FuboTV Inc. 10-Q Summary: Quarter Ended December 31, 2025
Business Context and Reporting Period
This filing covers the quarterly period ended December 31, 2025. The reporting period is defined by the consummation of the Business Combination between FuboTV Inc. and the Hulu Live Business (a subsidiary of Disney/Hulu) on October 29, 2025. The transaction was accounted for as a reverse acquisition, with the Hulu Live Business treated as the accounting acquirer. Consequently, the financial statements reflect the Hulu Live Business results on a carve-out basis for the period prior to closing and the combined entity results post-closing. The Company operates as a live TV streaming service provider in the U.S. and internationally (Canada, France, Spain).
Key Financial Metrics
| Metric | Q4 2025 (Three Months Ended Dec 31) | Q4 2024 (Three Months Ended Dec 28) |
|---|---|---|
| Total Revenue | $1,548.7 million | $1,106.0 million |
| Operating Loss | $(20.3) million | $(38.6) million |
| Net Loss | $(19.1) million | $(38.6) million |
| Net Loss Attributable to Common Shareholders | $(6.0) million | $(38.6) million |
| Gross Profit | $112.0 million | $3.5 million |
| Gross Margin | 7.2% | 0.3% |
| Cash and Cash Equivalents | $452.4 million | $0 (Carve-out basis) |
| Total Debt (Convertible Notes & Borrowings) | $379.7 million | $0 (Carve-out basis) |
| Working Capital | Deficit of $180.9 million | N/A |
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased by $442.7 million (40.0%) year-over-year. This was driven by the inclusion of Fubo Services subscription revenue ($292.2 million), new advertising revenue ($91.5 million), and increased related party revenue from Hulu Live ($58.0 million).
- Expense Structure: Operating expenses increased to $1,569.0 million from $1,144.6 million. The increase is primarily due to the consolidation of Fubo's subscriber-related expenses ($953.5 million) and sales/marketing costs ($59.3 million), which were not present in the prior period's carve-out financials.
- Profitability: Operating loss improved significantly to $(20.3) million from $(38.6) million, reflecting the scale of the combined entity and the revenue contribution from the Hulu Live wholesale arrangement.
- Balance Sheet: Total assets increased to $4.1 billion from $1.3 billion, largely due to the recognition of goodwill ($2.6 billion) and intangible assets ($435.7 million) from the Business Combination.
Guidance, Outlook, and Risks
Liquidity and Capital Resources: The Company reported a cash balance of $458.6 million (including restricted cash) as of December 31, 2025. Management believes this is sufficient for operations for at least the next 12 months. In January 2026, the Company secured a $145.0 million senior unsecured term loan from a Disney affiliate (the "Disney Note") to repurchase approximately $140.2 million of its 2026 Convertible Notes.
Outlook: The Company expects to continue incurring operating losses as it integrates the Hulu Live Business and invests in subscriber acquisition. Revenue is subject to seasonality, with higher volumes typically in Q4 and Q1 due to sports seasons.
Key Risks and Contingencies:
- Integration Risk: Challenges in integrating the Fubo and Hulu Live businesses could delay anticipated synergies.
- Content Costs: Long-term content commitments may limit operating flexibility; renewal terms may be less favorable.
- Legal Proceedings:
- DISH Patent Litigation: Ongoing patent infringement claims by DISH; the case is currently stayed pending PTAB appeals.
- VPPA Settlement: Reached a $3.4 million settlement for Video Privacy Protection Act class actions, approved in October 2025.
- Antitrust Counterclaims: DISH filed antitrust counterclaims in January 2026 alleging violations related to Disney's acquisition of Fubo, seeking to unwind the transaction.
- Debt Obligations: Significant outstanding convertible notes (2026 and 2029) and the new Disney Note create fixed interest obligations.
Investor Verification Checklist
- Reverse Stock Split: Verify the status of the proposed reverse stock split (1-for-8 to 1-for-12) approved by the board in February 2026.
- Debt Repurchase: Confirm the final settlement of the 2026 Convertible Notes tender offer and the remaining $4.5 million principal due at maturity in February 2026.
- Antitrust Litigation: Monitor the response to DISH's antitrust counterclaims filed in January 2026, which could threaten the Business Combination structure.
- Subscriber Metrics: Verify the reported 6.2 million Total Subscribers in North America and 0.33 million in the Rest of World as of December 31, 2025.
- Related Party Transactions: Review the terms of the Commercial Agreement with Hulu, specifically the wholesale fee structure (95% of carriage fees in 2025/2026) and the 15% ad agency fee.