Thank you, Polly. Good morning, and welcome to our fiscal 2026 fourth 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 Tomsic, our Chief Financial Officer. First, Lachlan 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. With that, I'm pleased to turn the call over to Lachlan.

Thank you, Gabby, and thank you all for joining us today. Fiscal 2026 was a notable year for Fox.

We successfully launched our direct-to-consumer streaming service, FOX One; broadcast the FIFA Men's World Cup to record audiences in the US; continued to keep America informed through a dynamic and fast-moving news cycle; enhanced Tubi's position as a leading streaming service; and announced the next chapter in Fox's digital evolution with our pending acquisition of Roku. These milestones were underpinned by a year of record financial performance.

Revenue grew by 5% to over $17 billion, driven by record advertising and distribution revenue, while EBITDA grew 8% to a record $3.9 billion. These are excellent results, made even more impressive by comparison to the especially strong prior year, which benefited from the Super Bowl and the presidential election.

We closed the year with outstanding top and bottom-line momentum. Our fiscal fourth quarter total revenue increased 28% to $4.2 billion, and EBITDA improved 27% to $1.2 billion.

On the distribution side, revenue in the fourth quarter increased 5%, supported in part by the strong momentum of FOX One, which continues to exceed our expectations. Advertising revenue during the quarter was notably strong, increasing 78%, with growth fueled by continued strength of Tubi, healthy advertising trends across the broader Fox portfolio, and our broadcast of the first stages of the 2026 FIFA Men's World Cup.

At a time when audiences are increasingly fragmented, the World Cup demonstrated the unique power of Fox to deliver live, premium sports that bring people together at scale. I'm proud of what the team achieved through the broadcast of the entire World Cup across the entirety of Fox.

As we have shown time and again, we excel at mobilizing the whole company to deliver outstanding experiences for viewers, advertisers, and distributors. What is not explicit on-screen or in the financial results is the intense amount of skillful work, preparation, promotion, production, marketing, and ad sales that goes on behind the scenes.

We had thousands of colleagues directly involved in the production of all of our programming over the course of the tournament. We deployed all of our platforms, including the stations, the network, FOX Sports, FOX News, FOX One, Tubi, and our other digital assets, to proactively drive record-breaking broadcasts from Fox.

From the flawless simulcast of the opening matches on Tubi right through to the historic final, we brought the 104 matches and shoulder programming to American homes and watch parties like no other World Cup before. The success of the World Cup led Fox to top all networks in live event sports consumption in fiscal '26, a remarkable achievement given that the next-highest-rated broadcast network benefited from both the Super Bowl and the Winter Olympics.

The tournament also proved to be a customer acquisition opportunity for FOX One, driving incremental subscriber acquisition and strong retention rates that surpassed our expectations. Importantly, through FOX One, we continue to see minimal cannibalization of our traditional pay-TV business, reinforcing our strategy of targeting the cord-less population, which has delivered meaningful additional distribution revenue across the company.

We are a nimble, purposeful company, expert at delivering complex events at scale. We'll demonstrate this expertise again as we begin another broadcast season of the NFL on FOX, starting next month.

In advance of the season, we've had a thorough and productive discussions with the league. As a result, we will not be making any amendments to our existing contractual relationship, which extends to the completion of the 2029 season.

We'll be ready to engage with the NFL on the opt-out seasons and beyond at a date closer to the 2030 season, which has been the customary timetable. While our sports calendar had the most attention in the quarter, FOX News remained the leader in live news, finishing the quarter and the year as both the most-watched cable network in total day and in prime time, while continuing to reinforce its leadership position with market share levels well ahead of all of its competitors combined.

This robust audience engagement, combined with the addition of another 400 new advertisers to the platform during the year, helped drive record revenue at FOX News Media in both the fourth quarter and the fiscal year. Tubi delivered its most streamed and highest revenue quarter ever.

Fourth quarter revenue growth accelerated to 35%, fueled by a 17% increase in total viewing time. Tubi's World Cup Hub attracted over 20 million viewers across the tournament, while, additionally, the simulcast of two early-round matches generated two of the highest traffic days in the platform's history, in addition to promoting the tournament in the broadest way possible.

That momentum helped Tubi close the fiscal year with 110 million monthly active users. Tubi and FOX One are the result of a successful strategy and skilled execution.

Our pending acquisition of Roku is an extension of these. This transaction will bolster our position in connected TV distribution and advertising, which have compelling long-term growth profiles.

Fox has deep digital resources and skills, most notably seen in our consumer-facing products such as Tubi, FOX One, FOX Nation, and FOX News and FOX Sports digital. We have developed these businesses across their growth path to become important digital brands.

For example, when we acquired Tubi in its early stages, we have turned it into a leading streaming platform with 10 times the revenue from when we started. The addition of Roku to Fox will expand our digital footprint and offerings even further.

Roku brings us streaming at scale through its open, partner-friendly platform that makes it a leading TV streaming platform in the US. Together, Fox and Roku combine premium live content, deep market relationships, scaled distribution, and leading platform capabilities, including subscriptions, to respond to the evolving needs of consumers and advertisers.

I know I speak for Anthony in saying that we are eager to get the transaction closed and for our teams to get started. While we are only in the early approval process, the transaction is on track, and we expect closing in the first half calendar 2027.

We have had an outstanding fiscal 2026, and fiscal 2027 is also off to an excellent start. The success of the World Cup, combined with the early stages of the midterm political cycle, has driven continued advertising momentum across our national, local, and digital portfolio during our fiscal first quarter.

The healthy advertising environment we saw throughout fiscal 2026 has carried into the new year, culminating in one of the strongest upfronts in our history, with double-digit growth in volume. These results underscore the strength of the Fox portfolio and our unmatched ability to deliver premium, highly engaged audiences at scale across linear, digital, and streaming platforms, while also delivering sustained growth and shareholder value.

I'll now turn it over to Steve to discuss the financials.

Thanks, Lachlan, and good morning, everyone. Fox has just delivered an exceptionally strong fiscal '26, highlighted by record annual revenue of over $17 billion and record EBITDA of $3.9 billion.

Advertising revenue across the company grew 7%, which is particularly noteworthy when measured against last year's Super Bowl LIX and presidential election cycle. This growth was led by our broadcast of the 2026 FIFA Men's World Cup, along with continued growth at Tubi.

Despite being a relatively light year of renewals, distribution revenue increased 4%, led by 5% growth at our Cable segment. Content and other revenue was up 4%, primarily due to higher sports sublicensing revenue at our Cable segment.

Total expenses increased 4%, mainly a result of World Cup rights and production costs, FOX One first-year costs, and higher digital content costs. Net income attributable to stockholders was $1.7 billion or $3.84 per share, as compared to the $2.3 billion or $4.91 per share reported in fiscal '25.

Excluding non-core items, full-year adjusted net income was $2.4 billion, and adjusted EPS was $5.42 per share, up 13% compared to the $4.78 per share reported in the prior year. Our financial delivery has been strong throughout fiscal '26, and we ended the year with tremendous momentum, with our fiscal fourth quarter results headlined by 28% growth in total revenue and 27% growth in EBITDA.

This was driven by a 78% increase in advertising revenue, primarily a result of this year's broadcast of the World Cup and accelerating growth at Tubi. Distribution revenue grew 5%, once again demonstrating the strength of our brands and focused portfolio of channels.

Content and other revenue was $262 million, as compared to the $269 million reported in the prior-year quarter, primarily due to the timing of sports sublicensing revenue. Expenses increased 28%, driven by higher sports programming rights amortization and production costs, led by the World Cup, as well as costs associated with the growth of FOX One.

Net income attributable to Fox stockholders was $691 million or $1.61 per share, as compared to the $717 million or $1.57 per share reported in the prior-year period. Excluding non-core items, adjusted net income was $765 million, and adjusted EPS was $1.79, up 41% compared to the $1.27 per share reported in the prior-year period.

Now let's turn to the quarterly results of our operating segments. Starting with the Cable Network Programming segment, where revenue grew 9% and EBITDA declined 3%.

Cable advertising revenue grew 22% over the prior year, driven by this year's broadcast of the World Cup. Cable distribution revenue grew 7% over the prior-year quarter, as pricing gains from our affiliate renewals outpaced the impact from net subscriber declines, which remained consistent with the prior quarter at under 6.5% across our third-party distributors.

This is before taking into account the meaningful positive contribution from FOX One. Cable content and other revenue declined 39% due to the timing of sports sublicensing revenue.

Revenue growth at the Cable segment was more than offset by a 20% increase in expenses, primarily attributable to an increase in sports programming rights amortization and production costs led by the World Cup. Turning to our Television segment, which delivered 45% revenue growth and 129% EBITDA growth.

Advertising revenue at our Television segment grew 108% over the prior year, led by the current-year broadcast of the World Cup, higher political advertising revenue at our television stations, and continued growth at Tubi, which was EBITDA positive in each quarter of fiscal 2026. Television distribution revenue was essentially flat compared to the prior year.

Television content and other revenue was up 14%, primarily due to higher content revenues tied to our entertainment production studios. Expenses at the Television segment increased 27%, primarily reflecting higher sports programming rights amortization and production costs led by the broadcast of the World Cup.

Turning to cash flow, where we generated robust quarterly free cash flow of $726 million. As expected, quarterly free cash flow was impacted by the timing of working capital related to the World Cup, where rights payments for the tournament landed in fiscal '26, while advertising receivables will be collected early in fiscal '27.

Before we get to capital allocation and balance sheet, it is worth noting some key items for this coming fiscal year. From a cyclical event perspective, we will continue to have the benefit of the World Cup in the first quarter of '27, with total tournament revenues weighted towards fiscal '26 versus '27, and with 2027 revenues strongly weighted towards our Television segment, which carried the majority of the knockout stage matches.

The other major cyclical tailwind will be the midterm elections, which are expected to boost advertising revenues, particularly at our local stations and Tubi within our TV segment. From a distribution revenue perspective, we return to a more normalized level of renewals in fiscal '27, which will be more skewed towards TV.

We continue to expect both our Cable and TV segments to contribute to distribution revenue growth in fiscal '27. With the performance of Tubi and FOX One running ahead of expectations, the level of investment in digital-led growth initiatives moderated in fiscal '26 versus the prior year, and we expect to see continued bottom-line improvement in this portfolio going into fiscal '27.

In terms of capital allocation, in fiscal '26, we repurchased an additional $2 billion through our share buyback program and distributed approximately $243 million in dividend payments. As Lachlan mentioned, underscoring our commitment to return capital to shareholders, today we announced an increase in our semiannual dividend to 29 cents per share.

With the payment of this dividend and our share repurchase activity, we will have cumulatively returned $10.7 billion of capital to our shareholders since the spin. This includes $8.6 billion of share repurchases, representing approximately 36% of our total shares outstanding since the launch of the buyback program in November 2019.

This is all supported by the strength of our balance sheet, where we ended the quarter with approximately $4.2 billion in cash and $6.6 billion in debt. With that, I'll turn the call back over to Gabby.

Great. Thank you, Steve.

Now we would be happy to take questions from the investment community. Please note that we are limited in what we can say regarding Fox's pending Roku transaction at this time.

We have filed materials about the transaction, including the merger agreement, with the SEC. When we file the registration statement for the transaction, it will provide additional information.

For today, we would ask that questions focus on Fox's standalone results.

Great, thanks. Good morning, everyone.

Lachlan, any color you can provide on the underlying ad market? Some of your peers during the earnings season here have sort of talked about sort of mixed results.

Maybe first on the linear side, what you saw on the upfront in terms of pricing, and then kind of overall demand for sports and news inventory. Then, any comments you can provide on the health of the CTV market?

You had some positive trends there with Tubi, but just anything you can provide in terms of pricing and fill rates. Then lastly, just a quick clarification on your comments on the NFL.

I guess, at this point, we shouldn't expect a change in pricing of those rights until 2030. If you could provide any color in terms of how that came to be.

I think there's a lot of expectations that you would see a price increase either for this season or for next season. Any color there would be great, too.

Thanks.

Great. Thanks, John.

Good morning. First on the ad market, we are seeing a very strong ad market for us.

I can't speak for the total ad market, but certainly for our businesses, and really across our entire portfolio. We're pleased with the strength of the demand for impressions across sports, news, the local stations, Tubi, and also entertainment.

It's a strong market. Our upfronts, we completed some time ago with double-digit volume growth across sports, news, and Tubi.

We achieved rates of change which we believe are sort of leading amongst our peers. It's always difficult to tell, but certainly that's what our sort of front-facing sort of ad sales team are telling us.

They believe we both achieved this double-digit volume growth in addition to leading our rates of change. We're pleased with that.

When I look at the categories that were benefiting from, I think of the 10 categories that we track, we're up in sort of eight of the 10 categories in the upfront. Entertainment, financial, auto, pharma, dining, retail, technology, and telecom all had very strong upfronts for us.

That's from an upfront perspective. Moving into where we are today, we're seeing that momentum and that strength continue into the first quarter.

We are very pleased. The CTV market remains very competitive.

There's a lot of new inventory available in that market. In that segment, Tubi has seen a 35% revenue growth, has competed exceedingly well despite the heavy competition.

We're seeing that momentum continue in the first quarter. On the NFL, you're correct.

We don't see any changes to our contractual terms until the 2030 season. I can't really give you any color in terms of the background to how we've come to that.

Thank you for the question, John.

Great. Next question, please.

Thank you. Good morning.

Thanks for all the work on the World Cup. It was a very enjoyable event as a fan.

I want to ask you about that. Can you help us any more with the size of the contribution to ad revenue and profitability, both in the fiscal fourth quarter and what you're expecting from a contribution perspective in the fiscal first quarter?

Then bigger picture, Lachlan, maybe for you, I'd love to hear how the strength of a unique event like the World Cup in the US, in North America, which is not recurring, does help the business on a sustainable basis. How do you keep momentum for this and from this, and what else does this fuel for Fox going forward post-World Cup?

Thank you.

Thanks, Mike. I'm glad you enjoyed the World Cup as a fan.

We also enjoyed it as as as a as a business even even even more. Look, it was a It's a as you as you allude to in your question, it really was a a unique event.

I think, in addition to the which I think would speak to the second part of your question, in addition to the sort the the strength of Fox, our focus, our ability to amplify the World Cup across our entire portfolio, a tremendous amount of planning and and work went into this. I think I think it it it illustrated that really only Fox can take events like this and and and amplify them in in a way that's that that's, frankly unique in in the in the market.

We were very pleased with the World Cup. Obviously, though, it's it's a, an an American World Cup.

It came in the summer months without a lot of sports competition, and it had tremendous enthusiasm by both viewers and fans, but also by, our our clients and advertising partners. The the stars really aligned to to to deliver, a a tremendous result for for for both FIFA and for fans and and for us.

I think that goes to your your second part of your question, how how this is how we move forward. I I think we can show, all sports leagues the value of Fox and the value of what we bring.

Obviously, sports leagues are are are intent and focused on, monetizing their their IP and their their their properties the most and then the, most efficiently. It's important to realize the the strength of the marketing, the reach, the planning, the production that that we put behind events like this.

Great. Next question, please.

Hey, good morning. Thank you very much for the question.

I have two, as well. Just first on Tubi, and the very strong 35% year-over-year growth.

Maybe you could just help us break that down between benefits from things like the World Cup Hub versus underlying. Then could you just remind us what the digital loss number or digital investment number was for fiscal '25, we can model off of that?

Could you just comment on the free cash flow outlook for next year? Thank you.

Great. Thanks, Mike, and good morning.

I'll I'll talk to the the Tubi momentum, and Steve can talk to investment. He used the He used the word losses, but it's really really really important and sort of disciplined investment in our digital categories.

Look, so Tubi Tubi grew, as you mentioned, 35%. That momentum's continued in into the first quarter.

That's driven off a number of things. Obviously, it's a total viewing time, which grew 17%.

That's the key metric. If we can continue to grow the engagement and and the the the viewing time, the impressions and ad revenue flow from that.

Why if you if you take a step back and and think about, why Tubi has been so successful, in addition to its sort of, really industry-leading library and and sort of and sort of user interface and platform, is that I think it's close to 70% of Tubi's viewers are cord are are are cord-less, right? Are either cord-nevers or cord-cutters.

This far exceeds any of our competitors in the marketplace. The the We have the largest cohort of cord- of cord-less, which means very hard to reach audience, viewers for for the advertising market.

When you add Tubi to to a a media buy, you really are getting, you're expanding your reach dramatically and is a very valuable position to be in. In addition to that, you have to remember that Tubi's viewing is like 96% of video on demand.

Someone is actually choosing, proactively choosing to watch that content in in their in their living room, or or or in their home. It's not a FAST channel, or driven by FAST channels, which is, which is, much more akin to a to a linear stream, which makes its advertising, even more valuable to, for that high engagement with the consumer.

We're very pleased with Tubi, and we're pleased to see its momentum continue into the new fiscal year. Steve?

Thanks, Lachlan. Hey, Mike.

Just in terms of the digital investments, just to remind people, in fiscal '25, we were just under $300 million in digital investments. This current year, just picking up the comments Lachlan had about Tubi and the outperformance there, plus the incredible outperformance we saw of FOX One, saw that digital investment number collectively come in at less than $200 million in the most recent fiscal year, fiscal 2026, and we'd expect, as I mentioned in my remarks, for that improvement to continue going into fiscal 2027.

Mike, I didn't answer your part about the Tubi World Cup revenue. It was an important revenue, good revenue, but it's relatively small in the context of the overall revenue growth of Tubi.

Next question, please.

Hi, good morning. Another one on Tubi.

I wondered if you could discuss ad sales at Tubi from the perspective of sellout and CPM trends, and whether you can share levels, especially on sellout, to give us a sense of how that's going, and obviously, it relates to your proposed acquisition of Roku, even though the question isn't directly about Roku. As a brief second one, if you could talk about FOX One's subscriber retention, how important has been bundling FOX One to your churn rate?

Thank you.

Thanks, Peter. Let me start with Tubi.

As we mentioned, the CTV ad market remains very active and very competitive, which means very price-sensitive. Tubi, though, has always been priced very efficiently for the current environment.

While I think other platforms in the market have had to reduce price to compete, or compete for volume in the market, Tubi has not had to drop its advertising rate in order to compete. That's partially because we're already a tremendously efficient advertising vehicle for people.

On the second question on FOX One, yeah, bundling is important for FOX One. We will continue to bundle FOX One where it makes sense for consumers.

Consumers are either self-bundling, obviously, as they choose their streaming services, where it makes sense, we will continue to bundle to make it more efficient for consumers, more attractive for consumers, where there's a natural fit for FOX One with another provider. That will continue.

The pleasing thing with FOX One, in addition to the fact that the subscribers to date are truly incremental. We've seen that through our data and our numbers.

We are not churning any traditional MVPD customers, which are incredibly valuable to us. We are huge supporters of the vMVPD marketplace.

These are new subscribers, incremental subscribers that come from outside the traditional ecosystem. That's very encouraging.

The second thing that's encouraging is the churn has been well below our expectations and looks like it's continuing that in the first quarter.

Next question, please.

Great, thanks very much, team. Two if I may.

First, on political, any thoughts on how ad revs are shaping up into this cycle relative to prior? Then on capital allocation, obviously, Roku deal announced, you're still buying back stock.

Anything we should think of that in terms of being able to buy back more stock over the course of the next fiscal year? Thanks.

Sure. Hey, Sean.

I'll answer political, Steve can talk to the rest of the question. Political ad sales, it looks like, well, I'll start by saying the independent political ad tracking firms are estimating over $11 billion of political ad spending in the upcoming midterm election.

This combined with what we've already seen in an off-cycle year, strong political revenue, we believe this will be a record midterm cycle for us. Just to put that in context, in the presidential election, not the midterm cycle, but the presidential election in 2024, we saw over $400 million of political revenue, and then two years before that, the last midterm cycle, we did over $260 million in revenue.

We would expect this midterm cycle to beat that and be a record cycle.

Sean, in terms of capital allocation, listen, we ended the year with the balance sheet exactly where we expected it to be as we're planning out the Roku transaction. You remember the Roku sort of the coordinates on the deal from a leverage perspective sees us close the deal at about net leverage of 2.8 times.

The structure of that deal gives us an incredible amount of capital allocation flexibility, you should expect that our buyback program continues unabated through the pendency of the transaction and beyond it.

We have time for one more question.

Hey, thank you. Lachlan, I appreciate you can't give comments around the NFL conversations, but can you maybe shed any light into what you're thinking was around engaging with the league now versus entering a more open market after '29?

Then when we look at the rights landscape, there's a lot in the pipeline in the next couple years, including some things that you're the incumbent on, like MLB or World Cup. Just assuming the NFL would opt out, how are you thinking about your rights portfolio ahead of then?

Thanks, David. It's it's we always on the side of not, not going into, specifics about discussions with with our partners, but suffice suffice to say that, our relationship with the NFL is a is a incredibly positive one.

We we engage with them all the time. Obviously, we've been talking with them over the last period about, the future of our our of our our rights, certainly, for the next four years and then and then beyond the opt-out period.

We feel, we we continue to have a great relationship with them and and a and a good place. When when we sit down and talk about the contractual extension of of our rights after 2029, into the 2030 season or 2029 season, I think, it will the we'll we'll do that much closer to that date.

I point to facts that we might have talked about on the last earnings call that in Mexico, we've just taken the NFL rights for Mexico. We continue to to pro- to promote and and and amplify, th- their their their games and and and the league, which which we've been doing for the last 30 years.

We're very pleased with the relationship, and we think we can see a clear path forward certainly through the '29 season and also beyond.

Great. Thank you.

At this point, we are out of time, but if you have any further questions, please give me or Charlie Costanzo a call. Thanks so much for joining us today.

Thanks, everyone.

Thank you.