FOX (FOXA) Financials

Fox Corporation (NASDAQ: FOXA) has demonstrated notable financial trends over the last four years through the end of Q4 2025. Let's analyze the key financial metrics and tendencies from its quarterly income statements, cash flow statements, and balance sheets.

Positive Trends:

• FoxA showed a steady increase in operating revenue from approximately $3.0 billion in Q4 2022 to around $3.3 billion in Q4 2025, indicating growth in core operations.
• Net income attributable to common shareholders improved substantially, reaching $717 million in Q4 2025 compared to approximately $306 million in Q4 2022, reflecting enhanced profitability.
• Free cash flow from operating activities expanded significantly, with Q4 2025 operating cash flow at $1.51 billion versus $937 million for Q4 2022, signifying stronger cash generation.
• FoxA maintained a high level of total equity, which marginally grew from around $11.3 billion in Q4 2022 to about $11.6 billion in Q3 2025, supporting a solid capital base.
• The company consistently reduced its net debt levels through debt repayments, as seen in steady repayments of long-term debt, e.g., $587 million repaid in Q4 2025 financing activities.
• Diluted earnings per share increased from about $0.55 in Q4 2022 to $1.57 in Q4 2025, demonstrating improved earnings on a per-share basis.
• Strong cash and equivalents balances, with cash increasing from $5.2 billion in Q4 2022 to around $4.8 billion in Q3 2025, and $5.3 billion reported in Q4 2025, providing liquidity.
• The company’s investment in property, plant, and equipment remained consistent, supporting long-term asset strength and operational capacity.

Neutral Observations:

• Gross profit margins remained stable, as cost of revenue was consistently reported as zero, indicating revenues roughly equaled gross profit in available reporting, a typical simplification in reported standardized data.
• Depreciation and amortization expenses have been fairly consistent, ranging in a narrow band around $90-100 million quarterly, aligning with asset base stability.

Potential Concerns / Negative Trends:

• Selling, general & administrative (SGA) expenses increased noticeably, reaching over $2.3 billion in Q4 2025 from roughly $2.2 billion in Q4 2022, which has pressured operating margins.
• Other operating expenses fluctuated and sometimes rose sharply, such as $99 million in Q4 2025 and as high as $893 million in Q3 2023, affecting earnings volatility.
• Other income/(expense) net showed significant swings quarter-to-quarter, with both substantial positive and negative impacts (e.g., -$231 million in Q3 2025, +$282 million in Q4 2025), contributing to earnings unpredictability.
• FoxA experienced negative net income in Q3 2023 (-$50 million) and Q3 2022 (-$50 million), indicating some periods of operational challenge.
• There was notable share repurchase activity, consistently about $250 million quarterly, which reduces cash reserves and may pressure cash flow if not balanced by earnings growth.
• Free cash flow from investing activities has consistently been negative due to ongoing CAPEX and acquisition spending, suggesting capital-intensive operations that could weigh on liquidity.

Summary: Over the past four years, Fox Corporation has improved its overall profitability and cash generation, reflected in growing revenues, net income, and operating cash flow. However, increased SG&A expenses and variability in other operating costs and income introduce some earnings volatility. The company’s balance sheet remains strong with substantial equity and liquidity, but ongoing capital expenditures and share repurchases should be monitored for their impact on cash reserves. Retail investors should consider FoxA's steady operational growth balanced against its cost pressures and capital deployment strategy when evaluating the stock.