10-QPeriod: Q2 FY2026

Fox Corp Quarterly Report for Q2 Ended Dec 31, 2025

Filed February 4, 2026For Securities:FOXAFOX

Summary

Fox Corporation (FOXA) reported its fiscal second-quarter 2026 results, with total revenues increasing by 2% to $5.18 billion. This growth was primarily driven by a 4% rise in distribution revenues, benefiting from higher subscriber rates, and a 1% increase in advertising revenues, supported by strong linear pricing and digital growth on Tubi, despite a significant drop in political advertising. However, net income attributable to stockholders saw a substantial decline of 39% to $229 million, largely due to a change in the fair value of equity investments and the absence of favorable items from the prior year. The company's Cable Network Programming segment demonstrated solid performance, with revenues up 5% and Segment EBITDA increasing 5%, driven by higher distribution and advertising revenues, and increased sports sublicensing. In contrast, the Television segment experienced a slight revenue dip of 1% for the quarter, and a significant 30% decrease in Segment EBITDA, primarily due to increased sports programming costs (MLB, NFL) and lower entertainment content revenue, despite growth in Tubi and higher advertising rates. The "Corporate and Other" segment reported higher revenues but a significantly lower EBITDA due to substantial costs associated with the launch of its new direct-to-consumer streaming service, FOX One.

Financial Highlights

46 data points
Beta

Revenue

$5.18B

Net Income

$229.00M

4.4% Net Margin

EPS (Diluted)

$0.52

Total Assets

$21.47B

Cash & Equivalents

$2.02B

Free Cash Flow

-$791.00M

Financial Statements
Beta
Revenue$5.18B
SG&A Expenses$595.00M
Net Income$229.00M
EPS (Basic)$0.53
EPS (Diluted)$0.52
Shares Outstanding (Basic)433.00M
Shares Outstanding (Diluted)441.00M

Key Highlights

  • 1Total revenues grew 2% to $5.18 billion for the quarter, driven by distribution and advertising.
  • 2Distribution revenue increased 4% due to higher subscriber rates, partially offset by subscriber volume decline.
  • 3Advertising revenue grew 1%, boosted by linear pricing and Tubi, but political ad revenue significantly decreased.
  • 4Net income attributable to stockholders declined 39% to $229 million, impacted by equity investment fair value changes.
  • 5Cable Network Programming segment showed strength with a 5% revenue increase and a 5% rise in Segment EBITDA.
  • 6Television segment EBITDA dropped 30% due to increased sports programming costs and lower entertainment content revenue, despite marginal revenue growth.
  • 7Significant increase in 'Corporate and Other' expenses related to the launch of the new streaming service, FOX One, negatively impacting EBITDA in that segment.

Frequently Asked Questions

The primary drivers for the revenue increase were higher distribution revenues, which benefited from increased average rates per subscriber, and higher advertising revenues, supported by improved linear pricing and continued digital growth, particularly from the Tubi AVOD service.

Net income attributable to Fox Corporation stockholders decreased by 39% primarily due to a negative change in the fair value of the company's investments in equity securities. Additionally, the prior year period benefited from favorable items that were not present in the current quarter.

The Cable Network Programming segment performed well, with revenue up 5% and Segment EBITDA up 5%. The Television segment saw a slight revenue decrease of 1% and a significant 30% drop in Segment EBITDA due to higher sports programming costs. The 'Corporate and Other' segment's EBITDA was negatively impacted by substantial costs related to the launch of the new FOX One streaming service.

The company maintained a strong liquidity position with approximately $2.0 billion in cash and cash equivalents and an unused $1.0 billion unsecured revolving credit facility as of December 31, 2025. The company was in compliance with all covenants related to its credit facility.