FuboTV Inc. 10-Q Summary: Quarter Ended June 30, 2026
Business Context and Reporting Period
This filing covers the quarterly period ended June 30, 2026. The reporting reflects the post-closing financials of the Business Combination consummated on October 29, 2025, between FuboTV Inc. and the Hulu Live Business (a subsidiary of Disney). Under the transaction structure, Hulu holds a 70% economic interest and 70% voting interest in the combined entity (Newco), while FuboTV Inc. holds the remaining 30%. The Company operates as a live TV streaming service provider in the U.S. and internationally (Canada, France, Spain).
Key Financial Metrics
| Metric | Three Months Ended June 30, 2026 | Nine Months Ended June 30, 2026 |
|---|---|---|
| Total Revenue | $1,481.7 million | $4,604.3 million |
| Operating Loss | $(26.6) million | $(56.0) million |
| Net Loss | $(25.7) million | $(51.0) million |
| Net Loss Attributable to Common Shareholders | $(8.2) million | $(16.3) million |
| Cash and Cash Equivalents | $230.3 million | $230.3 million (as of period end) |
| Total Debt (Principal) | $322.8 million | $322.8 million (as of period end) |
| Working Capital | $4.0 million | N/A |
Revenue Composition (9 Months): Related party revenue (wholesale fees from Hulu) accounted for $3,349.7 million (72.7% of total). Subscription revenue was $939.7 million, and Advertising revenue was $302.0 million.
Debt Structure: Includes $177.5 million in 2029 Convertible Notes and a $145.0 million promissory note from Disney (the "Disney Note").
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased by $407.9 million (38%) for the three months and $1,299.0 million (39%) for the nine months compared to the prior year periods. This growth is primarily driven by the inclusion of Fubo Services subscription revenue ($300.4M for Q3) and advertising revenue ($108.9M for Q3) resulting from the Business Combination.
- Expense Increases: Operating expenses rose significantly due to the consolidation of Fubo operations. Subscriber-related expenses increased by $293.7 million (Q3) and $942.0 million (9M) due to added program license fees. Sales and marketing expenses increased by $58.1 million (Q3) and $171.2 million (9M).
- Profitability: While the absolute operating loss narrowed slightly in Q3 compared to the prior year ($(26.6)M vs $(38.0)M), the Company remains unprofitable. The prior year periods reflected only the Hulu Live Business carve-out, which had no subscription or advertising revenue.
- Balance Sheet: Total assets increased from $1.3 billion (Sep 2025) to $3.9 billion (June 2026), driven by the acquisition of Fubo assets, including $2.6 billion in goodwill and $369.1 million in intangible assets.
Guidance, Outlook, and Risks
Management Commentary: Management expects to continue incurring operating losses in the future. The Company relies on cash distributions from Newco to fund tax obligations and operating expenses. Liquidity is supported by $236.4 million in cash and cash equivalents, which management believes is sufficient for at least the next 12 months.
Key Risks and Contingencies:
- Goodwill Impairment: The Company performed an interim goodwill impairment test as of March 31, 2026, due to a decline in stock price. No impairment was recorded as fair value exceeded carrying value by 3.6%. However, further declines in stock price or performance could trigger future impairments.
- Legal Proceedings:
- DISH Technologies: Patent infringement litigation is stayed pending appeals of PTAB decisions. DISH filed for Chapter 11 bankruptcy on June 30, 2026, staying related appeals.
- DISH Antitrust Counterclaims: DISH asserted antitrust counterclaims regarding the Disney/Fubo combination; the case is stayed pending DISH's bankruptcy resolution.
- Adeia Media: New patent infringement lawsuit filed July 1, 2026; response deadline extended to September 21, 2026.
- Concentration Risk: Revenue is heavily concentrated in related party transactions with Hulu (approx. 72% of 9-month revenue). The Company relies on Hulu for distribution, marketing execution, and ad sales for the Hulu Live Service.
- Debt Covenants: The 2029 Convertible Notes contain restrictive covenants and a fundamental change repurchase right (which was triggered by the Business Combination but no notes were tendered).
Investor Verification Checklist
- Subscriber Metrics: Verify the reported Total Subscribers count (5.75 million in North America as of June 30, 2026) and churn rates to assess the integration success of Fubo and Hulu Live.
- Related Party Dependence: Review the terms of the Commercial Agreement with Hulu, specifically the wholesale fee escalation (95% in 2025/2026 to 99% in 2028) and the 15% ad agency fee, to understand margin compression risks.
- Goodwill Valuation: Monitor stock price volatility and future impairment testing triggers, given the $2.6 billion goodwill balance and the narrow margin of safety in the March 2026 test.
- Liquidity Runway: Assess the sufficiency of the $236.4 million cash balance against the $322.8 million debt principal and ongoing operating cash burn ($417.1 million used in operating activities over 9 months).
- Legal Exposure: Track the resolution of the DISH bankruptcy and its impact on the stayed patent and antitrust litigation.