Newsmax Inc.

Previous wording

The following “Management’s Discussion and Analysis of Financial Condition and Results of Operations” should be read in conjunction with the unaudited consolidated financial statements for the three and six months ended June 30, 2025 and the audited consolidated financial statements for the year ended December 31, 2024, and other information included elsewhere in this Quarterly Report. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from such forward-looking statements. Factors that could cause or contribute to those differences include, but are not limited to, those identified below and those discussed in the sections entitled “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements” included elsewhere in this Quarterly Report and our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 as may be amended, supplemented or superseded from time to time by other reports we file with the SEC. Additionally, our historical results are not necessarily indicative of the results that may be expected in any future period.

Current wording

The following “Management’s Discussion and Analysis of Financial Condition and Results of Operations” should be read in conjunction with the unaudited consolidated financial statements for the three and nine months ended September 30, 2025 and the audited consolidated financial statements for the year ended December 31, 2024, and other information included elsewhere in this Quarterly Report. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from such forward-looking statements. Factors that could cause or contribute to those differences include, but are not limited to, those identified below and those discussed in the sections entitled “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements” included elsewhere in this Quarterly Report and our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 as may be amended, supplemented or superseded from time to time by other reports we file with the SEC. Additionally, our historical results are not necessarily indicative of the results that may be expected in any future period.

Previous wording

The Company has developed a significant audience, reaching over 40 million Americans each month through its television broadcasts and multi-platform content, and has demonstrated remarkable growth with revenues up 309% since 2019.

Current wording

We have developed a significant audience, reaching over 40 million Americans each month through our television broadcasts and multi-platform content, and we have demonstrated remarkable growth with revenues up 309% since 2019.

Previous wording

•Broadcasting - The broadcast segment of the Company’s business produces and licenses news, business news and lifestyle content for distribution primarily through MVPDs including cable television systems, direct broadcast satellite operators and telecommunication companies, primarily in the United States, generating revenue through (1) placement of advertisements on our broadcast content, (2) subscriptions to our broadcast content, and (3) affiliate fees from the MVPDs. The components of Broadcasting are as follows:

Current wording

•Broadcasting - The broadcast segment of our business produces and licenses news, business news and lifestyle content for distribution primarily through MVPDs including cable television systems, direct broadcast satellite operators and telecommunication companies, primarily in the United States, generating revenue through (1) placement of advertisements on our broadcast content, (2) subscriptions to our broadcast content, and (3) affiliate fees from the MVPDs. The components of Broadcasting are as follows:

Previous wording

•Humanix Publishing LLC is a print and e-book publishing house that publishes books in the areas of politics, health, personal finance, history, religion and current affairs. Under Newsmax ownership, Humanix Publishing has published approximately 100 titles, including a New York Times bestseller. The Company uses published books as free premiums when offering subscriptions to their publications, including Newsmax Magazine and their health and financial newsletters.

Current wording

•Humanix Publishing LLC is a print and e-book publishing house that publishes books in the areas of politics, health, personal finance, history, religion and current affairs. Under Newsmax ownership, Humanix Publishing has published approximately 100 titles, including a New York Times bestseller. We use published books as free premiums when offering subscriptions to their publications, including Newsmax Magazine and their health and financial newsletters.

Previous wording

•Newsmax, as a relatively new network, has potential for additional distribution growth, and growth of its advertising revenue as well as affiliate fees , which is a revenue stream that started in 2023 where previously the Company paid for distribution. Linear TV is primarily driven by live sports, news and events, and as media companies continue to focus on expanding their streaming service offerings, news consumption has risen in importance.

Current wording

•Newsmax, as a relatively new network, has potential for additional distribution growth, and growth of its advertising revenue as well as affiliate fees, which is a revenue stream that started in 2023, where previously we paid for distribution. Linear TV is primarily driven by live sports, news and events, and as media companies continue to focus on expanding their streaming service offerings, news consumption has risen in importance.

Previous wording

The Company’s broadcast segment derives the majority of its revenues from advertising. For the three months ended June 30, 2025, the Company generated revenues of approximately $46.4 million, of which 64.3% was generated from advertising in the broadcast and digital segments, 15.8% was generated from affiliate fee revenue, 15.0% was generated from subscriptions for publications including Newsmax+ and 4.8% was generated from other lines of business which are primarily e-commerce sales of nutraceuticals, books and licensing fees.

Current wording

Our broadcast segment derives the majority of its revenues from advertising. For the three months ended September 30, 2025, the Company generated revenues of approximately $45.3 million, of which 60.9% was generated from advertising in the broadcast and digital segments, 17.8% was generated from affiliate fee revenue, 15.2% was generated from subscriptions for publications including Newsmax+ and 6.1% was generated from other lines of business which are primarily e-commerce sales of nutraceuticals, books and licensing fees.

Previous wording

For the three months ended June 30, 2024, the Company generated revenues of $39.2 million, of which approximately 60.3% was generated from advertising in the broadcast and digital segments, approximately 17.4% was generated from affiliate fees, approximately 16.9% was generated from subscriptions for publications including Newsmax+, approximately 5.3% was generated from other lines of business which are primarily e-commerce sales of nutraceuticals, books and licensing fee.

Current wording

For the three months ended September 30, 2024, we generated revenues of $43.5 million, of which approximately 64.4% was generated from advertising in the broadcast and digital segments, approximately 15.1% was generated from affiliate fees, approximately 15.8% was generated from subscriptions for publications including Newsmax+, approximately 4.6% was generated from other lines of business which are primarily e-commerce sales of nutraceuticals, books and licensing fee.

Previous wording

Affiliate fees are a new revenue stream that started in November 2023 that primarily include (i) monthly subscriber-based license and retransmission consent fees paid by programming distributors that carry the Newsmax channel. The Company’s revenues are impacted by rate changes, changes in the number of subscribers to MVPD’s and changes in the expenditures by advertisers.

Current wording

Affiliate fees are a revenue stream that started in November 2023 that primarily include (i) monthly subscriber-based license and retransmission consent fees paid by programming distributors that carry the Newsmax channel. Our revenues are impacted by rate changes, changes in the number of subscribers to MVPD’s and changes in the expenditures by advertisers.

Previous wording

The Company operates in a highly competitive industry and its performance is dependent, to a large extent, on the impact of changes in consumer behavior as a result of new technologies, the sale of advertising, the maintenance, renewal and terms of its carriage, affiliation and content agreements and programming rights, the popularity of its content, general economic conditions (including financial market conditions), the Company’s ability to manage its businesses effectively, and its relative strength and leverage in the industry. For more information, see “Risk Factors.”

Current wording

We operate in a highly competitive industry and its performance is dependent, to a large extent, on the impact of changes in consumer behavior as a result of new technologies, the sale of advertising, the maintenance, renewal and terms of its carriage, affiliation and content agreements and programming rights, the popularity of its content, general economic conditions (including financial market conditions), our ability to manage the businesses effectively, and its relative strength and leverage in the industry. For more information, see “Risk Factors.”

Previous wording

In accordance with Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers,” the Company recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration the Company expects to be entitled in exchange for those goods are services.

Current wording

In accordance with Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers,” we recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration we expect to be entitled to in exchange for those goods and services.

Previous wording

Advertising revenue is derived from the sale of advertising on the Company’s cable television, email database, in the Company’s magazine and related publications, or on the Company’s website. Revenue related to the sale of advertising in the broadcast segment is recognized at the time of broadcast. Revenue related to the Company's digital segment is recognized when display or other digital advertisements record impressions on the various digital media. Revenue related to the Company's magazine and related publications is recognized when the ad is displayed in the printed document. Each advertisement insertion order is determined to be a distinct performance obligation that is satisfied at the point in time when such advertisements are published/aired. The Company records revenue from contracts that are entered into between the Company and its customers, primarily advertising agencies and direct advertisers, at the amount charged for the services. Advertising contracts, which are generally short-term, are billed monthly for the services provided during the month, with payments due shortly thereafter. Cash payments received prior to services rendered result in deferred revenue, which is then recognized as revenue when the advertising time or space is actually provided.

Current wording

Advertising revenue is derived from the sale of advertising on our cable television, email database, in our magazine and related publications, or on our website. Revenue related to the sale of advertising in the broadcast segment is recognized at the time of broadcast. Revenue related to our digital segment is recognized when display or other digital advertisements record impressions on the various digital media. Revenue related to our magazine and related publications is recognized when the ad is displayed in the printed document. Each advertisement insertion order is determined to be a distinct performance obligation that is satisfied at the point in time when such advertisements are published/aired. We record revenue from contracts that are entered into between us and our customers, primarily advertising agencies and direct advertisers, at the amount charged for the services. Advertising contracts, which are generally short-term, are billed monthly for the services provided during the month, with payments due shortly thereafter. Cash payments received prior to services rendered result in deferred revenue, which is then recognized as revenue when the advertising time or space is actually provided.

Previous wording

The Company enters into agreements with over-the-top distribution platforms to distribute the Company’s news channel. Pursuant to the Company’s distribution agreements, advertising revenues are earned based on an allocation of the fee determined by the number of impressions received. These contracts represent a single performance obligation recognized over time under the series guidance. Revenue is recognized upon delivery of the content over the course of an over-the-top distribution agreement term based on time elapsed, as this best depicts the simultaneous consumption and delivery of the services. The Company bills OTT customers monthly over the life of the contract. The Company has an unconditional right to receive payment of the amount billed generally within 30 to 90 days from the invoice date. The invoiced amount to be received is recorded in accounts receivable on the balance sheets.

Current wording

We enter into agreements with over-the-top distribution platforms to distribute our news channel. Pursuant to our distribution agreements, advertising revenues are earned based on an allocation of the fee determined by the number of impressions received. These contracts represent a single performance obligation recognized over time under the series guidance. Revenue is recognized upon delivery of the content over the course of an over-the-top distribution agreement term based on time elapsed, as this best depicts the simultaneous consumption and delivery of the services. We bill OTT customers monthly over the life of the contract. We have an unconditional right to receive payment of the amount billed generally within 30 to 90 days from the invoice date. The invoiced amount to be received is recorded in accounts receivable on our condensed consolidated balance sheets.

Previous wording

The Company generates affiliate fee revenue from agreements with MVPDs for cable network. Affiliate fee revenue is recognized as we continuously make the programming available to the customer over the term of the agreement. For contracts with affiliate fees based on the number of the affiliate’s subscribers, revenues are recognized based on the contractual rate multiplied by the estimated number of subscribers each period. Affiliate contracts are generally multi-year contracts billed monthly with payments due shortly thereafter.

Current wording

We generate affiliate fee revenue from agreements with MVPDs for cable network. Affiliate fee revenue is recognized as we continuously make the programming available to the customer over the term of the agreement. For contracts with affiliate fees based on the number of the affiliate’s subscribers, revenues are recognized based on the contractual rate multiplied by the estimated number of subscribers each period. Affiliate contracts are generally multi-year contracts billed monthly with payments due shortly thereafter.

Previous wording

The Company sells magazines to consumers through subscriptions. Each subscription is determined to be a distinct performance obligation that is satisfied over the term of the subscription, normally one (1) to five (5) years. Payments for subscriptions received in advance of the publication are recorded as deferred revenue and recognized as income over the term, as this best represents the transfer of control of the services to the consumer. The Company records taxes collected from customers and remitted to governmental authorities on a net basis.

Current wording

We sell magazines to consumers through subscriptions. Each subscription is determined to be a distinct performance obligation that is satisfied over the term of the subscription, normally one (1) to five (5) years. Payments for subscriptions received in advance of the publication are recorded as deferred revenue and recognized as income over the term, as this best represents the transfer of control of the services to the consumer. We record taxes collected from customers and remitted to governmental authorities on a net basis.

Previous wording

In 2023, the Company launched Newsmax+ which is a subscription service that provides the Company’s broadcast content directly to consumers either on a monthly or annual basis. Monthly subscriptions are recognized as income in the month it was earned. Annual subscriptions are recorded as deferred revenue and recognized as income over the term of the contract each month.

Current wording

In 2023, we launched Newsmax+ which is a subscription service that provides our broadcast content directly to consumers either on a monthly or annual basis. Monthly subscriptions are recognized as income in the month it was earned. Annual subscriptions are recorded as deferred revenue and recognized as income over the term of the contract each month.

Previous wording

Product sales are derived from the sales of books, audio and video, dietary supplements, television production and distribution, and other items advertised on the Company’s website. Supplement, books, media and other product sales are recognized at the point in time control transfers to the customer, which is when the product is shipped. Allowances are considered for estimated returns and refunds at the point in time when revenue is recognized. The Company records taxes collected from customers and remitted to governmental authorities on a net basis.

Current wording

Product sales are derived from the sales of books, audio and video, dietary supplements, television production and distribution, and other items advertised on our website. Supplement, books, media and other product sales are recognized at the point in time control transfers to the customer, which is when the product is shipped. Allowances are considered for estimated returns and refunds at the point in time when revenue is recognized. We record taxes collected from customers and remitted to governmental authorities on a net basis.

Previous wording

As a practical expedient, the Company recognizes any incremental costs of obtaining contracts as expense as the amortization period is considered to be a year or less. As a practical expedient, the Company accounts for shipping and handling activities related to contracts with customers as costs to fulfill the promise to transfer the associated products.

Current wording

As a practical expedient, we recognize any incremental costs of obtaining contracts as expense as the amortization period is considered to be a year or less. As a practical expedient, we account for shipping and handling activities related to contracts with customers as costs to fulfill the promise to transfer the associated products.

Previous wording

The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses and doubtful accounts. The Company’s allowance for credit losses consists of losses expected based on known credit issues with specific customers as well as a general expected credit loss allowance based on relevant information, including historical loss rates, current conditions, and reasonable economic forecasts that affect collectability.

Current wording

We perform ongoing credit evaluations of its customers and maintains allowances for potential credit losses and doubtful accounts. Our allowance for credit losses consists of losses expected based on known credit issues with specific customers as well as a general expected credit loss allowance based on relevant information, including historical loss rates, current conditions, and reasonable economic forecasts that affect collectability.

Previous wording

Revenues increased by approximately $11.9 million, or 14.9%, for the six months ended June 30, 2025, compared to the six months ended June 30, 2024. Advertising revenue increased by approximately $9.6 million due to higher linear cable and satellite advertising revenue due to higher Nielsen ratings which translated to higher rates but was offset by reductions in digital advertising revenue due to 2024 being an election year. Affiliate fee revenues increased by approximately $1.3 million due to new contractual relationships as well as rate increases which took effect in 2025. Subscription revenue increased by approximately $1.0 million due to an increase in subscribers of the Newsmax+ streaming service but was offset by reductions in publication subscriptions due to decreased new customer acquisition. Product Sales increased by approximately $0.2 million due to sales of the new book releases "Pay Zero Taxes", "Turnaround" and "Plan Red" but was offset by lower nutraceutical sales as a result of decreased new customer acquisition.

Current wording

Revenues increased by approximately $1.8 million, or 4.0%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. Advertising revenue decreased by approximately $(0.5) million due to reductions in digital advertising revenue (given that 2024 was an election year) offset by higher linear cable and satellite advertising revenue due to expanded reach from new affiliate agreements. Affiliate fee revenues increased by approximately $1.5 million due to new contractual relationships as well as rate increases which took effect in 2025. Subscription revenue remained flat due to an increase in subscribers of the Newsmax+ streaming service but was offset by reductions in publication subscriptions due to decreased new customer acquisition. Other revenue increased by approximately $0.7 million due to an amendment of one of our licensing agreements that increased the rate and duration of the partnership.

Previous wording

Cost of revenues increased by approximately $6.3 million, or 28.0%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The increase was due to increased headcount, programming and production costs on our main Newsmax TV channel as well as continued investment into Newsmax 2 for OTT to build out the programming to better monetize Newsmax 2 on FAST channels. Other drivers related to the increase include stock-based compensation expense, additional costs for remote shoots to cover news events and increase in SMS messaging.

Current wording

Cost of revenues increased by approximately $5.6 million, or 23.4%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The increase was due to increased headcount, programming and production costs on our main Newsmax TV channel as well as continued investment into Newsmax 2 for OTT to build out the programming to better monetize Newsmax 2 on FAST channels. Other drivers related to the increase include stock-based compensation expense, additional costs for remote shoots to cover news events and increase in SMS messaging.

Previous wording

Gross profit increased by approximately $0.9 million, or 5.5%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. Gross profit as a percent of revenues decreased to 38.0% for the three months ended June 30, 2025 from 42.6% for the three months ended June 30, 2024. Gross profit increased mainly due to an increase in revenue around advertising, affiliate fees and Newsmax+.

Current wording

Gross profit decreased by approximately $(3.8) million, or (19.2)%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. Gross profit as a percent of revenues decreased to 35.3% for the three months ended September 30, 2025 from 45.4% for the three months ended September 30, 2024. Gross profit decreased mainly due to an increase in cost of revenues.

Previous wording

Other (expense) income net decreased by approximately $1.3 million, or 2,185.3%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The decrease was primarily driven by interest and dividend income offset by an increase in unrealized losses on marketable securities.

Current wording

Other income (expense), net increased by approximately $4.1 million, or 421.7%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The increase was primarily driven by interest and dividend income as well as a reduction of one-time expenses related to becoming a publicly traded company.

Previous wording

The following tables set forth the Company’s Revenues and Segment EBITDA for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024:

Current wording

The following tables set forth our Revenues and Segment EBITDA for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024:

Previous wording

Broadcast Revenues increased by $8.4 million for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, due to an increase in advertising revenue of approximately $7.0 million due to higher ratings and pricing, affiliate fee revenue of approximately $0.5 million, which is attributed to new contractual relationships starting later in 2024 as well as rate increases for 2025, subscription revenue of approximately $0.9 million from Newsmax+ due to an increase in subscribers.

Current wording

Broadcast Revenues increased by $3.4 million for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, due to an increase in advertising revenue of approximately $0.8 million due to higher rates, affiliate fee revenue of approximately $1.5 million, which is attributed to new contractual relationships starting later in 2024 as well as rate increases for 2025, and subscription revenue of approximately $0.4 million from Newsmax+ due to an increase in subscribers.

Previous wording

Broadcast Segment Adjusted EBITDA decreased for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, primarily due to increases in cost of revenues and SG&A expense related to increased headcount, programming and production costs on our main Newsmax TV channel as well as continued investment into Newsmax 2 for OTT to build out the programming to better monetize Newsmax 2 on FAST channels. Additional increases consisted of marketing for TV, audit, consulting and legal fees associated with becoming a public company, costs associated with coverage of the funeral for Pope Francis and the papal conclave for the election of Pope Leo XIV, bad debt adjustments and rent expense.

Current wording

Broadcast Segment Adjusted EBITDA decreased for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, primarily due to increases in cost of revenues and SG&A expense related to increased headcount, programming and production costs on our main Newsmax TV channel as well as continued investment into Newsmax 2 for OTT to build out the programming to better monetize Newsmax 2 on FAST channels. Additional cost increases consisted of marketing for TV, audit, and consulting fees

Previous wording

Digital Revenues decreased by $1.2 million for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, due to decreases in advertising revenue due to 2024 being an election year which drives digital advertising revenue as well as subscription revenue as a result of decreased marketing for new customer acquisitions.

Current wording

Digital Revenues decreased by $1.6 million for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, due to decreases in advertising revenue due to 2024 being an election year which drives digital advertising revenue as well as subscription revenue as a result of decreased marketing for new customer acquisitions.

Previous wording

The results of operations presented below should be reviewed in conjunction with the unaudited condensed consolidated financial statements and notes included elsewhere in this Quarterly Report. The following table sets forth our results of operations data for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024:

Current wording

The results of operations presented below should be reviewed in conjunction with the unaudited condensed consolidated financial statements and notes included elsewhere in this Quarterly Report. The following table sets forth our results of operations data for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024:

Previous wording

Revenues increased by approximately $7.2 million, or 18.4%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024. Advertising revenue increased by approximately $6.2 million due to higher linear cable and satellite advertising revenue due to higher Nielsen ratings which translated to higher rates but was offset by reductions in digital advertising revenue due to 2024 being an election year. Affiliate fee revenues increased by approximately $0.5 million due to new contractual relationships as well as rate increases which took effect in 2025. Subscription revenue increased by approximately $0.3 million due to an increase in subscribers of the Newsmax+ streaming service but was offset by reductions in publication subscriptions due to decreased new customer acquisition. Product Sales increased by approximately $0.1 million due to continued sales of "Pay Zero Taxes" but was offset by lower nutraceutical sales as a result of decreased new customer acquisition.

Current wording

Revenues increased by approximately $13.7 million, or 11.1%, for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. Advertising revenue increased by approximately $9.2 million due to higher linear cable and satellite advertising revenue due to higher Nielsen ratings and expanded reach from new affiliate agreements which translated to higher rates but was offset by reductions in digital advertising revenue due to 2024 being an election year. Affiliate fee revenues increased by approximately $2.8 million due to new contractual relationships as well as rate increases which took effect in 2025. Subscription revenue increased by approximately $1.0 million due to an increase in subscribers of the Newsmax+ streaming service but was offset by reductions in publication subscriptions due to decreased new customer acquisition.

Previous wording

Cost of revenues increased by approximately $10.4 million, or 23.6%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The increase was due to increased headcount, programming and production costs on our main Newsmax TV channel as well as continued investment into Newsmax 2 for OTT to build out the programming to better monetize Newsmax 2 on FAST channels. Other drivers related to the increase include stock-based compensation expense additional costs for remote shoots to cover news events and increase in SMS messaging.

Current wording

Cost of revenues increased by approximately $16.0 million, or 23.5%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The increase was due to increased headcount, programming and production costs on our main Newsmax TV channel as well as continued investment into Newsmax 2 for OTT to build

Previous wording

3 Comprised 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.

Current wording

3 Comprised of certain litigation expenses, and related fees, for specific legal proceedings that we have determined are infrequent and unusual in terms of their magnitude.

Previous wording

Gross profit increased by approximately $1.5 million, or 4.1%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. Gross profit as a percent of revenues decreased to 40.4% for the six months ended June 30, 2025 from 44.6% for the six months ended June 30, 2024. Gross profit increased mainly due to an increase in revenue around advertising, affiliate fees and Newsmax+.

Current wording

Gross profit decreased by approximately $(2.3) million, or (4.2)%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. Gross profit as a percent of revenues decreased to 38.7% for the nine months ended September 30, 2025 from 44.9% for the nine months ended September 30, 2024. Gross profit decreased mainly due to an increase in cost of sales related to production head count and stock-based compensation (as described in the preceding paragraph).

Previous wording

General and administrative expense increased by approximately $33.9 million or 37.1%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The increase was primarily driven by the settlement of the Dominion lawsuit with additional increases in additional marketing costs, increased travel expense related to news coverage, stock-based compensation and general legal expenses.

Current wording

General and administrative expense increased by approximately $28.5 million or 23.8%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The increase was driven by increases in legal settlement expense along with increased marketing costs, travel expense related to news coverage, stock-based compensation, and professional and legal services around becoming a public company.

Previous wording

Other (expense) income net increased by approximately $4.5 million, or 4,420.7%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The increase was primarily driven by non-cash mark to market adjustments for the derivative and warrant liabilities offset by increases in interest and dividend income as well as an increases in unrealized gains on marketable securities.

Current wording

Other (expense) income net increased by approximately $0.4 million, or 46.1%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The increase was primarily driven by non-cash mark to market adjustments for the derivative and warrant liabilities offset by increases in interest and dividend income as well as an increases in unrealized gains on marketable securities.

Previous wording

The following tables set forth the Company’s Revenues and Segment EBITDA for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024:

Current wording

The following tables set forth our Revenues and Segment EBITDA for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024:

Previous wording

Broadcast Revenues increased by $14.5 million for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, due to an increase in advertising revenue of approximately $11.3 million due to higher ratings and pricing, affiliate fee revenue of approximately 1.3 million, which is attributed to new contractual relationships starting later in 2024 as well as rate increases for 2025, subscription revenue of approximately 2.1 million from Newsmax+ due to an increase in subscribers.

Current wording

Broadcast Revenues increased by $17.9 million for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, due to an increase in advertising revenue of approximately $12.1 million due to higher ratings and pricing and expanded reach from new affiliate agreements, affiliate fee revenue of approximately 2.8 million, which is attributed to new contractual relationships starting later in 2024 as well as rate increases for 2025, subscription revenue of approximately $2.5 million from Newsmax+ due to an increase in subscribers.

Previous wording

Broadcast Segment Adjusted EBITDA decreased for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, primarily due to increases in cost of revenues and G&A expense related to increased headcount, programming and production costs on our main Newsmax TV channel as well as continued investment into Newsmax 2 for OTT to build out the programming to better monetize Newsmax 2 on FAST channels. Additional increases consisted of marketing for TV, audit, consulting and legal fees associated with becoming a public company and costs associated with coverage of President Donald J. Trump's inauguration on January 20, 2025. These expense increases were offset by reductions in distribution and carriage costs, fulfillment costs and bank fees..

Current wording

Broadcast Segment Adjusted EBITDA decreased for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, primarily due to increases in cost of revenues and G&A expense related to increased headcount, programming and production costs on our main Newsmax TV channel as well as continued investment into Newsmax 2 for OTT to build out the programming to better monetize Newsmax 2 on FAST channels. Additional increases consisted of marketing for TV, audit, consulting and legal fees associated with becoming a public company and costs associated with coverage of significant news events including President Donald J. Trump's inauguration, coverage of the funeral for Pope Francis and the papal conclave for the election of Pope Leo XIV and the death of Charlie Kirk. These expense increases were offset by reductions in distribution and carriage costs, fulfillment costs and bank fees.

Previous wording

Digital Revenues decreased by $2.6 million for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, due to decreases in advertising revenue due to 2024 being an election year which drives digital advertising revenue as well as subscription revenue as a result of decreased marketing for new customer acquisitions.

Current wording

Digital Revenues decreased by $4.2 million for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, due to decreases in advertising revenue during 2025 due to 2024 being an election year which drives digital advertising revenue as well as subscription revenue as a result of decreased marketing for new customer acquisitions.

Previous wording

Digital Segment Adjusted EBITDA decreased for the three months ended June 30, 2025, as compared to three months ended June 30, 2024, due to increased headcount, consulting and legal fees associated with becoming a public company.

Current wording

Digital Segment Adjusted EBITDA decreased for the nine months ended September 30, 2025, as compared to nine months ended September 30, 2024, due to increased headcount, consulting and legal fees associated with becoming a public company.

Previous wording

The following table reconciles Net loss to Adjusted EBITDA for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024:

Current wording

The following table reconciles Net loss to Adjusted EBITDA for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024:

Previous wording

The Company had approximately $33.8 million of cash and cash equivalents and $164.1 million in investments as of June 30, 2025. The Company’s primary sources of liquidity include cash on hand and available-for-sale investments.

Current wording

We had approximately $14.2 million of cash and cash equivalents and $116.2 million in investments as of September 30, 2025. Our primary sources of liquidity include cash on hand and available-for-sale investments.