The case for & against
Bull & Bear analysis
Bullish
Fox Corporation (NASDAQ: FOX) operates as a leading media company delivering news and entertainment across multiple platforms, including television, cable, and digital streaming. Recently, the company has made significant strides in the streaming market with its strategic acquisition of Roku, positioning itself as a dominant player in the connected-TV space. The firm maintains considerable leverage in high-demand segments such as live sports and news, bolstered by robust digital assets like Tubi and a growing direct-to-consumer initiative.
Bull says
- ↑Total revenues rose 27% YoY to $4.56B, driven by strong sports ad demand
- ↑Advertising revenue jumped 65%, led by $800M Super Bowl sales
- ↑Tubi digital revenue climbed 35% YoY, expanding Fox’s streaming footprint
- ↑$22B Roku acquisition aims to boost connected-TV engagement despite higher debt
- ↑$800M share repurchased in FY25; $7B buyback authorization supports shares
- ↑Favorable rate sensitivity and positive analyst revisions signal momentum
Bear says
- ↓Roku deal adds $8B debt, pro forma net leverage at 2.8x
- ↓Net income down to $346M from $666M YoY; profitability margins remain slim
- ↓Weak growth outlook and potential dilution from share offerings
- ↓High short interest indicates market skepticism on stock recovery
- ↓Rising sports rights costs and production expenses squeeze margins
- ↓No dividend yield and tight liquidity limit cash return potential
Investment themes with FOX
High Dividend Yield↑ +0.32%
Companies paying above-average dividends
AVGO · JPM · XOM
Earnings Call · Q3 2025 · Mgmt. Guidance
Updated 06-28-2026neutral
Transcript signals
Bull points
- Total company advertising revenue grew 65% in the quarter, including the Super Bowl which generated over $800 million of gross advertising revenue across our businesses, a record for both our national broadcast network and our local TV stations.
- These robust results continue to build upon Fox's noteworthy first half and put us on track to complete a strong fiscal year. Notably, these third quarter results reflected the highest free cash flow in Fox's history.
- We remain confident that our best-in-class assets, disciplined approach and fortress like balance sheet will continue to set us apart.
Bear points
- Quarterly adjusted EBITDA was $856 million as compared to the $891 million reported in the prior year quarter as these revenue increases were offset by higher expenses.
- Quarterly adjusted EBITDA was $856 million as compared to the $891 million reported in the prior year quarter as these revenue increases were offset by higher expenses. This was primarily due to higher sports rights amortization and production costs associated with our broadcast of the Super Bowl.
- Expenses at the Television segment increased 47%, driven by our broadcast to Super Bowl LIX as well as continued investment at Tubi.
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