Newsmax, Inc. Class B

At this time, all participants are placed on a listen-only mode, and we'll open the floor for your questions and comments after the presentation. It is now my pleasure to hand the floor over to your host, Chris O'Day. Sir, the floor is yours.

Good afternoon, and welcome to Newsmax's first quarter 2026 earnings conference call. I'm joined today by Chris Ruddy, Chief Executive Officer, and Darrell Burnham, Chief Financial Officer. On this call, Chris and Darrell will provide some prepared remarks on the most recent quarter, and then we will take some 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, and 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 non-GAAP financial 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?

Thank you, Chris, and welcome everyone to our first quarter 2026 earnings call. Newsmax delivered a strong start to 2026. In the first quarter, we maintained our strong audience reach across cable, streaming, and digital, while continuing to strengthen the scale of our platforms. We reported revenue of $51.7 million, up 14% year over year, and broadcast revenue of $43.7 million, up over 20%. What stands out to me most is the quality of the quarter. We delivered broad first quarter audience reach with 30.4 million total viewers and 13.3 million adults, 35 to 64, reinforcing Newsmax's position as the fourth highest rated cable news channel and a top 15 cable network across key day parts. We're also maintaining some of the strongest audience engagement with adults 35 to 64, ranking number two in cable news by a wide margin. In a period when the media industry is seeing declines versus the post-election news consumption and presidential inauguration in early 2025, our first quarter rankings show that Newsmax continues to perform strongly in a more normalized environment. Despite the challenging comparison, we are encouraged by the 29% sequential increase in total viewership during the quarter versus Q4 2025 and by the continued momentum we saw in April. In addition, we continued to strengthen our multi-platform audience ecosystem with social media followers reaching 24.7 million at quarter end and now surpassing 25 million followers in May. We are also encouraged by the continued progress in our business model. As anticipated, cable and pay TV affiliate fee and licensing momentum helped drive growth in the quarter, while our profitability improved year over year as we continue to invest in programming, production, and OTT initiatives that we believe support long-term expansion. We end the quarter with $129 million in cash and short-term investments, giving us the financial flexibility to continue investing behind our growth and from a position of strength. Strategically, this quarter reinforced what we have said for some time. Newsmax is a differentiated, multi-platform media company. We are not dependent on any single channel. We continue to integrate cable, fast, subscription streaming, digital, and social in a way that expands engagement and strengthens monetization. Newsmax2 Our free streaming platform delivered sequential news hours growth of more than 22% and improved viewership across every key day part. And we continue to see streaming as an important part of our future. At the same time, we are investing in our paid subscription platform Newsmax Plus as we grow our family-friendly premium content. This includes a major expansion of our military history channels World at War and War and Warriors. where available titles increased more than 200%. Internationally, we continued to build real momentum. During the quarter, we expanded our licensing agreement with Telecom Serbia, continued to grow our international partnerships, and saw Newsmax Poland go live. More broadly, we believe international licensing and brand expansion represent a meaningful opportunity for Newsmax and one that can extend our reach and diversify revenue in a highly cost-efficient way. We are expecting to have more announcements over the coming quarters. Looking ahead, we are reiterating our full 2026 revenue guidance of 212 million to 216 million, representing 13% growth at this midpoint. We continue to expect that growth to be structural, not cyclical. With led by higher margin affiliate fee expansion and licensing growth, along with ongoing investment in premium content and digital monetization, we also expect an improved operating profile as we move through the year. Stepping back, we believe there remains significant white space for independent, reliable, values-driven journalism that resonates with audiences who have lost trust in legacy media. The right-leaning marketplace is a proven and vast market opportunity with limited true alternatives from legacy cable platforms. Newsmax is effectively capitalizing on the substantial demand by serving as the primary alternative to legacy media and staying ahead of audience migration across platforms. We are cementing our position as a trusted multi-platform leader in the space. Not just from the legacy cable world, but also with the millions of people cutting the cord and going to streaming platforms, tuning in to our Newsmax 2 channel and our app. Newsmax continues to attract unique viewers, gain traction with younger and other key demographics. and build a highly loyal audience in this underserved center-right market. We believe that positions us well to expand our reach, strengthen monetization, and deliver sustainable long-term growth in the United States and around the world. I will now turn the call over to Daryl Burnham, our Chief Financial Officer, to discuss our financial results for the first quarter, 2026.