Fubo targets $300M EBITDA by 2028 after Disney merger profitability turn
Fubo today set Adjusted EBITDA targets of $80-$100M for fiscal 2026 and $300M for 2028, backed by contractual wholesale fee step-ups tied to its Disney deal.
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FuboTV Inc. (NYSE: FUBO) today published its first formal long-term financial guidance since completing its merger with The Walt Disney Company's Hulu + Live TV business, setting out a path to profitability anchored in contractual obligations rather than subscriber growth alone. The company targets Pro Forma Adjusted EBITDA of between $80 million and $100 million in fiscal 2026, and at least $300 million in Adjusted EBITDA by fiscal 2028. Free Cash Flow positive territory is expected starting fiscal 2027.
The disclosures came alongside a Form 8-K filing with the U.S. Securities and Exchange Commission and a shareholder letter signed by Co-Founder and Chief Executive David Gandler. Together, they represent the most detailed financial roadmap Fubo has issued since the merger closed on October 29, 2025.
From losses to inflection point
The trajectory of Fubo's reported financials shows a company that has been narrowing losses for years. On a pre-combination standalone basis, fuboTV recorded Adjusted EBITDA losses of $321.8 million for the twelve months ended September 30, 2022, $226.3 million for the equivalent period in 2023, and $127.5 million for 2024. The following year, the pre-combination standalone figure reached positive territory at $17.5 million.
On a pro forma basis - which treats the Hulu Live Business as the accounting acquirer and combines both entities as if the merger had occurred at the beginning of the period - Pro Forma Adjusted EBITDA for fiscal 2025 reached $58.5 million, against a Pro Forma Net Loss of $178 million. Those figures include $185.9 million in depreciation and amortization, $70.4 million in certain litigation and transaction expenses, and $144 million in corporate allocation expenses. Strip those out, and the underlying operating picture looks materially different from GAAP net income.
The company is now projecting Adjusted EBITDA growth at a compounded annual rate of more than 80%, calculated from the midpoint of the fiscal 2026 guidance range - $90 million - to the fiscal 2028 target of at least $300 million.
What is driving the 2028 number
The arithmetic behind the 2028 projection is grounded in a commercial agreement with Hulu that Fubo describes as contractual and therefore visible. During the term of that agreement, Fubo receives a wholesale fee expressed as a ratio of Hulu + Live TV's carriage costs, in addition to advertising revenue. That ratio stands at 95% in 2026, rising to 97.5% in 2027 and reaching 99% in 2028 and beyond.
According to the shareholder letter, the step-up "is contractual and gives us strong visibility into our earnings profile and expected Adjusted EBITDA expansion." The step-up is gradual but meaningful in scale: moving from 95% to 99% of Hulu + Live TV's carriage costs represents a materially larger share of a revenue base that itself spans one of the largest live TV streaming services in the United States.
A second driver involves content costs. As legacy Fubo and Hulu + Live TV content agreements come up for renewal, the company says it intends to align them to leverage the combined entity's increased scale. The merged platform is described by Fubo as the sixth-largest pay TV company in the United States, based on UBS estimates, with nearly 6 million North American subscribers at the time of closing.
A third component involves advertising synergies. The company's guidance includes eventual gains from migrating the Fubo service's advertising inventory onto the Disney Ad Server. According to the letter, Fubo is "on pace to achieve those synergies." The transition reflects a broader structural shift: when the merger closed, Fubo's advertising sales group moved into Disney's advertising sales organization, positioning Fubo inventory within a portfolio that now spans ABC, ESPN, Hulu, Disney+, FX, National Geographic, Freeform, and eight ABC-owned local television stations. Mediaocean's Prisma Direct, announced March 31, 2026, will integrate Disney's advertising portfolio - including Fubo - through an API connection based on the same technology as Disney Campaign Manager, going live in Q3 2026.
For the marketing community, the Disney Ad Server migration matters because it signals a consolidation of programmatic access. Advertisers that buy through Disney's infrastructure will increasingly be able to reach Fubo's sports-first audience without maintaining separate buying relationships. The combined platform reported 122 million ad-supported streaming subscribers as of early 2026, a figure that positions it as one of the largest addressable audiences in connected television.
Cash position and debt structure
The company is projecting to end fiscal year 2026 - which closes September 30, 2026 - with at least $200 million in cash and cash equivalents. That figure compares to the pre-combination standalone cash balance of $274 million as of September 30, 2025. The gap partly reflects approximately $50 million in payments made during the fiscal year to date associated with litigation and transaction-related costs, which Fubo says are not representative of underlying cash generation.
Debt currently stands at approximately $323 million, with no maturities until 2029. As of March 2026, the 2029 bonds were trading close to par. The company expects to reach a net cash position - cash and equivalents exceeding total debt - by fiscal 2028, and does not anticipate needing additional external financing through that year under its current operating plan.
According to the shareholder letter, "we have enough cash to fund our business - including debt obligations - and invest in our growth."
The reverse stock split explained
Gandler addressed the reverse stock split in the shareholder letter. The split, he wrote, "does not change the fundamentals of a business. It does not impact Fubo's cash, operations, or our long-term earnings potential." Its purpose was described as threefold: to expand the potential investor base by making shares accessible to institutions restricted from holding low-priced securities; to attract long-term, fundamental investors focused on operating performance rather than trading dynamics; and to better align share count with market capitalization and earnings per share.
The letter also addressed a specific concern: whether the reverse split signals an intention to issue dilutive equity. According to Gandler, "given our confidence in the strength of our financial position, we do not currently have any plans to do that."
Content: NBCUniversal and the baseball push
One content gap that has attracted attention is the absence of NBCUniversal programming on the Fubo service. The company acknowledges it. According to the shareholder letter, the Fubo service does not currently include NBCU content, though the combined company continues to offer it through Hulu + Live TV. Gandler writes that the overall financial impact on the company has been "modest," and that many subscribers seeking NBCU content can access it through a separate Hulu + Live TV subscription.
The company has begun cross-marketing Hulu + Live TV to Fubo service subscribers who may want a fuller channel lineup. That marketing flow represents one of the integration mechanics now underway - surfacing the Disney ecosystem's breadth to what was previously a standalone sports-focused subscriber base.
On the sports content side, progress has been more visible. The Fubo streaming service recently secured coverage of 17 professional baseball teams, including SNY in New York, which returned all three regional sports networks in that market. It also added Spectrum SportsNet LA. That deal, announced March 26, 2026, brought coverage of more than 140 Los Angeles Dodgers regular season games to Fubo base plan subscribers in the network's geographic footprint - the first time Fubo had carried LA Dodgers coverage.
Regional sports networks have been a contested battleground in streaming for years. For advertising buyers focused on sports-aligned audiences, the expansion of RSN coverage on a platform that has transitioned its ad sales into Disney's infrastructure is a detail worth tracking. Sports content commands premium advertising rates because of its live, simultaneous viewing characteristics.
A broader integration still in progress
The merger between Fubo and Hulu + Live TV closed on October 29, 2025, after Fubo shareholders approved it on September 30, 2025. The business combination was structured as a reverse acquisition, with the Hulu Live Business treated as the accounting acquirer. As a result, the historical financial statements of the Hulu Live Business are now presented as the company's historical statements, starting from the fiscal quarter ended December 31, 2025.
That accounting structure explains the complexity of the numbers in today's release. Pre-combination figures reflect fuboTV Inc. on a standalone basis. Pro Forma figures treat the combination as though it occurred at the start of the twelve months ended September 30, 2025. The two sets of numbers are not directly comparable - a distinction the company notes in its non-GAAP disclosures.
The company also changed its fiscal year end from December 31 to September 30, effective from the closing date. Its first full fiscal year as a combined entity will end September 30, 2026.
First-quarter fiscal 2026 results, reported February 3, 2026, showed North America revenue of $1.543 billion and Adjusted EBITDA of $41.4 million. The Q1 report also flagged plans for a reseller arrangement with ESPN to distribute Fubo Sports through ESPN's commerce infrastructure. That arrangement further extends the integration logic: using Disney's distribution network to place Fubo's sports product in front of ESPN's existing subscriber base.
Earlier, in February 2026, Fubo Sports Network began streaming on Hulu + Live TV, marking the first distribution synergy to materialize after the merger. The channel delivers approximately 1,200 hours of live content annually and is included in Hulu + Live TV's $89.99 monthly plan without additional cost. Prior to that, the Fubo Channel Store launched November 5, 2025, creating a centralized hub for premium standalone streaming plans accessible without a base Fubo subscription.
The trajectory from Fubo's first reported quarter of positive Adjusted EBITDA in Q2 2025 - at least $20 million - through $41.4 million in Q1 fiscal 2026 to the current guidance of $80-$100 million for the full fiscal year suggests the profitability curve is steepening. Whether the 2028 target of $300 million proves achievable will depend in large part on whether the contractual wholesale fee step-ups hold, content cost negotiations go as planned, and the advertising inventory migration to the Disney Ad Server delivers on expected synergies.
Timeline
- January 6, 2025 - Disney and Fubo announce Business Combination Agreement; Venu Sports joint venture terminated one week later
- July 29, 2025 - Fubo reports first quarter of positive Adjusted EBITDA, expected at least $20 million, ahead of merger close
- August 26, 2025 - Magnite rolls out pause ads for streaming TV with Fubo integration
- September 2, 2025 - Fubo Sports dedicated streaming service launches at $55.99 monthly
- September 30, 2025 - Fubo shareholders approve Disney merger at special meeting
- October 29, 2025 - Fubo and Hulu + Live TV complete merger, creating sixth-largest pay TV company in the United States; Fubo advertising sales group transitions to Disney's advertising organization
- November 5, 2025 - Fubo Channel Store launches with standalone streaming plans
- February 3, 2026 - Fubo reports Q1 FY 2026 results: $1.543 billion North America revenue, $41.4 million Adjusted EBITDA; ESPN reseller arrangement announced
- February 10, 2026 - Fubo Sports Network begins streaming on Hulu + Live TV, first distribution synergy post-merger
- March 26, 2026 - Fubo and Spectrum SportsNet LA announce carriage deal covering 140+ Dodgers games
- March 31, 2026 - Mediaocean's Prisma Direct announced, integrating Disney's full advertising portfolio - including Fubo - via API; slated to go live Q3 2026
- April 6, 2026 - Fubo releases Adjusted EBITDA guidance for fiscal 2026 and long-term targets for fiscal 2028; shareholder letter published; Form 8-K filed with the SEC
Summary
Who: FuboTV Inc. (NYSE: FUBO), a Disney affiliate and the sixth-largest pay TV company in the United States, led by Co-Founder and CEO David Gandler. The disclosure was filed with the SEC as a Form 8-K and accompanied by a shareholder letter signed by Gandler.
What: The company today released Pro Forma Adjusted EBITDA guidance of $80-$100 million for fiscal 2026, a target of at least $300 million in Adjusted EBITDA for fiscal 2028, and an expectation of positive Free Cash Flow starting fiscal 2027. The projections rest on contractually obligated wholesale fee step-ups from Hulu (95% in 2026, 97.5% in 2027, 99% in 2028), anticipated content cost reductions through renegotiated scale-based agreements, and ad inventory migration to the Disney Ad Server. The company also holds approximately $323 million in debt with no maturities until 2029, and expects to end fiscal 2026 with at least $200 million in cash.
When: The announcement was made today, April 6, 2026, covering fiscal years ending September 30, 2026 and September 30, 2028. The figures build on Q1 fiscal 2026 results reported February 3, 2026, and reflect the first full operating period following the merger that closed October 29, 2025.
Where: New York, New York. FuboTV Inc. is headquartered at 1290 Avenue of the Americas and trades on the New York Stock Exchange under the ticker FUBO. The Form 8-K was filed with the SEC in Washington, D.C.
Why: The release appears designed to close the gap between Fubo's financial progress and its stock price, which Gandler states "has not yet reflected the operational progress we have made nor the intrinsic value of the combined business." The guidance provides quantified, multi-year visibility grounded in contractual structures rather than projections, at a moment when the company is simultaneously integrating a large-scale merger, executing a reverse stock split, and transitioning its advertising operations into Disney's broader sales infrastructure.