F1 reveals distorted 61% income loss in latest earnings report

Formula 1’s revenue in the second quarter of 2026 dropped 38% compared with 12 months ago, with operating income down 61%, as the loss of four races hit its bottom line.

As F1 owner Liberty Media published its second quarter earnings report on Thursday, the figures showed significant reductions compared to 2025.

Its revenue between April and June dropped from $1.22 billion in 2025 to $764 million this year, with its operating income falling from $293 to $73 million.

Its overall adjusted OIBDA figures (Operating income before depreciation and amortization) fell from $361 million to $139 million.

But the Q2 figures are heavily distorted by the way the 2026 calendar has played out – with only five races taking place in the second quarter this year compared to nine in 2025.

This has been caused by both some date shuffling since last year and the tensions in the Middle East prompting the Bahrain and Saudi Arabian Grands Prix to be called off.

The Japanese GP shifted earlier into March (so counted in the first quarter this time around), the two Middle East races did not happen, while Imola fell off the calendar.

It means that there has been a 44% decline in the number of races for the second quarter of this year, and a 27% decline in the total for the first half of the year, with the number dropping from 11 to 8.

So a 38% drop in total motorsport revenue over Q1, and a 15% fall over the first six months of 2026 as a result is no cause for huge alarm.

With F1 having agreed to get the Bahrain GP back on the calendar, albeit taking place in Malaysia in October, the second half of the year should get F1's finances back on a more even keel so it ends the year in a decent position.

The third quarter will feature seven races this year, including the Spanish Grand Prix in Madrid, versus six in 2025, while the final quarter, should the Qatar and Abu Dhabi Grands Prix take place, will have eight races compared to seven last year.

If those final two races have to be called off, then F1 CEO Stefano Domenicali has talked of the season finishing in Europe, with Imola remaining the lead contender for the finale in December.

This should ensure F1 has either 22 or 23 races this year, so minimising the financial hit from the Middle East situation.

The reduction in F1’s income through the loss of races has also hit team payments, with Liberty reporting that the current grid shared $316 million in the last quarter compared to $513 million in Q2 last year. 

Over the first half of 2026, teams have been paid $500 million compared to $627 million in 2025.

Calendar full but more sprints coming

While F1’s target is to increase revenues in the future, the option for more races is not on the cards in the short term with Domenicali saying that the calendar is now full until 2028.

However, sights are set on increasing the number of sprint races from next year.

Race promoters are willing to spend more on hosting sprints because they help drive increased attendances – especially on Fridays and Saturdays.

Domenicali said during an investors call on Thursday: “We are going to have more sprint races next year, and we will inform when we announce the [2027] calendar how many.

“The principle is simple. This is an opportunity to increment the revenue stream that we can really leverage from a commercial point of view.”

Domenicali has ruled out them being at every grand prix, though, as it's important for there to remain a “scarcity” element to them.

“If commercially we would go everywhere, that’s not any more a value that we can really produce from the commercial point of view,” he added.

“But definitely we’re going to move further up in terms of what the number is in the future. That’s 1,000 per cent what will happen already next year."

More licensing and premium experiences

While F1 has attracted a younger and more female audience, and has boasted of a 13% increase in total hours watched in the US after the switch to AppleTV, Domenicali has talked of a push for more premium products at races to help drive income.

With F1’s Paddock Club hospitality offering sold out for this year, and team allocations already confirmed for 2027, the aim is to seek new opportunities outside this for high-end customers.

Domenicali said that “experiential opportunity is where we are focusing our future” with the aim to have more “money cannot buy” events.

An example includes the Outlap – a luxury dinner experience put on in conjunction with LVMH that allows 12 guests to enjoy a premium dinner in a bespoke container that is driven around the track.

It was launched at the Belgian Grand Prix and is being  rolled out at other European venues next year, with a price tag of more than 10,000 Euros per head.

Domenicali also see growth opportunities from more licencing deals and the renewal of several current contracts.

He has, however, ruled out an official single AI partner for F1.

“We will never give it to anyone or a single partner that area because it’s too big,” he said. “Our ability to divide that area of business is creating for us a lot of opportunities.”