DEFA14A: FuboTV Achieves First Positive Adjusted EBITDA in Q2 2025

FuboTV Inc. reported its second quarter 2025 financial results, exceeding revenue and subscriber guidance and achieving its first-ever quarter of positive Adjusted EBITDA.

Summary

• Global revenue for Q2 2025 was $380.0 million, a 2.8% decrease year-over-year, but exceeded guidance.
• North America revenue was $371.3 million, down 3.0% year-over-year, while Rest of World revenue increased 4.7% to $8.7 million.
• North America paid subscribers totaled 1.356 million, a 6.5% decrease year-over-year, and Rest of World subscribers were 349,000, down 12.5% year-over-year, both exceeding guidance.
• Net loss from continuing operations significantly improved to $8.0 million, compared to a $25.8 million loss in Q2 2024.
• Achieved first-ever positive Adjusted EBITDA of $20.7 million, a $31.7 million improvement from Q2 2024.
• Adjusted EPS was $0.05, a favorable shift from an Adjusted EPS loss of $0.04 in Q2 2024.
• Filed a preliminary proxy statement for shareholder approval of the proposed business combination with Hulu + Live TV, projected to close in Q4 2025 or Q1 2026.
• Launched Pay-Per-View events in June, offering premium sporting events to both subscribers and non-subscribers.
• Expanded content portfolio with a multi-year extension for English Premier League in Canada and a new U.S. agreement for European League of Football games.
• Entered a reciprocal U.S. content partnership with DAZN, distributing DAZN1 on Fubo and Fubo Sports Network on DAZN.
• Introduced and refined personalized product features like Catch Up to Live, Game Highlights, and Timeline Markers, driving increased user engagement.

Sentiment

Score: 8

Explanation: The sentiment is highly positive due to the achievement of the first-ever positive Adjusted EBITDA, significant improvement in net loss, and exceeding guidance for both revenue and subscribers. Strategic initiatives like the Hulu + Live TV merger and new content partnerships further bolster the positive outlook, despite some year-over-year declines in top-line metrics.

Positives

• Achieved first-ever positive Adjusted EBITDA of $20.7 million, a significant financial milestone.
• Net loss from continuing operations improved substantially to $8.0 million from $25.8 million year-over-year.
• Adjusted EPS turned positive at $0.05, compared to a loss of $0.04 in the prior year quarter.
• Exceeded both revenue and paid subscriber guidance ranges for North America and Rest of World.
• Total operating expenses decreased by 9.5% year-over-year to $386.0 million, demonstrating cost discipline.
• Strategic business combination with Hulu + Live TV is progressing, with a preliminary proxy statement filed.
• Expanded content offerings through partnerships with English Premier League (Canada), European League of Football (U.S.), and DAZN (U.S.).
• Launched new product features (Catch Up to Live, Game Highlights, Timeline Markers) that have driven increased time spent on the platform.
• Ended the quarter with $289.7 million in cash, cash equivalents, and restricted cash on hand.

Negatives

• Global revenue declined 2.8% year-over-year to $380.0 million.
• North America paid subscribers decreased by 6.5% year-over-year to 1.356 million.
• Rest of World paid subscribers decreased by 12.5% year-over-year to 349,000.
• North America ad revenue declined 2% year-over-year to $25.5 million, attributed to the removal of certain ad-insertable content.
• Net cash used in operating activities increased slightly to -$34.6 million from -$31.874 million year-over-year.
• Free Cash Flow decreased slightly to -$37.7 million from -$35.3 million year-over-year.

Risks

• Ability to achieve or maintain profitability.
• Access to capital and fundraising prospects to fund financial operations and planned business growth.
• Revenue and gross profit are subject to seasonality.
• Operating results may fluctuate.
• Ability to effectively manage growth.
• Risks related to the pending business combination with Hulu + Live TV.
• Long-term nature of content commitments and ability to renew contracts on favorable terms.
• Ability to attract and retain subscribers.
• Obligations imposed by agreements with certain distribution partners.
• Potential inability to license streaming content or other rights on acceptable terms.
• Restrictions imposed by content providers on distribution and marketing.
• Reliance on third-party platforms for certain business aspects.
• Difficulty in measuring key business metrics.
• Risks related to preparing and forecasting financial results.
• Highly competitive nature of the industry.
• Technology, cybersecurity, and data privacy-related risks.
• Ongoing or future legal proceedings, including antitrust and data privacy litigation.
• Effects of industry, market, economic, political, or regulatory conditions, future exchange and interest rates, and changes in tax and other laws.

Future Outlook

The company anticipates launching 'Fubo Sports,' a focused service at an attractive price point, in the coming weeks. The proposed business combination with Hulu + Live TV is projected to close in the fourth quarter of calendar year 2025 or the first quarter of calendar year 2026, subject to regulatory and shareholder approvals. Fubo expects to continue innovating its sports entertainment streaming platform and diversifying its content portfolio.

Management Comments

• David Gandler, co-founder and CEO: "The second quarter of 2025 marked a pivotal milestone in Fubos business. Our continued focus on delivering choice and flexibility to consumers positions us well to capitalize on emerging opportunities as the traditional content landscape continues to evolve."
• Edgar Bronfman Jr., executive chairman: "We are pleased with our second quarter results including top-line outperformance. We continue to innovate our sports entertainment streaming platform striving for unparalleled product quality and a frictionless content experience, and look forward to keeping shareholders updated on our progress."

Industry Context

Fubo's results reflect the ongoing evolution of the streaming industry, where traditional cable TV replacement services face intense competition and content cost pressures. The company's strategic focus on sports content, personalized features, and the pursuit of the Hulu + Live TV merger aim to differentiate it in a crowded market. Achieving positive Adjusted EBITDA is a significant step towards sustainable profitability, a key challenge for many streaming platforms. The decline in North American subscribers, despite exceeding guidance, indicates continued churn or slower growth in a mature market, while the growth in Rest of World revenue suggests potential in international expansion.

Legal Proceedings

• Certain litigation expenses for antitrust and data privacy litigation are included in the Adjusted EBITDA reconciliation, indicating ongoing legal matters.

Stakeholder Impact

• Shareholders: Potential positive impact from improved profitability (first positive Adjusted EBITDA) and strategic growth through the Hulu + Live TV merger, though dilution and integration risks exist. Improved net loss and positive Adjusted EPS are favorable.
• Customers: Enhanced content options through new partnerships (EPL, ELF, DAZN) and product features (PPV, Catch Up to Live, Game Highlights) aim to improve user experience and choice.
• Employees: The ongoing business combination with Hulu + Live TV could lead to integration efforts and potential organizational changes.
• Content Partners: Strengthened relationships through multi-year extensions and reciprocal distribution agreements (e.g., DAZN).

Next Steps

• Launch 'Fubo Sports' in the coming weeks.
• Seek Fubo shareholder approval for the business combination with Hulu + Live TV.
• Obtain regulatory approvals and satisfy other customary closing conditions for the Hulu + Live TV transaction.
• Close the business combination with Hulu + Live TV, anticipated for Q4 2025 or Q1 2026.
• Host a live conference call with CEO David Gandler and CFO John Janedis on August 8, 2025, at 8:30 a.m. ET to discuss results and answer questions.
• File the Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, with the SEC.

Key Dates

Recommendation

The achievement of the first-ever positive Adjusted EBITDA is a pivotal moment, signaling improved operational efficiency and a clearer path to sustainable profitability. While subscriber and revenue growth showed year-over-year declines, the company significantly exceeded its own guidance, indicating strong execution. The pending business combination with Hulu + Live TV represents a transformative strategic move that could substantially increase market share and content offerings. For a seasoned investor, this filing suggests Fubo is turning a corner financially and strategically, making it an attractive 'buy' for those looking for growth in the evolving streaming landscape, despite inherent industry risks.

Keywords

FuboTV, FUBO, Streaming, Live TV, Sports Streaming, Q2 2025 Earnings, Adjusted EBITDA, Hulu Live TV Merger, Subscriber Growth, Financial Results, Content Partnerships, Ad Revenue, Streaming Platform