📈 FOX — Earnings Recap

EX-99.1 2 foxearningsreleaseq226.htm EX-99.1 Document Exhibit 99.1 EARNINGS RELEASE FOR THE QUARTER ENDED DECEMBER 31, 2025 FOX REPORTS SECOND QUARTER FISCAL 2026 REVENUES OF $5.18 BILLION, NET INCOME OF $247 MILLION, AND ADJUSTED EBITDA OF $692 MILLION NEW YORK, NY, February 4, 2026 Fox Corporation (Nasdaq FOXA, FOX FOX or the Company ) today reported financial results for the three months ended December 31, 2025. The Company reported total quarterly revenues of $5.18 billion, an increase of $104 million or 2% from the amount reported in the prior year quarter. Distribution revenues increased 4%, primarily driven by 5% growth at the Cable Network Programming segment. Advertising revenues increased 1%, primarily due to higher sports and news pricing, continued digital growth led by the Tubi AVOD service, and the impact of additional MLB postseason games, partially offset by lower political advertising revenues and lower ratings. Content and other revenues were essentially unchanged from the prior year quarter. The Company reported quarterly net income of $247 million as compared to the $388 million reported in the prior year quarter. Net income attributable to Fox Corporation stockholders was $229 million ($0.52 per share) as compared to the $373 million ($0.81 per share) reported in the prior year quarter. Adjusted net income attributable to Fox Corporation stockholders 1 was $360 million ($0.82 per share) as compared to the $442 million ($0.96 per share) reported in the prior year quarter. Quarterly Adjusted EBITDA 2 was $692 million as compared to $781 million reported in the prior year quarter as the revenue increase noted above was more than offset by higher expenses. The increase in expenses was primarily due to higher sports programming rights amortization and production costs, and higher digital marketing costs, partially offset by lower entertainment programming rights amortization and production costs. Commenting on the results, Executive Chair and Chief Executive Officer Lachlan Murdoch said FOX delivered robust results in the second quarter of fiscal 2026 with broad based contributions from across our portfolio, including notable strength in advertising, where despite strong political advertising revenues a year ago, we still grew total company advertising revenue. These results represent a continuation of the operating and financial momentum that we have delivered over the last several years and are a product of both a highly differentiated strategy and high quality execution that reflect the power of our leadership brands across news, sports, streaming and entertainment. 1 Excludes net income effects of Restructuring, impairment and other corporate matters, adjustments to Equity earnings (losses) of affiliates, Non-operating other, net, Tax provision and Noncontrolling interest adjustments. See Note 1 for a description of adjusted net income attributable to Fox Corporation stockholders and adjusted earnings per share attributable to Fox Corporation stockholders, which are considered non-GAAP financial measures, and a reconciliation of reported net income attributable to Fox Corporation stockholders and earnings per share attributable to Fox Corporation stockholders to adjusted net income attributable to Fox Corporation stockholders and adjusted earnings per share attributable to Fox Corporation stockholders. 2 Adjusted EBITDA is considered a non-GAAP financial measure. See Note 2 for a description of Adjusted EBITDA and a reconciliation of net income to Adjusted EBITDA. Page 1 EARNINGS RELEASE FOR THE QUARTER ENDED DECEMBER 31, 2025 REVIEW OF OPERATING RESULTS Three Months Ended December 31, Six Months Ended December 31, 2025 2024 2025 2024 $ Millions Revenues by Component Distribution 3 $ 2,002 $ 1,933 $ 3,917 $ 3,801 Advertising 2,455 2,422 3,867 3,751 Content and other 725 723 1,136 1,090 Total revenues $ 5,182 $ 5,078 $ 8,920 $ 8,642 Segment Revenues Cable Network Programming $ 2,275 $ 2,165 $ 3,937 $ 3,762 Television 2,937 2,961 4,987 4,914 Corporate and Other 124 58 213 123 Eliminations (154) (106) (217) (157) Total revenues $ 5,182 $ 5,078 $ 8,920 $ 8,642 Adjusted EBITDA Cable Network Programming $ 687 $ 657 $ 1,487 $ 1,405 Television 143 205 542 577 Corporate and Other (138) (81) (272) (153) Adjusted EBITDA 4 $ 692 $ 781 $ 1,757 $ 1,829 Depreciation and amortization Cable Network Programming $ 27 $ 25 $ 53 $ 45 Television 30 30 60 59 Corporate and Other 43 42 85 84 Total depreciation and amortization $ 100 $ 97 $ 198 $ 188 3 The Company generates distribution revenue from agreements with MVPDs for cable network programming and retransmission fees for the broadcast of the Company s owned and operated television stations and from subscription fees for the Company s direct-to-consumer streaming services. In addition, the Company generates distribution revenue from agreements with independently owned television stations that are affiliated with the FOX Network. Prior period amounts have been reclassified to conform to the current presentation. 4 Adjusted EBITDA is considered a non-GAAP financial measure. See Note 2 for a description of Adjusted EBITDA and a reconciliation of net income to Adjusted EBITDA. Page 2 EARNINGS RELEASE FOR THE QUARTER ENDED DECEMBER 31, 2025 CABLE NETWORK PROGRAMMING Three Months Ended December 31, Six Months Ended December 31, 2025 2024 2025 2024 $ Millions Revenues Distribution $ 1,163 $ 1,109 $ 2,253 $ 2,171 Advertising 491 460 836 781 Content and other 621 596 848 810 Total revenues 2,275 2,165 3,937 3,762 Operating expenses (1,426) (1,354) (2,129) (2,056) Selling, general and administrative (162) (158) (321) (309) Amortization of cable distribution investments — 4 — 8 Segment EBITDA $ 687 $ 657 $ 1,487 $ 1,405 Cable Network Programming reported quarterly segment revenues of $2.28 billion, an increase of $110 million or 5% from the amount reported in the prior year quarter. Distribution revenues increased $54 million or 5% as contractual price increases were partially offset by the impact of net subscriber declines. Advertising revenues increased $31 million or 7%, primarily due to higher news and sports pricing, partially offset by lower ratings. Content and other revenues increased $25 million or 4%, primarily due to higher sports sublicensing revenues. Cable Network Programming reported quarterly segment EBITDA of $687 million, an increase of $30 million or 5% from the amount reported in the prior year quarter, primarily due to the revenue increase noted above, partially offset by higher expenses. The increase in expenses was driven by higher sports programming rights amortization and production costs, partially offset by lower newsgathering costs. Page 3 EARNINGS RELEASE FOR THE QUARTER ENDED DECEMBER 31, 2025 TELEVISION Three Months Ended December 31, Six Months Ended December 31, 2025 2024 2025 2024 $ Millions Revenues Advertising $ 1,964 $ 1,962 $ 3,031 $ 2,970 Distribution 831 824 1,652 1,630 Content and other 142 175 304 314 Total revenues 2,937 2,961 4,987 4,914 Operating expenses (2,521) (2,499) (3,906) (3,832) Selling, general and administrative (273) (257) (539) (505) Segment EBITDA $ 143 $ 205 $ 542 $ 577 Television reported quarterly segment revenues of $2.94 billion as compared to the $2.96 billion reported in the prior year quarter. Advertising revenues were essentially unchanged from the prior year quarter as continued digital growth led by the Tubi AVOD service, the impact of additional MLB postseason games, and higher sports pricing were offset by lower political advertising revenues and lower ratings. Distribution revenues increased $7 million or 1%, driven by higher average rates at the Company's owned and operated television stations and increases in fees from third-party FOX affiliates. Content and other revenues were $142 million as compared to the $175 million reported in the prior year quarter, primarily due to lower entertainment content and other revenues which were impacted by the timing of deliveries. Television reported quarterly segment EBITDA of $143 million as compared to the $205 million reported in the prior year quarter, primarily due to higher expenses. The increase in expenses was led by higher sports programming rights amortization and production costs and higher digital content costs, partially offset by lower entertainment programming rights amortization and production costs. Page 4 EARNINGS RELEASE FOR THE QUARTER ENDED DECEMBER 31, 2025 DIVIDEND The Company has declared a dividend of $0.28 per Class A and Class B share. This dividend is payable on March 25, 2026 with a record date for determining dividend entitlements of March 4, 2026. SHARE REPURCHASE PROGRAM As of December 31, 2025, the Company has cumulatively repurchased approximately $6.6 billion of its Class A common stock and approximately $1.8 billion of its Class B common stock, with a remaining authorization of $3.6 billion. During the quarter, the Company repurchased approximately $750 million of its Class A common stock and $800 million of its Class B Common stock. CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as may, will, should, likely, anticipates, expects, intends, plans, projects, believes, estimates, outlook and similar expressions are used to identify these forward-looking statements. These statements are based on management s current expectations and beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements in this press release due to changes in economic, business, competitive, technological, strategic and or regulatory factors and other factors affecting the operation of the Company s businesses. More detailed information about these factors is contained in the documents the Company has filed with or furnished to the Securities and Exchange Commission, including the Company s Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Statements in this press release speak only as of the date they were made, and the Company undertakes no duty to update or release any revisions to any forward-looking statement made in this press release or to report any events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events or to conform such statements to actual results or changes in the Company s expectations, except as required by law. To access a copy of this press release through the Internet, access Fox Corporation s corporate website located at http www.foxcorporation.com. CONTACTS Gabrielle Brown, Investor Relations Brian Nick, Press Inquiries 212-852-7720 310-369-3545 Charlie Costanzo, Investor Relations Lauren Townsend, Press Inquiries 212-852-7908 310-369-2729 Page 5 EARNINGS RELEASE FOR THE QUARTER ENDED DECEMBER 31, 2025 CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended December 31, Six Months Ended December 31, 2025 2024 2025 2024 $ Millions, except per share amounts Revenues $ 5,182 $ 5,078 $ 8,920 $ 8,642 Operating expenses (3,895) (3,776) (5,979) (5,794) Selling, general and administrative (595) (525) (1,184) (1,027) Depreciation and amortization (100) (97) (198) (188) Restructuring, impairment and other corporate matters (14) (170) (6) (196) Equity earnings of affiliates 3 4 2 7 Interest expense, net (98) (80) (148) (130) Non-operating other, net (161) 81 (286) 314 Income before income tax expense 322 515 1,121 1,628 Income tax expense (75) (127) (265) (408) Net income 247 388 856 1,220 Less Net income attributable to noncontrolling interests (18) (15) (28) (20) Net income attributable to Fox Corporation stockholders $ 229 $ 373 $ 828 $ 1,200 Weighted average shares 441 462 448 463 Net income attributable to Fox Corporation stockholders per share $ 0.52 $ 0.81 $ 1.85 $ 2.59 Page 6 EARNINGS RELEASE FOR THE QUARTER ENDED DECEMBER 31, 2025 CONSOLIDATED BALANCE SHEETS December 31, 2025 June 30, 2025 $ Millions Assets Current assets Cash and cash equivalents $ 2,017 $ 5,351 Receivables, net 3,557 2,472 Inventories, net 828 432 Other 324 174 Total current assets 6,726 8,429 Non-current assets Property, plant and equipment, net 1,739 1,705 Intangible assets, net 2,951 2,969 Goodwill 3,638 3,639 Deferred tax assets 2,621 2,721 Other non-current assets 3,796 3,732 Total assets $ 21,471 $ 23,195 Liabilities and Equity Current liabilities Accounts payable, accrued expenses and other current liabilities $ 2,416 $ 2,897 Total current liabilities 2,416 2,897 Non-current liabilities Borrowings 6,604 6,602 Other liabilities 1,329 1,341 Redeemable noncontrolling interests 84 288 Commitments and contingencies Equity Class A common stock, $0.01 par value 2 2 Class B common stock, $0.01 par value 2 2 Additional paid-in capital 7,264 7,603 Retained earnings 3,783 4,479 Accumulated other comprehensive loss (123) (124) Total Fox Corporation stockholders equity 10,928 11,962 Noncontrolling interests 110 105 Total equity 11,038 12,067 Total liabilities and equity $ 21,471 $ 23,195 Page 7 EARNINGS RELEASE FOR THE QUARTER ENDED DECEMBER 31, 2025 CONSOLIDATED STATEMENTS OF CASH FLOWS Six Months Ended December 31, 2025 2024 $ Millions OPERATING ACTIVITIES Net income $ 856 $ 1,220 Adjustments to reconcile net income to net cash used in operating activities Depreciation and amortization 198 188 Restructuring, impairment and other corporate matters 6 196 Equity-based compensation 60 68 Equity earnings of affiliates (2) (7) Cash distributions received from affiliates — 13 Non-operating other, net 286 (314) Deferred income taxes 100 145 Change in operating assets and liabilities, net of acquisitions and dispositions Receivables and other assets (1,173) (1,190) Inventories net of programming payable (937) (431) Accounts payable and accrued expenses (92) (75) Other changes, net (101) (17) Net cash used in operating activities (799) (204) INVESTING ACTIVITIES Property, plant and equipment (226) (138) Purchase of investments (143) (79) Other investing activities, net (24) (23) Net cash used in investing activities (393) (240) FINANCING ACTIVITIES Repurchase of shares (1,800) (500) Dividends paid and distributions (147) (134) Purchase of noncontrolling interest (208) — Other financing activities, net 13 81 Net cash used in financing activities (2,142) (553) Net decrease in cash and cash equivalents (3,334) (997) Cash and cash equivalents, beginning of year 5,351 4,319 Cash and cash equivalents, end of period $ 2,017 $ 3,322 Page 8 EARNINGS RELEASE FOR THE QUARTER ENDED DECEMBER 31, 2025 NOTE 1 ADJUSTED NET INCOME AND ADJUSTED EPS The Company uses net income attributable to Fox Corporation stockholders and earnings per share ( EPS ) attributable to Fox Corporation stockholders excluding net income effects of Restructuring, impairment and other corporate matters, adjustments to Equity earnings (losses) of affiliates, Non-operating other, net, Tax provision and Noncontrolling interest adjustments ( Adjusted Net Income and Adjusted EPS respectively) to evaluate the performance of the Company s operations exclusive of certain items that impact the comparability of results from period to period. Adjusted Net Income and Adjusted EPS may not be comparable to similarly titled measures reported by other companies. Adjusted Net Income and Adjusted EPS are not measures of performance under GAAP and should be considered in addition to, and not as substitutes for, net income attributable to Fox Corporation stockholders and EPS as reported in accordance with GAAP. However, management uses these measures in comparing the Company s historical performance and believes that they provide meaningful and comparable information to management, investors and equity analysts to assist in their analysis of the Company s performance relative to prior periods and the Company s competitors. The following table reconciles net income attributable to Fox Corporation stockholders and EPS attributable to Fox Corporation stockholders to Adjusted Net Income and Adjusted EPS for the three months ended December 31, 2025 and 2024 Three Months Ended December 31, 2025 December 31, 2024 Income EPS Income EPS $ Millions, except per share data Net income attributable to Fox Corporation stockholders $ 229 $ 0.52 $ 373 $ 0.81 Restructuring, impairment and other corporate matters 14 0.03 170 0.37 Non-operating other, net 161 0.37 (81) (0.18) Tax provision (44) (0.10) (20) (0.04) As adjusted $ 360 $ 0.82 $ 442 $ 0.96 Page 9 EARNINGS RELEASE FOR THE QUARTER ENDED DECEMBER 31, 2025 NOTE 2 ADJUSTED EBITDA Adjusted EBITDA is defined as Revenues less Operating expenses and Selling, general and administrative expenses. Adjusted EBITDA does not include Depreciation and amortization, Restructuring, impairment and other corporate matters, Equity earnings (losses) of affiliates, Interest expense, net, Non-operating other, net and Income tax expense. Effective July 1, 2025, the Company no longer removes the impact of amortization of cable distribution investments when calculating Adjusted EBITDA. Prior periods were not restated as the impact of the change is immaterial to the calculation. Management believes that information about Adjusted EBITDA assists all users of the Company s Unaudited Consolidated Financial Statements by allowing them to evaluate changes in the operating results of the Company s portfolio of businesses separate from non-operational factors that affect Net income, thus providing insight into both operations and the other factors that affect reported results. Adjusted EBITDA provides management, investors and equity analysts a measure to analyze the operating performance of the Company s business and its enterprise value against historical data and competitors data, although historical results, including Adjusted EBITDA, may not be indicative of future results (as operating performance is highly contingent on many factors, including customer tastes and preferences). Adjusted EBITDA is considered a non-GAAP financial measure and should be considered in addition to, not as a substitute for, net income, cash flow and other measures of financial performance reported in accordance with GAAP. In addition, this measure does not reflect cash available to fund requirements and excludes items, such as depreciation and amortization and impairment charges, which are significant components in assessing the Company s financial performance. Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. The following table reconciles net income to Adjusted EBITDA for the three and six months ended December 31, 2025 and 2024 Three Months Ended December 31, Six Months Ended December 31, 2025 2024 2025 2024 $ Millions Net income $ 247 $ 388 $ 856 $ 1,220 Add Amortization of cable distribution investments — 4 — 8 Depreciation and amortization 100 97 198 188 Restructuring, impairment and other corporate matters 14 170 6 196 Equity earnings of affiliates (3) (4) (2) (7) Interest expense, net 98 80 148 130 Non-operating other, net 161 (81) 286 (314) Income tax expense 75 127 265 408 Adjusted EBITDA $ 692 $ 781 $ 1,757 $ 1,829 Page 10