Fubo beats revenue but misses EPS after Disney Hulu deal
Sports streaming platform announces ESPN partnership and planned reverse stock split alongside first earnings since transformative merger
FuboTV reported mixed first-quarter results Tuesday, delivering revenue that beat analyst expectations but falling short on earnings, as the sports streaming platform completed its first financial period since combining with Disney's Hulu + Live TV business.
The company reported North America revenue of $1.543 billion for the quarter ended December 31, 2025, exceeding analyst estimates. On a pro forma basis that incorporates the recently completed business combination with Disney's Hulu + Live TV, North America revenue reached $1.675 billion.
However, the streaming service reported a net loss of $19.1 million, with earnings per share of negative $0.02 missing analyst projections of $0.01. The pro forma adjusted EBITDA of $41.4 million marked an 88% improvement year-over-year, signaling operational progress following the transformative merger.
Fubo ended the quarter with 6.2 million total subscribers in North America on a combined basis, a slight decline from the prior period. The company maintained a robust cash position of $458.6 million in cash, cash equivalents, and restricted cash.
Alongside the earnings release, Fubo announced a strategic reseller and marketing arrangement with ESPN, positioning the sports platform for broader distribution through ESPN's commerce channels. The partnership, subject to definitive agreements, would make Fubo Sports available on ESPN's platform while expanding promotional reach across ESPN's digital properties.
The company also revealed plans for a reverse stock split of its Class A and Class B common stock, with the ratio to be determined between one-for-eight and one-for-twelve. The move, approved by the board and shareholders, aims to enhance investor accessibility and reduce the total number of outstanding shares.
Management declined to provide specific forward guidance, adding uncertainty for investors seeking visibility on the post-merger trajectory. The announcement comes after the stock recently traded near 52-week lows of $2.19, significantly below analyst consensus targets around $4.50.
The earnings represent the first full quarter since Disney completed its acquisition of a 70% majority stake in FuboTV on October 29, 2025. The business combination created the sixth-largest Pay TV company in the United States, merging Fubo's operations with Disney's Hulu + Live TV while maintaining both services as separate brands under the leadership of Fubo Co-founder and CEO David Gandler.
As part of the transaction, Disney committed to providing a $145 million term loan to the combined entity. The deal also resolved an antitrust lawsuit Fubo had filed against Disney, Fox, and Warner Bros. Discovery regarding their proposed Venu Sports streaming joint venture, which was subsequently cancelled.
Analyst sentiment remains mixed despite the transformative deal. Roth MKM analysts raised their price target from $2 to $4.75 while maintaining a "Neutral" rating, citing the strategic benefits of the Disney combination. Overall, Fubo maintains an average analyst rating of "Hold" with a consensus target price of approximately $4.58.
The reverse stock split announcement comes as Fubo seeks to maintain compliance with NYSE listing standards and broaden its appeal to institutional investors. The company has previously executed reverse splits, including a 1-for-30 split in 2019, as part of efforts to manage its share structure.
Looking ahead, investors will focus on the integration progress between Fubo and Hulu + Live TV, the implementation of the ESPN partnership, and management's ability to leverage the combined entity's scale to improve profitability in the competitive virtual multichannel video programming distributor market.