Fox (FOXA) Q2 2026 earnings summary

Executive summary

• Fiscal Q2 2026 revenues reached $5.18 billion, up 2% year-over-year, driven by strong advertising and distribution growth.

• Net income attributable to stockholders was $229 million ($0.52 per share), down 39% year-over-year, primarily due to lower investment gains and higher expenses.

• Adjusted EBITDA was $692 million, down from $781 million in the prior year quarter due to higher expenses.

• Tubi achieved its most streamed quarter ever, with 27% year-over-year growth in total view time and 19% revenue growth, reaching EBITDA profitability for the second consecutive quarter.

• Fox One, launched in August 2025, exceeded expectations in subscriber growth and engagement, with no noticeable cannibalization of traditional subscribers.

Financial highlights

• Distribution revenues grew 4% year-over-year, led by 5% growth in Cable Network Programming.

• Advertising revenues increased 1%, supported by higher sports and news pricing and digital growth, especially from Tubi AVOD.

• Adjusted EBITDA margin was 13.4%, down from 15.4% in the prior year quarter.

• Net income attributable to stockholders was $229 million ($0.52 per share), compared to $373 million ($0.81 per share) last year; adjusted net income was $360 million and adjusted EPS was $0.82.

• Free cash flow deficit of $791 million, reflecting seasonal working capital patterns.

Outlook and guidance

• Expectation of a robust political advertising cycle, especially benefiting news and local stations.

• Anticipation of continued strong advertising demand across sports, news, and streaming, with positive momentum into the second half of the fiscal year.

• Fox One projected to reach low- to mid-single-digit millions of subscribers over the next 3-4 years.

• Management expects continued pressure on advertising due to evolving consumer behavior and technology shifts.

• The company anticipates ongoing investments in digital platforms and sports rights.