FuboTV Inc. 10-Q Summary: Quarter Ended March 31, 2026
Business Context and Reporting Period
This filing covers the quarterly period ended March 31, 2026. The reporting reflects the post-closing financials of the Business Combination between FuboTV Inc. and the Hulu Live Business (a subsidiary of Disney), which closed on October 29, 2025. The transaction was accounted for as a reverse acquisition, with the Hulu Live Business treated as the accounting acquirer. Consequently, historical periods prior to the closing reflect the Hulu Live Business on a carve-out basis, while the current period reflects the combined entity. The Company operates as a live TV streaming service provider with operations in the U.S., Canada, France, and Spain.
Key Financial Metrics
| Metric | Three Months Ended Mar 31, 2026 | Six Months Ended Mar 31, 2026 |
|---|---|---|
| Total Revenue | $1,573.9 million | $3,122.6 million |
| Operating Loss | $(9.1) million | $(29.4) million |
| Net Loss | $(6.2) million | $(25.3) million |
| Net Loss Attributable to Common Shareholders | $(2.1) million | $(8.1) million |
| Gross Profit | $118.9 million | $230.9 million |
| Gross Margin | 7.6% | 7.4% |
| Cash and Cash Equivalents | $237.8 million | (Balance Sheet Item) |
| Total Debt (Principal) | $323.0 million | (Balance Sheet Item) |
Note: Revenue is heavily concentrated in related party transactions with Hulu, which accounted for approximately $1.12 billion (71.3%) of revenue for the three months ended March 31, 2026.
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased by $448.4 million (39.8%) for the three months ended March 31, 2026, compared to the prior year period. This increase is primarily driven by the inclusion of Fubo Services subscription revenue ($347.0 million) and advertising revenue ($101.6 million) following the Business Combination, which were not present in the prior period's carve-out financials.
- Operating Expenses: Total operating expenses rose to $1.58 billion for the quarter, an increase of $416.6 million year-over-year. This is largely due to the consolidation of Fubo's subscriber-related expenses, sales and marketing, and technology costs.
- Profitability: While the Company reported an operating loss of $9.1 million, this represents a significant improvement from the $40.9 million operating loss in the comparable prior period, driven by the scale of the combined revenue base.
- Balance Sheet: Total assets increased to $3.98 billion from $1.30 billion at the prior fiscal year-end, reflecting the acquisition of Fubo's assets and the recognition of $1.32 billion in goodwill.
Guidance, Outlook, and Risks
Liquidity and Capital Resources: As of March 31, 2026, the Company held $244.0 million in cash, cash equivalents, and restricted cash. Management believes this provides sufficient liquidity for at least the next 12 months. In January 2026, the Company secured a $145.0 million promissory note from a Disney affiliate (the "Disney Note") to repay approximately $140.2 million of its 2026 Convertible Notes. The remaining 2026 Convertible Notes were repaid at maturity in February 2026.
Outlook: The Company expects to continue incurring operating losses as it integrates the businesses and invests in growth. Future capital requirements depend on subscriber acquisition, content costs, and the ability to monetize advertising inventory.
Key Risks and Contingencies:
- Goodwill Impairment: The Company performed an interim goodwill impairment test due to a decline in stock price and market capitalization. The fair value of the reporting unit exceeded its carrying value by approximately 3.6%, resulting in no impairment charge. However, further declines could trigger future impairments.
- Legal Proceedings: The Company is involved in patent litigation with DISH Technologies (currently stayed pending appeals) and antitrust counterclaims filed by DISH Network regarding the Disney-Fubo combination. The Company believes it has meritorious defenses.
- Concentration Risk: A significant portion of revenue is derived from the wholesale fee arrangement with Hulu. Changes to this agreement or Hulu's performance could materially impact results.
- Content Costs: Long-term content commitments limit operating flexibility. Renewals on unfavorable terms could pressure margins.
Investor Verification Checklist
- Related Party Dependence: Verify the sustainability of the wholesale fee arrangement with Hulu, which constitutes over 70% of revenue.
- Debt Structure: Review the terms of the $177.5 million 2029 Convertible Notes and the $145.0 million Disney Note, including interest rates and maturity dates.
- Subscriber Metrics: Confirm the reported Total Subscribers count (5.7 million in North America as of March 31, 2026) and churn rates post-combination.
- Goodwill Valuation: Monitor the sensitivity of the goodwill impairment test to changes in stock price and projected EBITDA.
- Legal Exposure: Track the status of the DISH antitrust counterclaims and patent litigation appeals.