Fox Corp Q1 FY2027 net income rises 57% to $943M
FOX paid a semi-annual dividend of $0.29 per share on September 23, 2026; approximately $3.4 billion remained under its repurchase authorization.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
10-Q
Fox Corp (FOX) reported first-quarter fiscal 2027 revenue of $4.571 billion for the three months ended September 30, 2026, up 22% from a year earlier. Net income attributable to Fox Corporation stockholders was $943 million, up 57%; Adjusted EBITDA was $1.641 billion, up 54%.
Advertising revenue rose 47% to $2.081 billion. The increase primarily reflected sports programming led by the FIFA Men’s World Cup; higher political advertising and Tubi growth also contributed. Net cash provided by operating activities was $616 million, compared with net cash used of $130 million a year earlier. Television segment revenue rose 32% to $2.713 billion, and segment EBITDA was $934 million versus $399 million.
FOX’s agreed acquisition of Roku remains subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act after FOX and Roku received stockholder approvals in October 2026. Consideration is $96.00 in cash and 0.9693 FOX Class A shares for each Roku Class A or Class B share, subject to certain adjustments. FOX expects to fund the cash portion with debt and cash on hand.
4 points · 0 major0 major · 0 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointRevenue increased 22% to $4.571 billion for the quarter.
- Moderate pointStockholder net income rose 57% to $943 million.
- Moderate pointAdjusted EBITDA rose 54% to $1.641 billion.
- Moderate pointOperating cash flow: $616 million provided versus $130 million used.
Negative
- None.
Filing Explained
FOX’s pending Roku deal has twelve billion dollars of bridge commitments, eleven billion available, and a one billion dollar term commitment; closing would dilute holders.
FOX reports that its Roku acquisition remains subject to antitrust clearance; lenders have committed
At
FOX reclassified FCC licenses with a gross carrying value of
FOX recorded no impairment in connection with that change; depreciation and amortization expense increased
Key Figures
Revenue: $4.571 billion
Net income attributable to Fox Corporation stockholders: $943 million
Adjusted EBITDA: $1.641 billion
+5 more
8 metrics
Revenue
$4.571 billion
Three months ended September 30, 2026; $3.738 billion in 2025.
Net income attributable to Fox Corporation stockholders
$943 million
Three months ended September 30, 2026; $599 million in 2025.
Adjusted EBITDA
$1.641 billion
Three months ended September 30, 2026; $1.065 billion in 2025.
Net cash provided by operating activities
$616 million provided
Three months ended September 30, 2026; $130 million used in 2025.
Advertising revenue
$2.081 billion
Three months ended September 30, 2026; $1.412 billion in 2025.
Roku merger consideration per share
$96.00 cash and 0.9693 FOX Class A shares per Roku Class A or Class B share
Subject to the Merger Agreement’s terms and certain adjustments.
Semi-annual dividend per share
$0.29
Declared on both Class A and Class B common stock and paid September 23, 2026.
Remaining stock repurchase authorization
Approximately $3.4 billion
As of September 30, 2026.
Key Terms
Adjusted EBITDA, Hart-Scott-Rodino Antitrust Improvements Act, performance obligations, termination fee
4 terms
Adjusted EBITDA financial
"Adjusted EBITDA is defined as Revenues less Operating expenses"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Hart-Scott-Rodino Antitrust Improvements Act regulatory
"subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act"
A U.S. law that requires companies planning large mergers or acquisitions to notify federal antitrust authorities and wait for review before completing the deal. Think of it like applying for a building permit: regulators check whether the combined business would unfairly hurt competition and can clear the deal, impose changes, or seek to stop it, so the process affects transaction timing, cost, and whether expected benefits reach investors.
performance obligations financial
"remaining performance obligations relate to distribution contracts"
Performance obligations are the specific promises a company makes to deliver goods or services to a customer under a contract, treated as separate deliverables when a customer can benefit from them on their own. Investors care because these promises determine when and how much revenue a company records — like breaking a bundled purchase into separate billable parts — which affects reported earnings, growth trends and the clarity of future cash flows.
termination fee financial
"each party will be required to pay the other party a termination fee"
A termination fee is a payment required if one party ends a contract before its agreed-upon end date. It acts like a penalty or compensation to the other party for canceling early, similar to a fee you might pay for breaking a lease or canceling a service contract. For investors, it matters because it can influence a company's decisions and financial obligations related to ending agreements prematurely.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much revenue did FOX report in the September 2026 quarter?
FOX reported $4.571 billion in revenue for the three months ended September 30, 2026, versus $3.738 billion a year earlier, a 22% increase. Distribution revenue was $2.084 billion and advertising revenue was $2.081 billion.
How much net income did FOX report for the September 2026 quarter?
Net income attributable to Fox Corporation stockholders was $943 million for the quarter, compared with $599 million for the three months ended September 30, 2025, an increase of 57%. Total net income, including noncontrolling interests, was $957 million.
What termination fees are in FOX’s Roku merger agreement?
The agreement provides for a termination fee of approximately $866 million payable by either party to the other in certain termination circumstances. FOX would owe Roku approximately $1.2 billion if termination occurs under specified circumstances involving regulatory approvals or a permanent restraint under certain antitrust or investment-screening laws.
What dividend did FOX pay in September 2026?
FOX declared a semi-annual dividend of $0.29 per share on both Class A and Class B common stock during the quarter. It was paid on September 23, 2026.
How much remains under FOX’s stock repurchase authorization?
Approximately $3.4 billion remained under FOX’s $12 billion stock repurchase authorization as of September 30, 2026. The program has no time limit and may be modified, suspended or discontinued at any time.
AI-generated analysis. How Rhea-AI works. Not financial advice.
See more from StockTitan in Google Search and AI answers.
Adds StockTitan as a preferred source · opens Google
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the quarterly period ended | |||||
or
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from _________ to _________
Commission File Number 001-38776
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
| (Address of principal executive offices and Zip Code) | ||||||||||||||
Registrant’s telephone number, including area code (212 ) 852-7000
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbols | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| x | Accelerated filer | o | ||||||||||||
| Non-accelerated filer | o | Smaller reporting company | ||||||||||||
| Emerging growth company | ||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x
As of October 28, 2026, 201,552,650 shares of Class A Common Stock, par value $0.01 per share, and 220,248,764 shares of Class B Common Stock, par value $0.01 per share, were outstanding.
FOX CORPORATION
FORM 10-Q
TABLE OF CONTENTS
| Page | |||||||||||
Part I. Financial Information | |||||||||||
Item 1. | Financial Statements | ||||||||||
Unaudited Consolidated Statements of Operations for the three months ended September 30, 2026 and 2025 | 1 | ||||||||||
Unaudited Consolidated Statements of Comprehensive Income for the three months ended September 30, 2026 and 2025 | 2 | ||||||||||
Consolidated Balance Sheets as of September 30, 2026 (unaudited) and June 30, 2026 (audited) | 3 | ||||||||||
Unaudited Consolidated Statements of Cash Flows for the three months ended September 30, 2026 and 2025 | 4 | ||||||||||
Unaudited Consolidated Statements of Equity for the three months ended September 30, 2026 and 2025 | 5 | ||||||||||
Notes to the Unaudited Consolidated Financial Statements | 6 | ||||||||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 18 | |||||||||
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 29 | |||||||||
Item 4. | Controls and Procedures | 29 | |||||||||
Part II. Other Information | |||||||||||
Item 1. | Legal Proceedings | 30 | |||||||||
Item 1A. | Risk Factors | 30 | |||||||||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 30 | |||||||||
Item 3. | Defaults Upon Senior Securities | 30 | |||||||||
Item 4. | Mine Safety Disclosures | 30 | |||||||||
Item 5. | Other Information | 30 | |||||||||
Item 6. | Exhibits | 30 | |||||||||
Signature | 31 | ||||||||||
FOX CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
For the three months ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Revenues | $ | $ | |||||||||||||||||||||
| Operating expenses | ( | ( | |||||||||||||||||||||
| Selling, general and administrative | ( | ( | |||||||||||||||||||||
| Depreciation and amortization | ( | ( | |||||||||||||||||||||
| Restructuring, impairment and other corporate matters | ( | ||||||||||||||||||||||
| Equity losses of affiliates | ( | ||||||||||||||||||||||
| Interest expense, net | ( | ( | |||||||||||||||||||||
| Non-operating other, net | ( | ( | |||||||||||||||||||||
| Income before income tax expense | |||||||||||||||||||||||
| Income tax expense | ( | ( | |||||||||||||||||||||
| Net income | |||||||||||||||||||||||
| Less: Net income attributable to noncontrolling interests | ( | ( | |||||||||||||||||||||
| Net income attributable to Fox Corporation stockholders | $ | $ | |||||||||||||||||||||
| EARNINGS PER SHARE DATA | |||||||||||||||||||||||
| Weighted average shares: | |||||||||||||||||||||||
| Basic | |||||||||||||||||||||||
| Diluted | |||||||||||||||||||||||
| Net income attributable to Fox Corporation stockholders per share: | |||||||||||||||||||||||
| Basic | $ | $ | |||||||||||||||||||||
| Diluted | $ | $ | |||||||||||||||||||||
The accompanying notes are an integral part of these Unaudited Consolidated Financial Statements.
1
FOX CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(IN MILLIONS)
For the three months ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Net income | $ | $ | |||||||||||||||||||||
| Other comprehensive loss, net of tax: | |||||||||||||||||||||||
| Benefit plan adjustments and other | ( | ||||||||||||||||||||||
| Other comprehensive loss, net of tax | ( | ||||||||||||||||||||||
| Comprehensive income | |||||||||||||||||||||||
Less: Net income attributable to noncontrolling interests(a) | ( | ( | |||||||||||||||||||||
| Comprehensive income attributable to Fox Corporation stockholders | $ | $ | |||||||||||||||||||||
(a) | Net income attributable to noncontrolling interests includes | ||||
The accompanying notes are an integral part of these Unaudited Consolidated Financial Statements.
2
FOX CORPORATION
CONSOLIDATED BALANCE SHEETS
(IN MILLIONS, EXCEPT SHARE AND PER SHARE AMOUNTS)
As of September 30, 2026 | As of June 30, 2026 | ||||||||||
| (unaudited) | (audited) | ||||||||||
| ASSETS | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
| Receivables, net | |||||||||||
| Inventories, net | |||||||||||
| Other | |||||||||||
| Total current assets | |||||||||||
| Non-current assets | |||||||||||
| Property and equipment, net | |||||||||||
| Intangible assets, net | |||||||||||
| Goodwill | |||||||||||
| Deferred tax assets | |||||||||||
| Other non-current assets | |||||||||||
| Total assets | $ | $ | |||||||||
| LIABILITIES AND EQUITY | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable, accrued expenses and other current liabilities | $ | $ | |||||||||
| Total current liabilities | |||||||||||
| Non-current liabilities | |||||||||||
| Borrowings | |||||||||||
| Other liabilities | |||||||||||
| Redeemable noncontrolling interests | |||||||||||
| Commitments and contingencies | |||||||||||
| Equity | |||||||||||
Class A Common Stock(a) | |||||||||||
Class B Common Stock(b) | |||||||||||
| Additional paid-in capital | |||||||||||
| Retained earnings | |||||||||||
| Accumulated other comprehensive loss | ( | ( | |||||||||
| Total Fox Corporation stockholders’ equity | |||||||||||
| Noncontrolling interests | |||||||||||
| Total equity | |||||||||||
| Total liabilities and equity | $ | $ | |||||||||
(a) | Class A Common Stock, $ | ||||
(b) | Class B Common Stock, $ | ||||
The accompanying notes are an integral part of these Unaudited Consolidated Financial Statements.
3
FOX CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN MILLIONS)
For the three months ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| OPERATING ACTIVITIES | |||||||||||
| Net income | $ | $ | |||||||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities | |||||||||||
| Depreciation and amortization | |||||||||||
| Restructuring, impairment and other corporate matters | ( | ||||||||||
| Equity-based compensation | |||||||||||
| Equity losses of affiliates | |||||||||||
| Non-operating other, net | |||||||||||
| Deferred income taxes | |||||||||||
| Change in operating assets and liabilities, net of acquisitions and dispositions | |||||||||||
| Receivables and other assets | ( | ( | |||||||||
| Inventories net of programming payable | ( | ( | |||||||||
| Accounts payable and accrued expenses | ( | ( | |||||||||
| Other changes, net | |||||||||||
| Net cash provided by (used in) operating activities | ( | ||||||||||
| INVESTING ACTIVITIES | |||||||||||
| Property and equipment | ( | ( | |||||||||
| Purchase of investments | ( | ||||||||||
| Other investing activities, net | ( | ( | |||||||||
| Net cash used in investing activities | ( | ( | |||||||||
| FINANCING ACTIVITIES | |||||||||||
| Dividends paid and distributions | ( | ( | |||||||||
| Repurchase of shares | ( | ||||||||||
| Purchase of noncontrolling interest | ( | ||||||||||
| Other financing activities, net | ( | ( | |||||||||
| Net cash used in financing activities | ( | ( | |||||||||
| Net increase (decrease) in cash and cash equivalents | ( | ||||||||||
| Cash and cash equivalents, beginning of year | |||||||||||
| Cash and cash equivalents, end of period | $ | $ | |||||||||
The accompanying notes are an integral part of these Unaudited Consolidated Financial Statements.
4
FOX CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF EQUITY
(IN MILLIONS)
| Class A | Class B | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Fox Corporation Stockholders’ Equity | Noncontrolling Interests(a) | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock | Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance, June 30, 2026 | $ | $ | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss | — | — | — | — | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends | — | — | — | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other | — | — | — | (1) | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance, September 30, 2026 | $ | $ | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance, June 30, 2025 | $ | $ | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends | — | — | — | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| Shares repurchased | ( | — | — | — | ( | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance, September 30, 2025 | $ | $ | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||
(a) | |||||
The accompanying notes are an integral part of these Unaudited Consolidated Financial Statements.
5
FOX CORPORATION
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
Fox Corporation (“FOX” or the “Company”) is a news, sports and entertainment company, which manages and reports its businesses in the following reportable segments: Cable Network Programming and Television.
The accompanying Unaudited Consolidated Financial Statements of FOX have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments consisting only of normal recurring adjustments necessary for a fair presentation have been reflected in these Unaudited Consolidated Financial Statements. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2027.
The preparation of the Company’s Unaudited Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts that are reported in the Unaudited Consolidated Financial Statements and accompanying disclosures. Although these estimates are based on management’s best knowledge of current events and actions that the Company may undertake in the future, actual results may differ from those estimates.
These interim Unaudited Consolidated Financial Statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2026 as filed with the Securities and Exchange Commission on August 6, 2026 (the “2026 Form 10-K”).
All intercompany transactions and accounts within the Company’s consolidated businesses have been eliminated.
The Company’s fiscal year ends on June 30 (“fiscal”) of each year. Certain fiscal 2026 amounts have been reclassified to conform to the fiscal 2027 presentation.
The Unaudited Consolidated Financial Statements are referred to as the “Financial Statements” herein. The Unaudited Consolidated Statements of Operations are referred to as the “Statements of Operations” herein. The Consolidated Balance Sheets are referred to as the “Balance Sheets” herein.
Critical accounting policies and estimates
During the three months ended September 30, 2026, the Company reassessed the useful lives of its Federal Communications Commission (“FCC”) licenses which were historically classified as indefinite-lived intangible assets and recategorized the FCC licenses as finite-lived intangible assets. FCC licenses with a gross carrying value of $2.1 billion will be amortized on a straight-line basis over 20 years beginning the three months ended September 30, 2026. The Company tested its FCC licenses for impairment immediately prior to this change and did not record any impairment in connection with this change in accounting estimate.
NOTE 2. ACQUISITIONS, DISPOSALS AND OTHER TRANSACTIONS
The Company’s acquisitions support the Company’s strategy to strengthen its core brands, grow its digital businesses and selectively enhance production capabilities for its digital and linear platforms. During the three months ended September 30, 2026 and 2025 the Company made no
Roku Transaction
On June 14, 2026, the Company and Roku, Inc. (“Roku”) entered into a definitive agreement (the “Merger Agreement”) under which the Company has agreed to acquire Roku for a combination of cash and FOX Class A Common Stock (the “Roku Transaction” or the “Merger”). Upon the terms and subject to the conditions of the Merger Agreement, FOX will pay $96.00 in cash and 0.9693 shares of FOX Class A Common Stock for each share of Roku Class A Common Stock and Roku Class B Common Stock outstanding immediately prior to the effective time of the merger. The exchange ratio and per share cash amount are subject to adjustment as set
6
FOX CORPORATION
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
forth in the Merger Agreement in certain circumstances relating to Roku stockholders who properly exercise appraisal rights in accordance with Delaware law. Following the completion of the Merger, Roku will be a wholly-owned subsidiary of FOX.
Each of the Boards of Directors of FOX and Roku unanimously approved the Roku Transaction, and in October 2026 FOX and Roku received the requisite stockholder approvals for the transaction. The Roku Transaction remains subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. The Merger Agreement contains customary termination rights and provides that each party will be required to pay the other party a termination fee of approximately $866 million if the Merger Agreement is terminated in certain circumstances. In addition, FOX will be required to pay Roku a termination fee of approximately $1.2 billion if the Merger Agreement is terminated under certain circumstances related to the failure to obtain certain regulatory approvals or upon the entry of a permanent restraint under certain antitrust laws or investment screening laws.
The Company expects to fund the cash portion of the Merger consideration with a combination of debt and cash on hand. In connection with the Merger Agreement, in June 2026, the Company entered into a commitment letter under which the lenders provided $12.0 billion of commitments ($11.0 billion of which is available as of September 30, 2026) to provide senior unsecured bridge loans (the “Bridge Facility”) and a term loan credit agreement under which the lenders committed to provide a $1.0 billion senior unsecured term loan facility (the “Term Loan Facility”) (See Note 5—Borrowings).
Other Transactions
In July 2025, the Company acquired a noncontrolling minority interest in a sports and entertainment company, which was recorded as an equity method investment, initially at fair value.
NOTE 3. INVENTORIES, NET
The Company’s inventories were comprised of the following:
As of September 30, 2026 | As of June 30, 2026 | ||||||||||
| (in millions) | |||||||||||
| Licensed programming, including prepaid sports rights | $ | $ | |||||||||
| Owned programming | |||||||||||
| Total inventories, net | |||||||||||
| Less: current portion of inventories, net | ( | ( | |||||||||
| Total non-current inventories, net | $ | $ | |||||||||
| Owned programming | |||||||||||
| Released | $ | $ | |||||||||
| In-process or other | |||||||||||
| Total | $ | $ | |||||||||
The following table presents the aggregate amortization expense related to Inventories, net included in Operating expenses in the Statements of Operations:
For the three months ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Total amortization expense | $ | $ | |||||||||||||||||||||
7
FOX CORPORATION
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4. FAIR VALUE
Fair value measurements are required to be disclosed using a three-tiered fair value hierarchy which distinguishes market participant assumptions into the following categories: (i) inputs that are quoted prices in active markets (“Level 1”); (ii) inputs other than quoted prices included within Level 1 that are observable, including quoted prices for similar assets or liabilities (“Level 2”); and (iii) inputs that require the entity to use its own assumptions about market participant assumptions (“Level 3”).
The following tables present information about financial assets and redeemable noncontrolling interests carried at fair value on a recurring basis:
| Fair value measurements | ||||||||||||||||||||||||||
As of September 30, 2026 | ||||||||||||||||||||||||||
| Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||
| Investments in equity securities | $ | $ | (a) | $ | $ | |||||||||||||||||||||
| Redeemable noncontrolling interests | ( | ( | (b) | |||||||||||||||||||||||
| Total | $ | $ | $ | $ | ( | |||||||||||||||||||||
| Fair value measurements | ||||||||||||||||||||||||||
As of June 30, 2026 | ||||||||||||||||||||||||||
| Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||
| Investments in equity securities | $ | $ | (a) | $ | $ | |||||||||||||||||||||
| Redeemable noncontrolling interests | ( | ( | (b) | |||||||||||||||||||||||
| Total | $ | $ | $ | $ | ( | |||||||||||||||||||||
(a) | The investments categorized as Level 1 primarily represent an investment in equity securities of Flutter Entertainment plc (“Flutter”) with a readily determinable fair value. | ||||
(b) | See Note 11—Additional Financial Information. The Company utilizes both the market and income approach valuation techniques for its Level 3 fair value measures. Inputs to such measures could include observable market data obtained from independent sources such as broker quotes and recent market transactions for similar assets. It is the Company’s policy to maximize the use of observable inputs in the measurement of its Level 3 fair value measurements. To the extent observable inputs are not available, the Company utilizes unobservable inputs based upon the assumptions market participants would use in valuing the redeemable noncontrolling interests. Examples of utilized unobservable inputs are future cash flows and long-term growth rates. | ||||
Financial Instruments
The carrying value of the Company’s financial instruments exclusive of borrowings, such as cash and cash equivalents, receivables and payables approximates fair value.
The following table sets forth the fair value and carrying value of the Company’s Borrowings:
As of September 30, 2026 | As of June 30, 2026 | ||||||||||
| (in millions) | |||||||||||
| Borrowings | |||||||||||
| Fair value | $ | $ | |||||||||
| Carrying value | $ | $ | |||||||||
8
FOX CORPORATION
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Fair value is generally determined by reference to market values resulting from trading on a national securities exchange or in an over-the-counter market (a Level 1 measurement).
Concentrations of Credit Risk
Cash and cash equivalents are maintained with several financial institutions. The Company has deposits held with banks that exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions of reputable credit and, therefore, bear minimal credit risk.
Generally, the Company does not require collateral to secure receivables. As of September 30, 2026 and June 30, 2026, the Company had no individual customers that accounted for 10% or more of the Company’s receivables.
NOTE 5. BORROWINGS
Borrowings include senior notes (See Note 9—Borrowings in the 2026 Form 10-K under the heading “Public Debt – Senior Notes Issued”). The Company is party to a credit agreement providing a $1.0 billion unsecured revolving credit facility with a sub-limit of $150 million available for the issuance of letters of credit and a maturity date of June 2028 (See Note 9—Borrowings in the 2026 Form 10-K under the heading “Revolving Credit Agreement”). As of September 30, 2026, there were no borrowings outstanding under the revolving credit agreement.
The Company is also party to a term loan agreement providing for a $1.0 billion senior unsecured term loan facility with a maturity date that is two years after the closing of the Roku Transaction and the Term Loan Facility is funded (See Note 9—Borrowings in the 2026 Form 10-K under the heading “Term Loan Agreement”). As of September 30, 2026, there were no borrowings outstanding under the term loan agreement.
NOTE 6. STOCKHOLDERS’ EQUITY
Stock Repurchase Program
The Company’s Board of Directors has authorized a stock repurchase program under which the Company can repurchase $12 billion of Class A Common Stock, par value $0.01 per share (the “Class A Common Stock”), and Class B Common Stock, par value $0.01 per share (the “Class B Common Stock” and, together with the Class A Common Stock, the “Common Stock”). The program has no time limit and may be modified, suspended or discontinued at any time.
Repurchased shares are retired and reduce the number of shares issued and outstanding. The Company allocates the amount of the repurchase price over par value between additional paid-in capital and retained earnings.
As of September 30, 2026, the Company’s remaining stock repurchase authorization was approximately $3.4 billion.
Dividends
The following table summarizes the dividends declared per share on both the Company’s Class A Common Stock and Class B Common Stock:
For the three months ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Cash dividend per share | $ | $ | |||||||||||||||||||||
9
FOX CORPORATION
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
The Company declared a semi-annual dividend of $0.29
NOTE 7. EQUITY-BASED COMPENSATION
The Company maintains the Fox Corporation 2019 Shareholder Alignment Plan (See Note 12—Equity-Based Compensation in the 2026 Form 10-K).
The following table summarizes the Company’s equity-based compensation:
For the three months ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Equity-based compensation | $ | $ | |||||||||||||||||||||
| Intrinsic value of all settled equity-based awards | $ | $ | |||||||||||||||||||||
| Tax benefit on settled equity-based awards | $ | $ | |||||||||||||||||||||
The Company’s equity-based awards are settled in Class A Common Stock. As of September 30, 2026, the Company’s total estimated compensation cost, not yet recognized, related to non-vested equity awards held by the Company’s employees was approximately $200 million and is expected to be recognized over a weighted average period between two and three years .
The computation of diluted earnings per share did not include stock options or performance-based stock options outstanding during each period presented if their inclusion would have been antidilutive, and, for those shares that are contingently issuable, if all necessary conditions have not been satisfied for the periods presented.
Awards Vested, Granted and Exercised
Restricted Stock Units
During the three months ended September 30, 2026 and 2025, approximately 1.4 million and 1.6 million restricted stock units (“RSUs”) vested and approximately 1.2 million and 1.1 million RSUs were granted, respectively. These RSUs generally vest in equal annual installments over a three-year
Performance-Based Stock Options
During the three months ended September 30, 2026 and 2025, approximately 0.9 million and 1.3 million performance-based stock options were exercised and approximately 2.1 million and 2.4 million were granted, respectively, which will vest in full at the end of a three-year seven years
NOTE 8. COMMITMENTS AND CONTINGENCIES
Commitments
The Company has commitments under certain firm contractual arrangements (“firm commitments”) to make future payments. These firm commitments secure the future rights to various assets and services to be used in the normal course of operations. The total firm commitments and future debt payments as of September 30, 2026 and June 30, 2026 were approximately $32 billion and $33 billion, respectively. The decrease from June 30, 2026 was primarily due to sports programming rights payments.
10
FOX CORPORATION
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Legal and Other Contingencies
The Company establishes an accrued liability for legal claims and indemnification claims when the Company determines that a loss is both probable and the amount of the loss can be reasonably estimated. Once established, accruals are adjusted from time to time, as appropriate, in light of additional information. The amount of any loss ultimately incurred in relation to matters for which an accrual has been established may be higher or lower than the amounts accrued for such matters. Any fees, expenses, fines, penalties, judgments or settlements which might be incurred by the Company in connection with the various proceedings could affect the Company’s results of operations and financial condition. For the contingencies disclosed below for which there is at least a reasonable possibility that a loss may be incurred, other than the accrual provided, the Company was unable to estimate the amount of loss or range of loss.
FOX News
The Company’s FOX News business and certain of its current and former employees have been subject to allegations of sexual harassment and discrimination on the basis of sex and race. The Company has resolved many of these claims and is contesting other claims in litigation. The Company has also received regulatory and investigative inquiries relating to these matters. To date, none of the amounts paid in settlements or reserved for pending or future claims is material, individually or in the aggregate, to the Company. The amount of additional liability, if any, that may result from these or related matters cannot be estimated at this time. However, the Company does not currently anticipate that the ultimate resolution of any such pending matters will have a material adverse effect on its business, financial condition, results of operations or cash flows.
U.K. Newspaper Matters Indemnity
In connection with the separation of Twenty-First Century Fox, Inc. (“21CF”) and News Corporation in June 2013 (the “21CF News Corporation Separation”), 21CF agreed to indemnify News Corporation, on an after-tax basis, for payments made after the 21CF News Corporation Separation arising out of civil claims and investigations relating to phone hacking, illegal data access and inappropriate payments to public officials that occurred at subsidiaries of News Corporation before the 21CF News Corporation Separation, as well as legal and professional fees and expenses paid in connection with the related criminal matters, other than fees, expenses and costs relating to employees who are not (i) directors, officers or certain designated employees or (ii) with respect to civil matters, co-defendants with News Corporation (the “U.K. Newspaper Matters Indemnity”). In accordance with the separation agreement entered into in connection with the separation of 21CF and the Company in 2019 and 21CF becoming a wholly-owned subsidiary of The Walt Disney Company, the Company assumed certain costs and liabilities related to the U.K. Newspaper Matters Indemnity. The liability recorded in the Balance Sheets related to the indemnity was approximately $10 million and $20 million as of September 30, 2026 and June 30, 2026, respectively.
Defamation and Disparagement Claims
From time to time, the Company and its news businesses, including FOX News Media and the FOX Television Stations, and their employees are subject to lawsuits alleging defamation or disparagement. This includes the lawsuit filed by Smartmatic USA Corp. and certain of its affiliates (collectively, “Smartmatic”) in February 2021 seeking $2.7 billion in damages.
The Company continues to believe the Smartmatic and other pending lawsuits alleging defamation or disparagement are without merit and intends to defend against them vigorously, including through any appeals. The parties argued summary judgment motions in the Smartmatic case on December 2, 2025. At this time, no trial date has been set by the court in the Smartmatic lawsuit and a trial is not expected to commence until 2027 at the earliest. The Company is unable to predict the final outcome of these matters and has determined that a loss in the Smartmatic case is neither probable nor reasonably estimable. There can be no assurance that the ultimate resolution of these pending matters will not have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows.
11
FOX CORPORATION
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
In 2023, stockholders of the Company filed derivative lawsuits in the Delaware Court of Chancery (the “Chancery Court”) against certain directors and officers of the Company, naming the Company as a nominal defendant. The Chancery Court consolidated the lawsuits into one matter captioned In re Fox Corporation Deriv. Litig., C.A. No. 2023-0418 (Del.Ch.). On April 26, 2024, the lead plaintiffs filed an amended complaint that alleges that certain directors and officers, as applicable, breached their fiduciary duties by allowing the Company’s news channel to air allegations regarding election fraud in connection with the 2020 U.S. Presidential election, which resulted in significant defamation litigation. The amended complaint seeks orders awarding damages in favor of the Company; directing the Company to reform and improve its policies and procedures; and awarding the plaintiffs attorneys' fees and costs. On December 27, 2024, the Chancery Court denied the defendants’ motion to dismiss the amended complaint. On February 18, 2025, the Chancellor of the Chancery Court, on the Chancellor’s own motion, reassigned the consolidated lawsuit to a different Vice Chancellor. On April 28, 2025, the Chancery Court granted the defendants’ motion for leave to move for summary judgment on an issue relating to director independence and limited discovery on this issue is ongoing. The Company intends to continue to vigorously defend against these claims.
Tax Contingencies
The Company’s operations are subject to tax primarily in various domestic jurisdictions and as a matter of course, the Company is regularly audited by federal and state tax authorities. The Company believes it has appropriately accrued for the expected outcome of all pending tax matters and does not currently anticipate that the ultimate resolution of pending tax matters will have a material adverse effect on its consolidated financial condition, future results of operations or liquidity. Disputes or assessments could arise during current or future audits by the IRS and other jurisdictional tax authorities in amounts that the Company cannot quantify.
NOTE 9. PENSION AND OTHER POSTRETIREMENT BENEFITS
NOTE 10. SEGMENT INFORMATION
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, virtual multi-channel video programming distributors 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 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 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, 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.
12
FOX CORPORATION
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
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. 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 tables below present summarized financial information for each of the Company’s reportable segments and Corporate and Other.
For the three months ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Cable Network Programming | $ | $ | |||||||||||||||||||||
| Television | |||||||||||||||||||||||
| Total segment revenues | |||||||||||||||||||||||
| Corporate and Other | |||||||||||||||||||||||
| Eliminations | ( | ( | |||||||||||||||||||||
| Total revenues | $ | $ | |||||||||||||||||||||
| Segment EBITDA | |||||||||||||||||||||||
| Cable Network Programming | $ | $ | |||||||||||||||||||||
| Television | |||||||||||||||||||||||
| Total segment EBITDA | |||||||||||||||||||||||
| Corporate and Other | ( | ( | |||||||||||||||||||||
| Depreciation and amortization | ( | ( | |||||||||||||||||||||
| Restructuring, impairment and other corporate matters | ( | ||||||||||||||||||||||
| Equity losses of affiliates | ( | ||||||||||||||||||||||
| Interest expense, net | ( | ( | |||||||||||||||||||||
| Non-operating other, net | ( | ( | |||||||||||||||||||||
| Income before income tax expense | |||||||||||||||||||||||
| Income tax expense | ( | ( | |||||||||||||||||||||
| Net income | |||||||||||||||||||||||
| Less: Net income attributable to noncontrolling interests | ( | ( | |||||||||||||||||||||
| Net income attributable to Fox Corporation stockholders | $ | $ | |||||||||||||||||||||
13
FOX CORPORATION
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
For the three months ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Reconciliation of Revenues to Segment EBITDA | |||||||||||||||||||||||
| Cable Network Programming | |||||||||||||||||||||||
| Revenues | $ | $ | |||||||||||||||||||||
| Operating expenses | ( | ( | |||||||||||||||||||||
| Selling, general and administrative | ( | ( | |||||||||||||||||||||
| Segment EBITDA | $ | $ | |||||||||||||||||||||
| Television | |||||||||||||||||||||||
| Revenues | $ | $ | |||||||||||||||||||||
| Operating expenses | ( | ( | |||||||||||||||||||||
| Selling, general and administrative | ( | ( | |||||||||||||||||||||
| Segment EBITDA | $ | $ | |||||||||||||||||||||
For the three months ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Revenues by Segment by Component | |||||||||||||||||||||||
| Cable Network Programming | |||||||||||||||||||||||
| Distribution | $ | $ | |||||||||||||||||||||
| Advertising | |||||||||||||||||||||||
| Content and other | |||||||||||||||||||||||
| Total Cable Network Programming revenues | |||||||||||||||||||||||
| Television | |||||||||||||||||||||||
| Advertising | |||||||||||||||||||||||
| Distribution | |||||||||||||||||||||||
| Content and other | |||||||||||||||||||||||
| Total Television revenues | |||||||||||||||||||||||
| Corporate and Other | |||||||||||||||||||||||
| Eliminations | ( | ( | |||||||||||||||||||||
| Total revenues | $ | $ | |||||||||||||||||||||
For the three months ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Depreciation and amortization | |||||||||||||||||||||||
| Cable Network Programming | $ | $ | |||||||||||||||||||||
| Television | |||||||||||||||||||||||
| Corporate and Other | |||||||||||||||||||||||
| Total depreciation and amortization | $ | $ | |||||||||||||||||||||
14
FOX CORPORATION
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
For the three months ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Capital expenditures | |||||||||||||||||||||||
| Cable Network Programming | $ | $ | |||||||||||||||||||||
| Television | |||||||||||||||||||||||
| Corporate and Other | |||||||||||||||||||||||
| Total capital expenditures | $ | $ | |||||||||||||||||||||
As of September 30, 2026 | As of June 30, 2026 | ||||||||||
| (in millions) | |||||||||||
| Assets | |||||||||||
| Cable Network Programming | $ | $ | |||||||||
| Television | |||||||||||
| Corporate and Other | |||||||||||
| Investments | |||||||||||
| Total assets | $ | $ | |||||||||
NOTE 11. ADDITIONAL FINANCIAL INFORMATION
Restructuring, Impairment and Other Corporate Matters
The following table sets forth the components of Restructuring, impairment and other corporate matters included in the Statements of Operations:
For the three months ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Restructuring charges | $ | ( | $ | ( | |||||||||||||||||||
| Other corporate matters | ( | ||||||||||||||||||||||
| Total restructuring, impairment and other corporate matters | $ | ( | $ | ||||||||||||||||||||
Interest Expense, net
The following table sets forth the components of Interest expense, net included in the Statements of Operations:
For the three months ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Interest expense | $ | ( | $ | ( | |||||||||||||||||||
| Interest income | |||||||||||||||||||||||
| Total interest expense, net | $ | ( | $ | ( | |||||||||||||||||||
15
FOX CORPORATION
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Non-Operating Other, net
The following table sets forth the components of Non-operating other, net included in the Statements of Operations:
For the three months ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
Net losses on investments in equity securities(a) | $ | ( | $ | ( | |||||||||||||||||||
| Other | ( | ( | |||||||||||||||||||||
| Total non-operating other, net | $ | ( | $ | ( | |||||||||||||||||||
(a) | Net losses on investments in equity securities includes the losses related to the change in fair value of the Company’s investment in Flutter (See Note 4—Fair Value). | ||||
Other Non-Current Assets
The following table sets forth the components of Other non-current assets included in the Balance Sheets:
As of September 30, 2026 | As of June 30, 2026 | ||||||||||
| (in millions) | |||||||||||
Inventories, net | $ | $ | |||||||||
| Operating lease assets | |||||||||||
Investments(a) | |||||||||||
| Grantor Trust assets | |||||||||||
| Other | |||||||||||
| Total other non-current assets | $ | $ | |||||||||
(a) | Includes investments accounted for at fair value on a recurring basis of $ | ||||
Accounts Payable, Accrued Expenses and Other Current Liabilities
The following table sets forth the components of Accounts payable, accrued expenses and other current liabilities included in the Balance Sheets:
As of September 30, 2026 | As of June 30, 2026 | ||||||||||
| (in millions) | |||||||||||
| Accrued expenses | $ | $ | |||||||||
| Programming payable | |||||||||||
| Deferred revenue | |||||||||||
| Operating lease liabilities | |||||||||||
| Other current liabilities | |||||||||||
| Total accounts payable, accrued expenses and other current liabilities | $ | $ | |||||||||
16
FOX CORPORATION
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Other Liabilities
The following table sets forth the components of Other liabilities included in the Balance Sheets:
As of September 30, 2026 | As of June 30, 2026 | ||||||||||
| (in millions) | |||||||||||
| Non-current operating lease liabilities | $ | $ | |||||||||
| Accrued non-current pension/postretirement liabilities | |||||||||||
| Other non-current liabilities | |||||||||||
| Total other liabilities | $ | $ | |||||||||
Redeemable Noncontrolling Interests
Put rights held by minority shareholders in consolidated companies are recorded by the Company as redeemable noncontrolling interests. The put right held by the entertainment production company’s minority shareholder will become exercisable in fiscal 2029. The put right held by the digital media company’s minority shareholders will become exercisable in fiscal 2030.
The changes in redeemable noncontrolling interests were as follows:
For the three months ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Beginning of period | $ | $ | |||||||||||||||||||||
| Net income | |||||||||||||||||||||||
| Redemption of noncontrolling interests | ( | ||||||||||||||||||||||
| End of period | $ | $ | |||||||||||||||||||||
Future Performance Obligations
As of September 30, 2026, approximately $6.9 billion of revenues are expected to be recognized primarily over the next one to three years. The Company’s most significant remaining performance obligations relate to distribution contracts, content licensing contracts with fixed fees and sports advertising contracts. The amount disclosed does not include (i) revenues related to performance obligations that are part of a contract whose original expected duration is one year or less, (ii) revenues that are in the form of sales- or usage-based royalties and (iii) revenues related to performance obligations for which the Company elects to recognize revenue in the amount it has a right to invoice.
Supplemental Information
The following table summarizes supplemental information on the Statements of Cash Flows:
For the three months ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| (in millions) | |||||||||||
| Supplemental cash flow information | |||||||||||
| Cash paid for interest | $ | ( | $ | ( | |||||||
| Cash paid for income taxes | $ | ( | $ | ( | |||||||
17
ITEM 2. 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”) 2026 as filed with the SEC on August 6, 2026 (the “2026 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 months ended September 30, 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 months ended September 30, 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 three months ended September 30, 2026 and 2025, as well as a discussion of the Company’s outstanding debt and commitments, both firm and contingent, that existed as of September 30, 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 2026 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
18
streaming service, 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.
Roku Transaction
On June 14, 2026, the Company and Roku, Inc. (“Roku”) entered into a definitive agreement (the “Merger Agreement”) under which the Company has agreed to acquire Roku for a combination of cash and FOX Class A Common Stock (the “Roku Transaction” or the “Merger”). Upon the terms and subject to the conditions of the Merger Agreement, FOX will pay $96.00 in cash and 0.9693 shares of FOX Class A Common Stock for each share of Roku Class A Common Stock and Roku Class B Common Stock outstanding immediately prior to the effective time of the merger. The exchange ratio and per share cash amount are subject to adjustment as set forth in the Merger Agreement in certain circumstances relating to Roku stockholders who properly exercise appraisal rights in accordance with Delaware law. Following the completion of the Merger, Roku will be a wholly-owned subsidiary of FOX.
Each of the Boards of Directors of FOX and Roku unanimously approved the Roku Transaction, and in October 2026 FOX and Roku received the requisite stockholder approvals for the transaction. The Roku Transaction remains subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. The Merger Agreement contains customary termination rights and provides that each party will be required to pay the other party a termination fee of approximately $866 million if the Merger Agreement is terminated in certain circumstances. In addition, FOX will be required to pay Roku a termination fee of approximately $1.2 billion if the Merger Agreement is terminated under certain circumstances related to the failure to obtain certain regulatory approvals or upon the entry of a permanent restraint under certain antitrust laws or investment screening laws.
The Company expects to fund the cash portion of the Merger consideration with a combination of debt and cash on hand. In connection with the Merger Agreement, in June 2026, the Company entered into a commitment letter under which the lenders provided $12.0 billion of commitments ($11.0 billion of which is available as of September 30, 2026) to provide senior unsecured bridge loans (the “Bridge Facility”) and a term loan credit agreement under which the lenders committed to provide a $1.0 billion senior unsecured term loan facility (the “Term Loan Facility”) (See Note 5—Borrowings to the accompanying Financial Statements).
19
RESULTS OF OPERATIONS
Results of Operations—For the three months ended September 30, 2026 versus the three months ended September 30, 2025.
The following table sets forth the Company’s operating results for the three months ended September 30, 2026, as compared to the three months ended September 30, 2025:
For the three months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||
| (in millions, except %) | Better/(Worse) | ||||||||||||||||||||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||||||||||||||
| Distribution | $ | 2,084 | $ | 1,915 | $ | 169 | 9 | % | |||||||||||||||||||||||||||||||||||||||
| Advertising | 2,081 | 1,412 | 669 | 47 | % | ||||||||||||||||||||||||||||||||||||||||||
| Content and other | 406 | 411 | (5) | (1) | % | ||||||||||||||||||||||||||||||||||||||||||
| Total revenues | 4,571 | 3,738 | 833 | 22 | % | ||||||||||||||||||||||||||||||||||||||||||
| Operating expenses | (2,363) | (2,121) | (242) | (11) | % | ||||||||||||||||||||||||||||||||||||||||||
| Selling, general and administrative | (567) | (552) | (15) | (3) | % | ||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | (118) | (98) | (20) | (20) | % | ||||||||||||||||||||||||||||||||||||||||||
| Restructuring, impairment and other corporate matters | (17) | 8 | (25) | ** | |||||||||||||||||||||||||||||||||||||||||||
| Equity losses of affiliates | — | (1) | 1 | 100 | % | ||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | (80) | (50) | (30) | (60) | % | ||||||||||||||||||||||||||||||||||||||||||
| Non-operating other, net | (143) | (125) | (18) | (14) | % | ||||||||||||||||||||||||||||||||||||||||||
| Income before income tax expense | 1,283 | 799 | 484 | 61 | % | ||||||||||||||||||||||||||||||||||||||||||
| Income tax expense | (326) | (190) | (136) | (72) | % | ||||||||||||||||||||||||||||||||||||||||||
| Net income | 957 | 609 | 348 | 57 | % | ||||||||||||||||||||||||||||||||||||||||||
| Less: Net income attributable to noncontrolling interests | (14) | (10) | (4) | (40) | % | ||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to Fox Corporation stockholders | $ | 943 | $ | 599 | $ | 344 | 57 | % | |||||||||||||||||||||||||||||||||||||||
| ** | not meaningful | |||||||||||||
Overview
For the three months ended September 30, 2026 and 2025
The Company’s revenues increased $833 million or 22% for the three months ended September 30, 2026, as compared to the corresponding period of fiscal 2026, due to higher distribution and advertising revenues, partially offset by lower content and other revenues. The increase of $169 million or 9% in distribution revenue was due to higher average rates per subscriber of approximately $95 million and the approximately $75 million impact of a higher average number of subscribers. The increase of $669 million or 47% in advertising revenue was primarily due to sports programming led by the broadcast of the Fédération Internationale de Football Association ("FIFA") Men’s World Cup partially offset by the timing of National Football League (“NFL”) games. Also contributing to this increase was higher political advertising revenue principally due to the November 2026 U.S. midterm elections and continued digital growth led by the Tubi AVOD service.
Operating expenses increased $242 million or 11% for the three months ended September 30, 2026, as compared to the corresponding period of fiscal 2026, primarily due to the approximately $120 million impact of higher sports programming rights amortization and production costs led by the broadcast of the FIFA Men’s World Cup partially offset by lower NFL costs, driven by the timing of games. The remaining increase of approximately $120 million was primarily due to higher digital content costs, partially offset by lower entertainment programming rights amortization.
20
Selling, general and administrative expenses increased $15 million or 3% for the three months ended September 30, 2026, as compared to the corresponding period of fiscal 2026, primarily due to higher employee costs, partially offset by lower legal costs.
Depreciation and amortization—Depreciation and amortization expense increased $20 million or 20% for the three months ended September 30, 2026, as compared to the corresponding period of fiscal 2026, primarily due to amortization related to the Company’s Federal Communications Commission (“FCC”) licenses which began on July 1, 2026 (See Note 1—Description of Business and Basis of Presentation to the accompanying Financial Statements under the heading “Critical accounting policies and estimates”).
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 $30 million or 60% for the three months ended September 30, 2026, as compared to the corresponding period of fiscal 2026, primarily due to lower interest income as a result of lower interest rates and lower average cash and cash equivalent balances.
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 25% for the three months ended September 30, 2026, was higher than the statutory rate of 21% primarily due to state taxes and a valuation allowance recorded against capital losses on investments.
The Company's tax provision and related effective tax rate of 24% for the three months ended September 30, 2025 was higher than the statutory rate of 21% primarily due to state taxes partially offset by other permanent items.
Net income—Net income increased $348 million or 57% for the three months ended September 30, 2026, as compared to the corresponding period of fiscal 2026, primarily due to higher Segment EBITDA (as defined below), partially offset by a change in fair value of the Company’s investments in equity securities and amortization related to the Company’s FCC licenses (See Note 1—Description of Business and Basis of Presentation to the accompanying Financial Statements under the heading “Critical accounting policies and estimates”). These changes resulted in higher income before income tax expense and a corresponding higher 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. 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.
21
The following tables set forth the Company’s Revenues and Segment EBITDA for the three months ended September 30, 2026, as compared to the three months ended September 30, 2025:
For the three months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||
| (in millions, except %) | Better/(Worse) | ||||||||||||||||||||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||||||||||||||
| Cable Network Programming | $ | 1,803 | $ | 1,662 | $ | 141 | 8 | % | |||||||||||||||||||||||||||||||||||||||
| Television | 2,713 | 2,050 | 663 | 32 | % | ||||||||||||||||||||||||||||||||||||||||||
| Corporate and Other | 246 | 89 | 157 | ** | |||||||||||||||||||||||||||||||||||||||||||
| Eliminations | (191) | (63) | (128) | ** | |||||||||||||||||||||||||||||||||||||||||||
| Total revenues | $ | 4,571 | $ | 3,738 | $ | 833 | 22 | % | |||||||||||||||||||||||||||||||||||||||
For the three months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||
| (in millions, except %) | Better/(Worse) | ||||||||||||||||||||||||||||||||||||||||||||||
| Segment EBITDA | |||||||||||||||||||||||||||||||||||||||||||||||
| Cable Network Programming | $ | 859 | $ | 800 | $ | 59 | 7 | % | |||||||||||||||||||||||||||||||||||||||
| Television | 934 | 399 | 535 | ** | |||||||||||||||||||||||||||||||||||||||||||
| Corporate and Other | (152) | (134) | (18) | (13) | % | ||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA(a) | $ | 1,641 | $ | 1,065 | $ | 576 | 54 | % | |||||||||||||||||||||||||||||||||||||||
| ** | 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 (39% and 44% of the Company’s revenues for the first three months of fiscal 2027 and 2026, respectively)
For the three months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||
| (in millions, except %) | Better/(Worse) | ||||||||||||||||||||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||||||||||||||
| Distribution | $ | 1,200 | $ | 1,090 | $ | 110 | 10 | % | |||||||||||||||||||||||||||||||||||||||
| Advertising | 373 | 345 | 28 | 8 | % | ||||||||||||||||||||||||||||||||||||||||||
| Content and other | 230 | 227 | 3 | 1 | % | ||||||||||||||||||||||||||||||||||||||||||
| Total revenues | 1,803 | 1,662 | 141 | 8 | % | ||||||||||||||||||||||||||||||||||||||||||
| Operating expenses | (793) | (703) | (90) | (13) | % | ||||||||||||||||||||||||||||||||||||||||||
| Selling, general and administrative | (151) | (159) | 8 | 5 | % | ||||||||||||||||||||||||||||||||||||||||||
| Segment EBITDA | $ | 859 | $ | 800 | $ | 59 | 7 | % | |||||||||||||||||||||||||||||||||||||||
For the three months ended September 30, 2026 and 2025
Revenues at the Cable Network Programming segment increased $141 million or 8% for the three months ended September 30, 2026, as compared to the corresponding period of fiscal 2026, due to higher distribution, advertising and content and other revenues. Distribution revenue increased $110 million or 10% primarily due to higher average rates per subscriber and an increase in the average number of subscribers. The
22
increase of $28 million or 8% in advertising revenue was primarily due to higher sports advertising revenue including the broadcast of the FIFA Men’s World Cup, partially offset by lower digital news advertising revenue.
Cable Network Programming Segment EBITDA increased $59 million or 7% for the three months ended September 30, 2026, as compared to the corresponding period of fiscal 2026, due to the revenue increases noted above, partially offset by higher expenses. Operating expenses increased $90 million or 13% primarily due to higher sports programming rights amortization and production costs led by soccer rights, including the broadcast of the FIFA Men’s World Cup, and higher news programming costs. Selling, general and administrative expenses decreased $8 million or 5% primarily due to lower legal costs.
Television (59% and 55% of the Company’s revenues for the first three months of fiscal 2027 and 2026, respectively)
For the three months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||
| (in millions, except %) | Better/(Worse) | ||||||||||||||||||||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||||||||||||||
| Advertising | $ | 1,708 | $ | 1,067 | $ | 641 | 60 | % | |||||||||||||||||||||||||||||||||||||||
| Distribution | 850 | 821 | 29 | 4 | % | ||||||||||||||||||||||||||||||||||||||||||
| Content and other | 155 | 162 | (7) | (4) | % | ||||||||||||||||||||||||||||||||||||||||||
| Total revenues | 2,713 | 2,050 | 663 | 32 | % | ||||||||||||||||||||||||||||||||||||||||||
| Operating expenses | (1,496) | (1,385) | (111) | (8) | % | ||||||||||||||||||||||||||||||||||||||||||
| Selling, general and administrative | (283) | (266) | (17) | (6) | % | ||||||||||||||||||||||||||||||||||||||||||
| Segment EBITDA | $ | 934 | $ | 399 | $ | 535 | ** | ||||||||||||||||||||||||||||||||||||||||
| ** | not meaningful | ||||
For the three months ended September 30, 2026 and 2025
Revenues at the Television segment increased $663 million or 32% for the three months ended September 30, 2026, as compared to the corresponding period of fiscal 2026, due to higher advertising and distribution revenues, partially offset by lower content and other revenues. The increase of $641 million or 60% in advertising revenue was primarily due to sports programming led by the broadcast of the FIFA Men’s World Cup and higher pricing partially offset by the timing of NFL games and lower ratings. Also contributing to this increase was higher political advertising revenue principally due to the November 2026 U.S. midterm elections and continued digital growth led by the Tubi AVOD service. The increase of $29 million or 4% in distribution revenue was primarily due to higher average rates per subscriber at the Company’s owned and operated television stations and a higher average number of subscribers. The decrease of $7 million or 4% in content and other revenues was primarily due to lower entertainment content revenue.
Television Segment EBITDA increased $535 million for the three months ended September 30, 2026, as compared to the corresponding period of fiscal 2026, due to the revenue increases noted above, partially offset by higher expenses. Operating expenses increased $111 million or 8% primarily due to higher sports programming rights amortization and production costs led by the broadcast of the FIFA Men’s World Cup partially offset by lower NFL costs, driven by the timing of games. Also contributing to this increase was higher digital content costs, partially offset by lower entertainment programming rights amortization. Selling, general and administrative expenses increased $17 million or 6% primarily due to higher employee costs.
23
Corporate and Other
For the three months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||
| (in millions, except %) | Better/(Worse) | ||||||||||||||||||||||||||||||||||||||||||||||
| Revenues | $ | 246 | $ | 89 | $ | 157 | ** | ||||||||||||||||||||||||||||||||||||||||
| Operating expenses | (251) | (82) | (169) | ** | |||||||||||||||||||||||||||||||||||||||||||
| Selling, general and administrative | (147) | (141) | (6) | (4) | % | ||||||||||||||||||||||||||||||||||||||||||
| Segment EBITDA | $ | (152) | $ | (134) | $ | (18) | (13) | % | |||||||||||||||||||||||||||||||||||||||
| ** | not meaningful | |||||||||||||
For the three months ended September 30, 2026 and 2025
Revenues within Corporate and Other for the three months ended September 30, 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 months ended September 30, 2026 and 2025 include costs of operating the FOX One streaming service and advertising and promotional expenses at Credible. Selling, general and administrative expenses for the three months ended September 30, 2026 and 2025 primarily relate to employee costs, professional fees and the costs of operating the FOX Studio Lot and FOX One streaming service.
Corporate and Other EBITDA decreased $18 million or 13% for the three months ended September 30, 2026, respectively, as compared to the corresponding period of fiscal 2026, primarily due to intercompany FOX branded content and marketing costs at the FOX One streaming service, 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.
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.
24
The following table reconciles Net income to Adjusted EBITDA for the three months ended September 30, 2026, as compared to the three months ended September 30, 2025:
For the three months ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Net income | $ | 957 | $ | 609 | |||||||||||||||||||
| Add | |||||||||||||||||||||||
| Depreciation and amortization | 118 | 98 | |||||||||||||||||||||
| Restructuring, impairment and other corporate matters | 17 | (8) | |||||||||||||||||||||
| Equity losses of affiliates | — | 1 | |||||||||||||||||||||
| Interest expense, net | 80 | 50 | |||||||||||||||||||||
| Non-operating other, net | 143 | 125 | |||||||||||||||||||||
| Income tax expense | 326 | 190 | |||||||||||||||||||||
| Adjusted EBITDA | $ | 1,641 | $ | 1,065 | |||||||||||||||||||
The following table sets forth the computation of Adjusted EBITDA for the three months ended September 30, 2026, as compared to the three months ended September 30, 2025:
For the three months ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Revenues | $ | 4,571 | $ | 3,738 | |||||||||||||||||||
| Operating expenses | (2,363) | (2,121) | |||||||||||||||||||||
| Selling, general and administrative | (567) | (552) | |||||||||||||||||||||
| Adjusted EBITDA | $ | 1,641 | $ | 1,065 | |||||||||||||||||||
LIQUIDITY AND CAPITAL RESOURCES
Current Financial Condition
The Company has approximately $4.5 billion of cash and cash equivalents as of September 30, 2026 and an unused five-year $1.0 billion unsecured revolving credit facility (See Note 5—Borrowings to the accompanying Financial Statements). In addition, the Company can draw on the Term Loan Facility and commitments under the Bridge Facility to finance the cash portion of the Merger consideration (See Note 2—Acquisitions, Disposals and Other Transactions to the accompanying Financial Statements). The Company also has access to global capital markets, subject to market conditions. As of September 30, 2026, the Company was in compliance with all of the covenants under the Company’s facilities, 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.
In addition to the transactions disclosed within Note 2—Acquisitions, Disposals and Other Transactions to the accompanying Financial Statements, 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.
25
Sources and Uses of Cash
Net cash provided by (used in) operating activities for the three months ended September 30, 2026 and 2025 was as follows (in millions):
For the three months ended September 30, | 2026 | 2025 | ||||||||||||
| Net cash provided by (used in) operating activities | $ | 616 | $ | (130) | ||||||||||
The change in net cash provided by (used in) operating activities during the three months ended September 30, 2026, as compared to the corresponding period of fiscal 2026, was primarily due to the FIFA Men’s World Cup in the current year, higher political advertising receipts and lower entertainment programming payments, partially offset by higher sports programming payments.
Net cash used in investing activities for the three months ended September 30, 2026 and 2025 was as follows (in millions):
For the three months ended September 30, | 2026 | 2025 | ||||||||||||
| Net cash used in investing activities | $ | (139) | $ | (255) | ||||||||||
The decrease in net cash used in investing activities during the three months ended September 30, 2026, as compared to the corresponding period of fiscal 2026, was primarily due to a decrease in the Company’s investments partially offset by an increase in the Company’s capital expenditures.
Net cash used in financing activities for the three months ended September 30, 2026 and 2025 was as follows (in millions):
For the three months ended September 30, | 2026 | 2025 | ||||||||||||
| Net cash used in financing activities | $ | (146) | $ | (598) | ||||||||||
The decrease in net cash used in financing activities during the three months ended September 30, 2026, as compared to the corresponding period of fiscal 2026, was primarily due to the absence of activity under the stock repurchase program and the purchase of noncontrolling interest in fiscal 2026.
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 $0.29 per share on both the Class A Common Stock, par value $0.01 per share (the “Class A Common Stock”), and the Class B Common Stock, par value $0.01 per share (the “Class B Common Stock”) during the three months ended September 30, 2026, which was paid on September 23, 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).
26
Ratings of the Senior Notes
The following table summarizes the Company’s credit ratings as of September 30, 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).
Bridge Facility
The Company has a commitment letter for the Bridge Facility which may be drawn on for the purpose of financing the cash portion of the Merger consideration (See Note 2—Acquisitions, Disposals and Other Transactions to the accompanying Financial Statements).
Term Loan Agreement
The Company has a Term Loan Facility to fund the cash portion of the Merger consideration, which has a maturity date of two years after the closing of the Roku Transaction and the Term Loan Facility is funded (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 2026 Form 10-K, with the exception of the change related to the reassessment of the useful lives for the Company’s FCC licenses (See Note 1—Description of Business and Basis of Presentation to the accompanying Financial Statements under the heading “Critical accounting policies and estimates”).
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) the Roku Transaction; (ii) future earnings, revenues or other measures of the Company’s financial performance; (iii) the Company’s plans, strategies and objectives for future operations; (iv) proposed new programming or other offerings; (v) future economic conditions or performance; and (vi) assumptions underlying any of the foregoing. Forward-looking statements may include, among others, the words “may,” “will,” “could,” “should,” “would,” “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
27
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:
•the impact of the Roku Transaction, which may be affected by various factors, including closing conditions, regulatory approvals, termination of the Merger Agreement, restrictions on the Company’s ability to pursue alternative transactions, potential litigation, business disruptions while the transaction is pending, impacts on the Common Stock, increased indebtedness, and the Company’s ability to successfully integrate operations and realize anticipated synergies and other benefits post-closing, as well as the risk that the transaction may be delayed or not completed at all;
•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 the evolution of audience measurement methodologies;
•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 other acquisitions, investments and other strategic initiatives, and the effects of any other 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 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 and changes in the availability and use of satellite transmission spectrum;
•unfavorable litigation outcomes or investigation results that require the Company to pay significant amounts or lead to onerous operating procedures;
28
•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 2026 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.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
There have been no material changes in the market risks reported in the 2026 Form 10-K.
ITEM 4. CONTROLS AND PROCEDURES
(a)Disclosure Controls and Procedures
The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this Quarterly Report. Based on such evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the Company’s disclosure controls and procedures were effective in recording, processing, summarizing and reporting on a timely basis, information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act and were effective in ensuring that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.
(b)Changes in Internal Control over Financial Reporting
There were no changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the Company’s first quarter of fiscal 2027 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
29
PART II
ITEM 1. LEGAL PROCEEDINGS
See Note 8—Commitments and Contingencies to the accompanying Unaudited Consolidated Financial Statements of FOX under the heading “Legal and Other Contingencies” for a discussion of the Company’s legal proceedings.
ITEM 1A. RISK FACTORS
There have been no material changes to the risk factors described in the section titled “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2026, as filed with the Securities and Exchange Commission on August 6, 2026.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Not applicable.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not applicable.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5. OTHER INFORMATION
ITEM 6. EXHIBITS
(a) Exhibits.
| 31.1 | Chief Executive Officer Certification required by Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934, as amended.* | |||||||
| 31.2 | Chief Financial Officer Certification required by Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934, as amended.* | |||||||
| 32.1 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of Sarbanes Oxley Act of 2002.** | |||||||
| 101 | The following financial information from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2026 formatted in Inline XBRL (eXtensible Business Reporting Language): (i) Unaudited Consolidated Statements of Operations for the three months ended September 30, 2026 and 2025; (ii) Unaudited Consolidated Statements of Comprehensive Income for the three months ended September 30, 2026 and 2025; (iii) Consolidated Balance Sheets as of September 30, 2026 (unaudited) and June 30, 2026 (audited); (iv) Unaudited Consolidated Statements of Cash Flows for the three months ended September 30, 2026 and 2025; (v) Unaudited Consolidated Statements of Equity for the three months ended September 30, 2026 and 2025; and (vi) Notes to the Unaudited Consolidated Financial Statements.* | |||||||
| 104 | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101). | |||||||
| * | Filed herewith. | |||||||||||||
** | Furnished herewith. | |||||||||||||
30
SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Fox Corporation (Registrant) | |||||||||||
| By: | /s/ Steven Tomsic | ||||||||||
| Steven Tomsic | |||||||||||
| Chief Financial Officer | |||||||||||
| Date: November 2, 2026 | |||||||||||
31