Newsmax (NMAX) Q3 Loss Narrows To US$0.03 EPS Loss Testing Bullish Profitability Hopes

Newsmax (NMAX) has just posted its FY 2025 numbers with third quarter revenue of US$45.3 million and a basic EPS loss of US$0.03, set against trailing 12 month revenue of US$184.7 million and a basic EPS loss of US$1.29 that keeps the story firmly in loss making territory. Over recent quarters the company has seen revenue move from US$39.2 million in Q2 FY 2024 to the current US$45.3 million. Quarterly basic EPS has ranged from a loss of US$1.27 in Q1 FY 2024 to a loss of US$0.03 in Q3 FY 2025, so investors are watching how this revenue base supports any eventual improvement in margins.

See our full analysis for Newsmax.

With the headline figures set, the next step is to see how these results line up with the prevailing stories around Newsmax, and where the numbers start to push back on those narratives.

See what the community is saying about Newsmax

14.5% Revenue Growth With Persistent Losses

• On a trailing 12 month basis, revenue reached US$184.7 million with a 14.5% year over year growth rate, while net income over the same period was a loss of US$111.1 million.
• Consensus narrative focuses on higher digital and affiliate revenue as a path to better margins. However, the latest Q3 FY 2025 figures show revenue around US$45.3 million and a loss of US$4.1 million, so investors can see growth in the top line paired with earnings that are still firmly negative.
  • Analysts referencing affiliate fees and international expansion as margin drivers have to set that against trailing EPS of a loss of US$1.29 and continued quarterly net losses through FY 2025.
  • The tension here is clear: revenue is growing at 14.5%, but the 12 month loss of US$111.1 million means the business is not yet converting that growth into positive earnings.

Q3 Loss Narrows Versus Earlier 2025

• Within FY 2025, net income moved from a loss of US$75.2 million in Q2 to a loss of US$4.1 million in Q3, with basic EPS shifting from a loss of US$0.59 to a loss of US$0.03 across those quarters.
• Bulls argue that investments in programming, streaming and international channels can eventually lift profitability, and the Q3 FY 2025 loss of US$4.1 million compared with larger losses earlier in FY 2025 gives them a data point, although trailing 12 month net income still sits at a loss of US$111.1 million which shows that any improvement is not yet visible over a full year.
  • Supporters pointing to Newsmax+ and Newsmax2 growth are working off the idea that higher revenue per viewer can offset content and personnel spending, but FY 2025 quarterly data still records losses in every reported quarter.
  • For that bullish view to gain traction, investors will likely watch whether future quarters keep basic EPS closer to the Q3 FY 2025 loss of US$0.03 rather than the deeper Q1 and Q2 FY 2025 losses of US$0.49 and US$0.59.

Bulls that want to see how these quarterly shifts map into a detailed optimistic case around streaming, affiliate fees and long term margins can go deeper via the 🐂 Newsmax Bull Case

Rich P/S Multiple With DCF Upside Signal

• At a current share price of US$5.88, Newsmax trades on a P/S of 4.1x compared with 0.2x for peers and 0.9x for the US Media industry, while a DCF fair value of US$20.41 in the data implies a large gap between that model and the market price.
• Bears highlight that NMAX is unprofitable with less than one year of cash runway and a higher P/S than peers, so the 4.1x multiple on trailing revenue of US$184.7 million sits against a 12 month net loss of US$111.1 million and ongoing quarterly losses, which they argue leaves limited room for execution missteps even if the DCF fair value is higher at US$20.41.
  • Critics also point to the combination of unprofitability and the shorter cash runway as concrete balance sheet pressures that are not captured by the P/S ratio alone.
  • That creates a clear contrast: the DCF fair value of US$20.41 suggests upside versus US$5.88, while the higher than industry P/S and continued losses reflect the risk side of the equation.

Readers who want to see how these valuation pressures feed into a more cautious take on execution risks and cash needs can walk through the full bear case via the 🐻 Newsmax Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Newsmax on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

The mix of growth, losses and valuation tension will naturally split opinions. Use the full dataset, compare both sides and then review the 3 key rewards and 1 important warning sign.

See What Else Is Out There

Newsmax combines a rich 4.1x P/S multiple with persistent losses and less than one year of cash runway, so earnings quality and balance sheet strength remain key concerns.

If you want ideas where financial footing looks steadier, check out the solid balance sheet and fundamentals stocks screener (39 results) today and compare companies with stronger cushions against future bumps.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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