Free cash flow remains highly seasonal and volatile, with margins ranging from a negative 14.5% in 2024Q2 to a robust 44.2% in 2026Q3, driven largely by the timing of political advertising cycles and content payments.
| Cash from Operations | 2.62B | 3.32B | 1.84B | 1.8B | 1.88B | 2.64B | 2.37B | 2.52B | 1.32B | 1.66B |
| Operating CF Margin % | - | 20.39% | 13.16% | 12.07% | 13.48% | 20.44% | 19.22% | 22.16% | 12.97% | 16.68% |
| Operating CF Growth % | -204.39% | 80.65% | 2.22% | -4.46% | -28.61% | 11.59% | -6.3% | 91.65% | -20.42% | - |
| Net Income | 1.71B | 2.29B | 1.55B | 1.25B | 1.23B | 2.2B | 1.06B | 1.64B | 2.23B | 1.41B |
| Depreciation & Amortization | 401M | 385M | 389M | 411M | 363M | 300M | 258M | 212M | 171M | 169M |
| Stock-Based Compensation | 96M | 135M | 90M | 74M | 102M | 147M | 137M | 36M | 0 | 0 |
| Deferred Taxes | 115M | 164M | 203M | 321M | 342M | 534M | 283M | 386M | -603M | 92M |
| Other Non-Cash Items | 727M | -119M | 174M | 11M | 527M | -522M | 405M | 83M | 108M | 353M |
| Working Capital Changes | -455M | 466M | -570M | -270M | -683M | -21M | 220M | 164M | -587M | -368M |
| Change in Receivables | 1B | -95M | -172M | -104M | -79M | -269M | 224M | -166M | -166M | -172M |
| Change in Inventory | -557M | 521M | -303M | 145M | -301M | 190M | 181M | 197M | -228M | 21M |
| Change in Payables | -111M | 89M | 0 | 0 | 0 | 0 | -306M | 133M | -193M | -217M |
| Cash from Investing | -673M | -537M | -452M | -438M | -513M | -528M | -1.1B | -637M | 128M | -242M |
| Capital Expenditures | -254M | -331M | -345M | -357M | -307M | -484M | -359M | -235M | -215M | -191M |
| CapEx % of Revenue | 1.57% | 2.03% | 2.47% | 2.39% | 2.2% | 3.75% | 2.92% | 2.06% | 2.12% | 1.93% |
| Acquisitions | -14M | -97M | 0 | 0 | -160M | 42M | -1B | 0 | 354M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -237M | -30M | -4M | -27M | -18M | 0 | 14M | -64M | -11M | -38M |
| Cash from Financing | -3.16B | -1.75B | -1.34B | -2.29B | -2.06B | -870M | 146M | -1.15B | 1.04B | -1.43B |
| Debt Issued (Net) | -600M | -600M | -18M | 0 | -750M | 0 | 1.19B | 6.75B | 0 | 0 |
| Equity Issued (Net) | -2.15B | -1B | -1B | -2B | -1B | -1B | -600M | 0 | 0 | 0 |
| Dividends Paid | -285M | -277M | -281M | -299M | -307M | -330M | -335M | -6.69B | -77M | -35M |
| Share Repurchases | -2.15B | -1B | -1B | -2B | -1B | -1B | -600M | 0 | 0 | 0 |
| Other Financing | -122M | 122M | -42M | 9M | 0 | 461M | -110M | -1.22B | 1.11B | -1.4B |
| Net Change in Cash | -1.21B | 1.03B | 47M | -928M | -686M | 1.24B | 1.41B | 734M | 2.48B | -18M |
| Free Cash Flow | 2.36B | 2.99B | 1.5B | 1.44B | 1.58B | 2.15B | 2.01B | 2.29B | 1.1B | 1.46B |
| FCF Margin % | 14.58% | 18.36% | 10.69% | 9.68% | 11.29% | 16.69% | 16.3% | 20.1% | 10.85% | 14.76% |
| FCF Growth % | -1.01% | 100.2% | 3.6% | -8.5% | -26.82% | 7.43% | -12.36% | 107.71% | -24.73% | - |
| FCF per Share | 5.47 | 6.49 | 3.11 | 2.72 | 2.77 | 3.62 | 3.26 | 3.69 | 1.78 | 2.36 |
| FCF Conversion (FCF/Net Income) | 1.38x | 1.47x | 1.23x | 1.45x | 1.56x | 1.23x | 2.37x | 1.58x | 0.60x | 1.21x |
| Interest Paid | 195M | 402M | 398M | 345M | 383M | 390M | 0 | 0 | 0 | 0 |
| Taxes Paid | -279M | 515M | 232M | 245M | 209M | 225M | 0 | 0 | 0 | 0 |
Sports rights cost inflation
As reported in recent financial filings, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from a negative 4.92 in 2024Q2 to a positive 11.46 in 2026Q3, reflecting significant timing differences in cash collection versus accounting accruals.
The extreme variance in the conversion ratio suggests that net income is a poor proxy for the company's immediate liquidity generation. Investors should monitor whether these swings are merely timing differences related to sports rights payments or if they indicate a fundamental deterioration in the quality of earnings.
Based on the provided cash flow data, free cash flow trajectory remains highly cyclical, with margins fluctuating between a negative 14.5% in 2024Q2 and a robust 44.2% in 2026Q3, largely dictated by the biennial nature of political advertising and the timing of major sports content payments.
The inability to generate consistent positive free cash flow on a quarterly basis highlights the company's reliance on specific seasonal windows to fund operations. This pattern suggests that the business model is inherently vulnerable to any disruption in the timing of its primary revenue-generating events.
According to the company's cash flow statements, working capital changes are the primary driver of quarterly cash flow volatility, with swings as large as $1.4 billion in 2025Q3, indicating that the timing of affiliate fee collections and content rights payments creates massive, temporary liquidity shifts.
The magnitude of these working capital movements suggests that the company's cash position is highly sensitive to the payment terms negotiated with distributors and content providers. Analysts should investigate whether these fluctuations are becoming more pronounced as the linear ecosystem faces increased pressure.
As indicated by historical financial statements, FOX consistently utilizes its cash reserves for share repurchases, with $250 million allocated in most quarters, even during periods where operating cash flow turned negative, suggesting a management commitment to returning capital despite underlying operational volatility.
The decision to maintain aggressive buybacks while operating cash flow is negative warrants further investigation into the sustainability of this capital allocation strategy. It appears management is prioritizing share count reduction over building a larger cash buffer for potential future industry consolidation or digital pivots.
Quick answers to the most common questions about buying FOX stock.
Fox Corporation (FOX) generated $3.32B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Fox Corporation (FOX) generated $2.99B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Fox Corporation (FOX) spent $331.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Fox Corporation (FOX) returned $277.0M to shareholders via cash dividends and spent $1.00B on share repurchases. This shows the company's commitment to returning capital to its equity investors.