Welcome to Liberty Media Corporation's 2026 Second Quarter Earnings Call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question and answer session. At that time, if you have questions, please press star one on your telephone. As a reminder, this conference will be recorded August 6th. I would now like to turn the call over to Hooper Stevens, Senior Vice President, Investor Relations. Please go ahead. Thank you for joining us this morning. This call includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in the most recent Forms 10-K and 10-Q filed by Liberty Media with the SEC. Liberty Media expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Liberty Media's expectations with regard thereto, or any change in events, conditions, or circumstances on which any such statement is based. On today's call, we will discuss certain non-GAAP financial measures for Liberty Media, including Adjusted OIBDA, constant currency for MotoGP. The required definitions and reconciliations for Liberty Media Schedule One and MotoGP Schedule Two can be found at the end of the earnings press release issued today, which is available on Liberty Media's website. Speaking on today's call, we have Liberty's President and CEO, Derek Chang; Liberty's Chief Accounting and Principal Financial Officer, Brian J. Wendling; Formula 1's President and CEO, Stefano Domenicali; MotoGP CEO, Carmelo Ezpeleta, and other members of management will be available for Q&A. With that, I'll turn it over to Derek. Great. Thank you, Hooper. Good morning, everyone. We are thrilled with the second quarter performance at both F1 and MotoGP. Amidst all the global uncertainty, Credit to our operating teams in this challenging environment, our businesses are motoring along at a speedy pace. Our priorities for 2026 remain unchanged, which are to build upon Formula 1's durable business model, establish the foundation for MotoGP's next phase of development, and allocate capital with discipline. Since May, we have made tangible progress against each priority while keeping the distinct identity of each sport at the center of our approach. Formula One continues to demonstrate the breadth and durability of its platform. New technical era is producing compelling competition on track. There is immense demand from fans, promoters, commercial partners, and media platforms. Meanwhile, our business continues to perform incredibly well, with notable momentum across Paddock Club, licensing, and sponsorship. In the U.S., Formula 1's momentum on Apple continues to build with viewership up year-over-year, season-to-date, and total hours watched up 13%. We could not be more pleased with this result. The digital product is great, and sponsors across the F1 ecosystem are very happy with our distribution on Apple. This season, F1 has attracted a much younger and more female audience in the U.S. on Apple TV. Our experience with Apple continues to reinforce the strategy of pairing premium live coverage with product innovation and broader ecosystem breadth without compromising reach. Through Apple's ecosystem, F1 is being amplified, discovered, and embraced by a new generation of fans, and we couldn't be more excited to see what this partnership will bring to our sport in the coming years. We are also creating more direct and frequent relationships with fans. Original content, licensing, and experiential activations are extending engagement beyond race weekends. For example, Passenger Princess, which in its first season generated close to 300 million views, returned for a second season last month. The Las Vegas Grand Prix 10-year extension through 2037 is a milestone that underscores F1's growing U.S. presence. At MotoGP, we are beginning to capitalize on the significant opportunities ahead, and we are very happy with our progress so far. The racing this season has been exceptional, with incredibly tight competition among the top five riders. More importantly for the long term, MotoGP completed agreements with all manufacturers and teams through 2031. Together with new technical regulations beginning next year, this establishes a stable framework for investment, promotion, and commercial growth. We continue strengthening the organization, including progressing on key hires and building commercial capabilities while pursuing growth in ways that are authentic to MotoGP. There is positive momentum in the business with new media agreements signed in Spain and Portugal and the extensions of the Malaysian and Silverstone Grands Prix. Fan activations, like the 20,000-person immersive watch party in London in June, broaden access and visibility and underscore our priority of bringing the MotoGP experience closer to city centers. Our capital priorities at the Liberty level remain to support attractive organic growth, maintain a prudent balance sheet, and evaluate opportunities that complement our existing assets. Brian will cover the financial results in more detail, and Stefano and Carmelo will discuss the operating businesses. Our confidence remains high in the durability of Formula 1's growth and their increasingly direct and always-on fan relationships. Likewise, we continue to feel very excited by MotoGP's long-term potential as its organizational and commercial foundation takes shape. Now I'll turn it over to Brian. Thank you, Derek, good morning, everyone. We'll start with the Formula 1 business. The race count this quarter is especially challenging due to not holding the Saudi and Bahrain GPs in April, and other differences in the calendar resulting in a 44% decline in the race count for the quarter and a 27% decline year-to-date. With that in mind, I'll focus on year-to-date comparisons, and as always, it remains best to focus on our business on a full-year basis. Absent the calendar variability, the business is performing incredibly well. Results reported year-to-date reflect a 22 race calendar, the number known at June 30. Subsequent to the end of the second quarter, we have rescheduled the Bahrain GP, which will be held in Malaysia in October, bringing our expected race count to 23 races for the year. We expect to start accruing season-based revenue costs and associated true-ups with respect to a 23 race calendar starting in the third quarter of this year. No additional 26 calendar changes may be necessary. We expect to return to a full 24 race calendar next season. The second quarter of 2026 held five races compared to nine races in the second quarter of last year. Year-to-date through the second quarter, F1 also had three fewer races, with eight races held in the current year-to-date period, compared to 11 races held in the prior year. Year-to-date, revenue declined 15% and Adjusted OIBDA declined 30%, driven by the change in race count. The decline in primary revenue was driven by the calendar variance and its effect on recognition of season-based revenue. With eight out of 22 assumed races staged year-to-date, with approximately 36% of season-based revenue recognized compared to the prior year period, when 11 out of 24 races had been staged and approximately 46% of season-based revenue had been recognized. During the second quarter, media rights revenue was also impacted by the one-time revenue associated with the release of the F1 movie last year. Offsetting the decline was underlying contractual fee increases at our three primary revenue streams and revenue generated from new and renewed sponsorship partners. Other revenue declined due to lower hospitality and freight revenue from three fewer events held year-to-date and lower F3 revenue due to the sale of cars at the beginning of the new F3 cycle last year. Partially offsetting decline was strong demand for the Paddock Club at recurring events, continued growth in our licensing business, and growth in the Grand Prix Plaza activities in Las Vegas. Adjusted OIBDA decreased year-to-date because of the lower event count. The revenue decline discussed above outpaced the decline in expenses. Decreased operating expenses included lower team payments and expenses related to the delivery of hospitality offerings, travel, freight, and other costs due to the calendar variance. SG&A expenses increased driven by higher personnel and information technology costs, partially offset by lower marketing costs as we lapped the 75th season launch event last year. Team payments as a percent of pre-team share Adjusted OIBDA were 61.7% year-to-date and were also accrued based on a 22 race calendar assumption. For the full year, we still expect to see roughly 200 basis points improvement in leverage on this metric, in line with the average that we've seen over the past four years. After 2026, for the remainder of the term of the new Concorde Agreement through 2030, we expect the payoff percentage to remain relatively stable. Team payments are best analyzed on a full year basis due to quarterly fluctuations in team payments as a percent of Adjusted OIBDA. Now turning to MotoGP. A reminder that we closed the acquisition on July 3rd of 2025, so our financial results prior to the date of the acquisition are presented on a pro forma basis, so the transaction occurred on January 1, 2024. The majority of MotoGP's revenue and costs are EUR denominated and as such are subject to translational impacts from foreign exchange fluctuations. I will focus on constant currency results here. Similar to F1, I'll also focus on year-to-date comparisons. Year-over-year comparisons are impacted by the mix of races, not just the number. As a reminder, MotoGP flyaway races generally carry higher costs, including freight, travel, and IRTA fees. MotoGP race count itself was identical year-over-year for both the quarter and the year-to-date periods. Revenue increased at MotoGP year-to-date, driven by growth in race promotion from event mix and sponsorship revenue due to new sponsors and underlying contractual growth. A reduction in contractual media rights and a decline in title sponsorship revenue related to event mix partially offset that revenue growth. Adjusted OIBDA also grew year-to-date, driven by both revenue growth and a decline in expenses. Cost of MotoGP motorsport revenue decreased due to the impact of lower freight expenses from the race mix, as well as lower hospitality costs related to MotoGP's new hospitality agreement with Quint, whereby MotoGP now recognizes revenue and costs related to hospitality on a net basis. Looking briefly at corporate and other results year-to-date, revenue was $12 million, which relates to the rental income generated by Grand Prix Plaza in Las Vegas. Corporate and other Adjusted OIBDA was a loss of $16 million. It includes Grand Prix Plaza rental income and our corporate expenses. At quarter end, Liberty Media had cash and liquid investments of approximately $1.5 billion, which included $1 billion of cash at F1 and $142 million of cash at MotoGP. Our debt was approximately $5 billion at quarter end, which included $3.3 billion of debt at F1 and $1 billion of debt at MotoGP, with $497 million at the corporate level. F1's $500 million revolver and MotoGP's EUR 100 million revolver both remain undrawn. We did reprice MotoGP's debt in June, we priced a EUR 720 million term loan B, a $200 million term loan A, and a new $100 million multi-currency revolving credit facility. At attractive terms with future reductions in margin expected as the business de-levers. Additionally, we repaid a portion of MotoGP's debt funded with cash from MotoGP's balance sheet. At quarter end, Liberty Media's net leverage was 3.4 times. That is a slight uptick from the end of the first quarter, but it's largely driven by the F1 calendar variance. F1 and MotoGP are both in compliance with their debt covenants at quarter end. With that, I'll turn it over to Stefano to discuss Formula One. Thanks, Brian. The 2026 season so far has delivered some incredible racing and amazing moments for all of our fans. There have been great battles for podiums among Kimi, George, Lewis, Lando, and Charles that have fueled excitement on track. The championship battle remains highly competitive. I expect the teams to converge more and more as the season progresses. The news I knew would become reality is that attendance is up, audiences are up, digital numbers are growing, and the fans are enjoying what they are seeing. The fans are the heart of everything we do. They are loving the season. As you know, the safety and security of everyone in the sport remains our first and foremost priority. We are closely monitoring developments in the Middle East region, originally hoping to bring back one race to the region. Unfortunately, we were unable to do so as originally planned. Instead, we recently announced the great news that we will recover the Bahrain Grand Prix, but it will be hosted by Malaysia, creating an exciting triple-header alongside Baku and Singapore. I want to thank His Majesty, the King of Bahrain, His Royal Highness Prince Salman of Bahrain, and His Majesty the King of Malaysia, as well as their respective governments, and of course, the president of the FIA and the promoters for all their collaboration and the flexibility making this race possible. It once again shows that we can adapt, find solutions, and deliver incredible results for the sport. Looking ahead, we continue to expect that Qatar and Abu Dhabi Grand Prixes are to currently proceed as scheduled for a 23 races calendar this season. We expect to return to a full 24 races calendar next season. Engagement trends continue to underscore the strength of our sport. We welcome 3.3 million attendees to date, with all 10 races selling out through Belgium. Five races set new attendance records, including Silverstone, welcoming 564,000 fans, making it the most attended race in the sport's history. Our sprint format continues to drive higher Friday attendances and stronger daily attendances through our race weekend. The success of the sprint format continues to drive growing interest from promoters in hosting a sprint race. We expect to expand the number of sprints for next year and to provide further details soon. Our hospitality offerings continue to benefit from huge demand for premium experiences. The Paddock Club remains sold out for the rest of the season. House 44, which is also sold out this season, has been a standout success. We plan to expand House 44 from nine locations this year to 13 locations next year. At the Belgian Grand Prix, we launched our new premium experience, the Out Lap, in partnership with LVMH. Early feedback from our partners and fans have been overwhelmingly positive. We expect to operate this experience across Europe next season. Retail sales remain robust and highlight the underlying consumer demand on F1 branded merchandise. At Silverstone, we introduced a new flagship retail concept that offers fans abroad a more diverse product assortment. We plan to expand this flagship format to Monza, Madrid, and Austin later this year. Building on the success of the specialty F1 Disney store in Asia, we launched another Disney retail hub at the Montreal race this quarter. Additionally, we also opened two new F1 hub locations in Montreal and London, further extending our retail footprint and following the success of the original concept in Las Vegas that returns in November. We continue working. We plan the expansion next year in Austria. In Monaco this season, we added a third floor to the Paddock Club, in addition to diversifying our premium product mix with five different experience packages. At Silverstone, we opened our Turn 1 Annex in our Paddock Club, taking our premium capacity to an all-time high this season. At Austin, we are excited to open our new structure at Turn 1 later this year, and we also have additional planned expansion in Austin next year. We also continue to see growth in our global TV audience, led by several key strategic markets, including Brazil, Italy, and China. In Brazil, the British Grand Prix reached a record of 18 million viewers across TV Globo and SporTV 3, generating the highest audience for the event in 80s and the largest audience for any F1 race globally since 2020. In Italy, TV audiences are up +27% through Silverstone versus last year, helping drive broader growth in fan engagement across our ecosystem. In China, the moment generated by the Chinese Grand Prix, where weekend audience more than doubled year-to-year, has continued throughout the season, supported by increased coverage and growing audiences. Our social and digital platforms continue to play an important role in bringing our younger, digital-first audience closer to our sport. We grew our social media follower 19% year-over-year, with particularly strong engagement on TikTok. Our total YouTube views surpassed 1.3 billion, up +30% year-over-year, while our YouTube highlights views have reached almost 200 million views with over 15 million hours watched. While we continue to benchmark our sport engagement using traditional measure of viewership, we also recognize that our fan base continues to evolve. So too does the way our fans engage with us across a diverse range of platforms, channels, and experience. For example, the LEGO Travis Pastrana at Silverstone generated more than 70 million video views across multiple platforms, creating another culturally relevant moment that captured the attention far beyond the live race itself. To reflect this evolution, we're continuing to enhance how we measure and value fan engagement, building a more comprehensive view of how fans connect with Formula One across the entire ecosystem. Our partnership with Apple underscores this ability to interact with fans across multiple touch points, enabling a more holistic view of engagement with our sport. Since launching on Apple TV, F1 has attracted a younger audience while also expanding its reach among female fans. Our sport continues to build momentum on Apple TV, delivering strong viewership and engagement with fans this season. The strengths of Apple ecosystem has already helped us reach and engage with new fans across the U.S. F1 isn't just being watched, it is being discovered, followed, and embraced by a new generation of fans across every Apple platform and device. Our growing fan engagement continues to translate into sustained interest from our commercial partners. F1 TV product continues to perform well, with F1 TV revenue, not including the U.S. where the arrangement has changed, increasing 18% year to date. Our race promotion business has never been stronger. While our calendar is fully allocated through 2028, interest for new destination to host a race remain robust, with many potential host city seeking to develop long-term proposal that will drive tourism, investment, and broader economic activity around a potential race weekend. Our active pipeline, despite our calendar being full, underscore the strength of the sport commercial proposition in an era of expanding media reach, deepening partner engagement, and growing consumer demand globally. We are equally thrilled with the phenomenal progress we have made this year with the Las Vegas Grand Prix. We have added our very first F1 after-party concept, featuring the iconic Backstreet Boys at the Sphere following the race on Saturday night. Our ticket sales are trending well ahead of the last year with respect to both volume and revenues. In fact, we are already at month-end September 2025 levels as of the end of July, and on a like-for-like basis, excluding ticket sales for the Backstreet Boys. We have also recently announced our 10 years extension with the LVCVA, keeping the LVGP on the calendar through 2037. This extension reinforce the strategic importance of this race to our local community partners, and we now have greater certainty to invest in long-term infrastructure and operational improvements, reducing future build-out cost. Grand Prix Plaza in Las Vegas also continues performing well with private events, attraction, and watch party performing really well, with attendance on track to surpass 2025 levels. Sponsorship activity remains strong during this quarter. We extended our agreement with Pirelli as our official tire supplier through 2028 and welcome Flexjet as our official private aviation supplier in a multi-year partnership. Additionally, we also announced Fever as our new centralized ticketing platform for f1.com. Starting new season, bringing the strength of their marketing platform to our sport and ensuring we continue showing up in the most culturally relevant locations. By partnering with Fever, we will deliver a smoother fan journey with more sophisticated technology to improve discoverability and ticket purchasing. Momentum around our licensing business continue to build. We recently announced a new multi-year global publishing partnership with the DK, bringing our storytelling to a new level for fans of all ages to experience F1. We have also renewed our partnership with the Automobilist, which continues to print exclusive F1 posters and calendars for us. We also recently partnered with Hasbro to launch a special F1 themed edition of Monopoly. In addition, we have signed multi new agreement through our Disney partnership, including Gentle Monster and Uniqlo, and have many additional product launches plans with and without Disney globally for the remainder of the year as we further the reach of our sport with iconic global brands. While we remain momentum across all parts of our business, we believe Formula One has an exciting growth journey ahead, and we are excited by the opportunity. We are confident that the foundation we are building today will drive enduring value for all our partners and stakeholders. Avanti tutta. Full speed ahead. Now I will turn the call to Carmelo to discuss MotoGP. Ciao. Good morning. Thank you, Stefano. It has been an outstanding first year growing our sport with Liberty Media, and we look forward to building on this momentum with Liberty's continued support. Our season this year has been incredible. The competition has never been tighter across the grid, with only 24 points splitting the top five riders season to date, with notable strength from Aprilia. To date, 12 riders across seven teams and three manufacturers have made podium. Congrats to Ai Ogura winning his first GP as a Sen, our first Japanese winner since 2004, and the first graduate of the Asia Talent Cup to win a Grand Prix. Consistent with our history, we have successfully signed the manufacturers and teams agreement for the next five years. This renewal provides the necessary foundation to grow our sport collectively. The most important outcome from this agreement is the strong alignment across all parties on a shared vision, which is to evolve our sport while maintaining its unique heritage. Under the new agreement, we are collaborating on ways to optimize cost while preserving the competitive integrity of the sport, allowing teams and riders to reinvest back into their commercial efforts as we work collectively to realize our reach. We will increase our investment into the sport with shared responsibility across manufacturers and teams to help drive the long-term commercial success of MotoGP, creating a strong platform to continue innovation and performance, and reinforcing MotoGP as a premium global sport. We continue to grow MotoGP engagement both on and off track. Across the first 11 races, attendance is +4%, with record attendance in Thailand and Germany. We also continue to see growth in our TV audiences, with viewership up 3% through Mugello, with notable strength in our U.S., Spanish, and Austrian markets. We also recently hosted a watch party for the Dutch Grand Prix at the Outernet in London, drawing over 20,000 visitors and look forward to running the same activation for Silverstone. As we broaden our reach, we see attractive opportunities to engage fans in creative, immersive experience in key markets around the world. We remain focused on extending MotoGP global footprint and are encouraged by the momentum across our digital and social footprints. We ended the quarter with 63 million social media followers, a +3% increase year-over-year, with particularly a strong performance on TikTok, where engagement increases over 80%. Our Chinese social media platforms also delivered a strong growth, with followers increasing +26% as we continue to deepen our presence in the key growth market. Video views, excluding video pass, increases over 30%. We have a productive quarter with several new and renewal partnerships across our business. In the media rates, we continue to strengthen our global footprint. We have recently renewed with Sky Deutschland, covering Austria, Germany, and Switzerland, with DAZN in Spain and Portugal, and with RTBF in Belgium in a multi-year agreement. We also continue building momentum in race promotion, extending agreements with several promoters partners, including Malaysia to 2031 and Silverstone through 2028. Looking ahead to next year, we are excited to race again in Argentina at Buenos Aires. For the debut of Adelaide GP, we look forward to unveiling the first visual renderings of the new Adelaide circuit over the next few weeks. In our sponsorship business, we signed CAA as our global sponsorship agency, further strengthening our commercial platform and capitalizing on our brand refresh and growth. In hospitality, we are encouraged by the early momentum with our expanded partnership with Quint, where we are working together to enhance the premium hospitality experience on our events. We are excited by the path ahead and remain encouraged by our early momentum. We look forward to continue to update the investor community in our progress. Now, I will turn the call back over to Derek. Great. Thank you, everyone. We appreciate your continued interest in Liberty Media. That will open the call up for Q&A. Operator. Thank you. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. We ask that you please limit to one question and one follow-up question. Our first question is from Kutgun Maral with Evercore ISI. Please proceed. Great. Thanks for taking the questions. Two, if I could. First, I wanted to dig into the underlying trends across media rights. I think the Apple deal in the U.S. continues to get a lot of attention, but you've inked a number of other broadcast agreements since then, and we don't get as much visibility into the economics of those. I know every deal is different and the linear and digital media landscapes keep shifting, but could you give us a sense of how those conversations are generally evolving? In broad strokes, is there a helpful way to think about the trajectory of media rights revenue as these deals get renewed or extended? Second of all, I wanted to ask about the Las Vegas Grand Prix. It's very encouraging to hear ticket sales are trending well. I know you don't break out the financials separately and discreetly for the race, can you share any color on how profitability is trending year-over-year? Because if current ticket sales and revenue trends hold and you continue to evolve the vendor contracts, it seems like profitability should be positioned to improve as well. I'd appreciate your thoughts on how we should be thinking about the financial impacts of the 10-year extension going forward as well. Thank you. Sure. This is Derek. I'll just start, I think, on the media rights. As you know, media rights across the globe are sort of, they sort of ebb and flow depending on sort of who the players are, what the rights are that are coming up and, you know, other factors as it relates to dynamics of the different sort of subscription businesses or broadcast businesses in those markets. We are constantly sort of in discussion with folks Not only while we're in negotiation, but frankly, outside of that, because they're our partners, and we're always trying to build and generate as good a product as we can with them. Through those discussions, you're constantly hearing about what's going on in these markets, whether or not digital players are coming in globally, in other markets, what their expansion aspirations are. I think more broadly than I would just say that we feel good that we have great products. We have products, we have content that people want. We obviously, to some degree, are subject to some of those things that are outside of our control, and the things that we can control are continuing to make the sports that we own as compelling as possible, and as interesting for our partners as possible. That's what we do to put ourselves in the best position as we go to market every time. Now, we are, as I mentioned earlier, constantly having discussions with these guys, what you've seen from time to time is us also taking advantage of opportunities where we've renewed deals early because it makes sense. We will continue to look for ways to do that, because what we are interested in is the long-term stability of our product and making sure we're with the right partners. Just like with the race promoters, if we can find the right partners who will invest for the long term, we think that builds our brand, that builds value in our sports. As we come back to the specifics of the question, I think that we are very encouraged by where the Apple deal has gone. I think we're encouraged certainly with F1, with the recent renewals with Sky. On the MotoGP side, also very encouraged by what we've just done recently, particularly with DAZN, which Spain and Portugal are important markets for us. Stefano and Carlos, I don't know if you guys want to add anything to that. Yeah. Thanks, Derek. A couple of points on top of what Derek has just said. First of all, the beauty of what we are doing is that we control the content, and we produce it. This is an incredible asset and opportunity to redefine what is now in media world, the redefinition of the reach. We don't have to forget that the reach is taking not only with the evolution of what we are having in some of our great deals with the great media partners. We have other ways to produce content through other different ways to connect people. We don't have to forget the fact that now there is so many platforms to reach people that are creating value for the media broadcaster to connect with us, either through, let's say, traditional product or other product, like could be digital or other platform. That's why the beauty of what we are having today in the global world is that the partners that are working together with us want to renew earlier than what is the expiration date, because they see the value of what they're doing. On our side, making sure we take the right evaluation market by market, we're going to see if we can see new trends coming in can be monetized or helping us to get into a different dimension reach, and otherwise, it will be different. I think we are at a great spot today. We are an incredible sport that, because of what we are producing, gives the leverage to make sure that looking ahead, we are very positive saying that we can be a sport that can be produced in all the different platforms all around the world, making sure that we can monetize as much as we can every single contract, what we are doing on every single market. That's the point on media, in my opinion, to add on what already Derek said absolutely very clearly. Derek, of course, if we can answer to the second question, I will follow you. Otherwise, I could go ahead with that point as you prefer. Sure. I think that what we don't have to forget is, I start once again from one factor. Vegas is becoming one of the most important event that has already shown since the beginning, the potential of it. I don't want to forget that if we compare the economic impact that F1 did versus Super Bowl, with due respect, we were bigger. That means the potential to keep growing, control even more the cost, having now the opportunity of having agreed the 10-year extension with LVCVA means that can really build on even stronger the possibility for this Grand Prix to be even more profitable. That is already the case because this is something that we knew. That was a product that was being an F1 product that can have a great boost to other promoters, is becoming a relevant thing that is indicating to the world of a sport business the way to produce event around the world. This is very good. We are very happy. Emily Frazer, the CEO of the Las Vegas Grand Prix, did a tremendous job with the team there, focusing and making sure that all together as one team can produce even stronger product for the future. This year event will be phenomenal. I don't want to anticipate there will be so new content that we're going to do on the racing because we don't forget. At the center of our product, Vegas, Miami, Madrid, or wherever we are in the world, is what we're doing at the track. Being able to extend the experience, that is the key factor of being so successful so far all around the world. Great. Thanks, Stefano. Operator, next question. Our next question is from Stephen Laszczyk with Goldman Sachs. Please proceed. Hey, great. Thanks for taking the questions. Brian, you called out that absent of the calendar variability at F1 this year, the business is performing exceedingly well. I was just curious if you could maybe speak a little bit more to the underlying performance you've seen year-to-date and if there's any particular parts in the business that are performing better than expectations heading into the year. Yeah, thank you for the question, and I can certainly start and I'll let Stefano add on. Obviously the calendar variability makes it very challenging because you have lower proportionate revenue recognition. If you look through that, we're seeing really good growth on sponsorship similar, as we did last year. We're seeing really strong performances in licensing. The demand for the Paddock Club is very strong. Obviously, you have fewer races, so you don't necessarily see that come through the numbers. Those are three areas that I would very specifically call out. Stefano, anything you want to add to the underlying performance of the. Brian, you reached the most important point. For sure, licensing is starting to be on the trajectory that we were pushing these couple of years. There is a tremendous effort to characterize this revenue stream even stronger in the future. I want to say stay tuned because something will happen because it's important that we keep growing that revenue stream, as we always said. I go back to the point that Brian was saying before is related to Paddock Club. Paddock Club is related to experience, and this is something that will create even more the possibility of growing our revenues in the future because experiential opportunity is where we are focusing our future. We did an experiment, for example, in Spa, offering a very exclusive customer a possibility to have one of the best chefs in the world, a tour, having a unique way of having a food experience at the end of the Saturday night. This is another way to create things that money cannot buy. That's our approach to create even stronger, that kind of possibility that will have an input in our revenues. That's definitely very important. If I may, I don't want to give for granted the fact that we were able to react in a very difficult situation because, of course, our way to embrace our way to work is to always try to find solutions, even if there are problems. The fact that with the Bahrain Grand Prix, we wanted to bring home a race there and find a place to be in Malaysia, not in Bahrain, shows our mentality. We are racers inside. We want to make sure that our fans and our partners will rely on us to find solutions. That's what will happen future with regard to revenue streams that I see a great potential even in the next five years ahead of us. Great. Thanks for that. Maybe just on the expense side, for Stefano and Brian, SG&A at F1 looks like it continues to pace up a good bit year-over-year. Just would be curious if you could talk more about the investments you're making in the business, and then how we should be thinking about the pacing of SG&A as we look into the back half of the year and then maybe even into 2027. Thank you. The biggest two factors are, you have a marketing benefit because we had the 75th anniversary last year. We also have an FX impact where FX has negatively impacted SG&A through the first half of this year. Normally, we don't see something that large, but as our cost base in the U.K. changes, if you have changes in the British pound, obviously that could be an impact. Outside of those two items, there is investment in personnel. Personnel costs are higher than they were in the prior year. SG&A is slightly higher at LVGP. The bulk of that is due to the fact that, as you recall, we took over the sales function from Quint last year, but that wasn't fully baked at the beginning of 2025. It was being built up through 2025, and you have a full year of it now. That shouldn't be an impact going forward. We do have higher IT costs as we invest in the business. Those are the primary items. Great. Thank you very much. Next question. Our next question is from Matt Condon with Citizens JMP. Please proceed. Thank you so much for taking the questions. Stefano, you mentioned the commercial opportunity. I know you've talked about in the past this being a big future opportunity. Can you just talk about the key levers to make this a bigger part of the business over time? Sorry, Matt, can you repeat the question? Because the line was a little bit disturbed on my side. Sorry. Sorry. No, I was just asking about the commercial licensing opportunity. You talked about this being a big future opportunity. Just wanted to know the key levers to getting this to be a bigger part of the business over time. Okay. Sorry. Now I understand. I think that the beauty of what we are doing is that every time we meet, there is always what's next. What's next is finding opportunities that our market is presenting to ourselves. We have, for sure, done already an incredible step with regard to what in all the categories we can offer to our customer. The investment on digitalization that Brian was mentioning before will allow us to grow this opportunity even further. Different market, different visibility, different opportunity, therefore this will allow us to maximize the revenue connected to that. In terms of other commercial opportunity, I think definitely one thing that we are very focused in trying to, not trying, working on very hard to renew let's say, the actual big partners to be extended now without waiting the expiration of the contract. One area that we want to protect because it's an area where everyone wants to be totally involved, is the area of AI. We will never give to anyone or a single partner that area, because it's too big. Therefore, our ability to divide that area of business is creating us a lot of other opportunities. The other thing is that is related to the key licensing partners that is growing year by year. We see that through different propositions that we are doing, we are creating capsules, we are creating content that enable us to have a bigger reach with our fans. Now we are really, I would say, in a good position to monetize as much as we can the possibility of growing our customers through our partners also, that will give us a great visibility of a great trajectory of future revenue that will continue in the next future. Great. That's very helpful. Then I just wanted to ask about the new agreement with the manufacturers and teams for MotoGP. Can you maybe just give us an overview, and what are the key points that we should really know as you think about this going forward? Thank you so much. Sure. This is Derek. I think that the key points are that we've got another five-year deal with the teams and the manufacturers, I think we've got everyone sort of moving in the right direction, in terms of sort of outlining what the technical aspects of the sport will be. I think the other key components are and some of this is in the deal, some of it not, but just sort of how we're going to build this sport together. This process has been a little bit long. As you might imagine, in any sort of discussion like this, I think there's some gives and takes. I think that we're coming out of it in a way where everyone, on both sides, in terms of the teams and sort of us, are trying to figure out, and work together to build the sport, both as a product, but also from a commercial standpoint that will benefit all of us. Carlos, I don't know if you want to go into that a little bit more. Thank you, Derek, and thank you for the question. I think it's a very positive outcome for us and evidently after the deal with Liberty Media closed and the acquisition closed, that was really the time that we could really start the conversation with the manufacturers and teams, as there has been a real alignment in terms of how we want to build this together, as Derek was saying. Really what is the vision and the strategy behind building MotoGP and how the manufacturers and the teams have to be a part of that. I think that high tides raise all boats and putting together the investment that is going in towards the teams for them to also be able to invest into their own resources to grow their brands. The sport is at an amazing place from the racing point of view and 2027, the new regulations will only improve that. This is really it's been a great conversation with the teams and the manufacturers to really get everybody aligned on the commercial side and the strategy behind building the sport. Thank you. Thanks very much, Matt. Operator, next question, please. Our next question is from David Joyce with Seaport Research Partners. Please proceed. Thank you. More on MotoGP, please. Can you help us understand how much of the cost base in the quarter was allocated to incremental growth initiatives as that sport aims to apply the Formula One playbook? Separately, on the sponsorship side there for MotoGP, how much of that is expiring in the next year, that could result in either upgrading the sponsors or expanding relationships or just getting step-ups based on the continued fan engagement growth there? Thank you. Yeah, why don't we start with Brian on the cost side? Yeah, David. I would say the investment phase is not that pronounced in the quarter. Specifically, I'll look at the year-to-date results, year-to-date, we've got higher marketing expenses as we try to grow the brand. There are some incremental investments in personnel. Those are really not that material. You can see in our reported results that SG&A is relatively flat for the quarter. On cost of revenue, there certainly are investments there, but those are offset by changes in the schedule where you have higher payments to the teams due to the change in the schedule and increased flyaways. Actually, I'm sorry, a lower flyaway, lower freight cost because of the change in Qatar. So far you're not seeing material increases in the cost base through the investment other than some personnel and marketing costs. On the sponsorship question, I think the way to think about it is less about sort of what's expiring. As you might imagine, we have a regular flow of deals that sort of come up that are probably three to five years in nature, periodically you have these coming up. I think it's actually more about what sponsorships are going to be available with a focus on the business and bringing this to a much wider audience than I think something that we've been hitting on from day one, and we've historically had a fairly endemic sponsorship base. I think as we look much further afield, it starts to open up much bigger opportunities for us, well beyond sort of what a normal renewal rate paradigm will give us. I think that's how I'd frame it, how I'd think about it if I were you. Great. Thank you very much. Our next question is from Brent Navan with Bank of America. Please proceed. Thank you. We've seen Formula 1, I guess, increasingly add sprint races to the calendar. How many more can realistically be added here? I guess, can you explain how this filters through the business? Is this just extra race promotion revenues? Is there media rights response? Sprint races is an opportunity that, first of all, started because we wanted to produce something that could create action on the track, creating leverage for the promoter and ourselves to create action on the tracks starting for the weekend. We're going to have more sprint races next year, yes. We'll inform when we will announce the calendar, how many. The principle is very simple. This is also an opportunity to increment the revenue stream, for sure. This is an opportunity for us to have new deals, as we have already seen, and moving in this direction will be our future. We want to do in the right way because, of course, this will allow us also to make sure that the scarcity is a value. If commercially we would go everywhere, of course, that's not any more a value that we can really leverage from the commercial point of view. Definitely, we're going to move further up in terms of what would the number in the future. That's 1,000% what will happen already next year. Great. That's helpful. Maybe just a follow-up to the media rights discussion earlier. A few months ago, when you announced the Sky extension, Germany was noticeably absent from that agreement. There's been a few recent press reports suggesting you may look to be adding a race back to the calendar in Germany. I guess, should we interpret that discussions there? Thank you so much. I'll start on this one. Okay. Yeah. Look, I think I'll let Stefano talk about a race in Germany, but I think that broadly speaking, this is sort of what I was alluding to earlier. Germany is a market in flux. With the RTL Sky merger, I think also you've got some of the digital players, the streaming platforms that are coming into Germany. It's a market that, probably a few years ago was not as robust, and it's looking now more robust. Those are just market-driven phenomenons. You layer onto that what we continue to do from a product standpoint, which I'll let Stefano talk about more and any sort of sense of races in Germany and such. That's solely dependent on having races, having the content. Part of it is what the macro dynamics are happening in that particular marketplace. Well, if I may add on what Derek said. Definitely, RTL was an important step in our need to have a more reach in that market. I'm pretty sure that in the future, when will be the right negotiation, the market of Germany will be different, for example, from what we have now in Italy or in U.K.. There will be digital platform or other streamer that will apply for the tender. With regard to the potential, I would say that we don't have to forget that we have Audi that's stepping into the business. We have Mercedes-Benz. We have big partners that have their home base in Germany. I think now Germany wants us to think in the medium term if they can come back into the calendar or, even more important, being, as it was 20 years ago, one of the most important markets for Formula 1. I think that are the base for this discussion. I think that we know very well the dynamic in Germany are not really the fastest one, but definitely, the new situation in Germany start to move in a direction where I see Germany potentially in the future being a very interesting market that will have a positive effect, both on the media side, but also maybe on the promoter side. It will not, in that case, a short-term call, but definitely will happen. This is very, very important to remember. Thank you so much. Our next question is from Ian Moore with Bernstein Research. Please proceed. Hi, guys. Thanks. Take a question. Everything you shared on premium hospitality, Paddock Club, really encouraging today. What are you learning, I guess, about supply versus demand dynamics there? You've added a lot of capacity there over the past couple seasons. What are the signals that are giving you confidence that demand for these experiences continues to outpace supply? Stefano, you can take this one. Yeah. Thanks, Derek. Thanks, Ian. I can tell you that today we are talking about the fact that already next year, 2028, we have already allocated for the teams all the Paddock Club hospitality that we have. It's a sign that today we need to see how we can extend, not only in terms of quality, but in terms of pricing, the other offers that the promoters are doing as a joint activity. The signals are all positive, all great. We see our market in a full-strength mode. Also because we don't have to forget that now also the team have solid partners, very important brands that want to invest in Formula 1 through what we are offering on the commercial side. Today are all good. We have new products that are very innovative. The good thing is that I think personally, not personally as Stefano, but as a team in F1, as a good thing because everyone is watching at us on what we are preparing for the future of sports entertainment. Our team is focused on creating even more initiatives to try to be always at the top edge, because today is not only pricing, it's really how we can involve our team and our people, sorry, to leverage what we are today. The signals are super positive, we will not give up in making sure that this positivity will be extended for a longer period as much as we can. Appreciate that. Thank you. Thank you, Stefano. Thank you, Ian, and everybody else for participating today. We look forward to speaking to you more offline and seeing you in the coming weeks. Take care.