10-Q: FuboTV Reports Q1 2026 Results Post-Hulu Live Merger

FuboTV Inc. reports significant revenue growth and improved net loss in its first quarter post-Hulu Live Business combination, despite a slight decline in total subscribers.

Summary

• FuboTV Inc. completed its Business Combination with the Hulu Live Business on October 29, 2025, with Hulu Live Business treated as the accounting acquirer.
• Total revenues for the three months ended December 31, 2025, increased to $1,548.7 million, up from $1,106.0 million in the prior year period.
• Net loss attributable to common shareholders significantly improved to $(6.0) million for the three months ended December 31, 2025, compared to $(38.6) million in the prior year period.
• Operating loss improved to $(20.3) million for the three months ended December 31, 2025, from $(38.6) million in the prior year period.
• Gross Profit surged to $112.0 million with a Gross Margin of 7.2% for the three months ended December 31, 2025, compared to $3.5 million and 0.3% respectively, in the prior year period.
• North America Total Subscribers decreased slightly to 6.2 million as of December 31, 2025, from 6.3 million in the prior year.
• Rest of World Total Subscribers also saw a slight decrease to 0.33 million as of December 31, 2025, from 0.36 million in the prior year.
• The company issued a $145.0 million senior unsecured term loan (Disney Note) from an affiliate of The Walt Disney Company on January 5, 2026, to repurchase $140.2 million of its 2026 Convertible Notes.
• A reverse stock split of Class A and Class B common stock, at a ratio between 1-for-8 and 1-for-12, was approved by Hulu (majority voting interest) on February 3, 2026, with the effective date yet to be determined.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this filing as moderately positive. The significant improvements in net loss, operating loss, and gross margin, largely driven by the Hulu Live Business combination, demonstrate a stronger financial foundation. However, the slight decline in subscriber numbers and the emergence of a new antitrust lawsuit introduce elements of caution, preventing a higher score.

Positives

• Total revenues increased by $442.7 million to $1,548.7 million for the three months ended December 31, 2025, primarily driven by the Business Combination.
• Net loss attributable to common shareholders significantly improved to $(6.0) million, a substantial reduction from $(38.6) million in the prior year period.
• Operating loss improved to $(20.3) million, down from $(38.6) million in the prior year period.
• Gross Profit increased dramatically to $112.0 million from $3.5 million, with Gross Margin improving to 7.2% from 0.3% in the prior year period.
• The company secured a $145.0 million senior unsecured term loan from an affiliate of Disney, which was used to repurchase a significant portion ($140.2 million) of its 2026 Convertible Notes, improving its debt profile.

Negatives

• North America Total Subscribers decreased from 6.3 million to 6.2 million year-over-year.
• Rest of World Total Subscribers decreased from 0.36 million to 0.33 million year-over-year.
• The company continues to incur operating losses, with a net loss of $(19.1) million for the quarter.
• Revenue is subject to significant concentration risk, with related party revenue (from Hulu) accounting for a large portion of total revenue ($1,160.4 million out of $1,548.7 million).
• Sales and marketing expenses increased significantly to $59.3 million from $2.2 million, primarily due to the Fubo Services integration.

Risks

• The company has incurred operating losses in the past and expects to incur them in the future, and may never achieve or maintain profitability.
• Additional capital may be required to meet financial obligations and support planned business growth, and this capital might not be available on acceptable terms or at all.
• Revenue is subject to seasonality, and if subscriber behavior during certain seasons falls below expectations, the business may be harmed.
• Operating results may fluctuate, making them difficult to predict.
• Failure to effectively manage growth could adversely affect the business, operating results, and financial condition.
• The integration of the historical Fubo business and the Hulu Live Business presents challenges that may result in failure to achieve the anticipated benefits of the Business Combination.
• The long-term nature of certain content commitments may limit operating flexibility and could adversely affect liquidity and results of operations.
• Results may be adversely affected if long-term content contracts are not renewed on sufficiently favorable terms.
• If efforts to attract and retain subscribers are not successful, the business will be adversely affected.
• Agreements with certain distribution partners may contain parity obligations which limit the ability to pursue unique partnerships.
• If content providers refuse to license streaming content or other rights upon terms acceptable to the company, the business could be adversely affected.
• Content providers impose restrictions on how products and services are distributed and marketed, which can adversely affect the business.
• Reliance upon Google Cloud Platform and Amazon Web Services means any disruption or interference would impact operations and adversely affect the business.
• Key metrics and other estimates are subject to inherent challenges in measurement, and real or perceived inaccuracies may seriously harm reputation and business.
• Preparing and forecasting financial results requires judgments and estimates which may differ materially from actual results, and failure to meet guidance could cause stock price decline.
• TV streaming is highly competitive, and failure to differentiate and compete successfully will make it difficult to attract or retain subscribers.
• If the technology used in operating the business fails, is unavailable, or does not operate to expectations, the business and results of operation could be adversely impacted.
• Changes in government regulations relating to the Internet or other business areas may require altering business conduct and incurring greater operating expenses.
• The company is subject to taxation-related risks in multiple jurisdictions.
• Legal proceedings could cause unforeseen expenses and occupy significant management time and attention.
• Inability to successfully expand international operations, or international expansion plans, will subject the company to a variety of economic, political, regulatory and other risks.
• The impact of worldwide economic conditions may adversely affect the business, operating results, and financial condition.
• Subject to legal requirements and obligations regarding privacy, security, consumer protection and data protection, any actual or perceived failure to comply could have an adverse effect on reputation, business, financial condition and operating results.
• Significant interruptions, delays or discontinuations in service or disruptions in or unauthorized access to information technology systems could result in loss or degradation of service, unauthorized data disclosure, or theft of intellectual property.
• The interests of Hulu, the controlling stockholder, may differ from the interests of other stockholders.
• The company cannot predict the impact its capital structure and the concentrated control by Hulu may have on its stock price or business.
• The company is exempt from certain corporate governance requirements as a controlled company, reducing protections for other stockholders.
• If a substantial number of shares become available for sale and are sold in a short period of time, the market price of Class A Common Stock could decline.
• Corporate opportunity provisions in the Certificate of Incorporation could enable certain directors, principals, officers, employees, members and/or other representatives of Hulu and its affiliates, including Disney, to benefit from corporate opportunities that might otherwise be available to the company.
• Directors may have actual or potential conflicts of interest because of their equity interest in Disney or being Disney employees.
• Anti-takeover provisions in governing documents and under Delaware law could make an acquisition more difficult, limit attempts by stockholders to replace or remove current management, and depress the market price of Class A Common Stock.
• The exclusive forum provisions in the Certificate of Incorporation could increase costs to bring a claim, discourage claims or limit the ability of stockholders to bring a claim in a judicial forum viewed as more favorable.
• The company has no plans to declare any cash dividends on its common stock in the foreseeable future.
• Future sales and issuances of capital stock could reduce the stock price and any additional capital raised may dilute ownership.
• If few securities or industry analysts publish research or reports, or if they publish adverse or misleading research or reports, stock price and trading volume could decline.
• Insurance may not provide adequate levels of coverage against claims.

Future Outlook

The company expects to primarily use its existing cash and cash equivalents, and cash flows from operations, to fund its operations for at least the next twelve months. Future capital requirements will depend on factors such as subscriber attraction and retention, and competition. The company may seek additional capital to fund tax distributions, payments under the Tax Receivables Agreement, potential redemptions by Hulu, debt repurchases, or to strengthen its balance sheet, but there is no assurance such financing will be available on favorable terms.

Management Comments

• Our mission is to deliver premium sports, news, and entertainment programming through a best-in-class user experience that offers greater choice, flexibility, and value.
• We seek to serve consumers across the demand curve, offering multiple plan options from skinny packages to more robust packages at varying price points.
• We leverage sporting events and other popular news and entertainment programming to acquire subscribers at efficient acquisition costs.
• We drive our business model with three core strategies: grow our paid subscriber base, optimize content portfolio and engagement to improve unit economics, and drive monetization through subscription pricing, attachment sales, and advertising.

Industry Context

StockSavvy.ai notes that FuboTV's Business Combination with Hulu Live positions it as a more significant player in the highly competitive live TV streaming market, directly addressing the ongoing trend of 'cord-cutting' from traditional Pay TV. The increased revenue and improved profitability metrics suggest a potentially stronger competitive stance post-merger, leveraging a broader content portfolio. However, the slight decline in total subscribers across both North America and Rest of World indicates that subscriber acquisition and retention remain a significant challenge in a market saturated with large technology and entertainment companies like Google (YouTube TV) and Amazon (Prime Video), as well as traditional media players adapting to streaming.

Comparison to Industry Standards

• The filing does not provide specific comparisons to industry benchmarks or named competitors' projects and results. It broadly discusses the competitive landscape with other streaming services and traditional Pay TV providers.

Management Changes

Corporate Governance

Legal Proceedings

• DISH Technologies, LLC, et al. v. fuboTV Media Inc.: Patent infringement lawsuit where DISH alleges FuboTV Media infringes eight patents. PTAB has held the majority of challenged claims unpatentable, and all claims of the remaining three patents unpatentable. Appeals are pending, and the district court case is stayed.
• Video Privacy Protection Act (VPPA) Matters: Class action complaints alleging the company shared subscribers' personally identifiable information. A settlement agreement for $3,400,000 received final court approval on October 8, 2025. Other related cases were voluntarily dismissed.
• DISH Network L.L.C. vs. FuboTV Inc. and FuboTV Media: Antitrust counterclaims filed on January 2, 2026, by DISH against FuboTV Inc., FuboTV Media, Disney, and other Disney-affiliated companies. The counterclaims assert violations of Section 1 of the Sherman Act and Section 7 of the Clayton Act based on Disney's acquisition of a controlling share of Fubo, seeking injunctive relief (unwinding the acquisition) and monetary damages. Fubo's response is due February 20, 2026.

Related Party Transactions

• Business Combination: On October 29, 2025, FuboTV Inc. combined its existing business with the Hulu Live Business, resulting in Hulu holding a 70% economic interest in Newco and a 70% voting interest in FuboTV Inc.
• Commercial Agreement with Hulu: FuboTV Inc. granted Hulu the right to distribute the Hulu Live Service on a wholesale basis, with Hulu paying fees initially equal to 95% of carriage fee expenses for calendar years 2025 and 2026, escalating to 99% by 2028 and thereafter.
• Advertising Sales: Certain affiliates of Disney exclusively sell ads on behalf of FuboTV Inc. for the Fubo Services and Hulu Live Service, remitting 100% of revenue to FuboTV Inc. net of a 15% ad agency fee.
• Marketing Support: FuboTV Inc. bears all marketing expenses for the Hulu Live Business and pays Hulu a marketing support fee equal to 10% of the Hulu Live Business's marketing budget.
• Tax Receivables Agreement (TRA): FuboTV Inc. is obligated to make cash payments to Hulu for certain tax benefits realized (or deemed realized), including a percentage of historic net operating loss carryforwards utilized and tax basis adjustments from Newco Unit redemptions/exchanges.
• Disney Note: On January 5, 2026, FuboTV Inc. borrowed $145.0 million from Disney Enterprises, Inc., an affiliate of The Walt Disney Company, under a senior unsecured term facility.

Stakeholder Impact

• Shareholders: Existing Class A common stockholders face potential dilution from future equity issuances and the concentrated voting control of Hulu (Disney) may limit their influence on corporate decisions. The approved reverse stock split could affect per-share price and liquidity.
• Employees: Key personnel, including executive officers, received retention awards (cash and restricted stock units) to incentivize continued employment following the Business Combination.
• Customers: The Business Combination aims to provide a broader content offering and improved user experience, but subscriber declines in both North America and Rest of World suggest ongoing challenges in retention and acquisition.
• Creditors: The company's debt profile is impacted by the repurchase of 2026 Convertible Notes using proceeds from the Disney Note, and the 2029 Convertible Notes remain outstanding. The new antitrust lawsuit could create financial liabilities.
• Content Providers: The company's ability to renew long-term content contracts on favorable terms is critical, and content providers' strategies (e.g., launching their own DTC services) could impact FuboTV's content mix and costs.

Next Steps

• Repay the remaining $4.5 million aggregate principal amount of 2026 Convertible Notes outstanding at maturity on February 15, 2026.
• Fubo's response to DISH's antitrust counterclaims is due on February 20, 2026.
• The effective date of the approved reverse stock split (ratio 1-for-8 to 1-for-12) has not yet been determined.
• The company is evaluating the effects of recently issued accounting standards (ASU 2023-09, ASU 2024-03, ASU 2025-01, ASU 2024-04, ASU 2025-03, ASU 2025-05, ASU 2025-06).

Key Dates

Recommendation

The filing presents a mixed but generally improving financial picture post-merger. The significant reduction in net loss and substantial increase in gross profit and margin are strong positives, indicating the Business Combination is having a favorable impact on profitability. However, the slight decline in total subscribers in both North America and Rest of World is a concern, suggesting ongoing challenges in a highly competitive streaming market. The new antitrust lawsuit from DISH Network, seeking to unwind the Disney acquisition of Fubo, introduces significant legal and operational uncertainty. While the financial improvements are notable, the subscriber trend and the new legal challenge warrant a cautious 'hold' recommendation, as investors should monitor the resolution of these issues and the company's ability to reignite subscriber growth.

Keywords

FuboTV, Hulu Live, Streaming, Live TV, Entertainment, Sports, Advertising, Q1 2026, Earnings, Financial Results, Media, Subscriber, Business Combination, Convertible Notes, Disney, SEC Filing