Fox Corporation delivered a strong QQ2 2025 performance, underscored by a 20% year-over-year revenue increase to $5.08 billion and a 123% surge in EBITDA to a Q2 record of $781 million. The improvement was broad-based, anchored by elevated advertising revenues (up 21%), robust political ad spend at local stations, continued strength in NFL/MLB/postseason viewership, and growing monetization of Tubi (advertising up 31%). Affiliate fee revenues rose 6% as rate-based renewals offset ongoing subscriber declines, reflecting Fox’s strategy of optimizing the value of its channel portfolio while actively managing mix and pricing with distributors. Management emphasized that all affiliate renewals impacting fiscal 2025 have been completed, providing better visibility into 2025 revenue and profitability trajectories.
Management signaled a staged path toward longer-term growth through near-term, high‑quality cash flow drivers (advertising, affiliate pricing, Tubi monetization) and strategic optionality in direct-to-consumer (D2C) initiatives and sports betting licensing. Fox reiterated a D2C plan targeting cord-cutters and cord-nevers with a modest subscriber footprint and low incremental rights costs, expected to launch by year-end. The company also confirmed that Venu, its sports streaming JV, has not moved forward, which reduces execution risk and capital outlay but preserves Fox’s focus on broad distribution. In the near term, Fox remains disciplined on capital returns, having repurchased about $6.15 billion of stock since 2019 and initiated a 27% semiannual dividend, with cash on hand of approximately $3.3 billion against roughly $7.2 billion of debt.
Overall, Fox’s QQ2 2025 results reinforce a diversified media portfolio with resilient ad demand (including political), meaningful growth in digital/video platforms (Tubi), and optionality from D2C and sports betting. The key questions for investors center on the trajectory of subscriber declines versus affiliate pricing power, the pace of Tubi’s path to profitability, the eventual contribution of any D2C initiative to EBITDA, and the timing/financial impact of sports betting licensing across multiple states. The near-term path appears favorable, with meaningful upside potential if political ad markets remain robust, sports viewing metrics stay elevated, and D2C economics prove accretive.