- Operating income fell 75% YoY to US$73m in 2026
- Last year’s Q2 figures boosted by revenue from Apple’s F1 movie
- F1 also staged four fewer races in the period compared to last year
Formula One’s second quarter revenues fell by US$462 million during 2026, a 38 per cent decrease from the US$764 million it posted during the same three month period last year.
The drop was even more pronounced when looking at the series’ operating income in the same period, which fell 75 per cent YoY to US$73 million.
But not everything is as it seems. It would be disingenuous to suggest Formula One isn’t bothered by a decline of almost half a billion dollars – far from it. But this isn’t a case of market slowdown for a sport that has enjoyed considerable growth in the past decade and believes it still has plenty of untapped potential in the near future.
Indeed, there are several mitigating factors as to why this drop isn’t a long-term cause for concern.
1. Calendar shifts outside of F1’s control
Formula One revenue in each quarter is closely tied to the number of races held in that period. Ultimately, the championship only staged five races in Q2 2026 compared to nine last year due to cancellations enforced by conflict in the Middle East. The knock-on effect is clear to see.
Exacerbating the situation was that Formula One’s contracts to race in the Middle East are amongst the most lucrative in the series. So the loss of both Saudi Arabia and Bahrain was particularly noticeable in the accounts. An analyst report released by Guggenheim in March, Formula One may have lost up to US$200 million due to the loss of the two races, so the agreement to revive the Bahrain Grand Prix in Malaysia will represent a welcome addition to Q4.
It remains to be seen whether Formula One’s planned visits to Qatar and Abu Dhabi will go ahead, but the current geopolitical uncertainty in the region suggests these races are unlikely. The ongoing conflict in the Middle East has also disrupted other motorsport series, as the World Endurance Championship (WEC) has already moved its final two races of the season in Bahrain and Qatar to Spain and Italy.
MotoGP has also refused to rule out moving its visit to Qatar if the disruption continues. A decision from Formula One would come by the middle of September and Formula One chief executive Stefano Domenicali has already confirmed that contingency plans are in place. A potential destination has not been revealed but a European season finale looks probable.
2. The underlying numbers
It should also be noted that last year’s Q2 results were anomalously high. The graph above clearly shows how out of step last year’s revenue was compared to expectations.
Media rights revenue in last year’s three month period benefited from the release of the F1 movie starring Brad Pitt, which generated over US$550 million at the global box office. While it is unclear how much of that total went to Liberty Media, the company’s chief accounting officer Brian Wendling said on an earnings call at the time that the figure was in the “mid-teens”.
While we wait for Apple to green-light a sequel, the streaming platform is providing Formula One with more favourable media rights terms this year after replacing ESPN as the series’ exclusive broadcaster in the US. Worth a reported US$150 million per season, the series should be receiving nearly double the incremental value of the previous linear deal.
There were also some inconspicuous gains made in both hospitality and licensing revenue, which represent key areas of growth for the modern era of Formula One. Plus, the Grand Prix Plaza in Las Vegas now being open year-round is beginning to have a positive impact on the series’ bottom line.
3. Long-term contracts continue to futureproof the sport
While not the most commercially active period the sport has ever seen, the ten-year extension agreed with Las Vegas to continue racing on the streets of Sin City is particularly notable.
In reality, the contract was extension was little more than a rubber-stamping exercise following the level of investment that Formula One has poured into the event, but the certainty around the race’s future will give greater confidence to brands looking to make long-term commitments.
Even before the extension was announced, Caesars Entertainment and T-Mobile agreed deals beyond the original conclusion of the contract, so the expectation is that more brands will now follow.
Formula One also agreed a contract extension with tyre supplier Pirelli, although this was merely the activation of a one-year option within the contract signed in 2023.
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