Formula 1's second-quarter accounts landed on Thursday and they are ugly on the face of it. Revenue between April and June fell from $1.22 billion to $764 million, a 38% drop. Operating income fell from $293 million to $73 million - down 61%. Adjusted OIBDA went from $361 million to $139 million.
The cause is not commercial. It is arithmetic. F1 ran five races in the quarter this year against nine in 2025, a 44% reduction. The Japanese GP moved forward into March and therefore into Q1, Imola dropped off the calendar entirely, and the Bahrain and Saudi Arabian Grands Prix scheduled for April could not be held because of the conflict in the Middle East.
The Race's Jon Noble made the point that the headline percentage is largely noise. With races down 44% in the quarter and 27% across the first half, a 38% revenue fall and a 15% decline over six months "is no cause for huge alarm", he wrote - particularly with Bahrain now rescheduled to Malaysia on 4 October and seven races due in Q3 against six last year.
The number that does bite sits further down the report. Team payments for the quarter fell from $513 million to $316 million. Across the first half of 2026 the grid has been paid $500 million against $627 million last year. That is $127 million less spread across ten teams in six months, arriving in a season where every one of them is absorbing the cost of an entirely new technical regulation set.
Stefano Domenicali's framing of the quarter did not dwell on any of that. "This season has showcased the very best of our sport with competitive racing and fascinating storylines that are driving strong fan engagement with attendance, audiences and digital impressions all up season-to-date," the F1 president and CEO said.
He pointed to the calendar fix and the broadcast switch as the proof points. "Our sport continues to demonstrate its adaptability and creativity - the Bahrain Grand Prix for 2026 will be hosted in Malaysia following the agreement announced last week," Domenicali said. "Our partnership with Apple continues yielding positive engagement, with viewership up year-over-year, season-to-date and total hours watched up 13%. We continue to see momentum across our business, including signing a landmark 10-year extension in Las Vegas."
Liberty Media president and CEO Derek Chang was similarly forward-looking on the investor call, leaning on the group's second property rather than the quarter just gone. "Demand for our brands remains robust and resilient and we are continuing to find creative solutions to deal with global uncertainties," Chang said. "We are one year into our ownership of MotoGP and remain encouraged by the opportunities to grow the sport globally." He added that "disciplined capital allocation remains a core priority as we evaluate strategic investment opportunities".
With the calendar full to 2028, Domenicali's growth levers are elsewhere: premium hospitality, licensing, and the Paddock Club, which is sold out for this year with team allocations already confirmed for 2027. "Experiential opportunity is where we are focusing our future," he said, citing the Outlap - a 12-seat LVMH dinner staged in a container driven around the circuit, launched at Spa at more than 10,000 euros a head.
One door he closed firmly. Asked about an official AI partner, Domenicali said: "We will never give it to anyone or a single partner that area because it's too big. Our ability to divide that area of business is creating for us a lot of opportunities."
The rest of the year should repair most of the damage. Q3 carries seven races including Madrid, and Q4 would carry eight if Qatar and Abu Dhabi go ahead. If they do not, Domenicali has already floated a European finale with Imola the lead candidate for a December closer - which would land F1 on 22 or 23 races and leave the annual figures close to intact. The teams, having taken their share of the hit in cash rather than percentages, will be watching that arithmetic more closely than anyone.
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*Originally published on [NewsFormula One](https://newsformula.one/article/f1s-operating-income-falls-61-percent-and-the-teams-lose-197m). Visit for full coverage.*