FuboTV (FUBO) is finally back on traders' radars after the company announced some ambitious profit generation goals. According to guidance, management sees the company generating between $80 million and $100 million in pro forma adjusted EBITDA in fiscal 2026 — and at least $300 million in fiscal 2028. Moreover, FuboTV hopes to achieve positive free cash flow in fiscal 2027, and to finish fiscal 2026 with at least $200 million in cash.
Such ambitions definitely impressed the market, with FUBO stock rallying. The reaction can be explained by the fact that, for quite a long period, the story behind FUBO stock has been very simple: while the product was impressive, the economic logic behind it did not work well. Today, however, with the help of the Hulu + Live TV merger, investors can talk about much better economic dynamics.
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About FuboTV Stock
In essence, FuboTV is a live TV streaming company with an emphasis on sports, news, and entertainment. Following the merger with Hulu + Live TV, the firm gained scale. Headquartered in New York City, FuboTV currently has a market capitalization of $366 million. This is still a small-cap name despite the fact that FUBO stock attracts interest among traders.
Although shares have rallied recently, FUBO is down nearly 79% from its 52-week high of $56.64. However, the stock has also rebounded from its 52-week low of $8.31. Simply put, this is a very broken chart. But a broken chart is exactly what aggressive investors might need to find some upside in the case that business inflects. Of course, if history repeats itself, it may also be risky to buy FUBO stock.
https://www.barchart.com Speaking of valuation, investors can see another bullish dynamic. With FUBO trading at sub-1 times forward sales and only 1.01 times book, this is a cheap name for a streaming platform with such a bright profit outlook. The forward price-to-earnings (P/E) ratio is also a particularly staggering 2.88 times.
At the same time, investors should stay cautious, as forecasts might be quite unreliable. Thus, the price-to-sales (P/S) ratio seems to be a better metric to consider. If FuboTV is able to convert its scale into profits, it will likely become evident soon. But if that is not possible, the P/S ratio looks quite reasonable.
FuboTV Beats on Earnings
FuboTV has already proven investors that its model is gradually changing for the better. In the first quarter of fiscal 2026, the company reported $1.54 billion in sales, marking an impressive 40% year-over-year (YOY) increase. In pro forma terms, FuboTV saw a more modest rise in revenue to $1.68 billion, up 6% YOY. Most importantly, the company posted pro forma adjusted EBITDA of $41.4 million compared to $22 million in Q1 fiscal 2025. In reported terms, net loss also improved to $19.1 million from $38.6 million in the prior-year period. That is exactly what investors wanted to see before accepting some long-term guidance from the company.
The real kicker for FUBO stock came with mangement's recently unveiled profit plan. In fiscal 2025, the company generated positive EBITDA of $59 million. Now, management is guiding for $80 million to $100 million in pro forma adjusted EBITDA in fiscal 2026. Further, management sees at least $300 million in pro forma adjusted EBITDA in fiscal 2028. This points to a “compounded annual growth rate (CAGR) of more than 80%.” The company also expects to generate positive free cash flow both in fiscal 2027 and fiscal 2028. Cash should remain at a level of at least $200 million in fiscal 2026. In short, for the first time in a while, it sounds like the company knows how to build a profit model using its scale.
Finally, there is a strategic component to the FuboTV story. During Q1, the company announced plans to establish reseller and marketing agreements with ESPN for distribution of its service through ESPN's online ecosystem. This is an important detail because FuboTv is all about sports and could significantly benefit from wider distribution. Still, successful execution of the deal will be crucial.
What Do Analysts Expect for FuboTV Stock?
Market sentiment is improving for FuboTV. Currently, FUBO stock earns a "Moderate Buy" consensus rating based on 11 analysts with coverage. The mean target price for FUBO stands at $17.50, implying potential upside of 45% from current levels. Further, the highest price target of $24 suggests 99% potential upside, while the lowest target of $13 implies a possible gain of 8% from here.
https://www.barchart.com On the date of publication, Yiannis Zourmpanos did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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