FuboTV Inc. (FUBO) Q1 2026 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call highlights improved financial metrics, such as reduced net loss and positive adjusted EBITDA. The Q&A reveals optimism about subscriber growth and synergies from the Hulu+ Live TV combination, despite some uncertainty about guidance metrics. The strong ad revenue growth expectations and strategic partnerships with Disney bolster the positive sentiment. However, the lack of specific guidance metrics might temper enthusiasm slightly. Overall, the combination of strong financial performance, strategic partnerships, and positive subscriber trends suggests a positive stock price movement.
Key Financial Performance
North America Revenue $1.54 billion compared to $1.11 billion in the prior year period. On a pro forma basis, North America revenue was $1.68 billion, compared to $1.58 billion in the prior year, representing growth of 6%. This reflects the scale of the combined platform and continued demand for live TV streaming across both the Fubo and Hulu Live brands.
Net Loss Reported net loss for the quarter was $19.1 million, a meaningful improvement from a $38.6 million loss in the prior year period. On a pro forma basis, net loss improved to $46.4 million compared to $130.4 million last year.
Pro Forma Adjusted EBITDA Positive pro forma adjusted EBITDA of $41.4 million, nearly doubling from $22 million in the prior year period.
Cash and Liquidity Ended the quarter with $458.6 million in cash, cash equivalents and restricted cash. Operating cash flow in the quarter was impacted by working capital timing, particularly a build in accounts receivable following the close of the transaction, which is expected to normalize over subsequent quarters.
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Operating Highlights
Fubo Sports integration with ESPN: Fubo Sports will be included in ESPN's commerce flow, allowing customers to purchase it alongside ESPN Unlimited and other bundles. This integration is expected to drive subscriber growth and reduce customer acquisition costs.
Spanish-language bundles: Record high subscribers for Fubo's Latino product in Q1 2026. Hulu Live launched a Spanish-language bundle, offering two plan options for Spanish-speaking customers.
Hulu Live acquisition: The acquisition of Hulu Live has expanded Fubo's scale and distribution, generating $6.2 billion in revenue and 6.2 million subscribers in North America over the past 12 months.
Ad tech integration: Fubo's ad tech is being migrated into Disney's ad server, expected to improve CPM and fill rates.
Content cost efficiencies: Efforts to achieve cost efficiencies by aligning content costs with increased scale and applying portfolio discipline.
NBCUniversal content negotiations: Discussions with NBCUniversal for content renewal have stalled. Fubo has taken steps to mitigate the impact, including lowering prices and offering alternatives like Peacock.
Reverse stock split: A planned reverse stock split aims to make the stock more accessible to investors and better align with the company's size and scope.
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Risk or Challenges
NBCUniversal Renewal Challenges: Comcast ceased engagement in renewal discussions for NBCUniversal content on the Fubo side, preferring to reengage closer to the Hulu Live expiration. This creates uncertainty in content availability and could impact subscriber retention and satisfaction.
Content Cost Efficiencies: The company is focusing on achieving content cost efficiencies and applying greater portfolio discipline. However, this depends on successful renegotiation of major distribution agreements, which poses a risk if terms are unfavorable or delayed.
Subscriber Base Impact: The removal of NBC content has had a modest impact on subscribers so far, but there is a risk of further subscriber loss if content gaps are not addressed effectively.
Working Capital Timing: Operating cash flow was impacted by working capital timing, particularly a build in accounts receivable following the Hulu Live transaction. This could affect liquidity if not normalized in subsequent quarters.
Reverse Stock Split: The planned reverse stock split aims to make the stock more accessible to investors, but it carries the risk of potential negative market perception or reduced investor confidence.
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Guidance & Outlook
Revenue Growth: The company expects to expand its subscriber base through differentiated sports offerings, scale distribution partnerships, and improved monetization, aiming for long-term value creation for consumers and shareholders.
Ad Tech Integration: Fubo is nearing completion of Stage 1 of its integration plan, migrating Fubo's ad tech into the Disney ad server. This integration is expected to drive a meaningful uplift in both CPM and fill rates.
Content Cost Efficiencies: Stage 3 of the integration plan focuses on achieving content cost efficiencies and applying greater portfolio discipline. The company aims to move towards market-based pricing and penetration that reflects its increased scale during major distribution agreement renewals.
Spanish-Speaking Audience Growth: The company continues to focus on its Spanish-speaking audience, with record-high subscribers on Fubo's Latino product in fiscal Q1 2026. Hulu Live also launched a Spanish language bundle, providing two plan options within the ecosystem.
NBCUniversal Renewal Discussions: The company is reviewing the role of NBCU and Versant portfolios in its content alignment strategy after Comcast ceased renewal discussions. The subscriber impact has been modest, and the company remains open to constructive engagement.
Reverse Stock Split: The company announced a planned reverse stock split of its common stock by the end of fiscal Q2 2026 to make the stock more accessible to a broader base of investors and better align the number of outstanding shares with the company's size and scope.
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Shareholder Return Plan
The selected topic was not discussed during the call.
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Key Q&A
Q:What is Fubo's view on retaining or regaining sports rights, and how does the NBCUniversal issue affect this?
A:Fubo has strong relationships with leagues and major content partners like Disney, Fox, and CBS. Despite losing NBC for over 4 weeks, Fubo's subscribers grew 3% year-over-year. Fubo is focused on providing flexibility and affordable packaging, with over 6 million subscribers, making it the second-largest VMVPD in the U.S. The Latino package has reached an all-time high, and Fubo is working with Disney and Hulu to drive traffic to NBC on Hulu Live.
Q:Does the old forecast for 2026 include revenue and expense synergies, and what are the expectations for fiscal Q2 subscriber growth?
A:The old forecast assumed $120 million+ in synergies, with simplifying assumptions that they took place on day 1. Synergies include ad server integration, content/programming synergies, and procurement. For fiscal Q2, Fubo anticipates positive year-on-year subscriber growth, with strong performance in the Fubo Sports service and high retention rates.
Q:How does the merger with Disney impact Fubo's ability to invest in subscriber growth?
A:The merger provides Fubo with a stronger balance sheet and access to Disney's ecosystem, which reaches hundreds of millions of people annually. Fubo has seen three consecutive quarters of profitability and spent less on marketing in Q4 while maintaining solid subscriber numbers. The company is working closely with Disney teams to identify efficient marketing channels and drive growth.
Q:What is the expected impact of integrating Fubo's ad inventory with Disney's ad server?
A:The integration is expected to have an immediate impact towards the end of the quarter or shortly thereafter. Disney's ad server will sell Fubo's ad inventory alongside its own, leveraging Disney's expertise in selling ads against live networks.
Q:What are the seasonality trends for Fubo's services?
A:Hulu Live is less seasonal compared to Fubo, which is highly seasonal around fall sports. The seasonality of the skinny sports service is not yet clear, but it is not expected to significantly impact overall seasonality.
Q:What is the financial impact of the Hulu Live acquisition on Fubo's reported revenues?
A:The difference between reported and pro forma revenues is due to the late October closing of the Hulu Live acquisition. Reported revenues include three months of Hulu Live and two months of Fubo, with the delta being Fubo's revenue for 28 days of October.
Q:How does Disney's focus on parks and real-world assets affect Fubo?
A:Fubo does not anticipate immediate changes. Disney is still working on unifying its technology stack and app. Fubo is having strong conversations with Disney and ESPN teams to grow the business.
Q:What consumer-centric innovations is Fubo focusing on to close the subscriber gap with YouTube TV?
A:Fubo is focusing on mobile app improvements, leveraging Disney and ESPN's capabilities like fantasy sports and betting, and enhancing the DVR experience for sports. The company aims to develop technology and features that drive engagement and growth.
Q:What is Fubo's stance on re-entering the betting business?
A:Fubo is open to exploring betting opportunities through ESPN, leveraging its strong engineering and product teams. The company is focused on developing ideas that align with Disney's ecosystem.
Q:What is the status of Disney's shelf filing for Fubo shares and the 2-year lockup period?
A:The 2-year lockup period remains in place. The shelf filing was a routine housekeeping item following the Hulu Live closing and does not change the restriction.
Q:What is Fubo's philosophy on providing guidance metrics?
A:Fubo is not providing guidance metrics yet, as it is refining factors like timing and sizing of agreements with ESPN and NBC programming. The company is only 98 days into the combination with Hulu Live and needs more time to provide projections.
Q:Review of Unclear Management Responses
A:Management avoided providing specific guidance metrics, citing the need for more time to refine factors like timing and sizing of agreements with ESPN and NBC programming. Additionally, they did not provide detailed disaggregation of Fubo's performance separate from Hulu Live, making it difficult to isolate Fubo's standalone results.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
ABC CBS
Ameet discussion
Ameet owner
America player
Analysis Corporate
CBS Fox
CPM rate
Comcast Hulu
Comcast engagement
Disney Hulu
Disney ad
ESPN
Fubo Sports
Fubo business
NBCU
Stage plan
action
agreement
audience
business period
efficiency
forma basis
integration
monetization
month Fubo
period result
portfolio
pricing
renewal discussion
result Fubo
result period
scale distribution
spin
subscriber base
synergy
value consumer
FUBO Transcript
FuboTV Inc. (FUBO) Q1 2026 Earnings Call Transcript
Positive2-4
The earnings call highlights improved financial metrics, such as reduced net loss and positive adjusted EBITDA. The Q&A reveals optimism about subscriber growth and synergies from the Hulu+ Live TV combination, despite some uncertainty about guidance metrics. The strong ad revenue growth expectations and strategic partnerships with Disney bolster the positive sentiment. However, the lack of specific guidance metrics might temper enthusiasm slightly. Overall, the combination of strong financial performance, strategic partnerships, and positive subscriber trends suggests a positive stock price movement.
fuboTV Inc. (FUBO) Q3 2025 Earnings Call Transcript
Positive11-3
The earnings call reveals disciplined financial management, with operating expenses nearing revenue parity and a strong liquidity position. The Q&A highlights strategic partnerships, notably with Disney, and positive subscriber growth trends. Despite a decline in free cash flow, the potential synergies from the Hulu + Live deal, along with AI-driven efficiencies and a focus on international expansion, indicate a positive outlook. The market's favorable response to new offerings and strategic maneuvers suggests a stock price increase in the coming weeks.
fuboTV Inc. (FUBO) Q2 2025 Earnings Call Transcript
Unknown8-8
The earnings call highlights a decline in key financial metrics such as North America revenue and subscribers, with a negative outlook for Q2 2025 guidance. Despite the first-ever positive adjusted EBITDA and ongoing strategic developments, the market sentiment is dampened by competitive pressures, declining ad revenue, and unclear guidance on future profitability. The Q&A section reflects concerns about subscriber expectations and the impact of terminated content partnerships. Overall, the negative trends and uncertainties outweigh the positive aspects, leading to a predicted negative stock price movement.
fuboTV Inc. (NYSE:FUBO) Q1 2025 Earnings Call Transcript
Unknown5-3
The earnings call reveals several concerning factors: a decline in subscribers and ad revenue, regulatory uncertainties, and challenges in content licensing. Despite improved financial metrics like EPS and net income, the guidance suggests further declines in both subscribers and revenue. The Q&A section highlighted vague responses about key issues, adding to the uncertainty. The lack of a share repurchase program and declining margins also weigh negatively. Overall, the negative aspects outweigh the positives, leading to a negative sentiment prediction.
FUBO Report
Frequently Asked Questions
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