Summary of Liberty Media Corporation's Q2 2026 Earnings Call (FWONK)

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 Q2 (5 races vs. 9 in the prior year).

Year-to-date, only 36% of season-based revenue recognized compared to 46% in the prior 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 revenue.

Adjusted OIBDA grew year-to-date due to revenue growth and reduced expenses.

Corporate:

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

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

2Strategic Updates and Business Highlights

Formula One:

Strong viewership growth in the U.S. on Apple TV, with a 13% increase in total hours watched.

Successful Paddock Club and licensing initiatives, with high demand for premium hospitality experiences.

New 10-year extension for the Las Vegas Grand Prix through 2037, indicating strong local support and future investment potential.

MotoGP:

Completed agreements with all manufacturers and teams through 2031, establishing a stable framework for growth.

Positive engagement initiatives, including a successful immersive watch party in London.

Continued growth in social media followers and TV audiences.

3Forward Guidance and Outlook

F1 expects to return to a full 24-race calendar next season, with confidence in long-term growth and fan engagement.

MotoGP is positioned for growth with a stable organizational framework and increased investment in commercial opportunities.

Both segments are focused on enhancing direct relationships with fans and expanding their digital presence.

4Bad News, Challenges, or Points of Concern

F1:

Significant revenue decline due to fewer races and calendar variability, impacting financial performance.

Media rights revenue was affected by the absence of last year's F1 movie-related revenue.

MotoGP:

While revenue grew, there are challenges related to media rights and title sponsorship revenue.

The cost base is under scrutiny as the sport aims to apply F1's successful strategies, which may require significant investment.

5Notable Q&A Insights

Media Rights: Discussions around media rights are evolving, with a focus on long-term stability and partnerships. The Apple deal is seen as a positive indicator for future negotiations.

Las Vegas Grand Prix: Ticket sales are trending positively, and the profitability outlook is optimistic due to evolving vendor contracts and the recent extension with LVCVA.

Sponsorship Dynamics: The focus is on expanding sponsorship opportunities beyond traditional renewals, with a push for more endemic and non-endemic partnerships.

Sprint Races: There is a commitment to expanding the number of Sprint races, which are expected to generate additional revenue streams. Overall, Liberty Media's Q2 2026 results reflect a mixed performance, with strong strategic initiatives underway, particularly in F1 and MotoGP, but also highlight challenges related to revenue recognition and market dynamics.