Summary of Liberty Media Corporation's Q2 2026 Earnings Call

1Key Financial Results and Metrics

Formula One (F1):

Year-to-date revenue declined by 15% and adjusted OIBDA decreased by 30%, primarily due to a 44% decline in race count for the quarter.

8 races held year-to-date compared to 11 in the prior year.

Media rights revenue was impacted by a one-time revenue from the F1 movie last year.

Team payments as a percentage of adjusted OIBDA were 61.7% year-to-date.

MotoGP:

Revenue increased year-to-date, driven by growth in race promotion and sponsorship, despite some declines in media rights and title sponsorship.

Adjusted OIBDA grew year-to-date, supported by revenue growth and a decrease in expenses.

Corporate:

Liberty Media held approximately $1.5 billion in cash and liquid investments, with $5 billion in total debt.

Net leverage was at 3.4x, slightly up from the previous quarter.

2Strategic Updates and Business Highlights

F1:

Strong momentum in sponsorship, licensing, and Paddock Club experiences.

Continued growth in U.S. viewership, particularly among younger and female audiences due to the partnership with Apple TV.

Successful launch of new premium experiences and retail concepts, including expansions in hospitality offerings.

10-year extension of the Las Vegas Grand Prix through 2037, enhancing long-term profitability potential.

MotoGP:

Completion of agreements with manufacturers and teams through 2031, establishing a stable framework for future growth.

Successful fan engagement initiatives, including immersive watch parties and new media agreements in key markets.

Continued focus on enhancing commercial capabilities and expanding the sport's global footprint.

3Forward Guidance and Outlook

F1 expects to return to a full 24-race calendar next season, with confidence in the durability of growth and direct fan relationships.

MotoGP is positioned for long-term growth as it builds on its organizational and commercial foundation.

Both sports are focused on maintaining a disciplined capital allocation strategy and exploring complementary growth opportunities.

4Bad News, Challenges, or Points of Concern

F1 faced significant revenue declines due to a reduced race count and calendar variability, which impacted financial results for the quarter.

The decline in media rights revenue and hospitality income due to fewer events held year-to-date.

Increased SG&A expenses driven by higher personnel and IT costs, which could pressure margins if not managed effectively.

Potential risks associated with geopolitical factors affecting race scheduling and attendance.

5Notable Q&A Insights

Media Rights: Discussions around evolving media rights indicate a positive trajectory, with ongoing negotiations and renewals expected to enhance revenue streams.

Las Vegas Grand Prix: Ticket sales are trending positively, and profitability is expected to improve due to the long-term extension with local partners.

Commercial Opportunities: There is a strong focus on expanding commercial licensing and sponsorships, with a shift towards a broader audience engagement strategy.

Sprint Races: Plans to increase the number of Sprint races in the future, which could provide additional revenue streams and enhance viewer engagement. Overall, Liberty Media's Q2 2026 performance reflects both challenges and opportunities, with a strong emphasis on strategic growth initiatives and fan engagement across both F1 and MotoGP.