FOX earnings analysis
What we found in FOX's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Fox reported revenues of $3,738 million for the three months ended September 30, 2025 (up $174 million, +4.9% vs. $3,564 million a year ago) and diluted EPS of $1.32 (down from $1.78 a year ago). Operating income remained near $959 million (operating margin ~25.7%) but cash from operations swung to a use of $130 million, producing free cash flow of negative $234 million. Management increased buyback authorization to $12.0 billion and expects an accelerated share repurchase of $1.5 billion to commence October 31, 2025.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue growth and top-line beat
- Total revenues were $3,738 million in the quarter, up $174 million (+4.9%) from $3,564 million in the prior-year period.
- Operating profitability remains high
- Operating income was approximately $959 million, implying an operating margin of ~25.7% on $3,738 million of revenue.
- Strong cash balance and equity base
- Cash and cash equivalents were $4,368 million and total equity was $12,311 million as of September 30, 2025.
- Materially expanded buyback authorization
- Board increased repurchase authorization to $12.0 billion (added $5.0 billion in August 2025); the company repurchased ~4 million shares for ~$250 million in the quarter and announced an expected $1.5 billion accelerated share repurchase (to repurchase $700 million of Class A and $800 million of Class B stock).
- Investments with liquid market value
- Investments in equity securities categorized as Level 1 totaled $1,118 million as of September 30, 2025.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- EPS and net income decline YoY
- Diluted EPS was $1.32 versus $1.78 in the prior-year period (a decline of $0.46, -25.8%); net income attributable to Fox stockholders was $599 million versus $827 million a year ago (down $228 million).
- Operating cash flow turned negative
- Net cash used in operating activities was $(130) million in the quarter versus net cash provided of $158 million in the prior-year period (a swing of $288 million).
- Negative free cash flow and higher capex
- Free cash flow was negative $234 million (operating cash flow $(130) million less capital expenditures $104 million); capex increased to $104 million from $64 million year-over-year.
- Working capital pressure: receivables and inventories increased
- Receivables, net increased to $2,810 million from $2,472 million (up $338 million) and total inventories, net rose to $1,362 million from $1,174 million (up $188 million) as of September 30, 2025.
- Large swing in non-operating results
- Non-operating other, net was a charge of $(125) million versus income of $233 million in the prior-year quarter (a negative swing of $358 million).
- Higher contractual commitments
- Total firm commitments and future debt payments increased to approximately $37 billion as of September 30, 2025 from $35 billion at June 30, 2025.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.32
- Gross margin
- 100.0%
- Operating margin
- 25.7%
What they said about what is next.
The 10-Q contains forward-looking capital deployment commentary: management increased the repurchase program to $12.0 billion and expects to enter into a $1.5 billion accelerated share repurchase commencing October 31, 2025 (to repurchase $700 million of Class A and $800 million of Class B) and anticipates completing the ASR during the second half of fiscal 2026. No explicit numeric revenue or EPS guidance was provided in the MD&A.
The filing reads about the same as the one before it.
What came before.
- 10-K · August 6, 2025
- FOX emphasizes leadership in live, appointment-based news, sports and entertainment and is expanding digital distribution (notably Tubi and the planned FOX One launch). The company finished fiscal 2025 with strong…
- 10-Q · November 4, 2024
- FOX reported revenue of $3,564 million and diluted EPS of $1.78 for the three months ended September 30, 2024, driven by higher operating profitability (operating margin ~26.0%). Revenue and EPS increased meaningfully…
- 10-Q · November 1, 2022
- Fox reported quarterly revenue of $3,192 million, up $147 million (+4.8%) versus the prior-year quarter, while diluted EPS declined to $1.10 from $1.21. Operating cash flow strengthened to $270 million (vs. $29 million…
- 10-K · August 12, 2022
- FOX emphasizes a focused strategy around live, appointment-based news, sports and entertainment and is investing in digital distribution (notably TUBI) and rights to marquee sports. The filing highlights scale: FOX…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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