Fox (FOXA) Q2 2025 earnings summary

Executive summary

• Quarterly revenue rose 20% year-over-year to $5.08 billion, driven by strong affiliate, advertising, and sports sublicensing revenue, as well as digital growth from Tubi and robust sports and political ad spend.

• Adjusted EBITDA more than doubled to $781 million, a 123% increase, reflecting higher revenues and operating leverage.

• Net income attributable to stockholders increased to $373 million from $109 million in the prior year, with adjusted net income at $442 million ($0.96/share), up from $0.34/share.

• Growth was fueled by record political ad spend, strong sports viewership, Fox News ratings, and continued audience expansion at Tubi.

• The Venu Sports joint venture was discontinued, resulting in $170 million in restructuring and related charges, including an $80 million legal settlement.

Financial highlights

• Advertising revenue increased 21% year-over-year, led by political ads, sports, and Tubi; affiliate fee revenue grew 6%.

• Other revenues rose 70% due to higher sports sublicensing.

• Operating expenses increased 11% to $3.78 billion, mainly from higher sports programming rights and production costs.

• Adjusted EBITDA margin improved to roughly 15.4%.

• Diluted EPS was $0.81, up from $0.23 last year.

Outlook and guidance

• Management expects continued benefit from political advertising and sports programming, with Tubi expected to reach profitability as planned.

• Digital investment losses are projected to decline from mid-$300 million to high $200 million for the fiscal year.

• A direct-to-consumer service targeting non-cable subscribers is set to launch by year-end, with modest subscriber expectations and low incremental costs.

• The company plans to maintain semi-annual dividends and continue share repurchases, subject to board approval.

• Management remains committed to long-term value creation through live news, sports, and digital expansion.