Liberty Media Liberty Formula One (FWONK) AI Stock Analysis

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Liberty Media Liberty Formula One

(NASDAQ:FWONK)

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Rating:71Outperform

Price Target:$118.00▲(6.14% Upside)

Action:reiterated

Date:11/06/26

The score is driven primarily by strong financial performance—especially robust and improving free cash flow—supported by a positive earnings call highlighting sustained demand and growth initiatives. The main constraints are a stretched valuation (high P/E) and overbought technical signals that raise near-term volatility/pullback risk.

Positive Factors

Strong cash generationFormula 1’s strong cash generation indicates that reported earnings are converting into funding for investment, debt service, and shareholder-oriented capital allocation. Free cash flow closely tracking net income also supports a durable financial model, although annual results can vary.

Negative Factors

Meaningful leverageDebt of approximately $5.5 billion and 3.0x net leverage reduce financial flexibility and make cash allocation more sensitive to operating performance. Leverage can constrain investment or increase refinancing exposure if race-related revenue, media income, or cash conversion weakens.

Liberty Media Liberty Formula One Key Performance Indicators (KPIs)

Revenue By SegmentBreaks down revenue from different segments, indicating which areas drive growth and where the company might be vulnerable or poised for expansion.

Chart Insights

Formula 1 remains the revenue engine, with quarter-to-quarter swings driven by the race calendar — the extra early-season race fueled the recent Q1 surge in revenue and OIBDA, while Liberty’s move to a 22-race model (and cancelled Middle East events) will mechanically depress Q2 recognition. MotoGP began contributing late 2025, diversifying top-line and digital reach but introducing freight/fuel-driven margin volatility. Corporate timing (plaza, licensing) and eliminations amplify quarter noise. Bottom line: strong commercial momentum, but near-term recognition and geopolitical timing risk create pronounced quarterly volatility.

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The Fly

Liberty Media Liberty Formula One (FWONK) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $27.73B
Dividend Yield: ―
Average Volume (3M): 2.40M
Price to Earnings (P/E): 47.5
Beta (1Y): 0.50
Revenue Growth: 10.89%
EPS Growth: 230.55%
Country: US
Employees: 1,674
Sector: Communication Services
Sector Strength: 60
Industry: Entertainment

Liberty Media Liberty Formula One Business Overview & Revenue Model

Company Description

Formula One Group is a global entity primarily involved in the motorsports industry, both domestically in the United States and abroad. It holds the exclusive commercial rights for the Formula 1 World Championship, an extensive series of motor races...

Liberty Media Liberty Formula One Earnings Call Summary

Earnings Call Date:Nov 05, 2026(Q3-2026)|% Change Since:12.37%|Next Earnings Date:Mar 03, 2027

Earnings Call SentimentPositive

The call was strongly positive overall. Management highlighted robust Formula 1 demand, record and sold-out attendance, digital and hospitality growth, expanding partnerships, MotoGP engagement momentum, and significant long-term growth initiatives. These positives outweighed the explicitly stated declines in year-to-date Formula 1 and MotoGP financial results, the corporate adjusted OIBDA loss, leverage, and ongoing geopolitical calendar uncertainty.

Positive Updates

Strong Operating Performance and Continued Investment

Management said Liberty Media's operating businesses performed "incredibly well" and had a great third quarter. The company remains focused on continuing to invest behind its two iconic franchises, Formula 1 and MotoGP.

Negative Updates

Formula 1 Year-to-Date Adjusted OIBDA Decline

Formula 1 year-to-date revenue was relatively flat despite the lower race count, while adjusted OIBDA declined 5%. Management attributed the decline to calendar variance and related revenue fluctuations.

Company Guidance

Liberty expects the Formula 1 race count to be 23 races for the year, noted that additional 2026 calendar changes may be made, and expects to return to a full 24-race calendar next season; for the full year, it still expects to see roughly 200-basis-point improvement in leverage on the team-payments metric, with the payout percentage expected to remain relatively stable through 2030. In 2027, Formula 1 expects to expand the Sprint format to 10 Sprints, up from 6 this year, while MotoGP expects Argentina, Adelaide, and Australia to come online, with renewals “probably around 7. 75% of the calendar.”

Liberty Media Liberty Formula One Financial Statement Overview

Summary

Financials are solid overall: multi-year revenue growth (to $4.48B TTM), healthy current margins (gross ~33%, operating ~17%, net ~12%), and standout free cash flow ($1.08B TTM, +37%). Offsets are historical earnings volatility (losses in 2021 and 2024), year-to-year cash-flow variability, and a recent uptick in total debt to ~$5.53B.

Income Statement

78Positive

Balance Sheet

74Positive

Cash Flow

85Very Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.48B	4.48B	3.65B	3.22B	2.57B	2.14B
Gross Profit	1.50B	1.12B	1.17B	982.00M	823.00M	647.00M
EBITDA	1.53B	1.15B	577.00M	794.00M	762.00M	363.00M
Net Income	558.00M	555.00M	-30.00M	185.00M	558.00M	-190.00M
Balance Sheet
Total Assets	16.75B	15.40B	11.76B	10.27B	11.02B	11.66B
Cash, Cash Equivalents and Short-Term Investments	2.34B	1.05B	2.63B	1.41B	1.73B	2.07B
Total Debt	5.53B	5.12B	2.99B	2.91B	2.95B	3.63B
Total Liabilities	8.21B	6.95B	4.37B	3.85B	4.08B	4.72B
Stockholders Equity	7.88B	7.76B	7.39B	6.42B	6.91B	6.34B
Cash Flow
Free Cash Flow	969.00M	751.00M	492.00M	193.00M	243.00M	464.00M
Operating Cash Flow	1.14B	870.00M	567.00M	619.00M	534.00M	481.00M
Investing Cash Flow	-772.00M	-3.20B	-292.00M	-683.00M	394.00M	-600.00M
Financing Cash Flow	-215.00M	408.00M	951.00M	-435.00M	-1.27B	512.00M

Liberty Media Liberty Formula One Technical Analysis

Technical Analysis SentimentPositive

Last Price111.17

Price Trends

50DMA95.13Positive

100DMA97.22Positive

200DMA92.48Positive

Market Momentum

MACD3.94Negative

RSI81.98Negative

STOCH98.74Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FWONK, the sentiment is Positive. The current price of 111.17 is above the 20-day moving average (MA) of 95.97, above the 50-day MA of 95.13, and above the 200-day MA of 92.48, indicating a bullish trend. The MACD of 3.94 indicates Negative momentum. The RSI at 81.98 is Negative, neither overbought nor oversold. The STOCH value of 98.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FWONK.

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

3 New Risks

1.The Transactions are subject to conditions, some or all of which may not be satisfied, or completed on a timely basis, if at all. Failure to complete the Transactions could negatively impact our business and/or financial results and cause the stock price of Liberty SiriusXM common stock to decline, perhaps significantly.Q4, 2023

2.The Merger Agreement contains provisions that could discourage a potential competing acquiror of us (with respect to the Liberty SiriusXM Group) or Liberty Sirius XM Holdings, or could result in any competing proposal being at a lower price than it otherwise might be.Q4, 2023

3.Sirius XM Holdings is migrating its billing system and payment processing functions to a new service provider.Q4, 2023

Liberty Media Liberty Formula One Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

FWONK against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOXA	82Outperform	$36.58B	12.66	17.65%	0.84%	9.01%	7.09%
DIS	77Outperform	$205.84B	24.62	7.87%	1.25%	5.31%	-23.96%
FWONK	71Outperform	$27.18B	47.52	7.20%	―	10.89%	230.55%
LYV	62Neutral	$42.00B	-1801.60	90.09%	―	13.47%	-107.10%
Sector *	60Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
MANU	43Neutral	$4.00B	-70.72	-24.51%	―	5.46%	-34.39%

* Communication Services Sector Average

Performance Comparison

FWONK and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
FWONK	Liberty Media Corporation Series C Liberty Formula One	111.17	12.36	12.51%
LYV	Live Nation Entertainment	180.16	44.30	32.61%
DIS	Walt Disney Company	119.65	15.36	14.73%
MANU	Manchester United Plc	23.71	8.04	51.31%
FOXA	Fox Corporation Class A	67.98	3.74	5.82%

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.

Date of analysis: Nov 06, 2026

Liberty Media Liberty Formula One AI Stock Analysis