FOX — Fox Corporation

FOX Corporation Q4 Fiscal Year 2025 Earnings Call Summary

1. Key Financial Results and Metrics

• Revenue: $16 billion, up 17% year-over-year.
• Adjusted EBITDA: $3.6 billion, a 26% increase.
• Adjusted EPS: $4.78 per share, up 39%.
• Free Cash Flow: $3 billion, doubling from the previous year.
• Net Income: $2.3 billion or $4.91 per share, compared to $1.5 billion or $3.13 per share in FY24.
• Advertising Revenue: Increased by 26% to $7 billion, with a 7% growth in Q4.
• Political Advertising Revenue: Exceeded $400 million, driven by the Super Bowl and election cycle.

2. Strategic Updates and Business Highlights

• Super Bowl LIX: Achieved record viewership and advertising revenue of over $800 million.
• FOX News: Maintained leadership in cable news with a 25% increase in total day audience and over 60% market share.
• Tubi: Surpassed 100 million monthly active users, generating $1.1 billion in revenue and achieving 32% revenue growth in Q4.
• FOX One: Launching a direct-to-consumer streaming platform on August 21, priced at $19.99 per month, targeting both cordless and traditional pay TV subscribers.
• Affiliate Revenue: Grew by 5% due to successful renewals, with 1/4 of distribution revenues up for renewal in FY26.

3. Forward Guidance and Outlook

• Fiscal 2026 Expectations: Anticipated challenges due to tough comparisons with political advertising and Super Bowl revenues. However, the overall advertising market remains robust.
• Digital Investments: Expected to increase, particularly in Tubi and the launch of FOX One, with a projected EBITDA investment of around $350 million.
• Upcoming Events: Anticipation for the FIFA Men's World Cup, expected to drive strong results in Q4 FY26 and Q1 FY27.

4. Bad News, Challenges, or Points of Concern

• EBITDA Decline Expectations: Consensus anticipates a potential 10% decline in EBITDA for FY26 due to lapsing political revenue and the Super Bowl.
• Subscriber Declines: Continued net subscriber losses in the cable segment, although offset by affiliate fee revenue growth.
• Competitive Pressures: The CTV market remains competitive, impacting pricing and advertising dynamics.

5. Notable Q&A Insights

• Advertising Trends: Strong demand for advertising in news and sports, with FOX News and Tubi outperforming competitors. However, the local advertising market remains mixed.
• M&A Activity: FOX is open to opportunities but has not identified any that meet their internal benchmarks for capital use.
• LatAm Strategy: FOX is investing in Latin America, particularly through the acquisition of Caliente TV, with expectations for moderate spending and growth potential.
• FOX One Bundling: Plans to bundle FOX One with other services while maintaining a targeted approach for the cordless audience.

This summary encapsulates the key points from FOX's Q4 FY25 earnings call, highlighting both the successes and challenges faced by the company as it moves into the next fiscal year.