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]. - As of September 30, 2025, the company had substantially all cash and cash equivalents invested in highly rated financial instruments, indicating a strong liquidity position[184]. Acquisitions and Consolidation - The Company acquired approximately 84% of the equity interests in Dorna Sports, S.L. (MotoGP) on July 3, 2025, making it a consolidated subsidiary[157]. - Liberty acquired approximately 84% of the equity interests of MotoGP on July 3, 2025, and consolidated MotoGP's results from that date[211]. - The Liberty Sirius XM Holdings Split-Off was completed on September 9, 2024, exchanging each share of Liberty SiriusXM common stock for 0.8375 of a share of Liberty Sirius XM Holdings common stock[161]. - The Liberty Live Split-Off is expected to be completed on December 15, 2025, and is intended to be tax-free to stockholders[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 revenue and the acquisition of MotoGP[169]. - Formula 1's primary revenue for the nine months ended September 30, 2025, increased by $129 million to $2,089 million compared to the prior year, driven by contractual fee increases and new sponsorships[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]. - MotoGP's primary revenue for the three months ended September 30, 2025, was $147 million, a $1 million increase from the prior year, while for the nine months, it was $365 million, up $41 million[214][215]. - Total motorsport revenue for the three months ended September 30, 2025, was $169 million, unchanged from the prior year, and for the nine months, it was $417 million, an increase from $371 million[214]. - Net earnings from continuing operations were $13 million for the three months ended September 30, 2025, compared to $132 million in the same period of 2024, and $222 million for the nine months ended September 30, 2025, compared to $294 million in 2024[183]. Operating Performance - Consolidated operating income rose by $42 million (39.3%) and $94 million (36.0%) for the three and nine months ended September 30, 2025, respectively, primarily due to improvements in Formula 1's operating results and the acquisition of MotoGP[170]. - 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 operating income for the three months ended September 30, 2025, was $28 million, compared to $36 million in the prior year, and for the nine months, it was $41 million, down from $44 million[214]. Costs and Expenses - The company recorded $14 million in acquisition costs for the three months ended September 30, 2025, compared to $3 million in the same period of 2024, and $28 million for the nine months ended September 30, 2025, compared to $23 million in 2024[173]. - Interest expense increased by $24 million (38.7%) and $14 million (7.6%) for the three and nine months ended September 30, 2025, respectively, primarily due to an increase in the average amount of debt outstanding[177]. - Selling, general and administrative expenses increased by $33 million during the nine months ended September 30, 2025, attributed to higher marketing and personnel costs[207]. - Cost of motorsport revenue for Formula 1 increased by $89 million during the nine months ended September 30, 2025, compared to the prior year, primarily due to higher costs associated with events[201]. - Cost of motorsport revenue increased by $5 million to $84 million for the three months ended September 30, 2025, and by $37 million to $214 million for the nine months[221]. - 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[222]. Tax and Financial Strategy - 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% due to an increase in valuation allowance and non-deductible expenses[182]. - The company does not have a debt rating, which may impact its borrowing capacity and financial strategy[186]. - Liberty expects to fund future cash uses through cash on hand, margin loans, and distributions from operating subsidiaries[190]. Market and Operational Risks - The Company has faced risks related to operational challenges, economic conditions, and regulatory environments that could impact its business performance[156]. - MotoGP is projected to consist of 22 events in 2025, up from 20 events in 2024, indicating market expansion[210]. - The impact of currency exchange rate fluctuations on MotoGP's reported revenue for the three and nine months ended September 30, 2025, would have been approximately $17 million for every 10% change in the Euro/U.S. dollar exchange rate[228]. - MotoGP's revenue in constant currency decreased by 4.7% for the three months ended September 30, 2025, while it grew by 8.9% for the nine months[219]. - MotoGP's pro forma financial information is based on preliminary acquisition price allocation and is intended for comparative purposes only[211].
Liberty(LLYVA) - 2025 Q3 - Quarterly Report