FOXA — Fox Corporation

Summary of FOXA Q2 2026 Earnings Call

1. Key Financial Results and Metrics

• Total Revenues: $5.18 billion, a 2% increase 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.
• Net Income: $229 million ($0.52 per share), compared to $373 million ($0.81 per share) in the prior year. Adjusted net income was $360 million, with adjusted EPS at $0.82.
• Free Cash Flow: Reported a deficit of $71 million, consistent with seasonal working capital cycles.
• Share Buyback: $1.8 billion repurchased year-to-date, totaling $8.4 billion since the program's inception.

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 strong NFL viewership.
• Fox One Performance: Launched five months ago, Fox One exceeded expectations, attracting significant engagement, particularly from sports and news viewers.
• Tubi Growth: Achieved its most streamed quarter ever, with a 27% increase in viewer time and a 19% revenue growth, marking two consecutive quarters of EBITDA profitability.
• Fox News Media: Maintained leadership as the most-watched cable network, with a 170% increase in social media views year-over-year.

3. Forward Guidance and Outlook

• Anticipation of continued robust advertising revenue, particularly with the upcoming FIFA Men's World Cup and midterm elections expected to drive political advertising.
• Confidence in the strategic direction focusing on live sports, news, and digital platforms like Tubi and Fox One to sustain growth and shareholder value.

4. Bad News, Challenges, or Points of Concern

• Adjusted EBITDA Decline: Despite revenue growth, higher expenses related to digital initiatives and sports programming impacted profitability.
• Subscriber Declines: While improving, the overall trend of subscriber losses remains a concern, particularly in the cable segment.
• Political Advertising Dependency: Future revenue growth may be heavily reliant on political advertising cycles, which can be unpredictable.

5. Notable Q&A Insights

• Advertising Market: Strong demand for news advertising, with significant pricing increases expected to continue into the political cycle. Fox News added 200 new advertisers this half.
• NFL Costs: Anticipated increases in costs with new NFL contracts, but management is confident in offsetting these through strategic portfolio management.
• Skinny Bundles: Management views skinny bundles positively, expecting them to benefit Fox by maintaining subscriber engagement across their channels.
• Tubi's Position: Tubi's younger, diverse audience positions it well for future advertising revenue growth, with a strong performance in ad revenue during the quarter.

This summary encapsulates the key points from the earnings call, highlighting both the positive developments and the challenges faced by Fox Corporation in Q2 2026.