10-QPeriod: Q2 FY2026

Liberty Media Corp Quarterly Report for Q2 Ended Jun 30, 2026

Filed August 6, 2026For Securities:FWONKFWONAFWONB

Summary

Liberty Media Corporation (FWONK) reported its second-quarter 2026 results, showcasing a mixed financial performance influenced by its core motorsport businesses. While consolidated revenue saw a decrease year-over-year, this was largely attributable to a reduction in the number of Formula 1 events compared to the prior year and the timing of revenue recognition, partially offset by the inclusion of MotoGP's revenue following its acquisition in July 2025. The company's operational performance, as measured by Adjusted OIBDA, also declined, reflecting lower contributions from Formula 1, though MotoGP provided a positive counterpoint. Net earnings from continuing operations experienced a significant drop compared to the prior year, impacted by lower revenues and certain non-recurring or timing-related items. The company continues to manage its debt obligations, with significant borrowings related to Formula 1 and MotoGP. Liquidity appears adequate, with substantial cash and cash equivalents on hand, supported by operating cash flows. Investors should monitor the impact of the reduced Formula 1 event calendar on future revenues and the integration and performance of the MotoGP business.

Key Highlights

  • 1Consolidated revenue for the three months ended June 30, 2026, decreased by $407 million year-over-year, primarily due to fewer Formula 1 events and revenue recognition timing.
  • 2Consolidated operating income (loss) for the three months ended June 30, 2026, decreased by $192 million compared to the prior year, reflecting lower Formula 1 operating results, partially offset by MotoGP.
  • 3Adjusted OIBDA for the three months ended June 30, 2026, decreased by $163 million year-over-year, driven by Formula 1's performance.
  • 4Net earnings from continuing operations for the three months ended June 30, 2026, were $8 million, a substantial decrease from $386 million in the prior year period.
  • 5The company reported $1,465 million in cash and cash equivalents as of June 30, 2026, providing a strong liquidity position.
  • 6Long-term debt stood at $4,852 million as of June 30, 2026, primarily related to Formula 1 and MotoGP financing.
  • 7Formula 1's primary revenue decreased due to fewer events and a revenue recognition timing shift, while MotoGP's revenue remained stable year-over-year on a pro forma basis.

Frequently Asked Questions

The primary driver for the decrease in consolidated revenue for the three and six months ended June 30, 2026, was a reduction in Formula 1 revenue. This was due to a decrease in the number of Formula 1 events compared to the prior year and the timing of revenue recognition for season-based fees. The acquisition of MotoGP in July 2025 helped to partially offset this decline.

The acquisition of MotoGP in July 2025 has contributed positively to Liberty Media's financial results, particularly in offsetting the revenue and operating income declines from Formula 1. MotoGP generated $170 million in revenue and $37 million in operating income for the three months ended June 30, 2026, and its results are being consolidated into Liberty Media's financial statements.

Liberty Media maintained a strong liquidity position with $1,465 million in cash and cash equivalents as of June 30, 2026. The company's liquidity is sourced from available cash, operating cash flows from its subsidiaries (Formula 1 and MotoGP, subject to certain debt covenants), proceeds from asset sales, and potential debt or equity financings. Cash held by Formula 1 and MotoGP is accessible by Liberty, with restrictions that depend on meeting specific leverage ratio tests under their respective debt agreements.

Formula 1's revenue is directly tied to the number of events. For the three months ended June 30, 2026, revenue was impacted by a reduction in events compared to the prior year. The calendar for 2026 was expected to have 22 events, down from 24 in 2025, affecting revenue recognition for season-based fees. While event cancellations in the Middle East impacted the initial schedule, subsequent announcements of new events are expected to influence future revenue. Investors should closely monitor updates to the Formula 1 event calendar and how this impacts revenue recognition.