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Liberty Media Corporation Series B Liberty Formula One (FWONB)
OTHER OTC:FWONB
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Liberty Media Liberty Formula One
(OTC:FWONB)
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Rating:62Neutral
Price Target:
$83.00
▼(-6.41% Downside)
Action:ReiteratedDate:02/27/26
The score is primarily supported by strong and improving cash generation and a positive earnings-call outlook highlighting growth and deleveraging progress. It is held back by earnings/reporting volatility (including the 2025 zero-revenue red flag), a weak valuation profile (very high P/E and no dividend yield provided), and only neutral-to-soft technical momentum.
Positive Factors
Cash generation
Consistent positive operating and free cash flow across 2021–2025 provides durable internal funding for rights renewal, event investment and deleveraging. Strong cash conversion reduces reliance on external financing and underpins multi-year commercial initiatives and capital allocation.
F1 commercial growth & engagement
Double-digit revenue and OIBDA growth show structural commercial momentum: media, sponsorship, hospitality and licensing scaling with audience gains. Higher viewership and digital engagement translate into lasting pricing power in multi-year media and sponsorship contracts.
Liquidity & deleveraging progress
Material liquidity alongside demonstrable leverage reduction improves financial flexibility to invest (e.g., MotoGP) and manage covenants. Undrawn revolvers and falling leverage lower refinancing risk and enable measured strategic spending without immediate strain on cash flow.
Negative Factors
Elevated absolute debt
A large absolute debt stock leaves the company exposed to interest and refinancing risk despite improving leverage ratios. Sustained high debt constrains capital allocation, raises the cost of additional M&A or investment, and increases sensitivity to any cash-flow shortfalls.
Earnings/reporting volatility
Material anomalies and swings in reported revenue and profit reduce forecast reliability and complicate covenant and valuation analysis. Persistent volatility undermines investor confidence and makes multi-year planning and margin guidance harder to trust.
High team payments & margin sensitivity
A near-60% payout to teams is a structurally large and partly contractual cost that caps operating margins and leaves profits exposed to renegotiation or rising costs. This reduces operating leverage and makes long-term margin expansion dependent on controlling fixed and variable partner costs.
Liberty Media Liberty Formula One (FWONB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$29.19B
Dividend YieldN/A
Average Volume (3M)10.00
Price to Earnings (P/E)40.3
Beta (1Y)0.25
Revenue Growth9.81%
EPS Growth-42.40%
CountryUS
Employees1,184
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)1.33
Shares Outstanding2,381,188
10 Day Avg. Volume20
30 Day Avg. Volume10
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)2.88
Price to Sales (P/S)4.99
P/FCF Ratio29.75
Enterprise Value/Market Cap0.79
Enterprise Value/Revenue5.17
Enterprise Value/Gross Profit16.65
Enterprise Value/Ebitda17.97
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Liberty Media Liberty Formula One Business Overview & Revenue Model
Company DescriptionFormula One Group engages in the motorsports business in the United States and internationally. It holds commercial rights for the world championship, approximately a nine-month long motor race-based competition in which teams compete for the constructors' championship and drivers compete for the drivers' championship. The company was founded in 1950 and is based in Englewood, Colorado. Formula One Group is a subsidiary of Liberty Media Corporation.
How the Company Makes MoneyFormula One Group primarily generates revenue by monetizing the commercial rights to the Formula 1 championship across several major streams. (1) Media rights: The company sells live and on-demand broadcasting and related media rights to regional and global partners (e.g., pay TV, free-to-air, and digital platforms). These contracts typically provide recurring, multi-year revenue and are a core driver of earnings. (2) Race promotion fees: The company enters agreements with race promoters and host venues for the right to stage Grand Prix events; promoters pay fees (often under multi-year contracts) that generally scale over time, making this a substantial and relatively predictable revenue source tied to the number of races and contract terms. (3) Sponsorship and advertising: The company sells global sponsorship packages (such as official partners of Formula 1) and trackside/venue advertising inventory, benefiting from the sport’s global audience and brand visibility; this includes commercial partnerships that can be multi-year and can expand with viewership growth. (4) Paddock Club and hospitality/experiences: The company earns revenue from premium hospitality offerings (notably the F1 Paddock Club) and other event-related experiences sold to corporations and high-end customers. (5) Licensing, merchandising, and other revenue: The business also monetizes intellectual property through licensing, merchandising, and other commercial arrangements. In addition, direct-to-consumer products (such as the F1 TV streaming service, where available) contribute subscription revenue. Overall earnings are influenced by factors such as the number of races in a season, renewal terms and pricing of media and promoter contracts, audience growth that supports sponsorship pricing, and the strength of long-term partnerships with broadcasters, promoters, and global brand sponsors.
Liberty Media Liberty Formula One Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 01, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive operational and commercial picture: strong full-year revenue and adjusted OIBDA growth at F1, record attendance and digital engagement gains across both F1 and MotoGP, progress on deleveraging and multiple strategic commercial deals (including Apple and Concorde Agreement). Key challenges include elevated absolute debt, remaining leverage at MotoGP, higher operating and SG&A costs, FX exposure for MotoGP, and quarter-to-quarter comparability due to race mix. Management emphasized long-term growth investments and disciplined deleveraging. Overall, the positives (robust growth, audience momentum, commercial traction and deleveraging progress) materially outweigh the negatives, though execution and communication on margins and capital allocation remain important for investors.Q4-2025 Updates
Positive Updates
Strong Full-Year Financial Growth at F1
Formula 1 full-year revenue grew 14% and adjusted OIBDA grew 20% year-over-year, driven by growth across sponsorship, media rights (including F1 TV), race promotion, hospitality, licensing and new activations (e.g., Grand Prix Plaza).
Deleveraging Progress
F1 OpCo net leverage improved to 2.8x (down from 3.3x pro forma as of 6/30). MotoGP net leverage improved to 4.7x (down from 5.6x at 9/30). Liberty Media overall net leverage was 3.6x at year-end, and management expects continued deleveraging at MotoGP.
Material Cash and Liquidity Position
Liberty Media had $1.1 billion of cash and liquid investments at year-end (including $539 million at F1 and $197 million at MotoGP). Revolvers at F1 ($500 million) and MotoGP (EUR 100 million) were undrawn.
MotoGP Acquisition and Early Commercial Investment
MotoGP acquisition closed July 3, 2025; presented on a pro forma basis. Management is investing in commercial hires and shared knowledge with F1 to unlock long-term upside; MotoGP full-year revenue grew driven by two additional races (22 vs 20) and contractual uplifts.
Record Attendance and Fan Engagement
F1 reported record combined attendance of 6.75 million (up 4% y/y) with 19 sellouts and 11 attendance records. MotoGP reported record attendance of 3.6 million (up 21% y/y) with first-time attendees up to 27% of total (from 18% in 2024).
Significant Digital & Social Growth
F1 social followers reached 150 million (up nearly 20% y/y). F1 YouTube views were 1.65 billion (up 48% y/y). Global live TV viewership across sessions rose ~21% y/y; qualifying audiences up 23% and Sprint session viewership up 10%. MotoGP social followers rose by 3+ million and global fan base increased to 632 million (up 12%).
Commercial Momentum and Strategic Deals
F1 signed multiple renewals/new partners including Standard Chartered and Apple (U.S. media rights). Renewals/extensions announced in Pan-Asia (beIN), Latin America (ESPN), Sky Italia for MotoGP and promoter renewals for Barcelona, Thailand and others. New Concorde Agreement finalized through 2030 providing durable financial economics.
Las Vegas Grand Prix and Event Innovation
Las Vegas Grand Prix sold out with over 300,000 fans, generated strong incremental hospitality and sponsorship benefits to the broader F1 ecosystem, and produced ~1.8 billion impressions over the weekend; Vegas delivered improved financial performance and cost benefits year-over-year.
Negative Updates
Elevated Absolute Debt Levels
Liberty Media total principal debt was $5.0 billion at year-end (F1 $3.4 billion; MotoGP $1.2 billion; $499 million at corporate), which leaves leverage and interest/repayment dynamics as ongoing priorities.
MotoGP Leverage and Near-Term Profitability Pressure
MotoGP net leverage remains elevated at 4.7x (despite improvement), and management expects multi-year deleveraging; MotoGP adjusted OIBDA growth was partially offset by increased operating expenses and FX translational exposure (majority of revenue/costs are euro-denominated).
High Team Payments and Margin Sensitivity
Team payments were 59.7% of pre-team share adjusted OIBDA in 2025 (an improvement of ~185 basis points vs 2024). Management expects roughly ~200 basis points of leverage in 2026 (to ~57.7%), but team payments remain a large and variable line item affecting margins.
Rising Operating and SG&A Costs
F1 saw increased operating expenses (higher team payments and partner servicing) and higher SG&A driven by personnel and marketing costs, which partially offset revenue growth and require ongoing discipline to sustain margin expansion.
Comparability and Seasonality Effects
Quarter-to-quarter comparability is uneven due to race count and mix (e.g., Q4 '25 had 7 races vs 6 in Q4 '24), seasonality of businesses like Quint (spun off Dec 15) and one-time items (e.g., F1 movie recognition in Q2), complicating short-term trend assessment.
Investor Perception and Media Distribution Concerns
Some investor concerns were noted around the Apple U.S. media deal (perceived distribution trade-offs) and an increased focus on team payments/margins in investor dialogue, signaling communication challenges to convey long-term growth thesis versus near-term margin discussions.
Company Guidance
Management reiterated a focus on deleveraging and measured investment while highlighting key metrics: cash and liquid investments of $1.1 billion (including $539M at F1 and $197M at MotoGP), total principal debt $5.0 billion (F1 $3.4B, MotoGP $1.2B, corporate $499M), undrawn revolvers (F1 $500M, MotoGP €100M) and Liberty net leverage of 3.6x with F1 OpCo net leverage 2.8x (down from 3.3x pro forma) and MotoGP net leverage 4.7x (down from 5.6x at 9/30) and continued deleveraging at MotoGP expected this year; FY‑2025 F1 revenue grew 14% and adjusted OIBDA grew 20% (Q4 race counts/mix noted as incomparable), full‑year team payments were 59.7% of pre‑team‑share adjusted OIBDA (185 bps of leverage vs. 2024) and management expects roughly ~200 bps of further operating leverage in 2026 (to ~57.7%) with payout percentages then relatively stable through 2030; operational KPIs cited included F1 attendance of 6.75M (+4%), Paddock Club guests 65k (+10%), global live TV viewership +21%, YouTube 1.65B views (+48%) and 150M social followers (+~20%), while MotoGP ran 22 races (vs. 20), attendance 3.6M (+21%), global fan base 632M (+12%), VideoPass subs +5% and improving adjusted OIBDA—and both F1 and MotoGP are in covenant compliance.Liberty Media Liberty Formula One Financial Statement Overview
Summary
Cash flow is the clear strength (consistently positive operating cash flow and free cash flow through 2021–2025), and leverage looked moderate in 2020–2024. Offsetting this, earnings and reported figures are volatile, and the 2025 annual report showing zero revenue with larger losses and incomplete balance-sheet fields materially increases uncertainty.Income Statement
Revenue rebounded strongly from 2020–2024, with steady mid-to-high growth in 2022–2024, and profitability improved materially versus the deep 2020 loss. However, earnings have been volatile: net income swung from strong profit in 2022 to a loss in 2021 and again a small loss in 2024 despite positive operating profit. The 2025 annual report shows zero revenue with negative EBIT/EBITDA and a larger net loss, which is a major red flag for recent operating performance and/or reporting comparability.58
Neutral
Balance Sheet
Leverage appears moderate in the years with complete data, with debt-to-equity generally around ~0.40–0.57 from 2020–2024, suggesting the balance sheet is not overly debt-loaded for the asset base. Total assets remained sizable and relatively stable across 2020–2024. That said, returns to shareholders have been inconsistent (negative in 2020, 2021, and 2024), and the 2025 annual report lists both debt and equity as zero (with assets still present), limiting confidence in the latest balance-sheet snapshot.62
Positive
Cash Flow
Cash generation is a clear strength: operating cash flow was solidly positive from 2021–2025 and accelerated in 2024 and 2025, with free cash flow also consistently positive over the same period. Free cash flow growth turned positive in 2024 and jumped strongly again in 2025. The main weakness is conversion volatility—free cash flow was much weaker in 2022–2023 versus operating cash flow—plus the 2020 period showed negative operating and free cash flow, highlighting downside sensitivity in stressed conditions.74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.48B | 3.65B | 3.22B | 2.57B | 2.14B |
| Gross Profit | 1.12B | 1.17B | 982.00M | 823.00M | 647.00M |
| EBITDA | 1.15B | 577.00M | 666.00M | 535.00M | 437.00M |
| Net Income | 555.00M | -30.00M | 185.00M | 558.00M | -190.00M |
Balance Sheet | |||||
| Total Assets | 15.40B | 11.76B | 10.27B | 11.02B | 11.66B |
| Cash, Cash Equivalents and Short-Term Investments | 1.05B | 2.63B | 1.41B | 1.73B | 2.07B |
| Total Debt | 5.12B | 2.99B | 2.91B | 2.95B | 3.63B |
| Total Liabilities | 6.95B | 4.37B | 3.85B | 4.08B | 4.72B |
| Stockholders Equity | 7.76B | 7.39B | 6.42B | 6.91B | 6.34B |
Cash Flow | |||||
| Free Cash Flow | 751.00M | 492.00M | 193.00M | 243.00M | 464.00M |
| Operating Cash Flow | 870.00M | 567.00M | 619.00M | 534.00M | 481.00M |
| Investing Cash Flow | -3.20B | -292.00M | -510.00M | 394.00M | -600.00M |
| Financing Cash Flow | 408.00M | 965.00M | -435.00M | -1.27B | 512.00M |
Liberty Media Liberty Formula One Technical Analysis
Negative
88.68
Price Trends
82.71
Negative
86.21
Negative
89.44
Negative
Market Momentum
-1.35
Positive
44.73
Neutral
28.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FWONB, the sentiment is Negative. The current price of 88.68 is above the 20-day moving average (MA) of 81.59, above the 50-day MA of 82.71, and below the 200-day MA of 89.44, indicating a bearish trend. The MACD of -1.35 indicates Positive momentum. The RSI at 44.73 is Neutral, neither overbought nor oversold. The STOCH value of 28.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FWONB.
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 |
|---|---|---|---|---|---|---|---|
62 Neutral | $29.19B | 40.26 | 10.50% | ― | 9.81% | -42.40% | |
62 Neutral | $37.77B | 86.44 | 4.89% | 1.07% | 56.31% | ― | |
62 Neutral | $29.19B | 44.38 | 2.25% | ― | 9.81% | -42.40% | |
62 Neutral | $67.31B | 98.11 | 2.05% | ― | -4.29% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $35.78B | 66.61 | 157.65% | ― | 5.39% | 36.94% | |
58 Neutral | $29.19B | 40.26 | 10.50% | ― | 9.81% | -42.40% |
* Communication Services Sector Average
FWONB
Liberty Media Liberty Formula One
78.64
-2.02
-2.50%
FWONA
Liberty Media Liberty Formula One
76.47
-3.33
-4.17%
LYV
Live Nation Entertainment
153.97
32.06
26.30%
TKO
TKO Group Holdings
194.57
50.37
34.93%
FWONK
Liberty Media Liberty Formula One
83.66
-4.00
-4.56%
WBD
Warner Bros
27.14
16.66
158.97%
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.