0001628280-25-048241
SEC filingRevenue declined slightly YoY, but gross margin improved significantly due to lower subscriber-related expenses and a $220M antitrust settlement gain.
For the three months ended September 30, 2025, total revenue was $377.2 million, a decrease of $9.0 million (2.3%) compared to $386.2 million in the same period of 2024. The decline was driven by a $6.2 million decrease in subscription revenue, a $1.7 million drop in advertising revenue, and a $1.1 million reduction in other revenue. The subscription revenue decrease was attributed to a $12.8 million impact from a smaller subscriber base, partially offset by a $6.6 million increase from higher subscription package prices and attachments. Advertising revenue fell due to fewer impressions sold, partially offset by slightly higher CPMs.
Gross profit improved significantly to $78.4 million (20.8% margin) from $54.1 million (14.0% margin) in the prior year quarter. The improvement was primarily due to a $28.2 million reduction in subscriber-related expenses, driven by lower subscriber counts and the expiration of certain content agreements. Broadcasting and transmission expenses also decreased by $5.0 million due to cloud infrastructure optimization.
Operating loss narrowed to $20.2 million from $58.6 million in Q3 2024, reflecting the gross margin improvement and lower sales and marketing expenses ($42.0 million vs. $55.2 million). Net loss from continuing operations was $18.9 million, compared to a loss of $54.7 million in the prior year quarter. The improvement was partly offset by a $7.8 million gain on debt extinguishment recognized in Q3 2024 that did not recur.
For the nine months ended September 30, 2025, total revenue was $1,173.4 million, down $6.1 million from $1,179.5 million in the prior year period. Net income from continuing operations was $161.6 million, compared to a loss of $136.8 million in the prior year, primarily due to a $220.0 million gain on settlement of antitrust litigation.
The company operates as a single reportable segment for continuing operations. Key performance metrics show North America paid subscribers were flat at 1.6 million as of September 30, 2025, while Rest of World subscribers declined to 0.3 million from 0.4 million. The subscriber base decline in North America was offset by higher average revenue per user from increased subscription package prices and attachments.
Management highlighted seasonality, with higher revenue and subscriber additions expected in the third and fourth quarters driven by NFL and college football seasons. The company expects subscriber counts to decline from Q4 through Q1 and Q2 of the following year. The Business Combination with Disney and Hulu closed on October 29, 2025, resulting in Hulu holding a 70% economic interest in the combined entity. A $145.0 million senior unsecured term loan facility from a Disney affiliate is committed for January 5, 2026. The company believes existing cash and cash equivalents ($280.3 million as of September 30, 2025) will provide liquidity for at least the next twelve months. No specific revenue or margin guidance was provided.
For the nine months ended September 30, 2025, FuboTV generated $120.3M in operating cash flow from continuing operations, a significant turnaround from a $99.3M use in the prior-year period. The improvement was driven by net income of $161.6M (vs. a loss of $136.8M in 2024), though large non-cash charges like depreciation ($30.4M) and stock-based compensation ($20.8M) added back. Working capital was a net use of cash, with accounts payable decreasing $27.7M and accrued expenses down $53.8M, partially offset by deferred revenue growth of $3.5M. Investing cash flow totaled -$9.9M, consisting of $0.7M in property and equipment, $9.1M in capitalized software, and $0.1M in intangible assets. Financing activities provided $2.3M, mainly from stock option exercises. The company did not repurchase shares or pay dividends. Overall, cash flow quality improved markedly, though working capital swings warrant monitoring.