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Cover and table of contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
| For the quarterly period ended September 30, 2025 |
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
FOX CORPORATION
(Exact name of registrant as specified in its charter)
| Delaware | 83-1825597 | |||||||
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
| 1211 Avenue of the Americas | ||||||||||||||
| New York, | New York | 10036 | ||||||||||||
| (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 | ||||||
| Class A Common Stock, par value $0.01 per share | FOXA | The Nasdaq Global Select Market | ||||||
| Class B Common Stock, par value $0.01 per share | FOX | The Nasdaq Global Select Market |
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.
| Large accelerated filer | x | Accelerated filer | o | |||||||||||
| Non-accelerated filer | o | Smaller reporting company | o | |||||||||||
| Emerging growth company | o |
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 27, 2025, 208,361,696 shares of Class A Common Stock, par value $0.01 per share, and 235,581,025 shares of Class B Common Stock, par value $0.01 per share, were outstanding.
FOX CORPORATION
FORM 10-Q
TABLE OF CONTENTS
FOX CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
| For the three months ended September 30, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| Revenues | $ | 3,738 | $ | 3,564 | |||||||||||||||||||
| Operating expenses | (2,084) | (2,018) | |||||||||||||||||||||
| Selling, general and administrative | (589) | (502) | |||||||||||||||||||||
| Depreciation and amortization | (98) | (91) | |||||||||||||||||||||
| Restructuring, impairment and other corporate matters | 8 | (26) | |||||||||||||||||||||
| Equity (losses) earnings of affiliates | (1) | 3 | |||||||||||||||||||||
| Interest expense, net | (50) | (50) | |||||||||||||||||||||
| Non-operating other, net | (125) | 233 | |||||||||||||||||||||
| Income before income tax expense | 799 | 1,113 | |||||||||||||||||||||
| Income tax expense | (190) | (281) | |||||||||||||||||||||
| Net income | 609 | 832 | |||||||||||||||||||||
| Less: Net income attributable to noncontrolling interests | (10) | (5) | |||||||||||||||||||||
| Net income attributable to Fox Corporation stockholders | $ | 599 | $ | 827 | |||||||||||||||||||
| EARNINGS PER SHARE DATA | |||||||||||||||||||||||
| Weighted average shares: | |||||||||||||||||||||||
| Basic | 447 | 461 | |||||||||||||||||||||
| Diluted | 455 | 464 | |||||||||||||||||||||
| Net income attributable to Fox Corporation stockholders per share: | |||||||||||||||||||||||
| Basic | $ | 1.34 | $ | 1.79 | |||||||||||||||||||
| Diluted | $ | 1.32 | $ | 1.78 |
The accompanying notes are an integral part of these Unaudited Consolidated Financial Statements.
FOX CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(IN MILLIONS)
| For the three months ended September 30, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| Net income | $ | 609 | $ | 832 | |||||||||||||||||||
| Other comprehensive income, net of tax: | |||||||||||||||||||||||
| Benefit plan adjustments and other | — | 4 | |||||||||||||||||||||
| Other comprehensive income, net of tax | — | 4 | |||||||||||||||||||||
| Comprehensive income | 609 | 836 | |||||||||||||||||||||
| Less: Net income attributable to noncontrolling interests(a) | (10) | (5) | |||||||||||||||||||||
| Comprehensive income attributable to Fox Corporation stockholders | $ | 599 | $ | 831 |
| (a) | Net income attributable to noncontrolling interests includes $1 million and $(2) million for the three months ended September 30, 2025 and 2024, respectively, relating to redeemable noncontrolling interests. |
The accompanying notes are an integral part of these Unaudited Consolidated Financial Statements.
FOX CORPORATION
CONSOLIDATED BALANCE SHEETS
(IN MILLIONS, EXCEPT SHARE AND PER SHARE AMOUNTS)
| As of September 30, 2025 | As of June 30, 2025 | ||||||||||
| (unaudited) | (audited) | ||||||||||
| ASSETS | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 4,368 | $ | 5,351 | |||||||
| Receivables, net | 2,810 | 2,472 | |||||||||
| Inventories, net | 509 | 432 | |||||||||
| Other | 282 | 174 | |||||||||
| Total current assets | 7,969 | 8,429 | |||||||||
| Non-current assets | |||||||||||
| Property, plant and equipment, net | 1,705 | 1,705 | |||||||||
| Intangible assets, net | 2,960 | 2,969 | |||||||||
| Goodwill | 3,637 | 3,639 | |||||||||
| Deferred tax assets | 2,631 | 2,721 | |||||||||
| Other non-current assets | 3,864 | 3,732 | |||||||||
| Total assets | $ | 22,766 | $ | 23,195 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable, accrued expenses and other current liabilities | $ | 2,461 | $ | 2,897 | |||||||
| Total current liabilities | 2,461 | 2,897 | |||||||||
| Non-current liabilities | |||||||||||
| Borrowings | 6,603 | 6,602 | |||||||||
| Other liabilities | 1,310 | 1,341 | |||||||||
| Redeemable noncontrolling interests | 81 | 288 | |||||||||
| Commitments and contingencies | |||||||||||
| Equity | |||||||||||
| Class A Common Stock(a) | 2 | 2 | |||||||||
| Class B Common Stock(b) | 2 | 2 | |||||||||
| Additional paid-in capital | 7,557 | 7,603 | |||||||||
| Retained earnings | 4,771 | 4,479 | |||||||||
| Accumulated other comprehensive loss | (124) | (124) | |||||||||
| Total Fox Corporation stockholders’ equity | 12,208 | 11,962 | |||||||||
| Noncontrolling interests | 103 | 105 | |||||||||
| Total equity | 12,311 | 12,067 | |||||||||
| Total liabilities and equity | $ | 22,766 | $ | 23,195 |
| (a) | Class A Common Stock, $0.01 par value per share, 2,000,000,000 shares authorized, 209,167,389 shares and 210,754,900 shares issued and outstanding at par as of September 30, 2025 and June 30, 2025, respectively. | ||||
| (b) | Class B Common Stock, $0.01 par value per share, 1,000,000,000 shares authorized, 235,581,025 shares issued and outstanding at par as of September 30, 2025 and June 30, 2025. |
The accompanying notes are an integral part of these Unaudited Consolidated Financial Statements.
FOX CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN MILLIONS)
| For the three months ended September 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| OPERATING ACTIVITIES | |||||||||||
| Net income | $ | 609 | $ | 832 | |||||||
| Adjustments to reconcile net income to net cash (used in) provided by operating activities | |||||||||||
| Depreciation and amortization | 98 | 91 | |||||||||
| Restructuring, impairment and other corporate matters | (8) | 26 | |||||||||
| Equity-based compensation | 28 | 34 | |||||||||
| Equity losses (earnings) of affiliates | 1 | (3) | |||||||||
| Non-operating other, net | 125 | (233) | |||||||||
| Deferred income taxes | 90 | 103 | |||||||||
| Change in operating assets and liabilities, net of acquisitions and dispositions | |||||||||||
| Receivables and other assets | (437) | (393) | |||||||||
| Inventories net of programming payable | (525) | (303) | |||||||||
| Accounts payable and accrued expenses | (132) | (110) | |||||||||
| Other changes, net | 21 | 114 | |||||||||
| Net cash (used in) provided by operating activities | (130) | 158 | |||||||||
| INVESTING ACTIVITIES | |||||||||||
| Property, plant and equipment | (104) | (64) | |||||||||
| Purchase of investments | (135) | — | |||||||||
| Other investing activities, net | (16) | (14) | |||||||||
| Net cash used in investing activities | (255) | (78) | |||||||||
| FINANCING ACTIVITIES | |||||||||||
| Repurchase of shares | (250) | (250) | |||||||||
| Dividends paid and distributions | (138) | (131) | |||||||||
| Purchase of noncontrolling interest | (208) | — | |||||||||
| Other financing activities, net | (2) | 34 | |||||||||
| Net cash used in financing activities | (598) | (347) | |||||||||
| Net decrease in cash and cash equivalents | (983) | (267) | |||||||||
| Cash and cash equivalents, beginning of year | 5,351 | 4,319 | |||||||||
| Cash and cash equivalents, end of period | $ | 4,368 | $ | 4,052 |
The accompanying notes are an integral part of these Unaudited Consolidated Financial Statements.
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, 2025 | 211 | $ | 2 | 235 | $ | 2 | $ | 7,603 | $ | 4,479 | $ | (124) | $ | 11,962 | $ | 105 | $ | 12,067 | |||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | 599 | — | 599 | 9 | 608 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends | — | — | — | — | — | (125) | — | (125) | — | (125) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Shares repurchased | (4) | — | — | — | (73) | (180) | — | (253) | — | (253) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other | 2 | — | — | — | 27 | (2) | — | 25 | (11) | 14 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Balance, September 30, 2025 | 209 | $ | 2 | 235 | $ | 2 | $ | 7,557 | $ | 4,771 | $ | (124) | $ | 12,208 | $ | 103 | $ | 12,311 | |||||||||||||||||||||||||||||||||||||||||
| Balance, June 30, 2024 | 226 | $ | 2 | 235 | $ | 2 | $ | 7,678 | $ | 3,139 | $ | (107) | $ | 10,714 | $ | 100 | $ | 10,814 | |||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | 827 | — | 827 | 7 | 834 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | — | — | 4 | 4 | — | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends | — | — | — | — | — | (124) | — | (124) | — | (124) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Shares repurchased | (6) | — | — | — | (107) | (146) | — | (253) | — | (253) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other | 2 | — | — | — | 70 | 38 | — | 108 | (7) | 101 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Balance, September 30, 2024 | 222 | $ | 2 | 235 | $ | 2 | $ | 7,641 | $ | 3,734 | $ | (103) | $ | 11,276 | $ | 100 | $ | 11,376 |
| (a) | Excludes Redeemable noncontrolling interests (See Note 11—Additional Financial Information under the heading “Redeemable Noncontrolling Interests”). |
The accompanying notes are an integral part of these Unaudited Consolidated Financial Statements.
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, 2026.
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, 2025 as filed with the Securities and Exchange Commission on August 6, 2025 (the “2025 Form 10-K”).
All significant intercompany transactions and accounts within the Company’s consolidated businesses have been eliminated. Investments in and advances to entities or joint ventures in which the Company has significant influence, but less than a controlling financial interest, are accounted for using the equity method. Significant influence generally exists when the Company owns an interest between 20% and 50%. Equity securities in which the Company has no significant influence (generally less than a 20% ownership interest) with readily determinable fair values are accounted for at fair value based on quoted market prices. Equity securities without readily determinable fair values are accounted for either at fair value or using the measurement alternative method which is at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. All gains and losses on investments in equity securities are recognized in the Unaudited Consolidated Statements of Operations.
The Company’s fiscal year ends on June 30 (“fiscal”) of each year. Certain fiscal 2025 amounts have been reclassified to conform to the fiscal 2026 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.
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, 2025 and 2024, the Company made no acquisitions.
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.
FOX CORPORATION
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3. INVENTORIES, NET
The Company’s inventories were comprised of the following:
| As of September 30, 2025 | As of June 30, 2025 | ||||||||||
| (in millions) | |||||||||||
| Licensed programming, including prepaid sports rights | $ | 775 | $ | 633 | |||||||
| Owned programming | 587 | 541 | |||||||||
| Total inventories, net | 1,362 | 1,174 | |||||||||
| Less: current portion of inventories, net | (509) | (432) | |||||||||
| Total non-current inventories, net | $ | 853 | $ | 742 | |||||||
| Owned programming | |||||||||||
| Released | $ | 302 | $ | 308 | |||||||
| In-process or other | 285 | 233 | |||||||||
| Total | $ | 587 | $ | 541 |
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, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Total amortization expense | $ | 1,144 | $ | 1,130 |
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, 2025 | ||||||||||||||||||||||||||
| Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||
| Investments in equity securities | $ | 1,118 | $ | 1,118 | (a) | $ | — | $ | — | |||||||||||||||||
| Redeemable noncontrolling interests | (53) | — | — | (53) | (b) | |||||||||||||||||||||
| Total | $ | 1,065 | $ | 1,118 | $ | — | $ | (53) |
FOX CORPORATION
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
| Fair value measurements | ||||||||||||||||||||||||||
| As of June 30, 2025 | ||||||||||||||||||||||||||
| Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||
| Investments in equity securities | $ | 1,249 | $ | 1,249 | (a) | $ | — | $ | — | |||||||||||||||||
| Redeemable noncontrolling interests | (261) | — | — | (261) | (b) | |||||||||||||||||||||
| Total | $ | 988 | $ | 1,249 | $ | — | $ | (261) |
| (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, 2025 | As of June 30, 2025 | ||||||||||
| (in millions) | |||||||||||
| Borrowings | |||||||||||
| Fair value | $ | 6,746 | $ | 6,625 | |||||||
| Carrying value | $ | 6,603 | $ | 6,602 |
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, 2025 and June 30, 2025, 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 2025 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
FOX CORPORATION
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
and a maturity date of June 2028 (See Note 9—Borrowings in the 2025 Form 10-K under the heading “Revolving Credit Agreement”). As of September 30, 2025, there were no borrowings outstanding under the revolving credit agreement.
NOTE 6. STOCKHOLDERS’ EQUITY
Stock Repurchase Program
The Company’s Board of Directors (the “Board”) previously authorized a stock repurchase program under which the Company can repurchase $7 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”). In August 2025, the Board authorized incremental stock repurchases of an additional $5 billion of Common Stock. With this increase, the Company’s total stock repurchase authorization is now $12 billion. The program has no time limit and may be modified, suspended or discontinued at any time.
The Company repurchased approximately 4 million shares of Class A Common Stock for approximately $250 million during the three months ended September 30, 2025.
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, 2025, the Company’s remaining stock repurchase authorization was approximately $5.15 billion. Subsequent to September 30, 2025, the Company repurchased approximately 0.8 million shares of Class A Common Stock for approximately $50 million.
Subsequent to September 30, 2025, the Company announced that it expects to enter into a $1.5 billion accelerated share repurchase transaction commencing on October 31, 2025 to repurchase $700 million of Class A Common Stock and $800 million of Class B Common Stock under the Company’s stock repurchase program. The Company anticipates completing the transaction during the second half of fiscal 2026.
Stockholders Agreement
On September 8, 2025, the Company entered into a new stockholders agreement (the “New Stockholders Agreement”) with LGC Holdco, LLC (“LGC Holdco”) and certain Murdoch family trusts (collectively, the “LGC Family Trusts”). In connection with this, the stockholders agreement between the Company and the Murdoch Family Trust (See Note 11—Stockholders’ Equity in the 2025 Form 10-K) was terminated. The New Stockholders Agreement limits the LGC Family Trusts and LGC Holdco from owning, collectively with certain Murdoch family members (the “Murdoch Individuals”), more than 44% of the outstanding voting power of the shares of Class B Common Stock and requires the LGC Family Trusts and LGC Holdco to forfeit votes to the extent necessary to ensure that the Murdoch Individuals, the LGC Family Trusts and LGC Holdco collectively do not exceed 44% of the outstanding voting power of the shares of Class B Common Stock, except where a Murdoch Individual votes their own shares differently from the others on any matter. In addition, the New Stockholders Agreement provides the Company with a right of first refusal with respect to any underwritten public offering of the shares of Class B Common Stock held by the LGC Family Trusts or LGC Holdco to anyone other than the Murdoch Individuals and their affiliates, subject to certain exceptions, and provides the LGC Family Trusts and LGC Holdco with certain customary registration rights.
FOX CORPORATION
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
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, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| Cash dividend per share | $ | 0.28 | $ | 0.27 |
The Company declared a semi-annual dividend of $0.28 per share on both the Class A Common Stock and the Class B Common Stock during the three months ended September 30, 2025, which was paid on September 24, 2025.
NOTE 7. EQUITY-BASED COMPENSATION
The Company has equity-based compensation plans, including the Fox Corporation 2019 Shareholder Alignment Plan (See Note 12—Equity-Based Compensation in the 2025 Form 10-K).
The following table summarizes the Company’s equity-based compensation:
| For the three months ended September 30, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Equity-based compensation | $ | 28 | $ | 34 | |||||||||||||||||||
| Intrinsic value of all settled equity-based awards | $ | 156 | $ | 78 | |||||||||||||||||||
| Tax benefit on settled equity-based awards | $ | 26 | $ | 15 |
The Company’s equity-based awards are settled in Class A Common Stock. As of September 30, 2025, the Company’s total estimated compensation cost, not yet recognized, related to non-vested equity awards held by the Company’s employees was approximately $190 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, 2025 and 2024, approximately 1.6 million and 1.5 million restricted stock units (“RSUs”) vested and approximately 1.1 million and 1.7 million RSUs were granted, respectively. These RSUs generally vest in equal annual installments over a three-year period subject to participants’ continued employment with the Company.
Performance-Based Stock Options
During the three months ended September 30, 2025 and 2024, approximately 1.3 million and 1.6 million performance-based stock options were exercised and approximately 2.4 million and 3.4 million were granted, respectively, which will vest in full at the end of a three-year performance period if the market condition is met and have a term of seven years thereafter.
FOX CORPORATION
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
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, 2025 and June 30, 2025 were approximately $37 billion and $35 billion, respectively. The increase from June 30, 2025 was primarily due to the renewal of technology agreements.
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 connection with the separation of 21CF and the Company in 2019 and 21CF becoming a wholly-owned subsidiary of The Walt Disney Company (“Disney”) (the “Transaction”), 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 $30 million as of June 30, 2025 and September 30, 2025.
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.
FOX CORPORATION
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
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 filed motions for summary judgment in the Smartmatic case on April 30, 2025, and opposition and reply briefs were filed on June 18, 2025 and July 28, 2025, respectively. A hearing on the motions is scheduled for December 2, 2025. At this time, a trial in the Smartmatic lawsuit is not expected to commence until early 2026 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.
On April 11, 2023 and April 20, 2023, stockholders of the Company filed derivative lawsuits in the Delaware Court of Chancery (the “Chancery Court”) against certain directors of the Company, which the Chancery Court subsequently consolidated into one matter captioned In re Fox Corporation Deriv. Litig., C.A. No. 2023-0418 (Del.Ch.). Two additional derivative lawsuits were subsequently filed by the Company’s stockholders in the Chancery Court on September 12, 2023 against certain directors and officers of the Company and are part of the consolidated lawsuit. Each of the lawsuits names the Company as a nominal defendant. 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. 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. In connection with the Transaction, each member of the 21CF consolidated group, which includes 21CF, the Company (prior to the Transaction) and 21CF’s other subsidiaries, is jointly and severally liable for the U.S. federal income and, in certain jurisdictions, state tax liabilities of each other member of the consolidated group. Consequently, the Company could be liable in the event any such liability is incurred, and not discharged, by any other member of the 21CF consolidated group. The tax matters agreement entered into in connection with the Transaction requires 21CF and/or Disney to indemnify the Company for any such liability. Disputes or assessments could arise during current or future audits by the IRS in amounts that the Company cannot quantify.
NOTE 9. PENSION AND OTHER POSTRETIREMENT BENEFITS
The Company participates in and/or sponsors various pension, savings and postretirement benefit plans. Pension plans and postretirement benefit plans are closed to new participants with the exception of a small group covered by collective bargaining agreements. The net periodic benefit cost was $8 million and $9 million for the three months ended September 30, 2025 and 2024, respectively.
FOX CORPORATION
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
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 (“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 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 launched in August 2025, 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.
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. Effective July 1, 2025, the Company no longer removes the impact of amortization of cable distribution investments when calculating Segment EBITDA. Prior periods were not restated as the impact of the change is immaterial to the calculation. 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.
We use the term "MVPDs" to refer collectively to traditional MVPDs and virtual MVPDs.
FOX CORPORATION
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
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, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Cable Network Programming | $ | 1,662 | $ | 1,597 | |||||||||||||||||||
| Television | 2,050 | 1,953 | |||||||||||||||||||||
| Corporate and Other | 89 | 65 | |||||||||||||||||||||
| Eliminations | (63) | (51) | |||||||||||||||||||||
| Total revenues | $ | 3,738 | $ | 3,564 | |||||||||||||||||||
| Segment EBITDA | |||||||||||||||||||||||
| Cable Network Programming | $ | 800 | $ | 748 | |||||||||||||||||||
| Television | 399 | 372 | |||||||||||||||||||||
| Corporate and Other | (134) | (72) | |||||||||||||||||||||
| Amortization of cable distribution investments | — | (4) | |||||||||||||||||||||
| Depreciation and amortization | (98) | (91) | |||||||||||||||||||||
| Restructuring, impairment and other corporate matters | 8 | (26) | |||||||||||||||||||||
| Equity (losses) earnings of affiliates | (1) | 3 | |||||||||||||||||||||
| Interest expense, net | (50) | (50) | |||||||||||||||||||||
| Non-operating other, net | (125) | 233 | |||||||||||||||||||||
| Income before income tax expense | 799 | 1,113 | |||||||||||||||||||||
| Income tax expense | (190) | (281) | |||||||||||||||||||||
| Net income | 609 | 832 | |||||||||||||||||||||
| Less: Net income attributable to noncontrolling interests | (10) | (5) | |||||||||||||||||||||
| Net income attributable to Fox Corporation stockholders | $ | 599 | $ | 827 |
| For the three months ended September 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| (in millions) | |||||||||||
| Reconciliation of Revenues to Segment EBITDA | |||||||||||
| Cable Network Programming | |||||||||||
| Revenues | $ | 1,662 | $ | 1,597 | |||||||
| Operating expenses | (703) | (702) | |||||||||
| Selling, general and administrative | (159) | (151) | |||||||||
| Amortization of cable distribution investments | — | 4 | |||||||||
| Segment EBITDA | $ | 800 | $ | 748 | |||||||
| Television | |||||||||||
| Revenues | $ | 2,050 | $ | 1,953 | |||||||
| Operating expenses | (1,385) | (1,333) | |||||||||
| Selling, general and administrative | (266) | (248) | |||||||||
| Segment EBITDA | $ | 399 | $ | 372 |
FOX CORPORATION
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
| For the three months ended September 30, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Revenues by Segment by Component | |||||||||||||||||||||||
| Cable Network Programming | |||||||||||||||||||||||
| Distribution(a) | $ | 1,090 | $ | 1,062 | |||||||||||||||||||
| Advertising | 345 | 321 | |||||||||||||||||||||
| Content and other | 227 | 214 | |||||||||||||||||||||
| Total Cable Network Programming revenues | 1,662 | 1,597 | |||||||||||||||||||||
| Television | |||||||||||||||||||||||
| Advertising | 1,067 | 1,008 | |||||||||||||||||||||
| Distribution(a) | 821 | 806 | |||||||||||||||||||||
| Content and other | 162 | 139 | |||||||||||||||||||||
| Total Television revenues | 2,050 | 1,953 | |||||||||||||||||||||
| Corporate and Other | 89 | 65 | |||||||||||||||||||||
| Eliminations | (63) | (51) | |||||||||||||||||||||
| Total revenues | $ | 3,738 | $ | 3,564 |
| (a) | The Company generates distribution revenue from agreements with MVPDs for cable network programming and retransmission fees for the broadcast of the Company’s owned and operated television stations and from subscription fees for the Company’s direct-to-consumer streaming services. In addition, the Company generates distribution revenue from agreements with independently owned television stations that are affiliated with the FOX Network. |
| For the three months ended September 30, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Depreciation and amortization | |||||||||||||||||||||||
| Cable Network Programming | $ | 26 | $ | 20 | |||||||||||||||||||
| Television | 30 | 29 | |||||||||||||||||||||
| Corporate and Other | 42 | 42 | |||||||||||||||||||||
| Total depreciation and amortization | $ | 98 | $ | 91 |
| For the three months ended September 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| (in millions) | |||||||||||
| Capital expenditures | |||||||||||
| Cable Network Programming | $ | 28 | $ | 23 | |||||||
| Television | 32 | 11 | |||||||||
| Corporate and Other | 44 | 30 | |||||||||
| Total capital expenditures | $ | 104 | $ | 64 |
FOX CORPORATION
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
| As of September 30, 2025 | As of June 30, 2025 | ||||||||||
| (in millions) | |||||||||||
| Assets | |||||||||||
| Cable Network Programming | $ | 3,052 | $ | 2,895 | |||||||
| Television | 8,378 | 7,924 | |||||||||
| Corporate and Other | 9,701 | 10,755 | |||||||||
| Investments | 1,635 | 1,621 | |||||||||
| Total assets | $ | 22,766 | $ | 23,195 |
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, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Restructuring charges | $ | (2) | $ | (8) | |||||||||||||||||||
| Other corporate matters | |||||||||||||||||||||||
| Legal settlement costs | (6) | (7) | |||||||||||||||||||||
| U.K. Newspaper Matters Indemnity(a) | (1) | (6) | |||||||||||||||||||||
| Other | 17 | (5) | |||||||||||||||||||||
| Total restructuring, impairment and other corporate matters | $ | 8 | $ | (26) |
| (a) | See Note 8—Commitments and Contingencies under the heading "U.K. Newspaper Matters Indemnity." |
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, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Interest expense | $ | (100) | $ | (102) | |||||||||||||||||||
| Interest income | 50 | 52 | |||||||||||||||||||||
| Total interest expense, net | $ | (50) | $ | (50) |
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, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Net (losses) gains on investments in equity securities(a) | $ | (122) | $ | 236 | |||||||||||||||||||
| Other | (3) | (3) | |||||||||||||||||||||
| Total non-operating other, net | $ | (125) | $ | 233 |
| (a) | Net (losses) gains on investments in equity securities includes the (losses) gains 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, 2025 | As of June 30, 2025 | ||||||||||
| (in millions) | |||||||||||
| Investments(a) | $ | 1,635 | $ | 1,621 | |||||||
| Inventories, net | 853 | 742 | |||||||||
| Operating lease assets | 801 | 814 | |||||||||
| Grantor Trust assets | 252 | 246 | |||||||||
| Other | 323 | 309 | |||||||||
| Total other non-current assets | $ | 3,864 | $ | 3,732 |
| (a) | Includes investments accounted for at fair value on a recurring basis of $1.1 billion and $1.2 billion as of September 30, 2025 and June 30, 2025, respectively (See Note 4—Fair Value). |
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, 2025 | As of June 30, 2025 | ||||||||||
| (in millions) | |||||||||||
| Accrued expenses | $ | 916 | $ | 1,081 | |||||||
| Programming payable | 768 | 1,070 | |||||||||
| Deferred revenue | 378 | 299 | |||||||||
| Operating lease liabilities | 41 | 41 | |||||||||
| Other current liabilities | 358 | 406 | |||||||||
| Total accounts payable, accrued expenses and other current liabilities | $ | 2,461 | $ | 2,897 |
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, 2025 | As of June 30, 2025 | ||||||||||
| (in millions) | |||||||||||
| Non-current operating lease liabilities | $ | 808 | $ | 822 | |||||||
| Accrued non-current pension/postretirement liabilities | 278 | 276 | |||||||||
| Other non-current liabilities | 224 | 243 | |||||||||
| Total other liabilities | $ | 1,310 | $ | 1,341 |
Redeemable Noncontrolling Interests
The redeemable noncontrolling interests recorded are put rights held by minority shareholders in Credible Labs Inc. (“Credible”), an entertainment production company and a digital media company. The put right held by the Credible minority interest shareholder was exercised in December 2024 and was settled during the three months ended September 30, 2025. The put right held by the entertainment production company’s minority shareholder will become exercisable in fiscal 2027. 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, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Beginning of period | $ | (288) | $ | (242) | |||||||||||||||||||
| Redemption of noncontrolling interests | 208 | — | |||||||||||||||||||||
| Net (income) loss | (1) | 2 | |||||||||||||||||||||
| Accretion and redemption value adjustments | — | 38 | |||||||||||||||||||||
| End of period | $ | (81) | $ | (202) |
Future Performance Obligations
As of September 30, 2025, approximately $7.2 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, | |||||||||||
| 2025 | 2024 | ||||||||||
| (in millions) | |||||||||||
| Supplemental cash flow information | |||||||||||
| Cash paid for interest | $ | (135) | $ | (133) | |||||||
| Cash paid for income taxes | $ | (71) | $ | (21) |
Next: Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS