Fox(FOX) - 2026 Q2 - Quarterly Report

Revenue Performance - For the three months ended December 31, 2025, total revenues increased by $104 million or 2% to $5,182 million compared to the same period in 2024, driven by higher distribution and advertising revenues [88]. - For the six months ended December 31, 2025, total revenues increased by $278 million or 3% to $8,920 million, attributed to higher distribution, advertising, and content revenues [92]. - Cable Network Programming segment revenues rose by $110 million or 5% for the three months ended December 31, 2025, driven by higher distribution, advertising, and content revenues [102]. - Television segment revenues decreased by $24 million or 1% for the three months ended December 31, 2025, primarily due to lower content revenues, despite higher advertising and distribution revenues [107]. - Television segment revenues increased by $73 million or 1% for the six months ended December 31, 2025, mainly due to higher advertising and distribution revenues [109]. Operating Expenses - Operating expenses for the three months ended December 31, 2025, increased by $119 million or 3% to $3,895 million, mainly due to higher sports programming rights amortization and production costs [90]. - Operating expenses for the six months ended December 31, 2025, increased by $185 million or 3% to $5,979 million, primarily driven by higher sports programming rights and digital content costs [93]. - Operating expenses for Cable Network Programming increased by $72 million or 5% for the three months ended December 31, 2025, primarily due to higher sports programming rights costs [103]. Net Income and EBITDA - Net income for the three months ended December 31, 2025, decreased by $141 million or 36% to $247 million, largely due to changes in the fair value of investments in equity securities [97]. - Adjusted EBITDA for Cable Network Programming decreased by $89 million or 11% for the three months ended December 31, 2025, reflecting the impact of increased expenses [101]. - Adjusted EBITDA for the three months ended December 31, 2025, was $692 million, compared to $781 million for the same period in 2024, representing a decrease of 11.4% [119]. - Corporate and Other EBITDA decreased by $57 million or 70% for the three months ended December 31, 2025, and by $119 million or 78% for the six months ended December 31, 2025, primarily due to costs associated with the launch of FOX One [114]. Cash Flow and Financial Position - The Company has approximately $2.0 billion in cash and cash equivalents as of December 31, 2025, along with an unused $1.0 billion revolving credit facility [120]. - Net cash used in operating activities for the six months ended December 31, 2025, was $(799) million, compared to $(204) million in 2024, indicating a significant increase in cash outflow [124]. - Net cash used in investing activities for the six months ended December 31, 2025, was $(393) million, up from $(240) million in 2024, primarily due to increased investments and capital expenditures [125]. - Net cash used in financing activities for the six months ended December 31, 2025, was $(2.142) billion, compared to $(553) million in 2024, largely due to stock repurchase activities [126]. Dividends and Acquisitions - The Company declared a semi-annual dividend of $0.28 per share, payable on March 25, 2026, with a record date of March 4, 2026 [128]. - The Company is evaluating potential acquisitions and dispositions of certain businesses and assets, which may involve cash or the assumption of additional indebtedness [123]. Credit Rating - The Company maintains a stable credit rating of Baa2 from Moody's and BBB from Standard & Poor's as of December 31, 2025 [130].