Mercedes nears F1’s first $1bn revenue season

Mercedes is closing in on a financial first for Formula 1 after reporting £633.38 million in revenue and £166.71 million in operating profit for 2025, putting the team on a path that could take annual income beyond $1 billion as early as 2026.

The Brackley-based team’s latest accounts showed revenue up slightly from £632.11 million the previous year, with the biggest share coming from commercial activity. Sponsorship and licensing generated £415.0 million, underlining how heavily Mercedes now relies on its partner portfolio as much as its results on track.

That commercial base has kept growing. Mercedes has expanded to 24 premium global-brand partners, with Adidas, Meta AI and Nasdaq among the additions, and a major Microsoft deal from 2026 is estimated to be worth about $60 million per year. Those agreements are expected to play a central role in pushing the team toward the billion-dollar mark.

The headline revenue rise in 2025 was modest, but the timing of Formula 1 prize-money payments is a big part of the explanation. Team distributions are paid with a one-year delay, so the 2025 accounts were still shaped by Mercedes finishing fourth in the 2024 Constructors’ Championship. Its second-place finish in the 2025 standings is expected to feed into the 2026 financial year instead, giving the next set of accounts more upside.

Profitability also improved. Operating profit rose from £156.15 million to £166.71 million, helped in part by lower driver personnel costs after Lewis Hamilton left for Ferrari and Andrea Kimi Antonelli made his F1 debut in 2025.

The final step to $1 billion is not entirely in Mercedes’ hands. The team’s share of Formula 1 commercial-rights income could yet be affected by disruption to the calendar, with the Bahrain and Saudi Arabian Grands Prix cancelled and the Qatar and Abu Dhabi rounds still uncertain. Those Middle East races are tied to hosting-fee income worth several tens of millions of dollars, which has a direct effect on the amount distributed to teams.

If Mercedes turns its current position as a leading Constructors’ title contender into the championship, the jump in prize and commercial-rights income would significantly strengthen its chances of becoming the first F1 team to clear $1 billion in annual revenue.