FuboTV Inc. posted its highest-ever quarterly revenue of $1.574 billion for the fiscal second quarter ended March 31, 2026, following its merger with Disney’s Hulu + Live TV. However, the streaming service saw North American subscriber numbers decline to 5.7 million from 5.9 million a year ago, raising concerns about the deal’s ability to sustain growth in a competitive market.
Merger Impact and Financial Highlights
The quarter marked Fubo’s first full period since Disney completed its Hulu + Live TV acquisition in October 2025, taking roughly 70% ownership. The company’s strategy hinges on leveraging Disney’s advertising muscle, ESPN partnerships, and content scale to build a more reliable sports-centric streaming revenue stream. Global revenue surged from $1.125 billion a year earlier, while international subscribers—including the Molotov segment—also slipped to 328,000 from 354,000.
Net loss narrowed sharply to $6.2 million from $40.9 million in the prior-year quarter. Adjusted EBITDA came in at $37.7 million, a significant improvement from pro forma adjusted EBITDA of $1.4 million a year ago. The company reaffirmed its fiscal 2026 pro forma adjusted EBITDA forecast of $80 million to $100 million and its 2028 target of at least $300 million, maintaining its timeline to achieve free-cash-flow positivity in fiscal 2027 and 2028.
Disney Integration and Advertising Progress
Chief Executive David Gandler highlighted ongoing Disney integrations as a tailwind for subscriber, revenue, and EBITDA growth. Hulu Live packages are now available through Fubo’s e-commerce platform, and links from ESPN.com’s “Where to Watch” pages will direct users to Fubo soon. The company also expects Fubo Sports to appear in ESPN’s e-commerce flow during the first half of 2027.
On the advertising front, Chief Financial Officer John Janedis noted that Fubo began shifting its inventory to Disney’s ad server less than 90 days ago. Early results show higher CPMs—cost per thousand ad impressions—and better fill rates, suggesting the Disney partnership is already delivering improved monetization.
Market Reaction and Challenges
Investor sentiment turned negative following the report. Fubo shares fell 4.73% to close at $10.28 on May 8, 2026, reflecting concerns over subscriber losses and the recent reverse stock split. The company executed the reverse split to attract institutional investors and reduce volatility, but Gandler acknowledged that such moves can unsettle shareholders.
Fubo continues to face stiff competition from Alphabet’s YouTube TV in the virtual MVPD (multichannel video programming distributor) space. Additionally, the company remains in a standoff with NBCUniversal, which has been without its networks since November 2025. Executives described the subscriber impact as modest and better than internal expectations, noting that Fubo viewers can still access NBCU content through Hulu + Live TV.
Cash Flow and Outlook
Despite the revenue milestone, cash flow remains a concern. Net cash used in operating activities for the six months through March 31 reached $412.4 million, up sharply from $90.0 million a year ago, underscoring the challenge of converting scale into sustainable cash generation. Fubo’s ability to deliver on margin improvements and reverse subscriber trends will be critical to restoring investor confidence.
