Fox Corp SEC 10-K Report

Fox Corporation, a leading media company known for its robust portfolio of news, sports, and entertainment content, has released its annual Form 10-K report for the fiscal year 2025. The report highlights significant financial growth, strategic initiatives, and the challenges the company faces in an evolving media landscape.

Financial Highlights

Fox Corporation reported impressive financial performance for the fiscal year 2025:

• Total Revenues: $16,300 million, a 17% increase from fiscal 2024, driven by higher affiliate fees, advertising, and other revenues.
• Operating Income: $3,061 million, up 45% from fiscal 2024, attributed to higher Segment EBITDA and a change in the fair value of the company’s investments in equity securities.
• Net Income: $2,293 million, a 48% increase from fiscal 2024, primarily due to higher Segment EBITDA and changes in the fair value of the company’s investments in equity securities.
• Net Income Attributable to Fox Corporation Stockholders: $2,263 million, a 51% increase from fiscal 2024.
• Basic EPS: $4.97, up from $3.14 in fiscal 2024.
• Diluted EPS: $4.91, up from $3.13 in fiscal 2024.

Business Highlights

Fox Corporation's operational performance was marked by significant growth and strategic expansions:

• Revenue Segments: The Cable Network Programming segment saw a 16% increase in revenues, driven by higher affiliate fees, advertising, and sports sublicensing revenue. The Television segment experienced an 18% increase in revenues, primarily due to higher advertising revenue from sports programming and political advertising, as well as increased affiliate fees.
• Geographical Performance: FOX's content distribution covers virtually every U.S. market, with FOX News and FOX Business available in approximately 60 million U.S. households. Tubi's availability spans over 100 local station feeds, covering 78 DMAs and 23 of the top 25 markets.
• Sales Units: Tubi reported a 13% growth in total view time, with approximately 11 billion hours of content streamed over the fiscal year, indicating strong engagement with its content library.
• New Product Launches: FOX announced the launch of FOX One, a direct-to-consumer streaming service expected to debut by Fall 2025, offering live streaming and on-demand access to FOX's full portfolio of brands.
• New Production Launches: The FOX Studio Lot in Los Angeles continues to provide extensive production services, including 15 sound stages and other facilities, supporting both internal and third-party productions.
• Future Outlook: FOX aims to maintain its leadership in live news, sports, and entertainment by expanding digital distribution and direct consumer engagement. The company plans to leverage its strong brand portfolio to secure industry-leading affiliate and advertising rates.

Strategic Initiatives

Fox Corporation has been actively managing its strategic initiatives to enhance its portfolio and maintain financial stability:

• Acquisitions and Dispositions: The company has been involved in acquisitions during fiscal 2025, contributing to an increase in net cash used in investing activities. Fox Corporation is continuously evaluating possible acquisitions and dispositions of certain businesses and assets, which may involve cash, securities, or additional indebtedness.
• Capital Management: Fox Corporation maintains a strong liquidity position with approximately $5.4 billion in cash and cash equivalents as of June 30, 2025, and an unused $1.0 billion revolving credit facility. The company repurchased $1 billion of its shares during fiscal 2025 and paid dividends totaling $0.54 per share. Additionally, the company issued $1.25 billion in senior notes in October 2023 and repaid $1.25 billion and $600 million of senior notes that matured in January 2024 and April 2025, respectively. A semi-annual dividend of $0.28 per share was declared, payable in September 2025.
• Future Outlook: Fox Corporation plans to continue its strategic focus on acquisitions and potential business dispositions to enhance its portfolio. The company expects to maintain its strong liquidity position and continue its share repurchase program and dividend payments. The company is also committed to evaluating new opportunities for capital investment, with an emphasis on sustainable growth and maintaining compliance with financial covenants.

Challenges and Risks

Fox Corporation faces several challenges and risks in the evolving media landscape:

• Consumer Behavior and Technology: The company faces significant risks related to changes in consumer behavior and evolving technologies, which challenge existing business models and may adversely affect its financial condition. The rise of direct-to-consumer offerings and advertising-supported tiers has intensified competition for digital advertising, impacting the company's revenue streams. Additionally, the use of time-shifting and ad-skipping technologies reduces the attractiveness of the company's programming to advertisers.
• Macroeconomic Conditions: The company is exposed to risks associated with macroeconomic conditions, including economic weakness, high inflation, and changes in consumer spending habits, which can negatively impact advertising revenues. The decline in subscribers to traditional MVPD services due to changing consumer preferences further exacerbates these challenges.
• Regulatory Risks: Regulatory risks are significant, with the company subject to complex laws and regulations related to privacy, data protection, and broadcasting. Changes in these regulations or their enforcement could adversely affect the company's operations and financial results.
• Operational Risks: Operational risks include the potential for labor disputes, which could disrupt operations and increase costs. The company also faces cybersecurity threats that could lead to service disruptions or data breaches, impacting its reputation and financial performance.
• Emerging Risks: Emerging risks include the development and use of generative AI, which presents both opportunities and uncertainties. The company must effectively adapt to these technological advancements to remain competitive.
• Management Strategies: Management acknowledges the challenges posed by the evolving media landscape and is focused on investing in digital distribution offerings and direct consumer engagement. The company plans to launch the FOX One direct-to-consumer subscription streaming service by Fall 2025 to expand its digital footprint.
• Market Risks: The company is exposed to market risks, including fluctuations in advertising expenditures and changes in the economic prospects of advertisers. The strength of the advertising market is influenced by various factors, including economic conditions and political uncertainties, which can impact the company's financial performance.

SEC Filing: Fox Corp [ FOX ] - 10-K - Aug. 06, 2025