Fox Corporation delivered a standout QQ3 2025 on a headline-driven revenue surge and a record-free-cash-flow (FCF) milestone, underpinned by a record Super Bowl LIX and the accelerating performance of Tubi. Total revenues rose approximately 27% year over year, supported by an 65% increase in company-wide advertising revenue, including over $800 million of gross advertising generated by the Super Bowl and related events. The quarter also showcased robust affiliate fee growth (3% YoY) and meaningful expansion in other revenues (up 20%), largely driven by sports sub-licensing in the Cable segment. Net income declined versus the prior-year period due to higher rights amortization and Super Bowl production costs, but adjusted metrics remained resilient with adjusted net income of roughly $507 million and adjusted EPS around $1.10, up modestly year over year.
Strategically, Fox reinforced its high-value asset portfolio across News, Sports, and Entertainment, reiterated the importance of live events and news, and advanced its D2C agenda via Fox One. Fox One is targeted at cordless subscribers with pricing aligned to wholesale-distributor economics and is planned for launch before the upcoming football season, signaling a material shift toward cord-cutting monetization while preserving traditional affiliate economics. The balance sheet remains fortified with roughly $4.8 billion in cash and about $7.2 billion in debt, enabling continued buybacks (>$6.4 billion since 2019) and a flexible capital allocation stance. Going forward, management highlighted ongoing tailwinds from News and Tubi, potential FIFA-related timing in the back half of the fiscal horizon, and a deliberate, high-quality investment pace in digital initiatives. Investors should monitor ad-market strength, right-cost dynamics (sports rights amortization), subscriber trends in both cable and D2C ecosystems, and regulatory/licensing developments around FanDuel and affiliate arrangements.
Overall, Fox is navigating a complex media environment with a differentiated asset mix, meaningful free-cash-flow generation, and a clear path to monetizing cord-nevers through Fox One, while preserving the core economics of its traditional distribution relationships.