With a market cap of $3.1 billion, Newsmax (NMAX) is a television broadcaster and a multiplatform content publisher. It operates in two segments: broadcasting and digital. Newsmax went public on March 31 and rose 700% in its trading debut. In fact, NMAX stock surged over 1,000% in the first two trading days, touching an all-time high of $265. Right now, the stock trades below $30 per share. Elevated trading volumes and strong investor interest drove the uptick in share prices.
In the first quarter of 2025, Newsmax reported a 50% year-over-year increase in its audience base. So, let’s see if NMAX stock is a buy, sell, or hold right now.
Is Newsmax a Good Stock to Own in 2025?
Newsmax, a conservative news network, raised $75 million through its IPO, selling 7.5 million Class B shares at $10 each. According to a new Nielsen ratings report, Newsmax has experienced substantial audience growth, rising across all day parts to become the fifth most-watched channel in all of cable.
The Q1 report showed Newsmax has grown its audience by 690% in Total Day and 1,027% in Prime time categories over the past five years. The network reported 33.6 million viewers watched in Q1, up 50% from last year.
CEO Christopher Ruddy, who founded Newsmax in 1998, positioned the company as filling a gap in the "center right market" dominated by Fox News (FOX). Newsmax ranks as the fourth-largest cable news channel, with Nielsen confirming 8 million cable viewers watched Newsmax and did not watch Fox News in Q1.
Most Newsmax programs showed significant growth, with “Carl Higbie FRONTLINE” up 45% and “Chris Plante The Right Squad” up 33% compared to Q1 of last year. It now has nearly 20 million social media followers and 16 million app downloads.
Newsmax Remains Unprofitable
Newsmax is positioning itself as a rapidly growing conservative news network with multiple revenue streams. Its investor presentation last year highlighted its growth trajectory, as it increased sales from $42 million in 2024 to $171 million in 2024. Nielsen ratings data in 2024 also showed audience growth across all dayparts, with Newsmax experiencing 137% growth in primetime viewership while Fox News declined by 2% in the same period.
Newsmax touts a multiplatform approach, including cable TV, streaming services (Newsmax2 and Newsmax+), digital properties, and print publications. Its growth potential in the future should be driven by increasing cable license fees (currently much lower than competitors like Fox News), expanding audience reach (currently 40 million regular viewers), and multiple revenue streams, including advertising, subscriptions, and e-commerce products.
Despite its steady revenue growth, NMAX stock remains a high-risk investment due to its sizeable operating expenses. These expenses more than doubled from $78.4 million in 2022 to $154 million in 2024. The growth company should showcase an ability to expand its audience base and profit margins to gain investor confidence.
