Fox Corporation

Thank you for standing by, ladies and gentlemen. Welcome to the Fox Corporation third quarter fiscal year 2026 earnings conference call. At this time, all participants are in listen-only mode. Later, we will conduct a question and answer session via the phones. I would like to emphasise that functionality for the question and answer queue will be given at that time. If you require assistance during the call, please press star, then zero on your touch-tone keypad. As a reminder, this conference is being recorded. I'll now turn the conference over to Chief Investor Relations Officer, Ms. Gabrielle Brown. Please go ahead, Ms. Brown.

Thank you, Operator. Good morning, and welcome to our fiscal 2026 third quarter earnings call. Joining me on the call today are Lachlan Murdoch, Executive Chair and Chief Executive Officer, John Nallen, President and Chief Operating Officer, and Steve Tomczyk, our Chief Financial Officer. First, Laughlin and Steve will give some prepared remarks on the most recent quarter, and then we'll take questions from the investment community. Please note that this call may include forward-looking statements regarding Fox Corporation's financial performance and operating results. These statements are based on management's current expectations, and actual results could differ from what is stated as a result of certain factors identified on today's call and in the company's SEC filings. Additionally, this call will include certain non-GAAP financial measures, including adjusted EPS and adjusted EBITDA, or EBITDA as we refer to it on this call. Reconciliations of non-GAAP financial measures are included in our earnings release and our SEC filings, which are available in the investor relations section of our website. We also refer to free cash flow, which we define as net cash provided by operating activities, less capital expenditures. And with that, I'm pleased to turn the call over to Lachlan.

Thank you, Gabby, and thank you all for joining us this morning. It's a busy day for us here at Fox. This morning, we reported our fiscal third quarter results, and later today, we will host our annual upfront presentation, where our advertising partners will experience firsthand the power of our programming and the platform we provide for them across our family of Fox Corporation brands. And, as you will hear today, all signs point to a healthy upfront for Fox. From global news and live sports to high-quality free entertainment and essential local news coverage, Fox turns audience engagement and passion into performance for our advertising and distribution partners alike. This performance was demonstrated again in our fiscal third quarter, where our financial results continued to reflect the unabated momentum across the business. We reported $4 billion of revenue and EBITDA growth of 11% to just over $950 million, reflecting strong core top line delivery from ongoing advertising trends and distribution revenue growth. Distribution revenue grew 3% during the quarter, benefiting from the continued early success of Fox One, where both new subscriber additions which we are confident are additive to the ecosystem, and subscriber retention outperformed our expectations. Advertising revenue, as expected, declined due to the absence of last year's Super Bowl broadcast. However, excluding the Super Bowl impact, advertising revenue would have grown double digits, driven by strength across the company, and that momentum continues into our fiscal fourth quarter. The strength of these trends is most evident at Fox News, which achieved its highest third quarter advertising revenue ever. In rapidly changing and consequential news cycles, audiences turned to Fox News for compelling, accurate, and timely reporting. This is easily and clearly reflected to the Fox News channel, finishing the quarter at the most watched cable network in both total day and prime. and the sequential momentum is growing. For example, Fox News finished April with year-on-year total audience growth, which contributed to Fox News being the second most watched network in Monday through Friday prime in all of television, surpassing all but one broadcast network. Fox News Digital also delivered strong results in the quarter, with both YouTube and social media views up double digits over the prior year. Fox Sports delivered major wins during a slightly less hectic time of the year for our sports calendar. The World Baseball Classic across Fox was a resounding success, with average ratings across the series up over 150% versus the 2023 tournament, and more than 10 million viewers tuned in for the final. That trend continues as Major League Baseball's opening weekend on Fox scored ratings 45% over last year. And IndyCar raced to its best start in years, growing ratings 37% as of quarter end. Earlier in the quarter, we concluded a strong NFL season, highlighted by over 170 million viewers tuning in to regular season NFL games on Fox during the 2025-26 season. culminating with the NFC Championship game, which averaged more than 46 million viewers. Not bad. The NFL has been a key partner with Fox for more than 30 years in what is a mutually beneficial relationship. To underscore this relationship with the NFL, yesterday Fox acquired rights to two additional NFL games in national windows for this coming season. And Looking ahead, Fox will shortly be home to the world's biggest sporting event of the year, the FIFA Men's World Cup. We are proud to bring the first World Cup to the United States in over 30 years to our audience this summer. This year's tournament, with an expanded schedule encompassing 104 matches over five weeks, will see Fox deliver the most matches ever on U.S. broadcast television. Tubi will also be part of our coverage as Assam will cast the opening matches, including the first USA match, and will be home to a FIFA World Cup hub where Tubi's nearly 100 million monthly active users can engage with a broad assortment of soccer content. This added exposure from the World Cup builds on Tubi's strong third quarter where revenue grew a healthy 23%. Engagement was also solid with a 19% increase in total view time, maintaining strong momentum from library content, Tubi originals, and creator-led titles. Tubi now features more than 220 creators with over 17,000 episodes, with plans to further expand its creator universe as this content attracts younger audiences and drives higher retention. Just like we have seen at the start of each sporting season, We also expect the World Cup on Fox to be a positive for Fox One. Trends across Fox One continue to be encouraging with strong consumption across both our news and sports offerings. Finally, from an entertainment perspective, our refreshed mid-season slate introduced several great new shows led by Fear Factor, Memory of a Killer, and Best Medicine. These attracted robust audiences, consuming live on the network, and were amplified with meaningful levels of delayed digital streaming. In addition, at today's Upfront, we'll be announcing the launch of several new shows for the upcoming year, including Baywatch and The Interrogator. Fox's third quarter results once again underscore the strength of our brands and our leadership in live programming. positioning us to deliver record EBITDA this fiscal year. As we look ahead, this strength will be showcased to the upcoming Men's World Cup and the looming midterm election cycle. These events will supplement our outstanding core sports and entertainment schedules, our continued rapid growth at Tubi, and our leading national and local news coverage, where we continue to make significant investments in the work of our dedicated journalists. We have solid momentum and our financial position is strong, supported by a robust balance sheet. We remain committed to delivering value for our shareholders in a thoughtful and disciplined manner, and we will continue to explore every opportunity to maximize that value over the long term. And with that, I will turn the call over to Steve to take you through the details of the quarter.