FUBO — fuboTV Inc.

Fubo Q2 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Revenue: $1.566 billion, up from $1.125 billion year-over-year. Pro forma revenue showed a modest 1% growth compared to $1.556 billion in the prior year.
• Subscribers: Total subscribers decreased to 5.7 million from 5.9 million in the prior year.
• Net Loss: Reported at $6.2 million, significantly improved from a loss of $40.9 million in the prior year. Pro forma net income in the prior year was $120.6 million, boosted by a litigation settlement.
• Earnings Per Share: Loss of $0.07.
• Adjusted EBITDA: $37.7 million, a substantial increase from pro forma adjusted EBITDA of $1.4 million in the prior year.
• Cash Position: Ended the quarter with $244 million in cash and equivalents, expecting to maintain over $200 million by year-end.

2. Strategic Updates and Business Highlights

• Business Combination: The merger with Hulu + Live TV is seen as a strategic advantage, allowing for flexible content packaging and diversified offerings, including Fubo Latino and Hulu + Live TV Español.
• Advertising Strategy: Migration to Disney's ad server has led to improved fill rates and CPMs, with expectations of further benefits as the transition completes by year-end.
• Product Innovation: Introduction of an AI Assistant for enhanced user engagement and content discovery, expected to launch in fall 2026.
• Content Strategy: Successfully navigated the loss of NBCU content with minimal churn, leveraging partnerships with Hulu for continued access to popular programming.

3. Forward Guidance and Outlook

• Fiscal 2026 Adjusted EBITDA Guidance: Expected to be between $80 million and $100 million.
• Long-term Target: Aiming for at least $300 million in adjusted EBITDA by 2028, supported by a contractual increase in wholesale fees from Hulu + Live TV.
• Free Cash Flow: Anticipated to be positive in fiscal 2027 and 2028.

4. Bad News, Challenges, or Points of Concern

• Subscriber Decline: A decrease in total subscribers from the prior year raises concerns about growth sustainability.
• Seasonality: The business is expected to experience a seasonal decline in the second half of the fiscal year, which may impact overall performance.
• Content Cost Structure: While there are expectations for improved content cost leverage, the timing of benefits from scale is uncertain, with renewals taking longer to materialize.

5. Notable Q&A Insights

• Advertising Market: Early indicators show positive trends in ad monetization post-migration to Disney's platform, with expectations of CPMs converging with Hulu Live.
• Subscriber Growth Strategy: Emphasis on leveraging the combined offerings of Fubo and Hulu to drive subscriber growth, particularly through competitive pricing.
• Retention Rates: Retention has improved despite the loss of NBCU content, with reactivations strong during the baseball season.
• AI Impact: AI is being integrated into operations, with 35% of coding now AI-assisted, aiming to enhance efficiency and user experience.

Overall, Fubo's Q2 2026 results reflect a strong operational performance with significant improvements in profitability metrics, although challenges remain in subscriber growth and content cost management. The company is optimistic about future growth driven by strategic initiatives and product innovations.