Fox’s second quarter saw results ahead of Wall Street’s expectations, but the market reaction was negative. Management attributed the outperformance to strong gains in digital advertising, particularly at Tubi, and robust viewership across Fox News and live sports. CEO Lachlan Murdoch highlighted record-breaking audience engagement, especially during marquee events like the Super Bowl, and emphasized the company’s diversified revenue streams. However, management also acknowledged rising costs related to sports rights and digital investments, which may have contributed to investor caution despite the operational momentum.
Is now the time to buy FOXA? Find out in our full research report (it’s free).
FOX (FOXA) Q2 CY2025 Highlights:
- Revenue: $3.29 billion vs analyst estimates of $3.12 billion (6.3% year-on-year growth, 5.5% beat)
- Adjusted EPS: $1.27 vs analyst estimates of $1.00 (27.3% beat)
- Adjusted EBITDA: $939 million vs analyst estimates of $789.8 million (28.6% margin, 18.9% beat)
- Operating Margin: 25.4%, up from 21.7% in the same quarter last year
- Market Capitalization: $23.83 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From FOX’s Q2 Earnings Call
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Ben Swinburne (Morgan Stanley) asked how digital investments—including in FOX One and Latin America—will impact EBITDA in the coming year. CFO Steven Tomsic said Tubi profitability should improve, but upfront investments in new initiatives will push digital spending back to previous levels.
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John Hodulik (UBS) inquired about advertising trends at Fox News and the LatAm growth strategy. CEO Lachlan Murdoch emphasized strong ratings and advertiser demand at Fox News, while Tomsic highlighted modest, stepwise investments in Latin America following the Caliente TV acquisition.
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Michael Morris (Guggenheim) asked why Tubi is outperforming the broader connected TV market and about potential sports network partnerships. Murdoch pointed to Tubi’s unique content mix, younger audience, and superior ad technology, while expressing confidence in Fox’s ongoing sports relationships.
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Michael Ng (Goldman Sachs) requested clarification on the scale and return profile of digital investments. Tomsic explained that new investments in FOX One and Latin America would be similar in profile to Tubi’s multi-year path to profitability, with early costs weighted to launch and longer-term returns expected.
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Jessica Reif Ehrlich (Bank of America Securities) asked whether Fox would participate in industry M&A and for color on the advertising environment. Murdoch said Fox maintains a high benchmark for acquisitions, focusing on organic growth, and described the ad market as robust across live news, sports, and digital platforms.
Catalysts in Upcoming Quarters
In upcoming quarters, our team will closely watch (1) the launch and early subscriber trends of FOX One, (2) profitability improvements at Tubi amid rising digital investment, and (3) the initial impact of Latin American market expansion. Additional attention will be paid to advertiser demand during prime sports events and any changes in affiliate fee revenue as distribution agreements renew.
FOX currently trades at $56.13, down from $57.06 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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