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Liberty Media Corporation Series C Liberty Formula One (FWONK)
NASDAQ:FWONK
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Liberty Media Liberty Formula One
(NASDAQ:FWONK)
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Rating:62Neutral
Price Target:
$92.00
▲(9.55% Upside)
Action:ReiteratedDate:02/27/26
The score is primarily supported by solid cash-flow performance and a positive earnings-call outlook emphasizing growth and deleveraging. However, the overall rating is held back by earnings volatility and comparability concerns in the latest annual figures, weak-to-neutral technical momentum, and a very high P/E valuation.
Positive Factors
Cash Generation
Consistent operating and free cash flow over multiple years gives Liberty Formula One durable funding for growth, deleveraging and opportunistic capital deployment. Strong cash conversion supports investment in media, events and DTC initiatives while reducing reliance on external financing.
Commercial Momentum & Audience Growth
Meaningful revenue and OIBDA growth alongside rapid audience expansion strengthen long-term monetization: higher media rights value, sponsorship pricing power, and hospitality demand. These durable commercial levers underpin recurring revenue growth and cross-platform monetization opportunities.
Structural Contract Stability (Concorde Agreement)
A multi-year Concorde Agreement locks in predictable team payment mechanics and revenue sharing, reducing contract uncertainty. This structural stability improves cashflow visibility, aids long-term commercial negotiations and supports multi-year sponsorship and media arrangements.
Negative Factors
Earnings Volatility & Comparability
Material swings in reported earnings and anomalous 2025 figures impair visibility into sustainable profitability. This undermines planning, makes multi-period margin trending unreliable and complicates forecasting for capex, dividends or further deleveraging over the next several quarters.
Elevated MotoGP Leverage & Investment Lag
High leverage at MotoGP consumes cash flow and constrains flexibility while investments scale the business. Longer payback on these investments delays margin normalization and increases refinancing or liquidity risk if revenue ramp and cost control unfold slower than planned.
Rising Costs and Calendar-Driven Variability
Structural cost pressures from rising team payouts, marketing and partner servicing compress margins absent sustained revenue premium. Combined with race-count seasonality, this creates recurring quarter-to-quarter volatility, complicating margin sustainability and operational leverage realization.
Liberty Media Liberty Formula One (FWONK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$29.86B
Dividend YieldN/A
Average Volume (3M)1.16M
Price to Earnings (P/E)44.4
Beta (1Y)0.42
Revenue Growth9.81%
EPS Growth-42.40%
CountryUS
Employees6,486
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)0.58
Shares Outstanding224,102,520
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 Cap0.79
Enterprise Value/Revenue5.23
Enterprise Value/Gross Profit20.98
Enterprise Value/Ebitda18.07
Forecast
1Y Price Target
$117.67Price Target Upside40.12% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)1.92
Revenue Forecast (FY)$4.87B
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 MoneyLiberty Formula One generates revenue through several key channels. A significant portion comes from the sale of broadcasting rights to networks around the world, allowing them to air Formula One races and related content. Additionally, the company earns substantial income from sponsorship deals with major global brands that seek to leverage the exposure associated with the sport. Ticket sales from races also contribute to revenue, as fans purchase access to live events. Furthermore, Liberty Formula One monetizes its digital platforms through content distribution and advertising. Strategic partnerships with teams, sponsors, and media outlets further enhance its ability to generate income, making it a multifaceted revenue-generating entity within the sports industry.
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 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 strong operational and commercial performance with broad growth across revenue, attendance and digital engagement for both F1 and MotoGP, meaningful commercial momentum (new/renewed media and sponsorship deals), progress on deleveraging and a multi-year Concorde Agreement providing financial stability. Lowlights were largely operational and timing-related (calendar mix volatility, elevated MotoGP leverage, and rising SG&A linked to growth) and represent manageable near- to medium-term headwinds rather than structural declines. Overall, positive momentum and strategic clarity dominate the call.Q4-2025 Updates
Positive Updates
F1 Revenue and Adjusted OIBDA Growth
Full-year Formula 1 revenue grew 14% year-over-year and adjusted OIBDA increased 20%, driven by growth across sponsorship, media rights (including F1 TV and one-time movie revenue), race promotion, hospitality and licensing.
Audience and Digital Engagement Surge for F1
F1 reported record engagement with 6.75 million attendances (up 4% YoY), global Live TV viewership up 21% YoY across sessions, YouTube views of 1.65 billion (up 48% YoY), qualifying viewership up 23%, Sprint viewership up 10%, and social followers reaching 150 million (up nearly 20% YoY).
Commercial Momentum and Strategic Media Deals
F1 closed multiple renewals and new partnerships (e.g., Apple for U.S. rights, beIN in Pan-Asia, ESPN in Latin America, Standard Chartered sponsorship) and extended promoter agreements, supporting both reach and monetization initiatives.
Las Vegas Grand Prix: Strong Performance and Ecosystem Benefits
Las Vegas Grand Prix sold out the weekend (>300,000 fans), generated 1.8 billion impressions over the weekend, and delivered improved financial performance year-over-year with material benefits to sponsorship, hospitality and licensing across the F1 ecosystem.
MotoGP Attendance and Fanbase Expansion
MotoGP attendance reached a record 3.6 million (up 21% YoY), first-time attendees rose to 27% of total (from 18%), global fan base grew to 632 million (up 12% YoY), social followers increased by over 3 million to ~61 million, and social engagement rose 61%.
MotoGP Revenue and Adjusted OIBDA Growth (Pro Forma)
Pro forma for the full year, MotoGP revenue grew across primary streams (benefitting from two additional races vs. 2024) and adjusted OIBDA increased, driven by higher race promotion fees, Media Rights (VideoPass subscription growth) and hospitality revenue.
Balance Sheet Liquidity and Deleveraging Progress
Liberty Media reported $1.1 billion of cash and liquid investments (including $539 million at F1 and $197 million at MotoGP). F1 OpCo net leverage improved to 2.8x (from 3.3x pro forma), MotoGP net leverage reduced to 4.7x (from 5.6x at 9/30), and overall Liberty net leverage was 3.6x with undrawn revolvers at F1 and MotoGP.
Concorde Agreement and Longer-Term Financial Stability
Liberty/F1 finalized the new Concorde Agreement covering 2026–2030, providing durable financial economics and a stable framework for team payouts; team payments were 59.7% of pre-team share adjusted OIBDA in 2025 and management expects roughly 200 bps of leverage improvement in 2026 (approx. 57.7%).
Negative Updates
MotoGP Elevated Leverage and Near-Term Investment Drag
MotoGP net leverage remained relatively high at 4.7x at year-end (down from 5.6x), with management noting continued deleveraging is expected; management also emphasized that investments to scale MotoGP will take time to generate returns.
Racing Calendar Mix and Quarter-to-Quarter Variability
Quarterly comparisons were materially impacted by race count and mix (e.g., Q4 '25 had 7 races vs. 6 in Q4 '24), creating uneven revenue recognition and higher volatility from flyaway race costs (freight, travel, event mix).
Rising Operating and SG&A Costs at F1
F1 experienced higher operating expenses and SG&A due to increased team payments, higher personnel and marketing costs and incremental partner servicing obligations tied to revenue growth, which partially offset margin expansion.
Modest Direct-to-Consumer Subscriber Growth for MotoGP
MotoGP VideoPass subscribers grew only 5% year-over-year, suggesting DTC monetization is early-stage relative to other engagement gains.
Elevated Corporate/Consolidation Complexity and Seasonality
Corporate results included Quint until the December spin-off and seasonality continues to concentrate returns in Q2 and Q4; Quint is being removed from future operating results which changes comparability and near-term corporate revenue composition.
Investor Concerns and Communication Focus on Margins
Investor discourse has concentrated on team payments, margins and operating leverage (some calling the Apple U.S. deal controversial for distribution), indicating a perception/communication gap despite strong growth trends; management acknowledged the need to articulate longer-term growth story alongside near-term margin dynamics.
Company Guidance
Management's guidance emphasized deleveraging, margin improvement and disciplined investment: Liberty finished FY25 with $1.1B of cash & liquid investments (incl. $539M at F1 and $197M at MotoGP) and $5.0B of principal debt (≈$3.4B F1, $1.2B MotoGP, $499M corporate) with F1's $500M revolver and MotoGP's €100M revolver undrawn; F1 OpCo net leverage was 2.8x (down from 3.3x pro forma), MotoGP net leverage 4.7x (from 5.6x at 9/30) and consolidated net leverage 3.6x, and both businesses were covenant compliant. They expect MotoGP to continue delevering this year, project team payments to leverage roughly ~200 bps in 2026 (implying ~59.7% in 2025 → ~57.7% in 2026) consistent with the ~200 bps annual average over the past four years with payout levels broadly stable after 2026 through 2030, and warned 2026 comparables will be affected by race-count/mix differences (e.g., Q4'25 had 7 races vs 6 in Q4'24; MotoGP 22 races in 2025 vs 20 in 2024), while noting strong FY25 operating momentum (F1 revenue +14%, adj. OIBDA +20%) and continued focus on growing sponsorship, media and hospitality.Liberty Media Liberty Formula One Financial Statement Overview
Summary
Cash flow is the clearest strength (solid operating cash flow and free cash flow in 2021–2024 with improvement in 2024), and leverage appeared manageable through 2024. Offsetting this, earnings have been volatile (back to a net loss in 2024) and the 2025 annual figures show major comparability concerns (e.g., zero revenue alongside sizable assets/cash flow), reducing confidence in the underlying run-rate.Income Statement
The company showed strong revenue momentum from 2021–2024 (including ~25% growth in 2023 and ~13% in 2024) and maintained fairly steady gross profitability around the low-30% range in those years. However, bottom-line results have been volatile: profitable in 2022–2023, then back to a net loss in 2024, and the 2025 annual data shows zero revenue with negative earnings, which raises material questions around comparability and near-term earnings quality. Overall, the operating profile is decent, but earnings consistency is a key weakness.54
Neutral
Balance Sheet
Leverage looked manageable in 2021–2024 with debt-to-equity improving to ~0.40 in 2024 (down from ~0.57 in 2020–2021), supported by a sizable equity base and large asset footprint. That said, profitability on equity has been inconsistent (positive in 2022–2023, slightly negative in 2024), and the 2025 annual balance sheet shows zero debt and zero equity despite meaningful assets, suggesting the latest period may not be comparable and adds uncertainty when assessing capital structure trends.62
Positive
Cash Flow
Cash generation has been a relative strength: operating cash flow and free cash flow were solid and positive in 2021–2024, with a notable improvement in free cash flow in 2024 versus 2023. The 2025 annual period also shows very large positive operating and free cash flow with strong growth, which, if sustainable, is supportive. The main caution is volatility (negative cash flow in 2020 and uneven free-cash-flow growth over time) and the mismatch between cash flow strength and net losses in some periods, which can signal higher non-cash charges or working-capital swings.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 | 794.00M | 762.00M | 363.00M |
| 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
83.98
Price Trends
90.26
Negative
93.81
Negative
97.38
Negative
Market Momentum
-0.20
Negative
42.87
Neutral
40.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FWONK, the sentiment is Negative. The current price of 83.98 is below the 20-day moving average (MA) of 87.46, below the 50-day MA of 90.26, and below the 200-day MA of 97.38, indicating a bearish trend. The MACD of -0.20 indicates Negative momentum. The RSI at 42.87 is Neutral, neither overbought nor oversold. The STOCH value of 40.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FWONK.
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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $23.80B | 30.69 | 16.87% | 0.85% | 14.91% | 9.30% | |
69 Neutral | $181.42B | 21.11 | 11.65% | 1.10% | 3.61% | 152.34% | |
62 Neutral | $29.86B | 44.38 | 2.25% | ― | 9.81% | -42.40% | |
62 Neutral | $41.11B | 86.44 | 4.99% | 1.07% | 56.31% | ― | |
62 Neutral | $69.44B | 98.11 | 2.08% | ― | -4.29% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $37.13B | 66.61 | 79.63% | ― | 5.39% | 36.94% |
* Communication Services Sector Average
FWONK
Liberty Media Liberty Formula One
83.98
-8.54
-9.23%
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53.50
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WBD
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161.68%
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.