Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

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Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

NEWS CORPORATION

INDEX TO FINANCIAL STATEMENTS


			Page
Management’s Report on Internal Control Over Financial Reporting			56
Reports of Independent Registered Public Accounting Firm (PCAOB ID:42)			57
Consolidated Statements of Operations for the F iscal Y ears E nded June 30, 202 5 , 202 4 a nd 2 023			60
Consolidated Statements of Comprehensive Income (Loss) for the F iscal Y ears E nded June 30, 202 5 , 202 4 and 20 23			61
Consolidated Balance Sheets as of June 30, 202 5 and 20 24			62
Consolidated Statements of Cash Flows for the F iscal Y ears E nded June 30, 202 5 , 202 4 and 202 3			63
Consolidated Statements of Equity for the F iscal Y ears E nded June 30, 202 5 , 202 4 and 202 3			64
Notes to the Consolidated Financial Statements			65

Management’s Report on Internal Control Over Financial Reporting for June 30, 2025

Management of News Corporation is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended. The Company’s internal control over financial reporting includes those policies and procedures that:

pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of News Corporation;
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America;
provide reasonable assurance that receipts and expenditures of News Corporation are being made only in accordance with authorizations of management and directors of News Corporation; and
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of assets that could have a material effect on the consolidated financial statements.

News Corporation’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America. Because of its inherent limitations, internal control over financial reporting, no matter how well designed, may not prevent or detect misstatements. Also, the assessment of the effectiveness of internal control over financial reporting was made as of a specific date. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management, including the Company’s principal executive officer and principal financial officer, conducted an assessment of the effectiveness of News Corporation’s internal control over financial reporting as of June 30, 2025, based on criteria for effective internal control over financial reporting described in the 2013 “Internal Control—Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment and those criteria, management determined that, as of June 30, 2025, News Corporation maintained effective internal control over financial reporting.

Management reviewed the results of its assessment with the Audit Committee of News Corporation’s Board of Directors.

Ernst & Young LLP, the independent registered public accounting firm who audited and reported on the Consolidated Financial Statements of News Corporation included in the Annual Report on Form 10-K for the fiscal year ended June 30, 2025, has audited the Company’s internal control over financial reporting. Their report appears on the following page.

August 6, 2025

Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of News Corporation

Opinion on Internal Control Over Financial Reporting

We have audited News Corporation’s internal control over financial reporting as of June 30, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, News Corporation (the Company) maintained, in all material respects, effective internal control over financial reporting as of June 30, 2025, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of June 30, 2025 and 2024, the related consolidated statements of operations, comprehensive income (loss), equity and cash flows for each of the three years in the period ended June 30, 2025, and the related notes and our report dated August 6, 2025 expressed an unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young LLP

New York, New York

August 6, 2025

Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of News Corporation

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of News Corporation (the Company) as of June 30, 2025 and 2024, the related consolidated statements of operations, comprehensive income (loss), equity and cash flows for each of the three years in the period ended June 30, 2025, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at June 30, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended June 30, 2025, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of June 30, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated August 6, 2025 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the account or disclosure to which it relates.


						Valuation of Goodwill

Description of the Matter						As of June 30, 2025, the Company’s goodwill was $4,373 million. As disclosed in Note 8 to the consolidated financial statements, goodwill is tested for impairment annually in the fourth quarter or earlier if events occur or circumstances change that would more likely than not reduce the fair values below their carrying amounts. Auditing the Company’s annual goodwill impairment test was complex due to the significant judgment in estimating the fair value of a reporting unit when a quantitative assessment of fair value is performed. In particular, the fair value estimates were sensitive to changes in significant assumptions such as the discount rate, projected revenue growth rate, and earnings before interest, taxes, depreciation, and amortization (“EBITDA”) margin. All of these assumptions are affected by expected future market or economic conditions.



How We Addressed the Matter in Our Audit						We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s goodwill quantitative impairment assessment process. For example, we tested controls over management’s review of the significant assumptions and methodologies used in estimating the fair values of the reporting units. We also tested management’s controls to validate that the data used in the valuation models was complete and accurate. To test the estimated fair value of a reporting unit when a quantitative impairment assessment was performed, our audit procedures included, among others, assessing methodologies and testing the completeness and accuracy of the underlying data used by the Company. We performed sensitivity analyses over the significant assumptions identified to evaluate the change in the fair value of a reporting unit resulting from changes in the assumptions. Our testing procedures over the significant assumptions included, among others, comparing projected revenue growth rates and EBITDA margins to historical trends, current industry and economic trends, while also considering changes in the Company’s business model. We also involved our internal valuation specialists to assist in evaluating the Company’s models, valuation methodology, and significant assumptions used in the fair value estimates. In addition, we tested management’s reconciliation of the fair value of the reporting units to the market capitalization of the Company.

/s/ Ernst & Young LLP

We have served as the Company’s auditor since 2012.

New York, New York

August 6, 2025

NEWS CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per share amounts)


		For the fiscal years ended June 30,
	Notes	2025		2024		2023
Revenues:
Circulation and subscription		$	3,009	$	2,909	$	2,818
Advertising		1,367		1,400		1,473
Consumer		2,047		2,000		1,899
Real estate		1,410		1,284		1,189
Other		619		659		633
Total Revenues	4	8,452		8,252		8,012
Operating expenses		(3,736)		(3,814)		(3,911)
Selling, general and administrative		(3,301)		(3,197)		(3,012)
Depreciation and amortization		(459)		(440)		(415)
Impairment and restructuring charges	5, 7, 8	(132)		(133)		(121)
Equity losses of affiliates	6	(15)		(6)		(127)
Interest income (expense), net		3		(18)		(49)
Other, net	21	111		(59)		3
Income before income tax expense from continuing operations		923		585		380
Income tax expense from continuing operations	19	(275)		(206)		(152)
Net income from continuing operations		648		379		228
Net income (loss) from discontinued operations, net of tax		692		(25)		(41)
Net income		1,340		354		187
Net income attributable to noncontrolling interests from continuing operations		(168)		(110)		(65)
Net loss attributable to noncontrolling interests from discontinued operations		8		22		27
Net income attributable to News Corporation stockholders		$	1,180	$	266	$	149

Net income (loss) attributable to News Corporation stockholders per share:	14
Basic:
Continuing operations		$	0.85	$	0.47	$	0.28
Discontinued operations		1.23		—		(0.02)
		$	2.08	$	0.47	$	0.26
Diluted:
Continuing operations		$	0.84	$	0.47	$	0.28
Discontinued operations		1.23		(0.01)		(0.02)
		$	2.07	$	0.46	$	0.26

The accompanying notes are an integral part of these audited consolidated financial statements.

NEWS CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In millions)


	For the fiscal years ended June 30,
	2025		2024		2023
Net income	$	1,340	$	354	$	187
Other comprehensive (loss) income:
Foreign currency translation adjustments(a)	(294)		(13)		—
Net change in the fair value of cash flow hedges(b)	(13)		(11)		12
Benefit plan adjustments, net(c)	(18)		19		(7)
Other comprehensive (loss) income	(325)		(5)		5
Comprehensive income	1,015		349		192
Net income attributable to noncontrolling interests	(160)		(88)		(38)
Other comprehensive loss attributable to noncontrolling interests(d)	33		1		18
Comprehensive income attributable to News Corporation stockholders	$	888	$	262	$	172

(a)Primarily relates to the disposition of Foxtel for the fiscal year ended June 30, 2025.

(b)Net of income tax expense (benefit) of $(4) million, $(4) million and $4 million for the fiscal years ended June 30, 2025, 2024 and 2023, respectively.

(c)Net of income tax expense (benefit) of $(7) million, $6 million and $(2) million for the fiscal years ended June 30, 2025, 2024 and 2023, respectively.

(d)Primarily consists of foreign currency translation adjustments.

The accompanying notes are an integral part of these audited consolidated financial statements.

NEWS CORPORATION

CONSOLIDATED BALANCE SHEETS

(In millions, except share and per share amounts)


		As of June 30,
	Notes	2025		2024
Assets:
Current assets:
Cash and cash equivalents		$	2,403	$	1,872
Receivables, net	2	1,562		1,420
Inventory, net		327		266
Other current assets		519		474
Current assets of discontinued operations		—		340
Total current assets		4,811		4,372
Non-current assets:
Investments	6	1,016		429
Property, plant and equipment, net	7	1,331		1,272
Operating lease right-of-use assets		789		805
Intangible assets, net	8	1,930		1,948
Goodwill	8	4,373		4,336
Deferred income tax assets, net	19	254		332
Other non-current assets	21	1,000		957
Non-current assets of discontinued operations		—		2,233
Total assets		$	15,504	$	16,684
Liabilities and Equity:
Current liabilities:
Accounts payable		$	335	$	254
Accrued expenses		1,036		986
Deferred revenue	4	498		483
Current borrowings	9	25		9
Other current liabilities	21	714		772
Current liabilities of discontinued operations		—		551
Total current liabilities		2,608		3,055
Non-current liabilities:
Borrowings	9	1,937		2,093
Retirement benefit obligations	17	117		125
Deferred income tax liabilities, net	19	57		21
Operating lease liabilities		904		912
Other non-current liabilities		492		472
Non-current liabilities of discontinued operations		—		995
Commitments and contingencies	16
Class A common stock(a)		4		4
Class B common stock(b)		2		2
Additional paid-in capital		11,058		11,254
Accumulated deficit		(747)		(1,889)
Accumulated other comprehensive loss	21	(1,543)		(1,251)
Total News Corporation stockholders’ equity		8,774		8,120
Noncontrolling interests		615		891
Total equity		9,389		9,011
Total liabilities and equity		$	15,504	$	16,684

(a)Class A common stock, $0.01 par value per share (“Class A Common Stock”), 1,500,000,000 shares authorized, 376,718,696 and 378,670,671 shares issued and outstanding, net of 27,368,413 treasury shares at par, at June 30, 2025 and June 30, 2024, respectively.

(b)Class B common stock, $0.01 par value per share (“Class B Common Stock”), 750,000,000 shares authorized, 188,666,990 and 190,423,250 shares issued and outstanding, net of 78,430,424 treasury shares at par, at June 30, 2025 and June 30, 2024, respectively.

The accompanying notes are an integral part of these audited consolidated financial statements.

NEWS CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)


		For the fiscal years ended June 30,
	Notes	2025		2024		2023
Operating activities:
Net income		$	1,340	$	354	$	187
Net (income) loss from discontinued operations, net of tax		(692)		25		41
Net income from continuing operations		648		379		228
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities from continuing operations:
Depreciation and amortization		459		440		415
Operating lease expense		74		72		83
Equity losses of affiliates	6	15		6		127
Impairment charges	7,8	12		44		2
Deferred income taxes	19	83		31		12
Other, net		(107)		64		6
Change in operating assets and liabilities, net of acquisitions:
Receivables and other assets		(96)		(85)		(181)
Inventories, net		(46)		27		5
Accounts payable and other liabilities		(64)		(81)		80
Net cash provided by operating activities from continuing operations		978		897		777
Investing activities:
Capital expenditures		(407)		(357)		(347)
Proceeds from sales of property, plant and equipment		—		—		37
Acquisitions, net of cash acquired		(96)		(38)		(17)

Purchases of investments in equity affiliates and other		(154)		(96)		(124)
Proceeds from sales of investments in equity affiliates and other		274		81		50
Other, net		(23)		—		(22)
Net cash used in investing activities from continuing operations		(406)		(410)		(423)
Financing activities:
Borrowings	9	61		278		—
Repayment of borrowings	9	(203)		(409)		(65)
Repurchase of shares	12	(150)		(117)		(243)
Dividends paid		(185)		(172)		(174)
Other, net		(47)		(63)		(43)
Net cash used in financing activities from continuing operations		(524)		(483)		(525)
Cash flows from discontinued operations:
Net cash provided by operating activities from discontinued operations		156		201		314
Net cash provided by (used in) investing activities from discontinued operations		253		(114)		(151)
Net cash (used in) provided by financing activities from discontinued operations		(39)		42		24
Net cash provided by discontinued operations		370		129		187

Net change in cash and cash equivalents, including discontinued operations		418		133		16
Effect of exchange rate changes on cash and cash equivalents, including discontinued operations		25		(6)		(5)
Cash and cash equivalents, including discontinued operations, beginning of year		1,960		1,833		1,822
Cash and cash equivalents, including discontinued operations, end of year		2,403		1,960		1,833
Less: Cash and cash equivalents at end of period of discontinued operations		—		(88)		(72)
Cash and cash equivalents		$	2,403	$	1,872	$	1,761

The accompanying notes are an integral part of these audited consolidated financial statements.

NEWS CORPORATION

CONSOLIDATED STATEMENTS OF EQUITY

(In millions)


	Class A Common Stock			Class B Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss			Total News Corporation Equity		Noncontrolling Interests			Total Equity
	Shares	Amount		Shares	Amount
Balance, June 30, 2022	388	$	4	197	$	2	$	11,779	$	(2,293)	$	(1,270)		$	8,222	$	921		$	9,143

Net income	—	—		—	—		—		149		—			149		38			187
Other comprehensive income (loss)	—	—		—	—		—		—		23			23		(18)			5
Dividends	—	—		—	—		(116)		—		—			(116)		(58)			(174)
Share repurchases	(10)	—		(5)	—		(240)		—		—			(240)		—			(240)
Other	2	—		—	—		26		—		—			26		(2)			24
Balance, June 30, 2023	380	4		192	2		11,449		(2,144)		(1,247)			8,064		881			8,945

Net income	—	—		—	—		—		266		—			266		88			354
Other comprehensive loss	—	—		—	—		—		—		(4)			(4)		(1)			(5)
Dividends	—	—		—	—		(114)		—		—			(114)		(58)			(172)
Share repurchases	(3)	—		(2)	—		(106)		(11)		—			(117)		—			(117)
Other	2	—		—	—		25		—		—			25		(19)			6
Balance, June 30, 2024	379	4		190	2		11,254		(1,889)		(1,251)			8,120		891			9,011

Net income	—	—		—	—		—		1,180		—			1,180		160			1,340
Other comprehensive loss	—	—		—	—		—		—		(292)		(a)	(292)		(33)			(325)
Dividends	—	—		—	—		(114)		—		—			(114)		(71)			(185)
Share repurchases	(4)	—		(1)	—		(113)		(37)		—			(150)		—			(150)
Other	2	—		—	—		31		(1)		—			30		(332)		(a)	(302)
Balance, June 30, 2025	377	$	4	189	$	2	$	11,058	$	(747)	$	(1,543)		$	8,774	$	615		$	9,389

(a)Primarily relates to the disposition of Foxtel.

The accompanying notes are an integral part of these audited consolidated financial statements.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

News Corporation (together with its subsidiaries, “News Corporation,” “News Corp,” the “Company,” “we” or “us”) is a global diversified media and information services company comprised of businesses across a range of media, including: information services and news, digital real estate services and book publishing.

As described below, on April 2, 2025, the Company completed the sale of the Foxtel Group (“Foxtel”). The assets and liabilities, results of operations and cash flows of Foxtel have been classified as discontinued operations for all periods presented. Furthermore, upon reclassification of Foxtel’s results, the Subscription Video Services segment ceased to be a reportable segment, and the residual results of the segment were aggregated into the News Media segment. Unless indicated otherwise, the information in the notes to the Consolidated Financial Statements relates to the Company’s continuing operations. See Note 3—Discontinued Operations.

Basis of Presentation

The accompanying consolidated financial statements of the Company, which are referred to herein as the “Consolidated Financial Statements,” have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). The Company’s financial statements as of June 30, 2025 and 2024 and for the three fiscal years ended June 30, 2025 are presented on a consolidated basis.

The consolidated statements of operations are referred to herein as the “Statements of Operations.” The consolidated balance sheets are referred to herein as the “Balance Sheets.” The consolidated statements of cash flows are referred to herein as the “Statements of Cash Flows.”

The Company maintains a 52-53 week fiscal year ending on the Sunday closest to June 30 in each year. Fiscal 2025, fiscal 2024 and fiscal 2023 each included 52 weeks. All references to the fiscal years ended June 30, 2025, 2024 and 2023 relate to the fiscal years ended June 29, 2025, June 30, 2024 and July 2, 2023, respectively. For convenience purposes, the Company continues to date its consolidated financial statements as of June 30.

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The Consolidated Financial Statements include the accounts of all majority-owned and controlled subsidiaries. All significant intercompany accounts and transactions except those pertaining to Foxtel that are expected to continue after the sale have been eliminated in consolidation, including the intercompany portion of transactions with equity method investees.

In addition, the Company evaluates its relationships with other entities to identify whether they are variable interest entities (“VIEs”) as defined by ASC 810-10, Consolidation (“ASC 810-10”), and whether the Company is the primary beneficiary. In determining whether the Company is the primary beneficiary of a VIE, it assesses whether it has the power to direct matters that most significantly impact the activities of the VIE and has the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company would consolidate any investments in which it was determined to be the primary beneficiary of a VIE.

Changes in the Company’s ownership interest in a consolidated subsidiary where a controlling financial interest is retained are accounted for as capital transactions. When the Company ceases to have a controlling interest in a consolidated subsidiary the Company will recognize a gain or loss in the Statements of Operations upon deconsolidation.

Use of Estimates

The preparation of the Company’s Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts that are reported in the Consolidated Financial Statements and accompanying disclosures. Actual results could differ from those estimates.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Cash and Cash Equivalents

Cash and cash equivalents consist of cash on hand and other investments that are readily convertible into cash with original maturities of three months or less. The Company’s cash and cash equivalents balance as of June 30, 2025 and 2024 also includes $280 million and $136 million, respectively, which is not readily accessible by the Company as it is held by REA Group Limited (“REA Group”), a majority owned but separately listed public company. REA Group must declare a dividend in order for the Company to have access to its share of REA Group’s cash balance. The Company classifies cash as restricted when the cash is unavailable for use in its general operations. The Company had no restricted cash as of June 30, 2025 and 2024.

Concentration of Credit Risk

Cash and cash equivalents are maintained with multiple 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.

Receivables, Net

Receivables are presented net of allowances. Allowance for doubtful accounts is calculated by pooling receivables with similar credit risks such as the level of delinquency, types of products or services and geographical locations and reflects the Company’s expected credit losses based on historical experience as well as current and expected economic conditions.

Receivables, net consist of:


	As of June 30,
	2025		2024
	(in millions)
Receivables	$	1,618	$	1,478
Less: allowances	(56)		(58)
Receivables, net	$	1,562	$	1,420

The Company’s receivables did not represent significant concentrations of credit risk as of June 30, 2025 or June 30, 2024 due to the wide variety of customers, markets and geographic areas to which the Company’s products and services are sold.

Inventory, Net

Inventory primarily consists of books and newsprint. Inventory for books and newsprint are valued at the lower of cost or net realizable value. Cost for inventory is determined by the weighted average cost method. The Company records a reserve for excess and obsolete inventory based upon a calculation using the historical usage rates, sales patterns of its products and specifically identified obsolete inventory.

Investments

Investments in and advances to equity investments or joint ventures in which the Company has significant influence, but is not the primary beneficiary, and has less than a controlling voting interest, are accounted for using the equity method. Significant influence is generally presumed to exist when the Company owns an interest between 20% and 50% or when the Company has the ability to exercise significant influence. Under the equity method of accounting, the Company includes its investments and amounts due to and from such investments in its Balance Sheets. The Company’s Statements of Operations include the Company’s share of the investees’ earnings (losses) and the Company’s Statements of Cash Flows include all cash received from or paid to the investee.

The difference between the Company’s investment and its share of the fair value of the underlying net tangible assets of the investee upon acquisition is first allocated to either finite-lived intangibles, indefinite-lived intangibles or other assets and liabilities and the balance is attributed to goodwill. The Company follows ASC 350, Intangibles—Goodwill and Other (“ASC 350”) which requires that equity method finite-lived intangibles be amortized over their estimated useful life. Such amortization is reflected in Equity (losses) earnings of affiliates in the Statements of Operations. Indefinite-lived intangibles and goodwill are not amortized.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Investments in which the Company is presumed not to have significant influence (generally less than a 20% ownership interest) or does not have the ability to exercise significant influence are accounted for in accordance with ASC 825-10, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASC 825-10”). Gains and losses on equity securities with readily determinable fair market values are recorded in Other, net in the Statement of Operations based on the closing price at the end of each reporting period. Equity securities without readily determinable fair market values are valued at cost, less any impairment, plus or minus changes in fair value resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer.

Equity method investments and investments in equity and other securities for which the measurement alternative has been selected are regularly reviewed to determine whether a significant event or change in circumstances has occurred that may impact the fair value of each investment. If the fair value of the investment has dropped below the carrying amount, management considers several factors when determining whether an other-than-temporary decline in market value has occurred, including the length of time and extent to which the market value has been below cost, the financial condition and near-term prospects of the issuer, the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value and other factors influencing the fair market value, such as general market conditions. See Note 6—Investments.

Financial Instruments and Derivatives

The carrying value of the Company’s financial instruments, including cash and cash equivalents, approximate fair value. The fair value of financial instruments is generally determined by reference to market values resulting from trading on a national securities exchange, trading in an over-the-counter market which are considered to be Level 2 measurements or unobservable inputs that require the Company to use its own best estimates about market participant assumptions which are considered to be Level 3 measurements. See Note 11—Financial Instruments and Fair Value Measurements.

ASC 815, Derivatives and Hedging (“ASC 815”) requires derivative instruments to be recorded on the balance sheet at fair value as either an asset or a liability. ASC 815 also requires that changes in the fair value of recorded derivatives be recognized currently in the Statements of Operations unless specific hedge accounting criteria are met.

For derivatives that will be accounted for as hedging instruments, the Company formally designates and documents, at inception, the financial instrument as a hedge of a specific underlying exposure, the risk management objective, the strategy for undertaking the hedge transaction and the effectiveness of the hedge. On an ongoing basis, the Company assesses whether the financial instruments used in hedging transactions continue to be highly effective.

The Company determines the fair values of its derivatives using standard valuation models. The notional amounts of the derivative financial instruments do not necessarily represent amounts exchanged by the parties and, therefore, are not a direct measure of the Company’s exposure to the financial risks. The amounts exchanged are calculated by reference to the notional amounts and by other terms of the derivatives, such as interest rates. The Company does not view the fair values of its derivatives in isolation, but rather in relation to the fair values or cash flows of the underlying hedged transactions or other exposures. All of the Company’s derivatives are over-the-counter instruments with liquid markets. As the Company does not intend to settle any derivatives at their net positions, derivative instruments are presented gross in the Balance Sheets and do not reflect the impact of master netting agreements which allow the Company to net settle positive and negative positions with the same counterparty, if applicable. See Note 11—Financial Instruments and Fair Value Measurements.

The Company monitors its positions with, and the credit quality of, the financial institutions which are counterparties to its financial instruments. The Company is exposed to credit loss in the event of nonperformance by the counterparties to the agreements. As of June 30, 2025, the Company did not anticipate nonperformance by any of the counterparties.

Cash Flow Hedges

Cash flow hedges are used to mitigate the Company’s exposure to variability in cash flows that is attributable to particular risk associated with a highly probable forecasted transaction or a recognized asset or liability which could affect income or expenses. The gain or loss on the hedging instrument is recognized directly in Accumulated other comprehensive loss. Amounts recorded in Accumulated other comprehensive loss are recognized in the Statements of Operations when the hedged forecasted transaction impacts income or if the forecasted transaction is no longer expected to occur.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Property, Plant and Equipment

Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over an estimated useful life which ranges from 2 to 50 years. Leasehold improvements are amortized using the straight-line method over the shorter of their useful lives or the life of the lease. Costs associated with the repair and maintenance of property, plant and equipment are expensed as incurred. Changes in circumstances, such as technological advances or changes to the Company’s business model or capital strategy, could result in the actual useful lives differing from the Company’s estimates. In those cases where the Company determines that the useful life of buildings and equipment should be changed, the Company would depreciate the asset over its revised remaining useful life, thereby increasing or decreasing depreciation expense. Refer to Note 7—Property, Plant and Equipment for further detail.

ASC 360, Property, Plant, and Equipment and ASC 350 require the Company to periodically review the carrying amounts of its long-lived assets, including property, plant and equipment and finite-lived intangible assets, to determine whether current events or circumstances indicate that such carrying amounts may not be recoverable. If the carrying amount of the asset is greater than the expected undiscounted cash flows to be generated by such asset, an impairment adjustment is recognized if the carrying value of such asset exceeds its fair value. The Company generally measures fair value by considering sale prices for similar assets or by discounting estimated future cash flows using an appropriate discount rate. Considerable management judgment is necessary to estimate the fair value of assets; accordingly, actual results could vary significantly from such estimates. Assets to be disposed of are carried at the lower of their financial statement carrying amount or fair value, less their costs to sell.

Capitalized Software

In accordance with ASC 350-40, Internal-use Software, the Company capitalizes certain costs incurred in connection with developing or obtaining internal-use software. Costs incurred in the preliminary project stage are expensed. All direct costs incurred to develop internal-use software during the development stage are capitalized and amortized using the straight-line method over the estimated useful life, generally ranging from 2 to 15 years. Costs such as maintenance and training are expensed as incurred. Research and development costs are also expensed as incurred.

In accordance with ASC 350-24, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract, the Company evaluates upfront costs, including implementation, set-up or other costs (collectively, “implementation costs”), for hosting arrangements under the internal-use software framework. Costs related to preliminary project activities and post implementation activities are expensed as incurred, whereas costs incurred in the development stage are generally capitalized as prepaid assets within Other Current Assets in the Balance Sheet. Capitalized implementation costs are amortized on a straight-line basis over the expected term of the hosting arrangement, which includes consideration of the non-cancellable contractual term and reasonably certain renewals. Amortization of capitalized implementation costs is included in the same line item in the Statements of Operations as the expense for fees for the associated hosting arrangement. Refer to Note 7—Property, Plant and Equipment for further detail.

Leases

Leases are classified as either finance leases or operating leases. A lease is classified as a finance lease if any one of the following criteria are met: the lease transfers ownership of the asset by the end of the lease term, the lease contains an option to purchase the asset that is reasonably certain to be exercised, the lease term is for a major part of the remaining useful life of the asset or the present value of the lease payments equals or exceeds substantially all of the fair value of the asset. A lease is classified as an operating lease if it does not meet any one of these criteria. The Company’s operating leases primarily consist of real estate, including office space, warehouse space and printing facilities. The Company does not have any finance leases.

For operating leases, minimum lease payments, including minimum scheduled rent increases, are recognized as rent expense on a straight-line basis over the applicable lease terms. For finance leases, lease expense consists of the depreciation of the right-of-use asset, as well as interest expense recognized on the lease liability based on the effective interest method using the rate implicit in the lease or the Company’s incremental borrowing rate. A lease's term begins on the date that the Company obtains possession of the leased premises and goes through the expected lease termination date. See Note 10—Leases.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Royalty Advances to Authors

Royalty advances are initially capitalized and subsequently expensed as related revenues are earned or when the Company determines future recovery is not probable. The Company has a long history of providing authors with royalty advances, and it tracks each advance earned with respect to the sale of the related publication. Historically, the longer the unearned portion of the advance remains outstanding, the less likely it is that the Company will recover the advance through the sale of the publication. The Company applies this historical experience to its existing outstanding royalty advances to estimate the likelihood of recovery and a provision is established to write-off the unearned advance, usually between 12 and 24 months after initial publication of the first format. Additionally, the Company reviews its portfolio of royalty advances for unpublished titles to determine if individual royalty advances are not recoverable for discrete reasons, such as the death of an author prior to completion of a title or titles, a Company decision to not publish a title, poor market demand or other relevant factors that could impact recoverability. Based on this information, the portion of any advance that the Company believes is not recoverable is expensed.

Business Combinations

The purchase price of each acquisition is attributed to the assets acquired and liabilities assumed based on their fair values at the date of acquisition, with certain exceptions in accordance with GAAP. Determining the fair value of assets acquired and liabilities assumed involves the use of significant judgments, including judgments about appropriate discount rates, attrition rates, royalty rates and future cash flows. The excess purchase price over the fair value of net tangible and identifiable intangible assets acquired is recorded as goodwill and is assigned to the reporting unit that is expected to benefit from the business combination as of the acquisition date.

Goodwill and Intangible Assets

The Company has goodwill and intangible assets, including trademarks and tradenames, newspaper mastheads, publishing imprints, radio broadcast licenses, publishing rights and customer relationships. Goodwill is recorded as the difference between the cost of acquiring entities or businesses and amounts assigned to their tangible and identifiable intangible net assets. In accordance with ASC 350, the Company’s goodwill and indefinite-lived intangible assets are tested for impairment annually during the fourth quarter or earlier if events occur or circumstances change that would more likely than not reduce the fair values below their carrying amounts. Intangible assets with finite lives are amortized over their estimated useful lives. Refer to the Property, Plant and Equipment section above for discussion of impairment considerations for finite-lived intangible assets.

Goodwill is reviewed for impairment at a reporting unit level. Reporting units are determined based on an evaluation of the Company’s operating segments and the components making up those operating segments. For purposes of its goodwill impairment review, the Company has identified Dow Jones, REA Group, Move, Inc. (“Move”), HarperCollins, the Australian newspapers, the U.K. newspapers, Wireless Group plc (“Wireless Group”), the New York Post, Australian News Channel (“ANC”) and Storyful Limited (“Storyful”) as its reporting units.

The Company also performs impairment reviews on its indefinite-lived intangible assets, including trademarks and tradenames, newspaper mastheads, publishing imprints and radio broadcast licenses. Certain of the Company’s newspaper mastheads and book publishing imprints are reviewed on an aggregated basis in accordance with ASC 350. Trademarks and tradenames and radio broadcast licenses are reviewed individually.

In accordance with ASC 350, in assessing goodwill or indefinite-lived intangible assets for impairment, the Company has the option to first perform a qualitative assessment to determine whether events or circumstances exist that lead to a determination that it is more likely than not that the fair value of a reporting unit or an indefinite-lived intangible asset is less than its carrying amount. If the Company determines that it is not more likely than not that the fair value is less than its carrying amount, the Company is not required to perform any additional tests for impairment. However, if the Company concludes otherwise or elects not to perform the qualitative assessment, then it is required to perform a quantitative analysis. For reporting units, the calculated fair value of the reporting unit is compared with its carrying amount, including goodwill, and for indefinite-lived intangible assets, the calculated fair value is compared to its carrying value. If through a quantitative analysis the Company determines the fair value of a reporting unit or indefinite-lived intangible asset exceeds its carrying amount, the reporting unit’s goodwill or the indefinite-lived intangible asset, as applicable, is considered not to be impaired. If the Company concludes that the fair value of the reporting unit or the indefinite-lived intangible asset is less than its carrying value, an impairment will be recognized for the amount by which the carrying amount exceeds its fair value.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The methods used to estimate the fair value measurements of the Company’s reporting units and indefinite-lived intangible assets include those based on the income approach (including the discounted cash flow and relief-from-royalty methods) and those based on the market approach (primarily the guideline public company method). The resulting fair value measurements of the assets are considered to be Level 3 measurements. Determining fair value requires the exercise of significant judgments, including judgments about appropriate discount rates, long-term growth rates, relevant comparable company earnings multiples and the amount and timing of expected future cash flows. The cash flows employed in the analyses are based on the Company’s estimated outlook and various growth rates are assumed for years beyond the long-term business plan period. Discount rate assumptions are based on an assessment of the risk inherent in the future cash flows of the respective reporting units. In assessing the reasonableness of its determined fair values, the Company evaluates its results against other value indicators, such as comparable public company trading values.

When a business within a reporting unit is disposed of, goodwill is allocated to the disposed business using the relative fair value method. See Note 8—Goodwill and Other Intangible Assets.

Borrowings

Loans and borrowings are initially recognized at the fair value of the consideration received. Transaction costs are recorded within current borrowings (current portion) and non-current borrowings (long-term portion) in the Consolidated Balance Sheets. They are subsequently recognized at amortized cost using the effective interest method. Debt may be considered extinguished when it has been modified and the terms of the new debt instruments and old debt instruments are substantially different, as that term is defined in the debt modification guidance in ASC 470-50, Debt—Modifications and Extinguishments (“ASC 470-50”). The Company classifies the current portion of long term debt as non-current liabilities on the Balance Sheets when it has the intent and ability to refinance the obligation on a long-term basis, in accordance with ASC 470, Debt. See Note 9—Borrowings.

Retirement Benefit Obligations

The Company provides defined benefit pension, postretirement healthcare and defined contribution benefits to the Company’s eligible employees and retirees. The Company accounts for its defined benefit pension, postretirement healthcare and defined contribution plans in accordance with ASC 715, Compensation—Retirement Benefits (“ASC 715”). The expense recognized by the Company is determined using certain assumptions, including the discount rate, expected long-term rate of return of pension assets and mortality rates, among others. The Company recognizes the funded status of its defined benefit plans (other than multiemployer plans) as either an asset or liability in the Balance Sheets and recognizes changes in the funded status in the year in which the changes occur through Accumulated other comprehensive loss in the Balance Sheets. The service cost component of net periodic benefit costs is recognized in Selling, general and administrative expenses while the non-service cost components of net periodic benefit costs are recognized in Other, net in the Statements of Operations. See Note 17—Retirement Benefit Obligations.

Fair Value Measurements

The Company has various financial instruments that are measured at fair value on a recurring basis, including certain marketable securities and derivatives. The Company also applies the provisions of fair value measurement to various non-recurring measurements for the Company’s non-financial assets and liabilities. With the exception of investments measured using the net asset value per share practical expedient in accordance with ASC 820, Fair Value Measurements (“ASC 820”), or ASC 825-10 described above, the Company measures assets and liabilities in accordance with ASC 820, using inputs from the following three levels of the fair value hierarchy: (i) inputs that are quoted prices in active markets for identical assets or liabilities (“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) unobservable inputs that require the entity to use its own best estimates about market participant assumptions (“Level 3”). See Note 11—Financial Instruments and Fair Value Measurements.

The Company’s assets measured at fair value on a nonrecurring basis include investments, long-lived assets, indefinite-lived intangible assets and goodwill. The Company reviews the carrying amounts of such assets whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable or at least annually during the fourth quarter for indefinite-lived intangible assets and goodwill. Any resulting asset impairment would require that the asset be recorded at its fair value. The resulting fair value measurements of the assets are considered to be Level 3 measurements.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Treasury Stock

The Company accounts for treasury stock using the cost method. Upon the retirement of treasury stock, the Company allocates the value of treasury shares between common stock, additional paid-in capital and accumulated deficit. All shares repurchased to date under the 2021 Repurchase Program have been retired. See Note 12—Stockholders' Equity.

Revenue Recognition

Circulation and Subscription Revenues

Circulation and subscription revenues include subscription and single-copy sales of digital and print news products and information services subscription revenues. Circulation revenues are based on the number of copies of the printed news products (through home-delivery subscriptions and single-copy sales) and/or digital subscriptions sold, and the associated rates charged to the customers. Single-copy revenue is recognized at a point in time on the date the news products are sold to distribution outlets, net of provisions for related returns.

Revenues from home delivery and digital subscriptions are recognized over the subscription term as the news products and/or digital subscriptions are delivered. Information services subscription revenues are recognized over time as the subscriptions are delivered. Payments from subscribers are generally due at the beginning of the month and are recorded as deferred revenue. Such amounts are recognized as revenue as the associated subscription is delivered.

Advertising Revenues

Revenue from print advertising is recognized at the point in time the print advertisement is published. Broadcast advertising revenue is recognized at the point in time that the broadcast advertisement is aired. For impressions-based digital advertising, revenues are recognized as impressions are delivered over the term of the arrangement, while revenue from non-impressions-based digital advertising is recognized at the point in time that the advertisements are displayed. Such amounts are recognized net of agency commissions and provisions for estimated sales incentives, including rebates, rate adjustments or discounts.

The Company enters into transactions that involve the exchange of advertising, in part, for other products and services, which are recorded at the estimated fair value of the product or service received. If the fair value of the product or service received cannot be reliably determined, the value is measured indirectly by reference to the standalone selling price of the advertising provided by the Company. Revenue from nonmonetary transactions is recognized when services are performed, and expenses are recognized when products are received or services are incurred.

Billings to clients and payments received in advance of performance of services or delivery of products are recorded as deferred revenue until the services are performed or the product is delivered. Payment for advertising services is typically due shortly after the Company has satisfied its performance obligation to print, broadcast or place the advertising specified in the contract. For advertising campaigns that extend beyond one month, the Company generally invoices the advertiser in arrears based on the number of advertisements that were printed, broadcast or placed, or impressions delivered during the month.

Consumer Revenues

Revenue from the sale of physical books and e-books or downloadable and streaming audiobooks (“digital formats”) is recognized at the point in time of physical receipt by the customer or electronic delivery. Such amounts are recorded net of provisions for returns and payments to customers. If the Company prohibits its customer from selling a physical book until a future date, it recognizes revenue when that restriction lapses.

Revenue is recognized net of any amounts billed to customers for taxes remitted to government authorities. Payments for the sale of physical books and digital formats are generally collected within one to three months of sale or delivery and are based on the number of physical books or digital formats sold.

Real Estate Revenues

Real estate revenues are derived from the sale of digital real estate listing and lead generation products, as well as services to agents, brokers and developers. Revenue is typically recognized over the contractual period during which the services are provided. Payments are generally due monthly over the subscription term.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The Company also provides certain leads to agents and brokers at no upfront cost with the Company receiving a portion of the agent sales commission at the time a home transaction is closed. As the amount of revenues is based on several factors outside of the Company’s control including home prices, revenue is recognized when a real estate transaction is closed.

Other Revenues

Other revenues are recognized when the related services are performed or the product has been delivered.

Contracts with Multiple Performance Obligations

The Company has certain revenue contracts which contain multiple performance obligations such as print and digital advertising bundles and digital and print newspaper subscription bundles. Revenues derived from sales contracts that contain multiple products and services are allocated based on the relative standalone selling price of each performance obligation to be delivered. Standalone selling price is typically determined based on prices charged to customers for the same or similar goods or services on a standalone basis. If observable standalone prices are not available, the Company estimates standalone selling price by maximizing the use of observable inputs to most accurately reflect the price of each individual performance obligation. Revenue is recognized as each performance obligation included in the contract is satisfied.

Identification of a Customer and Gross versus Net Revenue Recognition

In the normal course of business, the Company acts as or uses an intermediary or agent in executing transactions with third parties. When the intermediary or agent is determined to be the Company’s customer, the Company records revenue based on the amount it expects to receive from the agent or intermediary.

In other circumstances, the determination of whether revenue should be reported on a gross or net basis is based on an assessment of whether the Company is acting as the principal or an agent in the transaction. If the Company is acting as a principal in a transaction, the Company reports revenue on a gross basis. If the Company is acting as an agent in a transaction, the Company reports revenue on a net basis. The determination of whether the Company is acting as a principal or an agent in a transaction involves judgment and is based on an evaluation of the terms of the arrangement. The Company serves as the principal in transactions in which it controls the goods or services prior to being transferred to the ultimate customer.

Sales Returns

Certain of the Company’s products, such as books and newspapers, are sold with the right of return. The Company records the estimated impact of such returns as a reduction of revenue. To estimate product sales that will be returned and the related products that are expected to be placed back into inventory, the Company analyzes historical returns, current economic trends, changes in customer demand and acceptance of the Company’s products. Based on this information, the Company reserves a percentage of each dollar of product sales that provide the customer with the right of return.

Advertising Expenses

The Company expenses advertising costs as incurred in accordance with ASC 720-35, Other Expenses—Advertising Cost. Advertising and promotional expenses recognized totaled $505 million, $491 million and $459 million for the fiscal years ended June 30, 2025, 2024 and 2023, respectively.

Shipping and Handling

Costs incurred for shipping and handling are reflected in Operating expenses in the Statements of Operations.

Translation of Foreign Currencies

The financial results and position of foreign subsidiaries and affiliates are translated into U.S. dollars using the current rate method, whereby operating results are converted at the average rate of exchange for the period and assets and liabilities are converted at the closing rates on the period end date. The resulting translation adjustments are accumulated as a component of Accumulated other comprehensive loss. Gains and losses from foreign currency transactions are generally included in income for the period.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Income Taxes

The Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”). ASC 740 requires an asset and liability approach for financial accounting and reporting for income taxes. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Valuation allowances are established where management determines that it is more likely than not that some portion or all of a deferred tax asset will not be realized. The Company recognizes interest and penalty charges related to unrecognized tax benefits as income tax expense. See Note 19—Income Taxes.

Equity-Based Compensation

Equity-based awards are accounted for in accordance with ASC 718, Compensation—Stock Compensation (“ASC 718”). ASC 718 requires that the cost resulting from all share-based payment transactions be recognized in the Consolidated Financial Statements. ASC 718 establishes fair value as the measurement objective in accounting for share-based payment arrangements and requires all companies to apply a fair-value-based measurement method in accounting for generally all share-based payment transactions with employees. See Note 13—Equity-Based Compensation.

Earnings (Loss) per Share

Basic earnings (loss) per share for Class A Common Stock and Class B Common Stock is calculated by dividing Net income (loss) attributable to News Corporation stockholders by the weighted average number of shares of Class A Common Stock and Class B Common Stock outstanding during the period. Diluted earnings (loss) per share for Class A Common Stock and Class B Common Stock is calculated similarly, except that the calculation includes the dilutive effect of the assumed issuance of shares issuable under the Company’s equity-based compensation plans. See Note 14—Earnings (Loss) Per Share.

Recently Issued Accounting Pronouncements

Adopted

In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). The amendments in ASU 2023-07 expand public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of other segment items and expanded interim disclosures that align with those required annually, among other provisions. The Company adopted ASU 2023-07 on a retrospective basis as of June 30, 2025. Refer to Note 20—Segment Information for further discussion.

Issued

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). The amendments in ASU 2023-09 require disaggregated disclosure of material categories in effective tax rate reconciliations as well as disclosure of income taxes paid by specific domestic and foreign jurisdictions. Additionally, the amendments eliminate certain disclosures currently required under Topic 740. ASU 2023-09 is effective for the Company’s annual reporting periods beginning on July 1, 2025, with early adoption permitted. The Company is currently evaluating the impact ASU 2023-09 will have on its consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”). The amendments in ASU 2024-03 require public entities to disclose specified information about certain costs and expenses. ASU 2024-03 is effective for the Company’s annual reporting periods beginning on July 1, 2027 and interim reporting periods beginning on July 1, 2028, with early adoption permitted. The Company is currently evaluating the impact ASU 2024-03 will have on its consolidated financial statements.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

In July 2025, the FASB issued ASU 2025-05*, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets* (“ASU 2025-05”). The amendments in ASU 2025-05 provide entities with a practical expedient to simplify the estimation of expected credit losses on current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606, Revenue from Contracts with Customers (“ASC 606”) by allowing the assumption that current conditions as of the balance sheet date will not change during the remaining life of the asset. ASU 2025-05 is effective for the Company for its annual reporting periods beginning July 1, 2026, and interim reporting periods within those annual reporting periods, with early adoption permitted. The Company is currently evaluating the impact ASU 2025-05 will have on its consolidated financial statements.

NOTE 3. DISCONTINUED OPERATIONS

Foxtel

During the second quarter of fiscal 2025, the Company entered into a definitive agreement to sell Foxtel to DAZN Group Limited (“DAZN”), a global sports streaming platform, and the transaction closed on April 2, 2025. Under the terms of the agreement, all amounts outstanding under Foxtel’s shareholder loans with News Corp (approximately $380 million) were repaid in full in cash at closing. Foxtel’s third-party borrowings transferred with the business, and News Corp received a minority equity interest in DAZN of approximately 6%, recorded at $648 million, and holds one seat on its Board of Directors. See Note 6—Investments. Telstra Group Ltd also sold its minority interest in Foxtel. The Company recorded a pre-tax gain of $716 million within Net income (loss) from discontinued operations, net of tax, in the fiscal year ended June 30, 2025 as a result of the sale.

The assets and liabilities, results of operations and cash flows of Foxtel have been classified as discontinued operations for all periods presented in accordance with ASC 205-20, Discontinued Operations (“ASC 205-20”), as the disposition reflects a strategic shift that has, and will have, a major effect on the Company’s operations and financial results. Upon reclassification of Foxtel’s results, the Company determined that the Subscription Video Services segment was no longer a reportable segment, and the residual results of the segment were aggregated into the News Media segment. News Media segment results have been recast to reflect this change for all periods presented. See Note 20—Segment Information.

In all periods presented, transactions between Foxtel and the continuing operations of the Company that are not expected to continue after the sale are eliminated, whereas those expected to continue are no longer eliminated.

The following table summarizes the results of operations from the discontinued operations of Foxtel for the fiscal years ended June 30, 2025, 2024 and 2023:


	For the fiscal years ended June 30,
	2025		2024		2023
	(in millions)






Revenues	$	1,393	$	1,908	$	1,928
Operating expenses	(940)		(1,285)		(1,259)
Selling, general and administrative	(236)		(325)		(338)
Depreciation and amortization(a)	(156)		(294)		(299)
Impairment and restructuring charges	(2)		(5)		(29)

Interest expense, net	(51)		(67)		(51)
Other, net(b)	721		29		(2)
Income (loss) before income tax (expense) benefit	729		(39)		(50)
Income tax (expense) benefit	(37)		14		9
Net income (loss)	692		(25)		(41)
Net loss attributable to noncontrolling interests	8		22		27
Net income (loss) attributable to News Corporation stockholders	$	700	$	(3)	$	(14)

(a)Depreciation and amortization is not recognized for long-lived assets subsequent to their classification as held for sale.

(b)For fiscal 2025, Other, net primarily consists of the $716 million pre-tax gain on the sale of Foxtel.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The following table summarizes the major classes of assets and liabilities of Foxtel classified as discontinued operations as of June 30, 2024:


	As of June 30, 2024
	(in millions)
Assets:
Current assets:
Cash and cash equivalents	$	88
Receivables, net	83
Inventory, net	30
Other current assets	139
Total current assets	340
Non-current assets:
Investments	1
Property, plant and equipment, net	642
Operating lease right-of-use assets	153
Intangible assets, net	374
Goodwill	850

Other non-current assets	213
Total non-current assets	$	2,233
Total assets	$	2,573

Liabilities:
Current liabilities:
Accounts payable	$	60
Accrued expenses	245
Deferred revenue	68
Current borrowings	45
Other current liabilities	133
Total current liabilities	551
Non-current liabilities:
Borrowings	762
Deferred income tax liabilities, net	98
Operating lease liabilities	115
Other non-current liabilities	20
Total non-current liabilities	$	995
Total liabilities	$	1,546

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 4. REVENUES

Disaggregated Revenue

The following tables present the Company’s disaggregated revenues by type and segment for the fiscal years ended June 30, 2025, 2024 and 2023:


	For the fiscal year ended June 30, 2025
	Dow Jones		Digital Real Estate Services		Book Publishing		News Media		Other		Total Revenues
	(in millions)
Revenues:
Circulation and subscription	$	1,884	$	7	$	—	$	1,118	$	—	$	3,009
Advertising	396		151		—		820		—		1,367
Consumer	—		—		2,047		—		—		2,047
Real estate	—		1,410		—		—		—		1,410
Other	51		234		102		232		—		619
Total Revenues	$	2,331	$	1,802	$	2,149	$	2,170	$	—	$	8,452


	For the fiscal year ended June 30, 2024
	Dow Jones		Digital Real Estate Services		Book Publishing		News Media		Other		Total Revenues
	(in millions)
Revenues:
Circulation and subscription	$	1,771	$	10	$	—	$	1,128	$	—	$	2,909
Advertising	405		136		—		859		—		1,400
Consumer	—		—		2,000		—		—		2,000
Real estate	—		1,284		—		—		—		1,284
Other	55		228		93		283		—		659
Total Revenues	$	2,231	$	1,658	$	2,093	$	2,270	$	—	$	8,252


	For the fiscal year ended June 30, 2023
	Dow Jones		Digital Real Estate Services		Book Publishing		News Media		Other		Total Revenues
	(in millions)
Revenues:
Circulation and subscription	$	1,689	$	12	$	—	$	1,117	$	—	$	2,818
Advertising	413		140		—		920		—		1,473
Consumer	—		—		1,899		—		—		1,899
Real estate	—		1,189		—		—		—		1,189
Other	51		198		80		304		—		633
Total Revenues	$	2,153	$	1,539	$	1,979	$	2,341	$	—	$	8,012

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Contract Liabilities and Assets

The Company’s deferred revenue balance primarily relates to amounts received from customers for subscriptions paid in advance of the services being provided. The following table presents changes in the deferred revenue balance for the fiscal years ended June 30, 2025 and 2024:


	For the fiscal years ended June 30,
	2025		2024
	(in millions)
Beginning balance	$	483	$	554
Deferral of revenue	3,198		2,953
Recognition of deferred revenue(a)	(3,197)		(3,019)
Other	14		(5)
Ending balance	$	498	$	483

(a)For the fiscal years ended June 30, 2025 and 2024, the Company recognized approximately $451 million and $504 million, respectively, of revenue which was included in the opening deferred revenue balance.

The Company had contract assets of $53 million and $7 million as of June 30, 2025 and 2024, respectively.

Other Revenue Disclosures

The Company typically expenses sales commissions to obtain a customer contract as incurred as the amortization period is twelve months or less. These costs are recorded within Selling, general and administrative in the Statements of Operations. The Company also does not capitalize significant financing components when the transfer of the good or service is paid within twelve months or less, or the consideration is received within twelve months or less of the transfer of the good or service.

During the fiscal year ended June 30, 2025, the Company recognized approximately $434 million in revenues related to performance obligations that were satisfied or partially satisfied in a prior reporting period. The remaining transaction price related to unsatisfied performance obligations as of June 30, 2025 was approximately $1,138 million, of which approximately $442 million is expected to be recognized during fiscal 2026, $295 million is expected to be recognized in fiscal 2027 and $125 million is expected to be recognized in fiscal 2028, with the remainder to be recognized thereafter. These amounts do not include (i) contracts with an expected duration of one year or less, (ii) contracts for which variable consideration is determined based on the customer’s subsequent sale or usage and (iii) variable consideration allocated to performance obligations accounted for under the series guidance that meets the allocation objective under ASC 606.

NOTE 5. RESTRUCTURING PROGRAMS

The Company recorded restructuring charges of $120 million, $89 million and $119 million for the fiscal years ended June 30, 2025, 2024 and 2023, respectively.

Fiscal 2025 Restructuring

The restructuring charges in fiscal 2025 primarily related to employee termination benefits.

Fiscal 2024 Restructuring

The restructuring charges in fiscal 2024 primarily related to employee termination benefits, including those recorded in the first half of the fiscal year resulting from actions taken by the Company’s businesses in response to the headcount reductions announced in February 2023.

Fiscal 2023 Restructuring

The restructuring charges in fiscal 2023 primarily related to employee termination benefits resulting from actions taken by the Company’s businesses in response to the headcount reductions announced in February 2023.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Changes in restructuring program liabilities were as follows:


	One-time employee termination benefits		Other costs		Total
	(in millions)
Balance, June 30, 2022	$	23	$	41	$	64
Additions	110		9		119
Payments	(86)		(9)		(95)
Other	1		—		1
Balance, June 30, 2023	$	48	$	41	$	89
Additions	83		6		89
Payments	(106)		(12)		(118)
Other	(1)		—		(1)
Balance, June 30, 2024	$	24	$	35	$	59
Additions	100		20		120
Payments	(75)		(9)		(84)
Other	(7)		—		(7)
Balance, June 30, 2025	$	42	$	46	$	88

As of June 30, 2025 and June 30, 2024 restructuring liabilities of approximately $46 million and $33 million, respectively, were included in the Balance Sheet in Other current liabilities and $42 million and $26 million, respectively, were included in Other non-current liabilities.

NOTE 6. INVESTMENTS

The Company’s investments were comprised of the following:


	Ownership Percentage as of June 30, 2025	As of June 30,
	2025	2024
		(in millions)
Equity method investments(a)	various	$	85	$	215
Equity and other securities(b)	various	931		214
Total Investments		$	1,016	$	429

(a)Equity method investments include News UK’s joint venture with DMG Media. In December 2024, REA Group’s interest in PropertyGuru was acquired by a third party. A gain of approximately $87 million was recognized on the sale and recorded in Other, net. See Note 21—Additional Financial Information.

(b)Equity and other securities are primarily comprised of the Company’s interest in DAZN, certain investments in China, Nexxen International, Ltd., REA Group’s investment in Athena Home Loans and RipJar Ltd., an artificial intelligence-focused data analytics company. During fiscal 2025, the Company received an equity interest in DAZN of approximately 6%, recorded at $648 million, in connection with the sale of Foxtel. Refer to Note 3—Discontinued Operations for further discussion.

The Company has equity securities with quoted prices in active markets as well as equity securities without readily determinable fair market values. Equity securities without readily determinable fair market values are valued at cost, less any impairment, plus or minus changes in fair value resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The components comprising total gains and losses on equity securities are set forth below:


	For the fiscal years ended June 30,
	2025		2024		2023
	(in millions)
Total gains (losses) recognized on equity securities	$	21	$	(13)	$	(9)
Less: Net gains (losses) recognized on equity securities sold or impaired	—		—		2
Unrealized gains (losses) recognized on equity securities held at end of period	$	21	$	(13)	$	(11)

Equity Losses of Affiliates

The Company’s share of the losses of its equity affiliates was $15 million, $6 million and $127 million for the fiscal years ended June 30, 2025, 2024 and 2023, respectively. In fiscal 2023, the losses primarily reflect the non-cash write-down of REA Group’s investment in PropertyGuru of approximately $81 million and losses from an investment in an Australian sports wagering venture.

NOTE 7. PROPERTY, PLANT AND EQUIPMENT


	Original Useful Lives	As of June 30,
	2025	2024
		(in millions)
Property, plant and equipment:
Land		$	123	$	121
Buildings and leaseholds	3 to 50 years	1,511		1,479
Machinery and equipment	2 to 20 years	752		782
Capitalized software	2 to 15 years	1,753		1,715
Construction in progress		113		86
Total Property, plant and equipment		4,252		4,183
Accumulated depreciation and amortization(a)		(2,921)		(2,911)
Total Property, plant and equipment, net		$	1,331	$	1,272

(a)Includes accumulated amortization of capitalized software of approximately $1,149 million and $1,175 million as of June 30, 2025 and 2024, respectively.

Depreciation and amortization related to property, plant and equipment was $361 million, $341 million and $309 million for the fiscal years ended June 30, 2025, 2024 and 2023, respectively. This includes amortization of capitalized software of $281 million, $252 million and $215 million for the fiscal years ended June 30, 2025, 2024 and 2023, respectively.

Fixed Asset Impairments

During the fiscal year ended June 30, 2024, the Company recognized non-cash impairment charges of $22 million at the News Media segment related to the write-down of fixed assets associated with the combination of News UK’s printing operations with those of DMG Media.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 8. GOODWILL AND OTHER INTANGIBLE ASSETS

The net carrying values of the Company’s intangible assets for the fiscal years ended June 30, 2025 and June 30, 2024 were as follows:


	As of June 30,
	2025		2024
	(in millions)
Intangible Assets Not Subject to Amortization
Trademarks and tradenames	$	276	$	267
Newspaper mastheads	281		281

Imprints	250		222
Radio broadcast licenses	123		113
Total intangible assets not subject to amortization	930		883
Intangible Assets Subject to Amortization
Publishing rights	267		285
Customer relationships	708		750
Other	25		30
Total intangible assets subject to amortization, net	1,000		1,065
Total Intangible assets, net	$	1,930	$	1,948

Information related to amortizable intangible assets and related accumulated amortization for the fiscal years ended June 30, 2025 and June 30, 2024 is summarized below:


	Useful lives		As of June 30,
		2025									2024
		Gross			Accumulated Amortization			Net			Gross			Accumulated Amortization			Net
			(in millions)
Publishing rights(a)	3 to 30 years		$	677		$	410		$	267		$	658		$	373		$	285
Customer relationships(b)	3 to 25 years		1,373			665			708			1,357			607			750
Other(c)	3 to 15 years		125			100			25			125			95			30
Total			$	2,175		$	1,175		$	1,000		$	2,140		$	1,075		$	1,065

(a)The useful lives of publishing rights are primarily based on the weighted-average remaining contractual terms of the underlying publishing contracts and the Company’s estimates of the period within those terms that the asset is expected to generate a majority of its future cash flows.

(b)The useful lives of customer relationships are estimated by applying historical attrition rates and determining the resulting period over which a majority of the accumulated undiscounted cash flows related to the customer relationships are expected to be generated.

(c)The useful lives of other intangible assets represent the periods over which these intangible assets are expected to contribute directly or indirectly to the Company’s future cash flows.

Amortization expense related to amortizable intangible assets was $98 million, $99 million and $106 million for the fiscal years ended June 30, 2025, 2024 and 2023, respectively.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Based on the current amount of amortizable intangible assets, the estimated amortization expense for each of the succeeding five fiscal years is as follows:


	As of June 30, 2025
	(in millions)
Fiscal 2026	$	97
Fiscal 2027	92
Fiscal 2028	88
Fiscal 2029	83
Fiscal 2030	79

The changes in the carrying value of goodwill, by segment, are as follows:


	Dow Jones		Digital Real Estate Services		Book Publishing		News Media		Total Goodwill
	(in millions)
Balance, June 30, 2023	$	2,195	$	1,542	$	413	$	141	$	4,291
Acquisitions	—		60		—		—		60
Impairments	—		—		—		(9)		(9)

Foreign exchange and other	—		2		(7)		(1)		(6)
Balance, June 30, 2024	$	2,195	$	1,604	$	406	$	131	$	4,336
Acquisitions	44		(8)		16		—		52


Foreign exchange and other	—		(21)		2		4		(15)
Balance, June 30, 2025	$	2,239	$	1,575	$	424	$	135	$	4,373

The carrying amount of goodwill as of June 30, 2025 and 2024 both reflected accumulated impairments of $3.9 billion principally relating to impairments at the Dow Jones and News Media segments that were recognized prior to the Company’s separation of its businesses from Twenty-First Century Fox, Inc. (“21st Century Fox”) on June 28, 2013 (the “Separation”).

Annual Impairment Assessments

In accordance with ASC 350, the Company’s goodwill and indefinite-lived intangible assets are tested for impairment annually in the fourth quarter or earlier if events occur or circumstances change that would more likely than not reduce the fair values below their carrying amounts. See Note 2—Summary of Significant Accounting Policies.

Fiscal 2025

The performance of the Company’s annual impairment analysis resulted in no impairments of indefinite-lived intangible assets or goodwill in fiscal 2025. The Company utilized the qualitative assessment for certain of its reporting units and indefinite-lived intangible assets. The qualitative tests performed considered various factors since the performance of the last quantitative test, including, but not limited to, macroeconomic conditions, industry and company-specific trends and parent company share price performance. Significant unobservable inputs utilized in the income approach valuation method for quantitative assessments were discount rates (ranging from 8.0% to 17.0%), long-term growth rates (ranging from 2.0% to 3.0%) and royalty rates (ranging from 0.25% to 5.0%). Significant unobservable inputs utilized in the market approach valuation method for quantitative assessments were EBITDA and revenue multiples from guideline public companies operating in similar industries (ranging from 5.0x to 10.0x and 2.0x to 2.8x, respectively) and control premiums (ranging from 5.0% to 10.0%). Significant increases (decreases) in royalty rates, growth rates, control premiums and multiples, assuming no change in discount rates, would result in a significantly higher (lower) fair value measurement. Significant decreases (increases) in discount rates, assuming no changes in royalty rates, growth rates, control premiums and multiples, would result in a significantly higher (lower) fair value measurement.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Fiscal 2024

The performance of the Company’s annual impairment analysis resulted in impairments of $18 million to an indefinite-lived intangible asset and goodwill in fiscal 2024. Significant unobservable inputs utilized in the income approach valuation method for quantitative assessments were discount rates (ranging from 8.0% to 18.5%), long-term growth rates (ranging from 1.0% to 3.5%) and royalty rates (ranging from 0.25% to 7.0%). Significant unobservable inputs utilized in the market approach valuation method for quantitative assessments were EBITDA and revenue multiples from guideline public companies operating in similar industries (ranging from 5.5x to 11.8x and 2.0x to 2.8x, respectively) and control premiums (ranging from 5.0% to 10.0%). Significant increases (decreases) in royalty rates, growth rates, control premiums and multiples, assuming no change in discount rates, would result in a significantly higher (lower) fair value measurement. Significant decreases (increases) in discount rates, assuming no changes in royalty rates, growth rates, control premiums and multiples, would result in a significantly higher (lower) fair value measurement.

Fiscal 2023

The performance of the Company’s annual impairment analysis resulted in impairments of $2 million to indefinite-lived intangible assets and no impairments to goodwill in fiscal 2023. Significant unobservable inputs utilized in the income approach valuation method for quantitative assessments were discount rates (ranging from 8.5% to 18.0%), long-term growth rates (ranging from 1.0% to 3.5%) and royalty rates (ranging from 0.25% to 7.0%). Significant unobservable inputs utilized in the market approach valuation method for quantitative assessments were EBITDA and revenue multiples from guideline public companies operating in similar industries (ranging from 6.0x to 11.5x and 2.0x to 2.8x, respectively) and control premiums (ranging from 5.0% to 10.0%). Significant increases (decreases) in royalty rates, growth rates, control premiums and multiples, assuming no change in discount rates, would result in a significantly higher (lower) fair value measurement. Significant decreases (increases) in discount rates, assuming no changes in royalty rates, growth rates, control premiums and multiples, would result in a significantly higher (lower) fair value measurement.

NOTE 9. BORROWINGS

The Company’s total borrowings consist of the following:


	Interest rate at June 30, 2025		Maturity at June 30, 2025	As of June 30, 2025	As of June 30, 2024
				(in millions)
News Corporation
2022 Term loan A(a)	5.774	%	Mar 31, 2027	475	484
2022 Senior notes	5.125	%	Feb 15, 2032	494	493
2021 Senior notes	3.875	%	May 15, 2029	993	991
REA Group(b)
2024 REA credit facility — tranche 1(c)	5.10	%	Sep 15, 2028	—	—
2024 REA credit facility — tranche 2(d)	N/A		N/A	—	79
2024 Subsidiary facility(e)	N/A		N/A	—	55
Total borrowings				1,962	2,102
Less: current portion(f)				(25)	(9)
Long-term borrowings				1,937	2,093

(a)The Company entered into an interest rate swap derivative to fix the floating rate interest component of its Term A Loans at 2.083%. For the three months ended June 30, 2025, the Company was paying interest at an effective interest rate of 3.458%. See Note 11—Financial Instruments and Fair Value Measurements.

(b)These borrowings were incurred by REA Group and certain of its subsidiaries (REA Group and certain of its subsidiaries, the “REA Debt Group”), consolidated but non wholly-owned subsidiaries of News Corp, and are only guaranteed by the REA Debt Group and are non-recourse to News Corp.

(c)As of June 30, 2025, REA Group had total undrawn commitments of A$400 million available under this facility.

(d)This facility was terminated by REA Group during the fiscal year ended June 30, 2025, with the amount outstanding repaid using proceeds from the sale of REA Group’s interest in PropertyGuru. See Note 6—Investments.

(e)This facility was terminated by REA Group during the fiscal year ended June 30, 2025, with the amount outstanding repaid using capacity available under the 2024 REA Credit Facility.

(f)The current portion of long term debt relates to required principal repayments on the 2022 Term Loan A.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

News Corporation Borrowings

As of June 30, 2025, News Corporation had (i) borrowings of $1,962 million, including the current portion, consisting of its outstanding 2021 Senior Notes, 2022 Senior Notes (collectively, the “Senior Notes”) and Term A Loans, and (ii) $750 million of undrawn commitments available under the Revolving Facility.

Senior Notes

The Senior Notes are the senior unsecured obligations of the Company and rank equally in right of payment with the Company’s other senior debt, including borrowings under its Term A and Revolving Facilities (as defined below). In the event of specified change in control events, the Company must offer to purchase the outstanding Senior Notes from the holders at a purchase price equal to 101% of the principal amount, plus any accrued and unpaid interest. There are no financial maintenance covenants with respect to the Senior Notes. The indentures governing the applicable Senior Notes contain other covenants that, among other things and subject to certain exceptions, (i) limit the Company’s ability and the ability of its subsidiaries to incur any liens securing indebtedness for borrowed money and (ii) limit the Company’s ability to consolidate or merge with or into another person or sell or otherwise dispose of all or substantially all of the assets of the Company and its subsidiaries (taken as a whole).

Term Loan A and Revolving Credit Facilities

The Company is party to a credit agreement (the “2022 Credit Agreement”) that provides for a $500 million unsecured term loan A credit facility (the “Term A Facility” and the loans under the Term A Facility, the “Term A Loans”) and a $750 million unsecured revolving credit facility with a sublimit of $100 million available for issuances of letters of credit (the “Revolving Facility” and, together with the Term A Facility, the “Facilities”). Under the 2022 Credit Agreement, the Company may request increases with respect to either Facility in an aggregate principal amount not to exceed $250 million.

The Term A Loans amortize in equal quarterly installments in an aggregate annual amount equal to —%, 2.5%, 2.5%, 5.0% and 5.0%, respectively, of the original principal amount of the Term A Facility for each 12-month period commencing on June 30, 2022. Loans under the Revolving Facility do not amortize. The Facilities have a maturity date of March 31, 2027, and under certain circumstances as set forth in the 2022 Credit Agreement, the Company may request that the maturity date of the Term A Facility be extended by at least one year and/or that the maturity date of the revolving credit commitments under the Revolving Facility be extended for up to two additional one-year periods.

Interest on borrowings is based on either (a) an Alternative Currency Term Rate formula, (b) a Term SOFR formula, (c) an Alternative Currency Daily Rate formula ((a) through (c) each, a “Relevant Rate”) or (d) the Base Rate formula, each as set forth in the 2022 Credit Agreement. The applicable margin for borrowings under the Facilities and the commitment fee for undrawn balances under the Revolving Facility vary based on the Company’s adjusted operating income net leverage ratio. At June 30, 2025, the Company was paying commitment fees of 0.2% and an applicable margin of 0.375% for a Base Rate borrowing and 1.375% for a Relevant Rate borrowing.

The 2022 Credit Agreement contains certain customary affirmative and negative covenants and events of default with customary exceptions, including limitations on the ability of the Company and the Company’s subsidiaries to engage in transactions with affiliates, incur liens, merge into or consolidate with any other entity, incur subsidiary debt or dispose of all or substantially all of its assets or all or substantially all of the stock of all subsidiaries taken as a whole. In addition, the 2022 Credit Agreement requires the Company to maintain an adjusted operating income net leverage ratio of not more than 3.0 to 1.0, subject to certain adjustments following a material acquisition, and a net interest coverage ratio of not less than 3.0 to 1.0.

REA Group Debt

As of June 30, 2025, REA Group had A$400 million of undrawn commitments available under its unsecured syndicated credit facility (the “2024 REA Credit Facility”). During the fiscal year ended June 30, 2025, REA Group (i) terminated its A$83 million 2024 Subsidiary Facility and repaid the amount outstanding using capacity available under the 2024 REA Credit Facility and (ii) terminated its A$200 million 2024 REA Credit Facility—tranche 2 and repaid the amount outstanding using proceeds from the sale of REA Group’s interest in PropertyGuru. REA Group is a consolidated but non wholly-owned subsidiary of News Corp, and its indebtedness is only guaranteed by REA Group and certain of its subsidiaries and is non-recourse to News Corp.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Borrowings under the 2024 REA Credit Facility—tranche 1 accrue interest at a rate of the Australian BBSY plus a margin of between 1.45% and 2.35%, depending on REA Group’s net leverage ratio. Tranche 1 carries a commitment fee of 40% of the applicable margin on any undrawn balance. REA Group may request increases in the amount of the 2024 REA Credit Facility up to a maximum amount of A$500 million, subject to the terms and limitations set forth in the syndicated facility agreement.

The syndicated facility agreement governing the 2024 REA Credit Facility requires REA Group to maintain (i) a net leverage ratio of not more than 3.5 to 1.0 and (ii) an interest coverage ratio of not less than 3.0 to 1.0. The agreement also contains certain other customary affirmative and negative covenants and events of default. Subject to certain exceptions, these covenants restrict or prohibit REA Group and its subsidiaries from, among other things, incurring or guaranteeing debt, disposing of certain properties or assets, merging or consolidating with any other person, making financial accommodation available, entering into certain other financing arrangements, creating or permitting certain liens, engaging in non-arms’ length transactions with affiliates, undergoing fundamental business changes and making restricted payments.

Covenants

The Company’s borrowings and those of its consolidated subsidiaries contain customary representations, covenants and events of default, including those discussed above. If any of the events of default occur and are not cured within applicable grace periods or waived, any unpaid amounts under the applicable debt agreements may be declared immediately due and payable. The Company was in compliance with all such covenants at June 30, 2025.

Future Maturities

The following table summarizes the Company’s debt maturities, excluding debt issuance costs, as of June 30, 2025:


	As of June 30, 2025
	(in millions)
Fiscal 2026	$	25
Fiscal 2027	450
Fiscal 2028	—
Fiscal 2029	1,000
Fiscal 2030	—
Thereafter	500

NOTE 10. LEASES

Summary of Leases

The Company’s operating leases primarily consist of real estate, including office space, warehouse space and printing facilities, and generally include options to extend the lease term or terminate the lease. Such options do not impact the Company’s lease term assessment until the Company is reasonably certain that the option will be exercised.

Certain of the Company’s leases include rent adjustments which may be indexed to various metrics, including the consumer price index or other inflationary indexes. As a general matter, the Company’s real estate lease arrangements typically require adjustments resulting from changes in real estate taxes and other costs to operate the leased asset.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The total lease cost for operating leases included in the Statements of Operations was as follows:


		For the fiscal years ended June 30,
		2025		2024		2023
	Income Statement Location	(in millions)
Operating lease costs	Selling, general and administrative	$	106	$	104	$	110
Operating lease costs	Operating expenses	10		10		9


Short term lease costs	Operating expenses	23		21		16
Variable lease costs	Selling, general and administrative	27		24		22
Total lease costs		$	166	$	159	$	157

Additional information related to the Company’s operating leases under ASC 842, Leases:


	As of June 30,
	2025		2024
Weighted-average remaining lease term	13.5 years		14.1 years
Weighted-average incremental borrowing rate	5.32	%	5.28	%


	For the fiscal years ended June 30,
	2025		2024		2023
	(in millions)

Cash paid - Operating lease liabilities	$	138	$	134	$	132



Operating lease right-of-use assets obtained in exchange for operating lease liabilities	33		13		238

Future minimum lease payments as of June 30, 2025 are as follows:


	As of June 30, 2025
	Operating Leases
	(in millions)
Fiscal 2026	$	120
Fiscal 2027	128
Fiscal 2028	89
Fiscal 2029	76
Fiscal 2030	89
Thereafter	921
Total future minimum lease payments	$	1,423
Less: interest	(445)
Present value of minimum payments	$	978

NOTE 11. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

In accordance with ASC 820, fair value measurements are required to be disclosed using a three-tiered fair value hierarchy which distinguishes market participant assumptions into the following categories:

Level 1 — Quoted prices in active markets for identical assets or liabilities.
Level 2 — Observable inputs other than quoted prices included in Level 1. The Company could value assets and liabilities included in this level using dealer and broker quotations, certain pricing models, bid prices, quoted prices for similar assets and liabilities in active markets or other inputs that are observable or can be corroborated by observable market data.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. For the Company, this primarily includes the use of forecasted financial information and other valuation related assumptions such as discount rates and long term growth rates in the income approach as well as the market approach which utilizes certain market and transaction multiples.

Under ASC 820, certain assets and liabilities are required to be remeasured to fair value at the end of each reporting period. The following table summarizes those assets and liabilities measured at fair value on a recurring basis:


	As of June 30, 2025								As of June 30, 2024
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	(in millions)
Assets:
Interest rate derivatives—cash flow hedges	$	—	$	12	$	—	$	12	$	—	$	28	$	—	$	28
Equity and other securities	67		50		814		931		53		39		122		214
Total assets	$	67	$	62	$	814	$	943	$	53	$	67	$	122	$	242

Equity and Other Securities

The fair values of equity and other securities with quoted prices in active markets, which are classified as Level 1 in the fair value hierarchy outlined above, and those that rely on significant observable inputs other than quoted prices in active markets, which are classified as Level 2 in the fair value hierarchy outlined above, are determined based on the closing price at the end of each reporting period. The fair values of equity and other securities without readily determinable fair market values are determined based on cost, less any impairment, plus or minus changes in fair value resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. These securities are classified as Level 3 in the fair value hierarchy outlined above.

A rollforward of the Company’s equity and other securities classified as Level 3 is as follows:


	For the fiscal years ended June 30,
	2025		2024
	(in millions)
Balance—beginning of year	$	122	$	130
Additions(a)	690		4
Returns of capital	(5)		(4)
Measurement adjustments	1		—
Foreign exchange and other	6		(8)
Balance—end of year	$	814	$	122

(a)The additions for the fiscal year ended June 30, 2025 primarily relate to the $648 million investment in DAZN in connection with the sale of Foxtel. Refer to Note 3—Discontinued Operations for further discussion.

Derivative Instruments

The Company is directly and indirectly affected by risks associated with changes in certain market conditions. When deemed appropriate, the Company uses derivative instruments to mitigate the potential impact of these market risks. The primary market risk managed by the Company through the use of derivative instruments relates to interest rate risk arising from floating rate News Corporation borrowings.

The Company formally designates qualifying derivatives as hedge relationships and applies hedge accounting when considered appropriate. The Company does not use derivative financial instruments for trading or speculative purposes.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Derivatives are classified as current or non-current in the Balance Sheets based on their maturity dates. Refer to the table below for further details:


		Fair value as of June 30,
	Balance Sheet Classification	2025		2024
		(in millions)
Interest rate derivatives—cash flow hedges	Other current assets	$	7	$	14
Interest rate derivatives—cash flow hedges	Other non-current assets	5		14

Cash Flow Hedges

The Company utilizes interest rate derivatives to mitigate interest rate risk in relation to future interest payments.

The total notional value of interest rate swap derivatives designated for hedging was approximately $475 million as of June 30, 2025 for News Corporation borrowings. The maximum hedged term over which the Company is hedging exposure to variability in interest payments is to March 2027. As of June 30, 2025, the Company estimates that approximately $8 million of net derivative gains related to its interest rate swap derivative cash flow hedges included in Accumulated other comprehensive loss will be reclassified into the Statements of Operations within the next twelve months.

The following tables present the impact that changes in the fair values had on Accumulated other comprehensive loss and the Statements of Operations during the fiscal years ended June 30, 2025, 2024 and 2023 for derivatives designated as cash flow hedges:

Gains (losses) recognized in Accumulated other comprehensive loss for the fiscal years ended June 30, 2025, 2024 and 2023, by derivative instrument:


	For the fiscal years ended June 30,
	2025		2024		2023
	(in millions)
Interest rate derivatives—cash flow hedges	$	(3)	$	10	$	29

(Gains) losses reclassified from Accumulated other comprehensive loss into the Statements of Operations for the fiscal years ended June 30, 2025, 2024 and 2023, by derivative instrument:


	Income Statement Classification	For the fiscal years ended June 30,
		2025		2024		2023
		(in millions)
Interest rate derivatives—cash flow hedges	Interest expense, net	$	(13)	$	(17)	$	(9)

Nonrecurring Fair Value Measurements

In addition to assets and liabilities that are remeasured at fair value on a recurring basis, the Company has certain assets, primarily goodwill, intangible assets, property, plant and equipment, investments in equity securities without readily determinable fair values and equity method investments that are not required to be remeasured to fair value at the end of each reporting period. On an ongoing basis, the Company monitors whether events occur or circumstances change that would more likely than not reduce the fair values of these assets below their carrying amounts. If the Company determines that these assets are impaired, the Company would write down these assets to fair value. These nonrecurring fair value measurements are considered to be Level 3 in the fair value hierarchy.

Other Fair Value Measurements

As of June 30, 2025, the carrying value of the Company’s outstanding borrowings approximates the fair value. The 2022 Senior Notes and the 2021 Senior Notes are classified as Level 2 and the remaining borrowings are classified as Level 3 in the fair value hierarchy.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 12. STOCKHOLDERS' EQUITY

Authorized Capital Stock

The Company’s authorized capital stock consists of 1,500,000,000 shares of Class A Common Stock, par value $0.01 per share, 750,000,000 shares of Class B Common Stock, par value $0.01 per share, 25,000,000 shares of Series Common Stock, par value $0.01 per share, and 25,000,000 shares of Preferred Stock, par value $0.01 per share.

Common Stock and Preferred Stock

Shares Outstanding—As of June 30, 2025, the Company had approximately 377 million shares of Class A Common Stock outstanding at a par value of $0.01 per share and approximately 189 million shares of Class B Common Stock outstanding at a par value of $0.01 per share. As of June 30, 2025, the Company had no shares of Series Common Stock or Preferred Stock outstanding.

*Dividends—*The following table summarizes the dividends declared and paid per share on both the Company’s Class A Common Stock and Class B Common Stock:


	For the fiscal years ended June 30,
	2025		2024		2023
Cash dividends paid per share	$	0.20	$	0.20	$	0.20

The timing, declaration, amount and payment of future dividends to stockholders, if any, is within the discretion of the Company’s Board of Directors (the “Board of Directors”). The Board of Directors’ decisions regarding the payment of future dividends will depend on many factors, including the Company’s financial condition, earnings, capital requirements and debt facility covenants, other contractual restrictions, as well as legal requirements, regulatory constraints, industry practice, market volatility and other factors that the Board of Directors deems relevant.

Voting Rights—Holders of the Company’s Class A Common Stock are entitled to vote only in the limited circumstances set forth in the Company’s Restated Certificate of Incorporation (the “Charter”). Holders of the Company’s Class B Common Stock are generally entitled to one vote for each share held of record on all matters submitted to a vote of the stockholders.

Liquidation Rights—In the event of a liquidation or dissolution of the Company, holders of Class A Common Stock and Class B Common Stock shall be entitled to receive all of the remaining assets of the Company available for distribution to its stockholders, ratably in proportion to the number of shares held by Class A Common Stock holders and Class B Common Stock holders, respectively. In the event of any merger or consolidation with or into another entity, the holders of Class A Common Stock and the holders of Class B Common Stock shall generally be entitled to receive substantially identical per share consideration.

Under the Company’s Charter, the Board of Directors is authorized to issue shares of preferred stock or series common stock at any time, without stockholder approval, in one or more series and to fix the number of shares, designations, voting powers, if any, preferences and relative, participating, optional and other rights of such series, as well as any applicable qualifications, limitations or restrictions, to the full extent permitted by Delaware law, subject to the limitations set forth in the Charter, including stockholder approval requirements with respect to the issuance of preferred stock or series common stock entitling holders thereof to more than one vote per share.

Stock Repurchases

On September 22, 2021, the Company announced a stock repurchase program authorizing the Company to purchase up to $1 billion in the aggregate of the Company’s outstanding Class A Common Stock and Class B Common Stock (the “2021 Repurchase Program”). As of June 30, 2025, the remaining authorized amount under the 2021 Repurchase Program was approximately $310 million.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Stock repurchases under the 2021 Repurchase Program commenced on November 9, 2021. The following table summarizes the shares repurchased and subsequently retired and the related consideration paid during the fiscal years ended June 30, 2025, 2024 and 2023:


	For the fiscal years ended June 30,
	2025			2024			2023
	Shares	Amount		Shares	Amount		Shares	Amount
	(in millions)
Class A Common Stock	3.5	$	97	3.4	$	79	9.5	$	159
Class B Common Stock	1.8	53		1.6	38		4.7	81
Total	5.3	$	150	5.0	$	117	14.2	$	240

On July 15, 2025, the Company announced a new stock repurchase program authorizing the Company to purchase up to $1 billion in the aggregate of the Company’s outstanding Class A Common Stock and Class B Common Stock (the “2025 Repurchase Program” and, together with the 2021 Repurchase Program, the “Stock Repurchase Programs”), which is in addition to the remaining authorized amount under the 2021 Repurchase Program.

The manner, timing, number and share price of any repurchases under the Stock Repurchase Programs will be determined by the Company at its discretion and will depend upon such factors as the market price of the stock, general market conditions, applicable securities laws, alternative investment opportunities and other factors. The Stock Repurchase Programs have no time limit and may be modified, suspended or discontinued at any time.

Stockholders Agreement

In September 2021, the Company entered into a stockholders agreement (the “Stockholders Agreement”) with the Murdoch Family Trust (the “MFT”) pursuant to which the MFT and the Company have agreed not to take actions that (i) would result in the MFT and Murdoch family members, including K. Rupert Murdoch and Lachlan K. Murdoch, the Company’s Chair, together owning more than 44% of the outstanding voting power of the shares of the Company’s Class B Common Stock (“Class B Shares”), or (ii) would increase the MFT’s voting power by more than 1.75% in any rolling twelve-month period. The MFT would forfeit votes in connection with any Company stockholders meeting to the extent necessary to ensure that the MFT and the Murdoch family collectively do not exceed 44% of the outstanding voting power of the Class B Shares at such meeting, except where a Murdoch family member votes their own shares differently from the MFT on any matter. The Stockholders Agreement will terminate upon the MFT’s distribution of all or substantially all of its Class B Shares.

NOTE 13. EQUITY-BASED COMPENSATION

Employees, Directors and other service providers of the Company (“participants”) are eligible to participate in the News Corporation 2013 Long-Term Incentive Plan (as amended and restated, the “2013 LTIP”), which provides for equity-based compensation including performance stock units (“PSUs”), restricted stock units (“RSUs”) and other types of awards. The Company has the ability to award up to 50 million shares of Class A Common Stock under the terms of the 2013 LTIP. All shares of Class A Common Stock reserved for cancelled or forfeited equity-based compensation awards under the 2013 LTIP become available for future grants.

The following table summarizes the Company’s equity-based compensation expense reported in the Statements of Operations:


	For the fiscal years ended June 30,
	2025		2024		2023
	(in millions)
Total equity compensation expense	$	84	$	91	$	87

As of June 30, 2025, the total compensation cost not yet recognized for all unvested awards held by participants was approximately $68 million and is expected to be recognized over a weighted average period of between one and two years. The total intrinsic value of all outstanding awards was approximately $232 million as of June 30, 2025.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The tax benefit recognized on PSUs and RSUs for participants that vested during the applicable fiscal year was $13 million, $14 million and $11 million for the fiscal years ended June 30, 2025, 2024 and 2023, respectively.

Summary of Incentive Plans

The fair value of equity-based compensation granted under the 2013 LTIP is calculated according to the type of award issued. Cash-settled awards are marked-to-market at the end of each reporting period.

Performance Stock Units

PSU grants entitle the holder to shares of the Company’s Class A Common Stock or the cash equivalent value of such shares based on the achievement of pre-established performance metrics over the applicable performance period. The fair value of PSUs is determined on the date of grant and expensed using a straight-line method over the applicable vesting period. The expense is adjusted to reflect the number of shares expected to vest based on management’s determination of the probable achievement of the pre-established performance metrics, except no adjustments are made for awards settled in Class A Common Stock that contain a market condition (total stockholder return) based on changes in that market condition. The Company records a cumulative adjustment in periods in which its estimate of the number of shares expected to vest changes. Additionally, the Company ultimately adjusts the expense recognized to reflect the actual vested shares following the final determination of the achievement of the performance conditions. Any person who holds PSUs shall have no ownership interest in the shares or cash to which such PSUs relate unless and until the shares or cash are delivered to the holder. Each PSU is entitled to receive dividend equivalents for each regular cash dividend on the Class A Common Stock paid by the Company during the award period, subject to the same terms and conditions as apply to the underlying award.

During fiscal 2025, 2024 and 2023, certain participants in the 2013 LTIP received grants of PSUs which have a three-year performance measurement period. The number of shares that will be issued upon vesting of these PSUs can range from 0% to 200% of the target award, subject to three-year performance conditions based on a combination of cumulative business-unit-specific revenue, EBITDA and free cash flow, or the Company’s cumulative earnings per share, cumulative free cash flow and three-year total stockholder return relative to the individual companies that comprise the S&P 1500 Media Index. Vesting of the awards is generally subject to the participants’ continued service with the Company through the applicable vesting date.

The following table summarizes information related to grants of PSUs during the fiscal years ended June 30, 2025, 2024 and 2023:


	For the fiscal years ended June 30,
	2025	2024	2023
	(in millions)

Class A Common Stock-settled PSUs granted	0.7	0.7	0.8
Cash-settled PSUs(a) granted	0.3	0.5	0.5
Total PSUs granted	1.0	1.2	1.3

(a)Granted to executive Directors and to employees in certain foreign locations and settled in cash, assuming performance conditions are met.

The following table summarizes information related to vests of PSUs during the fiscal years ended June 30, 2025, 2024 and 2023:


	For the fiscal years ended June 30,
	2025			2024			2023
	Shares	Settlement Value(a)		Shares	Settlement Value(a)		Shares	Settlement Value(a)
	(in millions)

Class A Common Stock-settled PSUs vested	0.5	$	12	1.3	$	28	1.5	$	27
Cash-settled PSUs vested	0.4	13		1.1	24		1.2	24
Total PSUs vested	0.9	$	25	2.4	$	52	2.7	$	51

(a)Settlement value represents cash paid (for cash-settled PSUs) or the fair value of PSU awards at the time of vesting (for stock-settled PSUs) and does not include statutory tax withholdings.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Restricted Stock Units

RSU grants entitle the holder to shares of the Company’s Class A Common Stock or the cash equivalent value of such shares. The fair value of RSUs is based upon the fair market value of the shares underlying the awards on the grant date and expensed using a straight-line method over the applicable vesting period. Any person who holds RSUs shall have no ownership interest in the shares or cash to which such RSUs relate unless and until the shares or cash are delivered to the holder. Each RSU is entitled to receive dividend equivalents for each regular cash dividend on the Class A Common Stock paid by the Company during the award period, subject to the same terms and conditions as apply to the underlying award.

During fiscal 2025, 2024 and 2023, certain participants in the 2013 LTIP received grants of time-vested RSUs. Vesting of the awards is generally subject to the participants’ continued service with the Company through the applicable vesting date. These RSUs generally have graded vesting, primarily over three years.

The following table summarizes information related to grants of RSUs during the fiscal years ended June 30, 2025, 2024 and 2023:


	For the fiscal years ended June 30,
	2025	2024	2023
	(in millions)

Class A Common Stock-settled RSUs granted	2.1	2.6	3.4
Cash-settled RSUs(a) granted	0.4	0.5	0.6
Total RSUs granted	2.5	3.1	4.0

(a)Granted to executive Directors and to employees in certain foreign locations.

The following table summarizes information related to vests of RSUs during the fiscal years ended June 30, 2025, 2024 and 2023:


	For the fiscal years ended June 30,
	2025			2024			2023
	Shares	Settlement Value(a)		Shares	Settlement Value(a)		Shares	Settlement Value(a)
	(in millions)

Class A Common Stock-settled RSUs vested	2.2	$	59	2.3	$	50	2.0	$	39
Cash-settled RSUs vested	0.5	13		0.5	11		0.6	10
Total RSUs vested	2.7	$	72	2.8	$	61	2.6	$	49

(a)Settlement value represents cash paid (for cash-settled RSUs) or the fair value of RSU awards at the time of vesting (for stock-settled RSUs) and does not include statutory tax withholdings.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The following table summarizes the activity related to the target PSUs and RSUs granted to participants that will be settled in shares of the Company (PSUs and RSUs in thousands):


	Fiscal 2025			Fiscal 2024			Fiscal 2023
	Number of shares	Weighted average grant-date fair value		Number of shares	Weighted average grant-date fair value		Number of shares	Weighted average grant-date fair value
PSUs and RSUs
Unvested units at beginning of the year	6,256	$	20.73	6,764	$	19.40	6,297	$	18.65
Granted(a)	2,705	27.65		3,885	20.66		4,665	18.13
Vested	(2,639)	21.26		(3,632)	18.31		(3,487)	16.32
Cancelled(b)	(507)	23.73		(761)	20.12		(711)	19.59
Unvested units at the end of the year	5,815	$	23.34	6,256	$	20.73	6,764	$	19.40

(a)For fiscal 2025, includes 0.7 million target PSUs and 2.1 million RSUs granted and a payout adjustment of (0.1) million PSUs due to the actual performance level achieved for PSUs granted in fiscal 2022 that vested during fiscal 2025.

For fiscal 2024, includes 0.7 million target PSUs and 2.6 million RSUs granted and a payout adjustment of 0.6 million PSUs due to the actual performance level achieved for PSUs granted in fiscal 2021 that vested during fiscal 2024.

For fiscal 2023, includes 0.8 million target PSUs and 3.4 million RSUs granted and a payout adjustment of 0.5 million PSUs due to the actual performance level achieved for PSUs granted in fiscal 2020 that vested during fiscal 2023.

(b)For fiscal 2025, includes 0.1 million of target PSUs and 0.4 million RSUs cancelled.

For fiscal 2024, includes 0.1 million of target PSUs and 0.7 million RSUs cancelled.

For fiscal 2023, includes 0.1 million of target PSUs and 0.6 million RSUs cancelled.

NOTE 14. EARNINGS (LOSS) PER SHARE

The following table sets forth the computation of basic and diluted earnings (loss) per share under ASC 260, Earnings per Share:


	For the fiscal years ended June 30,
	2025		2024		2023
	(in millions, except per share amounts)
Net income from continuing operations	$	648	$	379	$	228
Net income (loss) from discontinued operations, net of tax	692		(25)		(41)
Net income	1,340		354		187
Net income attributable to noncontrolling interests from continuing operations	(168)		(110)		(65)
Net loss attributable to noncontrolling interests from discontinued operations	8		22		27
Net income attributable to News Corporation stockholders	$	1,180	$	266	$	149

Weighted-average number of shares of common stock outstanding—basic	567.7		571.2		576.4
Dilutive effect of equity awards	2.2		2.3		2.4
Weighted-average number of shares of common stock outstanding—diluted	569.9		573.5		578.8

Net income (loss) attributable to News Corporation stockholders per share:
Basic:
Continuing operations	$	0.85	$	0.47	$	0.28
Discontinued operations	1.23		—		(0.02)
	$	2.08	$	0.47	$	0.26
Diluted:
Continuing operations	$	0.84	$	0.47	$	0.28
Discontinued operations	1.23		(0.01)		(0.02)
	$	2.07	$	0.46	$	0.26

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 15. RELATED PARTY TRANSACTIONS

Related Party Transactions

In the ordinary course of business, the Company enters into transactions with related parties to purchase and/or sell advertising and administrative services.

The following table sets forth the net revenue (expense) from related parties included in the Statements of Operations:


	For the fiscal years ended June 30,
	2025		2024		2023
	(in millions)
Related party revenue (expense), net	$	(53)	$	(27)	$	(9)

The following table sets forth the amount of receivables due from and payables due to related parties outstanding on the Balance Sheets:


	As of June 30,
	2025		2024
	(in millions)
Accounts receivable from related parties	$	14	$	11
Accounts payable to related parties	16		9

In addition, refer to Note 16—Commitments and Contingencies for discussion of the U.K. Newspaper Matters.

NOTE 16. COMMITMENTS AND CONTINGENCIES

Commitments

The Company has commitments under certain firm contractual arrangements to make future payments. These firm commitments secure the current and future rights to various assets and services to be used in the normal course of operations. The following table summarizes the Company’s material firm commitments as of June 30, 2025:


	As of June 30, 2025
	Payments Due by Period
	Less than 1 year		1-3 years		3-5 years		More than 5 years		Total
	(in millions)
Purchase obligations(a)	$	415	$	437	$	88	$	94	$	1,034


Operating leases(b)	117		208		146		860		1,331


Borrowings(c)	25		450		1,000		500		1,975
Interest payments on borrowings(d)	81		144		90		51		366
Total commitments and contractual obligations	$	638	$	1,239	$	1,324	$	1,505	$	4,706

(a)The Company has commitments under purchase obligations related to technology infrastructure services, marketing agreements, content licensing costs and other legally binding commitments.

(b)The Company leases office facilities, warehouse facilities, printing plants and equipment. These leases, which are classified as operating leases, are expected to be paid at certain dates through fiscal 2048. Amounts reflected represent only the Company’s lease obligations for which it has firm commitments.

(c)See Note 9—Borrowings.

(d)Reflects the Company’s expected future interest payments based on borrowings outstanding and interest rates applicable at June 30, 2025. Such rates are subject to change in future periods. See Note 9—Borrowings.

Contingencies

The Company routinely is involved in various legal proceedings, claims and governmental inspections or investigations, including those discussed below. The outcome of these matters and claims is subject to significant uncertainty, and the Company often

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

cannot predict what the eventual outcome of pending matters will be or the timing of the ultimate resolution of these matters. Fees, expenses, fines, penalties, judgments or settlement costs which might be incurred by the Company in connection with the various proceedings could adversely affect its results of operations and financial condition.

The Company establishes an accrued liability for legal claims when it determines that a loss is 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. Legal fees associated with litigation and similar proceedings are expensed as incurred. Except as otherwise provided below, for the contingencies disclosed for which there is at least a reasonable possibility that a loss may be incurred, the Company was unable to estimate the amount of loss or range of loss. The Company recognizes gain contingencies when the gain becomes realized or realizable.

Dow Jones

Beginning in August 2024, a number of purported class action complaints have been filed in the U.S. District Court for the Northern District of Illinois against certain pipe converters, distributors and the Company’s subsidiary, Oil Price Information Service, LLC (“OPIS”), alleging violations of federal and state antitrust laws. The complaints seek treble damages, injunctive relief and attorneys’ fees and costs. In May 2025, the Company entered into a settlement which would resolve the complaints. The settlement received preliminary court approval in July 2025 but remains subject to final approval.

In addition, (i) in January 2025, OPIS received a grand jury subpoena issued by the U.S. District Court for the Northern District of California, from the U.S. Department of Justice Antitrust Division, and (ii) in April 2025, OPIS received a civil investigative demand (“CID”) from a state attorney general. Both the subpoena and the CID call for production of documents related to PVC pipe, including documents relating to the publication of the PVC and Pipe Weekly Report. OPIS is complying with its obligations under the subpoena and CID.

HarperCollins

Beginning in February 2021, a number of purported class action complaints have been filed in the U.S. District Court for the Southern District of New York (the “N.Y. District Court”) against Amazon.com, Inc. (“Amazon”) and certain publishers, including the Company’s subsidiary, HarperCollins Publishers, L.L.C. (“HarperCollins” and together with the other publishers, the “Publishers”), alleging violations of antitrust and competition laws. The complaints seek treble damages, injunctive relief and attorneys’ fees and costs. In August 2023, the N.Y. District Court dismissed the complaints in one of the cases with prejudice and in March 2024, the court dismissed the complaint against the Publishers in the remaining case with prejudice. However, the plaintiffs’ time to appeal the N.Y. District Court’s decision to dismiss in the latter case does not expire until the complaint against Amazon in that case has been finally determined. While it is not possible at this time to predict with any degree of certainty the ultimate outcome of these actions, HarperCollins believes it has been compliant with applicable laws and intends to defend itself vigorously.

U.K. Newspaper Matters

Civil claims have been brought against the Company with respect to, among other things, voicemail interception and inappropriate payments to public officials at the Company’s former publication, The News of the World, and at The Sun, and related matters (the “U.K. Newspaper Matters”). The Company has admitted liability in many civil cases and has settled a number of cases. The Company also settled a number of claims through a private compensation scheme which was closed to new claims after April 8, 2013.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

In connection with the Separation, the Company and 21st Century Fox agreed in the Separation and Distribution Agreement that 21st Century Fox would indemnify the Company for payments made after June 28, 2013 arising out of civil claims and investigations relating to the U.K. Newspaper Matters as well as legal and professional fees and expenses paid in connection with the previously concluded criminal matters, other than fees, expenses and costs relating to employees (i) who are not directors, officers or certain designated employees or (ii) with respect to civil matters, who are not co-defendants with the Company or 21st Century Fox. 21st Century Fox’s indemnification obligations with respect to these matters are settled on an after-tax basis. In March 2019, as part of the separation of FOX Corporation (“FOX”) from 21st Century Fox, the Company, News Corp Holdings UK & Ireland, 21st Century Fox and FOX entered into a Partial Assignment and Assumption Agreement, pursuant to which, among other things, 21st Century Fox assigned, conveyed and transferred to FOX all of its indemnification obligations with respect to the U.K. Newspaper Matters.

The net expense related to the U.K. Newspaper Matters in Selling, general and administrative was $9 million, $8 million and $16 million for the fiscal years ended June 30, 2025, June 30, 2024 and June 30, 2023, respectively. As of June 30, 2025, the Company has provided for its best estimate of the liability for the claims that have been filed and costs incurred, including liabilities associated with employment taxes, and has accrued approximately $17 million. The amount to be indemnified by FOX of approximately $29 million was recorded as a receivable in Other current assets on the Balance Sheet as of June 30, 2025. It is not possible to estimate the liability or corresponding receivable for any additional claims that may be filed given the information that is currently available to the Company. If more claims are filed and additional information becomes available, the Company will update the liability provision and corresponding receivable for such matters.

The Company is not able to predict the ultimate outcome or cost of the civil claims. It is possible that these proceedings and any adverse resolution thereof could damage its reputation, impair its ability to conduct its business and adversely affect its results of operations and financial condition.

NOTE 17. RETIREMENT BENEFIT OBLIGATIONS

The Company’s employees participate in various defined benefit pension and postretirement plans sponsored by the Company and its subsidiaries. Plans in the U.S., U.K., Australia, and other foreign plans are accounted for as defined benefit pension plans. Accordingly, the funded and unfunded position of each plan is recorded in the Balance Sheets. Actuarial gains and losses that have not yet been recognized through net income are recorded in Accumulated other comprehensive loss, net of taxes, until they are amortized as a component of net periodic benefit cost. The determination of benefit obligations and the recognition of expenses related to the plans are dependent on various assumptions. The major assumptions primarily relate to discount rates, expected long-term rates of return on plan assets and mortality rates. Management develops each assumption using relevant company experience in conjunction with market-related data for each individual country in which such plans exist. The funded status of the plans can change from year to year, but the assets of the funded plans have been sufficient to pay all benefits that came due in each of fiscal 2025, 2024 and 2023.

Summary of Funded Status

The Company uses a June 30 measurement date for all pension and postretirement benefit plans. The combined domestic and foreign pension and postretirement benefit plans resulted in a net pension and postretirement benefits asset (liability) of $38 million and $12 million at June 30, 2025 and 2024, respectively. The Company recognized these amounts in the Balance Sheets at June 30, 2025 and 2024 as follows:


	Pension Benefits
	Domestic				Foreign				Postretirement benefits				Total
	2025		2024		2025		2024		2025		2024		2025		2024
	(in millions)
Other non-current assets	$	—	$	—	$	165	$	147	$	—	$	—	$	165	$	147
Other current liabilities	—		—		(3)		(3)		(7)		(7)		(10)		(10)
Retirement benefit obligations	(19)		(28)		(50)		(48)		(48)		(49)		(117)		(125)
Net asset (liability) recognized	$	(19)	$	(28)	$	112	$	96	$	(55)	$	(56)	$	38	$	12

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The following table sets forth the change in the projected benefit obligation, change in the fair value of the Company’s plan assets and funded status:


	Pension Benefits
	Domestic				Foreign				Postretirement Benefits				Total
	As of June 30,
	2025		2024		2025		2024		2025		2024		2025		2024
	(in millions)
Projected benefit obligation, beginning of the year	$	228	$	241	$	590	$	646	$	56	$	59	$	874	$	946
Service cost	—		—		1		1		—		—		1		1
Interest cost	12		13		29		33		3		3		44		49
Benefits paid	(26)		(22)		(40)		(35)		(7)		(7)		(73)		(64)
Settlements(a)	—		—		(6)		(54)		—		—		(6)		(54)
Actuarial (gain) loss	6		(4)		(20)		3		2		1		(12)		—
Foreign exchange rate changes	—		—		44		(4)		1		—		45		(4)

Projected benefit obligation, end of the year	220		228		598		590		55		56		873		874
Change in the fair value of plan assets for the Company’s benefit plans:
Fair value of plan assets, beginning of the year	200		204		686		729		—		—		886		933
Actual return on plan assets	10		6		14		39		—		—		24		45
Employer contributions	17		12		3		11		—		—		20		23
Benefits paid	(26)		(22)		(40)		(35)		—		—		(66)		(57)
Settlements(a)	—		—		(6)		(54)		—		—		(6)		(54)
Foreign exchange rate changes	—		—		53		(4)		—		—		53		(4)
Fair value of plan assets, end of the year	201		200		710		686		—		—		911		886
Funded status	$	(19)	$	(28)	$	112	$	96	$	(55)	$	(56)	$	38	$	12

(a)Amounts related to payments made to former employees of the Company in full settlement of their pension benefits.

Amounts recognized in Accumulated other comprehensive loss consist of:


	Pension Benefits
	Domestic				Foreign				Postretirement Benefits				Total
	As of June 30,
	2025		2024		2025		2024		2025		2024		2025		2024
	(in millions)
Actuarial losses (gains)	$	118	$	116	$	331	$	315	$	(6)	$	(8)	$	443	$	423
Prior service cost (benefit)	—		—		7		7		(20)		(24)		(13)		(17)
Net amounts recognized	$	118	$	116	$	338	$	322	$	(26)	$	(32)	$	430	$	406

Accumulated pension benefit obligations as of June 30, 2025 and 2024 were $818 million and $816 million, respectively.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Below is information about funded and unfunded pension plans:


	Domestic Pension Benefits
	Funded Plans				Unfunded Plans				Total
	As of June 30,
	2025		2024		2025		2024		2025		2024
	(in millions)
Projected benefit obligation	$	213	$	221	$	7	$	7	$	220	$	228
Accumulated benefit obligation	213		221		7		7		220		228
Fair value of plan assets	201		200		—		—		201		200


	Foreign Pension Benefits
	Funded Plans				Unfunded Plans				Total
	As of June 30,
	2025		2024		2025		2024		2025		2024
	(in millions)
Projected benefit obligation	$	545	$	540	$	53	$	50	$	598	$	590
Accumulated benefit obligation	545		538		53		50		598		588
Fair value of plan assets	710		686		—		—		710		686

The accumulated benefit obligation exceeds the fair value of plan assets for all domestic pension plans.

Below is information about foreign pension plans in which the accumulated benefit obligation exceeds the fair value of the plan assets:


	Foreign Pension Benefits
	Funded Plans				Unfunded Plans				Total
	As of June 30,
	2025		2024		2025		2024		2025		2024
	(in millions)
Projected benefit obligation	$	—	$	—	$	53	$	50	$	53	$	50
Accumulated benefit obligation	—		—		53		50		53		50
Fair value of plan assets	—		—		—		—		—		—

Summary of Net Periodic Benefit Costs

The Company recorded $10 million, $28 million and $13 million in net periodic benefit costs in the Statements of Operations for the fiscal years ended June 30, 2025, 2024 and 2023, respectively. The Company utilizes the full yield-curve approach to estimate the service and interest cost components of net periodic benefit costs for its pension and other postretirement benefit plans.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The amortization of amounts related to unrecognized prior service costs (credits), deferred losses and settlements, curtailments and other were reclassified out of Other comprehensive income as a component of net periodic benefit costs. The components of net periodic benefit costs were as follows:


	Pension Benefits
	Domestic						Foreign						Postretirement Benefits						Total
	For the fiscal years ended June 30,
	2025		2024		2023		2025		2024		2023		2025		2024		2023		2025		2024		2023
	(in millions)
Service cost benefits earned during the period	$	—	$	—	$	—	$	1	$	1	$	1	$	—	$	—	$	—	$	1	$	1	$	1
Interest costs on projected benefit obligations	12		13		11		29		33		27		3		3		2		44		49		40
Expected return on plan assets	(11)		(12)		(11)		(40)		(37)		(32)		—		—		—		(51)		(49)		(43)
Amortization of deferred losses	5		5		5		15		15		14		—		—		—		20		20		19
Amortization of prior service credits	—		—		—		—		—		—		(4)		(4)		(4)		(4)		(4)		(4)
Settlements, curtailments and other	—		—		—		—		11		—		—		—		—		—		11		—
Net periodic benefit costs (income) – Total	$	6	$	6	$	5	$	5	$	23	$	10	$	(1)	$	(1)	$	(2)	$	10	$	28	$	13


	Pension Benefits
	Domestic			Foreign			Postretirement Benefits
	For the fiscal years ended June 30,
	2025	2024	2023	2025	2024	2023	2025	2024	2023
Additional information
Weighted-average assumptions used to determine benefit obligations
Discount rate	5.5%	5.6%	5.4%	5.5%	5.2%	5.4%	5.3%	5.5%	5.5%
Rate of increase in future compensation	N/A	N/A	N/A	2.6%	2.9%	3.9%	N/A	N/A	N/A
Weighted-average assumptions used to determine net periodic benefit cost
Discount rate for PBO	5.6%	5.4%	4.9%	5.2%	5.4%	3.9%	5.5%	5.5%	4.6%
Discount rate for service cost	N/A	N/A	N/A	5.3%	5.4%	4.8%	5.6%	5.5%	4.9%
Discount rate for interest on PBO	5.5%	5.5%	4.6%	5.1%	5.7%	3.8%	5.4%	5.6%	4.3%
Expected return on plan assets	5.8%	6.0%	5.5%	5.9%	5.4%	3.9%	N/A	N/A	N/A
Rate of increase in future compensation	N/A	N/A	N/A	2.9%	3.9%	3.9%	N/A	N/A	N/A

The following assumed health care cost trend rates as of June 30 were also used in accounting for postretirement benefits:


	Postretirement benefits
	2025		2024
Health care cost trend rate	6.6	%	6.8	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	5.4	%	5.3	%
Year that the rate reaches the ultimate trend rate	2031		2031

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The following table sets forth the estimated benefit payments for the next five fiscal years, and in aggregate for the five fiscal years thereafter. The expected benefits are estimated based on the same assumptions used to measure the Company’s benefit obligation at the end of the fiscal year and include benefits attributable to estimated future employee service:


	Expected Benefit Payments
	Pension Benefits				Postretirement Benefits		Total
	Domestic		Foreign
	(in millions)
Fiscal Year
2026	$	20	$	50	$	7	$	77
2027	19		48		6		73
2028	19		47		6		72
2029	19		47		6		72
2030	18		46		5		69
2031 to 2035	84		222		21		327

Plan Assets

The Company applies the provisions of ASC 715, which requires disclosures including: (i) investment policies and strategies; (ii) the major categories of plan assets; (iii) the inputs and valuation techniques used to measure plan assets; (iv) the effect of fair value measurements using significant unobservable inputs on changes in plan assets for the period; and (v) significant concentrations of risk within plan assets.

The table below presents the Company’s plan assets by level within the fair value hierarchy, as described in Note 2—Summary of Significant Accounting Policies, as of June 30, 2025 and 2024:


	2025											2024
	Fair Value Measurements at Reporting Date Using								Total Fair Value			Fair Value Measurements at Reporting Date Using											Total Fair Value
	Level 1		Level 2		Level 3		NAV				Level 1			Level 2			Level 3			NAV
	(in millions)
Assets
Pooled funds:(a)
Domestic equity funds	$	—	$	—	$	—	$	35	$	35		$	—		$	—		$	—		$	42	$	42
International equity funds	—		19		—		20		39			—			36			—			33		69
Domestic fixed income funds	—		—		—		111		111			—			—			—			104		104
International fixed income funds	—		533		—		119		652			—			520			—			86		606
Balanced funds	—		28		—		—		28			—			35			—			—		35
Other	16		5		6		19		46			8			—			6			16		30
Total	$	16	$	585	$	6	$	304	$	911		$	8		$	591		$	6		$	281	$	886

(a)Open-ended pooled funds that are registered and/or available to the general public are valued at the daily published net asset value (“NAV”). Other pooled funds are valued at the NAV provided by the fund issuer.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The table below sets forth a summary of changes in the fair value of investments reflected as Level 3 assets as of June 30, 2025 and 2024:


	Level 3 Investments
	(in millions)
Balance, June 30, 2023	$	6
Actual return on plan assets:
Relating to assets still held at end of period	1
Relating to assets sold during the period	—
Purchases, sales, settlements and issuances	(1)
Transfers in and out of Level 3	—
Balance, June 30, 2024	$	6
Actual return on plan assets:
Relating to assets still held at end of period	—
Relating to assets sold during the period	—
Purchases, sales, settlements and issuances	—
Transfers in and out of Level 3	—
Balance, June 30, 2025	$	6

The Company’s investment strategy for its pension plans is to maximize the long-term rate of return on plan assets within an acceptable level of risk in order to minimize the cost of providing pension benefits while maintaining adequate funding levels. The Company’s practice is to conduct a periodic strategic review of its asset allocation. The Company’s current broad strategic targets are to have a pension asset portfolio comprised of 10% equity securities, 86% fixed income securities and 4% in cash and other investments. In developing the expected long-term rate of return, the Company considered the pension asset portfolio’s past average rate of returns and future return expectations of the various asset classes. A portion of the other allocation is reserved in cash to provide for expected benefits to be paid in the short term. The Company’s equity portfolios are managed in such a way as to achieve optimal diversity. The Company’s fixed income portfolio is investment grade in the aggregate. The Company does not manage any assets internally.

The Company’s benefit plan weighted-average asset allocations, by asset category, are as follows:


	Pension Assets
	As of June 30,
	2025		2024
Asset Category
Equity securities	10	%	14	%
Debt securities	84	%	81	%
Cash and other	6	%	5	%
Total	100	%	100	%

Required pension plan contributions for the next fiscal year are expected to be approximately $1 million; however, actual contributions may be affected by pension asset and liability valuation changes during the year. The Company will continue to make voluntary contributions as necessary to improve funded status.

NOTE 18. OTHER POSTRETIREMENT BENEFITS

Defined Contribution Plans

The Company has defined contribution plans for the benefit of substantially all employees meeting certain eligibility requirements. Employer contributions to such plans were $136 million, $134 million and $134 million for the fiscal years ended June 30, 2025, 2024 and 2023, respectively.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Deferred Compensation Plan

The Company has non-qualified deferred compensation plans for the benefit of certain management employees. The investment funds offered to the participants generally correspond to the funds offered in the Company’s 401(k) plan, and the account balance fluctuates with the investment returns on those funds. The unfunded obligations of the plans included in Other liabilities as of June 30, 2025 and 2024 were $57 million and $52 million, respectively, and the majority of these plans are closed to new employees.

NOTE 19. INCOME TAXES

Income taxes are recognized for the amount of taxes payable for the current year and for the impact of deferred tax assets and liabilities, which represent future tax consequences of events that have been recognized differently in the financial statements than for tax purposes. Deferred tax assets and liabilities are established using the enacted statutory tax rates and are adjusted for any changes in such rates in the period of change.

Income before income tax expense from continuing operations was attributable to the following jurisdictions:


	For the fiscal years ended June 30,
	2025		2024		2023
	(in millions)
U.S.	$	213	$	148	$	74
Foreign	710		437		306
Income before income tax expense from continuing operations	$	923	$	585	$	380

The significant components of the Company’s income tax expense were as follows:


	For the fiscal years ended June 30,
	2025		2024		2023
	(in millions)
Current
U.S.
Federal	$	—	$	1	$	1
State & Local	12		10		15
Foreign	180		165		125
Total current tax	192		176		141
Deferred
U.S.
Federal	29		22		(10)
State & Local	9		3		—
Foreign	45		5		21
Total deferred tax	83		30		11
Total income tax expense	$	275	$	206	$	152

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The reconciliation between the Company’s actual effective tax rate and the statutory U.S. Federal income tax rate was as follows:


	For the fiscal years ended June 30,
	2025		2024		2023
U.S. federal income tax rate	21	%	21	%	21	%
State and local taxes, net	2		2		3
Effect of foreign operations (a)	10		12		15
Change in valuation allowance	—		—		1
Non-deductible goodwill and asset impairments	—		1		2



Non-deductible compensation and benefits	1		2		2

R&D tax credits	(1)		(3)		(2)
Impact of dispositions	(3)		—		—
Other	—		—		(2)
Effective tax rate	30	%	35	%	40	%

(a)The Company’s effective tax rate is impacted by the geographic mix of its income. The Company’s foreign operations are located primarily in Australia and the U.K., which have a higher statutory income tax rate than the U.S. The U.K. had a lower tax rate than the U.S. through the fiscal year ended June 30, 2023.

The Company recognized deferred income taxes in the Balance Sheets as follows:


	As of June 30,
	2025		2024
	(in millions)
Deferred income tax assets	$	254	$	332
Deferred income tax liabilities	(57)		(21)
Net deferred tax assets	$	197	$	311

The significant components of the Company’s deferred tax assets and liabilities were as follows:


	As of June 30,
	2025		2024
	(in millions)
Deferred tax assets
Accrued liabilities	$	137	$	121
Capital loss carryforwards	1,723		1,161

Net operating loss carryforwards	222		295
Business tax credits	122		147
Operating lease liabilities	244		241
Other	217		227
Total deferred tax assets	2,665		2,192
Deferred tax liabilities
Asset basis difference and amortization	(135)		(99)
Operating lease right-of-use asset	(224)		(220)
Other	(21)		(21)
Total deferred tax liabilities	(380)		(340)
Net deferred tax asset before valuation allowance	2,285		1,852
Less: valuation allowance (See Note 22—Valuation and Qualifying Accounts)	(2,088)		(1,541)
Net deferred tax assets	$	197	$	311

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Significant judgment is applied in determining the ability to realize our deferred tax assets. Management assesses available positive and negative evidence, including historical results and future income forecasts to determine whether deferred tax assets will be realized. Based on its assessment, management has concluded that it is more likely than not that certain deferred tax assets may not be realized and therefore, a valuation allowance has been established against those tax assets. Certain of our businesses may incur losses in the future resulting in additional valuation allowances being recorded.

As of June 30, 2025, the Company had income tax net operating loss (“NOL”) carryforwards (gross, net of uncertain tax benefits) in various jurisdictions as follows:


Jurisdiction	Expiration	Amount (in millions)
U.S. Federal	2026 to 2035	$	61

U.S. States	Various	516
Australia	Indefinite	154
U.K.	Indefinite	11
Other Foreign	Various	602

Utilization of the NOLs is dependent on generating sufficient taxable income from our operations in each of the respective jurisdictions to which the NOLs relate, while taking into account tax filing groups and limitations and/or restrictions on our ability to use them. Certain of our U.S. federal NOLs were acquired as part of the acquisition of Move and are subject to limitations as promulgated under Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”). Section 382 of the Code limits the amount of NOLs that we can use on an annual basis to offset consolidated U.S. taxable income. The NOLs are also subject to review by relevant tax authorities in the jurisdictions to which they relate.

The Company recorded a deferred tax asset of $222 million and $295 million associated with its NOLs (net of approximately $77 million and $81 million, respectively, of uncertain tax benefits recorded against deferred tax assets) as of June 30, 2025 and 2024, respectively.

Valuation allowances of $136 million and $134 million have been established to reduce the deferred tax asset associated with the Company’s NOLs to an amount that will more likely than not be realized as of June 30, 2025 and 2024, respectively.

As of June 30, 2025, the Company had approximately $3.4 billion, $1.7 billion and $1.1 billion of capital loss carryforwards in Australia, the U.K. and the U.S., respectively. The Australia and U.K. capital losses may be carried forward indefinitely. The U.S. capital loss expires in the fiscal year ending June 30, 2030. The capital loss carryforwards are also subject to review by relevant tax authorities in the jurisdictions to which they relate. Realization of our capital losses is dependent on generating capital gain taxable income and satisfying certain continuity of ownership and/or business requirements. The Company recorded a deferred tax asset of $1.7 billion and $1.2 billion as of June 30, 2025 and 2024, respectively, for these capital loss carryforwards. It is more likely than not that the Company will not generate capital gain income in the normal course of business in these jurisdictions, and accordingly, valuation allowances of $1.7 billion and $1.2 billion and have been established to reduce the capital loss carryforward deferred tax asset to an amount that will more likely than not be realized as of June 30, 2025 and 2024, respectively.

As of June 30, 2025, the Company had approximately $105 million of U.S. federal tax credit carryforwards which includes $31 million of foreign tax credits and $74 million of general business credits, which begin to expire in 2026 and 2036, respectively.

As of June 30, 2025, the Company had approximately $9 million of non-U.S. tax credit carryforwards which expire in various amounts beginning in 2027 and $8 million of state tax credit carryforwards (net of U.S. federal benefit), which expire in various amounts beginning in 2025.

A valuation allowance of $28 million has been established to reduce the deferred tax asset associated with the Company’s U.S. federal tax credits, non-U.S. tax credits and state tax credit carryforwards to an amount that will more likely than not be realized as of June 30, 2025.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Uncertain Tax Positions

The following table sets forth the change in the Company’s unrecognized tax benefits, excluding interest and penalties:


	For the fiscal years ended June 30,
	2025		2024		2023
	(in millions)
Balance, beginning of period	$	100	$	105	$	86
Additions for prior year tax positions	2		—		14
Additions for current year tax positions	2		2		17
Reduction for prior year tax positions	(4)		(3)		—
Reduction for current year tax positions	(1)		—		—
Lapse of the statute of limitations	(3)		(3)		(2)

Settlement—tax attributes	—		—		(14)
Impact of currency translations	7		(1)		4
Balance, end of period	$	103	$	100	$	105

The Company recognizes interest and penalty charges related to unrecognized tax benefits as income tax expense, which is consistent with the recognition in prior reporting periods. The Company recognized an expense related to interest and penalties of $3 million for the fiscal year ended June 30, 2025 and $1 million for each of the fiscal years ended June 30, 2024 and 2023. The Company recorded liabilities for accrued interest and penalties of approximately $10 million, $7 million and $5 million as of June 30, 2025, 2024 and 2023, respectively.

The Company’s tax returns are subject to on-going review and examination by various tax authorities. Tax authorities may not agree with the treatment of items reported in our tax returns, and therefore the outcome of tax reviews and examinations can be unpredictable. The Company is currently undergoing tax examinations in various U.S. states and foreign jurisdictions. The Company believes it has appropriately accrued for the expected outcome of uncertain tax matters and believes such liabilities represent a reasonable provision for taxes ultimately expected to be paid. However, the Company may need to accrue additional income tax expense and our liability may need to be adjusted as new information becomes known and as these tax examinations continue to progress, or as settlements or litigations occur.

The following is a summary of major tax jurisdictions for which tax authorities may assert additional taxes based upon tax years currently under audit and subsequent years that could be audited by the respective taxing authorities.


Jurisdiction						Fiscal Years Open to Examination
U.S. Federal						2022-2024
U.S. States						Various
Australia						2021-2024
U.K.						2000, 2003, 2005 and 2012-2024

It is reasonably possible that uncertain tax positions may increase or decrease in the next fiscal year, however, actual developments in this area could differ from those currently expected. As of June 30, 2025, approximately $32 million would affect the Company’s effective income tax rate, if and when recognized in future fiscal years. It is reasonably possible that the amount of uncertain tax liabilities which may be resolved within the next fiscal year is between the range of approximately nil and $67 million, a portion of which will affect our effective income tax rate, primarily as a result of the settlement of tax examinations and the lapsing of statutes of limitations.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Other

On July 4, 2025, H.R. 1 - One Big Beautiful Bill Act (“OBBBA”) was enacted into law. The OBBBA makes permanent key elements of the Tax Cuts and Jobs Act (“Tax Act”), including 100% bonus depreciation, domestic research cost expensing, and the business interest expense limitation. Certain provisions of OBBBA will become effective for the Company’s 2026 fiscal year, while others will take effect beginning in fiscal 2027. ASC 740 requires the effects of changes in tax rates and laws on deferred tax balances to be recognized in the period in which the legislation is enacted. Consequently, the Company will evaluate all U.S. deferred tax balances and any other impacts to its financial statements as a result of the OBBBA in the first quarter of fiscal 2026.

The Organization for Economic Cooperation and Development (“OECD”) has proposed a global minimum tax of 15% of reported profits (“Pillar 2”) that has been agreed upon in principle by over 140 countries. Since the proposal, many countries, including the U.K. and Australia, incorporated Pillar 2 model rule concepts into their domestic laws. Although the model rules provide a framework for applying the minimum tax, countries may enact Pillar 2 slightly differently than the model rules and on different timelines and may adjust domestic tax incentives in response to Pillar 2. Following an executive order issued by the United States in January 2025 announcing opposition to aspects of these rules, the G7 issued a statement on June 28, 2025 acknowledging that U.S. parented groups would be exempt from certain aspects of Pillar 2 in recognition of existing U.S. minimum tax rules to which they are subject. The statement acknowledges that these issues have relevance to the wider group of countries in the OECD Inclusive Framework with a view to reaching an acceptable solution for all.

While these rules are not currently expected to have a material impact on the Company’s results of operations, their application continues to evolve, and the outcome may alter aspects of how the Company’s tax obligations are determined in countries in which it does business. In addition, while several jurisdictions have rolled back their digital services taxes, certain jurisdictions continue to maintain, or have enacted new digital services taxes. Those taxes have had limited impact on the Company’s overall tax obligations, but the Company continues to monitor them.

Prior to the enactment of the Tax Act, the Company’s undistributed foreign earnings were considered permanently reinvested and as such, United States federal and state income taxes were not previously recorded on these earnings. As a result of the Tax Act, substantially all of the Company’s earnings in foreign subsidiaries generated prior to the enactment of the Tax Act were deemed to have been repatriated and taxed accordingly. As of June 30, 2025, the Company has approximately $1 billion of undistributed foreign earnings generated after the Tax Act that it intends to reinvest permanently. It is not practicable to estimate the amount of tax that might be payable if these earnings were repatriated. The Company may repatriate future earnings of certain foreign subsidiaries in which case the Company may be required to accrue and pay additional taxes, including any applicable foreign withholding taxes and income taxes.

During the fiscal years ended June 30, 2025, 2024 and 2023, the Company paid gross income taxes of $208 million, $156 million and $149 million, respectively, and received income tax refunds of $4 million, $17 million and $13 million, respectively.

NOTE 20. SEGMENT INFORMATION

The Company manages and reports its businesses in the following five segments:

Dow Jones**—The Dow Jones segment consists of Dow Jones, a global provider of news and business information whose products target individual consumers and enterprise customers and are distributed through a variety of media channels including websites, mobile apps, newspapers, newswires, newsletters, magazines, proprietary databases, live journalism, video and podcasts. Dow Jones’s consumer products include premier brands such as The Wall Street Journal, Barron’s, MarketWatch and Investor’s Business Daily. Dow Jones’s professional information products, which target enterprise customers, include Dow Jones Risk & Compliance, a leading provider of data and other solutions to help customers identify and manage regulatory, corporate, geopolitical, security and reputational risk with tools focused on financial crime, sanctions, trade and other risks and compliance requirements, Dow Jones Energy, a leading provider of pricing data, news, insights, analysis and other information for energy commodities and key base chemicals, Factiva, a leading provider of global business content, and Dow Jones Newswires, which distributes real-time business news, information and analysis to financial professionals and investors.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Digital Real Estate Services—The Digital Real Estate Services segment consists of the Company’s 61.4% interest in REA Group and 80% interest in Move. The remaining 20% interest in Move is held by REA Group. REA Group is a market-leading digital media business specializing in property and is listed on the Australian Securities Exchange (“ASX”) (ASX: REA). REA Group advertises property and property-related services on its websites and mobile apps, including Australia’s leading residential, commercial and share property websites, realestate.com.au, realcommercial.com.au and Flatmates.com.au, property.com.au and property portals in India. In addition, REA Group provides property-related data to the financial sector and financial services through a digital property search and financing experience and a mortgage broking offering.

Move is a leading provider of digital real estate services in the U.S. and primarily operates Realtor.com®, a premier real estate information, advertising and services platform. Move offers real estate advertising solutions to agents and brokers, including its RealPRO SelectSM (formerly Market VIPSM), ConnectionsSM Plus and Listing Toolkit products as well as its referral-based services, ReadyConnect ConciergeSM and RealChoiceTM Selling. Move also offers online tools and services to do-it-yourself landlords and tenants.

Book Publishing—The Book Publishing segment consists of HarperCollins, the second largest consumer book publisher in the world, with operations in 15 countries and particular strengths in general fiction, nonfiction, children’s and religious publishing. HarperCollins owns more than 120 branded publishing imprints, including Harper, William Morrow, Mariner, HarperCollins Children’s Books, Avon, Harlequin and Christian publishers Zondervan and Thomas Nelson, and publishes works by well-known authors such as Harper Lee, George Orwell, Agatha Christie and Zora Neale Hurston, as well as global author brands including J.R.R. Tolkien, C.S. Lewis, Daniel Silva, Karin Slaughter and Dr. Martin Luther King, Jr. It is home to many beloved children’s books and series and a significant Christian publishing business.
News Media**—The News Media segment consists primarily of News Corp Australia, News UK and the New York Post and includes The Australian, The Daily Telegraph, Herald Sun, The Courier Mail, The Advertiser and the news.com.au website in Australia, The Times, The Sunday Times, The Sun, The Sun on Sunday and thesun.co.uk in the U.K. and the-sun.com in the U.S. This segment also includes Wireless Group, operator of talkSPORT, the leading sports radio network in the U.K., Talk in the U.K., Australian News Channel, which operates the Sky News Australia network, Australia’s 24-hour multi-channel, multi-platform news service, and Storyful, a social media content agency.
Other**—The Other segment consists primarily of general corporate overhead expenses, strategy costs and costs related to the U.K. Newspaper Matters.

The Company’s chief operating decision maker (“CODM”) is its Chief Executive Officer. Segment EBITDA is the primary measure used by the Company’s CODM to evaluate the performance of, and allocate resources within, the Company’s businesses. The CODM uses Segment EBITDA to compare actual results to budget and uses this information to, among other things, allocate resources such as incentive compensation to segment managers. Segment EBITDA is defined as revenues less operating expenses and selling, general and administrative expenses. Segment EBITDA does not include: depreciation and amortization, impairment and restructuring charges, equity losses of affiliates, interest (expense) income, net, other, net, income tax (expense) benefit and net income (loss) from discontinued operations, net of tax. Segment EBITDA may not be comparable to similarly titled measures reported by other companies, since companies and investors may differ as to what items should be included in the calculation of Segment EBITDA. Segment EBITDA provides management, investors and equity analysts with a measure to analyze the operating performance of each of the Company’s business segments and its enterprise value against historical data and competitors’ data, although historical results may not be indicative of future results (as operating performance is highly contingent on many factors, including customer tastes and preferences).

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Segment information is summarized as follows:


	For the fiscal year ended June 30, 2025
	Dow Jones		Digital Real Estate Services		Book Publishing		News Media		Other		Total
	(in millions)
Segment information:
Revenues	$	2,331	$	1,802	$	2,149	$	2,170	$	—	$	8,452
Significant segment expenses:
Operating expenses	(958)		(186)		(1,450)		(1,142)		—		(3,736)
Selling, general and administrative	(785)		(1,015)		(403)		(875)		(223)		(3,301)
Segment EBITDA	$	588	$	601	$	296	$	153	$	(223)	$	1,415
Depreciation and amortization											(459)
Impairment and restructuring charges											(132)
Equity losses of affiliates											(15)
Interest income, net											3
Other, net											111
Income before income tax expense from continuing operations											923
Income tax expense from continuing operations											(275)
Net income from continuing operations											648
Net income from discontinued operations, net of tax											692
Net income											$	1,340


	For the fiscal year ended June 30, 2024
	Dow Jones		Digital Real Estate Services		Book Publishing		News Media		Other		Total
	(in millions)
Segment information:
Revenues	$	2,231	$	1,658	$	2,093	$	2,270	$	—	$	8,252
Significant segment expenses:
Operating expenses	(919)		(190)		(1,441)		(1,264)		—		(3,814)
Selling, general and administrative	(770)		(960)		(383)		(873)		(211)		(3,197)
Segment EBITDA	$	542	$	508	$	269	$	133	$	(211)	$	1,241
Depreciation and amortization											(440)
Impairment and restructuring charges											(133)
Equity losses of affiliates											(6)
Interest expense, net											(18)
Other, net											(59)
Income before income tax expense from continuing operations											585
Income tax expense from continuing operations											(206)
Net income from continuing operations											379
Net loss from discontinued operations, net of tax											(25)
Net income											$	354

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


	For the fiscal year ended June 30, 2023
	Dow Jones		Digital Real Estate Services		Book Publishing		News Media		Other		Total
	(in millions)
Segment information:
Revenues	$	2,153	$	1,539	$	1,979	$	2,341	$	—	$	8,012
Significant segment expenses:
Operating expenses	(934)		(201)		(1,469)		(1,307)		—		(3,911)
Selling, general and administrative	(725)		(881)		(343)		(861)		(202)		(3,012)
Segment EBITDA	$	494	$	457	$	167	$	173	$	(202)	$	1,089
Depreciation and amortization											(415)
Impairment and restructuring charges											(121)
Equity losses of affiliates											(127)
Interest expense, net											(49)
Other, net											3
Income before income tax expense from continuing operations											380
Income tax expense from continuing operations											(152)
Net income from continuing operations											228
Net loss from discontinued operations, net of tax											(41)
Net income											$	187


	For the fiscal years ended June 30,
	2025		2024		2023
	(in millions)
Depreciation and amortization:
Dow Jones	$	156	$	153	$	152
Digital Real Estate Services	146		137		123
Book Publishing	54		54		49
News Media	99		91		84
Other	4		5		7
Total Depreciation and amortization	$	459	$	440	$	415


	For the fiscal years ended June 30,
	2025		2024		2023
	(in millions)
Capital expenditures:
Dow Jones	$	130	$	100	$	91
Digital Real Estate Services	154		131		130
Book Publishing	17		32		42
News Media	103		93		83
Other	3		1		1
Total Capital expenditures	$	407	$	357	$	347

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


	As of June 30,
	2025		2024
	(in millions)
Total assets:
Dow Jones	$	4,134	$	4,139
Digital Real Estate Services	3,202		3,020
Book Publishing	2,767		2,647
News Media	2,102		2,018
Other(a)	2,283		1,858
Investments	1,016		429
Assets from discontinued operations(b)	—		2,573
Total assets	$	15,504	$	16,684

(a)The Other segment primarily includes Cash and cash equivalents.

(b)See Note 3—Discontinued Operations


	As of June 30,
	2025		2024
	(in millions)
Goodwill and intangible assets, net:
Dow Jones	$	3,256	$	3,248
Digital Real Estate Services	1,798		1,828
Book Publishing	941		914
News Media	308		294
Other	—		—
Total Goodwill and intangible assets, net	$	6,303	$	6,284

Geographic Segments


	For the fiscal years ended June 30,
	2025		2024		2023
	(in millions)
Revenues:(a)
U.S. and Canada(b)	$	4,121	$	4,004	$	3,965
Europe(c)	1,710		1,734		1,666
Australasia and Other(d)	2,621		2,514		2,381
Total Revenues	$	8,452	$	8,252	$	8,012

(a)Revenues are attributed to region based on location of customer.

(b)Revenues include approximately $4.0 billion for fiscal 2025, $3.9 billion for fiscal 2024 and $3.8 billion for fiscal 2023 from customers in the U.S.

(c)Revenues include approximately $1.2 billion for fiscal 2025, $1.3 billion for fiscal 2024 and $1.2 billion for fiscal 2023 from customers in the U.K.

(d)Australasia comprises Australia, Asia, Papua New Guinea and New Zealand. Revenues include approximately $2.2 billion for fiscal 2025, $2.1 billion for fiscal 2024 and $2.0 billion for fiscal 2023 from customers in Australia.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


	As of June 30,
	2025		2024
	(in millions)
Long-lived assets:(a)
U.S. and Canada	$	1,415	$	1,414
Europe	924		858
Australasia and Other	781		762
Total long-lived assets	$	3,120	$	3,034

(a)Reflects total assets less current assets, goodwill, intangible assets, investments and deferred income tax assets.

There is no material reliance on any single customer. Revenues are attributed to countries based on location of customers.

NOTE 21. ADDITIONAL FINANCIAL INFORMATION

Other Non-Current Assets

The following table sets forth the components of Other non-current assets included in the Balance Sheets:


	As of June 30,
	2025		2024
	(in millions)
Royalty advances to authors	$	377	$	375
Non-current receivables	320		300
Retirement benefit assets	165		147
Other	138		135
Total Other non-current assets	$	1,000	$	957

Other Current Liabilities

The following table sets forth the components of Other current liabilities included in the Balance Sheets:


	As of June 30,
	2025		2024
	(in millions)
Royalties and commissions payable	$	202	$	215
Allowance for sales returns	138		141
Current operating lease liabilities	74		89

Other	300		327
Total Other current liabilities	$	714	$	772

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Accumulated Other Comprehensive Loss

The components of Accumulated other comprehensive loss were as follows:


	For the fiscal years ended June 30,
	2025		2024		2023
	(in millions)
Accumulated other comprehensive loss, net of tax:




Cash flow hedge adjustments:
Balance, beginning of year	22		33		21
Fiscal year activity(a)	(13)		(11)		12
Balance, end of year	9		22		33
Benefit plan adjustments:
Balance, beginning of year	(309)		(328)		(321)
Fiscal year activity(b)	(18)		19		(7)
Balance, end of year	(327)		(309)		(328)
Foreign currency translation adjustments:
Balance, beginning of year	(964)		(952)		(970)
Fiscal year activity	(261)		(12)		18
Balance, end of year	(1,225)		(964)		(952)




Total accumulated other comprehensive loss, net of tax:
Balance, beginning of year	(1,251)		(1,247)		(1,270)
Fiscal year activity, net of income taxes(c)	(292)		(4)		23
Balance, end of year	$	(1,543)	$	(1,251)	$	(1,247)

(a)Net of income tax expense (benefit) of $(4) million, $(4) million and $4 million for the fiscal years ended June 30, 2025, 2024 and 2023 respectively.

(b)Net of income tax expense (benefit) of $(7) million, $6 million and $(2) million for the fiscal years ended June 30, 2025, 2024 and 2023, respectively.

(c)Excludes $(33) million, $(1) million and $(18) million relating to noncontrolling interests for the fiscal years ended June 30, 2025, 2024 and 2023, respectively.

Other, net

The following table sets forth the components of Other, net included in the Statements of Operations:


	For the fiscal years ended June 30,
	2025		2024		2023
	(in millions)
Remeasurement of equity securities	$	21	$	(13)	$	(9)




Gain on sale of investment in PropertyGuru	87		—		—
Other	3		(46)		12
Total Other, net	$	111	$	(59)	$	3

Supplemental Cash Flow Information

The following table sets forth the Company’s gross cash paid for interest and taxes:


	For the fiscal years ended June 30,
	2025		2024		2023
	(in millions)
Cash paid for interest	$	93	$	97	$	61
Cash paid for taxes	208		156		149

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 22. VALUATION AND QUALIFYING ACCOUNTS


	Balance at beginning of year		Additions		Acquisitions and disposals		Utilization		Foreign exchange		Balance at end of year
	(in millions)
Fiscal 2025
Allowances for doubtful accounts	$	(58)	$	(8)	$	—	$	10	$	—	$	(56)
Allowances for sales returns	(141)		(420)		(1)		427		(3)		(138)
Deferred tax valuation allowance	(1,541)		(549)		—		27		(25)		(2,088)
Fiscal 2024
Allowances for doubtful accounts	$	(52)	$	(13)	$	(2)	$	9	$	—	$	(58)
Allowances for sales returns	(154)		(446)		—		458		1		(141)
Deferred tax valuation allowance	(1,528)		(9)		(7)		5		(2)		(1,541)
Fiscal 2023
Allowances for doubtful accounts	$	(50)	$	(12)	$	—	$	10	$	—	$	(52)
Allowances for sales returns	(173)		(516)		—		536		(1)		(154)
Deferred tax valuation allowance	(1,477)		(64)		—		15		(2)		(1,528)

NOTE 23. QUARTERLY DATA (UNAUDITED)

The following tables present quarterly selected Company financial information for the fiscal years ended June 30, 2025 and 2024:


	For the three months ended
	September 30, 2024(a)		December 31, 2024(a)		March 31, 2025(a)		June 30, 2025
	(in millions, except per share amounts)
Fiscal 2025
Revenues	$	2,096	$	2,238	$	2,009	$	2,109
Net income from continuing operations	149		306		107		86
Net (loss) income from discontinued operations, net of tax	(5)		(23)		30		690
Net income	144		283		137		776
Net income attributable to noncontrolling interests from continuing operations	(31)		(78)		(26)		(33)
Net loss (income) attributable to noncontrolling interests from discontinued operations	6		10		(8)		—
Net income attributable to News Corporation stockholders	$	119	$	215	$	103	$	743

Net income (loss) attributable to News Corporation stockholders per share:
Basic:
Continuing operations	$	0.21	$	0.40	$	0.14	$	0.09
Discontinued operations	$	—	$	(0.02)	$	0.04	$	1.22
	$	0.21	$	0.38	$	0.18	$	1.31
Diluted:
Continuing operations	$	0.21	$	0.40	$	0.14	$	0.09
Discontinued operations	$	—	$	(0.02)	$	0.04	$	1.22
	$	0.21	$	0.38	$	0.18	$	1.31

(a)For convenience purposes, references to September 30, 2024, December 31, 2024 and March 31, 2025 refer to September 29, 2024, December 29, 2024 and March 30, 2025, respectively.

NEWS CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


	For the three months ended
	September 30, 2023(a)		December 31, 2023		March 31, 2024		June 30, 2024
	(in millions, except per share amounts)
Fiscal 2024
Revenues	$	2,031	$	2,135	$	1,994	$	2,092
Net income from continuing operations	54		194		64		67
Net income (loss) from discontinued operations, net of tax	4		(11)		(22)		4
Net income	58		183		42		71
Net income attributable to noncontrolling interests from continuing operations	(30)		(34)		(22)		(24)
Net loss attributable to noncontrolling interests from discontinued operations	2		7		10		3
Net income attributable to News Corporation stockholders	$	30	$	156	$	30	$	50

Net income (loss) attributable to News Corporation stockholders per share:
Basic:
Continuing operations	$	0.04	$	0.28	$	0.07	$	0.08
Discontinued operations	$	0.01	$	(0.01)	$	(0.02)	$	0.01
	$	0.05	$	0.27	$	0.05	$	0.09
Diluted:
Continuing operations	$	0.04	$	0.28	$	0.07	$	0.08
Discontinued operations	$	0.01	$	(0.01)	$	(0.02)	$	0.01
	$	0.05	$	0.27	$	0.05	$	0.09

(a)For convenience purposes, references to September 30, 2023 refer to October 1, 2023.

NOTE 24. SUBSEQUENT EVENTS

Dividend Declaration

In August 2025, the Company declared a semi-annual cash dividend of $0.10 per share for Class A Common Stock and Class B Common Stock. This dividend is payable on October 8, 2025 to stockholders of record as of September 10, 2025.

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