Core Points - The Murdoch succession drama has concluded with a $3.3 billion settlement, granting Lachlan Murdoch control over the family's media assets, including Fox News, the New York Post, and the Wall Street Journal [1][2] - The settlement resolves ongoing legal disputes that had cast uncertainty over the future direction of Fox Corp. and News Corp. [2] - Rupert Murdoch's desire to maintain the conservative orientation of his media empire influenced the decision to solidify Lachlan's leadership [4][5] Group 1: Succession and Control - The succession battle became public when three of Rupert Murdoch's children attempted to block changes to his trust that would favor Lachlan [3] - Rupert Murdoch aimed to ensure that Lachlan, who aligns ideologically with him, would lead the company to preserve its conservative values [4][5] - As part of the settlement, Prudence, Elisabeth, and James agreed to relinquish their shares in the family trust and any future roles [6] Group 2: Family Dynamics - The legal disputes highlighted divisions within the Murdoch family, particularly between James, Elisabeth, Prudence, and their father [7] - Rupert Murdoch's concerns about the more liberal views of his son James motivated him to limit the influence of his other children [6] - The resolution of the disputes involved dropping ongoing litigation, indicating a move towards family unity [8]

Core Viewpoint - Newsmax has filed a lawsuit against Fox News, alleging that Fox has engaged in anticompetitive behavior to maintain its monopoly in the right-leaning pay TV news market, thereby harming competitors like Newsmax [2][4][5]. Group 1: Allegations Against Fox News - Newsmax claims that Fox News has used various strategies to coerce distributors into not carrying or marginalizing other right-leaning news channels [4]. - The lawsuit alleges that Fox makes access to its content conditional on distributors agreeing not to carry competing channels, either explicitly or tacitly [4][5]. - Financial penalties are imposed by Fox on distributors who carry competing channels, requiring them to pay high fees for less popular Fox channels [5]. Group 2: Legal Actions and Demands - Newsmax seeks a permanent injunction to prevent Fox from enforcing its allegedly exclusionary agreements [6]. - The company is also pursuing damages amounting to three times the losses it claims to have suffered due to Fox's actions, along with pre- and post-judgment interest at the highest legal rate [6].

Core Insights - FOX One is a new streaming service priced at $19.99/month or $199.99/year, targeting over 65 million U.S. households outside traditional cable bundles [1][2] - The platform aims to provide a personalized viewing experience with live programming, news, sports, and entertainment, leveraging advanced technology and AI integrations [3][6][7] Pricing and Bundling Options - FOX One offers a 7-day free trial and the option to bundle with B1G+ or FOX Nation for added value [1][11] - Starting October 2, customers can bundle FOX One with ESPN DTC Unlimited for $39.99/month, providing access to a wide range of ESPN content [12] Technological Advancements - The platform builds on FOX's successful live-streaming technology, exemplified by the Super Bowl LIX broadcast, which reached 15.5 million peak concurrent viewers [5] - FOX One incorporates AI for personalized content delivery, enhanced search capabilities, and user-friendly features [6][16] Content Offerings - FOX One features a robust lineup of live sports, news, and entertainment, including 24/7 access to FOX News and major sporting events [8][9] - The service includes a variety of programming from FOX's extensive portfolio, catering to diverse audience interests [15] Accessibility and User Experience - FOX One is available on multiple platforms, including mobile, web, and connected TVs, ensuring ease of access for users [10] - The platform allows users to record live content without storage limits and offers features to catch up on missed highlights [8][10] Marketing Strategy - The launch campaign emphasizes FOX's strength in live programming and targets cord-cutters through digital-first strategies [14]

Core Insights - The article highlights the significant wealth accumulation of new immigrants in the United States, with the top ten billionaires born overseas amassing a total wealth of approximately $867 billion, comparable to Switzerland's GDP [1][2]. Group 1: Individual Billionaires - Elon Musk has a net worth of $393.1 billion and is the founder of Tesla and SpaceX, originally from South Africa [3][6]. - Sergey Brin, co-founder of Google, has a net worth of $139.7 billion and was born in Russia [9][11]. - Jensen Huang, co-founder of Nvidia, has a net worth of $137.9 billion and hails from Taiwan [12][16]. - Thomas Peterffy, founder of Interactive Brokers, has a net worth of $67.9 billion and was born in Hungary [13][15]. - Miriam Adelson and family, owners of the Las Vegas Sands casino empire, have a net worth of $33.4 billion and were born in Israel [16][19]. - Rupert Murdoch and family, owners of a global media empire, have a net worth of $24 billion and were born in Australia [20][22]. - Peter Thiel, co-founder of PayPal, has a net worth of $21.8 billion and was born in Germany [23][25]. - Jay Chaudhry, founder of cloud security company Zscaler, has a net worth of $17.9 billion and was born in India [27][29]. - Jan Koum, co-founder of WhatsApp, has a net worth of $16.9 billion and was born in Ukraine [30][32]. - Kingston Technology co-founder Dov Ziv has a net worth of $14.1 billion and was born in China [33][35].

Core Viewpoint - ESPN and Fox are launching a joint streaming service bundle for $39.99 per month, starting October 2, which combines their direct-to-consumer offerings to provide a wide range of sports, news, and entertainment content [1][3][20] Group 1: Streaming Service Details - The bundle will include access to ESPN's upcoming subscription platform and Fox's new streaming service, FOX One, both available individually from August 21 [3][20] - Subscribers will have access to a comprehensive portfolio of content, including major sports leagues such as NFL, NBA, MLB, NHL, and college sports, as well as events like the FIFA World Cup [6][10] - ESPN's platform will feature approximately 47,000 live events annually, along with replays and original programming [8][9] Group 2: Strategic Collaboration - The collaboration aims to enhance the availability of ESPN's sports programming and provide a seamless viewing experience for fans [4][21] - The partnership is seen as a response to the previous failed venture, Venu Sports, which was intended to offer a single sports-focused streaming subscription but faced regulatory challenges [15][20] - The new bundle is positioned as a more flexible option for viewers who have cut the cord or never subscribed to traditional cable [13][21]

Core Points - ESPN and FOX One have announced a bundled streaming service for $39.99 per month starting October 2, 2025 [1][4] - The collaboration aims to enhance consumer access to premium sports content, including major leagues and events [2][3] - The ESPN DTC offering will provide access to all ESPN networks and 47,000 live events annually, along with on-demand content [2][5] ESPN DTC Offering - ESPN's direct-to-consumer service will launch on August 21, 2025, offering a full suite of networks and services [4][5] - The service includes an enhanced ESPN App with features like game stats, betting information, and personalized content [5] FOX One Service - FOX One will aggregate all FOX's news, sports, and entertainment content into a single streaming platform [3][6] - The service targets cord-cutters and will provide live and on-demand access to various FOX brands [6][8] Consumer Experience - The bundle aims to streamline the user experience for sports fans, providing access to a wide range of sports content [2][3] - FOX One will utilize technology from Tubi Media Group to enhance personalization and user engagement [6]

[PART I](index=3&type=section&id=PART%20I) [ITEM 1. BUSINESS](index=3&type=section&id=ITEM%201.%20BUSINESS) FOX Corporation is a news, sports, and entertainment company operating through Cable Network Programming, Television, Credible, and FOX Studio Lot segments. It leverages strong brands, leadership positions in key programming, and a significant market presence, supported by a robust financial profile. The company's strategy focuses on maintaining leadership in live content, expanding digital offerings, and increasing revenue through high-quality programming, while navigating a complex regulatory and competitive landscape [Background](index=3&type=section&id=Background) FOX Corporation operates as a standalone publicly traded entity, managing its news, sports, and entertainment businesses across four distinct segments with a fiscal year ending June 30 - FOX Corporation is a news, sports, and entertainment company, managing its businesses in four operating segments: Cable Network Programming, Television, Credible, and the FOX Studio Lot[11](index=11&type=chunk) - The Company became a standalone publicly traded entity on March 19, 2019, following a spin-off from Twenty-First Century Fox, Inc[13](index=13&type=chunk) - The Company's fiscal year ends on June 30 of each year[14](index=14&type=chunk) [Business Overview](index=4&type=section&id=Business%20Overview) FOX delivers news, sports, and entertainment content through iconic brands, focusing on live and appointment-based programming with broad distribution across platforms - FOX produces and delivers news, sports, and entertainment content through iconic brands including FOX News Media, FOX Sports, Tubi Media Group, FOX Entertainment, and FOX Television Stations[18](index=18&type=chunk) - The Company differentiates itself by focusing on live and 'appointment-based' content, maintaining a significant presence in major markets, and ensuring broad distribution across traditional and digital platforms[18](index=18&type=chunk) [Our Competitive Strengths](index=4&type=section&id=Our%20Competitive%20Strengths) FOX leverages top-rated news channels, growing AVOD services, and a strong financial position to maintain competitive advantages - FOX News has been the top-rated national cable news channel for over **20 consecutive years** in Monday to Friday primetime viewing[21](index=21&type=chunk) - Tubi, the Company's AVOD service, achieved **13% growth in total view time** in fiscal 2025 compared to the prior fiscal year, holding approximately **2.2% share of all television viewing**[22](index=22&type=chunk) - The Company ended fiscal 2025 with approximately **$5.4 billion of cash and cash equivalents**, returned approximately **$1.25 billion of capital** to stockholders, and retired **$600 million of debt**[25](index=25&type=chunk) [Goals and Strategies](index=5&type=section&id=Goals%20and%20Strategies) FOX aims to expand its digital footprint and content offerings, including new streaming services, to maintain leadership in live news, sports, and entertainment - FOX aims to maintain leading positions in live news, live sports, and quality entertainment by investing in digital brand extensions like FOX Nation (SVOD) and FOX Weather (FAST service)[26](index=26&type=chunk) - In fiscal 2025, Tubi expanded its content library with over **70 new original titles** and launched **40 new sports, entertainment, and local news channels**, totaling over **320 channels**[27](index=27&type=chunk) - The Company expects to launch FOX One, a wholly-owned direct-to-consumer subscription streaming service, by the Fall of 2025, expanding the reach of its programming[29](index=29&type=chunk)[65](index=65&type=chunk) [Reportable Segments](index=6&type=section&id=Reportable%20Segments) FOX operates through Cable Network Programming, Television, and Corporate and Other segments, each contributing to its diverse media portfolio [Cable Network Programming](index=6&type=section&id=Cable%20Network%20Programming) The Cable Network Programming segment produces and licenses news, business news, and sports content for distribution through traditional and virtual MVPDs and other digital platforms. Key brands include FOX News Media (FOX News, FOX Business) and cable sports networks (FS1, FS2, Big Ten Network, FOX Deportes). FOX News has maintained its position as the top-rated national cable news channel for over two decades - The Cable Network Programming segment produces and licenses news, business news, and sports content for distribution primarily in the U.S. through traditional and virtual MVPDs and other digital platforms[30](index=30&type=chunk) - FOX News has been the top-rated national cable news channel in Monday to Friday primetime viewing for over **20 consecutive years** and the **1 cable network in total day viewing** for the tenth consecutive year[31](index=31&type=chunk) Cable Network Subscribers (in millions) as of June 30 | Network | 2025 | 2024 | | :------------------ | :--- | :--- | | FOX News | 61 | 67 | | FOX Business | 60 | 65 | | FS1 | 61 | 67 | | FS2 | 44 | 48 | | The Big Ten Network | 42 | 45 | | FOX Deportes | 10 | 12 | [Television](index=9&type=section&id=Television) The Television segment produces, acquires, markets, and distributes programming through the FOX broadcast network, the Tubi AVOD service, 29 broadcast television stations, and other digital platforms. The FOX Network consistently ranks high in key demographics (18-49, 18-34) and features strong sports and entertainment programming. Tubi continues its significant growth, and FOX Television Stations maintain a broad local market presence - The FOX Network ranked **1 in the 18 to 49 and 18 to 34 year old audiences** during the 2024-2025 broadcast season, with a median viewer age of **56 years**[44](index=44&type=chunk) - Tubi, the Company's AVOD service, offers a content library of nearly **300,000 movies and television episodes** and streamed approximately **11 billion hours of content** in fiscal 2025[48](index=48&type=chunk) - FOX Television Stations owns and operates **29 full power broadcast television stations** in **18 local markets**, including **14 of the top 15 largest DMAs**, producing over **1,350 hours of local news coverage weekly**[49](index=49&type=chunk) [Other](index=13&type=section&id=Other) This section details the FOX Studio Lot, Credible (a consumer finance marketplace), the upcoming FOX One streaming service, and strategic investments. The FOX Studio Lot provides production services and office space. FOX holds a 66% equity in Credible, with a minority shareholder's put right exercised in December 2024. FOX One, a new direct-to-consumer streaming service, is set to launch by Fall 2025. The Company also holds an equity stake in Flutter and a call option to acquire 18.6% of FanDuel Group - FOX owns the FOX Studio Lot in Los Angeles, a **50-acre facility** with over **1.85 million square feet** for administration and production, including **15 sound stages**[63](index=63&type=chunk) - The Company holds **66% equity in Credible Labs Inc.**, a U.S. consumer finance marketplace; the minority interest shareholder's put right was exercised in December 2024, with completion expected in the first half of fiscal 2026[64](index=64&type=chunk) - FOX One, a wholly-owned direct-to-consumer streaming service offering access to the full portfolio of FOX brands, is expected to launch by the Fall of 2025[65](index=65&type=chunk) - FOX holds approximately **2.4% of Flutter Entertainment plc** and a **10-year call option** expiring in December 2030 to acquire an **18.6% equity interest in FanDuel Group** for approximately **$4.5 billion** (as of June 30, 2025)[66](index=66&type=chunk)[67](index=67&type=chunk)[370](index=370&type=chunk) [Government Regulation](index=14&type=section&id=Government%20Regulation) FOX operates under extensive federal and state regulations, including broadcast licensing, ownership rules, retransmission consent, and evolving privacy and data security laws, as well as consumer finance regulations for Credible - The U.S. television broadcast industry is highly regulated by federal laws and FCC regulations, including broadcast licenses (maximum **8-year term**), national television ownership rules (**39% cap** with UHF discount), and dual network rules[69](index=69&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk) - FOX Television Stations historically elect retransmission consent, allowing them to negotiate terms for signal transmission by MVPDs and receive compensation[74](index=74&type=chunk) - The Company is subject to complex and rapidly evolving privacy and data security laws, including COPPA, VPPA, TCPA, GLBA, CCPA/CPRA, and GDPR, which govern the collection, use, retention, and transfer of consumer information[81](index=81&type=chunk)[82](index=82&type=chunk)[83](index=83&type=chunk) - Credible operates in heavily regulated consumer finance and insurance industries, subject to federal and state laws such as the Truth-in-Lending Act, Fair Credit Reporting Act, and SAFE Act[89](index=89&type=chunk) [Intellectual Property](index=17&type=section&id=Intellectual%20Property) FOX relies on copyrights, trademarks, patents, and trade secrets for value, actively protecting its intellectual property against piracy and theft, which are intensified by new technologies like AI - The Company's intellectual property assets include copyrights in programming, trademarks, patents, trade secrets, and licenses, from which it derives value through production, distribution, and licensing[85](index=85&type=chunk) - FOX devotes significant resources to protecting its intellectual property but faces challenges from content piracy and signal theft, exacerbated by new technologies like AI[86](index=86&type=chunk)[87](index=87&type=chunk) [Human Capital Resources](index=17&type=section&id=Human%20Capital%20Resources) FOX employs approximately 10,400 full-time staff, focusing on competitive compensation, employee wellness, development, and fostering an inclusive workplace through initiatives like FOX Forward - As of June 30, 2025, FOX had approximately **10,400 full-time employees**[89](index=89&type=chunk) - Key human capital initiatives include competitive compensation and benefits, employee wellness and workplace flexibility (e.g., parental leave, subsidized childcare), learning and development, and fostering workplace civility and inclusion[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk) - Through its FOX Forward program, the Company strategically invests in causes aligned with its values, focusing on veterans, educational access for underserved students, and disaster assistance[94](index=94&type=chunk)[95](index=95&type=chunk) [ITEM 1A. RISK FACTORS](index=20&type=section&id=ITEM%201A.%20RISK%20FACTORS) FOX faces significant risks from evolving consumer behavior and technology, declining advertising revenues, dependence on a limited number of distributors, weak economic conditions, intense industry competition, and unpredictable content acceptance. Cybersecurity, piracy, privacy, and data protection pose increasing threats, alongside legal and regulatory changes, potential tax liabilities, and litigation outcomes. The company's ownership structure and separation from 21CF also present unique risks [Risks Related to Macroeconomic Conditions, Our Business and Our Industry](index=20&type=section&id=Risks%20Related%20to%20Macroeconomic%20Conditions,%20Our%20Business%20and%20Our%20Industry) FOX's business is vulnerable to shifts in consumer media consumption, declining MVPD subscriptions, fluctuating advertising markets, challenges in renewing programming rights, and potential impairment charges on intangible assets - Changes in consumer behavior towards direct-to-consumer offerings (SVOD, AVOD, FAST) and advertising-skipping technologies challenge existing business models and may adversely affect revenues[97](index=97&type=chunk) - Declines in MVPD subscribers negatively impact affiliate fee and advertising revenues, and these trends are expected to continue or accelerate[98](index=98&type=chunk)[110](index=110&type=chunk) - The Company's advertising revenues are substantially affected by consumer behavior, advertising market conditions, audience fragmentation, and cyclical sports events and elections[100](index=100&type=chunk)[101](index=101&type=chunk)[104](index=104&type=chunk) - The inability to renew programming rights, particularly for popular sports, on sufficiently favorable terms or at all, could significantly decline advertising and affiliate fee revenues[120](index=120&type=chunk) - The Company recognized a non-cash impairment charge of approximately **$70 million** for intangible assets (primarily FCC licenses) at the Television segment in fiscal 2025[128](index=128&type=chunk) [Risks Relating to Cybersecurity, Piracy, Privacy and Data Protection](index=26&type=section&id=Risks%20Relating%20to%20Cybersecurity,%20Piracy,%20Privacy%20and%20Data%20Protection) FOX faces increasing threats from cybersecurity attacks, content piracy exacerbated by AI, and complex, evolving privacy and data protection regulations, leading to potential service disruptions, data breaches, and compliance costs - The degradation, failure, or misuse of the Company's network and information systems due to cybersecurity attacks (e.g., hacking, ransomware, AI-intensified risks) could disrupt services or lead to improper disclosure of personal data[129](index=129&type=chunk) - Technological developments, including advances in AI, increase the threat of content piracy and signal theft, making it easier to create and distribute unauthorized copies of copyrighted content[131](index=131&type=chunk) - The Company is subject to complex and evolving laws and regulations related to privacy and personal data protection (e.g., GDPR, CCPA/CPRA), which can lead to increased compliance costs and potential liabilities[134](index=134&type=chunk)[135](index=135&type=chunk) [Risks Relating to Legal and Regulatory Matters](index=28&type=section&id=Risks%20Relating%20to%20Legal%20and%20Regulatory%20Matters) FOX is exposed to risks from changes in broadcasting and AI regulations, potential tax liabilities from audits, and adverse outcomes in litigation or governmental investigations, which could result in significant financial and operational impacts - Changes in laws and regulations, particularly in broadcasting (FCC rules, C-Band spectrum reallocation) and new technologies like AI, may adversely affect the Company's business and increase compliance costs[136](index=136&type=chunk)[137](index=137&type=chunk)[140](index=140&type=chunk) - The Company could be subject to significant tax liabilities due to changes in tax laws, audits, or litigation, potentially resulting in materially different tax recognition[141](index=141&type=chunk)[142](index=142&type=chunk) - Unfavorable litigation or governmental investigation results, such as defamation claims (e.g., Smartmatic lawsuit), could require significant payments (e.g., **$800 million for Dominion settlement**) or lead to onerous operating procedures[143](index=143&type=chunk)[144](index=144&type=chunk)[145](index=145&type=chunk) [Risks Relating to Our Ownership Structure](index=30&type=section&id=Risks%20Relating%20to%20Our%20Ownership%20Structure) FOX's ownership structure presents risks including potential conflicts of interest from shared directors and stockholders with News Corp, anti-takeover provisions, and concentrated voting power by the Murdoch Family Trust - Certain directors and significant stockholders may have conflicts of interest due to their equity ownership in or service to News Corp[147](index=147&type=chunk) - The Company's Amended and Restated Certificate of Incorporation and By-laws contain anti-takeover provisions, such as a dual-class common equity structure and restrictions on stockholder actions, which could discourage acquisition proposals[149](index=149&type=chunk)[150](index=150&type=chunk) - The Murdoch Family Trust's beneficial ownership of **43.39% of FOX Class B Common Stock** concentrates voting power, increasing the likelihood that proposals supported by the Trust will be adopted[151](index=151&type=chunk)[152](index=152&type=chunk) [Risks Related to the Company's Separation from 21CF](index=31&type=section&id=Risks%20Related%20to%20the%20Company%27s%20Separation%20from%2021CF) FOX faces risks from its separation from 21CF, including potential cash diversion for indemnification obligations and liability for 21CF's pre-transaction income taxes - The Company's indemnification arrangements with 21CF may require it to divert cash to satisfy obligations, and 21CF's indemnity may not fully cover liabilities allocated to it[155](index=155&type=chunk) - FOX could be liable for income taxes owed by 21CF for periods prior to the Transaction due to joint and several liability within the former 21CF consolidated group[156](index=156&type=chunk) [ITEM 1B. UNRESOLVED STAFF COMMENTS](index=32&type=section&id=ITEM%201B.%20UNRESOLVED%20STAFF%20COMMENTS) There are no unresolved staff comments to report for this period - No unresolved staff comments[157](index=157&type=chunk) [ITEM 1C. CYBERSECURITY](index=32&type=section&id=ITEM%201C.%20CYBERSECURITY) FOX maintains a cybersecurity program aligned with the NIST Framework, led by a Chief Information Security Officer (CISO) with over 15 years of experience. The program includes regular penetration testing, third-party security assessments, vulnerability management, mandatory training, and a documented incident response plan. The Audit Committee of the Board actively oversees cybersecurity risk management, receiving quarterly reports and updates on incidents - The Company maintains a cybersecurity program aligned with the National Institute of Standards and Technology Cybersecurity Framework (NIST Framework)[158](index=158&type=chunk) - The program includes regular internal and external penetration testing, third-party provider security assessments, processes to manage security risks, mandatory company-wide cybersecurity training, and a documented incident response plan[159](index=159&type=chunk) - The Company's Chief Information Security Officer (CISO), with over **15 years of experience**, leads the dedicated information security department and provides frequent updates to senior management and quarterly reports to the Audit Committee of the Board[161](index=161&type=chunk)[162](index=162&type=chunk)[164](index=164&type=chunk) [ITEM 2. PROPERTIES](index=33&type=section&id=ITEM%202.%20PROPERTIES) FOX owns the FOX Studio Lot in Los Angeles, a 50-acre facility with over 1.85 million square feet for administration and production, including 15 sound stages. This property generates revenue from leasing office space and providing studio services, predominantly to Disney until March 2026. Additionally, FOX owns and leases various other real properties, primarily in the U.S., which are considered adequate for their operational needs - FOX owns the FOX Studio Lot in Los Angeles, California, spanning over **50 acres** with over **1.85 million square feet** of space for administration and production/post-production services, including **15 sound stages**[165](index=165&type=chunk) - The FOX Studio Lot generates revenue from leasing office space to Disney and other third parties, and from operating studio facilities for third-party productions, predominantly Disney productions until March 2026[165](index=165&type=chunk) - The Company also owns and leases various other real properties, primarily in the U.S., which are considered in good condition and adequate for their respective business purposes[166](index=166&type=chunk) [ITEM 3. LEGAL PROCEEDINGS](index=34&type=section&id=ITEM%203.%20LEGAL%20PROCEEDINGS) Information regarding the Company's legal proceedings is incorporated by reference from Note 14—Commitments and Contingencies to the Consolidated Financial Statements - Legal proceedings are discussed in Note 14—Commitments and Contingencies to the accompanying Consolidated Financial Statements[168](index=168&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=34&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This item is not applicable to the Company - Not applicable[169](index=169&type=chunk) [PART II](index=35&type=section&id=PART%20II) [ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES](index=35&type=section&id=ITEM%205.%20MARKET%20FOR%20REGISTRANT%27S%20COMMON%20EQUITY,%20RELATED%20STOCKHOLDER%20MATTERS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) FOX Corporation's Class A and Class B Common Stock are listed on The Nasdaq Global Select Market. As of June 30, 2025, there were approximately 12,900 Class A and 2,700 Class B record holders. The Company expects to continue paying semi-annual dividends and repurchased approximately 21 million Class A shares for $1 billion in fiscal 2025 under a $12 billion stock repurchase program - FOX Corporation's Class A and Class B Common Stock are listed and traded on The Nasdaq Global Select Market[171](index=171&type=chunk) - As of June 30, 2025, there were approximately **12,900 holders of record for Class A Common Stock** and **2,700 for Class B Common Stock**[171](index=171&type=chunk) - The Company repurchased approximately **21 million shares of Class A Common Stock** for approximately **$1 billion** during fiscal 2025[173](index=173&type=chunk) - The Board authorized incremental stock repurchases of an additional **$5 billion**, increasing the total stock repurchase authorization to **$12 billion**[173](index=173&type=chunk)[515](index=515&type=chunk) [ITEM 6. [RESERVED]](index=35&type=section&id=ITEM%206.%20%5BRESERVED%5D) This item is reserved and contains no content - This item is reserved[174](index=174&type=chunk) [ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=36&type=section&id=ITEM%207.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides an in-depth analysis of FOX Corporation's financial condition and results of operations for fiscal 2025 compared to fiscal 2024, covering consolidated results, segment performance, liquidity, capital resources, critical accounting policies, and forward-looking statements. The Company saw significant revenue and net income growth, driven by strong advertising and affiliate fee performance, particularly from sports programming and digital expansion [INTRODUCTION](index=36&type=section&id=INTRODUCTION) This section offers a comprehensive understanding of FOX's financial condition and operational results, structured into key areas including business overview, financial performance, liquidity, accounting policies, and forward-looking statements - This section provides an understanding of the Company's financial condition, changes in financial condition, and results of operations[175](index=175&type=chunk) - The discussion is organized into sections covering Business Overview, Results of Operations, Liquidity and Capital Resources, Critical Accounting Policies and Estimates, and Caution Concerning Forward-Looking Statements[176](index=176&type=chunk) [OVERVIEW OF THE COMPANY'S BUSINESS](index=36&type=section&id=OVERVIEW%20OF%20THE%20COMPANY%27S%20BUSINESS) FOX manages its operations through two reportable segments, Cable Network Programming and Television, with Credible and FOX Studio Lot grouped under Corporate and Other, and generates revenue primarily from affiliate fees and advertising - The Company manages its businesses in two reportable segments: Cable Network Programming and Television[177](index=177&type=chunk)[181](index=181&type=chunk) - Credible and the FOX Studio Lot operating segments are presented as part of Corporate and Other, which is not a reportable segment[178](index=178&type=chunk) Fiscal 2025 Revenue Mix | Revenue Type | Percentage of Total Revenues | | :------------- | :--------------------------- | | Affiliate fees | 47% | | Advertising | 42% | | Other | 11% | [RESULTS OF OPERATIONS](index=38&type=section&id=RESULTS%20OF%20OPERATIONS) FOX's fiscal 2025 results show significant revenue and net income growth, driven by strong advertising and affiliate fee performance, particularly from sports programming and digital expansion, despite increased operating expenses [Results of Operations—Fiscal 2025 versus Fiscal 2024 (Consolidated)](index=38&type=section&id=Results%20of%20Operations%E2%80%94Fiscal%202025%20versus%20Fiscal%202024%20%28Consolidated%29) In fiscal 2025, FOX Corporation's total revenues increased by 17% to $16.3 billion, driven by higher affiliate fees (5%), advertising (26%), and other revenues (47%). Net income attributable to Fox Corporation stockholders surged by 51% to $2.263 billion. This growth was partially offset by a 16% increase in operating expenses, primarily due to higher sports programming costs and newsgathering expenses Consolidated Operating Results (in millions, except %) | Metric | 2025 | 2024 | $ Change | % Change | | :-------------------------------------- | :-------- | :-------- | :-------- | :------- | | Revenues | $16,300 | $13,980 | $2,320 | 17 % | | Operating expenses | $(10,518) | $(9,089) | $(1,429) | (16)% | | Selling, general and administrative | $(2,168) | $(2,024) | $(144) | (7)% | | Income before income tax expense | $3,061 | $2,104 | $957 | 45 % | | Net income attributable to Fox Corporation stockholders | $2,263 | $1,501 | $762 | 51 % | - Affiliate fee revenue increased by **$332 million (5%)** due to higher average rates per subscriber, partially offset by a lower average number of subscribers[183](index=183&type=chunk) - Advertising revenue increased by **$1.4 billion (26%)**, primarily driven by the broadcast of Super Bowl LIX, higher NFL pricing, political advertising revenue from the 2024 elections, and continued digital growth led by Tubi[183](index=183&type=chunk) - Operating expenses increased by **$1.4 billion (16%)** due to higher sports programming rights amortization and production costs (NFL, Super Bowl LIX, college football) and increased newsgathering costs related to the 2024 presidential election[184](index=184&type=chunk) [Segment Analysis (Revenues and Segment EBITDA)](index=39&type=section&id=Segment%20Analysis%20%28Revenues%20and%20Segment%20EBITDA%29) Segment EBITDA, the primary financial measure for evaluating operating performance, showed strong growth in fiscal 2025. Cable Network Programming Segment EBITDA increased 13% to $3.03 billion, driven by higher affiliate fees and advertising. Television Segment EBITDA surged 87% to $945 million, primarily due to significant advertising revenue from sports and political events. Corporate and Other reported an increased loss of $351 million - Segment EBITDA is defined as Revenues less Operating expenses and Selling, general and administrative expenses, and is the primary measure used by the CEO to monitor performance and allocate resources[190](index=190&type=chunk) Segment Revenues (in millions, except %) | Segment | 2025 | 2024 | $ Change | % Change | | :------------------------ | :------ | :------ | :------- | :------- | | Cable Network Programming | $6,930 | $5,955 | $975 | 16 % | | Television | $9,325 | $7,875 | $1,450 | 18 % | | Corporate and Other | $244 | $209 | $35 | 17 % | Segment EBITDA (in millions, except %) | Segment | 2025 | 2024 | $ Change | % Change | | :------------------------ | :------ | :------ | :------- | :------- | | Cable Network Programming | $3,030 | $2,693 | $337 | 13 % | | Television | $945 | $506 | $439 | 87 % | | Corporate and Other | $(351) | $(316) | $(35) | (11)% | [Cable Network Programming](index=40&type=section&id=Cable%20Network%20Programming_sub) Revenues for the Cable Network Programming segment increased 16% to $6.93 billion in fiscal 2025. Affiliate fee revenue rose 3% due to higher rates, while advertising revenue increased 21% from higher news pricing, audiences, and digital advertising. Other revenues saw a significant increase primarily from sports sublicensing. Segment EBITDA grew 13% to $3.03 billion, despite higher operating expenses driven by sports programming rights and newsgathering costs Cable Network Programming Revenues (in millions, except %) | Revenue Type | 2025 | 2024 | $ Change | % Change | | :------------ | :----- | :----- | :------- | :------- | | Affiliate fee | $4,316 | $4,188 | $128 | 3 % | | Advertising | $1,531 | $1,262 | $269 | 21 % | | Other | $1,083 | $505 | $578 | ** | | Total revenues| $6,930 | $5,955 | $975 | 16 % | - Cable Network Programming Segment EBITDA increased **$337 million (13%)** for fiscal 2025, driven by revenue increases[194](index=194&type=chunk) - Operating expenses increased **$607 million (23%)** primarily due to higher sports programming rights amortization and production costs (college football) and increased newsgathering costs related to the 2024 presidential election[194](index=194&type=chunk) [Television](index=41&type=section&id=Television_sub) The Television segment's revenues increased 18% to $9.325 billion in fiscal 2025. Advertising revenue saw a substantial 28% increase, primarily from the broadcast of Super Bowl LIX, higher NFL pricing, political advertising, and growth in Tubi's AVOD service. Affiliate fee revenue grew 7% due to higher average rates. Television Segment EBITDA increased significantly by 87% to $945 million, despite higher operating expenses from sports programming and digital content costs Television Revenues (in millions, except %) | Revenue Type | 2025 | 2024 | $ Change | % Change | | :------------ | :----- | :----- | :------- | :------- | | Advertising | $5,334 | $4,182 | $1,152 | 28 % | | Affiliate fee | $3,340 | $3,136 | $204 | 7 % | | Other | $651 | $557 | $94 | 17 % | | Total revenues| $9,325 | $7,875 | $1,450 | 18 % | - Television Segment EBITDA increased **$439 million (87%)** for fiscal 2025, primarily due to the noted revenue increases[197](index=197&type=chunk) - Operating expenses increased **$936 million (15%)** primarily due to higher sports programming rights amortization and production costs (NFL, Super Bowl LIX) and increased digital content costs[197](index=197&type=chunk) [Corporate and Other](index=42&type=section&id=Corporate%20and%20Other_sub) Revenues within Corporate and Other, which includes Credible and the FOX Studio Lot, increased 17% to $244 million in fiscal 2025. However, Segment EBITDA for this category showed an increased loss of $351 million, an 11% greater loss compared to fiscal 2024, mainly due to higher employee costs and advertising/promotional expenses Corporate and Other Financials (in millions, except %) | Metric | 2025 | 2024 | $ Change | % Change | | :-------------------------------- | :----- | :----- | :------- | :------- | | Revenues | $244 | $209 | $35 | 17 % | | Operating expenses | $(82) | $(56) | $(26) | (46)% | | Selling, general and administrative | $(513) | $(469) | $(44) | (9)% | | Segment EBITDA | $(351) | $(316) | $(35) | (11)% | - Revenues include those generated by Credible and the operation of the FOX Studio Lot[198](index=198&type=chunk) - Selling, general and administrative expenses primarily relate to employee costs, professional fees, and the costs of operating the FOX Studio Lot[198](index=198&type=chunk) [Non-GAAP Financial Measures (Adjusted EBITDA)](index=42&type=section&id=Non-GAAP%20Financial%20Measures%20%28Adjusted%20EBITDA%29) Adjusted EBITDA, a non-GAAP financial measure, is defined as Revenues less Operating expenses and Selling, general and administrative expenses. It increased by 26% to $3.624 billion in fiscal 2025, providing management and investors with a clearer view of the Company's operating performance by excluding non-operational factors - Adjusted EBITDA is defined as Revenues less Operating expenses and Selling, general and administrative expenses, excluding items like amortization of cable distribution investments, depreciation, and impairment charges[199](index=199&type=chunk) - Management believes Adjusted EBITDA assists in evaluating operating performance separate from non-operational factors, providing insight into operations and other factors affecting reported results[200](index=200&type=chunk) Adjusted EBITDA (in millions) | Metric | 2025 | 2024 | | :-------------- | :----- | :----- | | Adjusted EBITDA | $3,624 | $2,883 | [LIQUIDITY AND CAPITAL RESOURCES](index=43&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) FOX maintains a strong liquidity position with approximately $5.4 billion in cash and cash equivalents and an unused $1.0 billion revolving credit facility as of June 30, 2025. The Company's cash flows from operating activities increased significantly in fiscal 2025, primarily due to higher Segment EBITDA. Key uses of cash include programming rights, operational expenditures, capital investments, acquisitions, debt repayments, and shareholder returns through dividends and stock repurchases [Current Financial Condition](index=43&type=section&id=Current%20Financial%20Condition) FOX maintains a robust financial position with significant cash reserves and an unused credit facility, utilizing cash for programming rights, operations, capital investments, acquisitions, debt, and shareholder returns - The Company had approximately **$5.4 billion of cash and cash equivalents** as of June 30, 2025[204](index=204&type=chunk) - FOX has an unused five-year **$1.0 billion unsecured revolving credit facility**[204](index=204&type=chunk) - Principal uses of cash include acquiring programming rights, operational expenditures, capital expenditures, acquisitions, income taxes, interest, dividend payments, debt repayments, legal settlements, and stock repurchases[205](index=205&type=chunk) [Sources and Uses of Cash—Fiscal 2025 vs. Fiscal 2024](index=44&type=section&id=Sources%20and%20Uses%20of%20Cash%E2%80%94Fiscal%202025%20vs.%20Fiscal%202024) FOX's net cash from operating activities significantly increased in fiscal 2025 due to higher Segment EBITDA, while cash used in investing and financing activities also rose Net Cash Provided by Operating Activities (in millions) | For the years ended June 30, | 2025 | 2024 | | :---------------------------------- | :----- | :----- | | Net cash provided by operating activities | $3,324 | $1,840 | - The increase in net cash provided by operating activities was primarily due to higher Segment EBITDA, driven by political advertising receipts and Super Bowl LIX, partially offset by higher content payments[207](index=207&type=chunk) Net Cash Used in Investing Activities (in millions) | For the years ended June 30, | 2025 | 2024 | | :---------------------------------- | :----- | :----- | | Net cash used in investing activities | $(537) | $(452) | Net Cash Used in Financing Activities (in millions) | For the years ended June 30, | 2025 | 2024 | | :---------------------------------- | :------- | :------- | | Net cash used in financing activities | $(1,755) | $(1,341) | [Stock Repurchase Program](index=44&type=section&id=Stock%20Repurchase%20Program_sub) Details regarding the Company's stock repurchase program are provided in Note 11—Stockholders' Equity - Refer to Note 11—Stockholders' Equity for details on the stock repurchase program[210](index=210&type=chunk) [Dividends](index=44&type=section&id=Dividends_sub) FOX paid $0.54 per share in dividends in fiscal 2025 and declared a semi-annual dividend of $0.28 per share for fiscal 2026, totaling approximately $250 million - Dividends paid in fiscal 2025 totaled **$0.54 per share** of Class A and Class B Common Stock[210](index=210&type=chunk) - Subsequent to June 30, 2025, the Company declared a semi-annual dividend of **$0.28 per share**, with total aggregate cash dividends expected to be approximately **$250 million** in fiscal 2026[210](index=210&type=chunk)[211](index=211&type=chunk)[514](index=514&type=chunk) [Debt Instruments](index=45&type=section&id=Debt%20Instruments) FOX repaid $600 million of senior notes in April 2025 and maintains stable credit ratings of Baa2 (Moody's) and BBB (S&P) for its senior debt - In April 2025, **$600 million of 3.050% senior notes** due 2025 were repaid in full[212](index=212&type=chunk) Company Credit Ratings as of June 30, 2025 | Rating Agency | Senior Debt | Outlook | | :---------------- | :---------- | :------ | | Moody's | Baa2 | Stable | | Standard & Poor's | BBB | Stable | [Revolving Credit Agreement](index=45&type=section&id=Revolving%20Credit%20Agreement) FOX maintains a $1.0 billion unsecured revolving credit facility maturing in June 2028, with no outstanding borrowings as of June 30, 2025 - The Company has a **$1.0 billion unsecured revolving credit facility** with a maturity date of June 2028[214](index=214&type=chunk) - As of June 30, 2025, there were no borrowings outstanding under the Revolving Credit Agreement[214](index=214&type=chunk)[389](index=389&type=chunk) [Commitments and Contingencies](index=45&type=section&id=Commitments%20and%20Contingencies) FOX has firm contractual arrangements for future payments and refers to Note 14—Commitments and Contingencies for additional details - The Company has firm contractual arrangements for future payments, securing rights to various assets and services[215](index=215&type=chunk) - For additional details on commitments and contingencies, refer to Note 14—Commitments and Contingencies[215](index=215&type=chunk) [Pension and other postretirement benefits and uncertain tax benefits](index=45&type=section&id=Pension%20and%20other%20postretirement%20benefits%20and%20uncertain%20tax%20benefits) FOX contributed $40 million to pension plans in fiscal 2025, with future required contributions expected to be immaterial, and net OPEB payments also not material for fiscal 2026 - The Company made contributions of **$40 million** to its pension plans in fiscal 2025[216](index=216&type=chunk) - Future required pension plan contributions are not expected to be material for the immediate future, but voluntary contributions may be made[216](index=216&type=chunk) - Net OPEB payments are not expected to be material in fiscal 2026[217](index=217&type=chunk) [CRITICAL ACCOUNTING POLICIES AND ESTIMATES](index=46&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES%20AND%20ESTIMATES) This section outlines FOX's critical accounting policies and estimates that require significant management judgment. These include revenue recognition for advertising and affiliate fees, the amortization and impairment of licensed and owned programming, the annual impairment review of goodwill and FCC licenses, accounting for leases, long-lived asset impairments, income tax provisions, employee benefit costs (pension and OPEB actuarial assumptions), and legal claims accruals [Use of Estimates](index=46&type=section&id=Use%20of%20Estimates) The preparation of financial statements necessitates management's use of estimates and assumptions, which may lead to actual results differing from those projected - The preparation of financial statements requires management to make estimates and assumptions that affect reported amounts, and actual results may differ from these estimates[308](index=308&type=chunk) [Revenue Recognition](index=46&type=section&id=Revenue%20Recognition_sub) FOX recognizes advertising revenue upon commercial airing or impression satisfaction, and affiliate fee revenue as network programming is continuously available, based on contractual rates or fixed fees - Advertising revenue is recognized as commercials are aired, or as guaranteed audience views (impressions) are satisfied[220](index=220&type=chunk)[338](index=338&type=chunk)[340](index=340&type=chunk) - Affiliate fee revenue is recognized as network programming is continuously made available, based on contractual rates multiplied by estimated subscribers or fixed fees[221](index=221&type=chunk)[341](index=341&type=chunk) [Inventories (Licensed and Owned Programming)](index=46&type=section&id=Inventories%20%28Licensed%20and%20Owned%20Programming%29) Licensed programming costs are amortized over the shorter of the license period or economic benefit, while owned programming uses an individual-film-forecast method, with impairment charges of $40 million recognized in both fiscal 2025 and 2024 - Licensed programming costs are amortized over the shorter of the license period or the period of expected economic benefit, with multi-year sports contracts amortized based on attributable revenue ratios[223](index=223&type=chunk)[313](index=313&type=chunk) - Owned programming costs are amortized using the individual-film-forecast-computation method, based on the ratio of current period revenue to estimated total future remaining revenue[224](index=224&type=chunk)[314](index=314&type=chunk) - The Company recognized impairment charges of approximately **$40 million** in fiscal 2025 and **$40 million** in fiscal 2024 related to owned programming at the Television segment[225](index=225&type=chunk)[367](index=367&type=chunk) [Goodwill and Other Intangible Assets](index=47&type=section&id=Goodwill%20and%20Other%20Intangible%20Assets) Goodwill and indefinite-lived intangible assets, primarily FCC licenses, are annually tested for impairment using discounted cash flow and market-based valuations, resulting in a $70 million impairment charge for FCC licenses in fiscal 2025, with no goodwill impairment identified - Goodwill and indefinite-lived intangible assets (primarily FCC licenses) are tested annually for impairment using discounted cash flow analysis and market-based valuation approaches[228](index=228&type=chunk)[327](index=327&type=chunk)[328](index=328&type=chunk) - In fiscal 2025, the Company recorded a non-cash impairment charge of approximately **$70 million** for intangible assets, primarily FCC licenses, due to updated market data and lower expected future advertising revenue[230](index=230&type=chunk)[329](index=329&type=chunk) - No goodwill impairment was determined in fiscal 2025, and no reporting units are currently at risk of impairment[231](index=231&type=chunk)[330](index=330&type=chunk) [Leases](index=48&type=section&id=Leases_sub) For operating leases exceeding one year, FOX recognizes operating lease liabilities and right-of-use assets at commencement, typically using the Company's incremental borrowing rate as the discount rate - For operating leases with terms greater than one year, the Company recognizes operating lease liabilities and right-of-use (ROU) assets at the lease commencement date[334](index=334&type=chunk) - The discount rate used is generally the Company's incremental borrowing rate, as the rate implicit in the lease is often not readily determinable[334](index=334&type=chunk) [Long-Lived Asset Impairments](index=48&type=section&id=Long-Lived%20Asset%20Impairments) FOX periodically reviews its long-lived assets for recoverability, recognizing an impairment adjustment if the carrying amount exceeds expected undiscounted cash flows, measured as the excess of carrying value over fair value - The Company periodically reviews the carrying amounts of its long-lived assets (property, plant and equipment, ROU assets, and finite-lived intangible assets) for recoverability[336](index=336&type=chunk) - An impairment adjustment is recognized if the carrying amount exceeds expected undiscounted cash flows, measured as the amount by which carrying value exceeds fair value[336](index=336&type=chunk) [Income Taxes](index=48&type=section&id=Income%20Taxes_sub) FOX employs an asset and liability approach for income taxes, establishing deferred taxes for temporary differences and valuation allowances to ensure deferred tax assets are realized based on management's analysis - The Company uses an asset and liability approach for income taxes, providing deferred taxes for temporary differences between financial reporting and tax purposes[233](index=233&type=chunk)[345](index=345&type=chunk) - Valuation allowances are established to reduce deferred tax assets to the amount more likely than not to be realized, based on management's analysis of future taxable income and tax planning strategies[234](index=234&type=chunk)[345](index=345&type=chunk) [Employee Costs](index=48&type=section&id=Employee%20Costs) The measurement of pension and other postretirement benefit costs requires significant management judgment regarding actuarial assumptions like discount rates and expected return on assets, with a 0.25 percentage point decrease in discount rate increasing annual pension expense by $3 million - The measurement and recognition of costs for pension and other postretirement benefit (OPEB) plans require significant management judgments, including discount rates and expected return on plan assets[235](index=235&type=chunk) Key Pension Assumptions (Fiscal Years Ended June 30) | Assumption | 2025 | 2024 | 2023 | | :------------------------ | :---- | :---- | :---- | | Discount rate for service cost | 5.5 % | 5.3 % | 4.8 % | | Discount rate for interest cost | 5.3 % | 5.4 % | 4.5 % | | Expected rate of return on assets | 5.6 % | 5.3 % | 5.0 % | - A **0.25 percentage point decrease** in the discount rate would increase annual pension expense by **$3 million** and the projected benefit obligation (PBO) by **$28 million**[242](index=242&type=chunk) [Legal Matters](index=50&type=section&id=Legal%20Matters) FOX accrues liabilities for legal and indemnification claims when a loss is probable and estimable, acknowledging that unfavorable outcomes could significantly impact financial results - The Company establishes an accrued liability for legal and indemnification claims when a loss is probable and reasonably estimable[243](index=243&type=chunk) - Any fees, expenses, fines, penalties, judgments, or settlements from legal proceedings could affect the Company's results of operations and financial condition[243](index=243&type=chunk) [CAUTION CONCERNING FORWARD-LOOKING STATEMENTS](index=50&type=section&id=CAUTION%20CONCERNING%20FORWARD-LOOKING%20STATEMENTS) This section warns that forward-looking statements about future financial and operational performance are subject to inherent risks and uncertainties, and the Company does not commit to updating them unless legally required - This document contains 'forward-looking statements' regarding future earnings, revenues, operations, and economic conditions, identifiable by words like 'may,' 'will,' 'expects,' or 'believes'[244](index=244&type=chunk) - Actual results could differ materially from projections due to inherent risks and uncertainties, including government regulation, economic, strategic, political, and social conditions[245](index=245&type=chunk) - The Company does not undertake any obligation to update or release revisions to forward-looking statements, except as required by law[246](index=246&type=chunk) [ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=51&type=section&id=ITEM%207A.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) FOX Corporation is exposed to market risks primarily from changes in interest rates and stock prices. The Company holds $6.7 billion in fixed-rate debt and common stock investments. Sensitivity analyses indicate potential changes in fair value for both debt and equity investments due to adverse market movements [Interest Rates](index=52&type=section&id=Interest%20Rates) FOX holds $6.7 billion in fixed-rate debt, with a 10% adverse change in interest rates potentially altering its fair value by $258 million, and no variable-rate debt outstanding as of June 30, 2025 - The Company has **$6.7 billion of outstanding fixed-rate debt** as of June 30, 2025[250](index=250&type=chunk) - A **10% adverse change** in quoted interest rates could result in a **$258 million potential change** in the fair value of borrowings for fiscal 2025[251](index=251&type=chunk) - No variable-rate debt was outstanding as of June 30, 2025[251](index=251&type=chunk) [Stock Prices](index=52&type=section&id=Stock%20Prices) FOX holds $1.249 billion in common stock investments, where a 10% adverse market price change could result in a $125 million fair value reduction for fiscal 2025 - The Company has common stock investments in publicly traded companies with a total fair value of **$1.249 billion** as of June 30, 2025[252](index=252&type=chunk) - A **10% adverse change** in quoted market prices could result in a **$(125) million potential change** in the fair value of common stock investments for fiscal 2025[252](index=252&type=chunk) [Concentrations of Credit Risk](index=52&type=section&id=Concentrations%20of%20Credit%20Risk) Details regarding concentrations of credit risk are provided in Note 2—Summary of Significant Accounting Policies - Refer to Note 2—Summary of Significant Accounting Policies for details on concentrations of credit risk[253](index=253&type=chunk) [ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA](index=53&type=section&id=ITEM%208.%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA) This item presents FOX Corporation's audited consolidated financial statements for fiscal years ended June 30, 2025, 2024, and 2023, including the Statements of Operations, Comprehensive Income, Balance Sheets, Cash Flows, and Equity, along with comprehensive notes. Management affirmed effective internal control over financial reporting, and Ernst & Young LLP provided an unqualified audit opinion. Key financial highlights include significant revenue and net income growth in fiscal 2025 - Management affirmed effective internal control over financial reporting as of June 30, 2025[257](index=257&type=chunk) - Ernst & Young LLP, the independent registered public accounting firm, expressed an unqualified opinion on the Company's internal control over financial reporting and consolidated financial statements as of June 30, 2025[261](index=261&type=chunk)[269](index=269&type=chunk) Consolidated Statements of Operations Highlights (in millions, except per share amounts) | Metric | 2025 | 2024 | 2023 | | :-------------------------------------- | :------ | :------ | :------ | | Revenues | $16,300 | $13,980 | $14,913 | | Net income attributable to Fox Corporation stockholders | $2,263 | $1,501 | $1,239 | | Basic EPS | $4.97 | $3.14 | $2.34 | | Diluted EPS | $4.91 | $3.13 | $2.33 | Consolidated Balance Sheets Highlights (in millions) | Metric | As of June 30, 2025 | As of June 30, 2024 | | :------------------------ | :------------------ | :------------------ | | Total assets | $23,195 | $21,972 | | Total current liabilities | $2,897 | $2,952 | | Total equity | $12,067 | $10,814 | Consolidated Statements of Cash Flows Highlights (in millions) | Metric | 2025 | 2024 | 2023 | | :-------------------------------- | :------- | :------- | :------- | | Net cash provided by operating activities | $3,324 | $1,840 | $1,800 | | Net cash used in investing activities | $(537) | $(452) | $(438) | | Net cash used in financing activities | $(1,755) | $(1,341) | $(2,290) | | Cash and cash equivalents, end of year | $5,351 | $4,319 | $4,272 | - Subsequent to June 30, 2025, the Company declared a semi-annual dividend of **$0.28 per share**, repurchased **$50 million of Class A Common Stock**, and authorized an additional **$5 billion** for stock repurchases, bringing the total authorization to **$12 billion**[514](index=514&type=chunk)[515](index=515&type=chunk) [PART III](index=106&type=section&id=PART%20III) [ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE](index=105&type=section&id=ITEM%209.%20CHANGES%20IN%20AND%20DISAGREEMENTS%20WITH%20ACCOUNTANTS%20ON%20ACCOUNTING%20AND%20FINANCIAL%20DISCLOSURE) There are no changes in or disagreements with accountants on accounting and financial disclosure to report for this period - None[516](index=516&type=chunk) [ITEM 9A. CONTROLS AND PROCEDURES](index=105&type=section&id=ITEM%209A.%20CONTROLS%20AND%20PROCEDURES) Management, including the CEO and CFO, concluded that the Company's disclosure controls and procedures were effective as of the end of fiscal 2025. The Management's Annual Report on Internal Control Over Financial Reporting is incorporated by reference, and no material changes in internal control over financial reporting occurred during the fourth quarter of fiscal 2025 - The Company's Chief Executive Officer and Chief Financial Officer concluded that disclosure controls and procedures were effective as of the end of fiscal 2025[517](index=517&type=chunk) - Management's report on internal control over financial reporting is incorporated by reference[518](index=518&type=chunk) - There were no changes in the Company's internal control over financial reporting during the fourth quarter of fiscal 2025 that materially affected, or are reasonably likely to materially affect, internal control over financial reporting[519](index=519&type=chunk) [ITEM 9B. OTHER INFORMATION](index=105&type=section&id=ITEM%209B.%20OTHER%20INFORMATION) There is no other information to report under this item - None[520](index=520&type=chunk) [ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS](index=105&type=section&id=ITEM%209C.%20DISCLOSURE%20REGARDING%20FOREIGN%20JURISDICTIONS%20THAT%20PREVENT%20INSPECTIONS) This item is not applicable to the Company - Not applicable[521](index=521&type=chunk) [ITEMS 10, 11, 12, 13 AND 14. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE; EXECUTIVE COMPENSATION; SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS; CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE; PRINCIPAL ACCOUNTANT FEES AND SERVICES.](index=106&type=section&id=ITEMS%2010,%2011,%2012,%2013%20AND%2014.%20DIRECTORS,%20EXECUTIVE%20OFFICERS%20AND%20CORPORATE%20GOVERNANCE%3B%20EXECUTIVE%20COMPENSATION%3B%20SECURITY%20OWNERSHIP%20OF%20CERTAIN%20BENEFICIAL%20OWNERS%20AND%20MANAGEMENT%20AND%20RELATED%20STOCKHOLDER%20MATTERS%3B%20CERTAIN%20RELATIONSHIPS%20AND%20RELATED%20TRANSACTIONS,%20AND%20DIRECTOR%20INDEPENDENCE%3B%20PRINCIPAL%20ACCOUNTANT%20FEES%20AND%20SERVICES.) The information required for Items 10, 11, 12, 13, and 14 of Part III is incorporated by reference from the Company's definitive Proxy Statement for its 2025 Annual Meeting of Stockholders - Information for these items is incorporated by reference from the Company's definitive Proxy Statement for its 2025 Annual Meeting of Stockholders[524](index=524&type=chunk) [PART IV](index=107&type=section&id=PART%20IV) [ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES](index=107&type=section&id=ITEM%2015.%20EXHIBITS%20AND%20FINANCIAL%20STATEMENT%20SCHEDULES) This item lists the documents filed as part of the Annual Report, including the Company's Consolidated Financial Statements and various exhibits. Key exhibits include the Separation Agreement, Tax Matters Agreement, Certificate of Incorporation, By-laws, Indenture, Shareholder Alignment Plan, Credit Agreement, and Stockholders Agreement - The Company's Consolidated Financial Statements and Reports of Independent Registered Public Accounting Firm are included in Part II, Item 8[529](index=529&type=chunk) - Key exhibits filed or incorporated by reference include the Separation Agreement, Tax Matters Agreement, Amended and Restated Certificate of Incorporation, Amended and Restated By-laws, Indenture, Fox Corporation 2019 Shareholder Alignment Plan, Credit Agreement, and Stockholders Agreement[529](index=529&type=chunk)[530](index=530&type=chunk) [ITEM 16. FORM 10-K SUMMARY](index=109&type=section&id=ITEM%2016.%20FORM%2010-K%20SUMMARY) This item is not applicable to the Company - Not applicable[533](index=533&type=chunk) [SIGNATURES](index=110&type=section&id=SIGNATURES) The Annual Report is duly signed on behalf of Fox Corporation by its Chief Financial Officer, Steven Tomsic, and by the Executive Chair and Chief Executive Officer, Lachlan K. Murdoch, along with other directors, all dated August 6, 2025 - The report is signed by Steven Tomsic (Chief Financial Officer) and Lachlan K. Murdoch (Executive Chair and Chief Executive Officer), among other directors[536](index=536&type=chunk) - All signatures are dated August 6, 2025[536](index=536&type=chunk)

Core Insights - Fox Corporation reported fourth-quarter fiscal 2025 adjusted earnings per share of $1.27, exceeding the Zacks Consensus Estimate by 25.7% and reflecting a year-over-year increase of 41.1% [1][8] - Total revenues rose 6.3% year over year to $3.28 billion, surpassing the consensus mark by 5.8% [1][8] - Adjusted EBITDA surged 21.5% year over year to $939 million, with an expanded margin of 360 basis points [5][8] Revenue Breakdown - Affiliate fees, accounting for 58% of total revenues, increased 2.6% year over year to $1.9 billion, driven by 4% growth in the Television segment and 2% growth in Cable Network Programming [1] - Advertising revenues, making up 32.8% of total revenues, grew 7.1% year over year to $1.07 billion, primarily due to digital growth from the Tubi AVOD service and stronger news ratings [2] - Other revenues surged 33.2% year over year to $301 million, representing 9.2% of total revenues [2] Segment Performance - Cable Network Programming revenues, which constitute 46.6% of total revenues, increased 6.5% year over year to $1.53 billion, with advertising revenues growing 15.2% [3] - Television revenues rose 5.7% year over year to $1.70 billion, with advertising revenues increasing 3.1% and affiliate fees growing 3.6% [4] Operating Expenses and Profitability - Operating expenses decreased 1.4% year over year to $1.75 billion, with operating expenses as a percentage of revenues contracting 420 basis points to 53.5% [5] - Selling, general & administrative (SG&A) expenses rose 9.5% year over year to $590 million, expanding as a percentage of revenues by 50 basis points to 17.9% [5] Balance Sheet Highlights - As of June 30, 2025, Fox had $5.35 billion in cash and cash equivalents, up from $4.81 billion as of March 31, 2025 [7] - Total borrowings included $599 million in current borrowings and $6.598 billion in non-current borrowings [7]

Fox (FOXA) came out with quarterly earnings of $1.27 per share, beating the Zacks Consensus Estimate of $1.01 per share. This compares to earnings of $0.9 per share a year ago. These figures are adjusted for non- recurring items. There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have change ...

Core Insights - Fox Corp. reported total revenue of $3.29 billion and earnings per share of $1.57 for the fiscal fourth quarter, exceeding Wall Street expectations of $3.11 billion and $1.01 EPS [1] - The company experienced a 7% increase in total advertising revenue, reaching $1.08 billion, attributed to the success of the free streaming service Tubi, improved ratings at Fox News, and better pricing strategies [2] - For the full fiscal year, Fox Corp. achieved total revenue of $16.3 billion, marking a 17% increase from the previous year, driven by events such as the 2024 election and Super Bowl LIX [5] Revenue Breakdown - The Cable Network Programming division led overall performance with a 7% revenue increase to $1.53 billion, where advertising revenue rose by 15% and affiliate fee revenue increased by 2% despite net subscriber declines [3] - The Television division's revenue grew by 6% to $1.71 billion, primarily due to contributions from Tubi, with upcoming highlights including college football, NFL telecasts, and Major League Baseball playoffs [4]