Newsmax's strong third-quarter performance continues to draw praise from Wall Street, with investment analysts Michael Kupinski of Noble Capital Markets and Tom Forte of Maxim Group reiterating bullish ratings on the media company.
They also see significant upside for investors who buy shares in the growing digital and broadcasting company.
Following the release of Newsmax's (NYSE: NMAX) Q3 results showing robust growth in key revenue segments — particularly broadcasting and affiliate fees — analysts say the company's fundamentals, expanding distribution footprint, and growing audiences position Newsmax for sustained long-term gains.
Solid Third-Quarter Performance
Both analysts noted that Newsmax bucked the trend — seeing rising revenues despite the fact that the year after a presidential election, media companies often see falling engagement and advertising revenues.
A key sector, broadcasting revenues, surged 10.1% to $36.6 million, driven by improved advertising pricing, higher ratings, and rising Newsmax+ subscriptions.
Affiliate fees from the Newsmax cable channel climbed 22.3% to $8.1 million, reflecting both favorable new contracts and previously negotiated rate increases.
Overall, Newsmax reported Q3 revenue of $45.3 million, a 4% increase year over year.
The company reaffirmed it expects 2025 revenues to total $180 million to $190 million — up from $171 million last year.
Newsmax ended the quarter with a robust $130.4 million in cash and short-term investments and no long-term debt, liquidity that analysts said gives the company meaningful room to pursue expansion without diluting shareholders.
Kupinski: "Compelling Valuation, Long-Term Strength"
In his latest research note, Noble Capital Markets' Michael Kupinski described Q3 as "solid" and reaffirmed Newsmax's strong trajectory in affiliate revenue growth.
Kupinski highlighted the network's rising audience traction and expanding ratings as key drivers that strengthen Newsmax's leverage in ongoing and upcoming distribution negotiations.
"We believe the company's growing reach supports higher per-sub rates during renewal cycles," he wrote, noting that affiliate fees remain one of the most powerful long-term catalysts for shareholder value.
Kupinski reiterated his Outperform rating and assigned a $22 price target, reflecting his long-term confidence in the company's audience loyalty, free-cash-flow outlook, and affiliate repricing opportunities.
Forte: "Difficult Comparisons, Strong Execution"
Maxim Group's Tom Forte also reaffirmed his bullish stance, keeping a Buy rating and a $20 price target.
Forte emphasized that Newsmax's Q3 results beat expectations on both the top and bottom lines and that management's reaffirmation of 2025 revenue guidance of $180–$190 million signals confidence despite the tough macroeconomic backdrop and challenging post-election comparisons in the second half of the year.
He noted that affiliate fees accounted for 17.8% of total revenue, up from 15.1% a year earlier — another favorable signal of the network's improving negotiating position relative to competitors.
Forte added that Newsmax trades at a premium to some peers but argued the valuation is justified given the company's traction in distribution deals, subscriber growth, and expanding content strategy.
After the release of third-quarter results, Newsmax CEO Chris Ruddy said, "We are pleased to announce another strong quarter that shows the power and consistency of our business, even in a nonelection year when news audiences and advertising demand across the industry typically soften."
"Our performance this quarter reflects the strength of our diversified revenue model, the growing reach of our cable and FAST channels, and the continued engagement of audiences across all of our platforms."
Ruddy continued, "Since going public, we have focused on building a company positioned for sustainable, long-term growth. Our strong balance sheet and access to the public markets give us the flexibility to invest strategically, expand our distribution, and continue delivering compelling content that resonates with viewers."
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