But, will it hurt?

Will the Dominion verdict make a dent in Newsmax's bottom-line?

Breakdown of the Settlement

• Total Amount: $67 million
• Payment Schedule:
  • $27 million paid on August 15, 2025
  • $20 million due by January 15, 2026
  • $20 million due by January 15, 2027

Impact on Newsmax’s Bottom Line

While Newsmax hasn’t publicly disclosed detailed financials like annual revenue or profit margins, several indicators suggest this settlement is a major dent:

• Newsmax’s ratings are roughly one-tenth that of Fox News, which paid $787.5 million in a similar settlement. That suggests Newsmax operates on a much leaner budget.
• Newsmax already paid $40 million to Smartmatic in a separate defamation case, bringing total legal payouts to $107 million within a short span.
• The staggered payment schedule implies Newsmax needed to spread the financial burden across multiple fiscal years—often a sign of constrained liquidity or cash flow management.

Estimated Financial Strain

If we assume Newsmax’s annual revenue is in the ballpark of $100–150 million (a generous estimate based on industry comparisons), then:

• $67 million represents 45–67% of annual revenue.
• The immediate $27 million payment could consume a large portion of operating cash flow or reserves.

Strategic Implications

• Reputational Damage: The court had already ruled Newsmax defamed Dominion, and while the settlement avoids a trial, it reinforces the narrative of journalistic misconduct.
• Operational Pressure: With two major settlements in under two years, Newsmax may face pressure to tighten editorial standards, reduce legal risk exposure, and possibly restructure finances.
• Political Positioning: Despite the financial hit, Newsmax continues to defend its coverage as “fair and balanced,” signaling it may not pivot editorially despite legal consequences.