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

You're looking at Fox Corporation's financials and trying to figure out if the big 2025 numbers are sustainable, and honestly, that's the right question to ask. The headline performance was defintely impressive: $16.30 billion in total revenue, a 17% jump, with net income attributable to stockholders surging to $2.26 billion, but the real story is the cash conversion-free cash flow nearly doubled to $2.99 billion. That massive cash haul, fueled by the Super Bowl LIX broadcast and Tubi's continued digital momentum, which generated over $1.1 billion in revenue, gives management a huge cushion, so they immediately announced a $5 billion increase to the share repurchase authorization. Still, the linear business faces the structural pressure of net subscriber declines, and the Connected TV (CTV) market is incredibly competitive; the near-term opportunity is leveraging that cash to buy back shares and boost the semi-annual dividend to $0.28 per share while building out their digital platform, Fox One. That's a strong hand to play.

Revenue Analysis

You need a clear picture of where Fox Corporation (FOXA) is making its money, and the fiscal year 2025 (FY2025) results show a company successfully navigating the shift from linear TV to digital content. The direct takeaway is this: Fox Corporation delivered a record year with total revenue hitting $16.30 billion, marking a robust 17% year-over-year growth, largely fueled by a surge in advertising revenue and the digital success of Tubi. That's a strong performance.

The company's revenue streams are essentially a three-part mix: Affiliate Fees, Advertising, and Other Revenues. The biggest story here is the advertising segment, which saw a massive lift of 26% year-over-year. This wasn't just a cyclical bump; it was driven by high-impact events like Super Bowl LIX and a strong political advertising cycle, plus the continued, defintely crucial growth of its digital assets.

Affiliate fee revenues-the money paid by cable and satellite providers-still grew by 5%, but this growth is constantly fighting against the headwind of net subscriber declines in the traditional cable bundle. To be fair, pricing gains from renewals are currently outpacing those subscriber losses. The 'Other Revenues' category also saw a significant jump, increasing by 33% in the fourth quarter, primarily due to higher content revenues and a rise in Fox Nation subscribers.

Here is the quick math on how the two main business segments contributed to the record total revenue in FY2025:

The Television segment, which includes the Fox broadcast network and the Tubi ad-supported video-on-demand (AVOD) service, is now the larger revenue engine, growing faster at 18% to reach $9.33 billion. The Cable Network Programming segment, home to Fox News and Fox Sports 1, also performed well, growing 16% to $6.93 billion.

What this breakdown hides is the underlying shift: the digital momentum is real. Tubi, the free streaming service, is a major growth driver, generating over $1.1 billion in revenue in FY2025 and surpassing 100 million monthly active users. This digital success is key, as it diversifies the revenue base away from the slow-decaying linear cable model. You can see how this strategy fits into the bigger picture by reviewing the Mission Statement, Vision, & Core Values of Fox Corporation (FOXA).

The significant changes in the revenue streams are clear and actionable for an investor:

• Advertising is the primary growth lever, up 26% in FY2025.
• Digital revenue, led by Tubi, is offsetting traditional linear declines.
• Major sports and political cycles provide substantial, but non-recurring, revenue boosts.
• Affiliate fees remain resilient, but the long-term trend of cable subscriber loss is a structural challenge.

The company is successfully monetizing its live news and sports focus across both traditional and digital platforms, but you must factor in the non-recurring nature of massive events like the Super Bowl and political advertising when modeling future growth. The digital story is the one to watch.

Profitability Metrics

If you are looking at Fox Corporation (FOXA), the direct takeaway is that their profitability in fiscal year 2025 was exceptionally strong, driven by margin expansion and operational discipline. The company is generating significant profits in a challenging media landscape, particularly when compared to the industry average.

For the fiscal year ending June 30, 2025, Fox Corporation reported total revenue of $16.30 Billion. This top-line growth, up +16.60% from the prior year, translated into a substantial increase in earnings, showing management's focus on cost control and high-margin content like live sports and news. Net Income jumped by a massive +50.67% year-over-year to $2.26 Billion. That's a serious acceleration.

Margin Deep Dive: FOXA vs. The Industry

The real story for Fox Corporation is in the margins. You need to look beyond the raw dollar figures to understand the efficiency of their business model. Here's a quick breakdown of their core profitability ratios for FY2025:

• Gross Profit Margin: 33.11% (Gross Profit of $5.40 Billion)
• Operating Profit Margin: 19.81% (Operating Income of $3.23 Billion)
• Net Profit Margin: 13.88% (Net Income of $2.26 Billion)

When you stack these up against the Broadcasting industry averages, Fox Corporation's performance is defintely a standout. The average US Broadcasting company is struggling to reach the bottom line, which is why Fox Corporation's net margin is so compelling.

Here's the quick math: Fox Corporation's 13.88% Net Profit Margin is over 20 percentage points better than the Broadcasting industry's average of -6.6%. This indicates a massive competitive advantage, mostly due to their focus on high-value, must-have content like live sports and news, which commands premium advertising and affiliate fees, insulating them somewhat from the secular decline in linear TV.

Operational Efficiency and Profit Trends

The trend is also highly positive. Fox Corporation's operating margin expanded to 19.81%, up +208 basis points from the prior year. This margin progression is a clear sign of operational efficiency (or operating leverage), meaning their revenue growth is outpacing the growth of their operating expenses. For example, Selling, General, and Administrative (SG&A) expenses increased only modestly from $2.02 Billion to $2.17 Billion.

A key driver of this efficiency is the strength of their individual segments. The Cable Network Programming segment, which includes Fox News, is a profit engine, delivering an impressive 48% EBITDA margin in the first quarter of fiscal 2026. Plus, their streaming service, Tubi, achieved quarterly profitability ahead of schedule, proving that their digital investments are starting to pay off. That's a big deal for future growth. If you want to dive deeper into who is betting on this performance, check out Exploring Fox Corporation (FOXA) Investor Profile: Who's Buying and Why?

What this estimate hides is the long-term pressure from escalating sports rights fees, which analysts project will eventually compress margins, but for now, the operational discipline is winning.

Debt vs. Equity Structure

You're looking at Fox Corporation (FOXA) and wondering how they pay for their growth-is it mostly borrowing or shareholder money? The quick answer is that Fox Corporation runs a defintely conservative balance sheet, relying more on equity than debt, which is a strong signal of financial stability in a volatile media landscape.

As of November 2025, the company's capital structure is notably balanced, leaning away from heavy leverage. The debt-to-equity (D/E) ratio, which measures total debt against shareholder equity, sits at a low 0.54. This means for every dollar of shareholder equity, Fox Corporation uses only about 54 cents of debt to finance its assets. That's a very comfortable position.

Here's the quick math on their core liabilities as of the September 2025 quarter end:

• Total Long-Term Debt: $6.603 billion
• Total Short-Term Debt: $0 million
• Total Shareholder Equity: $12.208 billion

The fact that their short-term debt is essentially zero is a huge plus for liquidity. They repaid $600 million of senior notes in April 2025, which shows a commitment to managing near-term obligations aggressively. That is a clean balance sheet.

When you compare Fox Corporation's 0.54 D/E ratio to the sector median of 1.04, you see just how conservative they are. Even against key peers, they look solid:

The company maintains an investment-grade credit rating of 'BBB' on its senior unsecured debt from S&P Global Ratings. This rating is underpinned by their stated financial policy, which targets a leverage ratio (Debt/EBITDA) between 2x and 3x. This conservative approach helps keep their borrowing costs down, which is crucial for maximizing returns on their live news and sports content-the core of their business.

Fox Corporation balances debt financing with equity by using debt primarily for strategic, long-term purposes, like their existing public debt, and maintaining a $1.0 billion unsecured revolving credit facility that matures in June 2028 for flexibility. They are not shy about using their strong cash flow for shareholder returns, like buybacks, but they clearly prioritize maintaining a low-risk capital structure. This financial discipline is a major factor for investors, and you can learn more about who is investing in the company by Exploring Fox Corporation (FOXA) Investor Profile: Who's Buying and Why?

The clear action here is to note that Fox Corporation's low leverage gives them significant borrowing capacity should a major acquisition opportunity arise, but for now, they are choosing stability and financial flexibility over aggressive debt-fueled expansion.

Liquidity and Solvency

You're looking for a clear signal that Fox Corporation (FOXA) can handle its short-term bills and still fund growth, and the numbers from fiscal year 2025 are defintely strong. The company's liquidity position is excellent, which gives management real flexibility, especially in a volatile media market.

The core takeaway is that FOXA is generating substantial cash from its operations and holds a large cash buffer, putting it in a financially secure spot. This strength allows for aggressive capital return to shareholders while maintaining a low leverage profile.

• Current Ratio: The Current Ratio sits at a comfortable 3.24. This means for every dollar of short-term debt (current liabilities), Fox Corporation has $3.24 in current assets to cover it. That's a very healthy buffer.
• Quick Ratio: The Quick Ratio (or Acid-Test Ratio), which excludes inventory-a less liquid asset-is nearly as high at 3.03. For a media company, this is a powerful indicator, showing that even if they had to pay all their immediate obligations right now, they could easily do so with just cash, receivables, and marketable securities.

Here's the quick math on why this matters: a ratio above 1.0 is generally considered safe, so a ratio over 3.0 signals significant short-term financial strength. This is not a company scrambling for cash.

Cash Flow: The Engine of Liquidity

When we look beyond the balance sheet to the cash flow statement, the picture gets even better. Strong operating cash flow (OCF) is the lifeblood of any media business, and FOXA delivered a significant jump in fiscal 2025.

Net cash provided by operating activities was a robust $3.324 billion, a substantial increase over the prior year. This core operating strength translated directly into a massive leap in Free Cash Flow (FCF) after accounting for capital expenditures (CapEx) of $331 million. The FCF for FY2025 hit $2.99 billion, which represents a phenomenal 100.2% increase year-over-year. This is the real story-the company is converting its revenue into cash at an accelerated rate.

The working capital trend also shows stability. The overall balance sheet metrics have remained within a stable band, and the change in working capital over the last twelve months was a positive $466.0 million. This means the company is managing its short-term assets and liabilities efficiently without tying up excessive cash.

Financing and Capital Allocation

The strong cash generation directly dictates Fox Corporation's financing activities. With $5.35 billion in cash at year-end and a manageable total debt of $8.15 billion, the company is not in a position of financial distress; it's in a position of choice.

This is what they chose to do with that cash in FY2025:

• Share Repurchases: Returned approximately $1.0 billion to shareholders through buybacks.
• Dividends: Paid out $277 million in dividends.

The combination of high liquidity ratios, surging Free Cash Flow, and a clear commitment to capital return underscores a low-risk financial profile. The only potential liquidity concern is the cyclical nature of advertising revenue, but the high cash balance and low leverage (net-debt/EBITDA is around 0.73x) provide a strong cushion against any near-term economic slowdown. If you are interested in who is buying the stock, you should be Exploring Fox Corporation (FOXA) Investor Profile: Who's Buying and Why?

Valuation Analysis

You're looking at Fox Corporation (FOXA) and asking the crucial question: Is the market pricing this company correctly? Based on the latest fiscal year 2025 data, the stock appears to be trading at a slight premium compared to its historical averages, but it remains competitive against its industry peers. This isn't a screaming bargain, but it's defintely not wildly overvalued either.

The core of any valuation lies in the multiples. For the fiscal year ending June 2025, Fox Corporation's key valuation ratios tell a story of solid, if not explosive, financial health. The Price-to-Earnings (P/E) ratio stood at 10.68. When you compare that to the broader media sector, which often trades higher, it suggests a reasonable price for the company's earnings power. The Price-to-Book (P/B) ratio was 1.96, which is a healthy sign, meaning the market values the company at less than twice the net asset value on its books.

Here's the quick math on the enterprise value side, which is often more telling for capital-intensive media companies because it accounts for debt. The Enterprise Value-to-EBITDA (EV/EBITDA) ratio for FY 2025 was 7.89. That's a very manageable multiple, indicating the company's operating cash flow (EBITDA) can cover the entire enterprise value in less than eight years, which is a strong signal of financial discipline.

• P/E Ratio (FY 2025): 10.68
• P/B Ratio (FY 2025): 1.96
• EV/EBITDA Ratio (FY 2025): 7.89

The stock's performance over the last year has been strong, so any valuation discount has been shrinking. Over the 12 months leading up to November 2025, Fox Corporation (FOXA) stock surged approximately 45.29%. That's a significant move, especially when you consider the S&P 500 Index only rallied about 12.3% in the same period. The 52-week trading range for the stock was from a low of around $44.73 to a high of $67.22. The market is rewarding the strategy, specifically the growth of the Tubi streaming platform and the strength of its live news and sports content.

When it comes to returning capital, Fox Corporation offers a modest but sustainable dividend. The annual dividend per share is approximately $0.56, which translates to a dividend yield of about 0.86% as of late 2025. The real strength here is the payout ratio, sitting at a very conservative 12.38%. That low ratio means the dividend is extremely well-covered by earnings, giving the company ample room to reinvest in growth or increase the dividend down the line. It's a low-yield, high-safety dividend.

What this estimate hides is the potential for a major strategic move. The analyst community generally leans positive, with a consensus rating of 'Moderate Buy'. The average price target from analysts sits between $66.08 and $70.50, compared to the stock's recent price of around $64.78. This suggests a modest upside of 2% to 8% in the near term, which is consistent with a stock that has already seen a large run-up. If you want to dive deeper into who is driving this price action, you should read Exploring Fox Corporation (FOXA) Investor Profile: Who's Buying and Why?

So, the action item is clear: Fox Corporation is fairly valued with a compelling growth story in streaming, but the valuation multiples suggest the market has already factored in much of that good news. Any investment decision now hinges on your belief in their ability to execute on the digital shift and keep their live content dominance.

Risk Factors

You're looking at Fox Corporation (FOXA) after a strong fiscal 2025, where the company posted total revenues of $16.30 billion and net income of $2.29 billion. That's a solid run, but a seasoned analyst knows to look past the headline numbers straight to the risk factors. The media landscape is defintely shifting, and for Fox Corporation, the near-term risks fall into three clear buckets: market, regulatory, and operational.

Market and Strategic Headwinds

The biggest external risk is the volatility of advertising expenditures. Fox Corporation relies heavily on ad spending, which is highly sensitive to the broader economic climate and political uncertainties. If the economy slows, advertisers cut budgets fast, and that hits the top line directly. Also, the structural shift in consumer behavior-the move from traditional cable to streaming and other digital distribution platforms-continues to challenge the core business model. This is an industry-wide problem, but it means Fox Corporation must keep investing heavily to stay relevant.

• Advertising revenue is highly sensitive to economic downturns.
• Changes in consumer viewing habits erode traditional cable revenue.
• Competition for sports rights drives up programming costs.

Operational and Financial Risks

Internally, the financial filings highlight specific operational risks. The company took a non-cash impairment charge for intangible assets of approximately $70 million at the Television segment in fiscal 2025, which is a clear financial signal that some assets are not generating the expected cash flows. This kind of charge shows the difficulty in valuing traditional media assets in a digital world. Another significant operational concern is the threat of labor disputes, which could disrupt content production and increase costs, plus the ever-present risk of sophisticated cybersecurity threats that could compromise data or cause service outages.

Regulatory and Legal Exposure

Legal and regulatory risks are consistently a top concern for Fox Corporation, representing a high percentage of the company's total risk profile. The company operates under complex laws related to broadcasting, privacy, and data protection, and any changes in these regulations or their enforcement could materially impact operations. This is a constant area of focus, especially with the political nature of some of its core content. A change in the regulatory environment is a quick way to lose money. For a deeper dive into the company's guiding principles, you should review their Mission Statement, Vision, & Core Values of Fox Corporation (FOXA).

Mitigation and Actionable Opportunities

To counter these risks, Fox Corporation is making concrete strategic moves, focusing on digital expansion and platform consolidation. The launch of the FOX One direct-to-consumer subscription streaming service, expected by Fall 2025, is a direct response to the market shift, aiming to expand their digital footprint and diversify revenue away from pure cable. They are also leveraging their digital assets like Tubi, FOX Nation, and FOX Weather, and implementing the AI-driven OneFOX converged media platform to optimize ad inventory across their properties. Here's the quick math on the digital push:

What this estimate hides is the high cost of content investment required to make FOX One competitive, which will put pressure on margins in the near term. Still, the move is necessary. Your next step should be to track the subscriber and advertising revenue growth of Tubi and the initial uptake of FOX One in the upcoming fiscal quarters. That will tell you if the mitigation is working.

Growth Opportunities

You're looking past the current quarter's noise and want to know where Fox Corporation (FOXA) will actually make its money in the next few years. The short answer is: digital expansion and an iron grip on live, 'appointment-based' content-news and sports. This dual focus is how they posted a record fiscal year 2025, with total revenues climbing to a robust $16.30 billion, a 17% jump from the prior year.

The company's strategy is clear: use their strong balance sheet-which ended fiscal 2025 with approximately $5.4 billion in cash-to fund growth initiatives that counter the decline of the traditional pay-TV bundle. This isn't just theory; it's already generating returns, as seen in the full-year net income attributable to stockholders rising to $2.29 billion.

Here are the key growth drivers that will shape their future:

• Tubi's Digital Momentum: The Ad-Supported Video On Demand (AVOD) service, Tubi, is their primary digital growth engine, now exceeding 100 million monthly active users. This platform drove advertising revenue gains, with the company seeing a roughly 35% volume increase for Tubi in the upfront advertising market for the coming year.
• Strategic Streaming Bundles: Fox is attacking the cord-cutter market with new products. They launched the direct-to-consumer (DTC) subscription service, FOX One, on August 21, 2025, priced at $19.99 per month. Plus, the strategic partnership for a bundled streaming package with ESPN, priced at $39.99 per month, is a major move to diversify recurring revenue streams by targeting sports fans.
• Creator Economy and Content Expansion: Fox is expanding its content footprint outside of traditional TV. The February 2025 acquisition of Red Seat Ventures, a leading creator economy business, directly expands their reach into the podcast and direct-to-consumer media market. They also acquired a one-third stake in Penske Entertainment in July 2025, securing an extension of media rights for the IndyCar Series, solidifying their sports rights portfolio.

The core of Fox Corporation's competitive advantage remains its dominance in live content. The broadcast of Super Bowl LIX, for instance, generated over $800 million in gross advertising revenue, underscoring the value of their exclusive sports broadcasting rights. This live content-which includes Fox News Media and Fox Sports-is resilient to the on-demand shift and commands premium ad rates. You can see their underlying principles in their focus on Mission Statement, Vision, & Core Values of Fox Corporation (FOXA).

When you look at the near-term financial projections, analysts see a slight deceleration after the strong 2025 performance, which was boosted by the Super Bowl and political advertising. The consensus revenue forecast for fiscal year 2026 is approximately US$16.1 billion, a modest 2.4% decline from the record prior year. Statutory earnings per share (EPS) for 2026 are forecast at US$4.19. That's a strong number, but it signals the market is pricing in the cyclical nature of political and major sports event advertising. Still, the underlying digital growth is defintely a long-term tailwind.

What this estimate hides is the potential upside from the new digital initiatives. If Tubi continues its rapid growth and the FOX One/ESPN bundle gains significant traction, those revenue estimates could prove conservative. The company's disciplined capital return-including a $5 billion increase to its share repurchase authorization and a semi-annual dividend increase to $0.28 per share-shows management's confidence in future free cash flow generation, which is a tangible sign of financial health.