Fox Corporation

What they do

FOX manages four operating segments reported as two reportable segments: Cable Network Programming and Television; Credible and the FOX Studio Lot are presented within Corporate and Other. Cable Network Programming produces and licenses news and sports content distributed through traditional and virtual MVPDs and other digital platforms, primarily in the U.S. Television produces, acquires, markets and distributes programming through the FOX broadcast network, the Tubi AVOD service, 29 full power broadcast television stations (11 duopolies; 18 FOX affiliates and 11 MyNetworkTV affiliates) and other digital platforms. Corporate and Other principally includes FOX One, the direct-to-consumer subscription streaming service launched in August 2025, Credible, the FOX Studio Lot and corporate overhead.

Revenue drivers

• Cable Network Programming distribution — Produces and licenses news and sports content to traditional MVPDs, virtual MVPDs and other digital platforms; distribution revenue grew 7% in the June 2026 quarter and 5% for full year fiscal 2026.
• Advertising — Advertising revenue is generated across the Television segment and cable networks; it rose 78% in the June 2026 quarter on the FIFA Men's World Cup and grew 7% for full year fiscal 2026, aided by Tubi digital growth and partly offset by the absence of the prior-year Super Bowl LIX and lower political advertising.
• Tubi AVOD — Tubi is the advertising-supported video-on-demand service within the Television segment, cited as a contributor to continued digital advertising growth for both the quarter and full year.
• Content and other — Includes production companies that produce content for the Company and third parties plus sports sublicensing; $262 million in the June 2026 quarter versus $269 million a year earlier, and up 4% for full year fiscal 2026 on higher sports sublicensing revenue.

Recent performance

For the quarter ended June 30, 2026, FOX reported total revenue of $4.21 billion, up $925 million or 28% year over year. Quarterly net income was $696 million versus $719 million a year earlier; net income attributable to stockholders was $691 million ($1.61 per share) versus $717 million ($1.57 per share). Adjusted EBITDA was $1.20 billion, up $256 million or 27%, as higher revenue was partly offset by higher sports programming rights amortization and production costs tied to the World Cup and costs from the FOX One launch. For the nine months ended March 31, 2026, total revenues were $12.914 billion versus $13.013 billion, with advertising down 6% to $5.423 billion and distribution up 3% to $6.024 billion. Full year fiscal 2026 revenue was $17.13 billion, up 5%, with net income of $1.73 billion and Adjusted EBITDA of $3.91 billion.

Strategy

FOX completed fiscal 2026 with record top-line revenue and record EBITDA, according to Executive Chair and CEO Lachlan Murdoch, citing the FIFA Men's World Cup broadcast, the launch of the FOX One direct-to-consumer streaming service and Tubi's position as a leading streaming service. On June 14, 2026, FOX and Roku entered a definitive merger agreement under which FOX would acquire Roku for $96.00 in cash and 0.9693 shares of FOX Class A Common Stock per Roku share, with the exchange ratio fixed and not subject to adjustment. Roku would become a wholly-owned FOX subsidiary after closing; the transaction requires FOX and Roku stockholder approvals, Hart-Scott-Rodino clearance, other antitrust and investment screening approvals and customary conditions. Roku founder, Chairman and CEO Anthony Wood and certain associated trusts and entities holding at least a majority of Roku voting power signed a voting and support agreement in favor of the transaction.

Risks

• Roku deal completion — The Roku Merger is subject to FOX and Roku stockholder approvals, Hart-Scott-Rodino clearance, other antitrust and investment screening approvals and customary conditions, and could be delayed or not completed.
• Roku termination fees — Each party owes the other approximately $866 million if the Merger Agreement is terminated in certain circumstances, including a board recommendation change, and FOX would owe Roku approximately $1.2 billion if terminated over certain regulatory approval failures or a permanent antitrust or investment screening restraint.
• Advertising cyclicality and event timing — Advertising revenue fell 24% in the March 2026 quarter and 6% for the nine months ended March 31, 2026, and fiscal 2026 growth depended on the World Cup while the prior year included Super Bowl LIX and higher political advertising.
• Programming and launch costs — Higher sports programming rights amortization and production costs, led by the World Cup, plus FOX One launch costs, partially offset the June 2026 quarter revenue increase.

Outlook

Management described fiscal 2026 as an exceptional year underpinned by record revenue and record EBITDA and said the company enters fiscal 2027 exceptionally well positioned to drive sustained growth and long-term shareholder value. The company highlighted the announced Roku acquisition as transforming the scope and growth profile of the company, subject to the closing conditions described in the Merger Agreement. No specific financial guidance figures were provided in the excerpts.