0001628280-26-005782
SEC filingRevenue surged due to Business Combination adding Fubo subscription and advertising revenue; gross margin improved to 7.2%.
For the three months ended December 31, 2025, total revenues were $1,548.7 million, a 40% increase from $1,106.0 million in the prior-year period, which represented only the Hulu Live Business on a carve-out basis. The increase was primarily driven by the addition of Fubo subscription revenue ($292.2 million) and advertising revenue ($91.5 million) following the Business Combination on October 29, 2025. Related party revenue from the Hulu Live Service increased 5.3% to $1,160.4 million due to higher carriage fees from subscriber growth and contractual rate escalations.
Subscriber related expenses rose 29.5% to $1,427.8 million, reflecting the inclusion of Fubo program license fees and higher costs for Hulu Live. Broadcasting and transmission expenses of $8.9 million were new from Fubo. Gross profit improved to $112.0 million (7.2% margin) from $3.5 million (0.3% margin), driven by a faster revenue growth relative to cost of revenue. Operating loss narrowed to $20.3 million from $38.6 million, benefiting from scale but offset by increased sales and marketing ($59.3 million vs. $2.2 million) and technology expenses ($13.6 million vs. $0).
Net loss was $19.1 million compared to $38.6 million, with a small income tax provision of $0.4 million in the current period.
The company operates as a single streaming segment. The Business Combination created a combined offering under Fubo and Hulu Live brands. Subscriber trends show a slight decline in North America (6.2 million vs. 6.3 million) and Rest of World (0.33 million vs. 0.36 million) year-over-year, indicating post-merger integration challenges or seasonal patterns. Revenue mix shifted significantly: subscription and advertising revenues (both new) now represent 25% of total, while related party revenue remains dominant at 75%.
Management highlighted post-period financing events: In January 2026, the company received a $145.0 million unsecured term loan from a Disney affiliate (4.2% interest, maturing 2031) to repay the majority of its 2026 convertible notes. As of December 31, 2025, cash and restricted cash stood at $458.6 million. The company believes existing liquidity is sufficient for at least the next twelve months. No formal guidance was provided, but the MD&A emphasizes disciplined capital management and strategic priorities of subscriber growth, content optimization, and monetization through subscription, attachments, and advertising. Risks remain from cord-cutting trends, content cost inflation, and macroeconomic uncertainty.
As of December 31, 2025, FuboTV reported cash and cash equivalents of $452.4 million and restricted cash of $6.1 million, totaling $458.6 million. The company had a working capital deficit of $180.9 million and an accumulated deficit of $6.0 million. Total assets stood at $4.1 billion, driven by $2.6 billion of goodwill and $435.7 million of intangible assets from the reverse acquisition of the Hulu Live Business. Total debt was $379.7 million, comprising $144.8 million of 3.25% Convertible Senior Notes due 2026 (net) and $234.3 million of 7.5% Convertible Senior Secured Notes due 2029 (net of premium). Subsequent to quarter end, the company borrowed $145.0 million under a Disney Note and repurchased $140.2 million of the 2026 Convertible Notes.
The company disclosed $83.2 million in non-cancelable contractual obligations as of December 31, 2025, primarily for sports rights agreements and marketing/strategic partnership contracts. The timing of these payments is: $34.5 million within one year, $26.9 million in 2027, $8.1 million in 2028, $3.6 million in 2029, $3.6 million in 2030, and $6.4 million thereafter. Additionally, operating lease liabilities totaled $33.8 million, with future minimum payments of $45.2 million over the lease terms (weighted average remaining term of 9.6 years). The company also disclosed a $3.4 million settlement agreement for VPPA class action matters.
No share buybacks or dividends were reported. Capital expenditures were $3.7 million (including $0.5 million for property and equipment and $3.2 million for capitalized internal-use software), representing 0.2% of total revenue. Debt activity included the issuance of $145.0 million in Disney Note proceeds in January 2026, used to repurchase $140.2 million of the 2026 Convertible Notes. The 2029 Convertible Notes had no repurchases in the quarter. The company recorded $3.1 million of amortization of debt premium (income) on the 2029 Convertible Notes.
The company operates as a single operating segment (streaming business). The CODM uses consolidated net loss as the measure of segment profitability. Geographic revenue for the three months ended December 31, 2025 was: United States $1,537.6 million and Rest of world $11.1 million, totaling $1,548.7 million. Related party revenue (from Hulu) was $1,160.4 million, representing 74.9% of total revenue. Subscription and advertising revenue (third-party) was $383.8 million, with $377.9 million from North America and $5.8 million from rest of world.
Net loss improved to -$19.1M from -$38.6M, yet operating cash flow deteriorated dramatically to -$200.3M. The divergence is driven by a massive $398.9M increase in accounts receivable and a $184.1M increase in accrued expenses (which boosted CFO positively). The net effect was a large cash outflow, indicating weak cash conversion. Capex of $3.7M remains low relative to revenue (not disclosed), suggesting minimal reinvestment. Free cash flow (not stated) would be deeply negative. Investing activities benefited from $268.1M net cash acquired in the Disney/Hulu business combination, masking underlying outflows. Financing provided $394.5M, largely from Disney contributions pre-combination ($394.5M). Overall, cash flow quality is poor, with significant reliance on external financing and acquisition-related inflows to offset operating burn.