth story and hopes it becomes meaningful over time. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Newsmax Inc.? Here are five stocks we like better. Newsmax reported record Q2 revenue and its first profitable quarter as a public company. Revenue rose 16.5% year over year to $54.1 million, while net income reached $2.9 million and adjusted EBITDA improved to $5.7 million. Affiliate fees and international licensing drove the stronger revenue mix. Affiliate revenue surged 81.9% to $13.4 million, licensing revenue increased to $4.6 million, and gross margin expanded to 43.1%, despite declines in advertising, subscriptions and product sales. Management maintained 2026 revenue guidance of $212 million to $216 million. Newsmax is continuing to invest in streaming, international expansion and AI partnerships, while reporting $128.3 million in cash and investments and no debt. Newsmax’s IPO Whiplash: Meme Stock Hype or Growth Potential? Newsmax (NYSE:NMAX) reported record second-quarter revenue and its first profitable quarter as a public company, supported by growth in affiliate fees and international licensing revenue. Revenue for the second quarter of 2026 rose 16.5% year over year to $54.1 million, while net income totaled $2.9 million, or $0.02 per share. That compared with a net loss of $75.2 million in the prior-year period. Adjusted EBITDA was $5.7 million, improving from negative $3.8 million a year earlier. → Lumentum Just Delivered the AI Growth Investors Wanted Chief Executive Officer Christopher Ruddy said the company’s one-time costs associated with becoming public, as well as legal costs, were “largely behind us,” providing what he described as a cleaner view of the underlying business. He said Newsmax remains in investment mode despite reaching profitability. Broadcasting revenue increased 20.5% to $45.8 million. Chief Financial Officer Darryle Burnham said the gain reflected higher affiliate-fee revenue from new contractual relationships and rate increases that took effect in late 2025 and 2026, along with expanded international licensing agreements. → Ryman Checks Into a $1.38B Hospitality Upgrade Affiliate revenue rose 81.9% year over year to $13.4 million, while licensing revenue climbed to $4.6 million from $0.7 million in the prior-year quarter. Burnham said the company’s revenue mix is shifting toward affiliate fees and licensing, which helped lift gross margin to 43.1% from 38% a year earlier. Advertising revenue declined 3.5% to $28.8 million, primarily due to lower customer order volume and a difficult comparison with election-related demand in the previous year. Digital advertising, however, grew 21.3%. → Joby’s Defense Pivot Accelerates With $500M Resonant Sciences Deal Total digital revenue decreased 1.3% to $8.3 million. Subscription revenue fell 9.9% to $6.3 million because of lower new-customer acquisition, partly offset by expanded affiliate agreements that increased availability on linear cable providers. Product sales revenue declined 31.7% to $1.1 million, driven by lower book and supplement sales. Burnham said the company ended the quarter with $25.9 million in cash and cash equivalents and $102.4 million in short-term investments, for a total cash and investment position of $128.3 million. The company reported no debt. Ruddy said Newsmax reached 26.9 million total viewers during the quarter, up 4% from a year earlier and representing its highest second-quarter reach in four years. The audience included 11.3 million adults ages 35 to 64, according to the company. The company said it remained the fourth-highest-rated cable news channel and ranked second in its category for engagement among adults ages 35 to 64. Ruddy said Newsmax has been the fastest-growing basic cable network since Nielsen began measuring it in 2020, up more than 280% across key dayparts. On social platforms, Newsmax said total followers increased more than 28% year over year to more than 26 million. Streaming remains a strategic investment area, Ruddy said. The Newsmax+ catalog now has more than 300 titles, including family-oriented programming, original premium specials and documentaries. Newsmax2, the company’s free streaming channel, also continued to add news hours across major platforms. Management said it is focused on improving engagement and retention at Newsmax+ and converting its expanded programming lineup into subscriber growth. Ruddy described the company’s approach across television, digital, social media, apps and streaming as cross-promotion rather than a single customer-acquisition funnel. Newsmax launched Newsmax Polska during the quarter and said its distribution footprint now extends to more than 100 countries. The company licenses its brand and content to local operators, which run channels in their respective markets. Ruddy said international licensing fees were $3.6 million in 2025 and are expected to reach about $16 million in 2026, representing a 344% increase. Burnham said the $16 million estimate is based on agreements already in place and is not contingent on future deals. The company has previously discussed a $25 million annualized run rate for 2027 but did not provide additional guidance beyond that figure. The company also highlighted a multiyear AI content partnership with Meta. Ruddy said Newsmax journalism and reporting will help power AI answers across Meta’s ecosystem. While the company did not disclose financial terms, Ruddy said it viewed the arrangement as consistent with the market and potentially the start of a meaningful licensing opportunity. Management said Newsmax is in discussions with other AI companies and is evaluating ways to incorporate AI into its own operations. Ruddy said AI tools are helping speed content production, research, graphics and charts, though he said output must still be checked and verified. Newsmax reiterated its full-year 2026 revenue guidance of $212 million to $216 million, which would represent 13% growth at the midpoint. Management said it expects growth to be structural rather than cyclical, led by affiliate-fee expansion and licensing revenue. Burnham said the company expects its full-year operating profile to improve compared with 2025, while continuing to invest in programming, talent, technology, distribution, digital initiatives and over-the-top streaming efforts. During the question-and-answer session, Ruddy said elections typically support audience engagement, though midterm advertising tends to be more localized. He said the company expects political developments following the midterms and the start of the next presidential campaign cycle to contribute to engagement opportunities. Newsmax (NYSE:NMAX) is a diversified media company that produces and distributes conservative-oriented news, opinion and informational content. The company operates across multiple platforms, including a cable news channel, a digital streaming service, a website, a print magazine and various mobile applications. Newsmax focuses on delivering political coverage, financial analysis and cultural commentary to its audience. Originally launched as a news website in 1998, Newsmax expanded into print with the debut of Newsmax magazine in 2003 and later launched its flagship cable network, Newsmax TV, in 2014. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Newsmax Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Company Reports Record Quarterly Revenues of $54.1 million, a 16.5% Year-Over-Year Increase Broadcast Revenues Increase to $45.8 million, a 20.5% Increase Year-Over-Year Company Reports Net Income of $2.9 million and Adjusted EBITDA of $5.7 million, Its First Profitable Quarter as a Public Company BOCA RATON, FL / ACCESS Newswire / August 13, 2026 / Newsmax Inc. (NYSE:NMAX) ("Newsmax" or the "Company") today announced its financial results for the second quarter ended June 30, 2026. Second Quarter 2026 Business and Operational Highlights Delivered second quarter audience reach of 26.9 million total viewers, up 4% year-over-year and the highest second quarter total reach in the past four years, including 11.3 million Adults 35-64, reinforcing Newsmax's position as the fourth highest-rated cable news channel and #2 in cable news audience engagement among Adults 35-64. Continued to strengthen the Company's multi-platform audience ecosystem, with total social media followers rising to 26.2 million as of June 30, 2026. Entered into the Company's first major AI content partnership, a multi-year partnership with Meta that puts Newsmax content across Meta's apps and devices, reflecting a broader strategy of licensing content to leading AI technology companies. Achieved exceptional growth in our international licensing business, with multiple brand content licenses signed this year and related licensing revenues expected to increase 344% year-over-year to approximately $16 million in 2026, including the Q2 launch of the Newsmax Poland channel with longtime partner Telekom Serbia, all strengthening the Newsmax brand, which reaches more than 100 countries worldwide. Management Commentary "This was a milestone quarter for Newsmax. We delivered record revenues and our first quarterly net income since becoming a public company, led by strong growth in affiliate fees and licensing, our highest-margin revenue streams," said Christopher Ruddy, Chief Executive Officer of Newsmax. "Halfway through the year, we continue to execute on our growth strategy. With the majority of one-time costs of becoming a public company largely behind us, the value creation opportunities of our multi-platform model are showing positive results." Ruddy continued, "We are still in strategic investment mode, and that will not change. We continue to invest in content and streaming, while our licensing strategy is growing rapidly, domestically with AI deals like the one we completed with Meta, and internationally with media partners licensing our brand and content. Our strategy is to maximize these relationships to license the Newsmax brand and launch local channels in foreign markets, a model that requires minimal capital from us. We are also staying at the forefront of emerging technology, and our recently announced AI partnership will help us meet viewers wherever they consume content. The market for center right news is huge with limited options and significant whitespace to grow, increase monetization and deliver sustainable, long-term growth for our shareholders." "Our second quarter results demonstrate the operating leverage we are building across the business, with net income of $2.9 million and Adjusted EBITDA of $5.7 million," commented Darryle Burnham, Chief Financial Officer of Newsmax. "The improvement in our revenue mix, combined with the operating discipline we have established in our second year as a public company, allowed strong top-line growth to flow through to the bottom line. We will continue to invest in content, distribution and OTT initiatives that support long-term growth, and with a strong balance sheet, no debt and a disciplined approach to capital allocation, we are reiterating our full-year revenue guidance and remain focused on sustainable, long-term shareholder value." Financial Results:Revenue by Segment by Component Table (unaudited): Second Quarter 2026 Financial Highlights: Newsmax reported record total quarterly revenues of $54.1 million for the three-month period ended June 30, 2026, representing a 16.5% year-over-year increase and the highest quarterly revenues in the Company's history. Total broadcasting revenues grew 20.5% year-over year to $45.8 million for the second quarter of 2026. This was driven by an increase in affiliate fee revenue attributed to new contractual relationships and rate increases that took effect in late 2025 and 2026, as well as expanded international licensing agreements. Newsmax reported a quarterly net income of $2.9 million, or $0.02 per share, the Company's first quarterly net income since becoming a public company, as compared to a net loss of $(75.2) million reported in same quarter in the prior year. The improvement was primarily driven by higher total revenue, improved operating efficiency and the absence of legal settlement expenses recorded in the prior-year period. Quarterly adjusted EBITDA was $5.7 million, the Company's highest as a public company and an improvement of $9.5 million from $(3.8) million reported in the same quarter last year, primarily due to growth in high-margin affiliate fee and licensing revenue and lower general and administrative expenses, partially offset by continued investment in programming, production and OTT initiatives. See reconciliation of net income (loss) to adjusted EBITDA below. The Company ended the quarter with $128.3 million in cash and short-term investments. Cash and cash equivalents were $25.9 million and short-term investments were $102.4 million. The Company is reiterating its previously issued full-year 2026 revenue guidance of $212 million to $216 million, representing 13% year-over-year growth at the midpoint of the range. About Newsmax Newsmax Inc. is listed on the NYSE (NMAX) and operates, through Newsmax Broadcasting LLC, one of the nation's leading news outlets, the Newsmax channel. The fourth highest-rated network is carried on all major pay TV providers. Newsmax's media properties reach more than 50 million Americans regularly through Newsmax TV, the Newsmax App, its popular website Newsmax.com, and publications such as Newsmax Magazine. Through its social media accounts, Newsmax reaches over 26 million combined followers. Reuters Institute says Newsmax is one of the top U.S. news brands and Forbes has called Newsmax "a news powerhouse." For more information, please visit Investor Relations | Newsmax Inc. Investor Contacts Newsmax Investor [email protected] Forward-Looking Statements This communication contains forward-looking statements. From time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Forward-looking statements can be identified by those that are not historical in nature. The forward-looking statements discussed in this communication and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties and assumptions about us. Newsmax does not guarantee future results, performance or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. Forward-looking statements should not be relied upon as predictions of future events. We are under no duty to update any of these forward-looking statements after the date of this communication to conform our prior statements to actual results or revised expectations, and we do not intend to do so. Factors that may cause actual results to differ materially from current expectations include various factors, including but not limited to changes in domestic and global general economic and macro-economic conditions and the volatility of the price of Common Stock that may result from, among other things, comments by securities analysts or other third parties, including blogs, articles, message boards and social and other media, large shareholders exiting their position in our Common Stock, any negative public perception of us, sales of shares previously registered for resale, or other uncertainties and the factors set forth in the sections entitled "Risk Factors" in Newsmax's Annual Report on Form 10-K for the twelve months ended December 31, 2025 and other filings Newsmax makes with the Securities and Exchange Commission. Nothing in this communication should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. Undue reliance should not be placed on forward-looking statements in this communication, which speak only as of the date they are made and are qualified in their entirety by reference to the cautionary statements herein. USE AND DEFINITION OF NON-GAAP FINANCIAL MEASURES This press release contains a financial measure that has not been prepared in accordance with United States Generally Accepted Accounting Principles ("U.S. GAAP"). This financial measure is Adjusted EBITDA. Non-GAAP financial measures are used to supplement the financial information presented on a U.S. GAAP basis and should not be considered in isolation or as a substitute for the relevant U.S. GAAP measures and should be read in conjunction with information presented on a U.S. GAAP basis. Because not all companies use identical calculations, our presentation of Non-GAAP measures may not be comparable to other similarly titled measures of other companies. Adjusted EBITDA1 is defined as revenues less cost of revenues and general and administrative expenses and does not include depreciation, amortization related to the incremental costs to obtain a contract, interest expense, net, impairment charges, unrealized gains (losses) on marketable securities, stock-based compensation, other corporate matters (consisting primarily of certain litigation expenses, and related fees, for specific legal proceedings that the Company has determined are infrequent and unusual in terms of their magnitude), other, net, and income tax expense. You are encouraged to evaluate each adjustment used in calculating our non-GAAP financial measure and the reasons we consider our non-GAAP financial measure appropriate for supplemental analysis. In evaluating our non-GAAP financial measure, you should be aware that in the future we may incur expenses similar to the adjustments in our presentation. Our non-GAAP financial measure has limitations as an analytical tool, and you should not consider this measure in isolation or as a substitute for analysis of our results as reported under GAAP. Our presentation of our non-GAAP financial measure should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Our non-GAAP financial measure may not be comparable to other companies. Please see a historical reconciliation of this measure to the most comparable GAAP measure presented in our consolidated financial statements below. NEWSMAX INC.CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited) NEWSMAX INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)(Unaudited) NEWSMAX INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE SIX MONTHS ENDED JUNE 30,(Unaudited) NEWSMAX INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)FOR THE SIX MONTHS ENDED JUNE 30,(Unaudited) NEWSMAX INC.NON-GAAP ADJUSTED EBITDA RECONCILIATIONFOR THE THREE MONTHS ENDED JUNE 30,(Unaudited) 1The Company compensates for limitations of the adjusted EBITDA measure by prominently disclosing GAAP net income (loss), which the Company believes is the most directly comparable GAAP measure, and providing investors with a reconciliation from GAAP net income (loss) to adjusted EBITDA. 2Comprised of certain litigation expenses, and related fees, for specific legal proceedings that we have determined are infrequent and unusual in terms of their magnitude. 3Comprised of miscellaneous items such as derivative adjustments, income tax credits, and unrealized gains on securities 4For a discussion of Adjusted EBITDA, see "Use and Definition of Non-GAAP Financial Measures". SOURCE: Newsmax Inc. View the original press release on ACCESS Newswire

Starz Entertainment Corp.’s STRZ second-quarter 2026 adjusted loss of $1.26 per share came much wider than the Zacks Consensus Estimate of a loss of 27 cents.The company reported a net loss of $11.27 per share. This indicates a wider loss from the year-ago quarter's loss of $2.54 per share.Revenues of $307.9 million declined 3.7% year over year but topped the consensus mark of $306 million by 0.68%. The top-line decline reflected continued pressure in linear and other revenues. OTT revenues reached $221.3 million (71.9% of total revenues), up 0.1% from $221.1 million in the year-ago quarter, reflecting positive year-over-year OTT revenue growth and strong audience engagement during the period.Linear and other revenues fell 12.2% year over year to $86.6 million from $98.6 million. The decline more than offset the modest improvement in OTT revenues and drove the overall contraction in the top line. Starz Entertainment Corp. price-consensus-eps-surprise-chart | Starz Entertainment Corp. Quote In the second quarter, total operating expenses rose 39.5% year over year to $483.4 million. Restructuring and other expenses surged to $151.2 million from $6.4 million, largely reflecting $147.2 million of contract termination fees related to certain live-action films under a post-pay-one output licensing agreement.Advertising and marketing expenses increased 10.9% year over year to $70.3 million, while general and administrative expenses rose 37.5% to $40 million. Programming amortization, however, declined to $114.1 million from $162.5 million. In the reported quarter, Adjusted OIBDA came in at $59.9 million, up 79.3% from $33.4 million in the year-ago quarter and above the $58 million reported in the first quarter of 2026.On a trailing 12-month basis, adjusted OIBDA totaled $195.2 million, translating into an adjusted OIBDA leverage ratio of 2.9x at quarter-end. As of June 30, 2026, cash and cash equivalents were $59.6 million, down from $102.1 million as of March 31, 2026. Total debt was $625.1 million and net debt stood at $565.5 million.The adjusted OIBDA leverage ratio was 2.9x at quarter-end, improving from 3.2x a year earlier and 3.1x at the end of March. The ratio is calculated using net corporate debt and trailing 12-month adjusted OIBDA. The company’s $150 million revolving credit facility remained fully undrawn.Net cash used in operating activities was $28.2 million in the second quarter of 2026. Equity-free cash flow was negative $33.4 million, while unlevered free cash flow was negative $14.7 million. For 2026, management raised its adjusted OIBDA growth outlook to mid-single digits from low-single digits. The company also lifted its unlevered free cash flow expectation to the mid-to-upper end of its previously stated $80-$120 million range.STRZ reiterated its expectations for positive year-over-year OTT revenue growth and an adjusted OIBDA leverage ratio of roughly 2.7x exiting 2026. Management also maintained its outlook for a 20% adjusted OIBDA margin in the second half of 2027. Currently, Starz carries a Zacks Rank #3 (Hold).Kontoor Brands KTB, Newsmax Inc. NMAX and Viking Holdings VIK are some better-ranked stocks that investors can consider in the broader Consumer Discretionary sector.Kontoor Brands, Newsmax and Viking Holdings carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Kontoor Brands is slated to announce second-quarter 2026 results on Aug. 12. Meanwhile, Newsmax will report on Aug. 13, and Viking Holdings is scheduled to release results on Aug. 19. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Starz Entertainment Corp. (STRZ) : Free Stock Analysis Report Kontoor Brands, Inc. (KTB) : Free Stock Analysis Report Viking Holdings Ltd. (VIK) : Free Stock Analysis Report Newsmax Inc. (NMAX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Take-Two Interactive Software TTWO reported first-quarter fiscal 2027 adjusted earnings of 36 cents per share, beating the Zacks Consensus Estimate by 16.13%. GAAP loss widened to 18 cents per share from 7 cents a year ago.Revenues of $1.39 billion declined 2.6% year over year but topped the consensus estimate of $1.36 billion by 2.3%. Better-than-expected NBA 2K and Grand Theft Auto performance helped Net Bookings exceed management's guidance. Recurrent consumer spending accounted for 84% of Net Bookings.GAAP net revenues increased 2.0% year over year to $1.53 billion. Game revenues rose 2.9% to $1.42 billion, while advertising revenues fell 8.4% to $111.1 million.By platform, mobile revenues decreased 4.9% to $762.3 million and PC and other revenues dropped 13.5% to $131.1 million. Console revenues climbed 16.3% to $640.5 million, partly offsetting weakness elsewhere. U.S. revenues rose 2.2% to $920.0 million, while international revenues increased 1.7% to $613.9 million. NBA 2K26 sold in more than 12 million units, up 9% from NBA 2K25. Recurrent consumer spending for NBA 2K grew 7%, supported by a 15% increase in average daily active users, a 25% rise in MyCAREER daily active users and a 35% increase in average games played per user. Take-Two Interactive Software, Inc. price-consensus-eps-surprise-chart | Take-Two Interactive Software, Inc. Quote The Grand Theft Auto series also exceeded the company's expectations. Grand Theft Auto V has sold in more than 230 million units worldwide, while recurrent consumer spending for the series grew 3%. Management said Grand Theft Auto VI had an exceptional start to preorders ahead of its Nov. 19 release. Zynga performed in line with management's expectations, though mobile Net Bookings declined 7% year over year. Toon Blast Net Bookings rose 8%, Words With Friends grew 8% and Top Eleven increased 15%.NBA 2K All-Star in China surpassed 10 million registered users since launch and is generating strong profit margins. Management also noted some pressure on user acquisition but said it was not seeing a broader consumer pullback in mobile. GAAP gross profit declined 6.6% year over year to $882.5 million, while gross margin contracted to 57.5% from 62.8%. Cost of revenues rose to $651.4 million and included a $43.4 million impairment charge tied to an unannounced third-party title that the company decided not to pursue.Operating expenses edged down 0.6% to $918.0 million. Selling and marketing expenses fell 9.6% to $369.7 million, while research and development expenses increased 6.8% to $273.8 million and general and administrative expenses rose 9.1% to $226.3 million. Cash and cash equivalents were $1.36 billion as of June 30, 2026, down from $1.55 billion at March 31. Short-term investments increased to $461.7 million from $443.8 million.Operating cash outflow was $168.8 million compared with $44.7 million a year earlier. For the fiscal second quarter, management expects Net Bookings of $1.62-$1.67 billion and GAAP net revenues of $1.42-$1.47 billion. GAAP loss is forecast at 84-75 cents per share, with recurrent consumer spending expected to decline about 5%.Take-Two reiterated fiscal 2027 Net Bookings guidance of $8.0-$8.2 billion, representing roughly 20% growth at the midpoint. GAAP net revenues are still expected at $7.9-$8.1 billion, while GAAP earnings are projected at 55-75 cents per share. Recurrent consumer spending is expected to be flat year over year and represent 64% of Net Bookings.For fiscal 2027, TTWO continues to expect operating cash flow above $1 billion. Capital expenditures are now projected at approximately $290 million, up from the prior forecast because of a planned real estate purchase, while management expects to reach a net cash position by fiscal year-end. Currently, TTWO carries a Zacks Rank #2 (Buy).Kontoor Brands KTB, Newsmax Inc. NMAX and Viking Holdings VIK are some similar-ranked stocks that investors can consider in the broader Consumer Discretionary sector.Kontoor Brands, Newsmax and Viking Holdings carry a Zacks Rank #2 each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Kontoor Brands is slated to announce second-quarter 2026 results on Aug. 12. Meanwhile, Newsmax will report on Aug. 13, and Viking Holdings is scheduled to release results on Aug. 19. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Take-Two Interactive Software, Inc. (TTWO) : Free Stock Analysis Report Kontoor Brands, Inc. (KTB) : Free Stock Analysis Report Viking Holdings Ltd. (VIK) : Free Stock Analysis Report Newsmax Inc. (NMAX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Warner Bros. Discovery, Inc. WBD stock gained 1.7% following its Aug. 6, 2026, earnings release against the Zacks Broadcast Radio and Television industry’s 2.4% fall.The company reported second-quarter 2026 earnings of 6 cents per share, down 90.5% from 63 cents year over year but beating the Zacks Consensus Estimate of a loss of 13 cents.Revenues fell 11.2% year over year to $8.72 billion and missed the consensus mark by 6.19%. The top-line decline reflected sharp weakness in Studios and Global Linear Networks. Streaming was the bright spot, with revenues rising 10% ex-forex and Adjusted EBITDA up 63% ex-forex. During the quarter, Distribution revenues increased 1% ex-forex to $4.95 billion, supported by global streaming growth but partly offset by domestic linear pay-TV subscriber declines and the HBO Max domestic distribution renewal with a former related party.Advertising revenues fell 22% ex-forex to $1.72 billion, while content revenues declined 26% to $1.83 billion. The absence of the NBA weighed on advertising, while lower theatrical revenues in the Studios segment drove the content decline. Warner Bros. Discovery, Inc. price-consensus-eps-surprise-chart | Warner Bros. Discovery, Inc. Quote Streaming revenues increased 10% ex-forex to $3.08 billion. Distribution revenues grew 11% ex-forex, while advertising revenues advanced 8% as global ad-lite subscribers increased. Subscriber-related revenues rose 10% ex-forex to $3.00 billion.Streaming Adjusted EBITDA climbed to $512 million from $293 million, producing a nearly 17% margin. About 40% of global HBO Max subscribers were on the ad-supported tier at quarter-end, an 11% increase year over year. International streaming advertising revenues jumped 73% ex-forex following HBO Max launches in Germany, Italy, the U.K. and Ireland. Studios revenues declined 39% ex-forex to $2.33 billion. Content revenues fell 41%, with theatrical revenues down 46% against the prior-year strength of A Minecraft Movie, Sinners and Final Destination Bloodlines. TV revenues decreased 45% on lower intercompany content licensing.Games revenues increased 45% ex-forex following the release of LEGO Batman: Legacy of the Dark Knight. Studios Adjusted EBITDA declined 89% ex-forex to $96 million, while operating expenses decreased 24% ex-forex. Management continues to expect the segment to generate more than $3 billion of Adjusted EBITDA in the medium to long term. Global Linear Networks revenues fell 17% ex-forex to $3.99 billion. Distribution revenues declined 9%, mainly because domestic linear pay-TV subscribers fell 10%, while domestic affiliate rates increased 1%.Advertising revenues dropped 27% ex-forex, reflecting 17% domestic audience declines and the absence of the NBA. Global Linear Networks Adjusted EBITDA decreased 5% ex-forex to $1.45 billion despite a 23% reduction in operating expenses. WBD still expects high-single-digit operating expense improvement for the segment in 2026. WBD ended the second quarter with $3.37 billion of cash and cash equivalents, $33.06 billion of gross debt and $29.69 billion of net debt. Net leverage was 3.4x. The company refinanced its $15 billion bridge facility with $13 billion and €1.7 billion term loans and expects about 150 basis points of annual interest-cost savings versus the original bridge structure.Cash provided by operating activities totaled $848 million, while free cash flow fell 19% year over year to $572 million. Free cash flow absorbed roughly $350 million of separation and transaction-related items. Management expects subscriber-related revenue growth to accelerate further in the second half of 2026 and remain healthy into 2027. The company reiterated its long-term Streaming Adjusted EBITDA margin target of more than 20%, while noting that fourth-quarter marketing around Harry Potter could cause quarterly margin volatility.The second half also includes the planned HBO Max premiere of Harry Potter on Christmas Day. Warner Bros. Discovery remains confident that its pending merger with Paramount Skydance Corporation will be completed, with closing on hold until the earlier of five days after legal proceedings are complete or June 1, 2027. Currently, Warner Bros. Discovery carries a Zacks Rank #4 (Sell).Kontoor Brands KTB, Newsmax Inc. NMAX and Viking Holdings VIK are some better-ranked stocks that investors can consider in the broader Consumer Discretionary sector.Kontoor Brands, Newsmax and Viking Holdings carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Kontoor Brands is slated to announce second-quarter 2026 results on Aug. 12. Meanwhile, Newsmax will report on Aug. 13, and Viking Holdings is scheduled to release results on Aug. 19. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Warner Bros. Discovery, Inc. (WBD) : Free Stock Analysis Report Kontoor Brands, Inc. (KTB) : Free Stock Analysis Report Viking Holdings Ltd. (VIK) : Free Stock Analysis Report Newsmax Inc. (NMAX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research