News Corporation Q3 2025 Earnings Driven by Digital Real Estate

News Corporation (NWSA reported a significant surge in net income for the third quarter of fiscal year 2025, posting growth of +78.52% compared to the prior year period. This substantial increase, detailed in the company's recent financial highlights, underscores the impact of strategic initiatives and evolving market dynamics, particularly within its digital real estate services segment and broader media operations.

While overall revenue saw a more modest increase of +2.09% during the same period, the sharp rise in profitability points to operational efficiencies and potentially higher-margin contributions from key business units. This performance comes amidst a complex market environment, characterized by an uneven recovery in the U.S. housing market and shifting patterns in international demand for real estate assets, factors that directly influence News Corp's significant digital property holdings.

Financial Performance and Key Metrics#

News Corporation's financial results for the fiscal year ending June 30, 2024, showed revenue of $10.09 billion, a +2.09% increase from $9.88 billion in fiscal year 2023, according to data sourced from Monexa AI. Net income for FY 2024 stood at $266 million, a substantial improvement from $149 million in FY 2023. This translated to an EPS of $0.82 for FY 2024, up from $0.47 in FY 2023. The Q3 2025 highlights specifically pointed to the +78.52% net income growth, suggesting continued positive momentum into the current fiscal year.

Operating income in FY 2024 reached $805 million, representing an 8.0% operating income margin, an improvement from the 7.2% margin in FY 2023. EBITDA also saw growth, rising to $1.36 billion in FY 2024 from $1.14 billion in FY 2023, reflecting a 13.5% EBITDA margin. These figures indicate a strengthening of core profitability, even as top-line revenue growth remained relatively subdued.

Examining the balance sheet as of June 30, 2024, News Corp held $1.96 billion in cash and cash equivalents. Total assets amounted to $16.68 billion, while total liabilities were $7.67 billion, resulting in total stockholders' equity of $8.12 billion. The company's long-term debt stood at $3.88 billion, contributing to a total debt of $4.05 billion and a net debt position of $2.09 billion. Key financial health ratios, based on TTM data, include a Current Ratio of 1.68x, a Debt-to-Equity ratio of 0.36x, and a Total Debt to EBITDA ratio of 0.53x. These metrics generally suggest a solid financial position with manageable debt levels relative to assets and earnings power.

Cash flow generation remained robust. For FY 2024, net cash provided by operating activities was $1.1 billion, consistent with $1.09 billion in FY 2023. Free cash flow stood at $602 million in FY 2024, up slightly from $593 million in FY 2023. Capital expenditures were $496 million in FY 2024. The company returned capital to shareholders through dividends paid totaling $172 million and common stock repurchases of $117 million in FY 2024.

The company's TTM profitability ratios show a Return on Equity (ROE) of 5.95% and a Return on Invested Capital (ROIC) of 5.32%. These figures, while not exceptionally high, indicate the company's ability to generate returns on shareholder equity and invested capital, respectively.

Digital Real Estate Services and Market Dynamics#

A significant driver of News Corporation's performance, particularly the recent net income surge, is its Digital Real Estate Services segment, which includes Realtor.com. The health of the U.S. housing market is therefore directly relevant to the company's fundamentals. Recent data indicates a notable recovery, with active listings surpassing 1 million homes for the first time since winter 2019 as of May 2025, according to PR Newswire [(Source](https://www.prnewswire.com/news-releases/us-inventory-surpasses-1-million-homes-for-the-first-time-since-winter-of-2019-302473618.html).

However, this recovery is not uniform across the United States. Regional disparities are pronounced. The South and West have seen significant increases in inventory, with cities like Austin, TX, reporting a +69.0% change in active listings compared to pre-pandemic levels, and Seattle, WA, showing a +60.9% change. In stark contrast, markets in the Northeast and Midwest continue to face inventory shortages, with Hartford, CT, down -77.7% and Chicago down -59.3% from pre-pandemic levels [(Source](https://www.prnewswire.com/news-releases/us-inventory-surpasses-1-million-homes-for-the-first-time-since-winter-of-2019-302473618.html). These regional differences have direct implications for News Corp's digital real estate platforms, influencing advertising revenue potential and the type of content required to engage users in diverse markets.

International demand for U.S. real estate is another factor influencing News Corp's digital platforms. International traffic on Realtor.com accounted for 1.9% of total traffic in Q1 2025, an increase from 1.7% in Q1 2024 [(Source](https://www.prnewswire.com/news-releases/international-shoppers-were-a-larger-share-of-us-housing-demand-during-the-first-quarter-of-2025-302471742.html). While Canada historically represented the largest share of this demand, its contribution declined from 40.7% to 34.7% year-over-year. Conversely, interest from other countries, including the UK (15.2% share), Germany (12.4% share), and Australia (9.8% share), increased [(Source](https://www.prnewswire.com/news-releases/international-shoppers-were-a-larger-share-of-us-housing-demand-during-the-first-quarter-of-2025-302471742.html). This shift suggests a need for diversified international targeting and content strategies to capture interest from emerging source countries.

Market sentiment among prospective homebuyers also plays a role. Despite broader economic uncertainties, nearly 30% of home shoppers indicated that recession fears could make them more inclined to buy, potentially seeking lower rates or reduced competition [(Source](https://www.prnewswire.com/news-releases/despite-recession-fears-nearly-30-of-home-shoppers-say-a-downturn-could-make-them-more-likely-to-buy-a-home-302459129.html). This suggests a segment of the market remains motivated, albeit with a cautious outlook, influencing the demand for information and services provided by platforms like Realtor.com.

Strategic Implications and Management Execution#

News Corporation's strategic direction appears increasingly centered on leveraging its digital assets, particularly in real estate, to drive profitability amidst fluctuating conditions in its traditional media segments. The regional disparities in the U.S. housing market necessitate a localized strategy for Realtor.com, tailoring marketing, advertising, and content to the specific dynamics of each area. In inventory-rich regions, the focus may be on attracting buyers and supporting transaction volume, while in inventory-constrained areas, the emphasis might shift towards seller lead generation and market education. The rise in international demand from diverse countries also presents an opportunity to expand global reach and potentially develop localized international services or partnerships.

Historically, News Corp's financial performance has shown volatility, influenced by macroeconomic cycles and shifts in media consumption and advertising markets. The Net Income 3Y CAGR of -6.93% and Free Cash Flow 3Y CAGR of -10.76% reflect some of these past headwinds. However, the recent Q3 2025 performance suggests a potential inflection point, with strong bottom-line growth indicating improved operational execution or more favorable conditions in specific segments like digital real estate. Management's ability to navigate the uneven housing recovery and capitalize on shifting international demand will be crucial for sustaining this momentum.

Analyzing management execution through earnings surprises provides some insight. News Corp has demonstrated a mixed but generally positive trend in meeting or exceeding analyst expectations. The company beat estimated earnings in November 2024 and February 2025, and also in August 2024, though it slightly missed estimates in May 2025. This track record suggests a reasonable degree of predictability in financial outcomes, although external market factors can introduce variability.

Capital allocation decisions, such as consistent dividend payments and share repurchases, signal management's confidence and commitment to returning value to shareholders. The TTM dividend yield stands at 0.72%, with a payout ratio of 37.99%, indicating that dividends are well-covered by earnings.

Valuation and Analyst Expectations#

News Corporation's valuation metrics provide context for its current market positioning. The stock trades at a TTM PE ratio of 32.47x and a current PE ratio of 34x. While these figures might appear elevated compared to some industries, they should be considered alongside the company's growth prospects and segment mix, which includes higher-growth digital assets.

Forward valuation metrics from analyst estimates suggest expectations for improving profitability over the coming years. The forward PE ratio is estimated at 31.46x for FY 2025, declining to 29.09x for FY 2026, and further to 25.16x for FY 2027. Similarly, the forward EV to EBITDA ratio is projected to decrease from 22.88x in FY 2025 to 22.26x in FY 2026 and 21.56x in FY 2027. These declining forward multiples imply that analysts anticipate earnings and EBITDA growth that could make the current valuation more attractive over time.

Analyst consensus estimates for future growth are optimistic. Revenue is projected to reach approximately $8.51 billion in FY 2025, growing to $8.74 billion in FY 2026 [(Source: Seeking Alpha](https://seekingalpha.com/article/4784017-news-corporation-nwsa-q3-2025-earnings). EPS is estimated at $0.92 for FY 2025, increasing to $1.02 for FY 2026. Longer-term forecasts project a revenue CAGR of +9.64% and an EPS CAGR of +12.12%. These projections, if realized, would represent a significant acceleration from recent historical growth rates and support the declining trend in forward valuation multiples.

Conclusion#

News Corporation's recent financial performance, highlighted by strong net income growth in Q3 2025, indicates positive momentum driven in part by its digital real estate segment. The ongoing, albeit uneven, recovery in the U.S. housing market, coupled with shifting international demand patterns, presents both opportunities and challenges that News Corp is addressing through localized and diversified strategies, particularly for Realtor.com. The company maintains a sound financial structure, and analyst expectations for future revenue and earnings growth are notably optimistic, suggesting a potential acceleration in fundamental performance compared to recent historical trends. Management's execution in navigating these market dynamics and capitalizing on the strengths of its digital assets will be key factors for investors to monitor.