Formula 1 hit a record $617m in Q1 2026 revenue, up 53% year-on-year, but cancelled Middle East races and new regulations cast a shadow over the quarters ahead
Formula 1 (F1) generated $617m in revenue during the first three months of 2026, a 53% increase on the $403m reported in Q1 2025, as Liberty Media (which owns F1) posted its strongest opening quarter since acquiring the sport in 2017.
Operating income swung from a $28m loss to $107m, while Adjusted OIBDA doubled year-on-year to $172m.
The headline figures, however, come with a caveat, in that three races were held in Q1 2026 compared to two in the same period last year – a calendar variance that Liberty Media itself identifies as a primary driver of the year-on-year movement, alongside contractual fee increases and a higher proportionate recognition of season-based revenue.
Sponsorship and broadcast deals anchor commercial growth
Beyond the race-count effect, the underlying commercial picture is genuinely strong. Primary F1 revenue – covering race promotion fees, media rights, and sponsorship – rose 55% to $496m, with sponsorship growth driven in part by new partners including Standard Chartered.
Other F1 revenue, which encompasses hospitality, freight, travel, and licensing, climbed 44% to $121m, supported by ‘Paddock Club’ growth and new premium hospitality offerings.
On the partnership front, Liberty extended agreements with Salesforce and Allwyn, signed new multi-year deals with Marsh, FanDuel, and Betway, and renewed broadcast contracts with Sky in the UK and Italy, Foxtel in Australia, and beIN Sports across pan-Asia.
F1 President and CEO Stefano Domenicali flagged the Apple partnership in the US as delivering an encouraging early start.
At the Liberty Media group level, consolidated revenue reached $711m – up from $447m a year earlier – with MotoGP, acquired in July 2025, contributing $94m in its first full quarterly comparison. Group cash and cash equivalents rose $277m during the quarter to $1.33bn, while consolidated leverage fell from 3.6x to 3.0x.
Formula 1: Record numbers, but the real test is Q2
The Q1 results are the highest quarterly revenue figure in F1’s history, but they arrive ahead of what is likely to be a considerably more difficult Q2 report.
The Bahrain and Saudi Arabia Grands Prix were not held in April due to geopolitical tensions – reducing the 2026 calendar from 24 races to 22.
That two-race shortfall will weigh directly on Q2 revenue, cost recognition, and team payment calculations, none of which are reflected in these figures.
The filing explicitly says the reduced calendar will “impact the year-over-year revenue and cost comparisons on a quarterly basis in addition to proportionate recognition of season-based revenue.”
With Q1 having recognised three of 22 races rather than two of 24, the favourable ratio partially inflates the comparative figures – a dynamic that will reverse as the season progresses.
Operating costs also rose materially. Team payments excluding Concorde incentive payments increased 61% to $184m, while other cost of motorsport revenue grew 38% to $176m.
Selling, general and administrative expenses rose 12% to $85m, driven by unfavourable currency exchange rates and higher personnel and technology costs.
The cost growth was comfortably outpaced by revenue in Q1, but the margin picture in Q2 will depend heavily on how Liberty manages the void left by the two absent races.
