FuboTV Inc.

What they do

FuboTV operates live TV streaming services under Fubo and Hulu Live brands in the U.S., offering sports, news, and entertainment content. Outside the U.S., it operates in Canada, France, and Spain. The company monetizes through subscription fees, advertising, and a wholesale fee arrangement with Hulu under a Commercial Agreement.

Revenue drivers

• Subscription services (Fubo and Hulu Live) — Primary revenue source, driven by subscriber growth and pricing across multiple plan tiers. Post-combination, pro forma combined revenue exceeded $6 billion last fiscal year.
• Advertising — Digital advertising on both Fubo and Hulu Live platforms. Revenue benefits from migration to Disney Ad Server, improving CPM rates and capacity utilization.
• Wholesale fee arrangement with Hulu — Under the Commercial Agreement, Hulu pays fees equal to 95% of Hulu Live's carriage fee expenses in 2025-2026, escalating to 97.5% in 2027 and 99% in 2028 and thereafter.
• International operations — Live TV streaming services in Canada, France, and Spain contribute to revenue but are smaller than U.S. operations.

Recent performance

For the quarter ended June 30, 2026, revenue was $1.48 billion. Subscriber growth was strong, driven by events like the NBA Finals and FIFA World Cup 2026. The company reported net losses for fiscal year 2024 of $172.3 million, improving from a $287.5 million net loss in 2023. Operating cash flow improved to -$79.5 million in 2024 from -$177.6 million in 2023. As of June 30, 2026, cash and equivalents were $230.3 million, with total assets of $3.94 billion and total liabilities of $1.30 billion.

Strategy

The company aims to grow its paid subscriber base across Fubo and Hulu Live offerings, optimize content and product features to improve unit economics and subscriber lifetime value, and drive monetization through pricing, attachments, and advertising. Management emphasizes leveraging first-party data for personalization and engagement, and capitalizing on the Disney relationship for subscriber acquisition (e.g., ESPN 'Where-to-Watch') and ad technology. They also plan to deliver a strategic update on the November earnings call.

Risks

• History of operating losses — The company has incurred losses since inception and expects future operating losses; net loss on continuing operations for 2024 was $177.8 million, and profitability may never be achieved.
• Potential need for additional capital — The company may require additional capital to meet financial obligations and support growth, which might not be available on acceptable terms or at all.
• Integration and execution risks from Business Combination — The combination with Hulu Live involves significant integration, and any difficulties could harm operations and financial results.
• Dependence on Hulu and Disney relationship — A significant portion of revenue is tied to the Commercial Agreement with Hulu, and the company's advertising and acquisition strategies rely on Disney's platforms and ad server.

Outlook

Management is optimistic about subscriber momentum and the benefits of the Disney relationship, expecting continued growth from features like ESPN 'Where-to-Watch' and Disney's planned Live TV integration with Disney+. The new CEO plans to share a strategic update in November, focusing on accelerating growth and driving profitability. The company believes its position as a leading virtual Pay TV provider provides strong foundations for future growth.