Fox Corp recently released its latest Form 10-Q. Fox Corporation is a U.S.-based news, sports and entertainment company with four operating segments: Cable Network Programming, Television, Credible and The FOX Studio Lot. Its Cable Network Programming unit distributes news and sports content through cable, satellite, telecom and digital platforms, while Television produces and distributes programming through the FOX broadcast network, Tubi, owned stations and other digital outlets; Credible operates in consumer finance, and The FOX Studio Lot provides production services and related facility operations. The company was incorporated in 2018 and is headquartered in New York, New York.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Fox said this section is meant to help readers understand its financial condition, changes in financial condition and results of operations, and it is organized around business overview, results of operations, liquidity and capital resources, and forward-looking statements. The company said the discussion should be read with its unaudited interim consolidated financial statements and the fiscal 2025 Form 10-K filed August 6, 2025.
Overview of the company’s business
Fox said its business is organized into four operating segments, with Cable Network Programming and Television as the two reportable segments. Credible and The FOX Studio Lot are included in Corporate and Other, which also includes FOX One, the company’s direct-to-consumer subscription streaming service launched in August 2025, along with corporate overhead costs.
Cable Network Programming produced and licensed news and sports content for traditional MVPDs, virtual MVPDs and other digital platforms, primarily in the U.S. Television produced, acquired, marketed and distributed programming through the FOX broadcast network, Tubi, 29 full-power broadcast stations, including 11 duopolies, and other digital platforms, and also included production companies that create content for Fox and third parties.
Three months ended March 31, 2026 versus March 31, 2025
Fox reported total revenue of $3.994 billion, down 9% from $4.371 billion a year earlier. Distribution revenue rose 3% to $2.107 billion from $2.039 billion, helped by higher average rates per subscriber, which added about $90 million, partly offset by about $20 million from a lower average number of subscribers. Advertising revenue fell 24% to $1.556 billion from $2.036 billion, reflecting the absence of the February 2025 broadcast of Super Bowl LIX and lower ratings, partly offset by about $200 million from digital growth led by Tubi, an additional NFL postseason game and higher pricing. Content and other revenue increased 12% to $331 million from $296 million, mainly from higher sports sublicensing revenue.
Operating expenses declined 16% to $2.494 billion from $2.965 billion, mainly because sports programming rights amortization and production costs were about $535 million lower, driven by the absence of Super Bowl LIX, partly offset by the broadcast of an additional NFL postseason game. That decline was partly offset by about $65 million of costs tied to the launch of Fox One and higher entertainment programming rights amortization and production costs.
Selling, general and administrative expenses were $546 million, down slightly from $551 million. Depreciation and amortization rose to $101 million from $95 million. Restructuring, impairment and other corporate matters fell to $32 million from $55 million.
Income before income tax expense was $236 million, down from $474 million. Net income was $175 million, compared with $354 million a year earlier. Net income attributable to Fox Corporation stockholders was $166 million, down from $346 million.
Nine months ended March 31, 2026 versus March 31, 2025
For the first nine months of fiscal 2026, Fox reported revenue of $12.914 billion, down 1% from $13.013 billion. Distribution revenue increased 3% to $6.024 billion from $5.840 billion, driven by higher average rates per subscriber and higher fees from FOX Network-affiliated television stations, which added about $360 million, partly offset by about $175 million from a lower average number of subscribers. Advertising revenue fell 6% to $5.423 billion from $5.787 billion, with about $435 million of the decline tied to sports programming, including the absence of Super Bowl LIX, partly offset by additional NFL and MLB postseason games and higher pricing. The rest of the advertising change reflected digital growth led by Tubi and higher news pricing, partly offset by lower political advertising and lower news ratings. Content and other revenue rose 6% to $1.467 billion from $1.386 billion, mainly from higher sports sublicensing revenue, partly offset by lower entertainment production services revenue due to delivery timing.
Operating expenses decreased 3% to $8.473 billion from $8.759 billion, mainly because sports programming rights amortization was about $440 million lower due to the absence of Super Bowl LIX, partly offset by higher NFL costs, including an additional postseason game. That was partly offset by about $155 million of costs associated with the launch of Fox One and higher digital content costs.
Selling, general and administrative expenses increased 10% to $1.730 billion from $1.578 billion, mainly because of Fox One launch costs and higher employee costs. Depreciation and amortization rose to $299 million from $283 million. Restructuring, impairment and other corporate matters dropped to $38 million from $251 million.
Income before income tax expense fell to $1.357 billion from $2.102 billion. Net income was $1.031 billion, down from $1.574 billion. Net income attributable to Fox Corporation stockholders was $994 million, compared with $1.546 billion.
Segment results
Fox said Segment EBITDA is its primary operating performance measure and is calculated as revenues less operating expenses and selling, general and administrative expenses.
For the three months ended March 31, 2026: Cable Network Programming revenue was $1.741 billion, up from $1.636 billion, and Segment EBITDA was $884 million, up from $878 million. Television revenue was $2.197 billion, down from $2.704 billion, while Segment EBITDA rose to $191 million from $60 million. * Corporate and Other revenue was $152 million, up from $58 million, and Segment EBITDA was a loss of $121 million, compared with a loss of $82 million.
For the nine months ended March 31, 2026: Cable Network Programming revenue was $5.678 billion, up from $5.398 billion, and Segment EBITDA was $2.371 billion, up from $2.283 billion. Television revenue was $7.184 billion, down from $7.618 billion, and Segment EBITDA was $733 million, up from $637 million. * Corporate and Other revenue was $365 million, up from $181 million, and Segment EBITDA was a loss of $393 million, compared with a loss of $235 million.
Adjusted EBITDA was $954 million for the quarter, up from $856 million, and $2.711 billion for the nine months, up from $2.685 billion. The market has reacted to these announcements by moving the company's shares 7.37% to a price of $67.58. Check out the company's full 10-Q submission here.
