Executive Summary
Fox Corporation delivered a strong QQ2 2025 performance, underscored by a 20% year-over-year revenue increase to $5.08 billion and a 123% surge in EBITDA to a Q2 record of $781 million. The improvement was broad-based, anchored by elevated advertising revenues (up 21%), robust political ad spend at local stations, continued strength in NFL/MLB/postseason viewership, and growing monetization of Tubi (advertising up 31%). Affiliate fee revenues rose 6% as rate-based renewals offset ongoing subscriber declines, reflecting Fox’s strategy of optimizing the value of its channel portfolio while actively managing mix and pricing with distributors. Management emphasized that all affiliate renewals impacting fiscal 2025 have been completed, providing better visibility into 2025 revenue and profitability trajectories.
Management signaled a staged path toward longer-term growth through near-term, high‑quality cash flow drivers (advertising, affiliate pricing, Tubi monetization) and strategic optionality in direct-to-consumer (D2C) initiatives and sports betting licensing. Fox reiterated a D2C plan targeting cord-cutters and cord-nevers with a modest subscriber footprint and low incremental rights costs, expected to launch by year-end. The company also confirmed that Venu, its sports streaming JV, has not moved forward, which reduces execution risk and capital outlay but preserves Fox’s focus on broad distribution. In the near term, Fox remains disciplined on capital returns, having repurchased about $6.15 billion of stock since 2019 and initiated a 27% semiannual dividend, with cash on hand of approximately $3.3 billion against roughly $7.2 billion of debt.
Overall, Fox’s QQ2 2025 results reinforce a diversified media portfolio with resilient ad demand (including political), meaningful growth in digital/video platforms (Tubi), and optionality from D2C and sports betting. The key questions for investors center on the trajectory of subscriber declines versus affiliate pricing power, the pace of Tubi’s path to profitability, the eventual contribution of any D2C initiative to EBITDA, and the timing/financial impact of sports betting licensing across multiple states. The near-term path appears favorable, with meaningful upside potential if political ad markets remain robust, sports viewing metrics stay elevated, and D2C economics prove accretive.
Key Performance Indicators
QoQ: -28.65% | YoY:173.09%
QoQ: -54.90% | YoY:242.20%
QoQ: -54.19% | YoY:256.52%
Key Insights
Revenue: USD 5.078 billion, YoY +20%; Gross profit: USD 5.078 billion (gross margin implied at 100% given data, see note below); Advertising revenues: +21% YoY; Local affiliate revenues: +6%; Tubi ad revenues: +31% YoY; EBITDA: USD 781 million, YoY growth +123%; Operating income: USD 680 million, YoY growth +173%; Net income attributable to stockholders: USD 373 million; EPS: USD 0.82 (diluted USD 0.81); Weighted average shares: 457–462 million; Cash and cash equivalents: USD 3.322 billion; To...
Financial Highlights
Revenue: USD 5.078 billion, YoY +20%; Gross profit: USD 5.078 billion (gross margin implied at 100% given data, see note below); Advertising revenues: +21% YoY; Local affiliate revenues: +6%; Tubi ad revenues: +31% YoY; EBITDA: USD 781 million, YoY growth +123%; Operating income: USD 680 million, YoY growth +173%; Net income attributable to stockholders: USD 373 million; EPS: USD 0.82 (diluted USD 0.81); Weighted average shares: 457–462 million; Cash and cash equivalents: USD 3.322 billion; Total debt: USD 8.122 billion; Net debt: USD 4.80 billion; Free cash flow: -USD 436 million; Operating cash flow: -USD 362 million; Capex: USD 74 million; Dividend: semiannual distribution around USD 120 million; Share repurchases: USD 250 million in the quarter; Buybacks YTD: USD 6.15 billion since inception; Current ratio: 2.50; Net debt to EBITDA (implicit): negative free cash flow in H1; 1H seasonality in working capital evidenced by sports rights payments and receivables build.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
5.08B |
19.93% |
42.48% |
| Gross Profit |
5.08B |
19.93% |
42.48% |
| Operating Income |
680.00M |
173.09% |
-28.65% |
| Net Income |
373.00M |
242.20% |
-54.90% |
| EPS |
0.82 |
256.52% |
-54.19% |
Key Financial Ratios
operatingProfitMargin
13.4%
operatingCashFlowPerShare
$-0.79
freeCashFlowPerShare
$-0.95
Management Commentary
Strategic and operational themes from the earnings call:
- Financial momentum and profitability: “Fox EBITDA more than doubled year-over-year to a second quarter record of $781 million, driven by revenue growth of 20% to just over $5 billion.” (Lachlan Murdoch)
- Affiliate strategy and renewals: “Total affiliate revenue grew by 6%, on the back of higher rates with subscriber declines improving for the second consecutive quarter. Notably, we have now successfully completed all affiliate renewals that will impact fiscal 2025.” (Lachlan Murdoch; Steve Tomsic)
- Tubi and digital advertising strength: “Tubi was a strong contributor to average advertising revenue growth in the quarter, achieving a 31% increase in ad revenues, showing acceleration even when excluding political revenue.” (Lachlan Murdoch)
- D2C plans and pricing/risk: “We are designing an offering to really target those cord-cutters and cord-nevers... modest subscriber expectations and we do not expect any exclusive rights costs or additional incremental rights cost. This service will be a package of our existing content on our existing brands.” Target launch by year‑end. (Lachlan Murdoch)
- Venu decision and distribution strategy: “Our only disappointment in sports is that we will not be moving forward with Venu… the distribution market has made some major strides recently… the inclusion of our channels in these skinny bundles is a real benefit to us.” (Lachlan Murdoch)
- Fox News advertising momentum: “There’s a tremendous amount of new advertisers… over 100 new national clients.” (Lachlan Murdoch)
- Super Bowl focus for Tubi and data strategy: “Tubi Live Stream for the Super Bowl and shoulder programming… opportunities to drive first‑party data and CPM uplift.” (Lachlan Murdoch)
- Financial discipline and capital returns: “We repurchased an additional USD 550 million this year, bringing total buybacks to USD 6.15 billion… dividend per share up 27% semiannually.” (Steve Tomsic; Lachlan Murdoch)
- Balance sheet and liquidity: “Ended the quarter with approximately USD 3.3 billion in cash and USD 7.2 billion in debt.” (Steve Tomsic)
EBITDA more than doubled year-over-year to a second quarter record of $781 million, driven by revenue growth of 20% to just over $5 billion.
— Lachlan Murdoch
We are designing an offering to really target those cord-cutters and cord-nevers... modest subscriber expectations and we do not expect any exclusive rights costs or additional incremental rights cost. This service will be a package of our existing content on our existing brands.
— Lachlan Murdoch
Forward Guidance
Near-term outlook and management guidance considerations:
- D2C launch trajectory and economics: Fox targets a modest D2C subscriber base with low incremental rights costs, leveraging a bundle of existing FOX brands (sports and news). Expected launch by year-end 2025 calendar year. Surveillance of subscriber uptake will be key; the model relies on monetizing first‑party data and cross-selling to bolster both ad and D2C revenue per user.
- Tubi profitability inflection: Management indicates that Tubi investment intensity will ease over the remainder of the current year and into next year, with breakeven or profitability anticipated as scale and ad monetization mature. Expect continued investment in marketing around high‑impact events (e.g., Super Bowl) to accelerate user growth and first‑party data capture, followed by EBITDA uplift in 2025–2026.
- Sports betting licensing and monetization: Fox continues to pursue licensing in approximately 26 states, with a five-year runway to secure material licenses. Management highlighted the upside from FanDuel and Flutter equity positions and the long-term strategic value of having access to a broader sports betting ecosystem, albeit with lengthy regulatory timelines.
- Key factors to monitor: the trajectory of linear and digital ad demand (especially political advertising cycles), the pace of affiliate renewals and pricing power amid subscriber declines, sports rights amortization and related costs, Venu alternatives or successor distribution strategies, and the evolving competitive landscape with Netflix and other digital bidders for live sports content.
- Overall stance: The QQ2 results support a constructive longer-term thesis anchored in diversified cash flow, an improving affiliate mix, and optionality from D2C and sports betting. Investors should monitor the pace of Tubi’s profitability, D2C contribution to earnings, and any regulatory or macro developments that could influence advertising demand and streaming monetization.