News (NWS) - 2026 Q2 - Quarterly Results

Revenue Growth - Revenues for the second quarter increased 6% to $2.36 billion compared to $2.24 billion in the prior year, driven by growth in Dow Jones, Digital Real Estate Services, and Book Publishing segments[10]. - Total revenues for the three months ended December 31, 2025, were $2,362 million, an increase from $2,238 million in the prior year, representing a growth of 5.5%[45]. - Total Segment EBITDA for the quarter was $521 million, a 9% increase from $478 million in the prior year, supported by strong contributions from Digital Real Estate Services and Dow Jones segments[12]. - Adjusted revenues for the six months ended December 31, 2025, were $4,323 million, reflecting a $172 million increase from $4,334 million in 2024[61]. - Adjusted total revenues for Q2 2025 reached $2,311 million, a 3% increase from $2,233 million in Q2 2024[64]. - Total current assets as of December 31, 2025, were $4,573 million, a decrease from $4,811 million as of June 30, 2025[48]. Net Income and Earnings - Net income from continuing operations decreased 21% to $242 million, down from $306 million in the prior year, primarily due to the absence of a prior year gain from the sale of PropertyGuru[11]. - Net income attributable to News Corporation stockholders for the three months ended December 31, 2025, was $193 million, down from $215 million in the prior year, a decrease of 10.2%[45]. - Net income from continuing operations for the six months ended December 31, 2025, was $392 million, a decrease of 14% compared to $455 million in 2024[55]. - Adjusted net income for Q2 Fiscal 2026 was $227 million, representing a 20% increase compared to $189 million in Q2 Fiscal 2025[70]. - Adjusted net income for the six months ended December 31, 2025, was $349 million, compared to $306 million for the same period in 2024, reflecting a 14% increase[70]. Segment Performance - Dow Jones revenues grew 8% to $648 million, with a notable 20% increase in Risk & Compliance revenues, and digital revenues accounted for 82% of total revenues[16]. - Digital Real Estate Services revenues increased 8% to $511 million, with Move's revenues rising 10% to $143 million, driven by premium offerings and audience share gains[21]. - Book Publishing revenues rose 6% to $633 million, aided by recent acquisitions and strong frontlist titles, despite a $16 million one-time write-off related to inventory[24]. - Digital revenues represented 43% of News Media segment revenues, up from 39% in the prior year, indicating a shift towards digital subscriptions and advertising[30]. - Dow Jones segment adjusted revenues increased by 6% to $637 million in Q2 2025, compared to $600 million in Q2 2024[64]. - Digital Real Estate Services segment adjusted revenues rose by 7% to $506 million in Q2 2025, up from $471 million in Q2 2024[64]. Cash Flow and Expenses - Free cash flow for the six months ended December 31, 2025, was $136 million, up from $121 million in the prior year, primarily due to higher cash provided by operating activities[31]. - Operating expenses for the three months ended December 31, 2025, were $1,008 million, compared to $963 million in the prior year, an increase of 4.7%[45]. - The company reported a net cash provided by operating activities from continuing operations of $316 million for the six months ended December 31, 2025, compared to $278 million in 2024[51]. - Capital expenditures for the six months ended December 31, 2025, were $180 million, an increase from $157 million in 2024[51]. - The net cash used in financing activities from continuing operations was $419 million for the six months ended December 31, 2025, compared to $342 million in 2024[51]. Subscriber Growth - Total average subscriptions to Dow Jones' consumer products increased 10% to over 6.5 million, with digital-only subscriptions growing 12% to over 6.0 million[18]. - Digital subscribers at News Corp Australia reached 1,168,000 as of December 31, 2025, up from 1,126,000 in the prior year, marking a growth of 3.7%[34]. - The Times and Sunday Times had 659,000 digital subscribers as of December 31, 2025, compared to 616,000 in the prior year, reflecting a growth of 7%[34]. Future Outlook - The company plans to host a Dow Jones Investor Briefing on March 16th in New York City to highlight growth prospects[10]. - The company plans to continue evaluating its core business operations by using Adjusted Total Segment EBITDA, which excludes certain non-cash items and impacts from acquisitions and divestitures[57].