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Liberty Media Corporation Series A Liberty Formula One (FWONA)
NASDAQ:FWONA
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Liberty Media Liberty Formula One (FWONA) AI Stock Analysis

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FWONA

Liberty Media Liberty Formula One

(NASDAQ:FWONA)

Rating:74Outperform
Price Target:
$99.00
▲(9.78% Upside)
Liberty Media's strong revenue growth and strategic direction in Formula One are positive, bolstered by effective cash flow management. However, profitability issues and valuation challenges due to negative earnings impact the overall score. Technical indicators show strength but caution is advised due to potential overbought conditions. Recent earnings call data further supports optimism with strong engagement and revenue visibility, despite some cost and negotiation hurdles.
Positive Factors
Global Growth and Market Presence
The sport's considerable global growth momentum and lack of public market sports assets are key reasons for a BUY recommendation on Formula One Group.
Revenue and Financial Performance
Formula 1 delivered a clean beat on revenue and OIBDA despite a heavier event mix.
Negative Factors
Event Performance and Profitability
The Las Vegas Grand Prix fell short on internal budgeting for both revenues and OIBDA due to underperformance in ticket sales, impacting immediate profitability expectations.
Market Position in the U.S.
Despite improvements, F1 is still not considered among the top tier of team sports in the U.S. compared to NASCAR.

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

Liberty Media Liberty Formula One Business Overview & Revenue Model

Company DescriptionLiberty Media Corporation, through its subsidiary Liberty Formula One, operates as the owner of Formula One, the premier global motorsport championship and an iconic brand in the world of racing. Formula One consists of a series of races, known as Grands Prix, held worldwide on various circuits. The company is involved in the promotion and commercialization of the Formula One World Championship, working closely with race promoters, teams, and sponsors to deliver a highly engaging sports and entertainment experience to a global audience.
How the Company Makes MoneyLiberty Formula One generates revenue through multiple streams, primarily from race promotion fees, broadcasting rights, advertising, and sponsorship deals. A significant portion of revenue comes from hosting fees paid by race promoters for the rights to host a Grand Prix event. Additionally, the company earns substantial income from selling exclusive broadcasting rights to television networks and digital platforms across the globe. Sponsorship and advertising also play a crucial role, as brands seek to associate themselves with the high-profile sport, leading to lucrative commercial partnerships. Merchandise sales and licensing agreements further contribute to the company's earnings, capitalizing on the sport's global fanbase. These revenue streams are supported by strategic partnerships with racing teams, sponsors, and media companies, enhancing the overall value proposition of Formula One.

Liberty Media Liberty Formula One Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 31, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong performance in the F1 segment and successful strategic acquisitions and partnerships, indicating growth. However, there are challenges related to financial adjustments and increased debt due to the MotoGP acquisition.
Q2-2025 Updates
Positive Updates
Strong F1 Performance
Formula One's business is performing incredibly well with revenue up 14% and adjusted OIBDA up 21% year-to-date, driven by sponsorship, race promotion, and media rights growth.
Successful MotoGP Acquisition
Liberty Media completed its acquisition of MotoGP, acquiring 84% of the company. The acquisition is expected to enhance the company's growth, with strategic plans already underway.
Record Attendance and Engagement
MotoGP saw a 6% increase in attendance on a like-for-like race basis, with Le Mans setting the highest attendance ever for MotoGP. Additionally, social media followers grew by 6% year-over-year.
F1 Movie Success
The F1 movie had a global box office sales of over $500 million within its first 5 weeks, becoming the highest-grossing Apple film to date.
Promising Sponsorship Activity
F1 announced significant new partnerships, including MSC Cruises extending its partnership through 2030 and Pepsi joining as an official partner.
Negative Updates
MotoGP Financial Adjustments
Financial information for MotoGP has been in Spanish GAAP, and various U.S. GAAP adjustments are expected, which could impact growth rate perceptions.
Increased Debt Levels
Pro forma for the MotoGP transaction, F1 OpCo had approximately $380 million of cash and $3.4 billion of debt, bringing pro forma leverage to 3.3x compared to 0.7x previously reported.
Company Guidance
In the second quarter earnings call for Liberty Media Corporation, several key metrics were highlighted regarding both Formula One (F1) and MotoGP. Liberty Media completed the acquisition of MotoGP on July 3, and is now focusing on enhancing its strategic direction. The company aims to accelerate growth by building commercial functions and improving fan engagement, particularly in the U.S. and U.K. Attendance for MotoGP has increased by 6% year-over-year, with record attendance at several Grand Prix events. The F1 business showed strong performance with a 14% revenue increase and a 21% rise in adjusted OIBDA year-to-date. F1's audience in race attendance and cumulative TV viewership is approximately double that of MotoGP, but F1 monetizes its revenue streams 5 to 10 times more. Liberty Media aims to scale MotoGP's sponsorship and global presence, with expected benefits over the long term. Financially, Formula One Group had $3.1 billion in attributed cash and investments, and $2.9 billion in attributed debt. The MotoGP refinancing is set to close in August, expected to reduce interest expenses significantly.

Liberty Media Liberty Formula One Financial Statement Overview

Summary
Liberty Media's Liberty Formula One exhibits strong revenue growth and a solid balance sheet, but faces challenges with profitability due to recent net losses. Cash flow management is robust, supporting operations effectively.
Income Statement
72
Positive
Liberty Media's Liberty Formula One shows a mixed performance in its income statement. The revenue growth from 2020 to the TTM is strong, with a notable increase from $1.145 billion in 2020 to $3.513 billion in TTM. However, the company posted a net loss in the most recent period, leading to a negative net profit margin. While gross profit margin remains healthy, the negative net income indicates challenges in maintaining profitability. The EBIT margin has been volatile but shows improvement over the years.
Balance Sheet
68
Positive
The balance sheet reveals a stable financial structure with a manageable debt-to-equity ratio. The equity ratio is robust, indicating a strong equity base relative to assets. However, the high total debt level could pose potential risks if cash flows are insufficient to cover liabilities. The return on equity has been fluctuating, impacted by the variability in net income.
Cash Flow
75
Positive
Cash flow analysis shows a positive trajectory with consistent free cash flow generation in recent years, suggesting effective cash management. The operating cash flow to net income ratio is strong, highlighting efficient conversion of earnings into cash. Despite historical fluctuations, the free cash flow growth rate is positive, reflecting improved operational efficiency.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue24.94B23.16B0.000.000.001.15B
Gross Profit723.00M0.000.000.000.00171.00M
EBITDA-251.00M0.00-170.00M0.000.00-119.00M
Net Income-287.00M-31.00K-142.00M1.29M-358.00K-594.00M
Balance Sheet
Total Assets1.37B1.22B1.16B667.00M664.00M11.19B
Cash, Cash Equivalents and Short-Term Investments308.00M325.00M305.00M0.000.001.68B
Total Debt1.77B1.56B1.32B920.00M1.98B3.76B
Total Liabilities1.86B1.56B1.33B920.00M1.98B4.64B
Stockholders Equity-511.00M-359.00M-188.00M-278.00M-1.34B6.55B
Cash Flow
Free Cash Flow337.00M-14.00M-13.00M-8.00M-25.00M-160.00M
Operating Cash Flow364.00M-14.00M-13.00M-8.00M-25.00M-139.00M
Investing Cash Flow-238.00M105.00M1.00M-37.00M21.00M75.00M
Financing Cash Flow-61.00M-71.00M317.00M45.00M4.00M1.16B

Liberty Media Liberty Formula One Technical Analysis

Technical Analysis Sentiment
Positive
Last Price90.18
Price Trends
50DMA
91.20
Negative
100DMA
87.93
Positive
200DMA
85.69
Positive
Market Momentum
MACD
0.07
Negative
RSI
49.89
Neutral
STOCH
41.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FWONA, the sentiment is Positive. The current price of 90.18 is above the 20-day moving average (MA) of 89.38, below the 50-day MA of 91.20, and above the 200-day MA of 85.69, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 49.89 is Neutral, neither overbought nor oversold. The STOCH value of 41.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$25.92B12.4419.96%0.92%16.60%57.39%
74
Outperform
$33.62B85.163.79%5.77%-6.97%
72
Outperform
$36.75B85.345.11%0.41%53.33%
68
Neutral
$38.38B70.35345.87%-0.39%108.72%
64
Neutral
$28.77B39.472.18%-3.79%
63
Neutral
$33.62B94.483.79%5.77%-6.97%
60
Neutral
$43.83B3.98-12.77%4.14%1.86%-42.71%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FWONA
Liberty Media Liberty Formula One
90.18
20.56
29.53%
LYV
Live Nation Entertainment
162.98
70.20
75.66%
TKO
TKO Group Holdings
190.08
75.22
65.49%
FWONK
Liberty Media Liberty Formula One
100.04
24.09
31.72%
FOXA
Fox
60.81
20.88
52.29%
WBD
Warner Bros
11.92
4.70
65.10%

Liberty Media Liberty Formula One Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Liberty Media Signs Variable Forward Contracts
Neutral
May 30, 2025

On May 28, 2025, Liberty Media’s subsidiary, LN Holdings 1, LLC, entered into variable forward contracts with several financial institutions. These contracts, related to the anticipated split-off of Liberty Media’s Liberty Live Group, involve the potential delivery of Live Nation shares or cash, providing liquidity options for the newly formed Liberty Live Holdings, Inc. The contracts are structured to manage obligations related to Liberty Media’s equity interests in Live Nation and its exchangeable senior debentures, with no immediate change in Liberty Media’s ownership stake in Live Nation.

The most recent analyst rating on (FWONA) stock is a Buy with a $72.00 price target. To see the full list of analyst forecasts on Liberty Media Liberty Formula One stock, see the FWONA Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Liberty Media Sets Terms for Live Nation Split-Off
Neutral
May 29, 2025

On May 28, 2025, Liberty Media’s subsidiary LN Holdings 1, LLC entered into agreements with several banks to establish terms for variable forward transactions involving shares of Live Nation Entertainment, Inc. This move is part of the planned split-off of Liberty Media’s Liberty Live Group, which will result in the creation of a new entity, Liberty Live Holdings, Inc. The agreements are designed to provide liquidity to the new company to manage potential financial obligations arising from the split-off, while maintaining Liberty Media’s existing ownership stake in Live Nation.

The most recent analyst rating on (FWONA) stock is a Buy with a $72.00 price target. To see the full list of analyst forecasts on Liberty Media Liberty Formula One stock, see the FWONA Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Liberty Media Aligns CEO Equity Awards with Team
Neutral
May 14, 2025

On May 12, 2025, Liberty Media Corporation modified the equity award components for its CEO, Derek Chang, aligning his equity grants with those of the management team and adjusting vesting dates. Additionally, at the company’s annual meeting, stockholders re-elected three board members and ratified KPMG LLP as the independent auditors for the fiscal year 2025, reflecting continued confidence in the company’s governance and financial oversight.

The most recent analyst rating on (FWONA) stock is a Buy with a $72.00 price target. To see the full list of analyst forecasts on Liberty Media Liberty Formula One stock, see the FWONA Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Liberty Media CEO to Present at J.P. Morgan Conference
Neutral
Apr 29, 2025

On April 29, 2025, Liberty Media Corporation announced that its President and CEO, Derek Chang, will present at the J.P. Morgan Global Technology, Media and Communications Conference on May 13, 2025, in Boston. During the presentation, Chang may discuss the company’s financial performance and outlook, potentially impacting stakeholder perceptions and market positioning.

Financial Disclosures
Liberty Media to Host Q1 2025 Earnings Call
Neutral
Apr 9, 2025

On April 9, 2025, Liberty Media Corporation announced it will host a conference call on May 7, 2025, to discuss its first quarter results for 2025. The call will cover the company’s financial performance and outlook, with the results being released prior to market opening on the same day. This announcement is part of Liberty Media’s ongoing efforts to maintain transparency with stakeholders, potentially impacting its market positioning by providing insights into its operational performance.

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: May 14, 2025