Fox hits $17 billion revenue as Tubi reaches 110 million users
Fox Corporation reported record fiscal 2026 revenue of $17 billion and record EBITDA of $3.9 billion, bolstered by significant advertising growth and the profitability of its streaming service, Tubi. The company is positioning itself for a connected TV-focused future through the planned acquisition of Roku and the growth of its FOX One direct-to-consumer platform.
Key Takeaways
- Fiscal 2026 adjusted EBITDA reached a record $3.9 billion, an 8% increase supported by higher operating leverage.
- Tubi achieved EBITDA profitability in every quarter of the fiscal year, with Q4 revenue growing 35%.
- Digital investment was reduced to under $200 million in 2026, down from nearly $300 million in fiscal 2025.
- The FOX One direct-to-consumer platform reported minimal traditional pay-TV cannibalization and strong retention since its launch.
- Fox expects to close its $22 billion acquisition of Roku in the first half of calendar 2027.
Why It Matters
The results demonstrate that Fox has successfully decoupled its digital growth from the heavy losses typical of legacy media streaming pivots. By keeping Tubi profitable while scaling to 110 million users, Fox has built a high-margin advertising engine that complements its live sports and news core. This operational stability provides the necessary air cover for the upcoming $22 billion Roku integration, which aims to consolidate the full ad tech stack and distribution layer. The minimal cannibalization from FOX One suggests Fox may have found a viable path to transition cord-cutters into a high-ARPU direct-to-consumer environment without eroding its remaining linear affiliate fees. Industry observers should track Q1 2027 political ad spend as a signal for Tubi's local market capture.
Additional Context
The strategic importance of Fox's digital expansion is underscored by the planned $22 billion acquisition of Roku, which was first announced in June 2026. According to reporting from Forbes and analyst firm Madison and Wall in June 2026, a combined Fox-Roku entity would command approximately 14% of all U.S. television advertising spend. This would position the company as the third-largest player in the domestic TV landscape by viewing share, trailing only YouTube and Disney. Analysts at Rothschild Redburn noted in July 2026 that the deal represents a transition from a content-only provider to a 'full-stack' connected TV platform, though the move involves roughly $12 billion in bridge financing. To support this platform shift, Fox launched its FOX One direct-to-consumer service in August 2025 at a price point of $19.99 per month. Per Mashable and company statements from that period, the service was designed to aggregate the entire Fox portfolio—including local stations, FS1, and Fox News—specifically for the 'cord-never' audience. The service launched alongside a coordinated bundle with ESPN's direct-to-consumer app, priced at $39.99 per month, signaling an early focus on sports-centric aggregation to drive subscriber acquisition. These moves collectively aim to future-proof Fox's revenue ahead of the 2027 Roku integration, which executives confirmed remains on track despite regulatory scrutiny.
Read full article at tipranks.com
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