0001628280-26-031265
SEC filingRevenue surged 40% YoY driven by Fubo Services addition, but operating loss narrowed as gross margin improved to 7.6%.
For the three months ended March 31, 2026, fuboTV reported total revenue of $1,573.9 million, a 39.8% increase from $1,125.5 million in the prior-year period. The growth was driven entirely by the inclusion of the Fubo Services following the Business Combination, which added $347.0 million in subscription revenue and $101.6 million in advertising revenue. Related party revenue from Hulu Live Business declined slightly from $1,122.7 million to $1,121.4 million, as increases in carriage fees from subscriber growth and contractual rates were offset by the shift in business structure. Operating loss improved significantly to -$9.1 million from -$40.9 million, reflecting a 78% reduction. Net loss narrowed to -$6.2 million from -$40.9 million. Gross profit rose to $118.9 million (7.6% margin) from $2.8 million (0.2% margin), as subscriber related expenses grew at a slower pace (up $323.0 million) relative to revenue, indicating improved unit economics from scale. Operating margin improved from -3.6% to -0.6%, a gain of 305 bps.
The company operates as a single streaming segment. The Business Combination transformed the revenue base: subscription and advertising revenues were absent in the prior period, now representing $448.6 million combined. Subscriber related expenses increased to $1,445.7 million from $1,122.7 million, driven by new Fubo programming costs and higher Hulu Live fees. Broadcasting and transmission ($9.3 million), technology and development ($20.8 million), and depreciation ($36.0 million) were new costs from Fubo. Sales and marketing jumped to $58.1 million from $2.0 million, reflecting Fubo's marketing spend. General and administrative expenses declined from $41.7 million to $13.1 million due to the absence of certain allocations post-Combination, partly offset by Fubo costs. Total subscribers in North America decreased from 5.9 million to 5.7 million, and Rest of World from 354,000 to 328,000, indicating competitive churn despite service expansion.
Management did not provide specific financial guidance, but highlighted key strategic priorities: growing paid subscribers, optimizing content portfolio and unit economics, and monetizing through subscription, attachment sales, and advertising. The Commercial Agreement with Hulu provides a stable wholesale fee structure (95% of carriage expenses through 2026). The company expects seasonality, with stronger subscriber additions in Q4 and Q1 due to football. Liquidity is supported by $244.0 million in cash and equivalents, the $145.0 million Disney Note, and access to a shelf registration. Management believes existing cash will sustain operations for at least twelve months, though they may seek additional capital for tax distributions or debt repurchases. The goodwill impairment risk remains if stock price declines further, given only a 3.6% cushion. No material impact from macroeconomic factors is currently expected, but the company continues to monitor inflation and tariff uncertainties.
As of March 31, 2026, FuboTV reported cash and cash equivalents of $237.8 million and restricted cash of $6.1 million, totaling $244.0 million. Total assets stood at $3.98 billion, driven by $2.61 billion in goodwill and $402.7 million in intangible assets. Total liabilities were $1.33 billion, including $229.6 million in convertible notes (net of premium) and $145.0 million in related party notes payable. Shareholders' equity was $812.0 million, with a redeemable non-controlling interest of $1.84 billion. The company had a working capital deficit of $5.5 million and an accumulated deficit of $8.1 million. Management believes current cash provides sufficient liquidity for at least one year.
Total contractual obligations as of March 31, 2026 were $85.5 million, comprising non-cancelable contracts for marketing, strategic partnerships, and sports rights. Payments are due as follows: $35.4 million within one year, $28.0 million in 2027, $8.5 million in 2028, $3.6 million in 2029, $3.6 million in 2030, and $6.4 million thereafter. Additionally, operating lease obligations totaled $44.7 million in future minimum payments, with a weighted average remaining lease term of 9.4 years and a discount rate of 6.8%. The company is also involved in patent litigation with DISH, but cannot estimate potential losses.
No share buybacks or dividends were disclosed. Capital expenditures were minimal at $0.6 million for the six months ended March 31, 2026, with an additional $5.7 million in capitalized internal-use software. Debt activity included the issuance of a $145.0 million related party note (Disney Note) on January 5, 2026, used to repay $144.8 million of the 2026 Convertible Notes. The remaining 2029 Convertible Notes of $177.5 million principal (fair value $165.1 million) remain outstanding. Interest expense on the 2029 Notes was $6.7 million, and on the Disney Note $1.2 million for the period.
The company operates as a single operating segment: the streaming business. The CODM uses consolidated net loss as the measure of segment profitability. Geographic revenue for the six months ended March 31, 2026 was $3.10 billion from the United States and $26.9 million from the rest of the world. Related party revenue (from Hulu) constituted the majority of total revenue at $2.28 billion for the six-month period.
The net loss of $(25,270) thousand was far exceeded by negative operating cash flow of $(412,383) thousand, indicating large beneficial working capital use. The primary driver was a massive $(525,032) thousand increase in accounts receivable, combined with a $(31,090) thousand decline in deferred revenue and some tax timing differences. Offsetting were stock-based compensation ($22,882K), depreciation ($60,240K), and an accrued expense build of $104,264K. This pattern suggests a cash conversion cycle strain following the Business Combination. Capital expenditures were modest at $(6,344) thousand, composed of $599K in property/equipment and $5,745K in internal software. No free cash flow was explicitly computed. Financing activities provided $394,629 thousand, mainly from Disney contributions ($394,499K) and a note payable ($145,000K), partially offset by convertible note repayment ($144,765K). No share repurchases or dividends were recorded. The large working capital swing is anomalous and likely related to the Hulu Live Business combination accounting and transition.