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Liberty Media Liberty Formula One
(NASDAQ:FWONK)
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Rating:75Outperform
Price Target:
$106.00
▲(17.15% Upside)
Action:Upgraded
Date:05/09/26
The score is driven primarily by strong TTM financial performance (improving margins, solid free cash flow, and a very low debt-to-equity profile) and a positive earnings-call setup with strong Q1 momentum and liquidity. Technicals support the uptrend but indicate an extended condition that can raise near-term pullback risk. Valuation is a drag because the provided P/E and dividend yield data do not offer usable support.
Positive Factors
Cash generation
Consistent operating and free cash flow across 2021–2024, with a clear improvement in 2024, provides durable internal funding to support race operations, hospitality, rights investment and debt service. Strong cash generation cushions the business against event-driven revenue swings and funds strategic initiatives.
Negative Factors
Earnings volatility & comparability
Material swings in reported profitability and a 2025 annual period showing zero revenue create persistent forecasting and comparability challenges. This undermines confidence in run-rate earnings, complicates long-term planning and makes margin sustainability and capital allocation harder to assess reliably.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent operating and free cash flow across 2021–2024, with a clear improvement in 2024, provides durable internal funding to support race operations, hospitality, rights investment and debt service. Strong cash generation cushions the business against event-driven revenue swings and funds strategic initiatives.
Read all positive factors
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 (FWONK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.99B
Dividend YieldN/A
Average Volume (3M)1.16M
Price to Earnings (P/E)26.4
Beta (1Y)0.59
Revenue Growth35.10%
EPS GrowthN/A
CountryUS
Employees1,674
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)3.35
Shares Outstanding224,233,460
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 Cap1.02
Enterprise Value/Revenue5.18
Enterprise Value/Gross Profit19.00
Enterprise Value/Ebitda17.22
Forecast
1Y Price Target
$116.50Price Target Upside28.76% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)1.79
Revenue Forecast (FY)$4.71B
Liberty Media Liberty Formula One Business Overview & Revenue Model
Company Description
Formula One Group is a global entity primarily involved in the motorsports industry, both domestically in the United States and abroad. It holds the exclusive commercial rights for the Formula 1 World Championship, an extensive series of motor rac...
How the Company Makes Money
Formula 1 primarily generates revenue by monetizing the commercial rights to the championship across media, event hosting, and marketing channels. Key revenue streams include: (1) Media rights: multi-year contracts with broadcasters and digital pl...
Liberty Media Liberty Formula One Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 31, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational and commercial momentum across Liberty’s core assets — notably robust Q1 financial results (revenue +53%, adjusted OIBDA +102%), audience and digital growth, successful commercial renewals, and encouraging early results from the Apple U.S. partnership. These positives are balanced against tangible short-term disruption from the cancellation/postponement of Middle East races (calendar reduced to 22 races), near-term revenue recognition impacts (notably a materially affected Q2), elevated SG&A and certain cost pressures (freight, fuel), and a meaningful debt load (~$5B) with net leverage of ~3x. Overall, the company appears resilient with healthy liquidity and strategic momentum, while managing discrete geopolitical and cost-related headwinds that are expected to be largely timing-related.Positive Updates
Strong Consolidated Financial Growth in Q1
Revenue grew 53% year-over-year in Q1 and adjusted OIBDA increased 102% year-over-year, driven by an extra race in the period, favorable season-based revenue recognition, and underlying contractual fee growth across F1 and MotoGP.
Negative Updates
Cancellation/Postponement of Middle East Races
Liberty and F1 chose not to proceed with the Bahrain and Saudi Arabian Grands Prix in April (and MotoGP postponed Qatar to November) due to Middle East instability. The change reduced the calendar to 22 races (vs. planned 24), impacted pro rata revenue recognition and will materially impact Q2 (only five races expected versus nine in 2025).
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Consolidated Financial Growth in Q1
Revenue grew 53% year-over-year in Q1 and adjusted OIBDA increased 102% year-over-year, driven by an extra race in the period, favorable season-based revenue recognition, and underlying contractual fee growth across F1 and MotoGP.
Read all positive updates
Company Guidance
Liberty guided that 2026 will be modeled as a 22‑race Formula One season (pro rata recognition over 22 vs 24 races) with Q2 the most impacted (only ~5 races expected vs 9 in 2025) and the potential to reschedule one race later in the year; Q1 benefited from three races (vs two prior year), representing roughly 14% of season‑based revenue recognized in the quarter (3/22 vs 2/24 prior) and driving year‑over‑year revenue growth of 53% and adjusted OIBDA growth of 102%. Management reiterated team payments were 51.7% of pre‑team share adjusted OIBDA, expects roughly a 200 basis‑point improvement in full‑year leverage (with payout percentages then broadly stable), and warned of a modest uptick in trailing‑12‑month leverage in Q2 due to the two cancelled Middle East races. At quarter end Liberty held $1.3 billion of cash and liquid investments (F1 $862M; MotoGP $186M), total principal debt of ≈$5.0 billion (F1 $3.3B; MotoGP $1.2B; corporate ≈$0.5B), undrawn revolvers (F1 $500M; MotoGP €100M), and net leverage of ~3.0x; MotoGP commentary noted three Q1 races, rising adjusted OIBDA, a U.S. GP average TV audience of ~500k, and ~62M social followers across its platforms.Liberty Media Liberty Formula One Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
74
Positive
Cash Flow
80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.75B | 4.48B | 3.65B | 3.22B | 2.57B | 2.14B |
| Gross Profit | 1.29B | 1.12B | 1.17B | 982.00M | 823.00M | 647.00M |
| EBITDA | 1.43B | 1.15B | 577.00M | 794.00M | 762.00M | 363.00M |
| Net Income | 607.00M | 555.00M | -30.00M | 185.00M | 558.00M | -190.00M |
Balance Sheet | ||||||
| Total Assets | 15.89B | 15.40B | 11.76B | 10.27B | 11.02B | 11.66B |
| Cash, Cash Equivalents and Short-Term Investments | 1.33B | 1.05B | 2.63B | 1.41B | 1.73B | 2.07B |
| Total Debt | 5.02B | 5.12B | 2.99B | 2.91B | 2.95B | 3.63B |
| Total Liabilities | 7.49B | 6.95B | 4.37B | 3.85B | 4.08B | 4.72B |
| Stockholders Equity | 7.73B | 7.76B | 7.39B | 6.42B | 6.91B | 6.34B |
Cash Flow | ||||||
| Free Cash Flow | 730.00M | 751.00M | 492.00M | 193.00M | 243.00M | 464.00M |
| Operating Cash Flow | 836.00M | 870.00M | 567.00M | 619.00M | 534.00M | 481.00M |
| Investing Cash Flow | -3.05B | -3.20B | -292.00M | -510.00M | 394.00M | -600.00M |
| Financing Cash Flow | 369.00M | 408.00M | 965.00M | -435.00M | -1.27B | 512.00M |
Liberty Media Liberty Formula One Technical Analysis
Positive
90.48
Price Trends
90.75
Positive
88.79
Positive
92.36
Positive
Market Momentum
2.19
Negative
60.24
Neutral
68.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FWONK, the sentiment is Positive. The current price of 90.48 is below the 20-day moving average (MA) of 92.78, below the 50-day MA of 90.75, and below the 200-day MA of 92.36, indicating a bullish trend. The MACD of 2.19 indicates Negative momentum. The RSI at 60.24 is Neutral, neither overbought nor oversold. The STOCH value of 68.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $23.99B | 26.38 | 10.72% | ― | 35.10% | ― | |
75 Outperform | $167.92B | 15.36 | 10.29% | 1.10% | 4.02% | 27.66% | |
74 Outperform | $21.22B | 12.65 | 14.86% | 0.85% | 0.60% | -5.58% | |
70 Outperform | $36.87B | 65.80 | 5.96% | 1.07% | 47.04% | 33.90% | |
62 Neutral | $42.39B | -104.33 | 33.04% | ― | 12.64% | -158.14% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
55 Neutral | $65.56B | -38.59 | -4.94% | ― | -2.78% | 84.26% |
* Communication Services Sector Average
FWONK
Liberty Media Liberty Formula One
95.91
-8.09
-7.78%
LYV
Live Nation Entertainment
182.58
38.12
26.39%
DIS
Walt Disney
96.17
-23.65
-19.74%
TKO
TKO Group Holdings
188.18
17.94
10.54%
FOX
Fox
48.44
-2.92
-5.69%
WBD
Warner Bros
26.63
14.98
128.58%
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.