The company faces a severe cash-earnings disconnect, evidenced by an OCF/NI ratio of 10.35 in 2026Q1, as persistent negative free cash flow continues to drain liquid reserves.
| Cash from Operations | -71.37M | -64.45M | -48.69M | -3.83M | -7.32M |
| Operating CF Margin % | - | -34.05% | -28.47% | -2.83% | -5.41% |
| Operating CF Growth % | -502.68% | -32.39% | -1170.71% | 47.63% | - |
| Net Income | -84.45M | 0 | -72.17M | -41.78M | -19.94M |
| Depreciation & Amortization | 4.74M | 0 | 6.17M | 3.67M | 2.56M |
| Stock-Based Compensation | 3.42M | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 13.22M | -70.95M | 12.88M | 29.73M | 3.01M |
| Working Capital Changes | -10.49M | 6.49M | 4.43M | 4.55M | 7.05M |
| Change in Receivables | -9.64M | -4.97M | -6.55M | -5.79M | 3.13M |
| Change in Inventory | -127.1K | -234.47K | 2.04M | -873 | -1.3M |
| Change in Payables | -63.44K | 1.92M | -5.09M | 4.5M | 6.82M |
| Cash from Investing | -24.22M | -53.12M | -58.43M | 5.4M | -5.6M |
| Capital Expenditures | -2.82M | -2.65M | -996.29K | -916.99K | -5.88M |
| CapEx % of Revenue | 1.44% | 1.4% | 0.58% | 0.68% | 4.35% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 6.07M | 153.96M | 125.13M | 427.44K | 0 |
| Debt Issued (Net) | -227.12K | -199.24K | -689.37K | 427.44K | 0 |
| Equity Issued (Net) | -6.58M | 155.07M | 125.82M | 0 | 0 |
| Dividends Paid | -610.14K | -915.07K | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 13.49M | 0 | 0 | 0 | 0 |
| Net Change in Cash | -89.52M | 16.38M | 18.02M | 1.99M | 4.05M |
| Free Cash Flow | -74.19M | -67.11M | -49.68M | -4.75M | -13.2M |
| FCF Margin % | -37.93% | -35.45% | -29.05% | -3.51% | -9.76% |
| FCF Growth % | -19.49% | -35.07% | -946.3% | 64.03% | - |
| FCF per Share | -0.58 | -0.52 | -0.39 | -0.04 | -0.16 |
| FCF Conversion (FCF/Net Income) | 0.88x | 0.65x | 0.67x | 0.09x | 0.37x |
| Interest Paid | 1.24K | 1.83K | 42.3K | 24.96K | 0 |
| Taxes Paid | 0 | 28.16K | 0 | 0 | 0 |
Persistent Operating Cash Burn
As reported in the quarterly financial data, Newsmax exhibits a profound disconnect between net income and operating cash flow, with the OCF/NI ratio reaching an extreme 10.35 in 2026Q1, suggesting that accounting losses are significantly amplified by cash-based working capital outflows rather than non-cash depreciation charges.
The consistent divergence between net income and operating cash flow indicates that the company's reported earnings do not capture the full extent of its liquidity requirements. Investors should monitor this gap, as it suggests that the business model requires substantial cash injections to fund operations that are not reflected in standard accrual-based profitability metrics.
Based on the provided cash flow statements, Newsmax's free cash flow remains consistently negative, bottoming out at -$29.2 million in 2025Q3, which underscores a structural inability to generate self-sustaining cash flow despite the company's reported double-digit revenue growth and ongoing efforts to expand its digital subscriber base.
The persistent negative FCF margins, which reached -64.6% in 2025Q3, imply that the company is currently in a capital-intensive growth phase that consumes rather than generates liquidity. This trajectory warrants further investigation into whether the current marketing spend is effectively building long-term customer value or merely subsidizing temporary audience acquisition.
According to recent financial filings, working capital fluctuations are the primary driver of cash volatility, evidenced by a massive $45.2 million swing in 2025Q2, which suggests that the company's cash position is highly sensitive to the timing of inventory procurement and the collection of receivables.
The erratic nature of working capital changes indicates that the company may be struggling to manage the cash conversion cycle of its nutraceutical and newsletter segments. Such volatility suggests that liquidity management is a significant operational challenge, potentially forcing the company to rely on external funding to bridge gaps in its cash cycle.
As indicated by the reported figures, Newsmax maintains a remarkably low capital intensity, with CapEx/Revenue ratios consistently below 2.5%, which suggests that the company's primary cash drain is not physical infrastructure investment but rather the high operational costs associated with content production and direct-response marketing.
While the low capital expenditure profile might appear favorable, it implies that the company's competitive position is maintained through recurring operating expenses rather than durable asset accumulation. This reliance on variable costs rather than fixed assets may limit the company's ability to achieve operating leverage as it scales.
Quick answers to the most common questions about buying NMAX stock.
Newsmax, Inc. (NMAX) generated $-64.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Newsmax, Inc. (NMAX) reported negative free cash flow of $67.1M in 2025, indicating capital requirements exceeded cash from operations.
Newsmax, Inc. (NMAX) spent $2.7M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Newsmax, Inc. (NMAX) returned $0.9M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.