F1 Loses Money, but Books $14.2B in Future Revenue

Formula One stands as one of the more contradictory entities in sports, as a rather downbeat earnings report contrasts with several positive indicators, including recent long-term race renewals, and significant optimism from its executives. 

F1 parent company Liberty Media said Wednesday that the motorsports circuit posted a 27% decline in revenue during 2025’s first quarter to $403 million while operating income swung from a prior $136 million profit to a $28 million loss. Part of the variance is owed to one less race in the quarter to start the 2025 season compared to last year, but F1 also saw a series of increased marketing, administrative, and personnel costs. 

Though not part of the fiscal quarter in question, F1 also saw a 32% year-over-year drop in U.S. viewership for last weekend’s Miami Grand Prix, ending a run of audience growth seen during each of the first five 2025 races. 

Those declines, however, stand against several recent deals, including a long-term extension for the Miami GP extending to 2041 and a similar renewal for the Mexico City Grand Prix to 2028, as race hosts continue to see long-term benefits in holding those races. F1 also has seen strong increases in fan engagement across multiple metrics, particularly social media. 

Overall, F1 says it now has $14.2 billion in future revenue contractually secured. 

“I’ve had the opportunity to spend some time with [F1 president and CEO] Stefano [Domenicali] over the last couple of races, and in speaking to both current sponsors, as well as potential sponsors, I don’t think I’ve been in a situation where I’ve seen this sort of energy and excitement around the possibilities to engage with the sport as with F1,” Liberty Media president and CEO Derek Chang said.

Bigger Questions

F1, meanwhile, continues to operate with two unresolved long-term issues: the state of its U.S. media rights, and whether Liberty Media will sell its controlling interest in the property.

On the former, F1 executives said they remain in “active and positive discussions with multiple partners.” An exclusive negotiating window for incumbent rights holder ESPN expired late last year.

“In a nutshell, I think our strategy will fit with the right partner that will be part of us developing the knowledge of our sport,” Domenicali said. 

On a potential sale, Liberty Media executives did not address recent rumors, particularly coming from the U.K., of a forthcoming process to market the company’s equity. Instead, they touted F1’s expected growth trajectory, as well as its current health amid broader economic unrest.

“Historically, Formula One’s business model has proven resilient in times of economic uncertainty,” Chang said. “We are encouraged by the strength of the business and look forward to completing the rest of an exciting season.”