Nasdaq:NWS
NEWS CORP
A global media powerhouse generating revenue through news publishing, digital advertising, and licensing intellectual property with a recent focus on profitability growth.
Key Metrics
Investment Thesis
Bull Case
Investors should consider this stock due to the exceptional 4x year-over-year growth in net income driven by operational efficiencies and strategic content monetization. The robust free cash flow generation provides a comfortable cushion for ongoing capital returns, making it attractive for dividend-focused portfolios seeking value.
Bear Case
The recent decline in total revenue from 2024 to 2025 raises concerns about the sustainability of current growth rates and potential market saturation. High accumulated other comprehensive losses and significant long-term liabilities suggest underlying balance sheet pressure that could limit future strategic flexibility.
About NEWS CORP
News Corp (NWS) operates as a diversified media conglomerate providing news content, advertising platforms, and digital services across global markets. The company leverages its extensive portfolio of newspapers, magazines, and digital properties to serve consumers, advertisers, and corporate clients worldwide.
Analysis
Management Discussion
Management successfully navigated a complex transition, evidenced by a substantial jump in net profit from $354M in 2024 to $1.34B in 2025, despite a contraction in total revenue. Strong operating cash flow of $1.13B indicates healthy business fundamentals, allowing the company to return $335M to shareholders through dividends and buybacks while managing significant debt levels.
Industry Overview
The media industry is currently undergoing a structural transformation where traditional print revenue declines are being offset by digital subscriptions and licensing deals. Companies that successfully pivot their vast content libraries into scalable digital products are gaining market share over legacy competitors unable to adapt quickly.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $9.88B | $10.09B | $8.45B |
| Cost of Revenue | $0 | $0 | $0 |
| Gross Profit | $9.88B | $10.09B | $8.45B |
| Operating Expenses | $9.55B | $9.54B | $7.53B |
| Operating Income | $330.0M | $546.0M | $923.0M |
| G&A | $3.33B | $3.49B | $3.30B |
| Stock-Based Comp | $92.0M | $98.0M | $84.0M |
| D&A | $714.0M | $734.0M | $459.0M |
| Depreciation | $555.0M | $580.0M | $361.0M |
| Amortization | $159.0M | $154.0M | $98.0M |
| Other OpEx | $6.21B | $6.05B | $4.23B |
| Non-Operating Income | $0 | $0 | $0 |
| Pre-Tax Income | $330.0M | $546.0M | $923.0M |
| Income Tax | $143.0M | $192.0M | $275.0M |
| Continuing Ops | $187.0M | $354.0M | $648.0M |
| Discontinued Ops | $0 | $0 | $692.0M |
| Net Income | $187.0M | $354.0M | $1.34B |
| Minority Interest | $38.0M | $88.0M | $160.0M |
| Net to Common | $149.0M | $266.0M | $1.18B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $4.05B | $4.37B | $4.81B |
| Cash & Equivalents | $1.83B | $1.96B | $2.40B |
| Accounts Receivable | $1.43B | $1.50B | $1.56B |
| Inventory | $311.0M | $296.0M | $327.0M |
| Other Current Assets | $484.0M | $613.0M | $519.0M |
| Long-Term Assets | $12.87B | $12.31B | $10.69B |
| PP&E (Net) | — | $1.91B | $1.33B |
| Intangibles | $2.49B | $2.32B | $1.93B |
| Goodwill | $5.14B | $5.19B | $4.37B |
| Operating Leases | $1.04B | $958.0M | $789.0M |
| LT Investments | $427.0M | $430.0M | $1.02B |
| Other LT Assets | $3.58B | $1.29B | $1.17B |
| Total Assets | $16.92B | $16.68B | $15.50B |
| Current Liabilities | $3.17B | $3.06B | $2.61B |
| Accounts Payable | $440.0M | $314.0M | $335.0M |
| Current Debt | $27.0M | $54.0M | $25.0M |
| Current Leases | $112.0M | $117.0M | $74.0M |
| Deferred Revenue | $622.0M | $551.0M | $498.0M |
| Other Current Liab | $841.0M | $788.0M | $640.0M |
| Long-Term Liabilities | $4.81B | $4.62B | $3.51B |
| Long-Term Debt | $2.94B | $2.85B | $1.94B |
| LT Operating Leases | $1.13B | $1.03B | $904.0M |
| Other LT Liab | $743.0M | $736.0M | $666.0M |
| Total Liabilities | $7.98B | $7.67B | $6.12B |
| Shareholders' Equity | $8.95B | $9.01B | $9.39B |
| Retained Earnings | $-2.14B | $-1.89B | $-747.0M |
| AOCI | $-1.25B | $-1.25B | $-1.54B |
| Total L&E | $16.92B | $16.68B | $15.50B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $187.0M | $354.0M | $1.34B |
| Non-Cash Adjustments | $-2.94B | $-2.86B | $-3.56B |
| Working Capital Changes | $3.84B | $3.60B | $3.36B |
| Cash from Operations | $1.09B | $1.10B | $1.13B |
| Capital Expenditures | $499.0M | $496.0M | $407.0M |
| Cash from Investing | $-574.0M | $-524.0M | $-153.0M |
| Debt Issuances | $514.0M | $1.27B | $61.0M |
| Share Buybacks | $243.0M | $117.0M | $150.0M |
| Dividends Paid | $174.0M | $172.0M | $185.0M |
| Cash from Financing | $-501.0M | $-441.0M | $-563.0M |
| FX Effect | $-6.0M | $-6.0M | $25.0M |
| Net Change in Cash | $17.0M | $133.0M | $418.0M |
| Beginning Cash | $1.82B | $1.83B | $1.96B |
| Ending Cash | $1.83B | $1.96B | $2.40B |
Frequently Asked Questions
How does NEWS CORP make money?
The company's financials reflect revenue streams from traditional print and digital news publishing, proprietary content licensing to third-party platforms, and direct-to-consumer digital advertising services. Significant operating expenses suggest a heavy investment in general administration and content acquisition to maintain its extensive media library.
What are the main risks for NWS?
Rapid shifts in consumer media consumption toward short-form video platforms could erode traditional advertising and subscription revenues. The company faces significant competition from major tech giants that control digital ad inventory and offer free content alternatives. Regulatory changes regarding data privacy and online press freedom in key markets pose ongoing operational risks.
What is NWS's competitive advantage?
News Corp possesses an unparalleled archive of historical news data and intellectual property that drives licensing revenue. Its diversified global footprint provides resilience against regional market downturns, while strong cash flow from operations supports continued share buybacks and dividend payments.
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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.