FOXA — Fox Corporation

FOXA Q2 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Total Revenues: $5.18 billion, up 2% year-over-year.
• Distribution Revenues: Grew by 4%, with improved subscriber declines.
• Advertising Revenues: Increased by 1%, despite tough comparisons to last year's political cycle.
• Adjusted EBITDA: $692 million, down from $781 million in the prior year due to higher expenses.
• Net Income: $229 million ($0.52 per share), compared to $373 million ($0.81 per share) in the prior year.
• Adjusted Net Income: $360 million, with adjusted EPS at $0.82.
• Free Cash Flow: Deficit of $71 million, consistent with seasonal working capital cycles.
• Share Buybacks: $1.8 billion repurchased year-to-date, totaling $8.4 billion since 2019.

2. Strategic Updates and Business Highlights

• Advertising Strength: Notable growth in advertising revenue across news and sports, with record-breaking ad revenue during the MLB postseason and NFL regular season.
• Fox One Performance: Exceeded expectations with strong consumer uptake; targeted marketing has not cannibalized traditional subscribers.
• Fox News Media: Maintained leadership as the most-watched cable network, with significant growth in digital engagement (170% increase in social media views).
• Tubi Growth: Achieved record quarterly revenue growth of 19% and EBITDA profitability for the second consecutive quarter, driven by a strong content slate and viewer engagement.
• Engagement Metrics: Total minutes viewed across all platforms increased by 15% year-over-year.

3. Forward Guidance and Outlook

• Political Advertising: Anticipated robust political advertising cycle expected to benefit Fox News, particularly at local stations.
• NFL and World Cup: Confidence in profitability from upcoming major sports events, including the World Cup and NFL postseason.
• Subscriber Growth: Targeting low to mid-single-digit millions of subscribers for Fox One over the next few years, with proactive marketing strategies to mitigate seasonal declines.

4. Bad News, Challenges, or Points of Concern

• Adjusted EBITDA Decline: Decrease attributed to higher expenses, particularly in digital initiatives and sports programming costs.
• Entertainment Revenue: Content and other revenues down 19% year-over-year, primarily due to lower entertainment production revenues.
• Free Cash Flow Deficit: Seasonal working capital cycle leading to a cash flow deficit, although expected to reverse in the second half of the fiscal year.
• Subscriber Declines: While improving, the overall subscriber base is still declining, with a reported 6.3% decrease.

5. Notable Q&A Insights

• Cable Advertising: Strong demand for news advertising with a significant increase in CPMs; positive outlook for political advertising.
• NFL Costs: Anticipated increases in costs with new contracts, but management confident in offsetting strategies.
• Fox One's Financials: Costs associated with Fox One recorded in the corporate segment, with affiliate fees impacting cable and TV segments.
• Skinny Bundles: Management believes they will benefit from the rollout of skinny bundles as they retain flexibility in channel offerings.
• Tubi's Advertising Growth: Strong demand from younger, diverse audiences driving Tubi's advertising revenue growth.

This summary captures the key financial metrics, strategic initiatives, forward guidance, and notable insights from the Q&A, providing a balanced view of Fox Corporation's performance and outlook for Q2 2026.