MeritValue

Newsmax Inc.

NMAXdata completeness 88%2 fiscal years on file

Data notes: no data for concept 'totalDebt'; no data for concept 'interestExpense'

The thesis, from the filings

Newsmax Inc. earns about -92% on invested capital, but has diluted owners by 163% over 2 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2024FY 2025
Revenue$171M1$189.3M1
Net income−$72.2M2−$99.5M2
Operating cash flow−$48.7M3−$104.5M3
Capital expenditure$996,2914$2.65M4
Free cash flow (derived)−$49.7M3−$107.1M3
Total debt——
Cash & equivalents$24.1M5$20.4M5
Diluted shares41.1M108.2M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$9.8
your share of equity
Profit it earned you last year
−$9.19
Free cash flow it threw off
−$9.9
Debt you’d be carrying
—

10 shares is a claim on $9.8 of net worth that earned you −$9.19 and generated −$9.9 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-92% avg · 2y
FY24 —FY25 -92%

It earned an average -92% on invested capital over 2 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+163% shares · 2y

Share count is up 163% over 2 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 2 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 2 years of FCF (need ≥3) — model not applicable
Earnings Power Value
not applicable
only 2 years of net income (need ≥3)
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2024-12-31 · accession 0002026478-26-000026 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2024-12-31 · accession 0002026478-26-000026 (NetIncomeLoss)
  3. 10-K · period ending 2024-12-31 · accession 0002026478-26-000026 (NetCashProvidedByUsedInOperatingActivities)
  4. 10-K · period ending 2024-12-31 · accession 0002026478-26-000026 (PaymentsToAcquirePropertyPlantAndEquipment)
  5. 10-K · period ending 2024-12-31 · accession 0002026478-26-000026 (CashAndCashEquivalentsAtCarryingValue)