tapebrief

NWS · Q4 2025 Earnings

Bullish

News Corp (Class B)

Reported August 5, 2025

30-second summary

Revenue of $2.11B grew just 1% YoY as Book Publishing and News Media each fell 4%, but Dow Jones (+7%) and Digital Real Estate (+4%) drove segment EBITDA to $322M at a 15.3% margin — and management said 94% of profits now come from those two pillars. The Foxtel divestiture closed, ~$380M of Foxtel shareholder loan repayments are coming, and management explicitly flagged that buyback "scale and pace" are stepping up in the coming weeks. The story is no longer the conglomerate — it's the two-segment compounder hidden inside it.

Headline numbers

EPS

Q4 FY2025

$0.19

Revenue

Q4 FY2025

$2.11B

+1.0% YoY

Key financials

Q4 FY2025
MetricQ4 FY2025YoY
Revenue$2.11B+1.0%
EPS$0.19

Guidance

Prior quarter data unavailable — comparison not possible.

Segment performance

Q4 FY2025
SegmentQ4 FY2025YoY
Dow Jones$0.604B+7.0%
Digital Real Estate Services$0.466B+4.0%
Book Publishing$0.494B-4.0%
News Media$0.545B-4.0%
REA Group$0.318B+7.0%
Move$0.148B+3.0%

Platform metrics

Q4 FY2025
SegmentQ4 FY2025
Dow Jones Digital Revenue %83%
Wall Street Journal Total Subscriptions4.538 million
Wall Street Journal Digital-Only Subscriptions4.126 million
Dow Jones Consumer Digital-Only Subscriptions5.719 million
Realtor.com Monthly Unique Users72 million
News Corp Australia Digital Subscribers1.166 million

Profitability

Q4 FY2025
SegmentQ4 FY2025
Total Segment EBITDA$322 million
Total Segment EBITDA Margin15.3%

Management tone

Portfolio simplification, finally executed. For years the Foxtel question hung over every News Corp earnings call as an open strategic loop. This quarter it closed — Foxtel was sold to DAZN, ~$380M of Foxtel shareholder loan repayments are coming, and management is redirecting capital toward buybacks. CEO Thomson: "This quarter, 94% of profits were from Dow Jones and digital real estate, which we believe underscores the inherent value discount." The framing has moved from "we own diversified media assets" to "we own two high-margin compounders and some legacy."

IP rights as a combative platform, not a defensive footnote. AI-related content licensing has been a recurring topic on these calls, but typically in legal/process language. This quarter the language sharpened to ideological: "we will fight to protect the intellectual property of our authors and journalists and continue to woo and to sue companies that violate the most basic property rights." The shift from "woo" to "sue" — used in the same breath — signals that management views the OpenAI deal template as leverage, not a one-off, and is willing to litigate to set pricing power for content licensing.

Realtor reframed from drag to coiled spring. Move revenue grew only 3%, lead volumes are still down 13%, and the US housing market remains punitive. But management's framing flipped from "headwind" to "stored energy": "Realtor should thrive when the US housing market ultimately nears normalcy after a period of punitively high mortgage rates and remarkably low turnover." The supporting evidence — adjacencies at 24% of revenue and growing 40%, segment margin up 250bps — is real, not just rhetoric. The implicit pitch is that Realtor is now structurally profitable before the rate cycle turns.

Capital return moved from talking point to commitment. Management was unusually specific in Q&A about buyback acceleration: scale and pace "increasing in the coming weeks," Foxtel proceeds explicitly earmarked, balance sheet described as "extremely conservative." The repeated emphasis on the discount to NAV — "we believe the stock is trading at a significant discount to net asset value" — combined with confirmed cash inflows reads as a signal that the buyback pace investors saw in FY2025 was a floor, not a ceiling.

Recurring themes management leaned on this quarter:

Record profitability and margin expansion on continuing operations basisDigital revenue acceleration across all segments (Dow Jones 83% digital, circulation 75% digital)IP protection and content creator compensation in AI agePortfolio streamlining and capital return acceleration via buybacksGrowth adjacencies driving resilience (Realtor new homes/rentals/seller at 24% of revenue)Professional information services as margin driver and growth engine

Risks management surfaced:

Challenging macroeconomic environment and soft advertising conditionsBook publishing market softness in recent monthsAustralian residential new-buy listings decline (down 8% in July)Factiva customer dispute and negative impact on revenuesRealtor lead volumes declining (down 13% YoY, though improving vs Q3's 17% decline)

Q&A highlights

David Karnofsky · JP Morgan

Asked about acceleration of share buyback program, quarterly repurchase activity levels, Foxtel debt paydown proceeds allocation, and target leverage ratio going forward.

Management confirmed buyback scale and pace are increasing in coming weeks, driven by improved free cash flow and belief in significant discount between share price and NAV. Foxtel sale proceeds will benefit fiscal 2026 pacing. No target leverage ratio provided; balance sheet described as extremely conservative.

Buyback scale and pace increasing in coming weeksFoxtel sale proceeds will benefit fiscal 2026 buyback pacingBalance sheet characterized as extremely conservativeNo specific leverage target provided

Ensha Rakofsky · Evans and Partners

Asked about Dow Jones accelerating revenue growth (6% in 2H vs 3% in 1H), whether second-half trajectory will continue into fiscal 2026, primary drivers, and corresponding OPEX growth requirements.

Management expects growth to continue driven by professional information business (39% of revenues, ~50% of profits) and expansion in risk and compliance (21% Q4 growth) and energy (12% growth). OPEX cost growth was mid-single digits in second half; margins expanded from 24.2% to 25% in last quarter, benefiting from higher-margin professional information services mix.

Professional information business: 39% of revenues, ~50% of profitsRisk and compliance revenue growth: 21% in Q4Dow Jones energy revenue growth: 12%OPEX growth: mid-single digits in 2H

Kane Hennon · Goldman Sachs

Asked about Realtor.com strategy, growth in adjacencies (rentals, new homes, seller), trajectory relative to current 24% contribution, and whether fiscal 2026 represents another investment year.

Management expressed optimism about Realtor.com despite sluggish property market. Three growth segments (rentals, new homes, seller) accounted for 24% of revenues (up 5 points), with overall revenues up ~40% year-over-year. Continued investment planned including Zenlist acquisition integration. Real estate margin improved to 32.6% in Q4 from 30.1% year-ago.

Rentals, new homes, seller segments: 24% of revenues, up 5 pointsOverall growth in three segments: ~40% year-over-year256 million site visits in June (ComScore)Real estate margin: 32.6% in Q4 vs 30.1% in prior year Q4

Craig Huber · Huber Research

Asked about further company simplification, any strategic moves in conjunction with simplification, and signs of U.S. housing market improvement to benefit Realtor.com.

Management characterized Foxtel sale as simplification reflecting realistic capital allocation. Stated Realtor.com poised to surge when interest rates decline and property market improves. Noted continued institutional introspection and constant evaluation of company trajectory to help investors appreciate portfolio value. Focused on capital returns via dividend and enhanced buyback.

Foxtel sale characterized as simplificationRealtor.com positioned to surge when interest rates declineFocus on capital returns: dividend and enhanced buybackContinuous strategic contemplation ongoing

David Joyce · Seaport Research

Asked what is driving strong Wall Street Journal subscription growth (digital and total) and what actions can sustain this growth.

Management attributed growth to unique excellence and content quality of WSJ as trusted source. Cited 9% digital subscription growth and 10% digital revenue growth. Referenced new LSEG partnership providing custom dashboard with WSJ, Barron's, MarketWatch, and IBD content with higher margins due to lower acquisition, churn, and retention costs.

Digital subscriptions growth: 9%Digital revenue growth: 10%New LSEG partnership with custom dashboard launchedLSEG partnership driven by lower acquisition costs, lower churn, lower retention costs

What to watch into next quarter

Buyback pace — management telegraphed acceleration "in the coming weeks." Watch the Q1 FY2026 repurchase disclosure; anything materially above the FY2025 run-rate validates the capital-return pivot. Anything in-line or below would undercut the most concrete commitment made on this call.

Dow Jones segment EBITDA margin — held at 25.0% in Q4 vs. 24.2% prior. Watch whether the mix shift to professional information sustains margin expansion above 25% in Q1 FY2026, or whether OPEX catches up.

Realtor lead volume trajectory — down 13% in Q4, improved from -17% in Q3. Watch whether the sequential improvement continues into Q1 FY2026 (i.e. lead decline narrows to single digits) or stalls. This is the leading indicator for the housing-normalization thesis.

Australian residential listings — management flagged July new-buy listings down 8%. Watch whether REA Group revenue growth holds the +7% pace seen in Q4 despite the listings headwind, which would confirm pricing-power resilience.

Book Publishing recovery — management flagged July softness but cited a stronger FY2026 release slate (Daniel Silva, Ree Drummond). Watch whether segment revenue returns to growth by Q2 FY2026; persistent -4% would suggest structural rather than cyclical pressure.

Sources

  1. News Corp Q4 FY2025 press release, filed with SEC: https://www.sec.gov/Archives/edgar/data/1564708/000156470825000416/release-q4fy2025.htm
  2. Q4 FY2025 earnings call commentary (management remarks and Q&A excerpts as referenced)

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