Breaking Down Fox Corporation (FOX) Financial Health: Key Insights for Investors

You're looking at Fox Corporation's (FOX) financials, and honestly, the headline numbers from fiscal year 2025 tell a story of a traditional media company that's defintely learned to print cash while navigating the digital shift. The direct takeaway is this: the company is generating massive free cash flow, but the market is still debating if that growth is sustainable past the election cycle and major sports events like Super Bowl LIX. Here's the quick math: Fox Corporation delivered total revenues of $16.30 billion, a strong 17% jump year-over-year, which translated into a net income of $2.26 billion and a near-doubling of Free Cash Flow (FCF) to $2.99 billion. That kind of cash generation-driven by political advertising and the continued acceleration of their ad-supported streaming platform, Tubi-gives management serious financial muscle, hence the $5 billion increase to their share repurchase program. But, you have to ask yourself, can they maintain that momentum once the political ad spend cools off, or is the strong 'Buy' consensus and average analyst price target of $66.08 just banking on the company's ability to keep returning capital to shareholders.

Revenue Analysis

You need to know where Fox Corporation (FOX) is actually making its money, and the fiscal year 2025 results show a clear, event-driven surge. The company posted total full-year revenues of $16.30 billion, a significant jump of 17% from the prior year. That kind of growth is defintely not passive; it tells a story about strategic asset value and cyclical tailwinds.

The revenue story for FOX isn't just one stream; it's a mix of three core sources, and the biggest growth came from the most volatile one: advertising. Here is the breakdown of the primary revenue sources and their growth for the fiscal year 2025:

• Advertising Revenues: Increased 26% to $6.9 billion.
• Affiliate Fee Revenues: Increased 5% to $7.7 billion.
• Other Revenues: Jumped 47% to nearly $1.8 billion.

Honesty, the 26% surge in advertising revenue is the headline. This wasn't organic, steady growth; it was heavily bolstered by two major, near-term events: the impact of Super Bowl LIX and higher-than-usual political advertising revenues. Plus, the continued digital growth of the ad-supported video on demand (AVOD) service, Tubi, is a structural positive that helped keep the momentum going.

The $7.7 billion in affiliate fee revenue-the fees FOX charges cable and satellite providers-is still the largest single category, but its 5% growth is slower. This highlights the persistent industry challenge: cord-cutting. For example, the estimated subscribers for FOX News dropped from 67 million to 61 million, which is a real headwind the 5% rate increases have to fight against. You can see more on the ownership landscape in Exploring Fox Corporation (FOX) Investor Profile: Who's Buying and Why?

When you look at the business segments, the Television segment is the clear revenue leader. Here's the quick math on how each segment contributed to the total 2025 revenue:

The Television segment, which includes the FOX broadcast network, local stations, and Tubi, is the engine. Its 18% growth was fueled by the massive advertising gains. The Cable Network Programming segment, housing FOX News and FS1, also grew robustly, but its revenue base is smaller. The jump in Other Revenues, almost half, was primarily due to higher sports sublicensing revenues, which is a smart way to monetize content rights you don't use yourself. What this estimate hides is the reliance on a strong political ad cycle and major sporting events, which means 2026 will face tough comparisons unless another catalyst emerges.

Finance: draft a sensitivity analysis for 2026 revenue with three scenarios: high, medium, and low political advertising spend by next Friday.

Profitability Metrics

You want to know if Fox Corporation (FOX) is a profitable business, especially compared to its peers, and the short answer is yes-very much so. The company's profitability in fiscal year 2025, which ended June 30, was defintely a standout, showing significant strength in operating efficiency and bottom-line profit, even as the media industry grapples with the shift from linear TV to streaming.

For the full fiscal year 2025, Fox Corporation reported total revenue of $16.30 Billion. The key takeaway for investors is that the company is converting a substantial portion of that revenue into profit, particularly when you look past the cost of content and operations.

Here's the quick math on the core profitability margins for FY 2025:

• Gross Profit: $5.40 Billion, resulting in a Gross Profit Margin of 33.11%.
• Operating Profit: $3.23 Billion, translating to an Operating Profit Margin of 19.81%.
• Net Profit: $2.29 Billion, yielding a Net Profit Margin of 13.88%.

Operational Efficiency and Cost Management

The jump from a 33.11% Gross Profit Margin to a 19.81% Operating Profit Margin tells an important story about operational efficiency. That 13.3 percentage point difference covers all the selling, general, and administrative (SG&A) expenses, like salaries, marketing, and corporate overhead. Fox Corporation's ability to maintain a nearly 20% operating margin in a high-cost content and advertising environment is a testament to disciplined cost management.

The trends over time are also encouraging. Net Income grew from $1.55 billion in the prior year to $2.29 billion in FY2025, a substantial increase that shows the company's strategy is working. This growth was driven by high-impact, high-margin events like the Super Bowl LIX, higher political advertising revenues, and the continued expansion of the Tubi ad-supported video on demand (AVOD) service. Still, you have to watch the rising costs, specifically the higher sports programming rights amortization and production costs, which are the main expense headwinds.

Outperforming the Industry

To be fair, a 13.88% Net Profit Margin is excellent, but its true value is only clear when you compare it to the broader industry. The media and entertainment sector is incredibly competitive, and many companies are still struggling with the transition to digital, leading to thin or even negative margins.

When you look at the industry averages for November 2025, Fox Corporation's profitability looks even stronger. It's a clear signal that their focused strategy on live news and sports is paying off big time.

What this estimate hides is that while Fox Corporation's Gross Margin of 33.11% is slightly below the industry averages for Broadcasting (37.8%) and Entertainment (42.1%), the company crushes the competition on the bottom line. A 13.88% Net Profit Margin is a powerhouse compared to the Broadcasting industry's average of -6.6% and the broader Entertainment average of 1.2%. This huge difference confirms that Fox Corporation's operating model is far more efficient at converting gross profit into net income than its peers.

Your next step should be to dive into the segment-level performance to see which parts of the business-Cable Network Programming or Television-are driving this superior profitability. You can start by reviewing the company's strategic goals here: Mission Statement, Vision, & Core Values of Fox Corporation (FOX).

Debt vs. Equity Structure

When you look at how Fox Corporation (FOX) funds its operations, you see a balanced, conservative approach that leans more on equity than debt, which is a good sign for stability. The company's strategy is defintely one of financial prudence, which is what you want to see in the media sector right now.

For the 2025 fiscal year, Fox Corporation's total debt stood at approximately $7.46 billion. This debt is overwhelmingly long-term, meaning the company has structured its obligations to avoid near-term liquidity crunches.

• Long-term debt (FY2025): $7.42 billion.
• Short-term debt (FY2025): $41.00 million.

The low short-term debt is a clear indicator that the company is not relying on quick-turnaround financing, a move that minimizes interest rate risk.

The Debt-to-Equity (D/E) Ratio: A Clear Picture

The Debt-to-Equity (D/E) ratio is your quick measure of financial leverage-how much debt the company uses to finance its assets relative to shareholder equity. For Fox Corporation in FY2025, the D/E ratio was approximately 0.62. Here's the quick math: with total debt around $7.46 billion and total equity (Shareholders' Equity) at about $12.21 billion, the ratio is well below 1.0.

A D/E of 0.62 means for every dollar of shareholder equity, the company uses 62 cents of debt. This is a very healthy number, especially when you compare it to the industry.

Fox Corporation sits comfortably between its peers, showing more leverage than News Corp. but less than Netflix, Inc. This indicates management is willing to use debt for growth but maintains a significant cushion.

Recent Capital Activity and Financial Policy

The company's financing policy is designed to keep leverage low, typically targeting a leverage ratio (Debt/EBITDA) between 2x and 3x. This conservative stance is reflected in its investment-grade credit ratings. S&P Global Ratings has affirmed the senior unsecured debt at 'BBB', and Moody's Investors Service has affirmed it at 'Baa2', both with a stable outlook. These ratings signal low credit risk, which translates to lower borrowing costs.

In terms of recent activity, the focus has been on managing existing debt and returning capital to shareholders, not on large new debt issuances. For example, a corporate bond with a 3.05% coupon matured in April 2025, suggesting a repayment or refinancing event that kept the overall debt load stable. The company's cash flow for the quarter ending September 30, 2025, shows a net cash use of $598 million in financing activities, with a significant portion going to $250 million in share repurchases and $138 million in dividends.

This balancing act-using debt sparingly while prioritizing shareholder returns-is a hallmark of a mature, cash-generative business. They are using their cash to buy back stock and pay dividends, essentially funding growth and shareholder value with internal cash flow and a stable debt base, rather than constantly tapping the debt or equity markets for new capital. You can read more about the company's core principles in their Mission Statement, Vision, & Core Values of Fox Corporation (FOX).

Liquidity and Solvency

You want to know if Fox Corporation (FOX) has the short-term cash to cover its bills, and the answer for fiscal year 2025 is a resounding yes. The company's liquidity position is defintely strong, driven by robust cash generation and a conservative balance sheet management.

Assessing Fox Corporation's Liquidity

Liquidity ratios tell the quick story of a company's ability to pay its immediate obligations. For FOX in fiscal year 2025, these numbers show a business that is not just solvent, but flush with short-term capital. You want to see a Current Ratio (Current Assets divided by Current Liabilities) well above 1.0, and FOX delivered significantly higher than that.

• Current Ratio: The ratio stood at 2.92 for FY2025, which is excellent.
• Quick Ratio: The Quick Ratio (or Acid-Test Ratio), which excludes inventory, was nearly as high at 2.70.

A Quick Ratio of 2.70 means that for every dollar of current debt, Fox Corporation has $2.70 in its most liquid assets-cash, receivables, and short-term investments-to cover it. That's a massive buffer, suggesting virtually no near-term liquidity concerns.

Working Capital Trends: A $5.5 Billion Buffer

Working capital (Current Assets minus Current Liabilities) is the raw dollar amount available to fund day-to-day operations. For FY2025, Fox Corporation reported $8.43 billion in Total Current Assets against $2.90 billion in Total Current Liabilities.

Here's the quick math: $8.43 Billion (Current Assets) - $2.90 Billion (Current Liabilities) = $5.53 Billion in Working Capital.

This substantial working capital position is a clear strength. What this estimate hides is the inherent seasonality in the media business. The company notes that the first half of the fiscal year typically sees a concentration of payments for sports rights and a buildup of advertising-related receivables, which then reverse in the second half. So, while the annual figure is strong, you should expect temporary dips in working capital during the first two quarters, but the annual performance remains very healthy.

Cash Flow Statements Overview

Cash flow is where the rubber meets the road; it shows you the quality of earnings. Fox Corporation's cash flow performance in FY2025 was exceptional, with Free Cash Flow (FCF) nearly doubling year-over-year to $2.99 billion.

The three main cash flow trends are clear:

• Operating Cash Flow (OCF): This is the cash generated from the core business. Given the FCF of $2.99 billion and capital expenditures (CapEx) of approximately $331 million, the Operating Cash Flow is strong, estimated at about $3.32 billion. This is the engine of the business, fueled by affiliate fees and advertising revenue growth.
• Investing Cash Flow (ICF): This reflects the company's investments in its future. With CapEx at -$331 million, the investment in property, plant, and equipment is manageable. The company also used cash for acquisitions, which is a key part of its strategy to grow digital assets like Tubi.
• Financing Cash Flow (FinCF): This is how the company manages its debt and returns capital to shareholders. The trend here is heavily shareholder-focused, with approximately $1.0 billion in share repurchases and $277 million in dividends paid during FY2025. This aggressive capital return underscores management's confidence in the business's sustained cash generation.

The major liquidity strength for Fox Corporation is its ability to convert earnings into cash, which allows it to simultaneously invest in growth (like the upcoming FOX One platform) and return significant capital to you, the shareholder. For a deeper look into the strategic direction underpinning these financials, you should review the Mission Statement, Vision, & Core Values of Fox Corporation (FOX).

Valuation Analysis

You're looking at Fox Corporation (FOX) right now and asking the core question: is the market pricing this company accurately? The short answer is that the stock looks fairly valued to slightly undervalued based on a blend of traditional multiples and the company's recent strong performance, especially in digital.

The Street consensus, as of November 2025, is a Moderate Buy. That's based on a mix of 'Strong Buy' and 'Hold' ratings from analysts, which is a slight shift toward bullish sentiment compared to earlier in the year. The average analyst price target sits around $70.50, suggesting a decent upside from the recent trading range of the Class A stock (FOXA) around $65.69. This is defintely a case where the market is rewarding a clear strategy.

Is Fox Corporation (FOX) Overvalued or Undervalued?

When we look at the core valuation multiples, Fox Corporation presents a compelling case, especially compared to its historical averages and some peers. Here's the quick math using the latest available data for the 2025 fiscal year:

• Price-to-Earnings (P/E) Ratio: The trailing twelve-month P/E ratio is approximately 14.57. This is below the long-term S&P 500 average and suggests the stock is not expensive relative to its earnings.
• Price-to-Book (P/B) Ratio: The P/B ratio is around 2.26. This is slightly elevated compared to its historical median, but for a media company with significant intangible assets (like broadcast licenses and brand value), a P/B over 2.0 is often acceptable.
• Enterprise Value-to-EBITDA (EV/EBITDA): The TTM EV/EBITDA is approximately 8.7x. This multiple is what I focus on for media companies because it strips out capital structure and depreciation noise. An 8.7x multiple is generally considered reasonable for a company with Fox Corporation's scale and cash flow stability.

The story here is that the market is giving Fox Corporation credit for its digital pivot, but not fully pricing in the potential. The company reported full year fiscal 2025 revenues of $16.30 billion and Adjusted EBITDA of $3.62 billion, showcasing a solid operational base to support this valuation.

Stock Price and Momentum

You need to see momentum before you commit capital, and Fox Corporation has delivered. Over the last 52 weeks, the stock has surged by a substantial 34.8% to 47.7%, depending on the share class you track. This dramatically outperformed the broader S&P 500 Index. The 52-week trading range shows the climb: the low was around $43.18, and it recently hit a high near $67.22. That kind of upward trend, fueled by the success of platforms like Tubi and strong live sports ratings, shows renewed investor confidence.

The launch of the direct-to-consumer streaming service, FOX One, is a key driver here, signaling a clear path for monetizing cord-cutters. You can dive deeper into the strategic direction by reading the Mission Statement, Vision, & Core Values of Fox Corporation (FOX).

Dividend Profile

For income-focused investors, Fox Corporation is a payer, but not a high-yield stock. The company paid an annual dividend of around $0.54 to $0.56 per share for the fiscal year 2025. This translates to a current dividend yield of a low 0.84% to 0.94%.

Still, the dividend is extremely safe. The payout ratio-the percentage of earnings paid out as dividends-is very low, sitting between 11.00% and 13.96%. This tells me two things: the company has ample room to increase the dividend, and it is prioritizing capital allocation toward share buybacks (they announced a $1.5 billion share buyback) and reinvestment in growth areas, like their digital platforms. That low payout ratio is a sign of financial strength and a focus on long-term growth over immediate yield.

Risk Factors

You're looking at Fox Corporation (FOX) after a record-breaking fiscal year 2025, but a seasoned analyst knows that strong revenue-like the total of $16.30 billion-often masks significant, near-term risks. The company's focus on live news and sports is a great shield, but it's not a suit of armor. The core risks center on the structural decline of traditional television, the high cost of content, and the ever-present threat of litigation and regulation.

The biggest structural headwind is the accelerating decline in cable subscribers, or the 'cord-cutting' trend. This directly impacts the company's most stable revenue stream: affiliate fees. For example, the estimated subscriber base for the flagship FOX News channel dropped from 67 million to 61 million in fiscal 2025. That's a 6 million subscriber loss in one year. While overall affiliate fee revenue still grew by a solid 5% to $7.7 billion due to higher rates, that volume decline is a constant pressure on future growth.

Here's the quick math: you need rate increases to outpace subscriber losses just to stay flat. That's a tough negotiation to win every year, especially with MVPD (Multichannel Video Programming Distributor) consolidation giving distributors more leverage. The company's answer is a strategic pivot to digital, with the launch of the direct-to-consumer (D2C) platform FOX One and the continued scaling of its advertising-supported video-on-demand (AVOD) service, Tubi. Tubi is defintely a bright spot, surpassing $1.1 billion in revenue in fiscal 2025, but its profitability margins are still developing compared to the traditional cable model.

Operational and Financial Pressures

The operational risks are tightly linked to the financial ones, primarily the escalating cost of content. You saw this clearly in the fiscal 2025 results: expenses rose due to higher sports rights amortization and production costs, including the impact of Super Bowl LIX. Securing premium sports rights is the company's core strategy to drive live viewership, but the price tag is staggering. This creates a challenging trade-off: pay more for content or risk losing audience share to competitors like Disney's ESPN or Comcast's NBCUniversal.

The reliance on major events also introduces revenue lumpiness. The Super Bowl LIX broadcast, for instance, generated over $800 million in gross advertising revenue, but the absence of such a massive event in the subsequent quarter creates a difficult year-over-year comparison for advertising revenue. This volatility makes forecasting a real headache.

Regulatory and External Threats

External risks are a constant for a company of this size, especially in the news and media space. Legal and regulatory risks are ongoing concerns, as highlighted in the recent filings, including the FCC's regulatory stance on affiliate relationships. Plus, the increasing sophistication of cybersecurity threats is a major operational risk. A successful cyberattack could disrupt operations or compromise proprietary data, costing millions-the average cost of a data breach is estimated at $4.88 million in 2025.

To combat this, the company has a clear governance structure. The Board's Audit Committee actively oversees these issues, receiving quarterly reports from the Chief Information Security Officer (CISO) and conducting executive tabletop exercises to test response capabilities. That's a good sign of proactive risk management, but it still requires constant investment. You can get a better sense of their long-term focus by reading their Mission Statement, Vision, & Core Values of Fox Corporation (FOX).

The key risks you need to watch:

• Subscriber erosion rate exceeding affiliate fee price increases.
• Sports rights costs inflating faster than advertising revenue growth.
• Failure of the FOX One streaming strategy to offset linear losses.

Finance: Track the quarterly affiliate fee revenue change against the reported subscriber decline percentage for a clearer picture of the structural headwind.

Growth Opportunities

You're looking for a clear path forward for Fox Corporation (FOX), and the near-term growth story is defintely anchored in two areas: digital expansion and the high-margin, live content business. The company is not just surviving the media shift; it's actively capitalizing on it, which is why analysts anticipate a full fiscal year 2025 Earnings Per Share (EPS) of around $4.08, a solid 19% jump from the prior year's $3.43 EPS.

Here's the quick math: the core strategy is to leverage premium, must-watch content-news and sports-to drive both traditional affiliate fees and, crucially, digital ad revenue. This focus delivered a Q3 Fiscal 2025 total revenue of $4.37 billion, marking a substantial 27% increase year-over-year, showing this approach is working.

Digital Expansion: The Tubi and Fox One Strategy

Fox Corporation's most potent growth driver is its ad-supported video-on-demand (AVOD) platform, Tubi. This platform is moving the needle on digital advertising, which is less susceptible to the cord-cutting trend impacting traditional cable. Tubi's revenue rose a massive 35% in a recent quarter, and its Monthly Active Users now sit at 97 million, with 65% of those being 'cordless' viewers-a key demographic.

Plus, the company is innovating with new product launches. In May 2025, they announced the upcoming launch of Fox One, a new U.S. streaming service set for August 21, 2025. This platform is designed to attract cord-cutters and will integrate content from the Fox broadcast network, aiming for low single-digit millions in revenue over three years. This is a smart move to capture the audience leaving the traditional pay-TV bundle.

• Tubi's digital ad growth is a clear tailwind.
• Acquired Red Seat Ventures in February 2025 to enter the podcast market.
• Launched Fox One to target the 'cordless' market.

Core Strength: Live Content and Political Advertising

The company's competitive advantage lies in its dominant portfolio of live content, which is less vulnerable to time-shifting and ad-skipping. FOX News Media is a clear leader, often ranking as the most-watched channel in all of television, and FOX Sports holds premium rights for major leagues like the NFL.

The financial impact of this live focus is clear in the Q3 Fiscal 2025 results, where advertising revenues surged by a massive 65%, largely bolstered by the Super Bowl LIX broadcast and the expanding Tubi service. Also, the 2025 presidential election cycle is expected to inject a significant boost in political advertising income, which is high-margin revenue. This is what gives the company resilience.

To give you a clearer picture of the 2025 performance, here are the key financial highlights from the fiscal year:

The company is also committed to returning capital, announcing a $5 billion increase to its share repurchase program in Q4 FY 2025. This demonstrates management's confidence in their long-term value, even as they navigate the shift away from traditional linear TV. You can find a deeper dive into the valuation metrics in Breaking Down Fox Corporation (FOX) Financial Health: Key Insights for Investors.