Financial Data and Key Metrics Changes - Revenues increased by 6% to $2.4 billion for the quarter, with total segment EBITDA expanding by 9% to $521 million, despite a one-time inventory-related charge at HarperCollins [4][20] - Net income from continuing operations was $242 million, a 21% decrease from the prior year, primarily due to the absence of a favorable $87 million gain from the sale of PropertyGuru [4][21] - Adjusted EPS for the quarter was $0.40, compared to $0.33 in the prior quarter, with profitability margin rising from 21.4% to 22.1% [4][20] Business Line Data and Key Metrics Changes - **Dow Jones**: Revenues rose by 8% to $648 million, with digital revenues accounting for 82% of segment revenues. Segment EBITDA grew by 10% to $191 million, achieving a profit margin of 29.5% [21][25] - **Digital Real Estate Services**: Revenues increased by 8% to $511 million, with segment EBITDA up 11% to $206 million. Realtor.com revenues grew by 10% to $143 million, driven by premium products and improved lead volume [11][26] - **Book Publishing**: Revenues grew by 6% to $633 million, although segment EBITDA declined by 2% to $99 million due to a one-time write-off related to inventory [29][31] Market Data and Key Metrics Changes - In Australia, REA revenues grew by 7%, benefiting from double-digit yield growth and improved listing volumes in major cities [12][26] - Digital advertising revenue at Dow Jones reached a record $87 million, rising by 12%, particularly supported by demand from the financial services sector [8][25] - The Times and The Sunday Times in the UK saw digital subscribers rise by 7% to 659,000, while News Corp Australia reached nearly 1.2 million total subscribers, surpassing the prior year by 4% [14][15] Company Strategy and Development Direction - The company is focused on transforming into a digital-first entity, increasing recurring revenues, and reducing dependence on advertising [5][19] - There is a strong emphasis on operational efficiency and disciplined investment in core growth pillars: Dow Jones, Digital Real Estate, and Book Publishing, which collectively accounted for 95% of profitability [18][19] - The company is actively pursuing AI partnerships and content licensing opportunities to enhance revenue streams [10][41] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of the fiscal year, citing strong cash flow and a robust balance sheet [5][16] - The evolving impact of AI on the industry was discussed, with management confident in the value of proprietary content and the company's ability to monetize it [6][36] - The outlook for Dow Jones remains positive, with expectations of continued strong revenue growth in B2B segments [32] Other Important Information - The company repurchased $172 million in shares during the quarter, significantly higher than the previous year, and plans to continue this trend [20][51] - The launch of the California Post was highlighted as a strategic move to enhance the company's media presence [16] Q&A Session Summary Question: Market reaction to AI and its implications for business services - Management clarified that AI's impact is often misunderstood, emphasizing the value of proprietary content and the company's strategy to monetize it through partnerships and legal actions against unauthorized use [35][36] Question: Investment in Dow Jones and CapEx related to AI - Management expressed confidence in the Dow Jones Professional Information business and indicated that CapEx for Dow Jones would be modestly down this year, while overall free cash flow growth is expected to remain strong [40][42] Question: M&A strategy and areas of interest - Management stated that they are continuously looking for sensible investments but will prioritize organic growth and share buybacks at reasonable prices [49][50] Question: Simplifying the company structure and competition from Homes.com - Management noted ongoing evaluations of the company structure to enhance shareholder value and expressed confidence in Realtor.com's growth trajectory despite competition [54][56] Question: Subscription revenue growth and pricing strategy at Dow Jones - Management highlighted successful increases in enterprise customers and the potential for price elasticity, while also noting improvements in ARPU excluding enterprise customers [63][66]

Group 1 - The media company's CEO indicated there are 'favorable signs' for the second half of its fiscal year [1]

Revenue Growth - Revenues for the second quarter increased 6% to $2.36 billion compared to $2.24 billion in the prior year, driven by growth in Dow Jones, Digital Real Estate Services, and Book Publishing segments[10]. - Total revenues for the three months ended December 31, 2025, were $2,362 million, an increase from $2,238 million in the prior year, representing a growth of 5.5%[45]. - Total Segment EBITDA for the quarter was $521 million, a 9% increase from $478 million in the prior year, supported by strong contributions from Digital Real Estate Services and Dow Jones segments[12]. - Adjusted revenues for the six months ended December 31, 2025, were $4,323 million, reflecting a $172 million increase from $4,334 million in 2024[61]. - Adjusted total revenues for Q2 2025 reached $2,311 million, a 3% increase from $2,233 million in Q2 2024[64]. - Total current assets as of December 31, 2025, were $4,573 million, a decrease from $4,811 million as of June 30, 2025[48]. Net Income and Earnings - Net income from continuing operations decreased 21% to $242 million, down from $306 million in the prior year, primarily due to the absence of a prior year gain from the sale of PropertyGuru[11]. - Net income attributable to News Corporation stockholders for the three months ended December 31, 2025, was $193 million, down from $215 million in the prior year, a decrease of 10.2%[45]. - Net income from continuing operations for the six months ended December 31, 2025, was $392 million, a decrease of 14% compared to $455 million in 2024[55]. - Adjusted net income for Q2 Fiscal 2026 was $227 million, representing a 20% increase compared to $189 million in Q2 Fiscal 2025[70]. - Adjusted net income for the six months ended December 31, 2025, was $349 million, compared to $306 million for the same period in 2024, reflecting a 14% increase[70]. Segment Performance - Dow Jones revenues grew 8% to $648 million, with a notable 20% increase in Risk & Compliance revenues, and digital revenues accounted for 82% of total revenues[16]. - Digital Real Estate Services revenues increased 8% to $511 million, with Move's revenues rising 10% to $143 million, driven by premium offerings and audience share gains[21]. - Book Publishing revenues rose 6% to $633 million, aided by recent acquisitions and strong frontlist titles, despite a $16 million one-time write-off related to inventory[24]. - Digital revenues represented 43% of News Media segment revenues, up from 39% in the prior year, indicating a shift towards digital subscriptions and advertising[30]. - Dow Jones segment adjusted revenues increased by 6% to $637 million in Q2 2025, compared to $600 million in Q2 2024[64]. - Digital Real Estate Services segment adjusted revenues rose by 7% to $506 million in Q2 2025, up from $471 million in Q2 2024[64]. Cash Flow and Expenses - Free cash flow for the six months ended December 31, 2025, was $136 million, up from $121 million in the prior year, primarily due to higher cash provided by operating activities[31]. - Operating expenses for the three months ended December 31, 2025, were $1,008 million, compared to $963 million in the prior year, an increase of 4.7%[45]. - The company reported a net cash provided by operating activities from continuing operations of $316 million for the six months ended December 31, 2025, compared to $278 million in 2024[51]. - Capital expenditures for the six months ended December 31, 2025, were $180 million, an increase from $157 million in 2024[51]. - The net cash used in financing activities from continuing operations was $419 million for the six months ended December 31, 2025, compared to $342 million in 2024[51]. Subscriber Growth - Total average subscriptions to Dow Jones' consumer products increased 10% to over 6.5 million, with digital-only subscriptions growing 12% to over 6.0 million[18]. - Digital subscribers at News Corp Australia reached 1,168,000 as of December 31, 2025, up from 1,126,000 in the prior year, marking a growth of 3.7%[34]. - The Times and Sunday Times had 659,000 digital subscribers as of December 31, 2025, compared to 616,000 in the prior year, reflecting a growth of 7%[34]. Future Outlook - The company plans to host a Dow Jones Investor Briefing on March 16th in New York City to highlight growth prospects[10]. - The company plans to continue evaluating its core business operations by using Adjusted Total Segment EBITDA, which excludes certain non-cash items and impacts from acquisitions and divestitures[57].

Core Insights - New York City's rental market is experiencing significant immobility, with nearly 90% of renters remaining in the same unit for over a year, which is higher than the national average of 78.4% [2][3] - The median asking rent in NYC reached $3,585 in Q4 2025, reflecting a 6.6% increase from the previous year, with the most substantial rise occurring in Manhattan [3][4] - Mayor Mamdani's proposed rent freeze on stabilized units could further restrict mobility in the rental market, potentially leading to higher market-rate rents as available inventory decreases [3][7] Rental Market Overview - The median rent in Manhattan is $4,886, requiring an annual income of $195,440 to stay below the 30% affordability threshold [4] - Brooklyn's median rent is $3,943, Queens at $3,355, and The Bronx at $3,094, with respective annual income requirements of $157,720, $134,200, and $123,756 [4] - The overall stay-in-place renter percentage in NYC is 89.3%, with the Bronx having the highest at 93.7% [4][5] Factors Influencing Immobility - Approximately 40% of NYC's rental stock is rent-stabilized, contributing to a low vacancy rate of 0.98% for these units compared to 1.84% for market-rate units [5] - Overcrowding is more prevalent in rent-stabilized units, with 13.1% of these units housing more than two persons per bedroom, compared to 6.7% in market rentals [6] Future Implications - The impending rent freeze could lead to a further decline in turnover rates, making it more challenging for new residents to find housing [7] - The lack of mobility may hinder economic activities, as renters delay significant life changes due to the high costs associated with moving and limited housing options [7]

Core Viewpoint - The California Post, a conservative daily tabloid, has launched, representing the New York Post's expansion into the West Coast media landscape [1] Group 1 - The California Post is published by Rupert Murdoch's News Corp, indicating a strategic move by the company to broaden its media presence [1] - The launch signifies an effort to tap into the West Coast market, which may present new opportunities for audience engagement and advertising revenue [1]

Group 1: Company Overview - The California Post is a new West Coast news platform launched by New York Post Media Group, headquartered in Los Angeles [2][8] - The publication aims to deliver sharp, engaging journalism focused on California, covering various topics including Hollywood, politics, and sports [7][8] - The California Post has secured notable advertising support from companies like Yaamava' Resort & Casino, Realtor.com, Fox Entertainment, and FOX Sports [5] Group 2: Editorial Team and Talent - The editorial team includes experienced professionals such as Nick Papps as Editor-in-Chief, Tatiana Siegel from Variety, and other notable hires from various media outlets [3][4] - The team is designed to cover significant stories in California, with a focus on Hollywood and statewide politics [6][7] - The publication has made aggressive hiring moves to strengthen its editorial and business teams, indicating a commitment to quality journalism [4][6] Group 3: Market Position and Strategy - The California Post aims to fill a gap in the market for journalism that resonates with Californians, emphasizing clarity and bold storytelling [6][7] - The Post Digital Network, which includes The California Post, attracts nearly 100 million monthly unique visitors, with a significant portion from California [7] - The New York Post has achieved three consecutive years of profitability since Fiscal Year 2022, showcasing a strong financial position in a challenging publishing environment [7]

Core Insights - Symbolic.ai has signed a significant deal with News Corp to utilize its AI platform for enhancing financial journalism through Dow Jones Newswires [1][3] - The AI platform developed by Symbolic.ai claims to improve productivity by up to 90% for complex research tasks, streamlining editorial workflows [2] Company Developments - News Corp, which owns major assets like MarketWatch, the New York Post, and the WSJ, is actively integrating AI into its operations [1][3] - In 2024, News Corp entered a multi-year partnership with OpenAI to license its material, indicating a strategic move towards AI collaboration [3] Technology Impact - Symbolic.ai's platform aims to enhance various editorial processes, including newsletter creation, audio transcription, fact-checking, and SEO optimization [2]

Core Insights - The share of U.S. homeowners with mortgage rates above 6% has surpassed those with rates below 3%, indicating a significant shift in the housing market after years of low borrowing costs [1][2][9] Mortgage Rate Trends - In Q3 2025, 21.2% of outstanding mortgages had interest rates of 6% or higher, compared to 20.0% with rates below 3% [2] - Mortgage rates have decreased from a peak of 7.04% in January 2025 to the low-6% range by the end of the year, but have remained above 6% since September 2022 [2][6] Homeowner Behavior - The transition to higher-rate mortgages reflects a gradual adjustment as some households exchange low-rate mortgages for higher-rate loans or enter the market for the first time, despite the rate lock-in effect limiting inventory recovery [3][4][6] - More than half (51.5%) of outstanding mortgages still have rates at or below 4%, contributing to homeowner hesitance to sell, as moving would increase monthly payments significantly [4] Market Dynamics - The share of mortgages with rates above 6% has increased by over 4 percentage points from Q3 2024 to Q3 2025, indicating ongoing buyer activity despite high rates [6] - Housing supply has improved, leading to a more balanced national market, although inventory remains constrained in affordable areas [7] Future Outlook - Modest decreases in mortgage rates into the low-6% range could stimulate additional homebuying activity, with easing inflation and mortgage rates being crucial for increasing seller participation [8]

Core Insights - Polymarket's real-time prediction market data will be integrated into various Dow Jones consumer platforms, enhancing the information available to users [1][2] - The partnership aims to provide insights on economic, political, and cultural topics through prediction market signals [3] Partnership Details - An exclusive partnership between Polymarket and Dow Jones was announced, allowing Dow Jones to utilize Polymarket's prediction market data [2] - Dow Jones will feature this data on its digital properties and in print, including an earnings calendar that reflects market expectations for corporate performance [4] Market Impact - The prediction market data is seen as a growing source of real-time insights into collective beliefs about future events, according to Dow Jones CEO Almar Latour [4] - Polymarket's data is increasingly recognized for its reliability and transparency, combining journalistic insight with market probabilities [5] Industry Growth - The prediction market sector has experienced significant growth, with global trading volumes exceeding $28 billion in 2025, and Polymarket and Kalshi contributing $3.71 billion to venture funding [6]

Core Insights - National luxury home prices softened in November 2025, with the 90th-percentile threshold decreasing to $1.20 million, a decline of 2.3% year-over-year [1][3] - The luxury market is characterized by mixed trends, with some metropolitan areas experiencing rapid turnover while others face slower sales [3][7] National Overview - The luxury threshold at the 90th percentile is $1,199,977, down 2.0% month-over-month and 2.3% year-over-year - The high-end luxury threshold at the 95th percentile is $1,930,853, reflecting a monthly decrease of 1.2% and a yearly decline of 2.7% - The ultra-luxury threshold at the 99th percentile is $5,490,492, showing a slight monthly increase of 0.5% but a yearly decrease of 2.4% - The national median listing price stands at $415,000, down 2.2% month-over-month and 0.4% year-over-year - The share of million-dollar listings is 12.8%, a decrease of 0.4 percentage points month-over-month and unchanged year-over-year [3][4] Fastest and Slowest Luxury Markets - Luxury homes nationally spent a median of 78 days on the market in November, unchanged from the previous year - San Jose–Sunnyvale–Santa Clara, CA, had the fastest sales at a median of 56 days, while Bend, OR, recorded the slowest at 146 days [4][6] - Naples–Marco Island, FL, saw luxury homes selling 23.5% faster year-over-year, with a luxury threshold of $3.50 million [5] - Other fast-moving markets include Riverside–San Bernardino–Ontario, CA, and the Washington, D.C., area, with median selling times of 57 to 58 days [6] Luxury Pricing Trends - The luxury market is increasingly influenced by local factors rather than national trends, with some areas experiencing strong demand and quick sales while others struggle [3][7] - Markets with well-aligned pricing and demand are seeing rapid sales, while high-priced metros with specialized buyer pools are facing slower turnover [7]