Tubi Revenue Jumps 35% as Fox Sees 20% Margin at Greater Scale
Key Facts
Fox said revenue at its Tubi platform rose 35% year over year in the first fiscal quarter of 2027, while total viewing time increased 23%. Its chief executive said the platform could achieve a margin in the 20% range as it reaches greater scale. The company reported its quarter on November 2, 2026, for the three months ended September 30. The chief executive did not specify when that level might be reached, explicitly linking it to further maturation. The comments put Tubi’s path to profitability in the context of revenue growth and content consumption, without providing a timeline for the transition. Management said the platform’s growth continued into the current quarter and that its EBITDA increased year over year during the quarter.
Fox attributed viewer engagement on Tubi to the platform’s library and a dedicated World Cup hub, along with 10 new original titles and content from more than 600 creators. The platform’s revenue growth came amid a broader increase in the company’s advertising revenue, which rose 47% in the first fiscal quarter of 2027. Fox said the 2026 World Cup, higher political advertising and continued digital growth led by Tubi contributed to the increase. The platform’s performance was one driver of advertising growth, alongside sporting events and political spending. In the prior first fiscal quarter, advertising revenue had risen 6%, with continued momentum at Tubi contributing, while distribution revenue increased 3%.
At the company level, Fox’s net income in the first fiscal quarter of 2027 rose to $957 million, from $609 million in the year-earlier period. Net income attributable to company shareholders was $943 million, or $2.20 a share, compared with $599 million, or $1.32 a share, a year earlier. Chairman and Chief Executive Lachlan Murdoch said the company posted first-quarter records for revenue and adjusted EBITDA, supported by strong growth in advertising and distribution. Distribution revenue rose 9%, while cable distribution revenue increased 10%, driven by higher pricing, improved subscriber trends and a contribution from FOX One. The revenue gains were partly offset by higher costs for sports programming rights and production, which were tied to the World Cup, as well as higher digital content costs.
On a track separate from Tubi’s growth, the chief executive said about 97% of new FOX One subscribers do not have a cable subscription. He added that additions to the service helped offset traditional subscriber declines during the quarter. He described these new subscribers as additions that were almost entirely outside the company’s existing base. But he warned that the FOX One subscriber base would be seasonal as sports seasons change, and said it may not always offset losses in the traditional distribution ecosystem. The 97% figure applies to new FOX One subscribers and does not describe Tubi users or its subscriber base.
The first fiscal quarter’s advertising results compare with the prior-year base, when Fox reported advertising revenue up 6% and distribution revenue up 3% year over year, with Tubi’s digital growth contributing to advertising. In the latest quarter, distribution revenue rose 9% and cable distribution revenue increased 10%, alongside a 47% jump in advertising revenue. The company linked cable distribution growth to higher pricing, improved subscriber trends and a contribution from FOX One, while it attributed advertising growth to the World Cup, political advertising and digital growth led by Tubi. Murdoch said Fox had started fiscal 2027 strongly, with first-quarter records for revenue and adjusted EBITDA. The company’s annual shareholder meeting is scheduled for November 4, 2026.