Liberty Media Corporation — Second Quarter 2026 Earnings Summary

Financial Performance

• Consolidated revenue decreased 30% to $934 million for the three months ended June 30, 2026, and 8% to $1,645 million for the six months ended June 30, 2026, compared to the same periods in 2025.
• Formula 1 revenue decreased 38% to $764 million for the quarter and 15% to $1,381 million for the six months, driven by fewer races held (5 vs. 9 in Q2; 8 vs. 11 YTD).
• MotoGP revenue decreased 2% to $170 million for the quarter and increased 6% to $264 million for the six months on a pro-forma basis.
• Consolidated operating income was $88 million for the quarter and $152 million for the six months, down from $280 million and $213 million respectively in the prior year periods.
• Consolidated Adjusted OIBDA decreased 44% to $206 million for the quarter and 12% to $387 million for the six months.
• Formula 1 Adjusted OIBDA decreased 61% to $139 million for the quarter and 30% to $311 million for the six months.
• MotoGP Adjusted OIBDA increased 3% to $76 million for the quarter and 10% to $92 million for the six months on a pro-forma basis.
• Net earnings attributable to Liberty stockholders were $5 million for the quarter and $62 million for the six months, compared to $204 million and $209 million in the prior year periods.
• Total cash and cash equivalents increased to $1,465 million as of June 30, 2026, from $1,332 million as of March 31, 2026.
• Total debt decreased to $4,855 million as of June 30, 2026, from $4,989 million as of March 31, 2026.
• Deferred revenue increased significantly to $1,117 million as of June 30, 2026, from $263 million as of December 31, 2025.
• Consolidated leverage ratio increased to 3.4x as of June 30, 2026, from 3.0x as of March 31, 2026.

Guidance and Future Outlook

• The 2026 Formula 1 calendar is now assumed to hold 23 races, following the rescheduling of the Bahrain Grand Prix to Malaysia in October.
• Liberty Media stated that demand for its brands remains robust and resilient despite global uncertainties.
• Management indicated a focus on disciplined capital allocation to evaluate strategic investment opportunities to enhance long-term shareholder value.
• Formula 1 noted continued momentum with expanding reach and deepening fan engagement.
• MotoGP management expressed encouragement regarding opportunities to grow the sport globally.

Business Segments and Product Lines

• Formula 1:
  • Primary revenue sources include race promotion fees, media rights fees, and sponsorship fees.
  • Media rights revenue was impacted by the absence of one-time revenue from the F1 movie release in the prior year period.
  • Other revenue growth was driven by higher hospitality revenue at recurring events, licensing revenue, and activities at the Grand Prix Plaza in Las Vegas.
  • Team payments decreased due to pro rata recognition of costs related to the calendar variance.
• MotoGP:
  • Revenue is primarily derived from race promotion fees, media rights fees, and sponsorship fees.
  • Primary revenue growth in the six-month period was driven by race promotion mix and new sponsors, partially offset by declines in contractual media rights and title sponsorship.
  • Other revenue declined due to a new hospitality agreement with Quint, which is now recognized on a net basis, partially offset by growth in the FIM World Superbike Championship.
  • MotoGP re-priced debt facilities and funded $114 million in debt reduction.
  • Signed new 5-year agreements with all manufacturers and teams through 2031.
  • Renewed agreements with Malaysia through 2031 and Silverstone through 2028.
  • Extended broadcast agreements with DAZN in Spain and Sky DACH (Austria, Germany, Switzerland).
  • Appointed CAA as the global sponsorship agency.
• Corporate and Other:
  • Includes rental income from Grand Prix Plaza in Las Vegas ($6 million in Q2, $12 million YTD).
  • Corporate and other operating income was $(22) million for the quarter and $(41) million for the six months.

Market and Competitive Landscape

• Formula 1 reported strong fan engagement with attendance, audiences, and digital impressions up season-to-date.
• Formula 1 viewership with Apple was up year-over-year, with total hours watched up 13% season-to-date.
• MotoGP experienced some of the tightest performances between riders in the sport's history.
• Formula 1 and MotoGP are in compliance with their respective debt covenants as of June 30, 2026.

Risks and Challenges

• Formula 1 revenue and costs were negatively impacted by calendar variance, specifically holding four fewer races in Q2 and three fewer races YTD compared to 2025.
• The absence of the Saudi Arabian Grand Prix in April 2026 contributed to the one fewer event scheduled for 2026 compared to 2025.
• MotoGP results are subject to translational impacts from foreign exchange fluctuations as the majority of revenue and costs are Euro-denominated.
• Forward-looking statements involve risks including consumer demand for live entertainment, regulatory matters, geopolitical unrest, litigation outcomes, and failure of third parties to perform.

Management Commentary and Tone

• Derek Chang, President and CEO, stated that demand remains robust and resilient, emphasizing disciplined capital allocation.
• Stefano Domenicali, Formula 1 President and CEO, highlighted strong fan engagement, adaptability, and positive momentum from partnerships with Apple, ServusTV, and Pirelli.
• Carmelo Ezpeleta, MotoGP CEO, expressed thrill regarding on-track competition and noted the signing of long-term agreements with manufacturers and teams as a foundation for growth.

Other Key Points

• Announced a 10-year extension of the Las Vegas Grand Prix through 2037.
• Extended the Pirelli partnership through 2028.
• Renewed a multi-year broadcast agreement with ServusTV in Austria.
• No repurchases of Liberty Media common stock occurred from May 1 through July 31, 2026.
• The total remaining repurchase authorization as of August 1, 2026, is $1.1 billion.
• Quint was consolidated in results until the split-off of Liberty Live Holdings, Inc. on December 15, 2025.
• MotoGP results presented are pro forma as if the acquisition closed on January 1, 2024.
• Liberty Media incurred $20 million of corporate-level selling, general, and administrative expense in the second quarter.