Fox Corporation

05/11/2026 | Press release | Distributed by Public on 05/11/2026 07:25

Quarterly Report for Quarter Ending March 31, 2026 (Form 10-Q)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Readers should carefully review this document and the other documents filed by Fox Corporation ("FOX" or the "Company") with the Securities and Exchange Commission (the "SEC"). This section should be read together with the unaudited interim consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q and the Annual Report on Form 10-K for the fiscal year ended June 30, ("fiscal") 2025 as filed with the SEC on August 6, 2025 (the "2025 Form 10-K"). The Unaudited Consolidated Financial Statements are referred to as the "Financial Statements" herein.
INTRODUCTION
Management's discussion and analysis of financial condition and results of operations is intended to help provide an understanding of the Company's financial condition, changes in financial condition and results of operations. This discussion is organized as follows:
•Overview of the Company's Business-This section provides a general description of the Company's businesses, as well as developments that occurred during the three and nine months ended March 31, 2026 and 2025 that the Company believes are important in understanding its results of operations and financial condition or to disclose known trends.
•Results of Operations-This section provides an analysis of the Company's results of operations for the three and nine months ended March 31, 2026 and 2025. This analysis is presented on both a consolidated and a segment basis. In addition, a brief description is provided of significant transactions and events that impact the comparability of the results being analyzed.
•Liquidity and Capital Resources-This section provides an analysis of the Company's cash flows for the nine months ended March 31, 2026 and 2025, as well as a discussion of the Company's outstanding debt and commitments, both firm and contingent, that existed as of March 31, 2026. Included in the discussion of outstanding debt is a discussion of the amount of financial capacity available to fund the Company's future commitments and obligations, as well as a discussion of other financing arrangements.
•Caution Concerning Forward-Looking Statements-This section provides a description of the use of forward-looking information appearing in this Quarterly Report on Form 10-Q, including in Management's Discussion and Analysis of Financial Condition and Results of Operations. Such information is based on management's current expectations about future events which are subject to change and to inherent risks and uncertainties. Refer to Part I., Item 1A. "Risk Factors" in the 2025 Form 10-K for a discussion of the risk factors applicable to the Company.
OVERVIEW OF THE COMPANY'S BUSINESS
The Company is a news, sports and entertainment company, which manages and reports its businesses in four operating segments: Cable Network Programming, Television, Credible and the FOX Studio Lot with the following two reportable segments:
•Cable Network Programming, which produces and licenses news and sports content distributed through traditional cable television systems, direct broadcast satellite operators and telecommunication companies ("traditional MVPDs"), virtual multi-channel video programming distributors ("virtual MVPDs") and other digital platforms, primarily in the U.S.
•Television, which produces, acquires, markets and distributes programming through the FOX broadcast network, advertising-supported video-on-demand ("AVOD") service Tubi, 29 full power broadcast television stations, including 11 duopolies, and other digital platforms, primarily in the U.S. Eighteen of the broadcast television stations are affiliated with the FOX Network and 11 are affiliated with MyNetworkTV. The segment also includes various production companies that produce content for the Company and third parties.
The Credible and the FOX Studio Lot operating segments do not meet the criteria under U.S. generally accepted accounting principles ("GAAP") to be separately reported as a reportable segment or aggregated with other operating segments, and as such are presented as part of Corporate and Other, which is not a reportable segment. Corporate and Other principally consists of FOX One, the Company's direct-to-consumer subscription
streaming service launched in August 2025, Credible, the FOX Studio Lot and corporate overhead costs. Credible is a U.S. consumer finance marketplace. The FOX Studio Lot, located in Los Angeles, California, provides television and film production services along with office space, studio operation services and includes all operations of the facility.
We use the term "MVPDs" to refer collectively to traditional MVPDs and virtual MVPDs.
RESULTS OF OPERATIONS
Results of Operations-For the three and nine months ended March 31, 2026 versus the three and nine months ended March 31, 2025.
The following table sets forth the Company's operating results for the three and nine months ended March 31, 2026, as compared to the three and nine months ended March 31, 2025:
For the three months ended March 31,
For the nine months ended March 31,
2026 2025 Change % Change 2026 2025 Change % Change
(in millions, except %) Better/(Worse) Better/(Worse)
Revenues
Distribution(a)
$ 2,107 $ 2,039 $ 68 3 % $ 6,024 $ 5,840 $ 184 3 %
Advertising 1,556 2,036 (480) (24) % 5,423 5,787 (364) (6) %
Content and other 331 296 35 12 % 1,467 1,386 81 6 %
Total revenues 3,994 4,371 (377) (9) % 12,914 13,013 (99) (1) %
Operating expenses (2,494) (2,965) 471 16 % (8,473) (8,759) 286 3 %
Selling, general and administrative (546) (551) 5 1 % (1,730) (1,578) (152) (10) %
Depreciation and amortization (101) (95) (6) (6) % (299) (283) (16) (6) %
Restructuring, impairment and other corporate matters (32) (55) 23 42 % (38) (251) 213 85 %
Equity losses of affiliates (20) (18) (2) (11) % (18) (11) (7) (64) %
Interest expense, net (66) (55) (11) (20) % (214) (185) (29) (16) %
Non-operating other, net (499) (158) (341) ** (785) 156 (941) **
Income before income tax expense 236 474 (238) (50) % 1,357 2,102 (745) (35) %
Income tax expense (61) (120) 59 49 % (326) (528) 202 38 %
Net income 175 354 (179) (51) % 1,031 1,574 (543) (34) %
Less: Net income attributable to noncontrolling interests (9) (8) (1) (13) % (37) (28) (9) (32) %
Net income attributable to Fox Corporation stockholders $ 166 $ 346 $ (180) (52) % $ 994 $ 1,546 $ (552) (36) %
(a)
The Company generates distribution revenue from agreements with MVPDs for cable network programming and retransmission fees for the broadcast of the Company's owned and operated television stations and from subscription fees for the Company's direct-to-consumer streaming services. In addition, the Company generates distribution revenue from agreements with independently owned television stations that are affiliated with the FOX Network.
** not meaningful
Overview
For the three months ended March 31, 2026 and 2025
The Company's revenues decreased $377 million or 9% for the three months ended March 31, 2026, as compared to the corresponding period of fiscal 2025, primarily due to lower advertising revenue, partially offset by higher distribution and content and other revenues. The increase of $68 million or 3% in distribution revenue was due to the impact of higher average rates per subscriber of approximately $90 million, partially offset by the approximately $20 million impact of a lower average number of subscribers. The decrease of $480 million or 24% in advertising revenue was primarily due to the absence of the February 2025 broadcast of Super Bowl LIX and lower ratings, partially offset by the approximately $200 million impact due to continued digital growth led by the Tubi AVOD service, the broadcast of an additional National Football League ("NFL") postseason game and higher pricing. The increase of $35 million or 12% in content and other revenues was primarily due to higher sports sublicensing revenue.
Operating expenses decreased $471 million or 16% for the three months ended March 31, 2026, as compared to the corresponding period of fiscal 2025, primarily due to the approximately $535 million impact of lower sports programming rights amortization and production costs driven by the absence of the February 2025 broadcast of Super Bowl LIX partially offset by the broadcast of an additional NFL postseason game. This decrease was partially offset by the approximately $65 million impact primarily due to costs associated with the launch of Fox One and higher entertainment programming rights amortization and production costs.
Selling, general and administrative expenses decreased $5 million or 1% for the three months ended March 31, 2026, as compared to the corresponding period of fiscal 2025, primarily due to lower legal costs.
For the nine months ended March 31, 2026 and 2025
The Company's revenues decreased $99 million or 1% for the nine months ended March 31, 2026, as compared to the corresponding period of fiscal 2025, due to lower advertising revenue, partially offset by higher distribution and content and other revenues. The increase of $184 million or 3% in distribution revenue was due to higher average rates per subscriber and higher fees received from television stations that are affiliated with the FOX Network of approximately $360 million, partially offset by the approximately $175 million impact of a lower average number of subscribers. The decrease of $364 million or 6% in advertising revenue was primarily due to the approximately $435 million impact related to sports programming led by the absence of the February 2025 broadcast of Super Bowl LIX partially offset by the broadcast of additional NFL and Major League Baseball ("MLB") postseason games and higher pricing. The remaining impact was primarily due to continued digital growth led by the Tubi AVOD service and higher news pricing, partially offset by lower political advertising revenue due to the absence of the 2024 presidential and congressional elections and lower news ratings. The increase of $81 million or 6% in content and other revenues was primarily due to higher sports sublicensing revenue partially offset by lower entertainment production services revenue led by the timing of deliveries.
Operating expenses decreased $286 million or 3% for the nine months ended March 31, 2026, as compared to the corresponding period of fiscal 2025, primarily due to the approximately $440 million impact of lower sports programming rights amortization driven by the absence of the February 2025 broadcast of Super Bowl LIX partially offset by higher NFL costs, including the broadcast of an additional NFL postseason game. Also partially offsetting this decrease was the approximately $155 million impact primarily due to costs associated with the launch of Fox One and higher digital content costs.
Selling, general and administrative expenses increased $152 million or 10% for the nine months ended March 31, 2026, as compared to the corresponding period of fiscal 2025, primarily due to costs associated with the launch of Fox One and higher employee costs.
Restructuring, impairment and other corporate matters-See Note 11-Additional Financial Information to the accompanying Financial Statements under the heading "Restructuring, Impairment and Other Corporate Matters."
Interest expense, net-Interest expense, net increased $11 million and $29 million or 20% and 16% for the three and nine months ended March 31, 2026, respectively, as compared to the corresponding period of fiscal 2025, primarily due to lower interest income as a result of lower average cash and cash equivalent balances, partially offset by a lower average amount of debt outstanding.
Non-operating other, net-See Note 11-Additional Financial Information to the accompanying Financial Statements under the heading "Non-Operating Other, net."
Income tax expense-The Company's tax provision and related effective tax rate of 26% and 24% for the three and nine months ended March 31, 2026, respectively, was higher than the statutory rate of 21% primarily due to state taxes and other permanent items.
The Company's tax provision and related effective tax rate of 25% for the three and nine months ended March 31, 2025 was higher than the statutory rate of 21% primarily due to state taxes and other permanent items.
Net income-Net income decreased $179 million or 51% and $543 million or 34% for the three and nine months ended March 31, 2026, respectively, as compared to the corresponding periods of fiscal 2025, primarily due to a change in fair value of the Company's investments in equity securities, partially offset by higher Segment EBITDA (as defined below) and, for the nine months ended March 31, 2026, lower legal settlement and other costs associated with the discontinuation of Venu Sports in fiscal 2025. These changes resulted in lower income before income tax expense and a corresponding lower provision for income tax.
Segment Analysis
The Company's operating segments have been determined in accordance with the Company's internal management structure, which is organized based on operating activities. The Company evaluates performance based upon several factors, of which the primary financial measure is Segment EBITDA (defined below). Due to the integrated nature of these operating segments, estimates and judgments are made in allocating certain assets, revenues and expenses. Intersegment transactions principally relate to the sublicensing of sports content, direct-to-consumer streaming services and rental of studio and administrative space, which are recorded consistently with the recognition of transactions with third parties and are eliminated in consolidation.
Segment EBITDA is defined as Revenues less Operating expenses and Selling, general and administrative expenses. Segment EBITDA does not include: Depreciation and amortization, Restructuring, impairment and other corporate matters, Equity earnings (losses) of affiliates, Interest expense, net, Non-operating other, net and Income tax expense. Effective July 1, 2025, the Company no longer removes the impact of amortization of cable distribution investments when calculating Segment EBITDA. Prior periods were not restated as the impact of the change is immaterial to the calculation. Management believes that Segment EBITDA is an appropriate measure for evaluating the operating performance of the Company's operating segments because it is the primary measure used by the Company's chief operating decision maker, the Chief Executive Officer, to monitor actual versus budget and prior fiscal year financial results, forecast future periods and perform competitive analyses to evaluate performance and allocate resources.
The following tables set forth the Company's Revenues and Segment EBITDA for the three and nine months ended March 31, 2026, as compared to the three and nine months ended March 31, 2025:
For the three months ended March 31,
For the nine months ended March 31,
2026 2025 Change % Change 2026 2025 Change % Change
(in millions, except %) Better/(Worse) Better/(Worse)
Revenues
Cable Network Programming $ 1,741 $ 1,636 $ 105 6 % $ 5,678 $ 5,398 $ 280 5 %
Television 2,197 2,704 (507) (19) % 7,184 7,618 (434) (6) %
Corporate and Other 152 58 94 ** 365 181 184 **
Eliminations (96) (27) (69) ** (313) (184) (129) (70) %
Total revenues $ 3,994 $ 4,371 $ (377) (9) % $ 12,914 $ 13,013 $ (99) (1) %
For the three months ended March 31,
For the nine months ended March 31,
2026 2025 Change % Change 2026 2025 Change % Change
(in millions, except %) Better/(Worse) Better/(Worse)
Segment EBITDA
Cable Network Programming $ 884 $ 878 $ 6 1 % $ 2,371 $ 2,283 $ 88 4 %
Television 191 60 131 ** 733 637 96 15 %
Corporate and Other (121) (82) (39) (48) % (393) (235) (158) (67) %
Adjusted EBITDA(a)
$ 954 $ 856 $ 98 11 % $ 2,711 $ 2,685 $ 26 1 %
** not meaningful
(a)
For a discussion of Adjusted EBITDA and a reconciliation of Net income to Adjusted EBITDA, see "Non-GAAP Financial Measures" below.
Cable Network Programming (44% and 41% of the Company's revenues for the first nine months of fiscal 2026 and 2025, respectively)
For the three months ended March 31,
For the nine months ended March 31,
2026 2025 Change % Change 2026 2025 Change % Change
(in millions, except %) Better/(Worse) Better/(Worse)
Revenues
Distribution $ 1,233 $ 1,169 $ 64 5 % $ 3,486 $ 3,340 $ 146 4 %
Advertising 390 372 18 5 % 1,226 1,153 73 6 %
Content and other 118 95 23 24 % 966 905 61 7 %
Total revenues 1,741 1,636 105 6 % 5,678 5,398 280 5 %
Operating expenses (702) (601) (101) (17) % (2,831) (2,657) (174) (7) %
Selling, general and administrative (155) (158) 3 2 % (476) (467) (9) (2) %
Amortization of cable distribution investments - 1 (1) (100) % - 9 (9) (100) %
Segment EBITDA $ 884 $ 878 $ 6 1 % $ 2,371 $ 2,283 $ 88 4 %
For the three months ended March 31, 2026 and 2025
Revenues at the Cable Network Programming segment increased $105 million or 6% for the three months ended March 31, 2026, as compared to the corresponding period of fiscal 2025, due to higher distribution, advertising and content and other revenues. Distribution revenue increased $64 million or 5% as higher average rates per subscriber were partially offset by a decrease in the average number of subscribers. The increase of $18 million or 5% in advertising revenue was primarily due to sports programming and higher news pricing partially offset by lower ratings. The increase of $23 million or 24% in content and other revenues was primarily due to higher sports sublicensing revenue.
Cable Network Programming Segment EBITDA increased $6 million or 1% for the three months ended March 31, 2026, as compared to the corresponding period of fiscal 2025, due to the revenue increases noted above, partially offset by higher expenses. Operating expenses increased $101 million or 17% primarily due to higher sports programming rights amortization led by expanded international soccer rights. Selling, general and administrative expenses decreased $3 million or 2% primarily due to lower legal costs.
For the nine months ended March 31, 2026 and 2025
Revenues at the Cable Network Programming segment increased $280 million or 5% for the nine months ended March 31, 2026, as compared to the corresponding period of fiscal 2025, due to higher distribution,
advertising and content and other revenues. Distribution revenue increased $146 million or 4% as higher average rates per subscriber were partially offset by a decrease in the average number of subscribers. The increase of $73 million or 6% in advertising revenue was primarily due to higher news and sports pricing partially offset by lower ratings. The increase of $61 million or 7% in content and other revenues was primarily due to higher sports sublicensing revenue.
Cable Network Programming Segment EBITDA increased $88 million or 4% for the nine months ended March 31, 2026, as compared to the corresponding period of fiscal 2025, due to the revenue increases noted above, partially offset by higher expenses. Operating expenses increased $174 million or 7% primarily due to higher sports programming rights amortization led by expanded international soccer rights. This increase was partially offset by lower newsgathering costs due to the absence of the 2024 presidential election. Selling, general and administrative expenses increased $9 million or 2% primarily due to higher technology costs, partially offset by lower legal costs.
Television (56% and 59% of the Company's revenues for the first nine months of fiscal 2026 and 2025, respectively)
For the three months ended March 31,
For the nine months ended March 31,
2026 2025 Change % Change 2026 2025 Change % Change
(in millions, except %) Better/(Worse) Better/(Worse)
Revenues
Advertising $ 1,166 $ 1,664 $ (498) (30) % $ 4,197 $ 4,634 $ (437) (9) %
Distribution 858 870 (12) (1) % 2,510 2,500 10 - %
Content and other 173 170 3 2 % 477 484 (7) (1) %
Total revenues 2,197 2,704 (507) (19) % 7,184 7,618 (434) (6) %
Operating expenses (1,736) (2,359) 623 26 % (5,642) (6,191) 549 9 %
Selling, general and administrative (270) (285) 15 5 % (809) (790) (19) (2) %
Segment EBITDA $ 191 $ 60 $ 131 ** $ 733 $ 637 $ 96 15 %
** not meaningful
For the three months ended March 31, 2026 and 2025
Revenues at the Television segment decreased $507 million or 19% for the three months ended March 31, 2026, as compared to the corresponding period of fiscal 2025, due to lower advertising and distribution revenues, partially offset by higher content and other revenues. The decrease of $498 million or 30% in advertising revenue was primarily due to the absence of the February 2025 broadcast of Super Bowl LIX, partially offset by the broadcast of an additional NFL postseason game and continued digital growth led by the Tubi AVOD service. The decrease of $12 million or 1% in distribution revenue was due to a lower average number of subscribers at the Company's owned and operated television stations.
Television Segment EBITDA increased $131 million for the three months ended March 31, 2026, as compared to the corresponding period of fiscal 2025, as the revenue decreases noted above were more than offset by lower expenses. Operating expenses decreased $623 million or 26% primarily due to lower sports programming rights amortization and production costs principally due to the absence of the February 2025 broadcast of Super Bowl LIX partially offset by the broadcast of an additional NFL postseason game. Also partially offsetting this decrease was higher entertainment programming rights amortization and production costs and entertainment marketing costs. Selling, general and administrative expenses decreased $15 million or 5% primarily due to lower legal costs.
For the nine months ended March 31, 2026 and 2025
Revenues at the Television segment decreased $434 million or 6% for the nine months ended March 31, 2026, as compared to the corresponding period of fiscal 2025, due to lower advertising and content and other
revenues, partially offset by higher distribution revenue. The decrease of $437 million or 9% in advertising revenue was primarily due to sports programming led by the absence of the February 2025 broadcast of Super Bowl LIX partially offset by the broadcast of additional NFL and MLB postseason games and higher pricing. Also contributing to this decrease was lower political advertising revenue principally due to the absence of the 2024 presidential and congressional elections. These decreases were partially offset by continued digital growth led by the Tubi AVOD service. The increase of $10 million in distribution revenue was due to higher average rates per subscriber partially offset by a lower average number of subscribers at the Company's owned and operated television stations and higher fees received from television stations that are affiliated with the FOX Network. The decrease of $7 million or 1% in content and other revenues was primarily due to lower entertainment production services revenue led by the timing of deliveries.
Television Segment EBITDA increased $96 million or 15% for the nine months ended March 31, 2026, as compared to the corresponding period of fiscal 2025, as the revenue decreases noted above were more than offset by lower expenses. Operating expenses decreased $549 million or 9% primarily due to lower sports programming amortization led by the absence of the February 2025 broadcast of Super Bowl LIX partially offset by higher NFL costs, including the broadcast of an additional NFL postseason game, and higher digital content costs. Selling, general and administrative expenses increased $19 million or 2% primarily due to higher employee costs, partially offset by lower legal costs.
Corporate and Other
For the three months ended March 31,
For the nine months ended March 31,
2026 2025 Change % Change 2026 2025 Change % Change
(in millions, except %) Better/(Worse) Better/(Worse)
Revenues $ 152 $ 58 $ 94 ** $ 365 $ 181 $ 184 **
Operating expenses (139) (19) (120) ** (272) (55) (217) **
Selling, general and administrative (134) (121) (13) (11) % (486) (361) (125) (35) %
Segment EBITDA $ (121) $ (82) $ (39) (48) % $ (393) $ (235) $ (158) (67) %
** not meaningful
For the three and nine months ended March 31, 2026 and 2025
Revenues within Corporate and Other for the three and nine months ended March 31, 2026 and 2025 include distribution revenue at FOX One and revenues generated by Credible and the operation of the FOX Studio Lot. Operating expenses for the three and nine months ended March 31, 2026 and 2025 include costs associated with the launch of FOX One and advertising and promotional expenses at Credible. Selling, general and administrative expenses for the three and nine months ended March 31, 2026 and 2025 primarily relate to employee costs, professional fees, costs associated with the launch of FOX One and the costs of operating the FOX Studio Lot.
Corporate and Other EBITDA decreased $39 million or 48% and $158 million or 67% for the three and nine months ended March 31, 2026, respectively, as compared to the corresponding periods of fiscal 2025, primarily due to intercompany FOX branded content and marketing costs associated with the launch of FOX One, which more than offset related distribution revenue.
Non-GAAP Financial Measures
Adjusted EBITDA is defined as Revenues less Operating expenses and Selling, general and administrative expenses. Adjusted EBITDA does not include: Depreciation and amortization, Restructuring, impairment and other corporate matters, Equity earnings (losses) of affiliates, Interest expense, net, Non-operating other, net and Income tax expense. Effective July 1, 2025, the Company no longer removes the impact of amortization of cable distribution investments when calculating Adjusted EBITDA. Prior periods were not restated as the impact of the change is immaterial to the calculation.
Management believes that information about Adjusted EBITDA assists all users of the Company's Financial Statements by allowing them to evaluate changes in the operating results of the Company's portfolio of businesses separate from non-operational factors that affect Net income, thus providing insight into both operations and the other factors that affect reported results. Adjusted EBITDA provides management, investors and equity analysts a measure to analyze the operating performance of the Company's business and its enterprise value against historical data and competitors' data, although historical results, including Adjusted EBITDA, may not be indicative of future results (as operating performance is highly contingent on many factors, including customer tastes and preferences).
Adjusted EBITDA is considered a non-GAAP financial measure and should be considered in addition to, not as a substitute for, net income, cash flow and other measures of financial performance reported in accordance with GAAP. In addition, this measure does not reflect cash available to fund requirements and excludes items, such as depreciation and amortization and impairment charges, which are significant components in assessing the Company's financial performance. Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.
The following table reconciles Net income to Adjusted EBITDA for the three and nine months ended March 31, 2026, as compared to the three and nine months ended March 31, 2025:
For the three months ended March 31,
For the nine months ended March 31,
2026 2025 2026 2025
(in millions)
Net income $ 175 $ 354 $ 1,031 $ 1,574
Add
Amortization of cable distribution investments - 1 - 9
Depreciation and amortization 101 95 299 283
Restructuring, impairment and other corporate matters 32 55 38 251
Equity losses of affiliates 20 18 18 11
Interest expense, net 66 55 214 185
Non-operating other, net 499 158 785 (156)
Income tax expense 61 120 326 528
Adjusted EBITDA $ 954 $ 856 $ 2,711 $ 2,685
The following table sets forth the computation of Adjusted EBITDA for the three and nine months ended March 31, 2026, as compared to the three and nine months ended March 31, 2025:
For the three months ended March 31,
For the nine months ended March 31,
2026 2025 2026 2025
(in millions)
Revenues $ 3,994 $ 4,371 $ 12,914 $ 13,013
Operating expenses (2,494) (2,965) (8,473) (8,759)
Selling, general and administrative (546) (551) (1,730) (1,578)
Amortization of cable distribution investments - 1 - 9
Adjusted EBITDA $ 954 $ 856 $ 2,711 $ 2,685
LIQUIDITY AND CAPITAL RESOURCES
Current Financial Condition
The Company has approximately $3.6 billion of cash and cash equivalents as of March 31, 2026 and an unused five-year $1.0 billion unsecured revolving credit facility (See Note 5-Borrowings to the accompanying Financial Statements). The Company also has access to global capital markets, subject to market conditions.
As of March 31, 2026, the Company was in compliance with all of the covenants under the revolving credit facility, and it does not anticipate any noncompliance with such covenants.
The principal uses of cash that affect the Company's liquidity position include the following: the acquisition of rights and related payments for entertainment and sports programming; operational expenditures including production costs; marketing and promotional expenses; expenses related to broadcasting the Company's programming; employee and facility costs; capital expenditures; acquisitions, including redeemable noncontrolling interests; income taxes, interest and dividend payments; debt repayments; legal settlements; and stock repurchases.
The Company has evaluated, and expects to continue to evaluate, possible acquisitions and dispositions of certain businesses and assets. Such transactions may be material and may involve cash, the Company's securities or the assumption of additional indebtedness.
Sources and Uses of Cash
Net cash provided by operating activities for the nine months ended March 31, 2026 and 2025 was as follows (in millions):
For the nine months ended March 31,
2026 2025
Net cash provided by operating activities $ 1,103 $ 1,811
The decrease in net cash provided by operating activities during the nine months ended March 31, 2026, as compared to the corresponding period of fiscal 2025, was primarily due to lower advertising receipts due to the absence of Super Bowl LIX and the 2024 presidential and congressional elections and higher sports programming payments.
Net cash used in investing activities for the nine months ended March 31, 2026 and 2025 was as follows (in millions):
For the nine months ended March 31,
2026 2025
Net cash used in investing activities $ (543) $ (407)
The increase in net cash used in investing activities during the nine months ended March 31, 2026, as compared to the corresponding period of fiscal 2025, was primarily due to an increase in the Company's investments and capital expenditures, partially offset by a decrease in the Company's acquisitions.
Net cash used in financing activities for the nine months ended March 31, 2026 and 2025 was as follows (in millions):
For the nine months ended March 31,
2026 2025
Net cash used in financing activities $ (2,310) $ (908)
The increase in net cash used in financing activities during the nine months ended March 31, 2026, as compared to the corresponding period of fiscal 2025, was primarily due to activity under the stock repurchase program, including the $1.5 billion accelerated share repurchase transaction (See Note 6-Stockholders' Equity to the accompanying Financial Statements under the heading "Stock Repurchase Program"), and the Company's purchase of noncontrolling interest.
Stock Repurchase Program
See Note 6-Stockholders' Equity to the accompanying Financial Statements under the heading "Stock Repurchase Program."
Dividends
The Company declared a semi-annual dividend of $0.28 per share on both the Class A Common Stock and the Class B Common Stock during the three months ended March 31, 2026, which was paid on March 25, 2026.The Company expects to continue to pay semi-annual dividends, although each dividend is subject to approval by the Company's Board of Directors.
Debt Instruments
Borrowings include senior notes (See Note 5-Borrowings to the accompanying Financial Statements).
Ratings of the Senior Notes
The following table summarizes the Company's credit ratings as of March 31, 2026:
Rating Agency Senior Debt Outlook
Moody's Baa2 Stable
Standard & Poor's BBB Stable
Revolving Credit Agreement
The Company has an unused five-year $1.0 billion unsecured revolving credit facility with a maturity date of June 2028 (See Note 5-Borrowings to the accompanying Financial Statements).
Commitments and Contingencies
See Note 8-Commitments and Contingencies to the accompanying Financial Statements.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
There have been no material changes to the accounting policies and estimates as described in Part II., Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations-Critical Accounting Policies and Estimates" in the 2025 Form 10-K.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This document contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical or current fact are "forward-looking statements" for purposes of federal and state securities laws, including any statements regarding (i) future earnings, revenues or other measures of the Company's financial performance; (ii) the Company's plans, strategies and objectives for future operations; (iii) proposed new programming or other offerings; (iv) future economic conditions or performance; and (v) assumptions underlying any of the foregoing. Forward-looking statements may include, among others, the words "may," "will," "should," "likely," "anticipates," "expects," "intends," "plans," "projects," "believes," "estimates," "outlook" or any other similar words.
Although the Company's management believes that the expectations reflected in any of the Company's forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any forward-looking statements. The Company's future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, such as those disclosed or incorporated by reference in our filings with the SEC. Important factors that could cause the Company's actual results, performance and achievements to differ materially from those estimates or projections contained in the Company's forward-looking statements include, but are not limited to, government regulation, economic, strategic, political and social conditions and the following factors:
•evolving technologies and distribution platforms and offerings and changes in consumer behavior as consumers seek more control over when, where and how they consume content, and related impacts on advertisers and MVPDs;
•declines in advertising expenditures due to various factors such as the economic prospects of advertisers or the economy, evolving technologies and distribution platforms and related changes in
consumer behavior and shifts in advertisers' expenditures, the evolving digital advertising market, major sports events and election cycles, and audience measurement methodologies' ability to accurately reflect actual multiplatform viewership levels;
•further declines in the number of subscribers to MVPD services;
•the failure to enter into or renew on favorable terms, or at all, affiliation or carriage agreements or arrangements through which the Company makes its content available for viewing through online video platforms;
•the highly competitive nature of the industry in which the Company's businesses operate;
•the popularity of the Company's content, including special sports events; and the continued popularity of the sports franchises, leagues and teams for which the Company has acquired programming rights;
•the Company's ability to renew programming rights, particularly sports programming rights, on sufficiently favorable terms, or at all;
•damage to the Company's brands or reputation;
•the inability to realize the anticipated benefits of the Company's acquisitions, investments and other strategic initiatives, and the effects of any combination or significant acquisition, disposition or other similar transaction involving the Company;
•the loss of key personnel;
•labor disputes, including labor disputes involving professional sports leagues whose games or events the Company has the right to broadcast;
•lower than expected valuations associated with the Company's reporting units, indefinite-lived intangible assets, investments or long-lived assets;
•a degradation, failure or misuse of the Company's network and information systems and other technology relied on by the Company that causes a disruption of services or improper disclosure of personal data or other confidential information;
•content piracy and signal theft and the Company's ability to protect its intellectual property rights;
•the failure to comply with laws, regulations, rules, industry standards or contractual obligations relating to privacy and personal data protection;
•changes in tax, federal communications or other laws, regulations, practices or the interpretation or enforcement thereof;
•the impact of any investigations or fines from governmental authorities, including Federal Communications Commission ("FCC") rules and policies and FCC decisions regarding revocation, renewal or grant of station licenses, waivers and other matters;
•the failure or destruction of satellites or transmitter facilities the Company depends on to distribute its programming;
•unfavorable litigation outcomes or investigation results that require the Company to pay significant amounts or lead to onerous operating procedures;
•changes in GAAP or other applicable accounting standards and policies;
•the Company's ability to secure additional capital on acceptable terms; and
•the other risks and uncertainties detailed in Part I, Item 1A. "Risk Factors" in the 2025 Form 10-K.
Forward-looking statements in this Quarterly Report speak only as of the date hereof, and forward-looking statements in documents that are incorporated by reference hereto speak only as of the date of those documents. The Company does not undertake any obligation to update or release any revisions to any forward-looking statement made herein or to report any events or circumstances after the date hereof or to reflect the occurrence of unanticipated events or to conform such statements to actual results or changes in our expectations, except as required by law.
Fox Corporation published this content on May 11, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on May 11, 2026 at 13:25 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]