Liberty Media Corp (FWONA)·Q3 2025 Earnings Summary

Executive Summary

• Formula One Group revenue increased to $1.085B from $0.911B YoY, with Adjusted OIBDA up to $297M from $207M; operating income rose to $158M from $110M, driven by hospitality/licensing strength and the consolidation of MotoGP, partially offset by one fewer F1 race and higher event/hospitality costs .
• F1 “primary” revenue declined YoY on calendar timing (6 races vs 7 last year), but other revenue (hospitality/licensing) rose, and F1 TV subs and new sponsors supported mix; MotoGP contributed $169M revenue and $66M Adjusted OIBDA on a pro forma basis .
• Strategic catalysts: new US broadcast partnership with Apple, multiple long-term race renewals (Austin through 2034; Azerbaijan 2030; Monaco 2035), and expected Liberty Live split-off on December 15, 2025 .
• Balance sheet pivoted with MotoGP acquisition: Formula One Group cash fell to $1.291B (from $3.448B consolidated at 6/30) and debt rose to $5.164B GAAP; F1 covenant leverage at 3.0x triggers a Term Loan B margin step-down to SOFR+175 bps upon certification .

What Went Well and What Went Wrong

• What Went Well

  • Hospitality/licensing momentum offset race-count headwind: F1 “other revenue” rose to $131M in Q3 (from $103M), supporting YoY growth in Adjusted OIBDA to $234M at F1 despite one fewer race .
  • Commercial wins: renewals in Austin and Azerbaijan, extended Monaco, new Apple US broadcast partnership, and brand extensions (licensing with Pottery Barn Kids/Teen, Hello Kitty x F1 Academy) .
  • Management tone confident: “record attendance … expanding ways to reach new and existing fans … new US distribution partnership with Apple” (Stefano Domenicali, F1 CEO) ; “record attendance and growth in TV viewership, digital engagement and social followers” (Carmelo Ezpeleta, MotoGP CEO) .

• What Went Wrong

  • Calendar headwind: six F1 races vs seven last year reduced quarterly “primary revenue” recognition across race promotion/media rights; F1 primary revenue fell to $738M from $758M in Q3 .
  • Cost intensity: higher Paddock Club and Grand Prix Plaza costs with increased attendance; freight/logistics cost inflation and servicing costs (sponsors, F1 TV delivery) weighed on margins .
  • Financing mix: consolidated Formula One Group GAAP debt rose to $5.164B post-MotoGP, with MotoGP leverage at 5.6x and incremental interest expense; F1 term loan outstanding increased to $3.361B .

Financial Results

• Consolidated/Attributed Formula One Group (oldest → newest)

Values with asterisk (*) retrieved from S&P Global.

• Q3 2025 Segment and Mix

• KPIs and Operating Drivers

• Cash and Debt (Formula One Group)

Guidance Changes

Note: Company does not provide quantitative revenue/EBITDA/EPS guidance in these materials; no explicit OpEx/tax/dividend guidance disclosed -.

Earnings Call Themes & Trends

Transcript not available in repository; themes derived from the press release and 10-Q.

Management Commentary

• Derek Chang, President & CEO, Liberty Media: “Formula 1 delivered robust financial performance… In our first months of MotoGP ownership, we are working on near-term operating enhancements… increasingly confident in the quality of the sport and the strength of its fan base… approaching the final stages to complete our split-off of Liberty Live in December” .
• Stefano Domenicali, President & CEO, F1: “another incredible season… cultural cornerstone… new US distribution partnership with Apple… strong race renewals and early extensions in key markets… confident in the next chapter of growth at F1” .
• Carmelo Ezpeleta, President & CEO, MotoGP: “record attendance and growth in TV viewership, digital engagement and social followers… confident in the long-term opportunity” .

Q&A Highlights

• The Q3 2025 earnings call transcript was not available in the document repository; therefore, detailed Q&A topics, guidance clarifications, and tone shifts cannot be cited from primary transcripts [List: earnings-call-transcript returned none].

Estimates Context

• Wall Street consensus (S&P Global) for Q3 2025 EPS/revenue/EBITDA was unavailable for FWONA/FWONK in our tool mapping at the time of this analysis; comparisons vs estimates are N/A.
• Historical actuals (S&P Global) indicate revenue of $447M in Q1 2025 and $1,341M in Q2 2025; EBITDA of $67M in Q1 2025 and $356M in Q2 2025, providing context for the Q3 print at $1,085M revenue and $297M Adjusted OIBDA (company) . Q1/Q2 values marked with asterisks in the table above are Values retrieved from S&P Global.

Key Takeaways for Investors

• Mix quality improved: despite one fewer race, hospitality/licensing growth and new partners buoyed Adjusted OIBDA; this underscores durability in non-race revenue streams .
• Strategic optionality: Apple US broadcast partnership and marquee race renewals extend multi-year visibility; expect continued monetization of F1’s global audience and growing US footprint .
• MotoGP integration: early sponsorship/commercial momentum, but FX and servicing costs temper near-term margin; medium-term synergy and monetization levers remain .
• Balance sheet watch: post-acquisition leverage rose (F1 3.0x; MotoGP 5.6x); interest expense elevated, but F1 Term Loan B margin step-down provides some relief; focus on cash generation through seasonality and 2026 Concorde framework .
• Liberty Live split-off (Dec 15 target) is a discrete catalyst that could sharpen the F1/MotoGP equity story and remove tracking structure complexity .
• No numeric guidance and estimates mapping gaps limit beat/miss framing; narrative and contract wins are current stock drivers until full consensus coverage normalizes .

Citations: Earnings press release and attributed financials ; 10-Q financial statements, segment details and EPS -. Values marked with asterisk retrieved from S&P Global.