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:
$87.00
▼(-0.98% Downside)
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
Consistent cash generation
F1's multi-year positive operating and free cash flow (with notable improvement in 2024 and large positive 2025 flows) supports durable internal funding for race investments, sponsorship activation and deleveraging. Strong cash conversion cushions earnings volatility and underpins multi-year strategic execution.
Negative Factors
Earnings volatility and comparability issues
Intermittent profitability, non-cash charges and inconsistent reported revenue (notably 2025's anomalous figures) complicate trend analysis and reduce confidence in recurring earnings. This volatility makes forecasting cash returns, setting sponsor pricing or assessing long-term margins more uncertain for investors and management.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent cash generation
F1's multi-year positive operating and free cash flow (with notable improvement in 2024 and large positive 2025 flows) supports durable internal funding for race investments, sponsorship activation and deleveraging. Strong cash conversion cushions earnings volatility and underpins multi-year strategic execution.
Read all positive factors
Liberty Media Liberty Formula One (FWONK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.82B
Dividend YieldN/A
Average Volume (3M)1.16M
Price to Earnings (P/E)44.4
Beta (1Y)0.51
Revenue Growth9.81%
EPS Growth-42.40%
CountryUS
Employees6,486
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)0.33
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 Cap1.10
Enterprise Value/Revenue5.35
Enterprise Value/Gross Profit21.43
Enterprise Value/Ebitda18.46
Forecast
1Y Price Target
$117.71Price Target Upside33.97% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)1.63
Revenue Forecast (FY)$4.71B
Liberty Media Liberty Formula One Business Overview & Revenue Model
Company Description
Formula 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 cons...
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 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.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.
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.
Read all updates
Q4-2025 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
54
Neutral
Balance Sheet
62
Positive
Cash Flow
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
Positive
87.86
Price Trends
86.19
Positive
90.61
Negative
96.04
Negative
Market Momentum
-0.53
Negative
57.10
Neutral
76.85
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 87.86 is above the 20-day moving average (MA) of 84.39, above the 50-day MA of 86.19, and below the 200-day MA of 96.04, indicating a neutral trend. The MACD of -0.53 indicates Negative momentum. The RSI at 57.10 is Neutral, neither overbought nor oversold. The STOCH value of 76.85 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $171.15B | 21.11 | 11.35% | 1.10% | 3.61% | 152.34% | |
64 Neutral | $23.64B | 30.69 | 16.22% | 0.85% | 14.91% | 9.30% | |
62 Neutral | $21.82B | 44.38 | 10.50% | ― | 9.81% | -42.40% | |
62 Neutral | $39.55B | 86.44 | 4.89% | 1.07% | 56.31% | ― | |
62 Neutral | $67.75B | 98.11 | 2.05% | ― | -4.29% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $36.19B | 66.61 | 157.65% | ― | 5.39% | 36.94% |
* Communication Services Sector Average
FWONK
Liberty Media Liberty Formula One
86.20
7.13
9.02%
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WBD
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238.81%
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.