Key Points
- Fox’s free streaming service Tubi achieved profitability faster than expected, CEO Lachlan Murdoch said on Thursday.
- Tubi has made aggressive moves to expand its content library and global reach.
- Fox will remain disciplined across its streaming and networks spending for the rest of the year, Murdoch said.
Fox Corporation’s free streaming service Tubi saw its first profitable quarter since the company acquired it five years ago, Fox CEO Lachlan Murdoch affirmed during a conference call on Thursday.
Tubi’s revenue rose 27 percent year-over-year, while viewing time jumped 18 percent, according to results released this week for Fox’s first fiscal quarter (Q1 2026, coincides with calendar Q3 2025).
Profitability for the service came well earlier than expected, Murdoch said, adding that Tubi is now expected to deliver operating margins of 20 to 25 percent over the next few quarters.
“It’s a great milestone, and a credit to the Tubi brand,” Murdoch said. “We view Tubi as the top premium AVOD platform in the U.S., and we expect it to be a meaningful contributor to EBITDA.”
Murdoch said Tubi’s faster-than-expected profitability will likely lead to “a partial moderation in overall investment” across Fox’s digital operations for the rest of the fiscal year.
Fox doesn’t break out separate revenue data for Tubi, instead choosing to roll it into its TV business unit, which also includes the Fox broadcast network. Fox’s television segment generated $2.05 billion in revenue during the quarter, up 5 percent when compared to a year ago. The TV revenue doesn’t include its cable networks business, which is evaluated separately.
Tubi’s success has been largely driven by a growing library of premium shows and movies, as well as Fox’s decision to expand the platform globally (it recently launched in the United Kingdom). Tubi’s library now contains nearly 10,000 shows and movies, and executives say it continues to position itself as a home for emerging creators and diverse voices.
In recent months, Tubi struck a content deal this week with Kevin Hart’s Hartbeat for a slate of original films, and on Thursday, it announced a deal with “Crime Junkie” producer Audiochuck to serve as the exclusive distribution and advertising sales partner for that show and others.
Fox is also seeing early momentum with its new direct-to-consumer streaming service Fox One, which launched over the summer. The service has “exceeded expectations,” Murdoch said, crediting strong weekend sports viewership. He described Fox One’s subscriber base as “additive” to the company’s overall customer numbers, with growth expectations in the “low to mid” range.
For the quarter ending September 30, Fox reported total revenue of $3.7 billion, surpassing Wall Street expectations. Adjusted earnings per share came in at $1.51. Advertising revenue, which remains a core component of Fox’s business, showed modest improvement across divisions. Television advertising revenue — including the Fox broadcast network and local stations — increased 6 percent to $1.07 billion, while cable network advertising rose 7 percent to $345 million.
Murdoch described the current environment as “the strongest advertising market we have seen,” though overall ad growth remained steady rather than robust.
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