Liberty Media profit flips as Formula 1 races ahead
The media-and-motorsports company posted $107 million in Formula 1 operating income after a $28 million loss a year earlier.
Liberty Media (FWONA) swung to a consolidated profit in the first quarter, as Formula 1 revenue more than doubled and cost discipline turned operating losses into a nine-figure gain. The media-and-motorsports company reported net income of $64 million, reversing a $67 million loss in the year-earlier period.
The quarter marked the sharpest acceleration in Formula 1’s financial trajectory since Liberty took control in 2017. A calendar quirk—three races completed in the quarter versus two in the prior year—combined with new sponsorships and higher hospitality sales to lift revenue 53% year-over-year to $617 million. Adjusted OIBDA for the series nearly doubled to $172 million, outpacing the top-line gain as fixed costs were spread across more events.
Primary Formula 1 revenue—race promotion, media rights, and sponsorship—rose 55% to $496 million, with media and sponsorship lines boosted by the early-season timing of three of this year’s 22 races (versus two of 24 in the prior-year quarter) and the addition of Standard Chartered as a global partner. Hospitality, freight, and licensing added another $121 million, up 44%. Team payments climbed 61% to $184 million, reflecting the same calendar variance, while $50 million of Concorde incentive payments that weighed on the prior-year quarter were eliminated.
MotoGP, the company’s second-largest motorsports asset, delivered 25% revenue growth to $94 million on a pro forma basis, with race promotion and sponsorship up 30%. Adjusted OIBDA rose 60% to $16 million, though an operating loss of $24 million persisted as higher freight and fuel costs offset the top-line gains. Separately, Liberty repriced MotoGP’s debt, cutting €80 million from its Term Loan B and $22 million from its Term Loan A, funded by cash on hand, and lowering the net senior secured leverage ratio to 4.6× from 4.7× at year-end.
Consolidated revenue jumped 59% to $711 million, while adjusted OIBDA more than doubled to $181 million. Cash and equivalents rose $277 million sequentially to $1.33 billion, and Formula 1’s net leverage ratio improved to 2.3× from 2.8× at December 31. The company’s remaining share-repurchase authorization stood at $1.1 billion as of May 1, with no buybacks executed in the quarter.
Liberty confirmed that the 2026 Formula 1 calendar has been reduced to 22 races from 24 after the cancellation of the Bahrain and Saudi Arabia Grands Prix due to geopolitical tensions, though the impact on full-year results is expected to be limited by the timing of revenue recognition. MotoGP’s 2026 schedule remains unchanged in length but has been reordered, which may shift revenue between quarters.