Fox (FOXA) investor relations material

Executive summary

• Achieved record annual revenue of $17.13 billion, up 5% year-over-year, and record adjusted EBITDA of $3.91 billion, up 8%, driven by the FIFA Men's World Cup, digital growth, and the launch of FOX One.

• Net income for the year was $1.73 billion ($3.84/share), down from $2.29 billion ($4.91/share) in the prior year, while adjusted net income rose to $2.38 billion ($5.42/share), up 13%.

• Major milestones included the launch of FOX One, enhanced Tubi streaming, and the announced acquisition of Roku, expected to close in the first half of 2027.

• Fourth quarter revenue surged 28% to $4.21 billion, with adjusted EBITDA up 27% to $1.2 billion, driven by World Cup and Tubi growth.

• Tubi closed the year at 110 million monthly active users, exceeding expectations.

Financial highlights

• Annual advertising revenue grew 7% year-over-year, led by the World Cup and Tubi, offset by the absence of Super Bowl LIX and lower political ads.

• Distribution revenue increased 4%, with 5% growth in the cable segment.

• Q4 adjusted net income was $765 million ($1.79/share), up from $581 million ($1.27/share) in the prior year quarter, a 41% increase in adjusted EPS.

• Free cash flow for the quarter was $726 million.

• Net income margin for the year was 10.1% on $17.13 billion revenue.

Outlook and guidance

• Fiscal 2027 off to a strong start, with continued advertising momentum from the World Cup and early midterm political cycle.

• Expect record midterm political ad revenue, surpassing previous cycles.

• Distribution revenue growth anticipated in both cable and TV segments, with more normalized renewals in 2027.

• Digital investment expected to continue declining as Tubi and FOX One outperform.

• Management expects sustained growth and long-term shareholder value, with Roku acquisition expected to transform growth profile.