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Liberty Media Liberty Formula One
(NASDAQ:FWONK)
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Rating:71Outperform
Price Target:
$106.00
▲(9.22% Upside)
Action:Reiterated
Date:08/07/26
FWONK scores a 71 primarily on strong and improving financial performance (profitability rebound, solid free cash flow, and a very low-leverage TTM balance sheet). The earnings call adds moderate support due to strong commercial momentum but is tempered by calendar-driven near-term declines in F1 revenue/OIBDA and elevated net leverage (~3.4x). Technicals are mixed (near-term softness but longer-term uptrend), and valuation is only average with a ~26.8 P/E and no dividend yield provided.
Positive Factors
Digital & Audience Growth
Sustained digital audience expansion increases long-term media rights value, sponsorship reach and owned-distribution monetization. Larger, stickier global viewership supports recurring licensing, targeted advertising and higher lifetime value from fans, reducing sole dependence on live event variability.
Negative Factors
Calendar-Driven Revenue Variability
Revenue and EBITDA recognition are structurally tied to the race calendar; scheduling disruptions or fewer staged events materially depress near-term results. This creates multi-quarter earnings and cashflow volatility, complicating forecasting and potentially pressuring sponsor and promoter contracts during weak periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Digital & Audience Growth
Sustained digital audience expansion increases long-term media rights value, sponsorship reach and owned-distribution monetization. Larger, stickier global viewership supports recurring licensing, targeted advertising and higher lifetime value from fans, reducing sole dependence on live event variability.
Read all positive factors
Liberty Media Liberty Formula One Key Performance Indicators (KPIs)
Any
Revenue By Segment
Breaks down revenue from different segments, indicating which areas drive growth and where the company might be vulnerable or poised for expansion.
Breaks down revenue from different segments, indicating which areas drive growth and where the company might be vulnerable or poised for expansion.
Data provided by:
The Fly
The FlyLiberty Media Liberty Formula One (FWONK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$24.38B
Dividend YieldN/A
Average Volume (3M)1.16M
Price to Earnings (P/E)26.8
Beta (1Y)0.58
Revenue Growth35.10%
EPS GrowthN/A
CountryUS
Employees1,674
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)3.35
Shares Outstanding224,233,460
10 Day Avg. Volume1,367,797
30 Day Avg. Volume1,163,775
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)3.18
Price to Sales (P/S)5.50
P/FCF Ratio32.80
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
$121.88Price Target Upside25.58% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)1.8
Revenue Forecast (FY)$4.72B
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 rac...
How the Company Makes Money
Formula One Group’s earnings are primarily driven by monetizing the commercial rights associated with the Formula 1 World Championship. Key revenue streams generally include: (1) Media rights: licensing F1 race content and related programming to b...
Liberty Media Liberty Formula One Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| Next Earnings Date:Oct 30, 2026
Earnings Call Sentiment Positive
The call presented a generally positive operational and commercial outlook — strong digital audience growth, robust demand for premium experiences, meaningful licensing and sponsorship momentum, MotoGP top-line and OIBDA improvement, and active balance-sheet management. These positives were tempered by near-term financial headwinds driven largely by calendar variability (fewer staged F1 races), which caused notable year-to-date revenue (-15%) and adjusted OIBDA (-30%) declines, a modest uptick in net leverage (~3.4x), and some one-time comparability issues. Management framed the financial weakness as timing/calendar-driven while highlighting durable underlying growth trends and long-term opportunities across F1 and MotoGP.Positive Updates
Strong Digital & Audience Growth
U.S. viewership on Apple TV up year-over-year with total hours watched up 13%; F1 social media followers grew 19% YoY; YouTube total views surpassed 13 billion, up 30% YoY; YouTube Highlights ~200 million views and >15 million hours watched.
Negative Updates
Calendar Variability Driven Revenue & OIBDA Declines at F1
Year-to-date F1 revenue declined 15% and adjusted OIBDA declined 30%, driven primarily by calendar effects (8 races staged YTD vs. 11 prior year) and a 44% decline in race count for the quarter.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Digital & Audience Growth
U.S. viewership on Apple TV up year-over-year with total hours watched up 13%; F1 social media followers grew 19% YoY; YouTube total views surpassed 13 billion, up 30% YoY; YouTube Highlights ~200 million views and >15 million hours watched.
Read all positive updates
Company Guidance
Management guided to a 2026 calendar of 23 races (Bahrain rescheduled to Malaysia) with season‑based revenue costs and true‑ups to begin in Q3 and a return to a full 24‑race calendar next season; they expect team payments of 61.7% of pre‑team‑share adjusted OIBDA year‑to‑date and roughly a 200‑basis‑point improvement in that leverage for the full year with payouts then staying relatively stable through 2030. Financially, Liberty ended the quarter with about $1.5 billion of cash and liquid investments (~$1.0B at F1, $142M at MotoGP), approximately $5.0 billion of debt (~$3.3B F1, $1.0B MotoGP, $497M corporate), undrawn revolvers ($500M F1, €100M MotoGP) and net leverage of 3.4x; MotoGP’s new €720M Term‑Loan B / $200M Term‑Loan A and €100M revolver were priced with expected margin reductions as the business delevers. They also noted F1 YTD revenue down 15% and adjusted OIBDA down 30% (~36% of season revenue recognized vs. ~46% prior period due to fewer staged races), while MotoGP revenue and adjusted OIBDA grew YTD, and both businesses remain in compliance with debt covenants.Liberty Media Liberty Formula One Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
74
Positive
Cash Flow
80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.75B | 4.48B | 3.65B | 3.22B | 2.57B | 2.14B |
| Gross Profit | 1.29B | 1.12B | 1.17B | 982.00M | 823.00M | 647.00M |
| EBITDA | 1.43B | 1.15B | 577.00M | 794.00M | 762.00M | 363.00M |
| Net Income | 607.00M | 555.00M | -30.00M | 185.00M | 558.00M | -190.00M |
Balance Sheet | ||||||
| Total Assets | 15.89B | 15.40B | 11.76B | 10.27B | 11.02B | 11.66B |
| Cash, Cash Equivalents and Short-Term Investments | 1.33B | 1.05B | 2.63B | 1.41B | 1.73B | 2.07B |
| Total Debt | 5.02B | 5.12B | 2.99B | 2.91B | 2.95B | 3.63B |
| Total Liabilities | 7.49B | 6.95B | 4.37B | 3.85B | 4.08B | 4.72B |
| Stockholders Equity | 7.73B | 7.76B | 7.39B | 6.42B | 6.91B | 6.34B |
Cash Flow | ||||||
| Free Cash Flow | 730.00M | 751.00M | 492.00M | 193.00M | 243.00M | 464.00M |
| Operating Cash Flow | 836.00M | 870.00M | 567.00M | 619.00M | 534.00M | 481.00M |
| Investing Cash Flow | -3.05B | -3.20B | -292.00M | -510.00M | 394.00M | -600.00M |
| Financing Cash Flow | 369.00M | 408.00M | 965.00M | -435.00M | -1.27B | 512.00M |
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 | $24.38B | 26.81 | 10.72% | ― | 35.10% | ― | |
71 Outperform | $167.04B | 15.37 | 10.29% | 1.58% | 4.02% | 27.66% | |
70 Outperform | $23.06B | 13.56 | 14.86% | 1.13% | 0.60% | -5.58% | |
66 Neutral | $34.75B | 63.58 | 5.96% | 1.72% | 47.04% | 33.90% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | $40.52B | -158.30 | 73.28% | ― | 10.75% | -146.20% | |
56 Neutral | $65.94B | -38.12 | -4.94% | ― | -2.78% | 84.26% |
* Communication Services Sector Average
FWONK
Liberty Media Liberty Formula One
96.05
-1.05
-1.08%
LYV
Live Nation Entertainment
183.52
35.25
23.77%
DIS
Walt Disney
101.76
-9.51
-8.55%
TKO
TKO Group Holdings
183.07
24.79
15.66%
FOX
Fox
52.20
3.65
7.51%
WBD
Warner Bros
25.97
14.11
118.97%
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.