FuboTV Inc (NYSE:FUBO) reported financial results for its first quarter of fiscal 2026, a period that marks the company's first full reporting quarter following its transformative business combination with Hulu + Live TV. The figures present a complex picture, with reported revenue surging past analyst expectations but profitability metrics and forward-looking guidance appearing to drive a significant negative reaction in the pre-market trading session.
Earnings and Revenue Versus Estimates
The company's reported financials for the quarter ended December 31, 2025, show a dramatic top-line beat when compared to Wall Street expectations. However, the year-over-year comparisons are nuanced due to the recent business combination, with the company providing both "as-reported" and "pro forma" numbers to illustrate the combined entity's performance.
- Revenue Performance: Fubo reported global revenue of $1.549 billion, a substantial increase from the $1.106 billion in the prior-year period. This result significantly exceeded the analyst consensus estimate of approximately $407.9 million for the quarter. On a pro forma basis, which treats the Fubo and Hulu + Live TV businesses as if they had been combined for the entire comparative period, revenue was $1.683 billion, up 6% year-over-year.
- Earnings Per Share: The company reported a net loss of $19.1 million, or a loss per share of $0.02. This missed the analyst estimate for a Non-GAAP EPS loss of $0.0204. On a pro forma basis, which includes the full impact of the combination, the net loss was $46.4 million.
Market Reaction and Key Press Release Highlights
Following the earnings release, FUBO shares were down approximately 18% in pre-market trading. This sharp decline suggests investor focus may be extending beyond the headline revenue beat to other aspects of the report and the company's future trajectory.
The earnings press release centered on several critical developments:
- Transformative Hulu + Live TV Combination: The quarter's results are the first to fully incorporate the Hulu + Live TV business, acquired from The Walt Disney Company in late October 2025. This deal has fundamentally reshaped the company, making it the sixth-largest Pay TV provider in the U.S. The combined entity ended the quarter with 6.2 million subscribers in North America.
- Path to Profitability: A key positive metric highlighted by management was Pro Forma Adjusted EBITDA, which turned positive at $41.4 million for the quarter, compared to $22.0 million a year ago. This indicates progress on the path to operating profitability for the enlarged streaming service.
- New ESPN Partnership: The company announced a planned reseller and marketing arrangement with ESPN. This would see Fubo's sports-centric service available within ESPN's commerce flow and promoted across its digital properties, potentially opening a new customer acquisition channel.
- Planned Reverse Stock Split: Fubo's Board approved a reverse stock split of its Class A and Class B common stock at a ratio between 1-for-8 and 1-for-12. The stated intent is to make the stock more accessible to a broader investor base and align the share count with the company's new scale post-combination.
Forward Outlook and Analyst Expectations
The press release did not provide specific quantitative financial guidance for the coming quarters or full year. The absence of a formal outlook, coupled with the significant pre-market sell-off, may indicate investor concern about the sustainability of growth or the pace of profit improvement following the large integration.
Analyst estimates for the company's future performance are now calibrated for the combined entity. Current consensus estimates project sales of $1.478 billion for the next quarter (Q1 2026) and $6.462 billion for the full fiscal year 2026. The company's ability to meet or exceed these new, larger-scale benchmarks will be a primary focus for investors moving forward.
For a detailed breakdown of historical earnings, future estimates, and analyst projections, you can review more data here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
