Formula One Group (FWONK) Earnings

Management highlights

- Core Strategic Priorities * Maintain and expand Formula One's durable, high-margin business model * Establish organizational and commercial foundations for MotoGP's next phase of long-term growth, preserving each sport's distinct identity * Allocate capital with discipline, support organic growth, and maintain a prudent balance sheet - Formula One Operational Highlights * The 2026 new technical era has produced highly competitive on-track racing, driving strong fan engagement. 3.3 million total attendees year-to-date, with all 10 races through Belgium selling out, and 5 races setting new attendance records (Silverstone hit an all-time F1 record of 564,000 fans). * Key viewership growth: U.S. Apple TV viewership and total hours watched are up 13% year-over-year, attracting a younger, more female audience; TV audiences grew 27% in Italy through Silverstone, the British Grand Prix hit an 8-year audience record in Brazil, and the Chinese Grand Prix weekend audience doubled year-over-year. Social media followers grew 19% year-over-year, with YouTube views up 30% to 13 billion total. * Premium hospitality: Paddock Club is sold out for the full 2026 season; new premium offerings (House 44, The Out Lap with LVMH) are successful, with expansion planned for 2027. Paddock Club capacity has been increased across multiple circuits in 2026, with more expansion scheduled for 2027. * Commercial and licensing: Extended Pirelli as official tire supplier through 2028, added new multiyear partners including Flexjet, Fever (centralized ticketing), Hasbro, DK Books, Gentle Monster and Uniqlo; licensing revenue growth continues to outperform expectations, with new retail concepts being rolled out globally. Las Vegas Grand Prix secured a 10-year extension through 2037, 2026 ticket sales are trending well ahead of 2025 levels, and Grand Prix Plaza attendance is on track to surpass 2025. * After postponing the Bahrain and Saudi Arabian GPs earlier in the year, the Bahrain GP will be rescheduled to Malaysia in October 2026, delivering a 23-race 2026 calendar, with a return to a full 24-race calendar planned for 2027. Sprint races will be expanded in 2027, as the format drives higher attendance and commercial demand. - MotoGP Operational Highlights * 2026 season has exceptionally tight competition, with only 24 points separating the top 5 riders year-to-date. Attendance is up 4% year-over-year, with record attendance in Thailand and Germany; TV viewership is up 3% overall, with strong growth in the U.S., Spain and Austria. Social media followers grew 3% year-over-year to 63 million, with TikTok engagement up 80% and Chinese social followers up 26%. * Secured 5-year agreements with all manufacturers and teams through 2031, aligned with new 2027 technical regulations, establishing a stable long-term framework for investment and commercial growth. The agreement includes cost optimization while preserving competitive integrity, with shared investment to grow the sport collectively. * Secured multiyear media right renewals in key markets including Sky DACH (Austria/Germany/Switzerland), DAZN (Spain/Portugal) and RTBF (Belgium); extended race promotion agreements for Malaysia (through 2031) and Silverstone (through 2028), with a 2027 debut scheduled for the new Adelaide GP. * Signed CAA as global sponsorship agency to strengthen commercial development, and expanded its premium hospitality partnership with Quint to improve event experiences.

Guidance

- 2026 full-year expected F1 calendar is 23 races (after the Bahrain GP rescheduling), up from the prior 22-race assumption; revenue and cost true-ups for the 23-race calendar will begin accruing in Q3 2026. - F1 is expected to return to a full 24-race calendar in the 2027 season. - F1 expects a roughly 200 basis point improvement in team payment leverage (team payments as a percent of pre-team share adjusted OIBDA) for full-year 2026, in line with the 4-year average. Beyond 2026, the payout percentage will remain relatively stable through the end of the Concorde Agreement in 2030. - Sprint races will be expanded for the 2027 F1 season, with further details to be released alongside the 2027 calendar. - F1 plans to expand premium hospitality capacity and offerings in 2027, including expanding House 44 from 9 to 13 locations and rolling out The Out Lap across European circuits. - Germany is viewed as an untapped growth market for F1, with potential for a calendar return and improved media rights terms in the medium term, though no short-term decision is expected.

Segment performance

1. Formula One (F1): Year-to-date through Q2 2026, F1 held 8 races (3 fewer than the prior year's 11 races), resulting in a 15% year-over-year revenue decline and a 30% year-over-year adjusted OIBDA decline, driven entirely by calendar variance. Lower race count reduced season-based revenue recognition, hospitality/freight revenue, and F3 revenue (from the 2025 F3 car sale cycle). Offsets include contractual fee increases across all three primary revenue streams, strong demand for Paddock Club, continued growth in licensing, and expanding Grand Prix Plaza activities in Las Vegas. Team payments as a percentage of pre-team share adjusted OIBDA were 61.7% year-to-date (accrued for a 22-race calendar). F1 contributes the vast majority of the company's operating profit. 2. MotoGP: The acquisition closed in July 2025, so comparisons use pro forma constant currency results. Race count was identical year-over-year for both the quarter and year-to-date. Year-to-date revenue increased, driven by race promotion growth (from event mix) and new sponsorship/contractual growth, partially offset by reduced contractual media rights and lower title sponsorship from event mix. Adjusted OIBDA grew year-over-year, driven by revenue growth and lower expenses: cost reductions came from favorable race mix reducing freight costs, and a new hospitality agreement with Quint that results in net revenue recognition for hospitality, lowering gross reported revenue and costs. MotoGP is in an early growth phase under Liberty ownership. 3. Corporate and Other: Year-to-date revenue was $12 million, primarily from Las Vegas Grand Prix Plaza rental income. Adjusted OIBDA was a loss of $16 million, covering corporate overhead and plaza operating costs.

Risks & headwinds

- Calendar variability from the postponement of the Bahrain and Saudi Arabian GPs drove a material decline in reported year-to-date F1 revenue and adjusted OIBDA in 2026, though this is a temporary timing impact rather than an underlying business decline. - Media rights revenue is subject to market dynamics across individual regions, including fluctuations in demand from linear and digital platforms, merger activity among existing media partners, and other external market shifts outside of Liberty's control. - Geopolitical uncertainty in the Middle East required the postponement and relocation of the Bahrain Grand Prix, highlighting the risk of regional instability disrupting event scheduling. - Foreign exchange fluctuations impact MotoGP financial results (most revenue and costs are euro-denominated) and F1 SG&A (material U.K. cost base exposed to pound sterling movements).

Analyst Q&A

• Q: How are global media rights renewal conversations evolving broadly, and what is the profitability outlook for the Las Vegas Grand Prix following its 10-year extension?

  A: Liberty controls its own content, a core competitive advantage that makes F1 and MotoGP attractive to all types of media partners. Management notes it sees ongoing early renewals from partners that recognize the value of live sports content, and prioritizes long-term stability with invested partners. For Las Vegas, the 10-year extension allows for long-term infrastructure investments that will reduce future build costs, and the race is already profitable with a clear upward profitability trend driven by growing ticket sales and ongoing cost optimization. (317 characters)

• Q: What underlying F1 business segments are outperforming expectations, and what is driving the recent year-over-year increase in SG&A?

  A: Excluding calendar variance impacts, sponsorship, licensing, and premium hospitality (Paddock Club) are all outperforming initial 2026 expectations. SG&A growth is driven by three temporary or investment-focused factors: lapping the 75th anniversary F1 marketing spend from 2025, negative foreign exchange impacts on U.K.-based costs, and planned investments in personnel and IT systems to support long-term growth. Most of these impacts will not repeat in 2027. (309 characters)

• Q: What are the key levers to grow F1's licensing business into a larger revenue contributor over time?

  A: The core levers are ongoing digitalization investments that improve visibility and merchandising opportunities across regional markets, proactive early renewal of existing major partner agreements, and retaining control of emerging high-value categories (specifically artificial intelligence) to create incremental new partnership opportunities rather than licensing the category exclusively to a single partner. This strategy positions licensing for sustained long-term revenue growth. (271 characters)

• Q: How much incremental growth investment is MotoGP currently incurring, and what is the sponsorship renewal outlook?

  A: Incremental growth investment has been modest so far, with only limited increases in marketing spend and personnel costs that are not material to overall results. On sponsorship, rather than focusing just on expiring contracts (which follow a steady 3-5 year renewal cycle), the bigger opportunity is expanding beyond MotoGP's historical endemic sponsorship base to attract larger non-endemic global brands, opening much larger growth potential than traditional renewals. (268 characters)