FOX

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Fox Corporation (Class B)

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Market Data

Financials

XBRL · SEC EDGAR

2017–2025(9yr)

Revenue

Net Income

Free CF

Metric	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025Latest	YoY
Revenue	$9.9B	$10.2B	$11.4B	$12.3B	$12.9B	$14.0B	$14.9B	$14.0B	$16.3B	+16.6%
Net Income	$1.4B	$2.2B	$1.6B	$1.1B	$2.2B	$1.2B	$1.3B	$1.6B	$2.3B	+47.6%
Net Margin	14.2%	21.9%	14.4%	8.6%	17.1%	8.8%	8.4%	11.1%	14.1%	+3.0pp
Free Cash Flow	$1.5B	$1.1B	$2.3B	$2.0B	$2.2B	$1.6B	$1.4B	$1.5B	$3.0B	+100.2%
FCF Margin	14.8%	10.9%	20.1%	16.3%	16.7%	11.3%	9.7%	10.7%	18.4%	+7.7pp
EPS (Diluted)	—	$3.52	$2.57	$1.62	$3.61	$2.11	$2.33	$3.13	$4.91	+56.9%

Total Debt$6.6B

3 min read

1. THE BIG PICTURE

Fox is a "barbell" business attempting to bridge two eras of media: it relies on the dwindling but high-margin world of "appointment-based" cable news and sports to bankroll a digital future. While it currently leads its peer group in revenue growth, the most recent quarterly results show that the cost of defending its live-content moat is beginning to erode the bottom line.

2. WHERE THE RISKS HIT HARDEST

Fox Corporation (Class B)’s "appointment-based" programming strength is increasingly threatened by the rising cost of programming rights. In the most recent quarter, Television segment EBITDAEBITDAEarnings Before Interest, Taxes, Depreciation & Amortization — a rough proxy for operating cash profit, stripping out accounting adjustments plunged 30% to $143 million, primarily because the escalating price of sports rights and production costs outweighed steady advertising performance (8-K). Furthermore, Fox’s brand resonance is structurally tied to a limited number of distributors; if the industry-wide shift toward streaming leads to failed carriage renewals with major MVPDs, Fox loses the affiliate fees that currently subsidize its content budget (10-K Item 1A).

3. WHAT THE NUMBERS SAY TOGETHER

A look across the financials reveals a disconnect between top-line expansion and cash generation. Fox leads its peers with 16.6% TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter revenue growth, yet its Free Cash Flow (FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders) margin of 2.6% is among the lowest in the group (XBRL). This gap is the price of the pivot: Fox Corporation (Class B) is aggressively spending on the launch of FOX One and the expansion of Tubi, which contributed to a widened Corporate EBITDAEBITDAEarnings Before Interest, Taxes, Depreciation & Amortization — a rough proxy for operating cash profit, stripping out accounting adjustments loss of $138 million (10-Q). Market sentiment remains wary, evidenced by a short interest of 8.2% of the float (Yahoo Finance). The recent 2% quarterly revenue growth marks a significant slowdown from the TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter average, reflecting both the cyclical absence of political advertising and the mounting pressure on traditional television distribution (8-K).

4. IS IT WORTH IT AT THIS PRICE?

At 10.8x forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations, Fox trades in line with the peer median (Yahoo Finance). According to CAPM analysis, this valuation implies the market is pricing in a long-term growth rate of just 0.5%. This is a low bar for a company with Fox’s brand portfolio, but the valuation is weighed down by a 2.6% FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margin and high net leverage of 9.2x (based on $4.4B net debt against $0.5B annual FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders). Investors are essentially being paid to wait for the digital transition to bear fruit via a 9.3% buyback yield—the second-highest among its peers. If Fox can stabilize its margins and achieve even modest GDP-paced growth of 2.5%, the sensitivity analysis suggests a justified multiple of 20.2x.

5. WHAT WOULD CHANGE THIS VIEW?

Cautious if Television segment EBITDAEBITDAEarnings Before Interest, Taxes, Depreciation & Amortization — a rough proxy for operating cash profit, stripping out accounting adjustments continues to contract at a double-digit rate (currently -30%) as sports rights amortization outpaces advertising revenue gains.
Constructive if the "Corporate and Other" segment losses begin to narrow, signaling that FOX One and Tubi are reaching the scale necessary to contribute to consolidated FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders.

6. BOTTOM LINE

Structural Advantage: A concentrated portfolio of "appointment-based" live news and sports brands that maintain high commercial importance for advertisers and distributors even as general entertainment viewership migrates to streaming.

Bottom Line: Fox is an aggressive capital-return story currently obscured by the heavy costs of a digital transformation; it is a viable bet only if its streaming scale eventually mirrors the high-margin profile of its legacy cable business.

Source: Synthesis · LLM Analysis

4 min read

1. Top 5 Material Risks

Evolution of Distribution Models: Consumers are increasingly favoring direct-to-consumer offerings over traditional MVPD subscriptions, leading to industry-wide subscriber declines. This trend threatens Fox Corporation (Class B)’s affiliate fee and advertising revenues, as these contracts are often tied to subscriber counts.
Advertising Market Volatility: Fox Corporation (Class B) derives substantial revenue from advertising, which is highly sensitive to economic conditions, cyclical sports events, and election cycles. Deficiencies in audience measurement methodologies for multiplatform environments further complicate Fox Corporation (Class B)'s ability to monetize its content effectively.
Distributor Concentration: A significant portion of revenue depends on a limited number of MVPDs. The inability to renew carriage agreements on favorable terms—or the risk of "going dark" during an impasse—could materially reduce the distribution of Fox Corporation (Class B)’s networks and its ability to sell advertising time.
Programming Rights Costs: Fox Corporation (Class B) faces intense competition for high-quality content, particularly sports programming. Escalating costs for these rights, if not offset by corresponding increases in advertising and affiliate fee revenues, directly threaten Fox Corporation (Class B)’s results of operations.
Brand and Reputation Damage: The FOX brand is a primary asset, and its value is susceptible to damage from negative publicity, litigation, or perceptions of low-quality journalism and programming. Such damage can erode trust with advertisers and consumers, impacting Fox Corporation (Class B)'s ability to maintain its market position.

2. Company-Specific Risks

Murdoch Family Trust Concentration: The concentration of voting power in the Murdoch Family Trust, which beneficially owns 43.90% of FOX Class B Common Stock, may discourage third-party acquisition proposals and ensures that proposals supported by the Trust are likely to be adopted regardless of other shareholders' preferences.
Conflict of Interest with News Corp: Overlapping directors and officers, including Executive Chair and CEO Lachlan K. Murdoch, create potential conflicts of interest. Fox Corporation (Class B)’s bylaws explicitly allow these individuals to direct corporate opportunities to News Corp instead of Fox Corporation (Class B).
Anti-Takeover Provisions: Fox Corporation (Class B)’s certificate of incorporation and bylaws include a dual-class equity structure and other defensive measures that make it difficult for shareholders to initiate changes in control or take action by written consent.
Indemnification Liabilities: Fox Corporation (Class B) remains jointly and severally liable for certain tax liabilities of the former 21CF consolidated group, and while indemnification agreements exist, there is no guarantee that 21CF or Disney will be able to fully satisfy these obligations.

3. Regulatory/Legal Risks

FCC Licensing and Ownership: Fox Corporation (Class B) must comply with FCC regulations, including the Communications Act, which limits non-U.S. ownership to 25%. Failure to comply could jeopardize broadcast station licenses.
Defamation Litigation: Fox Corporation (Class B) has incurred significant legal expenses, including an $800 million settlement in the Dominion matter. Ongoing lawsuits, such as the Smartmatic case, present risks of further monetary damages, injunctive relief, and reputational harm.
Spectrum Reallocation: The FCC has reallocated C-Band spectrum, and recent legislation (the One Big Beautiful Bill Act) mandates an auction of at least 100 MHz of additional C-Band spectrum within two years, which may hinder Fox Corporation (Class B)'s ability to deliver programming to affiliates.
Privacy Regulation: Fox Corporation (Class B) is subject to a complex and evolving patchwork of U.S. and international data privacy laws. Non-compliance can result in significant fines, regulatory investigations, and the need to alter business practices related to data-driven advertising.

4. Financial Impact Map

Consumer Behavior Shifts → Affiliate Fee and Advertising Revenues → Declines in MVPD subscribers directly reduce payments based on subscriber counts. Advertising Market Volatility → Advertising Revenues → Fluctuations in spending priorities and economic conditions cause revenue to vary significantly in any given period. Distributor Concentration → Affiliate Fee Revenues → Failure to renew carriage agreements on favorable terms reduces the reach of networks and the ability to collect fees. Programming Rights Costs → Operating Results → Escalating costs for sports rights, if not offset by revenue, compress profit margins. Asset Impairment → Net Earnings → Shortfalls in advertising revenue or programming popularity can trigger non-cash impairment charges, such as the $70 million charge recorded in fiscal 2025 for Television segment FCC licenses.

Source: 10-K Item 1A · LLM Analysis

Recent Filings

Form	Filed	Period
8-K	Feb 2026	—
10-Q	Feb 2026	Dec 2025
14A	Sep 2025	—
10-K	Aug 2025	Jun 2025