FI
fuboTV Inc. /FL (FUBO)·Q1 2025 Earnings Summary
Executive Summary
- Q1 2025 delivered modest top-line growth and a sharp improvement in profitability metrics: Revenue $416.3M (+3.5% YoY), Adjusted EPS loss improved to $0.02, and Adjusted EBITDA narrowed to -$1.4M; GAAP EPS was $0.55 driven by a $220M gain on settlement of litigation .
- Results vs consensus: revenue modestly beat (+$0.8M) and Adjusted/Primary EPS beat by ~$0.015; management noted underlying ad trends improving ex the drop of certain ad-insertable content and portfolio changes (beat on revenue and EPS)* .
- Guidance introduced for Q2 2025 reflects anticipated YoY declines given TelevisaUnivision content drop and one-time sports events in 2Q24; NA revenue $340–$350M and subs 1,225–1,255k; ROW revenue $6.5–$7.5M and subs 325–335k .
- Strategic narrative centers on super-aggregation and skinny bundles, interactive ad innovation, and pending Disney/Hulu + Live TV combination; mgmt emphasized acceptable terms for non-Disney content and targeted fall launch timing .
What Went Well and What Went Wrong
What Went Well
- North America exceeded subscriber guidance (1.47M vs 1.43–1.46M) and achieved revenue targets ($407.9M) despite a lighter sports calendar and portfolio changes .
- Profitability metrics improved: Adjusted EBITDA (-$1.4M) improved by $37.4M YoY; Adjusted EPS loss improved to $0.02 .
- Management reiterated confidence in super-aggregation and progress toward fall launch of skinny bundles; CEO: “We remain excited about our agreement… to combine Fubo with Hulu + Live TV… We continue to work through the regulatory process” .
What Went Wrong
- North America ad revenue fell 17.3% YoY to $22.5M driven by the drop of certain ad-insertable content (TelevisaUnivision and WBD networks) .
- Subscriber base declined YoY in NA (-2.7%) and ROW (-10.9%); ROW revenue down 0.4% YoY and ARPU down sequentially .
- Q2 2025 outlook guides double-digit YoY declines in both NA and ROW revenue/subs due to content changes and prior-year event timing (Copa) .
Financial Results
Quarterly Actuals (Continuing Operations)
Note: Net income and operating cash flow in Q1 2025 include a $220M gain on settlement of litigation .
Segment Breakdown
KPIs
Results vs S&P Global Consensus
*Values retrieved from S&P Global.
Guidance Changes
Note: No guidance provided on OpEx, OI&E, tax rate, or dividends in these materials .
Earnings Call Themes & Trends
Management Commentary
- CEO: “Our global streaming business exceeded our subscriber forecast and achieved our revenue guidance… We remain excited about our agreement… to combine fubo with Hulu + Live TV… It is critical… we negotiate content licensing agreements at fair rates and terms” .
- CFO: “Ad revenue… down 17% year-over-year, largely due to the discontinuation of Warner Bros. Discovery and TelevisaUnivision Networks… Adjusted EPS loss improved to $0.02… Adjusted EBITDA… a $37M improvement YoY” .
- CEO on consumer value: “Our content aggregation and innovative user experience provide an attractive solution, particularly for the ardent sports fan” .
- Executive Chairman: “Ninth consecutive quarter with improvements in Adjusted EBITDA and Free Cash Flow… plan to continue investing in infrastructure, technology and product” .
Q&A Highlights
- TelevisaUnivision & content realignment: Management open to discussions on acceptable terms; skinny bundles progressing with non-Disney partners; growth opportunity by fall if terms are fair .
- Macro/operational cadence: Same-store subscriber growth flattish adjusted for Copa; churn in English package stable/better YoY despite price increase; April reactivations ahead of expectations .
- Advertising: Loss of ad-insertable hours from dropped networks directly impacted ad revenue; underlying performance ex these impacts was slightly up YoY; interactive ad formats gaining momentum, with 30–37% YoY increases and expanding adoption .
- ROW/Molotov: Emphasis on profitability over growth; platform unification continuing; EBITDA ahead of budget despite subs declines .
Estimates Context
- Q1 2025 vs S&P Global consensus: revenue beat ($416.29M vs $415.46M)* and Adjusted/Primary EPS beat (-$0.02 vs -$0.0349)*; underscored by disciplined cost control and underlying ad normalization excluding dropped networks .
- Implications: Street likely to revise trajectories for Adjusted EPS and free cash flow given consistent multi-quarter improvements and Q2 outlook framing YoY declines from identifiable drivers (content portfolio changes, event timing)* .
*Values retrieved from S&P Global.
Key Takeaways for Investors
- The quarter modestly outperformed on revenue and Adjusted EPS versus consensus amid intentional portfolio changes; underlying ad trajectory improving ex content drops (beat catalysts)* .
- Profitability narrative strengthening: Adjusted EBITDA margin trending toward breakeven (-0.3% in Q1); free cash flow improved YoY; GAAP EPS uplift non-recurring (litigation gain) .
- Q2 guide embeds YoY declines driven by known factors (TelevisaUnivision drop; Copa comps) rather than deterioration in core engagement; watch reactivation trends and skinny bundle launch milestones .
- Strategic upside hinges on super-aggregation execution, acceptable licensing terms with non-Disney programmers, and regulatory progress on Disney/Hulu + Live TV combination .
- Advertising product innovation (interactive, shoppable, programmatic pause ads) is a tangible lever to offset ad-insertable content shifts; monitor adoption and yield .
- ROW remains profit-first and platform-integrated; expect subs stability once marketing investment timing shifts; near-term contribution constrained but EBITDA profile improving .
- Trading setup: narrative catalysts include skinny bundle launch timing, content deal announcements, and regulatory updates; near-term prints likely framed by Q2 guide execution and ad normalization.
Notes on non-GAAP
Adjusted EPS excludes stock-based comp, amortization of intangibles, amortization of debt premium, gain on extinguishment of debt, certain litigation/transaction expenses, and gain on settlement of litigation; Adjusted EBITDA similarly excludes these items and tax/other income/expense .