Fox Corporation's Strategic Digital Growth and Shareholder Return Momentum Position It as a High-Conviction Media Buy

In an era where traditional media models are crumbling under the weight of cord-cutting and shifting consumer habits, Fox Corporation has emerged as a rare success story. By aggressively pivoting to digital-first strategies, expanding its ad-tech capabilities, and prioritizing shareholder returns, the company has not only weathered industry headwinds but also positioned itself as a leader in the streaming revolution. With 2025 EBITDA growth hitting 26% to $3.62 billion and a $5 billion share buyback program underscoring its confidence, Fox is proving that strategic reinvention and disciplined capital allocation can drive long-term value.

Digital Transformation: The Engine Behind EBITDA Growth

Fox's digital transformation is not a buzzword—it's a revenue-generating machine. The company's ad-supported streaming service, Tubi, has become a cornerstone of its strategy. With 100 million monthly active users and $330 million in Q3 2025 ad revenue, Tubi's freemium model taps into a younger, cordless audience while offering advertisers high-impact formats like Tubi Wrappers and Carousels. This platform alone contributed to a 26% year-over-year surge in advertising revenue, a critical driver of Fox's 26% EBITDA growth in 2025.

Complementing Tubi is Fox One, the company's direct-to-consumer (DTC) streaming service launched in August 2025. Priced at $19.99/month, Fox One bundles news, sports, and entertainment content—including the FOX News Channel, FOX Sports, and Caliente TV—into a single, AI-powered platform. By integrating live and on-demand content with personalized recommendations, Fox One is not just a competitor to traditional cable but a scalable, high-margin business. The service's sports betting partnerships (e.g., FanDuel) and regional sports rights (e.g., Premier League) further amplify its long-term potential.

EBITDA Expansion: A Testament to Operational Discipline

Fox's 2025 financial results are a masterclass in operational execution. The Television segment alone saw $9.33 billion in revenue, with advertising up 28% and affiliate fees rising 7%. This was fueled by high-margin digital content and events like Super Bowl LIX, which generated a 77% spike in Q3 advertising revenue. Meanwhile, the Cable Network Programming segment reported $3.03 billion in Adjusted EBITDA, driven by 21% ad revenue growth and a 39% surge in Fox Nation subscriptions.

The company's ability to balance growth with cost control is equally impressive. Reduced sports programming costs in Q4 (due to the absence of major international tournaments) and AI-driven content personalization have kept margins resilient. As a result, Fox's $3.62 billion in full-year Adjusted EBITDA reflects not just top-line momentum but a disciplined approach to capital efficiency.

Shareholder Returns: A Commitment to Value Creation

Fox's financial strength is matched by its aggressive capital return policies. In 2025, the company increased its share repurchase authorization by $5 billion, bringing the total to $12 billion, and raised its semi-annual dividend to $0.28 per share. These moves signal a clear commitment to rewarding shareholders, especially as the company's balance sheet remains robust with $5.35 billion in cash.

The buybacks are particularly compelling given Fox's current valuation. With a P/E ratio of 12.3x (as of August 2025) and a forward EBITDA yield of 10.5%, the stock offers a compelling risk-reward profile. Analysts project that the company's 13.84% CAGR in EPS through 2029 will further enhance shareholder value, even as revenue growth moderates to 2.24% annually.

Why This Is a High-Conviction Buy

Fox's strategic trifecta—digital innovation, EBITDA expansion, and capital discipline—creates a virtuous cycle of growth and returns. The company is not merely adapting to the streaming era; it is redefining it. Tubi's ad-tech edge, Fox One's DTC scalability, and the OneFox platform's unified ad-buying capabilities position the company to capture market share from both legacy players and new entrants.

For investors, the case is clear: Fox is a rare media stock with a clear path to sustainable growth. Its 2025 results demonstrate that digital transformation can be both profitable and scalable, while its buyback and dividend policies ensure that shareholders benefit from this momentum. As the media landscape continues to evolve, Fox's combination of innovation and operational rigor makes it a high-conviction buy for those seeking long-term value.

In conclusion, Fox Corporation is not just surviving in the digital age—it's thriving. With a robust pipeline of digital initiatives, a fortress balance sheet, and a management team that prioritizes shareholder returns, the company is poised to deliver outsized returns for investors who recognize its strategic advantages. For those willing to bet on the next phase of media evolution, Fox is a name worth watching—and buying.