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Liberty Media Liberty Formula One
(NASDAQ:FWONA)
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Rating:66Neutral
Price Target:
$95.00
▲(1.69% Upside)
Action:Downgraded
Date:09/06/26
FWONA scores above average primarily on strong financial quality (healthy margins, strong free cash flow, and very low reported TTM leverage), but the overall score is held back by weak near-term technical momentum, a high P/E valuation, and earnings-call near-term pressure from calendar-driven revenue/OIBDA declines and leverage sensitivity to race timing.
Positive Factors
Strong cash generation
Robust operating and free cash flow gives the Formula One Group internal funding capacity for investment, debt service, and strategic initiatives. High cash conversion also supports earnings quality and provides resilience when race timing temporarily affects reported revenue.
Negative Factors
F1 revenue and OIBDA contraction
The reported decline shows that F1’s financial performance remains sensitive to race scheduling and season-based revenue recognition. Even if timing-related, weaker revenue and OIBDA can pressure cash planning, operating leverage, and near-term debt metrics across the business.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Robust operating and free cash flow gives the Formula One Group internal funding capacity for investment, debt service, and strategic initiatives. High cash conversion also supports earnings quality and provides resilience when race timing temporarily affects reported revenue.
Read all positive factors
Liberty Media Liberty Formula One Key Performance Indicators (KPIs)
Liberty Media Liberty Formula One (FWONA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.76B
Dividend YieldN/A
Average Volume (3M)135.55K
Price to Earnings (P/E)48.0
Beta (1Y)0.61
Revenue Growth12.23%
EPS Growth47.39%
CountryUS
Employees1,674
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)1.84
Shares Outstanding23,991,058
10 Day Avg. Volume114,263
30 Day Avg. Volume135,546
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)2.88
Price to Sales (P/S)4.99
P/FCF Ratio29.75
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$115.20Price Target Upside23.31% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)1.8
Revenue Forecast (FY)$4.76B
Liberty Media Liberty Formula One Business Overview & Revenue Model
Company Description
Formula One Group is involved in the motorsports industry, conducting business both in the United States and globally. Its primary function is holding the commercial rights to the Formula One World Championship, an extensive motor racing series th...
How the Company Makes Money
The Formula One Group primarily makes money by commercializing the Formula 1 World Championship across several major revenue streams. (1) Race promotion fees: F1 enters into agreements with race promoters (often local organizers and/or government-...
Liberty Media Liberty Formula One Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 30, 2026
Earnings Call Sentiment Neutral
The call presents a mix of meaningful operational and commercial progress — strong audience and engagement growth (digital, social, attendance), sponsorship and licensing momentum, strategic deals (Las Vegas extension, MotoGP team/manufacturer agreements), and prudent liquidity/debt refinancing actions — counterbalanced by short-term financial impacts driven primarily by calendar timing and recognition issues at F1 that produced material year-to-date revenue (-15%) and adjusted OIBDA (-30%) declines, modestly higher SG&A and a small uptick in net leverage (3.4x). Management frames the declines as timing/calendar-related and highlights underlying growth trends; accordingly, the positives and negatives are roughly balanced in significance.Positive Updates
Strong Digital Viewership Growth on Apple TV
Formula One viewership on Apple TV is up year-over-year with total hours watched up 13%; Apple distribution attracting a younger and more female U.S. audience and amplifying discovery and engagement.
Negative Updates
Year-to-Date Revenue Decline at Formula One
F1 year-to-date revenue declined 15% driven primarily by calendar variance and recognition timing (8 of 22 races staged year-to-date versus 11 of 24 prior year; season-based revenue recognized ~36% vs ~46% prior period).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Digital Viewership Growth on Apple TV
Formula One viewership on Apple TV is up year-over-year with total hours watched up 13%; Apple distribution attracting a younger and more female U.S. audience and amplifying discovery and engagement.
Read all positive updates
Company Guidance
Liberty guided to a 23‑race 2026 calendar (Bahrain rescheduled to Malaysia) with season‑based revenue costs and true‑ups to begin accruing in Q3 and an expectation to return to a full 24‑race calendar next season; F1’s Q2 race count fell 44% (5 vs. 9) and YTD race count fell 27% (8 vs. 11), driving YTD revenue down ~15% and adjusted OIBDA down ~30% as only ~36% of season‑based revenue has been recognized (8/22 races) versus ~46% prior year (11/24). Management said team payments were 61.7% of pre‑team‑share adjusted OIBDA YTD with an expected ~200 basis‑point improvement for the full year and relatively stable payout percentages thereafter, Liberty ended the quarter with ~ $1.5B cash/liquid investments (F1 $1.0B, MotoGP $142M), ~ $5.0B total debt (F1 $3.3B, MotoGP $1.0B, corporate $497M), undrawn revolvers (F1 $500M, MotoGP €100M) and net leverage of ~3.4x, and noted MotoGP (closed July 3, 2025) has manufacturer/team agreements through 2031, reported YTD revenue and adjusted OIBDA growth on a constant‑currency basis, and completed debt repricing (EUR 720M TLB, USD 200M TLA, EUR 100M revolver) with expected future margin reductions as the business delevers.Liberty Media Liberty Formula One Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
83
Very Positive
Cash Flow
79
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.34B | 4.48B | 3.65B | 3.22B | 2.57B | 2.14B |
| Gross Profit | 1.42B | 1.12B | 1.17B | 982.00M | 823.00M | 647.00M |
| EBITDA | 1.36B | 1.15B | 577.00M | 794.00M | 762.00M | 363.00M |
| Net Income | 461.00M | 555.00M | -30.00M | 185.00M | 558.00M | -190.00M |
Balance Sheet | ||||||
| Total Assets | 15.88B | 15.40B | 11.76B | 10.27B | 11.02B | 11.66B |
| Cash, Cash Equivalents and Short-Term Investments | 1.47B | 1.05B | 2.63B | 1.41B | 1.73B | 2.07B |
| Total Debt | 4.92B | 5.12B | 2.99B | 2.91B | 2.95B | 3.63B |
| Total Liabilities | 7.50B | 6.95B | 4.37B | 3.85B | 4.08B | 4.72B |
| Stockholders Equity | 7.62B | 7.76B | 7.39B | 6.42B | 6.91B | 6.34B |
Cash Flow | ||||||
| Free Cash Flow | 786.00M | 751.00M | 492.00M | 193.00M | 243.00M | 464.00M |
| Operating Cash Flow | 915.00M | 870.00M | 567.00M | 619.00M | 534.00M | 481.00M |
| Investing Cash Flow | -3.16B | -3.20B | -292.00M | -683.00M | 394.00M | -600.00M |
| Financing Cash Flow | 221.00M | 408.00M | 951.00M | -435.00M | -1.27B | 512.00M |
Liberty Media Liberty Formula One Technical Analysis
Neutral
93.42
Price Trends
91.64
Negative
86.95
Positive
84.56
Positive
Market Momentum
-0.37
Positive
37.25
Neutral
6.12
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FWONA, the sentiment is Neutral. The current price of 93.42 is below the 20-day moving average (MA) of 93.71, above the 50-day MA of 91.64, and above the 200-day MA of 84.56, indicating a neutral trend. The MACD of -0.37 indicates Positive momentum. The RSI at 37.25 is Neutral, neither overbought nor oversold. The STOCH value of 6.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FWONA.
Liberty Media Liberty Formula One Risk Analysis
Liberty Media Liberty Formula One disclosed 106 risk factors in its most recent earnings report. Liberty Media Liberty Formula One reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Liberty Media Liberty Formula One Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $181.84B | 21.66 | 7.87% | 1.42% | 5.31% | -23.96% | |
70 Outperform | $25.96B | 15.02 | 14.74% | 0.98% | 5.07% | -20.95% | |
66 Neutral | $23.76B | 48.03 | 5.94% | ― | 12.23% | 47.39% | |
66 Neutral | $35.21B | 61.60 | 6.41% | 1.67% | 35.92% | 15.44% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | $40.88B | -157.73 | 73.28% | ― | 10.75% | -146.20% | |
54 Neutral | $70.93B | -22.24 | -9.22% | ― | -5.87% | -512.89% |
* Communication Services Sector Average
FWONA
Liberty Media Liberty Formula One
88.38
-3.82
-4.14%
LYV
Live Nation Entertainment
173.50
4.10
2.42%
DIS
Walt Disney
105.31
-11.83
-10.10%
TKO
TKO Group Holdings
186.01
-11.39
-5.77%
FOX
Fox
58.42
2.19
3.90%
WBD
Warner Bros
28.25
15.90
128.74%
Liberty Media Liberty Formula One Corporate Events
Executive/Board Changes
Liberty Media Appoints New Chief Legal Officer, Advisor
Positive
Sep 2, 2026
On September 2, 2026, Liberty Media Corporation announced that Philip J. Boeckman will become Chief Legal Officer effective October 1, 2026, overseeing the company’s legal functions. Boeckman, a longtime partner at Cravath, Swaine Moore LLP...
Business Operations and StrategyPrivate Placements and Financing
Liberty Formula One Completes $690 Million Convertible Notes Offering
Positive
Aug 13, 2026
On August 13, 2026, Liberty Media Corporation closed a private offering of $690 million in 2.375% senior convertible notes due 2032, sold to institutional buyers and convertible into its Series C FWONK shares at an initial price of about $138.68 p...
Business Operations and StrategyPrivate Placements and Financing
Liberty Formula One announces new convertible notes offering
Neutral
Aug 10, 2026
On August 10, 2026, Liberty Media Corporation announced a proposed private offering of $600 million in convertible senior notes due 2032, with an option for initial purchasers to buy up to an additional $90 million in notes. The notes will be seni...
Business Operations and StrategyPrivate Placements and Financing
MotoGP Unit Reprices Loans, Reduces Net Debt Load
Positive
Jun 18, 2026
On June 17, 2026, Liberty Media said its Spanish subsidiary MotoGP Sports Entertainment Group closed a repricing of its first lien Term Loan B, Term Loan A and multicurrency revolving credit facility, cutting the Term Loan B principal from €...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.