Formula 1 recorded a sharp year-on-year revenue decline during the second quarter of 2026, but Liberty Media has attributed the fall primarily to the structure of the race calendar rather than weakening interest in the championship. Revenue between April and June dropped 38% to $764 million as Formula 1 staged significantly fewer Grands Prix than during the equivalent period in 2025.
The headline financial numbers were substantial. Operating profit stood at $73 million, while Adjusted OIBDA fell 61% to $139 million. However, Liberty Media stressed that the comparison is heavily influenced by when races took place, because Formula 1 derives significant revenue from promoter fees, broadcasting rights, sponsorship, hospitality and other activities connected directly to Grand Prix weekends.
Why Formula 1 revenue fell 38% in the second quarter
The biggest difference between the two reporting periods was the number of races. Formula 1 held only five Grands Prix during the second quarter of 2026, compared with nine between April and June 2025. With four fewer race weekends generating associated income, the year-on-year decline was therefore significantly amplified by the calendar rather than reflecting a comparable reduction in underlying demand.
The same effect remains visible when the reporting period is extended across the first half of the year. Eight races were held during the opening six months of 2026, compared with 11 during the corresponding period in 2025. Formula 1 consequently generated $1.381 billion in first-half revenue, a 15% year-on-year decrease.
Liberty Media highlighted the unusual shape of the 2026 Formula 1 calendar as a central factor behind those comparisons. The Bahrain Grand Prix was postponed and is due to be rescheduled in Malaysia in October, taking the championship from 22 to 23 rounds. The 2026 season also contains one fewer event than 2025, changing how both revenue and costs are distributed between individual quarters.
That distinction is particularly important when examining Formula 1’s financial performance. A quarter containing fewer races will naturally recognise less race-related revenue, while another part of the year can benefit when those events are concentrated later in the schedule. The quarterly numbers therefore do not necessarily provide a direct measure of whether the championship itself is becoming more or less commercially attractive.
Fewer races were not the only reason for the decline
The reduced Grand Prix count affected several of Formula 1’s major income streams. Liberty Media identified lower promoter revenue, broadcasting-rights income and sponsorship revenue during the quarter, alongside declines in hospitality and freight-related revenue because fewer events were held.
There was also an exceptional comparison with 2025. The second quarter of last year benefited from one-off revenue connected with the release of the official Formula 1 film. No equivalent contribution was present during the second quarter of 2026, making the year-on-year decline appear larger.
The film has become part of Formula 1’s wider relationship with Apple, which has subsequently expanded into the championship’s broadcasting strategy. The company has also outlined plans for Formula 1 coverage through Apple, adding another dimension to the sport’s efforts to reach audiences beyond traditional television platforms.
Liberty Media says Formula 1 demand remains strong
Despite the financial decline, Liberty Media maintained that Formula 1’s broader trajectory remains positive. Derek Chang emphasised that demand for the company’s brands continued to be strong and resilient, while Formula 1 was still extending its reach and increasing fan engagement. In his assessment, those trends continued to support considerable commercial momentum.
That argument is consistent with Formula 1’s wider expansion in recent years, during which the championship’s global fan base has continued to grow. The second-quarter financial decline is therefore being presented as a consequence of the timing and number of events rather than evidence of a reversal in audience interest.
Formula 1 President and CEO Stefano Domenicali also pointed to positive indicators from the 2026 season. He explained that the championship had produced competitive racing while attracting increasing spectator engagement. Attendance, television audiences and digital impressions had all grown since the start of the campaign, while the partnership with Apple had continued to produce positive results.
According to Stefano Domenicali, total viewing hours had risen by 13%. That increase is particularly significant within the context of a financial report showing lower quarterly revenue, because it reinforces Liberty Media’s argument that the drop in earnings cannot simply be interpreted as declining Formula 1 popularity.
Las Vegas, Pirelli and ServusTV deals strengthen F1’s commercial outlook
Liberty Media also highlighted several commercial agreements completed alongside the changing financial picture. The Las Vegas Grand Prix contract has been renewed through 2037, giving Formula 1 a long-term commitment for one of its United States events.
The championship has also extended its partnership with Pirelli until 2028 and secured a new multi-year broadcasting agreement with ServusTV in Austria. The Austrian broadcaster already forms part of the country’s Formula 1 television landscape, making the new agreement another component of the championship’s longer-term media strategy.
Those agreements add to the commercial strength that has helped increase the value of Formula 1’s wider ecosystem, with F1 team valuations also reflecting the sport’s financial growth in recent years.
Liberty Media’s second-quarter figures consequently present two very different pictures depending on how they are viewed. Taken alone, a 38% revenue decline and a 61% fall in Adjusted OIBDA represent dramatic year-on-year changes. Once the substantially lower number of races, the altered 2026 calendar and the absence of the previous year’s Formula 1 film revenue are taken into account, however, the company’s explanation is that the results reflect the timing of commercial activity rather than a loss of momentum for the championship.
With additional races falling later in the season and Formula 1 continuing to report growth in attendance, viewing and digital engagement, the full-year figures will provide a clearer indication of the championship’s underlying financial performance than the unusually race-light second quarter alone.
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