Revenue Growth - Formula 1 revenue increased 14% to $3.9 billion for the year, with operating income growing 28% to $632 million and Adjusted OIBDA rising 20% to $946 million[1]. - MotoGP revenue also increased 14% to $573 million, with operating income growing 86% to $54 million and Adjusted OIBDA increasing 15% to $201 million on a pro forma basis[1]. - Liberty Media's consolidated revenue for 2025 was $4.48 billion, up from $3.65 billion in 2024, representing a 23% increase[7]. - Total revenue for 2025 reached $4,482 million, a 22.7% increase from $3,653 million in 2024[48]. - Motorsport revenue increased to $4,105 million in 2025, up 23.7% from $3,318 million in 2024[48]. Attendance and Viewership - F1 fan attendance reached 6.75 million, up 4% compared to 2024, while live viewership increased by 21%[1]. - MotoGP fan attendance exceeded 3.66 million, marking a 21% increase compared to 2024, with cumulative TV viewership up 9%[1]. - The Las Vegas Grand Prix sold out, attracting over 300,000 attendees and generating 1.8 billion social impressions[1]. Financial Performance - Operating income for 2025 was $577 million, compared to $287 million in 2024, reflecting a 101.0% increase[48]. - Net earnings attributable to Liberty stockholders for 2025 were $555 million, a significant recovery from a loss of $2,063 million in 2024[48]. - Adjusted OIBDA for 2025 was $1,068 million, up from $774 million in 2024, indicating a 37.9% increase[54]. - Cash flows from operating activities improved to $908 million in 2025, compared to $567 million in 2024[50]. Debt and Cash Management - Total cash and cash equivalents decreased to $1,055 million as of December 31, 2025, down from $2,631 million in 2024[1]. - Total debt as of December 31, 2025, was $5,100 million, slightly down from $5,164 million in the previous quarter[1]. - Interest expense increased to $249 million in 2025 from $208 million in 2024, reflecting higher borrowing costs[48]. - The company reported a net cash used by investing activities of $3,202 million in 2025, compared to $292 million in 2024[50]. Race and Revenue Streams - Primary Formula 1 revenue streams for 2025 comprised 26.7% from race promotion, 31.3% from media rights fees, and 21.7% from sponsorship fees[11]. - The number of races in 2025 included 24 for the full year and 7 in the fourth quarter, compared to 24 and 6 in 2024 respectively[12]. - The number of races held in 2025 was 22, compared to 20 in 2024, contributing to increased race promotion revenue[1]. - Primary MotoGP revenue for the year ended December 31, 2025, was $502 million, a 15% increase compared to $435 million in 2024[1]. - Total motorsport revenue increased to $573 million in 2025, reflecting a 14% growth from $503 million in 2024[1]. Corporate Actions - Liberty Media completed the split-off of Liberty Live Holdings on December 15, 2025, resulting in separate trading of the two companies[3]. - Liberty Media's remaining repurchase authorization for common stock is $1.1 billion as of February 1, 2026[1]. - The company incurred $3,267 million in cash for acquisitions in 2025, a substantial increase from $205 million in 2024[50]. - Team payments as a percentage of pre-team payment Adjusted OIBDA decreased from 61.5% in 2024 to 59.7% in 2025[16]. - MotoGP leverage improved to 4.7x as of December 31, 2025, compared to 5.6x in the previous quarter[1].

Economic Risks - The company is facing risks related to its corporate history, macroeconomic conditions, and industry dynamics, which may affect the success of acquisitions and strategic investments [109]. - Weak economic conditions may reduce consumer demand for the company's products and services, impacting revenue derived from discretionary spending [112]. - The company is unable to predict the extent of adverse effects from economic conditions, inflationary pressures, and rising interest rates on its financial performance [112]. - The company may face challenges in obtaining future financing on acceptable terms due to global economic volatility and elevated interest rates [125]. - The company faces significant risks from potential future pandemics or epidemics, which could materially impact revenue and cash flow, similar to the effects seen during COVID-19 [124]. - The company is sensitive to reductions in travel and discretionary consumer spending, which could be exacerbated by economic downturns [122]. Financial Performance and Projections - The unaudited pro forma financial information for the acquisition of MotoGP is illustrative and does not represent actual results, indicating potential future discrepancies in financial performance [110]. - Future results may differ significantly from pro forma financial information due to various factors, including economic conditions and operational synergies from acquisitions [110]. - As of December 31, 2025, the company had approximately $499 million in corporate-level debt, including $475 million in 2.25% Convertible Senior Notes due 2027 [125]. - The company may incur significant tax liabilities related to the Liberty Sirius XM Holdings and Liberty Live Split-Offs if they do not qualify as tax-free transactions [115]. Operational and Compliance Risks - Operations outside the U.S. expose the company to various operational risks, including compliance with international regulations [114]. - Cybersecurity threats pose risks to the company's information systems, potentially leading to disruptions and loss of confidential data [119]. - The company's recovery and business continuity plans may not be sufficient to address potential cybersecurity incidents, which could materially impact operations [120]. - Formula 1 and MotoGP must comply with European Union competition laws, which could lead to challenges and potential sanctions if not adhered to [140]. - Compliance with privacy regulations, such as GDPR, may increase operational costs and liabilities for Formula 1 and MotoGP [168]. - The company may face increased operational costs and compliance challenges due to evolving data privacy laws across various jurisdictions [170]. Market and Competitive Risks - The ongoing popularity of Formula 1 and MotoGP is critical for securing commercial rights and sponsorships, with any decline potentially affecting revenue generation [126]. - A reduction in the number of teams participating in Formula 1 or MotoGP could diminish the appeal of these championships, impacting revenue from media rights and sponsorships [135]. - The emergence of rival motor racing series could diminish the competitive position of Formula 1 and MotoGP, adversely affecting their financial results and commercial contracts [164]. - Changes in consumer viewing habits and new content distribution platforms may negatively impact the profitability of Formula 1 and MotoGP's licensing practices [165]. - The FIA and FIM, as governing bodies, may take actions that conflict with the company's commercial interests, potentially affecting operations and revenue [136][138]. Contractual and Regulatory Risks - The 100-Year Agreements grant Formula 1 exclusive commercial rights to the F1 Championship until December 31, 2110, and any termination could severely disrupt operations [129]. - The FIM Agreement provides MotoGP with exclusive rights to manage the MotoGP Championship until December 31, 2060, and its termination could lead to operational discontinuation [130]. - The inability to renew or replace contracts on favorable terms could lead to decreased payments and potential cancellations of events, adversely affecting financial performance [143]. - The minimum number of events required for broadcast contracts typically ranges from 14 to 16 for Formula 1 and 16 to 20 for MotoGP, with potential fee reductions if these numbers are not met [160]. - Formula 1 and MotoGP's insurance policies do not cover event cancellations due to factors beyond their control, which could lead to significant financial losses [160]. - Changes in tax laws, such as the OECD's new "Two Pillar" approach, could impose higher effective tax rates on Formula 1 and MotoGP, impacting their financial results [149][150]. Governance and Ownership Risks - The company has overlapping directors and management with other entities, which may lead to conflicts of interest in pursuing acquisitions and business opportunities [113]. - Mr. Malone holds approximately 49% of the aggregate voting power due to his ownership of 97% of Series B common stock, influencing significant corporate actions [186]. - Mr. Malone's voting power could exceed the Target Voting Power of 49% due to his resignation from the board, potentially allowing him to control shareholder votes [187]. Currency and Interest Rate Risks - The company is exposed to market risks from adverse changes in interest rates and foreign currency exchange rates, which can impact fair values, cash flows, and future earnings [304]. - As of December 31, 2025, the company has $2,323 million in variable rate debt with a weighted average interest rate of 5.2% and $2,699 million in fixed rate debt with a weighted average interest rate of 4.3% [306]. - A significant portion of Formula 1 and MotoGP's revenue and costs were denominated in U.S. dollars and Euros in 2025, leading to potential mismatches in currency exposure [177]. - Fluctuations in currency exchange rates could adversely affect profitability and financial position, particularly with payments and revenue denominated in different currencies [177]. - A 10% change in the Euro/U.S. dollar exchange rate would impact MotoGP's reported revenue by approximately $33 million for the year ended December 31, 2025 [306]. Event-Related Risks - Formula 1 and MotoGP faced cancellations of events due to severe flooding and geopolitical issues, impacting revenue under commercial contracts [160]. - The potential for accidents during events poses risks that may not be fully covered by insurance, affecting the reputation and financial condition of Formula 1 and MotoGP [161]. - Terrorist acts during events could lead to cancellations and increased security costs, impacting attendance and financial performance [162]. - Confidential information leaks could harm relationships with counterparties, resulting in less favorable commercial contracts for Formula 1 and MotoGP [166].

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 Expenses - 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] - Formula 1's operating expenses decreased by 2% to $552 million in Q3 2025, compared to $561 million in Q3 2024[11] - 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] - Operating income for the three months ended September 30, 2025, was $28 million, a decline of 22% compared to $36 million in the same period of 2024[20] Cash Flow and Assets - Cash flows from operating activities for the nine months ended September 30, 2025, amounted to $785 million, compared to $1,315 million in the same period of 2024, showing a decrease of approximately 40.3%[49][51] - Cash and cash equivalents at the end of the period on September 30, 2025, were $1,588 million, a decrease from $2,963 million at the end of the same period in 2024, reflecting a decline of approximately 46.5%[49][51] - Total assets as of September 30, 2025, were $17,821 million, an increase from $16,360 million as of September 30, 2024, representing a growth of approximately 8.9%[42][46] - Cash, cash equivalents, and restricted cash at the end of the period totaled $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] - 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] - MotoGP leverage was reported at 5.6x as of September 30, 2025[32] - Liberty Media remains in compliance with its debt covenants as of September 30, 2025[34] Earnings and Adjusted OIBDA - 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] - Adjusted OIBDA decreased by 10% to $66 million for the three months ended September 30, 2025, and by 3% to $150 million for the nine months ended September 30, 2025[20] - Adjusted OIBDA for the Formula One Group was $207 million for Q3 2024 and $297 million for Q3 2025, with a nine-month total of $574 million for 2024 and $739 million for 2025[56] Acquisition and Costs - The company incurred acquisition costs of $14 million for the three months ended September 30, 2025, compared to $3 million in the same period of 2024, reflecting an increase of approximately 366.7%[45][47] - The company reported a depreciation and amortization expense of $275 million for the nine months ended September 30, 2025, compared to $88 million for the same period in 2024, indicating a significant increase[49][51] - Interest expense for the three months ended September 30, 2025, was $86 million, an increase from $62 million in the same period of 2024, representing a rise of approximately 38.7%[45][47] Future Outlook - The company expects to complete the split-off of Liberty Live Group on December 15, 2025, which will create a separate public company[5] - MotoGP's management expressed confidence in long-term growth opportunities following the acquisition, highlighting record attendance and increased digital engagement[19]

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 the Formula One Group and $297 million for the Liberty Live Group[187]. - During the nine months ended September 30, 2025, Formula One Group generated $813 million in cash from operating activities, while Liberty Live Group used $28 million[188]. - Liberty expects to fund future cash uses through cash on hand, borrowing capacity, and distributions from operating subsidiaries[190]. - The company believes available liquidity is sufficient to cover projected future cash uses[192]. - As of September 30, 2025, substantially all cash and cash equivalents were invested in highly rated financial instruments, indicating a strong liquidity position[184]. Acquisitions and Investments - The Company acquired approximately 84% of the equity interests in Dorna Sports, S.L. on July 3, 2025, making MotoGP a consolidated subsidiary[157]. - Liberty acquired approximately 84% of the equity interests of MotoGP on July 3, 2025, and consolidated MotoGP's results from that date[211]. - 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 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[161]. - The Company holds an ownership interest in Live Nation, which is accounted for as an equity method investment as of September 30, 2025[158]. - The Company is pursuing a plan to split off the Liberty Live Group, which will involve reattributing certain assets from the Formula One Group[167]. 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 and MotoGP revenues[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[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, an increase from $366 million in the prior year[195]. - MotoGP's 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, a growth of 12.4%[214][215]. - Primary revenue for the three months ended September 30, 2025, increased by $1 million to $147 million, and for the nine months, it rose by $41 million to $365 million, primarily due to additional MotoGP events and favorable currency exchange rates[215]. - MotoGP's operating income for the three months ended September 30, 2025, was $28 million, down from $36 million in the prior year, while for the nine months, it decreased to $41 million from $44 million[214]. Expenses and Costs - Operating income rose 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 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, mainly due to increases in Formula 1's Adjusted OIBDA and the acquisition of MotoGP[174]. - Selling, general and administrative expenses increased by $33 million during the nine months ended September 30, 2025, attributed to higher marketing and personnel costs[207]. - Selling, general and administrative expenses rose by $2 million to $19 million for the three months ended September 30, 2025, and by $13 million to $53 million for the nine months, primarily due to higher personnel costs[222]. - Acquisition costs related to corporate acquisitions were $14 million for the three months ended September 30, 2025, compared to $3 million in the prior year[173]. - Stock-based compensation expense was $18 million for the nine months ended September 30, 2025, down from $27 million in the prior year[172]. Debt and Interest - Interest expense increased by $24 million (38.7%) and $14 million (7.6%) for the three and nine months ended September 30, 2025, respectively, due to an increase in the average amount of debt outstanding[177]. - As of September 30, 2025, Liberty's variable rate debt was $2,333 million with a weighted average interest rate of 5.5%, and fixed rate debt was $2,723 million with a weighted average interest rate of 4.4%[226]. - The company does not have a debt rating, which may impact its borrowing capacity[186]. Taxation - 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]. Operational Risks - The Company has significant operational risks associated with its subsidiaries and business affiliates operating outside the U.S.[157].

[Executive Summary & Strategic Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Strategic%20Highlights) Liberty Media achieved significant strategic milestones and strong financial performance in Q2 2025, highlighted by the MotoGP acquisition and F1's commercial growth [Key Achievements](index=1&type=section&id=Key%20Achievements) Liberty Media reported excellent progress in Q2 2025, completing the MotoGP acquisition, advancing the Liberty Live split-off, and achieving strong financial and operating results at Formula 1, driven by commercial momentum and record fan engagement - Completed acquisition of **MotoGP** on July 3rd[2](index=2&type=chunk) - Renewed agreements for **Canadian Grand Prix through 2035** and **Austrian Grand Prix through 2041**[2](index=2&type=chunk) - Secured **PepsiCo** as new Official Partner of F1 through 2030 and extended Global Partnership with **MSC Cruises through 2030**[2](index=2&type=chunk) - Announced new licensing agreement with **Disney's Mickey & Friends** beginning in 2026[2](index=2&type=chunk) - **F1 The Movie** opened globally on June 27th, becoming Apple's highest-grossing film ever[2](index=2&type=chunk) - Fair value of **Live Nation investment was $10.5 billion** as of June 30th[2](index=2&type=chunk) - Filed preliminary proxy statement on July 25th for **Liberty Live split-off**, expected in Q4 2025[2](index=2&type=chunk) [Corporate Updates](index=3&type=section&id=Corporate%20Updates) Liberty Media completed the acquisition of MotoGP in July 2025, securing approximately 84% ownership of Dorna Sports [MotoGP Acquisition](index=3&type=section&id=MotoGP%20Acquisition) Liberty Media completed the acquisition of Dorna Sports, S.L. (MotoGP) on July 3, 2025, gaining approximately 84% ownership, with MotoGP's financial results to be consolidated from that date, though not reflected in the Q2 2025 results due to timing - 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** is attributed to the **Formula One Group** tracking stock[4](index=4&type=chunk) - Initial accounting for the acquisition is **not reflected in Q2 2025 financial results** due to timing[4](index=4&type=chunk) [Discussion of Results](index=3&type=section&id=Discussion%20of%20Results) This section details the financial performance of Formula One Group, highlighting significant revenue and income growth, and provides an overview of Liberty Live Group's financial allocations and assets [Formula One Group Financial Performance](index=3&type=section&id=Formula%20One%20Group%20Financial%20Performance) Formula One Group demonstrated significant financial growth in Q2 2025 and year-to-date, with substantial increases in revenue, operating income, and Adjusted OIBDA, primarily driven by F1's strong performance Formula One Group Financial Results (Q2 and YTD 2025 vs. 2024) | Metric | Q2 2024 (millions) | Q2 2025 (millions) | Q2 % Change | YTD 2024 (millions) | YTD 2025 (millions) | YTD % Change | | :---------------------- | :----------------- | :----------------- | :---------- | :------------------ | :------------------ | :----------- | | **Revenue** | | | | | | | | Formula 1 | $871 | $1,226 | 40.8% | $1,424 | $1,629 | 14.4% | | Corporate and other | $141 | $145 | 2.8% | $185 | $198 | 7.0% | | Intergroup elimination | $(24) | $(30) | (25.0)% | $(34) | $(39) | (14.7)% | | **Total Revenue** | **$988** | **$1,341** | **35.7%** | **$1,575** | **$1,788** | **13.5%** | | **Operating Income (Loss)** | | | | | | | | Formula 1 | $84 | $293 | 248.8% | $220 | $265 | 20.5% | | Corporate and other | $(25) | $(13) | 48.0% | $(66) | $(52) | 21.3% | | **Total Operating Income** | **$59** | **$280** | **374.6%** | **$154** | **$213** | **38.3%** | | **Adjusted OIBDA (Loss)** | | | | | | | | Formula 1 | $160 | $361 | 125.6% | $368 | $446 | 21.2% | | Corporate and other | $5 | $8 | 60.0% | $(1) | $(4) | (300.0)% | | **Total Adjusted OIBDA** | **$165** | **$369** | **123.6%** | **$367** | **$442** | **20.4%** | [F1 Operating Results](index=3&type=section&id=F1%20Operating%20Results) F1's operating results showed strong growth in Q2 2025, driven by an additional race, contractual fee increases, new sponsors, and F1 TV subscription growth, leading to significant increases in total revenue, Adjusted OIBDA, and operating income Formula 1 Operating Results (Q2 and YTD 2025 vs. 2024) | Metric | Q2 2024 (millions) | Q2 2025 (millions) | Q2 % Change | YTD 2024 (millions) | YTD 2025 (millions) | YTD % Change | | :-------------------------------------- | :----------------- | :----------------- | :---------- | :------------------ | :------------------ | :----------- | | Number of races in period | 8 | 9 | 12.5% | 11 | 11 | 0.0% | | Primary Formula 1 revenue | $739 | $1,032 | 40% | $1,202 | $1,351 | 12% | | Other Formula 1 revenue | $132 | $194 | 47% | $222 | $278 | 25% | | **Total Formula 1 revenue** | **$871** | **$1,226** | **41%** | **$1,424** | **$1,629** | **14%** | | Team payments, excluding Concorde incentive payments | $(435) | $(513) | (18)% | $(598) | $(627) | (5)% | | Other cost of Formula 1 revenue | $(210) | $(274) | (30)% | $(333) | $(402) | (21)% | | Cost of Formula 1 revenue, excluding Concorde incentive payments | $(645) | $(787) | (22)% | $(931) | $(1,029) | (11)% | | Selling, general and administrative expenses | $(66) | $(78) | (18)% | $(125) | $(154) | (23)% | | **Adjusted OIBDA** | **$160** | **$361** | **126%** | **$368** | **$446** | **21%** | | Concorde incentive payments | — | — | NM | — | $(50) | NM | | Stock-based compensation | $(1) | — | NM | $(1) | — | NM | | Depreciation and Amortization | $(75) | $(68) | 9% | $(147) | $(131) | 11% | | **Operating income (loss)** | **$84** | **$293** | **249%** | **$220** | **$265** | **20%** | - Primary F1 revenue increased due to **one additional race in Q2 2025**, higher sponsorship and media rights revenue, and one-time revenue from the **F1 movie**[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) and growth in **licensing income**[14](index=14&type=chunk)[15](index=15&type=chunk) - **Operating income and Adjusted OIBDA grew** due to revenue increases, partially offset by higher team payments, increased freight costs, commissions, partner servicing, Paddock Club costs, and personnel/marketing expenses[16](index=16&type=chunk) [Corporate and Other Operating Results](index=9&type=section&id=Corporate%20and%20Other%20Operating%20Results) Corporate and Other revenue increased in Q2 2025, primarily driven by Quint's results from F1 Experiences and the Kentucky Derby, with Grand Prix Plaza rental income remaining stable - **Corporate and Other revenue increased** in Q2 2025 due to Quint results[17](index=17&type=chunk) - Quint's Q2 results were primarily driven by **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) [Liberty Live Group Financial Overview](index=9&type=section&id=Liberty%20Live%20Group%20Financial%20Overview) Liberty Live Group was allocated $7 million in corporate-level selling, general, and administrative expenses in Q2 2025, and its primary assets include Liberty Media's interest in Live Nation and other minority investments - **$7 million of corporate-level selling, general, and administrative expense** was allocated to Liberty Live Group in Q2 2025[18](index=18&type=chunk) - Liberty Live Group's assets consist of **Liberty Media's interest in Live Nation** and other minority investments[19](index=19&type=chunk) [Share Repurchases](index=9&type=section&id=Share%20Repurchases) Liberty Media reported no common stock repurchases in Q2 2025, with a remaining repurchase authorization of $1.1 billion [Share Repurchase Activity](index=9&type=section&id=Share%20Repurchase%20Activity) Liberty Media did not repurchase any common stock between May 1 and July 31, 2025, with a remaining repurchase authorization of $1.1 billion applicable across all tracking stocks - **No repurchases of Liberty Media's common stock** occurred from May 1 through July 31, 2025[20](index=20&type=chunk) - Total remaining repurchase authorization as of August 1, 2025, is **$1.1 billion**[20](index=20&type=chunk) [Financial Statements & Debt Information](index=10&type=section&id=Financial%20Statements%20%26%20Debt%20Information) This section provides a comprehensive overview of Liberty Media's financial position, including cash, debt, balance sheet, statements of operations, and cash flows [Cash and Debt](index=10&type=section&id=Cash%20and%20Debt) Formula One Group saw an increase in cash and cash equivalents, while its debt remained relatively flat. Liberty Live Group experienced a slight decrease in cash, with its debt remaining stable, and both entities are in compliance with debt covenants Cash and Debt (as of March 31, 2025, and June 30, 2025) | Metric | 3/31/2025 (millions) | 6/30/2025 (millions) | Change (millions) | | :--------------------------------------- | :-------- | :-------- | :----- | | **Cash and Cash Equivalents Attributable to:** | | | | | Formula One Group | $2,833 | $3,140 | $307 | | Liberty Live Group | $314 | $308 | $(6) | | **Total Consolidated Cash and Cash Equivalents (GAAP)** | **$3,147** | **$3,448** | **$301** | | **Debt:** | | | | | Total Attributed Formula One Group Debt (GAAP) | $2,982 | $3,030 | $48 | | Total Attributed Liberty Live Group Debt (GAAP) | $1,582 | $1,769 | $187 | | **Total Liberty Media Corporation Debt (GAAP)** | **$4,564** | **$4,799** | **$235** | | Formula 1 leverage | 1.2x | 0.7x | -0.5x | - Total cash and cash equivalents attributed to **Formula One Group increased by $307 million** in Q2, primarily from F1 operations and derivative contract settlements, partially offset by capital expenditures[27](index=27&type=chunk) - Total debt attributed to **Formula One Group was relatively flat** in Q2[27](index=27&type=chunk) - Total cash and cash equivalents attributed to **Liberty Live Group decreased by $6 million** in Q2, primarily due to interest payments and corporate overhead[28](index=28&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 (Unaudited)](index=13&type=section&id=Balance%20Sheet%20Information%20%28Unaudited%29) As of June 30, 2025, Liberty Media Corporation reported total consolidated assets of $13,821 million, with total liabilities of $6,458 million and total equity/attributed net assets of $7,341 million Consolidated Balance Sheet (June 30, 2025) | Metric | Consolidated Liberty (millions) | | :--------------------------------------- | :------------------- | | **Assets** | | | Cash and cash equivalents | $3,448 | | Total current assets | $4,102 | | Goodwill | $4,135 | | Intangible assets subject to amortization, net | $2,570 | | **Total assets** | **$13,821** | | **Liabilities and Equity** | | | Total current liabilities | $3,103 | | Long-term debt | $2,996 | | **Total liabilities** | **$6,458** | | Equity / Attributed net assets | $7,341 | | Noncontrolling interests in equity of subsidiaries | $22 | | **Total liabilities and equity** | **$13,821** | [Statement of Operations Information (Unaudited)](index=14&type=section&id=Statement%20of%20Operations%20Information%20%28Unaudited%29) This section presents the consolidated statements of operations for Liberty Media Corporation for the three months ended June 30, 2025, and 2024, detailing revenue, operating costs, and net earnings [Three months ended June 30, 2025](index=14&type=section&id=Statement%20of%20Operations%20-%20Q2%202025) For Q2 2025, Liberty Media reported consolidated total revenue of $1,341 million, operating income of $273 million, and net earnings attributable to stockholders of $204 million Consolidated Statement of Operations (Q2 2025) | Metric | Consolidated Liberty (millions) | | :--------------------------------------- | :------------------- | | Total revenue | $1,341 | | Operating income (loss) | $273 | | Earnings (loss) before income taxes | $228 | | Net earnings (loss) attributable to Liberty stockholders | $204 | [Three months ended June 30, 2024](index=15&type=section&id=Statement%20of%20Operations%20-%20Q2%202024) For Q2 2024, Liberty Media reported consolidated total revenue of $988 million, operating income of $57 million, and net earnings attributable to stockholders of $457 million (including discontinued operations) Consolidated Statement of Operations (Q2 2024) | Metric | Consolidated Liberty (millions) | | :--------------------------------------- | :------------------- | | Total revenue | $988 | | Operating income (loss) | $57 | | Earnings (loss) from continuing operations before income taxes | $193 | | Net earnings (loss) attributable to Liberty stockholders | $457 | [Statement of Cash Flows Information (Unaudited)](index=16&type=section&id=Statement%20of%20Cash%20Flows%20Information%20%28Unaudited%29) This section details the consolidated cash flow activities for Liberty Media Corporation for the six months ended June 30, 2025, and 2024, covering operating, investing, and financing activities [Six months ended June 30, 2025](index=16&type=section&id=Cash%20Flows%20-%20YTD%202025) For YTD 2025, Liberty Media generated $612 million in net cash from operating activities, used $120 million in investing activities, and provided $8 million from financing activities, resulting in a net increase of $509 million in cash Consolidated Statement of Cash Flows (YTD 2025) | Metric | Consolidated Liberty (millions) | | :--------------------------------------- | :------------------- | | Net cash provided (used) by operating activities | $612 | | Net cash provided (used) by investing activities | $(120) | | Net cash provided (used) by financing activities | $8 | | Net increase (decrease) in cash, cash equivalents and restricted cash | $509 | | Cash, cash equivalents and restricted cash at end of period | $3,472 | [Six months ended June 30, 2024](index=17&type=section&id=Cash%20Flows%20-%20YTD%202024) For YTD 2024, Liberty Media generated $394 million in net cash from operating activities, used $200 million in investing activities, and provided $6 million from financing activities, resulting in a net increase of $81 million in cash Consolidated Statement of Cash Flows (YTD 2024) | Metric | Consolidated Liberty (millions) | | :--------------------------------------- | :------------------- | | Net cash provided (used) by operating activities | $394 | | Net cash provided (used) by investing activities | $(200) | | Net cash provided (used) by financing activities | $6 | | Net increase (decrease) in cash, cash equivalents and restricted cash | $81 | | Cash, cash equivalents and restricted cash at end of period | $2,109 | [Non-GAAP Financial Measures](index=18&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and reconciles Adjusted OIBDA, a key non-GAAP financial measure used to assess operational performance [Adjusted OIBDA Definition and Reconciliation](index=18&type=section&id=Adjusted%20OIBDA%20Definition%20and%20Reconciliation) Adjusted OIBDA is defined as operating income (loss) plus depreciation and amortization, stock-based compensation, litigation settlements, Concorde incentive payments, and restructuring/acquisition/impairment charges, serving as a key indicator of operational performance and reconciled to GAAP operating income for Formula One Group - **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 uses Adjusted OIBDA to identify items not directly reflecting business performance or ongoing trends, facilitating **analytical comparisons and performance improvement strategies**[45](index=45&type=chunk) Formula One Group Adjusted OIBDA Reconciliation (Q2 and YTD 2025 vs. 2024) | Metric | Q2 2024 (millions) | Q2 2025 (millions) | YTD 2024 (millions) | YTD 2025 (millions) | | :--------------------------- | :------ | :------ | :------- | :------- | | 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** |

Part I — Financial Information This section provides comprehensive financial statements and related disclosures for Liberty Media Corporation [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents unaudited condensed consolidated financial statements, including balance sheets, statements of operations, cash flows, and detailed notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=LIBERTY%20MEDIA%20CORPORATION%20AND%20SUBSIDIARIES%20Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's consolidated balance sheets as of June 30, 2025, and December 31, 2024 | Metric | June 30, 2025 (millions) | December 31, 2024 (millions) | Change (millions) | | :-------------------------------- | :----------------------- | :-------------------------- | :----------------- | | Total assets | $13,821 | $12,948 | +$873 | | Total liabilities | $6,458 | $5,897 | +$561 | | Total equity | $7,363 | $7,051 | +$312 | | Cash and cash equivalents | $3,448 | $2,956 | +$492 | | Current portion of debt | $1,803 | $26 | +$1,777 | | Deferred revenue | $780 | $267 | +$513 | - Total assets increased by **$873 million**, primarily driven by an increase in cash and cash equivalents[9](index=9&type=chunk) - Current portion of debt saw a **significant increase** from **$26 million** to **$1,803 million**, indicating a reclassification of long-term debt to current[9](index=9&type=chunk) [Condensed Consolidated Statements of Operations](index=5&type=section&id=LIBERTY%20MEDIA%20CORPORATION%20AND%20SUBSIDIARIES%20Condensed%20Consolidated%20Statements%20of%20Operations) This section presents the company's consolidated statements of operations for the three and six months ended June 30 | Metric (millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | YoY Change | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change | | :-------------------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------------------------- | :--------------------------- | :--------- | | Total revenue | $1,341 | $988 | +$353 | $1,788 | $1,575 | +$213 | | Operating income (loss) | $273 | $57 | +$216 | $202 | $150 | +$52 | | Net earnings (loss) from continuing operations | $204 | $158 | +$46 | $209 | $162 | +$47 | | Net earnings (loss) attributable to Liberty stockholders | $204 | $457 | -$253 | $209 | $660 | -$451 | | Basic EPS (Formula One) | $1.53 | $0.10 | +$1.43 | $1.62 | $0.43 | +$1.19 | | Basic EPS (Liberty Live) | $(1.93) | $1.46 | -$3.39 | $(2.12) | $0.66 | -$2.78 | - Total revenue increased by **$353 million** (**35.7%**) for the three months ended June 30, 2025, and by **$213 million** (**13.5%**) for the six months ended June 30, 2025, primarily driven by Formula 1 and QuintEvents[15](index=15&type=chunk)[156](index=156&type=chunk) - Operating income significantly increased by **$216 million** for the three months and **$52 million** for the six months ended June 30, 2025, mainly due to improved Formula 1 operating results[15](index=15&type=chunk)[157](index=157&type=chunk) - Net earnings attributable to Liberty stockholders decreased significantly due to the discontinued operations of Liberty SiriusXM common stock in the prior year[15](index=15&type=chunk) [Condensed Consolidated Statements of Comprehensive Earnings (Loss)](index=7&type=section&id=LIBERTY%20MEDIA%20CORPORATION%20AND%20SUBSIDIARIES%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Earnings%20%28Loss%29) This section presents the company's consolidated statements of comprehensive earnings (loss) for the periods ended June 30 | Metric (millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | YoY Change | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change | | :-------------------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------------------------- | :--------------------------- | :--------- | | Net earnings (loss) | $204 | $507 | -$303 | $209 | $752 | -$543 | | Other comprehensive earnings (loss) from continuing operations | $67 | $(13) | +$80 | $72 | $(43) | +$115 | | Comprehensive earnings (loss) attributable to Liberty stockholders | $271 | $456 | -$185 | $281 | $589 | -$308 | - Other comprehensive earnings from continuing operations showed a **positive swing**, **increasing by** **$80 million** for the three months and **$115 million** for the six months ended June 30, 2025, primarily due to foreign currency translation adjustments and share of other comprehensive earnings of equity affiliates[22](index=22&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=LIBERTY%20MEDIA%20CORPORATION%20AND%20SUBSIDIARIES%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the company's consolidated statements of cash flows for the six months ended June 30 | Metric (millions) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change | | :-------------------------------------- | :--------------------------- | :--------------------------- | :--------- | | Net cash provided (used) by operating activities | $612 | $394 | +$218 | | Net cash provided (used) by investing activities | $(120) | $(200) | +$80 | | Net cash provided (used) by financing activities | $8 | $6 | +$2 | | Net increase (decrease) in cash, cash equivalents and restricted cash | $509 | $81 | +$428 | - Net cash provided by operating activities increased by **$218 million**, primarily due to higher net earnings from continuing operations and favorable changes in operating assets and liabilities[25](index=25&type=chunk) - Net cash used in investing activities decreased by **$80 million**, driven by higher cash proceeds from dispositions and foreign currency forward contracts, despite increased cash paid for acquisitions[25](index=25&type=chunk) [Condensed Consolidated Statements of Equity](index=9&type=section&id=LIBERTY%20MEDIA%20CORPORATION%20AND%20SUBSIDIARIES%20Condensed%20Consolidated%20Statements%20of%20Equity) This section presents the company's consolidated statements of equity for the periods ended June 30 | Metric (millions) | Balance at June 30, 2025 | Balance at December 31, 2024 | Change | | :-------------------------------------- | :----------------------- | :--------------------------- | :----- | | Total equity | $7,363 | $7,051 | +$312 | | Retained earnings | $7,419 | $7,179 | +$240 | | Accumulated other comprehensive earnings (loss) | $(81) | $(153) | +$72 | - Total equity increased by **$312 million** from December 31, 2024, to June 30, 2025, primarily due to net earnings and other comprehensive earnings[12](index=12&type=chunk)[27](index=27&type=chunk) - Retained earnings increased by **$240 million**, reflecting the company's net earnings over the period[12](index=12&type=chunk)[27](index=27&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=LIBERTY%20MEDIA%20CORPORATION%20AND%20SUBSIDIARIES%20Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, explaining key accounting policies and events [(1) Basis of Presentation](index=11&type=section&id=%281%29%20Basis%20of%20Presentation) This note details the company's core business, GAAP basis of presentation, recent MotoGP acquisition, and intercompany agreements - Liberty Media Corporation is primarily engaged in the media and entertainment industries, with Formula 1 as its **most significant** subsidiary and Live Nation Entertainment, Inc. as its **most significant** equity method investment[33](index=33&type=chunk) - On July 3, 2025, the Company acquired approximately **84%** of Dorna Sports, S.L. (MotoGP) for a preliminary purchase price of approximately **$3.7 billion**, funded by cash on hand and **$1.0 billion** in borrowings. The acquisition is attributed to the Formula One Group[38](index=38&type=chunk)[40](index=40&type=chunk)[152](index=152&type=chunk) - The company has various agreements (Reorganization, Services, Facilities Sharing, Tax Sharing, Aircraft Time Sharing) with related publicly traded companies like QVC Group, Liberty Broadband, and Atlanta Braves Holdings to govern relationships and share services[41](index=41&type=chunk)[42](index=42&type=chunk) [(2) Discontinued Operations](index=13&type=section&id=%282%29%20Discontinued%20Operations) This note explains the split-off of Liberty SiriusXM Holdings in 2024, now presented as a discontinued operation - Liberty completed the split-off of Liberty Sirius XM Holdings on September 9, 2024, redeeming Liberty SiriusXM common stock for shares of Liberty Sirius XM Holdings common stock[47](index=47&type=chunk)[146](index=146&type=chunk) - Following the split-off, Liberty Sirius XM Holdings merged with Sirius XM Holdings Inc., making it an independent public company[48](index=48&type=chunk)[147](index=147&type=chunk) - Liberty Sirius XM Holdings is presented as a discontinued operation due to its strategic shift and significant impact on the Company's operations and financial results[49](index=49&type=chunk)[151](index=151&type=chunk) | Metric (millions) | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2024 | | :-------------------------------------- | :--------------------------- | :--------------------------- | | Revenue | $2,178 | $4,340 | | Operating income (loss) | $471 | $880 | | Net earnings (loss) from discontinued operations | $349 | $590 | | Net earnings (loss) attributable to Liberty stockholders | $299 | $498 | [(3) Tracking Stocks](index=14&type=section&id=%283%29%20Tracking%20Stocks) This note clarifies tracking stock structure, business group compositions, and the planned Liberty Live Group split-off - Tracking stocks reflect the economic performance of a particular business group, not the company as a whole; holders are stockholders of the parent corporation[54](index=54&type=chunk)[57](index=57&type=chunk)[148](index=148&type=chunk) - As of June 30, 2025, the Formula One Group is primarily comprised of Liberty's interests in Formula 1 and QuintEvents, with cash and cash equivalents of approximately **$3,140 million**[58](index=58&type=chunk)[149](index=149&type=chunk) - As of June 30, 2025, the Liberty Live Group is primarily comprised of Liberty's interest in Live Nation, with cash and cash equivalents of approximately **$308 million**[59](index=59&type=chunk)[150](index=150&type=chunk) - The Company announced a plan on November 13, 2024, to split off the Liberty Live Group, expected in the second half of 2025, which will result in Liberty Live and Liberty (Formula One) becoming separate publicly traded companies[61](index=61&type=chunk)[153](index=153&type=chunk) [(4) Stock-Based Compensation](index=16&type=section&id=%284%29%20Stock-Based%20Compensation) This note details stock-based compensation programs, including expense, awards granted, and unrecognized costs | Metric (millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Stock-based compensation expense | $8 | $7 | $10 | $20 | - Stock-based compensation expense decreased by **$10 million** for the six months ended June 30, 2025, compared to the prior year[65](index=65&type=chunk) - As of June 30, 2025, total unrecognized compensation cost related to unvested awards was approximately **$40 million**, to be recognized over a weighted average period of approximately **0.8 years**[73](index=73&type=chunk)[158](index=158&type=chunk) | Stock Type | Options Granted (000's) | Weighted Average GDFV | | :-------------------------------------- | :---------------------- | :-------------------- | | Series C Liberty Formula One common stock | 214 | $94.11 | | Series C Liberty Live common stock | 24 | $76.45 | [(5) Earnings Attributable to Liberty Media Corporation Stockholders Per Common Share](index=17&type=section&id=%285%29%20Earnings%20Attributable%20to%20Liberty%20Media%20Corporation%20Stockholders%20Per%20Common%20Share) This note presents basic and diluted EPS calculations for Liberty Formula One and Liberty Live common stock, including WASO | Metric (millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Basic WASO (Formula One) | 250 | 235 | 249 | 235 | | Diluted WASO (Formula One) | 252 | 238 | 255 | 240 | | Basic WASO (Liberty Live) | 92 | 92 | 92 | 92 | | Diluted WASO (Liberty Live) | 92 | 92 | 92 | 92 | | EPS (per share) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Basic EPS (Formula One) | $1.53 | $0.10 | $1.62 | $0.43 | | Diluted EPS (Formula One) | $1.52 | $0.10 | $1.55 | $0.42 | | Basic EPS (Liberty Live) | $(1.93) | $1.46 | $(2.12) | $0.66 | | Diluted EPS (Liberty Live) | $(1.93) | $1.46 | $(2.12) | $0.66 | - Approximately **6 million** and **3 million** potentially dilutive shares of Series A and Series C Liberty Formula One common stock, respectively, were excluded from diluted EPS for the three and six months ended June 30, 2025, as their inclusion would be antidilutive[75](index=75&type=chunk) [(6) Assets and Liabilities Measured at Fair Value](index=19&type=section&id=%286%29%20Assets%20and%20Liabilities%20Measured%20at%20Fair%20Value) This note details fair value measurements of assets and liabilities, including financial instruments and associated gains/losses | Category (millions) | June 30, 2025 Total | Level 1 | Level 2 | December 31, 2024 Total | Level 1 | Level 2 | | :-------------------------------------- | :------------------ | :------ | :------ | :---------------------- | :------ | :------ | | Cash equivalents | $774 | $774 | — | $2,466 | $2,466 | — | | Financial instrument assets | $244 | $101 | $143 | $167 | $84 | $83 | | Debt | $2,405 | — | $2,405 | $2,144 | — | $2,144 | | Financial instrument liabilities | $90 | — | $90 | $138 | — | $138 | | Realized/Unrealized Gains (Losses) (millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Debt measured at fair value | $(252) | $66 | $(253) | $(3) | | Foreign currency forward contracts | $227 | $8 | $335 | $8 | | Live Nation Forward Contracts | $(90) | — | $(90) | — | | Interest rate swaps | $(18) | $13 | $(53) | $54 | | Total | $(129) | $87 | $(64) | $66 | - Realized and unrealized gains (losses) on financial instruments, net, shifted from a gain of **$87 million** in Q2 2024 to a loss of **$129 million** in Q2 2025, primarily due to losses on debt measured at fair value and Live Nation Forward Contracts, partially offset by gains on foreign currency forward contracts[93](index=93&type=chunk)[165](index=165&type=chunk) [(7) Investments in Affiliates Accounted for Using the Equity Method](index=22&type=section&id=%287%29%20Investments%20in%20Affiliates%20Accounted%20for%20Using%20the%20Equity%20Method) This note details equity method investments, primarily Live Nation, including carrying amounts and share of earnings | Investment | Percentage Ownership | Fair Value (Level 1, millions) | Carrying Amount June 30, 2025 (millions) | Carrying Amount December 31, 2024 (millions) | | :-------------------------------------- | :------------------- | :----------------------------- | :--------------------------------------- | :----------------------------------------- | | Live Nation | 30% | $10,536 | $557 | $430 | | Total Consolidated Liberty | | | $622 | $491 | | Share of Earnings (Losses) of Affiliates (millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Live Nation | $69 | $83 | $73 | $63 | | Consolidated Liberty | $71 | $83 | $72 | $59 | - Live Nation's revenue increased to **$7,007 million** for the three months ended June 30, 2025, from **$6,023 million** in the prior year, and net earnings attributable to Live Nation stockholders were **$243 million**[100](index=100&type=chunk) [(8) Long-Term Debt](index=24&type=section&id=%288%29%20Long-Term%20Debt) This note summarizes the company's long-term debt, including corporate notes, subsidiary loans, and recent refinancing activities | Debt Type (millions) | Principal June 30, 2025 | Carrying Value June 30, 2025 | Carrying Value December 31, 2024 | | :-------------------------------------- | :---------------------- | :--------------------------- | :------------------------------- | | Formula One Group Total | $2,897 | $3,030 | $2,992 | | Liberty Live Group Total | $1,150 | $1,769 | $1,556 | | Total debt | $4,047 | $4,799 | $4,548 | | Debt classified as current | | $(1,803) | $(26) | - The **2.375%** Exchangeable Senior Debentures due 2053, attributed to the Liberty Live Group, have been classified as current liabilities as of June 30, 2025, due to holders' ability to exchange them within a one-year period[104](index=104&type=chunk)[107](index=107&type=chunk)[109](index=109&type=chunk) - Formula 1 refinanced its Senior Loan Facilities in September 2024, extending maturities and reducing the Term Loan B margin to **2.0%**. Incremental Term Loans of **$1.0 billion** were secured to fund the MotoGP acquisition[111](index=111&type=chunk)[112](index=112&type=chunk) - As of June 30, 2025, **10.5 million** shares of Live Nation common stock with a value of **$1,587 million** were pledged as collateral to the Live Nation Forward Contracts, and **9.0 million** shares with a value of **$1,357 million** were pledged to the Live Nation Margin Loan[106](index=106&type=chunk)[110](index=110&type=chunk) [(9) Commitments and Contingencies](index=27&type=section&id=%289%29%20Commitments%20and%20Contingencies) This note outlines commitments and contingent liabilities, including Formula 1 agreements and indemnification obligations - The 2021 Concorde Agreement for Formula 1 expires on December 31, 2025. A new 2026 Concorde Commercial Agreement, covering 2026-2030, was signed, with a **$50 million** incentive payment made to the 10 participating teams[116](index=116&type=chunk)[117](index=117&type=chunk) - The company retains liabilities for events prior to asset sales (e.g., tax, environmental, litigation) and generally indemnifies purchasers, but historically, no significant indemnification payments have been made[118](index=118&type=chunk) - Contingent liabilities from legal and tax proceedings are not expected to be material to the condensed consolidated financial statements[119](index=119&type=chunk) [(10) Information About Liberty's Operating Segments](index=27&type=section&id=%2810%29%20Information%20About%20Liberty's%20Operating%20Segments) This note defines reportable segments, evaluates performance using Adjusted OIBDA, and provides segment-specific financial data - Liberty's reportable segments are Formula 1 and Live Nation (equity method affiliate), with performance evaluated using revenue, operating expenses, and Adjusted OIBDA[120](index=120&type=chunk)[122](index=122&type=chunk)[124](index=124&type=chunk)[125](index=125&type=chunk) - Adjusted OIBDA is defined as revenue less operating expenses and selling, general and administrative expenses, excluding stock-based compensation, litigation settlements, Concorde incentive payments, and restructuring/acquisition/impairment charges[123](index=123&type=chunk)[160](index=160&type=chunk) | Metric (millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Consolidated Adjusted OIBDA | $364 | $164 | $433 | $365 | | Formula One Group Adjusted OIBDA | $369 | $165 | $442 | $367 | | Liberty Live Group Adjusted OIBDA | $(5) | $(1) | $(9) | $(2) | - Consolidated Adjusted OIBDA increased by **$200 million** for the three months and **$68 million** for the six months ended June 30, 2025, primarily due to increases in Formula 1's Adjusted OIBDA[160](index=160&type=chunk) - The company anticipates recognizing approximately **$1,542 million** in deferred revenue for the remainder of 2025, **$2,624 million** in 2026, and **$2,364 million** in 2027 from undelivered performance obligations[132](index=132&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes Liberty Media's financial condition, operating results, business overview, and segment performance, including recent corporate actions [Cautionary Note Regarding Forward-Looking Statements](index=32&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section provides a cautionary note regarding forward-looking statements and factors that could affect actual results - The report contains forward-looking statements regarding the proposed Liberty Live Split-Off, projected cash flows, interest rate and stock price fluctuations, and the anticipated non-material impact of contingent liabilities[136](index=136&type=chunk) - Key factors that could cause actual results to differ include the ability to obtain financing, debt impact on operations, popularity of tracking stock businesses, success of acquisitions, economic conditions, and regulatory compliance[136](index=136&type=chunk) [Overview](index=33&type=section&id=Overview) This section provides an overview of Liberty Media's business, tracking stock structure, and recent corporate actions - Liberty Media Corporation owns 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**[140](index=140&type=chunk)[141](index=141&type=chunk) - The company's common stock was reclassified into three tracking stocks (Liberty SiriusXM, Liberty Formula One, Liberty Live) in August 2023. Liberty SiriusXM was split off in September 2024 and is now a discontinued operation[145](index=145&type=chunk)[146](index=146&type=chunk)[151](index=151&type=chunk) - The Formula One Group includes Formula 1 and QuintEvents, while the Liberty Live Group is primarily comprised of Live Nation. A plan to split off the Liberty Live Group is expected in the second half of 2025[149](index=149&type=chunk)[150](index=150&type=chunk)[153](index=153&type=chunk) - On July 3, 2025, Liberty acquired approximately **84%** of MotoGP for **$3.7 billion**, attributed to the Formula One Group[152](index=152&type=chunk) [Results of Operations—Consolidated](index=36&type=section&id=Results%20of%20Operations%E2%80%94Consolidated) This section analyzes the consolidated operating results, including revenue, operating income, and other income/expense | Metric (millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | YoY Change | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change | | :-------------------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------------------------- | :--------------------------- | :--------- | | Consolidated Revenue | $1,341 | $988 | +$353 | $1,788 | $1,575 | +$213 | | Consolidated Operating Income (Loss) | $273 | $57 | +$216 | $202 | $150 | +$52 | | Consolidated Adjusted OIBDA | $364 | $164 | +$200 | $433 | $365 | +$68 | - Consolidated revenue increased by **$353 million** and **$213 million** for the three and six months ended June 30, 2025, respectively, primarily due to growth in Formula 1 and QuintEvents[156](index=156&type=chunk) - Consolidated operating income increased by **$216 million** and **$52 million** for the three and six months ended June 30, 2025, respectively, driven by improved Formula 1 operating results[157](index=157&type=chunk) | Other Income (Expense) (millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :---------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Interest expense | $(57) | $(60) | $(112) | $(122) | | Share of earnings (losses) of affiliates, net | $71 | $83 | $72 | $59 | | Realized and unrealized gains (losses) on financial instruments, net | $(129) | $87 | $(64) | $66 | | Other, net | $70 | $26 | $106 | $47 | - Realized and unrealized gains (losses) on financial instruments, net, shifted from a gain of **$87 million** to a loss of **$129 million** for the three months ended June 30, 2025, primarily due to debt measured at fair value and Live Nation Forward Contracts[165](index=165&type=chunk)[166](index=166&type=chunk) [Material Changes in Financial Condition](index=39&type=section&id=Material%20Changes%20in%20Financial%20Condition) This section discusses significant changes in Liberty Media's financial condition, cash flows, and liquidity - As of June 30, 2025, Liberty's cash and cash equivalents totaled **$3,448 million**, with **$3,140 million** attributed to the Formula One Group and **$308 million** to the Liberty Live Group[172](index=172&type=chunk) - Liberty has **$400 million** available under its margin loan secured by Live Nation shares and is in compliance with all debt covenants[172](index=172&type=chunk)[173](index=173&type=chunk) - Primary uses of cash for the six months ended June 30, 2025, included a **$131 million** extension payment for the MotoGP acquisition and **$55 million** in capital expenditures for Formula 1[174](index=174&type=chunk)[175](index=175&type=chunk) - Projected uses of cash include investments in new businesses (like MotoGP), debt service, and potential share buybacks, funded by cash on hand, borrowing capacity, and subsidiary distributions[176](index=176&type=chunk)[177](index=177&type=chunk) [Results of Operations—Businesses](index=41&type=section&id=Results%20of%20Operations%E2%80%94Businesses) This section provides detailed results of operations for Liberty Media's individual business segments [Formula 1](index=41&type=section&id=Formula%201) Formula 1 experienced significant revenue and Adjusted OIBDA growth, driven by more events, fee increases, and media rights | Metric (millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | YoY Change | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change | | :-------------------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------------------------- | :--------------------------- | :--------- | | Total Formula 1 revenue | $1,226 | $871 | +$355 | $1,629 | $1,424 | +$205 | | Formula 1 Operating income (loss) | $293 | $84 | +$209 | $265 | $220 | +$45 | | Formula 1 Adjusted OIBDA | $361 | $160 | +$201 | $446 | $368 | +$78 | - Primary Formula 1 revenue increased by **$293 million** for the three months and **$149 million** for the six months ended June 30, 2025, due to an additional event, different event mix, contractual fee increases, growth in F1 TV subscriptions, and new sponsors[183](index=183&type=chunk) - Other Formula 1 revenue increased by **$62 million** for the three months and **$56 million** for the six months ended June 30, 2025, driven by higher hospitality and experiences revenue, freight income, and licensing income[185](index=185&type=chunk) - Cost of Formula 1 revenue increased by **$142 million** and **$98 million** for the three and six months ended June 30, 2025, respectively, due to increased team payments, freight costs, Paddock Club costs, and partner servicing costs[188](index=188&type=chunk)[189](index=189&type=chunk)[192](index=192&type=chunk) - Selling, general and administrative expenses increased by **$12 million** and **$29 million** for the three and six months ended June 30, 2025, respectively, due to higher personnel and marketing costs[194](index=194&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section details market risks from interest rates and stock prices, and how they are managed through debt structures and financial instruments - Liberty is exposed to market risk from changes in interest rates and stock prices, managed through a mix of fixed and variable rate debt and financial instruments like interest rate swaps and equity collars[197](index=197&type=chunk)[198](index=198&type=chunk)[199](index=199&type=chunk) | Group | Variable Rate Debt Principal (millions) | Weighted Avg Interest Rate | Fixed Rate Debt Principal (millions) | Weighted Avg Interest Rate | | :---------------- | :-------------------------------------- | :------------------------- | :----------------------------------- | :------------------------- | | Formula One Group | $172 | 6.2% | $2,725 | 4.4% | | Liberty Live Group| NA | NA | $1,150 | 2.4% | - A **10% decrease** in the market price of Live Nation stock (an equity method affiliate) would result in a **$1,054 million** lower aggregate value of such security as of June 30, 2025[200](index=200&type=chunk) [Item 4. Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirms effective disclosure controls and procedures as of June 30, 2025, with no material changes to internal controls - The company's disclosure controls and procedures were evaluated and deemed effective as of June 30, 2025, ensuring timely and accurate reporting of information[201](index=201&type=chunk) - No material changes in internal control over financial reporting occurred during the three months ended June 30, 2025[202](index=202&type=chunk) Part II — Other Information This section covers legal proceedings, risk factors, equity security sales, other information, and exhibits [Item 1. Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) No material changes to legal proceedings have occurred since the prior annual report - No material changes to legal proceedings have occurred since the December 31, 2024 Annual Report on Form 10-K[204](index=204&type=chunk) [Item 1A. Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) This section details updated risk factors for the Formula One Group, including popularity, agreements, competition, and regulatory challenges [Risks Relating to the Formula One Group](index=45&type=section&id=Risks%20Relating%20to%20the%20Formula%20One%20Group) This section details specific risks impacting the Formula One Group, including popularity, agreements, and regulatory compliance - The success of Formula 1 and MotoGP is highly dependent on their continued popularity, which could be adversely affected by competition, team participation, entertainment value, societal views, and economic conditions[206](index=206&type=chunk)[207](index=207&type=chunk)[208](index=208&type=chunk) - Termination of the 100-Year Agreements (Formula 1) or the FIM Agreement (MotoGP) could lead to the discontinuation of operations and loss of commercial rights[210](index=210&type=chunk)[211](index=211&type=chunk) - Formula 1 Teams have committed to participate until December 31, 2025 (2021 Concorde Agreement) and December 31, 2030 (2026 Concorde Commercial Agreement), but withdrawals could reduce popularity and impact commercial agreements[212](index=212&type=chunk)[214](index=214&type=chunk) - Both Formula 1 and MotoGP are subject to competition laws, with a Department of Justice investigation opened regarding Formula 1's conduct concerning the application by Andretti Formula Racing[221](index=221&type=chunk)[222](index=222&type=chunk) - Changes in tax laws, including the OECD's 'Two Pillar' approach, could lead to higher effective tax rates for Formula 1 and MotoGP[229](index=229&type=chunk)[230](index=230&type=chunk)[234](index=234&type=chunk) - Events beyond control (e.g., natural disasters, geopolitical conflicts, promoter failures) may cause cancellations or postponements, leading to revenue loss not covered by insurance[241](index=241&type=chunk)[242](index=242&type=chunk) - Fluctuations in USD/Euro exchange rates against functional currencies of Formula 1/MotoGP businesses and counterparties could adversely affect profitability and increase non-payment risk[257](index=257&type=chunk) - Indebtedness covenants for Formula 1 and MotoGP restrict financial and operating flexibility, including limitations on incurring additional debt, paying dividends, and selling assets[254](index=254&type=chunk)[255](index=255&type=chunk)[256](index=256&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=57&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details share repurchase programs, with **$1.1 billion** available, and no repurchases in Q2 2025 - Approximately **$1.1 billion** was available for future share repurchases under the company's authorized programs as of June 30, 2025[261](index=261&type=chunk) - No repurchases of Liberty Formula One common stock or Liberty Live common stock occurred during the three months ended June 30, 2025[261](index=261&type=chunk) [Item 5. Other Information](index=57&type=section&id=Item%205.%20Other%20Information) No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted or terminated by directors or officers - No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the fiscal quarter ended June 30, 2025[263](index=263&type=chunk) [Item 6. Exhibits](index=58&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Quarterly Report, including agreements, certifications, and financial information - Key exhibits include Senior Facilities Agreement, Master Forward Confirmation, Incremental Facility Commitment Letters, and various certifications[265](index=265&type=chunk) - Unaudited Attributed Financial Information for Tracking Stock Groups (Exhibit 99.1) is filed[265](index=265&type=chunk) [SIGNATURES](index=59&type=section&id=SIGNATURES) This section contains the required signatures for the Quarterly Report, confirming its submission by key executives - The report was signed by Derek Chang, President and Chief Executive Officer, and Brian J. Wendling, Chief Accounting Officer and Principal Financial Officer, on August 7, 2025[269](index=269&type=chunk)

Financial Performance - Formula One Group revenue for Q1 2025 was $447 million, a decrease of 24% compared to $587 million in Q1 2024[7] - Formula 1's operating income for Q1 2025 was a loss of $28 million, down from a profit of $136 million in Q1 2024[7] - Adjusted OIBDA for Formula One Group decreased to $73 million in Q1 2025, a decline of 64% from $202 million in Q1 2024[7] - Primary Formula 1 revenue fell by 31% to $319 million in Q1 2025, attributed to one fewer race compared to the previous year[9] - Total revenue for Q1 2025 was $447 million, a decrease of 24% compared to $587 million in Q1 2024[34][36] - Formula 1 revenue in Q1 2025 was $400 million, down from $550 million in Q1 2024, representing a 27% decline[34][36] - Operating income for Q1 2025 was a loss of $71 million, compared to an operating income of $93 million in Q1 2024[34][36] - Net earnings attributable to Liberty stockholders for Q1 2025 were $5 million, a significant decrease from $203 million in Q1 2024[34][36] - Net earnings for the quarter were $77 million, compared to a loss of $73 million in the previous year[41] Cash and Debt Management - Total cash and cash equivalents attributed to Formula One Group increased by $202 million during Q1 2025, reaching $2.833 billion[23] - Cash and cash equivalents at the end of Q1 2025 totaled $3,147 million, an increase from $2,963 million at the beginning of the period[37] - Net cash provided by operating activities in Q1 2025 was $381 million, compared to $494 million in Q1 2024[37][40] - Long-term debt as of March 31, 2025, was $4,534 million, reflecting an increase from previous periods[31] - Total debt attributed to Liberty Media Corporation increased slightly to $4.564 billion as of March 31, 2025[23] - Liberty Media's total remaining repurchase authorization as of May 1, 2025, is $1.1 billion[16] - The company reported a net cash used by investing activities of $(296) million[41] - The company had a net increase in cash and cash equivalents of $(167) million during the period[41] Asset and Liability Overview - Total assets as of March 31, 2025, were $13,285 million, compared to $12,086 million in the previous year[31] - The total current liabilities were $1,446 million as of March 31, 2025, unchanged from the previous year[31] Operational Costs - The company reported a depreciation and amortization expense of $77 million for Q1 2025[34] - Depreciation and amortization expenses were $86 million for the quarter[45] - The company incurred $11 million in acquisition costs during the three months ended March 31, 2025[47] Investment and Regulatory Activities - The fair value of Live Nation investment attributed to Liberty Live Group was $9.1 billion as of March 31, 2025[3] - Liberty Media continues to work on the regulatory process for the MotoGP acquisition[3] - Liberty Media and F1 are in compliance with their debt covenants as of March 31, 2025[25] Adjusted OIBDA Definition - Liberty Media defines Adjusted OIBDA as operating income plus several adjustments, highlighting its importance for operational performance assessment[42]

Revenue Performance - Consolidated revenue decreased by $140 million to $447 million for the three months ended March 31, 2025, compared to $587 million in the same period of 2024, primarily due to a decrease in Formula 1 revenue[148]. - Formula 1 revenue was $403 million for the three months ended March 31, 2025, down from $553 million in the prior year[148]. - Formula 1's total revenue decreased to $403 million in Q1 2025 from $553 million in Q1 2024, with primary revenue down by $144 million[172][173]. - Other Formula 1 revenue decreased by $6 million during the three months ended March 31, 2025, compared to the prior year, primarily due to a decrease in hospitality and experiences revenue[175]. Operating Performance - Consolidated operating loss increased by $164 million to $71 million for the three months ended March 31, 2025, compared to an operating income of $93 million in the same period of 2024[149]. - Formula 1's operating loss was $28 million for the three months ended March 31, 2025, compared to an operating income of $136 million in the same period of 2024[148]. - Adjusted OIBDA for the Formula One Group was $73 million for the three months ended March 31, 2025, down from $202 million in the prior year[148]. - Adjusted OIBDA decreased by $132 million to $69 million in Q1 2025 compared to $201 million in Q1 2024, primarily due to a decrease in Formula 1 Adjusted OIBDA[152]. Cash and Liquidity - As of March 31, 2025, the Formula One Group had cash and cash equivalents of approximately $2,833 million, including $1,617 million of subsidiary cash[140]. - Liberty Live Group had cash and cash equivalents of approximately $314 million as of March 31, 2025[141]. - Cash provided by operating activities for Formula One Group was $391 million in Q1 2025, up from $140 million in Q1 2024[165]. - Liberty's primary use of cash in Q1 2025 included a $131 million extension payment related to the Dorna acquisition[165]. Expenses and Costs - Cost of Formula 1 revenue decreased by $44 million during the three months ended March 31, 2025, compared to the prior year, with team payments decreasing from $163 million to $114 million[176]. - Other costs of Formula 1 revenue increased by $5 million during the three months ended March 31, 2025, primarily due to higher freight costs and commissions[178]. - Selling, general and administrative expenses increased by $17 million during the three months ended March 31, 2025, primarily due to higher marketing and personnel costs[179]. - Depreciation and amortization decreased by $9 million during the three months ended March 31, 2025, primarily due to a decrease in amortization expense related to intangible assets[181]. Debt and Market Risk - As of March 31, 2025, the company had $176 million in variable rate debt with a weighted average interest rate of 6.2% and $2,726 million in fixed rate debt with a weighted average interest rate of 4.4%[183]. - The company is exposed to market risk from significant holdings in publicly traded securities, with a potential $909 million decrease in value if the market price of Live Nation stock were to drop by 10%[184]. Corporate Actions - The company agreed to acquire approximately 86% of Dorna Sports, S.L. for a purchase price of approximately €3.0 billion, with regulatory review extending beyond December 31, 2024[144]. - The proposed Liberty Live Split-Off is intended to be tax-free to stockholders and is subject to various conditions including shareholder approval[145]. Tax and Earnings - The company recognized a tax benefit of $29 million in Q1 2025, compared to a tax expense of $3 million in Q1 2024[158]. - Net earnings from continuing operations were $5 million in Q1 2025, slightly up from $4 million in Q1 2024[159]. Stock-Based Compensation - Stock-based compensation expense for Q1 2025 was $2 million, down from $13 million in Q1 2024, with total unrecognized compensation cost of approximately $13 million as of March 31, 2025[150]. - Acquisition costs increased to $11 million in Q1 2025 from $9 million in Q1 2024[151].

Financial Performance - Formula One Group reported a total revenue of $3.653 billion for the year ended December 31, 2024, an increase of 13% compared to $3.222 billion 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] - Total revenue for Liberty Media Corporation for the twelve months ended December 31, 2024, was $3,653 million, compared to $3,572 million in 2023[38] - Operating income for Liberty Media Corporation for the twelve months ended December 31, 2024, was $276 million, compared to $255 million in 2023[38] - Net earnings attributable to Liberty stockholders for the twelve months ended December 31, 2024, was a loss of $2,063 million, primarily due to discontinued operations[38] - Net earnings for Liberty Media Corporation were $962 million for the twelve months ended December 31, 2023, compared to a loss of $2,475 million in the previous period[45] - The company reported a loss from discontinued operations of $986 million, impacting overall financial performance[45] Attendance and Races - F1 fan attendance reached 6.5 million in 2024, a 9% increase from 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 debt attributed to Formula One Group remained relatively flat at $2,928 million as of December 31, 2024[30] - Liberty Media Corporation is in compliance with its debt covenants as of December 31, 2024[30] - 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 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] - Borrowings of debt totaled $1,165 million, while repayments of debt were $1,008 million, indicating active management of debt levels[45] Strategic Initiatives - The company expects to pursue strategic priorities in 2025, including the planned acquisition of MotoGP[33] - The company extended the regulatory approval date for the MotoGP acquisition to June 30, 2025[2] - The partnership with Crypto.com has been extended through 2030, enhancing sponsorship revenue potential[2] Cash Flow and Expenditures - Cash flows from operating activities provided $634 million, a significant increase from a cash outflow of $14 million in the prior year[45] - The company reported a net cash increase of $935 million in cash, cash equivalents, and restricted cash, ending the period with $2,963 million[45] - Capital expenditures for property and equipment totaled $461 million, including $35 million for internal-use software and website development[45] - The company 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] - Cash proceeds from dispositions of investments amounted to $111 million, contributing positively to cash flows from investing activities[45] Corporate Developments - Liberty Media's investment in Live Nation was valued at $9.0 billion as of December 31, 2024[2] - Team payments as a percentage of pre-team payment Adjusted OIBDA decreased from 62.6% in 2023 to 61.5% in 2024, indicating improved profitability[16]

Debt and Financial Obligations - As of December 31, 2024, the company had outstanding corporate-level indebtedness of $1.7 billion, including $475 million under 2.25% Convertible Senior Notes due 2027 and $1.15 billion under 2.375% Exchangeable Senior Debentures due 2053[100]. - The company's ability to access cash flow is restricted by covenants in debt instruments, which may limit future financing options[100]. - The company has limited ability to receive cash from subsidiaries due to restrictions on dividends and payments[101]. - The company may incur significant tax liabilities related to the Liberty Sirius XM Holdings Split-Off if it does not qualify as a tax-free transaction[109]. - The company may incur significant indebtedness that could impact its credit rating and borrowing costs across its tracking stock groups[203]. Revenue and Economic Sensitivity - A significant portion of revenue is derived from discretionary spending, which may decline during economic downturns, adversely affecting financial performance[104]. - Future pandemics or epidemics could significantly affect revenue, operations, and cash flow, with long-term implications for discretionary spending on entertainment[118]. - The ongoing popularity of Formula 1 is critical for its commercial rights exploitation, with potential declines in viewership impacting sponsorship and media rights revenue[119]. - Live Nation's business is highly sensitive to public tastes and relies on securing popular artists for events, with potential revenue loss if artists do not tour or if consumer preferences change[167]. Operational Risks - The success of live entertainment events is difficult to predict and depends on audience popularity, which can be influenced by various external factors[102]. - Legal proceedings involving subsidiaries could have a material adverse impact on the company's financial condition[107]. - Events may be cancelled or postponed due to factors beyond Formula 1's control, leading to potential revenue loss under commercial contracts[145]. - Accidents during events could disrupt operations and cause reputational damage, with insurance coverage potentially being inadequate[146]. - Terrorist acts during events pose a risk of disruption and financial loss, with insurance coverage limitations for such incidents[147][148]. Competition and Market Dynamics - The company faces risks related to potential conflicts of interest due to overlapping directors and management with QVC Group, Liberty Broadband, and TripCo[106]. - Formula 1's ability to attract new teams may be limited, affecting competition and the perceived entertainment value of events[124]. - Live Nation faces intense competition in the live music and ticketing industries, which could hinder its ability to maintain or increase revenue[172]. - The ticketing business is challenged by competition from self-ticketing systems and resale marketplaces, which could impact client retention and sales volume[173]. Compliance and Regulatory Challenges - The company is subject to competition law compliance, with ongoing investigations that could impact its business practices and contracts[128]. - The emergence of privacy laws across various jurisdictions could increase compliance costs and impact Formula 1's operations and services offered[157]. - Live Nation faces increased compliance costs and risks due to evolving data privacy laws in the E.U., U.K., and the U.S., which may require modifications to its products and services[185]. Intellectual Property and Data Management - The unauthorized use of Formula 1's intellectual property, including its brand and television footage, poses a significant risk, potentially leading to lost revenue and reduced media rights value[153]. - Live Nation's operations involve the collection and management of personal data, which exposes the company to significant fines and penalties for violations of data privacy regulations[185]. - The failure to protect intellectual property rights could result in brand erosion and negatively impact Live Nation's financial condition and operations[188]. Strategic Decisions and Corporate Structure - The company's tracking stock structure may create conflicts of interest among shareholders, affecting their investment interests differently[205]. - Liberty's Board of Directors has the discretion to reattribute assets and liabilities among tracking stock groups without shareholder approval, which may complicate performance assessments[197]. - The Board of Directors has the authority to change management and allocation policies without stockholder approval, which could disadvantage one group while benefiting another[212]. - The company plans to split off its Liberty Live Group into an independent, publicly-traded company in the second half of 2025, subject to certain approvals[226]. Market and Financial Risks - The company is exposed to market risk due to adverse changes in stock prices and interest rates, which can affect fair values, cash flows, and future earnings[336]. - The company manages interest rate exposure by maintaining a mix of fixed and variable rate debt, with fixed rate debt at $2,728 million (4.4% average interest rate) and variable rate debt at $180 million (6.2% average interest rate) as of December 31, 2024[338]. - The market price of the company's stock in Live Nation, an equity method affiliate, is not reflected at fair value in the balance sheet; a 10% decrease in its market price would result in a $902 million lower aggregate value[339].