fuboTV Inc. /FL (FUBO)·Q2 2025 Earnings Summary

Executive Summary

• Fubo delivered its first-ever positive Adjusted EBITDA ($20.7M; 5.4% margin) while revenue and subscribers exceeded guidance in both North America and Rest of World, and GAAP net loss narrowed materially year over year .
• Revenue beat Wall Street consensus, and normalized EPS exceeded expectations; the company paused forward guidance and withdrew its 2025 profitability target due to the pending Disney/Hulu + Live TV combination, creating a near-term narrative shift toward deal/regulatory milestones rather than quarterly targets .
• North America revenue was $371.3M (−3% YoY) with 1.356M paid subs (−6.5% YoY); ROW revenue was $8.7M (+4.7% YoY) with 349k subs (−12.5% YoY), both above guidance, aided by disciplined marketing, PPV launch, and DAZN content partnerships .
• Advertising trends were mixed: NA ad revenue declined 2% YoY to $25.5M due to loss of ad-insertable content (WBD/Univision), offset by strength in retail/e-commerce and tech categories; management flagged modest tariff-related auto headwinds and continued double-digit growth in FAST ad channels .
• Near-term stock catalysts: regulatory progress on the Hulu + Live TV combination, launch of Fubo Sports skinny service on Sept 2, and continued product innovation (PPV, personalized features) .

What Went Well and What Went Wrong

What Went Well

• First-ever positive Adjusted EBITDA: $20.7M; 5.4% margin, reflecting operating leverage and cost discipline .
• Guidance outperformance: NA revenue $371.3M and subs 1.356M; ROW revenue $8.7M and subs 349k, all exceeding prior guidance .
• Strategic product/content moves: PPV launch broadens funnel; DAZN partnerships in U.S./Canada; personalized features (Catch Up to Live, Game Highlights, Timeline Markers) lifting engagement .
  • “The second quarter of 2025 marked a pivotal milestone in Fubo’s business” — David Gandler, CEO .

What Went Wrong

• Advertising softness: NA ad revenue −2% YoY driven by loss of ad-insertable content (WBD/Univision) .
• Subscriber declines YoY: NA subs −6.5% and ROW subs −12.5%, illustrating continued content portfolio and market competitiveness headwinds .
• Free cash flow remained negative (−$37.7M), and net cash used in operations was −$34.6M, though both improved YoY modestly .

Financial Results

Estimates comparison (S&P Global):

Values marked with * retrieved from S&P Global.

Segment breakdown:

KPIs and cash:

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “We are pleased to report that the second quarter represented Fubo’s first quarter of positive adjusted EBITDA, an important milestone for our business.” — David Gandler, CEO .
• “Our continued focus on delivering choice and flexibility to consumers positions us well to capitalize on emerging opportunities as the traditional content landscape continues to evolve.” — David Gandler, CEO .
• “We are pleased with our second quarter results including top-line outperformance.” — Edgar Bronfman Jr., Executive Chairman .
• “Ad revenue in North America totaled $25.5 million, a two percent year over year decline primarily due to the loss of certain ad insertable content from Warner Bros. Discovery and Televisa Univision.” — John Janedis, CFO .

Q&A Highlights

• Seasonality and Q3 setup: Management expects typical seasonal subscriber uptick and reactivations in fall sports; marketing will remain efficient given tailwinds .
• Advertising mix and macro: Retail/e-commerce and tech categories strong; modest drag from foreign auto tied to tariffs; FAST channels approaching low double-digit share of ad dollars, growing strong double digits .
• EBITDA trajectory: Q2 typically strongest for Adjusted EBITDA; back half includes higher marketing to drive seasonal growth; profitability remains seasonal .
• Subscriber guidance revision drivers: Strong interest in Latino product after price reductions post-Univision drop; improved retention lowered churn versus pacing .
• Competitive/Content dynamics: Loss of WBD/Univision impacted ad-insertable inventory; company focused on price/value equation, stabilizing ad business, and standalone offers like Fubo Sports .

Estimates Context

• Q2 2025 revenue beat consensus ($380.0M actual vs $367.1M consensus*), and normalized/primary EPS beat ($0.05 actual vs $0.025 consensus*) .
• With first positive Adjusted EBITDA and disciplined OpEx, estimates for normalized EPS and EBITDA margins may move higher; however, the pause in forward guidance during the deal pendency may temper near-term estimate visibility .
  Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

• Operational turning point: First positive Adjusted EBITDA with 5.4% margin signals improved unit economics and operating leverage; watch sustainability through seasonal back half .
• Top-line resilience: Both NA and ROW exceeded revenue/subscriber guidance despite content portfolio shifts; disciplined marketing and product features drove outperformance .
• Advertising normalization: Near-term ad softness tied to lost ad-insertable channels; category strength and FAST growth plus new ad formats should support recovery .
• Strategic catalysts: Fubo Sports skinny service launch (Sept 2) and DAZN partnerships broaden monetization pathways (standalone, PPV) and strengthen sports lineup .
• Deal-driven narrative: Regulatory progress on Disney/Hulu + Live TV combination is central; management paused guidance and withdrew 2025 profitability target during the pendency, shifting focus to deal milestones .
• Liquidity and cash: Cash and equivalents $283.6M on balance sheet and $289.7M including restricted cash; FCF negative but improved YoY; watch cash trajectory and working capital seasonality .
• Trading implications: Near term, stock likely sensitive to regulatory headlines and Fubo Sports uptake; medium term thesis turns on sustaining margin gains, ad recovery, and accretive deal synergies.