Fubo expects positive EBITDA for first time after Q2 2025 performance

FuboTV announced preliminary second quarter 2025 financial results on July 29, 2025, revealing the company's first quarter of positive Adjusted EBITDA. The streaming platform expects to achieve at least $20 million in positive Adjusted EBITDA, marking an improvement of at least $30 million year-over-year. This milestone comes as the company prepares for its merger with Disney's Hulu + Live TV service, announced on January 6, 2025.

The preliminary results show total North American revenue expected to exceed $365 million. Prior guidance was $345 million total revenue at the midpoint. Second quarter paid subscribers are expected to exceed 1.350 million, surpassing prior guidance of 1.240 million paid subscribers at the midpoint. Rest of World operations also outperformed expectations, with revenue expected to exceed $8.5 million against prior guidance of $7 million at the midpoint. Rest of World paid subscribers are expected to exceed 340,000, compared to prior guidance of 330,000 paid subscribers.

The company's second quarter net loss is expected to be approximately $8 million, representing an improvement of approximately $18 million year-over-year. Fubo is expected to end the quarter with at least $285 million in cash, cash equivalents and restricted cash.

David Gandler, Co-founder and CEO, will host a conference call on August 8, 2025, at 8:30 a.m. ET alongside CFO John Janedis. The call will review complete results and provide a business update.

According to the company's reconciliation table, preliminary Adjusted EBITDA calculations include depreciation and amortization of $10.138 million, stock-based compensation of $8.253 million, and certain litigation and transaction expenses of $8.271 million. Other income expense contributed $1.875 million, with income tax provision of $152,000.

The sports-first streaming platform operates across the United States, Canada, and Spain, with subsidiary Molotov in France. In the United States, Fubo aggregates more than 400 live sports, news and entertainment networks. The service is the only live TV streaming platform with every English-language Nielsen-rated sports channel, according to Nielsen Total Viewers data from 2024.

Fubo has continuously pushed boundaries in live TV streaming technology. The company was the first virtual MVPD to launch 4K streaming, MultiView functionality, and personalized game alerts. These technological advances support the platform's sports-first positioning while expanding programming to include reality shows, premium movies and cable news content.

The Financial Times ranked Fubo 79th in its Americas' Fastest-Growing Companies 2025 list in April 2025, citing an absolute growth rate of 528.4% and compound annual growth rate of 84.5%.

According to company statements, the pending business combination with Disney's Hulu + Live TV creates operational complexity. Fubo has withdrawn its previously communicated 2025 profitability target and paused providing subscriber and revenue guidance. The company cited the need to retain flexibility during the merger period while maintaining focus on long-term value creation for shareholders.

The Disney merger announcement brought significant industry consolidation. The transaction gives Disney approximately 70% ownership of Fubo, creating a combined entity serving over 6.2 million North American subscribers. Both services will continue operating under their respective brands post-merger, with Fubo responsible for carriage negotiations.

As part of the merger agreement, Fubo settled with the Venu Sports joint venture, receiving a $220 million one-time payment. The settlement resolved Fubo's antitrust lawsuit against Disney, Fox Corporation, and Warner Bros. Discovery regarding their proposed sports-focused streaming venture. Fubo also secured a carriage agreement for Disney's suite of channels and the ability to create a new Sports & Broadcasting service featuring Disney's networks.

The business combination requires regulatory approval and Fubo shareholder approval before completion. The merger includes a $130 million termination fee payable to Fubo under certain circumstances, including failure to obtain regulatory approvals. Disney has committed to providing a $145 million term loan in 2026.

Recent content partnerships have expanded Fubo's programming. In June 2025, the company announced a multi-year agreement with sports streaming provider DAZN, adding a DAZN1 channel featuring boxing and mixed martial arts content. That same month, Fubo reached a distribution agreement with Weigel Broadcasting for seven networks including MeTV and Chicago's WCIU.

Streaming industry dynamics continue shifting as consumers reassess subscription portfolios amid rising costs. Programmatic advertising growth has reached 72% according to recent industry data, with Connected TV emerging as a dominant force. CTV's share of media budgets is projected to double from 14% in 2023 to 28% in 2025.

The preliminary results demonstrate Fubo's operational improvements despite industry headwinds. Achieving positive Adjusted EBITDA represents a significant milestone for the sports-focused platform. The metric excludes stock-based compensation, litigation expenses, and other non-operational items to provide clearer performance indicators.

Why this matters: Fubo's achievement of positive EBITDA signals maturation in the streaming industry, particularly for sports-focused platforms. The Disney merger creates a more consolidated competitive landscape against YouTube TV and other services. For advertisers, this consolidation may lead to enhanced CTV inventory and improved targeting capabilities as platforms seek efficiency gains. The sports-first positioning continues attracting premium advertising, especially as NFL content drives viewing across streaming platforms.

Fubo operates globally through multiple subsidiaries. FuboTV Media, Inc. serves as the primary operating subsidiary, while international operations include partnerships across Canada and Spain. The platform's technology stack was built internally, enabling features like Cloud DVR storage, pause/unpause functionality, and 72-hour lookback capabilities.

The company serves customers through various device platforms including Apple TV, Roku, Amazon Fire TV, Android TV, Samsung Smart TV, Xbox consoles, and mobile devices. Browser support includes Windows, Mac, and Linux compatibility.

Timeline

• January 6, 2025: Disney announced intent to acquire 70% stake in Fubo, merging with Hulu's Live TV service. Settlement with Venu Sports joint venture included $220 million payment.
• February 2025: Fubo announced streaming its Fubo Sports linear network on over-the-air channels in more than 100 markets.
• March 2025: Agreement reached with Rangers Sports Network for Texas Rangers game streaming.
• April 2025: Financial Times ranked Fubo 79th in Americas' Fastest-Growing Companies list.
• June 2025: Multi-year agreement signed with DAZN for content streaming partnership. Distribution deal reached with Weigel Broadcasting.
• July 28, 2025: Merger timeline accelerated to completion between October 1, 2025 and March 31, 2026.
• July 29, 2025: Preliminary Q2 2025 results announced showing first positive Adjusted EBITDA quarter.

Key Terms Explained

Adjusted EBITDA: This non-GAAP financial measure represents net income adjusted for depreciation, amortization, stock-based compensation, litigation expenses, and other non-operational items. Fubo's achievement of positive Adjusted EBITDA at $20 million marks a crucial milestone, indicating the company's ability to generate cash flow from core operations while excluding one-time costs and accounting treatments.

Virtual MVPD (vMVPD): Virtual Multichannel Video Programming Distributors deliver traditional television content through internet connections rather than cable or satellite infrastructure. Fubo operates as a sports-first vMVPD, competing with services like YouTube TV and Hulu + Live TV by aggregating live channels while maintaining lower infrastructure costs than traditional providers.

Connected TV (CTV): This technology enables internet-connected television viewing, representing a growing advertising opportunity as viewing habits shift from linear television. Industry data shows CTV's share of media budgets doubling from 14% in 2023 to 28% in 2025, making platforms like Fubo increasingly valuable for advertisers seeking cord-cutting audiences.

Streaming Consolidation: The merger between Fubo and Disney's Hulu + Live TV exemplifies industry-wide consolidation as companies seek scale and operational efficiency. This trend creates fewer but larger competitors, potentially improving negotiating power with content providers while offering advertisers access to broader audiences through single platforms.

Sports-First Positioning: Fubo's strategic focus on live sports content differentiates the platform in a crowded streaming market. The company aggregates every English-language Nielsen-rated sports channel, capitalizing on sports content's ability to drive live viewership and premium advertising rates that justify higher subscription costs.

Subscriber Growth: Fubo exceeded preliminary subscriber guidance with over 1.350 million North American paid subscribers, demonstrating the platform's ability to attract and retain customers despite increasing competition. Subscriber metrics serve as key performance indicators for streaming platforms, directly impacting revenue potential and market valuation.

Revenue Guidance: The company's preliminary revenue of over $365 million exceeded previous guidance of $345 million at the midpoint, indicating stronger-than-expected financial performance. Accurate revenue guidance helps investors assess company performance and management credibility while providing market confidence during significant corporate transitions.

Merger Timeline: Originally scheduled for completion between January and July 2026, the Disney-Fubo merger timeline was accelerated to between October 2025 and March 2026. This acceleration suggests smoother regulatory approval processes and eagerness from both parties to realize operational synergies and market positioning benefits.

Regulatory Approval: The merger requires various regulatory approvals before completion, including antitrust review and Fubo shareholder approval. Regulatory scrutiny focuses on market concentration concerns, ensuring the combined entity doesn't create unfair competitive advantages or reduced consumer choice in the streaming television market.

Content Partnerships: Recent agreements with DAZN, Weigel Broadcasting, and others expand Fubo's programming portfolio beyond sports to include entertainment and local content. These partnerships are crucial for streaming platforms to differentiate offerings, reduce customer churn, and justify subscription pricing while building comprehensive entertainment ecosystems.

Summary

Who: FuboTV Inc., led by Co-founder and CEO David Gandler and CFO John Janedis, announced preliminary financial results.

What: The company achieved its first quarter of positive Adjusted EBITDA at $20 million, exceeding revenue and subscriber guidance while preparing for Disney merger.

When: Preliminary results were announced July 29, 2025, for the second quarter ended June 30, 2025.

Where: The New York-based streaming platform operates in the United States, Canada, and Spain, with subsidiary Molotov in France.

Why: Results demonstrate operational improvements as the sports-first platform approaches merger with Disney's Hulu + Live TV service, creating industry consolidation and enhanced competitive positioning.