fuboTV Q2 Earnings Call Highlights

Key Points

• fuboTV posted its strongest Q2 on an adjusted EBITDA basis, reporting $37.7 million in adjusted EBITDA and a much smaller net loss of $6.2 million. Management also said pro forma trailing-12-month adjusted EBITDA topped $100 million and reaffirmed its goal of at least $300 million by 2028.
• Revenue and subscriber trends were mixed after the Hulu + Live TV deal. North American revenue rose to $1.566 billion on a reported basis, but pro forma growth was only 1%, while total North American subscribers fell to 5.7 million from 5.9 million a year earlier.
• The company sees further margin improvement from ad-tech migration and contractual economics. Fubo is migrating ads to Disney’s ad server, which is already improving fill rates and CPMs, while a wholesale fee tied to Hulu + Live TV carriage costs is expected to rise from 95% in 2026 to 99% by 2028.

fuboTV NYSE: FUBO reported what executives described as its strongest second quarter on an adjusted EBITDA basis, as the company completed its first full quarter following its business combination with Hulu + Live TV and outlined plans to use broader packaging, advertising integration and product technology to drive growth.

Co-founder and CEO David Gandler said Fubo exceeded $100 million in pro forma adjusted EBITDA on a trailing 12-month basis, which he called an “important milestone” supporting the company’s long-term target of at least $300 million in adjusted EBITDA by 2028. He also said the company achieved record quarterly revenue, supported by the expansion of Fubo and Hulu + Live TV offerings, differentiated content and product innovation.

Revenue rises on reported basis, pro forma growth modest

CFO John Janedis said North American revenue for the second quarter of fiscal 2026 was $1.566 billion, compared with $1.125 billion in the prior-year period. On a pro forma basis, prior-year revenue was $1.556 billion, representing 1% year-over-year growth.

Fubo ended the quarter with 5.7 million total North American subscribers, compared with 5.9 million in the prior-year period. Janedis said the company will discuss results on both an as-reported and pro forma basis to help investors compare periods following the Hulu + Live TV transaction.

The company reported a second-quarter net loss of $6.2 million, compared with a reported net loss of $40.9 million in the prior-year period. Pro forma net income in the prior-year period was $120.6 million, which Janedis said was positively affected by a $220 million net gain related to litigation settlement. Earnings per share for the quarter reflected a loss of $0.07.

Adjusted EBITDA was $37.7 million in the quarter, compared with pro forma adjusted EBITDA of $1.4 million in the prior-year period. Fubo ended the quarter with $244 million in cash equivalents and restricted cash, and management said it still expects to finish the year with more than $200 million of cash on the balance sheet.

Management reaffirms EBITDA and cash flow outlook

Janedis said Fubo continues to expect fiscal 2026 pro forma adjusted EBITDA of $80 million to $100 million and at least $300 million in fiscal 2028. The company also expects positive free cash flow in fiscal 2027 and fiscal 2028 under its current operating plan.

He said the outlook is supported in part by the company’s commercial agreement tied to Hulu + Live TV carriage costs. Under that agreement, Fubo receives a wholesale fee relative to Hulu + Live TV’s carriage cost, currently 95% in calendar 2026 and scaling to 99% by 2028. Janedis said that contractual step-up provides visibility into the company’s expected earnings profile and adjusted EBITDA expansion.

During the analyst question-and-answer session, Drew Crum of B. Riley asked why the company’s first-half adjusted EBITDA of $79 million implied a step-down in the second half based on full-year guidance. Gandler said Fubo’s sports-focused business is seasonal, with 40% to 50% of gross additions typically generated in the final fiscal quarter, and said the company expects to spend more on marketing while balancing profitability and growth. Janedis added that the second quarter included a $6.5 million above-the-line tax-related benefit.

Advertising migration to Disney platform shows early gains

Gandler said Fubo began migrating its advertising business to the Disney ad server in February and is seeing early benefits, including increases in fill rates and CPMs.

In response to a question from Kutgun Maral of Evercore ISI, Janedis said the migration had been underway for less than 90 days and that Fubo had already seen improvement in both CPMs and fill rate, the key components of advertising ARPU. He said CPM improvement came faster than expected and that the migration is expected to be fully completed by the end of the year. At that point, he said, Fubo ad ARPU is expected to converge with Hulu + Live TV’s.

Janedis said the largest component of adjusted EBITDA improvement will come from the contractual wholesale fee increase from 95% to 99%, while advertising monetization improvement is tracking in line with or better than expectations.

Fubo highlights flexible packaging and sports strategy

Gandler said the Hulu + Live TV combination expands Fubo’s strategic position by allowing the company to offer a range of content packages at different price points. He said the company is focused on serving distinct consumer segments rather than relying on a single bundle.

He pointed to Spanish-language offerings as one example. Fubo now offers Fubo Latino, a lighter bundle without Univision, and Hulu + Live TV Español, a more comprehensive package launched during the quarter that includes Univision. Gandler also cited Fubo Sports, the core Fubo bundle and Hulu + Live TV’s broader entertainment package.

Gandler said the company believes it “successfully navigated” the loss of NBCU on Fubo, including during a period in which NBC held significant February sports programming. He said customers continued to access that content through Hulu + Live TV and that incremental churn at the combined business during the quarter was minimal.

Asked by Brent Penter of Raymond James about regional sports networks, Gandler said Fubo added 14 local baseball teams in a short period of time, along with the Dodgers, Braves and Mets before opening day. He said those additions helped offset subscriber losses tied to the NBCU drop and that Fubo remains focused on its position in local sports.

On World Cup opportunities, Janedis said the event may provide an incremental opportunity, particularly for Fubo Sports because of its lower price point. He said prior World Cups had not had a major impact on ad revenue, but this year the company has several sponsorships and may benefit from a more favorable time zone. He said the marketing team expects an uplift in trials, with potential upside based on conversion.

AI assistant planned for fall launch

Gandler said Fubo plans to launch its first AI conversational feature within the Fubo app this fall, beginning with sports. The AI assistant is expected to allow customers to use natural voice commands to search DVR content for game highlights and recommendations.

He said Fubo expects to add the assistant first to Roku, Apple TV and mobile apps, with plans to extend it later to news and entertainment talk shows. Gandler described the conversational layer as a potential next phase of aggregation, saying discovery itself can become part of the product.

In response to a question from Laura Martin of Needham & Company, Gandler said about 35% of Fubo’s code is now completed with AI and that roughly 200 employees use ChatGPT or Claude Code to improve effectiveness and efficiency. He said some top engineers “actually don’t code anymore,” though he noted there is still a learning curve.

Gandler said the company’s international efforts are likely to be placed on the back burner following the Hulu + Live TV combination, as management focuses on domestic growth and near-term initiatives tied to the combined business.

About fuboTV NYSE: FUBO

fuboTV Inc is a sports-focused live TV streaming platform that provides subscribers with access to a broad range of televised sports, news and entertainment programming. The service offers tiered channel packages featuring major networks such as ESPN, Fox Sports, NBC and regional sports networks, along with bundled options for premium channels and international programming. A core element of fuboTV's proposition is its cloud DVR functionality, which enables users to record live events and store them for later viewing.

In addition to its live television offerings, fuboTV has developed an in-house ad-supported streaming network—fubo Sports Network—that delivers original sports news, analysis and highlights.

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