FUBO earnings call summary

Prepared Highlights

• Record revenue: Q2 2026 North America revenue of $1.566 billion, up from $1.125 billion reported in prior year; pro forma revenue grew 1% YoY to $1.556 billion (CFO).
• Adjusted EBITDA: Q2 2026 adjusted EBITDA of $37.7 million vs. pro forma $1.4 million in prior year period; trailing 12-month pro forma adjusted EBITDA exceeded $100 million (CEO, CFO).
• Subscribers: Ended Q2 with 5.7 million total North American subscribers vs. 5.9 million in prior year period (CFO).
• Net loss: $6.2 million in Q2 2026 vs. reported net loss of $40.9 million in prior year; pro forma net income in prior year was $120.6 million, including a $220 million litigation settlement gain (CFO).
• Cash position: $244 million in cash, cash equivalents and restricted cash; expects year-end cash above $200 million (CFO).
• Free cash flow: Expects positive free cash flow in fiscal 2027 and fiscal 2028 under current operating plan (CFO).
• Advertising migration: Disney Ad Server migration began in February; fill rates and CPMs experiencing healthy increases (CEO).
• Content strategy: Offers Fubo Latino, Hulu + Live TV Español, Fubo Sports, core Fubo bundle, and Hulu Live; churn from NBCU loss was minimal (CEO).
• ESPN integration: Fubo Sports service integration into ESPN e-commerce flow expected launch in first half of calendar 2027; ESPN ecosystem reaches over 100 million monthly users (CEO).
• AI feature: Plans to launch first AI conversational feature (Fubo AI Assistant) this fall on Roku, Apple TV and mobile apps — starting with sports (CEO).
• Wholesale fee: Commercial agreement with Hulu + Live TV: wholesale fee at 95% of carriage costs in calendar 2026, scaling to 99% by 2028 (CFO).

Official Guidance

• Fiscal 2026 pro forma adjusted EBITDA: $80 million to $100 million (CFO).
• Fiscal 2028 adjusted EBITDA target: At least $300 million (CEO, CFO).

Mgmt Quotes

• "We delivered the strongest second quarter in our history on an adjusted EBITDA basis." (CEO)
• "On a trailing 12-month basis, we have now exceeded $100 million in pro forma adjusted EBITDA, an important milestone." (CEO)
• "We are not reliant on any one programming provider as we segment our content strategy across our portfolio." (CEO)
• "We believe our AI Assistant is a fundamentally more intuitive way to interact with live sports and video than scrolling up and down." (CEO)
• "Our outlook is supported by elements of our business combination in which we have a high degree of conviction." (CFO)

Prepared Metrics

Q&A Batch (1-5 of 5)

Q1 — Kutgun Maral

• Topic: Disney ad platform migration and ad monetization impact on EBITDA
• Key points:
  • Migration to Disney's ad server started less than 90 days ago; CPM improvement came in faster than expected.
  • Migration expected to be fully completed by end of year; Fubo ad ARPU then expected to converge with Hulu Live.
  • Largest component of adjusted EBITDA improvement comes from contractual wholesale fee increase from 95% to 99%.
  • Ad monetization improvement tracking in line to better; quarter came in ahead of expectations.
• Mgmt stance: Bullish — early migration results show CPM and fill rate improvement, with upside tracking ahead of plan.

Q2 — Matthew Condon

• Topic: Timing of content cost scale benefits from Hulu Live combination
• Key points:
  • Historically not spoken to timing of specific content deals; a couple of small renewals since close of business combination, outcomes satisfactory.
  • Content cost scale benefit has short, medium, and longer-term timing; typical renewal cadence is about 1 per year, so longer tail to show up.
• Mgmt stance: Neutral — benefits expected but timing is gradual, with longer tail due to annual renewal cycle.

Q3 — Andrew Crum

• Topic: Reconciliation of fiscal 2026 adjusted EBITDA guidance step-down in second half
• Key points:
  • First-half generated $79 million adjusted EBITDA; second-half implied step-down due to seasonality (40%–50% of gross ads in last fiscal quarter).
  • Company plans to spend more on marketing in second half; also noted a $6.5 million above-the-line tax-related benefit in the quarter.
  • Guidance reaffirmed: at least $300 million EBITDA in 2028; working with Disney on initiatives.
• Mgmt stance: Neutral — step-down is seasonal and strategic (marketing spend), with long-term 2028 target unchanged.

Q4 — Tyler DiMatteo

• Topic: Organic subscriber trends and ARPU, split between Hulu Live and Fubo
• Key points:
  • Company does not separate sub count going forward; focused on combined entity leverage.
  • Three growth initiatives: using Fubo storefront to drive Hulu Live sales; offering bundles from $9.99 (Fubo Latino) to $30 range (Hulu Español); enhancing product to drive engagement and ad sales.
  • Fubo service has more seasonality than Hulu Live; sequential sub changes from fiscal Q1 to Q2 over past 2 years were nearly identical for both services.
• Mgmt stance: Bullish — lower pricing tiers expected to drive subscriber growth and top-of-funnel conversion; product enhancements support ad monetization.

Q5 — Brent Penter

• Topic: RSN strategy and Hulu Live expansion into local sports
• Key points:
  • Added 14 local baseball teams (Dodgers, Braves, Mets) before opening day; offset losses from NBCU drop.
  • Company is a leader in local sports; next focus is World Cup and football season.
  • Historically proactive on RSN decisions, which have worked out well.
• Mgmt stance: Bullish — successful RSN additions demonstrate ability to navigate evolving landscape; no immediate plans for Hulu Live RSN push, but position is strong.

Q&A Batch (6-8 of 8)

Q6 — David Joyce

• Topic: Retention trends, NBCUniversal content loss, Disney ad integration
• Key points:
  • Retention from January through March was better across all plans, offsetting NBC loss (Super Bowl, Olympics, All-Star game).
  • Year-over-year sub base was relatively flat; April retention levels on par with 2024, offset by local baseball.
  • Reactivations were very strong; only better retention period was pandemic 2021.
  • Tech work for Disney ad sales integration is largely complete.
• Mgmt stance: Bullish — retention performance described as “very impressive” and “very well” despite major content loss.

Q7 — Alicia Reese

• Topic: World Cup subscription uplift and advertising opportunity
• Key points:
  • No specific subscriber outlook shared in guidance; marketing team expects an uplift in trials, which could be upside based on conversion.
  • Previous World Cups had no major impact on ad revenue; this year has several sponsorships due to selling hubs.
  • Friendlier time zone may create more advertising opportunity.
• Mgmt stance: Neutral-to-bullish — sees “good incremental opportunity” on Fubo Sports but does not quantify; ad revenue upside is possible but not guaranteed.

Q8 — Patrick Sholl

• Topic: Free cash flow expectations, capital allocation priorities, leverage
• Key points:
  • Free cash flow tracking in line to slightly better relative to expectations.
  • Investing in product/tech, content (RSNs), marketing to drive customer delight and growth.
  • No leverage target; expects north of $200 million cash on balance sheet at end of fiscal year.
  • Net debt level described as “very manageable” based on debt outstanding.
• Mgmt stance: Bullish — cash position and FCF trajectory are positive; capital allocation focused on growth investments.

Q9 — Laura Martin

• Topic: AI impact on cost/revenue, international strategy post-Hulu combination
• Key points:
  • About 35% of all code is now completed with AI; ~200 employees use ChatGPT or Claude to code.
  • Some top engineers no longer code; still a learning curve.
  • External-facing AI assistant planned; goal to compress journey from discovery to purchase, with graphic UI deconstruction.
  • International subs put on back burner; domestic growth is priority given subscriber base size.
• Mgmt stance: Bullish on AI (calls it “one of the most underrated topics”); cautious on international (de-prioritized).