Newsmax Inc.NMAX

Newsmax Inc. Segments Disclosure

10-KFiled Mar 26, 20263 min read
NOTE 9. SEGMENT INFORMATION
The Company has two operating segments: (1) Broadcasting and (2) Digital, which both qualify as reportable segments. In accordance with ASC 280, “Segment Reporting,” the operating segments reflect how the chief operating decision maker (“CODM”), which is our Chief Executive Officer, assesses the performance of each operating segment and determines the appropriate allocations of resources to each segment. The Company continually reviews its operating segment classifications to align with operational changes in our business and may make changes as necessary. The Company evaluates performance based upon several factors, of which the primary financial measure is Segment Adjusted EBITDA.
Due to the integrated nature of these operating segments, estimates and judgments are made in allocating certain assets, revenues and expenses.
Segment Adjusted EBITDA is defined as segment revenues less segment cost of revenues and segment general and administrative expenses and excludes depreciation, interest, net, asset impairment, unrealized gain (loss) on marketable securities, other corporate matters, other, net and income tax expense. Other corporate matters represent certain litigation expenses, and related fees, for specific proceedings that the Company has determined are infrequent and unusual in terms of their magnitude.
Segment Adjusted EBITDA is used by our CODM for evaluating the operating performance of the Company’s business segments to evaluate the performance of and allocate resources. The Company does not present asset information for its segments as this financial information is not used by the CODM to allocate resources. The following tables set forth the Company’s Revenues by Segment and Segment Adjusted EBITDA for fiscal 2025 and 2024:
20252024
Revenues
Broadcasting$153,338,799 $130,708,405 
Digital35,916,122 40,308,050 
Total revenues$189,254,921 $171,016,455 
Segment expenses and operating performance
Broadcasting
Adjusted cost of sales (1)
$86,467,319 $71,000,230 
Adjusted general and administrative expenses (2)
56,132,043 39,982,072 
Broadcasting adjusted EBITDA10,739,437 19,726,103 
Digital
Adjusted cost of sales (1)
21,347,866 22,021,051 
Adjusted general and administrative expenses (2)
31,804,093 27,765,014 
Digital adjusted EBITDA(17,235,837)(9,478,015)
Total reportable adjusted EBITDA(6,496,400)10,248,088 
Corporate and unallocated
Depreciation2,789,875 3,115,635 
Interest, net(7,015,564)(488,962)
Unrealized (loss) gain on marketable securities(1,594,221)290,081 
Stock-based compensation11,955,881 - 
Other corporate matters78,612,413 76,940,693 
Other, net (3)
8,250,335 2,562,569 
Income tax expense- - 
Net loss $(99,495,119)$(72,171,928)
(1) Adjusted cost of sales includes cost of sales less stock-based compensation.
(2) Adjusted general and administrative expenses includes general and administrative expenses less depreciation, stock-based compensation and other corporate matters.
(3) For the year ended December 31, 2025, Other, net primarily consisted of the final fair market adjustments of the Warrant liability and Derivative liability for $1.8 million and $6.1 million, respectively.
The following tables set forth the Company’s Revenues by Segment for fiscal 2025 and 2024:
20252024
Broadcasting
Advertising$104,279,886 $89,379,946 
Affiliate fee30,645,767 26,661,701 
Subscription14,860,104 12,358,641 
Other3,553,042 2,308,117 
Total Broadcast revenues153,338,799 130,708,405 
Digital
Advertising$16,005,560 $19,748,525 
Subscription12,657,008 14,548,457 
Product sales7,253,340 6,010,329 
Other214 739 
Total Digital revenues35,916,122 40,308,050 
Total revenues$189,254,921 $171,016,455 
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About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

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