Fox(FOXA) - 2025 Q4 - Annual Results

Executive Summary This section provides a high-level overview of Fox Corporation's strong financial performance for fiscal year 2025, including key financial highlights and strategic initiatives Fiscal 2025 Highlights (Q4 & Full Year) Fox Corporation reported strong financial results for both the fourth quarter and the full fiscal year 2025, demonstrating significant growth in revenues, net income, and Adjusted EBITDA, driven by broad-based strength across its businesses Fourth Quarter Fiscal 2025 Key Financials: | Metric | Q4 FY2025 | Q4 FY2024 | Change ($M) | Change (%) | | :---------------- | :-------- | :-------- | :---------- | :--------- | | Revenues | $3.29B | $3.09B | $195 | 6% | | Net Income | $719M | $320M | $399 | 125% | | Adjusted EBITDA | $939M | $773M | $166 | 21% | Full Year Fiscal 2025 Key Financials: | Metric | FY2025 | FY2024 | Change ($B) | Change (%) | | :---------------- | :----- | :----- | :---------- | :--------- | | Revenues | $16.30B | $13.98B | $2.32 | 17% | | Net Income | $2.29B | $1.55B | $0.74 | 48% | | Adjusted EBITDA | $3.62B | $2.88B | $0.74 | 26% | CEO Commentary & Strategic Initiatives Executive Chair and CEO Lachlan Murdoch highlighted fiscal 2025 as an outstanding year with record financial results and strategic investments in digital growth assets - Fiscal 2025 was an outstanding year for FOX, achieving record financial results and making important investments in digital growth assets[3] - The company enters fiscal 2026 with solid operational and financial momentum, anticipating the launch of FOX One[3] - Board authorized a $5 billion increase to the share repurchase authorization, bringing the total to $12 billion[3][21] - Semi-annual dividend increased to $0.28 per share[3][20] Company-Wide Financial Performance This section details Fox Corporation's consolidated financial results for the fourth quarter and full fiscal year 2025, including revenue breakdowns and Adjusted EBITDA performance FOURTH QUARTER COMPANY RESULTS For the fourth quarter of fiscal 2025, Fox Corporation reported a 6% increase in total revenues to $3.29 billion, driven by growth across affiliate fees, advertising, and other revenues Q4 FY2025 Revenue Growth by Component: | Revenue Type | Change (%) | | :----------- | :--------- | | Affiliate fee | 3% | | Advertising | 7% | | Other | 33% | - Advertising revenues increased primarily due to continued digital growth led by the Tubi AVOD service, and stronger news ratings and pricing, partially offset by the absence of prior year UEFA European Championship and CONMEBOL Copa América broadcasts[4] - Net income attributable to Fox Corporation stockholders was $717 million ($1.57 per share), up from $319 million ($0.68 per share) in the prior year quarter[5] - Adjusted EBITDA increased by 21% to $939 million, partially offset by higher entertainment programming costs, digital content costs, and corporate expenses, but benefited from lower sports programming rights amortization and production costs[5] FULL YEAR COMPANY RESULTS Fox Corporation's full fiscal year 2025 revenues grew 17% to $16.30 billion, with significant contributions from advertising, affiliate fees, and other revenues Full Year FY2025 Revenue Growth by Component: | Revenue Type | Change (%) | | :----------- | :--------- | | Affiliate fee | 5% | | Advertising | 26% | | Other | 47% | - Advertising revenues increased primarily due to the impact of Super Bowl LIX, higher political advertising revenues, continued digital growth led by the Tubi AVOD service, and stronger news pricing and ratings[6] - Net Income attributable to Fox Corporation stockholders was $2.26 billion ($4.91 per share), up from $1.50 billion ($3.13 per share) in the prior year[7] - Full year Adjusted EBITDA increased by 26% to $3.62 billion, partially offset by higher sports programming rights amortization and production costs, including Super Bowl LIX, and higher digital content costs[8] REVIEW OF OPERATING RESULTS This section provides a detailed tabular breakdown of the company's revenues by component and segment, as well as Adjusted EBITDA and depreciation and amortization for both the three and twelve months ended June 30, 2025, and 2024 Revenues by Component ($ Millions): | Component | Q4 2025 | Q4 2024 | FY 2025 | FY 2024 | | :---------------- | :------ | :------ | :------ | :------ | | Affiliate fee | 1,908 | 1,859 | 7,656 | 7,324 | | Advertising | 1,078 | 1,007 | 6,865 | 5,444 | | Other | 301 | 226 | 1,779 | 1,212 | | Total revenues | 3,287 | 3,092 | 16,300 | 13,980 | Segment Revenues ($ Millions): | Segment | Q4 2025 | Q4 2024 | FY 2025 | FY 2024 | | :------------------------ | :------ | :------ | :------ | :------ | | Cable Network Programming | 1,532 | 1,438 | 6,930 | 5,955 | | Television | 1,707 | 1,615 | 9,325 | 7,875 | | Corporate and Other | 63 | 53 | 244 | 209 | | Eliminations | (15) | (14) | (199) | (59) | | Total revenues | 3,287 | 3,092 | 16,300 | 13,980 | Adjusted EBITDA by Segment ($ Millions): | Segment | Q4 2025 | Q4 2024 | FY 2025 | FY 2024 | | :------------------------ | :------ | :------ | :------ | :------ | | Cable Network Programming | 747 | 703 | 3,030 | 2,693 | | Television | 308 | 148 | 945 | 506 | | Corporate and Other | (116) | (78) | (351) | (316) | | Total Adjusted EBITDA | 939 | 773 | 3,624 | 2,883 | Segment Performance Review This section provides a detailed analysis of the financial performance for the Cable Network Programming and Television segments, highlighting revenue drivers and EBITDA changes CABLE NETWORK PROGRAMMING The Cable Network Programming segment demonstrated robust growth in both the fourth quarter and full fiscal year 2025, driven by increases in affiliate fees, advertising, and other revenues, despite subscriber declines Q4 Fiscal 2025 Performance This subsection details the Cable Network Programming segment's financial performance for the three months ended June 30, 2025 Q4 FY2025 Cable Network Programming Revenues ($ Millions): | Revenue Type | Q4 2025 | Q4 2024 | Change ($M) | Change (%) | | :----------- | :------ | :------ | :---------- | :--------- | | Affiliate fee | 1,068 | 1,048 | 20 | 2% | | Advertising | 378 | 328 | 50 | 15% | | Other | 86 | 62 | 24 | 39% | | Total revenues | 1,532 | 1,438 | 94 | 7% | - Affiliate fee growth was due to contractual price increases, partially offset by net subscriber declines[11] - Other revenues increased 39%, led by higher Fox Nation subscribers[11] - Quarterly segment EBITDA increased by $44 million or 6% to $747 million, primarily due to revenue increases, partially offset by higher sports programming rights amortization and production costs[12] Full Year Fiscal 2025 Performance This subsection details the Cable Network Programming segment's financial performance for the twelve months ended June 30, 2025 Full Year FY2025 Cable Network Programming Revenues ($ Millions): | Revenue Type | FY 2025 | FY 2024 | Change ($M) | Change (%) | | :----------- | :------ | :------ | :---------- | :--------- | | Affiliate fee | 4,316 | 4,188 | 128 | 3% | | Advertising | 1,531 | 1,262 | 269 | 21% | | Other | 1,083 | 505 | 578 | 114% | | Total revenues | 6,930 | 5,955 | 975 | 16% | - Other revenues increased $578 million, led by higher sports sublicensing revenues[13] - Full year segment EBITDA increased by $337 million or 13% to $3.03 billion, primarily due to revenue increases, partially offset by higher sports programming rights amortization and production costs[14] TELEVISION The Television segment delivered strong financial performance in both Q4 and the full fiscal year 2025, with significant revenue growth driven by advertising, affiliate fees, and other content revenues Q4 Fiscal 2025 Performance This subsection details the Television segment's financial performance for the three months ended June 30, 2025 Q4 FY2025 Television Revenues ($ Millions): | Revenue Type | Q4 2025 | Q4 2024 | Change ($M) | Change (%) | | :----------- | :------ | :------ | :---------- | :--------- | | Advertising | 700 | 679 | 21 | 3% | | Affiliate fee | 840 | 811 | 29 | 4% | | Other | 167 | 125 | 42 | 34% | | Total revenues | 1,707 | 1,615 | 92 | 6% | - Advertising revenue growth was primarily due to continued digital growth led by the Tubi AVOD service, partially offset by the absence of prior year UEFA European Championship and CONMEBOL Copa América broadcasts[16] - Affiliate fee revenues increased 4%, driven by higher average rates at owned and operated television stations and increases in fees from third-party FOX affiliates[16] - Quarterly segment EBITDA increased by $160 million or 108% to $308 million, due to revenue increases and lower expenses, primarily from reduced sports programming rights amortization and production costs[17] Full Year Fiscal 2025 Performance This subsection details the Television segment's financial performance for the twelve months ended June 30, 2025 Full Year FY2025 Television Revenues ($ Millions): | Revenue Type | FY 2025 | FY 2024 | Change ($M) | Change (%) | | :----------- | :------ | :------ | :---------- | :--------- | | Advertising | 5,334 | 4,182 | 1,152 | 28% | | Affiliate fee | 3,340 | 3,136 | 204 | 7% | | Other | 651 | 557 | 94 | 17% | | Total revenues | 9,325 | 7,875 | 1,450 | 18% | - Advertising revenue growth was primarily due to the impact of Super Bowl LIX, higher political advertising revenues, and continued digital growth led by the Tubi AVOD service[18] - Full year segment EBITDA increased by $439 million or 87% to $945 million, due to revenue increases, partially offset by higher sports rights amortization and production costs, including Super Bowl LIX, and higher digital content costs[19] Capital Allocation and Shareholder Returns This section outlines the company's strategies for returning value to shareholders through dividends and share repurchase programs DIVIDEND The Company's Board of Directors has authorized an increase in the semi-annual dividend, reflecting confidence in the business trajectory and commitment to shareholder returns - The semi-annual dividend was increased to $0.28 per Class A and Class B share[20] - The dividend is payable on September 24, 2025, to shareholders of record as of September 3, 2025[20] SHARE REPURCHASE PROGRAM The Board of Directors authorized an additional $5 billion for stock repurchases, increasing the total authorization to $12 billion, underscoring the company's commitment to returning value to shareholders - An additional $5 billion was authorized for stock repurchases, increasing the total authorization to $12 billion[21] - As of June 30, 2025, the Company had repurchased approximately $5.6 billion of Class A common stock and $1.0 billion of Class B common stock[21] - Approximately $250 million of Class A common stock was repurchased during the quarter[21] Consolidated Financial Statements This section presents the company's consolidated statements of operations, balance sheets, and cash flows for the reported periods, offering a comprehensive view of its financial position and performance CONSOLIDATED STATEMENTS OF OPERATIONS This statement presents the company's revenues, expenses, and net income for the three and twelve months ended June 30, 2025, and 2024, highlighting significant growth in net income year-over-year Consolidated Statements of Operations (Key Figures, $ Millions, except per share amounts): | Metric | Q4 2025 | Q4 2024 | FY 2025 | FY 2024 | | :--------------------------------------- | :------ | :------ | :------ | :------ | | Revenues | 3,287 | 3,092 | 16,300 | 13,980 | | Operating expenses | (1,759) | (1,784) | (10,518) | (9,089) | | Selling, general and administrative | (590) | (539) | (2,168) | (2,024) | | Income before income tax expense | 959 | 451 | 3,061 | 2,104 | | Net income | 719 | 320 | 2,293 | 1,554 | | Net income attributable to Fox Corp stockholders | 717 | 319 | 2,263 | 1,501 | | EPS attributable to Fox Corp stockholders | 1.57 | 0.68 | 4.91 | 3.13 | CONSOLIDATED BALANCE SHEETS The consolidated balance sheet as of June 30, 2025, shows an increase in total assets, primarily driven by higher cash and cash equivalents, and an increase in total equity, reflecting the company's strong financial position Consolidated Balance Sheets (Key Figures, $ Millions): | Metric | June 30, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------ | | Cash and cash equivalents | 5,351 | 4,319 | | Total current assets | 8,429 | 7,501 | | Total assets | 23,195 | 21,972 | | Total current liabilities | 2,897 | 2,952 | | Non-current borrowings | 6,602 | 6,598 | | Total Fox Corporation stockholders' equity | 11,962 | 10,714 | | Total liabilities and equity | 23,195 | 21,972 | CONSOLIDATED STATEMENTS OF CASH FLOWS For the twelve months ended June 30, 2025, net cash provided by operating activities significantly increased, while net cash used in investing and financing activities also rose Consolidated Statements of Cash Flows (Key Figures, $ Millions): | Activity | FY 2025 | FY 2024 | | :----------------------------------- | :------ | :------ | | Net cash provided by operating activities | 3,324 | 1,840 | | Net cash used in investing activities | (537) | (452) | | Net cash used in financing activities | (1,755) | (1,341) | | Net increase in cash and cash equivalents | 1,032 | 47 | | Cash and cash equivalents, end of year | 5,351 | 4,319 | - Repurchase of shares amounted to $1,000 million in both FY2025 and FY2024[28] - Repayment of borrowings was $600 million in FY2025, down from $1,250 million in FY2024[28] Non-GAAP Financial Measures This section provides definitions and reconciliations for non-GAAP financial measures, including Adjusted Net Income, Adjusted EPS, and Adjusted EBITDA, used by management to assess performance NOTE 1 – ADJUSTED NET INCOME AND ADJUSTED EPS This section defines Adjusted Net Income and Adjusted EPS as non-GAAP measures used by management to evaluate performance by excluding certain non-recurring or non-operational items, providing reconciliations for both quarterly and full-year periods - Adjusted Net Income and Adjusted EPS exclude net income effects of Restructuring, impairment and other corporate matters, adjustments to Equity earnings (losses) of affiliates, Non-operating other, net, Tax provisions and Noncontrolling interest adjustments[29] Q4 Adjusted Net Income and EPS Reconciliation ($ Millions, except per share data): | Metric | Q4 2025 Income | Q4 2025 EPS | Q4 2024 Income | Q4 2024 EPS | | :--------------------------------------- | :------------- | :---------- | :------------- | :---------- | | Net income attributable to Fox Corp stockholders | 717 | 1.57 | 319 | 0.68 | | As adjusted | 581 | 1.27 | 423 | 0.90 | Full Year Adjusted Net Income and EPS Reconciliation ($ Millions, except per share data): | Metric | FY 2025 Income | FY 2025 EPS | FY 2024 Income | FY 2024 EPS | | :--------------------------------------- | :------------- | :---------- | :------------- | :---------- | | Net income attributable to Fox Corp stockholders | 2,263 | 4.91 | 1,501 | 3.13 | | As adjusted | 2,202 | 4.78 | 1,645 | 3.43 | NOTE 2 – ADJUSTED EBITDA This section defines Adjusted EBITDA as a non-GAAP measure, calculated as Revenues less Operating expenses and Selling, general and administrative expenses, used to evaluate operating results separate from non-operational factors - Adjusted EBITDA is defined as Revenues less Operating expenses and Selling, general and administrative expenses, excluding items like Amortization of cable distribution investments, Depreciation and amortization, Restructuring, impairment and other corporate matters, Equity earnings (losses) of affiliates, Interest expense, net, Non-operating other, net and Income tax expense[33] - Management uses Adjusted EBITDA to analyze the operating performance of the Company's business and its enterprise value against historical data and competitors' data[34] Adjusted EBITDA Reconciliation to Net Income ($ Millions): | Metric | Q4 2025 | Q4 2024 | FY 2025 | FY 2024 | | :--------------------------------------- | :------ | :------ | :------ | :------ | | Net income | 719 | 320 | 2,293 | 1,554 | | Add: Amortization of cable distribution investments | 1 | 4 | 10 | 16 | | Add: Depreciation and amortization | 102 | 98 | 385 | 389 | | Add: Restructuring, impairment and other corporate matters | 99 | 43 | 350 | 67 | | Add: Equity losses of affiliates | 18 | 44 | 29 | 44 | | Add: Interest expense, net | 42 | 47 | 227 | 216 | | Add: Non-operating other, net | (282) | 86 | (438) | 47 | | Add: Income tax expense | 240 | 131 | 768 | 550 | | Adjusted EBITDA | 939 | 773 | 3,624 | 2,883 | General Information This section includes important disclaimers regarding forward-looking statements and provides contact information for investor and press inquiries CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS This section advises readers that the press release contains forward-looking statements subject to various risks and uncertainties, and actual results may differ materially - The press release contains "forward-looking statements" subject to uncertainty and changes in circumstances[22] - Actual results may vary materially due to changes in economic, business, competitive, technological, strategic, and/or regulatory factors[22] - The Company undertakes no duty to update or release any revisions to any forward-looking statement, except as required by law[23] Contacts This section provides information on how to access the press release online and lists contact details for investor relations and press inquiries - The press release can be accessed through Fox Corporation's corporate website at http://www.foxcorporation.com[24](index=24&type=chunk) - Contact details for Investor Relations (Gabrielle Brown, Charlie Costanzo) and Press Inquiries (Brian Nick, Lauren Townsend) are provided[25]