Baron Funds, an investment management company, released its “Baron Discovery Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fund focuses on long-term, competitively positioned companies that are well-managed and have significant potential in untapped markets. The letter also addressed the advancements in AI and how humans define themselves in the changing landscape. In Q4, the fund generated a return of 0.19% (Institutional Shares), underperforming the Russell 2 ...

Core Points - Liberty Media Corporation and Liberty Live Holdings, Inc. have completed the split-off, resulting in two separate publicly traded companies [1] - Liberty Live Holdings' Series A and Series C common stock will begin trading on Nasdaq under symbols "LLYVA" and "LLYVK" on December 16, 2025, while Series B common stock will be quoted on OTC Markets under symbol "LLYVB" starting around December 17, 2025 [2] - Following the split-off, Liberty Live Holdings has approximately 25.6 million shares of Series A, 2.5 million shares of Series B, and 63.8 million shares of Series C common stock outstanding [3] - Liberty Media reattributed certain assets and liabilities between the Formula One Group and Liberty Live Group in connection with the split-off [4] Company Information - Liberty Media Corporation operates and owns interests in media, sports, and entertainment businesses, including subsidiaries like Formula 1 and MotoGP [6] - Liberty Live Holdings consists of ownership in Live Nation, its wholly owned subsidiary Quint, and other minority investments [7]

Revenue Performance - Formula One Group reported total revenue of $1,085 million for Q3 2025, a 19% increase from $911 million in Q3 2024[8] - MotoGP generated $169 million in revenue for Q3 2025, reflecting the impact of the acquisition completed on July 3, 2025[8] - Total motorsport revenue for Formula 1 increased by 9% to $2,498 million for the nine months ended September 30, 2025, compared to $2,285 million in the same period of 2024[11] - Total revenue for the three months ended September 30, 2025, was $1,085 million, an increase from $911 million in the same period of 2024, representing a growth of approximately 19.1%[45][47] - Primary MotoGP revenue for the three months ended September 30, 2025, was $147 million, a 1% increase compared to $146 million in the same period of 2024[20] Operating Income and Adjusted OIBDA - Adjusted OIBDA for Formula One Group increased to $297 million in Q3 2025, up 43% from $207 million in Q3 2024[8] - Operating income for Formula One Group rose to $158 million in Q3 2025, compared to $110 million in Q3 2024, marking a 43% increase[8] - Operating income for the three months ended September 30, 2025, was $149 million, compared to $107 million in the same period of 2024, reflecting an increase of approximately 39.3%[45][47] - Adjusted OIBDA decreased by 10% to $66 million for the three months ended September 30, 2025, and declined by 3% to $150 million for the nine months ended September 30, 2025[20] - Liberty Media emphasizes the importance of Adjusted OIBDA as a measure of operational strength and performance[54] Cash Flow and Assets - Cash flows from operating activities for the nine months ended September 30, 2025, were $785 million, compared to $1,315 million in the same period of 2024, showing a decrease of approximately 40.4%[49][51] - Total cash and cash equivalents attributed to Formula One Group decreased by $1,849 million during the third quarter of 2025, primarily due to the acquisition of MotoGP[35] - Cash and cash equivalents at the end of the period for September 30, 2025, were $1,588 million, a decrease from $2,963 million at the end of September 30, 2024, reflecting a decline of approximately 46.5%[49][51] - Total cash, cash equivalents, and restricted cash at the end of the period amounted to $3,061 million, up from $2,028 million at the beginning[52] Debt and Liabilities - Total attributed Liberty Media Corporation debt increased to $7,037 million as of September 30, 2025, from $4,799 million[32] - MotoGP leverage was reported at 5.6x as of September 30, 2025, reflecting the impact of the acquisition[32] - Liberty Media remains in compliance with its debt covenants as of September 30, 2025[34] - Total liabilities as of September 30, 2025, were $9,731 million, compared to $7,736 million as of September 30, 2024, indicating an increase of approximately 25.8%[42][46] Earnings and Expenses - Net earnings attributable to Liberty stockholders for the three months ended September 30, 2025, were $13 million, a decrease from $117 million in the same period of 2024, indicating a decline of approximately 88.9%[45][47] - The company reported a depreciation and amortization expense of $275 million for the nine months ended September 30, 2025[49] - The company incurred acquisition costs of $14 million for the three months ended September 30, 2025[45] - The company incurred $3 million and $14 million in acquisition costs during Q3 2024 and Q3 2025, respectively[56] Attendance and Engagement - MotoGP's operating results indicate record attendance and growth in TV viewership and digital engagement, highlighting the brand's momentum post-acquisition[19] - The number of races held year-to-date through the third quarter of 2025 was 17, compared to 15 in the same period of 2024[22] Other Financial Metrics - The company reported a share of earnings from affiliates of $121 million for the three months ended September 30, 2025, compared to $116 million in the same period of 2024[45][47] - Net earnings for the quarter were $218 million, compared to a loss of $2,412 million in the previous period[52] - Depreciation and amortization expenses rose from $263 million in the first nine months of 2024 to $275 million in 2025[56] - Constant currency operating results are used to assess MotoGP's financial performance, excluding foreign currency fluctuations[58]

Financial Position - As of September 30, 2025, the Formula One Group had cash and cash equivalents of approximately $1,291 million, including $825 million of subsidiary cash[164] - The Liberty Live Group had cash and cash equivalents of approximately $297 million as of September 30, 2025[165] - As of September 30, 2025, Liberty's total cash and cash equivalents amounted to $1,291 million for Formula One Group and $297 million for Liberty Live Group[187][188] - As of September 30, 2025, substantially all cash and cash equivalents were invested in highly rated financial instruments, indicating a strong liquidity position[184] - Liberty expects to fund its projected uses of cash through cash on hand, borrowing capacity, and distributions from operating subsidiaries[190] - Liberty believes that available sources of liquidity are sufficient to cover projected future cash uses[192] Acquisitions and Investments - The Company acquired approximately 84% of the equity interests in Dorna Sports, S.L. (MotoGP) on July 3, 2025, making it a consolidated subsidiary[157] - Liberty acquired approximately 84% of MotoGP's equity interests on July 3, 2025, consolidating its results from that date[211] - The Company holds an ownership interest in Live Nation, which is accounted for as an equity method investment as of September 30, 2025[158] Revenue and Earnings - Consolidated revenue increased by $174 million (19.1%) and $387 million (15.6%) for the three and nine months ended September 30, 2025, respectively, driven by increases in Formula 1 revenue and the acquisition of MotoGP[169] - Formula 1's primary revenue for the nine months ended September 30, 2025, increased by $129 million to $2,089 million compared to the prior year, driven by contractual fee increases and new sponsorships[195][196] - Other revenue for Formula 1 increased by $84 million during the nine months ended September 30, 2025, primarily due to higher hospitality revenue and growth in licensing income[200] - Formula 1's operating income for the nine months ended September 30, 2025, was $433 million, up from $366 million in the prior year[195] - Total motorsport revenue for Formula 1 was $2,498 million for the nine months ended September 30, 2025, compared to $2,285 million in the prior year[195] - MotoGP's pro forma total motorsport revenue for the three months ended September 30, 2025, was $169 million, unchanged from the prior year, while for the nine months, it increased to $417 million from $371 million[214] - Primary revenue for MotoGP increased by $1 million (0.7%) in Q3 2025 compared to Q3 2024, and by $41 million (12.7%) for the nine months ended September 30, 2025, primarily due to additional events and favorable currency exchange rates[215] Expenses and Costs - Operating income increased by $42 million (39.3%) and $94 million (35.5%) for the three and nine months ended September 30, 2025, respectively, primarily due to improvements in Formula 1's operating results and the acquisition of MotoGP[170] - Adjusted OIBDA increased by $84 million (40.9%) and $152 million (26.6%) for the three and nine months ended September 30, 2025, respectively, primarily due to increases in Formula 1's Adjusted OIBDA and the acquisition of MotoGP[174] - Stock-based compensation expense was $18 million for the nine months ended September 30, 2025, down from $27 million in the same period of 2024[172] - Acquisition costs related to corporate acquisitions were $14 million for the three months ended September 30, 2025, compared to $3 million in the same period of 2024[173] - Interest expense increased by $24 million (38.7%) and $14 million (7.6%) for the three and nine months ended September 30, 2025, respectively, primarily due to an increase in the average amount of debt outstanding[177] - Selling, general and administrative expenses rose by $2 million (11.8%) in Q3 2025 and by $13 million (32.5%) for the nine months, primarily due to higher personnel costs[222] - Cost of motorsport revenue increased by $5 million (6.3%) in Q3 2025 and by $37 million (20.9%) for the nine months, mainly due to additional MotoGP events and unfavorable currency exchange rates[221] Tax and Debt - The effective income tax rate for the three months ended September 30, 2025, was 43%, significantly higher than the expected federal tax rate of 21%[182] - The company does not have a debt rating, which may impact its borrowing capacity[186] Split-Off Plans - The Liberty Live Split-Off is expected to be completed on December 15, 2025, and is intended to be tax-free to stockholders[167] - The Company is pursuing a plan to split off the Liberty Live Group, with the split-off subject to various conditions including shareholder approval[167] - The Liberty SiriusXM common stock was intended to track the separate economic performance of the businesses attributed to the Liberty SiriusXM Group prior to the split-off[166] - The Liberty Live Group is primarily comprised of Liberty's interest in Live Nation, cash, other minority investments, and Liberty's 2.375% Exchangeable Senior Debentures due 2053[165]

Core Points - John Malone is stepping down as chairman of Liberty Media, transitioning to chairman emeritus effective January 1, 2026, after over three decades of leadership [1][2] - Malone's decision comes after a successful simplification of Liberty Media's portfolio and the strengthening of its operating businesses [2] - Liberty Media shares have increased over 34% year-to-date and more than 54% over the past 12 months, despite a slight decline in trading on the day of the announcement [2] Company Background - Malone built Tele-Communications, Inc. (TCI) in the 1970s and 1990s, selling it to AT&T for over $50 billion in 1999, and has been a key figure in the development of Liberty Media, with Formula One being its crown jewel [3] - Malone is known for his aggressive deal-making and complex share structures, acquiring high-profile media assets throughout his career [3] Leadership Transition - Robert R. "Dob" Bennett, who has been with Liberty Media since its founding in 1991 and served as vice chairman since January 2025, will assume the role of chairman [7] - Bennett expressed gratitude for Malone's mentorship and highlighted his legacy as a visionary business leader [8] Future Outlook - Malone has indicated a belief in ongoing media consolidation, suggesting that significant changes in the industry are still to come, particularly with the integration of social networking and streaming entertainment [6]

[Executive Summary & Recent Developments](index=1&type=section&id=Executive%20Summary%20%26%20Recent%20Developments) Liberty Media Corporation reported strong progress in Q2 2025, highlighted by the MotoGP acquisition, Liberty Live split-off, and Formula 1's excellent financial and operating results [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) Liberty Media Corporation reported strong progress in Q2 2025, highlighted by the completion of the MotoGP acquisition, advancement of the Liberty Live split-off, and continued excellent financial and operating results at Formula 1, driven by commercial momentum and record fan engagement - Completed the acquisition of MotoGP on July 3rd, which will be attributed to the Formula One Group[2](index=2&type=chunk)[4](index=4&type=chunk) - Advanced the split-off of Liberty Live, with a preliminary proxy statement filed on July 25th, expecting completion in **Q4 2025**[2](index=2&type=chunk) - Formula 1 achieved excellent financial and operating results, securing new partners (PepsiCo, MSC Cruises, Disney's Mickey & Friends) and renewing key agreements (Canadian Grand Prix through 2035, Austrian Grand Prix through 2041)[1](index=1&type=chunk)[2](index=2&type=chunk) - F1 The Movie debuted globally on June 27th, becoming Apple's highest-grossing film ever, contributing to strong viewership and record social/digital engagement[2](index=2&type=chunk)[9](index=9&type=chunk) Liberty Live Group Investment Fair Value | Metric | Value (as of June 30th) | | :----- | :----------------------- | | Live Nation Investment Fair Value | $10.5 billion | [Corporate Updates](index=3&type=section&id=Corporate%20Updates) Liberty Media completed the acquisition of Dorna Sports, S.L. (MotoGP) on July 3, 2025, gaining approximately 84% ownership, with MotoGP management retaining 16% - Acquisition of Dorna Sports, S.L. (MotoGP) completed on July 3, 2025[4](index=4&type=chunk) - Liberty Media owns approximately **84% of MotoGP**, with management retaining **16%**[4](index=4&type=chunk) - MotoGP's financial results will be consolidated and attributed to the Formula One Group tracking stock, though initial accounting is not yet reflected in the Q2 results due to timing[4](index=4&type=chunk) [Financial Performance Overview](index=3&type=section&id=Financial%20Performance%20Overview) This section provides a comprehensive review of Liberty Media's financial performance, focusing on the Formula One Group's revenue and operating income growth, alongside corporate and Liberty Live Group results [Formula One Group Financial Results](index=3&type=section&id=Formula%20One%20Group%20Financial%20Results) The Formula One Group reported significant growth in Q2 2025, with total revenue increasing by 35.7% and operating income surging by 374.6% compared to Q2 2024, primarily driven by strong F1 performance Formula One Group Financial Results (Q2 2025 vs. Q2 2024) | Metric | Q2 2024 (millions) | Q2 2025 (millions) | % Change | | :----- | :----------------- | :----------------- | :------- | | Revenue | $988 | $1,341 | 35.7% | | Operating Income (Loss) | $59 | $280 | 374.6% | | Adjusted OIBDA (Loss) | $165 | $369 | 123.6% | Formula One Group Financial Results (YTD Q2 2025 vs. YTD Q2 2024) | Metric | YTD Q2 2024 (millions) | YTD Q2 2025 (millions) | % Change | | :----- | :--------------------- | :--------------------- | :------- | | Revenue | $1,575 | $1,788 | 13.5% | | Operating Income (Loss) | $154 | $213 | 38.3% | | Adjusted OIBDA (Loss) | $367 | $442 | 20.4% | - Formula One Group incurred **$14 million** in corporate-level selling, general, and administrative expenses in Q2 2025[5](index=5&type=chunk) [F1 Operating Results (Detailed)](index=3&type=section&id=F1%20Operating%20Results%20(Detailed)) F1's operating results showed substantial growth in Q2 2025, with total revenue increasing by 41% and operating income by 249%, driven by an additional race, contractual fee increases, new sponsors, F1 TV growth, and the F1 movie Formula 1 Operating Results (Q2 2025 vs. Q2 2024) | Metric | Q2 2024 (millions) | Q2 2025 (millions) | % Change | | :----- | :----------------- | :----------------- | :------- | | Number of races | 8 | 9 | 12.5% | | Primary F1 revenue | $739 | $1,032 | 40% | | Other F1 revenue | $132 | $194 | 47% | | Total F1 revenue | $871 | $1,226 | 41% | | Operating income (loss) | $84 | $293 | 249% | | Adjusted OIBDA | $160 | $361 | 126% | Formula 1 Operating Results (YTD Q2 2025 vs. YTD Q2 2024) | Metric | YTD Q2 2024 (millions) | YTD Q2 2025 (millions) | % Change | | :----- | :--------------------- | :--------------------- | :------- | | Number of races | 11 | 11 | 0% | | Primary F1 revenue | $1,202 | $1,351 | 12% | | Other F1 revenue | $222 | $278 | 25% | | Total F1 revenue | $1,424 | $1,629 | 14% | | Operating income (loss) | $220 | $265 | 20% | | Adjusted OIBDA | $368 | $446 | 21% | - Primary F1 revenue increased due to calendar variance (one additional race in Q2 2025), contractual increases in race promotion, media rights, and sponsorship fees, revenue from new sponsors, continued growth in F1 TV subscriptions, and one-time revenue from the F1 movie release[13](index=13&type=chunk)[14](index=14&type=chunk)[15](index=15&type=chunk) - Other F1 revenue increased due to higher hospitality and experiences revenue (Paddock Club growth, additional event), growth in licensing income, and higher revenue from travel, technical, and freight services[14](index=14&type=chunk)[15](index=15&type=chunk) - Operating expenses increased due to higher team payments, increased freight costs (different event order), higher commissions and partner servicing costs, increased Paddock Club costs, costs for new sponsors, F1 TV delivery costs, and expenses for the Grand Prix Plaza in Las Vegas[16](index=16&type=chunk) - Selling, general and administrative expenses increased primarily due to higher personnel and marketing expenses, including costs for the 75th season launch event[16](index=16&type=chunk) [Corporate and Other Operating Results](index=9&type=section&id=Corporate%20and%20Other%20Operating%20Results) Corporate and Other Adjusted OIBDA includes rental income from Grand Prix Plaza in Las Vegas and results from Quint, which saw increased revenue in Q2 2025 primarily driven by F1 Experiences and the Kentucky Derby - Corporate and Other Adjusted OIBDA includes rental income from Grand Prix Plaza in Las Vegas and Quint results[17](index=17&type=chunk) - Corporate and Other revenue increased in Q2 2025 due to Quint's performance, primarily from F1 Experiences across nine races and the Kentucky Derby[17](index=17&type=chunk) - Grand Prix Plaza in Las Vegas generated **$6 million** in rental income in both Q2 2025 and Q2 2024[17](index=17&type=chunk) - Quint's revenue is seasonal, with largest events typically occurring in the second and fourth quarters[17](index=17&type=chunk) [Liberty Live Group Overview](index=9&type=section&id=Liberty%20Live%20Group%20Overview) The Liberty Live Group incurred $7 million in corporate-level selling, general, and administrative expenses in Q2 2025, with its assets primarily consisting of Liberty Media's interest in Live Nation and other minority investments - Liberty Live Group was allocated **$7 million** in corporate-level selling, general and administrative expense (including stock-based compensation) in Q2 2025[18](index=18&type=chunk) - The businesses and assets attributed to Liberty Live Group consist of Liberty Media's interest in Live Nation and other minority investments[19](index=19&type=chunk) [Financial Position & Cash Flow](index=10&type=section&id=Financial%20Position%20%26%20Cash%20Flow) This section details Liberty Media's financial position, including cash, debt, balance sheet, and cash flow statements for the Formula One and Liberty Live Groups [Cash and Debt](index=10&type=section&id=Cash%20and%20Debt) As of June 30, 2025, the Formula One Group's cash and cash equivalents increased by $307 million to $3,140 million, while its total debt remained relatively flat at $2,897 million Cash and Debt Attributed to Groups (amounts in millions) | Metric | 3/31/2025 | 6/30/2025 | | :----- | :-------- | :-------- | | **Cash and Cash Equivalents:** | | | | Formula One Group | $2,833 | $3,140 | | Liberty Live Group | $314 | $308 | | Total Consolidated | $3,147 | $3,448 | | **Debt:** | | | | Total Attributed Formula One Group Debt | $2,902 | $2,897 | | Total Attributed Liberty Live Group Debt | $1,150 | $1,150 | | Total Liberty Media Corporation Debt (GAAP) | $4,564 | $4,799 | - Formula One Group's cash and cash equivalents increased by **$307 million** in Q2, primarily due to net cash from F1 operations and proceeds from derivative contracts related to MotoGP financing, partially offset by capital expenditures[27](index=27&type=chunk) - Liberty Live Group's cash and cash equivalents decreased by **$6 million** in Q2, mainly due to interest payments and corporate overhead[28](index=28&type=chunk) - Formula 1's net leverage, as defined in its credit facilities, improved from **1.2x to 0.7x**[25](index=25&type=chunk) - Liberty Media and F1 are in compliance with their debt covenants as of June 30, 2025[27](index=27&type=chunk) [Balance Sheet Information](index=13&type=section&id=Balance%20Sheet%20Information) As of June 30, 2025, Liberty Media Corporation reported consolidated total assets of $13,821 million and total liabilities of $6,458 million, with the Formula One Group accounting for the majority Consolidated Balance Sheet (June 30, 2025, amounts in millions) | Metric | Formula One Group | Liberty Live Group | Consolidated Liberty | | :----- | :---------------- | :----------------- | :------------------- | | **Assets:** | | | | | Cash and cash equivalents | $3,140 | $308 | $3,448 | | Total current assets | $3,793 | $309 | $4,102 | | Goodwill | $4,135 | — | $4,135 | | Total assets | $12,485 | $1,371 | $13,821 | | **Liabilities and Equity:** | | | | | Total current liabilities | $1,333 | $1,770 | $3,103 | | Long-term debt | $2,996 | — | $2,996 | | Total liabilities | $4,633 | $1,860 | $6,458 | | Equity / Attributed net assets | $7,852 | ($511) | $7,341 | | Total liabilities and equity | $12,485 | $1,371 | $13,821 | [Statement of Operations (Income Statement)](index=14&type=section&id=Statement%20of%20Operations%20(Income%20Statement)) Liberty Media's consolidated net earnings attributable to stockholders increased to $204 million in Q2 2025 from $457 million in Q2 2024 (which included discontinued operations), with the Formula One Group being the primary driver of profitability [Three Months Ended June 30, 2025](index=14&type=section&id=Three%20Months%20Ended%20June%2030%2C%202025) For Q2 2025, Liberty Media reported consolidated total revenue of $1,341 million and net earnings attributable to Liberty stockholders of $204 million, with the Formula One Group contributing $382 million in net earnings Consolidated Statement of Operations (Q2 2025, amounts in millions) | Metric | Formula One Group | Liberty Live Group | Consolidated Liberty | | :----- | :---------------- | :----------------- | :------------------- | | Total revenue | $1,341 | — | $1,341 | | Operating income (loss) | $280 | ($7) | $273 | | Earnings (loss) before income taxes | $455 | ($227) | $228 | | Net earnings (loss) attributable to Liberty stockholders | $382 | ($178) | $204 | [Three Months Ended June 30, 2024](index=15&type=section&id=Three%20Months%20Ended%20June%2030%2C%202024) In Q2 2024, Liberty Media reported consolidated total revenue of $988 million and net earnings attributable to Liberty stockholders of $457 million, which included $299 million from discontinued operations Consolidated Statement of Operations (Q2 2024, amounts in millions) | Metric | Formula One Group | Liberty Live Group | SiriusXM Group | Consolidated Liberty | | :----- | :---------------- | :----------------- | :------------- | :------------------- | | Total revenue | $988 | — | — | $988 | | Operating income (loss) | $59 | ($2) | — | $57 | | Earnings (loss) from continuing operations before income taxes | $23 | $170 | — | $193 | | Net earnings (loss) from discontinued operations | — | — | $349 | $349 | | Net earnings (loss) attributable to Liberty stockholders | $24 | $134 | $299 | $457 | [Statement of Cash Flows](index=16&type=section&id=Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, Liberty Media generated $612 million in net cash from operating activities, with the Formula One Group contributing $628 million [Six Months Ended June 30, 2025](index=16&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025) In the first half of 2025, the Formula One Group provided $628 million in net cash from operating activities, while the Liberty Live Group used $16 million, leading to a consolidated net increase in cash of $509 million Consolidated Statement of Cash Flows (H1 2025, amounts in millions) | Metric | Formula One Group | Liberty Live Group | Consolidated Liberty | | :----- | :---------------- | :----------------- | :------------------- | | Net cash provided (used) by operating activities | $628 | ($16) | $612 | | Net cash provided (used) by investing activities | ($119) | ($1) | ($120) | | Net cash provided (used) by financing activities | $8 | — | $8 | | Net increase (decrease) in cash, cash equivalents and restricted cash | $526 | ($17) | $509 | | Cash, cash equivalents and restricted cash at end of period | $3,164 | $308 | $3,472 | [Six Months Ended June 30, 2024](index=17&type=section&id=Six%20Months%20Ended%20June%2030%2C%202024) For the first half of 2024, Liberty Media reported $394 million in net cash from operating activities, with the Formula One Group contributing $401 million, and net cash used by discontinued operations totaling $111 million Consolidated Statement of Cash Flows (H1 2024, amounts in millions) | Metric | Formula One Group | Liberty Live Group | SiriusXM Group | Consolidated Liberty | | :----- | :---------------- | :----------------- | :------------- | :------------------- | | Net cash provided (used) by operating activities | $401 | ($7) | — | $394 | | Net cash provided (used) by investing activities | ($308) | $108 | — | ($200) | | Net cash provided (used) by financing activities | $6 | — | — | $6 | | Net cash provided (used) by discontinued operations | — | — | ($111) | ($111) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $91 | $101 | ($111) | $81 | | Cash, cash equivalents and restricted cash at end of period | $1,499 | $406 | $204 | $2,109 | [Non-GAAP Financial Measures](index=18&type=section&id=Non-GAAP%20Financial%20Measures) This section provides a reconciliation of non-GAAP financial measures, specifically Adjusted OIBDA, used by Liberty Media to evaluate operational performance [Adjusted OIBDA Reconciliation](index=18&type=section&id=Adjusted%20OIBDA%20Reconciliation) Liberty Media uses Adjusted OIBDA as a non-GAAP financial measure to assess operational strength and performance, excluding items not directly reflective of ongoing business trends - Adjusted OIBDA is defined as operating income (loss) plus depreciation and amortization, stock-based compensation, separately reported litigation settlements, Concorde incentive payments, and restructuring, acquisition, and impairment charges[44](index=44&type=chunk) - Liberty Media believes Adjusted OIBDA is an important indicator of operational strength and performance, allowing management to view operating results and perform analytical comparisons[45](index=45&type=chunk) Formula One Group Adjusted OIBDA Reconciliation (amounts in millions) | Metric | Q2 2024 | Q2 2025 | YTD Q2 2024 | YTD Q2 2025 | | :----- | :------ | :------ | :---------- | :---------- | | Operating income (loss) | $59 | $280 | $154 | $213 | | Depreciation and amortization | $89 | $80 | $175 | $157 | | Stock compensation expense | $6 | $6 | $18 | $8 | | Acquisition costs | $11 | $3 | $20 | $14 | | Concorde incentive payments | — | — | — | $50 | | **Adjusted OIBDA** | **$165** | **$369** | **$367** | **$442** | [Additional Information](index=9&type=section&id=Additional%20Information) This section covers share repurchase activities and important notices regarding forward-looking statements and upcoming investor calls [Share Repurchases](index=9&type=section&id=Share%20Repurchases) Liberty Media did not repurchase any common stock between May 1 and July 31, 2025, retaining a remaining repurchase authorization of $1.1 billion applicable across any of its tracking stocks - No repurchases of Liberty Media's common stock occurred from May 1 through July 31, 2025[20](index=20&type=chunk) - The total remaining repurchase authorization for Liberty Media as of August 1, 2025, is **$1.1 billion**[20](index=20&type=chunk) - The repurchase authorization can be applied to common shares of any of the Liberty Media tracking stocks[20](index=20&type=chunk) [Important Notice & Forward-Looking Statements](index=12&type=section&id=Important%20Notice%20%26%20Forward-Looking%20Statements) Liberty Media will host an earnings conference call on August 7, 2025, to discuss results, and the press release includes forward-looking statements subject to various risks and uncertainties - Liberty Media Corporation will discuss its earnings release on a conference call on August 7, 2025, at 10:00 a.m. (E.T.)[29](index=29&type=chunk) - The press release contains forward-looking statements regarding business strategies, market potential, future financial performance, the Formula 1 race calendar, and the planned split-off of Liberty Live[30](index=30&type=chunk) - These forward-looking statements involve risks and uncertainties, including market acceptance, regulatory matters, litigation outcomes, acquisition benefits, industry change, access to capital, and changes in law[30](index=30&type=chunk)

Financial Position - As of June 30, 2025, the Formula One Group had cash and cash equivalents of approximately $3,140 million, including $1,845 million of subsidiary cash[149] - The Liberty Live Group had cash and cash equivalents of approximately $308 million as of June 30, 2025[150] - Cash and cash equivalents for Formula One Group totaled $3,140 million as of June 30, 2025, with Formula 1 holding $1,775 million[172] - Liberty's cash provided by operating activities for the six months ended June 30, 2025, was $612 million, an increase of $218 million (55.3%) from $394 million in 2024[174] - As of June 30, 2025, Formula One Group had $172 million in variable rate debt with a weighted average interest rate of 6.2% and $2,725 million in fixed rate debt with a weighted average interest rate of 4.4%[199] Acquisitions and Investments - On July 3, 2025, the company acquired approximately 84% of the equity interests in Dorna Sports, S.L. (MotoGP) for a preliminary purchase price of approximately $3.7 billion, funded with cash on hand and $1.0 billion in borrowings[152] - The company is in the process of determining the preliminary fair value of the net assets acquired from MotoGP, which will primarily consist of goodwill and customer relationships[152] - Liberty's primary use of cash during the six months ended June 30, 2025, included a $131 million extension payment related to the MotoGP acquisition[176] Revenue and Earnings - Consolidated revenue increased by $353 million (35.7%) and $213 million (13.5%) for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024, driven by growth in Formula 1 and QuintEvents revenue[156] - Consolidated operating income rose by $216 million (366.1%) and $52 million (34.0%) for the three and six months ended June 30, 2025, respectively, primarily due to improvements in Formula 1 operating results[157] - Adjusted OIBDA increased by $200 million (121.9%) and $68 million (15.6%) for the three and six months ended June 30, 2025, respectively, mainly attributed to increases in Formula 1's Adjusted OIBDA[160] - Net earnings from continuing operations were $204 million and $209 million for the three and six months ended June 30, 2025, respectively, compared to $158 million and $162 million for the same periods in 2024[169] - Formula 1's primary revenue increased by $293 million (39.7%) to $1,032 million for the three months ended June 30, 2025, compared to $739 million in the same period of 2024[181] - Total Formula 1 revenue for the six months ended June 30, 2025, was $1,629 million, up $205 million (14.4%) from $1,424 million in the prior year[181] - Adjusted OIBDA for Formula 1 increased to $446 million for the six months ended June 30, 2025, compared to $368 million in the same period of 2024, reflecting a growth of $78 million (21.2%)[181] Expenses and Costs - Selling, general and administrative expenses rose by $29 million (30.2%) to $124 million for the six months ended June 30, 2025, compared to $95 million in the prior year[194] - Cost of Formula 1 revenue increased by $142 million (22.0%) for the three months ended June 30, 2025, compared to the same period in 2024[188] - The company recorded $10 million and $20 million in stock-based compensation expenses for the six months ended June 30, 2025, and 2024, respectively, with total unrecognized compensation cost related to unvested equity awards at approximately $40 million[158] - Acquisition costs amounted to $3 million and $11 million for the three months ended June 30, 2025, and 2024, respectively, and $14 million and $20 million for the six months ended June 30, 2025, and 2024, respectively[159] Corporate Structure and Changes - The Liberty Sirius XM Holdings Split-Off was completed on September 9, 2024, exchanging each outstanding share of Liberty SiriusXM common stock for 0.8375 of a share of Liberty Sirius XM Holdings common stock[146] - The company is pursuing a plan to split off the Liberty Live Group, expected to be completed in the second half of 2025, and intended to be tax-free to stockholders[153] - The reclassification of common stock into three new tracking stocks occurred on August 3, 2023, affecting the attribution of businesses, assets, and liabilities among the newly created groups[145] Risks and Compliance - The company faces various risks, including the impact of weak economic conditions on consumer demand and the operational risks of subsidiaries outside the U.S.[140] - Liberty is in compliance with its debt covenants as of June 30, 2025[173] - Interest expense decreased by $3 million (5.0%) and $10 million (8.2%) for the three and six months ended June 30, 2025, respectively, due to a reduction in average debt and interest rates[163]

[Overview and Key Highlights](index=1&type=section&id=Overview%20and%20Key%20Highlights) Liberty Media reported a strong Q1 2025, driven by Formula 1's commercial momentum and Live Nation's record trajectory, alongside key strategic developments - Management expressed confidence in a **strong start to 2025**, citing **financial momentum** at Formula 1 from new commercial partnerships and sustained demand for live music at Live Nation, which is expected to have **another record year**[1](index=1&type=chunk) - Key operational highlights for Formula One Group include renewed Grand Prix agreements for Mexico and Miami, new sponsorship deals, signing the 2026 Concorde Commercial Agreement, opening the Grand Prix Plaza in Las Vegas, and ongoing work on the MotoGP acquisition[3](index=3&type=chunk) - The fair value of Liberty Live Group's investment in Live Nation was **$9.1 billion** as of March 31, 2025[3](index=3&type=chunk) [Formula One Group Financial Results](index=3&type=section&id=Formula%20One%20Group%20Financial%20Results) Formula One Group's Q1 2025 financial performance declined due to one fewer race, resulting in lower revenue, an operating loss, and reduced Adjusted OIBDA Formula One Group Financial Summary (Q1 2025 vs. Q1 2024) | Metric | 1Q24 (in millions) | 1Q25 (in millions) | | :--- | :--- | :--- | | **Total Revenue** | $587 | $447 | | **Operating Income (Loss)** | $95 | $(67) | | **Adjusted OIBDA (Loss)** | $202 | $73 | [F1 Operating Results](index=3&type=section&id=F1%20Operating%20Results) F1's Q1 2025 revenue decreased **27%** to **$403 million** and Adjusted OIBDA fell **59%** to **$85 million**, primarily due to one fewer race - The primary reason for the year-over-year decline in revenue and costs was the **timing of races**, with **two races held in Q1 2025 versus three in Q1 2024**[10](index=10&type=chunk) Formula 1 Operating Results (Q1 2025 vs. Q1 2024) | Metric | 1Q24 (in millions) | 1Q25 (in millions) | % Change | | :--- | :--- | :--- | :--- | | **Total F1 Revenue** | $553 | $403 | (27)% | | **Adjusted OIBDA** | $208 | $85 | (59)% | | **Operating Income (Loss)** | $136 | $(28) | NM | - Primary F1 revenue **decreased** across race promotion, media rights, and sponsorship due to the calendar variance, partially offset by contractual fee increases, F1 TV subscription growth, and new sponsor revenue[11](index=11&type=chunk) - Selling, general and administrative expenses **increased** primarily due to higher marketing costs for the 75th season launch event and increased personnel costs[12](index=12&type=chunk) [Corporate and Other Operating Results](index=6&type=section&id=Corporate%20and%20Other%20Operating%20Results) Corporate and Other revenue increased in Q1, driven by Quint's NBA and F1 Experiences, and **$6 million** in Las Vegas Grand Prix Plaza rental income - **Revenue growth** was driven by Quint's results, particularly from NBA Experiences and F1 Experiences across the two races held in the quarter[13](index=13&type=chunk) - The Las Vegas Grand Prix Plaza generated **$6 million in rental income** during the first quarter, compared to $7 million in the prior year period[13](index=13&type=chunk) [Liberty Live Group](index=6&type=section&id=Liberty%20Live%20Group) Liberty Live Group, primarily holding an interest in Live Nation, was allocated **$4 million** in corporate-level SG&A expenses during Q1 2025 - The businesses and assets attributed to Liberty Live Group consist of **Liberty Media's interest in Live Nation** and other minority investments[15](index=15&type=chunk) - In Q1 2025, **$4 million** of corporate level selling, general and administrative expense was allocated to the Liberty Live Group[14](index=14&type=chunk) [Corporate Financial Position](index=6&type=section&id=Corporate%20Financial%20Position) As of Q1 2025, Liberty Media maintained a strong financial position with **$3.1 billion** cash, **$1.1 billion** share repurchase authorization, and **$4.6 billion** total debt [Share Repurchases](index=6&type=section&id=Share%20Repurchases) Liberty Media did not repurchase common stock in Q1 2025, retaining **$1.1 billion** in remaining share repurchase authorization as of May 1, 2025 - **No repurchases** of Liberty Media's common stock occurred between February 1 and April 30, 2025[16](index=16&type=chunk) - The total remaining repurchase authorization for Liberty Media as of May 1, 2025 is **$1.1 billion**[16](index=16&type=chunk) [Fair Value of Corporate Public Holdings](index=8&type=section&id=Fair%20Value%20of%20Corporate%20Public%20Holdings) As of March 31, 2025, Liberty Media's public holdings, primarily its Live Nation investment, totaled **$9.094 billion** in fair value Fair Value of Public Holdings (as of March 31, 2025) | Group | Holding | Value (in millions) | | :--- | :--- | :--- | | Liberty Live Group | Live Nation Investment | $9,094 | | **Total Liberty Media** | | **$9,094** | [Cash and Debt](index=9&type=section&id=Cash%20and%20Debt) As of Q1 2025, Liberty Media's consolidated cash was **$3.15 billion** and total GAAP debt **$4.56 billion**, with Formula One Group's cash increasing and Liberty Live Group's cash decreasing Cash and Debt Summary (as of March 31, 2025) | Category | Formula One Group | Liberty Live Group | Total Consolidated (GAAP) | | :--- | :--- | :--- | :--- | | **Cash & Equivalents** | $2,833 million | $314 million | $3,147 million | | **Total Debt (GAAP)** | $2,982 million | $1,582 million | $4,564 million | - Formula One Group's cash **increased by $202 million** during Q1, driven by cash from operations at F1, partially offset by a **$131 million payment** for the MotoGP acquisition[25](index=25&type=chunk) - Liberty Live Group's cash **decreased by $11 million** in Q1, mainly due to interest payments and corporate overhead[26](index=26&type=chunk) [Consolidated Financial Statements](index=12&type=section&id=Consolidated%20Financial%20Statements) Q1 2025 consolidated financial statements reflect fewer F1 races, reporting **$447 million** revenue, **$5 million** net income, **$13.3 billion** total assets, and **$381 million** positive operating cash flow [Balance Sheet](index=12&type=section&id=Balance%20Sheet) As of March 31, 2025, Liberty Media's balance sheet reported **$13.285 billion** in total assets, **$6.226 billion** in total liabilities, and **$4.534 billion** in long-term debt Consolidated Balance Sheet Summary (March 31, 2025) | Category | Amount (in millions) | | :--- | :--- | | **Total Current Assets** | $3,667 | | *Cash and cash equivalents* | *$3,147* | | **Total Assets** | **$13,285** | | **Total Current Liabilities** | $1,446 | | **Long-term debt** | $4,534 | | **Total Liabilities** | **$6,226** | | **Total Equity** | $7,059 | [Statement of Operations](index=13&type=section&id=Statement%20of%20Operations) In Q1 2025, Liberty Media's total revenue was **$447 million**, resulting in a consolidated operating loss of **$71 million** and net earnings of **$5 million** attributable to stockholders Consolidated Statement of Operations (Q1 2025 vs Q1 2024) | Metric (in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Total Revenue** | $447 | $587 | | **Operating Income (Loss)** | $(71) | $93 | | **Net Earnings (Loss) Attributable to Liberty Stockholders** | $5 | $203 | [Statement of Cash Flows](index=15&type=section&id=Statement%20of%20Cash%20Flows) In Q1 2025, Liberty Media generated **$381 million** in operating cash flow, used **$181 million** in investing activities (including a **$131 million** acquisition payment), resulting in a net cash increase of **$191 million** Consolidated Statement of Cash Flows Summary (Q1 2025) | Category (in millions) | Amount | | :--- | :--- | | Net cash provided by operating activities | $381 | | Net cash used by investing activities | $(181) | | Net cash used by financing activities | $(13) | | **Net increase in cash** | **$191** | - Cash used in investing activities included a **$131 million payment** for acquisitions, net of cash acquired[38](index=38&type=chunk) [NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTAL DISCLOSURES](index=17&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES%20AND%20SUPPLEMENTAL%20DISCLOSURES) This section reconciles Adjusted OIBDA to operating income, showing Formula One Group's **$67 million** operating loss adjusted to **$73 million** Adjusted OIBDA, and Liberty Live Group's **$4 million** Adjusted OIBDA loss - Liberty Media defines **Adjusted OIBDA** as operating income (loss) plus depreciation and amortization, stock-based compensation, separately reported litigation settlements, Concorde incentive payments, and restructuring, acquisition, and impairment charges[42](index=42&type=chunk) Reconciliation of Operating Income (Loss) to Adjusted OIBDA (Q1 2025) | Group (in millions) | Operating Income (Loss) | Adjustments | Adjusted OIBDA | | :--- | :--- | :--- | :--- | | **Formula One Group** | $(67) | $140 | $73 | | **Liberty Live Group** | $(4) | $0 | $(4) |

Part I [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Liberty Media Corporation's unaudited condensed consolidated financial statements and detailed notes for the period ended March 31, 2025 Condensed Consolidated Balance Sheets | Metric | March 31, 2025 (millions) | December 31, 2024 (millions) | | :-------------------------------- | :-------------------------- | :--------------------------- | | Total Assets | $13,285 | $12,948 | | Total Liabilities | $6,226 | $5,897 | | Total Equity | $7,059 | $7,051 | | Cash and cash equivalents | $3,147 | $2,956 | | Deferred revenue | $1,009 | $267 | - Total assets increased by **$337 million** from December 31, 2024, to March 31, 2025, primarily driven by an increase in **cash and cash equivalents** and a significant rise in **deferred revenue**[9](index=9&type=chunk) Condensed Consolidated Statements of Operations | Metric | Three months ended March 31, 2025 (millions) | Three months ended March 31, 2024 (millions) | | :------------------------------------------------- | :----------------------------------------- | :----------------------------------------- | | Total Revenue | $447 | $587 | | Operating Income (Loss) | $(71) | $93 | | Net Earnings (Loss) | $5 | $245 | | Net Earnings (Loss) attributable to Liberty stockholders | $5 | $203 | | Basic EPS (Formula One common stock) | $0.09 | $0.33 | | Basic EPS (Liberty Live common stock) | $(0.18) | $(0.79) | - Total revenue decreased by **$140 million**, and operating income shifted from a gain of **$93 million** to a loss of **$71 million** year-over-year for the three months ended March 31, 2025. Net earnings attributable to Liberty stockholders also saw a significant decline from **$203 million** to **$5 million**, largely due to the discontinued operations of Liberty SiriusXM in the prior year[16](index=16&type=chunk)[33](index=33&type=chunk) Condensed Consolidated Statements of Comprehensive Earnings (Loss) | Metric | Three months ended March 31, 2025 (millions) | Three months ended March 31, 2024 (millions) | | :---------------------------------------------------------------- | :----------------------------------------- | :----------------------------------------- | | Net earnings (loss) | $5 | $245 | | Other comprehensive earnings (loss) from continuing operations | $5 | $(30) | | Other comprehensive earnings (loss) from discontinued operations | $— | $(40) | | Comprehensive earnings (loss) attributable to Liberty stockholders | $10 | $133 | - Comprehensive earnings attributable to Liberty stockholders decreased from **$133 million** in Q1 2024 to **$10 million** in Q1 2025, primarily due to the absence of discontinued operations and a shift in credit risk on fair value debt instruments[23](index=23&type=chunk) Condensed Consolidated Statements of Cash Flows | Cash Flow Activity | Three months ended March 31, 2025 (millions) | Three months ended March 31, 2024 (millions) | | :----------------------------------- | :----------------------------------------- | :----------------------------------------- | | Net cash provided (used) by operating activities | $381 | $131 | | Net cash provided (used) by investing activities | $(181) | $(296) | | Net cash provided (used) by financing activities | $(13) | $(9) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $191 | $(337) | | Cash, cash equivalents and restricted cash at end of period | $3,154 | $1,691 | - Net cash provided by operating activities significantly increased to **$381 million** in Q1 2025 from **$131 million** in Q1 2024, while net cash used in investing activities decreased. The company saw a net increase in cash of **$191 million**, a reversal from a **$337 million** decrease in the prior year[26](index=26&type=chunk) Condensed Consolidated Statements of Equity | Equity Component | Balance at March 31, 2025 (millions) | Balance at January 1, 2025 (millions) | | :--------------------------------- | :--------------------------------- | :-------------------------------- | | Total Stockholders' Equity | $7,037 | $7,029 | | Noncontrolling interests | $22 | $22 | | Total Equity | $7,059 | $7,051 | - Total equity increased slightly from **$7,051 million** at January 1, 2025, to **$7,059 million** at March 31, 2025, driven by net earnings and other comprehensive earnings[28](index=28&type=chunk) (1) Basis of Presentation - Liberty Media Corporation is primarily engaged in media and entertainment, with its most significant subsidiary being **Delta Topco Limited (parent of Formula 1)** and its most significant equity investment being **Live Nation Entertainment, Inc.**[32](index=32&type=chunk) - The company is in the process of acquiring approximately **86% of Dorna Sports, S.L.** for **€3.0 billion**, with regulatory review extending to **June 30, 2025**, and a **€126 million** prepaid purchase consideration[37](index=37&type=chunk)[39](index=39&type=chunk)[144](index=144&type=chunk) - Formula 1 revenue and expenses are seasonal, generally **lower in the first quarter** due to the timing of World Championship race events[43](index=43&type=chunk) (2) Discontinued Operations - On September 9, 2024, Liberty completed the split-off of **Liberty Sirius XM Holdings**, which is now presented as a **discontinued operation** in the financial statements, reflecting a strategic shift[45](index=45&type=chunk)[49](index=49&type=chunk) | Metric | Three months ended March 31, 2024 (millions) | | :------------------------------------------------- | :----------------------------------------- | | Revenue | $2,162 | | Operating income (loss) | $409 | | Net earnings (loss) from discontinued operations | $241 | | Net earnings (loss) from discontinued operations attributable to Liberty stockholders | $199 | (3) Tracking Stocks - Liberty's common stock was reclassified on **August 3, 2023**, into **Liberty SiriusXM, Liberty Formula One, and Liberty Live tracking stocks**. Liberty SiriusXM was subsequently split off on **September 9, 2024**[54](index=54&type=chunk)[58](index=58&type=chunk) - The Formula One Group primarily includes Liberty's interests in **Formula 1** and **QuintEvents**, with cash and cash equivalents of approximately **$2,833 million** as of March 31, 2025[56](index=56&type=chunk)[140](index=140&type=chunk) - The Liberty Live Group is primarily comprised of Liberty's interest in **Live Nation**, cash, and other minority investments, with cash and cash equivalents of approximately **$314 million** as of March 31, 2025[57](index=57&type=chunk)[141](index=141&type=chunk) - Liberty is pursuing a plan to split off the **Liberty Live Group**, which would result in **Liberty Live Holdings, Inc. becoming a separate public company** and Liberty Formula One common stock no longer being a tracking stock[59](index=59&type=chunk)[61](index=61&type=chunk)[145](index=145&type=chunk) (4) Stock-Based Compensation | Metric | Three months ended March 31, 2025 (millions) | Three months ended March 31, 2024 (millions) | | :-------------------------- | :----------------------------------------- | :----------------------------------------- | | Stock-based compensation expense | $2 | $13 | - Total unrecognized compensation cost related to unvested Awards was approximately **$13 million** as of March 31, 2025, to be recognized over a weighted average period of approximately **1.4 years**[70](index=70&type=chunk) (5) Earnings Attributable to Liberty Media Corporation Stockholders Per Common Share | Metric | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :------------------------------------------------- | :-------------------------------- | :-------------------------------- | | Basic EPS (Series A, B and C Liberty Formula One) | $0.09 | $0.33 | | Diluted EPS (Series A, B and C Liberty Formula One) | $0.05 | $0.32 | | Basic EPS (Series A, B and C Liberty Live) | $(0.18) | $(0.79) | | Diluted EPS (Series A, B and C Liberty Live) | $(0.18) | $(0.79) | - Basic and diluted EPS for Liberty Formula One common stock decreased significantly year-over-year, while Liberty Live common stock continued to report losses, though the **basic loss per share improved**[20](index=20&type=chunk) (6) Assets and Liabilities Measured at Fair Value | Description | March 31, 2025 (millions) | December 31, 2024 (millions) | | :-------------------------- | :-------------------------- | :--------------------------- | | Cash equivalents | $2,765 | $2,466 | | Financial instrument assets | $134 | $167 | | Debt | $2,165 | $2,144 | | Financial instrument liabilities | $30 | $138 | | Realized and Unrealized Gains (Losses) | Three months ended March 31, 2025 (millions) | Three months ended March 31, 2024 (millions) | | :--------------------------------------- | :----------------------------------------- | :----------------------------------------- | | Debt measured at fair value | $(1) | $(69) | | Foreign currency forward contracts | $108 | $— | | Interest rate swaps | $(35) | $41 | | Debt and equity securities | $(7) | $12 | | Total | $65 | $(21) | - The company reported a net realized and unrealized gain of **$65 million** on financial instruments for Q1 2025, a significant improvement from a **$21 million loss** in Q1 2024, primarily driven by gains on foreign currency forward contracts[91](index=91&type=chunk) (7) Investments in Affiliates Accounted for Using the Equity Method | Investment | March 31, 2025 Carrying Amount (millions) | December 31, 2024 Carrying Amount (millions) | | :------------------- | :--------------------------------------- | :----------------------------------------- | | Live Nation (30% ownership) | $451 | $430 | | Consolidated Liberty Total | $510 | $491 | | Share of Earnings (Losses) | Three months ended March 31, 2025 (millions) | Three months ended March 31, 2024 (millions) | | :--------------------------- | :----------------------------------------- | :----------------------------------------- | | Live Nation | $4 | $(20) | | Consolidated Liberty Total | $1 | $(24) | - Liberty's share of earnings from affiliates improved significantly, moving from a **$24 million loss** in Q1 2024 to a **$1 million gain** in Q1 2025, primarily due to **Live Nation's improved performance**[94](index=94&type=chunk) (8) Long-Term Debt | Debt Category | March 31, 2025 Principal (millions) | March 31, 2025 Carrying Value (millions) | | :------------------------------------ | :---------------------------------- | :--------------------------------------- | | Formula One Group Total | $2,902 | $2,982 | | Liberty Live Group Total | $1,150 | $1,582 | | Total Debt | $4,052 | $4,564 | | Total Long-Term Debt | | $4,534 | - Formula 1 refinanced its Senior Loan Facilities on **September 19, 2024**, extending maturities and reducing the Term Loan B margin to **2.0%**. The weighted average interest rate on these facilities was approximately **6.16%** as of March 31, 2025[105](index=105&type=chunk) - Incremental Term Loans of **$850 million (Term Loan B)** and **$150 million (Term Loan A)** are conditioned upon the consummation of the Dorna acquisition[106](index=106&type=chunk) (9) Commitments and Contingencies - Formula 1 paid a one-time incentive of **$50 million** to the 10 teams for signing the **2026 Concorde Commercial Agreement**, which extends arrangements until **December 31, 2030**[111](index=111&type=chunk) - The company has contingent liabilities related to legal and tax proceedings, but management expects any required amounts to satisfy these contingencies will **not be material**[113](index=113&type=chunk) (10) Information About Liberty's Operating Segments - Liberty identifies **Formula 1** as a reportable segment, which is a global motorsports business holding exclusive commercial rights to the World Championship[118](index=118&type=chunk) - Adjusted OIBDA is defined as **revenue less operating and SG&A expenses**, excluding specific non-recurring and non-cash items[117](index=117&type=chunk) | Segment Performance (Adjusted OIBDA) | Three months ended March 31, 2025 (millions) | Three months ended March 31, 2024 (millions) | | :----------------------------------- | :----------------------------------------- | :----------------------------------------- | | Formula One Group | $73 | $202 | | Liberty Live Group | $(4) | $(1) | | Consolidated Liberty | $69 | $201 | - Consolidated Adjusted OIBDA decreased by **$132 million** year-over-year, primarily due to a decrease in **Formula 1's Adjusted OIBDA**[152](index=152&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes Liberty Media Corporation's Q1 2025 financial condition, operating results, and segment performance Overview - Liberty Media Corporation holds controlling and non-controlling interests in media and entertainment companies, with **Formula 1** as its most significant operating subsidiary and **Live Nation** as a key equity method investment[132](index=132&type=chunk)[134](index=134&type=chunk) - The company completed the split-off of **Liberty Sirius XM Holdings** on **September 9, 2024**, and is pursuing a plan to split off the **Liberty Live Group**, which would make Liberty Formula One common stock no longer a tracking stock[137](index=137&type=chunk)[145](index=145&type=chunk) - Liberty is in the process of acquiring approximately **86% of Dorna Sports, S.L.** for **€3.0 billion**, with regulatory review extending to **June 30, 2025**[144](index=144&type=chunk) Consolidated Operating Results | Metric | Three months ended March 31, 2025 (millions) | Three months ended March 31, 2024 (millions) | | :-------------------------- | :----------------------------------------- | :----------------------------------------- | | Total Revenue | $447 | $587 | | Operating Income (Loss) | $(71) | $93 | | Adjusted OIBDA | $69 | $201 | | Stock-based compensation | $2 | $13 | | Acquisition costs | $11 | $9 | | Concorde incentive payments | $50 | $— | - Consolidated revenue decreased by **$140 million**, and operating income shifted to a loss of **$71 million** from a **$93 million gain**, primarily due to a decrease in Formula 1 revenue and operating results[148](index=148&type=chunk)[149](index=149&type=chunk) - Adjusted OIBDA decreased by **$132 million**, mainly driven by a decline in **Formula 1's Adjusted OIBDA**, and included a **$50 million Concorde incentive payment** in Q1 2025[152](index=152&type=chunk) Other Income and Expense | Metric | Three months ended March 31, 2025 (millions) | Three months ended March 31, 2024 (millions) | | :------------------------------------------------- | :----------------------------------------- | :----------------------------------------- | | Interest expense | $(55) | $(62) | | Share of earnings (losses) of affiliates, net | $1 | $(24) | | Realized and unrealized gains (losses) on financial instruments, net | $65 | $(21) | | Other, net | $36 | $21 | | Earnings (loss) from continuing operations before income taxes | $(24) | $7 | | Income tax (expense) benefit | $29 | $(3) | - Interest expense decreased by **$7 million** due to lower average debt and reduced interest rates on Formula 1's Senior Loan Facilities[154](index=154&type=chunk) - A significant shift from a **$21 million net loss** to a **$65 million net gain** on financial instruments was primarily driven by foreign currency forward contracts[156](index=156&type=chunk) - The company reported a net tax benefit of **$29 million** on a **$24 million loss** from continuing operations before income taxes in Q1 2025, compared to a **$3 million tax expense** on a **$7 million gain** in Q1 2024[158](index=158&type=chunk) Material Changes in Financial Condition | Cash and Cash Equivalents (March 31, 2025) | Amount (millions) | | :----------------------------------------- | :---------------- | | Formula One Group | $2,833 | | Liberty Live Group | $314 | | Total | $3,147 | - Liberty's primary use of cash in Q1 2025 was a **$131 million extension payment** for the Dorna acquisition, accounted for as prepaid purchase consideration[165](index=165&type=chunk) - Formula 1 distributed **$131 million** to Liberty during Q1 2025, with the restricted payment test met, and had **$33 million in capital expenditures**[163](index=163&type=chunk)[166](index=166&type=chunk) - The company believes its available liquidity sources are **sufficient to cover projected future uses of cash**, including capital expenditures, investments, debt service, and potential stock buybacks[167](index=167&type=chunk)[169](index=169&type=chunk) Results of Operations—Businesses | Formula 1 Operating Results | Three months ended March 31, 2025 (millions) | Three months ended March 31, 2024 (millions) | | :------------------------------------------ | :----------------------------------------- | :----------------------------------------- | | Total Formula 1 revenue | $403 | $553 | | Adjusted OIBDA | $85 | $208 | | Operating income (loss) | $(28) | $136 | | Number of Events | 2 | 3 | - Total Formula 1 revenue decreased by **$150 million**, and operating income shifted to a **$28 million loss** from a **$136 million gain**, primarily due to **one less World Championship event** held in Q1 2025 compared to Q1 2024[172](index=172&type=chunk)[173](index=173&type=chunk) - Other Formula 1 revenue decreased by **$6 million**, mainly due to lower hospitality and experiences revenue, partially offset by higher freight income and licensing revenue[175](index=175&type=chunk) - Cost of Formula 1 revenue decreased by **$44 million**, driven by lower team payments due to fewer events, but other costs increased due to higher freight and commissions[176](index=176&type=chunk)[177](index=177&type=chunk)[178](index=178&type=chunk) - Selling, general and administrative expenses increased by **$17 million** due to higher marketing costs for the 75th season launch and increased personnel costs[179](index=179&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section outlines Liberty Media Corporation's market risk exposure from interest rates and stock prices, managed via debt and financial instruments - Liberty is exposed to market risk from changes in interest rates due to borrowing and investment activities, managing this through a mix of **fixed and variable rate debt**[182](index=182&type=chunk) | Debt Type (March 31, 2025) | Principal Amount (millions) | Weighted Average Interest Rate | | :------------------------- | :-------------------------- | :----------------------------- | | Formula One Group Variable Rate | $176 | 6.2% | | Formula One Group Fixed Rate | $2,726 | 4.4% | | Liberty Live Group Fixed Rate | $1,150 | 2.4% | - The company is exposed to stock price changes due to significant holdings in publicly traded securities, such as **Live Nation**, and uses **equity collars** to manage associated market risk[183](index=183&type=chunk)[184](index=184&type=chunk) [Item 4. Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) As of March 31, 2025, management concluded Liberty Media Corporation's disclosure controls and procedures were effective - The company's disclosure controls and procedures were deemed **effective** as of March 31, 2025, providing reasonable assurance that required information is recorded, processed, summarized, and reported timely[185](index=185&type=chunk) - **No material changes** in internal control over financial reporting occurred during the three months ended March 31, 2025[186](index=186&type=chunk) Part II [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to legal proceedings disclosed in the 2024 Annual Report on Form 10-K, with no material changes - **No material changes** to legal proceedings from those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[187](index=187&type=chunk) [Item 1A. Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) This section updates risk factors, highlighting adverse effects of U.S. dollar fluctuations on Formula 1 profitability and reduced consumer demand - Fluctuations in the U.S. dollar against Formula 1's functional currencies (e.g., pound sterling, Euro) could **adversely affect profitability**, especially as counterparties' payments are often in U.S. dollars while their revenue is in other currencies[190](index=190&type=chunk) - Weak and uncertain economic conditions, including rising inflation and elevated interest rates, may **reduce consumer discretionary spending**, thereby adversely affecting demand for the company's products, services, and events[191](index=191&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20Securities%20and%20Use%20of%20Proceeds) This section reports on share repurchase programs and equity security transactions, noting no repurchases of Liberty Formula One or Liberty Live common stock in Q1 2025 - **No repurchases** of Liberty Formula One common stock or Liberty Live common stock occurred during the three months ended March 31, 2025[193](index=193&type=chunk) - Approximately **$1.1 billion** remained available for future share repurchases under the approved program as of March 31, 2025[193](index=193&type=chunk) [Item 5. Other Information](index=40&type=section&id=Item%205.%20Other%20Information) This section states no Rule 10b5-1 trading arrangements were adopted or terminated by directors or officers during Q1 2025 - **No Rule 10b5-1 trading arrangements** were adopted or terminated by directors or officers during the fiscal quarter ended March 31, 2025[195](index=195&type=chunk) [Item 6. Exhibits](index=40&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed as part of the Quarterly Report on Form 10-Q, including various agreements, certifications, and XBRL documents - The report includes exhibits such as the **3rd Amendment Agreement**, **Rule 13a-14(a)/15d-14(a) Certifications**, **Section 1350 Certification**, **Unaudited Attributed Financial Information for Tracking Stock Groups**, and **Inline XBRL documents**[196](index=196&type=chunk)

Financial Performance - Formula One Group reported a total revenue of $3,653 million for the year ended December 31, 2024, a 6% increase from $3,222 million in 2023[7] - Adjusted OIBDA for Formula One Group was $774 million for the full year 2024, reflecting a 13% increase from $686 million in 2023[7] - The operating income for Formula One Group increased by 3% to $287 million in 2024, compared to $297 million in 2023[7] - Formula 1 revenue for the twelve months ended December 31, 2024, was $3,318 million, an increase from $3,222 million in 2023[38] - Operating income for Liberty Media Corporation was $276 million for the twelve months ended December 31, 2024, compared to $255 million in 2023[38] Attendance and Events - F1 fan attendance reached 6.5 million in 2024, up 9% compared to 2023[2] - The number of races held in 2024 increased to 24 from 22 in 2023, contributing to revenue growth[12] Debt and Cash Management - Total cash and cash equivalents attributed to Formula One Group decreased by $35 million during Q4 2024, primarily due to cash used in operations and capital expenditures[30] - Total debt attributed to Formula One Group remained relatively flat at $2,928 million as of December 31, 2024, compared to $2,992 million in the previous quarter[30] - Total cash and cash equivalents attributed to Liberty Live Group decreased by $63 million during Q4 2024, mainly due to debt reduction and interest payments[31] - Total attributed Liberty Live Group debt decreased by $50 million during the quarter, settling the remaining 0.5% Live Nation exchangeable senior debentures due 2050[31] - The total cash, cash equivalents, and restricted cash at the end of the period was $2,028 million, down from $2,276 million at the beginning of the period[45] Strategic Initiatives - Liberty Media's investment in Live Nation had a fair value of $9.0 billion as of December 31, 2024[2] - Liberty Media extended the regulatory approval date for the MotoGP acquisition to June 30, 2025[2] - The company expects to pursue strategic priorities in 2025, including the planned acquisition of MotoGP[33] Earnings and Impairments - Net earnings attributable to Liberty stockholders for the twelve months ended December 31, 2024, were a loss of $2,063 million, significantly impacted by discontinued operations[38] - Liberty Media incurred $32 million in costs related to corporate acquisitions and a $73 million non-cash impairment charge related to Quint goodwill during the year ended December 31, 2024[50] - The company experienced a loss from discontinued operations amounting to $986 million, impacting overall net earnings[45] Cash Flow - Net cash provided by operating activities for Liberty Media was $634 million, with a net earnings of $962 million for the twelve months ended December 31, 2023[45] - The company reported a net cash used in investing activities of $544 million, primarily due to capital expenditures of $461 million for property and equipment[45] - Liberty Media's net cash provided by financing activities was $(285) million, which included $1,165 million in borrowings of debt and $1,008 million in debt repayments[45] Other Financial Metrics - Team payments as a percentage of pre-team payment Adjusted OIBDA decreased from 62.6% in 2023 to 61.5% in 2024[16] - The fair market value adjustment for Formula One Group debt was $15 million as of September 30, 2024, and $84 million as of December 31, 2024[30] - Adjusted OIBDA for the Formula One Group was $686 million for 2023, while the Liberty Live Group reported an Adjusted OIBDA of $(9) million[50] - The Formula One Group's operating income for 2023 was $297 million, with depreciation and amortization expenses of $369 million[50] - Cash provided by discontinued operations from operating activities was $1,830 million, while cash used in investing activities was $(696) million[45] - The effect of foreign exchange rate changes on cash was a decrease of $10 million[45]