Formula One Group

For F1, year-to-date revenue declined 15% and adjusted OIBDA declined 30%, driven mainly by calendar variability; the second quarter had 5 races versus 9 last year, and year-to-date F1 had 8 races versus 11 a year ago. Brian Wendling said F1’s primary revenue recognition was about 36% of season-based revenue year-to-date versus about 46% in the prior-year period, and team payments were 61.7% of pre-team share adjusted OIBDA year-to-date. For MotoGP, management said year-to-date revenue increased and adjusted OIBDA also grew on a constant-currency basis, driven by higher race promotion and sponsorship revenue and lower expenses. Corporate and other revenue was $12 million year-to-date and corporate and other adjusted OIBDA was a loss of $16 million. At quarter end, Liberty Media had about $1.5 billion of cash and liquid investments, about $5 billion of debt, and net leverage of 3.4x. Guidance: F1 now expects a 23-race calendar this year after the Bahrain GP was moved to Malaysia, expects to start accruing season-based revenue costs and true-ups in Q3 for the 23-race calendar, and expects to return to a full 24-race calendar next season. Management still expects roughly 200 basis points of improvement in F1 team-payment leverage for the full year.

Derek Chang said Liberty’s 2026 priorities are unchanged: strengthen Formula One’s durable business model, lay the foundation for MotoGP’s next phase, and allocate capital with discipline. He sounded upbeat about F1’s U.S. momentum on Apple, including higher viewership and 13% more total hours watched year to date, and said the Las Vegas Grand Prix’s 10-year extension through 2037 gives the company more certainty to invest for the long term. On MotoGP, he described the business as early in its growth phase but moving in the right direction after the new manufacturer and team agreements through 2031.

Brian Wendling focused on the financial effects of calendar timing in F1, saying the quarter was distorted by fewer races and that the company should be viewed on a full-year basis. He pointed to 15% year-to-date revenue decline and 30% adjusted OIBDA decline in F1, while noting strong underlying sponsorship, licensing and Paddock Club demand; he also said team payments were 61.7% of pre-team share adjusted OIBDA and still should improve by roughly 200 basis points for the full year. He reported about $1.5 billion of cash and liquid investments, about $5 billion of debt, undrawn revolvers at F1 and MotoGP, and net leverage of 3.4x; he also said MotoGP debt was repriced in June with a EUR 720 million Term Loan B, a USD 200 million Term Loan A and a new EUR 100 million revolver at attractive terms.

Analysts asked about the trajectory of media-rights revenue, especially after the Apple deal, and management said media negotiations are market-by-market and increasingly shaped by digital platforms, but they feel good about the product and are willing to renew early when it makes sense. On Las Vegas, management said ticket sales are running ahead of last year and the 10-year extension should support greater long-term profitability by enabling more infrastructure and cost control, though they did not break out race-level financials. Questions on SG&A and MotoGP investment were met with the answer that F1’s higher SG&A reflects last year’s 75th anniversary marketing, FX, personnel and IT investment, while MotoGP’s investment phase is still relatively limited. Analysts also pressed on Sprint races, Germany and MotoGP sponsorship renewals; management said more Sprints will be added next year, Germany may benefit from a more favorable market structure over time, and MotoGP’s sponsorship opportunity is broader than just near-term expiries because the sport is trying to expand beyond a traditional endemic sponsor base.