Fox Corporation is a prominent media conglomerate primarily focused on news, sports, and entertainment operations within the United States. Its business is ...
Fox Corporation is a prominent media conglomerate, headquartered in New York City, that focuses on news, sports, and entertainment content for U.S. audiences. Established on March 19, 2019, as a spin-off from 21st Century Fox, the company is built on a legacy of broadcasting excellence, originating from the Fox Broadcasting ...Fox Corporation is a prominent media conglomerate, headquartered in New York City, that focuses on news, sports, and entertainment content for U.S. audiences. Established on March 19, 2019, as a spin-off from 21st Century Fox, the company is built on a legacy of broadcasting excellence, originating from the Fox Broadcasting Company launched in 1986 by Rupert Murdoch. Under the leadership of CEO Lachlan Murdoch and Chairman Emeritus Rupert Murdoch, Fox has maintained strong revenue growth and profitability in a complex industry.
The company operates through three main segments: Cable Network Programming, Television, and Other/Corporate/Eliminations. Its cable division includes FOX News, FOX Business, FS1, FS2, FOX Sports Racing, FOX Soccer Plus, FOX Deportes, and the Big Ten Network, providing extensive coverage of news and live sports. The television segment comprises The FOX Network, Tubi (a free ad-supported streaming service), Fox Alternative Entertainment, MyNetworkTV, and Blockchain Creative Labs, along with ownership of 29 broadcast television stations and the FOX Studios Lot in Los Angeles, which offers state-of-the-art production facilities.
Financially, Fox has demonstrated solid performance with a market capitalization around $25 billion, strong margins (net margin ~10%), and a healthy balance sheet (debt-to-equity ~0.57). Revenue per share is approximately $40, with a dividend yield of 1%. The company employs over 10,000 people, contributing to its position as a major player in the media landscape. Fox continues to innovate with ventures into in-house productions and Web3 content, while maintaining a focus on delivering high-quality programming that engages audiences and drives value for shareholders.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$17.1B
+5.1%
+5.5%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$1.7B
-25.5%
+316.3%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+49.4%
+49.1%
+166.3%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+24.5%
+23.6%
+116.9%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+9.8%
-29.1%
+294.7%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$1.5B
-51.0%
+49.1%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+8.6%
-53.3%
+41.4%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
65.1%
+4.3%
-5.7%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
3.17x
+8.9%
+9.4%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Thank you for standing by, ladies and gentlemen. Welcome to the Fox Corporation Third Quarter Fiscal Year 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I'll now turn the conference over to Chief Investor Relations Officer, Ms. Gabrielle Brown. Please go ahead, Ms. Brown.
Gabrielle Brown: Thank you, operator. Good morning, and welcome to our fiscal 2026 third quarter earnings call. Joining me on the call today are Lachlan Murdoch, Executive Chair and Chief Executive Officer; John Nallen, President and Chief Operating Officer; and Steve Tomsic, our Chief Financial Officer. First, Lachlan and Steve will give some prepared remarks on the most recent quarter, and then we'll take questions from the investment community. Please note that this call may include forward-looking statements regarding Fox Corporation's financial performance and operating results. These statements are based on management's current expectations, and actual results could differ from what is stated as a result of certain factors identified on today's call and in the company's SEC filings. Additionally, this call will include certain non-GAAP financial measures, including adjusted EPS and adjusted EBITDA or EBITDA, as we refer to it on this call. Reconciliations of non-GAAP financial measures are included in our earnings release and our SEC filings, which are available in the Investor Relations section of our website. We also refer to free cash flow, which we define as net cash provided by operating activities, less capital expenditures. And with that, I'm pleased to turn the call over to Lachlan.
Lachlan Murdoch: Thank you, Gaby, and thank you all for joining us this morning. It's a busy day for us here at Fox. This morning, we reported our fiscal third quarter results. And later today, we will host our annual upfront presentation where our advertising partners will experience firsthand the power of our programming and the platform we provide for them across our family of Fox Corporation brands. And as you will hear today, all signs point to a healthy upfront for Fox. From global news and live sports to high-quality free entertainment and essential local news coverage, Fox turns audience engagement and passion into performance for our advertising and distribution partners alike. This performance was demonstrated again in our fiscal third quarter, where our financial results continue to reflect the unabated momentum across the business. We reported $4 billion of revenue and EBITDA growth of 11% to just over $950 million, reflecting strong core top line delivery from ongoing advertising trends and distribution revenue growth. Distribution revenue grew 3% during the quarter, benefiting from the continued early success of Fox One, where both new subscriber additions, which we are confident are additive to the ecosystem and subscriber retention outperformed our expectations. Advertising revenue, as expected, …