Formula One Group operates as a key segment of Liberty Media Corporation, primarily focusing on the commercial exploitation of the FIA Formula One World Championship. The company owns the exclusive commercial rights to the series, which includes 24 races across over 20 countries, attracting a global audience of hundreds of ...Formula One Group operates as a key segment of Liberty Media Corporation, primarily focusing on the commercial exploitation of the FIA Formula One World Championship. The company owns the exclusive commercial rights to the series, which includes 24 races across over 20 countries, attracting a global audience of hundreds of millions. Its revenue streams include race promotion fees, broadcasting rights deals, sponsorship agreements, and hospitality services at Grand Prix events. The group also manages the technical and sporting regulations through its subsidiary, the Fédération Internationale de l'Automobile (FIA), and works with teams like Ferrari, Mercedes, and Red Bull Racing. With a market capitalization of approximately $25.8 billion, the company has seen steady growth, with trailing twelve-month revenue of $3.7 billion and an EBITDA margin of 31.3%. Its CEO, Stefano Domenicali, has been leading the group since 2021, but as of January 2025, Derek Chang has assumed the role of President and CEO of Liberty Media Corporation, overseeing the Formula One Group. The company's headquarters are in Englewood, Colorado, and it employs around 1,600 people. Despite being part of Liberty Media, the Formula One Group trades publicly under the ticker FWONK on NASDAQ, offering investors direct exposure to the commercial success of the world's most prestigious motorsport series.
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).
$4.5B
+22.7%
+31.4%
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.
$555.0M
+1950.0%
-91.2%
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.
+24.9%
-21.8%
-16.0%
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).
+13.5%
+71.5%
+4.7%
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.
+12.4%
+1607.8%
-93.3%
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.
$751.0M
+52.6%
-19.6%
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.
+16.8%
+24.4%
-38.8%
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.
66.1%
+63.1%
-0.5%
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.
1.46x
-45.3%
-6.0%
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: Welcome to Liberty Media Corporation's 2026 Second Quarter Earnings Call. [Operator Instructions] As a reminder, this conference will be recorded, August 6. I would now like to turn the call over to Hooper Stevens, Senior Vice President, Investor Relations. Please go ahead.
Hooper Stevens: Thank you for joining us this morning. This call includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in the most recent Forms 10-K and 10-Q filed by Liberty Media with the SEC. These forward-looking statements speak only as of the date of this call, and Liberty Media expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Liberty Media's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. On today's call, we will discuss certain non-GAAP financial measures for Liberty Media, including adjusted OIBDA, constant currency for MotoGP, the required definitions and reconciliations for Liberty Media Schedule 1 and MotoGP Schedule 2 can be found at the end of the earnings press release issued today, which is available on Liberty Media's website. Speaking on today's call, we have Liberty's President and CEO, Derek Chang; Liberty's Chief Accounting and Principal Financial Officer, Brian Wendling; Formula One's President and CEO, Stefano Domenicali; MotoGP's CEO, Carmelo Ezpeleta; and other members of management will be available for Q&A. With that, I'll turn it over to Derek.
Derek Chang: Great. Thank you, Hooper, and good morning, everyone. We are thrilled with the second quarter performance at both F1 and MotoGP. Amidst all the global uncertainty and credit to our operating teams in this challenging environment, our businesses are motoring along at a speedy pace. Our priorities for 2026 remain unchanged, which are to build upon Formula One's durable business model, establish the foundation for MotoGP's next phase of development and allocate capital with discipline. Since May, we have made tangible progress against each priority while keeping the distinct identity of each sport at the center of our approach. Formula One continues to demonstrate the breadth and durability of its platform. New technical era is producing compelling competition on track. There is immense demand from fans, promoters, commercial partners and media platforms. Meanwhile, our business continues to perform incredibly well with notable momentum across Paddock Club, licensing and sponsorship. In the U.S., Formula One's momentum on Apple continues to build with viewership up year-over-year, season to date and total hours watched up 13%. We could not be more pleased with this result. The digital product is great and sponsors …