FWONA — Formula One Group

Summary of Liberty Media Corporation's Q1 2026 Earnings Call for FWONA

1. Key Financial Results and Metrics

• Formula One (F1):

  • Revenue increased by 53% year-over-year.
  • Adjusted OIBDA grew by 102%.
  • Three races held in Q1 2026 compared to two in Q1 2025.
  • Team payments as a percentage of adjusted OIBDA were 51.7%.

• MotoGP:

  • Revenue growth attributed to race mix and increased sponsorship, with three races held in both Q1 2026 and Q1 2025.
  • Adjusted OIBDA also increased, driven by revenue growth outpacing expense growth.

• Corporate and Other:

  • Revenue was $6 million, with an adjusted OIBDA loss of $7 million.

• Cash and Debt:

  • Cash and liquid investments totaled $1.3 billion.
  • Total debt was approximately $5 billion, with net leverage at three times.

2. Strategic Updates and Business Highlights

• Formula One:

  • Strong fan engagement and viewership growth, particularly in the U.S. with Apple's media rights partnership.
  • Successful marketing activations around the Miami race, enhancing cultural presence.
  • Plans to potentially reschedule races impacted by geopolitical issues.

• MotoGP:

  • Expansion of the calendar with the return to Brazil and new initiatives like the Harley-Davidson Bagger World Cup.
  • Increased social media engagement, with a 16% rise in U.S. followers since January 2025.

• Capital Allocation:

  • Focus on de-leveraging while exploring strategic investments and potential capital returns to shareholders.

3. Forward Guidance and Outlook

• Anticipate continued strong performance in both F1 and MotoGP, with confidence in long-term growth strategies.
• Expect a modest increase in trailing twelve-month leverage in Q2 due to the absence of two races in the Middle East.
• The second quarter will be significantly impacted by a reduced race count (only five races expected).

4. Bad News, Challenges, or Points of Concern

• Geopolitical Risks: The cancellation of the Bahrain and Saudi Arabian Grands Prix due to safety concerns has created a near-term financial impact.
• Race Calendar Adjustments: The potential for further disruptions in the race calendar could affect revenue recognition and team payments.
• Increased Expenses: Rising costs in SG&A, driven by currency fluctuations and higher personnel costs, could pressure margins.

5. Notable Q&A Insights

• Sponsorship Dynamics: Management highlighted a balanced approach between new and existing sponsors, with opportunities in high-tech sectors.
• Capital Deployment: The company is evaluating avenues for capital deployment, focusing on performance and macroeconomic factors.
• Media Partnerships: The renewal with Sky was strategic to ensure long-term investment and confidence from media partners.
• Fuel Price Impact: Rising fuel prices will have different impacts on F1 and MotoGP, with F1 able to pass costs to teams while MotoGP may face margin pressure.
• Expansion Opportunities: Discussions are ongoing regarding adding MotoGP races in the U.S., with Miami being a potential candidate due to existing infrastructure.

This summary encapsulates the key points from Liberty Media's Q1 2026 earnings call, highlighting financial performance, strategic initiatives, and challenges faced by the company.