Nasdaq:FOX
Fox Corp
Fox Corp is a premier media conglomerate delivering local news, sports, and entertainment content through a robust network of broadcast stations and digital distribution channels.
Key Metrics
Investment Thesis
Bull Case
Investors should consider Fox Corp attractive due to its robust revenue growth trajectory and significant expansion in profitability, with net income doubling over the last three years. The company's ability to generate strong operating cash flow supports aggressive capital return programs, including a $1.0B share repurchase program and consistent dividend payments. Its diversified media portfolio offers stability while positioning the firm to capture value from the ongoing shift toward digital-first content consumption.
Bear Case
Skeptics may point to the recent decline in revenue from 2023 to 2024 before the latest recovery, indicating potential volatility in the advertising market. The company carries a significant long-term debt load of $6.60B, which could constrain financial flexibility during periods of high interest rates or economic stress. High operating expenses relative to gross profit suggest ongoing pressure from inflationary costs in production and talent that may erode future margins.
About Fox Corp
Fox Corp (FOX) is a leading American mass media and entertainment conglomerate operating primarily in the United States through its broadcast television stations and digital streaming services. The company generates revenue by selling advertising space on its local news networks and national cable channels, as well as licensing content to third-party platforms. Key products include live news programming, sports coverage, and entertainment shows distributed across traditional TV and evolving digital ecosystems.
Analysis
Management Discussion
Management has successfully navigated challenging market conditions, evidenced by the substantial year-over-year revenue increase from $13.98B in 2024 to $16.30B in 2025. Net income has surged from $1.55B to $2.29B, demonstrating improved operational efficiency and effective cost management despite higher capital expenditures of $331M. The strong cash flow from operations of $3.32B allows the company to fund share repurchases of $1.00B and pay dividends while investing in future content initiatives.
Industry Overview
The media and entertainment industry is currently undergoing a structural transformation driven by the decline of traditional cable viewership and the rapid rise of over-the-top streaming services. Companies must balance investments in digital platforms with maintaining profitability on their legacy broadcast assets to survive this disruptive shift. Consolidation remains a key theme as smaller players struggle with rising content costs, while established giants like Fox Corp leverage their scale for survival and growth.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $14.91B | $13.98B | $16.30B |
| Cost of Revenue | $0 | $0 | $0 |
| Gross Profit | $14.91B | $13.98B | $16.30B |
| Operating Expenses | $13.18B | $11.88B | $13.24B |
| Operating Income | $1.74B | $2.10B | $3.06B |
| G&A | $2.05B | $2.02B | $2.17B |
| Stock-Based Comp | $74.0M | $90.0M | $135.0M |
| D&A | $411.0M | $389.0M | $385.0M |
| Amortization | $74.0M | $45.0M | $35.0M |
| Other OpEx | $11.13B | $9.85B | $11.07B |
| Non-Operating Income | $0 | $0 | $0 |
| Interest Expense | $349.0M | — | — |
| Interest Income | — | $189.0M | $176.0M |
| Pre-Tax Income | $1.74B | $2.10B | $3.06B |
| Income Tax | $483.0M | $550.0M | $768.0M |
| Continuing Ops | $1.25B | $1.55B | $2.29B |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $1.25B | $1.55B | $2.29B |
| Minority Interest | $14.0M | $53.0M | $30.0M |
| Net to Common | $1.24B | $1.50B | $2.26B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $7.26B | $7.50B | $8.43B |
| Accounts Receivable | $2.18B | $2.36B | $2.47B |
| Inventory | $543.0M | $626.0M | $432.0M |
| Other Current Assets | $4.54B | $4.51B | $5.53B |
| Long-Term Assets | $14.61B | $14.47B | $14.77B |
| PP&E (Net) | $1.71B | $1.70B | $1.71B |
| Intangibles | $3.08B | $3.04B | $2.97B |
| Goodwill | $3.56B | $3.54B | $3.64B |
| Operating Leases | $947.0M | $904.0M | $814.0M |
| LT Investments | $1.03B | $1.13B | $1.62B |
| Other LT Assets | $4.28B | $4.16B | $4.02B |
| Total Assets | $21.87B | $21.97B | $23.20B |
| Current Liabilities | $3.76B | $2.95B | $2.90B |
| Current Debt | $1.25B | $599.0M | $0 |
| Current Leases | $72.0M | $76.0M | $41.0M |
| Deferred Revenue | $160.0M | $180.0M | $299.0M |
| Other Current Liab | $1.25B | $1.09B | $1.48B |
| Long-Term Liabilities | $7.66B | $8.21B | $8.23B |
| Long-Term Debt | $5.96B | $6.60B | $6.60B |
| LT Operating Leases | $925.0M | $879.0M | $822.0M |
| Other LT Liab | $772.0M | $729.0M | $807.0M |
| Total Liabilities | $11.42B | $11.16B | $11.13B |
| Shareholders' Equity | $10.45B | $10.81B | $12.07B |
| Retained Earnings | $2.27B | $3.14B | $4.48B |
| AOCI | $-149.0M | $-107.0M | $-124.0M |
| Total L&E | $21.87B | $21.97B | $23.20B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $1.25B | $1.55B | $2.29B |
| Non-Cash Adjustments | $268.0M | $21.0M | $798.0M |
| Working Capital Changes | $279.0M | $265.0M | $233.0M |
| Cash from Operations | $1.80B | $1.84B | $3.32B |
| Capital Expenditures | $357.0M | $345.0M | $331.0M |
| Cash from Investing | $-438.0M | $-452.0M | $-537.0M |
| Debt Issuances | — | $1.23B | $0 |
| Debt Repayments | $0 | $1.25B | $600.0M |
| Share Buybacks | $2.00B | $1.00B | $1.00B |
| Dividends Paid | $299.0M | $281.0M | $277.0M |
| Cash from Financing | $-2.29B | $-1.34B | $-1.75B |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $-928.0M | $47.0M | $1.03B |
| Beginning Cash | $5.20B | $4.27B | $4.32B |
| Ending Cash | $4.27B | $4.32B | $5.35B |
Frequently Asked Questions
How does Fox Corp make money?
The company's revenue is driven by its core television broadcast segment providing local news and weather programming, a national cable television segment featuring entertainment and sports networks, and a growing direct-to-consumer and licensing segment that distributes original content to streaming partners and international broadcasters.
What are the main risks for FOX?
Regulatory changes regarding the retransmission consent model or potential breakup of media conglomerates could significantly disrupt core revenue streams. Rising content production costs and competition from streaming services threaten the profitability of traditional linear television advertising models. Economic inflation may lead to reduced household discretionary spending, directly impacting ad revenues and subscription growth rates. Dependence on key cable system operators who may renegotiate carriage agreements or drop Fox channels poses a significant distribution risk.
What is FOX's competitive advantage?
Fox Corp possesses a dominant market share in local television news across major U.S. markets, creating high barriers to entry for competitors. Its diversified revenue stream from advertising, licensing, and retransmission fees provides resilience against economic downturns affecting any single channel of business. The company benefits from strong brand loyalty and established distribution relationships with cable providers and digital platforms that new entrants cannot easily replicate.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.