Formula One Beats Q3 Estimates; Malone Loses Super Vote
Formula One Group beat Q3 2026 estimates with $4.50 billion in trailing revenue, up 13.7% year-over-year, drawing analyst upgrades from BofA and TD Cowen on November 5. The same day, Liberty Media fil
Formula One Q3 Beats Estimates; Malone Loses Super Vote
NEW YORK, November 12 —
Formula One Group (FWONK) posted Q3 2026 earnings on November 5 to analyst applause, with BofA and TD Cowen raising price targets, while Liberty Media simultaneously filed a governance restructuring that stripped John Malone of his super-voting advantage. Whether those dual moves signal confidence in F1's standalone trajectory or introduce ownership uncertainty at exactly the wrong moment is the question.
- TTM revenue $4.50 billion, up 13.7% year-over-year; free cash flow $620 million on $1.14 billion operating cash flow.
- FWONK at $109.91, 10% below the $122.35 analyst consensus target; 59.9x forward P/E.
- Liberty Media filed a separate governance 8-K on November 5, eliminating super-voting shares and amending its charter.
The Day BofA Upgraded and Malone Lost His Vote
Liberty Media's second 8-K on November 5, separate from the earnings filing, spans seven disclosure categories: new and terminated material agreements, unregistered equity sales, material modification to security holder rights, director and officer changes, charter amendments, and a Regulation FD disclosure. Bloomberg reported the core move as the elimination of super-voting shares, diluting Malone's controlling power. BofA raised its price target, citing 'solid results' per published reports; TD Cowen followed within two days. That two large broker shops upgraded on precisely the day Liberty dismantled its founding voting architecture is either institutional confidence or one of its stranger coincidences.
The Commercial Engine Behind the Multiple
Formula One Group holds the commercial rights to the FIA Formula One World Championship, earning $4.50 billion in trailing revenue from global television production, the Paddock Club hospitality program, the F2 and F3 feeder series, freight and logistics at race events, and digital and social media activities. The 13.7% revenue growth reflects genuine commercial momentum: trackside sales at the U.S. Grand Prix in Austin grew more than 177% from F1's first pop-up there in 2023 through 2026, with a 19% year-over-year surge in 2026 alone. CrowdStrike CEO George Kurtz paid $300 million for a minority stake in the Mercedes team. The American audience is arriving.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| FWONK | $27.9B | 59.8x | +10.4% |
| FWONA | $26.7B | 41.3x | +15.6% |
| BATRK | $3.4B | n/a | +35.5% |
| BATRA | $3.7B | n/a | +36.1% |
| LILAK | $1.8B | 23.9x | +84.9% |
| LILA | $1.8B | 64.8x | +87.0% |
The Governance Premium Nobody Priced
A 59.9x forward P/E demands consistent execution from a business whose recent earnings have swung from a 280.7% beat to a 93.1% miss in consecutive quarters, a range that makes any DCF calculation sensitive to growth assumptions. The November 5 governance overhaul, covering new agreements, terminated agreements, director changes, and charter amendments, introduces questions about F1's strategic direction that Q4 earnings alone will not resolve. At $109.91, the stock sits 10% below the $122.35 analyst consensus; that gap narrows only if revenue trajectory holds and the ownership restructuring yields a credible strategic rationale rather than unsettling ambiguity. Run the free Formula One Group deep-dive to track how both develop.
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Frequently Asked Questions
Did Formula One Group beat Q3 2026 earnings estimates?
Yes. Formula One posted $4.50 billion in trailing revenue, up 13.7% year-over-year, with free cash flow of $620 million on $1.14 billion operating cash flow. The earnings drew analyst applause, with BofA and TD Cowen raising their price targets.
How did John Malone lose his super-voting power?
Liberty Media filed a governance restructuring on November 5 that eliminated super-voting shares, stripping founder John Malone of his controlling power. The governance overhaul covered new agreements, terminated agreements, director changes, and charter amendments.
What is Formula One Group's business model?
Formula One Group holds the commercial rights to the FIA Formula One World Championship and earns revenue from global television production, the Paddock Club hospitality program, the F2 and F3 feeder series, freight and logistics at race events, and digital and social media activities.
How much has Formula One's U.S. audience grown?
Trackside sales at the U.S. Grand Prix in Austin grew 177% from F1's first pop-up there in 2023 through 2026, with a 19% year-over-year surge in 2026 alone. CrowdStrike CEO George Kurtz also paid $300 million for a minority stake in the Mercedes team.
Why is FWONK stock below analyst consensus targets?
At $109.91, the stock sits 10% below the $122.35 analyst consensus target on a 59.9x forward P/E. The high multiple reflects earnings that have swung from a 280.7% beat to a 93.1% miss in consecutive quarters, making growth assumptions sensitive and raising questions about the governance overhaul's strategic direction.
Formula One Group (FWONK) reported Q3 2026 earnings on November 5, with BofA and TD Cowen responding by raising price targets on 'solid results' — but Liberty Media used the same day to execute a sweeping governance restructuring that eliminated super-voting shares and stripped John Malone of his controlling voting advantage. Investors are now weighing whether the dual announcements signal a company confident enough in its own trajectory to remove the founder's protective grip, or whether the structural change introduces ownership uncertainty at the precise moment F1's growth story is gaining analyst credibility.