Liberty(LSXMK) - 2025 Q3 - Quarterly Report

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, substantially all cash and cash equivalents were invested in highly rated financial instruments, indicating a strong liquidity position[184]. - Potential sources of liquidity include available cash balances, cash generated by operating activities, and proceeds from net asset sales[185]. - Liberty expects to fund its projected uses of cash through cash on hand, borrowing capacity, and distributions from operating subsidiaries[190]. 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 acquisition price allocation related to the MotoGP acquisition is preliminary and subject to adjustments[211]. Revenue and Income - 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]. - 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]. Expenses and Costs - 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]. - 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]. - 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]. - Stock-based compensation expense was $18 million for the nine months ended September 30, 2025, down from $27 million in the same period of 2024[172]. - Acquisition costs related to corporate acquisitions were $14 million for the three months ended September 30, 2025, compared to $3 million in the same period of 2024[173]. Tax and Earnings - 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[183]. - 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]. Event and Market Expansion - The Formula 1 Championship is an annual competition lasting approximately nine months, with various events taking place in different countries[156]. - MotoGP's 2025 Championship calendar is scheduled to consist of 22 events, an increase from 20 events in 2024, indicating market expansion[210]. - The number of MotoGP events increased to 17 for the nine months ended September 30, 2025, compared to 15 in the prior year[214].